End of Year Results Presentation€¦ · - National footprint in H2 2016 - Growth in LPE numbers to 205 by end of April 2016 • Gross margin of 57% reflecting proportional growth

End of Year Results Presentation16th June 2016

I can honestly say the service I received from Emma and Purplebricks was fantastic. It was exactly what I had

hoped for - the personal service of the high street (better in fact) but also far

more convenient, not to mention a fraction of the price.Caitlin McLoughlin

2

Today’s agenda

1. Business Highlights - Michael Bruce

2. Financial Highlights - Neil Cartwright

3. Strategic Overview - Michael Bruce

4. Summary

No. 1Startups 100 List

WinnerTech Business of the Year 2015

Innovative Business of the Year 2015Business of the Year 2014

Winner Shortlisted ShortlistedInnovative Company of the Year

3

1. Highlights

4

Business Highlights

Local Property Experts increased by

159%to 205 (2015: 79)

Sold andcompleted on

£2.766 bn(2015: £832m)

Every Local Property Expert to be grantedshare options

on a long termincentive scheme

Current SSTCpipeline

£1.697 bn

Ended year with

2,827instructions

in April 2016

Average periodto exchange of

contracts

56 days2

Online market share increased to

62%3

(2015: 41%)

Conversion from instruction to

sale agreed over

77%1

Currently over

1.23mmonthly visits to our

website (2015: 0.44m)

Intention to launch Purplebricks in

Australiaa £3.3bn market

Current monthly rateof sales agreed of

2,386(May 2016)

Most reviewed estate agent in the UK with over

5,8004

reviews on Trustpilot

1Percentage against all instructed properties April 2015 - March 2016. This may represent the minimum conversion assuming those properties still on the market sell hereafter. 2Source - My Home Move (the largest conveyancing firm in the UK) Period from contracts issued to exchange of contracts. 3Period week ending 5 June 2016. 4Period ending 12 June 2016.

Revenue up 448%

5

2. Financial review

6

Financial Highlights

Revenue growth

+448%to £18.6m(2015: £3.4m)

£30.5mCash

(2015: £4.6m)

Gross profit

+427%to £10.6m(2015: £2.0m)

Average revenueper instruction

£901(2015: £703)

Adjusted EBITDA1

(£9.7m)(2015: (£5.3m))

The basic anddiluted loss per

share increased to

(£0.12)(2015: (£0.03))

Adjusted EBITDA1

pre marketing costs

£3.2m(2015: (£1.8m))

Loss before taxincreased to

(£11.9m)(2015: (£5.4m))

1Defined by the Group as (loss)/profit before tax, depreciation, amortisation, net non recurring fund raising / IPO costs and share based payment charges.

7

Income statement

Notes1.AdjustedEBITDAisdefinedbytheGroupasloss/profitbeforetax,depreciation,amortisation,netfinancecostsandSharebasedpaymentscharge.2.Certainfinancialdatahavebeenrounded.Asaresultofthisrounding,thetotalsofdatapresentedinthisdocumentmayvaryslightlyfromtheactualarithmetictotalsofsuchdata.

FY 2016 FY 2015 % Variance

£m £m

Revenue 18.6 3.4 +448%

Costofsales (8.0) (1.4) +479%

Gross Profit 10.6 2.0 +427%

GP% 56.9% 59.2%

Salesandmarketingcosts (12.9) (3.5) +272%

Administrationexpenses (9.6) (3.9) +142%

Loss before tax (11.9) (5.4) +119%

Depreciationandamortisation 0.1 0.0 +153%

Sharebasedpayments 0.6 0.1 +468%

Fundraisingcosts 1.5 -

Adjusted EBITDA (9.7) (5.3) +83%

• Strong sales growth as a result of: - National footprint in H2 2016 - Growth in LPE numbers to 205 by end of April 2016

• Gross margin of 57% reflecting proportional growth of instructions in period

• Sales and marketing costs grew at a slower rate than turnover as we expanded from five regions in FY 2015 to 10 in FY 2016

• Operational gearing improves: - Adjusted EBITDA pre-sales and marketing costs improved to £3.2m profit in FY 2016 (FY 2015: £1.8m loss)

• One-off fundraising costs of £1.5m included in administration expenses

Rebased Adjusted (£0.10) (£0.03)EBITDA loss per share(basic and diluted)

8

3.4

18.6

Revenue growth driven by national rollout and LPE recruitment

• Revenue growth of 448% to £18.6m (FY 2015: £3.4m)

