Agency Group Australia Ltd · ASX:AU1
Agency Group Australia — The Agency Group Australia — Investor Presentation (September 2018)
17 slides from Agency Group Australia's investor presentation, Sep 19, 2018
Slide 1: The Agency Group Australia Ltd
For personal use only September 2018 The Agency Group Australia Ltd ASX.AU1
Slide 2: Disclaimer
Disclaimer For personal use only NOT AN OFFER This presentation is for information purposes only. This presentation does not comprise a prospectus, product disclosure statement or other offering document under Australian law (and will not be lodged with the Australian Securities and Investments Comm
Slide 3: The Agency Disrupting the real-estate industry
The Agency Disrupting the real-estate industry For personal use only Fully integrated real estate and financial services company 293Agents ~$250m Listings Value 194% 265% Growth in group revenue for the year June 2016 June 2017 June 2018 Growth in group GCI for the year June 2016 June 2017 June 2018
Slide 4: Overview
Overview • The Agency Group (ASX.AU1) is one of Australia’s fastest growing real estate agencies – agent recruitment model to deliver For personal use only high growth while generating value for customers • In 18 months since listing on the ASX, The Agency Group has grown to 293 sales agents across
Slide 5: Market Size
Market Size • The real estate services industry is very large and fragmented: For personal use only ‒ Market size of $14.2bn(1), with ~$300bn in gross value of housing sales in the last 12 months(2) ‒ Industry revenue is forecast to grow at an annualised rate of 1.7% p.a. over the next 5 years(1) ‒
Slide 6: Market Opportunity
Market Opportunity • Australian real estate brokerage is dominated by franchised based brand networks For personal use only ‒ Of the $14.2bn market size, over 50% of revenue is captured by franchise companies(1) ‒ Whilst market concentration has increased with smaller franchisees joining larger bran
Slide 7: Market Position
Market Position The Agency and SLP provide overall larger profits to the agent (higher revenue and lower costs) than a traditional franchise or For personal use only independent operations. Independent Traditional Franchise Operations Franchisor Franchisee Agent Head Office Agent Head Office Agent P
Slide 8: Traction
Traction • Over the last 12 months, the number of agents in The Agency Group increased from ~80 to 293 (annual growth of ~230%) • Income from new agents typically materialises 6-12 months after recruitment. The 200+ agents recruited over the last 12 For personal use only months are expected to achie
Slide 9: Growth
Growth Existing locations For personal use only • Continued recruitment of agents ~$250m $2.3bn $3.9bn • Inbound momentum increasing traction of Exchanges Value of • Customer paid advertising driving brand Listings value(1) completed since Properties under awareness Inception(1) Management(2) • Recr
Slide 10: Performance
Performance Number of Agents & Exchanges (#) Total Monthly GCI ($) For personal use only Agents Series1 Exchanges Series2 GCI Series2 Average GCI Series1 300 5,000,000 4,000,000 200 3,000,000 2,000,000 100 1,000,000 - - Mar 18 Feb 18 Aug 17 Sep 17 Nov 17 Dec 17 Oct 17 Apr 18 May 18 Jul 17 Jan 18 Jun
Slide 11: Financials – Profit & Loss
Financials – Profit & Loss Profit & Loss ($m) For personal use only Sep 17 Dec 17 Mar 18 Jun 18 FY18 Sales 2.7 3.9 3.9 4.6 15.2 Property Management 0.8 1.6 2.4 2.4 7.2 Other 1.5 1.6 0.9 3.0 7.0 Total Revenue 5.0 7.0 7.3 10.0 29.3 COGS (2.5) (3.3) (3.4) (5.2) (14.4) Gross Profit 2.4 3.7 3.9 4.8 14.9
Slide 12: Financials – Pro-forma Balance Sheet & Key Assets
Financials – Pro-forma Balance Sheet & Key Assets Assets and Liabilities ($m)(1) Shareholders Equity ($m)(1) For personal use only Assets Equity Cash and cash equivalents 6.8 Contributed Equity 27.0 Trade & Other receivables 10.7 Reserves 0.7 Current tax asset 0.2 Accumulated losses (12.5) Other cur
Slide 13: Capital Raise
Capital Raise (1) Sources & Uses ($) For personal use only Sources Uses Capital raise 8,400,000 Repayment of Existing debt 8,218,930 Debt to Equity swap 5,000,000 Cash for Working Capital 4,929,070 Transaction costs(2) 252,000 Total 13,400,000 Total 13,400,000 Capital Structure Pro-forma Shareholdin
Slide 14: Indicative Timetable
Indicative Timetable 21st September: Shareholder Meeting For personal use only 28th September: Settlement 14
Slide 15: Board of Directors
Board of Directors For personal use only Philip Re Paul Niardone Matt Lahood(1) John Kolenda Adam Davey Chairman Executive Director Executive Director Non Executive Director Non Executive Director Chartered Accountant, Previously Executive Director More than 30 years in real John is the co-founder a
Slide 16: Senior Management
Senior Management For personal use only Paul Niardone Matt Lahood(1) Andrew Jensen(1) Steven Chen(1) Maria Carlino(1) Managing Director CEO – The Agency Chief Financial Officer Director of Projects – The Director of Property Agency Management Andrew Jensen has extensive knowledge in the Over 20 year
Slide 17: For personal use only
For personal use only
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