Dominion Lending Centres, Inc. (canada) Class A · TSX:DLCG
Dominion Lending Centres, Inc. (canada) Class A — Dominion Lending Centres — Investor Presentation (May 2025)
37 slides from Dominion Lending Centres, Inc. (canada) Class A's investor presentation, May 7, 2025
Slide 1: TSX: DLCG Investor Presentation May 7, 2025
TSX: DLCG www.dlcg.ca May 7, 2025
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: The Winning Equation
TSX: DLCG | www.dlcg.ca 3 : The Winning Equation Three franchise Proprietary Industry leading brands technology platform results $72.6 $39 (1) (1) (2) Billion Million Funded EBITDA mortgages >500 (3) >8,500 (3) Mortgage Franchises professionals Across Canada (1) For the trailing twelve months ending
Slide 4: What is a mortgage broker?
TSX: DLCG | www.dlcg.ca What is a mortgage broker? 4 Mortgage brokers help borrowers secure loans from lenders with favourable terms, saving them time, money, and effort by handling the process. A mortgage broker is a licensed professional who acts as an intermediary between borrowers and lenders.
Slide 5: Why use a mortgage broker?
TSX: DLCG | www.dlcg.ca Why use a mortgage broker? 5 First-time Access to multiple homebuyers lenders Seek guidance on Brokers provide access to a broad navigating the mortgage range of lenders, increasing the process for the first time chance of finding the best rate and terms Homeowners looking to
Slide 6: Who should use a mortgage broker?
TSX: DLCG | www.dlcg.ca Who should use a mortgage broker? 6 Everyone Expert Advice Saves Time Better Rates No Cost Mortgage brokers simplify the mortgage journey for everyone. TSX: DLCG
Slide 7: Understanding Funded Mortgage Volumes
TSX: DLCG | www.dlcg.ca Understanding Funded Mortgage Volumes 7 Funded mortgage volumes are a key performance indicator for DLC Group, as much of our success depends on this metric. The following factors contribute to the growth of our funded mortgage volumes: Number of Canadians Number of mortgage
Slide 8: What is a mortgage brokerage franchise?
TSX: DLCG | www.dlcg.ca What is a mortgage brokerage franchise? 8 Franchise owners run their own business under the DLC Group umbrella as a recognized brand, leveraging reputation, relationships, lender agreements, training, and resources. Franchisee Established Brand & Access to a Wide Independence
Slide 9: Connectivity Technology: How Mortgage Brokers Connect with Lenders & Borrowers
TSX: DLCG | www.dlcg.ca Connectivity Technology: How Mortgage Brokers Connect with 9 Lenders & Borrowers Newton Connectivity Systems Inc. is wholly owned by the DLC Group. Newton’s fintech platform, Velocity, is an integrated end-to-end operating system that handles the entire mortgage submission an
Slide 10: Understanding the Canadian Mortgage Market
TSX: DLCG | www.dlcg.ca Understanding the Canadian Mortgage Market 10 • The Mortgage Broker sector accounts for an estimated 48%(1) of all mortgages funded in Canada. • DLCG’s estimated market share of the broker sector is ~21%(2). Estimated Broker Estimated Total Sector Market ($654.7B) 21% 20% Mor
Slide 11: Trusted Partnerships with Lenders & Suppliers
TSX: DLCG | www.dlcg.ca 11 Trusted Partnerships with Lenders & Suppliers Robust, trusted alliances with leading lenders and key suppliers. TSX: DLCG
Slide 12: Why Invest in DLC Group?
TSX: DLCG | www.dlcg.ca Why Invest in DLC Group? 12 Extensive Financial Distribution & Growth Strength & Resilient Opportunities Efficiency Business model TSX: DLCG
Slide 13: Why Invest in DLC Group?