• Strong increase in instructions volume

• Instructions complemented by additional services:

- Accompanied viewings - Premium display upgrade - Energy Performance Certificates (EPCs) - Conveyancing - Mortgages

• Average revenue recognised per instruction increased by 28.2% to £901*

in 2016 (2015: £702)

• H2 2016 revenue increase of 58.3% to £11.4m vs. H1 2016 (£7.2m)

• Deferred revenue from instructions not live of £780k at April 2016

• Completion revenue pipeline £2.5m at April 2016

0

FY 2015

20

16

12

8

4

FY 2016

£M

Growth of 448%

7.2

11.4

0

H1 2016

12

10

8

6

4

2

H2 2016

£M

+ 58.3%

*Averagerevenueperinstructioniscalculatedonestateagencysalesrevenueincludingconveyancingcompletions overthenumberofrecognisedinstructions.

9

Gross Profit

• FY 2016 Gross Profit increased by 427% to £10.6m

• H2 2016 Gross Profit increase of 58.5% to £6.5m (H1 2016: £4.1m)

59.2%

56.9%

Gross profit GM

2.0

10.6

FY 2015

12

10

8

6

4

2

0FY 2016

£M

4.1

6.5

H1 2016

8

6

4

2

0

H2 2016

£M

56.4%

57%

10

Cost contribution analysisYear ended 30 April (£m) FY 2016 FY 2015 Growth

Administrationcosts 7.4 3.8 95%

%ofsales 40% 112%

Salesandmarketingcosts 12.9 3.5 272%

%ofsales 69% 103%

Adjustments 2.2 0.1

22.5 7.4

• 2016 administration expenses were £7.4m, an increase of £3.6m as the company invested in the infrastructure to deliver growth:

- Establishment of Data Sales Unit

- Bolstering LPE growth and effectiveness

- Enhancing marketing capabilities

- Provision of first class technical and development resources in house

- Office relocation in Solihull

• Despite investment, as a percentage of sales these expenses fell to 40% (2015: 112%) demonstrating operating leverage

• Sales and marketing costs as a percentage of sales decreased to 69% (2015: 103%)

• Administration costs grew more slowly in H2 2016 crystallising operational gearing

• Adjustments of £2.2m are:

- £1.5m non recurring funding costs

- £0.6m (FY 2015: £0.1m) share based payment charges

- £0.1m amortisation and depreciation

103%

69%

2015

220

200

100

2016

Evolution of administration costs and sales and marketing expenses as a % of sales

112%

40%

Administration costs

Sales and marketing expenses

11

Cash flow statement

2016 2015

£m £m

Adjusted EBITDA (9.7) (5.3)

Movementinworkingcapital 2.6 0.3

Movementintaxation 0.0 0.3

Net cash flow from operations (7.1) (4.7)

Cashflowfrominvestmentactivities (0.5) (0.2)

Cashflowfromfinancingactivitiesgrossofcosts

35.0 8.1

Cashflowfromfinancingactivities-costsoffundraising

(1.5) 0.0

Netincreaseincash 25.9 3.2

Cashatbeginningofyear 4.6 1.4

Cash at 30 April 2016 30.5 4.6

• Strong working capital management created distance between £11.9m loss and £7.1m cash outflow

• Working capital movements aided by:

- Clients paying fees on instruction

- Clients taking advantage of deferred payment option provided by Close Brothers

- Supplier credit facility post listing

• £35m gross funds raised in 2016:

- £10m in July 2015 via placing

- £25m in December 2015 on listing

• No corporation tax payments in 2016. Expected to utilise accumulated losses until 2018

12

Strong balance sheet2016 2015

£m £m

Intangibleassets 0.4 0.1

Property,plantandequipment 0.2 0.1

Non current assets 0.6 0.2

Tradeandotherreceivables 2.9 0.8

Cashandcashequivalents 30.5 4.6

Currentassets 33.4 5.4

Total assets 34.0 5.6

Tradeandotherpayables (5.2) (1.1)

Deferredincome (0.8) (0.1)

Total liabilities (6.0) (1.2)

Sharecapital 2.4 0.0

Sharepremium 25.9 12.3

Sharebasedpaymentsreserve 0.4 0.1

Retainedearnings (0.6) (8.0)

Shareholders’ funds 28.0 4.4

Equity and liabilities 28.0 4.4

• Strong balance sheet with £30.5m cash as at 30 April 2016

• No debt financing requirement

• Investment in intangibles represents development work performed:

