Slide 1: REA Group Investor & Analyst Presentation, Results December 31 2016
REA Group Limited lavestor & Analyst presentation RESULTS — DECEMBER 31 2016 REA Group
Slide 2: Tracey Fellows, Chief Executive Officer
Tracey Fellows CHIEF EXECUTIVE OFFICER Dr personal use only ® REA Group
Slide 3: Delivering on our purpose
onal use only Change the way the world experiences property re oe DELIVERING ON OUR PURPOSE -For
Slide 4: Half year financial metrics
Half year financial metrics +16% $337mM 1 REVENUE +15% S200m EBITDA’ $122m 1 NPAT +6% I2.C +11% 40c HALF YEAR DIVIDEND @REA croup
Slide 5: Half year highlights
Half year highlights * realestate.com.au is #1’ * Investment in PropTiger (India) Partnership with NAB Sale of European operations First VR property app in Australia Source: Nielsen Online Market Intelligence Home and Fashion Suite aver onthly visits and unique audience for the audited a REA Group a
Slide 6: For personal use only
of #2 site’ app downloads’ more Buy section visits’ share of time on site’ app visits growth year on years of new property listingss i Hl Maximiser. REA Group jatched back
Slide 7: Largest and most engaged audience
Largest and most engaged audience If you're not on realestate.com.au, you're not in the market Outperforming the competition rca monty aff 479m 20.1m 2.3X to realestate.com.aut hewage ont 254.2m 33.2mM 7.6X time on site (minutes) minutes realestate.com.au No. 2 property site 3 bg minutes 20 wenge mo
Slide 8: Strategy for continued growth
Strategy for continued growth SS < © cD) Cp) =) ah ) PROPERTY PROPERTY ADVERTISING RELATED SERVICES For personal © GLOBAL @REa croup
Slide 9: Product Innovation
Product Innovation Builder Profiles realestate VR App Seller Hub Assists builders with expanding their Australia’s first virtual reality property app Gives consumers access to the best online presence and increasing their available on Daydream, Google's mobile information and insights before their b
Slide 10: Product Innovation
Product Innovation very SH minutes someone fd afiatmate nen flatmates.com.au Commercial #1 player in Australian Share Energy Scores 39% growth in site visits: Provides consumers with an indicator of a Accommodation 1 15% growth in premium listing Elite Plus* property's energy efficiency, average Sta
Slide 11: For personal use only
For personal use only • • • • • + =
Slide 12: Global network
Global network meve @® realestate.com.au’ @ realcommercialcomau’ HOUSING com Property Group realtorconr Fledmates mokaon® @REA croup
Slide 13: For personal use only
For personal use only • • • • • • • •
Slide 14: The Asian opportunity
The Asian opportunity The Asian opportunity is as compelling as it has ever been Online real estate advertising as % of total $(m) Product innovation 14 12 10 The Home of Property intelligen aW@@ce € c 14,000,000 | 130,000,000 Opportunity for growth 08 Ty Bee 06 04 02 0.0 South East Asia” Australia®
Slide 15: realtor.com continues to deliver record consumer audience results
realtor.com® continues to deliver record consumer audience results in ri iby ay Growth of 14% to 48m _ average monthly web and mobile site users 2 Revenue growth of 8% to USD$186m Innovations include new web experience and design and new app New premium listing product Advantage launched in December
Slide 16: Owen Wilson, Chief Financial Officer
Owen Wilson CHIEF FINANCIAL OFFICER Dr personal use only ® REA Group
Slide 17: Operating results
Operating results Performance ($m) HY 2017 HY 2016 Growth Revenue Australia 318.2 284.6 12% Asia 19.2 5.2 n/m Group revenue 337.3 289.8 16% EBITDA“? Australia 209.3 187.2 12% North America (1.8) (4.6) 62% Asia 2.6 25 6% Corporate (10.2) (8.4) (21%) Group EBITDA“? 200.1 176.7 13% EBITDA Margin 59% 61
Slide 18: EBITDA growth
EBITDA growth Strong EBITDA’ growth driven by: * Strong take up of premium listing products * Robust developer market drove significant increase in Project Profiles * Revenue growth achieved despite declining 2 listing volumes in the Australian market 250 240 230 220 210 Group EBITDA growth ($m) HY
Slide 19: Premium listing products driving revenue growth
Premium listing products driving revenue growth HY 2017 Group Revenue ($m) HY 2016 Group Revenue ($m) Aus - Residential ‘Aus - Commercial Media, Developer & Other Revenue category ($m) HY 2017 HY 2016 Growth Australia Listing depth revenue 244.0 210.9 16% Subscription revenue 27.9 27.6 1% Media disp
Slide 20: Strong growth in premium listings
Strong growth in premium listings Premium Listing Penetration (depth) * realestate.com.au had continued improvement in premium listing mix and growth in premium listing products despite decline in listing volumes in the Australian market * Success of highest yielding premiere listing product providi
Slide 21: Asia results
Asia results Growth in key metrics despite challenging market conditions +11% $19. om S 2 6 ™M Group mobile visits >100% 6% TOTAL REVENUE HY17 EBITDA +4 16% 4 23% 2 3 Hong Kong listings Malaysian mobile visits @REA croup
Slide 22: Operating results and capital expenditure
Operating results and capital expenditure Group operating results growth 30% 20% > wat 10% FY 2013 Fy 2014 FY 2015 FY 2016 HY 2017 — Revenue growth — Operational expenses growth Results above include iProperty without prior year comparatives (excluding iProperty we expect full year revenue growth to
Slide 23: Group cash flow
Group cash flow Group cash flow ($m) 600 400 200 ee (73) (2.6) Openingeash ——Raceipts from Payments to Taxes paid Net interest & Payment of Payment for Capital expenditure Other balance customers suppliers repayment of divcends acquisition of borrowings subsidiaries & divestment Closing cash balance
Slide 24: Supplementary information
Supplementary information @REA croup
Slide 25: Historical Full Year Revenue and EBITDA
Historical Full Year Revenue and EBITDA Revenue, EBITDA and margin (core operations*) 700 60% g FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 mm EBITDA (Sm) mm Revenue ($m) = -% EBITDA Margin @REA croup
Slide 26: Financial comparatives
Financial comparatives ore Opera’ HY 2013 14 HY 2015 HY 2016 HY 2017 HY 2017 6up results $m Growth Growth $m Growth $m Growth $m Revenue 145.7 ; . 26% 289.8 21% 337.3 16% 337.3 Total revenue & other income 145.7 8% 189.2 30% 239.3 26% 289.8 21% 337.3 16% 337.3 Operating expenses (71.8) (4%) (85.8) (
Slide 27: Group cash flow reconciliation
Group cash flow reconciliation Cash flow reconciliation ($m) HY 2017. HY 2016 Growth EBITDA”) 200.1 176.7 13% EBITDA discontinued ops 17 3.3 (49%) Working capital movement (12.1) (10.0) 21% Net Interest (6.2) 0.7 n/m Tax paid (48.5) (59.3) 18% Capital expenditure (24.1) (17.9) (35%) Other 03 5.9 (96
Slide 28: 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 investors should seek their o