Agency Group Australia Ltd · ASX:AU1
Agency Group Australia — FY2022 Earnings Presentation
29 slides from Agency Group Australia's earnings presentation, Aug 25, 2022
Slide 1: Investor Presentation for the FY2022 Full Year Results
(ASX: AU1) Investor Presentation for the FY2022 Full Year Results 30 June 2022
Slide 2: Key Takeaways
KEY TAKEAWAYS UNDERLYING EBITDA1 Revenues from Ordinary Activities GCI2 $3.85M $72.7M $102.5M (FY21: $3.06M) → +26% (FY21: $58.4M) → +24% (FY21: $80.7M) → +27% Gross Value of Properties Sold No. of Properties Sold No of Agents $5.9Bn 5,709 393 (FY21: $4.8Bn) → +23% (FY21: 4,964) → +15% (FY21: 308) →
Slide 3: Increase in agent numbers underpinning GCI growth
INCREASE IN AGENT NUMBERS UNDERPINNING GCI GROWTH 28% 27% Net increase of Growth Growth 71% 85 12% Growth 393 15% 21% Growth $102.5m Agents from 30 June 2021 Growth Growth 58% 67% $80.7m 308 Growth Growth $5.9bn 5,709 276 15% 4,964 $4.8bn $47.9m Increase in No. of Properties Sold 3,147 $2.9bn 27% In
Slide 4: A growing brand now with presence in 6 states and territories
A growing brand now 30 with presence in 6 186 states and territories 147 Since 30 June 2021, The Agency has invested in 10 new geographical markets of Manly NSW, Sunshine Coast, Gold Coast and Toowoomba in 20 Queensland and Canberra in the ACT. Post financial year end in July 2022, The Agency has en
Slide 5: Bushby Property Group Acquisition
Bushby Property Group Acquisition Bushby Property Group, to be renamed The Agency – Team Bushby consists of nine sales agents within the 32 staff who have sold over $125m in residential property over the past 12 months and circa 1,300 properties under management, operating out of its large ‘hub’ off
Slide 6: Why agents are choosing The Agency
Why agents are At The Agency, we’re not a traditional franchise structure. Instead, we’ve removed the ‘middle layer’ and created a more responsive, efficient and effective model for our agents. This means our agents are better rewarded and their clients receive a choosing The Agency superior service
Slide 7: Reimagining the office
Reimagining the office In line with The Agency Group’s innovative approach to disrupting the status quo, The Agency’s newly opened satellite office in Western Suburbs of Perth completements the existing Hub office in the Perth CBD. In an innovative approach, the office also doubles as an Art Gallery
Slide 8: How agent recruitment assists the agency profitability
How agent recruitment Across the past 12 month period, there has been an increase of 85 Agents. The profitability of FY22 recruits is yet to fully flow through to The Agency operating profit (as visualised below). assists the agency profitability Recruitment Month JAN 22 Agents recruited in existing
Slide 9: Financial Highlights
Financial Highlights FY22 Investor Presentation 9
Slide 10: Positive jaws delivering EBITDA growth
Positive jaws delivering EBITDA growth 24% 430 basis point 26% Increase in Revenues Decrease in Increase in EBITDA Cost of Doing Business UNDERLYING1 STATUTORY FY22 FY21 Change FY22 FY21 Change Revenue $72.66m $58.38m 24% $72.66m $58.38m 24% Cost of Doing Business2 30.3% 34.6% -430 bps n.a. n.a. n.a
Slide 11: Double digit growth in key metrics as the business reaches scale
Double digit growth in key metrics as the business reaches scale delivering profitable growth and increasing cash at bank 61% 26% 26% Growth 70% Growth Growth 24% Underlying EBITDA Growth Growth 86% 39% Growth $8.2m $3.9m $4.6m Growth $72.7m $3.1m $5.1m $4.6m $41.9m $58.4m $2.7m $2.7m FY22 Operation
Slide 12: Reducing cost of doing business as revenue grows
Reducing cost of doing business as revenue grows UNDERLYING1 $72.7m FY20 FY21 FY22 GCI (Fees the vendor pays $47.9m $80.7m $102.5m for the sale of a property) $58.4m Non Payroll Agent GCI2 ($20.4m) ($35.4m) ($41.8m) Commissions Revenue $27.5m $45.3m $60.7m Other Revenue $14.2m $13.1m $12.0m $41.7m R
Slide 13: Strengthened balance sheet underpinned by net cash
Strengthened balance sheet underpinned by net cash Net (Debt) / Cash2 Position STATUTORY Net Cash $5m $3.2m KEY INDICATOR 30 June 2022 30 June 2021 Change Cash at Bank $8.2m $5.1m +61.2% $0m Statutory Net Assets $16.4m $14.1m +16.0% Value of Assets not ($5m) $12.7m $11.2m +13.4% on balance sheet Net
