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ASX Release
6th November 2020
INVESTOR WEBINAR PRESENTATION
The Agency Group Australia (ASX:AU1) (“The Agency” or “the Company”) is pleased to announce its
participation in the ShareCafe Webinar - Micro/Small Cap "Hidden Gems" Webinar to be held today (Friday
6TH November 2020) from 12:30pm AEDT / 9:30am AWST.
Managing Director Paul Niardone will provide an overview of the Company’s recent $11 million funding
package to underpin continued growth plans, strategic partnership with Managex (a private company chaired
by Future Fund board member John Poynton), and record-breaking September Quarter 2020 results.
This webinar is able to be viewed live via Zoom over the internet and will provide viewers the opportunity to
hear from, and engage with, a range of ASX-listed leading micro/mid cap companies.
To access further details of the event and to register (at no cost), please paste the following link into your
internet browser: https://us02web.zoom.us/webinar/register/WN_oo4ctIueRPaNVn5ym_j0gw
A recorded copy of the webinar will be made available following the event and a copy of the investor
presentation to be delivered during the webinar is attached.
This ASX release has been approved for release by the board.
ENDS
If you require further information, please contact:
Investors Media
The Agency Australia Ltd Chapter One Advisors
Paul Niardone David Tasker / Colin Jacoby
T: +61 08 9204 7955 T: +61 433 112 936 / +61 439 980 359
September 2018
The Agency Group Australia Ltd
SHARECAFE “HIDDEN GEMS” WEBINAR
INVESTOR PRESENTATION
6TH NOVEMBER 2020
ASX:AU1
DISCLAIMER
NOT AN OFFER
This presentation is for information purposes only. This presentation does not comprise a prospectus, product disclosure statement or other offering document under
Australian law (and will not be lodged with the Australian Securities and Investments Commission) or any other law.
SUMMARY INFORMATION
This presentation does not purport to be all inclusive or to contain all information about the Company or any of the assets, current or future, of the Company. This
presentation contains summary information about the Company and its activities which is current as at the date of this presentation. The information in this
presentation is of a general nature and does not purport to contain all the information which a prospective investor may require in evaluating a possible investment in
the Company.
The Company does not undertake to provide any additional or updated information whether as a result of new information, future events or results or otherwise.
FORWARD LOOKING STATEMENTS
Certain statements contained in this presentation, including information as to the future financial or operating performance of the Company and its projects, are forward
looking statements. Such forward looking statements:
• are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant
technical, business, economic, competitive, political and social uncertainties and contingencies;
• involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results
reflected in such forward looking statements; and
• may include, among other things, statements regarding estimates and assumptions in respect of prices, costs, results and capital expenditure, and are or may be
based on assumptions and estimates related to future technical, economic, market, political, social and other conditions.
The Company disclaims any intent or obligation to publicly update any forward looking statements, whether as a result of new information, future events or results or
otherwise.
The words “believe”, “expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar
expressions identify forward looking statements.
All forward looking statements contained in this Presentation are qualified by the foregoing cautionary statements. Recipients are cautioned that forward looking
statements are not guarantees of future performance and accordingly recipients are cautioned not to put undue reliance on forward looking statements due to the
inherent uncertainty therein. 2
EXECUTIVE SUMMARY
The Agency Group Australia (ASX:AU1) is one of Australia’s FY2020 Highlights
fastest growing integrated real estate services companies.
In just under 4 years since listing on the ASX, the Company
has established a national presence across key metropolitan
markets in Australia, led by an industry-leading management $2.66M $41.86M
team. EBITDA1,2 Revenue
Cashflow positive, EBITDA positive and supported by a (FY19: $4.25M (FY19: $28.3M)
strong net asset balance sheet. EBITDA loss)
Has built a fully serviced real estate firm creating an
organisation designed to scale.
The only Company to offer dual property sales business
$47.9M 3957
model, offering both premium (full-service) and independent GCI New Listings
brand offering underpins its strategy to reach leadership (FY19: $38M) (FY19: 3430)
across Australia in terms of agent market share.
