Dominion Lending Centres, Inc. (canada) Class A · TSX:DLCG
Dominion Lending Centres, Inc. (canada) Class A — Dominion Lending Centres — Investor Presentation (November 2022)
18 slides from Dominion Lending Centres, Inc. (canada) Class A's investor presentation, Nov 10, 2022
Slide 1: Dominion Lending Centres Inc.
Dominion Lending Centres Inc. TSX: DLCG www.dlcg.ca November 10, 2022
Slide 2: Disclaimer
DISCLAIMER 2 THIS PRESENTATION IS BEING SUPPLIED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED, FURTHER DISTRIBUTED OR PUBLISHED IN WHOLE OR IN PART BY ANY OTHER PERSON. THIS PRESENTATION DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER FOR SALE OR SOLICITATION OF ANY OFFER TO BUY ANY SE
Slide 3: Who is DLCG?
TSX: DLCG | www.dlcg.ca 3 Who is DLCG? ✓ #1 market share in Canada(1) ✓ >$77 billion in funded mortgage volumes(2) ✓ >8,200 mortgage professionals(3) ✓ ~540 franchises across Canada(3) ✓ >$42 million adjusted EBITDA(2)(4) ✓ ~54% Adjusted EBITDA margin(2)(4) ✓ ~21% 5-year Adjusted EBITDA CAGR(4)(5) ✓
Slide 4: Dominion Lending Centres Inc. Snapshot
TSX: DLCG | www.dlcg.ca Dominion Lending Centres Inc. Snapshot 4 Summary Capitalization Trading Price Ticker Symbol: TSX DLCG Share Price (November 9, 2022) $2.59 $4.50 Common Shares Outstanding (Basic) (1) 48.4mm $4.00 Market Capitalization $125.4mm $3.50 Share Price ($C / share) Net Debt (2) $20.8
Slide 5: DLCG Overview
TSX: DLCG | www.dlcg.ca DLCG Overview 5 Canada’s Largest • #1 market share in Canada (currently ~40% of the Canadian mortgage brokerage market)(1) Mortgage • >$77 billion in funded mortgage volumes(2) Brokerage • >8,200 mortgage professionals across ~540 franchises(3) Network • Mortgage professional
Slide 6: Largest Mortgage Brokerage Network in Canada
TSX: DLCG | www.dlcg.ca Largest Mortgage Brokerage Network in Canada 6 • DLCG is Canada's largest mortgage brokerage National Presence network with >$77 billion in funded mortgages(1) • #1 market share with additional consolidation opportunities • DLCG generates the majority of revenue from: • Royal
Slide 7: Understanding Funded Mortgage Volumes
TSX: DLCG | www.dlcg.ca Understanding Funded Mortgage Volumes 7 Funded mortgage volumes are a key performance indicator, as much of DLCG’s success depends on funded mortgage volumes. The following factors contribute to the growth of DLCG’s funded mortgage volumes: Number of Canadians Number of mortg
Slide 8: Dominant Market Share With Room To Grow
TSX: DLCG | www.dlcg.ca Dominant Market Share With Room To Grow 8 Total Canadian Mortgage Total Canadian Mortgage Originations through the Originations Through All Channels Mortgage Expert Channel >$77 billion / year(1) ~$193 Billion ~$850 Billion / / Year(2) Year (3) (1) LTM ended September 30, 202
Slide 9: Newton Connectivity Systems Inc. (Newton)
TSX: DLCG | www.dlcg.ca Newton Connectivity Systems Inc. (Newton) 9 • Newton is an approved fintech mortgage connectivity platform in Canada • Newton’s primary business is connecting mortgage applicants, mortgage professionals, Canadian lenders and third-party ancillary product and service suppliers
Slide 10: DLCG Growth Strategy
TSX: DLCG | www.dlcg.ca DLCG Growth Strategy 10 Organic Growth From Diversified and established foundation of >8,200 mortgage 1 Existing Mortgage professionals(1) in all provinces and territories originating >$77 billion in Professionals funded volumes(2) Adding Mortgage Strong pipeline of highly ac
Slide 11: DLCG's Strong Historical Financial Performance
TSX: DLCG | www.dlcg.ca DLCG’s Strong Historical Financial Performance 11 95 Revenue Annual Funded 85 In C$ Millions $78.8 $78.0 Volumes(1)(2) $78.5 $77.4 75 In C$ Billions 65 55 $52.4 $51.5 $44.8 45 $40.1 $41.7 $37.6 35 25 (6) (6) 2018 2019 2020 2021 LTM 2018 2019 2020 2021 LTM $46.9 Adjusted $42.4
Slide 12: Recession Resilient Model
TSX: DLCG | www.dlcg.ca Recession Resilient Model 12 • DLCG has demonstrated the resilience of (1)(2) its financial and operating model by Q3 & YTD Financial Performance maintaining strong financial and operational performance in 2022, notwithstanding rising interest rates, and Revenue Adjusted EBIT
Slide 13: About Gary Mauris and Chris Kayat
TSX: DLCG | www.dlcg.ca 13 About Gary Mauris • Gary is the co-founder, Executive Chairman, CEO and a Director of the Corporation, and the largest shareholder • Gary is a serial entrepreneur, having sold two prior companies to private equity and public markets • Gary was recognized as a finalist for
Slide 14: Experienced and Proven Management Team
TSX: DLCG | www.dlcg.ca Experienced and Proven Management Team 14 Dustan Eddy Cocciollo • Past mortgage broker with Woodhouse • 12 years direct industry President, over 25 years experience in President, experience including 10 DLC Inc. lending and origination Mortgage years as a mortgage broker Arch
Slide 15: Organizational Structure
TSX: DLCG | www.dlcg.ca Organizational Structure 15 Preferred Shares(1) Common Shares(1) 26.8 mm 48.4 mm Core Assets Non-Core Assets Impact (52%) DLCG (100%) $6.2mm(2) (1) As at September 30, 2022. As at September 30, 2022, KayMaur Holdings Ltd. (“KayMaur”) holds ~38% of the Common Shares and 95% of
Slide 16: Summary
TSX: DLCG | www.dlcg.ca Summary 16 Canada’s • #1 market share in mortgage origination in Canada at ~40% (1) Largest • >$77 billion in funded mortgage volumes (2) Mortgage Brokerage • Strong distribution channels across >8,200 mortgage professionals across Canada (3) Network • >15 year operating hist
Slide 17: Appendix I – Newton's Ecosystem
TSX: DLCG | www.dlcg.ca Appendix I – Newton’s Ecosystem Newton offers a comprehensive suite of services that connect borrowers, mortgage professionals, lenders, and third-party service providers Denotes Newton’s assets DLCG Note: This ecosystem is for illustrative purposes and does not include an ex
Slide 18: Dominion Lending Centres Inc.
TSX: DLCG | www.dlcg.ca Dominion Lending Centres Inc.
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