Slide 1: 1H22 Results Presentation
1H22 Results Presentation 23 FEBRUARY 2022
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation and the information accompanying it Forward statements Market and Industry data (Presentation) has been prepared and provided solely by PEXA No representation or warranty, expressed or implied, is made This Presentation contains statistics, data and
Slide 3: Overview
Overview Today’s speakers Today’s agenda 1H22 Business Highlights 4 Glenn King Group Managing Director and 1H22 Business Overview & Performance 7 Chief Executive Officer 1H22 Financial Summary 17 Trading Update & Upgraded FY22 Guidance 24 Richard Moore Q&A 27 Chief Financial Officer Appendix 28 3
Slide 4: 1H22 Business Highlights
1H22 Business Highlights
Slide 5: Key 1H22 highlights
Key 1H22 highlights Robust revenue and EBITDA performance Executing a clear strategy: Enhance, Replicate, Extend and Build Core Exchange exhibiting scalability and strong outcomes PEXA International delivery progressing as planned Commercial traction in PEXA Insights and PX Ventures, first prop-tech
Slide 6: PEXA delivers strong 1H22 revenue and earnings growth
PEXA delivers strong 1H22 revenue and earnings growth KEY FINANCIAL METRICS KEY OPERATING METRICS REVENUE PEXA EXCHANGE TRANSACTIONS $145m up 46% YoY 2.1m up 37% YoY PEXA EXCHANGE EBITDA1 PEXA EXCHANGE TRANSFER MARKET PENETRATION $83m up 76% YoY 84% up 6ppts YoY NPAT1 PEXA EXCHANGE EBITDA MARGIN1 $2
Slide 7: 1H22 Business Overview & Performance
1H22 Business Overview & Performance
Slide 8: PEXA Strategy
PEXA Strategy PURPOSE TO TRANSFORM THE PROPERTY EXPERIENCE FOR EVERYONE ENHANCE REPLICATE EXTEND BUILD PRIORITIES Enhancing the core Exchange Bringing digital property settlement Developing and partnering to provide Investing in our people, platform in Australia building deeper solutions to Torrens
Slide 9: Positive momentum across all areas of the Group
Positive momentum across all areas of the Group PEXA GROUP PEXA Exchange PEXA International PEXA Insights PX Ventures Improving the property settlement Bringing digital property settlement Providing innovative data Through partnerships, delivering new experience for everyone solutions to certain int
Slide 10: The majority of property transactions in Australia now occur on the PEXA Exchange
The majority of property transactions in Australia now occur on the PEXA Exchange PEXA EXCHANGE Australia’s leading Electronic Lodgement Network Operator (ELNO) Transactions Since launch PEXA has now facilitated > Favourable industry conditions >10 million property transactions continue, with 24% gr
Slide 11: PEXA Exchange highlights
PEXA Exchange highlights EXCHANGE HIGHLIGHTS IN 1H22 FOCUS FOR 2H22 > Total transaction volumes up 37% YoY > Supporting industry in improving settlement certainty, delivering better outcomes for homebuyers and sellers > Transfer market share increased to 84%, up from 78% in 1H21 > Launch of new prod
Slide 12: PEXA International explores new markets, beginning with the UK
PEXA International explores new markets, beginning with the UK PEXA UK PROGRESS TO DATE TECHNOLOGY BUILD WELL ADVANCED POSITIVE LENDER ENGAGEMENT CONTINUES STRONG ENGAGEMENT WITH KEY PARTNERS > Working software with key features has been > First lenders signed up, with others transitioning > Agreeme
Slide 13: PEXA Insights
PEXA Insights > Provide richer service offering to existing customers of PEXA STRATEGY > Attract customers from new segments > I n line with regulations, appropriately re-monetise data generated by the Group > Two products launched in market: – Aimed at financial institutions – Improve risk and capi
Slide 14: Strategic investment in Landchecker
Strategic investment in Landchecker > PEXA Insights has made its first significant strategic investment in prop-tech data company, Landchecker – 38% stake (RACV 51%, Founders 11%) > Landchecker allows homebuyers, developers and renovators to make informed property decisions, faster: – Informing cons
Slide 15: PX Ventures
PX Ventures >E stablish partnerships in the broader digitisation of the property ecosystem STRATEGY >A ct as learning portfolio to enhance PEXA Exchange and create future opportunities >U tilise PEXA’s knowhow and relationships > PX Ventures now operating in broader property ecosystem focusing on op
Slide 16: A culture built on trust and community
A culture built on trust and community OUR PURPOSE: TRANSFORMING PROPERTY EXPERIENCES FOR EVERYONE TRUST OUR PEOPLE ESG FRAMEWORK AWARDS > Setting a new watermark for brand > Award-winning policies and culture > CY2020 GRESB outcome 92/100 > 2021 Best Place to Work – 3rd placing trust achieving an 8
Slide 17: 1H22 Financial Summary
1H22 Financial Summary
Slide 18: Revenue, EBITDA and NPAT all well ahead of prior year
Revenue, EBITDA and NPAT all well ahead of prior year PRO FORMA1 FINANCIAL PERFORMANCE REVENUE AND PRO FORMA1 PEXA EXCHANGE EBITDA (A$M) YoY Variance 145.4 A$m; 6 months ended 31 December 1H FY21 1H FY22 # % Revenue 99.7 145.4 +45.7 46% +46% 99.7 Operating costs incl. cost of sales (52.4) (62.2) (9.
