Slide 1: FY 24 Results
»>r>yyy FY 24 Results 21 August 2024 >< PEXA
Slide 2: Important notices and disclaimer
Important notices and disclaimer This presentation and accompanying information (Presentation) has been Forward statements You should note that Market Data is inherently predictive, is subject to prepared for the purpose of providing general background information on No representation or warranty, e
Slide 3: Acknowledgement of Aboriginal and Torres Strait Islander people
The PEXA Group acknowledges Aboriginal and Torres Strait Islander people as the traditional custodians of the lands on which we work, live and dream, we pay our respects to elders past and present. We recognise that we have a role to play in creating space and place for Aboriginal and Torres Strait
Slide 4: Overview
Page 3 Page 13 Page 30 Page 36 Overview Financial results Outlook and Q&A Appendices Glenn King Group CEO and Managing Director 3
Slide 5: Group financial performance
Group financial performance1 Revenue, margins, profitability and cashflow increased +21% +16% +22% +$3.8m +2.1cps +175% $340.1m $114.9m $21.1m ($18.0m) 11.9cps $38.5m Statutory revenue 2 Operating EBITDA 2 NPATA 2 NPAT 2 EPS-A 2 Free cash flow 2 +0.8pps +1.7pps +3.1pps (0.3 x) 54.5% 36.5% 30.9% 2.4x
Slide 6: Key messages
Key messages Strategic and financial position improved Exchange Strong performance from world-class digital infrastructure Australia Deepening relationships with existing and new customers Digital Solutions 1 Business scaling, June ’24 break-even achieved 2 Platform and lP Development on-track, desi
Slide 7: Customer profile
Customer profile Growing relationship depth and breadth Segment Government Developers FIs Major law firms Practitioners FIs Practitioners Number of Customers 345 70+ 160+ 85+ 10,000+ c.18 2 ~2,0003 Share of Region FY24 ~4% <1% ~24% ~13% ~58% ~38% ~62% revenues1 Exchange / Non-Exchange 5% / 95% 100%
Slide 8: Strategic agenda
Strategic agenda Consistent approach to delivering value Purpose Position Australia’s #1 digital property Leading digital solutions Powerful platform Trusted and influential in Exchange platform Unique distribution Developing ecosystem property markets Business Australian Exchange Digital Solutions
Slide 9: Business outcomes: Australia
Business outcomes Australia – Enhance and Extend Australian Exchange Digital Solutions Transactions 3.81m +1.7% New .id clients 43 +87% Penetration 89% +1 ppt VA4 major bank clients 2 Platform uptime 100% Land Insight integration On-track Customer satisfaction 90% Send FX Practitioners ~550 APIs del
Slide 10: Interoperability and market development
Interoperability and market development Build on legacy of public-private partnership Strong legacy of public benefit … PEXA is low cost, high service … We support customer-led reform … • Direct net economic benefits of • Fee equivalent to 0.01% of typical • Back ARNECC’s decision to pause ~$300m pa
Slide 11: Business outcomes: International
Business outcomes International – Expand International UK remortgage platform coverage ~70% ~ +15% UK S&P1 platform development On track Smoove integration On track PEXA / Optima Legal integration2 Complete Optima Legal flow converted to Nil PEXA platform Lender engagement 23 2 large BOE Testing slo
Slide 12: International investment
International investment Platform supports cross-jurisdiction reusability Estimated uses of International platform spend PEXAGo separates global capability from local customisation ~15% ~5% Total platform spend FY20 to FY24 = ~85% A$127.3m1 ~95% PEXAGo is designed to be globally adoptable and locall
