#1贝壳 找房大平台 NYSE: BEKE 甩 Investor Presentation Mar 2022#2Disclaimer 贝壳 找房大平台 This presentation has been prepared by KE Holdings Inc. (the "Company") solely for information purpose. By viewing or accessing the information contained in this material, you hereby acknowledge and agree that no representations, warranties or undertakings, express or implied, are made by the Company or any of its directors, shareholders, employees, agents, affiliates, advisors or representatives as to, and no reliance should be placed upon, the accuracy, fairness, completeness or correctness of the information or opinions presented or contained in this presentation. None of the Company or any of its directors, shareholders, employees, agents, affiliates, advisors or representatives accept any responsibility whatsoever (in negligence or otherwise) for any loss howsoever arising from any information presented or contained in this presentation or otherwise arising in connection with the presentation. The information presented or contained in this presentation is subject to change without notice and its accuracy is not guaranteed. This presentation does not constitute an offer to sell or issue or an invitation or recommendation to purchase or subscribe for any securities of the Company for sale in the United States or anywhere else. No securities of the Company may be sold in the United States without registration with the United States Securities and Exchange Commission (the "SEC") or an exemption from such registration pursuant to the Securities Act of 1933, as amended (the "Securities Act") and the rules and regulations thereunder. No part of this presentation shall form the basis of or be relied upon in connection with any contract or investment decision in relation to any securities or otherwise. This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company. Nothing contained in this presentation shall be relied upon as a promise or representation as to the past or future performance of the Company. Past performance does not guarantee or predict future performance. You acknowledge that any assessment of the Company that may be made by you will be independent of this presentation and that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. Certain statements in this presentation, and other statements that the Company may make, are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These statements reflect the Company's intent, beliefs or current expectations about the future. These statements can be recognized by the use of words such as "expects," "plans," "will," "estimates," "projects," "intends," "anticipates," "believes," "confident" or words of similar meaning. These forward-looking statements are not guarantees of future performance and are based on a number of assumptions about the Company's operations and other factors, many of which are beyond the Company's control, and accordingly, actual results may differ materially from these forward- looking statements. The Company or any of its affiliates, advisers or representatives has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances. This presentation also contains non-GAAP financial measures, the presentation of which is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). In addition, the Company's calculation of these non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. 1#3贝壳 找房大平台 01 COMPANY OVERVIEW ***** |-----#4Leading Integrated Online and Offline Platform for Housing Transactions and Services Start to find your dream home 开始寻找属于你的家 Existing homes New homes Home rentals Home renovation 二手房 新房 租房 装修 请输入区域、板块或小区名开始找房 Q RMB 3.85 Trillion (c.US$ 605 Billion) Total GTV in 2021 37.4 Million Mobile Monthly 454,000+ Active Users (2) Agents (1) 四 贝壳 找房大平台 51,038 Stores (1) 257 Million Homes in Housing Dictionary (1) Source: Company Data; 18.4 Million Number of VR Property Models (1) 406,000+ Active Agents (3) 45,339 Active Stores (3) (1) As of December 31, 2021. (2) Average mobile monthly active users in the three months ended December 31, 2021. (3)Based on our accumulated operational experience, we have introduced the number of active agents and active stores on our platform which can better reflect the operational activeness of stores and agents on our platform as of December 31.2021.#5"One Body, Two Wings" Strategy Upgrade One Body: Existing and New Home Transaction Services Core business with highest importance, committed long- term goal and clear path. 贝壳 找房大平台 Home Renovation and Furnishing Integrate Beike's strength with Shengdu, solidify capabilities to expand service scale. Inclusive Rental Housing Services Offer diversified rental solutions, and quality renting experience to tenants. 