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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
✓ 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 real estate business nationally
✓ A good idea is just a good idea - implementation of the idea is king.
✓ Model rolled out in Feb 2016 and listed on the 28th Dec 2016 at $0.02 and
has traded at a premium of 40% to 50% on average.
✓ $1.1bn mortgage book – vend only $4m/ EV $5.8m (.8 times revenue at
listing)
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Who is Ausnet Financial Services
✓ We are disrupting the real-estate industry by being the first fully integrated
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
requirements.
✓ We capture clients at the start of a property and/or financing event and assist
them with all the ancillary services - resulting in cross selling opportunities that
increase revenue and strengthen the client relationship.
Purchase a Finance the Risk Settlement/ General Property Wealth
house purchase Protection Conveyance Insurance Management Management
✓ Each of these services not only add revenue but also create value in growth of
assets such as rent rolls, mortgage book, risk book and a general insurance
book.
✓ By providing the complete suite of services that the client requires we build 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 in our various business units
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The Challenge Our 2 Large Markets Face
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 Selling
The Question: How to get to the customer, offer them more and
keep them?
The Answer: Engage, empower and reward the largest referral
sources for Finance in Australia –
• Real Estate Agents;
• The 200,000 Accountants, Tax Agents and Financial
Planners
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The Solution
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. The engagement of accountants,
tax advisors and financial
planners via our Value Partner
Program (Stage 2)
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
the trusted advisor.
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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 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
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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 greater commission
to the agents who own the clients, with the company getting its required
return.
✓ We provide for greater rewards - higher commissions, alternative income
streams and the ability to create assets. All the benefits they would get if
they ran their own business without the risk, administration and liabilities.
✓ The company gets additional revenue and asset creation.
✓ We have reorganised the revenue split and added additional revenue
streams.
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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% - 10% nil Yes but low referral rate
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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 handle the compliance, accounts and administration - non income
producing activities
✓ We assist in marketing and database management - each agent adds 2000
– 2500 contacts
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 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 • No Distribution channels
• Our Agents are our clients • Require large marketing
budgets
• Greater rewards for all
participants • Recruit anyone
• Technology provides greater • We are recruiting the best
efficiencies Agents to deliver the results
with set minimum sales track
records and referral KPIs
Not reliant on just the real estate market
Multiple revenue verticals and assets
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East Coast Expansion – Top Level Option
• 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 eastern suburbs – 23 sales agents,
3700 property managements
• 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.
• Since February 2017 Top Level Real Estate, operating under
licence as ‘The Agency’, has sold 33 properties, valued at
approx. $106.7M, and secured 60 agents (with acquisition)
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Top Level Acquisition
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 accounts
Performance Hurdles (weighting)
(50%) - EBIT $7M $10M
(30%) - Gross $70M $80M
Commission
Income
(20%) - Total Sales 85 100
Agents
The acquisitions will deliver 23 sales agents, as of March this will total over 60.
On target to have approximately 80 sales agents by June 30
Number of sales agents is the main sensitivity factor in the model 14
So what have we achieved
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 March up 148% to $7.9m.
✓Yr. on Yr. number of Settlements up 480%
✓Yr. on Yr. increase of dollar value of properties sold up 371%
✓Referral rates to Settlement Agency, Mortgage brokering is over
100% of budget and from Mortgage Broking to financial planning
and general insurance is over 100% as well.
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Group Results
Number of Settlements Settlement Value
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 Agency’,
has sold 33 properties, valued at approx. $106.7m, and secured 57 agents.
Number of Settlements Settlement Value
Listings
Accumulative (2 47 33 $106.7M
months Feb to Mar)
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Acquisition Growth
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 $950,000
• Approximately 100 sales delivering $1m of sales
revenues
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Achievements To Date Combined WA and NSW
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 (approx.
$5.2m in commissions)
✓377 Listings currently on the market totalling $292.7
million
✓Over 100 Sales Agents in WA and NSW
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Acquisition model
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
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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 – Qld and Vic.
