Top Banner
FY 2019 RESULTS PRESENTATION
27

190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

May 25, 2020

Download

Documents

dariahiddleston
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

FY 2019 RESULTSPRESENTATION

Page 2: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

Today’s agenda INTRODUCTION Vic Darvey

FINANCIAL REVIEW James Davies

STRATEGIC REVIEW Vic Darvey

Q&A

FY 2019 RESULTS PRESENTATION 2

Page 3: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

• Increase in UK profitability

• Made the decision to exit the Australian and US markets

• Significant opportunities to extend market leadership in both UK and Canada

• Healthy cash balance – post closure of AUS/US our business will be cash generative

• Strong foundations for second phase of growth

FY 2019 RESULTS PRESENTATION 3

FY 19 HIGHLIGHTS

© m

agnusnewsagency.com

Page 4: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

FY 2019 RESULTS PRESENTATION 4

FINANCIAL REVIEWJames Davies

Page 5: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

STRONG UK PERFORMANCEPROFITABLE IN A SHRINKINGMARKET

• Ancillary revenue represents 44%

of total, up 80bps

• Gross profit margin up 510bps;

up 70bps like-for-like

• Continued investing for growth

• Like-for-like adj. EBITDA increase

of £2.3m

• Improving marketing leverage

expected in FY 2020

+6%+9% +21% +65%

FY 19FY 18

69,8

92

£1,2

43

£90

.1m

64,3

76

£1,16

8

£74

.4m

£10

.2m

£6.2

m

FY 2019 RESULTS PRESENTATION 5

Instructions ARPI Revenue Adjusted EBITDA

Page 6: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

UK PROGRESSINSTRUCTIONS AND ARPI

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Apr-14

Jun-14

Aug-14

Oct-1

4

Dec-14

Feb-15

Apr-15

Jun-15

Aug-15

Oct-1

5

Dec-15

Feb-16

Apr-16

Jun-16

Aug-16

Oct-1

6

Dec-16

Feb-17

Apr-17

Jun-17

Aug-17

Oct-1

7

Dec-17

Feb-18

Apr-18

Jun-18

Aug-18

Oct-1

8

Dec-18

Feb-19

Apr-19

FY 2019 RESULTS PRESENTATION 6

£No.

