Slide 1: The Emergence of a Global Online Real Estate Advertising Player
For personal use only The Emergence of a Global Online Real Estate Advertising Player Fiscal Year 2007 Results Presentation realestate.com.au Ltd 21 August 2007 www.rea-group.com
Slide 2: The REA Group has expanded significantly in the last 12 months
The REA Group has expanded significantly in the last 12 months For personal use only AREAS OF OPERATIONS June 2006 June 2007 Residential Property realestate.com.au realestate.com.au Advertising allrealestate.co.nz (launched Sep 05) property.com.au propertyfinder.com (acquired Nov 05) homesite.com.au
Slide 3: The REA Group now operates in 8 countries and across three product categories
The REA Group now operates in 8 countries and across three product categories For personal use only AREAS OF OPERATIONS Australia New United Italy Luxembourg France Germany Belgium Zealand Kingdom Residential Property Advertising Commercial Property Advertising Agent Office Solutions August 2007 REA
Slide 4: Agenda
Agenda For personal use only • FY2007 Performance • Residential Property Advertising - Australia - New Zealand - United Kingdom - Italy - Greater Luxembourg region - Rest of the World • Commercial Property Advertising - Australia - New Zealand - Greater Luxembourg region • Agent Office Solutions - A
Slide 5: The REA Group continues to grow on key financial metrics
The REA Group continues to grow on key financial metrics For personal use only FINANCIAL PERFORMANCE OF REALESTATE.COM.AU LTD Note: Up to FY04 AGAAP, from FY05 AIFRS August 2007 REA Group - FY2007 Results Presentation 5
Slide 6: Revenues increased by 24% to $59.9 million over the last half-year
Revenues increased by 24% to $59.9 million over the last half-year and 66% over the previous corresponding half-year For personal use only REA GROUP REVENUES +24% $ million or 11.8m 59.9 60 48.1 50 40 36.2 30 24.7 18.4 20 15.2 11.2 7.9 10 0 1HY04 2HY04 1HY05 2HY05 1HY06 2HY06 1HY07 2HY07 Note: Up to
Slide 7: The Australian business delivered 80% of revenues
The Australian business delivered 80% of revenues For personal use only REVENUE SPLIT BY COUNTRY FOR FY 2007 UNITED KINGDOM Residential Property Advertising GREATER LUXEMBOURG $1.5m Residential & Commercial Property Advertising, (1%) Agent Office Solutions AUSTRALIA Residential & $17.1m Commercial $
Slide 8: Online residential property advertising delivered 84% of revenues
The online residential property advertising products delivered 84% of revenues For personal use only REVENUE SPLIT BY BUSINESS LINE FOR THE HALF FY 2007 Online Commercial $6.2m Property (6%) Advertising Online Residential Agent Office $4.4m Property Solutions $90.4m (4%) Advertising (84%) Agent reve
Slide 9: All locations are profitable or have improved in FY07
All locations are profitable or have improved in FY07 For personal use only SEGMENT INFORMATION Greater Australia & United Luxembourg Comparative Data ($’000s) New Zealand Kingdom 1 2 Italy region2 Unallocated3 TOTAL FY2007 Revenue from services 86,568 17,891 1,337 1,497 107,293 EBITDA (allocated) 3
Slide 10: The REA Group increased paying agents by 59%
The REA Group increased paying agents by 59% through organic growth and acquisition For personal use only PAYING RESIDENTIAL AND COMMERCIAL AGENTS USING REA GROUP SITES June June Growth for Country Site 2006 2007 the year realestate.com.au Australia realcommercial.com.au 7,601 8,410 11% propertylook
Slide 11: There are more than 1,000,000 listings across the REA Group sites
There are more than 1,000,000 listings across the REA Group sites For personal use only LISTINGS ON REA GROUP SITES AS AT JUNE 2007 Country Site Listings realestate.com.au 383,889 Australia realcommercial.com.au 66,259 propertylook.com.au 5,954 allrealestate.co.nz 28,273 NZ propertylook.co.nz 1,682
