Investor and Broker presentation
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Investor & Broker Presentation – March 2017
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 background
financial and other information to enable recipients to review the business activities of the Company. It is not intended as an offer,
invitation, solicitation or recommendation with respect to the purchase or sale of any securities.
This presentation should not be relied upon as a representation of any matter that a potential investor should consider in
evaluating the Company. The Company and its affiliates or any of its directors, agents, officers or employees do not make any
representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness of any information,
statements, representations or forecasts contained in this presentation, and they do not accept any liability for any statement
made in, or omitted from, this presentation.
Prospective investors should make their own independent evaluation of an investment in the Company.
Nothing in this presentation should be construed as a financial product advice, whether personal or general, for the purposes of
Section 766B of the Corporations Act. This presentation consists purely of factual information and does not involve or imply a
recommendation or a statement of opinion in respect of whether to buy, sell or hold a financial product. The Company has not
considered any of your objectives, financial situation or needs.
This presentation and contents has been made available in confidence and may not be
reproduced or disclosed to third parties or made public in any way without the express written
permission of the Company.
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Setting the Scene
A business disrupting the real-estate and financial services sectors, via our
cloud-based digital platform and processes.
We are not a tech business.
We have developed technology to enable and efficiently deliver our
disruptive model.
Our technology combined with our model and our distribution channels is
what makes us successful.
A good idea is just a good idea - recruitment and the implementation of the
idea is king.
We started to roll out the model in Feb 2016 and listed on the 28th Dec
2016
$1.1bn mortgage book – vend only $4m/ EV $5.8m (.8 times revenue at
listing)
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
3
So what have we Achieved
On target for +30% growth in revenue year-on-year for
FY2017
Revenue of $4.3 million (half year to 31.12.16) – up 57% on
pcp
Value of settlements up 60% in H2 2016 from H1 2016
Gross commissions up 105% in H2 2016 from H1 2016
Number of listings up 30% in H2 2016 from H1 2016
Rapidly expanding East Coast operations with Licence
Agreement and Option to acquire Top Level Real Estate Pty
Ltd
Achieving six times the standard industry referral rates 4
Who is Ausnet Financial Services
Who is Ausnet?
A disruptive, integrated financial services and real estate company using
property transactions and financing events to review a client’s finance and
wealth requirements.
What does Ausnet do?
Helps consumers and small to medium sized enterprises (SMEs) make better
financing, property and wealth management decisions.
Get a better understanding of client needs and objectives and provide
options to deliver those objectives in a hassle free and seamless manner by
our team of experts.
Our culture promotes and rewards our team to deliver a high quality service
that benefits the client. It aligns client goals with that of our team
and company.
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The Challenge for the Market
The Challenge: The Key to success is Distribution and Cross Selling
The Question: How to get closer to the customer?
The Answer: Engage, empower and reward the largest referral
sources for Finance in Australia – the main referral
sources of advice
Real Estate Agents; (The Agency – Direct Channel)
Over 200,000 Accountants, Tax Agents and Financial
Planners in Australia. ( via our Referral Partner
Program – Indirect Channel)
Delivers a low cost – low risk agents/referral partner
network model with national reach.
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The Solution
We combine financial services and real
estate into a single advisory cloud-based
digital platform delivered direct to the
client or via referral partners being:
• Real Estate Agents; (The Agency)
• Accountants/Tax Agents and
Financial Planners (referral
partners)
The platform and processes provide trusted
referral partners tools and services to
engage and better assist their clients
when it comes to finance property and
wealth management.
What differentiates us – information and
product choice is offered at a time that is
relevant to the end client and validated via 7
the trusted advisor.
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.
To capture a slice of the large and highly fragmented Australian finance
and real estate sectors
Finance fees - $1.8bn pa
Real-estate fees - $5.72bn pa
Total Fees - $7.52bn pa
To expand and be regarded as the most reliable and trusted fully
integrated financial services and real estate company in the Asia Pacific
To become an attractive takeover target
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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 provide for greater rewards - higher commissions, alternative income
streams and the ability to create assets
We handle the compliance, accounts and administration non income
producing activities
We assist in marketing and database management
Our view is that in the end brands and technology doesn’t sell homes on there
own people do
When it comes to most people’s largest asset they want to deal with a person
they can trust
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What differentiates us from our competitors
in Real Estate?
Traditional real estate businesses Real estate / fin tech competition
Corporatised, moving away from Only a tech provider
franchise model Essentially a Tech Service only
Removed unnecessary layers
No Distribution channels
Greater flexibility
Require large marketing budgets
Our Agents are our clients
We are recruiting the best Agents
Greater rewards for all participants to deliver the results with set
Technology provides greater minimum sales track records
efficiencies
Not reliant on just the real estate market
Multiple revenue verticals and assets
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East Coast expansion
Rapidly expanding east coast operations through a Licence Agreement
with and an Option to acquire Top Level Real Estate Pty Ltd.
