Rea Group Ltd · ASX:REA
Rea — FY2006 Earnings Presentation
34 slides from Rea's earnings presentation, Aug 31, 2006
Slide 1: The Emergence of a Global Online Real Estate Advertising Player
(@) realestate.com.au The Emergence of a Global Online Real Estate Advertising Player FY 2006 Results Presentation 31 August 2006
Slide 2: The REA Group operates businesses across 3 countries
The REA Group operates businesses across 3 countries Australia New Zealand United Kingdom Residential & propertylinder.coni Property @ realestate.com.au_ | @) allrealestate.co.nz senien Advertising property news ; €) realcommercial.com.au Commercial ; Property 2? Prowert it Propert Advertising By Pr
Slide 3: realestate.com.au expanded significantly in FY 2006
realestate.com.au expanded significantly in FY 2006 June 2005 June 2006 realestate.com.au Residential allrealestate.co.nz (launched 09/05) Property realestate.com.au rtytind 11/05 Advertising propertyfinder.com (acq. ) London Property News (to be acq.) Commercial realcommercial.com.au Property realc
Slide 4: Agenda
Agenda Overall FY 2006 performance Residential Property Advertising - Australia - New Zealand - United Kingdom Commercial Property Advertising - Australia Agent Office Solutions August 2006 FY 2006 Results Presentation
Slide 5: realestate.com.au Ltd increased all key financial metrics in FY 2006
realestate.com.au Ltd increased all key financial metrics in FY 2006 FINANCIAL PERFORAMANCE OF REALESTATE.COM.AU LTD FYO5 in $ 000's FY02 FY03 FyO4 Revenue 5,927 9,540 19,145 33,624 Operating Expenses -6 734 -8 343 -16, 278 -26, 953 Depreciation & Amortisation -5,098 -2,689 -369 -1,054 Gross Profit
Slide 6: Gross profit increased by 134% to $13.1 million
Gross profit increased by 134% to $13.1 million REA GROUP GROSS PROFIT Australian $m 15 10 +19 L---------------------------------------------------------------------------------- Note: Excludes takeover defence costs of $1.6m for FY08 Up to FYO4 AGAAP, from FY05 AIFRS August 2006 FY 2006 Results Pre
Slide 7: Revenues increased by 81% to $60.9 million
Revenues increased by 81% to $60.9 million REA GROUP REVENUES Australian $m Fyos Note: Up to FY04 AGAAP, from FY05 AIFRS August 2006 FY 2006 Results Presentation
Slide 8: The A/NZ property advertising businesses delivered 87% of revenues
The A/NZ property advertising businesses delivered 87% of revenues REVENUE SPLIT BY BUSINESS Residential Property Advertising (UK) Residential & Commercial @ propertyfinder.com roperty Advertising ( Bloperty news) {Aust / NZ) From Sep06 @® realestate. com.au © ollrealestate.co.nz Agent Office Soluti
Slide 9: The REA Group increased paying agents by 67% through organic growth and acquisition
The REA Group increased paying agents by 67% through organic growth and acquisition PAYING RESIDENTIAL AND COMMERCIAL AGENTS USING REA GROUP SITES Country Site June 2005 June 2006 realestate.com.au Australia realcommercial.com.au 6,414 7,601 propertylook.com.au allrealestate.co.nz Né propertylook.co
Slide 10: There are almost 700,000 listings across the REA Group sites
There are almost 700,000 listings across the REA Group sites LISTINGS ON REA GROUP SITES AS AT JULY 2006 Country Site Listings realestate.com.au 363,743 Australia realcommercial.com.au 49,766 propertylook.com.au 5,802 NZ allrealestate.co.nz 29,149 propertylook.co.nz 914 UK propertyfinder.com 196,093
Slide 11: FY 2006 saw significant growth in unique visitors
FY 2006 saw significant growth in unique visitors through both organic growth and acquisition TOTAL UNIQUE VISITORS TO REA GROUP SITES Country Site Total Visitors Total Visitors Growth (Jun 05) (Jun 06) % realestate.com.au 1,736,910 2,810,509 62% Australia realcommercial.com.au 85,377 139,117 63% pr
