REA Group Ltd · ASX:REA
REA — Investor Presentation (September 2024)
56 slides from REA's investor presentation, Sep 23, 2024
Slide 1: REA Group Overview
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by REA Group Ltd ABN 54 068 349 066 ("REA") solely for information and contains general information about REA and its subsidiaries ("REA Group") nd its activities as at the date of this presentation. This information isin summary form only and does not
Slide 3: Company Overview, Strategy, Financial Performance
Company Overview REA Group Strategy 6 Financial Performance * Fore
Slide 4: 01 Company Overview
Slide 5: REA is the leading digital real estate advertising business in Australia
REA is the leading digital real estate advertising business in Australia Business overview ® REA Group * Started in a garage in Melbourne in 1995, REA Group Ltd (REA) is Australia’s leading digital property advertising business + REA operates the #1 residential and commercial property classifieds we
Slide 6: REA is a global business, operating across continents
REA is a global business, operating across 3 continents, driving revenue from residential advertising and adjacencies REA’s geographic footprint x, realtor.cony 20% B 3 continents % ownership stake QREAIndia 1,553 employees? 78% @realestate.com.au @ realcommercialcom.au 1,741 employees? $m $1,600 $1
Slide 7: REA has a strong growth mindset and consistent strategic investment
REA has a strong growth mindset and has demonstrated consistent strategic investment FYO0O FYO5 FY10 FY15 FY20 FY24 Consumer Experiences == Customer Cust Val Ley = Ignite ustomer Value rnp Seamer REALTAIR © seve) Property Data @Provtack GAreciyties Financial Servi <evotage Choice inancial Services D
Slide 8: REA has significant opportunities across large addressable markets
REA has significant opportunities across large addressable markets Total addressable markets! Customer Property Financial Global Value Data Services North America® Residential Commercial, Agent Insights Lender Advertising? Developer Services and Data® Commission and Media Advertising? $3b Total com
Slide 9: Australia is an attractive and growing market
Australia is an attractive and growing market Australia overview 27m Population! ] | m Residential houses? 2% 2025 real GDP Os "growth projection? ~ 66% Proportion of owners © srenters)4 Property market dynamics Total value of residential housing ($tn)® continues to grow in Australia 12 10 8 CAGR: +
Slide 10: Australian residential property market growth is supported by stable volumes and rising prices
Australian residential property market growth is supported by stable volumes and rising property prices New listing volumes have stabilised New Listings (Quarterly)! Po Po pI SA ODM HY YH A YB PD HM bm bm SP PP SP GF OAH SM SY A SSP MO FFF FH HF PF HT SF ST HT PT FT SH ST PT Ss" The number of reside
Slide 11: $23 4.00 $18 4.00 $13 4.00 $84 .00 $34 .00 -$16.00 (0)
2 $23 4.00 1 $18 4.00 1 1 $13 4.00 1 $84 .00 1 0 $34 .00 0 -$16.00 (0)
Slide 12: REA is Australia's leading digital property advertising business
REA is Australia’s leading digital property advertising business Average monthly unique audience "(4) ED @ realcommercial.com.au ailhomes Qonttehouse Commercial RealEstate @homely @® REA Group $1,453m 23% YoY FY24 Revenue? $825m -27% Yor FY24 EBITDA 2 57% FY24 EBITDA Margin? 127.2m Total average mon
Slide 13: 02 REA Group Strategy
Q2 REA Group Strategy
Slide 14: We have a clear set of strategic priorities
We have aclear set of strategic priorities Largest audiences, most engaged consumers Building the next generation marketplaces Superior customer value Unparalleled data insights Consumer Experiences Engage Australia’s largest audience of property seekers, driving more leads to customers. Customer Va
Slide 15: We have achieved significant milestones in FY24
We have achieved significant milestones in FY24 Consumer highlights unique audience 1) ] 0.8 m @ realestate.com.au Australia’s #1 address in property'® Highly engaged and loyal audience with 4.1x more visits than nearest competitor in H2"°) 60m average monthly visits to app Mobile-prime experiences
Slide 16: Audience and Consumer Experiences
Audience and Consumer Experiences Ambition: To be the lifelong property companion that makes property dreams reality