Slide 12: There are more than 7m visitors to the REA Group sites
There are more than 7m visitors to the REA Group of sites For personal use only TOTAL UNIQUE VISITORS TO REA GROUP SITES Total Visitors Country Site (Jun 07) realestate.com.au 3,600,938 realcommercial.com.au 181,831 Australia propertylook.com.au 63,776 homesite.com.au 507,195 property.com.au 28,046
Slide 13: Agenda
Agenda For personal use only • FY2007 First Half Year Performance • Residential Property Advertising - Australia - New Zealand - United Kingdom - Italy - Greater Luxembourg region - Rest of the World • Commercial Property Advertising - Australia - New Zealand - Greater Luxembourg region • Agent Offi
Slide 14: Australia – realestate.com.au
For personal use only Australia – realestate.com.au The clear leader in residential online advertising in Australia August 2007 REA Group - FY2007 Results Presentation 14
Slide 15: Nearly 8,500 agents now use one of the real estate sites in Australia
Nearly 8,500 agents now use one of the real estate sites in Australia For personal use only PAYING AGENTS USING REA, RCA OR PL 8,456 July 2007 8 ,5 00 8 ,0 00 7 ,5 00 7 ,0 00 6 ,5 00 6 ,0 00 5 ,5 00 Acquisition of 5 ,0 00 property.com.au 4 ,5 00 4 ,0 00 3 ,5 00 3 ,0 00 2 ,5 00 2 ,0 00 1 ,5 00 1 ,0 0
Slide 16: An estimated 89% of Australia's 9,500 agents use REA, RCA and/or PL
An estimated 89% of Australia’s 9,500 agents use REA, RCA and/or PL For personal use only MARKET SHARE OF AUSTRALIAN REAL ESTATE AGENTS ESTIMATED JUNE 2007 Not on REA / RCA / PL Organic growth 11% in FY07 9% 80% As at 30 June 2006 Total = 9,500 residential and commercial agents (estimate) Note: REA
Slide 17: The ARPA continues to increase
The ARPA continues to increase driven by a combination of price increase and purchase of additional products For personal use only AVERAGE REVENUE PER AUSTRALIAN AGENT (ARPA) $700 $677 $650 $600 $550 Depth products include $500 • Feature Properties • Guaranteed Top Spot • Banner Advertising $450 • e
Slide 18: Unique browsers to realestate.com.au continue to grow
Unique browsers to realestate.com.au continue to grow For personal use only UNIQUE BROWSERS TO TOP 2 AUSTRLALIAN PROPERTY SITES 4,500,000 realestate.com.au July 2007 4,000,000 3.88 million 3,500,000 3,000,000 2,500,000 July 2007 1.89 million 2,000,000 1,500,000 1,000,000 domain.com.au 500,000 0 00 0
Slide 19: The gap between realestate.com.au and domain.com.au continues to grow
The gap between realestate.com.au and 2nd placed domain.com.au continues to grow For personal use only GAP IN UNIQUE VISITORS BETWEEN REALESTATE.COM.AU AND DOMAIN.COM.AU 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Jan 01 Jul 07 Source: Nielsen//NetRa
Slide 20: Visitors to realestate.com.au look at nearly double the pages
Visitors to realestate.com.au look at nearly double the pages of information compared to visitors to domain.com.au For personal use only COMPARISON OF PAGE IMPRESSIONS TO TOP 2 PROPERTY SITES JULY 2007 500,000,000 450 million 450,000,000 realestate.com.au 400,000,000 visitors each look at an average
Slide 21: Enhancing the information hosted on REA Group's websites
Enhancing the information hosted on REA Group’s websites For personal use only HOMESITE.COM.AU • Acquired in March 2007 • $0.5m revenues since acquisition • Profitable • Leading renovation portal in Australia August 2007 REA Group - FY2007 Results Presentation 21
Slide 22: New Zealand – allrealestate.co.nz
For personal use only New Zealand – allrealestate.co.nz From launch to 44% market share in less than two years August 2007 REA Group - FY2007 Results Presentation 22
Slide 23: Estimated 44% of New Zealand's 1,500 agents use allrealestate.co.nz