Slide 12: Agenda
Agenda Overall FY 2006 performance Residential Property Advertising - Australia - New Zealand - United Kingdom Commercial Property Advertising - Australia Agent Office Solutions August 2006 FY 2006 Results Presentation 12
Slide 13: Australia — realestate.com.au
Australia — realestate.com.au The clear leader in residential online advertising in Australia August 2006 FY 2006 Results Presentation 13
Slide 14: There has been consistent year on year growth in paying agents
There has been consistent year on year growth in paying agents PAYING AGENTS USING REA, RCA OR PF 7,684 8000 5 Julyo6 7500 4 7000 6500 { 6000 + 5500 J Acquisition of 5000 J property.com.au 4500 4 4000 4 3500 4 3000 4 2500 + 2000 + 1500 4 1000 ee a a ee Sr a ae a PR Og FO gt WF tO gt FF Source: The R
Slide 15: An estimated 90% of Australia's 8,500 agents use REA, RCA and/or PL
An estimated 90% of Australia’s 8,500 agents use REA, RCA and/or PL MARKET SHARE OF AUSTRALIAN REAL ESTATE AGENTS ESTIMATED 10% Added in FY 2006 14% 16% \ As at 30 June 05 Note: REA = realestate.com.au, RCA = realcommercial.com.au, PL = propertylook.com.au August 2006 FY 2006 Results Presentation 15
Slide 16: The average revenue per agent continues to increase
The average revenue per agent continues to increase driven by a combination of price increase and purchase of additional products AVERAGE REVENUE PER AUSTRALIAN AGENT $600 $500 $400 ———— Depth products include $300 « Feature Properties * Guaranteed Top Spot $200 * Banner Advertising « eBrochure $100
Slide 17: Unique browsers to realestate.com.au continue to grow
Unique browsers to realestate.com.au continue to grow AUSTRALIAN UNIQUE BROWSERS TO TOP 2 AUSTRLALIAN PROPERTY SITES 3,000,000 9 Total Unique Browsers to realestate.com.au realestate.com.au in July 2006 was 2.96 million 2,500,000 4 2,000,000 4 1,500,000 4 1,000,000 4 500,000 | domain.com.au Source:
Slide 18: The gap between realestate.com.au and domain.com.au continues to grow
The gap between realestate.com.au and domain.com.au continues to grow GAP IN UNIQUE VISITORS BETWEEN REALESTATE.COM.AU AND DOMAIN.COM.AU 1,400,000 1,200,000 1,000,000 800,000 600,000 406,000 200,000 o Jan 01 July 06 Source: Nielsen//NeiRatings August 2006 FY 2006 Results Presentation 18
Slide 19: 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 COMPARISON OF PAGE IMPRESSIONS TO TOP 2 PROPERTY SITES 300,000,000 321 million 250,000,000 200,000,000 150,000,000 100,000,000 92 million 50,000,000 realestate.comau domaincomau Source:
Slide 20: New Zealand — allrealestate.co.nz
August 2006 New Zealand — allrealestate.co.nz From launch to #2 in 9 months FY 2006 Results Presentation 20
Slide 21: Estimated 24% of New Zealand's 1,500 agents use allrealestate.co.nz
Estimated 24% of New Zealand’s 1,500 agents use allrealestate.co.nz MARKET SHARE OF NEW ZEALAND REAL ESTATE AGENTS ESTIMATED Added in FY 2006 —_— 16% Source: The REA Group August 2006 FY 2006 Results Presentation 21
Slide 22: allrealestate has the second largest database of listings
On a comparative basis, allrealestate.com.au has the second largest database of listings LISTINGS ON TOP 3 PROPERTY PORTALS IN NEW ZEALAND AS AT JULY 2006 ~76,000 29,149 ~26,000 TradeMe allrealestate.co.nz realestate.co.nz (formerly realenz.co.nz) Sources: TradeMe and realestate.co.nz (Sunday Siar T
Slide 23: allrealestate.co.nz has moved into second place
