Slide 1: Investor and Analyst presentation, half year ended 31 December 2015
For personal use only REA Group Limited Investor and Analyst presentation For the half year ended 31 December 2015 1 REA Group half year results
Slide 2: Tracey Fellows, Chief Executive Officer
For personal use only Tracey Fellows Chief Executive Officer 2 REA Group half year results
Slide 3: Delivering on our purpose
For personal use only Delivering on our purpose To empower people by making property simple, efficient and stress-free. 3 REA Group half year results
Slide 4: Strong growth in all financial metrics
Strong growth in all financial metrics For personal use only EBITDA1 EPS1 Revenue $185.9m 91.9¢ +29% +28% $314.8m +20% NPAT1 Interim dividend $121.0m 36.0¢ +28% +22% 1. From core operations (excludes share of losses from associates and gain from sale of business and investments). 4 REA Group half ye
Slide 5: Half year highlights
Half year highlights For personal use only • realestate.com.au is Clear #1 • iProperty Group acquisition • Australian depth revenue +33% • +38% Developer top tier product • 5m App downloads 1 1. Source: Google Play and iTunes, Total Downloads to January 2016. 5 REA Group half year results
Slide 6: realestate.com.au - Clear market leader
realestate.com.au - Clear market leader For personal use only • Announced intent to acquire 100% of iProperty Group • realestate.com.au #1 on all metrics • Moreresidential • Australian than twice theAllvisits Premiere offer of #2 site exceeding 1 expectations • Mostsuccess • Continued popular proper
Slide 7: realestate.com.au - Australia lives here
realestate.com.au - Australia lives here For personal use only Largest and most engaged audience Outperforming realestate.com.au #2 Property Site the competition Visits Average monthly traffic to realestate.com.au1 42.0m 20.3m 2.1x Share of time Share of combined minutes spent on realestate.com.au 8
Slide 8: realestate.com.au - Australia's most popular property app
realestate.com.au - Australia’s most popular property app* For personal use only • 5 million app downloads 1 • 49% app visits growth YoY 2 • 28% app downloads growth YoY 3 1. Source: Google Play and iTunes, Total Downloads to January 2016. 2. Source: Adobe SiteCatalyst average monthly visits for the
Slide 9: Driving audience where it counts
Driving audience where it counts For personal use only More people looking 1 More engaged audience 3 Site visits realestate.com.au realestate.com.au 42.0m 11% No. 2 property site No.2 property site 20.3m 38% 62% 89% More properties 2 For sale section News section realestate.com.au 95% No.2 property
Slide 10: Strategy for continued growth
Strategy for continued growth For personal use only Deliver the best Compete in Develop network digital real estate adjacent markets of world leading experience property portals 10 REA Group half year results
Slide 11: Innovation
Innovation For personal use only Agent Search Price Lookup Suggested Properties Claim My Property Showcasing agent and Making it easy to search Suggesting properties to Providing industry-leading data agency sales performance price estimates and sales consumers based on their and insights to help pr
Slide 12: International network
International network For personal use only 12 REA Group half year results
Slide 13: International highlights – South East Asia
International highlights – South East Asia For personal use only • Acquisition of iProperty - Asia’s leading digital real estate advertising business • #1 in Malaysia, the Hong Kong region, Indonesia and Thailand1 • Excellent potential for long-term growth • $32 million revenue and $2.5 million EBIT
Slide 14: Market opportunity – South East Asia
Market opportunity – South East Asia For personal use only • Real estate market underpinned by population and GDP per capita growth • Property sales outpacing Australia • Strong growth opportunity with shift to digital 1,200 Number of property sales Real estate advertising budget Online real estate
Slide 15: iProperty integration – South East Asia
iProperty integration – South East Asia For personal use only Combined opportunity Experienced local management Proven leadership in technology, Leverage Group capabilities team led by CEO Georg Chmiel product, sales, marketing & resources to accelerate growth Operates leading real estate Multinatio
Slide 16: International highlights – North America
International highlights – North America For personal use only realtor.com® continues to deliver record consumer audience results in FY16 • 1 Growth of 42% to 42.5m web and mobile site users, driven by growth in mobile users • 2 Revenue of USD$172m driven by Connections for Co-Brokerage product and
Slide 17: International highlights – Europe
International highlights – Europe For personal use only • Growth in listings, agents, visits and page views • Luxembourg - new “boost” feature helps agents move listing to top of search results • Continued expansion into new regions of France • Italy - launched new app for unified experience across
Slide 18: Owen Wilson, Chief Financial Officer
For personal use only Owen Wilson Chief Financial Officer 18 REA Group half year results
Slide 19: Operating results
Operating results For personal use only Perform ance ($m ) H Y 2016 H Y 2015 G row th Revenue ($m) Revenue Australia 289.4 236.4 22% HY16 314.8 + 20% Europe 25.1 22.3 13% HY15 261.5 Asia 0.3 2.8 (89% ) HY14 209.4 G roup revenue 314.8 261.5 20% HY13 161.4 EBITD A (1,2) HY12 134.6 Australia 190.2 145.
