techknow investment roadshow october 2015 · techknow investment roadshow october 2015 for personal...
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Australia’s No.1 rental property website
TechKnow Investment RoadshowOctober 2015
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Important Legal Notice
This presentation contains summary information about Rent.com.au Pty Ltd (RNT) as at October 2015 and does not purport to be complete. This presentation isnot a prospectus or a product disclosure statement under the Corporations Act 2001 (Cth) (Corporations Act) and has not been lodged with the Australian Securitiesand Investment Commission.
Neither RNT nor its Directors, officers, agents, advisors or employees, makes any representation or warranty, express or implied, nor will any of them have anyresponsibility in respect of the accuracy or completeness of, or omissions from, or in respect of any information, including financial information, estimates,opinions and projections, expressed in or omitted from this presentation.
This presentation is for information purposes only and is not financial product or investment advice, nor a recommendation to acquire RNT shares. It has beenprepared without taking into account the objectives, financial situation or needs of individuals. An investment in securities is subject to known and unknown risks,some of which are beyond the control of RNT. Before making an investment decision, prospective investors should consider the appropriateness of the informationhaving regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Past performanceinformation given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. Thispresentation contains certain forward‐looking information. Forward‐looking statements are necessarily based upon a number of estimates and assumptionsrelated to future business, economic, market, political, social and other conditions that, while considered reasonable by RNT, are inherently subject to significantuncertainties and contingencies. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events orresults reflected in such forward‐looking statements. Investors are cautioned that forward‐looking statements are not guarantees of future performance and,accordingly, not to put undue reliance on such statements.
Disclaimer
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The rental property market in Australia is a large and growing section of the overall property market. It is fast moving, fragmented and under‐serviced.
The rental market is large and fast growing
1 in 3 Australians rent; primarily key 18‐35 demographic;
This % has grown but not yet at overseas levels;
Approximately 3 million rental properties in Australia:
1.6 million properties managed by ~10,000 property agencies
1.4 million properties self‐managed by ~1 million non‐agent landlords
Significant and growing % of real estate agency revenue is derived from propertymanagement;
$68bnannual rent
paid
7millionrenters
1millionnon‐agent landlords
10kreal estate agencies
Source: RNT estimate based on ABS and other data
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RNT is creating the total rental marketplace
7 million people (30% of Australians) live in rental property but almost half of all rental properties are not managed by an agent and therefore cannot be advertised on the leading
real estate portal
Non‐agents mainly offline;
Small volume of non‐agents on Gumtree etc;
REA will not allow non‐agents;
RNT has 80% of all agents online property ads;
Growing number of non‐agents on rent.com.au
All listings mainly online;
RNT becomes default search destination as it has the widest choice;
RNT has 100% of all agents online property ads;
Growing number of services add additional revenue streams;
Future (the online rental marketplace)Now (almost half market mainly offline)
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Seizing a large, overlooked opportunity for long term growth
Australia’s #1 dedicated rental property website
First mover advantage
Four distinct customer groups
80% of all property agents rental property listings nationally; Over 400,000 unique visitors to www.rent.com.au per month; Robust and scalable technology capable of accommodating rapid growth;
~50% of all rental advertising is offline; many non‐agent landlords still advertise in print media and other offline sources;
Leading property websites not focussed on rental or non‐agent landlords;
Property agents; Non‐agent landlords; Renters; and Advertisers;
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Excellent Progress Since Listing
RNT set three clear objectives of first phase of commercialisation:
Increase traffic to site to 500,000 unique monthly visitors within 12 months;
Start to transition the non‐agent landlord market from offline to online at www.rent.com.au;
Increase property agent content market share and upsell to premium products / subscriptions;
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Ahead of schedule for the first phase of commercialisation
Development Commercialisation Expansion
(pre listing) 0‐12 months 12‐24 months 24+ months
RNT’s Phases of Growth
Integrated with ~60software systems to obtainautomated feeds fromagents;
Robust and scalabletechnology able to handleRNT’s planned growth;
Developed quality productsuite to commencecommercialisation;
Drive online awareness bygrowing audience to500,000 UV’s = ahead ofschedule;
Significant increase non‐agent landlord listings =ten‐fold (1,000%) growth;
Increase in agent sales andcontent = ~100 agentsregistering per month,started deploying salesteam and have over 80% ofagents listings nationally;
Launch of rent.asia asumbrella site for rentalsacross selected Asiancities;
Launch of lease.com.au ascommercial/industrialrental portal;
Continued developmentof products and services;
Launch further newproducts to benefit propertyagents, renters andlandlords throughout therental life‐cycle e.g. : Insurance; Lease documents;
Full deployment of salesteams;
Grow offline brand identity; Move to profitability;
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Company Market Cap * EV/EBITDA Overview
A$6.1Bn 20x Realestate.com.au (REA) launched in 1998 and is now Australia’s number one property site
A$4.4Bn 13x Seek.com.au (SEK) is a specialist employment site which launched in 1997 and is listed on the ASX
A$2.4Bn 15x Carsales (CAR) first revenues were reported in 1998 as it grew into Australia’s #1 Automotive classified website
Industry Comparisons – Illustrating the potential
The market value of similar classified/portal companies to RNT that are listed on the ASX. Dominant sites lead to increased traffic and higher levels of profitability.
