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PEXA GROUP LIMITED AGM Information 2024
65637_rns_2024-11-14_d0fc94f7-3934-4aa5-868a-e8d751bab4d1.pdf
AGM Information
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2024 AGM PEXA Group | November 2024
The PEXA Group acknowledges Aboriginal and Torres Strait Islander people as the traditional custodians of the lands on which we work, live and dream, we pay our respects to elders past and present.
We recognise that we have a role to play in creating space and place for Aboriginal and Torres Strait Islander voices in our business and our impact.
We continue to explore how we walk together, how we co-design with Aboriginal and Torres Strait Islander Peoples, to develop meaningful relationships, with mutual benefit.
We will continue to embrace the spirit of reconciliation, in its evolving nature, toward an equitable future.
Your Board of Directors
Glenn King Group Managing Director & Chief Executive Officer
Jeffrey Smith Independent Non-Executive Director
Georgina Lynch Independent Non-Executive Director
Mark Joiner Independent Chairperson
Melanie Willis Independent Non-Executive Director
Paul Rickard Non-Executive Director and Commonwealth Bank of Australia Nominee Director
Vivek Bhatia Independent Non-Executive Director
Helen Silver AO Independent Non-Executive Director
Chairperson's address
Mark Joiner
- Year in review
- Governance
Group Managing Director & CEO's address Glenn King
- 1 Reflects reported Australian revenue for the year ended 30 June 2024 and Proforma UK revenue for the year ended 30 June 2024
- 2 Two customers are utilising the PEXA platform capability
- 3 Smoove e-Conveyancer and Legal Panel Management customers
- 4 Based on revenue
| Segment | Government | Developers | FIs | Major law firms | Practitioners | FIs | Practitioners |
|---|---|---|---|---|---|---|---|
| Number ofCustomers | 345 | 70+ | 160+ | 85+ | 10,000+ | c.18 2 | ~2,0003 |
| Share ofRegion FY24revenues1 | ~4% | <1% | ~24% | ~13% | ~58% | ~38% | ~62% |
| Exchange /Non-ExchangeSplit4 | 5% / 95% | 100% / 0% | 97% / 3% | 100% / 0% | 99% / 1% | ||
| Businessreach |
Customer profile Growing relationship depth and breadth
8
Strategic agenda Consistent approach to delivering value
| Purpose | ||||||
|---|---|---|---|---|---|---|
| Position | Australia's #1 digital propertyExchange platform | Leading digital solutionsUnique distribution | Powerful platformDeveloping ecosystem | Trusted and influential inproperty markets | ||
| Business | Australian Exchange | Digital Solutions | International | Group | ||
| FY24 est. TAM 1 | $330m | ~$500m2 | $520m 3 | ~$1,350m | ||
| Objective | EnhanceMaintain leading position | ExtendAdjacent solutions supportingexisting and new customers | ExpandCreate Exchange-like economicsoffshore | EvolveDeliver purposeDrive sustainable returns | ||
| Brands | ||||||
| Australian Region | ||||||
| Values | Innovate for goodBetter togetherMake it happen, make it count | |||||
| Foundations | People | Community / ESG | Resilience and Security | Data and privacy | ||
Business outcomes Australia – Enhance and Extend
FY24 goal fully met FY24 goal partially met FY24 goal not met
| Australian Exchange | ||
|---|---|---|
| Transactions | 3.81m | +1.7% |
| Penetration | 89% | +1 ppt |
| Platform uptime | 100% | |
| Customer satisfaction | 90% | |
| APIs delivered | 316 | |
| On day settlement | 761/ 802 %+ | |
| Tasmania rollout | On track | |
| Exchange margin | 54.5%3 |
Business outcomes International – Expand
FY24 goal fully met FY24 goal partially met FY24 goal not met
| International | |||||
|---|---|---|---|---|---|
| UK remortgage platform coverage | ~70% | ~ +15% | |||
| UK S&P1platform development | On track | ||||
| Smoove integration | On track | ||||
| PEXA / Optima Legal integration2 | Complete | ||||
| Optima Legal flow converted to PEXAplatform | Nil | ||||
