Interim Results Presentation December 2017 Today’S Agenda

Home , Savills

Interim Results Presentation December 2017 Today’s agenda

1 Business Highlights Michael Bruce

2 Financial Highlights James Davies

3 Strategic Overview Michael Bruce

4 Summary

5 Q&A

6 Appendix

2 1 Business Highlights Highlights - UK

EBIT Online market share Revenue up LPEs increased by 107% 1 118% to 650 £3.2m 74% (Oct 16: 314) (Oct 16: £0.3m loss) (Oct 16: 63%)

Average revenue per Currently H1 instructions 2.92m YoY Instructions instruction up monthly visits to our increased by 32,112 website, year on year 14% £1,138 increase of 84% (H1 17 17,424) (H1 2017: £1,000) 101%

Sold and completed on Conversion from Current SSTC pipeline instruction to sale Over 32,000 reviews agreed over2 on Trustpilot £4.62bn £3.75bn the most revewed (H1 2017: £2.59bn) 78% estate agent in the UK (Oct 2016: £2.52bn)

1At 12 December 2017 2May-October 2017

4 Highlights - Australia

Revenue increased to LPEs increased by H1 instructions Conversion from instruction £6.8m 600% to 1051 2,325 to sale agreed2 (Oct 16: £0.4m) (Oct 16: 15) (H2 17: 1,210) 83%

Average revenue per Over reviews Sold and completed on Commission saved for 1,500 instruction up on Trustpilot customers over $0.8bn 21% £3,145 9.4 Rated 'Excellent' (6 months to April 17: $322m) $22m AUD the most reviewed (H1 2017: £2,600) estate agent in Australia

1At 12 December 2017 2May - October 2017

5 2 Financial Review Financial Highlights - by region

Average revenue Revenue growth 118% to Gross Profit Adjusted EBITDA per instruction £39.9m £1,138 56.5% £4.7m (H1 17: £18.3m) (H1 2017: £1,000) (H1 17: 55.6%) (H1 17: £0.3m)

Average revenue per Revenue increased to instruction Gross Profit Adjusted EBITDA £6.8m £3,145 53.3% (£5.1m) (Oct 16: £0.4m) (H1 17: £2,600)

Investment up to end of H1 18 1 Further region £102k 40 LREEs £6m revenue launches

1At 12 December 2017

7 Income Statement - UK

UK • Significant revenue growth H1 2018 H1 2017 • Increase of 118% £m £m • 107% increase in LPEs1 Revenue 39.9 18.3 • Revenue per instruction up 14% to £1,138 Cost of sales (17.4) (8.1) • Ancillary revenue proportion increase Gross Profit 22.5 10.2 Administrative expenses (9.3) (3.8) • Gross profit margin of 56.5% vs 55.6% Sales and marketing costs (10.1) (6.6) • Higher proportion of ancillary revenue/further Operating profit/(loss) 3.2 (0.3) stabilisation Finance income/(expenses) 0.0 0.0 Profit/ (loss) before tax 3.2 (0.3) • Administrative expenses Taxation 0.0 0.0 • Headline increase of £5.5m vs prior period Profit/(loss) for the period 3.2 (0.3) • Underlying increase of £3.4m

Reconciliation of Operating Profit to Adjusted EBITDA • Sales and Marketing costs

Operating profit/(loss) 3.2 (0.3) • Increase of £3.5m as per guidance

Less: Depreciation and Amortisation 0.6 0.2 • Continued decline as a proportion of revenue

EBITDA 3.9 (0.1) • £3.2m operating profit vs £300k operating loss Less: Share based payments charge 0.9 0.4 Adjusted EBITDA 4.7 0.3 • Adjusted EBITDA achieved of £4.7m vs £0.3m

1. At 12 December 2017.

Notes Adjusted EBITDA is defined by the Group as profit/(loss) before net finance costs, tax, depreciation, amortisation and share based payments charge. Financial data have not been rounded. As a result the arithmetic total of data presented in this document may vary slightly from the sum.

