RENT.COM.AU LIMITED — Management Reports 2020

Aug 19, 2020

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Market Update August 2020

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Our Purpose We exist to make renting rewarding

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Our Vision reimagining the renting experience to create Australia’s most empowered rental community

Rent.com.au at a glance

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July 2020 Snapshot

• Largestdedicatedrental site,servesthe 30% of Australianswho rent

• Unique tools and services making it easier for people to find and secure ahome

• 1 rated real-estatesector appin bothApple / Google stores

• Large, unique renteraudienceof more than700,000 per month

• Over860,000 Renter Resumescreatedto date

• Recordfinancialyear results forboth Revenueand EBITDA

• Development well underway for RentPay, extending RNT’s services beyondthe search phase

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756,000 Unique Visitors browsing 9.7 million pageviews

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8,624

Products opted into by Renters to simplify moving

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83,000 Applications and Enquiries on rental properties

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23,700 Renter Resumes created (more than 760 per day)

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73%

of visitors to the site/app from non-paid sources

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145,000 pageviews of renter advice pages

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Search Phase

Looking Applying

Tenancy Phase

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Living Ownership
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helping renters find

We start with the way renters experience search

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We’re reimagining the way renters can search, whether by lifestyle features or by location. We also provide a wide selection of properties and the best information, tools and services.

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Renter Resume
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Property Listings

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Unique Search Tools

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Pet Resume

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Renter Products

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achieving gains across our key customer measures

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7.5 million 6.3 million
25% Better 6.0 million 49% Better 4.2 million
UNIQUE NON-PAID
VISITORS VISITORS
FY19 FY20 FY19 FY20
111,000
195,000
16% Better 96,000 55% Better
126,000
PRODUCTS NEW APP
USED DOWNLOADS
FY19 FY20 FY19 FY20
834,000 1.8 million
795,000
5% Better 42% Better 1.2 million
ENQUIRIES & ADVICE
APPLICATIONS PAGEVIEWS
FY19 FY20 FY19 FY20
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Results for FY2020, movement vs FY2019

and delivering record financial results

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$1.5m
$2.5m
$2.2m
$0.8m
13% Better 79% Better
TOTAL GROSS
REVENUE MARGIN
FY19 FY20 FY19 FY20
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($2.1m) ($1.1m)
47% Better
GROUP
EBITDA
FY19 FY20
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Financial performance improves in line with increasing recognition and influence

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Unaudited results for FY2020, movement vs FY2019

Renter Products –highlighting good renters

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RentCheck: helping good renters get ahead of the competition

• RentCheck allows renters to ID-verify and self check against tenancy blacklist

• Now also includes unique agent endorsements feature

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32% Better
RentCheck Revenue 75% [†]
$529k of renters agree or
strongly agree that
competition amongst
applicants for a rental
property is fierce
$400k
50% [†]
of renters
are concerned
about being
‘blacklisted’
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FY19
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FY20

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† Source: “Unsettled: Life in Australia’s private rental market” Choice.com.au February 2017

Renter Products –providing even more convenience

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RentBond: addressing real challenges for customers moving home

• RentBond includes the ability to repay within 21-days absolutely free

• By Now Pay Later (BNPL) type functionality popular with mostly millennial renters

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7% Better

RentBond Revenue
400%
increase in number of
$423k people using BNPL
over 2 years to 2018.
$396k
60% of whom are aged
18-34
60% [†]
of renters found it
difficult to come up
with a bond on their
new rental property
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FY20

FY19

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† Source: Rent.com.au customer survey 2017 * REP-600 Review of buy now pay later arrangements Nov 2018

Renter Products –providing compelling offers

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RentConnect: AGL partnership rewarding all parties as volumes grow

• Leading utility partner gives confidence, renters get $100 gift card from RNT

• Future opportunities to change how utilities are consumed and paid for

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13% Better
RentConnect Revenue
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New Utility Connections
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$145k
$129k
FY19 FY20
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Jan Feb Mar Apr May Jun Jul
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Combining to deliver ongoing financial improvement

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Group EBITDA

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Rent.com.au RentPay
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($0.8m)
(0.3m)
($2.1m)
($2.3m)
($5.8m)
($7.2m)
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The core Rent.com.au portal business

• June 2020 quarter was best ever EBITDA at just $43k loss for the quarter

• July and August pacing ahead of June - on track for record revenue quarter

• Impact of Victorian lockdown marginal, offset by increases in other states

• Strong future growth potential from existing products as well as ability to develop new products ( e.g. commercialising RNT’s significant data assets )

Building this consistent and engaged audience of 700,000 unique visitors per month makes rent.com.au the key channel from which to launch into the tenancy period via RentPay

FY17 FY18 FY19 FY20

FY16

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Search Phase

Looking Applying

Tenancy Phase

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Living Ownership
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into the tenancy period

Tenancy -a significant market opportunity

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Extending our customer relationship beyond search is a logical step, in line with our vision to “reimagine renting”

Only 5% of renters are actively searching for a property each month, this move allows us to engage with the other 95% (the entire market)

Market Size (Households)

Period Customer is Active

Customer Value Potential

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Tenancy
Search
27x
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Tenancy Tenancy
Search Search
21x 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

and payment is the logical vehicle for us to disrupt

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Rental payments are a reality for all renters and an area we aim to change.

