Slide 1: FY21 Results Presentation
FY21 Results Presentation 25 AUGUST 2021
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: Today's speakers and agenda
Overview Today’s speakers Today’s agenda Glenn King FY21 Business Highlights 4 Group Managing Director and Chief Executive Officer > Joined PEXA in late-2019 FY21 Business Overview & Performance 8 > Prior to PEXA was the NSW Customer Service Commissioner & Secretary of NSW Government Department of C
Slide 4: FY21 Business Highlights
FY21 Business Highlights
Slide 5: Key FY21 highlights
Key FY21 highlights Successful A$3B IPO and listing on the ASX FY21 revenue and PEXA Exchange EBITDA ahead of Prospectus forecast PEXA Exchange volumes up 37% year on year, with continued growth potential Property market volumes remain robust in early FY22 Multiple growth opportunities progressing a
Slide 6: PEXA delivers strong FY21 revenue and earnings growth
PEXA delivers strong FY21 revenue and earnings growth KEY FINANCIAL METRICS KEY OPERATING METRICS REVENUE PEXA EXCHANGE TRANSACTIONS $221m up 42% YoY and 1% on Prospectus forecast 3.3m up 37% YoY and 1% on Prospectus forecast PEXA EXCHANGE EBITDA1 PEXA EXCHANGE TRANSFER MARKET PENETRATION $110m up 1
Slide 7: Good momentum and progress in FY21
Good momentum and progress in FY21 MEMBER HIGHLIGHTS ADDITIONAL GROWTH HIGHLIGHTS Momentum towards digital transactions International expansion 3.3m property transactions occurred on the PEXA Exchange, up 37% on FY20 With a build partner appointed and a local team on the ground, PEXA’s entry into th
Slide 8: FY21 Business Overview & Performance
FY21 Business Overview & Performance
Slide 9: Three core growth initiatives in addition to the PEXA Exchange
Building on its strong track-record, PEXA is now pursuing three core growth initiatives in addition to the PEXA Exchange GROWTH INITIATIVES PEXA Exchange PEXA International PEXA Insights PX Ventures Improving the property settlement Bringing digital property settlement Providing innovative data Thro
Slide 10: The majority of land transactions in Australia now occur on the PEXA Exchange
The majority of land transactions in Australia now occur on the PEXA Exchange PEXA EXCHANGE Australia’s leading Electronic Lodgement Network Operator (ELNO) FY21 transactions completed1 More than 650,000 property > Favourable industry conditions settlements and more than 320,000 continue, 19% growth
Slide 11: Transforming property experiences for everyone
Transforming property experiences for everyone EXCHANGE DELIVERY AND GROWTH IN FY21 EXCHANGE DELIVERY AND GROWTH IN FY22 > Increased digital enablement in jurisdictions, meaning more transactions > Expansion into new jurisdictions can be completed via the PEXA Exchange > Launch of new products and s
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 GOVERNMENT AND REGULATORY TECHNOLOGY BUILD PROGRESSING WELL POSITIVE LENDER ENGAGEMENT ENGAGEMENT UNDERWAY Partnered with global software Product testing with lender Positive senior official consultancy, ThoughtW
Slide 13: Extending PEXA into new services and partnerships
Extending PEXA into new services and partnerships PEXA INSIGHTS PX VENTURES > Established PEXA Insights >E stablished PX Ventures to expand services, in partnership with consumers, business and > PEXA Insights team now 40+ data specialists government > Property Bureau established and being >H ighly
Slide 14: 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 > Against the backdrop of COVID-19, PEXA helped > 350+ employees across Australia and the UK > A ‘net zero’ commitment formalised and more practitioners transact digitally than eve
Slide 15: FY21 Financial Summary
FY21 Financial Summary n WS We NN y »y LBZ
Slide 16: Revenue, EBITDA and NPBT all ahead of Prospectus forecast
Revenue, EBITDA and NPBT all ahead of Prospectus forecast PRO FORMA1 FINANCIAL PERFORMANCE REVENUE AND PRO FORMA1 PEXA EXCHANGE EBITDA (A$M) Variance (%) 2 221.0 218.5 A$m; Year ended 30 June FY20 FY21A FY21F FY20 FY21F Revenue 155.6 221.0 218.5 42% 1% +42% Operating costs incl. cost of sales (104.0
Slide 17: PEXA Exchange volume up 37% and above Prospectus forecast
PEXA Exchange volume up 37% and above Prospectus forecast PEXA Exchange penetration (%) 1 PEXA Exchange transaction volumes (000s)1 > Total market volumes of 4.2m transactions (billable events) were up 19% on FY20 and 1% on Prospectus 98% 99% 97% Forecast > Exchange penetration of 79% was 80% 80% 3,
Slide 18: PEXA Exchange revenue up 42% and above Prospectus forecast
PEXA Exchange revenue up 42% and above Prospectus forecast PEXA Exchange transaction volumes (000s)1 PEXA Exchange revenue (A$M)1,2 3,326 3,282 383 371 218.6 216.3 2,421 649 627 9.7 9.4 > Total Exchange volumes up 37% from 321 FY20 and 1% ahead of Prospectus 585 30.0 29.0 forecast 2,294 2,283 > Aver
Slide 19: PEXA Exchange gross margin stable
PEXA Exchange gross margin stable 85%+ margin underpinned by fixed cost of sales per lodgement > 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 r
Slide 20: PEXA Exchange cost-base stable, underpinning high operating leverage
PEXA Exchange cost-base stable, underpinning high operating leverage PRODUCT DESIGN AND DEVELOPMENT Pro Forma PEXA Exchange operating expenses (A$M)1 > Costs to develop and operate the PEXA platform > Main driver is headcount, third parties supporting platform operations and AWS hosting services > F
Slide 21: PEXA Exchange operating leverage, EBITDA growing faster than revenue
PEXA Exchange operating leverage, with EBITDA growing faster than revenue Strong revenue growth and stable expenses deliver 50% EBITDA margin in FY21 Total PEXA Exchange expenses (A$M) and expense per transaction PEXA Exchange EBITDA (A$M) and EBITDA margin (%) (A$)1 120.0 $80 120.0 60.0% 110.6 110.