- Platform customisation for Scotland

- Provision of Purplebricks App (iOS and Android)

• Trade and other receivables includes:

- Trade debtors £1.0m

- Accrued income £0.4m

• Trade and other payables includes:

- Trade creditors £2.7m

• Balance sheet reconstructed prior to admission to AIM in December 2015

13

FY 2017 Guidance

• The UK business will move into profit in the current financial year

• LPE numbers as at 30 April 2017 - 360

• No corporation tax payable

• Overheads + £1m over 2016 (further investment in Data Sales Unit)

• Share based payment charge £1.5m

• Australia - separate subsidiary

• Likely exercise of options and warrants in 2017 is 7.6m shares

14

3. Strategic Overview

15

The Next Generation Estate Agent

Build upon Technology

New Products & Services

LPE Growth

Grow our Brand

Customer Support & Data Sales Unit

THECUSTOMER

Grow Feedback & Customer Loyalty

Launch inAustralia

16

Recruiting first class Local Property Experts

17

GrowthofLocalPropertyExperts

LicencedLPEs SublicencedLPEs







0

50

100

150

200

250


EmployedLPEs LicencedLPEs



Increase our LPE footprintGrowthofLocalPropertyExperts




18

Recruitment and Training

• Increased the recruitment team• Recruit the best - bulk of LPEs from the most successful corporate and independent estate agents• Quality - most recruits are Branch Valuer, Branch Manager, Senior Branch Manager or Area Manager status• 4 stage recruitment process, 11 day training programme• 245 LPEs by end of June 2016, 98% self-employed

Andrew VassRecruitment &

Training Director

Jamie Youngformer LPE

Adam Docwraformer LPE

Tom Kirkformer LPE

Jim Harrisformer Countrywide

Regional Recruitment and Training Directors

Debbie Fennellformer LPE

Head of Recruitment

19

Current monthly rateof sales agreed of

2,386(May 2016)

Selling houses and supporting customers is what we do

LPEs INSTRUCTIONS SOLD

JPDownes/JennaCable/ AdeleHollowood/SuzanneRegan 1st 1st

EmmaO'Sullivan/PaulCrump/ ClaireHassell 1st 1st

AlanHough/BenThompson 1st 1st

LoraHollingworth/JenniferDavis/ DuncanRoe/MichelleTromans 1st 1st

KevinLezar/PaulParnell/ DavidGarvey/GlenConn 1st 1st

DavidRoberts/GrahamColliss 1st 1st

A sample of LPE performance vs. local competition*

Sold andcompleted on

£2.766 bn(2015: £832m)

Current SSTCpipeline

£1.697 bn

Average periodto exchange of

contracts

56 days2

Conversion from instruction to

sale agreed over

77%1

1Percentage against all instructed properties April 2015 - March 2016. This may represent the minimum conversion assuming those properties still on the market sell hereafter. 2Source - My Home Move (the largest conveyancing firm in the UK) Period from contracts issued to exchange of contracts.

LPEs INSTRUCTIONS SOLD

DavidCatchpole/JoePearson/ DanielFreeman 1st 1st

SamanthSullivan/GearoidHunt/ DonnaJones/RhianMorgan 1st 1st

PaulBrown/ChrisEvans/KerryNeal/ JoshCarline 1st 1st

MathewLoach/DaveEvans 1st 2nd

SidO'Bagi/RobTwining/TomEvans 1st 2nd

MarkWilliams/JamieTownsend/KimJones 1st 2nd

PhilCook/JamesSkelding/ClareHindes 2nd 1st

*Rightmove statistics - covers various areas: London, Central, South, South West, Wales and Yorkshire

20

Selling property is what we do

Sample independent sold sign analysis2

Sample Local Property Experts instruction to sale conversion percentage1

AndrewButler 171%DeanMcCluskey 140%EmmaO'Sullivan 120%JamesHumphries-Stone 114%AdamLatimer 114%SimonTaylor 113%KashDhaliwal 109%

DanielFreeman 109%DavidRoberts 108%ScottTearall 108%MarkSlade 109%HayleyGill 109%DanFirth 108%JamieTownsend 108%

1 Research independently produced by For Sale Sign Analysis.2 Percentage of LPE stock SSTC compared to number of instructions January to May 2016.

