Interim Results Presentation 5th December 2016 Todays agenda 1. - PowerPoint PPT Presentation

Interim Results Presentation 5th December 2016

Today’s agenda 1. Business Highlights - Michael Bruce 2. Financial Highlights - Neil Cartwright 3. Strategic Overview - Michael Bruce 4. Summary No. 1 Winner Winner Shortlisted Shortlisted Startups 100 List Tech Business of the Year 2015 Innovative Company of the Year Innovative Business of the Year 2015 Business of the Year 2014 2

1. Highlights 3

Business Highlights A sale agreed every 16 minutes Revenue up 159 % 24 hours a day 1 H1 2017 Local Property Experts UK profjtable at Current SSTC increased by Sold and completed on adjusted EBITDA level pipeline 119 % £0.3 m £2.589bn £2.521bn (H1 2016: (£(6.0m)) to 329 (H1 2016: 150) (FY 16: £2.766bn) Monthly run rate Conversion from Online market share 17,424 instruction to increased to sales agreed sale agreed over October 2017 3 63 % instructions 78 % 2 in H1 2017 2,823 (H1 2016: 41%) Average of Purplebricks Most reviewed estate agent Number of LPE's in the UK with over 1.45m Australia awarded share options 4 10,580 trading better than monthly visits to our 176 reviews on Trustpilot UK regional launch website (2016: 0.44m) Over 10,000 rated 'Excellent' 1 Based on sales agreed in October 2016. 2 Percentage of sale agreed to instructed from 16th May 2016 to 15th November 2016. This may represent the minimum conversion assuming those properties still on the market sell hereafuer. 4 3 Quarter ending 1st October 2016 - Rightmove Data. 4 As of 31st November 2016.

2. Financial review 5

Financial Highlights Group revenue growth Group Gross profjt Adjusted Group Adjusted Group 1 1 EBITDA EBITDA +159 % +154 % pre marketing costs (£2.2 m ) to £18.7m to £10.4m £5.5 m (H1 2016: £7.2m) (H1 2016: £4.1m) (H1 2016: (£6.0m)) The basic and Group loss before UK revenue Average revenue per diluted loss per share £29.1 m tax reduced to growth +154% to instruction up 13% decreased to Cash £18.3 m (£2.8 m ) £937 (£0.01) (H1 2016: £9.7m) (H1 2016: (£6.4m)) (H1 2016: £7.2m) (2015: £829) (H1 2016 rebased: (£0.03)) Average revenue per Adjusted Adjusted EBITDA Loss before tax instruction up 20.6% EBITDA - UK Pre marketing - UK - UK reduced to 2 £1,000 £0.3 m £6.9 m (£0.3 m ) (H1 2016: £829) (H1 2016: (£6.0m)) (H1 2016: £0.6m) (H1 2016: (£6.4m)) 1 Defjned by the Group as (loss)/profjt before tax, depreciation, amortisation, net non recurring fund raising / IPO costs and share based payment charges. 2 Actual number £1,000.06p 6

Income statement - UK • Strong topline growth at 154% vs. H1 2016 UK H1 2017 H1 2016 • H1 2017 revenue of £18.3m vs. FY 2016 revenue at £18.6m £m £m Revenue 18.3 7.2 • Gross profjt improvement of +149% to £10.2m (H1 2016: £4.1m) Cost of sales (8.1) (3.1) • Operational gearing continues to improve: Gross Profjt 10.2 4.1 - H1 2017 overhead and marketing costs at H1 2016 levels but Administrative expenses (3.8) (3.8) delivered scaling of growth of sales instructions Sales and marketing costs (6.6) (6.6) Operating loss (0.3) (6.4) • Adjusted EBITDA profjt of £0.3m for H1 2017 vs. H1 2016 Finance expenses 0.0 0.0 £6.0m loss Loss before tax (0.3) (6.4) Taxation 0.0 0.0 • Initial tranche of share options granted to LPE's in June 2016, Loss for the period (0.3) (6.4) further awards in December 2016 Reconciliation of Operating Profjt to Adjusted EBITDA Operating loss (0.3) (6.4) Less: Depreciation and amortisation 0.2 0.1 EBITDA (0.1) (6.3) Less: Share based payments charge 0.4 0.3 Adjusted EBITDA 0.3 (6.0) Notes 1. Adjusted EBITDA is defjned by the Group as loss/profjt before tax, depreciation, amortisation, net fjnance costs and Share based payments charge. 2. Certain fjnancial data have been rounded. As a result of this rounding, the totals of data presented in this document may vary slightly from the actual arithmetic totals of such data. 7

