End of Year Results Presentation - 16th June 2016
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I can honestly say the service I received
from Emma and Purplebricks was
fantastic. It was exactly what I had
hoped for - the personal service of the
high street (better in fact) but also far
more convenient, not to mention a
fraction of the price.
Caitlin McLoughlin
End of Year Results Presentation
16th June 2016
Today’s agenda
1. Business Highlights - Michael Bruce
2. Financial Highlights - Neil Cartwright
3. Strategic Overview - Michael Bruce
4. Summary
No. 1 Winner Winner Shortlisted Shortlisted
Startups 100 List Tech Business of the Year 2015 Innovative Company of the Year
Innovative Business of the Year 2015
Business of the Year 2014
2
1. Highlights
3
Business Highlights
Revenue up 448%
Local Property Experts Every Local Property Sold and
Expert to be granted Current SSTC
increased by completed on
pipeline
share options
159% on a long term £2.766 bn £1.697 bn
to 205 (2015: 79) incentive scheme (2015: £832m)
Ended year with Current monthly rate Conversion from Average period
instruction to
2,827 of sales agreed of
sale agreed over
to exchange of
contracts
instructions 2,386
77% 56 days
1 2
in April 2016 (May 2016)
Online market share Most reviewed estate Currently over Intention to launch
increased to agent in the UK with over
1.23 m Purplebricks in
62% 5,800 Australia
3 4
monthly visits to our
(2015: 41%) reviews on Trustpilot website (2015: 0.44m) a £3.3bn market
1
Percentage against all instructed properties April 2015 - March 2016. This may represent the minimum conversion assuming those properties still on the market sell hereafter. 2Source - My Home Move (the largest conveyancing firm in the UK)
Period from contracts issued to exchange of contracts. 3Period week ending 5 June 2016. 4Period ending 12 June 2016. 4
2. Financial review
5
Financial Highlights
Revenue growth Gross profit Average revenue
+448% +427% £30.5 m per instruction
to £18.6m to £10.6m
Cash
(2015: £4.6m)
£901
(2015: £3.4m) (2015: £2.0m) (2015: £703)
1 Adjusted EBITDA
1
Loss before tax The basic and
Adjusted EBITDA diluted loss per
pre marketing costs increased to
(£9.7 m) £3.2 m (£11.9 m)
share increased to
(£0.12)
(2015: (£5.3m))
(2015: (£1.8m)) (2015: (£5.4m)) (2015: (£0.03))
Defined by the Group as (loss)/profit before tax, depreciation, amortisation, net non recurring fund raising / IPO costs and share based payment charges.
1
6
Income statement
FY 2016 FY 2015 % Variance • Strong sales growth as a result of:
£m £m - National footprint in H2 2016
Revenue 18.6 3.4 +448% - Growth in LPE numbers to 205 by end of April 2016
Cost of sales (8.0) (1.4) +479%
Gross Profit 10.6 2.0 +427% • Gross margin of 57% reflecting proportional growth of
GP% 56.9% 59.2% instructions in period
Sales and marketing costs (12.9) (3.5) +272%
• Sales and marketing costs grew at a slower rate than turnover
Administration expenses (9.6) (3.9) +142%
as we expanded from five regions in FY 2015 to 10 in FY 2016
Loss before tax (11.9) (5.4) +119% • Operational gearing improves:
- Adjusted EBITDA pre-sales and marketing costs improved to
Depreciation and amortisation 0.1 0.0 +153%
£3.2m profit in FY 2016 (FY 2015: £1.8m loss)
Share based payments 0.6 0.1 +468%
Fundraising costs 1.5 - • One-off fundraising costs of £1.5m included in administration
expenses
Adjusted EBITDA (9.7) (5.3) +83%
Rebased Adjusted (£0.10) (£0.03)
EBITDA loss per share
(basic and diluted)
Notes
1. Adjusted EBITDA is defined by the Group as loss/profit before tax, depreciation, amortisation, net finance costs and Share based payments charge.
2. Certain financial data have been rounded. As a result of this rounding, the totals of data presented in this document may vary slightly from the actual arithmetic totals of such data.
