Openn Negotiation Limited · ASX:OPN
Openn Negotiation — Euroz Hartleys Conference (March 2022)
29 slides from Openn Negotiation's conference presentation, Mar 10, 2022
Slide 1: Investor Presentation March 2022
INVESTOR PRESENTATION March 2022
Slide 2: Disclaimers
DISCLAIMERS Important information and disclaimers Openn Negotiation Ltd (ACN 612 329 754) (“Openn” or “the Company”). Purpose of Document This Accuracy of Information document has been prepared by Openn Negotiation Ltd (ACN 612 329 754) (‘Openn’) for the sole purpose of Openn does not give any warra
Slide 3: Overview
OVERVIEW Openn offers innovative sales processes for real OPENN SOLVES NUMEROUS INDUSTRY PROBLEMS estate transactions, combining the ease of private treaty, the transparency of auction and cutting-edge technology to ensure the best possible sales outcome for sellers Sub-optimal pricing outcomes and
Slide 4: Company Snapshot
COMPANY SNAPSHOT SHAREHOLDER MIX CAPITAL STRUCTURE as at 9 March 2022 ASX Code OPN Cash (as at 31 December 2021) $6.48M Top 20 Shareholders (as at 31 December 2021) 70.42% Share Price (as at 9 March 2022) $0.16 37% 41% Shares on Issue* 193,786,121 Employee Performance Rights** 14,559,000 Unlisted Op
Slide 5: Corporate Restructure
CORPORATE RESTRUCTURE Peter Gibbons Managing Director HIGHLIGHTS: • Sean Adomeit is appointed Darren Bromley Duncan Anderson USA OPERATIONS CEO AU/NZ of Openn, Sean Adomeit overseeing the Australian and CEO AU/NZ CFO AU/NZ CTO New Zealand markets Duncan Anderson • Ex-Domain executive, James Presiden
Slide 6: Delivering on Growth Targets
DELIVERING ON GROWTH TARGETS Prospectus goals - May 2021 Achieved - February 2022 On track to beat initial target of 5% of Australian addressable market by June 2024 INCREASE Rolling 12-month growth in uploads +104% MARKET SHARE 4,632 agents certified Announced partnerships with the Professionals, R
Slide 7: Growth Metrics - Uploads
UPLOADS GROWTH METRICS - UPLOADS UPLOADS BY MONTH AND YEAR 800 700 600 500 400 8 a g g 5 300 Bl i R 5 § - 3 200 g = 8 =m 35 g 5 8 3 “| I | ! | | ' January February March April May June July gt MONTH / YEAR 549 290
Slide 8: Growth Metrics - Uploads
GROWTH METRICS - UPLOADS UPLOADS 2,000 1,800 a2Fvis asFvis aarvis Qirvig Q2Fvig UPLOADS AND USERS asFvI9 &é & & QUARTER / YEAR asFY20 Q4Fy20 aury21 Fy TT 2 asFy21 g iva & 100,000 90,000 Mopeny USERS
Slide 9: Success Tracker
SUCCESS TRACKER © open” $4.49 BiLON openn Q en % February 2021 g ett se i a 2022 -Y 4,000 3,285 = S
Slide 10: Market Size: The Australian Opportunity
MARKET SIZE1 THE AUSTRALIAN OPPORTUNITY On track to beat initial target of 5% market share by June 2024. Year on year growth of 188% vs target of 71% TOTAL ADDRESSABLE MARKET, AUSTRALIA, 2019 Currently ~1.4% market share in Australia based on a = 431,422 homes sold p.a seasonally adjusted analysis A
Slide 11: Openn Uploads by State
OPENN UPLOADS BY STATE Q2 FY22 11
Slide 12: Key Partners
KEY PARTNERS STRATEGIC PARTNERS PARTNERS ACCELERATOR THE REACH PROGRAM; Designed to accelerate top growth companies into the global real estate industry PARTNERSHIP STRATEGY IS Created by Second Century Ventures and CLIENT STRATEGY INCLUDES; DESIGNED TO EITHER; backed by the National Association of
Slide 13: Software Integration
SOFTWARE INTEGRATION The Openn platform integrates seamlessly with other systems using a secure, real time Application Programming Interface (API) Openn now integrated with all major CRM platforms used by agents, maximizing efficiency for agents in uploading data to the Openn platform Integrations w
Slide 14: Product Updates
PRODUCT UPDATES Mopenn | —_ vw OPENN ACCESS Digital offers Receive offers, review terms and send contracts for digital signing through an intuitive and private interface. V Add an ‘offer’ button ‘to your website ¥ Easily convert multiple buyers into competitive negotiation V Finalise the sale with e
Slide 15: North American Expansion US
NORTH AMERICAN EXPANSION US Openn is expanding into the USA and Canada, starting with a targeted pilot program in Connecticut and Massachusetts 550,000 Finalising go-to-market strategy to property sales p.a4 optimise revenue model and channels to market Clear market need for Openn’s products: 6.4 mi
Slide 16: US Residential Sales Segmentation
US RESIDENTIAL SALES SEGMENTATION MLS BROKERS REGION Geographic Salary Variables • A multiple listing service (MLS) is a • In North America, there are typically database established by cooperating real multiple buyer’s agents acting for buyers estate brokers to exchange listings data in a transactio
Slide 17: US Go to Market Strategy: Market Pull
US GO TO MARKET STRATEGY Transparency • Response to Department of Justice and bipartisan political pressure to end opaque industry practices • Millennials demanding the transparency that exists in other markets MARKET PULL Equality • Human bias in real estate transactions is a major issue. Opaque pr
Slide 18: US Go to Market Strategy: Pricing
US GO TO MARKET STRATEGY Average real estate PRICING agent spends • SAAS model is dominant. Proven pricing US$2K - $5k strategy for large scale adoption per year • Comparative solutions pricing range on PropTech solutions US$30 to US$100 per month per agent • Pathway to monetise data is understood.
