ASX:AU1 · 4 March 2020

Investor Presentation

ASX ANNOUNCEMENT 4 March 2020

INVESTOR PRESENTATION

The Agency Group Australia’s (ASX:AU1) (“The Agency” or “the Company”) is pleased to update the market with an investor presentation.

This announcement has been authorised by the Board.

Your faithfully,

Stuart Usher Company Secretary

September 2018

The Agency Group Australia Ltd Investor Presentation – March 2020

ASX:AU1

Executive summary

The Agency Group Australia Ltd (The Agency Highlights for 6 Months to Dec 31st 2019 Group or the Company) (ASX:AU1) is one of Australia’s fastest growing integrated real estate services companies  In over 3 years since listing on the ASX, the Company has established a national presence (1) 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 (4)  The only Company to offer 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

(2)  Integrated services, from property sales, property management and ancillary services (3) 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. Notes: (1) Prior to adoption of AASB 16 – EBITDA of $1.5 million post adoption of new accounting standard AASB 16 (2) Gross Commission Income (3) $180k per agent annualised (4) Properties Under Management 2

Unique business model Our agents are our clients and are at the core of our model

One of the highest commission models in the market place and provision of support services driving recruitment growth Head Office Franchisor c.15%-35% (1) c.10% Franchisee Principal c.40% c.40%

Traditional Independent Franchise Operations

Agent Agent c.50% Agent c.60%  Brand support c.65%-85% (1) ₓ Brand support  Overhead support ₓ Overhead support ₓ Add-on services  Admin & Sales support ₓ Add-on services ₓ Corporate benefits  Brand support ₓ Corporate benefits  Overhead support  Add-on services  Corporate benefits  Mentoring for building The Agency has a unique, scalable business model, teams under agents disrupting the real estate services industry by returning value, previously given to franchisees and offices, to agents and shareholders.

The Agency continues to expand its agent network by recruiting the industry’s top talents and establishing market leadership based on property transaction volumes across Australia. Notes: (1) Commission structure is tailored dependent on brand (The Agency or SLP) and agent performance. 3

What Differentiates us from our Competitors?

TRADITIONAL REAL ESTATE & FIN TECH  Clear focus – the agent is our client and the core of the model • Unclear focus – franchisor / vendor  Removed red tape and unnecessary franchise layers • Offices in every location competing against each other  No franchise fees and marketing levies • Excessive franchise fees and marketing levies  Agile and flexible workplace arrangements from central hubs • Inflexible branding and marketing templates with little agility to adapt

 Ability to create annuity streams through numerous verticals to specific market places • No Distribution channels  Owns extensive database and national network that continues to Corporate grow • Number of unnecessary layers i.e.. Corporate, State, Franchisee, all Differences  Platform to plug and play best technology taking a cut of the remuneration

 Central control of tech provides greater efficiencies • Essentially a Tech Service only • Unaligned goals  Proven Real Estate experience, leadership and strategic direction in all facets of the business • Limited company-owned assets i.e. rent roll and database

 Best support offering from listing to sales • Lack of control over technology leads to inefficiencies • Require large marketing budgets  Complete service offering to clients (sales, mortgages, property management, finance and settlements) • Recruit anyone

 The best value proposition for agents in the market • No wealth creation opportunities at an agent level

 Industry best remuneration and incentive structure • Lower remuneration and no incentive structure Agent  Ability to build your own business within a business • Pay for your own support Differences  Wealth creation by building an asset and additional revenue stream  Attraction model for high performing sales agents  Flexibility to operate from home or one of our “plug-in” office locations

Accelerating national presence In over 3 years since listing on the ASX, 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 #1 office in WA market

#3 in sales value in WA market(1)

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

Highest number of exchanges recorded since inception in the December 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 Lang Road, Centennial Park c. The Agency Perth $11.9m 5 68 Milligan Street Perth WA 6000

100 NSW The Agency Hawthorn agents Level 1, 585 Burwood Road Hawthorn VIC 3122 150 WA The Agency Albert Park The Agency Central Coast PO Box 3223 The Agency Eastern Suburbs 180 Campbell Parade Wamberal NSW 2260 Bondi Beach NSW 2026 agents 89 Victoria Avenue Albert Park VIC 3206 The Agency Neutral Bay The Agency Inner West Level 1, 3 Young Street 103 Johnston Street Neutral Bay NSW 2089 Annandale NSW 2038