Slide 17: Engaging our audience with personalised experiences and high value leads
We are engaging our audience with personalised experiences and delivering high value leads data & insights Continue to invest in our market leading brand and build brand trust and preference. Evolve our world class search Unparalleled (¥) Trusted brand & market leading audience Trusted, Market Leadi
Slide 18: Australia's #1 address in property, extending our leadership
We are Australia’s #1 address in property, extending our leadership @realestate.com.au . realestate.com.au extends unique audience lead) [oeKe) 22Q [7 @ oo00 @ CVYVYN Gap 10.8m 127.2m 60m Average monthly Total average Total average realestate.com.au monthly visits to monthly visits to unique audienc
Slide 19: Personalised consumer experiences, underpinned by membership
Personalised consumer experiences, underpinned by membership, drive deep consumer engagement resulting in more leads Personalised experiences driving strong consumer engagement < MyProperty 24 Saka Street * lin 3 Australian properties tracked by their owner on realestate.com.au! * +1 million propert
Slide 20: Customer Value
Customer Value Ambition: To deliver the best products and services that help customers succeed
Slide 21: Our customer strategy is built on providing superior value
Our customer strategy is built on providing superior value Campaign Agent = Property Advertising Offering customers a comprehensive and flexible set of high-performing solutions which target Australia's largest property seeking audience We target double-digit yield growth through the cycle f% Agency
Slide 22: Integrated end-to-end agency solutions deliver superior customer value
Our integrated end-to-end agency solutions delivers superior customer value Agency Marketplace ‘Comparative market analysis Available wit Bam © Propirack —__— a Digital presentations femme REALTAIR Digital authority Property Advertising Depth products eet iS) Payment flexibility Po by Campaign Agent
Slide 23: Broad suite of products to advertise properties and build brands
@realestate.com.au We offer a broad suite of products to advertise properties and to help customers build their own brand Promote Listings and Developments Promote Customers Portal Listing & Depth On-Portal Add-ons Off-Portal Advertising On-Portal Branding Advertising Luxe, Property Showcase, Native
Slide 24: Our advertising depth ladder delivers increasing performance
@realestate.com.au Our advertising ‘depth ladder’ delivers increasing performance 1$100000-$650000 tt $420.000 - 00.000 Premiere Highlight Feature Standard Tier positioning in results #1 #2 #3 #4 Property image /carousel Large Medium ‘Small ‘Small Agency branding strip Large Medium ‘Small Rotation I
Slide 25: Premiere+ offers a complete property advertising solution
@realestate.com.au Premiere+ offers a complete property advertising solution; we continue to enhanced the value and offer add-ons Pre-market Build demand early with the most engaged buyers Coming Soon buyer notification Coming Soon Premiere listing on realestate.com.au Coming Soon exposure on proper
Slide 26: Strong demand for our premium advertising solutions
@realestate.com.au There is strong demand for our premium advertising solutions Customers continue to migrate to REA premium products Premiere+ Depth penetration by tier (lowest to highest yield: feature to premiere+)! Record Premiere+ penetration with exceptional yield growth Yield CAGR >10% Listin
Slide 27: Extensive suite of add-ons to enhance property advertising
@realestate.com.au We have an extensive suite of add-ons to enhance property advertising Add Ons Premium listing Enhanced insights and reporting +32% vor Reach buyers beyond their search on realestate.com.au on social platforms +y Luxe New Luxe add-on package unlocks all the value of Premiere+ with
Slide 28: Our Pro subscription represents a new wave of agency value
@realestate.com.au Our Pro subscription represents a new wave of agency value +119% YoY increasein Comparable prope eee +37 YoY sellertead growth" Seller lead enrichment ‘» OFSaame ® Sollreadiness PIPPINOHALL tome Lead insights fomoimapzonczana.20 CEE Pippin & Hall - Richmond Load performance snapsh
Slide 29: Ignite is a self-service digital platform for customers
