FirstService Corporation

Investors Presentation

October 2023
Forward Looking Statements

Certain statements included herein constitute “forward‐looking statements” within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995. Such forward‐looking statements involve known
and unknown risks, uncertainties and other factors which may cause the actual results, performance or
achievements of the Company, or industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward‐looking statements. Such factors
include, among others, the following: general economic and business conditions, which will, among
other things, impact demand for the Company’s services, service industry conditions and capacity; the
ability of the Company to implement its business strategy, including the Company’s ability to acquire
suitable acquisition candidates on acceptable terms and successfully integrate newly acquired
businesses with its existing businesses; changes in or the failure to comply with government
regulations (especially safety and environmental laws and regulations); and other factors which are
described in the Company’s filings with the Canadian securities regulators and the U.S. Securities and
Exchange Commission.
 FirstService Corporation Overview

 Leader in essential outsourced property services in Revenue by Division (TTM)(1)

U.S. and Canada
 FirstService Residential: Largest provider of
residential community and amenity management 55%

services
 FirstService Brands: One of the largest providers of 45%
essential property services

 TTM Revenue: $4.3BN

FirstService Residential FirstService Brands

 TTM Adjusted EBITDA(3): $415MM EBITDA by Division (TTM)(1)(2)

 Geographic Revenue Split: 87% U.S. / 13% Canada

58%
 27,000 Employees

 Dual-listing on TSX and NASDAQ (Ticker: FSV) 42%

 US$0.90 per share annual dividend

FirstService Residential FirstService Brands
(1) Trailing 12 months as of year ending September 30, 2023
(2) Excludes unallocated corporate costs.
(3) See Appendix slide for reconciliation of GAAP Earnings to Adjusted EBITDA
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 Proven Business Model

10% annual average top-line growth; driven equally by

Strategic Focus
organic growth and tuck-under acquisitions

Modest yet leading market shares; significant room

Leader in Very Large Markets
for further growth

Service Excellence Culture Strong client retention; repeat business; referrals

High Proportion of Contractual Revenue Highly predictable and recurring cash flow

Modest Capex Strong free cash flow and returns on capital

Conservative Balance Sheet Low financial leverage; well-capitalized to fund growth

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 Almost Three Decades of Consistent Growth

>25 Years Revenue Compounded Annual Growth: 19%

Organic Growth: >50%
$3,746MM

$37MM

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

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FirstService Residential – What We Do

Management Contracts Broad Range of Services

 Condominiums / Co- Traditional On-Site Staff Transaction

Operatives  Property  Facility  Transfers &
Management Maintenance & Disclosures;
 Homeowner Engineering Collections
 Development
Associations
Consulting  Front Desk /  Financial
 Master-Planned Concierge Products
 Client Budget (banking,
(collection &  Pool & Amenity insurance)
 Active Adult / Life-Style disbursements) Management
 Energy
 Governance  Food & Management /
 High-Rise, Low-Rise, Oversight Beverage Procurement
Townhouse, Single
Family Home

 Multi-family / Rental

 Mixed-Use Properties
(Residential /
Commercial)

 Amenity / Aquatic
Facilities

 Advisory / Project
Management
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 FirstService Residential – Profile

Scale enhances
2022 Revenues: $1.8BN
competitive position

Diversified clients &

No. of Communities: 9,000+ total (3,800 high-rise condos) properties with specialized
operating expertise

Sticky customer base;

Contract Retention
Mid-90%+ Consistent cash flow
Rate:
profile

Geographic Footprint: 90 Offices; 25 Regional Markets North American coverage

No. of Employees: 20,000 Full service capabilities

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FirstService Residential – Diversified Operations

Breakdown by Property Type 2022 Revenue By Region ($1.8BN Total)

Life-style Other
4% 3%
North
Low-Rise 14%
Condo South
High-Rise West
21% 31%
Condo 18%
38%
Master Planned
Single Family East
HOA 37%
34%

2022 Revenue By Service ($1.8BN Total)

Transaction
Services (2)
9%

Pool/Amenity
Management
19% Ancillary
On-Site
Services
(1)
Property 56%
Mgmt.
Fees
16%
(1) Includes Engineering; Front Desk; Maintenance; and Other.
(2) Includes Transfers & Disclosures; Collections; and Financial Products.
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FirstService Residential – Condo/HOA Market Opportunity

Total # of community associations: 383,000

We Have ~6-8% Share

Total # of housing units: 29.6MM
in a Sizeable Market(1)

Assessments collected from homeowners: $142 BN(2)

Community association management companies: 8,000 – 9,000 Fragmented Industry

Percent of self-managed community associations: 35% Conversion Opportunity

Percent of U.S. homes in community associations: 29%

Growing Trend Towards
HOA Development
New homes sold in HOAs: 75%

Source: Community Associations Institute (2021).

