FoxtonsPreliminary results presentationFor the year ended December 2018

2

Important information

This presentation includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by

the use of forward-looking terminology, including the terms “believe”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “may”, “will”, or

“should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include matters that are not

historical facts and include statements regarding the Company’s intentions, beliefs or current expectations.

Any forward-looking statements in this presentation reflect the Company’s current expectations and projections about future events. By their nature, forward-

looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed

or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans

and events described herein. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a

representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which speak only

as of the date of this presentation. No representations or warranties are made as to the accuracy of such statements, estimates or projections.

3

Overview

Nic Budden, Chief Executive Officer

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GROUP OVERVIEW

Note: Throughout this presentation EBITDA refers to Adjusted EBITDA. Operating cash flow refers to adjusted operating cash flow.1) Source: Rightmove, Zoopla, YouGov

FINANCIAL PERFORMANCE

• Group revenue in the year £111.5m delivering £3.6m EBITDA

• Decline in profitability driven by lower revenue in the sales business and £4m investments in people, brand and technology

• Lettings revenue £67.0m (+1%). Volumes broadly flat with higher revenue per deal. Remains a resilient, recurring revenue stream

• Sales revenue £36.2m (-15%). Impacted by continued market weakness causing lower transaction volumes

• Mortgage broking revenue £8.3m (-6%). Solid performance in a constrained sales market

• Adjusted items charge of £15.7m, £12.5m of which is non cash. Relates to write down of the goodwill in the sales segment and closure of six branches in Q4. Cash costs will be incurred over 3 years

• Continued cash generation supporting strong balance sheet with no debt. £17.9m net cash at period end

STRATEGY AND OPERATIONAL FOCUS

• Maintain number 1 London market position in listings and brand awareness by providing exceptional service and results for our customers(1)

• Ongoing improvements to My Foxtons including tenants’ issue tracker and app have been well received

• Took action to align cost base with market conditions by closing six branches largely in the network’s periphery

• Continued focus on efficiency with marketing spend refocused towards digital channels, reducing cost of acquisition

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LETTINGS MARKET UPDATE

1) Source: Department for Communities and Local Government2) Source: Foxtons research. 3m moving average3) Source: Department for Communities and Local Government4) Source: Foxtons research5) Source: Molior

Number of privately rented homes in London(Number of households)(1)

Change in rental prices(1 year change)(2)

• Market fundamentals remain strong with 30% of households in London in private rentals (1m), nearly double the proportion in rest of UK(3)

• Rental prices generally reversed the downward trends seen since Q2 2016 reflecting; (i) decrease in supply of rental properties mirroring the reduction in buy-to-let transactions due to regulatory and lending changes, and (ii) wage growth since 2016

• 2018 average rent 2.5% higher than prior year, bringing rents back to levels seen in 2015 (2018: £455 per week, 2017: £444 per week)(4)

• Increasing complexity for landlords - with additional regulatory, legislative and tax changes introduced in the last couple of years - driving flight to higher quality agents better able to safeguard landlord interests

• Strong tenant take-up of Institutional PRS as high-quality, professionally managed schemes reach completion. However majority ofdevelopments still at planning or build stage (c.75%)(5)

0

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SALES MARKET UPDATE

• Sales market continues to be negatively weighed upon by political and macroeconomic uncertainty

• In addition, rapid London house price inflation post-2009 has not been matched by corresponding wage growth leading to reduced affordability further exacerbated by tighter mortgage lending criteria

• London house prices inflation slowed in 2018 with average prices broadly flat(3)

• These combined factors resulted in extremely constrained transaction volumes in 2018. London volumes were at levels similar to those seen in 2009 and c.50% below 2007(4)

• Foxtons remains number 1 agent in London despite intense competition as market listings levels decrease(5)

Affordability key driver of low volumes(House price / earnings ratio)(2)

Note: London defined as the Greater London administrative area. Central London defined as TFL Zone 11) Source: Land Registry, Foxtons research. Annualised Jan-Oct 20182) Source: ONS, Land Registry, Foxtons research3) Source: Land Registry4) Source: Land Registry, Foxtons Research. Annualised Jan-Oct 20185) Source: Rightmove and Zoopla listings

London(LHS)

