Better Home & Finance Holding Company Class A Common Stock Investor update

Welcome to Better 2.0. This is our first all shareholders welcome call ever in our history as a public company. It's in thanks to our regular common shareholders that we are here today. We want to recognize the craziness that has transpired over the last 2 months with the company. We want to thank you for your patience as we work to make a Better Better. We want to thank you for your confidence and support in bringing myself and a new team onto the board to help right the ship, and get Better back on a path to profitable growth. With that, we've got a couple of slides for a presentation that we want to just share with you. Then from there, I want to spend a lot of time answering your direct questions unfiltered. Let's just go to where we're at.

52% of all the voting shareholders voted to put us back in. When we started this proxy consent process, our lawyers told us that 1.7% of proxy contests seeking to replace the number of board members we were seeking to replace are actually successful over the last 10 years. So it gave us 60 to 1 odds. I said, "Well, the percentage of startups that make it to getting to $100 million of revenue is about 10 basis points." So that's 1,000 to 1 odds. The number that make it to over $1 billion in revenue and have ever gone public is 0.01%. So that's 10,000 to 1 odds. So why not? Let's do 60 to 1 odds. Let's do it. Then they told me that I'd have to fight it with my own money against a team that was funding it with the cash that the company had.

They told me that it might take a year. But thank you to all of you who enabled us to win this clean fight through the will of stockholders submitting green consent forms that they received in the mail from us and sending them back via UPS or the regular mail to us, and honestly, to do it in such a record time in 2 months instead of what people said would typically happen, 12 months or more. I have learned so much in the 8 weeks that I was away. I had a chance to really think about the things that I am good at, that our company is good at, and what we both need to get better at.

You are going to see those learnings manifest themselves in how we run Better 2.0 to realizing what we have long said, that there is a $100 billion market cap company hiding in here. In this business, there is a capacity to make the American dream of homeownership cheaper, faster, easier, and Better, and make Better into a household name. That is what the next couple of years is going to be all about for us, to focus on creating shareholder value by creating value for customers, value for our business partners, and value for our employees. With that, move to the next slide, please. We published a plan outlining our 90-day priorities.

What I heard from many of you over the last eight weeks was that you were happy that we were sharing what we were going to do and that we were going to be reporting back to you on a report card basis through sessions like this and publicly how we are doing. The first item on our 90-day plan was reconstituting the board, which we have done. Watch for more and Better board members to come. But the ones we have already are very, very impressive, and I think a substantial upgrade. Two, appoint an interim CEO. We have a candidate identified, and we are finalizing our engagement with them. There were many of you and many detractors who felt that I would come back and I would not appoint an interim CEO. I want to let you know that we intend to prove you wrong.

We will be appointing an interim CEO in short order. Three, improving operating efficiency. We talked about improving operations efficiency, and we have done so. I think you all might remember the deck that I uploaded where we grew volume from $600 million a quarter to $1.6 billion a quarter while keeping operating expenses the same. We are going to increase up revenue and volume while bringing them down going forward, because we were just really getting to the inflection point of AI making a difference in this business, and having tried to do all the things that I had to get done over the last eight weeks, pretty much with myself and my legal team and the AI, I think we are more AI-pilled than we ever have been before. Three, four, grow Team Member and our HELOC business. HELOC is a no-brainer in a market where it is 7%+ mortgage rates.

We have $21 trillion of home equity that American consumers have, $18 trillion of debts that they have, of which $8 trillion+ has been put on since the pandemic ended. We need to use that home equity to pay down the other more expensive sets of debts that consumers have, and to enable them to improve the houses that they have because they are living in them longer. We plan to be the best place for anyone to get a home equity line of credit in the country. You are going to continue to see us focus on growing that. I want to remind you that we have a unique solution in the market compared to both mortgage companies that offer partnerships, like UWM, Rocket, and others, and HELOC companies like Figure that offer partnerships.

We are the only platform that does HELOCs and mortgages with the best solution for a customer, a mortgage broker, or a partner, a fintech or brand partner, than any of those people. The consumer can move seamlessly between products and can be upsold or downsold any number of products. We think that that is one of our core value propositions as we seek to grow our partnerships in this channel to continue to drive growth. Five, sell the U.K. bank. Before August, when I had to depart, we had lined up a buyer. We got in here, and we have finalized terms with that buyer. We have had that buyer now deposit £10 million in escrow.

We are rushing to get PRA approval for the sale of the bank that we believe will release between 65 million or so of cash to Better, maybe more, maybe less, depending on the bank's loan book and what happens with the bank's operations in the coming months ahead. That should enable us to have a total combined cash balance, as we disclosed, of over $140 million, and a very long runway to fund the business, considering the tangible net worth covenants on our warehouse line's around 35 million. Which basically means there's 105 million of cash to power operations, and almost two years plus of runway to do that, assuming no improvements whatsoever in our burn, which as you know, we're not going to let happen.

The last is with that liquidity that we have to focus on bringing the company back into a place where it was prior to August 3rd for shareholders. That was $27 a share. Then to fair value. Because as you all know, AI mortgage platforms in the private markets trade for anywhere between 10 times to 40 times revenue. Here we are today trading at less than one time revenue for the only proven AI mortgage platform in the entire mortgage industry end to end. I think the company's shares, and so do our board, are unbelievably cheap, and we plan to pursue a repurchase plan as soon as practical. Now on to the next. The two new directors that we've brought on board, Steve Sarracino. His fund, Activant, has invested about $100 million in Better.

He has real skin in the game, and he is delighted to be back on the board and be Activant's representative on the board. Steve was with us for five years during our go-go years in 2018, 2019, 2020, 2021, when we grew the business 100x. He's delighted to be back to help us grow 100x again. Bing Gordon, one of the co-creators of Amazon Prime, head chief product advisor to Jeff Bezos, Silicon Valley legend, co-founder of Electronic Arts, creator of many of the video games that we grew up playing and remember fondly. Amazing at consumer and user interfaces that will delight not only our customers, but also our business partners' customers across a variety of utility functions. A well-known public company board member. Go to the next slide, please. Our permanent CEO search is kicked off already. We are getting proposals from search firms.

We expect to hire a search firm and get this kicked off ASAP to bring a rockstar CEO with the appropriate background in credit, AI, and fintech into the business to support and manage the growth of this business, particularly a lot of the components of running a company that I do not think I am particularly well-suited to do. I joke that I have been the interim CEO actually for the last 12 years. Because honestly, I did not set out to be the CEO. I was running an incubator. I was having a perfectly nice time. We got involved and got it started Better. I was like, "Okay, we are going to get a CEO." Then the series A investors were like, "You need to be the CEO." I think here I am.

I was drafted into the plan, and I am looking forward to drafting someone else into the plan. Page 14, please. Here are the goals. We are going to launch HELOCs on Credit Karma, and we are gunning at it. We are so pumped to do it. There is such a broad cross-section of American consumers. That $21 trillion of home equity wealth, so much of it, 60% plus more of it, resides with the Credit Karma users. We want to go after that in a programmatic way, in a way that has never been done before on Credit Karma. We are super pumped to make that happen. We signed that deal just before my departure in August. We signed it in late July, and we are pumped to get that going. We have five additional household name partners that we were in late-stage to middle-stage conversations with.