8 Income Statement - Australia

AUS • First period with full market coverage H1 2018 H1 2017

£m £m • Highly experienced industry Sales Director and CMO

Revenue 6.8 0.4 appointed

Cost of sales (3.2) (0.2) • KPIs in line, or ahead of, the UK on a like for like basis Gross Profit 3.6 0.2 Administrative expenses (3.0) (1.7) • Significant revenue growth Sales and marketing costs (5.7) (1.0) • Up £6.4m from £0.4m in prior year and £3.1m in H2 17 Operating loss (5.1) (2.5) • 600% increase in LPEs Finance income/(expenses) 0.0 0.0 • Revenue per instruction up 21% to £3,145 Loss before tax (5.1) (2.5) Taxation 0.0 0.0 • Gross profit margin increase Loss for the period (5.1) (2.5) • Up to 53.3% from 49.7% as business develops

Reconciliation of Operating Profit to Adjusted EBITDA • Administrative costs and marketing spend

Operating loss (5.1) (2.5) • Developing in line with management expectations

Less: Depreciation and Amortisation 0.0 0.0 • Early signs of operational leverage

EBITDA (5.1) (2.5) • Loss for period £5.1m Less: Share based payments charge 0.0 0.0 Adjusted EBITDA (5.1) (2.5) • Cash investment as at 31 October 2017 of £9.3m

9 Income Statement - USA

USA • Launch date w/c 15th September 2017 H1 2018

£m • Income statement represents just five weeks of trading

Revenue 0.1 activity

Cost of sales 0.0 • Launched ahead of time, key themes to date Gross Profit 0.1 • Initial KPIs are promising Administrative expenses (3.8) • Attraction of experienced LREEs Sales and marketing costs (2.5) • Instructions being won Operating loss (6.3) • Offers being accepted Finance income/(expenses) 0.0 • Escrow business generating further revenue Loss before tax (6.3) • Sale prices above asking price being achieved Taxation 0.0

Loss for the period (6.3) • Agreed launch plans for second batch of regions in January

Reconciliation of Operating Profit to Adjusted EBITDA

Operating loss (6.3)

Less: Depreciation and Amortisation 0.0

EBITDA (6.3)

Less: Share based payments charge 0.0

Adjusted EBITDA (6.3)

10 Income Statement

Consolidated • Consolidated Group revenue of £46.8m, an increase of 150% H1 2018 H1 2017 on £18.7m in H1 17 £m £m

Revenue 46.8 18.7 • Average revenue per instruction is £1,263 up from £1,000 in H1 17 Cost of sales (20.6) (8.3) Gross Profit 26.2 10.4 • Gross profit margin of 56.0% Administrative expenses (16.2) (5.5)

Sales and marketing costs (18.3) (7.7) • Group gross profit increase of 152% to £26.2m (H1 17: £10.4m) Operating loss (8.2) (2.8)

Finance expenses 0.0 0.0 • Loss in H1 18 due to investment in establishing a national footprint in AUS whilst making our initial step into the US Loss before tax (8.2) (2.8) market, launching in our first Californian region Taxation 0.0 0.0

Loss for the period (8.2) (2.8)

Reconciliation of Operating Profit to Adjusted EBITDA

Operating loss (8.2) (2.8)

Less: Depreciation and Amortisation 0.7 0.2

EBITDA (7.5) (2.6)

Less: Share based payments charge 0.9 0.4

Adjusted EBITDA (6.6) (2.2)

