Rea Group Ltd · ASX:REA
Rea — Shareholder Meeting (November 2021)
47 slides from Rea's shareholder meeting presentation, Nov 11, 2021
Slide 1: REA Group 2021 Annual General Meeting
ASX Announcement 11 November 2021 REA Group 2021 Annual General Meeting For personal use only This meeting will be webcast at https://agmlive.link/REA21 Please see attached the addresses and presentation to be delivered by REA Group’s Chairman and CEO at this morning’s Annual General Meeting. For fu
Slide 2: Chairman's Address
Chairman’s Address Hamish McLennan, Chairman, Introduction Good morning. I’m Hamish McLennan, Chairman of REA Group Ltd, and on behalf of the Board I’m For personal use only delighted to welcome you to our 2021 Annual General Meeting. Our Company Secretary, Tamara Kayser informs me that a quorum is
Slide 3: Chairman's Address: Board, Agenda and Highlights
Where we have received multiple questions on the same topic, these may be combined. All questions will be addressed to me as Chairman. I will direct questions to other directors, management or to the auditors as appropriate. Questions relating to customer, consumer or personal shareholder matters wo
Slide 4: Chairman's Address: Dividends and Pivotal Transactions
position and balance sheet underpinned the Board’s decision to declare total dividends per share of 131 cents for the year, up 19% YoY, while earnings per share were 247 cents, up 21% YoY. Importantly, REA maintained its strong operating EBITDA margin of an impressive 60%. Pivotal transactions accel
Slide 5: Chairman's Address: Board Changes and Outlook
by Kathleen’s departure. Kelly brings a wealth of experience to our board including an excellent track record of driving innovation at scale, while growing and operating large global businesses. REA has strong foundations, a clear purpose and an exciting growth strategy, all of which point to a rewa
Slide 6: CEO's Address
CEO’s Address Owen Wilson, Chief Executive Officer, Operational overview Thank-you Hamish and good morning everyone. For personal use only The 2021 financial year has been a defining period for REA, successfully navigating the pandemic to deliver an excellent financial result and emerge an even stro
Slide 7: CEO's Address: Products and Data Insights
YoY 12. We also saw a 67% YoY increase in the number of seller leads 13, connecting our customers with more prospective vendors. We continued to launch new products and features to ensure we’re meeting the ever-changing needs of our customers and consumers. This year we unveiled Connect, a suite of
Slide 8: CEO's Address: Expanding Global Footprint
Expanding global footprint When looking at REA’s global footprint, a number of significant developments occurred through 2021, as Hamish alluded to earlier. For personal use only In December we completed the transaction to acquire a controlling interest Elara 18 which was subsequently rebranded to R
Slide 9: CEO's Address: Current Trading and Sustainability
Current trading Turning briefly to current trading. With COVID restrictions now being lifted in Sydney and Melbourne, and clear roadmaps out of lockdown announced, our market is returning to a more COVID-normal state. For personal use only Current residential market conditions remain strong. Conditi
Slide 10: References
References 1 Financial results from core operations exclude significant non-recurring items such as restructure costs, gain/loss on acquisitions and disposals, related transaction costs, integration costs, and historic tax provision (historic indirect tax provision reflects potential retrospective c
Slide 11: REA Group Ltd Annual General Meeting
REA Group Ltd Annual General Meeting For personal use only 11 November 2021 9.00am (AEDT)
Slide 12: Introduction
For personal use only Introduction Hamish McLennan Chairman REA Group Ltd • Annual General Meeting 11 November 2021
Slide 13: How to vote
How to vote For personal use only 1 2 3 Click on Get a Voting Card Enter your Securityholder Fill out your voting card on the top and bottom of number or employee number & for each item of business your screen. postcode or Proxy number and and click Submit Partial click Submit Details & Vote Vote or
Slide 14: How to ask questions
How to ask questions For personal use only 1 2 2 Online: Click on Ask a Telephone*: Please advise Online: Select an item of Question the moderator if your business from the drop-down on the top and bottom of question relates to an item of menu and type your question your screen. business or General
Slide 15: REA Group Board of Directors
REA Group Board of Directors For personal use only Hamish McLennan Owen Wilson Kathleen Conlon Nick Dowling Chairman Chief Executive Officer Independent Independent Non-executive Director Executive Director Non-executive Director Non-executive Director Tracey Fellows Richard Freudenstein Michael Mil
Slide 16: Agenda
