Investor Day 2022 PEXA UK and PEXA Insights 13 May 2022
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Investor Day 2022 PEXA UK and PEXA Insights 13 May 2022
Important Notice and Disclaimer
This presentation and the information accompanying it Forward statements Market and Industry data
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1
Today’s speakers Today’s agenda
Scott Butterworth
About PEXA & Group strategy 3
Chief Data & Analytics Officer
> An accomplished business leader working across many sectors in a variety of roles, across Asia, Europe and
Australia
> Previously CFO at Slater & Gordon (ASX: SGH) from late 2018, until he joined PEXA in November 2021. Prior to PEXA Insights 4
that, worked in financial services, mostly at NAB in Australia and the UK, with a short period at Westpac. Scott
was also a Partner at Boston Consulting Group’s Financials Services practice in Australia and New Zealand.
> Scott’s passion is for harnessing data-driven insights to provide value to government, financial institutions,
PEXA members and the broader property sector PEXA UK 12
James Bawa
CEO UK Q&A
> A highly motivated executive leader with extensive experience in transformational change across financial and
property sectors in the UK
> Previously CEO at JN Bank UK, a cloud-based challenger bank which he set up and obtained a new license for;
and CEO at Teachers Building Society, where he was responsible for re-engineering the society into a
specialist lender (wining “Best Local Building Society 2011-13), Monmouthshire Building Society and Scottish
Legal Life Assurance Society
> Extensive regulatory experience with over 12 years as a panel member of the Financial Services Authority and
Financial Conduct Authority. James applies a communicative, energetic, participative, and inspirational
leadership-style
Gary Howard
Chief Transformation Officer, PEXA
> Known for his leadership and delivery, both in terms of start-ups, and business transformation / turnarounds
> Experience of the last 10 years is somewhat unique, having seen PEXA from both sides; as an end user leading a
transformational implementation of PEXA into one of the Australian Big 4 Banks, and within PEXA given his
broader role leading Business Transformation
> Over 30 years’ Financial Services experience in Australia and the UK, he brings a unique perspective to the
International team having led large lending functions in Australia and overseas.
2
About PEXA & Group strategy
PURPOSE
TO TRANSFORM THE PROPERTY EXPERIENCE FOR EVERYONE
ENHANCE REPLICATE EXTEND BUILD
PRIORITIES
Enhancing the core Exchange in Bringing digital property settlement Developing and partnering to provide Investing in our people, platform
Australia building deeper solutions to Torrens title jurisdictions innovative data insights and digital and brand to sustain an innovative
customer relationships internationally services, transforming the experience of culture and reputation trusted by
developing, buying and selling, settling, stakeholders
owning and servicing properties
VALUES
PEXA
INSIGHTS
4
Leveraging PEXA’s data and distribution
Workflow and events PEXA Channels
~85% of all property transactions
~160+ FIs
~ 9,600+ practitioners
Settlement location ~ 58 developers
TRANSACTIONS
PEXA Insights
Australia’s most accurate geographic ~157 government / other
mobility data for owners ~140k PEXA key invites
PEXA Customer solutions
issued YTD
Exchange • Descriptive
Settlement value
• Predictive
~$800b pa of settlements for resi,
commercial and rural property • Proscriptive
Partner channels
Refinancing
> 90% of all inter-FI re-financings
Acquired data
Note: YTD reflects July 21 – April 22
5
Comprehensive Australian property content
6
Property markets will be reshaped
• New patterns of demand
• Economic settings • Migration will trend back to
Demand
emerging
- Interest rates pre-Covid levels
- Changing use of CBDs
- Fiscal policy • Demand vs supply of
- Regional growth
Economy - Housing policy Demographics housing Post-Covid - Hyper-localisation
• Pricing • New mechanisms to
- Housing improve affordability
- Agricultural - Interests
Property values - Some commercial Affordability - Financing
• Pressure on building costs
• Pressure on zoning and use
Supply
- Supply chain impacts • Climate change will
constraints
on materials increasingly reshape land
- Free up supply
- Shortages of critical use and value
Land use - Unlock significant value
Factor costs construction skills Climate
7
$1.1b land information market by FY27
Estimates of market for land information: FY22 – FY27 ($m)
CAGR (% pa)
1,120
~17%
909
764
665 ~43%
656
464
578
520 324
226
158
110
420 430 440 445 455 ~2 %
410
FY22 FY23 FY24 FY25 FY26 FY27
1 2
Traditional Augmented
Note: Estimates rounded to nearest $5m, Source:
1. Frost & Sullivan Market Report as per IPO prospectus
2. PEXA estimates
8
Areas of focus
Segment Demand for land Use of land System efficiency Housing affordability Data / Capability
Federal government
Work with
partners to
foster debate on
State government affordability
Purpose,
reputation and
Local government Leverage talent
Leverage PEXA’s
distribution, Commercial
geographic Leverage
extend PEXA’s partnerships to
mobility data transaction and
Financial Institutions relationships acquire data,
Refi data
analytics
~20% of ~13% of market 1 capability and
market 1 PXI
distribution
Developers products
~38% of
Agents market 1
Practitioners
Consumers
1 % of estimated market in 2027
9
Source: PEXA estimatesStrategic investment in Landchecker
> PEXA Insights made its first significant strategic
investment during 1H22 in prop-tech data company,
Landchecker
–38% stake (RACV 51%, Founders 11%)