21

Building a scalable business

Paul BrownAge: 47Area: Sheffield and DoncasterPreviously: 14 years at CountrywideTeam: 6 LPEsRecruiting: 2 LPEs and 1 LLE

“The help and advice provided by Paul Brown is second to none and nothing seems to be too much trouble. Paul has provided me with guidance on the

online sales process and a rapid response to all of my questions.”Michelle Boughton

Paul’s Territory TeamJemma HarrisAge: 29Joined: May 2016Previously: William H Brown (Sequence)Industry experience: 9 years

Paul SalkeldAge: 48Joined: February 2016Previously: Independent agentIndustry experience: 16 years

Josh CarlineAge: 27Joined: July 2015Previously: William H Brown (Sequence)Industry experience: 5 years

Kerry NealAge: 32Joined: April 2016Previously: HaartIndustry experience: 11 years

Chris EvansAge: 29Joined: April 2016Previously: Independent agentIndustry experience: 7 years

James WilliamsAge: 28Joined: May 2016Previously: CountrywideIndustry experience: 4 years

Paul Brown Instructions in 2016120

100

80

60

40

20

0

January February March April May

22

Our LPEs are much more productive...

The 15 ‘No’s:

A Local Property Expert and technology makes for the perfect estate agency experience

No commute to work

No morning meeting

No corporate structure

No canvassing

No booking valuations

No registering applicants

No arranging viewings

No chasing instructions

No sending property particulars

No chasing approval of property particulars

No getting properties live onto the internet

No ordering boards or EPCs

No seeking feedback or distributing feedbackafter viewings

No impact from high industry staff turnover rates

No window dressing

23

Selling and customer support

• Knows Purplebricks and estate agency inside out - former Local Property Expert with 12 years industry experience

• Previously a successful Branch Manager for Countrywide & Area Manager for the largest independent agent in Merseyside

• Skilled team of Central Property Experts

• Supporting customers with all aspects of the transaction

Head of Customer Support

Head of Post Sales Support

National Partnership Manager

“We are a full service estate agent who provides dedicated help and support throughout”

StephanieWalker

IsabelBruce

NevdeshGill

“Memish was very knowledgeable of the local property market and on

hand throughout, even on his day off.”Tim Holt

“Very professional and friendly, took time out to explain each step of the

process during the call.”Sophie

“Post Sales Support has been brilliant, very proactive, tenacious

and resourceful.”Anita Tricker

“Also love the eZie Conveyencing service. The web based set up makes

for excellent communications.”Kevin Gilroy

• Highly dedicated and committed to customer experience

• 15 years of industry experience

• Strong bond with each customer throughout – support available 24/7

• Highly integrated relationship with the customer, customer support, post sales support and the lawyers

• Qualified Conveyancing Lawyer with 10 years concentrated experience

• Highly successful and dedicated task force

• Not just chasing a traditional % of pipeline

• Plays a significant part through an integrated relationship with the lawyers that gets our customers to exchange of contracts in 56 days*

• Heading up customer experience during the conveyancing process

• 12 years high level experience

• Works with panel lawyers

• Concentrates on quality of service and customer KPI’s

• Increasing conversion to Purplebricks recommended conveyancers

• Working on other strategic relationships

*Source:Myhomemove(thelargestconveyancingfirmintheUK)PeriodJanuary–May2016fromcontractsissuedtoformalexchangeofcontracts

Fully inclusive 24/7:Combining a Local Property Expert, Central Property Experts, Post Sales Support and Integrated Conveyancing

Local Property Expert

MemishHuseyin

24

Data Sales Unit

Stephanie WalkerHead of Customer Support & Data Sales Unit

• Taking the data of buyers and sellers and offering them our products and services

• Winning valuations and revenue through dedicated people in dedicated roles

2 out of 7valuations

bookedby Data Sales Unit

100%increase in valuations

booked sinceJanuary 2016

87%increase in

instructions since January 2016

Brought all

customer support

in house

Recruited andtrained over

70dedicated people

“I received a call from a lovely gentleman called Lewis. He assisted me to book a viewing and explained everything fully.

He didn’t pressure me when I wasn’t ready yet which made me feel more comfortable and I feel like I would definitely use

them if I do sell my property.”

Sabrina Patel

25

9x

Purplebricks on Trustpilot

5,800 9.4over rated

Excellent more reviews than nearest competitor - up 50% since

January 2016

I would recommend Purplebricks in the future to friends and family for their efficient service and support. My dealings are with both Jenna and JP, both of whom are very supportive, at

the end of the telephone and offer a “nothing is too much trouble approach”.

