Rea Group Ltd · ASX:REA
Rea — Investor Presentation (October 2020)
11 slides from Rea's investor presentation, Oct 29, 2020
Slide 1: REA Group Investor & Analyst Presentation – Acquisition of controlling interest in Elara Technologies
ASX Announcement 29 October 2020 REA Group Investor & Analyst Presentation – Acquisition of controlling interest in Elara Technologies On behalf of REA Group Ltd (ASX:REA) please find attached a presentation regarding REA’s acquisition of a controlling interest in Elara Technologies Pte. Ltd. -ends-
Slide 2: Acquisition of controlling interest in Elara Technologies Pte. Ltd.
REA Group Ltd Acquisition of controlling interest in Elara Technologies Pte. Ltd. Changing the way the world experiences property
Slide 3: Executive summary
Executive summary • REA Group to acquire controlling interest in Elara Technologies Pte. Ltd. (Elara) – REA will increase ownership from 13.5%1 to between 47.2% and 61.1% – On completion REA will control Elara, holding 5 out of 9 board seats • Total consideration for transaction expected to be in ra
Slide 4: Elara is uniquely positioned with a portfolio of high-quality assets
Elara is uniquely positioned with a portfolio of high-quality assets Description • Premium online property • Online property classifieds portal • Tech-led property brokerage firm classifieds portal • Assists consumers when buying, • On-ground property fulfilment / • Fastest-growing online Indian rea
Slide 5: India is an attractive market with world leading growth
India is an attractive market with world leading growth Real Gross Value Added (GVA) growth World-leading growth forecasts 1 • India is the fastest-growing trillion-dollar contribution (%, 2018-2019) 2 economy in the world, and the fifth largest 9% 8% 8% 7% 7% 10.0% 6% Agriculture economy overall ha
Slide 6: India's digital real estate market continues to demonstrate strong growth
India’s digital real estate market continues to demonstrate strong growth India’s real estate market expected to hit …with growing internet penetration (%) 2 • The Indian real estate market is significant US$1.0tn in CY30 (US$bn) 1 60% (estimated at US$180bn in CY20) and further growth is forecast1,
Slide 7: Elara is driving strong audience growth and increasing market share
Elara is driving strong audience growth and increasing market share Housing.com has achieved strong audience growth … 1 …and Elara has taken market share from competitors (visits) 2 30.7% 30.9% 17.7 29.2% 26.2% 14.3 14.0 22.9% Visits (m) 11.8 12.0 12.1 10.5 9.4 8.6 7.5 7.6 7.8 6.3 6.8 4.8 Mar-17 Sep
Slide 8: Elara has delivered strong revenue growth while investing for future growth
Elara has delivered strong revenue growth while investing for future growth • Elara has delivered strong revenue growth over the three years Elara revenue, A$m since REA invested in the business, generating a CAGR of 42% over FY17-FY20 27 25 • While COVID-19 continues to impact FY21 revenue, the bus
Slide 9: Transaction will be completed in two stages
Transaction will be completed in two stages • REA has entered into a binding agreement to move to a controlling interest in Elara • The transaction is anticipated to be completed in Q2 FY21 • Transaction completion remains subject to confirmatory due diligence and renegotiation of key management emp
Slide 10: Transaction summary
Transaction summary Consideration Cash paid by News Corp REA shares REA cumulative REA Board Acquisition step Description paid by REA REA cumulative issued # shareholding seats A$m A$m shareholding REA has agreed to subscribe for $US34.5m of preference shares in Cash $49.0 1 - $49.0 35.4% 2 out of 9
Slide 11: Visit our investor site at rea-group.com
Visit our investor site at rea-group.com Investors: Graham Curtin General Manager Group Finance P: +61 3 8456 4288 Disclaimer: This presentation contains non-specific background information E: ir@rea-group.com about REA Group’s current activities. This information is a summary only. Investors and po