Rea Group Ltd · ASX:REA
Rea — Shareholder Meeting (November 2020)
50 slides from Rea's shareholder meeting presentation, Nov 17, 2020
Slide 1: REA Group 2020 Annual General Meeting
ASX Announcement 17 November 2020 REA Group 2020 Annual General Meeting This meeting will be webcast at https://agmlive.link/REA20 Chairman’s Address Hamish McLennan, Chairman, Introduction Good afternoon. I’m Hamish McLennan, Chairman of REA Group Ltd, and on behalf of the Board I’m delighted to we
Slide 2: How to ask questions
as the polls are now open for voting. Voting will close shortly after the end of the meeting. How to ask questions We did not receive any questions in the lead up to the AGM. If you would like to ask a question at today’s meeting you can do so by typing and submitting your question online as shown o
Slide 3: Full year highlights
Malaysia following suit in March. Owen will attest to the team thriving under these new working arrangements. New product innovations and customer and consumer support measures were delivered at rapid speed, ensuring people had access to new ways to find, buy and sell property, despite COVID-19 rela
Slide 4: Strong results in challenging market conditions
generated compound annual growth in earnings and dividends per share of approximately 9%. Importantly, despite the challenging year the Group managed to grow its operating EBITDA margin by 1% to an impressive 60% and continued to invest for the future with capex as a percentage of sales remaining at
Slide 5: CEO's Address
Roger joined the REA Group Board in 2006 and has also served as Chairman of the Audit Risk and Compliance Committee and a member of the Human Resources Committee. On behalf of the Board and management team, I would like to thank Roger for his significant contribution and service over the last 14 yea
Slide 6: Delivering on our growth strategy
We have received incredibly positive feedback from our customers around the variety and flexibility of the offers introduced, with an option to suit every type of vendor. Delivering on our growth strategy During FY20, REA Group’s purpose, to change the way the world experiences property, has never b
Slide 7: Superior customer value
consumers to stay on top of the latest valuations of their homes, investments or properties they’re interested in monitoring. Superior customer value Turning to our customers. We saw improved product mix across both our buy and rent categories and a record number of customers committing to our premi
Slide 8: Leveraging unique capabilities across Asian portfolio
Turning to our Financial Services business, which continues to perform well. During the year, despite the difficult trading conditions, we saw growth in both loan submissions and settlements. We announced a new brand for our home loans business. Smartline – personal mortgage advisers, will be the mo
Slide 9: Q1 FY21 Financial Results
Q1 FY21 Financial Results National residential listings declined 2% over the three-month period. This was largely attributed to a 44% decrease in listing volumes in Melbourne, as a result of the stage four lockdown banning physical property inspections. In contrast, pleasingly, the recovery continue
Slide 10: Our people are at the heart of REA Group
Our people are at the heart of REA Group Our success this year would not have been possible without the passion and dedication of our talented workforce. Our people are at the heart of REA. With our head office team in Melbourne still working remotely, we recognise that COVID- 19 continues to create
Slide 11: References
in property websites realtor.com in the US, 99.co and iproperty.com.sg in Singapore, rumah123.com in Indonesia and PropTiger.com, housing.com and Makaan.com in India. References 1 Financial results/highlights from core operations in the prior comparative period excluded significant non-recurring ite
Slide 12: Annual General Meeting
Annual General Meeting REA Group Ltd 17 November 2020 Changing the way the world experiences property
Slide 13: Hamish McLennan
Hamish McLennan Chairman REA Group 2
Slide 14: How to vote
How to vote Click on Get a Voting Enter your Securityholder 1 2 3 Fill out your voting card Card on the top and number or employee number for each item of business bottom of your screen and postcode or Proxy number and click Submit Vote or and click Submit Details and Submit Partial Vote Vote ? If y