Pat Bailey

It’s the first time I used an online company and although I had initial reservations about

how it would work, I quickly realised how easy and efficient the service is! Being able to do

everything by email/online makes it super easy and then I had a great agent.

Laura Wadlow

A refreshing approach to traditional estate agency. Extremely good value and a very

conscientious, prompt and professional service throughout the whole process. It beggars belief

how anybody can now accept a commission based agency arrangement.

Steve Johnson

independent customer reviews - up 66% since

January 2016

Rebecca BrownHead of Customer Experience

26

Growing our brand

27

12

Purplebricks ranks third for top of mind awareness, just below Zoopla

Spontaneous brand awareness (Not showing <2%)

Q2a. If you were thinking of selling your home, what companies would you think of contacting first? Base: All respondents (1,131)

18%

12% 10%

3% 3% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2%

Growing our brand

Source:IndependentresearchagencyTheNursery-www.the-nursery.net

Propert

y Port

alProp

erty P

ortal

28

Purplebricks is already a major national agency

Countrywide Connells Purplebricks LSL Spicer Haart Foxtons Kinleigh Savills

No.

of t

rans

actio

ns (p

er a

nnum

)1

61,00060,000

29,000

34,000

18,000

5,100 5,0002,600

September19,920

January24,700

April

1 Purplebricks figure is based on annualised number of instructions received in April 2016. The other figures have been obtained from publicly available infor-mation or estimated by management, may reference different 12 month periods and are based on completed sales numbers.

29

Online market share

Purplebricks

emoov

House Simple

House Network

Tepilo

Hatched

easyProperty Yopa

No. o

f pro

pert

ies o

n th

e m

arke

t

7,40

1

2,70

3

2,15

0

1,73

2

1,41

5

1,03

7

664

541

Shareofpropertiesforsale

Source:Zoopla.Figuresrepresentresidentialpropertiesforsalelistedasat02/06/2016.ForcommercialreasonswewithdrawpropertiesfromZooplawhenSSTC.

Purplebricks’ position within the Top 7 online estate agencies

Quarteronquartermarketshare

NewListingsMarketShare-OnlineAgents

NewListings-ActualKMcC

Agent 01/04/15 01/05/15 01/06/15 01/07/15 01/08/15 01/09/15 01/10/15 01/11/15 01/12/15 01/01/16 01/02/16 01/03/16 01/04/16 01/05/16 7days05/06/16#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!eMoov.co.uk 333 409 356 314 296 267 252 214 123 380 440 602 669 593 96E-PropLimited 0 0 0 0 27 163 55 74 6 19 152 69 165 203 50Hatched.co.uk 160 155 138 140 107 108 96 53 45 92 89 94 190 101 19HouseNetwork 238 229 242 192 180 193 176 123 67 201 293 349 359 302 71HousesimpleOnlineEstateAgents 289 255 280 343 347 368 411 365 218 464 499 529 392 443 84Purplebricks.com 974 1112 1323 1384 1407 1670 1565 1316 1087 2044 2526 2788 3108 3072 737TepiloLimited 395 342 296 285 268 260 218 122 140 288 649 433 386 384 84YopaPropertyLtd 0 0 12 8 10 8 1 12 6 14 66 84 183 226 41GrandTotal 2389 2502 2647 2666 2642 3037 2774 2279 1692 3502 4714 4948 5452 5324 1182

NewListings-%ofOnlineAgents

Agent 01/04/15 01/05/15 01/06/15 01/07/15 01/08/15 01/09/15 01/10/15 01/11/15 01/12/15 01/01/16 01/02/16 01/03/16 01/04/16 01/05/16 7days05/06/16#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!eMoov.co.uk 14% 16% 13% 12% 11% 9% 9% 9% 7% 11% 9% 12% 12% 11% 8%E-PropLimited 0% 0% 0% 0% 1% 5% 2% 3% 0% 1% 3% 1% 3% 4% 4%Hatched.co.uk 7% 6% 5% 5% 4% 4% 3% 2% 3% 3% 2% 2% 3% 2% 2%HouseNetwork 10% 9% 9% 7% 7% 6% 6% 5% 4% 6% 6% 7% 7% 6% 6%HousesimpleOnlineEstateAgents 12% 10% 11% 13% 13% 12% 15% 16% 13% 13% 11% 11% 7% 8% 7%Purplebricks.com 41% 44% 50% 52% 53% 55% 56% 58% 64% 58% 54% 56% 57% 58% 62%TepiloLimited 17% 14% 11% 11% 10% 9% 8% 5% 8% 8% 14% 9% 7% 7% 7%YopaPropertyLtd 0% 0% 0% 0% 0% 0% 0% 1% 0% 0% 1% 2% 3% 4% 3%GrandTotal 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Q1FY2016 Q2FY2016 Q3FY2016 Q4FY2016 week1June2016eMoov.co.uk 1,079 815 717 1,643 96E-PropLimited 0 245 99 315 50Hatched.co.uk 433 311 190 373 19HouseNetwork 663 549 391 1,001 71HousesimpleOnlineEstateAgents 878 1,126 1,047 1,420 84Purplebricks.com 3,819 4,642 4,447 8,422 737TepiloLimited 923 746 550 1,468 84YopaPropertyLtd 20 19 32 333 41GrandTotal 7,815 8,453 7,473 14,836 1,182