4#6Mortgage Loan Origination Cycle and Interest Rate Policy Loosening and Supportive Measures in Place Macro Policy Property market policy Credit Loosening Relaxed Macro Policy Environment • Emphasizes on "stabilizing growth" for 2022. Prudent monetary policy to be more flexible. Will refine platform economy supervision to promote stable development and raise competitiveness of platform economy. Will meet reasonable demand of home buyers, and boost the virtuous cycle of property market. Will come up with effective plans to help defuse developers' debt risks. Will not expand property tax trial to more cities in 2022. Market-supporting measures & practices • Normalized loan origination cycle & lowered mortgage interest rate 30+ Cities issued supportive administrative measures such as lowering down payment ratios, and less restrictions over mortgages, home purchase and sales, as well as developers' pre-sale proceeds. Local-level Supportive Measures 80 75 70 65 60 55 50 45 40 35 30 202103 202104 202105 202106 202107 202108 202109 202110 202111 202112 202201 Issuance Cycle (Days) Interest Rate (First Home) Interest Rate (Second Home) 1.Data of 103 cities attributable to Beike Research Institute 202202 5 贝壳 找房大平台 6.0% 5.8% 5.6% 5.4% 5.2% 5.0%#7Existing Home Transactions recovered with credit environment improvement 贝壳 找房大平台 125 120 115 110 105 100 Beike Housing Price Index for Different Tiers of Cities 1 202106 202107 202108 202109 202110 202111 202112 202201 202202 1.Data from Beike Research Institute First Tier Second Tier Others Q4 2021 Existing Home Transactions GTV Recovery on Beike Platform +11% +7% +19% Jul-21 Aug-21 Oct-21 Sep-21 Nov-21 Dec-21 9#8Resilience during Market Downturn We have shown resilience during market downturn in Q4, with stronger agent retention capability Q4 Existing Home No. of transactions change QoQ in 14 Core Cities New Home Sales GTV Growth Rate % YoY 0% 250% 2021 Q4 QoQ 194.90% -2% 200% -5% 150% -10% 100% 95%81% -15% 50% 32.30% 19% 15% -2.50% -24.00% 0% -20% 21Q1 21Q2 21Q3 -15% -20% -50% -22% -25% -20% -42% -100% Market No. of transactions change % ■Beike No. of transactions change % 贝壳 找房大平台 Resilience in Store and Agent Retention Store -5.4% QoQ by end-Q4, due to slower growth of newly connected stores -11.8% QoQ by end-Q4, much smaller than 30-40% contraction in industry Existing home sales volume MoM change in 14 core cities in Oct, Nov, Dec was -18%, 17%, 18%, respectively, gaining some traction of recovery. ■China new home GTV growth (NBS data) ■New home GTV growth of Top 100 developers ■Beike's new home GTV growth Agent 1. 14 core cities include Beijing, Shanghai, Tianjin, Dalian, Hefei, Hangzhou, Nanjing, Changsha, Wuhan, Chongqing, Xiamen, Zhengzhou, Qingdao, Chengdu. Market data attributable to city govt database and Beike Research Institute. 2. New home sales data of top 100 developers attributable to CRIC. 3. Industry agent attrition rate attributable to Kongbai Research Institute (. 7#9Business Highlights in Q4 Contract Service Centers 贝壳 找房大平台 Compliance Management in New Home Services 298 contract service centers in 30 cities by end-2021. +90% existing home sales signing processes were completed in these centers. • • Centralize various contract signing procedures of existing home sales, with professional experts helping customers walking through all the process. Greatly improve customers' signing experience, ensured funds safety. Help agents to be more focused and enhance efficiency, by leaving contract signing procedures to staff with expertise. One of the best scenarios to direct traffic to emerging business segments, including home renovation and furnishing. A sense of security given to agents, with Security confidence of receiving commission on time, and their transactions not broken by any misconduct. 19.7% Agents' "Compliance Perception" improved Q by Q to 19.7% in Q4, VS 18.3% in Q3. • New home business conduct improvement initiative: infrastructure and procedures to prevent, intervene, trace and penalize misbehaviors. Protect interests of consumers and service providers, and help developers to strengthen their cash reserves with quicker sell-through. Prudent strategy, focus on reducing receivable collection risk. Proactively suspended cooperation with high-risk projects. об 8#10Best Positioned in Home Renovation and Furnishing to Scale and enjoy the Economies of Scale Traffic One-stop Solution System and Data 贝壳 找房大平台 Massive Customers from Core business Agents Referral ➤ Multi-platforms Online Traffic ➤ Renovation to Furnishing... Full-Lifecycle