7
Revenue growth driven by national rollout and LPE recruitment
£M
• Revenue growth of 448% to £18.6m (FY 2015: £3.4m)
20
• Strong increase in instructions volume
16 18.6
• Instructions complemented by additional services:
12 Growth of
448% - Accompanied viewings
8
- Premium display upgrade
4 - Energy Performance Certificates (EPCs)
3.4 - Conveyancing
0
FY 2015 FY 2016 - Mortgages
• Average revenue recognised per instruction increased by 28.2% to £901*
£M in 2016 (2015: £702)
12
• H2 2016 revenue increase of 58.3% to £11.4m vs. H1 2016 (£7.2m)
10 11.4
+ 58.3%
• Deferred revenue from instructions not live of £780k at April 2016
8
6 • Completion revenue pipeline £2.5m at April 2016
7.2
4
2
0
H1 2016 H2 2016 * Average revenue per instruction is calculated on estate agency sales revenue including conveyancing completions
over the number of recognised instructions.
8
Gross Profit
59.2%
£M
12 56.9%
10 • FY 2016 Gross Profit increased by 427% to £10.6m
10.6
8 • H2 2016 Gross Profit increase of 58.5% to £6.5m (H1 2016: £4.1m)
6
4
2
2.0
0
FY 2015 FY 2016
£M
8 57%
56.4%
6
6.5
4
4.1
2
0
H1 2016 H2 2016
Gross profit GM
9
Cost contribution analysis
Year ended 30 April (£m) FY 2016 FY 2015 Growth • 2016 administration expenses were £7.4m, an increase of
Administration costs 7.4 3.8 95% £3.6m as the company invested in the infrastructure to
deliver growth:
% of sales 40% 112%
- Establishment of Data Sales Unit
Sales and marketing costs 12.9 3.5 272% - Bolstering LPE growth and effectiveness
% of sales 69% 103% - Enhancing marketing capabilities
- Provision of first class technical and development resources
Adjustments 2.2 0.1 in house
22.5 7.4 - Office relocation in Solihull
• Despite investment, as a percentage of sales these expenses
Evolution of administration costs and sales and marketing expenses as a % of sales fell to 40% (2015: 112%) demonstrating operating leverage
220 • Sales and marketing costs as a percentage of sales decreased
200
103%
Administration costs to 69% (2015: 103%)
Sales and marketing
expenses • Administration costs grew more slowly in H2 2016
crystallising operational gearing
69%
100 112% • Adjustments of £2.2m are:
- £1.5m non recurring funding costs
40%
- £0.6m (FY 2015: £0.1m) share based payment charges
2015 2016 - £0.1m amortisation and depreciation
10Cash flow statement
2016 2015 • Strong working capital management created distance between
£m £m £11.9m loss and £7.1m cash outflow
Adjusted EBITDA (9.7) (5.3)
• Working capital movements aided by:
- Clients paying fees on instruction
Movement in working capital 2.6 0.3
- Clients taking advantage of deferred payment option provided
Movement in taxation 0.0 0.3
by Close Brothers
- Supplier credit facility post listing
Net cash flow from operations (7.1) (4.7)
• £35m gross funds raised in 2016:
Cash flow from investment activities (0.5) (0.2)
- £10m in July 2015 via placing
- £25m in December 2015 on listing
Cash flow from financing activities 35.0 8.1
gross of costs
Cash flow from financing activities - (1.5) 0.0 • No corporation tax payments in 2016. Expected to utilise
costs of fundraising accumulated losses until 2018
Net increase in cash 25.9 3.2
Cash at beginning of year 4.6 1.4
Cash at 30 April 2016 30.5 4.6
11Strong balance sheet
2016 2015
£m £m • Strong balance sheet with £30.5m cash as at 30 April 2016
Intangible assets 0.4 0.1
• No debt financing requirement
Property, plant and equipment 0.2 0.1
Non current assets 0.6 0.2 • Investment in intangibles represents development work
performed:
Trade and other receivables 2.9 0.8
- Platform customisation for Scotland
Cash and cash equivalents 30.5 4.6 - Provision of Purplebricks App (iOS and Android)
Current assets 33.4 5.4 • Trade and other receivables includes:
Total assets 34.0 5.6
- Trade debtors £1.0m
- Accrued income £0.4m
Trade and other payables (5.2) (1.1)
Deferred income (0.8) (0.1) • Trade and other payables includes:
