Pexa Group Limited · ASX:PXA
Pexa — H1 FY2025 Earnings Presentation
58 slides from Pexa's earnings presentation, Feb 28, 2025
Slide 1: HY 25 Results
HY 25 Results 28 February 2025
Slide 2: Important notices and disclaimer
Important notices and disclaimer This presentation and accompanying information (Presentation) has Forward statements You should note that Market Data is inherently predictive, is subject to been prepared for the purpose of providing general background No representation or warranty, expressed or imp
Slide 3: Agenda
Agenda 01 02 Overview Group results 03 04 Business units Balance sheet 05 06 Conclusion Appendices 2 2
Slide 4: Acknowledgement of Aboriginal and Torres Strait Islander people
The PEXA Group acknowledges Aboriginal and Torres Strait Islander people as the traditional custodians of the lands on which we work, live and dream, we pay our respects to elders past and present. We recognise that we have a role to play in creating space and place for Aboriginal and Torres Strait
Slide 5: 1H25 highlights
1H25 highlights Improved strategic and operating position, focused on execution 1 Australia’s #1 property exchange 2 Leveraging valuable Australian IP offshore International • Continuing solid operating performance • Platform on schedule, progressing UK Exchange from critical national infrastructure
Slide 6: Group financial snapshot
Group financial snapshot Solid operating outcome, result impacted by non-cash adjustments Statutory revenue Operating EBITDA1 NPATA1,4 Statutory NPAT +25% +24% (188%) (28.1m) $202.5m +12% $73.2m +30% ($13.2m) (211%) ($32.7m) (25.0m) Net Debt / OEBITDA1,3 Operating margin1,2 Free cashflow1 EPS-A1 (0.
Slide 7: Agenda
Agenda 01 02 Overview Group results 03 04 Business units Balance sheet 05 06 Conclusion Appendices 6 6
Slide 8: Group financial results
Group financial results Strong operating result, NPAT impacted by non-operating items Group financial performance Commentary1 A$m 1H25 1H24 1H24PF Var1 (%) Business Revenue 203.7 163.3 183.5 11.0 Business revenue • Revenue up 11% with all business units experiencing growth Cost of sales (34.4) (19.4
Slide 9: Group non-operating items
Group non-operating items Non-cash charges for impairment and tax Group financial performance Commentary A$m 1H25 1H24 1H24PF Var1 (%) Operating EBITDA 73.2 58.8 56.3 30.0 Specified items Specified Items • $7.4m higher than in 1H24 largely due to an impairment charge in relation to Integration costs
Slide 10: Group income tax expense
Group income tax expense Legacy issues now washed through Tax charge 1H24, 2H24 and 1H25 Tax drivers 31.4 Australia • Our Australian business activities are generating taxable profits, and we are recognising the relevant tax expense in our profit and loss statement1 11.9 • These expenses do not invo
Slide 11: Agenda
Agenda 01 02 Overview Group results 03 04 Business units Balance sheet 05 06 Conclusion Appendices 10 10
Slide 12: Exchange
Exchange Solid performance from leading critical infrastructure asset Australia’s #1 property exchange with 90% FY25 objective 1H25 progress market share Increase coverage and • Tasmania live on refi, progressed to Business expand market share transfers in Feb 25 $162.6m +8.7% revenue • Jurisdiction
Slide 13: Exchange
Exchange Attractive operating leverage and cash generation Exchange financial performance Commentary A$m 1H25 1H24 Var (%) Business Revenue $13.0m (9%) higher, including Business revenue 162.6 149.6 8.7 • Transaction volumes arising from market & PEXA share growth: $5.4m Cost of sales (18.7) (17.8)
Slide 14: International
International Progressing platform development and lender engagement FY25 objective 1H25 progress Unique, multi-jurisdictional platform Platform • Remo activity to deliver transfer of equity • Remo, S&P, integrations on track for Q3 delivery • S&P delivery remains on track with one- Business $32.1m
Slide 15: International
International Establishing UK’s only integrated property digital transaction platform 2021 2022 2023 2024 2025+ PEXA Go Optima Legal / Smoove enhancements Build • PEXA Go platform Remo • Remortgage functionality • Sale & Purchase functionality S&P 7 lenders successfully tested with BOE 4 lenders suc
Slide 16: International
