Investor Presentation of the HY Financial Results

(ASX: AU1) Investor Presentation for the Half Year End Results 31 December 2021

KEY TAKEAWAYS

UNDERLYING EBITDA1 Revenues from Ordinary Activities GCI2

$2.14M $35.6M $52.9M (1HFY21: $1.60M) → +33% (1HFY21: $29.4M) → +21% (1HFY21: $38.1M) → +39%

Gross Value of Exchanges No. of Exchanges Properties Under Management

$3.1Bn 2,910 3,551 (1HFY21: $2.2Bn) → +41% (1HFY21: 2,407) → +21%

1. Underlying EBITDA adjusted for the impact of AASB16 and Government Incentives received in the prior period 2. Gross Commission Income (“GCI”) is the fees the vendor pays for the sale of a property. 1H FY22 Investor Presentation 2

STRONG GROWTH ACROSS KEY BUSINESS INDICATORS 39% Growth

$52.9m

39% 16% Growth Increase in Gross Commission Income $38.1m 41% Growth 21% Growth 345

$3.1Bn 2,910 298 Increase of 278 $24.9m 2,407

47 $2.2Bn

1,591 Agents from 31 December 2020 $1.5Bn

Gross Commission Income Value of Properties Sold No of Properties Sold No of Agents ($M)

1H FY20 1H FY21 1H FY22

1H FY22 Investor Presentation 3

A growing brand now Sunshine Coast with presence in 5 states Toowoomba Brisbane

Gold Coast and territories Coffs Harbour Central Hunter Valley Coast Newcastle Central Perth West NSW Sydney Illawarra ACT Since 30 June The Agency has invested in new geographical markets of Manly NSW, Sunshine Melbourne Coast and Toowoomba in Queensland and Port Phillip Canberra in the ACT. Boroondara

1H FY22 Investor Presentation 4

WHY AGENTS ARE CHOOSING THE AGENCY The Agency’s business model is to directly engage with Selling Agents. This is a change to the industry norm where the most common arrangement is a franchisor/franchisee arrangement, with the franchisee employing the Agents. This differentiated business model has a number of benefits which are leading Agents to choose The Agency:

Franchisees are often Agents who Agents can come to The Agency Post COVID, Agents are aware The Agency has strategic are known as Selling Principals. to focus on what they do best, they may no longer need to have partnerships with the industry The Selling Principal often which is selling real estate with an office on every suburban leading suppliers that make selling competes against other Agents their own team underneath them. corner to be successful and sitting real estate as easy as possible. they have employed in their The Agent’s time is not distracted in a local coffee shop between Agents who join The Agency have business, which creates tension by needing to manage a Property appointments can generate just as access to a fully digital cloud base and distrust that can undermine an Management portfolio or manage much engagement with a local process that saves them time on Agent doing their best work. The the operations of their franchisee community as an office provides. paperwork and means they can Agency direct engagement model business, office infrastructure, The Agency operates Hubs where operate from anywhere. Agents does not have these potential Trust accounts or staff matters. Agents can collaborate and have access to artificial conflicts. Freed of these distractions, we operate with their team members. intelligence that automates tasks, have Agents who have doubled The Hub model reduces allowing them to work more their sales as they are just focused expenditure on premises which efficiently. Partnerships with on listing and selling real estate. allows The Agency to pay the Cooley Auctions lead by Damien agent higher commission splits in Cooley, External Agent coaches, a sustainable way. Competitors Vendor advertising funding who have an existing office providers, insurance providers, footprint, and match The Agency’s Mortgage brokers and other commissions, will end up with a operators servicing the residential higher cost profile than The real estate market ensure the Agency. Agent’s can maximise their productivity. 1H FY22 Investor Presentation 5

HOW AGENT RECRUITMENT ASSISTS THE AGENCY PROFITABILITY Across the past 12 month period, there has been an increase of 47 Agents. The profitability of H1 FY22 recruits is yet to fully flow through to The Agency operating profit (as visualised below).