22 VIC The Agency Wollongong agents 2/63 Burelli Street Wollongong NSW 2500 The Agency Canberra

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) August 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 High-Level Support

Conducts sales of residential Manages residential Provision of ancillary Superior support provided properties on behalf of properties on behalf of services provides cross-sell via: property vendors. property owners. opportunities • Agent’s own admin team Operates a unique agent Operates a unique agent • Mortgage financing recruitment model that incentive model that that assist throughout the services: mortgage loan delivers high growth to the encourages agent whole process from book with c.4300 loans company while generating performance and in turn and $1.9m in annualised listing to settlement value for customers. generating stable, recurring trail income (1) revenue for the business. • Centralised office and Disrupting the Australian real • Conveyancing: hubs estate brokerage market with The Agency Group’s settlement services its two differentiated property management • Cloud-based platform. offerings under the brands division operates under The • Financial planning: The Agency and Sell Lease Agency brand. provision of risk products Instead, the traditional Property (SLP). and advice to clients models burden agents with undertaking new significant overhead costs mortgages and administrative costs which impacts on their Premium, full service offering profits.

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 SLP is a value brand with a SaaS full service offering that provides agents offering, boasting unique technology that with a progressive commission structure. supports the entire administrative process for real estate transactions. An agent will typically retain c.75% of the vendor commission, with The Agency SLP provides agents with a progressive Group receiving the remaining c.25%. commission structure. An agent will typically retain c.85% of the vendor Additional revenue to the business is commission, with The Agency Group generated from: receiving the remaining c.15%. • if an agent chooses to have a physical desk provided, a desk fee of $6,000 Additional revenue to the business is p.a.; and 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 Best Value Proposition

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

Portion of High commission High commission Enhanced fee offering across the market commission Low support Strong support to an agent • Franchised based brand networks create significant fee leakage away from Fin Techs agents with multiple layers of Operations 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 of their fee income agents take on significant Independent overhead cost and administrative 50% Operations Traditional burden and risk. Franchise

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 a better level of support than a traditional franchise ‒ The SLP brand enables agents to operate an independent operation Low commission Low commission with a highly sophisticated cost Strong support Low support efficient technology platform Level of support to agent 8

Key financial assets Property management PUM(#) Mortgage financing Revenue under the property Mortgage financing is one of The Agency’s ancillary services, management division is predominantly 4800 4,678 under the brand Mortgage and Financial Solutions. The composed of management fees. For all 4600 Agency’s mortgage book currently consists of c.4300 loans. properties under management (PUM), Revenue predominantly consists of upfront fees and trail the management fee, a percentage of 4400 income. rental income, is retained by The Agency Group. 4200 4000 (5)

3800 (1) 3600

Unlike traditional property managers, Dec-18 Feb-19 Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 The Agency incentivises agents through a long-term value proposition.

As at 31 December 2019 WA NSW VIC QLD Total Asset Value ($m)

PUM Rent Roll 24.24

Number of properties # 1122 3,437 89 30 4,678 Mortgage Book 4.8

Total 29

Annualised rental income $m 19.96 117.76 3.27 0.96 141.95 Loan facilities 12.09 Rental income per property (2) $’000 19,344 36,847 41,376 34,154 32,745 Loan to Value (LVR) ratio(6) 42% Management fee % 6.96% 4.56% 3.42% 5.50% 4.88% Annualised management fee(1) $m 1.39 5.37 0.11 0.05 6.93 Value of Rent Roll (1,3) $m 4.9 18.8 0.39 0.18 24.24

Notes: (1) Calculated from Dec 2019 monthly management fee and excludes ancillary and other PM revenue. (2) Calculated on occupied properties under management of 4335 PuM. (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 Dec 2019 monthly trail income. (5) 9 Calculated from Dec 2019 monthly trail income. (6) Excluding cash

Operational metrics – Demonstrated strong growth Despite the significant downturn experienced across the national property market over the past few years, 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. N U M B E R O F A G E N T S ( # ) (1) NUMBER OF NEW LISTINGS (#) NUMBER OF PUM (#)

The Agency SLP 2500 Up 87% Y-o-Y Up 11%Y-o-Y 1955 4,678 2000

1500 4,209 3,382 92 63 1044 1000 492 200 215 500 251 32 64 0 HY FY17 HY FY18 HY FY19 HY FY20 HY FY17 HY FY18 HY FY19 HY FY20 HY FY18 HY FY19 HY FY20

