RENT.COM.AU LIMITED ABN 25 062 063 692 FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2024 Rent.com.au Limited Contents 30 June 2024 CONTENTS Rent.com.au Limited Director’s Report 30 June 2024 CORPORATE INFORMATION Rent.com.au Limited Director’s Report 30 June 2024 DIRECTORS REPORT Rent.com.au Limited Director’s Report 30 June 2024 Rent.com.au Limited Director’s Report 30 June 2024 Rent.com.au Limited Director’s Report 30 June 2024 • • • • Rent.com.au Limited Director’s Report 30 June 2024 Rent.com.au Limited Director’s Report 30 June 2024 • • • • • • • • Rent.com.au Limited Director’s Report 30 June 2024 • • • Rent.com.au Limited Director’s Report 30 June 2024 Rent.com.au Limited Director’s Report 30 June 2024 • • • • • Rent.com.au Limited Director’s Report 30 June 2024 • • • Rent.com.au Limited Director’s Report 30 June 2024 Rent.com.au Limited Director’s Report 30 June 2024 RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia Partners ABN 36 965 185 036 Liability limited by a scheme approved under Professional Standards Legislation RSM Australia Partners Level 32 Exchange Tower, 2 The Esplanade Perth WA 6000 GPO Box R1253 Perth WA 6844 T +61 (0) 8 9261 9100 www.rsm.com.au AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the audit of the financial report of Rent.com.au Limited for the year ended 30 June 2024, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit. RSM AUSTRALIA Perth, WA AIK KONG TING Dated: 22 August 2024 Partner RSM Australia Partners Level 32 Exchange Tower, 2 The Esplanade Perth WA 6000 GPO Box R1253 Perth WA 6844 T +61 (0) 8 9261 9100 www.rsm.com.au RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia Partners ABN 36 965 185 036 Liability limited by a scheme approved under Professional Standards Legislation INDEPENDENT AUDITOR’S REPORT To the Members of Rent.com.au Limited Opinion We have audited the financial report of Rent.com.au Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2024, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy information, the consolidated entity disclosure statement and the directors' declaration. In our opinion the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Group's financial position as at 30 June 2024 and of its financial performance for the year then ended; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (including independence standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter How our audit addressed this matter Revenue Recognition- Refer to Note 3 in the financial statements The Group has recognised revenue from contracts with customers as an operator of a real estate website focusing on the rental property market that offer range of services to the customers and digital account platform for renters. Revenue is considered a key audit matter because it is the most significant account balance in the consolidated statement of profit or loss and other comprehensive income, and the process of revenue recognition is complex due to multiple revenue streams for services or products rendered. Furthermore, the revenue transactions are high volume and of low value. The revenue recognition of each revenue stream is subject to management judgements. These include: • Determining the appropriate accounting policy in relation to each revenue stream; and • Determining the revenue recognised is for an amount that reflects the consideration to which the Group is expected to be entitled in exchange for transferring services to a customer. Our audit procedures included: • Obtaining a detailed understanding of each of the revenue streams and the process for calculating and recording revenue; • Assessing the appropriateness of the revenue recognition policy of the Group in compliance with Australian Accounting Standards; • Performing tests of controls and substantive testing on a sample basis for revenue transactions to supporting documentation; • Testing the deferred revenue calculation for revenue received in advance by assessing the extent to which performance obligations have not been satisfied at year end; • On a sample basis, testing revenue transactions before and after year-end to ensure that revenue is recognised in the correct financial period; and • Assessing the appropriateness of disclosures in the financial statements. Intangible