Uwm Holdings Corporation · NYSE:UWMC
Uwm — Gores Holdings IV — SPAC Merger (September 2020)
44 slides from Uwm's SPAC merger presentation, Sep 23, 2020
Slide 1: Investor Presentation September 2020
Exhibit 99.2 Investor Presentation SEPT 2020 Exhibit 99.2 Investor Presentation SEPT 2020
Slide 2: Disclaimer
No content left No content right of this line of this line Disclaimer Information in this presentation is being furnished on a confidential basis solely for use by the recipient in making its own evaluation of United Shore Financial Services, LLC (“UWM”) and its business, assets, financial condition
Slide 3: Presenters and Senior Leadership
No content left No content right of this line of this line Presenters and Senior Leadership Place content Place content United Wholesale Mortgage Gores Holdings IV below this line below this line 000 089 150 247 137 052 Mat Ishbia, CEO Tim Forrester, CFO Alec Gores, Chairman Mark Stone, CEO 112 048
Slide 4: Overview of Gores SPAC Franchise
No content left No content right of this line of this line Overview of Gores SPAC Franchise Place content Place content Gores Holdings IV Premier SPAC Track Record below this line below this line Alignment with Proven SPAC Track Record Key Stakeholders 000 089 150 • Three completed transactions and
Slide 5: Table of Contents
Table of Contents COMPANY OVERVIEW 01 OVERVIEW OF THE WHOLESALE 02 CHANNEL KEY INVESTMENT HIGHLIGHTS 03 FINANCIAL OVERVIEW 04 TRANSACTION OVERVIEW & VALUATION CONSIDERATIONS 05 Table of Contents COMPANY OVERVIEW 01 OVERVIEW OF THE WHOLESALE 02 CHANNEL KEY INVESTMENT HIGHLIGHTS 03 FINANCIAL OVERVIEW
Slide 6: Company Overview
01 Company Overview 01 Company Overview
Slide 7: UWM Is The Largest Wholesale Originator With Dominant Market Position
No content left No content right of this line of this line UWM Is The Largest Wholesale Originator With Dominant Market Position Place content Place content below this line below this line • We are the #2 mortgage originator and the #1 (1) 000 wholesale originator in the U.S. 089 150 33% Share 89% •
Slide 8: Our Culture Drives a Durable Competitive Advantage
No content left No content right of this line of this line Our Culture Drives a Durable Competitive Advantage Place content Place content below this line below this line UWM’s Six Pillars 000 089 150 247 137 052 RELATIONSHIP THUMB CONTINUOUS FUN AND PEOPLE SERVICE DRIVEN POINTERS IMPROVEMENT FRIENDS
Slide 9: UWM Has Continuously Innovated to Deliver Exponential Growth
No content left No content right of this line of this line UWM Has Continuously Innovated to Deliver Exponential Growth 2020+: Dominant Player in High Originations Over Time Growth Wholesale Channel ($Bn) · Grew to #2 originator in Place content Place content below this line below this line the US ·
Slide 10: Overview of the Wholesale Channel
02 Overview of the Wholesale Channel 02 Overview of the Wholesale Channel
Slide 11: Overview of Business Model
No content left No content right of this line of this line Overview of Business Model Place content Place content B2C: Direct to Consumer Channel B2B2C: Wholesale Channel below this line below this line 000 089 150 B2B 247 137 052 112 B2C Mortgage 048 160 Brokers 053 160 146 B2C 091 155 213 112 173
Slide 12: Differentiated Business Model
No content left No content right of this line of this line Differentiated Business Model Wholesale Channel Offers Scalability and Flexibility While Building Real Relationships with Brokers Advantages and Disadvantages Segment Leaders Place content Place content below this line below this line 000 û
Slide 13: Wholesale Channel is a Win, Win, Win
No content left No content right of this line of this line Wholesale Channel is a Win, Win, Win Place content Place content below this line below this line Benefits to Borrowers Benefits to Brokers Benefits to UWM 000 089 150 • Broker serves as trusted advisor on • Brokers can continue to maintain 2
Slide 14: Evolution in the Wholesale Mortgage Channel
Action 2006 2020 Licensing Limited state NLMS Brokers are: licensing requirments & financial Best Option For fitness / • Consumers - rates & fees education • Loan originators – options/holding lenders accountable standard Faster, easier, cheaper option Compensation No limit Lender • (why it used to
Slide 15: Key Investment Highlights
03 Key Investment Highlights 03 Key Investment Highlights
Slide 16: Key Investment Highlights
No content left No content right of this line of this line Key Investment Highlights Place content Place content below this line below this line 1 Leading Player in a Massive Market With Structural Tailwinds 000 089 150 2 Best-In-Class Broker Experience Leading to #1 Wholesale Market Position 247 13