International All tier 1 lenders engaged – commencing progression through pipeline Tier 1 NatWest Lender 2 Lender 3 Lender 4 Lender 5 Lender 6 Tier 1 market share c.72%1 Jul 24 Dec 24 Jul 24 Dec 24 Jul 24 Dec 24 Jul 24 Dec 24 Jul 24 Dec 24 Jul 24 Dec 24 Key Stages Introduction Introduction represent
Slide 17: International
International Optima and Smoove improving, cash outflows decreasing International financial performance 1 Commentary 1 A$m 1H25 1H24 1H24PF Var1 (%) Business Revenue $5.4m (20%) increase Business Revenue 32.1 6.5 26.7 20.2 • Optima Legal revenue up $1.6m arising from higher transactions completed Co
Slide 18: Digital Solutions
Digital Solutions Broadening and deepening our property market reach FY25 objective 1H25 progress Property insights, tools and support Record business Distribution effectiveness $9.0m +25.0% revenue • Increase .id • Record 1st half revenues for .id, Value subscriptions Australia, Land Insight and Se
Slide 19: Digital Solutions
Digital Solutions Business continues to scale, achieved operating EBITDA break-even Digital Solutions financial performance Commentary A$m 1H25 1H24 Var (%) Business Revenue $1.8m (25%) higher than PCP Business Revenue 9.0 7.2 25.0 • Revenue in gross terms higher across Subscriptions, Transactions a
Slide 20: Agenda
Agenda 01 02 Overview Group results 03 04 Business units Balance sheet 05 06 Conclusion Appendices 19 19 19
Slide 21: Group Cashflow
Group Cashflow Material increase in free cashflow conversion Cash balance bridge: June 2024 to December 2024 (A$m) 1 Adjusted EBITDA to free cashflow conversion: 1H24 vs 1H251 (10.5) $55m of debt repaid in Free cashflow: 1H25 (A$m) (28.4) 1H25 Free cashflow 69.1 69.1 conversion = 40.4% (1.3) (10.5)
Slide 22: Group balance sheet
Group balance sheet Continuing to de-leverage as earnings improve, natural hedge in place Net Debt / Op EBITDA 1 Average gross debt, PEXA plus third-party moneys: 1H24, 2H24,1H25 (A$m) 2.9 Average gross loans and borrowings 1 2.4 350 1.9 340 334 Average 1H24 2H24 1H25 1H24 2H24 1H25 interest rate (%
Slide 23: Capital management framework
Capital management framework Strengthening the balance sheet, creating long-term value Objective Generate sustainable returns for shareholders Principles Maintain organic Evaluate material Ensure a strong, Safeguard Recycle surpluses Run the business Deliver robust and investment new opportunities f
Slide 24: On-market share buyback
On-market share buyback Up to $50m return to shareholders Net Debt / Op EBITDA ratio: published vs impact of buyback 1 Buy back program 2.9 2.4 2.3 1.9 • PEXA has announced an on-market share buy-back (“buy-back”) of up to the maximum aggregate amount of $50m, funded from cash and existing debt faci
Slide 25: Agenda
Agenda 01 02 Overview Group results 03 04 Business units Balance sheet 05 06 Conclusion Appendices 24 24 24
Slide 26: Guidance
Guidance Operational guidance reaffirmed Metric 1H25 outcome FY25 guidance 2H25 priorities Group Business Revenue + 24.7% + 13-19% Australia Group Operating EBITDA margin 35.9% ≥ 34% • Progress pricing review and Specified items $22.8m $35-40m ARNECC next steps Depreciation and amortisation $48.7m $
Slide 27: 1H25 highlights
1H25 highlights Improved strategic and operating position, focused on execution 1 Australia’s #1 property exchange 2 Leveraging valuable Australian IP offshore International • Continuing solid operating performance • Platform on schedule, progressing UK Exchange from critical national infrastructure
Slide 28: Agenda
Agenda 01 02 Overview Group results 03 04 Business units Balance sheet 05 06 Conclusion Appendices 27 27 27
Slide 29: Detailed financial information: Group
Detailed financial information Group Financials disclosed in this section is on an as reported basis 28
Slide 30: Economic outlook
Economic outlook Mixed prospects, risks remain GDP growth (%, yoy) Central bank rate (%, average of year) Real dwelling investment growth (%, yoy) 2.4 2.8 2.2 4.0 4.3 1.3 1.8 3.7 3.5 -0.5 1.1 -2.2 Australia1 CY 23A CY 24A CY 25F CY 26F CY 23A CY 24A CY 25F CY 26F CY 23A CY 24A CY 25F CY 26F 5.3 4.9
Slide 31: Reconciliation of operating results to reported financial results
