Dominion Lending Centres : 2024 Investor Presentation

Dominion Lending Centres Inc.

TSX: DLCG www.dlcg.ca

March 19, 2024

DISCLAIMER	2

THIS PRESENTATION IS BEING SUPPLIED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED, FURTHER DISTRIBUTED OR PUBLISHED IN WHOLE OR IN PART BY ANY OTHER PERSON. THIS PRESENTATION DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER FOR SALE OR SOLICITATION OF ANY OFFER TO BUY ANY SECURITIES NOR SHALL IT OR ANY PART OF IT FORM THE BASIS OF OR BE RELIED ON IN CONNECTION WITH ANY CONTRACT OR COMMITMENT TO PURCHASE SECURITIES.

The information contained in this presentation is provided as at the date of this presentation, may be in summary form and is not purported to be complete. No representation or warranty, express or implied, is made or given by or on behalf of Dominion Lending Centres Inc. ("DLC Inc." or the "Corporation") or any of its employees, officers, directors, advisers, representatives, agents or affiliates as to the accuracy, completeness or fairness of the information contained in this presentation. None of the Corporation, its employees, officers, directors, advisers, representatives, agents or affiliates, shall have any liability whatsoever (in negligence or otherwise, whether direct or indirect, in contract, tort or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.

No Other Authorized Statements or Representations: Readers are cautioned that no director, officer, employee, agent, affiliate or representation of the Corporation is authorized or permitted to make any written or verbal representation or statement concerning the business or activities of the Corporation, except as set out in this presentation. The Corporation expressly disclaims any written or verbal statement in addition to or contrary to anything contained in this presentation, and cautions readers that they are not entitled to rely on any written or verbal statement made by any person to the contrary.

Non-IFRS Measures: Management presents certain non-IFRS financial performance measures which we use as supplemental indicators of our operating performance. These non-IFRS measures do not have any standardized meaning, and therefore are unlikely to be comparable to the calculation of similar measures used by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Adjusted EBITDA is defined as earnings before finance expense, taxes, depreciation, amortization, and any unusual, certain non-cash or one-time items. While adjusted EBITDA is not a recognized measure under IFRS, management believes that it is a useful supplemental measure as it provides management and investors with an insightful indication of the performance of the Corporation. Adjusted EBITDA is an assessment of the normalized results and cash generated by the main operating activities, prior to the consideration of how these activities are financed or taxed, as a facilitator for valuation and a proxy for cashflow. Management applies adjusted EBITDA in its operational decision making as an indication of the financial performance of its main operating activities. Investors should be cautioned, however, that adjusted EBITDA should not be construed as an alternative to a statement of cash flows as a measure of liquidity and cash flows. The methodologies we use to determine adjusted EBITDA may differ from those utilized by other issuers or companies and, accordingly, adjusted EBITDA as used in this presentation may not be comparable to similar measures used by other issuers or companies. Readers are cautioned that adjusted EBITDA should not be construed as an alternative to net income (loss) determined in accordance with IFRS as indicators of an issuer's performance, nor should it be construed as an alternative to cash flows from operating, investing and financing activities as measures of liquidity and cash flows. Adjusted EBITDA margin is defined as adjusted EBITDA divided by revenue.

Please see the Corporation's latest Management Discussion and Analysis ("MD&A") dated March 19, 2024, for the three months and year ended December 31, 2023, for further information on adjusted EBITDA within the "Non- IFRS Financial Performance Measures" section. The Corporation's MD&A is available on SEDAR+ at www.sedarplus.ca.

Forward-Looking Information: Certain statements in this document constitute forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as

"anticipate," "believe," "estimate," "will," "expect," "plan," "intend," or similar words suggesting future outcomes or outlooks. Forward-looking information in this document includes, but is not limited to: the anticipation that housing market headwinds will be partially mitigated through the Corporation's recruiting initiatives and anticipated growth in Velocity usage; and the anticipation that mortgage renewals will continue to be strong, and housing demand will continue to exceed supply.

Such forward-looking information is based on a number of assumptions which may prove to be incorrect. Such forward-looking information is necessarily based on many factors including those identified below that, while considered reasonable by the Corporation as at the date hereof considering management's experience and perception of current conditions and expected developments, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to, changes in taxes and legislation; increased operating, general and administrative, and other costs; changes in interest rates; general business, economic and market conditions; the uncertainty of estimates and projections relating to future revenue, taxes, costs and expenses; the outcome of existing and potential lawsuits, regulatory actions, audits and assessments; and other risks and uncertainties described elsewhere in this document and in our other filings with Canadian securities authorities.

