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FY 2019 RESULTSPRESENTATION
Today’s agenda INTRODUCTION Vic Darvey
FINANCIAL REVIEW James Davies
STRATEGIC REVIEW Vic Darvey
Q&A
FY 2019 RESULTS PRESENTATION 2
• Increase in UK profitability
• Made the decision to exit the Australian and US markets
• Significant opportunities to extend market leadership in both UK and Canada
• Healthy cash balance – post closure of AUS/US our business will be cash generative
• Strong foundations for second phase of growth
FY 2019 RESULTS PRESENTATION 3
FY 19 HIGHLIGHTS
© m
agnusnewsagency.com
FY 2019 RESULTS PRESENTATION 4
FINANCIAL REVIEWJames Davies
STRONG UK PERFORMANCEPROFITABLE IN A SHRINKINGMARKET
• Ancillary revenue represents 44%
of total, up 80bps
• Gross profit margin up 510bps;
up 70bps like-for-like
• Continued investing for growth
• Like-for-like adj. EBITDA increase
of £2.3m
• Improving marketing leverage
expected in FY 2020
+6%+9% +21% +65%
FY 19FY 18
69,8
92
£1,2
43
£90
.1m
64,3
76
£1,16
8
£74
.4m
£10
.2m
£6.2
m
FY 2019 RESULTS PRESENTATION 5
Instructions ARPI Revenue Adjusted EBITDA
UK PROGRESSINSTRUCTIONS AND ARPI
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Apr-14
Jun-14
Aug-14
Oct-1
4
Dec-14
Feb-15
Apr-15
Jun-15
Aug-15
Oct-1
5
Dec-15
Feb-16
Apr-16
Jun-16
Aug-16
Oct-1
6
Dec-16
Feb-17
Apr-17
Jun-17
Aug-17
Oct-1
7
Dec-17
Feb-18
Apr-18
Jun-18
Aug-18
Oct-1
8
Dec-18
Feb-19
Apr-19
FY 2019 RESULTS PRESENTATION 6
£No.
ARPIInstructions won
UK SCALE OPERATING LEVERAGE OVER TIME
UK CPI including portal costsUK Overheads as % of revenue
FY 2019 RESULTS PRESENTATION 7
0
20
40
60
80
100
120
140
%
FY 15 FY 16 FY 17 FY 18 FY 19
£
200
400
600
800
1,000
1,200
1,400
FY 14 FY 15 FY 16 FY 17 FY 18 FY 19
Marketing as % of revenue
FY 1828.8%
FY 1733.5%
FY 1929.6%
MARKET-LEADINGCANADIAN BUSINESSDRIVING SHARE OUTSIDE QUEBEC
• Completed acquisition 6 July 2018
Revenue
• Up 8% 9 mths yoy
• ARPI up 16% YoY
• Tough market conditions – new listings
down YoY across all Provinces
Gross profit margin 53%
Marketing costs
• Up 80% H2 on proforma prior year in
line with strategy
£(2.1)m
29,112
31,020
£776
£671
£23.7m
£22.0m
£1.1m
FY 2019 RESULTS PRESENTATION 8
Instructions ARPI Revenue Adjusted EBITDA
9 Mths FY 199 Mths FY 18
(6)% 16% 8% (190)%
Remainder of CanadaQuebec
FY 2019 RESULTS PRESENTATION 9
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
August
September
Octo
ber
Novem
ber
Decem
ber
January
February
March
April
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
August
September
Octo
ber
Novem
ber
Decem
ber
January
February
March
April 400
900
1,400
1,900
2,400
August
September
Octo
ber
Novem
ber
Decem
ber
January
February
March
April
-
200
400
600
800
1,000
1,200
1,400
1,600
August
September
Octo
ber
Novem
ber
Decem
ber
January
February
March
April
CANADAGROWTH AND CONSISTENCY OF OPERATION
List
ing
sA
RP
I
FY19FY18
AUSTRALIA ORDERLY EXIT FROM MARKET
• Size of prize was no longer deemed
attractive enough to justify further
investment
• Investment to date £41m, plus
closure costs between £6-8m
• Closure process proceeding –
residual property sales ahead of plan
• Standing by key obligations and
helping customers successfully
sell their properties
(20)% (5)% (4)% (43)%
£(17.9)m
3,64
8
4,54
4
£3,026
£3,170
£11.4
m
£11.9
m
£(12.5)m
FY 2019 RESULTS PRESENTATION 10
Instructions ARPI Revenue Adjusted EBITDA
FY 19FY 18
