Rea Group Ltd · ASX:REA
Rea — Investor Day (November 2023)
68 slides from Rea's investor day presentation, Nov 22, 2023
Slide 1: REA India Investor Roadshow Presentation
ASX Announcement 22 November 2023 REA India Investor Roadshow Presentation REA Group Ltd (ASX:REA) will be holding a two-day REA India Investor Roadshow in Delhi, India, commencing today at 9.15am India local time (2.45pm AEDT). Attached are the REA India Investor Roadshow presentation materials. -e
Slide 2: REA India Investor Day
@ REA India Investor Day 22 November 2023
Slide 3: Disclaimer
>Disclaimer Cc This presentation has been prepared by REA Group Ltd ABN 54 068 349 066 (“REA”) and contains general information about REA and its subsidiaries (“REA ()Group”) and its activities as at the date of this presentation. This information is in summary form only and does not purport to be c
Slide 4: For personal use only
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Slide 5: Strategy: building next generation marketplaces
REA India - Strategy We are building a next generation marketplace with clear strategic focus across audiences, customers and data For personal use only Superior customer value Including Agents/Brokers, Developers & DIY sellers Largest audiences, most engaged consumers Through our core and adjacent
Slide 6: Core advertising supported by adjacent services
REA India - Strategy Housing.com’s core property advertising business is supported by adjacent services on Housing Edge and developer-focused agency, PropTiger For personal use only @rReAindia HOUSINGcom TdPropricer Core Services (‘Housing Edge’) & DIY Premium online property classifieds portal One-
Slide 7: Our strategic priorities are clear
personal use onl FOr REA India - Strategy Our strategic priorities are clear Market leadership in audience Extend audience leadership; differentiate with superior consumer experiences Stronger monetisation in core Drive growth through superior products, our winning sales approach and geographical ex
Slide 8: Strong execution on growth strategy and audience leadership
REA India - Strategy Strong execution on growth strategy and audience leadership Stronger More value monetisation in core for consumers Market leadership in audience + 42 % 10 services 3Y CAGR in Developer Available on Housing Customers® Edge, including 2 DIY subscription services +34% 98% 3Y CAGRin
Slide 9: Real Estate Advertising
For personal use only @ REA India Real Estate Advertising Dhruv Agarwala Chief Executive Officer, REA India
Slide 10: REA India operates in a large and growing market
REA India - Real Estate Advertising Size and Growth REA India operates in a large and growing market Our addressable markets are large... ..and growth will continue, driven by favourable market conditions Cc (e) g Total Market: A$8.8bi otal Market: A$8.8bn . 5S Marker size, FY25 (AS) Increasing Indi
Slide 11: India vs Australia
REA India - India vs Australia Comparing the Indian and Australian markets highlights this potential Annual estimates, 2022 For personal use only Number of Households! 320m 10.5m Urban Population % 36% 86% Household Debt as % of GDP 37% 119% Mortgage Debt as % of GDP4 1% 56% Annual Per Capita GDP (A
Slide 12: Growth in prices and transactions
REA India - Growth in prices and transactions New home prices in Tier 1 and 2 cities have grown consistently since 2017, with strong growth in demand post-covid in all major cities Indian real estate market has accelerated strongly post-Covid slowdown... ...with strong demand across all major cities
Slide 13: Offline to online
REA India — Offline to online Increasing availability and use of smart devices is driving significant growth in online audiences and increasing spend on digital advertising For personal use only Increasing smartphone penetration... m= Smartphone users (n)! — Smartphone penetration %! 70% 4m 1,008 22
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Slide 15: Real Estate Advertising Take Aways
REA India - Real Estate Advertising Take Aways Key Take Aways For personal use only Large and Strong market growing TAM fundamentals Portals play akey role * The online advertising market * India is an attractive market is large and growing: with strong macro tailwinds supporting future growth: - To
Slide 16: Snehil Gautam, Chief Growth and Marketing Officer
For personal use only Snehil Gautam Chief Growth and Marketing Officer, REA India