> Landchecker allows homebuyers, developers and
renovators to make informed property decisions,
faster:
–Informing consumers about planning restrictions
– Planning permit applications such as pending
development next door
–Planning restrictions such as heritage overlay
10
–Approximate land size, boundaries and
dimensions
> Investment enriches the unique and timely property
data PEXA is unlocking for industry
>Creates new value for consumers, government
and industry through additional products and
servicesProgress and objectives
Mid 2021 – Mid 2022 Mid 2022 – end 2023 2024/2025 +
Foundation Build Accelerate
Team • Established team - data • Leadership team for scale up
scientists, data engineers,
product specialists
1
Product • Built and launched two new • Launch 5+ new PXI products
products into market
1 Run business at scale –
• Launch 5+ new research
circa $50m revenues pa
products
Partnerships • State governments – data • M&A pipeline – augment
• Melbourne Business School capability, data, distribution
• Landchecker • Commercial arrangements
1. Subject to regulatory approval
11PEXA UK
12PEXA is uniquely placed to become a first mover globally
and disrupt the completion of property transactions
Global leaders in building and Depth of experience in Proven track record with Capability for building supplier
operating an orchestrated managing industry operating a complex and customer integrations that
lodgement and settlement transformation and regulatory enterprise platform at scale enable an end-to-end solution
platform for the completion of developments
property transactions
13Market scoping resulted in the UK being
assessed as the most significant opportunity
PEXA undertook a structured scoping exercise to identify target The global opportunity set was filtered through six criteria
markets of opportunity
Multiple international
jurisdictions were assessed 1 2 3
Six filtering criteria were applied Common processes / Ease of Total
to identify target markets Torrens title jurisdictions doing business annual transactions
4 5 6
Target markets were ranked to
identify the highest priority Bank Proportion of English Population
concentration speaking population
Target markets:
UK NZ
Canada
Estimated digital property
Initial priority settlements potential market size Population Dwellings
As a large Torrens title market
market: Country (A$m)1 (m)2 (m)3
PEXA’s success in the UK will
further strengthen its reputation
UK
as the global e-conveyancing (England and England and Wales $641 59.4 24.7
leader as it continues to grow Wales)
Scotland $62 5.5 2.3
into other markets
Northern Ireland $17 1.9 0.8
14Building an ecosystem of participants who together
will transform the current heavily manual process
The PEXA-enabled ecosystem will:
Borrower • Deliver a brand new settlements scheme at
the Bank of England
Outgoing
• Enable lenders and conveyancers to work
Incoming
Lender Lender collaboratively within a single workspace –
using a combined workflow
• Automate a significant amount of the admin
overhead currently associated with property
Land
completion
Registry Conveyancer
• Automate searches and lodgement through
integration with Her Majesty's Land Registry
Bank of
England
Transacting Entities Enabling Entities Does not access the platform
15PEXA UK solution overview
Key Partners for PEXA Pay
Financial Institutions, Conveyancers, Other parties,
e.g. Banks, Lenders Legal etc. e.g. Borrowers
BANK OF ENGLAND
PEXA Pay Subscribers
• PEXA Pay is the seventh net settlement
payment system to clear through the Bank
of England
Workspaces
REMO Transaction • The previous six are BACS, C&CCC, CHAPS,
LINK, Paym and Faster Payments
• PEXA Pay became live in March 2022
Netting Payment Query Lodgement
Settlements Lodgement
PEXA Go Platform • UK’s first clearing bank in more than 250
years
Bank of England, Non Scheme Land Registry, • ClearBank is a next-generation clearing
PEXA Pay Payments, HMLR
Transaction Bank
and embedding banking platform
Payment Scheme
SWIFT • Partnered with PEXA to disburse funds to
accounts held with Lenders not already
PEXA Payments & Disbursement
integrated with PEXA
16Lenders are key beneficiaries of the PEXA remortgage solution
Enabling frictionless Remortgages. Reduce direct processing cost
Faster completions with more certainty.
Decrease time to completion
Providing a streamlined and automated post offer to completion solution
for Remortgages that is integrated to HMLR and the Bank of England to Increase Remortgage capacity
orchestrate lodgement and financial settlement.
is
debt consolidation
17PEXA’s remortgage solution also unlocks
significant benefits across the UK industry
Consumers Her Majesty’s Land Registry Government & Regulators
✓ Enhanced security ✓ Improved data quality for lodgement ✓ Addresses imperatives and
✓ Increased speed and certainty ✓ Increased uptake of the Digital challenges highlighted by COVID-19
✓ Seamless completion process Mortgage ✓ Aligns with UK Gov policy and
✓ Lower costs from far less work, errors digital strategy to “Build world-class
✓ Transparency of post offer process digital infrastructure for the UK”
and rework
✓ Better loan deals created by ease ✓ Promotes good consumer
of switching outcomes and competition
18Progress and next steps
Remortgage Bank of England Sale & Purchase Sale & Purchase MARKET SHARE
Reconnaissance discovery & build Go-Live discovery launch TARGETS
→ 2020 Q1 2021 → Q1 2022 2022 → 2024/2025
Remortgage =
25-40% by 2025
Board approval, First Lenders Remortgage Sale &
funding approval, signed-up launch Purchase build Sale & Purchase =
CEO appointment 25% by 2027
Q4 2020 Q4 2021 Q3 2022 2022 →
19Q&A
20pexa.com.au
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