Total liabilities (6.0) (1.2) - Trade creditors £2.7m
• Balance sheet reconstructed prior to admission to AIM in
Share capital 2.4 0.0 December 2015
Share premium 25.9 12.3
Share based payments reserve 0.4 0.1
Retained earnings (0.6) (8.0)
Shareholders’ funds 28.0 4.4
Equity and liabilities 28.0 4.4
12FY 2017 Guidance
• The UK business will move into profit in the current financial year
• LPE numbers as at 30 April 2017 - 360
• No corporation tax payable
• Overheads + £1m over 2016 (further investment in Data Sales Unit)
• Share based payment charge £1.5m
• Australia - separate subsidiary
• Likely exercise of options and warrants in 2017 is 7.6m shares
133. Strategic Overview
14The Next Generation Estate Agent
LPE Growth
Launch in Grow our
Australia Brand
THE
CUSTOMER
New Products Build upon
& Services Technology
Grow Feedback & Customer Support
Customer Loyalty & Data Sales Unit
15Recruiting first class Local Property Experts
16Increase our LPE footprint
Growth of LocalGrowth ofGrowth
Local
Growth
Property Property
Growth
Growth
of
Experts Local
ofofLocalExperts
Local
ofProperty
Local
Property
Property
Property ExpertsGrowth of Local Property Experts
Experts
Experts
Experts
250
200
150
100
50
0
Employed LPEs Licenced LPEs LicencedLPEs
Sub licenced LPEs
LicencedSub
Licencedlicenced
Licenced
LPEs
Licenced
LPEs LPEs
LPEsSub
LPEsSub
licenced
Sub
licenced
Sub
licenced
LPEs
licenced
LPEs
LPEsLPEs Licenced LPEs Sub licenced LPEs
17Recruitment and Training
Andrew Vass
Recruitment &
Training Director
Regional Recruitment and Training Directors Head of Recruitment
Jamie Young Adam Docwra Tom Kirk Jim Harris Debbie Fennell
former LPE former LPE former LPE former Countrywide former LPE
• Increased the recruitment team
• Recruit the best - bulk of LPEs from the most successful corporate and independent estate agents
• Quality - most recruits are Branch Valuer, Branch Manager, Senior Branch Manager or Area Manager status
• 4 stage recruitment process, 11 day training programme
• 245 LPEs by end of June 2016, 98% self-employed
18Selling houses and supporting customers is what we do
Sold and Conversion from Current monthly rate Average period
Current SSTC
completed on instruction to of sales agreed of to exchange of
pipeline
sale agreed over contracts
£2.766 bn £1.697 bn 2,386
77% 56 days
1 2
(2015: £832m) (May 2016)
Percentage against all instructed properties April 2015 - March 2016. This may represent the minimum conversion assuming those properties still on the market sell hereafter.
1
Source - My Home Move (the largest conveyancing firm in the UK) Period from contracts issued to exchange of contracts.
2
A sample of LPE performance vs. local competition*
LPEs INSTRUCTIONS SOLD LPEs INSTRUCTIONS SOLD
JP Downes/Jenna Cable/ David Catchpole/Joe Pearson/
Adele Hollowood/Suzanne Regan 1st 1st Daniel Freeman 1st 1st
Emma O'Sullivan/Paul Crump/ Samanth Sullivan/Gearoid Hunt/
Claire Hassell 1st 1st Donna Jones/Rhian Morgan 1st 1st
Alan Hough/Ben Thompson 1st 1st Paul Brown/Chris Evans/Kerry Neal/
Josh Carline 1st 1st
Lora Hollingworth/Jennifer Davis/
Duncan Roe/Michelle Tromans 1st 1st Mathew Loach/Dave Evans 1st 2nd
Kevin Lezar/Paul Parnell/ Sid O'Bagi/Rob Twining/Tom Evans 1st 2nd
David Garvey/Glen Conn 1st 1st
Mark Williams/Jamie Townsend/Kim Jones 1st 2nd
David Roberts/Graham Colliss 1st 1st
Phil Cook/James Skelding/Clare Hindes 2nd 1st
*Rightmove statistics - covers various areas: London, Central, South, South West, Wales and Yorkshire
19Selling property is what we do
Sample Local Property Experts instruction to sale conversion percentage 1
Andrew Butler 171% Daniel Freeman 109%
Dean McCluskey 140% David Roberts 108%
Emma O'Sullivan 120% Scott Tearall 108%
James Humphries-Stone 114% Mark Slade 109%
Adam Latimer 114% Hayley Gill 109%
Simon Taylor 113% Dan Firth 108%
Kash Dhaliwal 109% Jamie Townsend 108%
Sample independent sold sign analysis 2
1
Research independently produced by For Sale Sign Analysis.
