Business Overview

May 2019
QuintoAndar: The platform for housing

Overview
QuintoAndar facilitates the rental process from start to finish:
search, transaction, and rental management all in a modern app.

Tenants enjoy a seamless experience without the friction of a costly

guarantee, and landlords benefit from higher liquidity, more income,
and the best guarantee on the market all for the same price

Key metrics
Over 25,000 rentals under management and 12,000 available for rent

Over 8,000 new rentals added in Q1 2019, up 4x YoY

Annual run-rate GMV of R$700mm and revenue of R$101.4mm, growing 3.1x

Over 4x LTV/CAC and 70% gross margin in Q1 2019

Rapidly launching new cities, expanded to 9 markets in 2018

Product centric culture with over 200 employees in product/eng

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World-class team with strong product-driven culture
Gabriel Braga André Penha Thiago Tourinho Dave Sherry
CEO CTO COO CFO

Search
Fund

Backed by world class investors

Kevin Efrusy
Parter @ Accel 3
Born to solve a huge pain point:
Everyone needs to live somewhere, and now more and
more people prefer housing as a service...

…but renting is a hassle.

 Rental market in Brazil is massive...

13M 225B 12% 27B

RENTED UNITS R$ - RENTAL GMV TAKE RATE R$ - IN FEES

Source: Estimates based on data from IBGE, Fipe Zap and ABRAINC’s projections
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 ...and has the potential to be significantly larger.

SHARE OF RENTED RESIDENCES IN TOP CITIES

47%
60% AVERAGE OF
TOP 35 CITIES 2.3x
40%

20%

GERMANY FRANCE CANADA UK HONG KONG USA ARGENTINA COLOMBIA BRAZIL

2000 2010 2014

Source: Country specific statistics bureaus. IDB’s Rental housing wanted 2013 (short, full); Goldman Sachs on millennials; CBRE on millennials; RENTCafe on Renting Landscape; Quartz on why most Germans rent; USA today
and Urban Institute on “renting homes is overtaking the market”. 6
 However, the current rental experience is disjointed and expensive
Search Visit Transaction Guarantee Manage

Offline Offline Offline

Agents Agents Agents

Poor quality, misleading Many many unproductive Game of telephone as Distracted and unreliable
Tenant duplicated listings across Tenants have three
visits with full days spent broker plays intermediary expensive options: broker that acts as a
lots of sites with a single broker while trying to force a frustrating intermediary
+ Three-month deposit
Search starts online but deal to secure the unit + Guarantor
quickly moves offline + Insurance

Extended vacancies as
Landlord Wasted time with tons of Inaccurate listings lead to Brokers charge first many tenants cannot Brokers charge landlords
brokers seeing to wrong visitors, meaning month’s rent meet or afford the 8-10% of monthly rent
represent property on a longer vacancies guarantee requirements
non-exclusive basis

7
 QuintoAndar solves this with a seamless solution, from start to finish
Search Visit Transaction Guarantee Manage

Tenant Every listing verified by Instantly book visits Direct negotiation with Tenants don’t need to Pleasant rental
professional anywhere, anytime online landlord inside the app. provide any type of experience:
photographers. security, the guarantee is + caring support
… and visit with reviewed, Fast closing with online free + assistance for repairs
Search 100% self-service independent agents. credit analysis and digital + fair intermediary
contracts. + centralized billing

Landlord Professional photos Fewer wasted visits Same price as brokers … but landlords get best Same or lower price than
capture apartment (first month’s rent) form of protection brokers at 7-8% of
accurately avoiding Shorter vacancies monthly rent
Savings on guarantee
disappointed visitors
translate to higher rents

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...raising the bar on the security for landlords...

Traditional Market QuintoAndar

Guarantor 3 months Rental QuintoAndar

deposit insurance Guarantee

Tenant Difficult to find Liquidity Incredibly

as requirements constrained by expensive (15% of Free
friction
are high upfront payment rent per year)

No delays
Impacts ~6 month rent Delinquency 2 months cash
for delay until jury above 3 months flow delay until 100% rental coverage
Landlord enforces rent insurance kicks in until actual eviction
guarantor to pay + R$1mm damage
coverage per property

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 ...for a lower total transaction cost.

Assuming 24 months
from date of listing... Status-quo QuintoAndar

11.8% 5.9%
Cost of vacancy: ~2 months ~1 month

Brokerage fee: 4.2% 4.2%

100% first rent
100% first rent

Management fee: 7.9% 7.3%

~9% of monthly rent ~7% of monthly rent

Total transaction cost: 23.9% 17.4%

All percentages calculated as % of total rent in the period of analysis (ie: 24 months minus vacancy). Cost of vacancy includes lost rent income as well as condominium and taxes.
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Our performance
 It all starts with very happy customers...