Slide 13: Business outcomes: Group
Business outcomes Group - Evolve Group PEP1 annualised cash savings ~$16m Operating EBITDA margin 36.5%2 Growth cash outflows3 $75.3m RepTrack score 72% Women in leadership 47% People engagement 63% CO2 emissions commitment On-track4 FY24 goal fully met FY24 goal partially met FY24 goal not met 1 Pr
Slide 14: Financial results
Page 3 Page 13 Page 30 Page 36 Overview Financial results Outlook and Q&A Appendices Scott Butterworth Chief Financial Officer 13
Slide 15: Basis of analysis
Basis of analysis Pro forma adjustments to assist with year-on-year comparability FY23 FY24 Exchange ID Acquired 9/22 Value Australia1 Digital Solutions Acquired 7/22 Land Insight Acquired 7/23 Australia Point of Transaction Solutions acquisition Pre- ownership results PEXA UK included in pro forma
Slide 16: Group performance
Group performance Improved revenues, operating EBITDA, margin and cashflows Business revenue (A$m) 1 Operating expenses (A$m) 1 EBITDA (A$m) 1 10% vs FY23 4% vs FY23 Op EBITDA 22% vs FY23 EBITDA 15% vs FY23 364 85 EBITDA 332 182 188 74 Op 92 112 EBITDA (18) (27) Specified Items FY23 PF FY24
Slide 17: Group performance: non-operating costs
Group performance M&A, restructuring and business growth driving non operating costs Specified items (A$m)1 Depreciation and amortisation (A$m) 27.1 91.3 78.4 18.5 FY23 FY24 FY23 PF FY24 PF The largest increase was associated with restructuring and redundancy costs, a modest Increase primarily due t
Slide 18: Exchange: transaction volumes
Exchange Modest transaction volume growth, improved mix Monthly market transactions: FY23 vs FY24 (#’000) Monthly market refi transactions: FY23 vs FY24 (#’000) 450 100 90 400 80 70 350 60 50 300 FY23 = 4.25m transactions 40 FY23 = 984k refi transactions 250 FY24 = 4.28m transactions 30 FY24 = 876k
Slide 19: Exchange: transfer volumes by state
Exchange Transfer volumes recovering, mixed performance across states Index of PEXA transfer volumes: NSW and ACT Index of PEXA transfer volumes: Victoria Index of PEXA transfer volumes: Queensland 120 120 120 110 110 110 100 100 90 90 100 80 80 90 70 70 80 60 60 50 50 70 4Q23 3Q24 4Q23 3Q24 4Q23 3Q
Slide 20: Exchange
Exchange Operating leverage and cash generation improved Business revenue (A$m) Operating expenses (A$m) EBITDA (A$m) 11% vs FY23 9% vs FY23 Op EBITDA +13% vs FY23 EBITDA +12% vs FY23 292.0 98.0 154.1 EBITDA 263.1 89.9 137.5 Op 141.2 159.1 EBITDA (3.7) (5.0) Specified FY23 FY24 FY23 FY24 FY2
Slide 21: Digital Solutions
Digital Solutions Improved customer activity and more subscriptions Average monthly value of ’s active proposal pipeline (A$m)1 Average 3-monthly subscription proposal win rate for .id (%)1,2 2.8 66.3 2.4 59.2 2.3 55.4 1.9 44.6 1.6 42.3 38.4 1.1 1.2 29.5 1.1 19.1 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4
Slide 22: Digital Solutions: Operating EBITDA breakeven
Digital Solutions Achieved Operating EBITDA breakeven as business scales Business revenue (A$m) 1 Operating expenses (A$m) 1 EBITDA (A$m) 1 +8% vs FY23 -25% vs FY23 Op EBITDA $8.7m vs FY23 EBITDA +$4.6m vs FY23 13.6 14.5 8.5 12.1 (1.2) Op 7.9 7.2 EBITDA 6.7 9.1 (7.6) (5.8) (8.1) (6.4) Specif
Slide 23: International: UK market activity