Service ➤ Design & Construction ➤ Furnishing Logistics... Home SAAS Data Capability ➤ CRM ➤ BIM ➤ Construction Process Standardization ➤ Supply Chain MGMT ➤ Middle Office MGMT More Customers Higher Conversion Lower Cost Higher Leverage 6#11贝壳 找房大平台 Inclusive Housing Services Provide diversified and quality rental housing solutions to help govt address housing issues of the young generation, city new comers, and residents in old neighborhoods. Asset Light General rental brokerage services Rental housing operating services Rental property management services Rental housing project joint investment Asset Heavy Service guarantees Rental housing operating services Asset-light business model based on services including brand franchise, entrusted asset management, tenant services, etc. First Youth Apartment commenced in Shanghai in Feb. + value-added home services Rental property management services • • Manage short-term decentralized rental homes to ramp up stable long-term supply. Provide hassle-free service for home owners and trusted service for tenants. 10#12First Beike-Operated Youth Apartment at Xuhui, Shanghai Located at no. 31 kaixuan South Road, Xuhui District, Shanghai Covers an area of nearly 40,000 square meters with 2,978 rooms#13First Beike-Operated Youth Apartment at Xuhui, Shanghai ④ 贝壳 找房大平台 • Affordable: 65% of room's rent between RMB2300-3500 per month • Working & Housing in the same area: Located in the downtown area of Shanghai -- Xujiahui, 3 kilometers away from the Xujiahui business district Safe & Clean: Entrance and full public area security cleaning service covered; 12#14贝壳 找房大平台 02 FINANCIAL UPDATES ***** |-----#15Financial Highlights Multiple Monetization Avenues with Healthy Take Rates Resillient Profitability During Market Downtrend Robust Balance Sheet with Positive Cash Inflows 贝壳 找房大平台 Revenue YoY Growth in 2021 14.6% Adjusted Net Profit in 2021 RMB 2.3bn Total Liquidity as of December 31, 2021 RMB 56.1bn 14#16Massive Scale with Continuous Market Share Gains GTV1 Industry GTV in China² (RMB bn) + 10.1% 3,853 187 3,499 + 64.5% 1176 2,128 1,609 83 1,383 748 (RMB tn) Beike: +4.9% -6.3% 15.46 Beike: +16.3% + 5.3% 16.28 贝壳 找房大平台 1,120 7.49 7.02 1,940 2,058 66 732 469 1,297 21 357 585 355 2019 2020 2021 2020Q4 2021Q4 2020 2021 2020 2021 Existing Home Transaction Services ■New Home Transaction Services Emerging and Other Services New Home Transactions YoY growth of GTV of new home transactions 1 GTV is defined as gross transaction value, which is calculated as the total value of all transactions facilitated on the platform and evidenced by signed contracts, including the value of the existing home transactions, new home transactions and emerging and other services, regardless of whether the transactions are actually closed. 2 Existing home sales GTV in China based on Beike Research's data. New home sales GTV in China based on NBS data. 15 Existing Home Sales YoY growth of GTV of existing home sales#17Multiple Monetization Avenues with Healthy Contribution Margin Revenue Breakdown Segment Contribution Analysis 贝壳 找房大平台 (RMB mm) 53.4% 43.3% 39.6% 40.4% 33.7% 80.4% 83.9% 79.2% 81.9% 74.1% 44.1% 53.8% 57.5% 56.8% 63.6% 24.3% 21.5% 19.3% 21.0% 19.5% 2.5% 2.8% 2.9% 2.8% 2.8% 38.9% 40.9% 37.0% 43.0% 33.7% + 14.6% 80,752 2,332 + 53.2% 70,481 1,978 46,472 46,015 37,938 1173 1,661 1,848 8,150 8,947 943 4,919 20,274 22,671 17,786 511 624 12,499 11,824 30,565 31,948 12,887 24,569 491 11,310 2,701 9,554 363 2,209 2019 2020 Existing Home Transaction Services Emerging and Other Services 2021 9,160 2020Q4 3,936 5,985 2,020 2021Q4 ■New Home Transaction Services Existing Home Transaction Services Emerging and Other Services 2020 2021 New Hansaction Serv14 % Segment Contribution Margin 2021 % Total revenues 16#18Improving Cost and Expense Structure Cost of Revenue Operating Expenses ④ 贝壳 找房大平台 (RMB mm) (RMB mm) 24.5% 23.9% 19.6% 23.9% 16.4% 28.4% 19.9% 21.3% 18.3% 23.0% 53,621 2.243 64,933 2.990 3,810 3.207 31,827 34,747 1,069 24,847 3.079 11,155 20.3% 4 16.2%4 18.4% 4 14.4% 4 19.2%4 17,174 14,018 747 13,054 236 3,194 1,571 2,478 8,924 17,246 8,377 7,589 14,870 4,157 4,099 778 642 ■236 350 26,307 23,324 8,732 714 19,444 7,799 ■ 738 6,790 2019 2020 2021 2020Q4 5,394 2021Q4 3,106 3,715 4,309 1,884 1,323 2,202 809 2019 2020 2021 2020Q4 2021Q4 ■Commission and Compensation - Internal Commission - Split2 Cost Related to Stores³ ■ Others % Gross Margin ■Sales and Marketing Expenses ■Research and Development Expenses % of Total Revenues ■General and Administrative Expenses ■Impaiment of goodwill and intangible asstes. % of Total Revenue after Adjustments 1 Defined as the compensation paid to the internal agents and other sales professionals, including fixed salaries and variable commissions based on the transactions they assist in closing. 