Slide 1: Investor Presentation November 2023
June 2021 / Confidential Investor Presentation November 2023
Slide 2: Disclaimer
2 Disclaimer This document and any related oral presentation do not constitute an offer or invitation to subscribe for, purchase or otherwise acquire any securities or other instruments of Douglas Elliman Inc. (“Douglas Elliman Inc.”, “DOUG” or “the Company”) or its subsidiaries and nothing containe
Slide 3: Investment Highlights
3 Investment Highlights Unique Investment Opportunity in Tech-Enabled Residential Real Estate Brokerage with Comprehensive Suite of Real Estate Solutions, Industry-leading Brand Name and Talented Team of Employees and Agents Cutting-edge property technology supportive of agent recruitment, retention
Slide 4: Founded in 1911 as a pioneer in the real estate industry
4 Founded in 1911 as a pioneer in the real estate industry that has continued to challenge the status quo through innovation and high-quality service provided by best-in-class real estate agents Leading brand associated with service, luxury and forward thinking operating in markets that are prima
Slide 5: Douglas Elliman's Geographical Footprint
5 Douglas Elliman’s Geographical Footprint ~6,900 affiliated agents across approximately 120 U.S. offices Alliance with Knight Frank provides an international network of an additional 367 offices across, 52 countries and approximately 17,000 agents #5 Nationally One of the Largest in New York Califo
Slide 6: Comprehensive Solution Provides for Multiple Revenue Streams
6 Comprehensive Solution Provides for Multiple Revenue Streams • DEDM offers expertise in sales, leasing and marketing for new developments throughout key markets in the United States and internationally Development Marketing and Sales Platform • Advising sellers: Assist in pricing a property and pr
Slide 7: Industry-leading Brand Name with a Strong Presence in U.S. Luxury Markets
7 LTM 9/30/2023 Average(8): $1,591.4 Industry-leading Brand Name with a Strong Presence in U.S. Luxury Markets $1,616.3 $1,088.7 $699.0 $365.9 Douglas Elliman Compass Anywhere eXp Realty Highest Transaction Values in the Industry Average Selling Price (2022)(7) ($ thousands) Leading Presence in Larg
Slide 8: Cutting-edge Technology Supportive of Agent Recruitment, Retention and Productivity
8 Cutting-edge Technology Supportive of Agent Recruitment, Retention and Productivity Powered by industry leading technology capabilities developed by innovative PropTech leaders and start-ups • Premier, customizable, mobile-friendly and cloud-based agent portal that integrates all agent resources i
Slide 9: MyDouglas | Complete Set of Capabilities
9 * New Valley Ventures PropTech Investee Company MyDouglas | Complete Set of Capabilities Capabilities Solutions Artificial Intelligence (“AI”) and Predictive Analytics Team Management Agent Social Media • Learning Management System • MyDouglas Team Views • Team Deal Management Agent Brand Manageme
Slide 10: Open Architecture Technology Infrastructure
10 Open Architecture Technology Infrastructure Open Architecture Technology Infrastructure, Kept State-of-the-art Through Strategic Investments in Early Stage PropTech Companies with Technology Purpose-built for the Real Estate Industry Key Benefits of Our Technology Strategy Recent PropTech Investm
Slide 11: Strong Platform for the Long Term
11 • Further grow leadership position in New York while entering and expanding into adjoining markets where the Douglas Elliman brand has strong awareness and brand equity, including Florida, California, Texas, Colorado and Massachusetts • Recent entry into the DC Metro, Las Vegas, Austin, Dallas, S
Slide 12: Strong Platform for the Long Term (Cont.): California, Texas, Florida
12 California Texas Florida Overview • Purchased Teles Properties in 2017 • Purchased interest in Texas brokerage in 2021 • High profile recruitment of teams in Naples, Vero Beach, Fort Lauderdale and Ponte Vedra Beach in 2021 and 2022 Benefits to Douglas Elliman • Ability to expand in southern Cali
Slide 13: Strong Platform for the Long Term (Cont.)
13 $201.5 $194.0 $15.2 $23.7 $35.4 $35.1 $14.4 2019 LTM 9/30/2023 Other OpEx Technology Activity Driven Operating Expenses Acquisitions Strong Platform for the Long Term (Cont.) Invest in Compelling PropTech Opportunities that Facilitate Growth and Differentiation Relentlessly Pursue Operational Eff
Slide 14: Douglas Elliman Financial Overview
DOUGLAS ELLIMAN FINANCIAL OVERVIEW
Slide 15: Attractive Financial Profile
15 Attractive Financial Profile 1) As of September 30, 2023. Please see page 20, “Consolidated Balance Sheet" of Douglas Elliman Inc. Disciplined expense management drives significant operating leverage Legacy brand and agent network offering unrivaled expertise in luxury markets Operating leverage
Slide 16: Financial Summary
16 Financial Summary 1) Operating (loss) income for the real estate brokerage segment was $(49.3) million, $102.1 million, $22 million and $(36) million for the years ended December 31, 2020, 2021 and 2022 and for the nine months ended September 30, 2023, respectively. Please refer to page 21 for a
Slide 17: Business Mix
17 Business Mix $18.2 $22.4 $24.6 $25.4 $28.1 $28.8 $29.1 $51.2 $42.9 $34.0 LTM 9/30/2023 Revenue Gross Transaction Value ($ billions) $844.8M $54.9M $35.1M $13.9M $949M Commissions and Other Brokerage Income – Existing Home Sales Commissions and Other Brokerage Income – Development Marketing Proper
Slide 18: Appendix
APPENDIX
Slide 19: Combined Consolidated Statement of Operations
19 Combined Consolidated Statement of Operations Year Ended Nine Months Ended 12/31/2020 12/31/2021 12/31/2022 9/30/2023 9/30/2022 LTM 9/30/2023 Revenues: Commissions and other brokerage income $733,751 $1,292,416 $1,099,885 $703,780 $903,917 $899,748 Property management 35,115 37,345 36,022 26,849
Slide 20: Consolidated Balance Sheet
20 Consolidated Balance Sheet September 30, December 31, 2023 2022 ASSETS: Current assets: Cash and cash equivalents $126,340 $163,859 Receivables 26,824 22,162 Agent receivables, net 13,978 12,826 Income taxes receivable, net 6,154 7,547 Restricted cash and cash equivalents 5,011 4,985 Other curren
Slide 21: Adjusted EBITDA Reconciliation
21 1) Represents equity in (earnings) losses recognized from Douglas Elliman’s investment in equity method investments that are accounted for under the equity method and are not consolidated in Douglas Elliman’s financial results. 2) Represents restructuring related to Douglas Elliman Realty, LLC’s
Slide 22: Adjusted Operating Expenses Reconciliation
22 Adjusted Operating Expenses Reconciliation Year Ended Year Ended Nine Months ended Nine Months Ended LTM 12/31/2019 12/31/2022 9/30/2023 9/30/2022 9/30/2023 Total Operating Expenses(1) $787,588 $1,157,718 $782,368 $928,526 $1,011,560 Items excluded from total expenses to determine Real Estate Bro