Agency Group Australia Ltd · ASX:AU1
Agency Group Australia — The Agency Group Australia — Investor Presentation (February 2018)
29 slides from Agency Group Australia's investor presentation, Feb 15, 2018
Slide 1: One of the fastest growing Real-estate Group in Australia
One of the fastest growing Real-estate Group in Australia 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by The Agency Group Australia Pty Ltd ABN 37 093 805 675 (the Company) in connection with a proposed capital raising. This presentation is being provided to a limited number of investors for the sole purpose of providing preliminary background financial
Slide 3: Setting the Scene
Setting the Scene Our progress to date has been very strong New Business Model Our Technology Fast Growth Proven Model Model Roll Out disrupting the real-estate via our cloud-based digital One of the fastest growing In both Western Australia Model rolled out in February and financial services sector
Slide 4: Highlights
Highlights 44.7% Group Revenue Breakdown (WA) WA Group Results June 2017 June 2017 Growth in group revenue for the year Risk Insurance June 2016 June 2017 $6.63m $9.59m • The WA real estate market has contracted 9% in sales turn over and Mortgage 9% in value of the average home and 10 Services 31% d
Slide 5: The Agency (WA) Highlights
Listings 700 Annual Comparison The Agency 600 108% June 2016 500 307 400 • The Agency continued its stellar (WA) Highlights growth with the three main indicators of listings, settlements and gross commissions exceeding June 2017 639 300 200 100 Growth in Listings for the year 100% growth. 0 Jun-16 J
Slide 6: The Agency (WA) December Half Year 2017
BIANNUAL RESULTS - LISTINGS & SETTLEMENTS 600 The Agency • On target for FY2018 revenue growth of ~ 100% year-on-year having 500 400 (WA) December Half Year 2017 300 achieved in the first 6 200 months 82% of the previous 100 year’s total gross commission. 0 JUL - DEC 2015 JAN - JUNE 2016 JUL - DEC 2
Slide 7: Who is The Agency Group Australia
Who is The Agency Group Australia We are disrupting the real-estate industry by being one of the first fully integrated real estate and financial services company. We use property transactions and/or financing events to review and service a client’s complete finance and wealth requirements. We captu
Slide 8: Our Goals
Our Targets Referral Rates – Real Estate industry average 5% from Sales to Finance Our Goals - Source Finsure Be the fastest growing National Real-Estate brand; • 600 agents nationally (55,000 Agents) • 10,000 properties under management >25% of all • National Commercial Leasing and Sales Division >
Slide 9: Current Options for Real Estate Agents
Current Options for Real Estate Agents o Low Value o Buying Power Franchisor X o Systems X o Brand X o Takes 8-10% Gross Comms o Cash = $60k Sets up an independent o Financial Risk office o Compliance Risk SAME Franchisee o 30% plus lost in Admin (HR) Principal o Running a business, not selling o 90
Slide 10: Traditional vs The Agency
Traditional vs The Agency o 30% (Average 24%) Comms o Asset 50% o Other Assets & Income o 8%-10% Comms Streams Franchisor o No asset o Loan Book o Risk Book o Mortgage Book o GI Book X o Settlements The Best Franchisee Value Proposition for Agents o Gets 40-60% Comms o 75%-85% Comms (50%-90% o No as
Slide 11: What Differentiates us from our Competitors In Real Estate?
