Rocket Companies, Inc. · NYSE:RKT
Rocket Companies — Investor Presentation (February 2023)
43 slides from Rocket Companies's investor presentation, February 2023
Slide 1: Rocket Companies Investor Presentation
Rocket Companies Investor Presentation February 2023 ROCKET Companies
Slide 2: Disclaimer
~~ ROCKET Disclaimer This presentation contains and related discussions may contain “forward-looking statements” within the meaning of U.S. federal securities laws. Forward-looking statements include information concerning possible or assumed future results of operations, Rocket Companies, Inc.'s (t
Slide 3: Starting With A Simple Idea...
Starting With A Simple Idea... In the early days of the internet era, our Founder and Chairman Dan Gilbert committed the company's entire resources to moving online. Rocket continues to lead in driving transformative change in the mortgage industry “WE MUST take this great technology to the internet
Slide 4: Building a Technology Giant
Building a Technology Giant 5SM+ Rocket Accounts! Transaction Net Volume Since iemoter Score? Inception & request that we r ntion rafe has been 90% ROCKET «x Mortgage You're pre-approved for aloan up to °456,000 Max. loan amount $456,000 Home price $300,000 Down payment $60,000 Est. mortgage payment
Slide 5: A Platform Creating Certainty in Life's Complex Moments
fone versal ROCKET inancins 9 Finance Companies A Platform Creating Certainty in : Life’s Complex ream Moments PILLARS OF THE a PLATFORM a ani Y Partners ) )
Slide 6: Investment Highlights
Investment Highlights The Rocket platform was built to transform complex transactions, driving long-term profitable growth at scale. ROCKET ‘Companies 1 Massive, Fragmented Markets 2. Superior Client Experience I 3 Platform Advantage / 4 Trusted, Digital-First Brand / 5 | Multiple Avenues of Growth
Slide 7: Massive, Fragmented Markets
ROCKET ‘Companies
Slide 8: Massive Market Opportunity
Massive Market Opportunity Rocket competes in some of the largest, most complex segments of the economy: Mortgage Real Estate Financial Services 20% of U.S. GDP $5TN TAM ROCKET ‘Companies
Slide 9: Buying a home is the most stressful event
ROCKET Companies Many Americans, about 40%, say buying a new home is the most stressful event in modern life. 9B - HOUSINGWIRE
Slide 10: Home Ownership Priorities are Accelerating
Home Ownership Priorities are Accelerating A demographic wave of almost 70M Americans aged 20-34 is entering home ownership for the first time, demanding digital transformation of the real estate experience. ROCKET Companies 759 Of clients using online platform are first-time homeowners or Millennia
Slide 11: Strong Client Base Unlocks Platform Potential
ROCKET ‘Companies Strong Client Base Unlocks Platform Potential 90%+ Retention drives substantial lifetime value advantages, with repeat transaction opportunities over the client's life. 25.4m Rocket Accounts Net Client Retention Rate™ 90%+ 2.9m Client Loans Serviced sor7 2022 Delivering personalize
Slide 12: Rocket is Positioned to Lead Our Industries
Rocket is Positioned to Lead Our Industries Our markets remain highly fragmented compared to other large industries that moved online earlier - like e-commerce, travel, or tax prep. Rocket is positioned to lead the digital transformation of our industries. 50% 40% 30% 20% 10% 0% ROCKET Companies MAR
Slide 13: Long-Term Mortgage Market Share Gains
ROCKET Long-Term “en Mortgage Market Share Gains aes 5.1% $57 $25 $29 2009 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Wm Rocket Originations ($inB) | —®=Rocket Market Share Note: Denominator based on MBA mortgage volume estimates as of January 2022 13
Slide 14: Superior Client Experience
Slide 15: Superior Client Experience