GCI ($M) VALUE OF EXCHANGES ($M)

The Agency SLP Up 23% Y-o-Y Up 41% Y-o-Y 1517

1235 2.7

3.3 22.2 14.4 190.5 10.9 97.5 3.8 HY FY17 HY FY18 HY FY19 HY FY20 HY FY17 HY FY18 HY FY19 HY FY20

Notes: (1) Following Fair Work Australia’s recent legislative changes the Company performed a strategic review of the SLP agent network. 10

Income Statement

HY 2020 HY 2020 • EBITDA of $1.58m for 1H20, after $m HY2019 pre AASB16 post AASB16 adoption of new reporting standard Revenue 10.48 25.62 25.62 AASB16. Operating costs (12.03) (25.09) (24.14) • EBITDA (excluding AASB16) of $533k for EBITDA (1.55) 0.53 1.48 1H20, a significant improvement on previous corresponding period. Depreciation & amortisation (0.22) (2.20) (3.04)

Loss before interest (1.77) (1.67) (1.56) • Total revenue of $25.62m – up 145% on previous corresponding period Interest (0.34) (0.85) (1.05) ($10.48m: 1H2019). Net Loss Before Tax (2.11) (2.52) (2.61) • Loss after tax of $1.67m for 1H20 – Net Loss After Tax (1.96) (1.58) (1.67) reduced from loss of $1.96m in previous corresponding period. Basic and diluted EPS (5.37) (0.80) • Continued growth in revenue and key metrics across the Company expected in the second-half FY20 on back of improving market conditions

Results include Rent Roll Amortization expenses of $1.8m from rent roll acquisitions (as required under the accounting standards) – however the rent roll asset value has grown to $24.2m in estimated market value – refer slide 9 notes. 11

Pro-Active Cost Reduction Program

Pro-active cost reduction program has been implemented across the combined group during FY20 as part of the integration of The Agency’s East Coast and West Coast operations.
During the HY FY20, wage savings of approx. $678,000 have been realised as a result of streamlining the business post-merger with Top Level Real Estate
Cost reductions of $2.5 million are expected to be delivered in FY20 with The Agency on target to meet these reductions.

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 More than 30 years in real estate sales; 2,000+ property sales worth over $2bn. Previously and communications firm in the State until he sold the business to WPP. Experience in marketing Director of Sales for McGrath Real Estate, responsible for market entry strategies and and strategic planning for clients in both Government and the private sector and over 15 years management of 22 company owned offices and more than 250 people. experience with public companies.

Thomas McGlynn Maria Carlino Director of Sales Director of Property Management Armed with close to 15 years of experience, Thomas has conducted over 4,000 auctions and run Over 27 years of real estate experience in key markets incl. Sydney, Brisbane and the Gold thousands of training and one-on-one coaching sessions. It is the rare combination of hands-on Coast. Previous senior roles at RUN Property, Ray White and McGrath Real Estate where she sales experience, general management and auctioneering that make Thomas a trusted and was responsible for the management and growth strategies of the rental portfolio and team across dependable leader at The Agency. all company owned offices.

Andrew Jensen Arjan van Ameyde Chief Operating Officer Chief Financial Officer Andrew, formerly CFO of Ray White, has extensive knowledge in the management Arjan has over 25 years’ experience in senior finance roles in listed companies and SME. He has of all aspects of finance with strong commercial, strategic, M&A, and change 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 management experience. He has financially led companies engaged in various Officer(Australia and UK) of ASX listed Ensurance Limited (ASX: ENA). fields including real estate and ancillary services sectors globally. Fellow of IPA and member of the AICD.

Board of directors Paul Niardone Matt Lahood Managing Director Chief Executive Officer – Real Estate

Adam Davey Mitchell Atkins Non-Executive Director Non-Executive Director Adam is Director, Private Clients and Institutional at Patersons Securities. His expertise spans Mitchell is Founder and CEO of Magnolia Capital Group, a diversified group 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. with direct investments in fitness, property, financial services and advisory businesses. Magnolia Capital Group has recently transacted over A$200m across a diverse range of development, debt and equity opportunities around Australia.

Andrew Jensen Interim Executive Chairman