Slide 19: US Go to Market Strategy: De-risking Market Access
US GO TO MARKET STRATEGY DE-RISKING MARKET ACCESS STREAM 1 STREAM 2 Alignment Speed of market with MLS penetration Solves industry & Generates broker leads political problems Training revenue Market access incentives opportunity Subscription pricing & Viral effect integrations to reduce friction
Slide 20: US Go to Market Strategy: Scale of the Market
US GO TO MARKET STRATEGY SCALE OF THE MARKET 20
Slide 21: US Pilot Program
US PILOT PROGRAM OPTIMAL CHANNELS TO MARKET US ROLL-OUT TIMETABLE ESTABLISHING PARTNERSHIPS WITH KEY PARTICIPANTS IN THE TRANSACTION CYCLE: Engineering work now complete on BUYERS + TECHNOLOGY • Discussions well progressed the initial US pilot release SELLERS PROVIDERS with a key provider to 7 MLS A
Slide 22: Other Growth Initiatives
OTHER GROWTH INITIATIVES 1 New products 3 Core data services • Openn Access – manage and accept In discussions to provide data and digital offers before deciding on launching technology services to banks, developers either Openn Negotiation or Openn Offers and information vendors Order of magnitude
Slide 23: Thank You
THANK YOU FOR MORE INFORMATION: Peter Gibbons Managing Director T: 1800 667 366 investors@openn.com.au 23 19
Slide 24: Appendices
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Slide 25: Openn in Action
OPENN IN ACTION OPENN BIDDING TIMELINE $3,685,000 7036 7036 $3,635,000 7036 (2021-10-2001:03PM) FINAL BIDDING STAGE STARTS SOLD $3,610,000 1633 (2021-10-2001:03PM) $3,585,000 7036 (2021-10-2001:03PM) 1633 (2021-10-2001:03PM) $3,460,000 7036 (2021-10-2001:02PM) $3,285,000 7036 $3,435,000 1633 (2021-1
Slide 26: Growth Metrics - Agents
GROWTH METRICS - AGENTS CERTIFIED AGENTS 5,000 4500 4000 3,500 3,000 2,500 2,000 1,500 1,000 500 amr | 5 aime x rvs i 23 NUMBER OF CERTIFIED AGENTS CUMULATIVE - QUARTERLY carrie I 299 ove I co9 oF: I 0 arg 46, 1429 1663 1205 a3 rig amg ai Fv20 QUARTER / YEAR 19 a2 Fv20 2108 a3 Fv20 2610 a4 Fv20 2997
Slide 27: Growth Metrics - Users
GROWTH METRICS - USERS USERS REGISTERED 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 19,000 NUMBER OF USERS REGISTERED CUMULATIVE - QUARTERLY : i 3 3 3 o 8 i il 2a Geo eo til Ef &€ € € € § € EEF EERE EE E $6 & 6 & 6 8&8 & & 6 § GS & F&F FE BG FE SB QUARTER / YEAR Mopeny 27
Slide 28: Growth Metrics - Value of Property Sold
GROWTH METRICS – VALUE OF PROPERTY SOLD 28
Slide 29: Reserve Metrics
RESERVE METRICS Source: Properties sold via Openn between October - December 2021 29
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