Expansion Presentation Australia 05 Oct2010 V7

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Engel & Völkers - AustraliaLicensing System

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Content

1. The Future of the Real Estate Business Slide 3 - 5

2. Engel & Völkers at a Glance Slide 6 - 15

3. The Licensing System Slide 16- 33

4. Marketing Concept Slide 34 - 49

5. Our Licensing System proves to be successul Slide 50 – 55

6. Investment Slide 56 - 57

7. Roll-out - Australia Slide 58 - 59

8. Summary Slide 60 - 62

Engel & VölkersLicensing System

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1. The Future of the Real Estate Business


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North America 1990

Real Estate market Real Estate market

Regional Brokers

Development

Century 2I

x

North Amercia 2008

y

Royal Lepage

International Brokers, Franchise Brokers

Real Estate Business


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A service and brand oriented estate agency company

A high number of highly qualified employees

Specialisation in key areas of expertise, with the synergy effects of an all-round estate agency company

Brand forms central focus, linked to other aspects of service provision, e.g. project sales

Local presence with access to global property markets

Investment opportunities in future technology, e.g. web-oriented estate agency program

Professional marketing

Standardised service concept

The Real Estate Agent of the future


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2. Engel & Völkersat a Glance


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We link together the aspirations of discerning individuals around the world, be it in a private or a business context. With total passion.


Engel & Völkers Vision

Christian Völkers, Founder & CEO

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Our Core Values

Exclusivity Competence Passion


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Elbchaussee 414, 22609 Hamburg, Germany

Origins of Engel & Völkers


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Engel & Völkers

Private Office

Residential Commercial Yachting

GG

The Engel & Völkers Organisation


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Established 1977 Over 3500 employees/partners More than 500 Engel & Völkers shops around the world

- More than 450Residential Shops- More than 50 Commercial Offices

Over 600 licences signed Represented in 37 countries on 5 continents In-house academy and own training system Standardised service system Innovative IT systems Ongoing growth of the network

The Engel & Völkers Global Network


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Our Success 2009Engel & Völkers worldwide expansion

Countries / USA States where one can acquire / sell property Countries where one can acquire new licence regions

More than 450 open Engel & Völkers offices / shops

Currently 590 licenceesin 37 countrieson 5 continents

More than 3,350 agents worldwide

2009 total transaction volume nearly 7 billion USD


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Our SuccessEurope


Locations in Europe (322)

Andorra (1)Austria (8)Belgium (13)Croatia (2)Denmark (1)Czech Republic (1)France (5)Germany (176)Greece (3)Hungary (4)Italy (7)Liechtenstein (1)Luxembourg (1)Montenegro (1)Netherlands (1)Portugal (7)Romania (1)Russia (1)Slovenia (1)Spain (48)Sweden (1)Switzerland (34)Turkey (1) UK / Ireland (3)


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Our SuccessMiddle East and Asia Pacific


Locations in Asia Pacific (5)China / Macau (2)Thailand (3)

Locations in Middle East (15)Bahrain (1)Qatar (2)United Arab Emirates (11)Jordan (1)Oman (1)


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Our SuccessUSA

Locations in USA (26)California (2)Florida (14)North-East (10)


Locations in Africa (29)

South Africa

Locations in South America (10)Argentina (2)Chile (7)Peru (1)

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3. The Licensing System


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Structure

Seller / Buyer

License partnerLicense partner License partner License partner

A A A A AA A A A AA A

Master License Partner Master License Partner

Engel & Völkers


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Brand Network Know How Virtual World

Market leading broker of exclusive property Clear and consistent

Corporate Identity

Standardised Corporate Design Presence and transparency through introduction of shop systems

Licensing System - Brand


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E&V is a strong brand


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Proven appeal to the best/desirable buyers & sellers

Designed for optimum brand, service and communication

Shop Concept


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Brand recognition due to Shop uniformity


Argentina

Spain

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Brand recognition due to Shop uniformity


Belgium Spain

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Examples of Products

Uniformed Corporate Identity


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Market leading broker of exclusive property

Clear and consistentCorporate Identity

Standardised Corporate Design

Presence and transparency through

introduction ofshop systems

Licensing System - Network

Referrals of buyers

Synergy effects through cross selling

Groupmarketing

IT networking

Referrals of sellers


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Currently over 26 000 properties

worldwide in marketing

Almost 400 000 active searching clients

Over 1 Million active client contacts per year

Standardised referral system

up to 15 % of all contacts are generated through the Engel & Völkers network

Rockster Villa sold through the E&V Network: price € 7.550.000; Commission: €453.000

The E&V Network


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Clear and consistent Corporate Identity

Standardised Corporate Design

Presence and transparency

through introduction ofshop systems

Licensing System - Service Concept


Group marketing

IT networking

Professional and personal seller/buyer service

Secures the optimum

acquisition as well asmarketing of

properties Market processing

In-house training and

sales system

Referrals of buyers


prof. Marketing (i.e.GG)


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Setting up a qualified employee structure

More than 1 400 seminar days p.a. at the Engel & Völkers Property Academy

Offering expert seminars

Constantly updating Engel & Völkers training concept

Global Academy

Master License Partner

License Partner

Local Academy

Agents

Assistants

Follow-up education

The E&V Academy


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Ongoing Support


First Contact to License Partner

Administrative support

Coordinaton of marketing support

Product and service support

License Partner

Relationship Management

Strategic planning

Sales support

Commercial support

Business development

Head of Real Estate

Master License Partner

Ongoing Support

Ongoing Support

Ongoing Support

Ongoing Support

Ongoing Support

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1.2. Shopsystem



Clear and consistent Corporate Identity

Standardised Corporate Design Presence and transparency

through introduction of shop systems

Virtual World


Group marketing

IT networking

Professional and personal seller/

buyer service Secures the optimum

acquisition as well asmarketing of properties

Market processing

In-house training and

sales system

Global Office(real estate software)

Real estate portal E & V

Co-operation

E & V Marketing and Real estate expertise

accessible through intranet

Referrals of buyers


prof. Marketing (i.e.GG)


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Internal communication tool for licencing partners and co-operation partners / estate agents

E&V content, marketing and real estate expertise accessible

Form letters

Advertisements (CD models)

Marketing tools

Standard contracts

etc.

