Rea Group Ltd · ASX:REA

Rea — FY2019 Earnings Presentation

25 slides from Rea's earnings presentation, Aug 9, 2019

  1. Slide 1: Investor & Analyst presentation, Full year results 30 June 2019

    REA Group Limited Investor & Analyst presentation Full year results, 30 June 2019 Changing the way the world experiences property

  2. Slide 2: Our performance: Full year financial metrics

    Our performance Full year financial metrics EBITDA’ $501.2m +8% Full Year Dividend 118.0¢ +8% REA Group

  3. Slide 3: More than one million people visit realestate.com.au each day

    More than one million people visit realestate.com.au each day Total visits The largest and most ' "| 76.8 million’ engaged audience 2.98x more’ Monthly searches Q 94 million’ 19% growth’ Australia’s best property app = Monthly app launches 29.4 million’ — 21% growth’ Richmond, VIC 3121 Melbourne, vi

  4. Slide 4: Delivering on our strategy

    Delivering on our strategy Changing the way the world experiences property Individual, proactive & lifelong consumer interactions Our global network: AUSTRALIA ASIA ® realcommercial QO squarefoot Flcdmates 9 iProperty.com.my @spacely Q rumahi23.com — @smart! ine Q thinkotliving.com * Property reales

  5. Slide 5: Individual. Proactive. Lifelong. Engaging our audience

    Individual. Proactive. Lifelong. Engaging our audience Our goal is to help people throughout their entire property journey. We do this by providing an easy, stress-free and highly relevant experience. ifesi Hi Agent ratings Ptadmades Lifestyle AGENT REACH * Agent rating ® realestate.com.au “¥ AGENT

  6. Slide 6: For personal use only

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  7. Slide 7: For personal use only

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  8. Slide 8: For personal use only

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  9. Slide 9: Global network: Our footprint spans three continents

    Global network Our footprint spans three continents REA‘s long-term growth strategy looks to extend our expertise to large and emerging markets. We have businesses in Australia, Asia and North America. ® realestate.com.au PR propricencom Eat realtorconr fax moe meve realestate.com.au HOUSING.com 9 i

  10. Slide 10: For personal use only

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  11. Slide 11: For personal use only

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  12. Slide 12: My finances: Financial Highlights 2019

    9:29 am x 7 8 62%, =) My finances MY Finances Tools to h 0 You make better Aecisions My preferences My finances My home loan Calculators Financial Highlights 2019 Full year results, 30 June

  13. Slide 13: Financial operating results

    Financial operating results Performance ($m) FY 2019 FY 2018 Change Revenue’ Australia 799.3 734.1 9% Financial Services 27.0 29.3 (8%) Asia 48.6 44.3 10% Group Revenue 874.9 807.7 8% EBITDA? Australia 518.2 473.1 10% Financial Services 9.6 11.5 (16%) Asia 7A 8.3 (11%) Associates (14.1) (7.8) (81%)

  14. Slide 14: Unfavourable market conditions

    Source REA intemal Data forthe tee month parods end Unfavourable market conditions Residential Listing Changes’ 0418 ang 319 cate National —=Melbourre —=Sydney Dwelling Commencements?* 70,000 Now 60,000 , I 50,000 1 I 40,000 1 i 30,00 ' 20,000 1 q 10,00 ) SP ES SF SP OMY © SO DD md SSK HF PKS PH PPM

  15. Slide 15: Continued EBITDA growth in challenging market conditions

    Continued EBITDA growth in challenging market conditions Group EBITDA ($m)! 540 12 ee 64) | 84 500 480 460 501.2 a0 463.7 420 400 Fy 2018 Aus Aus Aus Aus Financiel Asia Revenue Share of Operating «FY 2019 Group EBITDA Residential Developer & Media, Data® Subscriptions Services Losses of Expenses Gro

  16. Slide 16: Listing depth strategy driving revenue growth

    Listing depth strategy driving revenue growth FY 2019 Group Revenue ($m) FY 2018 Group Revenue ($m) Aus: Residential Depth & Subs Eisiomt) 8% Aus: Residential Depth & Subs 513.0) Aus: C ial & Devel Aus: Commercial & Developer \ oGepth & subs MMEBZEY 4.6% Depth & Subs 126.3) Aus: Media, Data & Other

  17. Slide 17: Delivering value for customers

    Delivering value for customers Residential listing depth penetration Residential Premium Listing Penetration (depth) * Improved product mix and further depth penetration notwithstanding challenging market conditions. Continued success of highest yielding listing product ‘Premiere’ demonstrating the

  18. Slide 18: Continued international growth

    Continued international growth Asia + Revenue growth driven by myfun & Malaysia despite challenging market conditions across the region. * Further investment in product innovation and marketing in order to maintain and strengthen our market positions. S4 8 . 6 aa) S7 4 Mm * Share of losses from Elar

  19. Slide 19: Group operating results growth and capital expenditure

    Group Capital Expenditure Group Operating Results Growth’ BO. pennnnnneene ence eee 25% 25.0% ty Acquisition 20% 20.0% g 15% 15.0% 3 « 10% 10.0% 5% 5.0% 7 0% FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2015 FY 2015 FY 2017 FY 2018 FY 2019 Revenue growth Operational expenses growth wm Capex mm Office

  20. Slide 20: Group cash flow

    For personal use only Group cash flow ($m)

  21. Slide 21: Supplementary Information

    A i} this is the place MH realestate Supplementary Information REA Group

  22. Slide 22: Historical Revenue & EBITDA

    Historical Revenue & EBITDA Revenue, EBITDA and Margin (core operations)* FY15 FY16 FY17 mmEEBITDA (Sm) mmm Revenue (Sm) = = E BITDA % FY18 FY19 ® REA Group 50% 40% 50% 20% 10% 0% 22

  23. Slide 23: Financial comparatives

    Financial comparatives Financial Statements FY 2019 Core Operations* FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Group Results $m Growth $m — Growth $m Growth $m Growth $m Growth $m Total Revenue 477.3 21% 579.1 21% 671.2 16% 807.7 20% 874.9 8% Total Operating Income 4773 21% 579.1 21% 671.2 16% 807.7 2

  24. Slide 24: Cash flow reconciliation

    Cash flow reconciliation iC ash flow reconciliation (Sm) FY 2019 FY 2018 Change EBITDA’ 501.2 463.7 8% Working capital movement (0.5) (3.8) 86% Net interest paid (9.1) (6.6) (38%) income taxes paid (136.9) (124.1) (10%) Capital expenditure (68.0) (59.3) (15%) Share of losses of associates and joint

  25. Slide 25: Visit our investor site at rea-group.com

    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

REA Group — FY2019 Earnings Presentation on 6ix