“
LANDLORD

Rita A.
“
TENANT

Luciana M.
Best-in-class FEB 2018 - Facebook JUNE 2018 - Google Review

NPS My apartment was empty for almost I moved from Rio to São Paulo and
an year until a friend recommend needed to rent an apartment

70 QuintoAndar. We found a tenant in

less than a month!
without having a cosigner or rent
insurance and it was only possible

Re-listing with QuintoAndar. Nice apartments,

good prices, transparency and nice

90% agents allowed me to solve

everything in less than 10 days.

Note: re-listing rate of the properties still available for rent (excludes cases where landlord decides to sell or occupy the unit)
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 ...enabling us to grow at a rapid pace... March 2019
Run-rate GMV of
nearly R$700mm
MONTHLY GMV in R$ MILLION
60

50

40

FEB 2018
New guarantee
30
DEC 2015 Launched Rio
Embedded free
guarantee + fully
20 online transaction
process

APR 2015
10 Series A

0
JUL ‘13 JUL’14 JUL’15 JAN’16 JUL’16 JAN’17 JUL’17 JAN’18 JUL’18 JAN’19
Note: Monthly GMV accounts for all rent, condominium, and property tax amounts transacted in our platform. 13
 ...and key metrics show further acceleration...

New listings New rentals Ongoing rentals Run-rate gross revenue

(in thousands) (R$ MM | RR)

25.7
(1)

17,496 8,251 3.0 101.4

2.8 x 4.1 x 3.2 x 3.1 x

6,209 7.9 32.6

3,673 2,014
1,254 3.5 16.4
1,546
316 0.4 4.6

Q1 16 Q1 17 Q1 18 Q1 19 Q1 16 Q1 17 Q1 18 Q1 19 Q1 16 Q1 17 Q1 18 Q1 19 Q1 16 Q1 17 Q1 18 Q1 19
Note: (1) accounts for the number of contracts via B2B partnerships 14
..with new cities ramping even faster than São Paulo
Supply is scaling much faster than in SP … leading to ~25% of new rentals from
and accelerating in every new cohort... outside of São Paulo in less than a year.

Cumulative listings since launching New Rentals Evolution

1,000
9.2%

14.3%

76.5%
500

0
M0 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
Q2 2018 Q3 2018 Q4 2018 Q1 2019

São Paulo Rio de Janeiro Other cities

São Paulo Porto Alegre Rio de Janeiro

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 We earn a significant margin from the fees we charge landlords...
12.2% of rent
Sales Tax
1.1% of rent
Rev Share - 0.8% of rent

Rental Operations
1.8% of rent
Recurring management
fee Guarantee
8.4% of rent 1.3% of rent

Pre-rental Operations
1.5% of rent

Marketing for Demand

1.5% of rent

Upfront Contribution
brokerage fee Margin
3.8% of rent 4.0% of rent

Gross Revenue Revenue share COGS Sales and Marketing Contribution

and Taxes for Demand Margin
Revenue Share includes revenue split with brokers as % of rent. Rental Operations = Onboarding, Ongoing and Offboarding costs. Assumes average costs from 2018 to today except for insurance premium which has been renegotiated to 0.1% of rent.
 ...leading to very profitable property acquisition

First Contract Unit Economics LTV/CAC Evolution of a Rental Property (1)

(As a % of GMV)
5.4

LTV/CAC 4.4 1.0

4.0% 2.2x
Trend of retention rate and
new operational efficiency
gains
3.5 tenant

new
tenant
1.9%

2.2

Contribution Supply 1 Contract 2 Contracts 3 Contracts Total LTV/CAC

Margin Acquisition Cost cycle cycle cycle
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Note: (1) Assumes a 26 month cycle, the average lease duration of a contract and current re-rental rates
Unique characteristics of a
great business
Revenue streams that combine the power of recurring SaaS
with the upfront payment of a marketplace

100% 100% 100%

first rent first rent first rent
new tenant new tenant

~8% ... ... ...