Estimated 44% of New Zealand’s 1,500 agents use allrealestate.co.nz For personal use only MARKET SHARE OF NEW ZEALAND REAL ESTATE AGENTS ESTIMATED JUNE 2007 added in Other FY 2006 56% 14% 44% added in FY 2007 19% Trials 11% Total = 1,500 agents (estimate) Source: The REA Group – includes 167 trials
Slide 24: allrealestate.co.nz is equal #2 player in New Zealand
allrealestate.co.nz is equal #2 player but still has fair way to go to close gap with market leader trademe.co.nz For personal use only TOTAL UNIQUE BROWSERS TO NEW ZEALAND SITES allrealestate.co.nz Source: Nielsen Netratings realestate.co.nz trademe.co.nz/property 600 500 UBs (thousands) 400 300 20
Slide 25: United Kingdom – propertyfinder.com & Propertyfinder Publications
For personal use only United Kingdom – propertyfinder.com & Propertyfinder Publications Great progress since November 2005 August 2007 REA Group - FY2007 Results Presentation 25
Slide 26: Strong growth in propertyfinder.com since acquisition
There has been a strong growth in propertyfinder.com since acquisition For personal use only GROWTH OF PROPERTYFINDER.COM October 2005 July 2007 Growth Residential Agents * 1,976 4,396 122% Listings n/a 286,514 n/a Online Revenues (GBP) 221,236 521,919 136% Offline Revenues (GBP) n/a 257,571 n/a UB’
Slide 27: Estimated 33% of the UK's 13,500 agents use propertyfinder.com
Estimated 33% of the UK’s 13,500 agents use propertyfinder.com For personal use only MARKET SHARE OF UK REAL ESTATE AGENTS USING PROPERTYFINDER ESTIMATED JULY 2007 As per Jun 06 21% Not on PF 67% 33% Added between Jul 06 and Jun 07 8% Trials 4% Total = 13,500 agents (estimate) Source: The REA Group
Slide 28: Propertyfinder has moved into second place in the UK market
Propertyfinder has moved into second place in the UK market For personal use only UK UNIQUE VISITORS TO TOP 4 UK PROPERTY SITES – EXCLUDES INTERNATIONAL VISITORS Rightmove PropertyFinder Source: Comscore Findaproperty Primelocation 4.0 3.5 3.0 UBs (millions) 2.5 2.0 propertyfinder is equal #2 1.5 1.
Slide 29: London Property News magazine group purchased to enhance traffic
The London Property News magazine group was purchased to enhance traffic to propertyfinder.com For personal use only PROPERTYFINDER PUBLISHING (formerly LONDON PROPERTY NEWS ) • A leading property magazine group in London and Surrey • 5 monthly titles • 300,000 circulation • ~ £2.7 million in annual
Slide 30: casa.it
For personal use only casa.it The Leader in the Italian Market August 2007 REA Group - FY2007 Results Presentation 30
Slide 31: Strong growth in casa.it since acquisition
There has been a strong growth in casa.it since acquisition For personal use only GROWTH OF CASA.IT January 2007 July 2007 Growth Residential Agents 4,154 4,996 20% Listings 170,367 213,825 26% Online Revenues (EUR) 176,450 229,241 30% UB’s 726,297 834,112 15% August 2007 REA Group - FY2007 Results
Slide 32: Estimated 33% of Italy's 15,000 agents use casa.it
Estimated 33% of Italy’s 15,000 agents use casa.it For personal use only MARKET SHARE OF ITALY REAL ESTATE AGENTS USING CASA.IT ESTIMATED JUNE 2007 Acquired in Feb 2007 20% 63% Added between Feb 07 and Jun 2007 33% 4% Trials 9% Total = 15,000 agents (estimate) Source: The REA Group – Includes 1,352
Slide 33: Casa.it – clear number one in the Italian market
Casa.it – clear number one in the Italian market For personal use only ITALY UNIQUE VISITORS TO TOP 4 PROPERTY SITES casa.it lavorincasa.it eurekasa.it www.systemacase.systemagroup.it 600 Source: Nielsen Netratings 500 400 UB's (thousands) 300 200 100 0 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-
Slide 34: REA Group formally took ownership of the number 1 site in Italy
On 8 February, the REA Group formally took ownership of the number 1 site in Italy For personal use only ITALY – www.casa.it • 30 staff across 2 offices • Most popular site in Italy • Profitable business with EBITDA (allocated) margin of 7% Source: NetRatings August 2007 REA Group - FY2007 Results P
