asx small to mid caps conferenceasx small to mid caps conference october 2012 . ... internet world...

ASX small to mid caps conference October 2012

Company overview

iProperty Group Limited provides online advertising and other complementary products to real estate agents and property developers in key Asian markets. These products are primarily marketed under the iProperty.com umbrella brand.

http://www.iproperty.com/

Company overview

The iProperty Group is focused on its core markets of Malaysia, Hong Kong / Macau, Indonesia and Singapore where it has market leadership. In addition the iProperty Group operates the regions only commercial and industrial property portal; commercialasia.com, launched in early 2012. The Group retains investments in India and the Philippines.

The iProperty Group strives to provide consumers searching for property across the region with the best possible user experience, with an increasing emphasis on mobile access to the iProperty Group’s network of property portals.

In parallel the iProperty Group focuses on developing long term customer relationships with an emphasis on lead generation and partnering its customer's in the growth of their business.

The iProperty Group network of property portals

iProperty Group has a clear strategy to drive growth in its core business of providing online advertising to the property industry

The growth strategy is focused on four core pillars::

1. Consolidation opportunities across our core markets of Malaysia, Hong

Kong / Macau, Indonesia, and Singapore;

2. Potential new entry to new geographical markets;

3. Cross network opportunities such as commercialasia.com – Leverage existing businesses more effectively

4. Organic growth within our existing core markets – Includes new product initiatives

Internet usage is growing rapidly in the region and approaching western penetration rates

There are more than 80 million internet users in Malaysia, Indonesia, Hong Kong and Singapore. The expected growth in internet users will see this population continue to expand for the foreseeable future. Source: World Data Bank

Asia Pacific's internet users by country

CountryInternet Users

Penetration Rate (%)

Australia 19,554,832 89.80%New Zealand 3,625,553 84.50%Korea, South 40,329,660 82.70%Japan 101,228,736 80.00%Singapore 3,658,400 77.20%Taiwan 16,147,000 70.00%Hong Kong 4,894,913 68.70%Malaysia 17,723,000 61.70%China 513,100,000 38.40%Vietnam 30,516,587 33.70%The Philippines 29,700,000 29.20%Thailand 18,310,000 27.40%Indonesia 55,000,000 22.40%India 121,000,000 10.20%(Source: Internet World Stats , Dec 2011)

iProperty operates in markets with ~USD900m spent on property advertising and growing – 77% coming from property developers

7

Structurally the ad markets are moving online and look to be mirroring mature markets albeit some years behind

All online advertising growing rapidly in 2013 with the real estate segment projected to grow even faster

17.2% 21.7%

5.0%

22.8%

16.5% 15.1%

37.5%

0%5%

10%15%20%25%30%35%40%

Glo

bal

Asia

Pac

ific

Aust

ralia

Mal

aysia

Sing

apor

e

Hong

Kon

g

Indo

nesia

2013 online advertising growth

8.7%

-0.1%

11.4% 7.6%

30.2%

20.1% 26.1%

50.9%

-10%

0%

10%

20%

30%

40%

50%

60%

USA U

K

Fran

ce

Aust

ralia

Mal

aysia

Sing

apor

e

Hong

Kon

g

Indo

nesia

CAGR 2008-'13 online real estate advertising growth

Source: PwC

Online advertising continues to significantly outpace all Adex Online advertising in projected to grow at up 37%

Online Real estate advertising continues to grow at a faster rate than all online advertising Indonesia growing at 50%+

Underlying the growth strategy is a commitment to innovation

10

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

Malaysia Indonesia Hong Kong Singapore

% of visits from mobile devices in each country

Jun-11

Dec-11

Jun-12

Mobile access to the iProperty Group’s websites continues to grow at a rapid rate. The iProperty Group continues to be a leader in providing consumers and customers with a ‘mobile first’ lead strategy

iProperty Group continues to deliver strong revenue growth

In the first half of 2012 iProperty Group achieved revenue growth of 45% when compared to the previous corresponding period

Revenue for the first half of 2012 was A$7.5 million up from A$5.2 million in the first half of 2011

The Malaysia business continues to be profitable while Indonesia, Hong Kong/ Macau and Singapore continued to focus on investing to grow -

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1H 08 1H 09 1H 10 1H 11 1H 12

Revenue half year growth

Property portals in mature markets have illustrated sustained periods of growth exceeding 50% per annum

0

50

100

150

200

250

2003 2004 2005 2006 2007 2008 2009 2010 2011

Similar portals experience 4 years of 50% + growth

FR

UK

AU

MY

Mature markets in France, UK and Australia have followed similar trajectories in their growth profile

Overlaying our Malaysia business while discounting back of the time frame illustrates similar growth

Emerging markets will differ from mature markets on the depth of value available but the trajectory remains consistent