Slide 17: Leading Player In A Massive Market
No content left No content right of this line of this line 1 Leading Player In A Massive Market... Place content Place content below this line below this line Gigantic End Market... ...With Significant Room for Consolidation Q2’20 Balance Outstanding ($Tn) Combined Market Share of Top 2 Players (%)
Slide 18: With Structural Tailwinds
No content left No content right of this line of this line 1 ...With Structural Tailwinds Wholesale Channel Share Expected to Grow, Supported by Trends in Broader Financial Services Place content Place content Wholesale Channel Share of Overall Mortgage Market Case Study – Wealth Management below th
Slide 19: Shifting Demographics and Steady Home Price Appreciation
No content left No content right of this line of this line 1 ...With Structural Tailwinds (cont’d) Shifting Demographics and Steady Home Price Appreciation Driving Higher Mortgage Purchase Volumes Young Adults at Inflection Point in Headship Rates Household Formation Rates Increasing for Important C
Slide 20: Lower for Longer Rate Environment Boosting Refi Volume
No content left No content right of this line of this line 1 ...With Structural Tailwinds (cont’d) Lower for Longer Rate Environment Boosting Refi Volume Place content Place content below this line below this line Early Days in a Multiyear Refi Boom (%) Current 000 Mortgage 100 089 Rate: 2.91% 150 $
Slide 21: Best-in-Class Broker Experience Leading to #1 Wholesale Market Position
No content left No content right of this line of this line 2 Best-in-Class Broker Experience Leading to #1 Wholesale Market Position UWM Provides White-labeled Proprietary Technology and Marketing Tools to Brokers Place content Place content below this line below this line Broker 000 089 150 247 137
Slide 22: Best-in-Class Broker Experience: Average Broker Shop
No content left No content right of this line of this line 2 Best-in-Class Broker Experience Leading to #1 Wholesale Market Position Place content Place content below this line below this line Average Broker Shop 000 089 • 4 Loan Officers 150 • 1 Processor • Local Focus 247 137 • 15-20 loans / month
Slide 23: Differentiated Experience Drives Large and Diversified Broker Base
No content left No content right of this line of this line 2 Best-in-Class Broker Experience Leading to #1 Wholesale Market Position Differentiated Experience Drives Large and Diversified Broker Customer Base Place content Place content below this line below this line White Glove 100% Focused on Lea
Slide 24: Technology and Data & Analytics
No content left No content right of this line of this line 3 Technology and Data & Analytics... Sophisticated and Dynamic Pricing Engine Customized for Various Broker Cohorts Place content Place content below this line below this line Daily Market Surveillance and Monitoring Allows UWM to Continuous
Slide 25: Support Continued Pole Position
No content left No content right of this line of this line 3 ...Support Continued Pole Position Place content Place content UWM Origination Volume Wholesale Share of Overall Market and UWM Share below this line below this line ($Bn) (%) 33% 000 33% 089 150 240 $153Bn 247 LTM Aug. ‘20 137 210 052 200
Slide 26: Accelerating Scale Drives Faster Speed, Better Service, and Lower Cost
No content left No content right of this line of this line 4 Accelerating Scale Drives Faster Speed, Better Service, and Lower Cost Place content Place content Faster Close Time... … More Efficient… 1 2 below this line below this line Application to Ready-to-Close 2019 Avg. Loans per Month per Produ
Slide 27: Resilient Platform With Ability To Scale In Every Rate Environment
2012 Data to come from Company No content left No content right of this line of this line Resilient Platform With Ability To Scale In Every Rate Environment 5 Company to Provide GoS margin over past 5 years Place content Place content Total Originations Growth Gain Margin Relative to 10Y Treasury Ra
Slide 28: MSR Retention Strategy to Provide Natural Hedge
No content left No content right of this line of this line 5 MSR Retention Strategy to Further Provide A Natural Hedge Across Rate Environments Place content Place content Servicing Portfolio Growth below this line below this line ($Bn) 000 089 150 ü Source of recurring and predictable cash revenue
Slide 29: Compelling Financial Profile
No content left No content right of this line of this line 6 Compelling Financial Profile... Originations Place content Place content ($Bn) below this line below this line Model minimizes 240 210 Balance sheet light 200 credit risk 000 089 108 150 42 1H’20: 30 74 247 137 Fully developed technology p