Slide 17: Audience Strategy
REA India - Audience Strategy Our market leading audience is key to our ambition to become India’s undisputed #1 property marketplace Market leadership in audience Extend audience leadership; differentiate with superior consumer experiences personal use only Eor @preaindia 16
Slide 18: We are the #1 address for Indian property
REA India - Audience Weare the #1 address for Indian property Housing.com has grown and sustained #1 audience position since Oct 2021... ..and is now focused on driving app engagement Dvousing.com relative audience size vs competitors (From Oct-20 to Oct-23)! x 3 ersonal use For p 2 3 Change in mont
Slide 19: Audience Strategy: awareness and engagement
REA India - Audience Strategy Our investment and focus has delivered strong brand awareness, audience acquisition and engagement through superior consumer experiences Build audience and drive trust, awareness and preference in our core markets Awareness Uplifting content structure, quality and quant
Slide 20: Housing.com is now #1 for brand awareness
REA India - Awareness Housing.com is now #1 for both Total and Spontaneous brand awareness Total brand awareness (Apr‘20-Oct’23)! Spontaneous brand awareness (Apr’20-Oct’23)! roy ie ‘Apr 2020, ‘Apr 2020, ‘Apr 2021 ‘Apr 2021 BE 40-2022 BE c2022 ii oxt20zs [oxr2028 #1 #1 HB #3 #3 #3 #3 83 % 95 93 MEE
Slide 21: Acquisition
REA India - Acquisition Strong organic audience acquisition is driven by SEO and app downloads, supplemented with paid channels For personal use only SEO High market share on core business keywords, Housing News improves organic ranking and bridges information gaps to assist decision making App Web
Slide 22: Engagement
REA India - Engagement We are targeting the best experience at all touch points through quality listings, trust and transparency and technologically superior products > seti <= Listings Trust & Transparency Products (e) (TARGET: Highest quality, most relevant Across all touch points Technologically
Slide 23: Listings Quality
REA India -— Listings Quality We aim to deliver the highest quality and most relevant listings through verification, user feedback and in-app messaging 330K+ Et > Browse by verified properties User feedback loop In-app messaging Cc —“ i a je) ¢ | ® 12) 5 wousine + \Verified Gq g ( Users engaged with
Slide 24: Trust & Transparency
REA India - Trust & Transparency We bring property market transparency through our unique data, insights and ratings and reviews Property data and insights Sales transaction insights Price Trends for nearby localities bg Poe / Sat Price Range / Sat e31670 13,383 seas 253,333, Hal use only Live on 33
Slide 25: Superior Experience
REA India - Superior Experience We continue to invest in superior and personalised consumer experiences to deliver the best quality product Interest-led property browsing Users who see the icons use them 4, to explore fo properties! Increase in enquiries due to suggested properties! 212,000/ Month 2
Slide 26: Enquiries Growth
REA India - Enquiries Growth Highly engaging experiences encourage more enquiries, delivering greater customer value 3.7x Match right seller for consumer Monthly Enquiries * l Tl needs HIFY2I* H2FY21 HIFY22 H2FY22 HIFY23 H2FY23 HIFY24? => Cc '‘® HOUSINGcom jo) 3 2.0x g e High converting and a Monthl
Slide 27: Audience Take Aways
REA India - Audience Take Aways Key Take Aways For personal use only Audience growth SEO & app * Weare the #1 address for Indian property, and have sustained and grown our #1 audience position since Oct 2021 + Weare #1 for both total and spontaneous brand awareness + Strong organic acquisition is dr
Slide 28: For personal use only
For personal use only oD
Slide 29: Housing.com Customer Strategy
REA India —- Housing.com Customer Strategy We monetise our market leading audience through our Housing.com customer strategy Stronger monetisation in core Drive growth through superior products, our winning sales approach and geographical expansion For personal use only @preaindia 28
Slide 30: Strategy has delivered significant growth in core advertising revenue
REA India - Housing.com Customer Strategy This strategy has delivered significant growth in our core advertising revenue New city expansion 44% CAGR For personal use only FY20 FY23 Core revenue! ($A) (1) Housing advertising revenue. Excludes adjacency and PropTiger revenues ) REAIndia 29
