ASX:AU1 · 16 October 2019

Shareholder Presentation

September 2018 September 2019

The Agency Group Australia Ltd ASX:AU1

Contents

Executive summary 3

Company overview and business model 4

Key assets 9

Financials and operational metrics – LTM 10

Key management 11

Executive summary

(1) (2)

The Agency Group Australia Ltd (The Agency Group or the Company) (ASX:AU1) is one of Australia’s fastest growing integrated real estate services companies • In over 2 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 team • The Agency Group today has built a fully serviced real estate firm creating an organisation designed to scale • The Company dual property sales business model, offering both premium (full-service) and independent brand offering underpins its strategy to reach leadership 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 value chain • The 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

(3) (4) (5)

Notes: (1) Value of properties exchanged in the LTM to September 2019. (2) Properties Under Management (“PUM”) (3) Gross Commission Income (“GCI”) (4) Calculated on a blended valuation multiple of 3.5x on annualised management fee calculated from September 2019 monthly management fee. (6) Calculated on a valuation multiple of 2.4x on 3 annualised trail income calculated from September 2019 monthly trail income.

Unique business model The Agency has a unique, scalable business model, disrupting the real estate services industry by returning value, previously given to franchisees and offices, to agents and shareholders. The Agency’s offering in the market continues to expand its agent network by recruiting the industry’s top talents and establishing market leadership based on property transaction volumes across Australia One of the highest commission models in the market place and provision of support services driving recruitment growth Franchisor Head Office c.10% c.15%-25% (1) Franchisee Principal c.40% c.40%

Traditional Independent Franchise Operations

Agent Agent c.50% c.60% Agent ✓ Brand support c.75%-85% (1) ₓ Brand support ✓ Overhead support ₓ Overhead support ₓ Add-on services ✓ Brand support ₓ Add-on services ₓ Corporate benefits ✓ Overhead support ₓ Corporate benefits ✓ Add-on services ✓ Corporate benefits

Notes: (1) Commission structure is tailored dependent on brand (The Agency or SLP) and agent performance. 4

Accelerating national presence In over 2 years since listing on the ASX, the Company has established a national presence with 10 physical locations 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

#1in WA market (1)

#1in Lower North Shore and Eastern Suburbs (NSW) market (2)

Highest number of exchanges recorded since inception in the September Q of 2019

Highest residential sale result of c.$24m in Australia in CY19 (3)

6 QLD Significant listings including beachside property with price guide of c.$17m (4) agents Landmark sales including Scott Thornton’s The Agency Gold Coast Cremorne conjunction at c.$8m (5) and Nic and The Agency Perth 68 Milligan Street Suite 301, The Wave, 89-91 Surf Parade Kingsley Yates’ Mosman sale at c.$5m (6) Broadbeach QLD 4218 Perth WA 6000

102 NSW The Agency Hawthorn agents Level 1, 585 Burwood Road Hawthorn VIC 3122 153 WA The Agency Albert Park The Agency Central Coast PO Box 3223 The Agency Bondi Junction 17-25 Spring Street Wamberal NSW 2260 Bondi Junction NSW 2022 agents 89 Victoria Avenue Albert Park VIC 3206 The Agency Neutral Bay The Agency Eastern Suburbs Level 1, 3 Young Street 180 Campbell Parade Neutral Bay NSW 2089 Bondi Beach NSW 2026

19 VIC The Agency Wollongong The Agency Inner West agents 2/63 Burelli Street Wollongong NSW 2500 103 Johnston Street Annandale NSW 2038

Notes: (1) Based on value of listings sold in September 2019. (2) Based on number of listings sold in the Lower North Shore and Eastern Suburbs (NSW) area (September 2019) and the number of properties currently listed (September 2019). (3) 20B Tivoli Avenue, Rose Bay, Sydney. Sold by Ben Collier. (4) 125 year old heritage-listed home, “Le Fanu”, Cottesloe, 5 Perth. On market by Pamela Wilkinson. (5) April 2019. (6) May 2019.