| Lender engagement | 23 | ||||
| BOE Testing slot4 | 2 large4 small | ||||
1S&P = Sale and Purchase 2 Integration of PEXA platform into Optima Legal 3 See ASX announcements dated 22nd November 2023 and 2nd May 2024
4 Requests to utilise available Bank of England testing slots
Business outcomes Group - Evolve
FY24 goal fully met FY24 goal partially met FY24 goal not met
| Group | ||||
|---|---|---|---|---|
| PEP1annualised cash savings | ~$16m | |||
| Operating EBITDA margin | 36.5%2 | |||
| Growth cash outflows3 | $75.3m | |||
| RepTrack score | 72% | |||
| Women in leadership | 47% | |||
| People engagement | 63% | |||
| COemissions commitment2 | On-track4 |
1 Productivity Enhancement Program. Savings expressed as value of exit run rate for FY24 2 Excludes impact of Smoove 3 Group operating cashflows for Digital Solutions and International 4 Scope 1 & 2 emissions to reach net zero by 2025
Group financial performance1 Revenue, margins, profitability and cashflow increased
| +21% | +16% | +22% | |
|---|---|---|---|
| $340.1m | $114.9m | $21.1m | |
| Statutory revenue 2 | Operating EBITDA 2 | NPATA 2 | |
| +0.8pps | +1.7pps | +3.1pps |
|---|---|---|
| 54.5% | 36.5% | 30.9% |
| Exchange Margin 3 | Group Margin 3(ex Smoove) | Group Margin 3,4(inc Smoove PF) |
13
Economic outlook Modest recovery as inflation and rates subside. Significant risks remain
1 A = actual. F = forecast. Reserve Bank of Australia, Statement on Monetary Policy, Nov 2024 (for CY23 to CY26); Deloitte Access Economics, Business outlook, Oct 2024 (for CY27). 2 A = actual. F = forecast. Bank of England, Monetary Policy Report, Nov 2024 (for CY 23 to CY 27)
FY25 Guidance reconfirmed
| Metric | FY25 guidance |
|---|---|
| Group Business Revenue | +13-19% |
| Group Operating EBITDA margin | ≥ 34% |
| Specified items | $15-20m |
| Depreciation and amortisation | $98-102m |
| Net interest expense | $5.5-7.5m |
| Tax | $13-18m |
| Australian capex / Australian revenue | 10-14% |
| International operatingcashoutflows | $(55-58)m |
| Net debt / operating EBITDA | ≤ 2.5x |
FY25 focus areas Building on solid foundations
Australia
International
Group
| Exchange | Coverage expansion and integration, whilst maintaining resilience androbustness |
|---|---|
| Regulatory | Continue to input into shaping a market structure that supportsconsumers and other stakeholders |
| 1Digital Solutions | Improve distribution effectiveness to drive growth |
| Platform and lP | Launch S&P product, leveraging Smoove distribution networks |
| UK | Pursue commitments from more lenders to use PEXA's platform |
| Other markets | Cautious exploration |
| Performance | Refer FY25 guidance slide 17 |
| Capabilities | Select investments in people, cyber, AI |
| Outlook | Mixed economic indicators, continued execution discipline |
Progress over the past five years Significant evolution
1 Reputation not measured in 2019. 72 was as at 4Q24
| 2019 | 2024 | ||||
|---|---|---|---|---|---|
| Market share | 49.3% | 90% | |||
| Exchange | Annual transactions | 1.75M | 3.81M | ||
| Jurisdictions | NSW, VIC, QLD, SA, WA | NSW, VIC, QLD, SA, WA, ACT & TAS | |||
| Digital | Share of Group revenue | Nil | ~5% | ||
| Solutions | Brands | None | .id, Land Insight, Value Australia | ||
| Platform | None | PEXAGo | |||
| International | Brands | None | Smoove, Optima Legal | ||
| Share of Group revenue | Nil | ~10% | |||
| Recognised by industry | 2021 Australia's 3rd best place to work2022 | Employer of Choice winner2024Customer Service Team of the Year | |||
| Group | Reputation | n/a 1 | 72% | ||
| Exchange Uptime | 100% | 100% |
Thank you
This presentation and accompanying information (Presentation) has been prepared for the purpose of providing general background information on PEXA Group Ltd (PEXA or the Company), its subsidiaries and their activities.