020406080

100120140160180

Sep-

11O

ct-1

1N

ov-1

1De

c-11

Jan-

12Fe

b-12

Mar

-12

Apr-

12M

ay-1

2Ju

n-12

Jul-1

2Au

g-12

Sep-

12

Developer customers

0

5,000

10,000

15,000

20,000

25,000

Aug-

10

Nov

-10

Feb-

11

May

-11

Aug-

11

Nov

-11

Feb-

12

May

-12

Aug-

12

Paying agents

0100,000200,000300,000400,000500,000600,000700,000800,000900,000

Aug-

10

Nov

-10

Feb-

11

May

-11

Aug-

11

Nov

-11

Feb-

12

May

-12

Aug-

12

Listings

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Aug-

10

Nov

-10

Feb-

11

May

-11

Aug-

11

Nov

-11

Feb-

12

May

-12

Aug-

12

Unique visitors

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000Au

g-10

Nov

-10

Feb-

11

May

-11

Aug-

11

Nov

-11

Feb-

12

May

-12

Aug-

12

Page views

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Aug-

10

Nov

-10

Feb-

11

May

-11

Aug-

11

Nov

-11

Feb-

12

May

-12

Aug-

12

Consumer e-subscribers

Key metrics at a Group level

Malaysia

Malaysia Market Overview

Country Overview

Source: Interviews with iProperty, fullhouse; CIA World Fact Book; Internet World Stats; Jane’s Information Group; Malaysian Government Data; ZenithOptimedia

Real Estate Market

Real Estate Advertising Market Online Real Estate Advertising Market

Agents 15,000 (e)

Agencies/offices 1,392 (e) Developers 1,003 Developments 6,000 Commission Rate 2 - 3%

Agent Sales Private Sales

95%

Comments • Property not represented exclusively • Low barriers to entry for sales people therefore low skill levels , no licences • Emerging industry & growing use of technology

Established Sales New Sales

85%

Total Online Spend US$7.5m (e)

% Total Spend 3% Y on Y Change Unknown

Comments • iProperty .com.my dominant leader in

Malaysia • Subscription products to agents • Developers increasingly solution focused • Majority of revenues from developer

market

Total Spend (2011) US$250m (e)

Y on Y Change 6 – 7 %

Population (2011) 28.3m GDP per Capita US$14,072 Stability Index Moderate Internet Penetration (2011) 65% Internet Population 17m Total Advertising Spend US$2.5bn (2011) % Total Ad Spend Online 2.0% (2011) % Total Ad Spend in Print 53.0% (2011)

By Advertiser By Media

Developer 80%

Agency 10% Overseas 10%

Print 90% (Mags & Papers)

Online 3% Other 7%

Malaysia property market is rebounding with more sales volume at lower average price driving value in transactions

38

35.1

33.17

35.88

30313233343536373839

Q3 2011 Q4 2011 Q1 2012 Q2 2012

RM B

il

Transacted value

353,501

324,612 316,471

301,500

270,000280,000290,000300,000310,000320,000330,000340,000350,000360,000

Q3 2011 Q4 2011 Q1 2012 Q2 2012

RM

Average property price

780 865

950 957

0

200

400

600

800

1,000

1,200

Q3 2011 Q4 2011 Q1 2012 Q2 2012

RM P

sf

Average luxury property price

107,496 108,129

104,812

112,394

100,000

102,000

104,000

106,000

108,000

110,000

112,000

114,000

Q3 2011 Q4 2011 Q1 2012 Q2 2012

No

of t

rans

actio

n

Sales volume

Source: iAdmin, MY MOF, yellow pages, National Property Information Centre, WTW international, The Board of Valuers, Appraisers and Estate Agents Malaysia , SY’s data, CBRE

Hong Kong

Market Overview

18

Country Overview Real Estate Market


Agents 35,254

Agencies/offices 2,840 Developers 20 significant Developments (2011) 30 Commission Rate 1% to 4% for new property


Established Sales New Sales Comments •Agency business dominated by big 4– Midland + HK Property, Centaline + Ricacorp •Generally volatile as property is almost traded like a commodity in the market •Price often held up on low volume and often driven by mainland buyers •Very competitive amongst agents with developers focused on the high end luxury

59%

Total Online Spend <US$5m (e)

% Total Spend 1.5% Y on Y Change Unknown

Comments •Gohome.com.hk clear leader in Hong Kong

•Subscription products to agents •Top 4 Agency groups see their own sites as primary •Gohome .com.hk has now signed a deal with 1 of the Big 4 •Developers slow to migrate online •4 of the top 5 developers have started advertising on ghome.com.hk

Total Spend (2010) US$300 (e)

Y on Y Change Unknown

Population (2011) 7.1m GDP per Capita US$49,811 Stability Index Moderate Internet Penetration (2011) 71% Internet Population 5.1m Total Advertising Spend US$4.6bn (2011) % Total Ad Spend Online 6.0% (2011) % Total Ad Spend in Print 45.0% (2011)


Developer 50%

Agency 25%

Overseas 25%


Online 2% Other 28%

TV 25%

85%(e)

HK Property market sporadic on volume however average price holds steady thru most quarters. Large influx from mainland China

15,516 13,739

18,749

10,377

02,0004,0006,0008,000

10,00012,00014,00016,00018,00020,000

Q3 2011 Q4 2011 Q1 2012 Q2 2012

No.