Agenda For personal use only 1. 2. 3. 4. 5. Business Operational Q1 FY22 Items of Q&A highlights overview update business
Slide 17: Business highlights
For personal use only Business highlights Hamish McLennan Chairman REA Group Ltd • Annual General Meeting 11 November 2021
Slide 18: Strong financial track record
Strong financial track record For personal use only Revenue1 Core EBITDA2, 3 Core net profit3 $928m $565m $318m +13% +19% +18% $565m $928m $318m $875m $295m $501m $820m $808m $280m $476m $464m $269m $671m $228m $381m FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 (1) Reve
Slide 19: Excellent FY21 results delivered
Excellent FY21 results delivered For personal use only FY21 return on average FY21 core operating FY21 cash closing shareholders equity1 EBITDA Margin1, 2, 3 position4 32% 60% $169m FY21 earnings per FY21 dividend per Share price5 share1 share 247cents 131cents $168.97 +21% YoY +19% YoY +22% YoY (1)
Slide 20: Pivotal transactions accelerate REA's strategy
Pivotal transactions accelerate REA’s strategy For personal use only Moved to controlling 59.7% stake in Elara1 Announced transfer of Malaysia and Thailand operations3 in exchange for 18% stake4 Acquired 100%5 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21 Jul 21
Slide 21: Share price growth
Share price growth1 REA Group current market cap $22.3bn2 For personal use only 300 250 200 Relative Share Price 150 100 50 - Nov 2017 Nov 2018 Nov 2019 Nov 2020 Nov 2021 REA Group Limited ASX 100 (1) REA Group share price for the period 1 Nov 2017 – 9 Nov 2021. (2) Market cap as at 9 Nov 2021.
Slide 22: Operational overview
For personal use only Operational overview Owen Wilson Chief Executive Officer REA Group Ltd • Annual General Meeting 11 November 2021
Slide 23: Strategy supporting ongoing growth
Strategy supporting ongoing growth For personal use only Largest audiences, Our global network: most engaged consumers Australia India / Asia Building the next generation marketplaces Superior Unparalleled customer value data insights North America
Slide 24: realestate.com.au extends audience leadership
realestate.com.au extends audience For personal use only +35%5 leadership Monthly visits 3.3x more visits than the 121m FY21 average monthly 4 72m 76m 90m 121m traffic to realestate.com.au FY18 FY19 FY20 FY21 nearest competitor1 on all platforms Reaching over 12.6m people on +49%7 average each month
Slide 25: Australia's 7th largest online brand
Australia’s 7th largest online brand For personal use only Unique Rank Brand Audience Top 10 1 Google 20.5m Online Brands 2 Facebook 17.8m September 20211 3 MSN/Outlook/Bing/Skype 15.2m 4 Microsoft 14.3m 5 Instagram 14.0m 6 ABC Online Network 13.1m 7 Realestate.com.au 12.5m Reaching over 60% 8 eBay
Slide 26: Empowering consumers and driving customer leads
Empowering consumers and driving customer leads For personal use only Delivering personalised Supporting Agents and experiences to empower Agencies throughout the consumers throughout the property lifecycle with property journey superior customer value Growing, highly engaged Providing agents and ag
Slide 27: Unparalleled data and insights
Unparalleled data and insights For personal use only Powering competitive advantage through rich property data and insights • Providing customers and consumers with unique combination of property insights and valuation technologies • PropTrack Economics team comprises market experts, data scientists
Slide 28: Next generation marketplaces
Next generation marketplaces For personal use only Accelerating financial services strategy • Mortgage Choice acquisition enhances REA’s exposure to $400+bn home loan market1 • #2 retail mortgage broking leadership position2 • 945 brokers and 40+ lenders3 Helping Australians finance property • Partn
Slide 29: Expanding global footprint
Expanding global footprint Expanding global For personal use only Increasing exposure in India footprint • Delivered local currency revenue growth of 23% • Elara rebranded to REA India in September 2021 • Housing.com audience growth up 92% YoY1 PropertyGuru transaction completed • PropertyGuru #1 in
Slide 30: Q1 FY22 financial results
Q1 FY22 financial results For personal use only Revenue1 Core operating expenses3 Core EBITDA3, 4 $264m $107m $158m +35% +49% +25% +22% excl. acquisitions2 +13% excl. acquisitions2 +24% excl. acquisitions2 (1) Revenue – refer to glossary for definition. (2) YoY growth excludes REA India (formerly kn
Slide 31: Australia's #1 address in property
Australia’s #1 address in property1 For personal use only Record visits in October2 Total visits3 Unique audience4 App launches6 145.5m 129m Average monthly traffic 12.6m Average monthly unique 58.5m Average monthly launches of to realestate.com.au audience to realestate.com.au realestate.com.au app
Slide 32: Current trading