assets- Refer to Note 10 in the financial statements As at 30 June 2024, the Group recorded intangible assets of $2,611,623 on the consolidated statement of financial position. The intangible assets are related to software and website development costs. We determined this to be a key audit matter due to it being a significant balance with material capitalisation of internally developed intangible assets requiring significant management’s judgements and estimates. In addition, management is required to assess any indicators of impairment at reporting date. This assessment requires judgement including consideration of both internal and external sources of information. Our audit procedures included: • Assessing whether the Group’s accounting policy for intangible assets comply with Australian Accounting Standards; • Obtaining an understanding of the nature of the Group’s development activities and critically reviewing management assessment that they met the criteria for recognition as an intangible asset set out in AASB 138 Intangible Assets; • On a sample basis, testing and evaluating management’s judgement of costs capitalised during the current financial year; • Assessing management's estimates in determining the useful lives of intangible assets; • Assessing reasonableness of research and development refund offsetting the intangible assets; • Testing the reasonableness of the amortisation expense during the year in line with the Group’s accounting policy; • Assessing management's determination as to whether any impairment indictors exist and evaluating this assessment having due consideration of the evidence supplied and any other information gathered as part of the audit process; and • Assessing the appropriateness of disclosures in the financial statements to ensure compliance with Australian Accounting Standards. Other Information The directors are responsible for the other information. The other information comprises the information included in the Group's annual report for the year ended 30 June 2024 but does not include the financial report and the auditor's report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of: a. the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and b. the consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001, and for such internal control as the directors determine is necessary to enable the preparation of: i. the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and ii. the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor's Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar2_2020.pdf This description forms part of our auditor's report. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included within the directors' report for the year ended 30 June 2024. In our opinion, the Remuneration Report of Rent.com.au Limited, for the year ended 30 June 2024, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. RSM AUSTRALIA Perth, WA AIK KONG TING Dated: 22 August 2024 Partner Rent.com.au Limited Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2024 Rent.com.au Limited Consolidated Statement of Financial Position As at 30 June 2024 Rent.com.au Limited Consolidated Statement of Changes in Equity For the year ended 30 June 2024 Rent.com.au Limited Consolidated Statement of Cash Flows For the year ended 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 • • • • Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 • • Rent.com.au Limited Notes to the financial statements 30 June 2024 • Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 • • Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 • • • • Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 • • • • Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 Rent.com.au Limited Notes to the financial statements 30 June 2024 • • • • • • Rent.com.au Limited Notes to the financial statements 30 June 2024 • • • Rent.com.au Limited Consolidated Entity Disclosure Statement 30 June 2024 Rent.com.au Limited Directors’ Declaration 30 June 2024 • • • • • Rent.com.au Limited Additional ASX Information 30 June 2024 62 ASX Additional Information Additional information required by the ASX Limited Listing Rules not disclosed elsewhere in this Annual Report is set out below. 