Agents who are recruited in existing established geographical areas have a quicker path to profitability as they plug into the existing overhead infrastructure and brand presence. A newly recruited agent needs to launch a property for sale, conduct a sales campaign and on average contribute operational profit 3 to

Recruitment Month JULY 4 months after their commencement date. AUG

SEPT When establishing a presence in a new geographical area, it OCT generally takes around 6 months before these Agents contribute to operational profit while the recruited agent builds momentum NOV and establishes themselves in the local market. Any initial DEC investment is carefully considered by Management before entering a new geographical area and operating costs in a new JULY AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JULY AUG SEP OCT NOV DEC area will only be incurred if there is sufficient scale benefits. Month of the Year

End of Period

Not Yet Joined Not yet contributing profit Contributing operating profit

1H FY22 Investor Presentation 6

Financial Highlights

1H FY22 Investor Presentation 7

PROFITABLE GROWTH REDUCING COST OF DOING BUSINESS

21% 86 basis point $0.4M Increase in Revenues decrease in Cost of Doing Increase in Statutory Net Profit Business after tax

UNDERLYING1 STATUTORY 1H FY22 1H FY21 Change 1H FY22 1H FY21 Change Revenue $35.56m $29.45m 21% $35.56m $29.45m 21% Cost of Doing Business2 30.7% 31.6% -86 bps n.a. n.a. n.a. EBITDA $2.14m $1.60m 33% $3.05m $3.68m -17% Net Profit After tax $0.72m $0.09m 743% $1.25m $0.83m 50%

1. 1H FY22 Underlying adjusted for the impact of AASB16 Leasing Standard and Impairment Reversal. 1H FY21 Underlying adjusted for the impact of AASB16, Gain on Sale and Government Incentives received in the prior period. 2. Operating Expenses as a percentage of revenue n.m. – Not Meaningful 1H FY22 Investor Presentation 8

STRENGTHENED BALANCE SHEET UNDERPINNED BY NET CASH Net (Debt) / Cash2 Position STATUTORY

Net Cash $5m KEY INDICATOR 31 Dec 2021 30 June 2021 Change $1.3m Cash at Bank $6.3m $5.1m -22.9% $- Statutory Net Assets $15.8m $14.1m +11.5% ($5m) Value of Assets not on $11.0m $11.2m -7.1% balance sheet ($10m)

Net Debt Estimate Net Assets1 $26.8m $25.3m +5.8% ($15m) Estimate Net Assets (cents 6.3 cps 5.9 cps +5.8% per share)1 ($20m) Jun-2019 Dec-2019 Jun-2020 Dec-2020 Jun-2021 Dec-2021

Borrowings of $5.0m is below The value attached to internally Management valuation of the Estimated Net Assets has Cash at Bank resulting in a Net generated Property Management Property Management portfolio is increased 5.8% to 6.3 cents Cash2 position of $1.3m, a and Mortgage book is not calculated on a blended valuation per share. significant turnaround from prior recorded in the balance sheet. multiple of 3.65x on Q2 FY22 year positions and represents Annualised Property Management the strength of the balance fees ($18.0m) and 2.5x Trial sheet repair. Income relating to the Mortgage Book ($4.7m). Only $11.7m of this value is held on the Balance Sheet as an intangible asset.

1 This is a non A-IFRS measure 2. Excludes Convertible note held as Financial Liabilities 1H FY22 Investor Presentation 9

STRONG OPERATING CASH GENERATION OF $2.3M IN THE PERIOD Strong Operating Cash Flow has funded $1.2m of Investment activities including costs for an office refurbishment and short term working capital advances.

$2.3m Operating Cash Generation

1: This is a non A-IFRS measure 1H FY22 Investor Presentation 10

Industry Highlights

1H FY22 Investor Presentation 11

56% of Australian Household Wealth is held in Residential Housing with $7.4 Billion annual addressable market

Residential $9.6T Real Estate

$3.4T Australian Superannuation

$2.9T Australian Listed Stocks

$1.0T Commercial Real Estate

653,009 $494.6Bn $7.4 Bn Sales in 2021 Gross Value of Sales in 2021 Total Annual Addressable Market* (GCI)

Source: CoreLogic, RBA, APRA, ASX * Assessed at 1.50% Average Commission Rate of Gross Sales Volume of $494.6Bn. 1H FY22 Investor Presentation 12

NATIONAL HOUSE APPROVALS Following the expiry of HomeBuilder, house approvals have adjusted downwards but still remain above the decade average. Record high price differences between Units and Houses in key markets is resulting in a recovery 12,000 in the Unit market due to affordability, with new Unit approvals returning 10,000 towards their decade average. Decade 8,000 Average Houses

6,000 Decade Average 4,000 Units

2,000

DEC DEC DEC DEC DEC DEC 11 13 15 17 19 21

Units Houses

Source: CoreLogic 1H FY22 Investor Presentation 13

ROLLING SEVEN DAY COUNT OF CMA ACTIVITY EXCEEDS PRIOR YEAR CMA’s are a real estate industry acronym for Comparative Market Analysis – an RP Data tool that shows comparative recent sales to a property.