Current trading For personal use only • Current residential property market conditions remain strong • Highest ever visits to realestate.com.au, reaching 145.5 million1 in October and record buyer enquiries, up 49% YoY • Australian Residential Buy listings were up 11% in Q1 and 16% in October • YoY
Slide 33: Supporting a sustainable future
Supporting a sustainable For personal use only future Creating positive change through responsible business practices Environment Social Governance Strong progress made on Australia’s 4th Best Workplace Focus on data protection, ESG initiatives by Great Place to Work privacy and security Achieved Cl
Slide 34: REA Group Executive Leadership Team
REA Group Executive Leadership Team For personal use only Owen Wilson Janelle Hopkins Henry Ruiz Val Brown Melina Cruickshank Chief Executive Officer Chief Financial Officer Chief Strategy & Chief Consumer Chief Audience & Executive Director CEO Financial Services Customer Product Officer Product Of
Slide 35: Items of business
For personal use only Items of business Hamish McLennan Chairman REA Group Ltd • Annual General Meeting 11 November 2021
Slide 36: Items of business
Items of business For personal use only 1. 2. 3. 4. 5. 6. 7. Consideration Adoption of Re-election Grant of Amendments Giving of Increase in of Reports Remuneration and Election Performance to the Financial Directors’ Report of Directors Rights to CEO Constitution Assistance Fee Pool
Slide 37: Consideration of Reports
Item 1 Consideration of Reports For personal use only To receive and consider the Company’s Financial Report, including the Financial Statements, and the reports of the Directors and Auditor for the year ended 30 June 2021. There is no vote for this item An explanatory note to this item appears on p
Slide 38: Remuneration Report
Item 2 Remuneration Report For personal use only To consider and, if thought fit, pass the following resolution as an ordinary resolution: That the Remuneration Report for the year ended 30 June 2021 be adopted. For Open Usable Against Abstain Direct and Proxy Votes 115,642,734 63,374 2,631,475 70,1
Slide 39: Election of Jennifer Lambert
Item 3a Election of Jennifer Lambert For personal use only To consider and, if thought fit, pass the following resolution as an ordinary resolution: That Jennifer Lambert, having been appointed as a Director of the Company since the last Annual General Meeting, and being eligible, be elected as a Di
Slide 40: Re-election of Hamish McLennan
Item 3b Re-election of Hamish McLennan For personal use only To consider and, if thought fit, pass the following resolution as an ordinary resolution: That Hamish McLennan, who retires in accordance with the Company’s Constitution, and being eligible, be re-elected as a Director of the Company. For
Slide 41: Grant of Performance Rights to Owen Wilson
Items 4a and 4b Grant of Performance Rights to Owen Wilson For personal use only To consider and, if thought fit, pass the following as separate ordinary resolutions: Item 4a) That approval be given for all purposes for the grant of 2,660 additional performance rights under the 2023 REA Group long-t
Slide 42: Amendments to the Constitution
Items 5a and 5b Amendments to the Constitution For personal use only To consider and, if thought fit, pass the following as separate special resolutions: Item 5a): That the Constitution of the Company be amended as set out in the document tabled at the 2021 Annual General Meeting signed by the Chair
Slide 43: Financial Assistance
Item 6 Financial Assistance For personal use only To consider and, if thought fit, pass the following resolution as a special resolution: That: (i) the Company approves for all purposes, including section 260B(2) of the Corporations Act 2001 (Cth) (Corporations Act), the giving of financial assistan
Slide 44: Increase in Non-executive Directors' Fee Pool
Item 7 Increase in Non-executive Directors’ Fee Pool For personal use only To consider and, if thought fit, pass the following resolution as an ordinary resolution: That, in accordance with rule 7.3(a) of the Company Constitution and Listing Rule 10.17, the maximum aggregate Directors’ fees payable
Slide 45: Q&A
For personal use only Q&A REA Group Ltd • Annual General Meeting 11 November 2021
Slide 46: Glossary
Glossary For personal use only EBITDA Earnings before Interest, Tax, Depreciation and Amortisation including share of associates and joint ventures. Financial results Reported results adjusted for significant non-recurring items such as from core restructure costs, gain/loss on acquisitions and disp
Slide 47: Visit our investor site at rea-group.com
Visit our investor site at For personal use only rea-group.com Investors: Graham Curtin General Manager Group Finance P: +61 3 8456 4288 Disclaimer: This presentation contains non-specific background information E: ir@rea-group.com about REA Group’s current activities. This information is a summary