Better Home & Finance Holding Company · NASDAQ:BETR
Better Home & Finance — Better Holdco — SPAC Merger (May 2021)
43 slides from Better Home & Finance's SPAC merger presentation, May 11, 2021
Slide 1: Investor Overview May, 2021
Investor Overview May, 2021
Slide 2: Disclaimer: Important Information for Investors and Stockholders
Disclaimer Important Information for Investors and Stockholders This presentation relates to a proposed transaction between Aurora Acquisition Corp. (“Aurora”) and Better Holdco, Inc. (“Better” or the “Company”) and is for informational purposes only. This presentation does not constitute an offer t
Slide 3: Disclaimer: Forward Looking Statements
Disclaimer Forward Looking Statements There may be other risks not presently known to us or that we presently believe are not material that could also cause actual results to differ materially. Analysis and opinions contained in this document may be based on assumptions that, if altered, can change
Slide 4: Today's Presenters
Today’s Presenters Better 4 • One of the most pre-eminent investors in the Global TMT Industry • Iceland’s first billionaire • Chairman of Novator Capital • Extensive investment track record: • Founder, PLAY in Poland • Founder, WOM S.A. in Chile • CCP (computer games) • Actavis (now Allergan) • NYU
Slide 5: Overview of Novator Capital
Overview of Novator Capital Better 5 • Novator Capital is an investment firm specializing in capital markets and pre-IPO private equity investments, founded and led by the Icelandic businessman Björgólfur Thor Björgólfsson • Novator Capital manages partners’ internal funds only, which gives an edge
Slide 6: Overview of Aurora
Overview of Aurora Better 6 Sponsored by Novator Capital, an investment firm managing private capital with a focused but flexible investment structure, approach and period. • High-caliber leadership team • Proven value-creation track record: investments, entrepreneurship, turnarounds • Alignment of
Slide 7: Aurora – a Better Partner
Better 7 Aurora – a Better Partner 1 Management team with Founders of large and disruptive Businesses 2 Sponsor with high conviction and long-term investment style 3 Deep expertise in Technology industry 4 High caliber shareholders with deep experience in FinTech 5 Access to our large network of lea
Slide 8: Rationale for Better
Rationale for Better Better Huge Market The homeownership market has a tremendous market opportunity, cumulatively $15 trillion+ Highly Fragmented Market Market is highly fragmented and characterized by an excessive amount of intermediaries, high transaction costs, extended underwriting processes an
Slide 9: Making homeownership more affordable and accessible
Better We’re making homeownership more affordable, more accessible, and just plain Better for all Americans and eventually everyone else 9
Slide 10: Our goal is to be the home for every consumer's home
Our goal is to be the home for every consumer’s home Better Description Home Finance Full range of mortgage and home equity products LAUNCHED Jan 2016 Home Services Home services and improvement loans LAUNCH EXPECTED 2H 2021 Financial Network Personal, auto, student, credit cards, life & disability
Slide 11: Fastest growing homeownership enablement platform in America
96.1% We are the fastest growing homeownership enablement platform in America1 Better Our technology-driven platform delivers the best customer experience at the lowest price 2019A $89 2020A $876 2021E $1,387 2022E $2,705 2023E $5,140 80.4% 884% 58% 95% 90% Implied Market Share3 2019A $5 2020A $24 2
Slide 12: Technology enables us to provide better value to our customers
Technology enables us to provide better value to our customers Better Technology-Driven Competitive Advantage Our competitive advantage comes from leveraging our technology to reduce prices for our customers, to surface the widest range of products, and to match customers instantly and frictionlessl
Slide 13: Meet the Better team
Meet the Better team Better Mix of technology, mortgage, and financial markets expertise differentiated in the homeownership industry 100% of technology platform developed in-house with industry- leading engineering team Vishal Garg Founder & CEO MyRichUncle, Founder 1/0 Capital, Founder Kevin Ryan
Slide 14: Homeownership market is enormous
Homeownership market is enormous… Better $7 Trillion $11 Trillion $15+ Trillion ~4T2 Financial Network ~2T Insurance (Title & Home) ~33tn U.S. Housing Market ~11tn1 U.S. Mortgage Core Expansion $5T4 Consumer Financial Network $3T1 U.S. Home Finance $4T2 International Home Finance $4T3 Home Services