Integrated services, from property sales, property
management and ancillary services provides the Company
with cross-sell opportunities, capturing revenue across the
$2.9B $27M
value chain. Value of Exchanges Group Total Assets
The traditional landscape of the real estate agency offering (FY19: $2.4B) (Rent Roll &
in the current economic environment provides great Mortgage Book)3
opportunities for The Agency Group to bring further
consolidation to the industry.
1. Not including the impact of AASB16, which was applied during FY2020, EBITDA profit for the year came to $711k which compares to an EBITDA loss of $4.25 million for FY2019.
2. EBITDA was calculated by adding back in Depreciation & Amortisation ($6.04 million) Interest & finance costs ($1.77 million) as well as a one-off impairment of goodwill and other intangibles associated with the Top Level transaction ($5.2
million).
3
3. The Agency’s East Coast rent roll valued at in excess of $23 million. Combined with mortgage book brings The Agency’s total assets to in excess of $27 million.
COMPANY OVERVIEW
The Agency Group is comprised of four service categories, including property sales, property management,
ancillary services and high-level support.
The Agency Group’s divisions
Property Sales Property Management Ancillary Services High-Level Support
Superior support provided
Conducts sales of residential Manages residential Provision of ancillary services via:
properties on behalf of properties on behalf of provides cross-sell
property vendors. property owners. opportunities • Agent’s own admin team
Operates a unique agent that assist throughout the
Operates a unique agent • Mortgage financing whole process from listing
recruitment model that incentive model that services: mortgage loan
delivers high growth to the to settlement
encourages agent book with ~$3m in
company while generating performance and in turn annualised trail income (1)
value for customers. • Centralised office and
generating stable, recurring
hubs
revenue for the business. • Conveyancing: settlement
Disrupting the Australian real services
estate brokerage market with The Agency Group’s property • Cloud-based platform.
its two differentiated offerings management division • Financial planning:
under the brands The Agency operates under The Agency provision of risk products Instead, the traditional
and Sell Lease Property brand. and advice to clients models burden agents with
(SLP). significant overhead costs
undertaking new
mortgages and administrative costs
Premium, full service offering which impacts on their profits.
Value, SaaS support offering
Notes: (1) Calculated from September 2020 monthly trail income.
4
ACCELERATING NATIONAL PRESENCE
Since listing on the ASX in late 2016, the Company has established a national presence with 10 hubs across key
metropolitan markets in Australia. Led by an industry-leading management team, The Agency has achieved and continues to
capture Australia’s prominent property sales.
REIWA winner: #1 large office in WA market for listings sold
REIWA winner #1 large office in WA market by value sold
#1 in Lower North Shore and Eastern Suburbs (NSW) market (1)
The Agency Perth
68 Milligan Street
Perth WA 6000
122 NSW
agents The Agency Central Coast The Agency Eastern Suburbs
PO Box 3223 180 Campbell Parade
Wamberal NSW 2260 Bondi Beach NSW 2026
The Agency Hawthorn
Level 1, 585 Burwood Road
Hawthorn VIC 3122 The Agency Neutral Bay The Agency Inner West
140 WA The Agency Albert Park
Level 1, 3 Young Street
Neutral Bay NSW 2089
103 Johnston Street
Annandale NSW 2038
agents 89 Victoria Avenue
The Agency Wollongong
Albert Park VIC 3206
2/63 Burelli Street The Agency Canberra
19 VIC
Wollongong NSW 2500
Notes: (1) Based on number of listings sold in the Lower North Shore and Eastern Suburbs (NSW) area
agents 5
September 2018
FY 2020 & 1Q 2021
RESULTS
FY 2020 HIGHLIGHTS – DEMONSTRATED STRONG GROWTH
Despite uncertain market conditions brought on by COVID-19 impact in the latter months of FY2020, The Agency experienced strong year-on-year growth
across key operating metrics. This highlights that in tough markets, agents are drawn to our enhanced fee offering, reduced risk and the high-level of
support compared to high fees and costs associated with franchises or running a small business.