USSTRATEGIC REVIEW RESULTS IN WITHDRAWAL
• Expanded too quickly
• A number of alternative business
models considered under a strategic
review
• Investment to date £53m, plus
initial cut of closure costs expected
to be between £4-6m
• Closing process expected to be
simpler than Australia
313% 39% 606% (103)%
£(33.1)m
2,98
7
724
£3,956
£2,851
£11.3m
£1.6
£(16.3)m
FY 2019 RESULTS PRESENTATION 11
Instructions ARPI Revenue Adjusted EBITDA
FY 19FY 18
GROUP INCOME STATEMENT
Significant revenue growth
• Revenue up 55%
• Includes £23.7m from Canada
Gross profit
• Up £30.3m with margin
up 200bps
• Includes £12.6m from Canada
Adjusted EBITDA
• Loss of £43.1m for the year,
includes £10.2m of positive
adjusted UK EBITDA
FY 19£m
FY 18£m
Revenue 136.5 87.8
Gross margin % 58.5% 56.5%
Marketing costs (70.7) (42.1)
Operating loss (52.3) (27.8)
Adjusted EBITDA (43.1) (22.6)
FY 2019 RESULTS PRESENTATION 12
CONSOLIDATED CASH FLOW BRIDGE
FY 2019 RESULTS PRESENTATION 13
0
20
40
60
80
100
120
140
160
£m
Cas
h at
30 A
pril
2018
M&
A
UK
EB
ITD
A
befo
re m
arke
ting
UK
mar
ketin
g
expe
nditu
reA
ustr
alia
& U
S EB
ITD
A
Can
ada
EBIT
DA
Wor
king
cap
ital,
cape
x, fi
nanc
e an
d ta
xC
ash
at 3
0 Apr
il 2019
152.8
(38.5)
36.9
(26.7)
(51.0) (2.1)(8.6)
62.8
STRATEGIC REVIEWVic Darvey
FY 2019 RESULTS PRESENTATION 14
To be the only place customers go to buy, sell and let theirhomes.
…we will achieve this byusing data and technology to enhance the service standards of the industry.
A BRANDON A MISSION
FY 2019 RESULTS PRESENTATION 15
A STRONG DIFFERENTIATED CORE BUSINESS MODEL
BRANDLEADERSHIP
UNRIVALLED VALUE PROPOSITION
INNOVATIVEBUSINESSMODEL
• Clear brand leadership in UK with96% awareness
• Leading hybrid brand in Quebec
• Sell your home for a fair, fixed fee
• Complete transparency 24/7
• Most reviewed estate agent ever
• Differentiated, technology-led proposition driving businessmodel advantages
• Significant opportunity to scale
FY 2019 RESULTS PRESENTATION 16
Instruct more
Unrivalled coverage
Withdraw less
Sell more
Sell fastest
Top in 7/13 regions
Convert more
Best price for vendors
Top market share in all main price bands
A POWERFUL DISRUPTIVE BUSINESS MODEL VALIDATED IN THE UK
The largestand best
performing estate agent
in the UK
Source: Twenty CI data – May 2019
FY 2019 RESULTS PRESENTATION 17
AN ESTABLISHED BUSINESSWITH SIGNIFICANT OPPORTUNITIESOUTSIDE OF QUEBEC
Quebec
• Leading hybrid in Quebec with 20% listing market share
Remainder of Canada
• In January 2019 Ontario, Manitoba and Albertamarkets successfully transitioned to the Purplebricksbrand
• Purplebricks has quickly cemented a place of prominence in the market
• In just 5 months the PB brand has reached 24%unaided awareness (Ontario, Alberta, Manitoba) while the ComFree brand was at 6% unaided after 7 years
• Total opportunity is 4x Quebec in terms of annual listings and we remain optimistic about the opportunity
FY 2019 RESULTS PRESENTATION 18
EXCITING MEDIUM TERMOPPORTUNITIES
OPPORTUNITY TO DRIVE LEVERAGE THROUGHLEADERSHIP AND SCALE
• Clear leadership and scale will drive margins
• Attractive unit economics
SIGNIFICANTOPPORTUNITY FORFURTHER INNOVATION
• Higher attachment rate of products in basket
• Higher engagement through My PB app
• Create longer lifetime value through PB Plus
TECHNOLOGYTRANSFORMING THE PROPERTY AGENTLANDSCAPE
• Consumer expectations continue to evolve