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Slide 33: Agent Subscription Products
REA India - Agent Subscription Products Higher tier subscriptions provide more agent and agency branding opportunities, encouraging upgrade from entry level subscriptions > Listing Upgrade Cc ro) ‘Pro’ search filter ep) HOUSING names Brome > ee Preferential visibility Cc {e) Larger card, more — more
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Slide 35: New Project & Add-ons
REA India - New Project & Add-ons. Agents selling new residential projects compete against other agents to win sales - dedicated products for this segment help agents stand out * ‘Showcase’ visibility banners used by agents in 13" position in organic search result page (can also be used for resale p
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Slide 37: Geographical Expansion
REA India - Geographical Expansion We plan to continue expanding our geographical reach into additional Tier 2 markets Established urban centers with high population (>4m) Established presence in all 8 cities, with addressable population of ~60m! Emerging urban centers with moderate population (0.5m
Slide 38: How we compare
REA India - How we compare Housing.com stands out from competitors with a market leading audience and differentiated products for customers For personal use only A HOUSINGcom magicbricks: Audience Metrics Audience Traffic! 20.8m 7.4m Android App Rating 4.6 43 Monthly App Downloads* 548k 131k Strateg
Slide 39: Housing.com Take Aways
REA India - Housing.com Take Aways Key Take Aways For personal use only Superior products * We offer a differentiated platform experience that delivers unique value to our agent and developer customers + Our tiered subscription products create a depth ladder with yield growth runway Winning sales ap
Slide 40: Housing Services - Edge & DIY
@ REA India Housing Services - Edge & DIY Sangeet Aggarwal Executive Vice President, Product and Design, REA India
Slide 41: Housing Services Strategy
REA India - Housing Services Strategy Our consumer value strategy is to bring REA India closer to the real estate transaction and deliver richer digital experiences For personal use only More value for consumers Build digitally enabled user journeys to extract a higher share of wallet through DIY an
Slide 42: Housing Edge & Services Overview
REA India — Housing Edge & Services Overview REA India operates a range of services through Housing Edge & Housing DIY For personal use only + While buyers use online platforms to shortlist the properties they are * Some homeowners want the ability to list their properties interested in, further sta
Slide 43: Housing Services Market
REA India - Housing Services Market Our digital housing services capitalise on favourable macroeconomic trends and interest in emerging adjacent services Growing credit card usage Growing Fintech market Expanding internet user base For personal use only + India is experiencing double-digit annual gr
Slide 44: Services Strategy
REA India - Services Strategy Housing Services increases touchpoints with consumers, maintaining relevance across their property lifecycle and delivering incremental revenue 20+ service vendor partners HOUSING EDCE HOUSING DIY For personal use only — ES | S4m_ | FY21 FY22 FY23 Adjacencies revenue ($
Slide 45: Pay-on-Credit
REA India - Pay-on-Credit Rent ‘Pay-on-credit’ has delivered high double-digit revenue growth For personal use only + Fastest growing service on the Edge platform, driven by increased market + Through Pay-on-Credit, users can pay rent using their credit card for a small awareness and strong retentio
Slide 46: Rental Agreements Service and Home Loans Marketplace
REA India - ‘Rental Agreements’ Service and 'Home Loans' Marketplace Other newly launched on-demand services under Edge continue to see strong traction ‘Rental Agreements’ Service FI Rent 15k+ cae Agreement India's only online service with digital signing ° Rent Agreement Home Loans 130k+ Consumers
Slide 47: Housing DIY
REA India - Housing DIY Housing DIY offers additional services to help buyers and homeowners who want to transact directly via a freemium model Owner Self Serve Plan Owner Assisted Plan 7 " 7 DIY Services Activate a package . Activate a package + Buyers and homeowners who want to connect directly to
Slide 48: How we compare
