Agency Group Australia Ltd · ASX:AU1
Agency Group Australia — Ausnet Financial Services — Investor Presentation (May 2017)
26 slides from Agency Group Australia's investor presentation, May 17, 2017
Slide 1: Ausnet Financial Services - The Agency
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Slide 2: Disclaimer
For personal use only Disclaimer This presentation has been prepared by Ausnet Financial Services Pty Ltd ABN 37 093 805 675 (the Company) in connection with a proposed capital raising. This presentation is being provided to a limited number of investors for the sole purpose of providing preliminary
Slide 3: Setting the Scene
For personal use only Setting the Scene ✓ New business model disrupting the real-estate and financial services sectors, via our cloud-based digital platform. ✓ Our technology combined with our model and our distribution channels is what makes us successful - Triple digit growth. ✓ Fastest growing re
Slide 4: Who is Ausnet Financial Services
Who is Ausnet Financial Services ✓ We are disrupting the real-estate industry by being the first fully integrated For personal use only financial services and real estate company. We use property transactions and/or financing events to review and service a client’s complete finance and wealth requir
Slide 5: The Challenge Our Large Markets Face
The Challenge Our 2 Large Markets Face For personal use only We operate in two large and fragmented industry sectors that are linked and have annual fees in excess of $7.5bn - Real Estate and Financial Services markets The Challenge: The Key to success in these 2 markets – Distribution and Cross Sel
Slide 6: The Solution
The Solution For personal use only We combine financial services and real estate into a scalable single advisory cloud- based digital platform delivered direct to the client or via referral partners. Our 2 Channels to market are: 1. Our own direct and disruptive real estate business - The Agency 2.
Slide 7: Our Goals
For personal use only Our Goals • Deliver shareholders high returns via: • increased earnings from multiple revenue lines and • value creation through the growth of multiple assets such as mortgage, risk and general insurance trail books and rent rolls. • Capture a slice of both the large and highly
Slide 8: For personal use only
For personal use only 8
Slide 9: Our Real Estate model is different
For personal use only Our Real Estate model is different ✓ Franchise and licensed operators can have up to 4 layers from National head office to agent level, these layers create legal & financial barriers, control issues and inability to change ✓ We have removed structural layers removed to allow gr
Slide 10: Our Real Estate model is different
For personal use only Our Real Estate model is different The Agency Revenue Split Asset Ownership Additional Revenue Agent 75% - 85% 50% Yes Company 15% – 25% 50% Yes Traditional Revenue Spilt Asset ownership Additional Revenue Agent 40% - 60% nil token Franchisee 30% - 40% 100% token Franchisor 6%
Slide 11: Our Real Estate model is different
For personal use only Our Real Estate model is different ✓ Our Agents are our clients ✓ We recognise them as the CEOs of their business ✓ Our job is to help them grow their business and focus on what they do best and is income producing - Helping the best do better ✓ We handle the compliance, accoun
Slide 12: What differentiates us from our competitors in Real Estate?
What differentiates us from our competitors in Real Estate? For personal use only Traditional real estate Real estate / fin tech competition • Corporatised, moving away • Only a tech provider from franchise model • Essentially a Tech Service only • Removed unnecessary layers • Greater flexibility •
Slide 13: East Coast Expansion – Top Level Option
East Coast Expansion – Top Level Option For personal use only • Rapidly expanding east coast operations through a Licence Agreement with and an Option to acquire Top Level Real Estate Pty Ltd. • Top Level is the fastest growing eastern seaboard real estate business. • 2 large acquisitions in the eas
Slide 14: Top Level Acquisition
Top Level Acquisition For personal use only Tranche 1 Tranche 2 Tranche 3 Ordinary Shares Performance Performance Shares Shares Approx. total 366 300 300 number of Ausnet Shares (m) Timing Upon settlement of Upon finalisation Upon Finalisation acquisition of Top of of 2019 accounts Level 2018 accoun
Slide 15: So what have we achieved
So what have we achieved For personal use only Organic Growth – Western Australia ✓Financial YTD March ‘The Agency’ WA sold a total of 246 properties worth approx. $162.1m, 4th highest sale office for April ✓Yr. on Yr. Agency Sales revenues increase 330% to $3.31m. ✓Yr. on Yr. Group revenues to Marc
Slide 16: Group Results
Group Results Number of Settlements Settlement Value For personal use only Listings Total for year 307 99 $75.9M 2015/16 Q1 2016 100 65 $44.2M Q2 2016 159 75 $53.9M Q3 2017 193 106 $64.0M Total year to 452 246 $162.1M date Since February 2017 Top Level Real Estate, operating under licence as ‘The Ag
Slide 17: Acquisition Growth
Acquisition Growth For personal use only BEAUFORT REALTY ✓Ausnet recently acquired market leading inner city Western Australian real estate agency Beaufort Realty, ✓Beaufort Realty acquisition which settled in early April will have : • 432 properties under management with revenues of approximately $
Slide 18: Achievements To Date Combined WA and NSW
Achievements To Date Combined WA and NSW For personal use only In the last 12 months, we invested and created a disruptive and integrated business that efficiently delivers a large range of relevant services to clients. Group Results 9 months to March 17 ✓Sold 279 properties valued at $269 million (
Slide 19: Acquisition model
Acquisition model For personal use only FY18 Revenue $99M EBIT $13M EBIT Margin % 13% Acquisitions (other than Top Level) $10M - Revenue contribution $7.2M - EBIT contribution $2.3M Total Dilutive Shares 1.4B Indicative Share Price (based on 10xEBIT) $0.09 19
Slide 20: Short Term Objectives June 2018
Short Term Objectives 30 June 2018 For personal use only • As announced in transaction target of $7m EBITDA • Growth of sales agents to 150 plus • Expansion of The Agency on East Coast – Qld and Vic. • A rent roll of over 4000 properties • Acquisitions and Mergers • Value Partner Program launch in W
Slide 21: Corporate snapshot
Corporate snapshot For personal use only ASX code: AU1 Market capitalisation: $15 million* (fully diluted $22.4m) Top shareholders Finsure Holdings 7.33% Coast Equity 5.15% SEMC 2 3.63% Ruth Paneth + Jacqueline Bierenkrant 2.33% Earl BG Pty Ltd 2.14% 39.11% of stock held by top 20 10.90% of stock he
Slide 22: Appendixes
For personal use only Appendixes 22
Slide 23: Our Business strategy
Our Business strategy 1 We target 2 To drive clients direct and via referral partners to 3 ... to cross-sell and better serve For personal use only property investors use our platform and aggregated clients... building an upfront and & SMEs... businesses/services recurring trail fees business model
Slide 24: Our Board
Our Board All with Public Company Experience For personal use only Paul Niardone – Managing Director Philip Re – Chairman Previously Executive Director and founder Chartered Accountant, Chartered Secretary and a of Professional Public Relations (WA), the Member of the Institute of Company Directors.
Slide 25: Executive and Sales Team – The Agency
Executive and Sales Team – The Agency Matt Lahood – CEO For personal use only More than 25 years in real estate sales; 2,000+ property sales worth over $2bn. Previously Director of Sales for McGrath Real Estate, responsible for market entry strategies and management of 22 company owned offices and m
Slide 26: Contact Us
For personal use only Contact Us Head Office Ausnet MD – Paul Niardone 254 Scarborough Beach Road M: 0412 470 241 Doubleview WA 6018 P: 08 9204 7955 P: 08 9204 7955 E: paul@ausnetrealestate.com.au F: 08 9204 7956 26
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