Q1FY2016 Q2FY2016 Q3FY2016 Q4FY2016 week1June2016eMoov.co.uk 14% 10% 10% 11% 8%E-PropLimited 0% 3% 1% 2% 4%Hatched.co.uk 6% 4% 3% 3% 2%HouseNetwork 8% 6% 5% 7% 6%HousesimpleOnlineEstateAgents 11% 13% 14% 10% 7%Purplebricks.com 49% 55% 60% 57% 62%TepiloLimited 12% 9% 7% 10% 7%YopaPropertyLtd 0% 0% 0% 2% 3%

Intheq4numbersEasypropertyresidentialnewbuild 26Commercial 45

71

EmoovCommercial 55landforsale 13

68

41%

44%

50%52%

53%55%

56%58%

64%

58%

54%

56% 57% 58%

0%

10%

20%

30%

40%

50%

60%

70%

01/04/15 01/05/15 01/06/15 01/07/15 01/08/15 01/09/15 01/10/15 01/11/15 01/12/15 01/01/16 01/02/16 01/03/16 01/04/16 01/05/16

NewLis]ngsMarketShare-OnlineAgents

eMoov.co.uk E-PropLimited Hatched.co.uk HouseNetwork HousesimpleOnlineEstateAgents Purplebricks.com TepiloLimited YopaPropertyLtd

0%

10%

20%

30%

40%

50%

60%

70%

Q1FY2016 Q2FY2016 Q3FY2016 Q4FY2016 week1June2016

QuarteronQuartermarketshare

eMoov.co.uk E-PropLimited Hatched.co.uk

HouseNetwork HousesimpleOnlineEstateAgents Purplebricks.com

TepiloLimited YopaPropertyLtd

NewListingsMarketShare-OnlineAgents

NewListings-ActualKMcC

Agent 01/04/15 01/05/15 01/06/15 01/07/15 01/08/15 01/09/15 01/10/15 01/11/15 01/12/15 01/01/16 01/02/16 01/03/16 01/04/16 01/05/16 7days05/06/16#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!eMoov.co.uk 333 409 356 314 296 267 252 214 123 380 440 602 669 593 96E-PropLimited 0 0 0 0 27 163 55 74 6 19 152 69 165 203 50Hatched.co.uk 160 155 138 140 107 108 96 53 45 92 89 94 190 101 19HouseNetwork 238 229 242 192 180 193 176 123 67 201 293 349 359 302 71HousesimpleOnlineEstateAgents 289 255 280 343 347 368 411 365 218 464 499 529 392 443 84Purplebricks.com 974 1112 1323 1384 1407 1670 1565 1316 1087 2044 2526 2788 3108 3072 737TepiloLimited 395 342 296 285 268 260 218 122 140 288 649 433 386 384 84YopaPropertyLtd 0 0 12 8 10 8 1 12 6 14 66 84 183 226 41GrandTotal 2389 2502 2647 2666 2642 3037 2774 2279 1692 3502 4714 4948 5452 5324 1182

