RENT.COM.AU LIMITED — AGM Information 2019

Nov 28, 2019

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Annual General Meeting 2019

Agenda

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• Welcome by the Chairman

• Voting on Resolutions

• Presentations

• 2019 Review by the Chief Executive Officer

• Financial Results by the Chief Financial Officer

• What’s Next by the Chief Executive Officer

• Questions

Proxy Votes

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Resolution For Against Discretionary (Voted For) Abstained Excluded	Total For	Total Against
1 Adoption of Remuneration Report 31,946,606 4,177,812 496,556 13,939,438 41,716,686 2 Re-election of Mr Phil Warren as a Director 72,864,647 4,926,456 596,556 13,889,439 - 3 Ratification of May Placement 91,168,542 12,000 596,556 500,000 - 4 Approval of 10% Placement Facility 91,118,543 61,999 596,556 500,000 - 5 Approval of Employee Incentive Securities Plan 34,789,628 4,668,530 496,556 10,605,698 41,716,686 6 Approval of Proportional Takeover Provisions 74,250,951 16,929,591 596,556 500,000 - 7 Amendment to Constitution 74,253,313 16,927,229 596,556 500,000 -	88.6%	11.4%
	93.7%	6.3%
	100.0%	0.0%
	99.9%	0.1%
	88.3%	11.7%
	81.6%	18.4%
	81.6%	18.4%

3

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CEO Presentation

Our Vision – Renting made Easy

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Recognise that renters are here to stay - demystify the process and make the experience equitable, easy and consistent

Our Philosophy

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Renters in Suits

Our renters will always be presented to agents and landlords in a way that maximises their chances of getting the home they want

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Properties on Pedestals

We present our properties with additional, relevant information that makes the process easier for renters

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Flick the Forms

Let’s automate where we can. We are removing the need for most of the paperwork to help save our renters time and effort

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Home for Renters

We are fast becoming the default destination for renters, by adding value and not expecting reward for no effort

5

5

It’s been a big year

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And a credit to our customers, our staff and of course our Investors, we continue to deliver on our “renting made easy” promise to customers

• Record product sales to Renters

• Our new Apps are the highest rated real-estate Apps

• Record Renter Resume growth

• Last QTR our best ever (Revenue and EBITDA)

• Clear path forward, Tenancy period is our goal

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Small company with a large voice, we are material in the market

6

Renters are here to stay

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Every day there are more people renting in Australia, and every day the average Renter is younger and wealthier

% of renter households in Australia[$]

• The rise of the “logical renter” (people choosing to rent)

• Slowing economy, casualisation of the workforce

• Flexibility a large driver

• Rentvestors (24% own/plan to have an Investment Property)

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49%
37%
33%
31%
30%
27%
26%
2001 2006 2011 2016 2021(F) USA Germany
£ RENT data; $ ABS Statistics, RENT estimates, Pew Research Centre (2016), Statista (2018);
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Renting starting to become a mainstream attitude, for many it just makes sense
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7

and increasingly dominated by Millennials

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Already at 52% and increasing, Millennials (aged 22-37) are by far the largest segment of renters

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Renters [£]
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• Millennials are the most urbanised generation ever[†]

• They are also the most educated and well travelled

• They want (expect) to move for work

• They value simplicity and consistency

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60%
50%
40%
30%
20%
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50%
40%
30%
20%
10%
0%
Post-Millennials Millennials Generation X Baby Boomer
£ RENT data; † Financial Times (2018)
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The Change generation – not constrained by traditional products and services
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8

So our products continue to evolve

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Renter Resume

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Strong growth continues, new features added for sharing on social media

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GROW
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• Migration to App (for resume creation) continues, after only one year we are seeing nearly 50% of resumes created on our App

• Renter Resume remains our key tool for introducing products to customers, half of all product sales are via the resume process

Cumulative Renter Resumes

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Web App

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2017 2018 2019
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9

So our products continue to evolve

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RentBond

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NEW
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Major product upgrade, allows customers to “Move Now, Pay Later”

• Changing funders during FY19 allowing a broader range of moving costs and larger loan sizes to be financed

• New Move Now, Pay Later feature which allows repayment within 21 days at no cost, widens the appeal (now a true convenience product)

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RentBond Applications RentBond Average Loan Value
10,000
$2,000
7,500
$1,500
5,000
$1,000
2,500
$500
0 $0
Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20
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So our products continue to evolve

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Endorsement

s

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NEW
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Improves utility of the RentCheck product, increases value for Renters