England & Wales (ex. London) (RHS)

Residential property sales transaction volumes(1)

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7

Financial review

Mark Berry, Chief Financial Officer

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£67.0m(60% of revenue)

£36.2m(32% of revenue)

LettingsSales

Mortgage broking

• Revenue: £36.2m (2017: £42.6m)

• Contribution margin 53% pre-allocation of shared costs (2017: 59%)

• Sales volumes: 2,529 (2017: 2,962). H1: 1,188; H2: 1,341

• Revenue per unit £14.3k (2017: £14.4k)

• Average Foxtons sales price: £581k(2017: £580k)

• Revenues resilient at £67.0m (2017: £66.3m)

• Volumes 1% lower at 19,621 (2017: 19,806)

• Increased revenue per tenancy driven by longer tenancy lengths and some increase in rental prices

• Contribution margin marginally lower than prior year at 71% (2017: 73%)

• 33% of portfolio with Foxtons Property Management (2017: 32%) which generally attracts higher renewal rates

• Tenant fee ban expected to be implemented in June 2019

• Revenue £8.3m (2017: £8.7m)

• Good performance driven by remortgages in a challenging sales market

• Revenue per unit £1.9k (2017: £2.1k)

A BALANCED BUSINESS THROUGH THE CYCLE

15% Revenue decrease

15% Volume decrease

0% Revenue per unit flat

1% Revenue increase

1% Volume decrease

2% Revenue per tenancy increase

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INCOME STATEMENT

£m 2018 2017 Change

Revenue 111.5 117.6 (5%)

Operating costs (107.9) (102.5) 5%

EBITDA 3.6 15.1 (76%)

Depreciation, amortisation, LTIP & other gains

(5.1) (6.3) (18%)

Adjusted items (15.7) (2.3)

(Loss) / profit before tax (17.2) 6.5

Tax - (1.2)

(Loss) / profit after tax (17.2) 5.3

Basic EPS (6.3p) 1.9p

Adjusted EPS(1) (0.8p) 2.6p

Income statement

• Selective revenue investments in lettings, technology, brand and digital marketing to drive company growth and position business to capture any future market recovery

• Continue to proactively review cost base. Further £3m savings expected in FY19 as a result of actions taken

Note: Adjusted EBITDA is defined as profit before tax, finance costs, finance income, depreciation, amortisation, profit on disposal of assets, share-based payments and Adjusted items1) Excludes Adjusted items

• Comprised of:

• Revenue decrease driven by sales business down 15%

• Lettings revenue 1% higher with 2% increase in revenue per deal partially offset by 1% decrease in units

(£9.8m) Impairment of sales goodwill

(£2.7m) Branch asset write-down

(£12.5m) Total non-cash

(£3.2m)Onerous lease and exit costsCash cost to be incurred over next 3 years

(£15.7m) Total Adjusted items

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PRO-ACTIVE COST REDUCTION PROGRAMME

FY16 cost run rate

Cost savingsFY16-FY18

InflationFY16-FY18

FY18 investments

FY18 cost base

FY19 savings

FY19F cost base

£14m cost reduction programme has delivered £11m cost savings since 2016, allowing us to invest £4m in new initiatives and offset significant inflationary pressure:

• £11m cost savings implemented since Brexit vote

• £4m invested into 2018 cost base in retention, commissions, marketing and branding campaign

• 6 branches closed Q4 2018. Network of 61 branches with no plans for further closures.

• Further £3m savings in the FY18 exit rate

Pro-active cost reduction programme since June 2016 has delivered £11m cost savings and supported targeted FY 18 investments (£m)

(assumingflat revenues)

(as at June 2016)

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CONTINUED CASH GENERATION

EBITDA to free cash flow conversion Uses of cash flow

FY19 capex guidance c.£1.0m, depreciation, amortisation and LTIPS c.£5.0m

Opening cash £18.6m

Free cash flow £0.1m

2017 Final dividend paid (£0.7m)

Other (£0.1m)

Change in cash (£0.7m)

Cash at end of period £17.9m

EBITDA Working capital

Other gains

Capex Cash cost Adj. items

Tax Underlying free cash

flow

Proptechinvest-ments

Free cash flow

• Cash generative before dividends paid in respect of 2017:

• 117% operating cash conversion

• £1.4m underlying free cash flow before investments in Zero Deposits and Propoly

Operating cash flow: £4.3m /117% conversion ratio

(1.3)

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FREE CASH FLOW PRIORITIES

FREE CASH FLOW PRIORITES

• Fund investment in the future development of the business

• Maintain a strong balance sheet

• Return excess cash to shareholders

CORE DIVIDEND

POLICY

• Return 35% - 40% of profit after tax as an ordinary dividend

• No final dividend to be paid for 2018

• £93m returned to shareholders since IPO(1)

EXCESS CASH

RETURNS POLICY

• Excess cash after operational needs distributed to shareholders as special dividend

• The Board remains committed to returning excess cash when appropriate

1) Includes share buy-backs

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FINANCIAL SUMMARY

BALANCED BUSINESS BUILT TO WITHSTAND THE CYCLE

• Resilient lettings performance

• Subdued sales volumes throughout the year

FOCUS ON EFFICIENCY

• Current infrastructure is integral to maintaining customer service and experience levels

• Selective investments in marketing and brand, people, tech and data completed in the year

• Strong underlying cost control maintained in 2018 and continue to review and align cost base with market conditions

• £11m savings since 2016 and further £3m savings expected in 2019

CASH GENERATIVE WITH NO DEBT

• Continued cash generation before prior year dividends

• Year end net cash position of £17.9m and no debt

• No 2018 dividend in line with Group policy

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Strategy and operational update

Nic Budden, Chief Executive Officer

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Strategy 2018 Investments

1.Service and brand

• Continue to deliver premium customer service and results to substantiate our price premium

• Leverage strong single brand which drives market leading listings

• Enhanced account management for largest landlords, and launched Foxtons Prime for high value properties and high net wealth customers

• Enhanced resourcing of lettings service centre to drive landlord and tenant retention

• After extensive customer research launched new brand campaign articulating Foxtons value proposition and the results we achieve for customers

2. Our people

• Attract, develop and retain the best people to drive superior service for our customers

• Prioritise lettings and align sales business to market conditions whilst positioning for growth

• Restructured pay and commission schemes to attract and keep the best talent in the industry

• Hired experienced staff to complement existing workforce and launched dedicated China desk

• Maintained core sales capability to capture any upside from sales market recovery

3. Technology

• Use technology to save costs and increase the reach of each branch

• Innovate with enhanced product delivery

• Select complimentary investments

• Further investment in digital marketing programme leveraging our brand awareness and data

• Further upgrades to My Foxtons portal incorporating enhanced property management capabilities

• Investments in external prop tech companies

4. Lettings• Operate in high value London markets

• Prioritise resource allocation to lettings

• New retention and loyalty initiatives for existing landlords

• Launched new products including Zero Deposits for tenants

• Continue to grow institutional PRS offering

INVESTING IN PEOPLE, TECHNOLOGY AND BRAND TO DELIVER SUPERIOR SERVICE

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INVESTING FOR FUTURE GROWTH: “GET FOXTONS ON IT” BRAND CAMPAIGN

“Get Foxtons on it” brand campaign across digital, public transport, static advertising and branches:

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INVESTING FOR FUTURE GROWTH: “GET FOXTONS ON IT” BRAND CAMPAIGN

“Get Foxtons on it” brand campaign across digital, public transport, static advertising and branches:

Strong initial public response:

Metric: Net change

Brand consideration(1) +284%

Purchase intent(1) +433%

Direct website traffic(2) +8%

Direct mail efficiency(3) +33%

Front office calls(3) +8%

TrustPilot score:

1) Source YouGov. Dec vs. Jul 20182) Source Google Analytics. H2 2018 vs. H2 20173) Source: Foxtons research. H2 2018 vs. H2 2017

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SUMMARY AND OUTLOOK

LONDON’S LEADING AGENT

• Tech-enabled, centralised business with strong single brand and culture of exceptional service and results for all our customers

• Number 1 market position and brand awareness in London estate agency

• Well positioned in current environment – business remains cash generative, debt free and supports a strong balance sheet

• Six branches closed in 2018 as we took action to align the cost base with market conditions

OUTLOOK

• Sales business is transactional with limited forward visibility. Pipeline currently slightly below 2018 levels

