Anywhere Real Estate — Q3 2024 Earnings Presentation
30 slides from Anywhere Real Estate's earnings presentation, Nov 7, 2024
Slide 1: Earnings Call Q3 2024
Earnings Call Q3 2024 %* Anywhere
Slide 2: Management Presenters
Management Presenters Ryan Schneider Charlotte Simonelli Alicia Swift Chief Executive Officer Executive Vice President and Senior Vice President, Investor Relations and President Chief Financial Officer and Treasury 2
Slide 3: Important Disclosures
Important Disclosures Forward-Looking Statements This presentation contains forward-looking statements. The Company desires to take advantage of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995 and is including this statement for the express purpose of availing itse
Slide 4: Our Business
Our Business 4
Slide 5: The Anywhere Network
The Anywhere Network As a leader of Integrated Residential Real Estate Services in the U.S., we combine the world’s most extensive agent network, industry-leading brands, integrated services, and innovative product and technology capabilities to lead the world on a better real estate journey. Full-s
Slide 6: Recognized as an Industry Leader in Culture and Talent
Recognized as an Industry Leader in Culture and Talent Recognition Community Commitment • Named in 2024 to Fortune's Most Innovative • Fair Housing Pledge Companies, Forbes' World's Best Employers • Agents of Change Program and Best Employers for Diversity, and World's Most Ethical Companies for the
Slide 7: Investment Highlights
Investment Highlights 7
Slide 8: Anywhere has the Assets to Win
The opportunity to drive change at scale that comes with closing ~1 million homesale sides annually A nationwide network of trusted advisors Anywhere has Industry’s leading franchise business with six nationally recognized brokerage brands the Assets to Win End-to-end national assets in brokerage, m
Slide 9: Attractive Franchise Power
Attractive Franchise Power Unmatched Brand Portfolio Fast Facts1 • Anywhere Real Estate is the #1 real estate franchisor in the U.S., including two of the top five and six of the top 15 franchise brands in U.S. real estate • Nationwide footprint with ~2,000 total franchisees • Typical new U.S. contr
Slide 10: Leading Provider of Title & Settlement Services
Leading Provider of Title & Settlement Services Title Agency Operations Upward Title (launched 2023)1 • Full-Service title, escrow and settlement services across more than 40 • New multi-franchise title joint venture offering, exclusively for affiliates brand names • Upward JVs are full-service titl
Slide 11: Leadership in Technology and Data
Leadership in Technology and Data High Impact Technology And Products API Connectivity Generative AI Leadership Personalized agent and franchisee technology to developers.anywhere.re enables freedom, Aggressive generative AI agenda to drive enhance productivity flexibility, and choice for third part
Slide 12: Anywhere is Focused on Agent and Consumer Pain Points
Anywhere is Focused on Agent and Consumer Pain Points How We Get There Making the Real Estate Transaction Simpler for The Line-of-sight Innovation is Attractive for Agents and Consumers the Ecosystem IMPROVE BUYING AND SELLING EXPERIENCE ACROSS THE CONSUMERS WIN "FULL BUY BOX" OF REAL ESTATE • Highe
Slide 13: Third Quarter Results
Third Quarter Results 13
Slide 14: Q3 2024 By The Numbers
Q3 2024 By The Numbers FLAT Y/Y $1.5B $94M 1 Combined Transaction Volume Revenue Generated Operating EBITDA Revenue Balance Sheet $99M $30M Optimization 1 Realized Cost Savings Repaid our $196M Term Loan A Free Cash Flow ($90M realized cost savings year-to-date) and repurchased Unsecured (On track t
Slide 15: Transaction Volume
Transaction Volume Q3 2024 vs. Q3 2023 Anywhere Combined Closed Homesale Sides (5)% Average Homesale Price 6% Combined Total Homesale Transaction Volume (sides x price) —% 1 Anywhere Brands - Franchise Group Closed Homesale Sides (5)% Average Homesale Price 7% Total Homesale Transaction Volume (side
Slide 16: Key Revenue Drivers
Key Revenue Drivers Q3 2024 vs. Q3 2023 Amount % Change 1 Anywhere Brands - Franchise Group Closed Homesale Sides 189,833 (5)% Average Homesale Price $502,512 7% Average Broker Commission Rate 2.41% (4) bps Net Royalty per Side $456 3% Anywhere Advisors - Owned Brokerage Group Closed Homesale Sides