1. Holdings The issued capital of the Company as at 2 October 2024 includes the following securities: Equity Class Number of holders Total on issue Fully paid ordinary shares 4,013 758,163,680 Listed Options expiring 31-Dec-2025 225 142,704,604 Employee Options 4 7,200,000 Performance Rights 15 49,498,864 All issued fully paid ordinary shares carry one vote per share. 2. Distribution of Ordinary Shares as at 2 October 2024 Range Holders Units % 1-1,000 208 19,816 0.0% 1,001-5,000 1,060 3,193,707 0.4% 5,001-10,000 669 5,283,270 0.7% 10,001-100,000 1,539 54,527,695 7.2% 100,001-and over 537 695,139,192 91.7% Total 4,013 758,163,680 100.0% There were 2,692 holders of less than a marketable parcel of ordinary share, and 42 holders from overseas holding 4,461,007 shares. 3. Substantial shareholder notices lodged with the Company Name Number* % CAPITAL B ASSET MANAGEMENT PTY LTD 111,174,596 14.7% SG HISCOCK & COMPANY LIMITED 44,242,621 5.8% JOHN CHRISTOPHER WOOD 39,210,555 5.2% * Number of shares held at 2 October 2024 where known, otherwise number of shares is at date of substantial shareholder notice or Appendix 3Y lodged with the Company or ASX. 4. Voting Rights See note 15 of the financial statements. 5. Restricted securities subject to escrow period None noted 6. On-market buy back There is currently no on-market buyback program for any of Rent.com.au Limited’s listed securities. Rent.com.au Limited Additional ASX Information 30 June 2024 63 7. Top 20 Largest Holders of Ordinary Shares as at 2 October 2024 Name Number % 1 CAPITAL B ASSET MANAGEMENT PTY LTD 111,174,596 14.7% 2 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 45,579,771 6.0% 3 AJAVA HOLDINGS PTY LTD 27,489,286 3.6% 4 MR JASON ALAN CARROLL 27,000,000 3.6% 5 BADER SMSF PTY LTD 26,897,052 3.6% 6 REEFBAY HOLDINGS PTY LTD 24,301,836 3.2% 7 FINEXIA SECURITIES LTD 18,069,645 2.4% 8 CITICORP NOMINEES PTY LIMITED 16,919,352 2.2% 9 DR GARRY DESMOND & MRS FRANCES SAMBRAILO GARSIDE 15,671,721 2.1% 10 DAJ LOVAT PTY LTD 12,800,000 1.7% 11 BFB HOLDINGS PTY LTD 11,515,414 1.5% 12 MR ANTHONY BRENDON COPE & MRS AMANDA GAY COPE 10,275,682 1.4% 13 RHUROIN PTY LTD 7,600,000 1.0% 14 MR SAMUEL IAN MCDONAGH 7,157,143 0.9% 15 MR PAUL GREGORY BROWN & MRS JESSICA ORIWIA BROWN 6,500,000 0.9% 15 E EQUITIES PTY LTD 6,500,000 0.9% 16 LAZARUS CORPORATE FINANCE PTY LTD 6,250,000 0.8% 17 MR ANTHONY JOSEPH ZOVIC 6,030,035 0.8% 18 TEFIG PTY LTD 5,779,546 0.8% 19 MR MARK WOSCHNAK 4,400,000 0.6% 20 NETWORK CAPITAL PTY LTD 4,334,850 0.6% Total Top 20 402,245,929 53.1% Others 355,917,751 46.9% Total Ordinary Shares on Issue 758,163,680 100.0% Rent.com.au Limited Additional ASX Information 30 June 2024 64 8. Top 20 Largest Holders of Listed Options as at 2 October 2024 Name Number % 1 DAJ LOVAT PTY LTD 30,621,682 21.5% 2 CAPITAL B ASSET MANAGEMENT PTY LTD 20,917,647 14.7% 3 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 9,402,535 6.6% 4 FINEXIA SECURITIES LTD 9,034,822 6.3% 5 REEFBAY HOLDINGS PTY LTD 6,835,607 4.8% 6 AJAVA HOLDINGS PTY LTD 5,000,000 3.5% 7 DR GARRY DESMOND & MRS FRANCES SAMBRAILO GARSIDE 4,163,119 2.9% 8 MR SAMUEL IAN MCDONAGH 3,453,571 2.4% 9 E EQUITIES PTY LTD 3,250,000 2.3% 10 LAZARUS CORPORATE FINANCE PTY LTD 3,125,000 2.2% 10 MR PAUL GREGORY BROWN & MRS JESSICA ORIWIA BROWN 3,125,000 2.2% 12 BADER SMSF PTY LTD 2,571,428 1.8% 13 PALM BEACH NOMINEES PTY LIMITED 2,500,000 1.8% 14 BFB HOLDINGS PTY LTD 2,388,188 1.7% 15 RHUROIN PTY LTD 2,250,000 1.6% 15 BT GLOBAL HOLDINGS PTY LTD 2,189,731 1.5% 16 SCINTILLA CAPITAL PTY LTD 2,185,146 1.5% 17 MR ANTHONY AND MRS TANYA LOUSE DE NICOLA 1,625,000 1.1% 18 RIVERVIEW CORPORATION PTY LTD 1,470,588 1.0% 18 TYSON RESOURCES PTY LTD 1,470,588 1.0% 19 MR ANTHONY BRENDON COPE & MRS AMANDA GAY COPE 1,428,571 1.0% 20 TADEA PTY LTD 1,338,235 0.9% Total Top 20 120,346,458 84.3% Others 22,358,146 15.7% Total Ordinary Shares on Issue 142,704,604 100.00% 9. Unquoted Securities The names of the security holders holding more than 20% of an unlisted class of security are listed below: Performance Rights Employee Options Mr Greg Bader 15,957,955 - Mr Johannes Steyn Ferreira 15,707,955 - Mr Garry Desmond Garside - 2,700,000 Mr Samuel Ian McDonagh - 1,500,000 Philuchna Pty Ltd - 1,500,000 Mr John Wood - 1,500,000 Total other holders 17,832,954 - Total 49,498,864 7,200,000 Total holdings over 20% 2 4 Other holders 3 -