100% ~8% ~26

first rent monthly months

Upfront brokerage Recurring New cycle every

fee covers CAC management fee time the tenant
changes

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 Incredible working capital dynamics

Tenant pre-pays Tenant pre-pays

rent on the 7th rent on the 7th

Month 1 Month 2 Month 3

35 days float 35 days float

QuintoAndar transfers QuintoAndar transfers to
to landlord on the 12th landlord on the 12th

Note: According to current rental regulation: (a) if the tenant provides a rent guarantee he pays the rent in the end of the month; or (b) if the tenant does not provide a rent guarantee, he can be charged upfront (ie: in
the beginning of the month). The market practice is post-paid rent (ie: model “A”), but since QuintoAndar eliminates the need of guarantees from tenants, we are allowed to charge rent upfront but only transfer to the
landlords in beginning of the following month (as they’re used to get paid).
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 Hard to replicate: Best guarantee at no cost

Guarantee cost evolution QuintoAndar’s guarantee strategic advantages:

% of Rent GMV
Better Underwriting:
● Scoring enhanced by proprietary data
from tenant behavior before (and during)
application process, including units
visited, data entry patterns, and search
timeline
● Ability to match tenant risk level with the
liquidity of units. Enforcing hot properties
to only have best tenants vs higher risk at
slower rentals

Better loss prevention:

● Because we charge rent in advance, we
know earlier than any insurance provider
when tenants are delaying payment.
● As both the property manager and
guarantee provider, we are able to
proactively manage out tenants that are
2016 Q1 17 Q2 17 Q1 18 Q2 18 Q1 19
unable to pay
Insurance premium Credit losses

Note: Insurance premium has been renegotiated to 0.1% of Rent GMV starting in Q2 2019 21
Hard to replicate: Easy to use, end-to-end solution
Amazing customer experience requires intricate technology to deal with complex end-to-end operations

Online Credit
Payments
classifieds underwriting

Photographers network

Collections & Evictions

Negotiation platform

Detailed inspections

Support for repairs

Online contracts
Affiliate network

Visit scheduling

Exit inspections
Agent Network

Credit Analysis

Monthly billing
Inside Sales

Onboarding
Guarantee
Search

Uber-like logistics and

technical complexity

Great products require a great factory. The only genuinely tech-driven company in the space.
Easy to say, hard to do. Shaper Culture (not follower) with proven ability to deliver amazing tech and CX.
200+ team of world-class engineers, data scientists, and designers.
Hard to replicate: Uniquely powerful network-effects

Unparalleled liquidity
Conversion listing-to-rental in 8 weeks (SP)
Very fragmented supply
and absence of MLS
reinforces bargain power 35%
of the platform.
24%
23%
Heterogeneous inventory Uniquely granular data
and Exclusive Listings 15% combined with AI on pricing
increases the cost of
switching from the Unique Proprietary provides for better returns.

dominant platform.
supply 2016 2017 2018 2019
data Smarter credit decisions
allow us to balance liquidity
Certified branded rentals Q1 Q1 Q1 Q1 with lowest costs due to scale
further reinforce the of proprietary data pool
attractiveness and
exclusiveness of our
inventory strengthening
such dynamics. Go-to destination
for the demand

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 We’re doing well,
but we can grow even faster
 The company is self sustainable on the current plan...
R$ MM

1,380

940
536
541
244
264
138 126 129
115

2019 2020 2021 2022 2023

(Current plan) Gross Revenue (Current plan) Cash Balance

Note: Refers to Series C projections with adjusted cash balance in Dec-18. Proforma to remove B2B M&A plans from Series C.. 25
 … but with additional capital we can reach R$2.5B in topline in 2023
2,494
R$ MM

1,114
1,594

654
902

361
423

153 159

2019 2020 2021 2022 2023

(134)
(317)
(395) (393)

(Current plan) Gross Revenue (New plan) Incremental Revenue (New plan) Cash Balance

Note: New plan assumes higher growth, B2B and new initiatives such as Originals. Does not include investments in initiatives.outside of Brazil 26
Levers to accelerate current business in Brazil

1 Propel acquisition

2 Channel expansion

3 Originals

4 "Own" the supply

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 PROPEL ACQUISITION

More aggressive market share acquisition

Spend more to
Build a Brand Increase liquidity
acquire supply

Aggressive PR and Given the size of the Incentivize agents based on

advertising campaign opportunity and the potential conversion rates and rented
focused on QuintoAndar’s for the winner to take a units to align interests
mission to make rent significant share, it’s
easier for tenants and worthwhile, in the short-term, Experiment with
more profitable for to lower our unit economic underwriting guidelines to
landlords targets to reach scale increase approval rates,
especially on stranded
Company has never Target LTV/CAC of 1x on first properties. Current loss
invested in brand before, contract rather than 2x+ rates are leaving money on
but the time is right now the table
for a mass market
message that establishes Leverage our data to provide
QuintoAndar as the more refined pricing
destination for rentals recommendation to
landlords