International Below trend UK market activity Market remortgage transactions (average #’000 pm) Estimated re-mortgage market mix by product (%) Market S&P transactions (average #’000 pm)1 40 180 100 Recession Recession 35 160 90 140 30 80 70 120 25 60 100 20 50 Period Period average average 80 Period
Slide 24: UK lender pipeline summary
International Lender pipeline summary, strong interest in BOE testing slot Pipeline size PEXA & Optima Engagement Status PEXA Go & Pay Onboarding Status Contracting Status (# of institutions) Optima Legal customers 2 2 large banks Working with and 4 small NatWest and lenders have other major 4 agree
Slide 25: International
International Platform investment, integration, lower market activity impacting cash spend Business revenue (A$m) 1 Operating expenses (A$m) 1 EBITDA (A$m) 1 +4% vs FY23 +9% vs FY23 Op EBITDA -$6.6m vs FY23 EBITDA -$9.9m vs FY23 53.9 56.0 69.2 63.7 Smoove 21.2 Op 21.1 (33.0) (39.6) EBITDA Sm
Slide 26: Group Cashflow
Group Cashflow Free cashflow generation improving Cash balance bridge: June 2023 to June 2024 (A$m) 1 EBITDA to free cashflow conversion: FY23 vs FY241 Free cashflow: FY24 (A$m) Free cashflow 13.5 13.5 conversion = 38.5% $10m of debt (68.8) (68.8) repaid in 2H24 100.0 38.5 (6.2) 100.0 1.5 Adjusted N
Slide 27: Group balance sheet: better structured
Group balance sheet Better structured Maturity profile of Group banking facilities (A$m) Average gross debt and PEXA plus third-party moneys: FY23 to FY24 (A$m) Average gross loans and borrowings 1 335 Re-finance completed in Jun-24 350 Total facility $500m, drawn $367m Weighted term to maturity inc
Slide 28: Group balance sheet: de-leveraging
Group balance sheet De-leveraging as earnings improve Net Debt / Op EBITDA 1 Times Interest Cover – Op EBITDA / Gross interest expense 2 2.7 7.0 5.4 2.4 FY23 FY24 FY23 FY24 Net debt / operating EBITDA declined over the year because of improved operating EBITDA in Times interest cover declined throug
Slide 29: Productivity cash savings of $16.2m pa
Group performance Productivity cash savings of $16.2m pa In-year cash benefit from FY24 actions (A$m) Impact on FY23 to FY24 pro forma cash spend (A$m) 1H24 PEP initiatives 6.7 • Removing duplication 257.3 1.5 • Leveraging investments in 2.9 new technology platforms 1.7 2.1 5.2 such as Snowflake and
Slide 30: Capital framework
Group balance sheet Capital framework being embedded in business Objective Generate sustainable returns for shareholders Principles Maintain organic Evaluate material Ensure a strong, Recycle surpluses Run the business Deliver robust and Safeguard liquidity investment new opportunities flexible bala
Slide 31: Outlook and Q&A
Page 3 Page 13 Page 30 Page 36 Overview Financial results Outlook and Q&A Appendices Glenn King Group CEO and Managing Director 30
Slide 32: Economic outlook
Economic outlook Mixed prospects, risks remain GDP growth (%, yoy) Central bank rate (%, average of year) Real dwelling investment growth (%, yoy) 2.5 2.4 2.4 1.9 2.0 4.0 4.3 1.7 3.6 3.3 3.2 0.3 -1.9 -1.7 Australia1 CY 23A CY 24F CY 25F CY 26F CY 27F CY 23A CY 24F CY 25F CY 26F CY 27F CY 23A CY 24F
Slide 33: FY25 priorities
FY25 priorities Discipline and execution Australia: Enhance and Extend International: Expand Group: Evolve Increase coverage Platform Cyber resilience • Tasmania, NT, instruments • Remo, S&P, integrations • Leverage partners Exchange Increase integration Lenders People • APIs, PMS providers • Conver
Slide 34: UK developments: targeted delivery