Reconciliation of operating results to reported financial results Reconciliation of results Further detail 1H25 1H24 1H25 1H24 PEXA Exchange 162.6 149.6 Net interest costs (1.4) (0.8) Digital Solutions 9.0 7.2 Remove Optima interest income (1.2) (1.5) International (incl Optima interest income) 32.1
Slide 32: Group balance sheet
Group balance sheet Group financial position Commentary A$m Dec-24 Jun-24 Dec-23 Cash and cash equivalents 60.6 90.5 73.1 Assets Trade debtors 7.7 11.0 8.2 • Cash and cash equivalents lower due to the repayment of $55m debt during the Prepayments 15.6 16.3 18.9 period, offset by positive operating c
Slide 33: Group results: Amortisation charge over time
Group results Amortisation charge over time Group capex to amortisation1 and revenue ratios: 1H20 to 1H25 (%) Components of Group amortisation1 charge: 1H24, 2H24 and 1H25($m) Category 1H25 2H24 1H24 100% 90% Historical acquired 27.8 27.8 28.0 80% amortisation 70% Capex to Amortisation on business 3
Slide 34: Specified Items Reconciliation Dec 24
Specified Items Reconciliation 6 Months ended 31 December 2024 31 December Redundancy M&A Share of loss 31 December 2024 and transaction after tax from 2024 Statutory Integration restructuring Unrealised FX professional investments in Total Specified Excl Specified P&L costs related costs gain / (lo
Slide 35: Specified Items Reconciliation June 2024
Specified Items Reconciliation 6 Months ended 30 June 2024 Redundancy M&A Share of loss 30 June 2024 and transaction after tax from 30 June 2024 Statutory Integration restructuring Unrealised FX professional investments in Total Specified Excl Specified P&L costs related costs gain / (loss) fees ass
Slide 36: Specified Items Reconciliation Dec 23
Specified Items Reconciliation 6 Months ended 31 December 2023 31 December Redundancy M&A Share of loss 31 December 2023 and transaction after tax from 2023 Statutory Integration restructuring Unrealised FX professional investments in Total Specified Excl Specified P&L costs related costs gain / (lo
Slide 37: Detailed financial information: Exchange
Detailed financial information Exchange Financials disclosed in this section is on an as reported basis 36
Slide 38: Exchange: Modest volume growth, favourable mix
Exchange Modest volume growth, favourable mix Monthly market transactions: 1H24, 2H24 vs 1H25 (#’000) Monthly market refi mix: 1H24, 2H24 vs 1H25 (% of transactions) 450 30% 400 25% 350 20% 15% 300 1H25 = 2.26m transactions 1H25 = 20% refi mix 10% 250 2H24 = 2.07m transactions 2H24 = 19% refi mix 5%
Slide 39: Exchange: Meeting customer needs
Exchange Meeting customer needs PEXA penetration of national market (% of total transactions) PEXA transactions (#’000 per half) 1,966 1,846 2,038 88 89 90 260 272 257 Other 485 439 Refinance 382 Transfer 1,221 1,207 1,327 1H24 2H24 1H25 1H24 2H24 1H25 Average price (A$ per transaction) Exchange rev
Slide 40: Exchange: Expense bridge and capex program
Exchange Expense bridge and capex program Exchange operating expense bridge: 1H24 to 1H25 (A$m) Exchange capex by category: 1H24, 2H24 and 1H25 (A$m) 19.1 18.7 1.1 2.5 52.4 2.4 0.9 0.3 Other 48.9 1.8 3.9 2.6 16.4 1.3 Regulatory Integration 4.1 Enhancement 6.6 6.8 2.8 5.5 4.3 6.6 4.1 4.0 2.9 1H24 2H2
Slide 41: Exchange: Volume and market data summary
Exchange Volume and market data summary Exchange volume and market data: 1H24, 2H24 and 1H25 (A$m) 1H24 2H24 1H25 Transfer 114.2 112.7 128.2 Refinance 25.6 20.3 24.1 Other 8.7 8.2 9.2 Non-ELN fee revenue 1.1 1.2 1.1 Exchange revenue ($m) 149.6 142.4 162.6 Transfer 1,352 1,334 1,450 Refinance 498 391
Slide 42: Exchange: Transfer volumes recovering, mixed across states
Exchange Transfer volumes recovering, mixed performance across states Index of PEXA transfer volumes: NSW and ACT Index of PEXA transfer volumes: Victoria Index of PEXA transfer volumes: Queensland 110 110 130 100 100 120 90 90 110 80 100 80 90 70 70 0 0 0 2Q 23 3Q 23 4Q 23 3Q 24 2Q 23 3Q 23 4Q 23 3
Slide 43: Exchange: Market share over time by state
Exchange Market share over time by state Exchange market share by state: 1H20 to 1H25 (%) 100 90 80 70 Vic WA 60 NSW SA 50 Qld ACT 40 30 20 10 0 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 2H24 1H25 42
Slide 44: Detailed financial information: International
