Slide 1: FY 2008 - Results Presentation
For personal use only Online Real Estate Advertising FY 2008 - Results Presentation realestate.com.au Ltd 25 August 2008 www.rea-group.com
Slide 2: FY08 was the best year in the history of REA Group
FY08 was the best year in the history of REA Group For personal use only REA GROUP KEY METRICS Revenues ($m) EBITDA ($m) Closing number Unique Browsers (m) of Paying Agents $156 8.2 22478 7.1 $107 17011 5.0 $37 10713 $60 $24 6414 $33 5207 1.8 $13 $19 1.0 $6 $3 FY04 FY05 FY06 FY07 FY08 FY04 FY05 FY06
Slide 3: The REA Group continues to deliver strong year-on-year growth across all key metrics
The REA Group continues to deliver strong year-on-year growth across all key metrics For personal use only FINANCIAL PERFORMANCE OF THE REA GROUP Financial Comparative Data FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Growth in $’000 Revenues from Services 18,997 33,416 60,391 107,293 155,633 45% Operati
Slide 4: The REA Group operates a global network of real estate websites
The REA Group operates a global network of real estate websites For personal use only LOCATIONS OF WEBSITE OPERATIONS Source: The REA Group August 2008 REA Group - FY2008 Results Presentation 4
Slide 5: 77% of total revenues were derived from Real Estate Agents
77% of total revenues were derived from Real Estate Agents For personal use only REVENUE SPLIT BY CUSTOMER FOR FY2008 $14.6M DEVELOPERS (9%) $19.6M THIRD PARTIES REAL ESTATE AGENTS $120.6M (13%) (77%) $0.8M CONSUMERS (1%) Total = $155.6M Source: The REA Group August 2008 REA Group - FY2008 Results P
Slide 6: Key driver of the growth in revenues and profits is Australia
Key driver of the growth in revenues and profits is Australia For personal use only COUNTRY SEGMENT INFORMATION Country Revenue EBITDA Margin in $’000 FY 2008 Australia 120,719 61,946 51% United Kingdom 22,071 (10,057) (46%) Italy 5,401 (2,819) (52%) Luxembourg 3,532 1,054 30% Other countries 3,910
Slide 7: The Australian business delivered 78% of revenues
The Australian business delivered 78% of revenues (80% in 2007) For personal use only REVENUE SPLIT BY COUNTRY FOR FY2008 UNITED KINGDOM Residential sites Print publications $5.4M ITALY (3%) Residential site $22.1M LUXEMBOURG AUSTRALIA (14%) Residential site Residential sites $3.5M Commercial site C
Slide 8: Key highlights from the Group's Australian operations
Key highlights from the Group’s Australian operations For personal use only AUSTRALIA ITALY UNITED KINGDOM LUXEMBOURG OTHER August 2008 REA Group - FY2008 Results Presentation 8
Slide 9: Australian agents expect the shift to online advertising to continue
Australian agents expect the shift to online advertising to continue For personal use only Questions for: Simon Khouri, Director, Barry Plant, Point Cook Q. Simon, how much of Barry Plant Point Cook’s marketing budget is spent online? A. 85 to 90 percent. In our first year, 2006, we didn’t advertise
Slide 10: The Australian business has delivered significant growth across all key dimensions
The Australian business has delivered significant growth across all key dimensions For personal use only AUSTRALIA AT A GLANCE 10,000 Paying Agents ARPA (Average revenue per agent) $885 9,190 $900 9,000 $850 8,000 $800 7,000 $750 6,000 $700 $650 5,000 $600 4,000 $550 3,000 $500 2,000 $450 1,000 $400
Slide 11: realestate.com.au continues to be the leading Australian realestate site
realestate.com.au continues to be the leading Australian realestate site For personal use only 8,500 Paying Subscribers 440,000 Listings 432,000 8,400 8,373 420,000 8,300 400,000 8,200 8,100 380,000 8,000 360,000 7,900 7,800 340,000 7,700 320,000 7,600 7,500 300,000 Jun-07 Aug-07 Oct-07 Dec-07 Feb-0
Slide 12: realcommercial.com.au has gained significant ground as number one commercial site
realcommercial.com.au has gained significant ground as the number one commercial realestate site in Australia For personal use only 1,300 Paying Subscribers 100,000 Listings 1,250 95,000 1,182 86,150 1,200 90,000 1,150 85,000 1,100 80,000 1,050 75,000 1,000 70,000 950 65,000 900 60,000 Jun-07 Aug-07
