Slide 1: Investor & Analyst presentation, Full year results 30 June 2018
REA Group Limited Investor & Analyst presentation Full year results, 30 June 2018 “Change the way the world experiences property” @ REA Group
Slide 2: Full year financial metrics
Full year financial metrics $463.7 +20% EBITDA’ $807.7m +23% $279.9m +23% 212.5C EPS +20% 109.0¢ Full-year Dividend @ REA Group
Slide 3: realestate.com.au is the #1 place for property
realestate.com.au is the #1 place for property Outperforming the competition — the largest and most engaged audience on all devices a i © MZ Total visits App launches Time on app App downloads fe) 74.6m 23.9m 25% growth 1.2m Average monthly traffic to Average monthly launches of Average monthly tota
Slide 4: For personal use only
Lifestyle & Property Global Financial Services Advertising a) mnie & The online advertising of Connecting with people Extending our expertise into property remains at the centre throughout their entire large and growing markets of our business property journey around the world REA Group
Slide 5: Highlights from Property Advertising
Highlights from Property Advertising New experiences for our customers Property Advertising c * Agent Edge, a suite of agent branding products to improve their presence on realestate.com.au. Products released include Agent Elevate and Agent Match * Agents receive 32% more views to their profile page
Slide 6: For personal use only
For personal use only • • • • You searched all agents in Richmond, VIC 3121 5 • All agents (242) Compare • • • • •
Slide 7: Hometrack Australia acquisition
Property Advertising cy) Hometrack Australia acquisition Delivering more property data and insights to our customers and consumers * 100% acquisition completed in June 2018 $14-16m S6-7mM * Leading provider of property data services to the financial sector FY19 Revenue FY19 EBITDA * Deep relationshi
Slide 8: Lifestyle & Content
Lifestyle & Financial Services Beyond property advertising Lifestyle & Content realestate.com.au is Australia’s #1 producer and publisher of original property content Cet * Revenue for Lifestyle increased by 250% * Lifestyle has received more than 20 million visits since launcht * Lifestyle has publ
Slide 9: Financial Services
Lifestyle & Financial Services Beyond property advertising Financial Services Australian-first experience on realestate.com.au, in partnership with NAB, integrating property search and finance Strong Online Engagement Catsuthien Content hub & articles building understanding | Online CHEAYSUSLE High
Slide 10: Global Network
Global Global Network Our long-term growth strategy looks to extend our expertise to large and growing markets (0) realestate.com.au ne PROPTIGER.COM (0) xe realtorcony we Eosiec) @ realcommercialcomau’ HOUSING com Q iProperty.commy Flednates makoon¥ 9 iProperty.com.sg : @ GoHome.com.hk ®spacely 9 s
Slide 11: For personal use only
For personal use only • • • • • • •
Slide 12: Strategic Investments United States
Strategic Investments United States Our strategic investment in Move, Inc. continues to perform well Revenue increased 15% to USD$452m! Leading in consumer engagement - 1.7x more page views? and 1.2x more time per visit? than its nearest competitor Launched a faster search experience, increasing vis
Slide 13: Strategic Investments India
Global Strategic Investments India Our strategic investment in PropTiger made great progress p R O PT | G E R. C O M * Revenue increased 48% in FY18 aN * Combined traffic to all three platforms increased 43%! | * Housing.com launched a broker lf 0 U SI N G.com product, activating more than 3,000 pai
Slide 14: Financial Highlights
For personal use only Financial Highlights Full year results, 30 June 2018 @ REA Group
Slide 15: Financial operating results
Financial operating results Revenue ($m) Gana rvis RyOyad Revenue” Financial Services 293 46 >100% Group Revenue 8077 671.2 20% EBITDA? ustal oy 2s mY Financial Services aL 3) 16 n/a Asia 83 25 >100% EBITDA (Sm) Associates (7.8) (4.4) -76% Corporate (19.0) (21.2) 10% etm 465.7 Group EBITDA®®” 463.7