11 Cost contribution analysis - UK

UK Evolution of marketing costs as a % of sales

Period ended 31 Oct (£m) H1 2018 H1 2017 Growth 100

Revenue 39.9 18.3 118% 91.7% 90

Underlying administration costs 6.7 3.3 107% 80

% of sales 17% 18% 70

60 Sales and marketing costs 10.1 6.6 53% 55.3%

% of sales 25% 36% 50 36.1%

% of revenue 40 Adjustments 2.6 0.5 31.3% Total non-direct costs 19.4 10.4 30

25.2% 20

H1 16 H2 16 H1 17 H2 17 H1 18

12 Consolidated cash flow bridge 30 April 2017 - 31 October 2017

£m 71.3 6.6 1.2 2 0.5 64.4

0 Cash at 30 April 2017 Adjusted EBITDA 2017 Movement in working Investment cash flow Net cash flow from Cash at 31 October 2017 capital financing

Movement during H1 2018

No corporation tax payments in H1 18. Expected to continue to utilise accumulated losses in FY 18

13 3 Strategic Overview Investing in people and innovation for growth

Leading historic change in the estate agency industry

people culture innovation learning winning

15 Investing in people and innovation for growth

Continuing to attract more first class people

Our LPE footprint

700

600

500

400

300

200

100

0 15 16 17 14 15 16 17 15 16 17 15 16 17 15 16 17 15 16 17 15 16 17 15 16 17 15 16 17 15 16 17 15 15 16 17 16 17 ------Jul Jul Jul Jan Jan Jan Jun Jun Jun Oct Oct Oct Apr Apr Apr Feb Sep Sep Sep Feb Feb Dec Dec Dec Dec Aug Aug Aug Nov Nov Nov Mar Mar Mar May May May

16 Investing in people and innovation for growth

£1,600,000 £1,000 Continuing to drive marketing efficiency £900 £1,600,000£1,400,000 £1,000

£800 £900 £1,400,000£1,200,000 £700 £800 £1,000,000 £1,200,000 £600 £700

£800,000 £500 £1,000,000 CPI Spend £600

£400 £800,000£600,000 £500 CPI Spend £300 £400 £600,000£400,000 £200 £300 £200,000 £400,000 £100 £200

£200,000£0 £0 £100

£0 £0

Spend CPI Linear (CPI)

Spend CPI Linear (CPI) 17 Investing in people and innovation for growth

Continuing to accelerate and outperform competitors with brand awareness

Spontaneous brand awareness (Not showing <3%)

Question: If you were thinking of selling your home, what companies would you think of contacting first? Respondents: c1,000 Source: Independent research agency The Nursery www.the-nursery.net

Sep '16 Mar '17 Sep '17 50% 45% 40% 37% 35% 30% 30% 25% 22% 21% 19% 20% 17% 15% 13% 15% 11% 10% 3% 4% 3% 3% 4% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 5% 2% 1% 2% 0% PurpleBricks Rightmove Zoopla Your Move Tepilo Connells Savills Reeds Rains Yopa

18 Investing in people and innovation for growth

Resonating with our audience

Commisery Campaign Probably the most successful industry advertising campaign ever: Series 3 is coming!

Party Wedding

"Home Truths" Campaign "Why take the risk of selling "How can you give me a good Unlocking those questions you want to online, wouldn’t I be better service when you charge so know but don’t ask. off with one of the big dogs?" little?"

"If Purplebricks don’t have "Why would you bother to branches will I end up doing get me the best price if you UK narrated by everything myself?" don’t charge commission?" Dawn French

"How can Purplebricks be cheap and good?" #smellsfishy

19 Investing in people and innovation for growth

Purplebricks’ position within the Top 7 online estate agencies

Share of properties for sale New Listings Market Share - Online Agents 80% 74% 73% 72%

70% 67% 16,310 63% 62% 58% Conversion60% 56% from 57% instruction to sale 2 50%agreed over [85.5%] 40%

30% 2,890 2,003 76 1,010 2,814 20% 1,741 576

No. of properties on the market No. 10%

Yopa emoov Tepilo 0% Hatched Purplebricks House Simple easyProperty House Network eMoov.co.uk E-Prop Limited Hatched.co.uk House Network