Company overview The Agency Group is comprised of three service categories, including property sales, property management and ancillary services

The Agency Group’s divisions

Property sales Property management Ancillary services

Conducts sales of residential Manages residential properties on Provision of ancillary services properties on behalf of property behalf of property owners. provides cross-sell opportunities vendors. Operates a unique agent incentive • Mortgage financing services: Operates a unique agent recruitment model that encourages agent mortgage loan book with c.4300 model that delivers high growth to performance and in turn generating loans and $1.9m in annualised the company while generating value stable, recurring revenue for the trail income (1) for customers. business. • Financial planning: provision of Disrupting the Australian real estate The Agency Group’s property risk products and advice to clients brokerage market with its two management division operates under undertaking new mortgages differentiated offerings under the The Agency brand. brands The Agency and Sell Lease • Conveyancing: settlement Property (SLP). services

Premium, full service offering

Value, SaaS support offering

Notes: (1) Calculated from September 2019 monthly trail income. 6

Property sales Revenue model

The Agency’s dual offering, including a premium brand (The Agency) and a value brand (SLP) enables it to attract sales agents across the spectrum of potential requirements and needs

Revenue model Upon the successful sale of a residential property, a vendor commission, a percentage of the property’s sale value, is charged. This commission is subsequently split between The Agency Group and the agent.

NATIONAL PRESENCE VIRTUAL PRESENCE ACROSS 10 PHYSICAL LOCATIONS PREDOMINANTLY ACROSS WA AND QLD The Agency is a premium brand with a full service offering SLP is a value brand with a SaaS offering, boasting unique that provides agents with a progressive commission structure. technology that supports the entire administrative process for real estate transactions. An agent will typically retain c.75% of the vendor commission, with The Agency Group receiving the remaining c.25%. SLP provides agents with a progressive commission structure. An agent will typically retain c.85% of the vendor commission, Additional revenue to the business is generated from: with The Agency Group receiving the remaining c.15%. • if an agent chooses to have a physical desk provided, a desk fee of $6,000 p.a.; and Additional revenue to the business is generated from: • $250 per transaction fee. • $10,000 p.a. member fee; • $720 p.a. I.T. platform fee; and • $250 per transaction fee.

Property sales Market position

The Agency’s offerings across both brands boast a superior financial and non-financial value to sales agents above independent operations and traditional franchises

Enhanced fee offering across the market Whilst franchised based brand networks dominate the Australian brokerage market, it creates significant fee leakage away from agents with multiple layers of administration and costs that sit above an agent, including the franchisee and the franchisor.

The primary alternative for agents has been to establish their own operations, either standalone or with peers. In exchange for a higher share or their fee income agents take on significant overhead cost and administrative burden.

The Agency and SLP brands provide overall larger profits to the agent than a traditional franchise or an independent operations, respectively:

The Agency brand returns previously leaked fees to the agent, with the same level of support as a traditional franchise
The SLP brand enables agents to operate an independent operation with a highly sophisticated cost efficient technology platform

Portion of commission to an agent

Independent Operations

Traditional Franchise

Level of support to agent

Key financial assets Property management Mortgage financing Revenue under the property Mortgage financing is one of The Agency’s ancillary services, under management division is predominantly PUM (#) 4,397 the brand Mortgage and Financial Solutions. The Agency’s composed of management fees. For all 4,400 mortgage book currently consists of c.4300 loans. Revenue properties under management (PUM), predominantly consists of upfront fees and trail income. the management fee, a percentage of 4,300 rental income, is retained by The $4.6M VALUE OF MORTGAGE BOOK (4) Agency Group. 4,200 (5)

4,397 PUM 4,100

4,000 (1) 3,900 Oct 18 Nov 18 Unlike traditional property managers, Dec 18 Jan 19 Feb 19 Mar 19 Apr 19 The Agency incentivises agents through May 19 Jun 19 Jul 19 Aug 19 a long-term value proposition. Sep 19

As at 30 September 2019 WA NSW VIC QLD

PUM

Number of properties # 940 3,355 70 32

Annualised rental income $m 17.99 119.91 2.68 1.01 Rental income per property (2) $’000 19.14 35.74 38.30 31.53 Management fee % 6.62% 4.46% 4.65% 4.04% Annualised management fee (1) $m 1.2 5.3 0.1 0.04

Value of Rent Roll (1,3) $m 3.3 19.6 0.5 0.1

Notes: (1) Calculated from September 2019 monthly management fee. (2) Calculated on occupied properties under management. (3) Calculated on a blended valuation multiple of 3.5x. (4) Calculated on a valuation multiple of 2.4x on annualised trail income calculated from September 2019 monthly trail income. (5) Calculated from September 2019 monthly trail 9 income.

