Rocket Companies, Inc. · NYSE:RKT
Rocket Companies — Investor Presentation (August 2022)
44 slides from Rocket Companies's investor presentation, August 2022
Slide 1: Rocket Companies Investor Presentation
Rocket Companies Investor Presentation August 2022 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 company’s entire resourees to moving onne. “W E M U ST take this great technology to the internet” - DAN GILBERT, 1998
Slide 4: Technology Building a Giant
ROCKET Companies Technology aS Building a a eg : ROCKET «}] 37 Giant # 1 Mortgage H me You're pre-approved Veal ender in fora loan up to Operating America H °456,000 70+ 90%+ Net Net Client Bremoter Max. loan amount $456,000 RetentioniRatal Score? Transaction 204M Volume Since fae . nique Inception
Slide 5: A Platform Creating Certainty in Life's Complex Moments
A Platform Creating Certainty in Life’s Complex Moments Personal Finance ROCKET Companies Home Auto Financing 6 Purchase Home Search “SPN ee Oe een, And Sales Ye ar A Solar y FOUNDATION: OUR CULTURE : %~ PILLARSOFTHE =. .. PLATFORM “@ Partners Technology Rocket Drives “ Cloud Force Efficiency Data S
Slide 6: Investment Highlights
= ROCKET Investment Highlights Companies The Rocket platform was built to transform complex transactions, driving long-term profitable growth at scale. Massive, Fragmented Markets 1 | 2 Superior Consumer Experience 3 Trusted, Digital-First Brand / 4 Platform Advantage Proven Leadership and Culture
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 Auto Financial Services Solar 30% of U.S. GDP $6TN 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: 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 12: Superior Consumer Experience
Slide 13: Superior Consumer Experience
Superior Consumer Experience ROCKET ‘Companies In complex transactions where the legacy experience can be confusing and discouraging, Rocket provides simple, fast, and trusted digital solutions. ROCKET Mortgage (698) 452-8179 TalkToUs TRADITIONAL INDUSTRY ROCKET Your Mortgage EXPERIENCE EXPERIENCE T
Slide 14: Simplifying Complex Transactions
ROCKET ‘Companies Simplifying Complex Transactions ROCKET Rocket's proprietary technology Rn raee Mortgage delivers a seamless digital You're pre-approved experience for our clients. fora loan up to °456,000 Goi That covers the basics. Now, let's talk numbers. Home price $330,000 Download your lette
Slide 15: Rocket's End-to-End Home Buying Experience
ROCKET Companies Rocket's End-to-End Home Buying Experience Cross-Sell Opportunities Home Search Home Buying & Selling | Home Financing Home Closing Mortgage Servicing ROCKET ROCKET ROCKET AMROCK ROCKET Homes Homes Mortgage Mortgage alm @—-@—-Oe 6 @ Illustrative transaction: $13,500 + $3,000 GP $1,5
Slide 16: Expanding Across Product Categories
ROCKET Expanding Across Product Categories Leveraging advantages in client acquisition, data, and technology, the Rocket platform is expanding ROCKET Solar across complex transactions including home search and sales, automotive retail, personal finance, and residential solar. Choos Monthly ¥ a Tr tn
Slide 17: Powered by Proprietary Technology Stack
Powered by Proprietary Technology Stack Proprietary technology developed by 3,000+ DIGITAL POINT-OF-SALE technology and product strategy team members drives our entire operating process. PARTNER API PLATFORM Digital Software- Client Client Driven Servicing & Acquisition Workflows Retention DATA SCIE
Slide 18: Backed by the Rocket Cloud Force
ROCKET ‘Companies Backed by the Rocket Cloud Force Our highly-trained Rocket Cloud Force is focused on delivering award-winning client experiences and optimizing profitability. Sales Professionals Client interactions per month
Slide 19: Rocket Pro API: Extending to our Partners
~ Kea Extending to our Partners We enable clients to engage with the Rocket platform in the way that works best for them, including with our Rocket Professional partners CONSUNERID AT j j j iai j ij EN Consumer Contact or integrated directly in partner digital experiences via our APIs. pL) Record a
Slide 20: Driving Deeper Client Engagement
rr . ROCKET Driving Deeper Client Engagement Companies ROCKET + ROCKET Companies Money (Truebill) Helping Consumers Manage Their Entire Financial Lives #1 Consumer Tech $100B+t Transaction Company! cel This For Me Volume nee ror Analyzed/Month? Premium Annualized Paying Recurring Members? Revenue? C
Slide 21: Trusted Digital-First Brand
Slide 22: Trusted, Digital First Brand
ROCKET Companies Trusted, Digital First Brand ROCKET | ROCKET 22
Slide 23: With National Brand Recognition
ROCKET ‘Companies With National Brand Recognition / se Rocket's trusted, nationally recognized, digital-first A , brand, backed by billions of dollars of investment +S. Q U A R ES J over many years, is a competitive advantage that z is difficult to replicate. #1 5 pF ccer Mutgage Classic « DETROIT M
