Slide 1: Investor & Analyst presentation: Full Year Results 30 June 2017
REA Group Limited Investor & Analyst presentation FULL YEAR RESULTS — 30 JUNE 2017 | | | : | ® REA Group
Slide 2: Change the way the world experiences property
For personal use only Change the way the world experiences property DELIVERING ON OUR PURPOSE
Slide 3: Full year financial metrics
Full year financial metrics ® REAGroup ;; 1 REVENUE +16% S671m +16% $381m EBITDA’ +12% $228m 1 NPAT 1730 EPS +12% 91C FULL YEAR DIVIDEND
Slide 4: For personal use only
For personal use only • • • • • • •
Slide 5: realestate.com.au is No. 1: largest and most engaged audience
realestate.com.au Is No. 1 The largest and most engaged audience Culigeanieriatng realestate.com.au Ne. @ A the competition property site Visits Average monthly traffic to 49.9m 19.7m realestate.com.au” Ti Sit Time onsite @ 262.9m 33.3m time on site (minutes)? Minutes Minutes bd Page Views Average m
Slide 6: Strategy for continued growth
Strategy for continued growth ee = e) @) = @ = eo) ” Property Lifestyle @) Advertising & Financial (or Services — Oo LL
Slide 7: Product Innovation
Product Innovation Ccaeetions + [ED enspeetins auctions se Senada Residences @ Alya Kuala Lumpur ‘contact for price 3 Estimated value w LO Seller Hub Front Page Collections New Asian Android and iOS apps Consumers can access the Agents have the opportunity to Consumers can create custom best informa
Slide 8: Product innovation
Product innovation ‘spacey Finda space and work your way. ‘Australia’s biggest share accommodation webste* ‘Browse chort torm or shared spaces. Palo ie) Flatmates.com.au Spacely Builder Profiles Commercial #1 player in Australian share Australia’s new place for Assists builders with expanding 41% gr
Slide 9: Financial Services
Financial Services Total Loan Market Annual new and refinanced loans Home finance is an integral part of the ~$400b mortgage market opportunity’ property purchase process ~$2.2b broker fees” * Building an integrated digital finance experience with NAB to create realestate.com.au Home Loans * Extensi
Slide 10: Lifestyle
Lifestyle A new video and editorial content experience @ westeamas * Team of brand ambassadors across six categories RENOVATIONS including renovation, styling and gardening — * Engaging with different consumer audiences to attract new media customers * Introduced video-led platform: o Shift of adver
Slide 11: Global network
Global network @® tealestate.com.au’ xe PROPTIGERCOM @® ZB meve , realtorcony @® realcommercial.com.au’ ESHOUSINGcom Q Property Group Females makoon® ®spacely @ REA Group i
Slide 12: Asian opportunity
Asian opportunity Global strategy to focus on Asia provides long-term revenue opportunity Real Estate Advertising Spend by Channet” * Significant presence in Asia where transition from offline to online property advertising is still early * Extending Asian footprint with early entry into India throu
Slide 13: For personal use only
For personal use only • • • • • o o
Slide 14: America: strategic investment in world's largest property market
America Strategic investment in world’s largest property market * realtor.com® delivered record consumer audience, reaching an all time high of 60m unique users in April’ * Growth of 11% to 52m* unique users * Increase of 27%’ in unique visitor engagement * Reported revenue grew 10% to USD$394m* * I
Slide 15: Financial Highlights
Financial Highlights REA Group
Slide 16: Financial operating results
Financial operating results FY 2017 F Revenue” Australia 633.5 $55.2 14% Asia 37.7 23.9 58% Group revenue 671.2 579.1 16% EBITDA“? Australia 404.1 349.2 16% Asia 25 9.3 (73%) Associates (4.4) (13.8) n/m Corporate (21.2) (16.9) 25% Group EBITDA*” 380.9 327.8 16% EBITDA Margin 57% 57% Depreciation & A
Slide 17: Strong EBITDA results