Slide 15: …and yet, so broken
…and yet, so broken. Consumers deal with repetitive data requests, high fees, and a lack of certainty Better 1 Realtor.com - “How Much Are Mortgage Fees?” 2. Realtor.com - “How Long Does It Take to Get a Mortgage?” 3 CNN Money - “500-page Mortgage Applications are the New Normal” Trulia - “Sale Fail
Slide 16: Seamless, best-in-class customer experience
We provide a seamless, best-in-class customer experience Zero commissions Deflating traditional mortgage costs 100% online application Save time, money, and stress A few quick questions Where are you in your home loan journey? Automated soft credit check Customized certainty, on your own time Pre-Ap
Slide 17: Lower rate and better experience for our customers
We deliver a lower rate and better experience for our customers Better 1. Better Price Guarantee: Better will match any valid competitor's offer, and credit customer an extra $100. If we can't, the $100 is the customer's to keep. 2. Better Mortgage saves refinance customers $8,200 a year on average
Slide 18: Home finance lifecycle and Tinman platform
Home finance lifecycle Our technology platform, Tinman, was built from scratch and drives our entire ecosystem Loan Purchasers Better Real Estate Agents Better Title and Settlement Services Better Insurance Better Team Members Manual tasks to non- licensed team members Customer-facing tasks to licen
Slide 19: Tinman removes human bottlenecks through automated decisioning
Tinman removes human bottlenecks from the transaction process through its automated decisioning engine TINMAN Machine-driven Process Customer Interacts with single system Operations Team Pushing tasks to process- centric humans Third Party Systems Pulling data via APIs Sales Team Pushing interaction
Slide 20: Tinman automates tasks to streamline the customer journey
Tinman automates tasks to streamline the customer journey Better • Tinman breaks down specialized, human-generated tasks into simple, machine-driven tasks to improve labor liquidity and lower overall labor costs • Average funded loan now features >400 fully automated activities - as more processes a
Slide 21: Industry-leading productivity and labor cost advantage
Tinman enables industry-leading productivity and provides us with a massive labor cost advantage Better • Through our R&D efforts, we continue investing in Tinman to further reduce costs • Pass savings along to the customer to win market share, powering further economies of scale and efficiencies In
Slide 22: Technology improves loan consultant productivity and quality
Our technology improves loan consultant productivity and loan quality through machine-guided decisioning1 Jennifer Mark Better Loan Consultant Better home-grown team member Traditional Mortgage Loan Consultant2 Top 3 originator by $ volume in 2019 1. Source: Better had more loan consultants on the S
Slide 23: Higher quality loans with fewer errors and superior credit performance
Tinman enables us to manufacture higher quality loans with fewer errors and superior credit performance Better • Our technology matches investor criteria directly with verified data from our customer financial and property graph • This provides us with deeper certainty around a customer’s ability to
Slide 24: Asset light business model and Investor Matching Engine
Our business model is asset light as a result of GSE takeout, and augmented through our Investor Matching Engine Better Government-Supported Liquidity Supports Low Rates for Consumer 1. Percent of non-Ally loan origination volume in 2020 2. Source: Urban Institute. Housing Finance at a Glance, April
Slide 25: Go-to-market under our own brand and partners' brands
Go-to-market under our own brand and our partners’ brands Better D2C Own entire customer experience end-to-end ü Direct customer acquisition ü Low-cost value proposition ü Better-branded, high quality customer experience B2B Zero-CAC, co-branding or white-label solutions ü Strong brand affinity ü Po
Slide 26: Helping families afford a better home
Better We are helping families afford a better home, in a better school district, with a better commute To: Vishal Garg From: John D. Subject: Just Wanted to Say Thanks. “This is my first experience shopping for a house. I used other online mortgage companies, but found that your company's portal wa
Slide 27: Our growth flywheel
Growth Product Offerings Customer Experience Organic Traffic Data Our growth flywheel compounds each day that we make homeownership more affordable and accessible for customers
Slide 28: $15+ trillion annual addressable spend