Operational metrics – LTM The Company, has experienced a strong improvement in GCI in the last quarter despite maintaining agent numbers as its strategic transformation of SLP has removed poor producing agents. The Agency continues to be supported by a strong property management division Number of agents (#) (1) Number of new listings (#) Number of PUM (#) 0.0 0.0 0.0 283 272 280 1,040 4,324 4,337 4,397 258 0.0 4,020 0.0 914 883 0.0 0.0 69 90 67 800 67 0.0 0.0 0.0 0.0 0.0 0.0 3,331 3,374 3,355 0.0 3,323 0.0 0.0 193 205 211 0.0 0.0 191 0.0 0.0 0.0 0.0 922 877 940 639 – – – 2Q FY19 3Q FY19 4Q FY19 1Q FY20 2Q FY19 3Q FY19 4Q FY19 1Q FY20 2Q FY19 3Q FY19 4Q FY19 1Q FY20 The Agency SLP WA NSW VIC QLD

GCI ($m) Value of exchanges ($m) Annualised management fee ($m) (2) 0.0 10.7 0.0 630.8 0.0 10.3 613.4 600.8 6.9 7.0 7.1 10.0 582.8 6.6 0.0 1.2 0.0 0.0 8.8 1.6 1.3 0.0 0.0 0.0 1.4 0.0 0.0 0.0 0.0 5.7 5.6 5.7 5.6 0.0 8.8 8.7 9.5 0.0 0.0 7.4 0.0 0.0 0.0 0.0 0.0 0.9 1.1 1.2 1.3 – – – 2Q FY19 3Q FY19 4Q FY19 1Q FY20 2Q FY19 3Q FY19 4Q FY19 1Q FY20 2Q FY19 3Q FY19 4Q FY19 1Q FY20 The Agency SLP WA NSW VIC QLD

Notes: (1) Following Fair Work Australia’s recent legislative changes the Company have performed a strategic review of the SLP agent network. (2) Calculated from quarterly management fee. 10

Key management

Senior management Board of directors Paul Niardone Andrew Jensen Managing Director Chairman Previously Executive Director and founder of Professional Public Relations (WA), Andrew, formerly CFO of Ray White, has extensive knowledge in the management the largest PR and communications firm in the State until he sold the business to of all aspects of finance with strong commercial, strategic, M&A, and change WPP. Experience in marketing and strategic planning for clients in both management experience. He has financially led companies engaged in various Government and the private sector and over 15 years experience with public fields including real estate and ancillary services sectors globally. Fellow of IPA and companies. member of the AICD.

Matt Lahood Paul Niardone Chief Executive Officer – The Agency Executive Director More than 30 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.

Thomas McGlynn Matt Lahood Director of Sales Executive Director Armed with close to 15 years of experience, Thomas has conducted over 4,000 auctions and run thousands of training and one-on-one coaching sessions. It is the x rare combination of hands-on sales experience, general management and auctioneering that make Thomas a trusted and dependable leader at The Agency.

Steven Chen John Kolenda Director of Projects Non-Executive Director Over 20 years’ experience in real estate sales delivering over 3,000 properties John is the co-founder and Managing Director of Finsure Group, one of Australia’s worth in excess of A$2.5bn. Ranked 16 in the top 100 agents of 2016 by REB. fastest growing retail finance brokerages, writing over $1 Billion in new mortgages Previously Head of Projects for McGrath Real Estate where he was responsible for every month across 1300 brokers. He formed the Loan Market Group with Ray a team of eight Associate Directors and over 50 agents and support staff across White and before that worked as the General Manager of Sales & Distribution of Sydney, Brisbane and Gold Coast. Aussie Home Loans.

Maria Carlino Adam Davey Director of Property Management Non-Executive Director Over 27 years of real estate experience in key markets incl. Sydney, Brisbane and Adam is Director, Private Clients and Institutional at Patersons Securities. His the Gold Coast. Previous senior roles at RUN Property, Ray White and McGrath expertise spans over 25 years and includes capital raising (both private and public), Real Estate where she was responsible for the management and growth strategies mergers and acquisitions, ASX listings, asset sales and purchases, transaction due of the rental portfolio and team across all company owned offices. diligence and director duties.