Many of these uncertainties and contingencies may affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of the Corporation. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made in this presentation are qualified by these cautionary statements. The foregoing list of risks is not exhaustive. For more information relating to risks, see the risk factors identified in our Annual 2023 MD&A and 2023 Annual Information Form dated March 19, 2024. The forward-looking information contained in this document is made as of the date hereof and, except as required by applicable securities laws, we undertake no obligation to update publicly or revise any forward-looking statements or information, whether because of new information, future events or otherwise.

TSX: DLCG

Who is DLC Inc.?

1. • DLC Group ("DLCG") is comprised of DLC Inc., MCC, MA and Newton
   • >$56 billion in funded mortgage volumes(1)
   • >8,000 mortgage professionals(2)
   • >540 franchises across Canada(2)
   • ~$24 million adjusted EBITDA(1)(3)
   • ~39% Adjusted EBITDA margin(1)(3)
   • Ownership of one of Canada's leading mortgage submission platforms, Newton Connectivity Systems Inc. ("Newton")
2. For the last twelve months ("LTM") ended December 31, 2023.
3. As at December 31, 2023.
4. Adjusted EBITDA and Adjusted EBITDA margin are non-IFRS performance measures that do not have a standardized meaning. Please see the "Non-IFRS Measures" section of this document for additional information.

TSX: DLCG | www.dlcg.ca

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DLC Inc. Snapshot

Summary Capitalization

Ticker Symbol: TSX	DLCG
Share Price (March 18, 2024)	$2.74
Common Shares Outstanding (Basic) (1)	48.2mm
Market Capitalization	$132.1mm
Net Debt (2)	$34.6mm
Preferred Share Liability (3)	$114.4mm
Enterprise Value	$281.2mm
2023 LTM Adjusted EBITDA (4)(5)	$24.4mm
	40% of CDC (6)
Entitlement of Preferred Shares	40% of Liquidation Proceeds of
	Core Business Operations (7)
Insider Common Share Ownership	~75% (8)

Operating Segment

TSX: DLCG | www.dlcg.ca

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Trading Price

	$4.50
	$4.00
share)	$3.50
$3.00
($C /
$2.50
Price
$2.00
Share	$1.50
	$1.00
	$0.50
	$-
	1-Jan-20	1-Jul-20	1-Jan-21	1-Jul-21	1-Jan-22	1-Jul-22	1-Jan-23	1-Jul-23	1-Jan-24

• At December 31, 2022, the Corporation had two operating segments, being the Core Business Operations segment (DLCG) and the Non-Core Business Asset Management segment (public company costs, the Junior Credit Facility, and the costs associated with the equity-accounted investment in Cape Communications International Inc. ("Impact")).
• As of January 1, 2023, the Corporation has integrated these two segments into one, as the Corporation's chief operating decision makers view the operations of the entity as a whole. This has resulted in a single operating segment as at December 31, 2023, representing the Corporation's business of mortgage brokerage franchising and mortgage broker data connectivity services across Canada.

1. Class A common shares ("Common Shares") outstanding as at December 31, 2023.
2. Based on debt net of cash (gross of debt issuance costs) as at December 31, 2023.
3. Net of transaction costs as at December 31, 2023.
4. Adjusted EBITDA is a non-IFRS performance measure that does not have a standardized meaning. Please see the "Non-IFRS Measures" section of this document for additional information.
5. LTM December 31, 2023.
6. Core Business Distributable Cash ("CDC") is a contractual measurement as defined in the Preferred Share terms, representing the cash generated by Core Business Operations after spending what is required to maintain and expand the current asset base.
7. Core Business Operations is comprised of DLCG; and excludes certain public company costs and cash flows associated with the Junior Credit Facility and the equity-accounted investment, Impact.
8. As of March 19, 2024.

TSX: DLCG

Overview

One of Canada's

Leading Mortgage

Brokerage

Networks

Broadly Diversified Revenue Streams

Mortgage

Connectivity

Fintech Asset:

Newton

TSX: DLCG | www.dlcg.ca

5

• >$56 billion in funded mortgage volumes(1)
• >8,000 mortgage professionals across >540 franchises(2)
• Mortgage professionals originate mortgages but do not lend (no loan loss exposure/credit risk)
• Ongoing recruiting efforts
• Franchise model provides secure long-term relationships with mortgage professionals
• Revenue is generated from (a) royalty fees on mortgage origination from franchise network (b) additional revenue streams from lenders and suppliers (c) connectivity fees from mortgage connectivity fin-tech subsidiary, Newton
• Approved connectivity platform between Canadian lenders and mortgage professionals, providing a secure all-in-one operating platform in Canada
• Revenue is generated from fees paid by Canadian lenders based on funded volumes of mortgages and third-party supplier fees on a per-transaction basis