Slide 15: How to ask questions
How to ask questions 1 Click on Ask a Question 2 Select an item of business from on the top and bottom the drop-down menu and type of your screen your question in the space provided. When ready, click on Submit Question ? If you experience any technical difficulties, please call the help line on 180
Slide 16: REA Group Board of Directors
REA Group Board of Directors Hamish McLennan Owen Wilson Roger Amos Kathleen Conlon Chairman Chief Executive Officer Independent Independent Non-Executive Director Executive Director Non-executive Director Non-executive Director Nick Dowling Tracey Fellows Richard Freudenstein Michael Miller Indepen
Slide 17: Meeting agenda
Meeting agenda 1 FY20 highlights & financial performance 2 FY20 operating overview 3 Q1 FY21 update 4 Meeting formalities 5 Q&A session 6
Slide 18: An extraordinary year
An extraordinary year COVID-19 health crisis was endured on top of devastating drought and bushfires 7
Slide 19: Full year highlights
Full year highlights Excellent performance demonstrates underlying business resilience and portfolio strength Successfully managed short term operating priorities while progressing long term growth strategy Record audience and engagement results reinforcing realestate.com.au as Australia’s #1 addres
Slide 20: Strong results in challenging market conditions
Strong results in challenging market conditions Resilient performance delivered with strong EBITDA margin2 increasing to 60% Revenue1 EBITDA2 Net profit3 $820.3m $492.1m $268.9m -6% -5% -9% $874.9 $515.3 $295.5 $820.3 $492.1 $807.7 $279.9 $471.5 $268.9 $671.2 $228.3 $385.3 $204.3 $579.1 $341.7 FY16
Slide 21: Consistently strong financial track record
Consistently strong financial track record Creating value and delivering returns for our shareholders Increased Operating EBITDA2 Profitability1 Strong operating cash flows Continued Capex investment Margin $268.9m 60% $419.1m 8% FY20 Net Profit up 1% YoY in FY20 up 15% YoY in FY20 of Group Revenue
Slide 22: Focused global network
Focused global network Providing exposure to some of the world’s largest and fastest growing property markets v 11
Slide 23: Share Price Growth
Share Price Growth1 New record share price delivered in November 2020 1. REA Group share price for the period 1 Nov 2016 – 13 Nov 2020. 12
Slide 24: Owen Wilson
Owen Wilson Chief Executive Officer 13
Slide 25: Successfully responding to COVID-19
Successfully responding to COVID-19 Prioritising employee health and safety while responding rapidly to address customer and consumer needs Delivering new product Customer support Strong industry REA responded decisively measures launched innovations engagement Prioritised health and Digital Inspect
Slide 26: Delivering on our growth strategy
Delivering on our growth strategy Balancing operational discipline with long-term growth opportunities Largest audiences, most engaged consumers Our global network: AUSTRALIA ASIA Building the next generation marketplaces NORTH AMERICA Superior Unparalleled customer value data insights 15
Slide 27: realestate.com.au is Australia's no. 1 property site
realestate.com.au is Australia’s no. 1 property site1 Now reaching 60%2 of Australian +18 population each month and over 61%3 of people use realestate.com.au exclusively Monthly unique Total visits audience 90m 9.8m +18%4 +16%6 4 6 FY20 average monthly traffic to FY20 average monthly unique audience
Slide 28: Australia's market leading property app
Australia’s market leading property app1 realestate.com.au app fueling over 50% of buyer enquiries during FY202 App launches App downloads 10m +11%5 36.8m +25%3 3 5 10.1m Average monthly launches of Total downloads of 46.2m the realestate.com.au app realestate.com.au app 9.2m Jul-19 Aug-19 Sep-19 Oc
Slide 29: Personalised consumer experiences
Rapid delivery of product innovations • New digital inspections feature delivered 13.8m video views1 and 14m 3D tours1 • Integrated online auction feature launched with 10 leading providers Personalised Creating lifelong property relationships • 1.8m active REA members1 consumer • 1.39m consumers tr
Slide 30: Superior customer value