Slide 14: Industry Highlights
Industry Highlights FY22 Investor Presentation 14
Slide 15: 57% of Australian household wealth is held in residential housing
57% OF AUSTRALIAN HOUSEHOLD WEALTH IS HELD IN RESIDENTIAL HOUSING WITH $7.8 BILLION ANNUAL ADDRESSABLE COMMISSION MARKET Residential 584,917 $9.95T Sales in FY22 Real Estate $521.2Bn Australian $3.4T Gross Value of Sales in FY22 Superannuation Australian $2.6T Listed Stocks Total Annual Addressable
Slide 16: National dwelling approvals
National 16,000 Monthly house and unit approvals, National dwelling 14,000 12,000 Decade approvals 10,000 Average Houses 8,000 Decade Following the expiry of 6,000 Average HomeBuilder, house approvals Units have adjusted downwards to 4,000 decade average. Record high price 2,000 differences between
Slide 17: FY22 Sales Volumes
FY22 Sales Change in sales volumes, twelve months to June 2022 Volumes Sydney -9.4% Melbourne 10.7% Brisbane 14.5% Adelaide 16.9% Across the country there were Perth 17.6% variances in sales volume movements compared to FY21. Hobart 0.2% Market volumes had growth in Capital Cities markets, with slig
Slide 18: FY22 Rental Market
FY22 Rental FY22 change in rental rates Market Canberra 9.3% Hobart 8.6% Rents grew strongly across FY22 in all markets, as demand for rental Perth 6.7% properties outstripped supply. The rental growth has assisted in Adelaide 10.6% increasing yields for investors which have increased to be 3.33% Br
Slide 19: Investor participation
Investor Portion of new lending for investment housing (excluding refinance)^ Investors as a % of housing finance commitments by state (May ‘22)^ participation ACT 32.8% 50% TAS 32.6% 45% Investor participation at 34.5% of lending has recovered to be in line WA 27.1% with the decade average of new 4
Slide 20: Strategic Objectives and Outlook
Strategic Objectives and Outlook FY22 Investor Presentation 20
Slide 21: Strategic Objectives
STRATEGIC OBJECTIVES Further expansion of Enhancement of adjacency Further development and Training initiatives to ensure Leveraging technology and geographical regions across offerings to our agents and rollout of a Multi Brand our Agents are positioned to cost of doing business Australia in a disc
Slide 22: Outlook
OUTLOOK Until there is certainty around We have revised our CY22 Vendors look to experienced Market Consolidation as Consumer sentiment to interest rates, we expect National price growth to be agents who have a track smaller independents and rebound as the quantum of transaction volumes to remain -4
Slide 23: Appendix
Appendix FY22 Investor Presentation 23
Slide 24: Profit & Loss Statement
PROFIT & LOSS STATEMENT UNDERLYING1 STATUTORY FY22 FY21 Change FY22 FY21 Change Revenue $72.66m $58.04m 24% $72.66m $58.38m 24% Cost of Sales ($47.43m) ($35.65m) 33% ($47.43m) ($35.65m) 33% Gross Profit $25.22m $22.39m 13% $25.22m $22.73m 13% Other Income $0.53m $0.63m -16% $0.61m $1.29m -53% Operat
Slide 25: Balance Sheet
BALANCE SHEET STATUTORY 30 June 2022 30 June 2021 Change Cash at bank $8.26m $5.10m 61% Other Current Assets $11.60m $8.68m 34% Non Current Assets $27.84m $31.49m -12% Total Assets $47.65m $47.65m 5% Total current liabilities ($28.25m) ($15.59m) 81% Total Non current liabilities ($3.00m) ($15.54m) -
Slide 26: Cashflow Statement
CASHFLOW STATEMENT FY22 FY22 FY21 (Underlying)* (Statutory) (Statutory) (Pre AASB16)^ (Post AASB16) (Post AASB16) EBITDA $3.85m $5.69m $6.37m Change in net working capital $1.03m $1.34m ($0.23m) Net interest Paid ($0.24m) ($0.43m) ($0.98m) Net Cashflow from Operating Activities $4.64m $6.60m $4.64m
Slide 27: Geoff Lucas, David Tasker
Geoff Lucas Managing Director & CEO geofflucas@theagency.com.au LinkedIn: www.linkedin.com/in/geoff-lucas David Tasker Chapter One Advisors dtasker@chapteroneadvisors.com.au FY22 Investor Presentation 27
Slide 28: Disclaimer
DISCLAIMER NOT AN OFFER This presentation is for information purposes only. This political and social uncertainties and contingencies; presentation does not comprise a prospectus, product involve known and unknown risks and uncertainties disclosure statement or other offering document under that cou
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