• Allows a customer to request an endorsement from their previous / current real estate agent, positive reporting via their Renter Resume

• Included as an additional feature when you purchase a RentCheck

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RentCheck
5,000
4,000
3,000
2,000
1,000
0
Q1 FY19 Q1 FY20
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So our products continue to evolve

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Suburb Reviews

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Continues to grow, in discussion with 3[rd] parties, looking at “off site” monetisation opportunities

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GROW
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• Australia’s largest lifestyle database, covers over 95% of the country and the data is constantly being refreshed (real data by real customers)

• It is starting to have an impact on how people look for properties – growth in people searching for a lifestyle area rather than the traditional postcode

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19%
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Suburbs: 8,000+ Customer Reviews : 200,000+ Category Reviews: 1,000,000+

Postcode Search Lifestyle Search

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So our products continue to evolve

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RentConnect

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To launch ready for the new year rush, a new partner and a new way of doing things

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SOON
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• Significant change to our Utility connection products, allows us to capitalise on our strengths (engaging our customer at the start of their journey)

• Has the potential to disrupt the existing connection market, we will be returning value back to the consumer

RentConnect Opt Ins

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16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
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Q1 FY19

Q1 FY20

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Renters are responding overwhelmingly

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• Growing numbers of new renters are engaging with our website and app, strong growth in all key customer metrics

• Strong Organic traffic growth, reduced marketing spend

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% Organic Unique Visitors
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• Our “Blog” rapidly becoming the #1 source for Renter Advice

• Strong “on site” metrics (bounce, dwell, pages per visit)

• Social Media and PR, room for improvement

• 65% new users per month reflects transactional audience

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64%
57%
45%
28%
24%
FY16 FY17 FY18 FY19 FY20 (YTD)
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Strong traffic, our visitor numbers are x10 the number of properties rented each month
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Renters are responding overwhelmingly

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And our Apps, after only 12 months are a core part of our solution

• Broadens our customer appeal, modern interface

• Ranks strongly in both stores

• More Renter Resumes per User (than Web)

• Integrated platform allows inclusion of new services (RentPay)

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We are the #1 rated real-estate App in both the Apple and Google stores

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Giving rent.com.au a stronger voice for change

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• We are “proudly” different, by focusing on value to our customer we:

• Build our awareness/support = builds our influence, facilitates greater change

• Build a relationship = we support our customer into Tenancy

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Exceeding Expectations at the start Earns us the right to be here
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Search Application Tenancy
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Ownership
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Its about creating a self-reinforcing ecosystem, staying with our customers on their journey

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Financial Results

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FY19 Financial Performance

Revenue	FY19 FY18 $’000 $’000 Change 2,164 2,335 -7%
Gross Margin	847 777 +9% 39% 33% (2,969) (3,100) -4%
Gross Margin %
Operating Costs
EBITDA	(2,122) (2,323) +10%

• Laser focus on profitability drove improvement at both a Gross Margin and at an EBITDA level, despite FY19 drop in Advertising Sales revenue.

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$2.3m
$2.2m
$1.7m
$0.7m
-$2.1m
-$2.3m
-$5.8m
-$7.2m
REVENUE
EBITDA
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FY18

FY16

FY19

FY17

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Diversifying Revenue

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Revenue Sources

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From Renters From Other
100%
93%
89%
75%
50%
25%
0%
FY18 FY19
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• Following refocus in FY17, RENT has been steadily diversifying revenue away from relying on Agents

• Sales of Products to Renters and sales from Advertising to Renters has now grown to 93% of revenue

• Leveraging our “renter army” to build financial performance

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Advertising Sales Revenue

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Advertising Sales Revenue

• FY19 advertising drop not restricted to RNT:

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$992k
$781k
$738k
$332k
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“Australia is in an advertising recession” Morgan Stanley August 2019

“National ad spend records lowest figures in a decade” AdNewsApril 2019

• Turn around taking shape, Oct19 best result in 18 months

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$388k
Forecast
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FY16 FY17
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FY18 FY19
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H1 FY19 H1 FY20
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Renter Products Revenue

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Renter Product Revenue

• Good start to FY20, projecting ~10% growth over 1H FY19

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$1,232k
$1,115k
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$525k
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$202k
FY16 FY17 FY18 FY19
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$585k
Forecast
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H1 FY20

H1 FY19

• Revenue increased and profit margins also improved:

• New Equifax agreement for RentCheck components

• Fair Go Finance agreement improves commissions without RNT taking additional credit or interest risks

• RentConnect being overhauled –focus on exclusive utility/internet partnerships and best product/deal for renters

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Operating Efficiency

Marketing Effectiveness

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(Revenue/Marketing Cost)
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245%
201%
73%
32%
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FY17 FY18 FY19
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FY16
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• Insourced search engine marketing after four successful years with Accordant will deliver further savings.