2 Defined as the commissions paid to connected agents and other sales channels for their services to assist in completing new home and existing home transactions. 3 Mainly including rent, decoration, and utility bills for real estate brokerage stores under Lianjia brand. 4 Adjusted operating expense is defined as operating expense, excluding the effects of (i) share based compensations; (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement; (iii) deemed marketing expense related to IFM acquisition of RMB318 million and RMB43 million in 2019; (iv) impairment of goodwill and intangible assets of RMB236 million, RMB747 million, RMB236 million and RMB350 million in 2020, 2021, 2020Q4 and 2021Q4 respectively. 17#19Resillient Profitability During Market Downtrend Adjusted Net Income¹ Adjusted EBITDA2 贝壳 找房大平台 (RMB mm) (RMB mm) 3.6% 8.1% 2.8% 8.8% 0.2% 6.3% 11.0% 5.6% 12.8% 2.7% 1,656 5,720 2,294 2,001 42 2019 2020 2021 2020Q4 % Margin 2021Q4 2,917 7,738 4,504 2,897 484 2019 2020 2021 2020Q4 2021Q4 % Margin 1 Adjusted net income (loss) is defined as net income (loss), excluding (i) share (based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long term investments, loan receivables measured at fair value and contingent consideration, (iv) Impaiment of goodwill and intangible assets, (v) Impaiment of investments and (vi) the tax effects of the above adjustments. 2 Adjusted EBITDA is defined as net income (loss), excluding (i) income tax expense (benefit), (ii) share (based compensation expenses, (iii) amortization of intangible assets, (iv) depreciation of property and equipment, (v) interest income, net, (vi) changes in fair value from long term investments, loan receivables measured at fair value and contingent consideration, (vii) impairment of goodwill, intangible assets and other long (lived assets, and (viii) impairment of investments. 18#20Robust Balance Sheet with Positive Cash Inflows Key Balance Sheet Items Normalized Operating Cash Flow 1 (RMB mm) As of December 31, (RMB mm) 7,001 6,157 2019 2020 2021 Cash and Cash Equivalents 24,319 40,970 20,446 Restricted Cash 7,380 8,567 6,286 Short(term Investment 1,845 15,688 29,403 Total Liquidity 33,544 65,226 56,135 Total Current Asset 51,912 87,539 69,926 Total Asset 67,265 104,296 100,319 Total Current Liabilities 27,798 33,633 28,936 Total Liabilities 35,730 37,503 33,263 Total Liabilities, Mezzanine Equity and Shareholder Equity 67,265 104,296 100,319 (1,476) 2019 2020 2021 贝壳 找房大平台 1 Normalized operating cash flow is defined as GAAP operating cash flow excluding the effects of cash movements in the home payment escrow account of RMB 1,589 million, RMB 2,360 million and negative RMB 2,562 for 2019, 2020 and 2021 respectively. 19#21贝壳 找房大平台 03 Appendix ***** DOOOD#22GAAP to Adjusted / Non (GAAP Measures Reconciliation (RMB mm) Net income (Loss) Add: 贝壳 找房大平台 For the Nine Months Ended September 30, For the Year Ended Dec 31, 2020 2021 )% YoY 2020 2021 )% YoY 1,096 (933) n/a 2,778 (525) n/a 584 320 Share (based compensation expenses (45.3)% 2,253 1,538 (31.7)% Amortization of intangible assets resulting from acquisitions and Business Cooperation Agreement 144 117 (18.6)% 605 470 (22.3)% Changes in Fair value from long term investments, loan receivable measured at fair value and contingent consideration (93) 3 n/a (175) (124) n/a 236 350 48.1% 236 747 n/a Impairment of goodwill and intangible assets 36 187 423.7% 27 187 n/a Impairment of investments Adjusted for tax effects on non (GAAP adjustments Adjusted net profit (1) (1) n/a (4) 1 n/a 2,001 42 (97.9)% 5,720 2,294 (59.9)% For the Nine Months Ended September 30, For the Year Ended Dec 31, (RMB mm) 2020 1,096 2021 (933) )% YoY 2020 2021 )% YoY n/a 2,778 (525) n/a Net income (Loss) Add: 717 269 Income tax expenses (62.4)% 1,609 1,665 3.5% 584 320 (45.3)% 2,253 1,538 (31.7)% Share (based compensation expenses Amortization of intangible assets resulting from acquisitions and 145 122 (16.4)% 621 491 (21.0)% Business Cooperation Agreement 181 280 55.1% 553 880 59.1% Depreciation of property and equipment (5) (113) n/a (164) (355) n/a Interest income, net Changes in Fair value from long term investments, loan receivable (93) 3 n/a (175) (124) n/a measured at fair value and contingent consideration 236 350 n/a 236 747 n/a Impairment of goodwill and intangible assets 36 187 n/a 27 187 n/a Impairment of investments Adjusted EBITDA 2,897 484 (83.3)% 7,738 4,504 (41.8)% 21#23贝壳 找房大平台 Thank You ***** |-----