Superior Client Experience ROCKET ‘Companies In complex transactions where the legacy experience can be confusing and discouraging, Rocket provides simple, fast, and trusted digital solutions. TRADITIONAL INDUSTRY EXPERIENCE Transactional Confusing Time-Consuming Uncertain ROCKET Mortgage (998) 452-
Slide 16: Digital-first, personalized experience
Digital-first, personalized experience Rocket's proprietary technology delivers a seamless digital experience for our clients. ROCKET Mortgage Got it! That covers the basics. Now, let’s talk numbers. We'll cover things like wages, salary, and bonuses. 3 minutes remaining Save For Later t ROCKET Mort
Slide 17: Extending Client Lifetime Value
Extending Client Lifetime Value Illustrative Client Lifetime Value Before Client Are Ready $13,500 $3,000 $1,500 $$$ $18,000+ To Transact 450 bps $300K mortgage’ “f —‘1%realestateagentcommission - — Appraisal, closing, title _ 0 Repeda ROCKET ROCKET Rete ROCKET BOCK AMROCK Transactions Companies Oth
Slide 18: Platform Advantage
3 Platform .. i! Advantage ° ONE 18
Slide 19: Rocket's Client Engagement Program
~ ROCKET Rocket's Client Engagement Program In 2022, we put foundational pieces of our client engagement program in place to serve our clients on every step of the homebuying journey. We are able to engage our clients well before they are ready to transact and before their next transaction with us.
Slide 20: Platform Benefits
Platform Benefits With foundational pieces of our client engagement program in place, we are focused on expanding our top of funnel, lifting conversion and lowering our client acquisition cost, with the ultimate goal of growing our purchase market share and extending client lifetime value. Grow Top
Slide 21: Rocket Money: Driving Deeper Client Engagement
Re ° ROCKET Rocket Money: Driving Deeper Client Engagement Companies ROCKET Helping Consumers Manage Their Entire Financial Lives (Truebill) = “\ | $100B+ Hh #1 Consumer Tech Company! Transaction Volume Analyzed/Month? al e990 #1 $100M+ ; Annualized Finance App Recurring iOS App Store? Revenue? Canc
Slide 22: Rocket Rewards: Driving Client Loyalty
ROCKET Rocket Rewards: Driving Client Loyalty companies Rocket Rewards helps clients achieve their financial goals while continuing to drive value and brand loyalty for Rocket. Over 1M users signed up * Accrue Reward Points across a range of activities * Redeem Reward Points to save money on home pu
Slide 23: Powered by Proprietary Technology Stack
ROCKET ‘Companies Powered by Proprietary Technology Stack Proprietary technology developed in-house that drives DIGITAL POINT-OF-SALE our entire operating process. Continuous Operational Efficiency Gains PARTNER API PLATFORM Digital Software- Client Client Driven Servicing & Acquisition Workflows Re
Slide 24: Trusted Digital-First Brand
Slide 25: Primary Mortgage Origination / Servicing
PRIMARY MORTGAGE PRIMARY SERVICING MORTGAGE ORIGINATION
Slide 26: Nationally Recognized Digital-First Brand
ROCKET ‘Companies ° ° oge With National Brand Recognition as. Rocket's trusted, nationally recognized, digital-first e 3 OWL : 1 ee brand, backed by billions of dollars of investment 5 QUARES 2 over many years, is a competitive advantage that ; is difficult to replicate. #1 Most Differentiated Brand
Slide 27: Multiple Drivers of Growth
Slide 28: Multiple Drivers of Growth
ROCKET Companies Multiple Drivers of Growth PARTNER NETWORK + Extending brand and technology to partners Current Mortgage Info + Adding new partners * Increasing share with DIRECT-TO-CONSUMER existing partners * Investing in brand and client acquisition * Growing digital adoption : POWERED BY ROCKET
Slide 29: The Rocket Flywheel
ROCKET ‘Companies The Rocket Flywheel The core of our economic flywheel is that we are constantly reinvesting in the business, further strengthening our Proven competitive position. Scalability Large Client Base Track Record of Efficiency Leveraging Data Lake Unique Client Experience Home Buying Eco