Detailed financial information International Financials disclosed in this section is on an as reported basis 43
Slide 45: International: Challenging re-mortgage market
International Challenging re-mortgage market, modest sale and purchase recovery Market remortgage transactions (average #’000 pm) Market S&P transactions (average #’000 pm)1 40 180 35 Recession 160 Recession 30 140 120 25 100 20 80 15 60 10 Period average 40 Period average 5 20 0 0 1Q23 1Q24 1Q25 1Q
Slide 46: International: Market share improving
International Market share improving in soft operating environment Optima Legal remortgage volumes by quarter (average #’000 pm) 1 Monthly Optima Legal rolling 3-month average market share (%) 1,2 10 Instructions 25 8 Completions 20 6 15 10 4 Period average 5 2 0 Jul-23 May-23 Sep-23 May-24 Jul-24 M
Slide 47: International: Front end of pipeline growing
International Front end of the pipeline growing, onboarding remains the focus Pipeline size PEXA & Optima Engagement Status PEXA Go & Pay Onboarding Status Contracting Status (# of institutions) 4 T1 and 2 Optima Legal customers T2 2 large banks 1 1 Working with additional and 4 small Addition lende
Slide 48: Smoove: Economics improving
Smoove Economics improving Volumes (#’000) Revenue per transaction (£) Average cost of sales per Gross profit excluding Other transaction (£) (£’000) 15.4 14.7 14.1 163 157 164 Remo 1H24 2H24 1H25 1H24 2H24 1H25 7.9 9.5 338 366 346 125 140 144 3,673 4,360 7.7 3,475 Sale and Purchase x - = 1H24 2H24
Slide 49: International: Expense bridge and investment summary
International Expense bridge and investment summary International operating expense bridge: 1H24 pro forma1 vs 1H25 (A$m) International capex (A$m) 0.7 1.6 14.5 34.2 3.8 1.5 35.5 0.6 0.5 2.1 10.2 11.7 24.0 0.6 10.2 3.1 1.3 0.6 5.4 9.8 9.3 FX PEP benefits 1H24 Scale and development Smoove Exp pre own
Slide 50: Detailed financial information: Digital Solutions
Detailed financial information Digital Solutions Financials disclosed in this section is on an as reported basis 49
Slide 51: Digital Solutions: Building attractive revenue streams
Digital Solutions Building attractive revenue streams Value of new business sales (A$m)1 Digital Solutions revenue composition (A$m) .id subscription C2.7% C4.3% C2.2% 1.7 churn rate 9.0 8.5 0.9 1.3 0.6 1.1 7.2 1.0 1.1 1.6 0.4 0.6 1.7 0.8 72% of Digital 0.6 0.7 Sol. revenue 1.3 0.6 is from 0.5 Subsc
Slide 52: Digital Solutions: Revenue bridge
Digital Solutions Revenue bridge Digital Solutions revenue bridge: 1H24 vs 1H25 (A$m) 9.0 0.6 0.1 0.6 7.2 0.5 1H24 .id Value Australia Land Insight Exchange adjacencies 1H25 Subscriptions 5.3 0.7 0.4 (0.0) 0.1 6.5 Projects 1.3 (0.2) 0.2 0.1 0.2 1.6 Transactions 0.6 - - - 0.3 0.9 51
Slide 53: Digital Solutions: Expense bridge and capex program
Digital Solutions Expense bridge and capex program Digital Solutions operating expense bridge: 1H24 vs 1H25 (A$m) Digital Solutions capex: 1H24, 2H24 and 1H25 (A$m) 3.6 12.1 0.3 0.4 0.4 Acquisition integration and other 0.6 Non - Value Australia product development 4.2 Value Australia 8.2 1.8 1.8 1.
Slide 54: Glossary
Glossary 53
Slide 55: Glossary
Glossary Term Type Definition API Business Application programme interface ARNECC Business Australian Registrars’ National Electronic Conveyancing Council As published Financial – non-IFRS Numbers as provided without adjustment in PEXA’s published financial reports, market briefings or investor upda
Slide 56: Glossary
Glossary Term Term Type Type Definition Definition Free cash conversion Financial – non-IFRS Free cashflow divided by EBITDA adjusted for items not having a cash impact FTE Business Full time equivalent employees FY Business PEXA’s financial year, which covers the period from 1 July to the following
Slide 57: Glossary
Glossary Term Term Type Type Definition Definition Operating EBITDA margin Financial – non-IFRS Operating EBITDA divided by Business Revenue Optima Business Optima Legal Other transaction type Business Being in Australia a property transaction passing through PEXA’s Exchange which is neither a trans
Slide 58: Investor relations / Media
Investor relations Media Hany Messieh Kate Prigg + 61 414 446 876 + 61 497 595 580 hany.messieh@pexa.com.au kate.prigg@pexa.com.au