What Differentiates us from our Competitors In Real Estate? Traditional Real Estate and Fin Tech o Our Agents are our clients o Offices in every location competing against each other o Removed red tape and unnecessary franchise layers o Excessive Franchise fees and marketing levies o No franchise fe
Slide 12: Agent Attraction Matrix
Support & Value Proposition Agent Attraction Matrix • Support – Admin & Marketing Assistance • Value – Other income streams & wealth creation 100% 90% Online Services Sell Lease The Agency Property 80% Commission 70% Split % (to Agent) 60% Small Independents 50% Franchise 40% 30% Low Support Good Su
Slide 13: Top Level Real Estate acquisition – strategic reason
Top Level Real Estate acquisition – strategic reason • Immediate market entry and brand awareness to the East Coast Australia • Proven recognised team and agents - over 100 years’ experience between the shareholders and management team • Fastest growing agency - in excess of 75 productive sales agen
Slide 14: National Expansion
The Agency – East Coast National Expansion As at 31st December 2017, Top Level had achieved the following numbers in only 9 months (unaudited): Highlights Total Sales $480m The Agency East Coast (Top Level Real Estate Pty Ltd) • The Agency NSW launched March 2017 75 Agents recruited Total Commission
Slide 15: Our Locations
Our Locations * Part year only 15
Slide 16: Top Level Real Estate acquisition – terms
Top Level Real Estate acquisition – terms • The Agency to pay 550 million fully paid ordinary AU1 shares • The Agency will be undertaking o share consolidation of The Agency’s issued capital through the conversion of every 25 shares into one share o placement (on a pre-consolidation basis) to raise
Slide 17: ServTech – Sell Lease Property acquisition
ServTech – Sell Lease Property acquisition • Seeking to acquire wholly-owned subsidiaries of ServTech Global, subject to conditions precedent (Asset Sale Agreements signed 15th February 2018) o Sell Lease Property – approx. 201 sales agents nationally and $8.1 million revenue (audited FY2017) o Comp
Slide 18: Sell Lease Property acquisition – strategic reason
Sell Lease Property acquisition – strategic reason Agent recruitment drives revenue growth • Caters to the different requirements of sales representatives: o The Agency: high-level support and exclusive marketing areas o SLP: online support and unrestricted marketing areas • SLP acquisition opens th
Slide 19: Asset Value Comparison
Asset Value Comparison Comparison The Agency (WA) Highlights Asset Value Comparison AU1 McGraths Number of rental Properties under Mgt 4,000 7,500 Value of Properties under Mgt $24M $52M valuation per share* $0.31 $0.38 Mortgage book size 1.1Bn 2.6Bn value of Mortgage $4M $2.5M valuation per share $
Slide 20: Capital Raising
Capital Raising Use of Funds $10.0m • Seeking bids to raise a minimum of A$10m to a maximum of $15m Acquisition – Sell Lease Properties plus two other A$0.02 per share acquisitions $5.2m Top Level Pty Ltd (repayment of debt) • Offer being made to sophisticated and institutional investors only Placem
Slide 21: Share Capital Structure
Share Capital Structure Numbers $AUD ($0.02) Directors Valuation of Assets – Combined Pro-forma Existing Shares on Issue 783,793,034 $15.7m Loan & Risk Book: $4.5m Tranche 2 Share Placement Rent-roll: $28.0m 54,000,000 $1.1m under 14-Dec-17 Prospectus Settlement Agency : $2.0m Top Level consideratio
Slide 22: Why The Agency
Why The Agency “Brands don’t sell houses people do” - Focus is on the Agent rather than the brand The “right noise” – Fastest growing real estate business in Australia by Domain. The model - unique and difficult to replicate for existing franchisors and independent brands The right management - expe
Slide 23: Why The Agency (cont.)
Why The Agency (cont.) Our Agents are our clients We recognise them as the CEOs of their business Our job is to help them grow their business and focus on what they do best and is income producing - Helping the best do better We handle the compliance, accounts and administration - non income produci
Slide 24: Our Board
Our Board Paul Niardone Philip Re Adam Davey John Kolenda Matt Lahood Managing Director Chairman Non Executive Director Non Executive Director Proposed Executive Director Previously Executive Director and Chartered Accountant, Adam is Director, Private Clients John is the co-founder and Managing Mor
Slide 25: The Agency Founders- East Coast
The Agency Founders- East Coast Matt Lahood Steven Chen Ben Collier Shad Hassen CEO-Real Estate Director of Projects Property Partner Property Partner More than 30 years in real estate Over 20 years’ experience in real Has worked in real estate sales In excess of 20 years’ real estate sales; 2,000+
Slide 26: The Agency Executive Team - East Coast
The Agency Executive Team - East Coast Andrew Jensen Maria Carlino Peter Matthews Zoe Laws Thomas McGlynn ElizabethBrunton Chief Financial Officer Director of Property Head of Strategy and General Manager Director of Sales and Director of Projects Management Growth Chief Auctioneer Andrew Jensen has
Slide 27: Why invest in The Agency Group Australia
Why invest in The Agency Group Australia Proven Business model in WA (depressed market) and NSW (boom market) delivering high growth rates in sales, listings and commissions. Offering on average 50% revenue growth year-on-year Proven cloud-based digital platform offering multiple services including
Slide 28: Contact Us
Contact Us Get in Touch today Head Office The Agency Group Australia MD 68 Milligan Street Paul Niardone Perth WA 6000 M: 0412 470 241 P: 08 9204 7955 P: 08 9204 7955 F: 08 9204 7956 E: pauln@theagencygroup.com.au 28
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