Rent.com.au Ltd · ASX:RNT
Rent.com.au — Investor Presentation (October 2016)
30 slides from Rent.com.au's investor presentation, October 2016
Slide 1: Investor Presentation
rent. Investor Presentation
Slide 2: Disclaimer
Disclaimer Important Legal Notice This presentation contains summary information about Rent.com.au Pty Ltd (RNT) as at October 2016 and does not purport to be complete. This presentation is not a prospectus or a product disclosure statement under the Corporations Act 2001 (Cth) (Corporations Act) an
Slide 3: About rent.com.au
About rent.com.au rent.com.au (ASX:RNT) is Australia’s #1 website dedicated to rental property. Our rental only positioning allows RNT to legitimately advocate for renting and renters. Our Rules Renters in Suits Properties on Pedestals Flick the Forms People into Places Our renters will We present o
Slide 4: It’s a large market
It’s a large market Quick Stats $60bn annual rent paid‡ 85,000 homes rented monthly* +31% of Australians rent their home£ ‡ - RNT estimate based on ABS data; £ - ABS Statistics; * - RNT estimate based on number of bonds lodged in QLD, VIC, NSW and SA
Slide 5: That’s getting bigger
That’s 34% getting Growing % of Renters in Australia$ bigger 31% 28% The Australian dream: soon, fewer than 50 per cent will own home 25% 2003–04 2005–06 2007–08 2011–12 2013–14 2015–16 Size and scale of rental market widely under‐estimated and it is $ - ABS Data and RNT estimates tipped to grow rap
Slide 6: But not being heard
But not being heard An important group without an advocate PAPERWORK ADVOCACY 58% of renters surveyed believe 83% of renters feel they don’t have the renting process is still too a voice or advocate in politics – inefficient – it should be online. despite issues affecting them (such as negative gear
Slide 7: A fragmented industry
A fragmented industry Quick Stats 10,000 property agents‡ +60 different software systems‡ 2 million investment property owners£ Poor reporting and tracking Today, a portal cannot tell if a customer (rent or buy) looked at a property and then transacted. We are changing that! ‡ - RNT estimates; £ - A
Slide 8: Audience growth
Audience growth RNT now has a consistently large and unique monthly audience Quick Stats #2 Second longest Average Site Duration amongst AC Nielsen top 10 most visited property websites 650,000 Average monthly number of unique visitors to rent.com.au 2H FY2016 180% over prior year +50% Of the rent.
Slide 9: Engaging our audience
Engaging our audience Our audience is increasingly being provided with a voice via blog and social media, consistently across platforms, to engage and derive valuable insights. 3 months ago we launched our blog – responding to queries from renters. We now have about 10,000 people a day reading the b
Slide 10: Lots of listings
Lots of listings RNT Listings +90% of all agent property listings nationwide 1,000s of private listings not on other leading property sites renters provided with a significant, growing level of choice
Slide 11: Change the world
Change the world We have made great inroads in terms of listings and audience engagement, but we need to do much more. • We need to be different in this market to survive • Generate a customer (rental) attitude; be the advocate • Make ourselves attractive, default destination for renters • We need t
Slide 12: Renters in Suits
Renters in Suits Our renters will be always be presented in such a fashion as to maximise their chances of getting that perfect home
Slide 13: Renter Resume
Stand out from the rest! sg p16F “rjocesyallk i Jennifer Smith Awesome. Your Renter Resume is complete! Residential history / Reference Employment V Completed Identification Y Verified RentCheck ~ Completed 100% ft» ~— caw pental application ental a ret, 123 Sample Stree Mosman Park WA When do you w
Slide 14: Renter Resume
Renter Resume • Launched October 2016 • Simple to complete, with all your details in one place • Allows the automatic generation of property enquiries and applications • Edit/View/Review your current profile • Leads to recognition and endorsement activities
Slide 15: Recognition
Recognition Both sides of the customer equation want the same thing! Our goal is to always present our renter in the best possible light and to 95% of renters surveyed believe good tenancy is highlight known positives: not recognised or rewarded. • Tenure/Good Tenancy • References (Landlord, Agent)
Slide 16: Easier to use
Easier to use Great existing products Integrating these products into the Renter Resume process, makes renting easier and greatly improves product uptake
Slide 17: Properties on Pedestals
Properties on Pedestals We present our proprieties with additional and relevant information
Slide 18: How cool is this?
How cool is this? Walk Score measures the walkability of any address. Transit Score measures access to public transit.
Slide 19: and this
and this Enter your work address and we can show you approximate commute times to your new property! Even better, complete your resume (current work address, we need this for an application anyway) and it will automatically show the commute for each property you look at.
Slide 20: Flick the Forms
Flick the Forms Let’s automate where we can. We can’t remove the need for you to eyeball the property before signing (yet!), but we can remove most of the paperwork
Slide 21: Helping our customers
Helping our customers Current manual and inconsistent processes needs improvement Renter confirming their Renter browses the site & Renter finds a home Renter completes enquiry, manages their Renter Resume application for property property (status and reward) closes the loop New or returning Data po
Slide 22: Simplicity
Simplicity It should not be hard!! Lets simplify the process where we can. Enquire online, use portals to track your properties and progress.
Slide 23: We back ourselves
We back ourselves We will list all properties for free! But we will also be providing efficient and flexible ways for landlords and property managers to increase their productivity. AND – this all comes as a completion model, they only ever pay for their listing if we find them their tenant.
Slide 24: Financial Outlook
Financial Outlook
Slide 25: Revenue still increasing
Revenue still increasing Despite significantly lower cost base, revenue continues to grow. Expected to accelerate as new “completion model” revenue kicks in. Quarterly Revenue $'000s 400 300 200 100 0 QTR Sep15 QTR Dec15 QTR Mar16 QTR Jun16 QTR Sep16 QTR Dec16
Slide 26: Restructured for growth
Restructured for growth Phase 2 provided New CEO, realignment Cash burn materially opportunity to reset plan of workforce slowed FTE Restructured Team $ millions Reduced Cost Base 3.0 60 50 40 2.0 Marketing 30 Other 20 Customer, 1.0 Product & Development Overheads 72% 10 0 0.0 FTE Phase 1 FTE Phase
Slide 27: Our sources of revenue
Our sources of revenue Key focus is generating multiple revenue streams, reduces risk considerably A good spread of existing and new revenue sources, 2H FY2017 target ARPU of ~$120 per property move facilitated
Slide 28: Revenue opportunity
Revenue opportunity RNT can drive significant revenue from this large and fast growing market opportunity Case Study Examples of Potential Revenue* Estimated market size – homes rented 85,000/mth 85,000/mth 85,000/mth Market share scenario 5% 15% 30% Average Revenue Per User (ARPU) $120 $120 $120 Mo
Slide 29: Ongoing development
Ongoing development Our focus will remain on constant improvement around our core “rules” Renters in Suits Improved recognition program, rewards for great renters Properties on Pedestals Adding more features to our listings Flick the Forms Lease documents, bond lodgement – all on the list People int
Slide 30: Where to next
Where to next Rent will be the default location for people looking for their next rental property • Continued product development (next major release Jan) • Consolidate Advocacy (renting should be easier) • Focus on partnerships (adding value to Renters) • Working with Landlords and Agents (make the