• Continued investment in search engine optimisation and non-listings content, social media etc.

• Overhead cost base remains lean and scalable, although still allows for investment in new products such as RentPay.

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1.4
Forecast
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H1 FY19 H1 FY20
Overhead costs ÷ Revenue
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Summary

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Quarterly Results

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$620k
$580k
$528k
$513k
($391k)
($425k)
($578k)
($650k)
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• Q1 FY20 was the best quarterly EBITDA

• Sept 2019 was the best monthly result ever

• Dec quarter usually slower but on track for:

• • H1 YoY revenue growth of 10% - 20%

• • H1 YoY EBITDA improvement of 20% - 30%

Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20

YoY = year over year

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What’s Next

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The tenancy period, a significantly greater opportunity And is a logical extension of our customer relationship

Period Customer is Active

Active Market Size Customer Value Potential

Property Search Tenancy Period

Property Search Tenancy Period

Property Search Tenancy Period

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Average Time to Average Time in a Number of Homes Number of Rental Renter Resume Avg RentPay Avg Customer
Search and Move Rental Property Rented per Month Homes (non-Govt) Customer Value Value
6 125 weeks 80k 2.3 million homes $111.44
$4.77
weeks (21x) mth (27x) (23x)
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All statistics quoted are from RENT research, calculated using both internal and external/third party data. * Customer value calculated as: RR = monthly Renter Products Revenue / Renter Resume created, RentPay = RentPay revenue / RentPay customers x average tenancy duration

The opportunity is massive – x20 on size, x20 on value and a x20 on engagement window

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RentPay is the foundation

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Payments are a logical platform for RNT to transition with our customer into the Tenancy period

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• Our prior acquisition has given us experience/capability

• Rental payments are something that every renter needs/uses

• Finding a new rental presents a key opportunity to onboard a customer

• Must be unique/different and offer true value back to the renter

A modern payments solution is the key - high relevance, high engagement, annuity revenue

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but will morph in key areas

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• Consumer Led – traditional products require an Agent to be subscribed to the solution, then renters are coerced into using the product

• RentPay will become Consumer led, Renters will want to use the service

• RentPay will operate “invisibly”, any Renter can use the product to pay any Agent (market portability)

• First in market for a true consumer facing solution, built for the Renter

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Old – Agent Led
Renters Agents
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New – Built for Renters
Renters Agents
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Others

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but will morph in key areas

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• Financial Flexibility – We will break the link (in time and $) between what a Renter pays, and an Agent receives

• RentPay will move from being only transactional, we will collect, hold and pay, supports new services

• Complete financial flexibility for the Renter but on-time guarantees to the Agent

• Puts Renters in control of their finances

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Old – Transaction pass through
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New – Collect/Hold/Pay

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Renters
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Agents
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$
Renters Agents
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Others

To deliver significant disruption and growth

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This has the potential to change how Renting works, increased financial flexibility and control for the renter

• Multiple Revenue Opportunities (Saving, Finance, Banking)

• Renting as a Service (RaaS), bundling of utilities

• Enables Property Management portal (+ new Revenue opportunities for Agents and Landlords)

• Potential for Partner Integration/Extension

• Allows repositioning of core products (right time, right place)

Our customers are telling us the features and functions they need

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Tenancy is the logical extension of our effort to date

Development work is under way and we have a shortlist of potential payment partners

Potential RentPay Market Cap at different Market Penetration Rates (% Renters)

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$127.9m
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• Launch H2 FY20

• App-based for Renters

• Significant Growth Opportunity

• Some interest from external investors

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$54.2m
$14.0m
$7.4m
$0.7m
Current 1% 2% 5% 10%
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This has the potential to drastically change - the market and our business
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Summary

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Summary

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• Delivering the best search experience, features and information available for renters anywhere in the market – #1 ranked AU real estate app

• Strong growth in customer engagement metrics (new Renter Resumes, organic traffic, advice pageviews etc), growing our Renter army.

• Our performance to date will give us the ability to extend our customer relationship into the tenancy period, unlocking additional growth potential

• Remain focused on revenue growth and profitability BUT maintain investment in the development of new opportunities (remain open to accretive partnerships)

32

Thanks

Contact: investors@rent.com.au www.investors.rent.com.auHello Carat

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