Virtual World - E&V Life


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Virtual World - Print Shop


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Real Estate Software

Complete sales solutions for client, activity and property management

Internet-based software

Virtual World - Global Office


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Global Site

Country Sites

Regional Sites

Agent and Project- Sites

.com

.ch .es co.za .au.fr

…www.engelvoelkers.com/mallorca

…www.engelvoelkers.com/garveyfox www.engelvoelkers.com/chateauallaman

…www.engelvoelkers.com/palmaLocal/Shop Sites

Online - The Domain Structure


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4. Marketing Concept


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Engel & VölkersResidential Marketing Tools

DirectMarketing

PrintTools

GGMagazine

OnlineTools

Marketing Tools


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Direct Mailing


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Direct Mailing


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Print - Service Brochure for Acquisition


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Private Residences

Home Away from Home

Print - Brochures


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Image &

Property

Advertisements

Print - Classical Advertisements


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Print - Group Marketing


Image &

Property

Advertisements

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Print - Outdoor Signage


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Print - Market Reports

Market Report contains

trends and figures from the

local real estate market


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2-Page

Exclusive Expose

Print - Exclusive Expose


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Pencil Set „Flaglabel“Notebook „Flaglabel“

Credit Card holder „London“

„Flaglabel“ Pencil

Drinking Bottle

Key Ring „New York“

Ballpoint Pen „Paris“

Print - Merchandising Tools


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since 1988

… has reflected the success story behind the E&V brand for more than 20 years … can be read in German, English, Spanish, French and Flemish … has a total print circulation of 130,000

copies and is distributed by more than 450 E&V shops around the world

Global Guide (GG) - Lifestyle, Personalities & Real Estate


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Classical Real Estate Advertisement

Global Guide (GG) - Lifestyle • Personalities • Real Estate


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Online - Homepage

www.engelvoelkers.com


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Online - Subdomains

www.engelvoelkers.com/fortlauderdale


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5. Our Licensing System proves to be successful


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Engel & Völkers is ranked at number 39 (one of only 2 real estate franchises and one of 4 European companies)

„Franchise Direct“ compiled information on over 5,000 franchises worldwide, regardless of their size or country of origin, judged all the companies on the same objective merits, e.g.:

number of units worldwide

number of expanded countries

years the company has been franchising

„Franchise Direct“ was established in 1998 and is one of the world‘s leading portals for franchise and business opportunities today. They are operating a suite of 6 multilingual sites targeting Northern America and Europe.

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Our SuccessPenetrating new countries (Residential and Commercial)

0

5

10

15

20

25

30

35

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


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Our SuccessResidential Shops and Commercial Offices worldwide

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50

100

150

200

250

300

350

400

450

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


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Our SuccessResidential and Commercial Real Estate Licences Sold

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100

200

300

400

500

600

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


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0

30,000,000

60,000,000

90,000,000

120,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Our SuccessDevelopment of Commission Turnover in EUR (Residential only)


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6. Investment


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Initial license fee

Ongoing Royalty

Service fee based on service scope

Investment for the property shop

Capital for start-up phase


Engel & Völkers

Investing into a brand that is operating in the franchise business is a good investment,

as you can easily sell yourrunning business at a later stage.

Your Investment

Investment by Licensee

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7. Roll-out plan : Australia


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7. Roll–out Plan : Australia

Phased roll-out :

To ensure the delivery of quality our roll-out will be strategically phased in.

Head Office & State Offices:

Australia head office is located in Perth, WA and our first State Office in the Sunshine Coast , QLD

1st Shop Opening :

25 Aug 2010 – Mooloolaba . Followed by Brisbane, Gold Coast and Western Australia.

Our Focus :

Focus will be Residential Sales & Property Management.


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8. Summary


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Summary


Challenges to real estate company success are growing!

Agent pressure – higher expenses – cost of branding – cost of technology

Demands of the Internet and need for international network

Act local, think global

Tremendous Growth (over 30% within the last years)

Local estate agents with access to global property markets

Strength in the market due to a strong brand and outstanding network

Successfully proven Corporate Identity and Corporate Design

Service system a step above anything

Unmatched technology and professional marketing services

Shop system image – proven appeal to the right target market!

For sales agents – the right image, system and support means - higher opportunity – easy recruitment!

Engel & Völkers is a great International brand represented in 37 Countries on 5 continents

What better way to enter the market? Open a leading international brand Real Estate shop in the best locations in Australia

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Further Information

ENGEL & VÖLKERS, AustraliaE&V Australia (Pty) Ltd, Master License Partner of ENGEL & VÖLKERS International, Hamburg

Head Office (Perth) – Western AustraliaClaremont, Perth, WA, 6005Mobile (Martin) : +61 (0)438 058 102Fax: +61 (0)8 9286 4847

State Office – Queensland1 Brisbane Rd, Mooloolaba, QLD 4557Tel : +61 7 5444 4990Mobile (Karl): +61 (0)402 919 955

Internet: www.engelvoelkers.com.auMailto WA : [email protected] QLD : [email protected]

Documents

Expansion Presentation Australia 05 Oct2010 V7