UK developments Targeted delivery FY 4Q24 1Q25 2Q25 3Q25 4Q25 ✓ S&P v0.5 S&P v1.0 S&P v2.0 PEXA-controlled deliverables 1 Platform ✓ PEXA/Optima Legal integration REMO TOE3 PEXA / Smoove integration Smoove Including improved business and financial performance Enhance business performance over FY25 O
Slide 35: Guidance
Guidance Outlook for key financial measures Metric FY25 guidance Commentary Group Business Revenue + 13-19% Uplift vs FY24 ‘as published’ basis. Includes full year of Smoove Group Operating EBITDA margin ≥ 34% Includes Smoove. ≥ 3.1% improvement on FY24 pro forma outcome Consists mainly of integrati
Slide 36: Key messages
Key messages Improving strategic position Exchange Strong performance from world-class digital infrastructure Australia Deepening relationships with existing and new customers Digital Solutions 1 Business scaling, June ’24 break-even achieved 2 Platform and lP Development on-track, designed to be mu
Slide 37: Appendices
Page 3 Page 13 Page 30 Page 36 Overview Financial results Outlook and Q&A Appendices 36
Slide 38: Detailed financial information: Group
Detailed financial information Group Financials disclosed in this section is on an as reported basis 37
Slide 39: Group results: detailed financials
Group results Detailed financials Group financial performance Commentary A$m FY23 FY24 Business revenue Business Revenue 283.4 343.5 • Exchange up $28.9m or 11.0% – mainly CPI-linked pricing effects Cost of sales (34.8) (50.3) • Growth businesses up $31.2m – impact of acquisitions Gross margin 248.6
Slide 40: Group results: pro forma revenue and expense analysis
Group results Pro forma revenue and expense analysis Business Revenue bridge including pro forma impacts: FY23 vs FY24 (A$m) 21.6 1.0 (3.6) 28.9 343.5 12.2 11% 7% 20% 295.6 increase increase decrease 283.4 Published Pro forma impacts Pro forma FY23 Exchange vs FY23 Digital Solutions International Sm
Slide 41: Group results: non-operating items review
Group results Non-operating items review Group financial performance Commentary A$m FY23 FY24 Operating EBITDA 98.7 114.9 Specified items Specified Items • $8.7m higher than in FY23 - largely due to restructuring and redundancy Integration costs (5.2) (4.6) related costs related to the Group’s PEP p
Slide 42: Group results: amortisation charge
Group results Amortisation charge Group capex to amortisation1 and revenue ratios: 1H20 to 2H24 (%) Components of Group amortisation1 charge: FY23 to FY24 ($m) Category FY23 FY24 100% 90% Historical acquired amortisation (55.9) (55.8) 80% Capex to amortisation 70% Amortisation on business assets (2.
Slide 43: Specified Items Reconciliation June 2024
Specified Items Reconciliation 12 Months ended 30 June 2024 Share of loss Redundancy M&A after tax 30 June 2024 and transaction from Total 30 June 2024 Statutory Integration restructuring Unrealised FX professional investments Specified Excl Specified P&L costs related costs gain / (loss) fees in as
Slide 44: Specified Items Reconciliation June 2023
Specified Items Reconciliation 12 Months ended 30 June 2023 Share of loss Redundancy M&A after tax 30 June 2023 and transaction from Total 30 June 2023 Statutory Optima Legal restructuring Unrealised FX professional investments Specified Excl Specified P&L integration related costs gain / (loss) fee
Slide 45: Published figures to Pro forma reconciliation
Published figures to Pro forma reconciliation A summary of the changes across PEXA over FY23 and FY24 Published Pre ownership Pro forma Exchange A$m FY23 FY24 FY23 FY24 Business revenue 263.1 292.0 263.1 292.0 Operating expenses (89.9) (98.0) (89.9) (98.0) Digital Solutions .id Land Insight A$m FY23
