Investor Presentation for Half Year Results
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I N V E S T O R P R E S E N T AT I O N F O R H A L F
Y E A R R E S U LT S E N D 3 1 ST D E C E M B E R 2 0 2 0
2 6 TH F E B R U A R Y 2 0 2 1
ASX:AU1
ABOUT US
Highlights HY2021
Record EBITDA of $2.76M & Revenue of $29.4M
Results confirming The Agency Group as one of
Australia’s fastest growing integrated real estate
services companies
53% increase in Gross Commission Income (GCI)
51% increase in number of sales
33% increase in revenue
10% decrease in Opex as % revenue for half year
MFSA settled 186 home loans valued at $67M
New debt facility for 2 years with MQB @ $5M
Net assets a 34% growth (after refinancing & conversion of Convertible
Note on 28th January 21)
2
1H FY2021 Key Takeaways
FINANCIAL
Maiden NPAT $2.57M
HIGHLIGHTS
$0.83M Operational Cashflow
(HY20: $1.67M Loss) (HY20: $1.46M)
$29.4M
$2.76M Revenues from Ordinary
EBITDA1 Activities
(HY20: $0.5M) (HY20: $22.1M)
$38.1M 2449
GCI New Listings
(HY20: $24.9M) (HY20: 1955)
$2.2B >$25M
Value of Exchanges Rent Roll &
(HY20: $1.5B) Mortgage Book2
1. EBITDA provided on a pre -adoption of AASB16 (but includes government incentives) 3
2. The Agency’s East Coast rent roll was valued at in excess of $23 million by JemmesonFisher in Sep'20
Strong Growth in Key Operating Metrics for HY21
REVENUES FROM ORDINARY ACTIVITIES ($M) GCI ($M)
Up 33% H-on-H 45
35 Up 53% H-on-H
FINANCIAL
40
TOP LEVEL
30
TOP LEVEL 38.1
35
HIGHLIGHTS
29.4
25 ACQUISITION
ACQUISITION
30
20 22.1 25
24.9
15 20
15 17.8
10
10.2 10
5 7.2 10.9
5
0 0
HY-18 HY-19 HY-20 HY-21
HY-18 HY-19 HY-20 HY-21
SALES ($M) Up 51% H-on-H
NUMBER OF NEW LISTINGS (#)
3000
3000 Up 25% H-on-H
2500
Up 46% H-on-H
TOP LEVEL
2500 TOP LEVEL 2,407
2000 2,217
ACQUISITION
2,449
2000 ACQUISITION
1,955 1500 1,595
1,519
1500
1,590 1000 1,235
1,129
1000
672.9
500
870 574
500
0
0 HY-18 HY-19 HY-20 HY-21
HY-18 HY-19 HY-20 HY-21
4
Achieves Maiden NPAT, Record EBITDA
FINANCIAL
STATUTORY UNDERLYING1
1H FY21
HIGHLIGHTS
1H FY20
$M 1H FY21 1H FY20 % Change (Pre AASB16 and % Change
(Pre AASB16)
Govt Incentives)
Revenue 29.4 22.1 33% 29.4 22.1 33%
EBITDA 4.0 1.5 167% 1.9 0.5 280%
Depreciation &
Amortisation (2.8) (3.0) -7% (2.0) (2.2) -9%
EBIT 1.2 (1.6) 175% (0.1) (1.7) 94%
Net finance costs (1.5) (1.0) 50% (1.3) (0.9) 55%
Net Profit/(loss) before
tax (0.2) (2.6) 92% (1.4) (2.5) 44%
Income tax expense 1.0 0.9 11% 1.0 0.9 11%
Net Profit/(Loss) after
tax 0.8 (1.7) 147% (0.4) (1.6) 75%
1. Underlying results adjusted to exclude the impact of AASB16 and government incentives 5
Balance Sheet as at 31 December 2020
FINANCIAL
Impact of Secured Funding Package
HIGHLIGHTS
$M DEC 2020 JUN 2020 % Change % Change % Change
DEC 2020
On DEC On JUN
Pro Forma1
2020 2020
Cash at Bank 3.3 2.7 22% 4.8 45% 78%
Financial Assets 6.6 1.6 313% 0.0 -100% -100%
Other current assets 7.9 5.2 52% 7.9 0% 52%
Total non-current assets 31.4 37.5 -16% 31.4 0% -16%
Total assets 49.2 47.0 5% 44.1 -10% -6%
Total current liabilities 31.3 27.9 12% 14.8 -53% -47%
Total non-current liabilities 5.5 7.5 -27% 13.8 151% 84%
Total liabilities 36.8 35.4 4% 28.6 -22% -19%
Net assets2 12.4 11.6 7% 15.5 25% 34%
1. Pro Forma reflects release of $6.6M in financial assets used to reduce borrowings as well as $3.0M Convertible Note converted to equity. 6
2. Excludes any uplift of independent valuation of the rent roll and mortgage book trail not currently represented entirely on balance sheet
3. Current liabilities includes impact of AASB16
AU1 borrowings have reduced as EBITDA continues to grow
$25m
$21.1m
FINANCIAL $20m Note: Borrowings have been
HIGHLIGHTS
further reduced to $8.2 million
$15m $13.2m by the conversion of $3 million
$12.2m of debt to equity on 28th
$9.8m January 2021.
