Slide 1: August Investor Meeting Presentation
August Investor Meeting Presentation August 25, 2022 Exhibit 99.1
Slide 2: Frontdoor Management
Bill Cobb Chairman & Chief Executive Officer Brian Turcotte Senior Vice President & Chief Financial Officer Matt Davis Vice President Investor Relations & Treasurer Frontdoor Management
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, projected future performance and any statements
Slide 4: Market Leader
Market Leader Note: As of 12/31/21 Employees & Partners Customers Contractors 2.21M home service plan customers ~2,100 employees Nationwide Coverage ~17K contractor firms ~62K technicians ~4.6M service requests annually 73% customers on autopay ~70% of revenue from renewals 82%+ of work orders servi
Slide 5: What is a home service plan? How does it work?
What is a home service plan? How does it work? ShieldPlatinumTM Covers parts of 23 essential appliances and systems you use every day, plus roof leak repairs, free HVAC Tune-ups and other coverage boosts, and more. Heating and Cooling Systems* Electrical Systems* Plumbing Systems* Kitchen Appliances
Slide 6: Frontdoor offers a strong value proposition
Steady Work Volume throughout the year, not just during peak months Access To FTDR expansive supply and parts networks Paid Jobs Not just leads that may not covert to revenue Customer Experience Opportunities to up-sell; additional business Budget Protection Guard against the high cost of repairs an
Slide 7: Diversified, highly visible revenue streams with scale
Diversified, highly visible revenue streams with scale (1) Home service plan revenue only Source: 2021 data from company filings and management reports Revenue(1) mix by channel Customer Payment Method More customers in a local market Ability to negotiate annual volume discounts with contractors Mor
Slide 8: Short-Term Challenges and Long-Term Opportunities
Short-Term Challenges Long-Term Opportunities Frontdoor Goal Historically challenging macroeconomic environment Rapid increase in contractor-related costs Record low home inventory impacting real estate channel Demand for home services continues to grow Industry in early stages of digital transforma
Slide 9: Moving Quickly to Improve Execution
Moving Quickly to Improve Execution Undertaking comprehensive SG&A review SG&A Rebuilding core home service plan business Core Reorganized go-to-market structure Organization Working to address rapid increase in inflation COGS
Slide 10: Comprehensive Operating Review
Comprehensive Operating Review Reinventing how we interact with customers, contractors and partners Focus on the Customer & Brand Digital-first mentality Simplify Business
Slide 11: Reorganized Go-to-Market Structure
Reorganized Go-to-Market Structure Chief Sales Officer Jes Fields SVP & GM of Product Increased focus, improved consistency and accountability across sales funnel Chief Sales Officer Chief Marketing Officer Kathy Collins Jes Fields Raj Midha
Slide 12: Real Estate Channel Update – July trends
Real Estate Channel Update – July trends Source: National Association of Realtors Frontdoor continues to be impacted by historically challenging real estate market Existing home sales declined over 20% in July vs prior year Home inventory mixed as supply of homes increased to 3.3 months but days on
Slide 13: Direct-to-Consumer Channel Update
Direct-to-Consumer Channel Update Sales Units Volume has deteriorated vs expectations due to difficult market environment and fundamental demand generation issues Trend more noticeable early in 2022 as “top of the funnel” marketing efficiency declined DTC volume is expected to decline ~3% in Q3 and
Slide 14: Pricing and Unit Update
Pricing and Unit Update Pricing Targeting 12-13% overall price increase in 2022 to combat rising inflation Determined to stage price increases to minimize churn based on prior learnings The larger the price increase, the more elastic our customers become The DTC and real estate channels are more pri
Slide 15: Q&A
Q&A For more information please visit our website: frontdoorhome.com