TSX: DLCG | www.dlcg.ca Why Invest in DLC Group? 13 Extensive Financial Distribution & Growth Strength & Resilient Opportunities Efficiency Business model TSX: DLCG
Slide 14: Extensive Distribution & Resilient Business Model
TSX: DLCG | www.dlcg.ca 14 Extensive Distribution & Resilient Business Model Asset-light Traditional Lender VS. Funds loans Credit Risk Franchise network Technology platform Multiple revenue Loan records streams Asset-light structure with minimal capital requirements and no credit risk exposure. Min
Slide 15: Extensive Distribution & Resilient Business Model
TSX: DLCG | www.dlcg.ca 15 Extensive Distribution & Resilient Business Model Asset-light Adjusted (1) Minimal Capital Requirements EBITDA & CAPEX Lower capital requirements enables EBITDA CAPEX more flexible and efficient use of resources $36.0 $32.1 High Revenue Efficiency Generates strong revenue
Slide 16: Extensive Distribution & Resilient Business Model
TSX: DLCG | www.dlcg.ca 16 Extensive Distribution & Resilient Business Model Franchise structure with long-term contracts Contract initiation High Retention Franchise Renewal point Through Renewals relationship 5-10 year term Franchise relationships ensure long-term partnerships with mortgage broker
Slide 17: Extensive Distribution & Resilient Business Model
TSX: DLCG | www.dlcg.ca 17 Extensive Distribution & Resilient Business Model Ongoing Recruitment & Acquisitions Total Brokers 8,663 8,544 • Constant recruitment efforts and acquisition 8,221 8,192 opportunities to convert competitors’ brokerages 7,749 and onboard new brokers. 6,592 2020 2021 2022 20
Slide 18: Extensive Distribution & Resilient Business Model
TSX: DLCG | www.dlcg.ca 18 Extensive Distribution & Resilient Business Model Long standing history of increasing funded mortgage volumes 79.6 Funded Mortgage 71.3 $72.6 Volumes 67.4 In C$ Billions 56.5 51.5 41.7 37.0 36.4 35.4 32.9 25.9 (1) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TTM
Slide 19: Why Invest in DLC Group?
TSX: DLCG | www.dlcg.ca Why Invest in DLC Group? 19 Extensive Financial Distribution & Growth Strength & Resilient Opportunities Efficiency Business model TSX: DLCG
Slide 20: Financial Strength & Efficiency
TSX: DLCG | www.dlcg.ca Financial Strength & Efficiency 20 Diversified Recurring Revenue Streams Revenue In C$ Millions Funded Mortgage Volumes in C$ Billions $76.7 $70.7 Franchise revenue, mortgage $62.5 brokerage services + Franchise royalty fees + Lender and supplier fees $56.7 + Advertising + Co
Slide 21: Financial Strength & Efficiency
TSX: DLCG | www.dlcg.ca Financial Strength & Efficiency 21 High margins and strong free cash flow generation Adjusted $32.1 $36.0 EBITDA & Adjusted EBITDA $24.4 Margins(1) 45% 39% 47% In C$ Millions 2022 2023 2024 • Minimal fixed costs paired with high margins, resulting in strong, consistent cash f
Slide 22: Financial Strength & Efficiency
TSX: DLCG | www.dlcg.ca Financial Strength & Efficiency 22 Commitment to shareholder returns through consistent dividends Reliable Returns Sustainable Payouts Reflects our stable cash flow and ongoing commitment to returning value. $0.03 Prudent management allows DLC Group to maintain dividends whil
Slide 23: Financial Strength & Efficiency
TSX: DLCG | www.dlcg.ca Financial Strength & Efficiency 23 Simple Capital Structure & Flexible Balance Sheet Capital Structure Highlights Share Price (May 6, 2025) $8.08 High Financial Flexibility Common Shares Outstanding (1) 78.7mm With current debt structure, DLC Group maintains a strong balance
Slide 24: Financial Strength & Efficiency
TSX: DLCG | www.dlcg.ca Financial Strength & Efficiency 24 Fully Aligned Insider Group Common Shares % ownership (1) held (1) Gary Mauris(2) 20,088,533 25.5% Chris Kayat(3) 19,362,332 24.6% Belkorp Industries Inc. 14,657,798 18.6% Board and officers 2,911,449 3.7% Total 57,020,112 72.4% With 72% ins
Slide 25: Why Invest in DLC Group?