of t

rans

actio

n

Sales volume

86.53 83.89

100.26

55.06

0

20

40

60

80

100

120

Q3 2011 Q4 2011 Q1 2012 Q2 2012

HKD

Bil

Transacted value

15,421

16,922

15,585

16,836

14,500

15,000

15,500

16,000

16,500

17,000

17,500

Q3 2011 Q4 2011 Q1 2012 Q2 2012

HKD

Psf


5.577 6.106

5.348

6.492

0.000

1.000

2.000

3.000

4.000

5.000

6.000

7.000

Q3 2011 Q4 2011 Q1 2012 Q2 2012

HKD

Mil


Source: iadmin, HK land registry, HK rating & valuation department, HK Estate Agent Authority, HK business directory, Colliers International, SY’s data

Indonesia

Indonesia market summary

21



Agents 15,000 +(e)

Agencies/offices 10 main groups Developers 2,200 (e) Developments 5,000+ Commission Rate 1%-2%



Comments • No sole agency for the sale of property • Emerging middle class of 40 m ++ • Dominated by foreign franchise groups, loose control of their agents

85%


% Total Spend 4% Y on Y Change ~50% (e)

Comments • Rumah123.com has now emerged as

the clear leader in Indonesia • Subscription model for agents • Industry starting to become more

dependent on online advertising • Developers moving slowly to online

advertising

Total Spend (2010) US$100 me)


Population (2011) 237m GDP per Capita US$4,700 Stability Index Moderate Internet Penetration (2011) 12% Internet Population 30m Total Advertising Spend US$2.1B (2011) % Total Ad Spend Online 2% % Total Ad Spend in Print 41.8%


Developer 75%

Other 5% Agency 20%


Online <2%

Other 8%

90%

Indonesia property market showing solid volume growth and continued property price appreciation, particularly at high end

Source: iAdmin, Knight Frank, DTZ, Colliers International, Cushman & Wakefield, SY’s data, bank Indonesia statistic

48,652

49,733

50,346

51,197

47,000 47,500 48,000 48,500 49,000 49,500 50,000 50,500 51,000 51,500

Q3 2011 Q4 2011 Q1 2012 Q2 2012

No.

of T

ram

sact

opm

Sales Volume

12.77 13.69

14.63

17.12

02468

1012141618

Q3 2011 Q4 2011 Q1 2012 Q2 2012

IDR

Mil


18.34

19.31 19.63

21.25

16.517

17.518

18.519

19.520

20.521

21.5

Q3 2011 Q4 2011 Q1 2012 Q2 2012

IDR

mil

psf


621

680 689

701

580

600

620

640

660

680

700

720

Q3 2011 Q4 2011 Q1 2012 Q2 2012

IDR

Bil

Transacted value

Singapore

Singapore market summary



Agents 25,000(e)

Agencies/offices 1,479 Developers 100 (e) Developments 613(e) Commission Rate 3% Average



Comments • No sole agency for the sale of property • 80% of population live in Government housing (HDB) • Each agent is a small business and leverages an agency’s brand

90%


% Total Spend 4% Y on Y Change ~50% (e)

Comments • Iproperty.com.sg moving to reposition to

focus on the property developer market • Print dominated market remains • Subscription model for agents • Developers slow to move to online • Developers account for >75% of

advertising

Total Spend (2011) US$180m (e)


Population (2012) 5.26m GDP per Capita US$56,532 Stability Index Moderate Internet Penetration (2011) 78% Internet Population 3.9m Total Advertising Spend US$1.7bn (2008) % Total Ad Spend Online 7% % Total Ad Spend in Print 41.8%


Developer 75%

Other 5% Agency 20%


Online 4%

Other 8%

95%

Singapore property market has seen increased volume as average price has declined with a dip in luxury prices

10.37 9.18

7.06

15.75

0

2

4

6

8

10

12

14

16

18

Q3 2011 Q4 2011 Q1 2012 Q2 2012

SGD

Bil

Transacted value

1.41 1.42

1.19 1.05

0.000

0.200

0.400

0.600

0.800

1.000

1.200

1.400

1.600

Q3 2011 Q4 2011 Q1 2012 Q2 2012

SGD

Mil


3,667 3,661

3,201

3,631

2,9003,0003,1003,2003,3003,4003,5003,6003,7003,800

Q3 2011 Q4 2011 Q1 2012 Q2 2012

SGD

psf


14,732 12,974

15,402 16,500

02,0004,0006,0008,000

10,00012,00014,00016,00018,000

Q3 2011 Q4 2011 Q1 2012 Q2 2012

No.

of t

rans

actio

n

Sales volume

Source: iadmin, URA SG, HDB SG, CEA SG, yellow page, Colliers International, DTZ, CBRE, Saviills, SY’s data

Disclaimer

The material contained in this presentation is non-specific and is a summary of the background to the company’s activities. As this information is in a summary form it is not intended to be complete. Independent advice should be sort by Investors or potential Investors. The material does not take into account the investment objectives, financial situation or needs of a particular investor and therefore should not relied upon as investment advice to Investors or potential Investors.

asx small to mid caps conferenceasx small to mid caps conference october 2012 . ... internet world...

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