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The fastest growing
Real-estate Group in Australia
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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
Our progress to date has been very strong
New Business Model Our Technology Fast Growth Proven Model Model Roll Out
disrupting the real-estate via our cloud-based digital Fastest growing real estate In both Western Australia Model rolled out in February
and financial services sectors platform, combined with our business nationally (depressed market) and New 2016 and listed on ASX
by reducing structural layers model and our distribution South Wales (Boom market) 28th December 2016
and rewarding all staff channels makes us successful
- Triple digit growth
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Highlights
44.7%
Group Revenue Breakdown (WA)
Group Annual Results
June 2017
Growth in group revenue for the year
Insurance
Services 2%
June 2016 June 2017
$6.63m $9.59m
• The WA real estate market has
contracted 9% in sales turn over and Mortgage
9% in value of the average home and 10 Services 31%
deemed by most experts as the worst
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real estate market in the country.
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• Selective Recruited Sales Agents 7
Real Estate
(minimum requirement plus $200k 6 58%
commissions previous year in WA) 5
on track - 56 current (target 75 by Settlement
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30 June 18) 9%
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• 460 property managements and highly 2
respected sales team 1
0
• $1.1bn loan book Jun-16 Jun-17
Ausnet Group Revenue
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Listings 700
Annual Comparison 600
Highlights • The Agency continued its stellar
June 2016
307
500
400
300
108%
growth with the three main
The Agency (WA) indicators of listings, settlements
June 2017 200 Growth in Listings
639 for the year
and gross commissions exceeding 100
100% growth. 0
Jun-16 Jun-17
ANNUAL COMPARISON Settlements 400
5 700 350
Millions
217%
June 2016 300
4.5
250
600 113
200
4
150
500
June 2017 Growth in
3.5 100
359 Settlements for
50
3 0 the year
400
Jun-16 Jun-17
2.5
300
2 Gross 5.00
Millions
Commissions 4.00
267%
1.5 200
3.00
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June 2016
2.00
100
$1.28m
0.5 1.00 Growth in
June 2017 0.00 Settlements for
0 0
$4.17m the year
2014/2015 2015/2016 2016/2017
Listings # Settlements $ Settlements
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Value of sales 100
Highlights
80
115%
July - Sept 2016
137%
$40.3m 60
The Agency (WA) July - Sept 2017 40 % increase YoY
September Quarter $86.5m
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Growth in number of sales for the year 0
July - Sept 2016 July - Sept 2017 Listings
61 145 200
104%
• The Agency achieves REIWA Top Office July - Sept 2016
150
ranking in WA for month of July, 100
August and September for volume, 160 100
grabbing 3% market share in WA July - Sept 2017 % increase YoY
140 204 50
• The Agency sold 120
0
100
• 145 properties
80
• worth $86.5 million in the first Gross 2
Millions
3 months 60 Commissions
112%
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• Have achieved 41% of last year’s 40
June 2016
revenue in first quarter 20 $830,160 1
• triple digit growth 0 % increase YoY
July-Sept July-Sept
June 2017 1
2016 2017 $1,762,403
0
Number of sales
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Referral Rates for 2017
Highlights Mortgage Referral Settlement Referral
Target rate of 20% or Target rate of 40% or
The Agency (WA)
72 referrals 143 referrals
0 50 100 150 200 250 300 350 400 450 500
359
Total Number of Sales
• Strong internal referral rates
continuing well above our set target of
20% of all real-estate sales to our
mortgage business and 40% to our 298
Actual Number of Referrals
settlement agency. 440
• Referral Rates – Real Estate industry
average 5% from Sales to Finance
83%
% of Sales Referred
123%
Mortgage Referrals
Settlement Referrals 21%
Conversion of Referrals Notes
72%
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The Agency – East Coast
Highlights As at 30th August Top Level had achieved the
following numbers in only 5 months (unaudited):
National Expansion
Total Sales
$409m
The Agency East Coast
(Top Level Pty Ltd)
• The Agency NSW launched March 2017
75
Agents recruited
Total Commissions
$6.52m
• License Agreement of 3% on revenue
payable to Ausnet Group Total Settlements
27 170
• Option to purchase until January 2018
Agents confirmed not started Property Managements
3,500 8
Who is Ausnet
Financial Services
We are disrupting the real-estate industry by being the first fully
integrated real estate and financial services 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.
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.
An additional benefit is the creation of a highly detailed and
large database of clients.
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Our Goals Our Targets Referral Rates – Real Estate industry average 5% from Sales to Finance
Be the fastest growing National Real-estate brand;
Continue to deliver high year on year growth; 40% of all
20% of all
Sales to
To be in the top 5 national Real–estate brand in 3 years; Sales to
Settlement/
Finance
Conveyancer
Deliver shareholders high returns via profitability and asset growth; Division
Division
Value creation through the growth of multiple assets such as mortgage,
risk and general insurance trail books and rent rolls;
Creation of a detailed national database of clients
TOTAL FEES
Capture a slice of both the large
Finance Real -
and highly fragmented
Australian finance and real
Fees estate Fees
$5.72bn
$7.5bn
estate sectors;
$1.8bn
pa pa pa
To expand and be regarded as the most reliable and trusted fully integrated
real estate and financial services company in the Asia Pacific.