• Pleased with progress and momentum in lettings business

• Continued focus on efficiency, maintaining cash balance and preserving culture

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Appendices

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BALANCE SHEET – NET CASH POSITION

2018 2017

Goodwill & intangibles 110.8 120.1

Property, plant & equipment 17.2 24.0

Investments 1.3 -

Net working capital 0.2 (0.2)

Net deferred tax (15.7) (15.8)

Provisions and deferred revenue (7.5) (5.8)

Net cash 17.9 18.6

Net assets 124.2 140.9

Low working capital requirements

Net cash position. Expect to replace existing Revolving Credit Facility which expires in July 2019

£9.8m goodwill-write down of sales business

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SEGMENTAL EBITDA AND KPIs

H1 18 H2 18 FY 18 H1 17 H2 17 FY 17

Sales revenue (£m) 17.2 19.0 36.2 22.3 20.3 42.6

Sales EBITDA (£m) (3.6) (0.9) (4.5) 1.4 (0.2) 1.2

Sales units 1,188 1,341 2,529 1,544 1,418 2,962

Lettings revenue (£m) 31.7 35.3 67.0 32.1 34.2 66.3

Lettings EBITDA (£m) 3.0 3.7 6.7 4.9 7.2 12.1

Lettings units 9,430 10,191 19,621 9,435 10,371 19,806

Mortgage broking revenue (£m) 4.1 4.2 8.3 4.2 4.5 8.7

Mortgage broking EBITDA (£m) 0.7 0.7 1.4 0.8 1.0 1.8

Mortgage broking units 2,120 2,198 4,318 1,992 2,251 4,243

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EARNINGS PER SHARE AND EFFECTIVE TAX RATE

2018 2017

Basic earnings (£17.2m) £5.3m

Weighted average number of shares* 274.9 274.8

Basic earnings per share (6.3p) 1.9p

Earnings excluding Adjusted items (£2.1m) £7.3m

Adjusted earnings per share (0.8p) 2.6p

*Number of shares used for EPS calculation purposes excludes shares held in Treasury

Taxation

Effective tax rate 0.2% 18.0%

• Drivers leading to taxable income on the reported loss are the impairment on goodwill, depreciation on leasehold improvements and branch asset write downs that are non-qualifying for capital allowance purposes, and share option charges

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IFRS 16 LEASE ACCOUNTING: FY19 OUTLINE IMPACT(NON-CASH)

Balance sheet

Right of use assets £62.0m

Lease liabilities (£62.5m)

Net balance sheet impact (£0.5m)

Income statement

Decrease in operating expenses £11.0m

Increase in depreciation charge (£10.0m)

Interest charge (£2.5m)

Net reduction in profit before tax (£1.5m)

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FOXTONS MID MARKET SALES POSITION MIRRORS LONDON

4%

34%32%

14%

6%

3%2% 1% 1% 1%

3%2%

33%

38%

13%

6%

3%2%

1% 1% 1%2%

London and Foxtons sales distribution by price (2018)

LondonVolumes (%)

FoxtonsVolumes (%)

Source: Land Registry, Foxtons research

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Leading database and CRM system

Internally integrated and externally connected

Delivering outcomes to drive growth

Foxtons unique technology underpins every aspect of the business and provides a significant competitive advantage

BEST IN THE SECTOR TECHNOLOGY PLATFORM

Single digital platform

Management information

Online search capabilities

Embedded with

aggregators

Operational intelligence

Automated workflows Linked to

MyFoxtonsportal

1Operational

effectiveness

2Best customer

service

3Digitally-enabled

staff and customers

The best service to customers: vendors, landlords, buyers and tenants

Social media and digital marketing

Property records

Vendor, landlord,buyer and

tenant contacts

BOSInternal External

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WE OPERATE A UNIQUE CENTRALISED ESTATE AGENCY MODEL

SINGLE BRAND BRANCH NETWORK FOCUSED SOLELY ON SALES & CUSTOMER SERVICE

New business & lead generation team

Lettings management team

Web, Portal & IT development teams

Support services

Marketing Protography Compliance

Training Recruitment Fleet services

OUR SCALEABLECENTRE IS A KEY DIFFERENTIATOR