Slide 1: REA Group Investor & Analyst Presentation
For personal use only REA GROUP LIMITED INVESTOR & ANALYST PRESENTATION For the year ended 30 June 2014 8 August 2014 Peter Tonagh - Interim Chief Executive Officer Paul Burrows - Group Financial Controller
Slide 2: Delivering on our purpose
Delivering on our purpose For personal use only • Empowering agents and advertisers by providing access to the largest audience of property seekers and movers • Empowering consumers by providing digital tools and information related to buying, selling, renting, leasing and monitoring the market • Em
Slide 3: Group performance overview
Group performance overview For personal use only AU$ million FY 2014 FY 2013 Growth Revenue 437.5 336.5 30% • Revenue growth of 30% EBITDA (1) 225.1 163.9 37% EBITDA margin 51% 49% 6% • EBITDA growth of 37% has resulted in EBIT 203.9 145.3 40% further margin growth EBIT margin 47% 43% 8% NPAT NPAT b
Slide 4: Corporate development
Corporate development For personal use only Appointment of new executives • Tracey Fellows appointed Chief Executive Officer, commencing in August 2014 • Owen Wilson appointed Chief Financial Officer, commencing in September 2014 Bolt on acquisitions • 1Form.com – leading Australian tenancy applicat
Slide 5: Group growth continues
Group growth continues For personal use only % Group revenue by country Group revenue, EBITDA and margin growth Hong Kong, 1% Revenue ($m) 500 EBITDA ($m) Luxembourg & France, 3% % EBITDA margin 50% FY 2014 Italy, 6% Total revenue: 437.5 $437.5m 400 40% 336.5 300 Australia, 90% 30% 277.6 238.4 200 2
Slide 6: Substantial growth across all Australian lines of business
Substantial growth across all Australian lines of business For personal use only Australian revenue by Australian revenue by 450 line of business ($m) line of business (%) +30% 400 392.2 350 300 +33% 101.9 300.9 26% 250 Residential 252.9 FY 2014 200 Commercial Aus revenue: 190.3 $392.2m 150 37.4 252
Slide 7: Australian key metrics
Australian key metrics For personal use only Average monthly ARPA ($) Average monthly visits ('000) EBITDA ($m) 3,000 45,000 250.0 40,786 232.4 2,587 200.0 2,000 30,000 32,696 1,989 150.0 164.7 100.0 1,000 15,000 50.0 - - - FY 2013 FY 2014 FY 2013 FY 2014 FY 2013 FY 2014 • ARPA growth driven by incr
Slide 8: Australian visits by platform
Australian visits by platform For personal use only Australian average monthly visits • App visits grew 43% • Mobile site visits grew 54% 23.0 20.6 63% 56% • Listing depth product hierarchy proving to be effective across all platforms Main sites FY 2013: FY 2014: 4.7 14% 32.7m Apps 7.2 40.8m • Incre
Slide 9: Comparisons of visits to competitors
Comparisons of visits to competitors For personal use only realestate.com.au 30.3m average monthly visits to realestate.com.au & affiliated Australian main and mobile sites nearest competitor 9.7m average monthly visits to main and mobile sites next competitor 1.6m average Comparison of app visits w
Slide 10: Australia's lead extends across all metrics
Australia’s lead extends across all metrics For personal use only nearest outperforming lead extended competitor the competition year on year (5) (1) 30.3 MILLION VISITS 9.7m (1) 3.1x 9% Average monthly visits to Australian main and mobile sites (2) 82% Our share of combined minutes spent on real es
Slide 11: Italy
Italy For personal use only Average monthly (5) Revenue by advertising category unique audience ('000) Categories (€'m) FY 2014 FY 2013 Growth 3,000 Subscription revenue (1) 17.3 16.4 5% 1.3x Listing depth revenue (1) 1.4 0.5 169% 2,603 Media, Developer & other (1) 1.9 2.8 (31%) 2,000 Total revenue
Slide 12: Luxembourg, France & Asia
Luxembourg, France & Asia For personal use only Luxembourg & France Hong Kong & China Metrics FY 2014 FY 2013 Growth Metrics FY 2014 FY 2013 Growth Total revenue (€m) 8.4 6.9 23% Total revenue (HK$ m) 18.1 16.2 12% EBITDA (€m) (1) 3.5 2.7 29% EBITDA (HK$ m) (1) (8.3) (0.2) * Average Monthly ARPA (€)
Slide 13: Financial comparatives
Financial comparatives For personal use only Group results FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 #039;000 Growth #039;000 Growth #039;000 Growth #039;000 Growth #039;000 Growth Revenues from continuing operations 194,335 16% 238,401 23% 277,613 16% 336,460 21% 437,459 30% Operating expenses (116,348) 10% (135,22
Slide 14: Performance by country
Performance by country For personal use only Country results (#039;000 AUD) FY 2014 FY 2013 Growth Revenue Australia 392,238 300,933 30% Italy (1) 30,377 24,821 22% Luxembourg (1) 12,481 8,673 44% Hong Kong 2,363 2,033 16% Total 437,459 336,460 30% EBITDA (2) Australia 232,351 164,730 41% Italy 48 1,62
Slide 15: Product development
Product development For personal use only Agent Profiles – coming soon in FY 2015 • Empowers consumers by helping them select the right agent to sell their home – 67% of potential vendors say this is the most stressful part of selling their property • Empowers agents to provide rich information to b
Slide 16: Initiatives
Initiatives For personal use only Connections – coming in FY 2015 • Assists consumers to compare and connect to services such as finance, electricity, telecommunications, and entertainment • Focus on automation of the process enabled by our 1Form acquisition, making the property process simple, easy
Slide 17: Awards & achievements
Awards & achievements For personal use only • 2014 AIMIA Award for Best of Tablet – Publisher for • 88% engagement: Australian employee engagement score realestate.com.au iPad app puts REA in the top 5% of companies surveyed (1) • 2013 Australian Mobile Awards - Best Audience • 3.2m + IOS and Androi
Slide 18: Appendix: Key Australian products
For personal use only Appendix: Key Australian products OUR ORGANISATIONAL MODEL
Slide 19: Residential product hierarchy
Residential product hierarchy For personal use only (1) (1) (1) (1) REA Internal Data Warehouse. This is an average based on activity on realestate.com.au between 1 Sep - 30 Sep 2013. Our property sample includes suburbs that only had Premiere Property, Highlight Property, Feature Property and Stand
Slide 20: Other residential products
Other residential products For personal use only eBrochure Exclusive showcase MyFun Boost interest in your property Seize prime position in your suburb Maximise exposure to overseas buyers 20
Slide 21: Agent focus
Agent focus For personal use only Lead generator Agent Profiles Brochure mock up tool Create vendor brochures personalised for each listing presentation Own leads in your suburb Coming in FY 2015 Be the ‘go to’ agent in your area 21
Slide 22: Commercial & Developer products
Commercial & Developer products For personal use only Project profiles Elite Plus (1) Elite (1) Enhanced (1) Basic (1) Omniture SiteCatalyst Average November 2012 - February 2013 22
Slide 23: Visit our investor site at rea-group.com
For personal use only Visit our investor site at rea-group.com 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 investor