Top Level is a fast growing eastern seaboard real estate business with
17 highly experienced agents, including:
Matt Lahood (CEO) – Commences 3 April 2017
Steven Chen (Director of Projects) – Commenced 15 February 2017
Maria Carlino (Director of Property Management)
Thomas McGlynn (Director of Sales and Chief Auctioneer)
Ben Collier (Property Partner)
Shad Hassen (Property Partner)
Top Level has rights to use The Agency brand and intellectual property
on the East Coast.
Ausnet will retain an Option to acquire Top Level within the next 12
months. 12
Achievements To Date
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.
Since announcing the acquisition in late January 2017, The Agency on East
Coast has:
Sold 18 properties valued at $54.3 million
26 Listings currently on the market totalling $127.5 million
66 agents (including contracted but not started)
Group Results 8 months to Feb 17
Sold 311 properties valued at $260.6 million (approx. $5.2m in
commissions)
377 Listings currently on the market totalling $292.7 million
52 Sales Agents
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Our Business strategy
1 We target property
investors & SMEs... 2 To drive clients direct and via referral partners to use
our platform and aggregated businesses/services 3 ... to cross-sell and better serve
clients... building an upfront and
recurring trail fees business model
SMEs 30%
Clients
Direct
Housing
Referral 5%
Partners
Industry Ausnet
X sell X sell
...of which 50% use Empower the referral Our digital cloud-based Our platform Ausnet is acknowledged as the most
brokers for financing partners – agents, platform aggregates manages and productive broker in Australia –
requirements – total accountants and many products & distributes clients to leveraging client trust, providing
potential $1.8b financial planners to providers. It includes experts in our choice & convenience
fees pa validate client decisions “sticky” tools, marketing business units
and rewards
Current
• Over 10,000 clients
• $1.1b Loans under • 30+ own brokers/referral partners, 200+ products & services from • WA focused integrated Financial
management Banks, Insurance and wealth providers and wealth management services
• $6.2m revenues pa
• National focus and reach with future
• Increase clients, • Increase brokers, real estate agents and referral partners and fee for service and/or subscription
provide a finance & wealth management platform with marketing to increase revenues, assets
Future
loans and assets
under management and data analytics and profit
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Source: RBA, ABS, Team Analysis 2016, The Advisor 2015
Short Term Objectives – 30 June 2018
As announced in transaction target of
$7m EBITDA
Growth of sales agents to 150 plus
Expansion of The Agency on East Coast
A rent roll of over 4000 properties
Acquisitions and Mergers
Value Partner Program launch in WA
Strategic partnerships
Growth of mortgage book
National roll out of Value Partner
Program
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Our Board – All with Public Company Experience
Paul Niardone – Managing Director
Previously Executive Director and founder of Professional Public Relations (WA), the largest PR and communications firm in
the State until he sold the business to WPP. Experience in marketing and strategic planning for clients in both Government
and the private sector and over 10 years experience with public companies.
Philip Re – Chairman
Chartered Accountant, Chartered Secretary and a Member of the Institute of Company Directors. In recent years he has been
involved as a Director and Company Secretary for a number of public companies involving transactions in mining exploration
and production and the renewable energy industry.
Adam Davey – Non Executive Director
Adam is Director, Private Clients and Institutional at Patersons Securities. His expertise spans over 25 years and includes
capital raising (both private and public), mergers and acquisitions, ASX listings, asset sales and purchases, transaction due
diligence and director duties.
Ross Cotton – Non Executive Director
Ross currently has a corporate consulting business, Regency Corporate, which specialises in re-capitalisations, registered
training organisations, early stage venture capital and asset acquisition and divestments. As a corporate adviser, has been
working with both public and private companies on strategy, financing, acquisitions and corporate re-structuring across the
technology, industrial and resource sectors for over five years.
John Kolenda – Non Executive Director
John is the co-founder and Managing Director of Finsure Group, one of Australia's fastest growing retail finance brokerages,
writing over $1 Billion in new mortgages every month across 850 brokers. He formed the Loan Market Group with Ray White
and before that worked as the General Manager of Sales & Distribution of Aussie Home Loans, where he was responsible for
the sales performance of over 700 mortgage advisors. 16
Corporate snapshot
ASX code: AU1
Market capitalisation: $15 million* (fully diluted
$22.4m)
Top shareholders
Finsure Holdings 7.33%
SEMC 2 3.63%
Coast Equity 2.73%
Ruth Paneth + Jacqueline Bierenkrant 2.33%
Taycol Nominees 2.14%
69% of stock held by top 20
* As at 16.3.17
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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: pniardone@gmail.com
F: 08 9204 7956
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