$10m
$5m $1.5m $2.8m
$1.2m
$0m
2H FY19 1H FY20 2H FY20 1H FY21
-$2.7m
-$5m
Borrowings EBITDA
2H 1H 2H 1H
$M
FY19 FY20 FY20 FY21
Borrowings1
21.1 13.2 12.2 9.8
Revenue
17.9 22.1 19.8 29.4
EBITDA2 (2.7) 1.5 1.2 2.8
1. Borrowings have been adjusted to off set financial assets held against the borrowings 7
2. EBITDA adjusted to exclude the impact of AASB16 and government incentives
Long-Term Funding Package
• Long-term $11 million funding package
secured providing opportunity to strengthen
financial position and balance sheet to
continue its national growth plans.1
• Consisted of:
• $6 million in Convertible Notes issued to
private investment company Peters
Recent Events
Investments Pty Ltd2
• An extended $5 million Macquarie Bank
primary secured debt facility (down from
$12.1 million)
• The Agency’s shareholders have
overwhelmingly supported the long-term
funding package with Peters Investments and
continuing support from Macquarie Bank via
the reduced debt position.3
• In a show of support to The Agency and its
operations Peters Investments converted $3
million of its Convertible Notes to AU1
shares.4
• Post conversion debt reduced to $8.2M
1. Refer to ASX announcement dated 29th October 2020
2. Excludes capitalised $150k establishment fee & monthly interest which is capitalised 8
3. Refer to ASX announcement dated 4th January 2021
4. Refer to ASX announcement dated 28th January 2021
Outlook
Strong pipeline into H2 FY21 on back of rebounding
property market on track to surpass pre-COVID levels
in early CY21
Continued agent recruitment growth in existing and
new market sectors
Expansion of mortgage brokerage offering to deliver
continued growth
Due to unknown impact of macro factors in H2 FY21,
Outlook
AU1 has decided not to provide earnings guidance
for H2 FY21 at this stage
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Key Management
Senior Management Board of Directors
Paul Niardone Matt Lahood
Managing Chief Executive
Paul Niardone Andrew Jensen Matt Lahood Maria Carlino Arjan van
Director Officer – Real Estate
Managing Chief Operating Chief Executive Director of Ameyde
Director Officer Officer – Real Property Chief Financial
Previously Executive Andrew, formerly CFO of
Estate Management Officer
Director and founder of Ray White, has
More than 30 years in Over 27 years of real Arjan has over 25 years’
Professional Public extensive knowledge in
real estate sales; 2,000+ estate experience in key experience in senior
Relations (WA), the the management of all
property sales worth markets incl. Sydney, finance roles in listed
largest PR and aspects of finance with
over $2bn. Previously Brisbane and the Gold companies and SME. He
communications firm in strong commercial,
Director of Sales for Coast. Previous senior has previously founded
the State until he sold strategic, M&A, and
McGrath Real Estate, roles at RUN Property, Ray short-term lending and
the business to WPP. change management
insurance businesses and
Experience in marketing experience. He has responsible for market White and McGrath Real
Estate where she was established the treasury for Andrew Jensen Adam Davey
financially led companies entry strategies and
and strategic planning
for clients in both engaged in various fields management of 22 responsible for the a listed multinational group. Interim Executive Non-Executive Director
management and growth Most recently he was Chief Adam is Director, Private Clients
Government and the including real estate and company owned offices
and more than 250 strategies of the rental Operating Officer/Chief Chairman and Institutional at Patersons
private sector and over ancillary services sectors
people. portfolio and team across Financial Officer(Australia Securities. His expertise spans over
15 years experience globally. Fellow of IPA
all company owned offices. and UK) of ASX listed 25 years and includes capital raising
with public companies. and member of the
Ensurance Limited (ASX: (both private and public), mergers
AICD.
ENA). and acquisitions, ASX listings, asset
sales and purchases, transaction
due diligence and director duties.
Notes: (1) Based on number of listings sold in the Lower North Shore and Eastern Suburbs (NSW) area
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Disclaimer
NOT AN OFFER • 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
This presentation is for information purposes only. This presentation does not comprise on assumptions and estimates related to future technical, economic, market, political,
a prospectus, product disclosure statement or other offering document under Australian social and other conditions.
law (and will not be lodged with the Australian Securities and Investments Commission)
or any other law. 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.
SUMMARY INFORMATION
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This presentation does not purport to be all inclusive or to contain all information about “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar
the Company or any of the assets, current or future, of the Company. This presentation expressions identify forward looking statements.
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 All forward looking statements contained in this Presentation are qualified by the
and does not purport to contain all the information which a prospective investor may foregoing cautionary statements. Recipients are cautioned that forward looking
require in evaluating a possible investment in the Company. 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
The Company does not undertake to provide any additional or updated information uncertainty therein.
whether as a result of new information, future events or results or otherwise.
NO LIABILITY
FORWARD LOOKING STATEMENTS
The Company has prepared this presentation based on information available to it at the
Certain statements contained in this presentation, including information as to the future time of preparation. No representation or warranty, express or implied, is made as to the
financial or operating performance of the Company and its projects, are forward looking fairness, accuracy or completeness of the information, opinions and conclusions
statements. Such forward looking statements: contained in this presentation.
• are necessarily based upon a number of estimates and assumptions that, while To the maximum extent permitted by law, the Company, its related bodies corporate (as
considered reasonable by the Company, are inherently subject to significant that term is defined in the Corporations Act 2001 (Cth)) and the officers, directors,
technical, business, economic, competitive, political and social uncertainties and employees, advisers and agents of those entities do not accept any responsibility or
contingencies; liability including, without limitation, any liability arising from fault or negligence on the
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• involve known and unknown risks and uncertainties that could cause actual events or otherwise arising in connection with it.
results to differ materially from estimated or anticipated events or results reflected in
such forward looking statements; and
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Contact: Paul Niardone – Managing Director
E: pauln@theagencygroup.com.au
Ph: +61 08 9204 7955