Slide 13: Key highlights from the Group's overseas operations
Key highlights from the Group’s overseas operations For personal use only AUSTRALIA ITALY UNITED KINGDOM LUXEMBOURG OTHER August 2008 REA Group - FY2008 Results Presentation 13
Slide 14: 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 6,000 Paying Agents Market share Acquired in Feb 07 5,750 5,514 19% 5,500 5,250 Added 5,000 Feb 07 to Jun 07 Not on 4% 4,750 casa.it 4,500 48% 4,250 Added in FY08 4,000 13% 3,750 3,500 3,250 Trials 16% 3
Slide 15: Propertyfinder continues to make progress in the UK market
Propertyfinder with its ‘sister’ sites continue to make progress in the UK market and have clearly moved into second place For personal use only UNITED KINGDOM AT A GLANCE 6,000 Paying Agents Market share 5,633 As per Jun 06 5,500 21% 5,000 4,500 Not on PF Added in FY07 55% 8% 4,000 3,500 3,000 Adde
Slide 16: The Luxembourg market is small but very profitable
The Luxembourg market is small but very profitable For personal use only LUXEMBOURG AT A GLANCE 500 Paying Agents Market share Not on atHome 20% 450 441 Added in FY08 400 14% As per Feb 07 60% 350 Added between Feb 07 and Jun 07 6% 300 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 T
Slide 17: We continue to make progress in the growth options ('other countries')
We continue to make progress in the growth options (‘other countries’) For personal use only OTHER MARKETS France Belgium United Arab Emirates Acquired Feb 2008 Acquired with athome.lu in Feb 2007 Acquired with athome.lu in Feb 2007 • Strong growth into the online market • Agent numbers up by 472% t
Slide 18: Appendix - Further investor data
Appendix - Further investor data For personal use only August 2008 REA Group - FY2008 Results Presentation 18
Slide 19: As at June 2008, 22,478 paying agents used at least one of the REA Group sites
As at 30 June 2008, 22,478 paying agents used at least one of the REA Group sites For personal use only PAYING RESIDENTIAL AND COMMERCIAL AGENTS USING REA GROUP SITES June June Country Site Growth 2007 2008 realestate.com.au Australia realcommercial.com.au 8,410 9,190 9% propertylook.com.au allreale
Slide 20: Property listings across the group grew by 50% to 1.6 million
During FY08, property listings across the group grew by 50% over the last 12 months to 1.6 million For personal use only LISTINGS ON REA GROUP SITES AS AT JUNE 2008 Country Site June 2007 June 2008 realestate.com.au 383,889 432,145 Australia realcommercial.com.au 66,259 86,150 realholidays.com.au 21
Slide 21: During June 2008, 8.2m unique visitors used the REA Group of sites
During June 2008, 8.2m unique visitors used the REA Group of sites – up 15% from June 2007 For personal use only TOTAL UNIQUE VISITORS TO REA GROUP SITES IN JUNE 2008 Country Country Total Visitors realestate.com.au 4,137,869 realcommercial.com.au 246,997 Australia realholidays.com.au 115,236 proper
Slide 22: Across the globe, agents continue to pay more for our services
Across the globe, agents continue to pay more for our services For personal use only ARPA (Average Revenue Per Agent per month) SITE June 2007 June 2008 GROWTH ARPA LOCAL CCY (A$) Local CCY (A$) realestate.com.au realcommercial.com.au Australia realholidays.com.au $667 $885 33% property.com.au prope
Slide 23: Residential websites delivered 85% of revenues
Residential websites delivered 85% of revenues For personal use only REVENUE SPLIT BY PRODUCT LINE FOR FY2008 Commercial $9.6M Online (6%) Advertising Residential Online Advertising* Agent Office $6.5M Solutions $131.4M (4%) Agent revenues 63% Developer revenues 9% (85%) Third Party advertising 13%
Slide 24: Houses for the Homeless charitable marketing campaign
Houses for the Homeless charitable marketing campaign For personal use only Campaign: For every visitor to the realestate.com.au ‘Houses for the Homeless’ website, REA donated $1.00 to Mission Australia to house the homeless. The aim was to raise $100,000 (AUD). Results: • $100,000 dollars raised in
Slide 25: 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