(1) Based on CAI data for U.S. market, plus an estimate for Canadian market.
(2) Assessments include: (a) operating funds for many essential association obligations, including professional management services, utilities, security, insurance,
common area maintenance, landscaping, capital improvement projects, and amenities like pools and club houses; and (b) reserve funds for repair, replacement
and enhancement of property (e.g. replacing roofs, resurfacing streets, repairing pools/elevators/other, meeting new environmental standards, and implementing
new energy-saving features).
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FirstService Brands – What We Do

 Leading provider of seven branded essential property services to residential and commercial
customers through company-owned operations and franchised systems

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 FirstService Brands – Profile

2022 Revenue Summary 2022 SWS By Brand ($4.2BN)

Century Fire
$4.2BN System-Wide Sales (SWS) 10%
Restoration
Floor Coverings 49%
$2.0BN FirstService Brands Division Revenue 4%

Pillar to Post
Cal Closets
 $1.8BN (90%) Company-Owned Revenue 2%
17%
Certa Pro
18%
 $200MM (10%) Franchise/Royalty-Based Revenue

2022 Division Revenue ($2.0BN)

Home
Improvement
26%
Restoration
53%
Century Fire
21%

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 Property Restoration – Profile

80% Commercial Breadth and scale to jointly

Market Leading
handle any size loss across any
Platforms:
80% Residential property type

North American leader in

2022 Revenues: $2.0BN Overall System-Wide Sales overall Property Restoration
market

National footprint increases

No. of Branches: 450 Branches
timely response to clients

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FirstService Brands – Leaders in Huge Markets

Brand U.S. Market Our Position Market Share

$60 Bn #2 3%

$50 Bn #1 1%

$6 Bn #1 12%

$3 Bn #1 3%

#1
$65 Bn <1%
(Franchised)

#1
$12 Bn 3%
(Southeast U.S.)

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Growth Strategy

Organic Growth Acquisition Growth

1 1
Focus on Customer Retention & Expand Company-Owned Portfolio
Referral

2
2
New Geographies; In-Market Tuck-Unders
Leverage Differentiators to Drive
New Business
3
Property Management Ancillary Services
3

Continue to Expand our

4
Ancillary Services
Complementary Essential Property Service Lines

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 Strong Historical Performance

Revenues Adjusted EBITDA(1)

($ in millions) ($ in millions)

Recurring revenue model with strong organic …with comparable operating cash flow and
growth underpinning top-line performance… earnings growth

(1) Adjusted EBITDA as presented above is a non-GAAP measure. Investors should consider non-GAAP measures in addition to, not as a substitute for, the comparable
GAAP measures. Please visit www.sedarplus.ca to view our annual and interim MD&As, under Reconciliation of non-GAAP financial measures, for each of the above
mentioned periods for a description of each non-GAAP measure as well as the reconciliations to GAAP measures.
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 Strong Historical Performance (cont’d)

Adjusted EPS(1) Annual Dividends

(US$) (US$)

…125% cumulative dividend growth

Strong earnings growth has also supported…
since 2015

(1) Adjusted EPS as presented above is a non-GAAP measure. Investors should consider non-GAAP measures in addition to, not as a substitute for, the comparable
GAAP measures. Please visit www.sedarplus.ca to view our annual and interim MD&As, under Reconciliation of non-GAAP financial measures, for each of the above
mentioned periods for a description of each non-GAAP measure as well as the reconciliations to GAAP measures.
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 YTD Performance – Q3/23 and 9 Mos. Vs. Prior Year

Revenue – Q3 vs. Prior Year Adjusted EBITDA(1) – Q3 vs. Prior Year

($ in millions) ($ in millions)

$1,117
$111.9
$95.5
$960

9.9% 10.0%

Q3/22 Q3/23 Q3/22 Q3/23

Revenue – 9 Months YTD vs. Prior Year Adjusted EBITDA(1) – 9 Months YTD vs. Prior Year
($ in millions) ($ in millions)

