PEXA Group Limited

Thank you for standing by and welcome to the PEXA Group Limited FY21 results call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I'd now like to hand the call over to Mr. Glenn King, Group Managing Director and Chief Executive Officer.

Please go ahead. Good morning.

First, I just want to say a thank you for joining today's call and welcome to our TEQSA's first results presentation as an AXS instant company. I particularly want to welcome all the new shareholders joining us today, including those in our practitioner member family and among our hard-working TEQSA team who supported this successful IPO. Now, I'm going to... refer to some of the slides in the presentation. So first of all, I'm on slide three, and I just want to introduce myself, Glenn King, the CEO of TEXA, and my colleague, Richard Moore, who's the CFO. Today, we'll go through our interest and financial performance for FY21, and we're presenting and representing all of our TEXA colleagues. You'll see the agenda on the page three, on the right-hand side. We'll cover some of the business highlights, an overview of our business performance for FY21, the financial year 21 financial summary, a bit of a cover on the outlook and updates for the future, and obviously we'll take some questions and answers towards the end. So to kick off, if we go to page 5 in the presentation, which is just giving an overview of the business highlights, And I must say, in terms of this year, financial year 21, was a significant year in the life of TEQSA, including our successful listing on the AFX on July 1. I can say that throughout the entire process, and despite the challenges of COVID lockdowns, the TEQSA team has remained focused on the business and insurance, have continued performance and delivery throughout financial year 21. As a result, we're pleased to say that we're in line or extended our pre-financial year 21 perspective forecast, and our multiple growth initiatives have progressed as we planned. And with a strong start to financial year 22, notwithstanding the impacts of lockdown, we are reaffirming our financial year 2022 prospective forecast. So if I go on to slide six, or page six in the presentation, I can certainly state that at both a financial and operational level, we're in line with our financial year 2021 prospective forecast. A couple of highlights. Our group revenue of $221 billion is up 42% year-on-year. Our extra exchange transactions at 3.3 million in financial year 21 is up 37% year-on-year. Our petrol exchange EBITDA of 110 million is up 114% and with our EBITDA margin is up 17 percentage points to 50% year-on-year. I must say that we've had strong metrics and performance all round for the Vector business as per our Financial Year 21 prospective forecast. Vector is a strong, resilient digital platform business. We've had sustained delivery and we have good growth potential. And if you go onto page 7, noting that good momentum and progress in Financial Year 21, across all our business. As an example, on the left-hand side of this page, we talk about our member highlights, and those who are new to VEXO, our members are our customers. A couple of things, as I mentioned, the growth in transactions on the VEXO exchange platform. In addition to that, in financial year 21, we continue to drive enhancements of the VEXO exchange business, with over 100 enhancements to the business. This included growth with respect to change services. It also reinforced the strong trust and partnerships we have built with our members, the lawyers and advisors that use our service, the financial institutions that utilize our service, our relationships and services within public sector agencies, all who use our services every day. We're a trusted platform business. And in addition to the ability of the electric science business in Australia in Financial Year 21, we also connect our additional growth businesses with entries into the UK, insights and insights, all started in Financial Year 21. So let's go a little bit further in terms of performance. I'm now going to go to our slide nine, or page nine, and just to talk a little bit in terms of the performance for Financial Year 21. So PECTA has four key growth areas, including the PECTA Exchange on the left-hand side of this bar page. Within the exchange, which is a large core business, we've increased our digital footprint through the introduction of new property transaction types. We're also bringing the growth and benefits of digital development to additional jurisdictions, such as growing in Queensland and South Australia, and also building out our connections with ATPs. But outside the picture it shows, we can make, in financial year 21, three additional growth businesses, being on the bank of our success in the Australian property, visual, and employment market. This includes Exxon International, where we're now seeing a replica of our success in Australia, in certain other international tolerance title markets, starting with the UK. Exxon France, which we started in FY21. We've started to commercialise our access to your meat, mini real-time and national copy information by providing industry insights and analysis to existing and new customers. And thirdly, it seeks to build partnerships through the new digital platform products and services to business, industry and government. Now, I'll go through those three growth missions shortly, but in the meantime, let's start with the core text-to-business performance in 2021, the exchange. So we'll now go on to page 10. So in financial year 21, again, a successful year. A couple of last things to call out. The Factor of Change is Australia's leading property settlement platform, handling 80% of all property transfers in Australia. We now have 160 financial institutions, 6 land title offices, 5 state revenue offices, 9,400 plus lawyers and practitioner firms, serving millions of consumers buying and selling homes, all connected with the PetroExchange or integrated with the PetroExchange platform. And, in addition to that, we have strong net promoter scores of plus 50. Over $1.5 trillion worth of property has now been settled on the PetroExchange platform. In fact, we're an essential platform service to one of the largest and most important sectors in Australia, property. We help connect property across Australia and ensure that it keeps performing well. The PECS Exchange platform performed as per our expectations in financial year 21, with, as I mentioned, over 80% of total property transfers now delivered through the PECS Exchange platform. And in financial year 21, we saw strong growth in our mule markets within Australia, In Queensland, it grew market share from approximately 10% to now over 50%. And in South Australia, in the high scenes, market share to now close to 95%. Fabric helped us follow the shift of paper transactions to digital and therefore going onto the PetroStrands platform. In