Housesimple Online Estate Agents Purplebricks Tepilo Limited Yopa Property Ltd • Increased our number of instructions • Increased our property stock • Increased our sales • Increased our market share by 20% in period

20 Investing in people and innovation for growth Continuing to build infrastructure targetted on performance

Post Sales Support Team Central Property Team Data Sales Team better service than ever more skilled than ever more intelligence than ever

Lettings Management Team Finance Team Compliance Team more control in-house more targeted on performance more protective of the brand

21 Investing in innovation for growth Continuing to be at the forefront of technological advancement

Book a valuation flow

Global thinking Development Support The Purplebricks and sharing 24/7 24/7 Innovation Strategy

22 Investing in people and innovation for growth

Continuing to leverage opportunity from our success

Successfully Starting the Growing growing a new journey of conveyancing homes longer lifetime sale footprint relationships

New products Exciting new Introducing with proposition for auctions Rightmove customers and Facebook

User experience - marginal gains producing big wins

23 Investing in people and innovation for growth Tepilo Continuing to create global efficiencies 4.5% Home Seller 4.0% % Purplebricks 3.5% Housesimple Ltd Leaders Ltd 3.0%

Savills Est Agnt 2.5% Media Spend and Market Share Growth Yopa 2.0%

Your Move Est Agnt 1.5%

Cubbyhole 1.0%

Purplebricks Com 0.5% Purplebricks Overall Market Share (%)

Easyproperty Com 0.0%

Emoov -17 Aug -17 Jun -17 £5,000,000 Technology Marketing People Market Consumer Apr -17 Intelligence Feb thinking -16 Dec £4,000,000 -16 Oct -16 Aug -16 £3,000,000 Jun -16 Apr

24 Media Spend -16 Feb £2,000,000 -15 Dec -15 Oct -15 £1,000,000 Aug -15 Jun £0 -15 Apr Investing in people and innovation for growth Continuing to invest in better informing our investors

25 Investing in people and innovation for growth Australia building market share

Stronger Attracting higher Growing reputation Building whilst Strong sales management team quality LPEs for excellence incumbents struggle performance

Third most Highly experienced Highly accomplished well-known brand Instruction run rate over CPI down Sales Director Marketing Director after only 12 months appointed appointed 60% up 20%

Selling Rated "Excellent' 77% increase in 30% increase in Adjusted sales rate 90% in NSW and by Trustpilot monthly revenue run conversion with 83% rate productivity changes 95% in Victoria 1500 reviews

26 Investing in people and innovation for growth Purplebricks Australia now sitting third in terms of spontaneous awareness.

Spontaneous awareness

Question: When thinking of selling your home, which companies come to mind. Respondents: 1,000 ESB = Eastern Seaboard Source: PHD.

• Sponsorship of prime • New TV commercials • New homepage, appraisal • Wider investment of hyper time TV show launching and onsite video content booking journey and local marketing to build with full integration of launching - 14th January instruction - all coming in on the ground credibility Local Property Experts Q1 throughout the series

27 Headline: The US: An enormous opportunity

US real estate brokerage economics • In the US, a real estate brokerage firm can monetise both sides of a transaction - buy and sell-side

£500,000 • Typically, a real estate commission is 5-6% of the home's sale prices, paid by the seller

6% Sales Commission paid by In California, comparable to other seller to Listing Agent • $30,000 states, it can be the same agent that represents a buyer and seller in the smae transaction, retaining 100% of the commission through a dual agency relationship 3% to Seller Agency 3% to Buyer Agency $15,000 $15,000 • In a traditional real estate model in the US, the broker will share a portion of the commission with real estate (independent contractors) that operate under their license 75% to Seller Agency 25% to Seller Broker 75% to Buyer Agency 25% to Buyer Broker $11,250 $3,750 $11,250 $3,750 • It's estimated, the average commission payout is 75% to agents under a traditional real estate brokerage