60%[†] 58%[†] 56%[†] of renters want a payment of renters want their good of renters want the choice of confirmation or receipt so payment history to be timing when they pay rather they know their rent has recognised and rewarded than when they have to been received

The regular nature of payments provides opportunity for us to engage customers and add value.

It’s also an area where needs are not being met. Flexibility and choice are what customers demand.

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† Source: Rent.com.au payments and insurance survey 2019

Changing payments

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RentPay will break the link (in time and $) between what a renter pays and what an agent receives. Offering financial flexibility to the renter and certainty to the agent

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Choice of Payment Methods
Choose Payment Frequency
Over / Under Pay
Alerts / Reminders
Recognition / Status
Pay other bills
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Renters
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Consistent Payments
Reconciliation Tools
$
Renting as a Service (RaaS)
Agents
Utilities
Insurance
Others
Banking
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Significant growth opportunities and extensions

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RentPay represents a significant growth opportunity for our business:

Potential RentPay Valuations at Various Market Shares[†]

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$130m
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• Transaction fees

• Finance (lending)

• Cross selling existing products

• Utilities (high-frequency payments)

• Banking (transition to mortgage)

• Renting as a Service (RaaS)

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$65m
$25m
$15m
1% 2% 5% 10%
Estimated Market Share
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† Rent.com.au indicative estimates based on 5x revenue multiple of estimated revenue @ different market shares. Market share estimated as customer # divided by 2.5m rental households

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Outlook

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• First quarter of FY21 tracking ahead of Q4 FY20

• Utility partnership performing well, now exploring further products

• Ongoing site and app optimisations delivering further product sale gains

• RentPay development nearing completion, launch planning underway

• RentPay product collaboration with industry partners already in motion

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Appendix: Financial / Corporate Information

Unaudited Financial Results FY2020

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	FY20	FY19	%
RNT Group	$’000	$’000	Change
Renter Products†	1,105	932	+19%
Advertising Sales	986	781	+26%
Other Revenue	362	451	(20%)
Total Revenue	2,453	2,164	+13%
Cost of Sales	(933)	(1,317)	(29%)
Gross Margin	1,520	847	+79%
Gross Margin %	62%	39%
Operating Costs	(2,653)	(2,969)	(11%)
EBITDA	(1,134)	(2,122)	(47%)

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$1,254k
$1,199k
$1,108k
$1,057k
($463k)
($671k)
($1,003k)
($1,119k)
REVENUE
EBITDA
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H1 FY20

H2 FY20

H2 FY19

H1 FY19

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† Source: RentPay was previously included in Renter Products prior to FY20. Now included in Other. Comparatives restated to reflect LFL.

Corporate Information

Financial information

Financial information
Share price (31-Jul-20 close)	$0.04
Shares on issue	302.6m
Market capitalisation	$11.8m
Cash (31-Jul-20)	$0.5m
Debt (31-Jul-20)	$Nil
Enterprise value	$11.3m

Shareholdings	June 2020 %
Board & Management	41,822,204 13.8%
Other Top 30 Shareholders	168,959,930 55.8%
Other Shareholders	91,853,625 30.4%
	302,635,759 100.0%

Greg Bader

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Garry Garside

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Sam McDonagh

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Phil Warren

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John Wood

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Chief Executive Officer

• 20+ years experience as a senior executive with proven success in rapidly growing technology businesses

• Former senior executive at iiNet, where he grew business services revenue to over $200m during his tenure

Non-Executive Chairman

• Experienced property developer and investor

• Founded Prime Health Group before merging it with Westpoint Healthcare to form Endeavour Healthcare

Non-Executive Director

• 20+ years experience in senior management roles including Country Manager of Airbnb Australia/NZ, GM South East Asia for eBay and Chief Sales & Marketing Officer for iiNet

• Non-Executive Director of TicToc Homeloans

Non-Executive Director

• 20+ years in corporate/advisory roles with ASX listed companies

• Executive Director of corporate advisory firm Grange Consulting, Non-Executive Director of ASX-listed companies Family Zone Cyber Safety Ltd, Jupiter Energy Ltd and Cassini Resources Ltd

Non-Executive Director

• Extensive experience in retail, property, sales and marketing, business management and tourism

• Founder & National Acquisitions Manager of National Lifestyle Villages

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Thanks

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