Ignite is a self-service digital platform for customers Ignite supports customers to efficiently and effectively do business with insights and digital tools, designed to help Agents get the best result with realestate.com.au and realcommercial.com.au unique data and insights listings PRODUCTS + Agen
Slide 30: Our product suite for Developers is extensive and innovative
@realestate.com.au Our product suite for Developers is extensive and innovative Project Profile Flagship product * Largest listing format and fastest rotation rate on realestate.com.au * For Apartments, Land Estates, House & Land and Retire * Features include enhanced branding & layout, construction
Slide 31: realcommercial.com.au is Australia's #1 for commercial property
@ realcommercial.com.au realcommercial.com.au is Australia’s #1 place for commercial property in every state) 9 + 23 % YoY growth in unique audience in Q4"") Focus on differentiating and personalising the consumer experience driving audience growth and continued leadership Strong uptake of premium p
Slide 32: Property Data
Property Data Ambition: To be the most trusted source of property data that delivers valuable insights and powers REA ) Proplrack
Slide 33: Data underpins our next generation marketplace
@ Proptrack Data underpins our next generation marketplace, powering our consumer and customer experiences Data powers our consumer and customer experiences We continue to innovate and evolve our propensity models ap» comparable properties potent Q Ignite CD NE! by realestate.com.au ° FINNS Propensi
Slide 34: Enhanced AI capabilities power unique products and experiences
Enhanced AI capabilities power unique products, experiences and services for consumers and customers Homepage hero Agent and Broker Carousel Emmy Suggested = J properties Next best actions Seller lead enrichment score exclusive to Pro customers Listing strength check Seller lead enrichment ‘we Yourl
Slide 35: PropTrack is a leading property data business
@ Proptrack PropTrack is a leading property data business offering comprehensive solutions to agents, property valuers and financial institutions Property Valuers & Financial Institution Solutions Property Insights Property data insights, including “Just Listed” reports and “About to List” propensit
Slide 36: Financial Services
Financial Services Ambition: To be the trusted destination to easily find and finance property = Mortgage Choice part of 4} REAGroup
Slide 37: Financing property is complex, our aim is to make it easy
Financing property is complex, our aim is to make it easy 90% @ 10.8mM REA unique monthly audience h se Mortgage ATHENA Elisimpology " Yeudience Tiioraan SR choice A online! 52% Consumer ° Broker Trust. Choice. Service. use The best choice. The right choice. More choice. realestate. * Choice of digi
Slide 38: Differentiating experiences across Mortgage Choice and realestate.com.au
We are differentiating our experiences across Mortgage Choice and realestate.com.au to drive high value leads Engage consumers Named Aggregator of the Year by Mortgage Business Online Empowering brokers +4% YoY growth in submission volumes in FY H2! Enable Choice NEW White-Label product ‘a Mortgage
Slide 39: REA India
Slide 40: REA India operates in a large and growing market
@ REAindia REA India operates in a large and growing market Our addressable markets are large... ..and growth will continue, driven by favourable market conditions . Total Market: A$8.8bn . Marker sizes F¥23 (48) Increasing India on track to become 3" largest property property prices market globally
Slide 41: Changing the way India experiences property through Next Generation Marketplace strategy
@REAIndia Weare changing the way India experiences property through our Next Generation Marketplace strategy and key strategic priorities Largestaudiences, most engaged consumers Through ot d adjacentservices Building next generation marketplaces Unparalleled data & insights Superior customer value
Slide 42: Housing.com's core advertising supported by Housing Edge and PropTiger
@ REAindia Housing.com’s core property advertising business is supported by adjacent services on Housing Edge and developer-focused PropTiger HOUSINGcom Ddrropricer Core Services (‘Housing Edge’) & DIY Premium online property classifieds portal One-stop solution for sale/rent On-ground property fulf