2
Percentage of LPE stock SSTC compared to number of instructions January to May 2016.
20Building a scalable business
Paul Brown Instructions in 2016
120
Paul Brown 100
Age: 47
80
Area: Sheffield and Doncaster
60
Previously: 14 years at Countrywide
Team: 6 LPEs 40
Recruiting: 2 LPEs and 1 LLE 20
0
January February March April May
Paul’s Territory Team
Jemma Harris Paul Salkeld Josh Carline
Age: 29 Age: 48 Age: 27
Joined: May 2016 Joined: February 2016 Joined: July 2015
Previously: William H Brown (Sequence) Previously: Independent agent Previously: William H Brown (Sequence)
Industry experience: 9 years Industry experience: 16 years Industry experience: 5 years
Kerry Neal Chris Evans James Williams
Age: 32 Age: 29 Age: 28
Joined: April 2016 Joined: April 2016 Joined: May 2016
Previously: Haart Previously: Independent agent Previously: Countrywide
Industry experience: 11 years Industry experience: 7 years Industry experience: 4 years
“The help and advice provided by Paul Brown is second to none and nothing
seems to be too much trouble. Paul has provided me with guidance on the
online sales process and a rapid response to all of my questions.”
Michelle Boughton
21Our LPEs are much more productive...
The 15 ‘No’s:
No commute to work No sending property particulars
No morning meeting No chasing approval of property particulars
No corporate structure No getting properties live onto the internet
No canvassing No ordering boards or EPCs
No booking valuations No seeking feedback or distributing feedback
No registering applicants after viewings
No arranging viewings No impact from high industry staff turnover rates
No chasing instructions No window dressing
A Local Property Expert and technology makes for the perfect estate agency experience
22Selling and customer support
“We are a full service estate agent who provides dedicated help and support throughout”
Fully inclusive 24/7:
Combining a Local Property Expert, Central Property Experts, Post Sales Support and Integrated Conveyancing
Memish Isabel Stephanie Nevdesh
Huseyin Bruce Walker Gill
Head of National
Local Property Head of Post
Customer Partnership
Expert Sales Support
Support Manager
• Highly dedicated and committed to • Qualified Conveyancing Lawyer with • Knows Purplebricks and estate agency • Heading up customer experience during
customer experience 10 years concentrated experience inside out - former Local Property the conveyancing process
Expert with 12 years industry experience • 12 years high level experience
• 15 years of industry experience • Highly successful and dedicated task force
• Previously a successful Branch Manager • Works with panel lawyers
• Strong bond with each customer • Not just chasing a traditional % of
for Countrywide & Area Manager for the
throughout – support available 24/7 pipeline • Concentrates on quality of service and
largest independent agent in Merseyside customer KPI’s
• Highly integrated relationship with the • Plays a significant part through an
• Skilled team of Central Property Experts • Increasing conversion to Purplebricks
customer, customer support, post sales integrated relationship with the lawyers
that gets our customers to exchange of • Supporting customers with all aspects recommended conveyancers
support and the lawyers
contracts in 56 days* of the transaction • Working on other strategic relationships
“Memish was very knowledgeable “Post Sales Support has been “Very professional and friendly, took “Also love the eZie Conveyencing
of the local property market and on brilliant, very proactive, tenacious time out to explain each step of the service. The web based set up makes
hand throughout, even on his day off.” and resourceful.” process during the call.” for excellent communications.”
Tim Holt Anita Tricker Sophie Kevin Gilroy
*Source: Myhomemove (the largest conveyancing firm in the UK) Period January – May 2016 from contracts issued to formal exchange of contracts
23Data Sales Unit
“I received a call from a lovely gentleman called Lewis. He
assisted me to book a viewing and explained everything fully.