CMA’s are an indicator of likely future listing volumes. The start of 2022 has seen strong uplift on prior year volumes, with the week of the 13th February generating 23% more activity than this time last year.

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2019 2020 2021 2022

Source: CoreLogic 1H FY22 Investor Presentation 14

INVESTOR PARTICIPATION Portion of new lending for investment housing (excluding refinance)

Investor participation remains well below the 5 year average at 31.5% of new lending volume.

While investor lending is still growing 45% at 2.4% in December, strong owner occupier lending of 5.3% in December means investors made up a smaller 40% proportion of lending through December. 5 Year Average 35% 34.9%

30% 31.5%

25%

20%

DEC 05 DEC 07 DEC 09 DEC 11 DEC 13 DEC 15 DEC 17 DEC 19 DEC 21

Source: CoreLogic 1H FY22 Investor Presentation 15

LOANS GREATER THAN A 90% LOAN TO VALUE RATIO (LVR) 14.1% 13.1% 12.7% Over recent quarters, the % of

12.0% 12.0% 12.0% 12.4% loans originated with an LVR greater than or equal to 90% has 11.7% 11.6% 10.8% reduced for both investors and owner occupiers. This shows some restraint by financial institutions 9.7% which is key, given that regulators and policy makers are closely monitoring lending standards.

5.1% 5.2% 4.5% 4.5% 4.6% 4.5% 3.9% 2.8% 2.8% 3.4% 2.9%

Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21

INVESTORS OWNER OCCUPIERS

Source: CoreLogic 1H FY22 Investor Presentation 16

SUMMARY OF CAPITAL CITY 2022 FORECASTS 2022 is expected to be a more moderate year for price growth across key capital markets.

There is consensus across the Big 4 10% 10% banks that Brisbane will be the strongest market for price growth.

5% 5%

0% 0% CBA ANZ WESTPAC NAB

MELBOURNE SYDNEY BRISBANE PERTH

Source: CoreLogic 1H FY22 Investor Presentation 17

Outlook

1H FY22 Investor Presentation 18

OUTLOOK

Transaction volumes Focus on further Continued growth in Optimisation of expected to remain geographical regions Agent numbers across operational systems to strong, despite expected and penetration of the country. ensure a solid platform subdued price growth in suburbs to grow to service future growth 2022. We forecast National market and take advantage of National price growth to share and earnings. economies of scale. be 4-6%.

1H FY22 Investor Presentation 19

Appendix

1H FY22 Investor Presentation 20

PROFIT & LOSS STATEMENT

UNDERLYING1 STATUTORY 1H FY22 1H FY21 Change 1H FY22 1H FY21 Change Revenue $35.56m $29.45m 21% $35.56m $29.45m 21% Other Income $0.21m $0.27m -22% $0.21m $0.59m -64% Cost of Sales ($22.70m) ($18.81m) 21% ($22.70m) ($18.81m) 21% Gross Profit $13.06m $10.91m 20% $13.06m $11.23m 16% Operating Expenses ($10.93m) ($9.30m) 17% ($10.02m) ($7.55m) 33% EBITDA $2.14m $1.60m 33% $3.05m $3.68m -17% Depreciation and Amortisation ($1.92m) ($2.01m) -4% ($2.69m) ($2.79m) -4% Share-based payments expense ($0.38m) $- n.a ($0.38m) $- n.a Impairment recovery $- $- n.a $0.40m $- n.a Profit on Sale of Asset $- $- n.a $- $0.33m n.m EBIT ($0.17m) ($0.41m) -59% $0.37m $1.22m -70% Net Finance income/(expense) $0.15m ($0.12m) -228% $0.02m ($1.44m) n.m Net Profit/(Loss) Before Tax ($0.01m) ($0.53m) n.m. $0.40m ($0.22m) n.m Income Tax Benefit $0.73m $0.61m 19% $0.85m $1.05m -19% Net Profit After tax $0.72m $0.09m 743% $1.25m $0.83m 50%

1. 1H FY22 Underlying adjusted for the impact of AASB16 Leasing Standard and Impairment Reversal. 1H FY21 Underlying adjusted for the impact of AASB16, Gain on Sale and Government Incentives received in the prior period. n.a – Not Applicable n.m – Not Meaningful 1H FY22 Investor Presentation 21