Slide 35: atHome Group
For personal use only atHome Group Strong growth in the Greater Luxembourg region August 2007 REA Group - FY2007 Results Presentation 35
Slide 36: The atHome Group serves the Greater Luxembourg region
The atHome Group serves the Greater Luxembourg region For personal use only AREAS OF OPERATION OF THE AT HOME GROUP Greater Luxembourg Region • Consists of Luxembourg, Southern Belgium (Wallonie), Eastern France (Lorraine), Western Germany (Rheinland Pfalz) • Strong cross border traffic • Total popu
Slide 37: The atHome group is a good platform to grow new European markets
The atHome group is a good platform to grow new European markets For personal use only AREAS OF OPERATION OF THE AT HOME GROUP • More than 500 agents advertise on the sites of the atHome group • ~100,000 visitors across the sites • 20 staff • Profitable business with EBITDA (allocated) margin of 9%
Slide 38: Rest of the World
For personal use only Rest of the World August 2007 REA Group - FY2007 Results Presentation 38
Slide 39: The REA Group is building an International sales and marketing team
The REA Group is building an International sales and marketing team For personal use only REST OF THE WORLD The International team focuses on markets where the REA Group does not have a dedicated website October 2005 June 2006 July 2007 Growth International Agents 53 121 141 17% August 2007 REA Grou
Slide 40: Agenda
Agenda For personal use only • FY2007 First Half-Year Performance • Residential Property Advertising - Australia - New Zealand - United Kingdom - Italy - Greater Luxembourg region - Rest of the World • Commercial Property Advertising - Australia - New Zealand - Greater Luxembourg region • Agent Offi
Slide 41: realcommercial.com.au and propertylook.com.au are top commercial sites
realcommercial.com.au and propertylook.com.au are the top 2 commercial real estate sites in Australia For personal use only UNIQUE AUSTRALIAN BROWSERS TO COMMERCIAL REAL ESTATE SITES realcommercial.com.au propertylook.com.au Source: Nielsen Netratings commercialrealestate.com.au 200 180 160 UBs (tho
Slide 42: realcommercial.com.au and propertylook are being merged
realcommercial.com.au and propertylook are being merged in Australia and a new site is being launched in New Zealand For personal use only MERGER OF REALCOMMERCIAL.COM.AU AND PROPERTYLOOK realcommercial.com.au • realcommercial.com.au and propertylook • Commenced 12/02 are being merged to create an i
Slide 43: The atOffice business provides a platform for European commercial property
The atOffice business provides a good platform to explore commercial properties advertising in Europe For personal use only ATOFFICE.LU (LUXEMBOURG) • Market leader in commercial listings in Luxembourg • ~800+ listings August 2007 REA Group - FY2007 Results Presentation 43
Slide 44: Agenda
Agenda For personal use only • FY2007 First Half-Year Performance • Residential Property Advertising - Australia - New Zealand - United Kingdom - Italy - Greater Luxembourg region - International • Commercial Property Advertising - Australia - New Zealand - Greater Luxembourg region • Agent Office S
Slide 45: Hubonline and web design services provide complete office solution for agents
Hubonline and web design services provide a complete end to end office solution for agents For personal use only MERGER OF HUBONLINE AND WEB DESIGN SERVICES Hubonline Clarke Computers • Acquired in May 2006 • Acquired in • Web based sales management software November 2006 • Market leader • Market le
Slide 46: 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. Investors or potential investors should seek their own independent advice