NewListings-%ofOnlineAgents

Agent 01/04/15 01/05/15 01/06/15 01/07/15 01/08/15 01/09/15 01/10/15 01/11/15 01/12/15 01/01/16 01/02/16 01/03/16 01/04/16 01/05/16 7days05/06/16#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!eMoov.co.uk 14% 16% 13% 12% 11% 9% 9% 9% 7% 11% 9% 12% 12% 11% 8%E-PropLimited 0% 0% 0% 0% 1% 5% 2% 3% 0% 1% 3% 1% 3% 4% 4%Hatched.co.uk 7% 6% 5% 5% 4% 4% 3% 2% 3% 3% 2% 2% 3% 2% 2%HouseNetwork 10% 9% 9% 7% 7% 6% 6% 5% 4% 6% 6% 7% 7% 6% 6%HousesimpleOnlineEstateAgents 12% 10% 11% 13% 13% 12% 15% 16% 13% 13% 11% 11% 7% 8% 7%Purplebricks.com 41% 44% 50% 52% 53% 55% 56% 58% 64% 58% 54% 56% 57% 58% 62%TepiloLimited 17% 14% 11% 11% 10% 9% 8% 5% 8% 8% 14% 9% 7% 7% 7%YopaPropertyLtd 0% 0% 0% 0% 0% 0% 0% 1% 0% 0% 1% 2% 3% 4% 3%GrandTotal 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Q1FY2016 Q2FY2016 Q3FY2016 Q4FY2016 week1June2016eMoov.co.uk 1,079 815 717 1,643 96E-PropLimited 0 245 99 315 50Hatched.co.uk 433 311 190 373 19HouseNetwork 663 549 391 1,001 71HousesimpleOnlineEstateAgents 878 1,126 1,047 1,420 84Purplebricks.com 3,819 4,642 4,447 8,422 737TepiloLimited 923 746 550 1,468 84YopaPropertyLtd 20 19 32 333 41GrandTotal 7,815 8,453 7,473 14,836 1,182

Q1FY2016 Q2FY2016 Q3FY2016 Q4FY2016 week1June2016eMoov.co.uk 14% 10% 10% 11% 8%E-PropLimited 0% 3% 1% 2% 4%Hatched.co.uk 6% 4% 3% 3% 2%HouseNetwork 8% 6% 5% 7% 6%HousesimpleOnlineEstateAgents 11% 13% 14% 10% 7%Purplebricks.com 49% 55% 60% 57% 62%TepiloLimited 12% 9% 7% 10% 7%YopaPropertyLtd 0% 0% 0% 2% 3%

Intheq4numbersEasypropertyresidentialnewbuild 26Commercial 45

71

EmoovCommercial 55landforsale 13

68

41%

44%

50%52%

53%55%

56%58%

64%

58%

54%

56% 57% 58%

0%

10%

20%

30%

40%

50%

60%

70%

01/04/15 01/05/15 01/06/15 01/07/15 01/08/15 01/09/15 01/10/15 01/11/15 01/12/15 01/01/16 01/02/16 01/03/16 01/04/16 01/05/16

NewLis]ngsMarketShare-OnlineAgents

eMoov.co.uk E-PropLimited Hatched.co.uk HouseNetwork HousesimpleOnlineEstateAgents Purplebricks.com TepiloLimited YopaPropertyLtd

0%

10%

20%

30%

40%

50%

60%

70%

Q1FY2016 Q2FY2016 Q3FY2016 Q4FY2016 week1June2016

QuarteronQuartermarketshare

eMoov.co.uk E-PropLimited Hatched.co.uk

HouseNetwork HousesimpleOnlineEstateAgents Purplebricks.com

TepiloLimited YopaPropertyLtd

30

Growing our brand

Search terms

purplebrickspurple brickspurplebricks.com

foxtonsfoxtons.com

connellsconnells.com

haarthaart.com

Google search volumes Source: Google Trends Period: April 2015 - May 2016

100

80

60

40

20

Google search traffic vs. high street agents

31

100

80

60

40

20

Growing our brand

Search terms

purplebrickspurple brickspurplebricks.com

emoovemoov.com

tepilotepilo.com

housesimple.comhouse simplehousesimple

Google search volumes Source: Google Trends Period: April 2015 - May 2016

Google search traffic vs. online agents

easyproperty.comeasy propertyeasyproperty

32

Growing our brand

Launch campaign - ‘Expert’ ‘Good vs. Cheap’ campaign

‘Oil Painting’ campaign ‘An estate agent you can love’ campaign

TV Campaigns Campaign

33

Building on our market leading technology

34


Website

Visits1.23m

(April 16)

Up 371%

Unique Visitors616,172

(April 16)

Up 366%

Page Views7.0m

(April 16)

Up 339%

Our TechnologyAdvanced Changes

10,031New Features

2,918

35


The Purplebricks SELLERS AppLaunched 05 April 2016

No advertising or marketing of the App as yet

Active Users 10,151Downloads 11,838Sessions inlast 30 days 262,123

• “The Purplebricks BUYERS App”