Slide 19: PEXA Exchange volume up 37% and revenue up 46%
PEXA Exchange volume up 37% and revenue up 46% PEXA Exchange penetration (%) 1 PEXA Exchange transaction volumes (000s)1 98% 99% 2,105 266 97% 84% 78% +37% 1,539 448 PEXA Exchange revenue (A$M)2 71% 63% 184 1,203 55% 143.9 310 48% 161 7.4 278 85% 21.2 77% 1,391 66% 1,046 +46% 764 98.6 4.7 1H FY20 1H
Slide 20: PEXA Exchange gross margin improving slightly
PEXA Exchange gross margin improving slightly > Cost of sales predominantly made up of Average revenue per PEXA Exchange transaction (A$/transaction)2 Average cost of sales per PEXA Exchange transaction (A$/transaction)3 LSS Fees1 paid to state land registries for the pre-population of bundled prope
Slide 21: PEXA Exchange cost-base stable, underpinning high operating leverage
PEXA Exchange cost-base stable, underpinning high operating leverage 42.9 44.2 GENERAL AND ADMINISTRATION 38.5 +15% > Costs of corporate team, Board and executive remuneration, professional fees, occupancy and administration 20.2 21.2 > Increased employee costs as support functions grew to support 1
Slide 22: PEXA Exchange scale benefits flowing through
PEXA Exchange scale benefits flowing through Total PEXA Exchange expenses (A$M) and PEXA Exchange EBITDA (A$M) and expense per transaction (A$)1 EBITDA margin (%) 100.0 62.2 57.2% 60.0% 90.0 54.6 52.4 18.0 80.0 > Growth in cost base slower than that in 47.4% transaction volumes, resulting in total 5
Slide 23: Strong Pro Forma operating cash flow, up 59% to A$67.5m
Strong Pro Forma operating cash flow, up 59% to A$67.5m 1H FY22 PEXA Group Statutory Cash Movements (A$M) Pro Forma Cash Flows (A$M) $ millions Pro Forma Historical YoY Variance 6 months ended 31 December 1H FY21 1H FY22 # % EBITDA 44.2 75.5 +31.3 71% Non‐cash items in EBITDA 0.3 0.3 +0.0 8% Changes
Slide 24: Trading Update & Outlook
Trading Update & Outlook
Slide 25: Operating performance underpins upgrade to FY22 Prospectus forecasts
Operating performance underpins upgrade to FY22 Prospectus forecasts Comparison of PEXA Exchange volumes (000s) > 1H22 volumes of 2.1m are up 37% from 1H21; up 18% +37% from 2H21 > PEXA Exchange achieved 60% of FY22 Prospectus +47% forecast volumes in 1H22 (vs 52% in Prospectus) > FY22 seasonality -
Slide 26: In closing
In closing Volume and revenue growth driven by deeper penetration in key states, a robust property market and good momentum across other initiatives Property market exceptionally buoyant, with significant year-on-year growth across both transfers and refinances nationally PEXA UK launch tracking to
Slide 27: Q&A
Q&A
Slide 28: Appendix
Appendix
Slide 29: The PEXA Exchange continues to perform
The PEXA Exchange continues to perform Total digital property settlement billable transactions in Australia (M)1 Penetration by jurisdiction (% of transfers lodged via PEXA Exchange)2 2.5 98% 98% 95% 96% 96% 2.0 1.8 81% 76% 70% 2.1 1.5 1.2 21% 9% 2% 1H FY20 1H FY21 1H FY22 Dec‐19 Feb‐20 Apr‐20 Jun‐2
Slide 30: Key Operating Metrics
Key Operating Metrics YoY Variance YoY Variance 6 months ended 31 December 1H FY21 1H FY22 # % 6 months ended 31 December 1H FY21 1H FY22 # % Key operating metrics Exchange revenue by state Transfer 1,346 1,658 312 23% VIC 33.1 43.7 10.6 32% Refinance 316 453 137 43% NSW 36.5 46.3 9.9 27% Other 337
Slide 31: Income statement and reconciliation from Pro Forma to Statutory
Income statement and reconciliation from Pro Forma to Statutory Pro Forma Profit & Loss Statutory Profit & Loss Bridging Statutory P&L to Pro Forma P&L $ millions YoY Variance $ in millions YoY Variance $ millions 6 months ended 31 December 1H FY21 1H FY22 # % 6 months ended 31 December 1H FY21 1H F
Slide 32: Balance sheet
Balance sheet $ millions Actual Statutory As at 30‐Jun‐21 31‐Dec‐21 Statutory vs Prior Year Current assets > Cash and cash equivalents in Dec-21 greater than Statutory Cash and cash equivalents 51.5 78.5 Dec-20 position following strong operating performance Other current assets 33.1 15.6 Total curr
Slide 33: pexa.com.au
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