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 CHANNEL EXPANSION
Transform competing brokers into allies
Affiliates
We have built a network of
thousands of agents and doorman
who refer listings to us enabling high
local density.
Affiliates Pro
Instead of competing, small brokers
will be able to either refer properties
or migrate their contracts in
exchange for a fee.
Affiliate Prime (B2B)
Exclusive partnerships with large
brokers who represent owners in our
platform in exchange for revenue
share. We also secure future
market-share by acquiring brokers
existing portfolio and gradually
migrating the properties to our
platform as leases end.
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 ORIGINALS

Ultimate rental experience in exclusive branded listings

We know
We plan and No upfront
what
execute cash needed
matters

Smart algorithms backed by Exclusive listings with unique Enables a lifestyle that
FOR TENANTS extensive data to predict set of features and design amplifies the rental opportunity.
what demand looks for

Renovation projects focused No execution headaches. No upfront costs.

FOR OWNERS on features for yield: rent QuintoAndar deducts product
End-to-end process with
faster with optimal price cost in installments once the
contractors and suppliers
managed by QuintoAndar. unit is rented.

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 PLATFORM DOMINANCE

Leverage data to own the supply and drive liquidity

STEP 1: STEP 2: STEP 3:

Leverage our extensive Instantly offer to rent from Sublet to final tenant
market data set to identify Landlord securing property with Dynamic Pricing
hot or underpriced properties from market right away driven by AI
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and rentals in Brazil are just the beginning
Renting is a hassle in most places.
We will target the largest and messiest cities, not limited to Latam.

Prioritization criteria:

● Issues with guarantee

● Supply is fragmented

● Landlords suffer with

long vacancies, weak
online classifieds
 Our vision is to build
THE PLATFORM FOR HOUSING

Rentals Buy to Rent Buy to Live

Dominant platform enabling Seamless sale transactions
exclusive high-quality listings, enabled by the platform that
with free embedded guarantee
and seamless process from
REIT Direct invest is the destination for housing

start to finish Owner of fragmented rental Seamless investment in

units uniquely enabled by rental units "certified" by the
QuintoAndar's ability to highest authority in rentals
source and manage
distributed rental units

Related products and services

(ie: add-on insurance, financing, service referrals)

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Besides being a great business by itself,
rentals are the best foundation for the entire platform
Strategic
sourcing
● Long-tail Affiliates:
massive network with >100K
members referring >40k leads
per month for rentals only
our agents do millions of visits
which are unique opportunities
to source fresh inventory
● Exclusive Affiliate Brokers
leverages local credibility and
eliminates competition.
● Large Ongoing Portfolio
insight on future sellers & buyers
The frequent Forced to be
destination super efficient
● Higher turnover leads to ● Despite larger revenue pool,
more frequent interactions rental transactions are
with both sellers and neglected by current players
buyers due to lower ticket, high
friction, super fast turnover.
● Ongoing trusted
relationship with owners ● We've built a platform and a
and residents cost structure that works for
low-ticket rental transactions.
It's easier for us to move
upstream than the other way
around.
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 Replicate our impact on housing to become
THE PLATFORM FOR SMALL COMMERCIAL REAL
ESTATE
Sourcing Distribution Transaction
Synergies Synergies Synergies
● Current landlords, affiliates, ● Searching and visiting ● Similar pain with
and partner brokers also fragmented inventory with guarantees
own or work with small huge asymmetry of
commercial real estate and information is equally hard
constantly demand us for a and inefficient
solution
● Higher density of inventory
● Supply is also very and higher average ticket
fragmented with even could make our agents more
higher liquidity issues productive and reduce cost
of renting

● Weak competition: served by

same small mom & pop
brokers and neglected by
online classifieds and large
brokers such as CBRE and
Cushman.
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 It's a R$100B+ market opportunity

For Rent (BR) For Sale (BR) ADD-ONs (BR) CRE (BR) INTERNATIONAL

1% of total GMV
TAM R$40B(1) R$30B(1) 20% residential
(for sale + for rent)
R$50B+

SAM R$17B(1) R$10B(1) R$6B(1) R$6B(1)

% SHARE
50% 30% 30% 30% ...
REVENUE (R$) 8B 3B 2B 2B TBD

(1) company estimates for market-size by 2027 37

Projected financials
Targeting R$2.5B in revenue in 2023 in rentals in Brazil only

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Appendix