• Creating a fantastic experience for BUYERS

• New features and development for SELLERS

• New products and services to be integrated

• Tech Australia

Our tech and the future

36

Launch Australia - Background

• Population 23,100,000

• Average house price £306,000 ($612,000 AUD)

• Estate Agents fees: Approximately £3.3 billion market ($6.75 billion AUD)

• Approximately 500,000 sales per annum

• Approximately 700,000 properties to market

• 87% of sales in states of New South Wales, Queensland, Victoria and South Australia

• Average estate agents fees £6,000 ($12,000 AUD)

• Marketing costs are extra – Average £2,500 ($5,000 AUD)

• Estate Agents: 36,000 (18,000 UK)

• Two methods of sale: Private treaty & Auctions

• Similar market to UK – Market share: - Ray White 8% - LJ Hooker 4.8% - McGrath 3.2%

• No Purplebricks model

• No Purplebricks Technology

• No hybrid estate agent like Purplebricks

37

Launch Australia - The Opportunity

• Opportunity to be as BIG as the UK

• Low risk, low cost investment – launching regionally

• Maximum forecast cash investment of £10m spread over a two year period

• Potentially significant returns

• Time to breakeven less than 2 years

• Conducted an extensive independent consumer research programme via The Leading Edge an award winning consumer research agency

• Australian consumers have a significant appetite for the Purplebricks proposition

• Completed an in-depth modelling and market requirement process

• Adapted our market leading technology to fit the Australian market

• Marketing strategy and plan completed

• CEO and first line management team in place

• Recruitment & Training strategy finalised

38

4. Appendix

39

Changing the landscape

The opportunity for the very best estate agents in the UK to be their own boss

Empowering them to create their own scalable, profitable business

We give our Local Property Experts

A BRAND ADVERTISING& MARKETING

ANINFRASTRUCTURE

VALUATIONOPPORTUNITIES

FIRST CLASS TECHNOLOGY

24/7SUPPORT

40

Combining people with technology

Technology that acts like the perfect professional estate agent partner

Delivering on our promises

Reliable - never ill, never late, never on holiday, never sleeps, always works at their optimum levelBooks their valuationArranges their viewingsHandles all of their instructionsOrders their EPC’s and boards instantly Gets the property particulars approved and onto the property portalsCollects and provides their customers with feedback Updates their customers on their marketing when they want to be updatedProvides advice when the customer needs itChanges the price when requiredReceives and negotiates offersAnd they work 24 hours a day

41

Delivering cost effective value and first class service

What’s in it for the customer?They pay a fraction of the cost of a traditional estate agent

They get a first class Local Property Expert who retains responsibility for delivering on the service until they move home

Their house can be live on the market in under an hour anytime 24/7

We can undertake all the viewings for an additional fee

They get access to the Purplebricks eZie platform

Access to their LPE and they can speak to someone 24/7

They can instantly see everything that is happening with the sale of their property

App being launched for further convenience

They can use our mortgage and conveyancing services, purchase insurance and other products and services

They get support from our Post Sales Support team once their house is sold through to them moving home

42

Estate agents want to be LPEs

All Local Property Experts go through a rigorous training and recruitment programme

They are some of the most experienced estate agents in the industry who want to run their own businesses

Most are self-employed (90% soon to be 98%)

They have their own postcode to postcode region

They engage people within their territory to act as a Local Property Expert (subject to the same recruitment and training programme) – continuing the plan of becoming ultra local

They build their business and grow capital worth in their territory

They earn more money

They are more productive

Technology acts as the custodian for ensuring we deliver first class customer service

43

Disclaimer

This presentation includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believe”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “may”, “will”, or “should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include matters that are not historical facts and include statements regarding the Company’s intentions, beliefs or current expectations.

Any forward-looking statements in this presentation reflect the Company’s current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation. No representations or warranties are made as to the accuracy of such statements, estimates or projections.

Please note that the Directors of the Company are, in making this presentation, not seeking to encourage shareholders to either buy or sell shares in the Company. Shareholders in any doubt about what action to take are recommended to seek financial advice from an independent financial advisor authorised by the Financial Services and Markets Act 2000.

Documents

End of Year Results Presentation€¦ · - National footprint in H2 2016 - Growth in LPE numbers to 205 by end of April 2016 • Gross margin of 57% reflecting proportional growth