STRONG Uptick as COVID-19 restrictions eased in key markets. Results flowed
+ EBITDA FY2020 EBITDA profit of ~$2.66 million1,2 SALES through to the Sept Q (1Q 2021) with momentum continuing in West
PIPELINE Coast and parts of East Coast with a strong sales pipeline to Christmas.
GROSS COMMISSION INCOME ($m)
ANNUAL GROUP REVENUE ($m) NUMBER OF NEW LISTINGS (#)
60
Up 26% Y-o-Y Up 15% Y-o-Y
50
Up 48% Y-o-Y 5000
50 40 3957
4000 3430
40
30 3000
30 47.9
1776
20 37.9 2000
20 41.86 28.8
28.3 10 1000 639
10 16.8
9.6 3.8
0 0 0
FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20
NUMBER OF PUM (#) VALUE OF EXCHANGES ($B)
Up 21% Y-o-Y
Up 12% Y-o-Y 3.5
2.9
6,000 3
4,838 2.4
5,000 4,337 2.5
4,000 3,347 2 1.8
3,000 1.5
2,000 1
1,000 0.5 0.2
0 0
FY18 FY19 FY20 FY17 FY18 FY19 FY20
1. Not including the impact of AASB16, which was applied during FY2020, EBITDA profit for the year came to $711k which compares to an EBITDA loss of $4.25 million for FY2019. 2. EBITDA was calculated by adding back
in Depreciation & Amortisation ($6.04 million) Interest & finance costs ($1.77 million) as well as a one-off impairment of goodwill and other intangibles associated with the Top Level transaction ($5.2 million).
SEPTEMBER QUARTER 2020 – RECORD-BREAKING QUARTER
The Agency experienced a record-breaking September Quarter 2020 as markets rebounded in the months post easing of COVID-19 restrictions with
strong buyer activity and reduced sales stock on West Coast and East Coast. Continued growth in revenue and key metrics is expected into CY21 on
back of improving market conditions.
STRONG Strong sales pipeline (1,240 new listings in September Quarter) has
Unaudited EBITDA profit of $723,000 SALES flowed through to the December Quarter with momentum continuing in
+ EBITDA (pre-adoption of AASB16)1 West Coast and parts of East Coast as COVID-19 restrictions eased.
PIPELINE
13.6
1. Excludes Government incentives received in the 1st Quarter 2021
September 2018
RECENT MAJOR EVENTS
LONG-TERM $11M FUNDING PACKAGE
Debt Con Note • Secures a long-term funding package to underpin
The Agency Group Audited restructured Conversion
Actual Pro Forma Pro Forma continued growth plans2
1
Pro Forma Balance Sheet 30-Jun-20
$'000
30-Sep-20
$'000
30-Sep-20
$'000
• Funding package made up of:
Current Assets o $5 million in Convertible Notes to be issued to
Cash and cash equivalents 2,724 3,903 3,903
Trade & other receivables 7,192 7,844 7,844 Peters Investments Pty Ltd – private
9,916 11,747 11,747 investment business headed by prominent
Non-current assets
Fixed Assets 6,685 6,722 6,722
Australian businessman Bob Peters
Intangible assets 30,376 26,550 26,550 o $1 million of Convertible Notes previously
37,061 33,272 33,272
issued to Peters Investments3
TOTAL ASSETS 46,977 45,019 45,019
Current liabilities
o An extended $5 million Macquarie Bank
Payables and provisions 14,040 13,309 13,309 primary secured debt facility (down from $12
Borrowings 13,843 750 750
27,883 14,059 14,059 million and subject to shareholder approval of
Non-current liabilities the Convertible Notes)
Borrowings - 11,000 5,000
Deferred tax/Leases/Provisions 7,483 7,720 7,720 • Provides greater funding certainty across the
7,483 18,720 12,720
business and an improved cash position.
