Rea Group Ltd · ASX:REA
Rea — H1 FY2018 Earnings Presentation
27 slides from Rea's earnings presentation, Feb 9, 2018
Slide 1: Investor & Analyst presentation – Half Year Results 31 December 2017
For personal use only REA Group Limited Investor & Analyst presentation HALF YEAR RESULTS – 31 December 2017
Slide 2: Half year financial metrics
Half year financial metrics For personal use only +21% +21% $243m 112¢ 1 1 +21% EBITDA EPS $407m REVENUE 1 +21% +18% $147m 1 47¢ HALF YEAR DIVIDEND NPAT 1. Financial results from core excludes significant non-recurring items such as revaluation and unwind of contingent consideration, transaction cos
Slide 3: Half year highlights
Half year highlights For personal use only realestate.com.au is the #1 place for property across all platforms1 Launch of realestate.com.au Home Loans New consumer websites and app experience in Asia More than 11.8 million visits to Lifestyle since launch2 23% growth in site visits3 for realcommerci
Slide 4: realestate.com.au is No. 1 across all platforms
realestate.com.au is No. 1 across all platforms For personal use only Outperforming the competition – the largest and most engaged audience more than more than more than more than 2.5x 2.6x 7.2x 6.2x Total visits App launches Time on Site Total Page Views 71.9m 23m 259.2m 1.0bn (minutes) Average mon
Slide 5: realestate.com.au is Australia's #1 property app
realestate.com.au is Australia’s #1 property app For personal use only Our superior mobile experience means we have the leading property app Over 2.6x App launches 1 Growth in app +30% launches 2 Over 7.4m App downloads 3 Over 3.6x Time on app 4 1. Nielsen Digital Content Ratings - Average monthly a
Slide 6: Delivering on our purpose and strategy
Delivering on our purpose and strategy For personal use only Change the way the world experiences property Property Lifestyle and Global Advertising Financial Services 6
Slide 7: Innovating at our core Property Advertising
Property Advertising Innovating at our core Property Advertising For personal use only Enhancing the experience for our consumer segments across all platforms delivering the most personalised property insights New home page navigation Updated renovation Personal property New app estimator market rep
Slide 8: Innovating at our core Property Advertising: depth and premium products
Property Advertising Innovating at our core Property Advertising For personal use only An important factor has been the expansion and innovation of depth and premium products to generate even more lead opportunities for our customers Residential agent Audience Maximiser Front Page New Homes experien
Slide 9: Growing beyond property advertising: Lifestyle & Content
Growing beyond property advertising Lifestyle and Financial Services Lifestyle & Content For personal use only realestate.com.au is Australia’s #1 producer and publisher of original property video content online Over 11.8m Visits since launch 1 New videos every 120 month 2 Growth in Lifestyle & +49%
Slide 10: Growing beyond property advertising: Financial Services
Growing beyond property advertising Lifestyle and Financial Services Financial Services For personal use only Australian-first experience on realestate.com.au, integrating property search and finance Search Total calculator Over 5.3m engagements1 Find Finance Over 150,000 Personal financial profiles
Slide 11: Global network
Global Global network For personal use only 11
Slide 12: Building a strong international business
Global Building a strong international business For personal use only Global strategy to focus on Asia provides long-term revenue and growth opportunity • New websites and apps across all consumer brands 1 • Number one in Malaysia • More than 2x the visits to the 1 nearest competitor in Malaysia 2 •
Slide 13: Strategic Investments: United States Highlights
Strategic Investments Global United States Highlights For personal use only Our strategic investment in Move, Inc. continues to perform well 1 • Growth of 9% to 52m unique users 2 • Increase of 15% in unique user engagement 1 • Reported revenue grew 17% to USD$217m • Innovations such as adding new f
Slide 14: Financial Highlights