28 The US: An enormous opportunity

How it works comparison

1 2 3

Attend listing appointment Prepare property advert Take photos/do floorplan

Listing Agent Listing Agent Third party contractor

4 5 6

Order for sale board/any certificates Expose it to as many people as possible Introduce buyers

Listing Agent Listing Agent & Buying Agent Listing Agent & Buying Agent

7 8 9

Attend showings Negotiate offers Support to close/completion

Buying Agent Listing Agent & Buying Agent Listing Agent & Buying Agent

29 The US: An enormous opportunity

Early days: a really positive start

• Successfully developed our technology • Closed on a number of properties via our escrow business • Attracted first class Local Real Estate Experts • Feedback on people, model and technology all • Launched Real Misery Campaign very positive

• Significant web traffic and interest • Optimising: • Website and messaging • Converted traffic to listing appointments • Book a listing appointment flow • Conversion from appointment to listing ahead UK • The power of the technology • We have a strong and growing management team • Secured listings

• Sales agreed with our LREEs and via third party agents

30 2018 Guidance

Building now upon a unique opportunity

Guidance for the year

Increase of UK revenue Australia Increase in H2 UK guidance by revenues of Further US rollout marketing costs up to 5% to California £12m and beyond £3.0m £84m (Reconfirmed) over H1

31 4 Summary

32 Investing in people and innovation for growth

“Well positioned for further sustained success”

UK progress continues at pace • Winning market share from traditional agents • Further consolidating our lead with digital offerings • Leading on technical innovation • Operational gearing coming through into profit and margin growth

Proving the Purplebricks global appeal • Successfully localised the model for Australia and the US • Rollout into the five Australian states • Third highest brand awareness in Australia in just 12 months • Encouraging start to the US, with further expansion in January

33 Your opportunity to question management

5 Q&A 6 Appendix

35 Group cash flow statement

Consolidated • Strong working capital management continues, aided by our H1 2018 H1 2017 business model

£m £m • Investment in the platform to launch USA and new Adjusted EBITDA (6.6) 0.4 territory specific products in H1 18

• No corporation tax payments in H1 18. Expected to continue Movement in working capital 1.2 (1.7) to utilise accumulated losses in FY 18

• Cash as at 31 October 2017 of £64.4m, no debt Net cash flow from operations (5.4) (1.3)

Cash flow from investment activities (2.0) (0.9)

Cash flow from financing activities 0.5 0.5

Net increase in cash (6.9) (1.7)

Cash at beginning of year 71.3 30.5

Cash at 31 October 2017 64.4 28.8

36 Strong group balance sheet

Consolidated • Deferred tax asset rolled forward from year end H1 2018 H1 2017

£m £m • Investment in intangibles:

Deferred tax asset 3.3 0.0 • Platform development for AUS and US launch Intangible assets and goodwill 6.4 0.9 • Provisions of new products, services and features in AUS Property, plant and equipment 1.0 0.4 and US Non current assets 10.7 1.3 • Goodwill on lettings aquisition

Trade and other receivables 6.0 2.4 • Trade and other receivables and payables increase is a

Cash and cash equivalents 64.4 29.1 function of increasing size of business

Current assets 70.4 31.5 • Deferred income includes £1.7m UK, £0.8m Aus Total assets 81.1 32.8 • US placing March 2017 Trade and other payables (9.5) (5.5) Deferred income (2.5) (1.1) • Cash of £64.4m despite ongoing investment in developing Derivative financial instrument (0.2) 0.0 AUS operation plus US launch

Deferred tax liability (0.4) 0.0

Total liabilities (12.6) (6.6)

Share capital 2.7 2.5

Share premium 75.3 26.3

Share based payments reserve 1.6 0.7

Foreign currency reserve 0.1 0.0

Retained earnings (11.2) (3.3)

Shareholders’ funds 68.5 26.2

Equity and liabilities 81.1 32.8