1. LTM ended December 31, 2023.
2. As at December 31, 2023.

TSX: DLCG

One of Canada's Leading Mortgage Brokerage Networks

TSX: DLCG | www.dlcg.ca

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• One of Canada's leading mortgage brokerage networks with >$56 billion in funded mortgages(1)

• Generates the majority of revenue from:

• Royalty fees on mortgage revenue from

National Presence

>8,000 mortgage professionals across >540 franchises (2)

• Connectivity fees from lenders and suppliers

• Fintech subsidiary, Newton

Four primary brands:

Top Lenders:

1. For the LTM ended December 31, 2023.
2. As at December 31, 2023.

TSX: DLCG

TSX: DLCG | www.dlcg.ca

Understanding Funded Mortgage Volumes	7

Funded mortgage volumes are a key performance indicator, as much of our success depends on funded mortgage volumes

The following factors contribute to the growth of our funded mortgage volumes:

Number of Canadians	Number of mortgage	Mortgage
that use a mortgage	brokers in our	refinancing
broker	network
As mortgage financing	Recruiting agents increases	Drives funded volumes
becomes more	funded mortgage volumes	largely independent of
complicated, more		home sales
homebuyers use a broker

Number of home sale transactions & housing prices

Increases in home sales and prices increase funded mortgage volumes

TSX: DLCG

TSX: DLCG | www.dlcg.ca

Newton Connectivity Systems Inc. (Newton)	8

• Newton is a wholly-owned subsidiary of the Corporation
• Newton is an approved fintech mortgage connectivity platform in Canada
• Newton's primary business is connecting mortgage applicants, mortgage professionals, Canadian lenders and third-party ancillary product and service suppliers using an integrated technology platform
• Offers a complete range of services designed to automate the entire mortgage application, approval, underwriting, and funding process
• Revenues are earned primarily through two business segments: (1) lenders - fee on funded mortgage volumes; (2) third-party suppliers (e.g. Manulife, Transunion, Equifax) - fee per transaction

Banks, Credit Unions

and Alternative Lenders

Mortgage Mortgage Newton

Applicant Broker

Newton's fintech platform is an integrated end-to-end operating system that handles the entire mortgage

submission and approval process, facilitating the interactions between borrower, mortgage professional, lender,

and third-party suppliers

TSX: DLCG

	TSX: DLCG | www.dlcg.ca
Recent Historical Financial Performance	9
Revenue	Annual Funded Volumes(1)
In C$ Millions	In C$ Billions
$78.8	$79.6
$70.7	$71.3

$62.5

$56.5

2021	2022	2023	2021	2022	2023

$43.9

Adjusted
EBITDA & Adjusted		$32.1
EBITDA	56%			$24.4
Margins(2)
	45%	39%
In C$ Millions
			2021	2022	2023

1. Funded mortgage volumes are a key performance indicator for the Corporation.
2. Adjusted EBITDA and adjusted EBITDA margin are non-IFRS measures. Please see the "Non-IFRS Measures" section of this document for additional information.

TSX: DLCG

TSX: DLCG | www.dlcg.ca

DLC Model & Response to Market Headwinds	10

• Increased mortgage interest rates have contributed to a softening of the housing market
• Housing market headwinds are anticipated to be partially mitigated through the Corporation's recruiting initiatives and anticipated growth in Velocity adoption. Further, it's anticipated that mortgage renewals will continue to be strong, and housing demand will continue to exceed supply

1

2

3

4

Organic Growth From

Existing Mortgage

Professionals

Adding Mortgage

Professionals

Newton

Adjusted EBITDA

Margins (4)

Diversified and established foundation of >8,000 mortgage professionals(1) across Canada originating >$56 billion in funded volumes(2)

Strong pipeline of highly accretive acquisition opportunities to 'reflag' competitor brokerages to one of DLCG's brands

During times of economic volatility, mortgage professionals tend to partner with full-service franchisors such as DLCG given their industry leading technology, stronger earnings potential and brand recognition

Volume-based fees on all funded transactions as well as additional third-party fees

Opportunities to grow Velocity submissions, with 63% of DLCG funded mortgage volumes submitted through Velocity (3)

Margins are largely impact by revenues, as the Corporation's operating costs are relatively fixed. A decrease in funded mortgage volumes directly decreases adjusted EBITDA margins

1. As at December 31, 2023.
2. LTM ended December 31, 2023.
3. For the year ended December 31, 2023.
4. Adjusted EBITDA and adjusted EBITDA margin are non-IFRS measures. Please see the "Non-IFRS Measures" section of this document for additional information.

TSX: DLCG