Network development Manitoba Broker Meeting

Growing the brand We are #1 in many markets. Our goal is to be #1 in Canada and all markets. Growth is not just a corporate goal. Growing your brokerage increases profitability. Why is growth so important? Brokerage costs continue to increase. Commission splits are not getting better for brokers. Costs are increasing. Providing great services and support to your agents is a differentiator. Spreading your fixed costs among more agents is key to profitability.

Helping you grow We are committed to helping you grow your businesses profitably. Last year we provided over $700,000 in assistance for brokers to grow. Market Development Plan to be completed in Q1. Identify growth targets – number of agents/market share. Identify how we grow - acquisition and recruiting. Commitment to grow with existing Brokers. New brokerages will be brought in to compliment internal growth. Mark will be working closely with you to assist in your growth through acquisition. Erin will support your growth through recruitment.

Your feedback is important 1. Do you have a growth plan? 2. What is your biggest obstacle to growth? 3. What can Royal LePage do to assist your growth? 4. Other feedback/questions?

RECRUITING WINTER 2014

Fact Finding Discussions 1. What is the biggest challenge in recruiting agents? 2. How are you successful at recruiting agents? 3. What can RLP do to help you recruit?

Manitoba Competitive Review January 2014

5 year agreements ($25K-$40K franchise fee) Originators of the 95/5 split - Some franchisees have a Brokerage fee that varies (I.e. 1%) International Ad fund: $300 US yearly/agent on Anniversary. - 3-month royalty holiday for new recruits - Seniors don’t pay any IA/Regional fees but pay a transaction fee of $300

Sample Compensation plan Sample Plan: 95/5 Royalty Fees: $120-160/month Regional Fee $110/month Ad Fee $300 U.S./year IA Fee Brokerage Fees: $35/ month Tech Fee $450/month Management Fee OR $295/transaction Transaction Fee $400/month Shared Office Fee

RE/MAX selling points: www.remax.ca RE/MAX selling points:  RE/MAX Websites – remax.ca and global.remax.com In 2013, over 5.2 million ads are planned for Western Canada, generating valuable exposure for your listing in possibly 80 countries around the world and 30 languages. Mobile remax.ca - compatible with all smartphones RE/MAX Fit to Sell Video Series – 18 short, easy tips videos to help prepare your home so you get the best possible price. Sellers’ Action Plan – step-by-step guide. Buyer’s Report Card  Condo Buyer’s Report Card  Tranquilli-T – Ensures buyers and sellers are protected and your sale or purchase proceeds in the event of unforeseen circumstances. The RE/MAX Collection of Fine Homes and Luxury Properties Market Trends Reports  QR Codes RE/MAX Helps our Clients Win! Official Real Estate Agents of the WHL. We Give Back to our Communities: - RE/MAX Miracle Home Program®    over  $48,000,000 to the Children’s Miracle Network in Canada since 1992. - National Organ Donor Awareness    - Sold on A Cure: Canadian Breast Cancer Foundation - Quest for Excellence Grade 12 Student Bursaries Since 2000, RE/MAX of Western Canada has awarded over $160,000 to Western Canadian students.

Re/Max stated Value Proposition Outsell other real estate companies on average 3 to 1  #1 in over 150 markets in Canada  Voted Most Trusted Residential REALTOR® by Reader’s Digest readers in 2010  Advertising drives traffic to our listings through online, television and outdoor advertising  Leads in brand name awareness with 91% in Western Canada  Expertise in international (IRES), luxury (LHPS) senior citizens (SRES), Commercial (ACP)         Most reliable, trustworthy and knowledgeable agents RE/MAX agents are full-time experienced professionals RE/MAX was voted Consumer’s Choice in Calgary in 2010, 2011, 2012 and 2013  RE/MAX was voted Consumer’s Choice in Vancouver in 2010 www.remax.ca

www.joinremax.ca Questions asked to prospective recruits by Re/Max recruiters? 1. Do agents typically receive high commission splits? 2. How many offices in your network? 3. Does your office or network and its agents have a history of surviving "down markets”? 4. Are agents typically able to negotiate commission rates with clients? 5. Do referrals in your network travel directly from agent to agent? 6. Are you supported by a national advertising campaign? 7. Do you have access to on-demand video real estate sales training? 8. How well-known are your company name and logo? 9. Does your office or network provide professional designation courses? 10. Do you have a commercial/investment division? 11. How do per-agent transaction sides compare with the industry average? 12. How many countries are in your sales network? 13. Do you have a luxury-home sales program with distinctive signage and branding? 14. Do you have free access to online on-demand real estate sales training 24/7? 15. Do you have free access to professionally designed templates you can customize online to create brochures, virtual tours, Web ads and other marketing materials? 16. Do you have an annual international convention that provides networking opportunities with thousands of your colleagues, plus unmatched educational opportunities? 17. Has your network displayed strong growth?

