Transformation Program and New Strategic Direction For personal use only July 2018
BMP’s Transformation Program BMP, Australia’s leading ‘DIY’ property sales platform, is pleased to announce its new corporate strategy, following a Transformation Program which has been underway since September 2017 For personal use only • buymyplace.com.au Limited (BMP:ASX), established in 2007 Transformation Program initiatives completed and listed in March 2016, is Australia’s leading DIY property Employ highly experienced CEO and senior management sales platform Endorsement of updated strategy − Growth in listings and revenue of 19.6% p.a. and 46.7% Acquisition of best-of-breed DIY rental technology p.a., respectively, since listing − Website traffic of over 40,000 unique visitors per month and Launch of financial services business a c. 26% share of the Australian DIY property sales market Launch of extensive digital marketing campaign • BMP commenced a significant Transformation Program in Thorough review of expenses and efficiency September 2017 with the following objectives: − Create genuine prop-tech capability Transformation Program initiatives underway − Optimise customer experience, choice and control Refinement of core products and dynamic pricing − Improve marketing effectiveness and efficiency Focus on customer experience and journey − Better leverage traffic with cross-sell opportunities Significant upgrade of technology capability − Build scale and liquidity for BMP shareholders Online transaction execution capability − Ultimately, to achieve operating profitability during 2019 Smarter spend on marketing and market perception • New CEO, Colin Keating, was appointed in November 2017 to create and deliver the Transformation Program Transformational Program initiatives in pipeline Further partnerships and acquisitions Page 2
buyMyplace is transforming to address market needs The Transformation Program facilitates the opportunity to be the market leader in digital property transactions For personal use only Previous Going forward Strategy focused on DIY initiatives to allow home An integrated platform and service offering for all owners to sell their home – buyMyplace concept property transactions (buy, sell or rent) Superior prop-tech capability Service business with thin will provide automation, data capture/utilisation and layer of technology scalability Choice and control delivered in a simple and Inconsistent customer experience transparent customer journey Comprehensive digital marketing campaign to drive Narrow focus on organic growth through traditional organic growth and acquisitions/JVs to fulfil marketing channels strategy Limited scale impacting relevance, liquidity and BMP will deliver scale and liquidity and a more investment in overhead appropriate overhead structure Page 3
A refined strategy focused on property transaction facilitation BMP’s vision is to become the leading digital facilitator of core property transactions (i.e. sell, rent and buy), accompanied by high quality ancillary products and services For personal use only Conveyancing, property searches and legal Financial services agreements Immediate benefit: Provide a sale of house option for the significant traffic that already visits the website, whether it is DIY, FFNC 1 or through a traditional Immediate benefit: Provide a full suite of agency property management solutions and services for existing RMP customers and create annuity style revenue stream Immediate benefit: Capitalise on the significant “buy” traffic that already flows to the platform Trades & builders Other services Decide to Select method Compare Prepare Settlement Move sell/rent/buy 1. Fixed Fee & No Commission Page 4
Key benefits of the new strategy The new corporate strategy represents a compelling opportunity to invest in a high growth business that is set to revolutionise the property sector For personal use only Unique integrated business Significant Market ripe for disruption model growth prospects • • • Integrated model is unique in Australia (i.e. Uniquely positioned to lead the disruption in Comprehensive digital marketing campaign to first mover advantage) Australia (40,000 monthly UVs) significantly increase traffic and awareness • • underway Delivers the scale to optimise marketing Original BMP thesis remains – if DIY sales are • spend and will provide comprehensive and 23% of property sales (akin to Canada), the Significant growth expected in financial valuable (i.e. predictive) data on customer DIY sales market increases to 100,000 services and the new property management behaviour potential listings platform • • • Optimise traffic through significant cross-sell Real estate agent incentives not aligned to Other acquisitions that ‘plug’ into the strategy opportunities their customer’s needs that create revenue synergies and cross- selling opportunities have been identified Prop-tech and automation Strong leadership and Profitable in the short-term focus processes • • • Technology investment will enhance New CEO and senior management team in If the Transformation Program is successfully automation and scalability to optimise place since October 2017, with considerable executed and the expected benefits are customer experience experience in technology and financial achieved, BMP expects positive EBITDA in • A strategic plan to grow the in-house tech services the second half of CY 2019 capability in line with roadmap initiatives to • Detailed technology implementation plan drive revenue growth • Automated cross-selling opportunities enhanced through data management strategy • Self-serving tools and content to drive inbound leads Page 5
Unique business model amplifies BMP’s market opportunity… The property sector is ripe for disruption, led by a centralised platform with a technology-enabled solution and dedication to a high quality customer experience For personal use only BMP capability BMP capability BMP capability Sell Rent Buy • • Investors Investors • Land owners • • Permanent tenants Home purchasers • Home owners Customers • • Holiday-let tenants Home builders • Investors • • Short-term tenants Renovators • DIY facilitation • DIY property management • • DIY facilitation Off-the-plan sales • Services Agent referral • • Builder and developer referral Agent referral • DIY tenancy management • Agent sales • • • Listing fee Listing fee Agency commissions • • • Upgrade and ancillary services Recurring management fee Lead referral fee Revenue model • • • Lead referral fee Lead referral fee Subscription fees • • • Market size $9.5 billion 1 $2.0 billion 1 $9.5 billion 1 • Online portals • Traditional real estate agents • • Traditional real estate agents Real estate agents • FFNC real estate agents 2 Incumbents • • FFNC real estate agents Property managers • Trade classifieds • Trades services 1. IBISWorld Industry Report L6720 Page 6
… and ability to collect, utilise and monetise data and cross-sell Understanding the customer, their needs and accurately predicting their behaviour will drive cross-selling opportunities and create inherent significant value for BMP For personal use only BMP capability BMP capability BMP capability Sell Rent Buy • • Bond finance New mortgage • Underwritten sale price • • Financial services Financial planning Depreciation schedules • Refinancing • • Insurance Insurance • Conveyancing • • Legal services Conveyancing Rent agreement review • Contract reviews • Post sale renovations • • Trades Pre-sale repairs Repairs and maintenance • Repairs and maintenance • • Property reports Property reports • Property purchase advice • • Valuations Moving services • Other Savings plan • • Moving services Landscaping/furnishing • Moving services • • Styling services etc. Inspections Page 7
Prop-tech capability – a critical component of strategy delivery BMP is focussed on technology improvement and is close to finalising investments in an online property management platform and online auction & bid tracking technology platform. BMP’s technology strategy overview is outlined below: For personal use only 01 Building a rich and meaningful customer Via better UX, enhanced customer journeys, and omni-channel services experience to grow conversion Deriving Customer Insights using data 02 Measured via sophisticated data analytics analytics to increase effectiveness of split into behavioural, transactional and financial services 03 Resulting in an enhanced customer Leveraging continuous improvement and experience and supporting future automation to drive operational efficiency scalability To deliver this, BMP will: Derive value from core Deliver value from new Building foundations Inhouse Tech Team business frontiers Investment to support Taking more control and Automation and efficiency Mergers & acquisitions growth accountability for delivery Page 8
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