Slide 16: Strong EBITDA results
Strong EBITDA results Australian premium listing products delivered outstanding growth Group EBITDA (Sm)' * — Residential revenue growth due to the continued success of Premiere All 530 * — Strong growth in the Commercial business and steady revenues in the aso 3 Developer business despite the signi
Slide 17: Market conditions were mixed
7 Market conditions were mixed * Overall listings in Australia were down 2% but were up in Melbourne and Sydney providing a mix benefit as these are the highest yielding geographies + In the first half of FY19 listing growth rates will reflect the prior year’s strong listing environment in Melbourne
Slide 18: Listing depth strategy driving revenue growth
Listing depth strategy driving revenue growth FY 18 Group Revenue ($m) FY 17 Group Revenue ($m) Aus: Residential Depth & Subs [Ter Aus: Residential Depth & Subs [TE] Aus: Commercial & Developer Depth & Subs [IBES] Aus: Media & Other Aus: Commercial & Developer Depth & Subs Aus: Media & Other Aus: Fi
Slide 19: realestate.com.au delivers value to customers
realestate.com.au delivers value to customers Successful take up of premium listing products 19 Improved product mix and penetration driving growth Success of highest yielding listing product ‘Premiere’, providing superior returns to agents and vendors Strong renewal and increased take up of Premier
Slide 20: Asia results
Asia results Continuing to invest in marketing, talent & product innovation despite challenging market conditions * Revenue and EBITDA growth due to MyFun, Thailand and Indonesia (inclusive of FX impact), and subdued cost growth S44. 4 f f * Strengthened market leadership position 18% in Malaysia an
Slide 21: Financial Services launched
Financial Services launched Delivered growth through strategic expansion into Financial Services $29.3m $10.8m Revenue EBITDA? More than 400 brokers nationwide Combined loan book of $28.3b Growing white label product Challenging broker recruitment market Tightening lending requirements from banks is
Slide 22: Operating results & capital expenditure
Operating results & capital expenditure Group Operating Results Growth ty acquisition f 30% 20% 10% FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 ‘Revenue Growth m=Operational expenses growth For the full year FY19 the target is for the rate of revenue growth to exceed the rate of expense growth however t
Slide 23: Cash flow
Cash flow Reduction in cash position due to funding of new investments and repayment of debt Group cash flow ($m) 1200 871.2 §j (412.0) 1,000 800 7 (124.1) 37) (ee 600 (8.7) (312.8) CC i —6—)l (59.3) 7000 PE 54.0) 200 (129.4) 1158 Opening cash Receipts from Paymentsto Taxes paid Net interest Payment
Slide 24: Supplementary Information
For personal use only Supplementary Information @ REA Group
Slide 25: Historical Revenue and EBITDA
25 Historical Revenue and EBITDA Revenue, EBITDA and Margin (core operations) FY14 sm) = = EBIIDA% n 0% secivenye (M9 REA Group
Slide 26: Financial comparatives
Financial comparatives Financial Statements Core Operations* FY2014 FY2015 FY2016 FY2017 FY2018 FY2018 Group Results $m Growth $m Growth $m Growth $m Growth $m Growth $m Total Revenue 394.6 30% 477.3 21% 579.1 21% 671.2 16% 807.7 20% 807.7 Total Operating Income 394.6 30% 477.3 21% 579.1 21% 671.2 1
Slide 27: Cash flow reconciliation
Cash flow reconciliation 27 Cash flow reconciliation ($m) FY 2018 FY 2017. Growth EBITDA 4637 380.9 22% Working capital movement (3.8) 19.7 n/m Net interest paid (6.6) (11.4) (42%) Income taxes paid (124.1) (95.1) 31% Capital Expenditure (59.3) (54.2) 9% Other (2.2) 2.6 n/m Free cash flow 267.7 242.
Slide 28: For personal use only
Visit Our investor site at rea-group.com Disclaimer: This presentation contains non-specific background information about REA Group's current activities. This information is a summary only. Investors and potential investors should obtain independent advice. This information is not intended to provid