Agency Group Australia Ltd · ASX:AU1
Agency Group Australia — Investor Presentation (February 2023)
28 slides from Agency Group Australia's investor presentation, Feb 28, 2023
Slide 1: 1H FY23 Investor Presentation
1H FY23 Investor Presentation THE AGENCY 28 February 2023
Slide 2: 1H FY23 Key Takeaways
1H FY23 Key Takeaways 5(0.95M) Underlying EBITDA! (1H FY22:$2.14M) $2.6B Gross Value of Properties Sold (IH FY22: $3.18) $45.7M @cr (IH FY22: $52.9M) $37.5M Revenues from Ordinary Activities (1HFY22:$35.5M) 2,847 No. of Properties Sold (IH FY22:2,910) 412 No of Agents (31Dec 2021: 345)
Slide 3: Increase in National Market Share in 1H FY23
$3.1bn $52.9m Increase in National Market Share in 1H $2.6bn $45.7m FY23 1.15% $2.2bn $38.1m 0.92% 0.90% Although we are increasing national market share, state mix of sales and average selling price 0.70% $1.5bn movements have impacted Gross Sales Volume $24.9m 2,910 2,847 $1.2bn 0.57% and lower Gr
Slide 4: Agent recruitment and expansion to Rockhampton and Capricorn Coast
Across 2022, the broader industry saw a number or lower performing agents exit the industry as a result of the tough operating environment on the East Coast. The Agency achieved good recruitment in Western Australia during the period as we focus on gaining market share in the premium western suburb
Slide 5: Refreshed leadership in Vic & QLD
Refreshed leadership in Vic & QLD In January, new state leadership for Queensland and Victoria/Tasmania was announced. Following on from the establishment of these states over recent years, the next focus is on scaling The Agency's presence across each state and increasing market share. Sally O'Conn
Slide 6: Appointment of Chief Marketing Officer and National Head of Brand
Appointment of Chief Marketing Officer and National Head of Brand. Launch of National Brand Refresh to align all regions under a single brand guidelines to improve brand recognition and penetration. National Brand Refresh launch coincided with a launch a new website to maximise engagement and genera
Slide 7: Investments in data strategy and security
We have made significant investments in the area of data strategy and security with the appointment of a Chief Technology Officer. The CTO will focus on identifying efficiencies and deliver efficiency savings, along with leading IT investments that support and enhance our growth strategy as we scale
Slide 8: Data Security Strategy
Data Security Strategy External Data Security review process undertaken by The Agency to review how data is collected and stored. While the majority of our customer data is held in external SaaS databases which now have Multi Factor Authentication, The Agency still has a responsibility to minimise a
Slide 9: MDC Trilogy Group Alliance
1H FY23 Investor Presentation 9 MDC Trilogy Group Alliance e@ Newstrategic alliance with MDC Trilogy Group (“MDC Trilogy’) to accelerate The Agency market share across geographical areas. @ =Aninhibitor to agent recruitment is often an agent owning existing rent roll assets. The alliance with MDC Tr
Slide 10: iii DARARAGAGRAL|
iii DARARAGAGRAL| vUUTNURTIE MEME
Slide 11: Continued investment in strategic initiatives
Notwithstanding a softer market environment, to ensure solid foundations for future growth, continued investment on a number of strategic initiatives have been undertaken. During 1H FY23 The Agency undertook a number of strategic As part of a mortgage broker departing the Group’s mortgage initiative
Slide 12: Significant shareholder value held off Balance Sheet
Significant shareholder value held off Balance Sheet Cash at bank $4.41m $8.22m -46.4% Net Assets $14.99m $16.40m 8.6% Assets not on balance sheet! $12.71m $12.68m 0.2% Estimated Net Assets? $27.70 $29.08m @ The value attached to internally generated Property Management and remaining Mortgage book i
Slide 13: Industry Highlights
Slide 14: Total Annual Addressable Market
Residential Real Estate $9.3 Tn Australian Superannuation $3.3 Tn Australian Listed Stocks $2.8 Tn Commercial Real Estate $1.3 Tn Total Annual Addressable Market* (GCI) Source: CoreLogic, RBA, APRA, ASX * Assessed at 1.50% Average Commission Rate of Gross Sales Volume of $494.6Bn.