TSX: DLCG | www.dlcg.ca Why Invest in DLC Group? 25 Extensive Financial Distribution & Growth Strength & Resilient Opportunities Efficiency Business model TSX: DLCG
Slide 26: Growth Opportunities
TSX: DLCG | www.dlcg.ca Growth Opportunities 26 Mergers & Acquisitions Industry Growth Newton adoption Recruitment & Expansion DLC Group is positioned for scalable growth through strategic recruitment, expandable technology adoption, leveraging the growing mortgage broker industry and through target
Slide 27: Growth Opportunities
TSX: DLCG | www.dlcg.ca Growth Opportunities 27 Recruitment & Expansion Organic Growth From Existing Adding New Mortgage Brokers Mortgage Brokers Strong pipeline of accretive DLC Group brokers are well acquisition opportunities to positioned to capitalized on ‘reflag’ competitor renewals, refinances
Slide 28: Growth Opportunities
TSX: DLCG | www.dlcg.ca Growth Opportunities 28 Newton Adoption: % of DLCG Funded Mortgage Volumes Submitted through Velocity Q1 2025: 2024: 79% 73% 2023: 63% 2022: 55% 2021: 44% Increasing Newton adoption fuels efficiency, revenue, and market leadership across our network. TSX: DLCG
Slide 29: Growth Opportunities
TSX: DLCG | www.dlcg.ca Growth Opportunities 29 Industry Growth New Customer Growth With only 48%(1) of Canadians currently using a mortgage broker, DLC Group has significant potential to convert new clients, growing its market share. Expanding Broker Network Continued recruitment and onboarding of
Slide 30: Growth Opportunities
TSX: DLCG | www.dlcg.ca Growth Opportunities 30 Industry Growth • Comparison of international mortgage broker markets similar to Canada(1) Broker Channel Market Share(1) 87% 70% 48% Canada Australia U.K. Canada is well positioned for mortgage broker expansion. (1) BMO Capital Markets June 6, 2024 Mo
Slide 31: Growth Opportunities
TSX: DLCG | www.dlcg.ca Growth Opportunities 31 Mergers and Acquisitions: Historic success with acquisitions (5) (2) 2013 2015 2016 2020 2022 2024 2024 (1) (3) (4) With a strong balance sheet and proven acquisition track record, DLC Group is strategically positioned to pursue new opportunities when
Slide 32: Growth Opportunities
TSX: DLCG | www.dlcg.ca Growth Opportunities 32 Mergers and Acquisitions Core Business Complementary Strategic New Expansion Services Verticals Technology and Life insurance Fintech platforms Property insurance Training and Mortgage certification Lenders brokerages providers Consumer services Digita
Slide 33: Q1 2025 Review
TSX: DLCG | www.dlcg.ca Q1 2025 Review 33 A Strong Start To The Year Despite Economic Uncertainty Q1 2025 Highlights Q1 2025 Q1 2024 % Change Funded Mortgage Volumes $16.4 B $11.2 B 46% Revenue $18.7mm $13.6mm 37% Adjusted EBITDA (1) $8.0mm $5.0mm 61% Adjusted EBITDA Margin (1) 43% 37% -- Adjusted D
Slide 34: Why invest in DLC Group: Summary
TSX: DLCG | www.dlcg.ca Why invest in DLC Group: Summary 34 Resilient & Long-term Scalable Model contracts Industry Leader Growth sector Diversified Asset-light revenue streams High EBITDA Canada-wide margins network Strong free cash Proprietary tech flow platform Flexible balance Proven sheet manag
Slide 35: Our Founders
TSX: DLCG | www.dlcg.ca Our Founders 35 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
Slide 36: Experienced and Proven Management Team
TSX: DLCG | www.dlcg.ca Experienced and Proven Management Team 36 Eddy Cocciollo President, DLCG Mike MikeDe DeEyre EyrePresident, President,MA MA • Past mortgage broker with over 25 years’ Over 17mortgage • • 17-year years of industry industryexperience veteran with experience in lending and origin
Slide 37: Dominion Lending Centres Inc.
TSX: DLCG | www.dlcg.ca Dominion Lending Centres Inc.
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