Rea Group Ltd · ASX:REA
Rea — H1 FY2007 Earnings Presentation
41 slides from Rea's earnings presentation, Feb 28, 2007
Slide 1: The Emergence of a Global Online Real Estate Advertising Player
The Emergence of a Global Online Real Estate Advertising Player Half-Year Results Presentation realestate.com.au Ltd 28 February 2007
Slide 2: The REA Group has expanded significantly in the last 8 months
The REA Group has expanded significantly in the last 8 months Areas of operations June 2006 February 2007 Residential Property Advertising realestate.com.au allrealestate.co.nz (launched Sep 05) propertyfinder.com (acquired Nov 05} realestate.com.au property.com.au (launched Feb 07) allrealestate.co
Slide 3: The REA Group now operates in 8 countries and across four product categories
The REA Group now operates in 8 countries and across four product categories Australia New United Italy Luxembourg France Germany Belgium Zealand Kingdom Residential Property & properiytinder.cont Advertising 1 reclestate,com.cu| @} allrealestate.co.nd property news Commercial [{jrdamnercilomel] 22
Slide 4: Agenda
Agenda *« FY2007 First Half Year Performance + Residential Property Advertising - Australia - New Zealand - United Kingdom - — ttaly - Greater Luxembourg region - — International * Commercial Property Advertising - Australia - New Zealand - Greater Luxembourg region * Agent Office Solutions - Austra
Slide 5: The REA Group continues to grow on key financial metrics
The REA Group continues to grow on key financial metrics FINANCIAL PERFORMANCE OF REALESTATE.COM.AU LTD Financial Comparative Data | FY 2004 FY2004 FY 2005 FY2005 FY 2006 FY2006 FY 2007 ($ 000’s) 4stHalf-Yr_ | 2m Half-Yr_ | 1stHalf-Yr | 24 Half-Yr_| 1stHalf-Yr_ | 2-¢Half-Yr | 4stHalf-Yr Revenues 7,9
Slide 6: Revenues increased by 33% to $48.1 million over the last half-year
Revenues increased by 33% to $48.1 million over the last half-year and 95% over the previous corresponding half-year REA GROUP REVENUES In $m THY04 2HY04 THY05 2HY05 AHYO6 2HY06 1HY07 Note: Up to FY04 AGAAP, from FYOS AIFRS Does not include recent acquisitions of casa it and the atHome Group Februar
Slide 7: The Australian business delivered 83% of revenues
The Australian business delivered 83% of revenues REVENUE SPLIT BY COUNTRY FOR FIRST HALF FY 2007 AUSTRALIA Residential & Commercial Property Advertising, Agent Office Solutions Source: The REA Group February 2007 UNITED KINGDOM Residential Property Advertising NEW ZEALAND Residential & Commercial P
Slide 8: The online residential property advertising products delivered 85% of revenues
The online residential property advertising products delivered 85% of revenues REVENUE SPLIT BY BUSINESS LINE FOR THE HALF FY 2007 Online $2.9m| Commercial 9 Property (6%) Advertising Online Residential Property - Advertising $1.8m| Agent Office (4%) Solutions Agent revenues 61% Developer revenues 1
Slide 9: The REA Group increased paying agents by 13% through organic growth and acquisition
The REA Group increased paying agents by 13% through organic growth and acquisition PAYING RESIDENTIAL AND COMMERCIAL AGENTS USING REA GROUP SITES c si June December Growth for the January ouniry ite 2006 2006 half-year 2007 realestate.com.au Australia realcommercial.com.au 7,601 8,054 6% 8,113 prop
Slide 10: There are now more than 1,000,000 listings across the REA Group sites
There are now more than 1,000,000 listings across the REA Group sites LISTINGS ON REA GROUP SITES AS AT JANUARY 2007 Country Site Listings realestate.com.au 404,848 Australia reaicommercial.com.au 56,271 propertylcok.com.au 5,084 allrealestate.co.nz 29,371 NZ propertylook.co.nz 2,059 UK propertyfind
Slide 11: There are nearly 7m visitors to the REA Group sites
There are nearly 7m visitors to the REA Group of sites TOTAL UNIQUE VISITORS TO REA GROUP SITES i Total Visitors Total Visitors Growth [Country pite (Jun 08) (Jan 07) % realestate.com.au 2,810,509 3,739,934 33% Australia reaicommercial.com.au 139,117 177,184 27% propertylook.com.au 63,087 65,980. 5%
Slide 12: Agenda
Agenda « FY2007 First Half Year Performance + Residential Property Advertising - Australia - New Zealand - United Kingdom - Italy - Greater Luxembourg region - International * Commercial Property Advertising - Australia - New Zealand - Greater Luxembourg region * Agent Office Solutions - Australia -
Slide 13: Australia — realestate.com.au
Australia — realestate.com.au The clear leader in residential online advertising in Australia February 2007 REA Group - 1H¥2007 Results Presentation 13