Strong EBITDA results Australian premium listing products deliver remarkable growth ¢ Australian listing depth revenue growth achieved despite declines in Group EBITDA ($m) listing volumes and new dwelling 450 commencements 425 ¢ Delivered growth through strategic 400} expansion with Flatmates.com.a
Slide 18: Exceptional results despite market conditions
Exceptional results despite market conditions Australia Residential Listing Dwelling Units Volumes* (000) Commencements Gross Media Spend for Content YTD 31 March Sites® (Sm) 600 (000) FY16 FY17 FY16 FY17 FY16 FY17 Listings Dwelling Commencements Media * 5% decline in REA’s residential * 20% decline
Slide 19: Listing depth strategy driving revenue growth
Listing depth strategy driving revenue growth FY 2017 Group Revenue ($m) FY 2016 Group Revenue ($m) ‘Aus Residential - 0 Aus Residential - 7% Depth & Subs 416.5 ‘Depth & Subs Se $905 Aus Aus Commercial & , Commercial & Developer - wie Developer - | 1086 Depth & Subs Depth & Subs Aus Media & sey Aus
Slide 20: realestate.com.au delivers value to customers
realestate.com.au delivers value to customers Successful take up of premium listing products e Improved product mix and penetration Residential Premium Listing Penetration (depth) driving growth * Success of highest yielding listing product ‘Premiere’, providing superior returns to agents and vendor
Slide 21: Asia results
Asia results Investment in marketing, talent & product innovation despite adverse market conditions S37.7M $2.5m +13.8m* -6.8m* TOTAL REVENUE TOTAL EBITDA * Malaysian property transactions at lowest levels since 2009 and impacts agent, developer & events revenues * Continued investment in Asian busi
Slide 22: Operating results and capital expenditure
Operating results and capital expenditure Group capital expenditure Group operating results growth (excludes Asia) 60 25% 30% 50 ~ 20% 40 15% 20% = £ 30 < ra y £ 10% = 20 410% 5% 10 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 0 0% FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 — Revenue arowth = Operational ex
Slide 23: Cash flow
Cash flow Excellent cash position funds new investments and repayment of debt in FY 2018 Group cash flow (Sm) 1,000 800 600 400 (4.3) 200 z 358.5 Opening cash Receipts from Paymentsto Taxes Paid Net Interest Paid Net proceeds Payment for Capital Repayment of Payment of Other Closing cash balance cus
Slide 24: For personal use only
• • • • • For personal use only • •
Slide 25: Supplementary Information
Supplementary Information ® REA Group
Slide 26: Historical Revenue and EBITDA
Historical Revenue and EBITDA 800 700 FY 2013 ® REA Group 26 FY 2014 mm EBITDA (Sm) Revenue, EBITDA and margin (core operations)! FY 2015 mm Revenue ($m) FY 2016 ---% EBITDA Margin FY 2017 70% 60% 50% 30% 20% 0%
Slide 27: Group results by quarter and half year
Group results by quarter and half year REA Group Qi Q2 Q3 Q4 Core operations ($m)* FY17 FY16 Mvmt Growth FY17 FY16 = Mvmt Growth FY17 FY16 = Mvmt Growth FY17 FY16 = Mvmt Growth Revenue 1574 1337 237 18% 1799 156.2 237 15% 1560 133.9 221 17% 1779 155.3 226 15% ‘Operating expenses” (71.3) (56.9) (14.4
Slide 28: Financial comparatives
Financial comparatives Core Operations Financial State FY 2013 FY 2014 FY 2017 Group results Sm Growth Sm Grow! Sm Revenue 303.0 30% : . 21% J 671.2 Total revenue & other income 303.0 9% 394.6 30% 477.3 21% 579.1 21% 671.2 16% 671.2 Operating expenses (145.5) (4%) (175.5) (21%) (198.5) (13%) (237.5)
Slide 29: Cash flow reconciliation
Cash flow reconciliation @REeaGroup Sesser Cash flow reconciliation ($m) FY 2017 FY 2016 Growth EBITDA” 380.9 327.8 16% Working capital movement 19.7 (15.6) n/m Net interest paid (11.4) (3.3) n/m Income taxes paid (95.1) (100.9) 6% Capital expenditure (54.2) (40.0) (35%) Other 2.6 (4.3) (160%) Free
Slide 30: Visit our investor site
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 investors should seek their o