* As at 12 October 2015
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Contact Information
For additional information please contact
Mark WoschnakFounder and CEO ‐ RNTE: [email protected]: 0410 568 300
Jan FerreiraChief Financial Officer ‐ RNTE: [email protected]: 0404 043 819
Thank you for your interest in Rent.com.au Limited
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Appendices
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Corporate Overview
KEY STATISTICS
ASX Code RNT Restricted* Free Float
Ordinary Shares on Issue 87,799,174 11,847,353 75,951,821
Options 40,975,507 40,860,000 115,507
Performance Shares 24,482,313 24,482,313 Nil
Performance Rights 12,475,436 12,475,436 Nil
Relisting Share Price $0.20
Market Capitalisation at Relisting $17.6m
Cash at 30 September 2015 $3.4m
* Restricted = either 24 months escrow or length of service condition (min 31 December 2016)
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Renters – 18‐35, Online & Social
Free to search, register, create alerts etc.
Provision of products at various stages of the rentingjourney, % of visitors take up a product;
RNT targeting 1 million renters to site per month within5 years, with transactions between $15 and $40 perservice
Case Study of Potential Revenue*
Scenario % of 1m monthly visitors to site who transact 5% 10% 15%
Assumed Average Transaction Value $20 $20 $20
Annual Revenue based on above assumptions $12.0m $24.0m $36.0m
* The annual revenue numbers in the above table are based on the assumptions stated in the table and are not a forecast of RNT’s future revenue
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Non‐agent Landlords – Property Investors
RNT’s current non‐agent landlord products include:
Standard Listing per rental property – normally $99 but currently free offer to drive market share Premium Listings – pay to have ads at top of search, stand out more = more views per ad RentCheck – background checks on potential tenants RentReport – rental pricing and other statistics
Over $200 offlinevs
Online rent.com.aulisting
Case Study of Potential Revenue*
Scenario % of 1 million non‐agent landlords to list a property on rent.com.au during a year 5% 10% 15%
Assumed Average Transaction Value $160 $160 $160
Annual Revenue based on above assumptions $8.0m $16.0m $24.0m
* The annual revenue numbers in the above table are based on the assumptions stated in the table and are not a forecast of RNT’s future revenue REA, Carsales and Seek all had achieved over 60% market share in their respective markets as at 2011
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Property Agents – Need to Grow Rent Rolls
Property agents need greater access to renters – rent.com.au offers a unique audience: >50% of itstraffic does not go to realestate.com.au and >65% does not go to domain.com.au
RNT provides property agents with simple and cost effective access to landlords, generating newbusiness leads for growing their rent roll
Source: AC Nielsen Market Intelligence Duplication Report August 2015* The annual revenue numbers in the above table are based on the assumptions stated in the table and are not a forecast of RNT’s future revenue
Unique audience Landlord leads Excellent services
‐
1,000
2,000
3,000
4,000
5,000
6,000
7,000
‐
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2007 2008 2009 2010 2011 2012 2013 2014 2015
AgentsListings Content GrowthNumber of Active Listings Number of Agents
Case Study of Potential Revenue*
Scenario number of agents on paid plans 5,000 7,500 10,000
Assumed Average Monthly Payment $200 $200 $200
Annual Revenue based on above assumptions $12.0m $18.0m $24.0m
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Advertisers – Seeking Access to Online Audience
* The annual revenue numbers in the above table are based on the assumptions stated in the table and are not a forecast of RNT’s future revenue
Case Study of Potential Revenue*
Scenario Ad impressions at 1m monthly UV’s 360m 360m
Assumed CPM (cost per 1000) $5 $10
Annual Revenue based on above assumptions $1.8m $3.6mFor
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Renter Products & Services
Rich content and depth of services provided via the rent.com.au marketplace
RentBond
A No Deposit, Interest Free solution for renters to spread their bond payment over 3‐6 months; addresses the need to save an average bond of $2,000 in addition to other moving costs;
RentBond is exclusive to RNT and is partnered with Flexigroup Limited (ASX:FXL) one of Australia’s largest non‐bank lenders;
RNT generates $15 revenue and bears no credit risk in relation to RentBond;
RentConnect
Hassle free utility connections
Free to renters – helps renters by co‐ordinating the set up of all their utility connections;
RNT receives a fee per RentConnect and doesn’t have ongoing servicing costs;
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Renter/Landlord Products & Services
Rich content and depth of services provided via the rent.com.au marketplace.
RentCheck
Identity verification and background check of potential tenants;
Partnering with a leading Australian credit reporting agency
Popular with both renters (preparing for application) and landlords; available to both for a fee
RentReports
Detailed rental statistics reports available to both renters and landlords for a fee
Suburb overview and rental property statistics;
Aimed at renters and landlords, with broader use both within and external to the real estate industry;
RNT’s unique positioning allows it to gather both agent and non‐agent rental data;
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Core Landlord Proposition
RNT promotes a professional approach to property management – through a landlord having access either to professional standard tools and services, or access to a professional property
manager. RNT believes this to be in the best interest of all rental market participants.
Self‐managed
Free standard listing
$35 upgrade to Enhanced Listing (bigger ad);
$80 upgrade to Feature Listing (bigger ads, top of search results = 300% more views);
RentCheck and RentReports also available.
Agent‐managed
Free property management quotes system;
Similar to iSelect model;
Agents pay for leads;For
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