Agents’MUTUAL

Agents’ Mutual Limited. A Company limited by Guarantee.

North Wales – Anglesey 1st April 2014

Agents’MUTUAL

100% agent-owned property portal

Serious competitor to the existing major portals

NOT to maximise financial returns to shareholders

High quality property search service

Minimum listing fees consistent with achieving and maintaining leadership

For ALL bona fide Sales and Letting Agents

ALL segments of the residential market.

Company limited by Guarantee.

No shareholders or shares.

Directors approved and re-elected by the Members. They are unpaid.

All firms listing on the portal are Members. Maximum liability = £1.

All Member firms get one vote and an equal interest in the Company, irrespective of firm size.

90% vote required to approve a Sale.

June 2013 – 6 member firms

January 14 - 550+ member firms - 1850+ offices

Large national brands – 2%Prominent regionals – 20%Small firms (1-3 offices) - 78%

Agents’MUTUAL

£6MFunding

Agents’MUTUAL The Regions

Rightmove set to raise income to £200M by 2017 -

Zoopla needs to treble income to match Rightmove.

Agents’MUTUAL

Agent now have to list with both portal groups a duopoly with no real constraint on prices

2013- Income £65M- Costs £35.5M- Profit £29.5M- Margin 46%

2013- Income £140M- Costs £36M- Profit £104M- Margin 74%

We are persuaded by the arguments that the creation of a strong competitor to Rightmove will restrain price increases..

2012

Zoopla prices will rise to meet Rightmove’s – there will be no price competition

ZPG CEO, 2013

Agents’MUTUALThe Threat

Agents’MUTUAL

- Vendor direct- Landlord direct- Multi-listing- Agency software- Franchising

?

The Threat

Strategy

Our portal Entering alongside the two giant players won’t work

No reason for consumers to switch Extra cost to agents Too much marketing investment required Too risky to attract commitments and funding

We have to create some disruption.

Agents’MUTUAL

Strategy

Use agents’ control over where they place their listings:

Medium term commitment to list with the new portal – 5 years Members to list with maximum of one other portal of their choosing

Effective on launch in January 2015 Fully exclusive listing ideal but not viable for agents

Agents’MUTUAL

Strategy

Agents’MUTUAL

Neither Rightmove or Zoopla will have all the agents and properties we will have. creates a unique set of listings for our new portal a reason for consumers to use us

Agents can publicise their switch and promote the new portal

No net increase in cost of portals to agents. in some cases, total outlay on portals will fall.

Reduces investment requirement and risk.

CORPORATES INDEPENDENTAGENTS

INDEPENDENTAGENTS

Anchor tenants - before

CORPORATES

INDEPENDENTAGENT MEMBERS

CORPORATES

INDEPENDENTAGENTS

INDEPENDENTAGENTS

Anchor tenants – Jan 14

Agents’MUTUAL

CORPORATESCORPORATES

INDEPENDENTAGENT MEMBERS

INDEPENDENTAGENTS

INDEPENDENTAGENTS

Anchor tenants - Jan 15?

INDEPENDENTAGENT MEMBERS

Agents’MUTUAL

7

Agents’MUTUAL

The 3 major corporates are the ‘anchor tenants’ for both Rightmove and Zoopla:- Advantageous terms- Share interests (Zoopla).Independent agents are just rent-payers.

Agents’ Mutual now has its own ‘anchor tenants’ – the first 500+ members and they will take listings and fees away from the others. They own and control the Company.

Every firm which joins Agents’ Mutual becomes a member on equal terms with all others - one of the ‘anchor tenants’ - taking listings and fees from the others.

The objective

Costs £30M*

12,000 agent offices£250 per month

10,000 agent offices

At full scale

Agents’MUTUAL

StrategyAgents’MUTUAL

Raise development funding from member agents – the Gold members

5-year commitments from Gold and Silver members – in return for fixed fees.

Fees lower than the big portals – but high enough to allow reinvestment for growth.

Once full scale is reached – 10,000 offices – fees can fall.

Pre-launchsubscription

Year 1 Year 2 Year 5 Year 9Year 8Year 7Year 6Year 4Year 3£400

£200

£50

20% discount for 6-year commitment

Full scaleGrowth

Averagemonthly

fees Average£4200 per office

per year

StrategyAgents’MUTUAL

If agents get behind it, Agents’ Mutual can deliver much quicker.

£250 average listing fees or less – sustainably.

Pre-launchsubscription

Year 1 Year 2 Year 5 Year 9Year 8Year 7Year 6Year 4Year 3£400

£200

£50

20% discount for 6-year commitment

Full scaleGrowth

Averagemonthly

fees Average£4200 per office

per year

Three membership schemes during the

‘Growth’ phase

No commitment Higher pricing

Not fixed

Pricing and fundingAgents’MUTUAL

Firm size Office Location

Offices in Firm

Volume Discount

Prime London

Other London

Prime Country

Other Country

1-3 0%£595 £495 £395 £295

4-6 5%£565 £470 £375 £280

7-12 10%£536 £446 £356 £266

13-19 15%£506 £421 £336 £251

20-49 20%£476 £396 £316 £236

50+ 25%£446 £371 £296 £221

No pre-launch fundingCommit for five yearsPrices shown are fixed

?Price shown include lettings.

Lettings-only 50%

Pricing and fundingAgents’MUTUAL

Firm size Office Location

Offices in Firm

Volume Discount

Prime London

Other London

Prime Country

Other Country

1-3 0%£595 £495 £395 £295

£506 £421 £336 £251

4-6 5%£565 £470 £375 £280

£480 £400 £319 £238

7-12 10%£536 £446 £356 £266

£455 £379 £302 £226

13-19 15%£506 £421 £336 £251

£430 £358 £285 £213

20-49 20%£476 £396 £316 £236

£405 £337 £269 £201

50+ 25%£446 £371 £296 £221

£379 £316 £252 £188

ENTRY TICKETPre-launch subscription8 months x £75 = £600> non-refundable

Loan Notes of £2000 per office (£1000 lettings-only). annual interest of 10% repayable by 2020.

Commit for 5 yearsFund the development

Fee discount v Silver

Firm size Office Location

Offices in Firm

Volume Discount

Prime London

Other London

Prime Country

Other Country

1-3 0%£595 £495 £395 £295

4-6 5%£565 £470 £375 £280

7-12 10%£536 £446 £356 £266

13-19 15%£506 £421 £336 £251

20-49 20%£476 £396 £316 £236

50+ 25%£446 £371 £296 £221

Agents’MUTUAL Funding and financials

£6M+Pre-launch

funding

3000+offices

1850+ offices

Listing fees£7M pa

Listing fees£14M pa

£21M+Post-launch

annual income

12 months Launch6 months

Become the No.2 Portal take listings and income drive awareness & traffic

Agents’MUTUAL Funding and financials

£21M+annual income 3000+ offices

First year

3000+offices

1850+ offices

One year to Launch

£35M+annual income

Become a credible alternative to the No.1 Portal Match cost base and capability Undercut prices

6 months

Agents’MUTUAL

What next?Agents’MUTUAL

Register at: www.agentsmutual.co.uk

Silver membership: non-binding Letter of Intent contract when 4000 committed offices reached

Agents’MUTUAL Funding and financials

£6M+Pre-launch

funding

3000+offices

1850+ offices

£21M+Post-launch

annual income

12 months Launch6 months

Letter of Intent NOW

Contract HERE

What next?Agents’MUTUAL

Register at: www.agentsmutual.co.uk

Silver membership: non-binding Letter of Intent contract when 4000 committed offices reached

New Gold membership offer: Contract and funds now.