Slide 30: Proven Leadership and Culture
os Ae - 6) proven (Ui " Leadership and Culture 3 WORK HARD, PLAY HARD, a4
Slide 31: Proven Leadership Team
Proven Leadership Team ROCKET ‘Companies Proven track record over 3 decades Current leadership team has been with organization more than 2 decades on average Robust pipeline of talent to continue to grow business 32
Slide 32: Rocket Companies Leadership
ROCKET . . Companies Rocket Companies Leadership JAY FARNER BILL EMERSON BOB WALTERS BRIAN BROWN CEO Interim CEO President & COO CFO & Treasurer Rocket Companies (Effective 6.1.23) Rocket Companies Rocket Companies 27 Years Rocket Companies 26 Years 9 Years 30 Years TIM BIRKMEIER TINA JOHN BILL BANF
Slide 33: Culture is Our Foundation
Culture is Our Foundation ROCKET Companies Dan Gilbert, our founder and Chairman, purposefully created a strong cultural foundation of core principles, or “ISMs”, as a cultural operating system to guide decision-making by Innovation is rewarded. all our team members. Execution is worshipped. Obsesse
Slide 34: Love Our Team Members
Love Our Team Members ROCKET Companies Our team members put the ISMs into action every day. The result is an empowered and passionate team aligned in a common mission. ESSENCE Forbes Forbes FORTUNE FORTUNE e 2 e e #1 Best The Best Best #3 America’s Best Companies 100 Best #6 Best Large Workplace for
Slide 35: For More Than Profit
For More Than Profit Our company and community are inextricably linked, serving as the foundation for our community investment, team member development and business growth strategies. 2021 Environmental, Social And Governance Report ROCKET Companies Inaugural ESG report published June 2022 Note: Roc
Slide 36: Appendix
Slide 37: Our Companies
Our Companies HOME SEARCH & SALES ROCKET Seamless, fully-integrated home Homes buying and selling experience via real estate agent network and home search site. ANS Empowering sellers and FOR SALE BYOWNER buyers with the resources they need to sell or buy properties directly. je ees HOME FINANCING R
Slide 38: Financial Highlights
Financial Highlights (Units in ‘000s, $ in M) Adjusted Revenue YoY Growth % QoQ Growth % Adjusted EBITDA % Margin Adjusted Net Income (Loss) % Margin Closed Loan Volume YoY Growth % QoQ Growth % Net Rate Lock Volume YoY Growth % QoQ Growth % Gain on Sale Margin (1) See endnote #1 for non-GAAP reconc
Slide 39: Endnotes: Adjusted EBITDA reconciliation
Endnotes Adjusted EBITDA reconciliation ($ amounts in millions) Netincome Interest and amortization expense on non-funding debt Income tax (benefit) provision Depreciation and amortization Share-based compensation expense (a) Change in fair value of MSRs due to valuation assumptions (net of hedges)
Slide 40: Endnotes: Adjusted Revenue Reconciliation
— ROCKET Endnotes 1. Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Adjusted Revenue Reconciliation ($ amounts in millions) (Unaudited) (Unaudited) Total Revenue, net $481 $2,593 $5,838 $12,914 Change in fair value of MSRs due to valuation assumptions (net of hedges) (a)
Slide 41: Endnotes: Adjusted Net Income Reconciliation
a ROCKET Endnotes Companies Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 1. (Unaudited) (Unaudited) Adjusted Net (Loss) Income Reconciliation ($ amounts in millions) Net (loss) income attributable to Rocket Companies $18) $48 $46 $308 Net (loss) income impact from pro
Slide 42: Endnotes: Definitions
~~ ROCKET Endnotes 2. “Adjusted EBITDA Margin” calculated as Adjusted EBITDA divided by Adjusted Revenue. 3. We define “net client retention rate" as the number of clients that were active at the beginning of a period and which remain active at the end of the period, divided by the number of clients
Slide 43: Rocket Companies
ROCKET Companies
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