Slide 20: EBITDA growth
EBITDA growth For personal use only 1 Strong EBITDA growth driven by: Group EBITDA Growth ($m) • Strong take up of premium 225 listing products 1.9 2.8 • Robust developer market drove (11.1) 200 14.5 (2.5) (11.9) significant increase in Project Profiles and Advertising 175 + 29% 47.6 • Operating cos
Slide 21: Premium listing products driving revenue growth
Premium listing products driving revenue growth For personal use only HY16 Group Revenue ($m) HY15 Group Revenue ($m) Australia - Resi 190.5 + 24% 153.7 + 27 Australia - Commercial 23.1 + 8% 21.4 61.3 Media, Developer & Other 75.8 + 24% 22.3 Europe 25.1 + 13% 2.8 Asia 0.3 n/ m $314.8m +20% $261.5m R
Slide 22: Strong growth in premium listings
Strong growth in premium listings For personal use only Premium Listing Penetration (depth) • realestate.com.au experienced strong growth in premium listing products despite no change in listings1 in the market from the prior year • Success of highest yielding Premiere listing product providing incr
Slide 23: European results
European results For personal use only Italian agents1 Italian listings1 • Good growth in agents, traffic +13% +13% and listings • Continued success of expansion into new regions of Luxembourg and France Luxembourg and France • EBITDA results reflects France visits2 listings2 investment in new regio
Slide 24: Operating results and capital expenditure
Operating results and capital expenditure For personal use only Group operating results growth (%) Capital expenditure as a % of revenue 25 12.5% 30% 20 10.0% Capital expenditure ($m) % of revenue 15 7.5% 20% 10 5.0% 10% 5 2.5% 0% 0 0.0% HY 2011 HY 2012 HY 2013 HY 2014 HY 2015 HY 2016 HY 2011 HY 201
Slide 25: Group cash flow
Group cash flow For personal use only 25 REA Group half year results
Slide 26: Supplementary information
For personal use only Supplementary information 26 REA Group half year results
Slide 27: Historical Full Year Revenue and EBITDA
Historical Full Year Revenue and EBITDA For personal use only 27 REA Group half year results
Slide 28: Financial comparatives
Financial comparatives For personal use only C ore operations Fin Stats H Y 2012 H Y 2013 H Y 2014 H Y 2015 H Y 2016 H Y 2016 G roup results $m G row th $m G row th $m G row th $m G row th $m G row th $m Revenue from core operations 134.6 18% 161.4 20% 209.4 30% 261.5 25% 314.8 20% 314.8 Totalrevenu
Slide 29: Financial comparatives
Financial comparatives For personal use only C ore operations Fin Stats FY 2012 FY 2013 FY 2014 FY 2015 H Y 2016 H Y 2016 G roup results $m G row th $m G row th $m G row th $m G row th $m $m Revenue from core operations 277.6 16% , 336.5 21% , 437.5 30% , 522.9 20% , 314.8 314.8 Totalrevenue & other
Slide 30: Group cash flow reconciliation
Group cash flow reconciliation For personal use only C ash flow reconciliation ($m ) H Y 2016 H Y 2015 G row th EBITD A1,2 185.9 144.5 29% W orking capitalm ovem ent (10.0) (19.1) (47% ) Tax paid (59.3) (40.3) 47% C apitalexpenditure (17.9) (23.2) (23% ) O ther 6.7 3.6 86% Free cash flow 105.3 65.6
Slide 31: iProperty Group
iProperty Group For personal use only Source: Frost & Sullivan, IPP, DAAT, REA, Statista, Credit Suisse, Effective Measure, Google Analytics. (1) Think of Living only. 31 REA Group half year results
Slide 32: iProperty Group
iProperty Group For personal use only Source: Frost & Sullivan, IPP, DAAT, REA, Statista, Credit Suisse, Effective Measure, Google Analytics, MRIA. 32 REA Group half year results