He didn’t pressure me when I wasn’t ready yet which made me
feel more comfortable and I feel like I would definitely use
them if I do sell my property.”
Stephanie Walker Sabrina Patel
Head of Customer Support & Data Sales Unit
• Taking the data of buyers and sellers and offering them our products and services
• Winning valuations and revenue through dedicated people in dedicated roles
2 out of 7
valuations
100% 87% Brought all
customer
Recruited and
trained over
booked
by Data Sales Unit
increase in valuations
booked since
increase in
instructions since support 70
January 2016 January 2016 in house dedicated people
24Purplebricks on Trustpilot
Rebecca Brown
Head of Customer Experience
over
5,800
independent customer
rated
9.4
Excellent
9x
more reviews than nearest
reviews - up 66% since competitor - up 50% since
January 2016 January 2016
I would recommend Purplebricks in the future It’s the first time I used an online company A refreshing approach to traditional estate
to friends and family for their efficient service and although I had initial reservations about agency. Extremely good value and a very
and support. My dealings are with both Jenna how it would work, I quickly realised how easy conscientious, prompt and professional service
and JP, both of whom are very supportive, at and efficient the service is! Being able to do throughout the whole process. It beggars belief
the end of the telephone and offer a “nothing is everything by email/online makes it super easy how anybody can now accept a commission
too much trouble approach”. and then I had a great agent. based agency arrangement.
Pat Bailey Laura Wadlow Steve Johnson
25Growing our brand
26Growing our brand
Purplebricks ranks third for top of mind awareness, just below Zoopla
Spontaneous brand awareness (Not showingPurplebricks is already a major national agency
61,000
60,000
No. of transactions (per annum)1
34,000
April 29,000
January
24,700 18,000
September
19,920
5,100 5,000
2,600
Countrywide Connells Purplebricks LSL Spicer Haart Foxtons Kinleigh Savills
1
Purplebricks figure is based on annualised number of instructions received in April 2016. The other figures have been obtained from publicly available infor-
mation or estimated by management, may reference different 12 month periods and are based on completed sales numbers.
2801/06/15
5/15 01/06/15
01/07/1501/07/15 01/08/1501/08/15
01/09/1501/09/15
01/10/1501/10/15
01/11/1501/11/15
01/12/1501/12/15
01/01/1601/01/16
01/02/1601/02/16
01/03/1601/03/16
01/04/1601/04/16 7 days 05/06/16
01/05/1601/05/16 7 days
#VALUE!
05/06/16
#VALUE!
#VALUE! #VALUE!
#VALUE! #VALUE!
#VALUE! #VALUE!
#VALUE! #VALUE!
#VALUE! #VALUE!
#VALU
16% 13% 13% 12% 12% 11% 11%9% 9%9% 9%9% 9%7% 7%
11% 11%9% 9%
12% 12%12% 12%11% 11%8% 8%
0% 0% 0% 0% 0% 1% 1%5% 5%2% 2%3% 3%0% 0%1% 1%3% 3%1% 1%3% 3%4% 4%4% 4%
6% 5% 5% 5% 5% 4% 4%4% 4%3% 3%2% 2%3% 3%3% 3%2% 2%2% 2%3% 3%2% 2%2% 2%
Online market share
9% 9% 9% 7% 7% 7% 7%6% 6%6% 6%5% 5%4% 4%6% 6%6% 6%7% 7%7% 7%6% 6%6% 6%
10% 11% 11% 13% 13% 13% 13%12% 12%15% 15%16% 16%13% 13%13% 13%11% 11%11% 11%7% 7%8% 8%7% 7%
44% 50% 50% 52% 52% 53% 53%55% 55%56% 56%58% 58%64% 64%58% 58%54% 54%56% 56%57% 57%58% 58%62% 62%
14% 11% 11% 11% 11% 10% 10%9% 9%8% 8%5% 5%8% 8%8% 8%14% 14%9% 9%7% 7%7% 7%7% 7%
0% 0% 0% 0% 0% 0% 0%0% 0%0% 0%1% 1%0% 0%0% 0%1% 1%2% 2%3% 3%4% 4%3% 3%
00%100% 100%100% 100% 100% 100%
100% 100%
100% 100%
100% 100%
100% 100%
100% 100%
100% 100%
100% 100%
100% 100%
100% 100%
100% 100%
FY
162016Q3 FY
Q42016
FY 2016
Q4 FY
week Purplebricks’ position within the Top 7 online estate agencies
20161 June
week
2016
1 June 2016
815 717 7171,643 1,643 96 96
245 99 99 315 315 50 50
311 190 190 373 373 19 19
549 391 3911,001 1,001 Share 71 of properties
71 for sale Quarter on quarter market share
,1261,047 1,0471,420 1,420 84 84
,6424,447 4,4478,422 8,422 737 737
QuarterQuarter
on Quarter
on Quarter
market market
share share
746 550 5501,468 1,468 84 84 70% 70%
7,401
No. of properties on the market
19 32 32 333 333 41 41