TOTAL LIABILITIES 35,366 32,779 26,779
• Continued support from current primary funder and
NET ASSETS 11,611 12,241 18,241 leading banker to the property industry Macquarie
Equity Bank at a reduced debt position and at an extended
Issued capital 39,396 39,396 45,396
Reserves 929 929 929 repayment period of 24 months.
Accumulated losses - current (28,713) (28,084) (28,084)
TOTAL EQUITY 11,611 12,241 18,241
1. Based on management accounts and for reporting purposes only
Current ratio 0.36
th October 2020
0.84 0.84 10
2. Refer to ASX
Debt Equity ratio
announcement dated 29
1.19 0.96 0.32
3. Refer to ASX announcement dated 15 May 2020
th
STRATEGIC PARTNERSHIP WITH MANAGEX
• Strategic partnership with Managex, a private company
chaired by Future Fund board member John Poynton
with Kim Slatyer as managing director.1
• AU1’s West Coast property management portfolio
(1,165PuM at 30th Sept 20) sold to Managex for ~$3.5
million – doesn’t include sale of East Coast property
management business.
• Funds used to reduce debt position and for working
capital requirements.
• Reciprocal referral agreement whereby all sales leads
from Managex are referred in first instance to The
Agency while all WA property management leads from
The Agency will be referred to Managex.
• Proactively work together to identify future acquisition
opportunities.
• Strategic partnership will drive sales team recruitment
and additional property sales from the Managex
acquired rent rolls to The Agency.
11
1. Refer to ASX announcement dated 9th September 2020
KEY MANAGEMENT
Senior management
Paul Niardone Matt Lahood
Managing Director Chief Executive Officer – The Agency
Previously Executive Director and founder of Professional Public Relations (WA), the largest PR and More than 30 years in real estate sales; 2,000+ property sales worth over $2bn. Previously Director of
communications firm in the State until he sold the business to WPP. Experience in marketing and Sales for McGrath Real Estate, responsible for market entry strategies and management of 22
strategic planning for clients in both Government and the private sector and over 15 years experience company owned offices and more than 250 people.
with public companies.
Andrew Jensen Maria Carlino
Chief Operating Officer Director of Property Management
Andrew, formerly CFO of Ray White, has extensive knowledge in the management of all aspects of Over 27 years of real estate experience in key markets incl. Sydney, Brisbane and the Gold Coast.
finance with strong commercial, strategic, M&A, and change management experience. He has Previous senior roles at RUN Property, Ray White and McGrath Real Estate where she was
financially led companies engaged in various fields including real estate and ancillary services sectors responsible for the management and growth strategies of the rental portfolio and team across all
globally. Fellow of IPA and member of the AICD. company owned offices.
Arjan van Ameyde
Chief Financial Officer
Arjan has over 25 years’ experience in senior finance roles in listed companies and SME. He has
previously founded short-term lending and insurance businesses and established the treasury for a
listed multinational group. Most recently he was Chief Operating Officer/Chief Financial
Officer(Australia and UK) of ASX listed Ensurance Limited (ASX: ENA).
Board of directors
Paul Niardone Matt Lahood
Managing Director Chief Executive Officer – Real Estate
Adam Davey Andrew Jensen
Non-Executive Director Interim Executive Chairman
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.
12
OUR INVESTMENT PROPOSITION
One of Australia’s fastest growing integrated real estate services companies
Established a national presence across key metropolitan markets in almost 4 years since listing
Led by an industry-leading management team
Built a fully serviced real estate firm creating an organisation designed to scale
Only Company to offer dual property sales business model, offering both premium (full-service) and independent brand offering
- underpins strategy to reach leadership across Australia in terms of agent market share
Integrated services, from property sales, property management and ancillary services provides cross-sell opportunities,
capturing revenue across the value chain
Traditional landscape of the real estate agency offering in the current economic environment provides great opportunities for
The Agency Group to bring further consolidation to the industry
13
Contact: Paul Niardone – Managing Director
E: pauln@theagencygroup.com.au
Ph: +61 08 9204 7955