Slide 14: Over 8,000 agents now use one of the real estate sites in Australia
Over 8,000 agents now use one of the real estate sites in Australia PAYING AGENTS USING REA, RCA OR PL 8,114 8,500 4 January 2007 8,000 4 7,500 + 7,000 4 6,500 + 6,000 + sage Acquisition of property.com.au 5,500 + 5,000 4 4,500 4 4,000 4 3,500 3,000 4 2,500 + 2,000 4 1,500 + 1,000 T T T T T T T , ,
Slide 15: An estimated 90% of Australia's 9,000 agents use REA, RCA and/or PL
An estimated 90% of Australia’s 9,000 agents use REA, RCA and/or PL MARKET SHARE OF AUSTRALIAN REAL ESTATE AGENTS ESTIMATED Organic growth in 1HY07 ~ As at 30 June 2006 Total = 9,000 residential and commercial agents (estimate) Note: REA = realestate.com.au, RCA = realcommercial.com.au, PL = propert
Slide 16: The ARPA continues to increase driven by price increase and additional products
The ARPA continues to increase driven by a combination of price increase and purchase of additional products AVERAGE REVENUE PER AUSTRALIAN AGENT (ARPA) $650 $600 LN ~~ “ Depih products include $550 $500 /~ $450 AL Feature Properties Guaranteed Top Spot Banner Advertising eBrochure Feature Agent $40
Slide 17: Unique browsers to realestate.com.au continue to grow
Unique browsers to realestate.com.au continue to grow UNIQUE BROWSERS TO TOP 2 AUSTRLALIAN PROPERTY SITES 4,000,000 realestate.com.au 3,500,000 4 Total Unique Browsers to realestate.com.au in January 2007 was 3.74 million 3,000,000 4 2,500,000 4 2,000,000 4 1,500,000 4 1,000,000 4 domain.com.au 500,
Slide 18: The gap between realestate.com.au and domain.com.au continues to grow
The gap between realestate.com.au and 2" placed domain.com.au continues to grow GAP IN UNIQUE VISITORS BETWEEN REALESTATE.COM.AU AND DOMAIN.COM.AU 1,800,000 1,600,000 1,406,000 1,200,000 1,000,000 800,000 606,000 400,000 200,000 o Jan 01 Jan 07 Source: Nielsen//NetRatings February 2007 REA Group - 1
Slide 19: Visitors to realestate.com.au look at nearly double the pages of domain.com.au
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 — JANUARY 2007 400,000,000 5 350,000,000 | 300,000,000 250,000,000 200,000,000 4 150,000,000 5 100,000,000 | 50,000,000 | Source:
Slide 20: New Zealand — allrealestate.co.nz
February 2007 New Zealand — allrealestate.co.nz From launch to being used by 644 agents in 15 months REA Group - 1HY2007 Results Presentation 20
Slide 21: Estimated 33% of New Zealand's 1,500 agents use allrealestate.co.nz
Estimated 33% of New Zealand’s 1,500 agents use allrealestate.co.nz MARKET SHARE OF NEW ZEALAND REAL ESTATE AGENTS ESTIMATED added in FY 2006 a (14% 67% NN added in FY 2007 incl. trials 19% Total = 1,500 agents (estimate) Source: The REA Group ~ includes 167 trials February 2007 REA Group - 1H¥2007
Slide 22: allrealestate.co.nz has moved into equal second place
In 15 months, allrealestate.co.nz has moved into equal 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 600,000. $00,000. 400,000 300,000 200,000 166,000 trademe.co.nz Trademe combined For Sale and] For Renttraffic in
Slide 23: United Kingdom — propertyfinder.com & London Property News
United Kingdom — propertyfinder.com & London Property News Great progress in first 15 months of operation February 2007 REA Group - 1H¥2007 Results Presentation 23
Slide 24: There has been a strong growth in propertyfinder.com during the last 15 months
There has been a strong growth in propertyfinder.com during the last 15 months GROWTH OF PROPERTYFINDER.COM October 2005 January 2007 Growth 2006 Residential Agents 1,976 3,408 72% Listings n/a 288,670 n/a Revenues (GBP)* 221,236 418,362 89% UB’s 725,502 1,883,401 160% * = excludes London Property N
Slide 25: Estimated 29% of the UK's 13,500 agents use propertyfinder.com
Estimated 29% of the UK’s 13,500 agents use propertyfinder.com MARKET SHARE OF UK REAL ESTATE AGENTS USING PROPERTYFINDER Acquired in Nov 2005 15% Added between Nov 05 and Jun 2006 71% 6% Added between Jul 06 and Dec 2006 (incl. trials) 8% Total = 13,500 agents (estimate) Source: The REA Group ~ Inc
Slide 26: Propertyfinder has moved into second place in the UK market
Propertyfinder has moved into second place in the UK market UK UNIQUE VISITORS TO TOP 4 UK PROPERTY SITES — EXCLUDES INTERNATIONAL VISITORS 4,000 5 ween Rightmove —FindaProperty —— PropertyFinder owe PrimeLocation 3800 4 3000 | ina aN 2.500 4 ‘ on ceopssese 2000 | Sf — NY propertyfinder is #2 4500 4
