Slide 1: REA Group Full Year 2009 Analyst and Investor Presentation
For personal use only REA Group Ltd Full Year 2009 Analyst and Investor Presentation August 2009 www.rea-group.com
Slide 2: FY09 was another record period for traffic and EBITDA margin
FY09 was another record period in the history of REA Group (‘REA’) in both traffic and EBITDA margin For personal use only REA GROUP KEY METRICS - EXCLUDES UK OPERATIONS Revenues ($m) EBITDA ($m) Closing number Unique Browsers of Paying Agents (millions) $167.8 18,879 $62.3 6.9 16,341 $133.6 5.8 5.5
Slide 3: Financial performance of the REA Group
REA continues to deliver strong growth across major key metrics. However, net profits were adversely impacted by the sale and impairment of the discontinued UK operations For personal use only FINANCIAL PERFORMANCE OF THE REA GROUP * Note: Income Tax Expense is relatively high as most of the oversea
Slide 4: 77% of total revenues derived from real estate agents
77% of total revenues were derived from real estate agents For personal use only REVENUE SPLIT BY CUSTOMER FOR FY2009 Total = $167.8m Source: REA Group Analyst presentation - REA - FY09 results 4
Slide 5: Country segment information
Key driver of the growth in revenues and profits is Australia For personal use only COUNTRY SEGMENT INFORMATION Source: REA Group Analyst presentation - REA - FY09 results 5
Slide 6: Listings on REA Group sites as at June 2009
During FY09, the focus on key brands has resulted in a 33.6% increases in p property p y listings g on continued operations. p For personal use only LISTINGS ON REA GROUP SITES AS AT JUNE 2009 Country y Site June 2008 June 2009 realestate.com.au 432,145 437,527 Australia realcommercial.com.au 86,150
Slide 7: REA Group site performance June 2008 and June 2009
Site performance across the group has showed continued annual growth during FY09 For personal use only REA GROUP PERFORMANCE IN JUNE 2008 AND JUNE 2009 UNIQUE BROWSERS PAGE IMPRESSIONS Country Site June 2008 June 2009 Growth June 2008 June 2009 Growth realestate.com.au & mobile 4,137,869 4,669,039 1
Slide 8: Key highlights from the Group's Australian operations
Key highlights from the Group’s Australian operations For personal use only AUSTRALIA ITALY LUXEMBOURG AND OTHER COUNTRIES Analyst presentation - REA - FY09 results 8
Slide 9: Australia at a glance
The Australian business has delivered growth across all key dimensions For personal use only AUSTRALIA AT A GLANCE ARPA (Average Revenue Per Agent) 1,200 $1,040 9 332 9,332 1,000 800 600 400 200 0 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Key Information residential • Revenues up from $121m (FY08) to $150m
Slide 10: Revenue split by brand - Australia
realestate.com.au delivers 85% of the Australian revenues For personal use only REVENUE SPLIT BY BRAND - AUSTRALIA and others Source: REA Group Analyst presentation - REA - FY09 results 10
Slide 11: realestate.com.au continues to be the leading Australian site
realestate.com.au continues to be the leading Australian realestate site For personal use only Paying Subscribers Listings 8,600 500,000 8 477 8,477 480,000 480 000 437 527 437,527 8,400 460,000 440,000 8,200 420,000 8,000 400,000 380,000 7,800 360,000 340,000 7,600 320,000 7,400 300,000 Jun-07 Dec-
Slide 12: realestate.com.au dominates unique browsers versus domain.com.au
In June 2009, realestate.com.au continues to dominate with more than two times the unique browsers than the number two, domain.com.au For personal use only Source: Nielsen MarketIntelligence Analyst presentation - REA - FY09 results 12
Slide 13: realcommercial.com.au number one commercial real estate site
realcommercial.com.au has further consolidated its position as the number one commercial real estate site in Australia For personal use only Paying Subscribers 1,350 113,515 1,299 1 300 1,300 1,250 1,200 1,150 1,100 1,050 , 1,000 950 900 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Key Information Unique Brow
Slide 14: realholidays.com.au significant subscriber growth over FY09
realholidays.com.au has shown significant subscriber growth over FY09 For personal use only Paying Subscribers 500 442 Listings 450 22,500 400 22,000 21,000 350 21,500 300 21 000 21,000 250 200 20,500 150 20,000 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-
Slide 15: Key highlights from the Group's Italian operations
Key highlights from the Group’s Italian operations For personal use only AUSTRALIA ITALY LUXEMBOURG AND OTHER COUNTRIES Analyst presentation - REA - FY09 results 15
Slide 16: Italian real estate market similar in size to Australia
The size of the Italian real estate market is similar to the Australian market For personal use only ITALY / AUSTRALIA – REAL ESTATE MARKET Total transactions Addressable real estate advertising market (2007) (2008) Billions of AUD Total Market Non‐Addressable (Pure branding & 20% Other Ads) 35% Add
Slide 17: Further growth expected with online advertising maturing
We expect further growth with the maturing of online advertising and increased internet penetration and usage For personal use only ITALY - AUSTRALIA Internet penetration (2008) Share of online in total advertising market for real estate (2007) Australia Italy Australia Italy Australia Italy y Analy
Slide 18: The distribution of our customers
THE DISTRIBUTION OF OUR CUSTOMERS For personal use only In Italy there is a potential market of about 32.000 32 000 Real R l Estate E t t agentst Casa.it has 8.050 paying agents that cover 25% of the Italian Real Estate Market ITALIAN MARKET AREA Agent distribution North 50% Center 37% South & Islan
Slide 19: casa.it continues to lead in the emerging Italian market
casa.it continues to lead in the emerging Italian market For personal use only ITALY AT A GLANCE Subscribers to casa.it Paying Agents 9,000 8,053 EXCLUSIVE 8,000 SUBSCRIBERS CASA.IT 31% SUBSCRIBERS 7,000 TO CASA.IT AND OTHER PORTALS 6,000 62% 5,000 4,000 3,000 Feb-07 Sep-07 Apr-08 Nov-08 Jun-09 SOUR
Slide 20: casa.it strategy
casa.it is in the centre of the groups growth strategy and will undergo significant improvements For personal use only CASA.IT STRATEGY Today Tomorrow Consumer Standard site Improved consumer experience with modern site features Customer Various subscriptions with multiple price points Two classes o
Slide 21: Key highlights from the other operations
Key highlights from the other operations For personal use only AUSTRALIA ITALY LUXEMBOURG AND OTHER COUNTRIES Analyst presentation - REA - FY09 results 21
Slide 22: The Luxembourg market is small but very profitable
The Luxembourg market is small but very profitable For personal use only LUXEMBOURG AT A GLANCE Paying subscribers Market share 500 Not o oon a atHome o e 479 450 Added in FY09 400 350 As per June 08 300 Feb-07 Sep-07 Apr-08 Nov-08 Jun-09 Total = ~560 agents (est.) Luxembourg Unique Browsers Key Inf
Slide 23: Managing a portfolio of growth options and other markets
REA Group is managing a portfolio of growth options and has streamlined its p portfolio over the course of the yyear For personal use only OTHER MARKETS France/Germany Exit of the United Kingdom Exit of UK print business in May 2009 Sale of the UK online business in August 2009 Acquired with athome.
Slide 24: Disclaimer
Disclaimer For personal use only The material herein is a presentation of non-specific background information about the Company’s current activities. It is information given in summary form and does not purport to be complete. complete Investors or potential investors should seek their own independe