Better U.S. Home Finance | $3.0 trillion1 Home for Your Home On your home screen International Home Finance | $3.6 trillion2 Home Rental | $1.7 trillion3 Home Improvement| $763 billion4 Life Insurance | $1.7 trillion7 Auto Insurance | $880 billion8 Home and Personal Liability Insurance | $764 billio
Slide 29: Inflection point to achieving exponential growth
Better Better 2019 Better 2020 Target for Better 2025 Leading Player in $15tn+ Market $5B Orig. Volume 0.2% Market Share $24B Orig. Volume 0.5% Market Share 29 We've reached an inflection point to achieving exponential growth $89M Revenue $876M Revenue
Slide 30: Scalable platform underlies strong growth and profitability
Better Our scalable platform underlies strong growth and profitability 2019A 2020A (Unaudited)1 2021E 2022E 2023E Origination Volume ($bn) $4.9 $24.2 $57.3 $101.9 $181.0 Implied Market Share 0.2% 0.5% 1.4% 3.2% 5.6% Revenue ($mm) % Growth year-over-year $89.2 250% $875.6 884% $1,387.0 58% $2,704.5 9
Slide 31: Maintain growth and profitability through the cycle
Better Maintain impressive growth & profitability through the cycle Normalized for interest rate movements 2020 COVID Normalized 2023E Origination Volume ($bn) $24.2 $181.0 Implied Market Share (Fannie) 0.5% 5.6% Mortgage Revenue ($mm) $622.1 $4,425.1 Non-Mortgage Revenue ($mm) $39.0 $714.8 Revenue
Slide 32: Building the leading integrated homeownership platform
Better Building the leading integrated homeownership platform ü We are seeking to aggressively grow our non-mortgage revenue by blitz-scaling our Better Plus businesses ü We are just getting started in these businesses today, and are well positioned to capture market share because of our strong cust
Slide 33: Better Real Estate opportunity
Better Better Real Estate is where Better Mortgage was in 2017, in an equally broken, commission-focused industry ü There were approx. 7.5M real estate transactions in 2020 in the U.S. 1 ü Compass has ~4% market share, Redfin has 1% - further demonstrating the huge TAM and massive fragmentation ü Ma
Slide 34: Transaction Overview
Better Transaction Overview 34
Slide 35: Transaction Overview
Better Transaction Overview Transaction Highlights • Transaction values Better at a pre-transaction equity value of $6.9 billion and a pro-forma equity value of $7.8 billion • An affiliate of SoftBank is will invest $1.3 billion in the PIPE • Aurora’s Sponsor, Novator Capital, to invest $200m via PI
Slide 36: Highly attractive initial valuation
Better EV / 2022E Revenue EV / 2022E Revenue / 2022E Growth 0.03x 0.21x 0.38x 1.83x NM 2020A - 2022E Revenue CAGR 75.2% 32.6% 55.4% 7.5% (21.0%) 2.5x 8.5x 13.0x 6.9x 3.8x Better PropTech Tech-Driven Lenders Real Estate Technology Leading Mortgage Highly attractive initial valuation EV / 2022E EBITDA
Slide 37: Appendix
Better Appendix 37
Slide 38: Reconciliation of Non-GAAP Metrics
Better Reconciliation of Non-GAAP Metrics 38 1. 1. The Company’s presentation of financial and operating metrics for the year ended December 31, 2020 included in this presentation are preliminary and unaudited and subject to change in connection with the completion of the Company’s year-end close pr
Slide 39: Summary of Risks: Operating History, Business Model, Growth
Summary of Risks Risks Related to Our Operating History, Business Model, Growth and Financial Condition 1. Our business and operations have experienced rapid growth, and if we do not appropriately manage future growth, if any, or are unable to improve our systems, processes and controls, our busines
Slide 40: Summary of Risks: Market, Industry, Economic Conditions
Summary of Risks Risks Related to Our Market, Industry, and General Economic Conditions 27. Our revenues are highly dependent on macroeconomic and U.S. residential real estate market conditions. 28. Our business is highly dependent on Fannie Mae and Freddie Mac and certain other U.S. government agen
Slide 41: Summary of Risks: Technology and Intellectual Property
Summary of Risks Risks Related to Our Technology and Intellectual Property 51. The success and growth of our business will depend upon our ability to adapt to and implement technological changes. 52. Technology disruptions or failures, including a failure in our operational or security systems or in
Slide 42: Summary of Risks: Ownership of Common Stock
Summary of Risks Risks related to ownership of our common stock 76. There may not be an active trading market for our common stock, which may make it difficult to sell shares of our common stock. 77. Future sales of our common stock, or the perception in the public markets that these sales may occur
Slide 43: Thank You
Thank You