No offer of securities
This Presentation is not a Prospectus, product disclosure statement or offer document under Australian law or the laws of any other jurisdiction. It is not and should not be considered, and does not contain or purport to contain, an offer, invitation, solicitation or recommendation with respect to the subscription, purchase or sale of any securities in PEXA or any other entity.
The information contained in the Presentation has been prepared without taking account of any person's investment objectives, financial situation or particular needs and nothing contained in the Presentation constitutes investment, tax, legal or other advice. Youmust not rely on the Presentation but make your own independent assessment and rely on your own independent taxation, legal, financial or other professional advice.
Financial data
All financial amounts contained in this Presentation are expressed in Australian dollars (unless otherwise stated). Note: numbers may not sum due to rounding.
Certain financial information included in this Presentation is 'non-IFRS financial information' under Regulatory Guide 230 'Disclosing non-IFRS financial information' published by ASIC. PEXA believes this non-IFRS financial information provides useful information to users in measuring the financial performance and condition of PEXA. The non-IFRS financial information does not have standardised meanings prescribed by Australian Accounting Standards and, therefore, may not be comparable to similarly titled measures presented by other entities, nor should it be construed as an alternative to other financial information determined in accordance with Australian Accounting Standards. You are cautioned, therefore, not to place undue reliance any non-IFRS financial information or ratio included in this Presentation,
Forward statements
No representation or warranty, expressed or implied, is made as to the accuracy, reliability, adequacy or completeness of the information and opinions contained in the Presentation.
We use words such as 'will', 'may', 'intend', 'seek', 'would', 'should', 'could', 'continue', 'plan', 'probability', 'risk', 'forecast', 'likely', 'estimate', 'anticipate', 'believe', or similar words to identify Forward Statements. Forward Statements are based on assumptions and contingencies which are subject to change without notice, may involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of PEXA, and have been made based upon management's expectations and beliefs concerning future developments and their potential effect on us..
No representation is made or will be made that any Forward Statements will be achieved or will prove to be correct. Actual future results and operations could vary materially from the Forward Statements. Circumstances may change and the contents of this Presentation may become outdated as a result.
Except as required by applicable laws or regulations, PEXA does not undertake any obligation to provide any additional or updated information or revise the Forward Statements or other statements in this Presentation, whether as a result of a change in expectations or assumptions, new information, future events, results or circumstances.
Past performance
Past performance and historical information 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.
Market and industry data
This Presentation contains statistics, data and other information (including forecasts and projections) relating to markets, market sizes, market shares obtained from research, surveys or studies conducted by third parties (Market Data).
You should note that Market Data is inherently predictive, is subject to uncertainty and not necessarily reflective of actual market conditions.
PEXA cannot assure you as to the accuracy or the reliability of the underlying assumptions used to estimate such Market Data. Forecasts and estimates involve risks and uncertainties and are subject to change based on various factors, including in data collection and the possibility that relevant data has been omitted.
Disclaimer
The information is supplied in summary form and is therefore not necessarily complete. The material contained in this Presentation may include information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information.
To the maximum extent permitted by law, PEXA and each of its affiliates, directors, employees, officers, partners, agents and advisers and any other person involved in the preparation of the Presentation disclaim all liability and responsibility (including without limitation, any liability arising from fault or negligence) for any direct or indirect loss or damage which may arise or be suffered through use or reliance on anything contained in, or omitted from, the Presentation. PEXA accepts no responsibility or obligation to inform you of any matter arising or coming to its notice, after the date of the Presentation or this document, which may affect any matter referred to in the Presentation.
This Presentation should be read in conjunction with PEXA's other periodic and continuous disclosure announcements lodged with the ASX, which are available at www.asx.com.au.
Important notices and disclaimer