Income statement - Australia • Operational set up, infrastructure, recruitment and training AUS spring/summer 2016 H1 2017 H1 2016 £m £m • Trading commenced with our fjrst instruction on Revenue 0.4 0.0 12 th September 2016 Cost of sales (0.2) 0.0 1 Gross Profjt 0.2 0.0 • H1 2017 revenue £0.4m afuer 7 weeks (£0.57m and $1.08m AUD) Administrative expenses (1.7) 0.0 • Two initial launches: Sales and marketing costs (1.0) 0.0 - Queensland Operating loss (2.5) 0.0 - Victoria Finance expenses 0.0 0.0 Loss before tax (2.5) 0.0 • 50 LPEs recruited and operational by calendar year end Taxation 0.0 0.0 Loss for the period (2.5) 0.0 • Business growing more quickly than the UK business at the same point in its evolution Reconciliation of Operating Profjt to Adjusted EBITDA Operating loss (2.5) 0.0 Less: Depreciation and amortisation 0.0 0.0 EBITDA (2.5) 0.0 Less: Share based payments charge 0.0 0.0 Adjusted EBITDA (2.5) 0.0 Notes 1. Total instruction fees in period. £0.4m revenue as properties are live. Remainder of revenue will be recognised when properties list go live. Certain fjnancial data have been rounded. As a result of this rounding, the totals of data presented in this document may vary slightly from the actual arithmetic totals of such data. 8

Income statement • Consolidated Group revenue of £18.7m to H1 2017 vs. £7.2m for Consolidated H1 2016 (+159%) H1 2017 H1 2016 £m £m • Group gross profjt increase of 154% to £10.4m (H1 2016: £4.1m) Revenue 18.7 7.2 Cost of sales (8.3) (3.1) • Loss in H1 2017 driven predominantly by investment in Gross Profjt 10.4 4.1 Australian operation Administrative expenses (5.5) (3.8) Sales and marketing costs (7.7) (6.6) Operating loss (2.8) (6.4) Finance expenses 0.0 0.0 Loss before tax (2.8) (6.4) Taxation 0.0 0.0 Loss for the period (2.8) (6.4) Reconciliation of Operating Profjt to Adjusted EBITDA Operating loss (2.8) (6.4) Less: Depreciation and amortisation 0.2 0.1 EBITDA (2.6) (6.3) Less: Share based payments charge 0.4 0.3 Adjusted EBITDA (2.2) (6.0) Notes 1. Adjusted EBITDA is defjned by the Group as loss/profjt before tax, depreciation, amortisation, net fjnance costs and Share based payments charge. 2. Certain fjnancial data have been rounded. As a result of this rounding, the totals of data presented in this document may vary slightly from the actual arithmetic totals of such data. 9

Revenue growth driven by international rollout and LPE recruitment £M 20 • Total revenue growth of £11.5m in H1 2017 vs. H1 2016 (159%), fuelled by strong increase in UK instructions volume 0.4 AUS • UK revenue growth of 154% to £18.3m as a consequence of: 18.3 UK - LPE recruitment up 119% to 329 operational by October 2016 vs. 150 in 16 October 2015 - Continued development of product base to include premium listings, Scottish home reports and surveys 12 Growth of 1 • Average revenue per instruction increased by 20.6% to £1,000 159% (H1 2016: £829) • UK revenue includes c £1.1m of lettings revenue for H1 2017 (H1 2016: £0.3M) 8 • UK instruction deferred revenue of c £970K at 31st October 2016 7.2 UK 2 ($1.08m AUD) in c. 2 months afuer launch • Australian orders of £0.57m 4 0 Notes H1 2016 H1 2017 1. All recognised estate agency sales revenue as a percentage of recognised instructions in period (actual £1,000.06p) 2. Instructed but the property is yet to go live. £7.2m £18.7m 10

Gross Profjt £M 56.4% 12 • Group gross margin at 55.5% in H1 2017 55.5% • Very slight reduction in margin as a consequence of: - Modest dilution efgect of Australian launch margins at c. 49.7% 10 - Mix of revenue from UK products vs. FY 2016 0.2 AUS - Introduction of Scottish home reports at pass through rates 10.2 UK - Increase in London instructions relative to FY 2016 mix 8 • Minor price increase in late September 2016 with no efgect on sales instructions volumes 6 4.1 4 2 0 H1 2016 H1 2017 Gross profjt GM 11

UK sales growth outpacing cost investment • H1 2017 admin expenses in line with H1 2016 at £3.8m UK H1 2017 H1 2016 Growth • Operation leverage continues to develop with overhead of (£m) (£m) 20.8% of revenue – down from 52.7% in H1 2016 Sales and marketing costs 6.6 6.6 0.0% • In line with guidance these will increase in H2 2017 due to % of sales 36.3% 92.4% further investment in Data Sales Unit and Solihull premises Administration costs 3.8 3.8 0.0% • Overhead costs include £400K of share based payments % of sales 20.8% 52.7% which will increase signifjcantly in H2 2017 in line with new awards Total expenses 10.5 10.4 0.0% • Sales and marketing costs were in line with H1 2016 at £6.6m, but as a percentage of sales decreased to 36% (2016: 92%) Evolution of administration costs and sales and marketing expenses as a % of sales 200 Administration costs Sales and marketing 92.4% expenses 100 36.30% 52.7% 20.9% H1 2016 H1 2017 12