Slide 22: Strong Pro Forma operating cash flow, up 176%
Strong Pro Forma operating cash flow, up 176% to A$113m and above Prospectus forecast FY21 PEXA Group Statutory Cash Movements (A$M) Slide 22 Pro Forma Cash Flows (A$M) 500.0 $ millions Pro Forma Historical 297.4 450.0 Year ended 30 June FY20 FY21A FY21F EBITDA 45.3 101.8 99.7 400.0 Non-cash items i
Slide 23: Trading Update & Outlook
Trading Update & Outlook
Slide 24: Positive trading start to FY22; FY22 Prospectus forecasts reaffirmed
Positive trading start to FY22; FY22 Prospectus forecasts reaffirmed despite COVID-related lockdowns Comparison of PEXA Exchange volumes (000s) > Q4 FY21 volumes of 967k: • exceeded Prospectus forecast (923k) by 5% +47% • up 50% from Q4 FY20; up 18% from Q3 FY21 > 2H FY21 volumes up 47% from 2H20 +2
Slide 25: In closing
In closing Showcasing a consistent track-record, FY21 revenue and PEXA Exchange EBITDA were ahead of Prospectus forecast Growth driven by PEXA Exchange with momentum across other initiatives Growth despite COVID-19, refinancing activity is robust and the property market remains resilient A trusted b
Slide 26: Q&A
Q&A
Slide 27: Appendix
Appendix
Slide 28: The PEXA Exchange continues to perform ahead of forecast
The PEXA Exchange continues to perform ahead of forecast The PEXA Exchange continues to perform ahead of forecast Total digitalTotal property settlement billable transactions in Australia (M) 1 digital property settlement billable transactions in Australia (M)1 Penetration by jurisdiction (% of tran
Slide 29: Key Operating Metrics
Key Operating Metrics Slide 27 Variance (%) Variance (%) Year ended 30 June FY20 FY21A FY21F FY20 FY21F Year ended 30 June FY20 FY21A FY21F FY20 FY21F Key operating metrics Exchange revenue by state Transfer 2,306 2,878 2,853 25% 1% VIC 66 73 72 11% 2% Refinance 599 658 643 10% 2% NSW 61 76 75 25% 1
Slide 30: Free cash flow statement and reconciliation from Pro Forma to Statutory
EBIT (10.7) 28.4 29.1 (3 Interest paid — (3.3) (3.3) Net finance income / (expense) 1.9 (36.5) (36.5) Payment of finance lease liabilities (2.0) (2.0) (2.0) Profit/(loss) before tax (8.8) (8.1) (7.4) Income Free cash flow statement and 22.3 reconciliation 85.3 74.4 from Pro Forma to Statutory Income
Slide 31: Balance sheet
Balance sheet Slide 31 Balance Sheet $ millions Actual Statutory Pro Forma A$M; As at 30-Jun-20 30-Jun-21 31-Dec-20 30-Jun-21 Statutory vs Prior Year > Cash and cash equivalents in Jun-21 below Statutory Jun-20 Current assets position due to a pre-IPO repayment of shareholder loans in Cash and cash
Slide 32: PEXA Exchange integrations
P E XA PEXA Exchange Exchange integrations integrations The PEXA The Exchange PEXAwas developed Exchange wasover eight yearsover developed in collaboration eight yearswith inkey market collaboration with key market participants and has reached a critical mass participants and has reached a critical
Slide 33: Collaborating on a digital settlement environment that continues to benefit users
Collaborating on a digital settlement environment that continues to benefit users PROPOSED INTEROPERABILITY MODEL > Strong focus on relationships with government, The Interoperability Operational Committee has endorsed a number of principles to guide the land titles offices and state revenue offices
Slide 34: pexa.com.au
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