,4537,473 7,473 14,836 14,836 1,182 1,182
60% 60%
FY
162016
Q3 FY
Q42016
FY 2016
Q4 FY
week
20161 June
week
2016
1 June 2016 50% 50%
10% 10% 10% 11% 11% 8% 8%
3% 1% 1% 2% 2% 4% 4% 40% 40%
4% 3% 3% 3% 3% 2% 2%
2,703
6% 5% 5% 7% 7% 6% 6%
2,150
13% 14% 14% 10% 10% 7% 7% 30% 30%
55% 60% 60% 57% 57% 62% 62%
1,732
9% 7% 7% 10% 10% 7% 7%
1,415
1,037
20% 20%
0% 0% 0% 2% 2% 3% 3%
664
541
10% 10%
0% 0%
Q1 FY 2016Q1 FY 2016 Q2 FY 2016Q2 FY 2016 Q3 FY 2016Q3 FY 2016 Q4 FY 2016Q4 FY 2016 week 1 Juneweek
20161 June 2016
icks v
oo mpl
e k o
or epil che
d rty opa eMoov.co.uk
eMoov.co.uk E-Prop Limited
E-Prop Limited Hatched.co.uk
Hatched.co.uk
br w e Y
e em Si et T at rop
pl
House Network
House Network Housesimple
Housesimple
Online Estate
Online
Agents
Estate Agents
Purplebricks.com
Purplebricks.com
e N H P
r us se sy
Pu Ho u e a Tepilo Limited
Tepilo Limited Yopa Property
YopaLtdProperty Ltd
Ho
Source: Zoopla. Figures represent residential properties for sale listed as at 02/06/2016.
For commercial reasons we withdraw properties from Zoopla when SSTC.
29Growing our brand
Google search traffic vs. high street agents
Search terms
purplebricks foxtons connells haart
purple bricks foxtons.com connells.com haart.com
purplebricks.com
Google search volumes Source: Google Trends Period: April 2015 - May 2016
100
80
60
40
20
30Growing our brand
Google search traffic vs. online agents
Search terms
purplebricks emoov tepilo housesimple.com easyproperty.com
purple bricks emoov.com tepilo.com house simple easy property
purplebricks.com housesimple easyproperty
Google search volumes Source: Google Trends Period: April 2015 - May 2016
100
80
60
40
20
31Growing our brand
TV Campaigns Campaign
Launch campaign - ‘Expert’ ‘Good vs. Cheap’ campaign
‘Oil Painting’ campaign ‘An estate agent you can love’ campaign
32Building on our market leading technology
33Building on our market leading technology
Website
Visits Unique Visitors Page Views
1.23m 616,172 7.0m
(April 16) (April 16) (April 16)
Up 371% Up 366% Up 339%
Our Technology
Advanced Changes New Features
10,031 2,918
34Building on our market leading technology
The Purplebricks SELLERS App Our tech and the future
Launched 05 April 2016
• “The Purplebricks BUYERS App”
Active Users 10,151 • Creating a fantastic experience
Downloads 11,838 for BUYERS
Sessions in • New features and development
last 30 days 262,123 for SELLERS
• New products and services to be
integrated
• Tech Australia
No advertising or marketing of the App as yet
35Launch Australia - Background
• Population 23,100,000 • Estate Agents: 36,000 (18,000 UK)
• Average house price £306,000 ($612,000 AUD) • Two methods of sale: Private treaty & Auctions
• Estate Agents fees: Approximately £3.3 billion • Similar market to UK – Market share:
market ($6.75 billion AUD) - Ray White 8%
• Approximately 500,000 sales per annum - LJ Hooker 4.8%
- McGrath 3.2%
• Approximately 700,000 properties to market
• No Purplebricks model
• 87% of sales in states of New South Wales,
Queensland, Victoria and South Australia • No Purplebricks Technology
• Average estate agents fees £6,000 ($12,000 AUD) • No hybrid estate agent like Purplebricks
• Marketing costs are extra – Average £2,500
($5,000 AUD)
36Launch Australia - The Opportunity
• Opportunity to be as BIG as the UK • Australian consumers have a significant appetite
for the Purplebricks proposition
• Low risk, low cost investment – launching
regionally • Completed an in-depth modelling and market
requirement process
• Maximum forecast cash investment of £10m
spread over a two year period • Adapted our market leading technology to fit the
Australian market
• Potentially significant returns
• Marketing strategy and plan completed
• Time to breakeven less than 2 years
• CEO and first line management team in place
• Conducted an extensive independent consumer
research programme via The Leading Edge an • Recruitment & Training strategy finalised
award winning consumer research agency
374. Appendix
38Changing the landscape