Slide 46: Detailed financial information: Exchange
Detailed financial information Exchange Financials disclosed in this section is on an as reported basis 45
Slide 47: Exchange: detailed financials
Exchange Detailed financials Exchange financial performance Commentary A$m FY23 FY24 Business Revenue Business revenue 263.1 292.0 • $28.9m (11%) higher than in the PCP Cost of sales (32.0) (34.9) • Primarily due to improved volumes, mix and repricing effects Gross margin 231.1 257.1 Operating expen
Slide 48: Exchange: revenue
Exchange Revenue PEXA penetration of national market (% of total transactions) PEXA transactions (#’000 per half) 1,919 1,966 88% 89% 1,829 1,846 267 260 Other 251 257 480 485 382 Refinance 494 Transfer 1,172 1,084 1,221 1,207 FY23 FY24 1H23 2H23 1H24 2H24 Average price (A$ per transaction) Exchange
Slide 49: Exchange: expenditure
Exchange Expenditure Exchange operating expense bridge: FY23 to FY24 (A$m) Exchange capex by category: FY23 to FY24 (A$m) 37.5 37.7 Other (3.2) 8.2 6.5 1.3 (2.5) Regulatory Integration 10.7 (1.8) Enhancement 8.8 13.4 3.6 5.6 9.7 98.0 Co 14.9 8.1 89.9 FY23 FY24 FY23 Inflation Labour Capitalis- Non- O
Slide 50: Exchange: volume and market data
Exchange Volume and market data Exchange volume and market data: FY23 to FY24 (A$m) 1H23 2H23 1H24 2H24 FY23 FY24 Transfer 102.4 95.0 114.2 112.7 197.4 226.9 Refinance 23.7 24.5 25.6 20.3 48.2 45.9 Other 8.0 7.7 8.7 8.2 15.7 16.9 Non-ELN fee revenue 1.0 0.8 1.1 1.2 1.8 2.3 Exchange revenue ($m) 135.
Slide 51: Detailed financial information: Digital Solutions
Detailed financial information Digital Solutions 1 Financials disclosed in this section is on an as reported basis 1 Previously Digital Growth. 50
Slide 52: Digital Solutions: detailed financials
Digital Solutions 1 Detailed financials Digital Solutions 1 financial performance 2 Commentary A$m FY23 FY24 Business Revenue Business Revenue 11.6 15.7 • Business revenue up $4.1m (or 35%) due to acquisitions, and increased revenues Cost of sales (2.0) (1.5) from workflow and transaction support pr
Slide 53: Digital Solutions: revenue and expenses
Digital Solutions1 Revenue & expenses Digital Solutions revenue bridge: FY23 pro forma3 vs FY24 (A$m)2 (0.1) (0.5) 0.6 (1.0) 1.4 0.8 (0.1) 3.0 Change in Net subscription revenue growth = 5%2 14.6 recognition 15.7 principles 11.6 +7% FY23 Pre FY23 AASB 15 New Lost Prior year Projects Legacy New FY24
Slide 54: Digital Solutions: operating EBITDA and capex
Digital Solutions 1 Operating EBITDA and capex Digital Solutions FY24 monthly operating EBITDA (A$m) Digital Solutions capex: FY23 to FY24 (A$m) 0.2 5.9 Acquisition 4.9 integration 0.0 and other (0.2) (0.2) 1.0 Non-VA (0.4) product (0.4) development (0.5) 4.9 Value 1.8 Australia (0.8) (0.9) (1.0) (1
Slide 55: Detailed financial information: International
Detailed financial information International Financials disclosed in this section is on an as reported basis 54
Slide 56: Re-mortgage market instruction process
Re-mortgage market instruction process Indicative re-mortgage flows INSTRUCTION SOURCE INSTRUCTION METHOD INSTRUCTION FIRM5 Minority 2 1 Direct 3 Fees appointment Instructions assisted Borrower Lender Majority ~80% £ Panel Manager Cash paid Lender 3 1 Cash back Borrower 4 Others Others ~20% Broker 6
Slide 57: Sale and purchase instruction process