• Personalisation through machine learning
STABILISATION AND RECOVERY IN END MARKETS
• UK housing market resilience with returnto growth
• Continued willingness to use hybrid agents-5%
0%
5%
2019 2020 2021 2022 2023
UK HOUSING MARKET
FY 2019 RESULTS PRESENTATION 19
SIGNIFICANT POTENTIAL AT SCALE IN OUR KEY MARKETS
NO. OF PROPERTY LISTINGS 1.5M 0.7M
POTENTIAL PURPLEBRICKS SHARE 10% 12%*
NO. OF TRANSACTIONS PER ANNUM 150,000 85,000
POTENTIAL ARPI £1,750-£2,000 £1,250-£1,400
POTENTIAL REVENUE £255M-£300M £105M-£120M
POTENTIAL EBITDA MARGIN 25-30% 20-25%
POTENTIAL EBITDA £65M-£90M £20M-£30M
FY 2019 RESULTS PRESENTATION 20
* 20%Quebec, 10% elsewhere
OUR PRIORITIES FOR FY 20A LASER FOCUS ON OPERATIONAL EXCELLENCE
UNLOCK THE NEXT WAVE OF GROWTH AND EXTEND MARKET LEADERSHIP
BUILD ON THE POSITIVE MOMENTUM OF THIS MATURE BUSINESS
• Re-accelerate the growth of core by deliveringrapid innovation of the customer journey
• Increase LPE productivity by delivering greaterautomation and efficiency
• Start building the foundations of a real-time,mobile-enabled estate agent of the future
• Continue to automate the experience through technology and process improvements
• Maintain 20% market share in Quebec
• Increase brand awareness and market penetrationoutside of Quebec
FY 2019 RESULTS PRESENTATION 21
WE ARE CONFIDENT OF LONG-TERM SUCCESSINITIAL THREE AREAS OF FOCUS
TO BE THE ONLY PLACE CUSTOMERS GO TO BUY, SELL AND LET THEIR HOMES
A brand famous for category-leading service at low fees
REAL-TIMEMOBILE-ENABLED
ESTATE AGENT OF THE FUTURE
BEST-IN-CLASS AGENTS SPENDING MORE TIME WITH
PEOPLE NOTPAPERWORK
DIGITALISING THECHAIN TO ACCELERATE
UNDERLYINGOPPORTUNITIES
By using data and technology to enhance the service standards of the industry
321
FY 2019 RESULTS PRESENTATION 22
REAL-TIME MOBILE-ENABLEDESTATE AGENT OF THE FUTURE
Market leading app delivering best-in-class experience in the
palm of your hand
Higher engagement increasing basket attachment rates
Dynamic customer experiencebased on real-time analytics,
AI and smart CRM
1
Real-time
FY 2019 RESULTS PRESENTATION 23
BEST-IN-CLASS AGENTS SPENDINGMORE TIME WITH PEOPLE NOT PAPERWORK
Greater automation and efficiency will put one working
day back in agent’s week by end of 2020
Real-time market data and technology supporting a
superior conversation in the living room
Real-time analytics throughout the journey to ensure end-to-end
service excellence and intervention
FY 2019 RESULTS PRESENTATION 24
2
DIGITALISING THE CHAIN TO ACCELERATE UNDERLYING OPPORTUNITIES
Digitalisation of the chain to provide transparency and
increase speed of completion
Chain data facilitates model flexibilty and payment on completion opportunities
Integrated ancillary products will allow quick quotes, deep-links
to utility providers and one-click services
FY 2019 RESULTS PRESENTATION 25
3
• Clear plan in place to extend market leadership in UK and Canada
• Strong foundations for second phase of growth
• Healthy cash balance – post closure of AUS/US our business will be cash generative
• More optimal allocation of capital
• Laser sharp focus on operational excellence
• Re-acceleration of our core business
FY 2019 RESULTS PRESENTATION 26
FY 20 FOCUS
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agnusnewsagency.com
FY 2019 RESULTS PRESENTATION 27
Q&A
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