BALANCE SHEET STATUTORY 31 Dec 2021 30 June 2021 Change Cash at bank $6.26m $5.10m 23% Other Current Assets $12.49m $8.68m 44% Non Current Assets $29.83m $31.49m -5% Total Assets $48.59m $45.26m 7% Total current liabillities ($18.85m) ($15.59m) 21% Total Non current liabilities ($13.97m) ($15.54m) -10% Total Liabilities ($32.82m) ($31.12m) 5% Net Assets $15.77m $14.14m 12% Assets not on balance sheet1 $11.03m $11.19m -1% Estimated Net Assets2 $26.79m $25.32m 6%

1: Property Management Portfolio Management Valuation calculated on a blended valuation multiple of 3.65x on Q2 FY22 Annualised Property Management fees ($18.0m) and 2.5x Trial Income relating to the Mortgage Book ($4.7m). Only $11.7m of this value is held on the Balance Sheet as an intangible asset. 2: This is a non A-IFRS measure 1H FY22 Investor Presentation 22

CASHFLOW STATEMENT

1H FY22 1H FY22 1H FY21 (Underlying)* (Statutory) (Statutory) (Pre AASB16)^ (Post AASB16) (Post AASB16)

EBITDA $2.14m $3.05m $3.68m Change in net working capital $0.58m $0.66m ($0.23m) Net interest Paid ($0.31m) ($0.31m) ($0.88m) Net Cashflow from Operating Activities $2.41m $3.40m $2.57m Purchase of property, plant and equipment ($0.40m) ($0.40m) ($0.07m) Purchase of intangibles ($0.06m) ($0.06m) $- Deposit for bank guarantees ($0.11m) ($0.11m) $- Net Loans to other entities ($0.67m) ($0.67m) $- Net cash received on disposal of asset group $- $- $2.62m Net cash (used in) / received from investing activities ($1.24m) ($1.24m) $2.55m Payment of principal portion of lease liabilities $- ($0.99m) ($0.99m) Repayment of borrowings $- $- ($3.56m) Net cash used in financing activities $- ($0.99m) ($4.55m) Net increase in cash and cash equivalents held $1.17m $1.17m $0.57m Cash and cash equivalents at the beginning of the half-year $5.10m $5.10m $2.72m Cash and cash equivalents at the end of the half-year $6.26m $6.26m $3.29m

* Underlying EBITDA adjusted for the impact of AASB16 and Government Incentives received in the prior period ^ This is a non A-IFRS measure 1H FY22 Investor Presentation 23

Geoff Lucas Managing Director & CEO geofflucas@theagency.com.au LinkedIn: www.linkedin.com/in/geoff-lucas

David Tasker Chapter One Advisors dtasker@chapteroneadvisors.com.au

1H FY22 Investor Presentation 24

DISCLAIMER

NOT AN OFFER This presentation is for information purposes only. This political and social uncertainties and contingencies; presentation does not comprise a prospectus, product involve known and unknown risks and uncertainties disclosure statement or other offering document under that could cause actual events or results to differ Australian law (and will not be lodged with the materially from estimated or anticipated events or Australian Securities and Investments Commission) or results reflected in such forward looking statements; any other law. and may include, among other things, statements SUMMARY INFORMATION regarding estimates and assumptions in respect of prices, costs, results and capital expenditure, and are This presentation does not purport to be all inclusive or or may be based on assumptions and estimates to contain all information about the Company or any of related to future technical, economic, market, political, the assets, current or future, of the Company. This social and other conditions. presentation contains summary information about the Company and its activities which is current as at the The Company disclaims any intent or obligation to date of this presentation. The information in this publicly update any forward looking statements, presentation is of a general nature and does not whether as a result of new information, future events purport to contain all the information which a or results or otherwise. prospective investor may require in evaluating a The words “believe”, “expect”, “anticipate”, “indicate”, possible investment in the Company. “contemplate”, “target”, “plan”, “intends”, “continue”, The Company does not undertake to provide any “budget”, “estimate”, “may”, “will”, “schedule” and additional or updated information whether as a result similar expressions identify forward looking of new information, future events or results or statements. otherwise. All forward looking statements contained in this FORWARD LOOKING STATEMENTS Presentation are qualified by the foregoing cautionary statements. Recipients are cautioned that forward Certain statements contained in this presentation, looking statements are not guarantees of future including information as to the future financial or performance and accordingly recipients are cautioned operating performance of the Company and its not to put undue reliance on forward looking projects, are forward looking statements. Such forward statements due to the inherent uncertainty therein. looking statements: are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently 1H FY22 Investor Presentation 25 subject to significant technical, business, economic, competitive,