ARPIInstructions won

Page 7: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

UK SCALE OPERATING LEVERAGE OVER TIME

UK CPI including portal costsUK Overheads as % of revenue

FY 2019 RESULTS PRESENTATION 7

0

20

40

60

80

100

120

140

%

FY 15 FY 16 FY 17 FY 18 FY 19

£

200

400

600

800

1,000

1,200

1,400

FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

Marketing as % of revenue

FY 1828.8%

FY 1733.5%

FY 1929.6%

Page 8: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

MARKET-LEADINGCANADIAN BUSINESSDRIVING SHARE OUTSIDE QUEBEC

• Completed acquisition 6 July 2018

Revenue

• Up 8% 9 mths yoy

• ARPI up 16% YoY

• Tough market conditions – new listings

down YoY across all Provinces

Gross profit margin 53%

Marketing costs

• Up 80% H2 on proforma prior year in

line with strategy

£(2.1)m

29,112

31,020

£776

£671

£23.7m

£22.0m

£1.1m

FY 2019 RESULTS PRESENTATION 8

Instructions ARPI Revenue Adjusted EBITDA

9 Mths FY 199 Mths FY 18

(6)% 16% 8% (190)%

Page 9: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

Remainder of CanadaQuebec

FY 2019 RESULTS PRESENTATION 9

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

August

September

Octo

ber

Novem

ber

Decem

ber

January

February

March

April

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

August

September

Octo

ber

Novem

ber

Decem

ber

January

February

March

April 400

900

1,400

1,900

2,400

August

September

Octo

ber

Novem

ber

Decem

ber

January

February

March

April

-

200

400

600

800

1,000

1,200

1,400

1,600

August

September

Octo

ber

Novem

ber

Decem

ber

January

February

March

April

CANADAGROWTH AND CONSISTENCY OF OPERATION

List

ing

sA

RP

I

FY19FY18

Page 10: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

AUSTRALIA ORDERLY EXIT FROM MARKET

• Size of prize was no longer deemed

attractive enough to justify further

investment

• Investment to date £41m, plus

closure costs between £6-8m

• Closure process proceeding –

residual property sales ahead of plan

• Standing by key obligations and

helping customers successfully

sell their properties

(20)% (5)% (4)% (43)%

£(17.9)m

3,64

8

4,54

4

£3,026

£3,170

£11.4

m

£11.9

m

£(12.5)m

FY 2019 RESULTS PRESENTATION 10

Instructions ARPI Revenue Adjusted EBITDA

FY 19FY 18

Page 11: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

USSTRATEGIC REVIEW RESULTS IN WITHDRAWAL

• Expanded too quickly

• A number of alternative business

models considered under a strategic

review

• Investment to date £53m, plus

initial cut of closure costs expected

to be between £4-6m

• Closing process expected to be

simpler than Australia

313% 39% 606% (103)%

£(33.1)m

2,98

7

724

£3,956

£2,851

£11.3m

£1.6

£(16.3)m

FY 2019 RESULTS PRESENTATION 11

Instructions ARPI Revenue Adjusted EBITDA

FY 19FY 18

Page 12: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

GROUP INCOME STATEMENT

Significant revenue growth

• Revenue up 55%

• Includes £23.7m from Canada

Gross profit

• Up £30.3m with margin

up 200bps

• Includes £12.6m from Canada

Adjusted EBITDA

• Loss of £43.1m for the year,

includes £10.2m of positive

adjusted UK EBITDA

FY 19£m

FY 18£m

Revenue 136.5 87.8

Gross margin % 58.5% 56.5%

Marketing costs (70.7) (42.1)

Operating loss (52.3) (27.8)

Adjusted EBITDA (43.1) (22.6)

FY 2019 RESULTS PRESENTATION 12

Page 13: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

CONSOLIDATED CASH FLOW BRIDGE

FY 2019 RESULTS PRESENTATION 13

0

20

40

60

80

100

120

140

160

£m

Cas

h at

30 A

pril

2018

M&

A

UK

EB

ITD

A

befo

re m

arke

ting

UK

mar

ketin

g

expe

nditu

reA

ustr

alia

& U

S EB

ITD

A

Can

ada

EBIT

DA

Wor

king

cap

ital,

cape

x, fi

nanc

e an

d ta

xC

ash

at 3

0 Apr

il 2019

152.8

(38.5)

36.9

(26.7)

(51.0) (2.1)(8.6)

62.8

Page 14: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

STRATEGIC REVIEWVic Darvey

FY 2019 RESULTS PRESENTATION 14

Page 15: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

To be the only place customers go to buy, sell and let theirhomes.

…we will achieve this byusing data and technology to enhance the service standards of the industry.

A BRANDON A MISSION

FY 2019 RESULTS PRESENTATION 15

Page 16: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

A STRONG DIFFERENTIATED CORE BUSINESS MODEL

BRANDLEADERSHIP

UNRIVALLED VALUE PROPOSITION

INNOVATIVEBUSINESSMODEL

• Clear brand leadership in UK with96% awareness

• Leading hybrid brand in Quebec

• Sell your home for a fair, fixed fee

• Complete transparency 24/7

• Most reviewed estate agent ever

• Differentiated, technology-led proposition driving businessmodel advantages

• Significant opportunity to scale

FY 2019 RESULTS PRESENTATION 16

Page 17: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

Instruct more

Unrivalled coverage

Withdraw less

Sell more

Sell fastest

Top in 7/13 regions

Convert more

Best price for vendors

Top market share in all main price bands

A POWERFUL DISRUPTIVE BUSINESS MODEL VALIDATED IN THE UK

The largestand best

performing estate agent

in the UK

Source: Twenty CI data – May 2019

FY 2019 RESULTS PRESENTATION 17

Page 18: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

AN ESTABLISHED BUSINESSWITH SIGNIFICANT OPPORTUNITIESOUTSIDE OF QUEBEC

Quebec

• Leading hybrid in Quebec with 20% listing market share

Remainder of Canada

• In January 2019 Ontario, Manitoba and Albertamarkets successfully transitioned to the Purplebricksbrand

• Purplebricks has quickly cemented a place of prominence in the market

• In just 5 months the PB brand has reached 24%unaided awareness (Ontario, Alberta, Manitoba) while the ComFree brand was at 6% unaided after 7 years

• Total opportunity is 4x Quebec in terms of annual listings and we remain optimistic about the opportunity