• A rent roll of over 4000 properties
• Acquisitions and Mergers
• Value Partner Program launch in WA
• Growth of mortgage book
• National roll out of Value Partner
Program
Corporate snapshot
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 held by the Directors
* As at 12.5.17
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Appendixes
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Our Business strategy
1 We target
property investors 2 To drive clients direct and via referral partners to
use our platform and aggregated 3 ... to cross-sell and better serve
clients... building an upfront and
recurring trail fees business model
& SMEs... businesses/services
SME 30%
s 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
platform aggregates Ausnet is acknowledged as the
brokers for financing partners – agents, manages and
requirements – total many products & most productive broker in
accountants and distributes clients
potential $1.8b providers. It includes Australia – leveraging client trust,
financial planners to to experts in our
fees pa validate client “sticky” tools, providing choice & convenience
marketing and rewards business units
decisions
• Over 10,000 clients • WA focused integrated
• $1.1b Loans under • 30+ own brokers/referral partners, 200+ products &
Current
Financial and wealth
management services from Banks, Insurance and wealth providers management services
• $6.2m revenues pa
• National focus and reach with
future fee for service and/or
• Increase clients, • Increase brokers, real estate agents and referral partners
subscription to increase
loans and assets and provide a finance & wealth management platform
revenues, assets
Future
under management with marketing and data analytics
and profit
Source: RBA, ABS, Team Analysis 2016, The Advisor 2015
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Our Board
All with Public Company Experience
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. In
largest PR and communications firm in the recent years he has been involved as a Director
State until he sold the business to WPP. and Company Secretary for a number of public
Experience in marketing and strategic companies involving transactions in mining
planning for clients in both Government exploration and production and the renewable
and the private sector and over 10 years energy industry.
experience with public companies.
Adam Davey – Non Executive Ross Cotton – Non Executive Director
Director Ross currently has a corporate consulting
Adam is Director, Private Clients and business, Regency Corporate, which specialises
Institutional at Patersons Securities. in re-capitalisations, registered training
His expertise spans over 25 years and organisations, early stage venture capital and
includes capital raising (both private asset acquisition and divestments. As a
and public), mergers and acquisitions, corporate adviser, has been working with both
ASX listings, asset sales and purchases, public and private companies on strategy,
transaction due diligence and director financing, acquisitions and corporate re-
duties. 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.
Executive and Sales Team – The Agency
Matt Lahood – CEO
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 more than 250 people.
Steven Chen – Director of Projects
Over 20 years’ experience in real estate sales delivering over 3,000 properties worth in excess of A$2.5bn.Ranked 16 in the
top 100 agents of 2016 by REB. Previously Head of Projects for McGrath Real Estate where he was responsible for a team of
eight Associate Directors and over 50 agents and support staff across Sydney, Brisbane and Gold Coast..
Maria Carlino – Director of Property Management
Over 27 years of real estate experience in key markets incl. Sydney, Brisbane and the Gold Coast. Previous senior roles at RUN
Property, Ray White and McGrath Real Estate where she was responsible for the management and growth strategies of the
rental portfolio and team across all company owned offices..
Thomas McGlynn – Director of Sales and Chief Auctioneer
Experienced and award winning real estate professional across sales, auctioneering and management. Involved in over 5000
auctions Australia-wide. Previously General Manager of Sales in QLD for McGrath Estate Agents. Other roles include
Queensland Head Auctioneer for McGrath Estate Agents and performance coach.
Ben Collier – Property Partner
Has worked in real estate sales since 1993, specialising in Sydney’s Eastern Suburbs. Ranked 15 in the top 100 agents of 2016
by REB and Number 1 sales agent for McGrath Real Estate Agents for 2015 and 2016. In the past 12 months has been
responsible for 72 property sales worth $365m.
Shad Hassen – Property Partner
In excess of 20 years’ real estate sales experience; specialises in Sydney’s Inner West. Recognised as the Number 1 agent in
the Inner West - previously McGrath’s leading Inner West agent. Consistently placed in the top 1% of agents in Australia.
Achieved the highest number of sales in Australia for FY05, 07, 08 and 09.
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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: paul@ausnetrealestate.com.au
F: 08 9204 7956
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