Ann: App4D and Half Yearly Accounts, page-32

Great question. It is very sensitive to Mkt share captured and Average Revenue Per Rental Transaction. I assume REA could crush RNT hopes (and mine) at this early stage if they chose too. That is to say, before RNT secured a significant beachhead in renters minds as the place to go when you're looking for a rental. It looks like the market also shares this opinion based on the share price. This makes the Domain comparison a difficult one because Domain have secured their market share.

What is clear to me is that if RNT does gain market share the profits will follow quickly. These business have high operating leverage so marginal revenue flows straight through the bottom line and based on REA & Domain etc it is maintainable once you're established. That's why I'm in on this. The March Qtr update is a very important marker. Not expecting anything extraordinary but definitely want see more than few hundred $75 completion payments coming through the CFS.

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7
0	$M	FY 16	FY 17	FY 18	FY 19	FY 20	Comments
1	Available Mkt (Trs. Units)	900,000	927,000	954,810	983,454	1,012,958	GDP Growth 3.0%
2	RNT Mkt Share	2.0%	4.0%	8.2%	17.2%	37.3%	Doubling YoY
3	Transaction Units	18,000	37,451	78,707	168,819	377,616
4	ARPT	$40.0	$46.8	$54.8	$64.1	$75.0	CAGR 17%
5	Revenue	$720.0	$1,752.7	$4,309.7	$10,815.3	$28,304.4
6	Costs	$13,412.0	$6,706.0	$7,376.6	$8,114.3	$8,925.7	Growth 10% FY 17 onwards
7	EBIT	-$12,692.0	-$4,953.3	-$3,066.9	$2,701.1	$19,378.7
8	Margin	N/A	N/A	N/A	25%	68%
9	EV/EBIT	N/A	N/A	N/A	12.0	12.0	Less diversified, lower value product, more competitive
10	Implied Valuation	N/A	N/A	N/A	$32,412.7	$232,544.7
11	Present Value				$18,757.3	$112,145.4
12	Discount Rate	20%
13	Domain Valuation		$1,966,796
14	RNT Mkt Value		$14,068
15	RNT Implied PV				$18,757.3	$112,145.4
16	Relative	0.7%			1.0%	5.7%
17
18	Shares On Issue	180,361,474	180,361,474	180,361,474	219,681,464	219,681,464
19	Share Price	0.14	$0.078	$0.078	$0.085	$0.510
20	Capital Raise			39,319,990
21		180,361,474	180,361,474	219,681,464	219,681,464	219,681,464