Slide 30: With Multiple Growth Levers
No content left No content right of this line of this line 6 … With Multiple Growth Levers Company to Provide GoS margin over past 5 years Place content Place content MS to summarize table to below this line below this line showcase UWM stability & Indexed YoY Total Originations Growth Since 2015 Se
Slide 31: Organization Built On Strong Culture & Exceptional Leadership Team
No content left No content right of this line of this line 7 Organization Built On Strong Culture & An Exceptional Leadership Team Transformation Under Mat’s Leadership Place content Place content below this line below this line Originations ($Bn) 200 000 089 150 TIM FORRESTER MAT ISHBIA MELINDA WIL
Slide 32: Organization Built On Strong Culture & Exceptional Leadership
No content left No content right of this line of this line 7 Organization Built On Strong Culture & An Exceptional Leadership Place content Place content below this line below this line 000 • 100% family owned business 089 150 with dedicated management from Mat Ishbia (CEO) and 247 oversight provide
Slide 33: Financial Overview
04 Financial Overview 04 Financial Overview
Slide 34: Historical Originations Overview
No content left No content right of this line of this line Historical Originations Overview Origination Volume Place content Place content Commentary (1) below this line below this line 1.6% 2.5% 4.6% 4.6% ($Bn) Market Share 000 089 153 150 108 • Strong growth as wholesale channel continues to take
Slide 35: Historical Financial Overview
No content left No content right of this line of this line Historical Financial Overview (Cont’d) Place content Place content Revenue Adj. Net Income below this line below this line ($MM) ($MM) Adj. Net Income Margin (%) 000 089 17% 11% 25% 43% 150 1,307 3,051 247 137 052 112 048 160 1,276 053 160 3
Slide 36: Financial Projection – Key Assumptions
No content left No content right of this line of this line Financial Projection – Key Assumptions Place content Place content below this line below this line • Industry forecast for total market originations: $3.0Tn in ’20E, $2.6Tn in ’21E, $2.6Tn in ’22E Market Originations and 000 • Growth of whol
Slide 37: Financial Projection – Key Income Statement Metrics
No content left No content right of this line of this line Financial Projection – Key Income Statement Metrics Origination Volume Net Revenue Market Share Gain Margin (bps) Place content Place content ($Bn) ($MM) below this line below this line (1) 114 81 94 180 209 180 166 240 1.6% 2.5% 4.6% 4.6% 2
Slide 38: Transaction Overview & Valuation Considerations
05 Transaction Overview & Valuation Considerations 05 Transaction Overview & Valuation Considerations
Slide 39: Transaction Summary
No content left No content right of this line of this line Transaction Summary (1) Place content Place content • Pro forma fully diluted equity value of $16,052MM, 9.5x multiple of 2021E Net Income below this line below this line • Current owners will retain ~94% ownership in public UWM • The transa
Slide 40: Exceptional Financial Outlook Relative to Peers
No content left No content right of this line of this line Exceptional Financial Outlook Relative to Peers... 2019A-2022E Revenue Growth CAGR 2019A-2022E EPS Growth CAGR (%) (%) Place content Place content below this line below this line 61% 80% 35% 000 24% 089 150 15% 14% 11% Median: 7.7% Median: 5
Slide 41: Attractive Entry Valuation Providing Significant Return Potential
No content left No content right of this line of this line ...With Attractive Entry Valuation Providing For Significant Return Potential Place content Place content below this line below this line 2021E Price / Earnings 2022E Price / Earnings 000 089 Median: 17.1x 150 Median: 15.0x 18.1x 19.0x 18.7x
Slide 42: Appendix
Appendix Appendix
Slide 43: Financial Projection Highlights: Key Performance Metrics
No content left No content right of this line of this line Financial Projection Highlights Key Performance Metrics Place content Place content below this line below this line 000 089 150 ($ in millions) 2018 2019 2020E 2021E 2022E Key Metrics 247 137 052 Total Originations ($Bn) $ 42 $ 108 $ 200 $ 2
Slide 44: Financial Projection Highlights: Adjusted EBITDA and Adjusted Net Income
No content left No content right of this line of this line Financial Projection Highlights Adjusted EBITDA and Adjusted Net Income Detailed Projections Place content Place content below this line below this line 000 089 Adjusted EBITDA 2017A 2018A 2019A 2020E 2021E 2022E 150 Pre-Tax Income $ 115 $ 9