Slide 24: Primary Mortgage Origination / Servicing
PRIMARY PRIMARY MORTGAGE MORTGAGE ORIGINATION SERVICING
Slide 25: Platform Advantage
4 Platform .. i! Advantage ° ONE 25
Slide 26: The Rocket Flywheel
ROCKET The Rocket Flywheel Companies The core of our economic flywheel is that we are constantly leveraging our profitability See Sie advantages to reinvest in the business, further strengthening our competitive position. pr P Proven Efficiency Share Gains Leveraging Data Lake Scaling New Businesses
Slide 27: Multiple Drivers of Growth
Multiple Drivers of Growth DIRECT-TO-CONSUMER * Investing in brand and client acquisition * Growing digital adoption RETAINING CLIENTS FOR FUTURE TRANSACTIONS + 90%+ Net Client Retention! + Lifetime repeat transaction and cross-sell opportunity Current Mortgage Info Your Mortgage Save $360/month POW
Slide 28: Long-Term Mortgage Market Share Gains
ROCKET Companies Long-Term Mortgage Market H 8.8% Share Gains 7.8% 6.4% 5.1% 4 ao, 5.0% 5.0% 5 0% 4.4% 3.4%, 2.0% 1.3% Use $69 $77 $78 $57 $25 $28 $29 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ll Rocket Originations ($ in B) —®=Rocket Market Share 28
Slide 29: Proven Efficiency
Proven Efficiency ROCKET ‘Companies Highly efficient operating model with the ability to drive substantial scale from a single platform > 3x’ with limited incremental cost. Industry Average Transaction Volume per Production Team Member 6.7 # of Loans per Production Team Member per Month COO 2019 TT
Slide 30: Strong Client Base Unlocks Platform Potential
— ROCKET . ompanies Strong Client Base Unlocks Platform Potential 90%+ Retention drives substantial lifetime value Vv) advantages, with repeat transaction opportunities 2 e across home, auto, personal finance, and other categories over the client's life. Client loans serviced? Net Client Retention R
Slide 31: Proven Leadership and Culture
os Ae - 5) proven (Ui " Leadership and Culture 3 WORK HARD, PLAY HARD, a4
Slide 32: Proven track record over decades
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 33: Rocket Companies Leadership
ROCKET Rocket Companies Leadership JAY FARNER BOB WALTERS Vice Chairman & Chief Executive Officer President & Chief Operating Officer Rocket Companies Rocket Companies 27 Years 26 Years JULIE BOOTH Chief Financial Officer & Treasurer Rocket Companies 19 Years © © ~~ TIM BIRKMEIER ANGELO VITALE BILL
Slide 34: 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 35: Love Our Team Members
Love Our Team Members Our team members put the ISMs into action every day. The result is an empowered and passionate team aligned in a common mission. ROCKET Companies D o oO ESSENCE Forbes POL Forbes FORTUNE FORTUNE e e e 2 2. 2 2 #1 Best The Best Best Companies #3 America’s Best 100 Best #6 Best L
Slide 36: 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 37: Appendix
Slide 38: Financial Highlights
Financial Highlights (Units in ‘000s and $ in M) Closed Loan Volume YoY Growth % QoQ Growth % Net Rate Lock Volume YoY Growth % Q0Q Growth % Gain on Sale Margin Amrock Closings (units) YoY Growth % Adjusted Revenue YoY Growth % QoQ Growth % Adjusted EBITDA % Margin Adjusted Net Income (Loss) % Margi
Slide 39: Our Companies
Our Companies HOME SEARCH & SALES HOME FINANCING ROCKET _ Seamless, fully-integratedhome ROCKET “ortgage originator and Homes buying and selling experience Mortgage servicer that provides clients via real estate agent network with an end-to-end digital and home search site. mortgage experience. ANS
Slide 40: Endnotes: Adjusted EBITDA reconciliation
Endnotes Adjusted EBITDA reconciliation ($ amounts in millions) Netincome Interest and amortization expense on non-funding debt Income tax provision Depreciation and amortization Share-based compensation expense (a) Change in fair value of MSRs due to valuation assumptions (net of hedges) (b) Litiga
Slide 41: Endnotes: Adjusted Revenue Reconciliation
~ ROCKET Endnotes 1. ‘Three Months Ended June 30, Year Ended December 31, 2022 2021 2020 2021 2020 Adjusted Revenue Reconciliation ($ amounts in millions) (Unaudited) (Unaudited) Total Revenue, net $1,392 $2,668 $5,009 $12,914 $15,650 Change in fair value of MSRs due to valuation assumptions (net of
Slide 42: Endnotes: Adjusted Net Income Reconciliation
Endnotes ‘lo Adjusted Net Income (Loss) Reconciliation ($ amounts in millions) Net income attributable to Rocket Companies Net income impact from pro forma conversion of Class D common shares to Class A common shares (a) Adjustment to the provision for income tax (b) Tax-effected net income (b) Shar
Slide 43: Endnotes
~~ 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 44: Rocket Companies
ROCKET Companies
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