FY 2019 RESULTS PRESENTATION 18

Page 19: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

EXCITING MEDIUM TERMOPPORTUNITIES

OPPORTUNITY TO DRIVE LEVERAGE THROUGHLEADERSHIP AND SCALE

• Clear leadership and scale will drive margins

• Attractive unit economics

SIGNIFICANTOPPORTUNITY FORFURTHER INNOVATION

• Higher attachment rate of products in basket

• Higher engagement through My PB app

• Create longer lifetime value through PB Plus

TECHNOLOGYTRANSFORMING THE PROPERTY AGENTLANDSCAPE

• Consumer expectations continue to evolve

• Personalisation through machine learning

STABILISATION AND RECOVERY IN END MARKETS

• UK housing market resilience with returnto growth

• Continued willingness to use hybrid agents-5%

0%

5%

2019 2020 2021 2022 2023

UK HOUSING MARKET

FY 2019 RESULTS PRESENTATION 19

Page 20: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

SIGNIFICANT POTENTIAL AT SCALE IN OUR KEY MARKETS

NO. OF PROPERTY LISTINGS 1.5M 0.7M

POTENTIAL PURPLEBRICKS SHARE 10% 12%*

NO. OF TRANSACTIONS PER ANNUM 150,000 85,000

POTENTIAL ARPI £1,750-£2,000 £1,250-£1,400

POTENTIAL REVENUE £255M-£300M £105M-£120M

POTENTIAL EBITDA MARGIN 25-30% 20-25%

POTENTIAL EBITDA £65M-£90M £20M-£30M

FY 2019 RESULTS PRESENTATION 20

* 20%Quebec, 10% elsewhere

Page 21: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

OUR PRIORITIES FOR FY 20A LASER FOCUS ON OPERATIONAL EXCELLENCE

UNLOCK THE NEXT WAVE OF GROWTH AND EXTEND MARKET LEADERSHIP

BUILD ON THE POSITIVE MOMENTUM OF THIS MATURE BUSINESS

• Re-accelerate the growth of core by deliveringrapid innovation of the customer journey

• Increase LPE productivity by delivering greaterautomation and efficiency

• Start building the foundations of a real-time,mobile-enabled estate agent of the future

• Continue to automate the experience through technology and process improvements

• Maintain 20% market share in Quebec

• Increase brand awareness and market penetrationoutside of Quebec

FY 2019 RESULTS PRESENTATION 21

Page 22: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

WE ARE CONFIDENT OF LONG-TERM SUCCESSINITIAL THREE AREAS OF FOCUS

TO BE THE ONLY PLACE CUSTOMERS GO TO BUY, SELL AND LET THEIR HOMES

A brand famous for category-leading service at low fees

REAL-TIMEMOBILE-ENABLED

ESTATE AGENT OF THE FUTURE

BEST-IN-CLASS AGENTS SPENDING MORE TIME WITH

PEOPLE NOTPAPERWORK

DIGITALISING THECHAIN TO ACCELERATE

UNDERLYINGOPPORTUNITIES

By using data and technology to enhance the service standards of the industry

321

FY 2019 RESULTS PRESENTATION 22

Page 23: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

REAL-TIME MOBILE-ENABLEDESTATE AGENT OF THE FUTURE

Market leading app delivering best-in-class experience in the

palm of your hand

Higher engagement increasing basket attachment rates

Dynamic customer experiencebased on real-time analytics,

AI and smart CRM

1

Real-time

FY 2019 RESULTS PRESENTATION 23

Page 24: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

BEST-IN-CLASS AGENTS SPENDINGMORE TIME WITH PEOPLE NOT PAPERWORK

Greater automation and efficiency will put one working

day back in agent’s week by end of 2020

Real-time market data and technology supporting a

superior conversation in the living room

Real-time analytics throughout the journey to ensure end-to-end

service excellence and intervention

FY 2019 RESULTS PRESENTATION 24

2

Page 25: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

DIGITALISING THE CHAIN TO ACCELERATE UNDERLYING OPPORTUNITIES

Digitalisation of the chain to provide transparency and

increase speed of completion

Chain data facilitates model flexibilty and payment on completion opportunities

Integrated ancillary products will allow quick quotes, deep-links

to utility providers and one-click services

FY 2019 RESULTS PRESENTATION 25

3

Page 26: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

• Clear plan in place to extend market leadership in UK and Canada

• Strong foundations for second phase of growth

• Healthy cash balance – post closure of AUS/US our business will be cash generative

• More optimal allocation of capital

• Laser sharp focus on operational excellence

• Re-acceleration of our core business

FY 2019 RESULTS PRESENTATION 26

FY 20 FOCUS

© m

agnusnewsagency.com

Page 27: 190703 results presentation - Amazon Web Services€¦ · FY 2019 RESULTS PRESENTATION 22. REAL-TIME MOBILE-ENABLED ESTATE AGENT OF THE FUTURE Market leading app delivering best-in-class

FY 2019 RESULTS PRESENTATION 27

Q&A