$3,255
$312.4
$249.2
$2,726
9.1% 9.6%

Q3/22 YTD Q3/23 YTD Q3/22 YTD Q3/23 YTD

(1) Adjusted EBITDA as presented above is a non-GAAP measure. Investors should consider non-GAAP measures in addition to, not as a substitute for, the comparable
GAAP measures. Please visit www.sedarplus.ca to view our annual and interim MD&As, under Reconciliation of non-GAAP financial measures, for each of the above
mentioned periods for a description of each non-GAAP measure as well as the reconciliations to GAAP measures.
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Capital Structure Summary

Attractive Existing Lending Arrangements

 $1.0BN Bank Credit Facility (plus $250MM accordion) effective February 17/22
(Five-Year Term Expiring Feb/27)

 $60MM Senior Notes – 3.8% coupon long-term maturity (2025)

 $60MM Senior Notes – 4.5% coupon long-term maturity (2032)

Leverage and Liquidity

31-Dec-22 30-Sep-23

Net Debt / EBITDA (1) 1.6x 1.5x

Total Liquidity ($ MM) (2) $518 $445

(1) Expressed as Net Debt / Trailing 12 Months Adjusted EBITDA, including annualized contribution from acquisitions.
(2) Reflects cash on hand plus availability under revolving bank credit facility.
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FirstService – A Compelling Investment Opportunity

 Leader in large and highly fragmented essential, outsourced property services markets
Market
Leadership Position  Scale advantage, proprietary products / services and national coverage are competitive
differentiators which are difficult to replicate

 Long and consistent track record of strong growth

Attractive  Diversified portfolio of brands with highly predictable and recurring revenue streams
Financial Profile  Low CapEx and working capital requirements drive strong free cash flow

 Conservative balance sheet

 Significant organic growth opportunities

 Leveraging differentiators to drive contract wins
Compelling  Leading yet modest shares in huge markets
Growth Prospects
 Margin enhancement potential

 Proven, disciplined acquisition strategy

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 Appendix
Reconciliation of GAAP Earnings to Adjusted EBITDA

Three months ended Nine months ended Three months ended

(in thousands of US dollars) September 30 September 30 December 31
2023 2022 2023 2022 2022

Net earnings $ 45,858 $ 41,341 $ 123,238 $ 100,668 $ 44,339

Income tax 16,447 13,830 44,266 34,168 14,806
Other expense (income), net (702) 779 (5,215) 566 (712)
Interest expense, net 11,956 6,759 34,541 16,166 9,025
Operating earnings 73,559 62,709 196,830 151,568 67,458
Depreciation and amortization 33,146 26,901 94,062 79,723 30,417
Acquisition-related items 1,274 1,774 5,032 3,921 599
Stock-based compensation expense 3,957 4,117 16,461 13,973 4,073
Adjusted EBITDA $ 111,936 $ 95,501 $ 312,385 $ 249,185 $ 102,547

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 Appendix
Reconciliation of GAAP Earnings to Adjusted Net Earnings and Adjusted
Earnings Per Share

Three months ended Nine months ended

(in thousands of US dollars) September 30 September 30
2023 2022 2023 2022
Net earnings $ 45,858 $ 41,341 $ 123,238 $ 100,668
Non-controlling interest share of earnings (4,406) (2,904) (10,215) (5,919)
Acquisition-related items 1,274 1,774 5,032 3,921
Amortization of intangible assets 14,454 12,202 40,296 35,066
Stock-based compensation expense 3,957 4,117 16,461 13,973
Income tax on adjustments (4,787) (4,243) (14,757) (12,750)
Non-controlling interest on adjustments (321) (280) (852) (714)
Adjusted net earnings $ 56,029 $ 52,007 $ 159,203 $ 134,245

Three months ended Nine months ended

(in US dollars) September 30 September 30
2023 2022 2023 2022
Diluted net earnings per share $ 0.73 $ 0.77 $ 2.10 $ 1.86
Non-controlling interest redemption increment 0.20 0.10 0.42 0.27
Acquisition-related items 0.03 0.04 0.11 0.09
Amortization of intangible assets, net of tax 0.23 0.19 0.66 0.57
Stock-based compensation expense, net of tax 0.06 0.07 0.27 0.23
Adjusted EPS $ 1.25 $ 1.17 $ 3.56 $ 3.02

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