Slide 17: Revenue Details
Revenue Details Net Revenue ($ in millions) Q3 2024 Q3 2023 $ Change 1 Franchise Group $ 267 $ 271 $ (4) Owned Brokerage Group 1,258 1,309 (51) Title Group 96 93 3 2 Corporate & Other (86) (89) 3 Total Revenue $ 1,535 $ 1,584 $ (49) 1. Franchise Group is inclusive of Anywhere Leads Group and Cartus
Slide 18: Operating EBITDA Details
Operating EBITDA Details Operating EBITDA ($ in millions) Q3 2024 Q3 2023 $ Change 1 Franchise Group $ 151 $ 155 $ (4) Owned Brokerage Group (11) (8) (3) Title Group 1 2 (1) Corporate & Other (47) (42) (5) Operating EBITDA $ 94 $ 107 $ (13) 1. Franchise Group is inclusive of Anywhere Leads Group and
Slide 19: Operating EBITDA without Intercompany Royalty
Operating EBITDA without Intercompany Royalty Operating EBITDA ($ in millions) Q3 2024 Q3 2023 $ Change Franchise Group $ 65 $ 66 $ (1) Owned Brokerage Group 75 81 (6) Franchise & Owned Brokerage Combined $ 140 $ 147 $ (7) Note: The segment numbers noted above do not reflect the impact of intercompa
Slide 20: Advisors: Quarterly Agent Commission Split Rate
Advisors: Quarterly Agent Commission Split Rate Quarterly Agent Commission Split (Commission Expense divided by Gross Commission Income) (%) 82.0% 80.5% 80.3% 80.3% 80.4% 80.1% 80.1% 80.2% 80.0% 79.8% 80.0% 79.6% 79.2% 10 consecutive quarters with stable commissions around 80%, underscoring our stro
Slide 21: Operating, Marketing, and G&A by Segment
Operating, Marketing, and G&A by Segment For the Four-Quarter Period Ended September 30, 2024 ($ in billions) General and Operating Marketing Total Administrative 1 Franchise Group $ 0.2 $ 0.1 $ 0.1 $ 0.4 Owned Brokerage Group 0.9 0.1 0.1 1.1 Title Group 0.3 — 0.1 0.4 2 Corporate & Other (0.3) — 0.1
Slide 22: Anywhere 2024 Cost Savings Plan
Anywhere 2024 Cost Savings Plan Targeting $120 million of realized cost savings in 20241 We continue to change how we operate to 10% 15% capture efficiencies and lower expenses across the enterprise 20% Approximate We expect cost savings to be realized evenly Distribution throughout the year and con
Slide 23: Historical Cost Savings Delivery
Historical Cost Savings Delivery 1 2 Anywhere Realized Cost Savings by Year ($M) Anywhere Actual Flow Through of Savings to Expenses ($M) We realized approximately $600M of total cost savings ~$220 ($350) between 2019 and 2023 2,134 ~$150 1,784 Approximately 40% of total cost ~$85 savings were offse
Slide 24: Transformed Debt Stack
Transformed Debt Stack December 31, 2019 ($M) Total Debt 3,472 • Optimizing our balance sheet is a top allocation 1,314 priority, alongside investing in the business 407 1,058 • Reduced overall gross debt by over $900M (or 26%) 717 since 2019 550 550 190 ◦ In 2023, reduced debt by ~$310M through bon
Slide 25: Capitalization Table
Capitalization Table Pricing Maturity As of September 30, 2024 1 2 Revolving Credit Facility SOFR+10bps+175 July 2027 $ 500 Senior Secured Second Lien Notes 7.000% April 2030 640 Senior Notes 5.750% January 2029 558 Senior Notes 5.250% April 2030 449 Exchangeable Senior Notes 0.250% June 2026 403 Fi
Slide 26: Appendix
Appendix 26
Slide 27: GAAP Reconciliation
GAAP Reconciliation For the three months ended ($ in millions) 9/30/2024 9/30/2023 Net income attributable to Anywhere $ 7 $ 129 Income tax expense 2 45 Income before income taxes 9 174 Add: Depreciation and amortization 48 50 Interest expense, net 38 37 1 Restructuring costs, net 6 9 2 Impairments
Slide 28: GAAP Reconciliation
GAAP Reconciliation For the three months ended ($ in millions) 9/30/2024 9/30/2023 Franchise Group $ 151 $ 155 Owned Brokerage Group (11) (8) Title Group 1 2 Corporate and Other (47) (42) Operating EBITDA $ 94 $ 107 Less: Depreciation and amortization 48 50 Interest expense, net 38 37 Income tax exp
Slide 29: GAAP Reconciliation
GAAP Reconciliation For the three months ended ($ in millions) 9/30/2024 9/30/2023 Net income attributable to Anywhere $ 7 $ 129 Income tax expense 2 45 Income tax payments — (1) Interest expense, net 38 37 Cash interest payments (32) (53) Depreciation and amortization 48 50 Capital expenditures (18
Slide 30: Thank You
WE MOVE THE FUTURE ANYWHERE REAL ESTATE INC 30 anywhere’ ak CENTURY 21. SB. COVCOTaN BANKER Thank You Anywhere Integrated €cartus Services *