Sale and purchase instruction process Indicative sale and purchase flows INSTRUCTION SOURCE INSTRUCTION METHOD INSTRUCTION FIRM ~90% Home builder Estate agent Full-service law firms recommended Direct appointment 1 c.300 Intermediary appointed Mortgage broker recommended ~50% ~50% Conveyancing facto
Slide 58: UK distribution capability enabled by acquisitions
UK Distribution capability enabled by acquisitions Access to meaningful market share UK Lenders Market Share1 Remortgage Conveyancing Transactions Market Share2 Lender 1 19% Conveyancer 1 33% Lender 2 13% ✓ Combined access to ~71% of UK Optima Legal 22% Highly Lender market share concentrated Lender
Slide 59: International: detailed financials
International Detailed financials International financial performance 1 Commentary A$m FY23 FY24 Business Revenue Business Revenue 8.7 35.8 • Optima Legal revenue per transaction up 21% (7% ex interest) vs pro forma PCP – Cost of sales repricing and mix (0.8) (13.9) • Volumes for Optima Legal 37% do
Slide 60: International: Optima Legal performance
International Performance impacted by market and Capita issue Optima Legal remortgage volumes by quarter (average #’000 pm) 1 Monthly Optima Legal rolling 3-month average market share (%) 1,2 12 25 Instructions 10 20 Completions 8 15 6 10 4 Period average 2 5 0 0 Jul-23 May-22 May-23 Sep-23 3Q22 2Q2
Slide 61: Smoove: economics overview
Smoove Economics overview Volumes (#’000) Revenue per transaction (£) Average cost of sales per Gross profit excluding Other transaction (£) (£’000) 34.2 30.0 162 161 Remo FY23 FY24 FY23 FY24 17.1 15.6 310 352 118 131 6,682 7,148 Sale and Purchase x - = FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 51.3 4
Slide 62: International: expenditure
International Expenditure International operating expense bridge: FY23 pro forma1 vs FY24 pro forma2 (A$m) International capex (A$m)3 1.2 (2.1) 2.9 (1.1) 0.7 26.2 4.0 24.0 2.7 Integration 0.7 Sale and Purchase 4.4 development 29.1 Development (including joint Optima Legal 69.3 proposition) 63.7 23.3
Slide 63: International: expenditure by business
International Expenditure International operating expense bridge: FY23 pro forma1 vs FY24 pro forma2 (A$m) Smoove operating expense bridge: FY23 pro forma1 vs FY24 pro forma2 (A$m) 0.1 0.6 4.9 1.2 (2.5) 1.6 (0.2) 29.1 63.7 69.3 21.1 21.2 34.6 FY23 Pre FY23 Smoove Optima Pexa UK FY24 FY23 FX Scale La
Slide 64: Glossary
Glossary 63
Slide 65: Glossary
Glossary Term Type Definition API Business Application programme interface ARNECC Business Australian Registrar’s National Electronic Conveyancing Council As published Financial – non-IFRS Numbers as provided without adjustment in PEXA’s published financial reports, market briefings or investor upda
Slide 66: Glossary
Glossary Term Term Type Type Definition Definition Free cash conversion Financial – non-IFRS Free cashflow divided by EBITDA adjusted for items not having a cash impact FTE Business Full time equivalent employees FY Business PEXA’s financial year, which covers the period from 1 July to the following
Slide 67: Glossary
Glossary Term Term Type Type Definition Definition Operating EBITDA margin Financial – non-IFRS Operating EBITDA divided by Business Revenue Optima Business Optima Legal Other transaction type Business Being in Australia a property transaction passing through PEXA’s Exchange which is neither a trans
Slide 68: Investor relations and Media contacts
Investor relations Media Hany Messieh Kate Prigg + 61 414 446 876 + 61 497 595 580 hany.messieh@pexa.com.au kate.prigg@pexa.com.au