REA India - How we compare We will continue to expand our Housing Services business, and are rapidly catching up in the market For personal use only Financial Products Products Offered Service Model Service Products Products Offered Approach to Monetisation Service Model DIY Services Approach to Mon
Slide 49: Housing Services Take Aways
REA India - Housing Services Take Aways Key Take Aways For personal use only Increasing consumer touchpoints * Housing Edge increases touchpoints with consumers, maintaining relevance across their property lifecycle Our services, such as rent Pay- on-Credit, digital agreements and home loan marketpl
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Slide 51: Customer Value Strategy
REA India - Customer Value Strategy Superior ‘close to transaction’ products strengthen our customer relationships For personal use only Extend audience leadership; differentiate with superior consumer experiences Drive growth through superior products, our winning sales approach and geographical ex
Slide 52: More value for customers
REA India - More value for customers Our developer and mortgage products are creating more value for our customers and building deeper ongoing engagement Develop deeper customer relationships and extract higher share of wallet with Participate in large PropTiger revenue pools close to the transactio
Slide 53: New homes market in India
Q)propricer REA India - New homes market in India Demand for new homes in Tier 1 cities has been growing steadily and is expected to maintain its momentum aided by increasing urbanization ~ The ket has surpassed Der id continues Increasing rates c. pre-COVID and pre-RERA levels to grow of urbanisati
Slide 54: PropTiger Offering
REA India - PropTiger Offering PropTiger addresses consumer needs by providing end-to-end support inhome buying journey, which in turn helps create value for our developer customers Developer Value Chain For personal use only (Din Brokera Plan marketing expenses for PropTiger are paid from this 3 Le
Slide 55: PropTiger Success and Current Challenges
REA India - PropTiger Success and Current Challenges We have delivered strong PropTiger results, but continue to navigate industry challenges ur success meé Ss For personal use o 3Y CAGR revenue (FY20-FY23) Happy homebuyers since founding Tier 1 cities where PropTigeris present e) &) & Sales special
Slide 56: Mortgage market in India
REA India - Mortgage market in India The mortgage market is large and growing rapidly, and the lending process continues to digitise For personal use only Mortgage market size anticipated to double in the next 5 years Mortgage Market (A$b)! 15% CAGR $870b $430b FY22 FY27F + The mortgage market is ex
Slide 57: Easiloan Strategic Investment
REA India - Easiloan Strategic Investment REA India has invested! in Easiloan to digitise the mortgage documentation process and provide incremental revenue opportunity to customers Complete digital journey throu: ‘A HOUSINGcom Lead generation via customer referrals and housing audience, v Broad net
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Slide 60: Our Execution
REA India - Our Execution Our strategic investment and strong execution have driven impressive momentum over the last three years Portal by App traffic? Customers* audience! CAGR CAGR For personal use only () As per Similarweb data, October 2023. (2) 3Y CAGR per Similarweb data for Sep'23 vs Sep'20;
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Slide 64: Close
personal use onl FOr REA India - Close We are building our winning team to deliver our winning strategy Market leadership in audience Extend audience leadership; differentiate with superior consumer experiences Stronger Monetisationin core Drive growth through superior products, our winning sales ap
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Slide 67: Indian market context
REA India - Indian market context The Indian market is divided into multiple tiers with differing characteristics For personal use only Geographic Segmentation ap Tier 1 As Tier 2 Tier 3 ES: a . . Thousands of small # cities 8 cities 97' cities Ges Piewns Typical Population (mil) >4m2 0.5m - 4m2 <0.
Slide 68: Tier 1 cities
REA India - Tier I cities Tier 1 cities are the most developed real estate markets, with strong developer activity Dethi (NCR) Mumbai (MMR) Bangalore Pune Hyderabad Chennai For personal use only Kolkata Ahmedabad # Households (my! 43 51 3.0 16 23 28 39 18 CcY22 New Launches (‘000 15 166 42 75 83 33