For personal use only Financial Highlights
Slide 15: Financial operating results
Financial operating results For personal use only Performance ($m) HY 2018 HY 2017 Growth Revenue ($m) (1) Revenue HY18 406.8 Australia 384.0 318.2 21% Asia 22.8 19.2 19% HY17 337.3 Total revenue 406.8 337.3 21% HY16 289.8 HY15 239.3 EBITDA(2,3) Australia 253.6 209.3 21% HY14 189.2 Asia 4.5 2.6 70%
Slide 16: Strong EBITDA results
Strong EBITDA results For personal use only Australian premium listing products deliver outstanding growth • Australian residential listing depth 1 Group EBITDA ($m) revenue growth due to success of Premier All and favourable listings 280 3.6 Keyin Melbourne & Sydney Content 0.7 Categories 260 (2.3)
Slide 17: Listing depth strategy driving revenue growth
Listing depth strategy driving revenue growth For personal use only HY 2018 Group Revenue ($m) HY 2017 Group Revenue ($m) Aus - Residential 259.8 Aus - Residential 210.3 Depth & Subs Depth & Subs Aus - Commercial & 64.4 Aus - Commercial & 61.6 Developer Depth & Subs Developer Depth & Subs 46.6 45.8
Slide 18: realestate.com.au delivers value to customers
realestate.com.au delivers value to customers For personal use only Successful take up of premium Residential Premium Listing Penetration (depth) listing products • Improved product mix and Key Content penetration driving growth Categories • Success of highest yielding listing product ‘Premiere’, pr
Slide 19: Asia results
Asia results For personal use only Investment in marketing, talent & product innovation despite challenging market conditions • Revenue and EBITDA growth due to MyFun, Thailand and Indonesia (inclusive of FX impact) • Continued investment resulted in strong audience growth $22.8m Key Content • Best
Slide 20: Financial Services launched
Financial Services launched For personal use only Helping homebuyers understand their financing options at the beginning of their property search $13.2m Key Content $5.7m Categories TOTAL REVENUE EBITDA1 • Nearly 500 brokers nationwide • Mortgage brokering offerings with more than 30 reliable lender
Slide 21: Operating results and capital expenditure
Operating results and capital expenditure For personal use only Group Operating Results Growth Group Capital Expenditure 70 25% 30% 60 20% 50 Key Content 15% % of revenue Amount ($m) 20% Categories 40 30 10% 20 10% 7% 7% 7% 7% 6% 5% 10 - 0% FY 2014 FY 2015 FY 2016 FY 2017 HY 2018 FY 2013 FY 2014 FY
Slide 22: Cash flow
Cash flow For personal use only Reduction in cash position due to funding of new investments and repayment of debt Group cash flow ($m) 900 Key Content Categories 439.0 (213.9) 700 (72.4) 500 (2.7) (75.0) (28.0) (134.0) 300 358.5 (67.3) (5.8) 198.3 100 Opening cash Receipts from Payments to Taxes Pa
Slide 23: Supplementary Information
For personal use only Supplementary Information
Slide 24: Historical Revenue and EBITDA
Historical Revenue and EBITDA For personal use only Revenue, EBITDA and Margin (core operations)1 800 60% 700 50% 671.2 600 Key Content Categories 579.1 40% 500 477.3 400 30% 394.6 406.8 381.0 300 327.8 20% 271.8 200 242.8 219.1 10% 100 0 0% FY14 FY15 FY16 FY17 HY18 EBITDA ($m) Revenue ($m) EBITDA %
Slide 25: Financial comparatives
Financial comparatives For personal use only Financial Core Operations(1) Statements HY2014 HY2015 HY2016 HY2017 HY2018 HY 2018 Group Results $m Growth $m Growth $m Growth $m Growth $m Growth $m Total Revenue 189.2 30% 239.3 26% 289.8 21% 337.3 16% 432.1 28% 432.1 Expense from franchisee com m issio
Slide 26: Cash flow reconciliation
Cash flow reconciliation For personal use only Cash flow reconciliation ($m) HY 20 18 HY 20 17 Growth EBITDA (1) 242.8 200.1 21% EBITDA discontinued ops - 1.7 n/ m Working capital movement (24.0) (12.1) n/ m Key Content Categories Net interest paid (2.7) (6.2) (56%) Income taxes paid (72.4) (48.5) 4
Slide 27: Visit our investor site at rea-group.com
For personal use only Visit our investor site at rea-group.com Media: Disclaimer: The material herein is a presentation of non- Erin Chancellor specific background information about the Company’s M: +61 411 048 474 current activities. It is information given in summary form E: erin.chancellor@rea-gr