Slide 27: The London Property News magazine group was purchased to enhance traffic
The London Property News magazine group was purchased to enhance traffic to propertyfinder.com LONDON PROPERTY NEWS (now PROPERTYFINDER PUBLISHING) A leading property magazine group in London and Surrey 5 monihly titles * 300,000 circulation * £2.5 million in annual revenues + Break even business +
Slide 28: casa.it — The Leader in the Italian Market
February 2007 casa.it The Leader in the Italian Market REA Group - 1HY2007 Results Presentation 28
Slide 29: The REA Group formally took ownership of the number 1 site in Italy
On 8 February, the REA Group formally took ownership of the number 1 site in Italy ITALY - www.casa.it + 2,900 agents advertising * 726,297 unique visitors (JanQ7) * 30 staff across 2 offices in Treviso (Italy) and Bucharest (Romania) * Most popular site in Italy « Break even / profitable business *
Slide 30: atHome Group — Strong growth in the Great Luxembourg region
February 2007 atHome Group Strong growth in the Great Luxembourg region REA Group - 1HY2007 Results Presentation 30
Slide 31: The atHome Group serves the Greater Luxembourg region
The atHome Group serves the Greater Luxembourg region AREAS OF OPERATION OF THE AT HOME GROUP Greater Luxembourg Region + Consists of Luxembourg, Southern Belgium (Wallonie), Eastern France (Lorraine), Western Germany (Rheinland Pfalz) * Strong cross border traffic * Total population: 11.2m people *
Slide 32: The atHome group is a good platform to grow new European markets
The atHome group is a good platform to grow new European markets AREAS OF OPERATION OF THE AT HOME GROUP RUIRALAND Hake More than 500 agents advertise on the sites of the atHome group ~100,000 visitors across the sites 20 staff Break even business Revenue growth 40% Source: NetRatings February 2007
Slide 33: International
February 2007 International REA Group - 1HY2007 Results Presentation 33
Slide 34: The REA Group is building an International sales and marketing team
The REA Group is building an International sales and marketing team INTERNATIONAL The International team focuses on markets where the REA Group does not have a dedicated website ee et eos Property of.the week. International property search the ie a £99,000 (approx. £148,500} isnatid aaa ovwolkennaee
Slide 35: Agenda
Agenda « FY2007 First Half-Year Performance + Residential Property Advertising - Ausiralia - New Zealand - United Kingdom - italy - Greater Luxembourg region - _ International * Commercial Property Advertising - Australia - New Zealand - Greater Luxembourg region * Agent Office Solutions - Australia
Slide 36: realcommercial.com.au and propertylook.com.au are the top commercial real estate sites in Australia
realcommercial.com.au and propertylook.com.au are the top 2 commercial real estate sites in Australia UNIQUE AUSTRALIAN BROWSERS TO COMMERCIAL REAL ESTATE SITES 460,000 realcommercial.com.au 140,000 420,000 100,000 80.000 propertylook.com.au 60,000 (Purchased May 06) 4,000 20,000 ers aS = commercial
Slide 37: realcommercial.com.au and propertylook are being merged and a new site launched in New Zealand
realcommercial.com.au and propertylook are being merged and a new site is being launched in New Zealand MERGER OF REALCOMMERCIAL.COM.AU AND PROPERTYLOOK realcommercial.com.au * realcommercial.com.au and propertylook * Commenced 12/02 are being merged to create an improved + Market leader online offe
Slide 38: The atOffice business provides a platform to explore commercial property advertising in Europe
The atOffice business provides a good platform to explore commercial properties advertising in Europe ATOFFICE.LU (LUXEMBOURG) + Market leader in commercial listings in Luxembourg GD recersseraree + 800+ listings A ke: omeecamonine: ane 5 — February 2007 REA Group - 1HY2007 Results Presentation 38
Slide 39: Agenda
Agenda « FY2007 First Half-Year Performance « Residential Property Advertising - Australia - New Zealand - United Kingdom - Italy - Greater Luxembourg region - — International * Commercial Property Advertising - Australia - New Zealand - Greater Luxembourg region + Agent Office Solutions - Australia
Slide 40: 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 February 2007 Hubonline * Acquired in May 2006 * Web based sales management software KS HubOnline a realestata.com.au conmpany « Market leader *
Slide 41: 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
realestate.com.au Ltd (REA Group) — H1 FY2007 Earnings Presentation on 6ix