fact, the PetroStrands platform benefited from the rise in total property market transactions in FY21. and we saw transfers continually grow. Volumes, in fact, remained strong throughout quarter four. The investor business is a totally resilient business, and we're not only doing this through transfers, but we also do property refinances. We also saw growth in that in 2021. In addition to that, we continued to grow and roll out more services to our customer base. And let's touch on some of that in the following slides, in slide 11. So in financial year 21, if we have a look at this particular slide, on the left-hand side, we have a strong innovative and customer culture, something that's been rebuilt up over a number of years. And that's come about not just in terms of what was transformed in terms, in regards to the property settlement platform across Australia, but also in the services that we continue to enhance and deliver. So in financial year 21, through the influence of our customers and data, we improved the customer strength and deepened our relationship with our customers. As an example, we rolled out a new single financial settlement summary to the PECSA chain. It improves on-time and on-day settlement for banks. We upgraded the PECSA developer practices and expenses through PECSA projects. We upgraded PECSA exchange consumer services with PECSA Keys. Hexatee now has over 100,000 students as users that allows them to track and communicate their property and bank details in a safe and secure way. And in Financial New 21, we've taken our partnership to work positively and proactively with governments and regulators to help with various reforms, such as possible standard duties and interoperability reforms. And on the right-hand side of this page, We expect to continually grow and progress in the Australian market. As an example, we expect to see adoption of digital settlements in new jurisdictions such as the ANZP. We expect to see additional digital enablement of stocking transactions in selected jurisdictions such as Western Australia that can be handled on the best Australian platform. We expect to see launch and development tomorrow of new petro-exchange products and services to deepen our engagement with practitioners, financial institutions and home buyers. And we will continue to work closely and collaborate with regulators and government to support industry reform and the broader economy. The petro-exchange business has done well. Now let's quickly turn to some of the additional growth initiatives. On slide 12, or page 12, starting with international. As I've mentioned, we started three great businesses in 2021. And PetroInternational targets light markets to Australia, which has characteristics such as time and title, and where there's an opportunity for users and leaders, resource and platformers for their needs. To lead the shift from profit-based property transactions to digital property transfers, refinances, a shift that is accelerating worldwide. And in Financing 21, we commenced our international expansion, starting with the UK. Early days, the good progress has been made. We have a local team in the UK, 14 professionals on the ground. We have an expert advisory board in place. We've appointed our build partner, Phil Brooks, excellent build partner, and the platform design and build is underway. With our cognitive engagement with bodies such as the Bank of England, the Anne Registry, and the private digital vendors, And I can confirm we're on target as per our commitments, in our perspectives, with banks that are committed to progress with our testing. And then if I go on slide 13, or page 13, our other two criteria in Financing Year 21 also started. We started our digital insights business. This business represents an opportunity to build new revenue streams of services from an active to unique data and insights. and we've started in financial year 21 and have made good early progress as for our commitments. For example, the PetroInclines team is now 40-plus, including a number of data specialists, and we have built out a new copy bureau. We've commenced the development of new Inclines products and services, and these are being tested with a small number of customers and tested well. This will also include the release of various PetroInclines reports through partnerships with others, such as Domain, to the Masterplace, generating good media and market attention. And this has helped us protect customers' domain and opportunities in the market. In addition to that, on the White House side, in financial year 21, we started Big Centres to appropriately partner and expand FECSA in the property ecosystem through the provision of new digital services to businesses, industry and government. And knowing that this is a new, early business, it still delivers in financial year 21, our launchpad. Our launchpad is the way it was released, and allows us to test new market innovations and digital services. We also had our first small investment with Honey Insurance, which in its own right is an industry visual disruptor. And we partnered with Small Business Australia to arrange business advantage to provide services to our business customers or members. So we believe it as direct commitments on our three additional growth businesses. And lastly, from myself, in terms of slide 14, you can only do these things if you have an organisation that is trusted and has a strong culture. And this is a critical role by testing the copy industry to ensure that it maintains and builds a culture of trust for their communities, partners, people, and communities as a whole. And in Financing 21, if I look from the left to the right, on this page, we maintain a strong performance as leading trusted brands among our business. In the middle, in Financing 21, despite COVID, we continue to have a highly engaged, talented and diverse workforce. And in fact, we've been effectively named in the top three best places to work in Australia for companies over 140. We have a strong people engagement of 80% plus. And it's a testament to the culture that they've built up over a number of years. And I'm proud of the PEXA team and our passion for customers. And a shout out to the team for the successful IPO. And lastly, as an organisation in 2021, we continue to take our ESG commitments seriously. We strongly believe in our role in the community. For example, we form-marked our net zero commitments and invented that innovative strategy around being involved. From a societal perspective, we partnered with organizations such as Homes for Homes, a flagship social impact partnership, a highly innovated program, looking to address homelessness. And, as another example, we continued to portray purpose at delivery and at commitments to diversity. So a successful performance in financial year 21, and I'll now hand over to Richard, who will take you through the financial performance.