Slide 43: REA India delivers the best app experience
@ REAindia REA India delivers the best app experience to drive audience and customer value # | Indian property site © With 19.5m average monthly visits to Housing.com '@ |HOUSINGcou {o} 45 % YoY growth in app traffic in H2") Investment in app-first strategy with an improved consumer experience has s
Slide 44: Sharing capabilities to drive growth across geographies
@ REAindia Weare sharing capabilities to drive growth across geographies REA Group capabilities Top-of funnel & brand (SEO, Content) supports audience acquisition Mobile-prime personalised experiences drive high-levels of consumer engagement Product, pricing and packaging drives Building the greater
Slide 45: Financial Performance FY24 Results
OS Financial Performance FY24 Results
Slide 46: FY24 Financial Highlights
FY24 Financial Highlights FY24 results!:2 (o) 10, 9 +23% fl +27% +31% Group Revenue Group EBITDA before associates India Revenue growth Full year revenue growth driven by strong yield EBITDA growth reflecting revenue growth and India revenue growth of 31%, with Housing.com core growth across our Res
Slide 47: FY24: Core financial operating results
FY24: Core financial operating results Core results ($m)}> FY24 FY23 Growth $ Growth % Revenue? Australia 1,349.7 1104.4 245.3 22% India 103.1 78.8 243, 31% Group revenue 1,452.8 1,183.2 269.6 23% Operating expenses Australia (460.1) (388.2) (71.9) (18%) India (138.9) (7.9) (21.0) (18%) Corporate (2
Slide 48: FY24: Positive Australian and Group operating jaws
FY24 Results FY24: Positive Australian and Group operating jaws Australia operating results growth! Operational expenses ($m)! 23% 22% +18 2 , aol mREA India 18% excl Mortgage Choice &, £ 11%, ‘COGS I 7 1% ol ‘excl Mortgage Choice 3 § Technology and other 3% Zz mMatketing related % Fya1 FY22 FY23 FY
Slide 49: FY24: Increased investment in strategic initiatives
FY24: Increased investment in strategic initiatives Amount(Sim) Group capital expenditure ($m) 40 Ea 125 20% 0 1% e ° wx * 40 % 20 % Fvai fae FY25 FY24 Investment strategy + The Group continues to invest to support growth over medium to longer- term focused on: ° ° ° mmm Office ft out costs se REA I
Slide 50: FY24: Strong cash position funding further investment
FY24 Results FY 24: Strong cash! position funding further investment Group cash flow ($m) Strong operating cash flows + Operating cash flow of $589m, with free cash flow of $464m Continued strategic investment + Capex for PPE and intangible assets of $125m + Investments in subsidiaries relates to ac
Slide 51: FY24: Revenue breakdown
FY24: Revenue breakdown FY24 Results Revenue category($m)!2 FY23 Growth % Revenue category ($m)!:2 FY23 Growth % Australia Australia Depth revenue’ 1,094.0 885.1 24% Residential 995.7 804.9 24% Subscription revenue’ 60.4 614 (2%) Commercial & Developer 158.7 141.6 12% Media, Data & Other ay 97.0 25%
Slide 52: Company overview
Company overview REA Group has demonstrated a strong growth mindset, scaled its core and expanded across adjacencies and geographies. Our diversified revenue sources and geographic footprint unlock opportunities across large addressable markets Over the last 25 years, our share price has reflected o
Slide 53: 04 Supplementary Information
Slide 54: Statutory (reported 4E) vs core results
Statutory (reported 4E) vs core results Significant items! . Group operating expenses Statutory Significant Core + Fairval . ously held i + ti FY24 ($m) (reported 4E) items! results’ Camp ‘ongeat. previously held Investment in Group revenue? 1,452.8 - 1,452.8 ‘ampal 9 gel | + Integration costs for C
Slide 55: Glossary
Glossary Buyer enquiries Buyer enquiries include email enquiry, phone number reveals, applied for inspection, SMS agent, and Developer brochure downloads. Cash Cash includes cash and cash equivalents. EBITDA Earnings before Interest, Tax, Depreciation and Amortisation excluding contribution from ass
Slide 56: Audience metric sources
Audience metric sources Ipsos iris Online Audience Measurement Service, April 2023 to June 2023. April 2024 to June 2024 (monthly average), Age 14+, PC/laptop/smartphone/tablet, Text only, Brand Group, Audience (000s) Ipsos iris Online Audience Measurement Service, Jul 2023 - Jun 2024 (average), PI4