The opportunity for the very best estate agents in the UK to be their own boss
We give our Local Property Experts
A BRAND ADVERTISING AN VALUATION FIRST CLASS 24/7
& MARKETING INFRASTRUCTURE OPPORTUNITIES TECHNOLOGY SUPPORT
Empowering them to create their own scalable, profitable business
39Combining people with technology
Technology that acts like the perfect professional estate agent partner
Reliable - never ill, never late, never on holiday, never sleeps, always works at their optimum level
Books their valuation
Arranges their viewings
Handles all of their instructions
Orders their EPC’s and boards instantly
Gets the property particulars approved and onto the property portals
Collects and provides their customers with feedback
Updates their customers on their marketing when they want to be updated
Provides advice when the customer needs it
Changes the price when required
Receives and negotiates offers
And they work 24 hours a day
Delivering on our promises
40Delivering cost effective value and first class service
What’s in it for the customer?
They pay a fraction of the cost of a traditional estate agent
They get a first class Local Property Expert who retains responsibility for delivering on the service
until they move home
Their house can be live on the market in under an hour anytime 24/7
We can undertake all the viewings for an additional fee
They get access to the Purplebricks eZie platform
Access to their LPE and they can speak to someone 24/7
They can instantly see everything that is happening with the sale of their property
App being launched for further convenience
They can use our mortgage and conveyancing services, purchase insurance and other products
and services
They get support from our Post Sales Support team once their house is sold through to them
moving home
41Estate agents want to be LPEs
All Local Property Experts go through a rigorous training and recruitment programme
They are some of the most experienced estate agents in the industry who want to run their own
businesses
Most are self-employed (90% soon to be 98%)
They have their own postcode to postcode region
They engage people within their territory to act as a Local Property Expert (subject to the same
recruitment and training programme) – continuing the plan of becoming ultra local
They build their business and grow capital worth in their territory
They earn more money
They are more productive
Technology acts as the custodian for ensuring we deliver first class customer service
42Disclaimer
This presentation includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms “believe”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”,
“may”, “will”, or “should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include
matters that are not historical facts and include statements regarding the Company’s intentions, beliefs or current expectations.
Any forward-looking statements in this presentation reflect the Company’s current expectations and projections about future events. By their nature,
forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from
those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and
financial effects of the plans and events described herein. Forward-looking statements contained in this presentation regarding past trends or activities
should not be taken as a representation that such trends or activities will continue in the future. You should not place undue reliance on forward-
looking statements, which speak only as of the date of this presentation. No representations or warranties are made as to the accuracy of such
statements, estimates or projections.
Please note that the Directors of the Company are, in making this presentation, not seeking to encourage shareholders to either buy or sell shares in the
Company. Shareholders in any doubt about what action to take are recommended to seek financial advice from an independent financial advisor
authorised by the Financial Services and Markets Act 2000.
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