Slide 15: Transaction volume change by state, 6 months to 31 December
NSW -30.2% In the 6 months to 31 December, Australian VIC -23.1% market volumes have reduced 21.6% from prior corresponding period. QLD -26.6% The Agency has recorded better than system performance with volumes reducing 2%. This has led to increased market share of national SA 2.3% transactions. WA
Slide 16: State Breakdown of Transactions Volume
State Breakdown of Transactions Volume (12 months to December 2022) WA 66,833 In the 12 months to 31 December, NSW and NSW 142,654 Queensland represented approx. one quarter SA 39,071 of the national sales volume, followed closely by Victoria at 22%. NT 3,821 Increased organic agent recruitment and
Slide 17: Investor Participation at 33.6%
Investor Participation at 33.6% is slightly below the decade average of 34.6%. ACT NSW is the state with the highest investor TAS participation with 37.4% of lending to investors, while WA has grown to 29.0% in December 2022, up from 21.8% in December WA 2021. SA QLD VIC NSW AUST Source: CoreLogic,
Slide 18: % of loans originated with an LVR >= 90%
% of loans originated with an LVR >= 90% 14.1% 13.1% 12.7% 10.8% 10.2% 9.6% 9.5% 8.3% 8.0% 5.1% 5.2% 4.5% 3.4% Mortgage originations for ‘risker’ types of lending 2.9% 3.0% 2.8% 2.5% 2.3% trended notably lower through 2022. Furthermore, as increased interest rates were incorporated into new mortgage
Slide 19: Outlook
Slide 20: Strategic objectives
Strategic objectives t ed Further expansion of geographical regions across Australia in a disciplined capital and operating expenses approach including through MDC Trilogy Group. Continued growth in agent numbers across the company. mall Enhancement of adjacency offerings to our agents and customers
Slide 21: CY2023 Outlook
CY2023 Outlook a i Across 2023, states with lower median price points to continue to transact above decade average levels, outperforming higher median priced states which are expected to transact below decade volume averages. CY23 likely to be a year of two halves. The beginning of the year is likel
Slide 22: Appendix
Slide 23: Financial results notes
1. Underlying adjusted for the impact of AASB16 Leasing Standard and Gain on Sale. n.a – Not Applicable n.m – Not Meaningful
Slide 24: 1H FY23 Balance Sheet
1H FY23 Investor Presentation Balance Sheet nina [20 tne 2038 | Chars | Cash at bank $4.41m $8.22m 46.4% Other Current Assets $13.84m $11.60m 19.3% Non Current Assets $33.49m $27.84m 20.3% Total Assets $51.74m $47.65m 8.6% Total current liabilities ($20.45m) ($28.25m) -27.6% Total Non current liabil
Slide 25: Cashflow Statement
Cashflow Statement IH FY23 IHFY23 TH FY22 (Underlying)* (Statutory) (Statutory) (Pre AASB16)* (Post AASB16) (Post AASB16) EBITDA ($0.95m) $0.14m $3.05m Change in net working capital ($0.66m) ($0.36m) $0.66m Net interest Paid ($0.19m) ($0.36m) ($0.31m) Net Cashflow from Operating Activities ($1.80m)
Slide 26: Geoff Lucas
Geoff Lucas Managing Director & CEO. geofflucas@theagency.com.au Linkedin: www.linkedin.com/Geoff-lucas David Tasker Chapter One Advisors dtasker@chapteroneadvisors.com.au IHFY23 Investor Presentation 26
Slide 27: NOT AN OFFER
NOT AN OFFER This presentation is for information purposes only. This political and social uncertainties and contingencies; involve presentation does not comprise a prospectus, product known and unknown risks and uncertainties that could disclosure statement or other offering document under cause ac
Slide 28: THE AGENCY
THE AGENCY 28
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