In 9 months, allrealestate.co.nz has moved into second place but still has fair way to go to close gap with market leader trademe.co.nz TOTAL UNIQUE BROWSERS TO NEW ZEALAND SITES Grovth of allrealestate.conz trademe.co.nz “Tracleme combined For 400,000 5 Sale and For Renttrafic in Merch 2006 allreal
Slide 24: United Kingdom — propertyfinder.com & London Property News
United Kingdom — propertyfinder.com & London Property News Great progress in first 8 months of operation August 2006 FY 2006 Results Presentation 24
Slide 25: Estimated 21% of the UK's 13,500 agents use propertyfinder.com
Estimated 21% of the UK’s 13,500 agents use propertyfinder.com —a growth of 6 percentage points in 8 months MARKET SHARE OF UNITED KINGDOM REAL ESTATE AGENTS ESTIMATED Acquired in Nov 05 Added since Nov 05 Source: The REA Group August 2006 FY 2006 Results Presentation 25
Slide 26: Strong growth in agents using propertyfinder.com
There has been a strong growth in agents using propertyfinder.com AGENTS USING PROPERTYFINDER.COM 53 October 2005 June 2006 Growth Residential Agents 1,976 2,786 41% Developers 13 14 8% International Agents 121 128% Source: The REA Group August 2006 FY 2006 Results Presentation
Slide 27: Propertyfinder is increasing traffic to the site in the UK
Propertyfinder is increasing traffic to the site in the UK UK UNIQUE VISITORS TO TOP 4 UK PROPERTY SITES — EXCLUDES INTERNATIONAL VISITORS Rightmove sap. tga 25D. 20D count FindAProperty 1D. Propertyfinder 1.c8D. nae —— . Ze so a PrimeLocation sD. ae oO. FaiscS MECB ACB NCS UUnCS ICS AGCS GpcS GCS N
Slide 28: The London Property News magazine group was purchased
The London Property News magazine group was purchased to enhance traffic to the propertyfinder.com site LONDON PROPERTY NEW ACQUISTION A leading property magazine group in London * 6 monthly titles 3 weekly titles + ~430,000 circulation * £3 million in annual revenues + Break even business * Will be
Slide 29: Agenda
Agenda Overall FY 2006 performance Residential Property Advertising - Australia - New Zealand - United Kingdom Commercial Property Advertising - Australia Agent Office Solutions August 2006 FY 2006 Results Presentation 29
Slide 30: realcommercial.com.au and propertylook.com.au are the top commercial real estate sites
realcommercial.com.au and propertylook.com.au are the top 2 commercial real estate sites UNIQUE AUSTRALIAN BROWSERS TO COMMERCIAL REAL ESTATE SITES 460,000 realcommercial.com.au 140,000 420,000 100,000 20,000 propertylook.com.au 60,000 (Purchased May 06) 4,000 20,000 aha? “nd . aaa commercialrealest
Slide 31: realcommercial.com.au and propertylook are being merged
realcommercial.com.au and propertylook are being merged MERGER OF REALCOMMERCIAL.COM.AU AND PROPERTYLOOK realcommercial.com.au * Commenced 12/02 * Market leader * 700+ agents subscribing realcommercial.com.au , and propertylook are being Propertylook merged to create an + Acquired May 2006 improved
Slide 32: Agenda
Agenda Overall FY 2006 performance Residential Property Advertising - Australia - New Zealand - United Kingdom Commercial Property Advertising - Australia Agent Office Solutions August 2006 FY 2006 Results Presentation 32
Slide 33: Hubonline and web design services are being merged
Hubonline and web design services are being merged to provide a complete end to end office solution for agents MERGER OF HUBONLINE AND WEB DESIGN SERVICES Hubonline Acquired May 2006 Web based sales management software Market leader Primarily Australia with some NZ offices ~400 offices paying $1.5 m
Slide 34: Disclaimer
Disclaimer 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. This material is not