FY22 Financial & Operational Update - double digit growth

ASX Release
25 August 2022

                                      FY22 FINANCIAL AND OPERATIONAL UPDATE

     THE AGENCY DELIVERS DOUBLE DIGIT GROWTH IN FY22, AS THE BUSINESS CONTINUES TO SCALE.

Highlights

                                                              FY22                    FY21                 % Change
 Revenue                                                    $72.7m                   $58.4m                  +24%
 Underlying EBITDA – pre AASB16 1                           $3.85m                   $3.06m                  +26%
 GCI                                                        $102.5m                  $80.7m                  +27%
 Gross Value of Properties Sold                              $5.9bn                  $4.8bn                  +23%
 Number of Properties Sold                                    5,709                   4,964                  +15%
 Number of Agents                                              393                     308                   +28%

National real estate company The Agency Group Australia (ASX:AU1) (“The Agency” or “the Company”) has
delivered another year of strong increases in operating and financial results for FY22, as it continues to grow
market presence nationally, across six states and territories.

The Agency has announced a 26% increase in Underlying EBITDA from $3.06m to $3.85m for the FY22
Financial year.

Revenue grew by 24% to $72.7m (FY21: $58.4m), which was primarily driven by a 27% year-on-year increase
in Gross Commission Income (GCI) to $102.5m (FY21: $80.7m). The growth in GCI was underpinned by an
increase in number of properties sold, which increased 15% to 5,709 properties in FY22 (FY21: 4,964),
significantly outperforming the Australian market growth of 3.2% 2.

Further economies of scale were achieved, with The Agency’s Cost of Doing Business 3 Ratio declining to
30.3% of Revenue, down from 34.7% in FY21.

As at 30 June 2022, the Group’s cash and cash equivalents was $8.2m (30 June 2021: $5.1m). The growth in
cash was underpinned by strong operational cash flows of $4.6m (Pre AASB16 leasing adjustment).

Commenting on the results and outlook, The Agency Managing Director & CEO Geoff Lucas said,
“We’re pleased with the financial results that have been delivered for our shareholders. Expanding our
geographic reach, increasing agent numbers, growing our local market presence at a lower cost of doing
business are our strategic growth levers that are delivering a solid platform for execution of our future
objectives.”

1 After adjusting for FY21 for Government grants received of $1.51 million in FY21. EBITDA pre AASB16 for FY22 was not impacted by

Government grants
2 CoreLogic July 2022 Monthly Housing Chart Pack
3 Operating Expenses as a percentage of revenue

“Across the past 12 months, we’ve increased our team by 85 agents, taking us to 393 agents, compared to
308 in the previous year. This agent growth underpinned our GCI uplift to $102.5m, which is just a fraction of
the $7.6 billion 4 total annual Australian residential real estate commissions pool. Our business is well
positioned to continue growing our share of this pool.”

“Agents are attracted to our direct engagement model which has created a more responsive, efficient and
effective model, removing the typical franchise ‘middle layer’. Our direct engagement model alleviates our
agents from the distractions of managing office overheads and the administrative burden associated with
operating a franchise and instead, allows agents to focus on the high dollar value activities like servicing their
customers,” Mr Lucas explained.

“As the market tightens, we expect vendors to look to experienced agents who have a track record in
changing market conditions. We are confident that these market conditions will work to our advantage, not
only to help to attract new agents to our business and grow our agent numbers, but also help many of our
existing agents gain market share at their local suburb level.”

Outlook

Mr Lucas continued “In terms of price movements, we have revised our calendar year 2022 national price
movement to be negative 4% to 8%. We believe consumer confidence will return as the quantum of interest
rate movements reduce and a terminal value for this cycle is reached. Once consumer confidence returns,
we believe this will lead to a recovery in transaction volumes.”

“At 30 June 2022, the value of Australian residential real estate was $9.95 trillion dollars – nearly 4 times the
size of the value of the Australian listed stocks and about 3 times the size of the entire Australian
superannuation industry. Consumers should continue to take a long-term view with decisions around their
real estate assets,” Mr Lucas noted.

Mr Lucas believes although this year’s results are pleasing, there still remains significant market share
potential ahead for The Agency.

“From our assessment, we’ve calculated that we sold a property in around 34% of the addressable market in
the last 12 months. This shows the potential reach of our current infrastructure but also highlights that we
have many further markets to tap into as we grow our national market share. Our strategy is to build depth
in these existing markets as well as grow into additional markets,” he concluded.

Investor Webinar

The Agency advises that Mr Lucas will provide a detailed update on the financial and operational results of
the Company for the FY22 via an investor and media webinar including a Q&A session today Thursday 25
August 2022 at 12.00pm(AEDT) (10.00am AWST).

4 *Assessed at 1.50% Average Commission Rate on FY22 Gross Sales Volume of $521.2Bn (CoreLogic July 2022 Monthly Housing

Chart Pack)

To access further details of the event and to register at no cost, please follow the below link (or cut and
paste into your browser)

https://us02web.zoom.us/webinar/register/WN_DVeFPce3R7OQdZtFYcJE8g

Once you have registered, you will be provided with detailed instructions on how to view the webinar.

A copy of the presentation to be provided in this webinar has been uploaded separately to the ASX.

                                                      ENDS

Announcement authorised for release by the Board of The Agency Group Australia Limited.

If you require further information, please contact:

 Investors                                               Media
 The Agency Australia Ltd                                Chapter One Advisors
 Geoff Lucas                                             David Tasker / Colin Jacoby
 T: +61 02 8376 9100                                     T: +61 433 112 936 / +61 439 980 35