Competitor Focus What are their strategic advantages in your local markets? How do you compete directly against them? How do we become/maintain #1 in our respective markets?

- 5 year agreements ($25K franchise fee) Royalty Fees: New threshold model: $137/month/agent until a threshold number as determined by the market size (I.e Edmonton office has a threshold of 75 and then $37/month/agent after that.) - Typical splits offered: 80/20 ~ 100 + Transaction fee. Transaction fees: Anywhere from $117-295/transaction Brand offers 3 months royalty fee holiday for new recruits.

Century 21 Canada Limited Partnership (century21.ca)

Enhanced Marketing Program: $140* + taxes (Condo - $125*) Photographs of interior and exterior Virtual Tour Photos and virtual tour links uploaded to Stratus/Realtor.ca & C21 websites. Sign rider I.e. www.88Address.info (not available for condos) Web domain (URL) for listing on C21 website Feature Sheet “brochure style” layout including link from Realtor.ca Kijiji Craigslist Google Ad Words (if requirements are met) Additional .com domain (URL) (if requirements are met) * Add $20 if listing is ‘out of area’

Competitor Focus What are their strategic advantages in your local markets? How do you compete directly against them? How do we become/maintain #1 position in our respective markets?

National brand population count Source: Enumeration done September 2013 from sales associate roster on Franchisor’s websites .

Royal Lepage: #1 brand in Manitoba!

Royal Lepage: #1 brand in Manitoba!

Royal Lepage Facts: “Royal LePage has grown it’s productivity advantage vs. the rest of the industry steadily over the years. In 2011, our Realtors were on average 75% more productive than the rest of the industry and in 2012, our ‘sales per agent’ advantage grew to 90%.” “Royal LePage increased its national market share by +2% in 2012, to approximately 25%. The increase alone is greater than the total market share for some of the smaller national/regional brands! "A Brookfield company, with Canada's #1 relocation company, Royal LePage became the largest national real estate brand in both Manitoba and Ontario in 2013 and remains the nation’s best referral network."

Royal Lepage Facts: In the months since the launch of the new website, the ComScore monthly unique visitor statistics for our franchise competitors’ national websites show the following: May – November 2013 average monthly statistics: RoyalLePage.ca 558,000 Century21.ca 515,000 Remax.ca 487,000 Zoocasa.com 73,000 Sutton.com 66,000 SothebysRealty.ca 50,000 ColdwellBanker.ca 48,000 KellerWilliamsRealty.ca Doesn’t Show Up in the Top 100 Real Estate Websites

Outdoing Ourselves and Our Competitors From January to December 2013, Royal LePage earned 60.5 per cent more traditional media impressions than RE/MAX. Total Media Impressions since 2013: Royal LePage = 375,456,541 RE/MAX = 233,923,914 Century 21 = 19,697,287 Royal LePage’s lead is attributable to our positive relationships with influential reporters, sophisticated reports and content, and strong reputation across all media channels. More importantly, Royal LePage was positioned as the rational, insightful and education voice in the real estate industry.

Outdoing Ourselves and Our Competitors Between January-December 2013, Royal LePage was mentioned 69 times by Manitoban media outlets, generating 5,948,753 total impressions During this time, RE/MAX was mentioned 26 times by Manitoban media outlets, earning 4,650,948 total impressions Select media outlets that covered Royal LePage include: Winnipeg Free Press, Brandon Sun, Portage La Prairie Daily Graphic, Global Morning News, CBC Radio One Winnipeg, CJOB-AM, Droit au coeur television.

your network development team

George Heos, Senior Vice-President georgeheos@royallepage George Heos, Senior Vice-President georgeheos@royallepage.ca, 416-510-5827 Mark Frenette, Manager (Central/Atlantic Regions) markfrenette@royallepage.ca, 416-386-6016 Erin Marsden, National Manager, Agent Recruitment erinmarsden@royallepage.ca, 416-510-5649 Penny Egan, National Contract Manager pennyegan@royallepage.ca, 416-510-5669