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The Agency
Our Locations
Revenue ‘17: $9.6m Revenue ‘17: $6.52m*
Sales Reps: 56 Acquisitions Revenue ‘17: $15m
Staff: 40 Sales Reps: 75
Staff: 74
* (First 5 months)
* Revenue numbers unaudited
Combined Group Figures for 2017
Revenue $31m*
Sales Reps 131
Staff 114
Total Staff 245
Property Managements Approx. 4,000
* Part year only
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The Agency
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 to allow greater commission (rewards) to the
agents who own the clients, while the company also gets 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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The Agency
Our Real Estate Model is different
The Agency * Additional referral fees include recruitment, mortgages and property managements
Revenue Split Asset Ownership Property Management Additional Revenue Referral Fees*
Agent 75% - 85% 50% Yes
Company 15% - 25% 50% Yes
Traditional
Revenue Split Asset Ownership Property Management Additional Revenue Referral Fees
Agent 40% - 60% Nil Token
Franchisor 30% - 40% 100% Token
Franchisor 6% - 10% Nil Yes but low referral rate
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The Agency
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 don’t sell homes on
there own, people do
When it comes to selling 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
o Corporatised, moving away from franchise model o Only a tech provider
• Removed unnecessary layers • Essentially a Tech Service only
• Greater flexibility o No Distribution channels
o Our Agents are our clients o Require large marketing budgets
o Greater rewards for all participants o Recruit anyone
o Technology provides greater efficiencies o We are recruiting the best 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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Share Capital Structure
Numbers $AUD ($0.02) Director Valuation of Assets
Loan & Risk Book: $4.5m
Existing Shares on Issue 587,793,034 $11.5m
Property Managements: $2.5m
Settlement Agency: $1.0m
The Agency: $5.0m
Option on Top Level: $?.?m
Total $13.0m
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Our Board
Paul Niardone Philip Re Adam Davey John Kolenda
Managing Director Chairman Non Executive Director Non Executive Director
Previously Executive Director and founder Chartered Accountant, Chartered Adam is Director, Private Clients and John is the co-founder and Managing Director
of Professional Public Relations (WA), the Secretary and a Member of the Institute Institutional at Patersons Securities. His of Finsure Group, one of Australia's fastest
largest PR and communications firm in the of Company Directors. In recent years he expertise spans over 25 years and includes growing retail finance brokerages, writing
State until he sold the business to WPP. has been involved as a Director and capital raising (both private and public), over $1 Billion in new mortgages every
Experience in marketing and strategic Company Secretary for a number of mergers and acquisitions, ASX listings, month across 850 brokers. He formed the
planning for clients in both Government public companies involving transactions asset sales and purchases, transaction due Loan Market Group with Ray White and
and the private sector and over 10 years in mining exploration and production diligence and director duties. before that worked as the General Manager
experience with public companies. and the renewable energy industry. of Sales & Distribution of Aussie Home Loans,
where he was responsible for the sales
performance of over 700 mortgage advisors.
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The Agency Executive Team - East Coast
Matt Lahood Steven Chen Maria Carlino Thomas McGlynn Ben Collier Shad Hassen
CEO Director of Projects Director of Property Director of Sales and Property Partner Property Partner
Management Chief Auctioneer
More than 25 years in real estate Over 20 years’ experience in real Has worked in real estate sales In excess of 20 years’ real estate
sales; 2,000+ property sales estate sales delivering over Over 27 years of real estate Experienced and award winning since 1993, specialising in sales experience; specialises in
worth over $2bn. Previously 3,000 properties worth in excess experience in key markets incl. real estate professional across Sydney’s Eastern Suburbs. Sydney’s Inner West. Recognised
Director of Sales for McGrath of A$2.5bn.Ranked 16 in the top Sydney, Brisbane and the Gold sales, auctioneering and Ranked 15 in the top 100 agents as the Number 1 agent in the
Real Estate, responsible for 100 agents of 2016 by REB. Coast. Previous senior roles at management. Involved in over of 2016 by REB and Number 1 Inner West - previously
market entry strategies and Previously Head of Projects for RUN Property, Ray White and 5000 auctions Australia-wide. sales agent for McGrath Real McGrath’s leading Inner West
management of 22 company McGrath Real Estate where he McGrath Real Estate where she Previously General Manager of Estate Agents for 2015 and agent. Consistently placed in the
owned offices and more than was responsible for a team of was responsible for the Sales in QLD for McGrath Estate 2016. In the past 12 months has top 1% of agents in Australia.
250 people. eight Associate Directors and management and growth Agents. Other roles include been responsible for 72 Achieved the highest number of
over 50 agents and support staff strategies of the rental portfolio Queensland Head Auctioneer for property sales worth $365m. sales in Australia for FY05, 07, 08
across Sydney, Brisbane and and team across all company McGrath Estate Agents and and 09.
Gold Coast.. owned offices.. performance coach.
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Contact Us
Get in Touch today
Head Office Ausnet MD
68 Milligan Street Paul Niardone
Perth WA 6000 M: 0412 470 241
P: 08 9204 7955 P: 08 9204 7955
F: 08 9204 7956 E: paul@ausnetrealestate.com.au
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