Driving quality seller leads • 1.6m monthly visits to Find Agents section1 • Agent Match vendor leads increased 19% YoY2 • 32% of Agent Match leads converted into listings3 Stand out from the competition Superior • 70,000 reviews for consumers to access objective third party Agent endorsement1 custo
Slide 31: Unparalleled data and insights
REA Insights launched • Leverages unparalled audience data and behavioural market intelligence • Provides unique view of consumer activity and demand for property Trusted property data leader Unparalled • Providing access to rich data and trusted automated valuations services data and insights • Ser
Slide 32: Next generation marketplaces
Australia’s #1 place for Rent • 18.9m monthly visits to Rent section1 • ~100k Tenant Verifications purchased2 • 1Form applications increased to 3.9m3 Helping Australians finance property Next • +1m total active users with financial profiles2 • 41% YoY growth in visits to content hub3 generation • 28
Slide 33: Leveraging unique capabilities across Asian portfolio
Leveraging unique capabilities across Asian portfolio Asia segment integral to REA Group’s long-term strategy • iProperty.com.my Malaysia's clear market leader, maintaining strong site leadership at 1.6x1 • Improved yield, customer acquisition and audience growth • Launched iProperty PRO, a mobile p
Slide 34: Expanding global footprint
Expanding global footprint Long term growth opportunities in large and growing markets REVENUE • REA announced binding agreement to acquire controlling interest in Elara on 29 Oct1 • Elara operates India’s fastest growing digital real estate business in terms of audience2 and is well positioned to b
Slide 35: Q1 FY21 Financial Results
Q1 FY21 Financial Results Our performance 1 2 2 REVENUE OPERATING EXPENSES EBITDA 195.7m 71.9m 123.8m -3% -18% +8% 1. Revenue is defined as revenue from property and online advertising and revenue from financial services less expenses from franchisee commissions as disclosed in the Consolidated Fina
Slide 36: Q1 FY21 Financial Results
Q1 FY21 Financial Results Our performance 1 Residential Listing Changes 30% 20% 10% 0% -10%Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 -20% -30% -40% -50% National Melbourne (metro) Sydney (metro) 1. REA Internal Data for the three-month periods ended 30 Jun 2019, 30 Sep 2019, 31 Dec 2019, 31 Mar 2020, 30 J
Slide 37: realestate.com.au extends leadership position
realestate.com.au extends leadership position Q1 FY21 saw another record audience performance with more Australians than ever visiting realestate.com.au Total visits1 Unique audience2 App launches3 Return frequency4 114m Average monthly traffic to 12m Average monthly unique audience 50m Average mont
Slide 38: Current trading
Current trading FY21 conditions remain uncertain with ongoing volatility • COVID-19 continues to create market volatility • REA Group will not implement price rises in FY21 • Despite COVID-19 impacts and ongoing uncertainty, buyer demand remains strong • Based on current market outlook, targeting no
Slide 39: REA Group's commitment to sustainable practices
REA Group’s commitment to sustainable practices Our Sustainability program focuses on the key pillars of ESG across Australian and Asian operations Environment Social Governance Climate Change policy Community investment Cyber security Established carbon footprint and Extended our multi-year Increas
Slide 40: Our people are at the heart of REA Group
Our people are at the heart of REA Group REA’s success in FY20 would not have been possible without the passion and dedication of our workforce 29
Slide 41: REA Group Executive Leadership Team
REA Group Executive Leadership Team Owen Wilson Janelle Hopkins Henry Ruiz Val Brown Melina Cruickshank Chief Executive Officer Chief Financial Officer CEO REA Group Asia Chief Consumer Chief Audience and Executive Director Chief Strategy and Product Officer Marketing Officer Customer Product Office
Slide 42: Hamish McLennan
Hamish McLennan Chairman REA Group 31
Slide 43: Items of Business
Items of Business 1 Financial Report, Directors’ Report, Auditor’s Report 2 Adoption of the Remuneration Report 3 Re-election of Nick Dowling as Director Grant of Performance Rights under the REA Long Term 4a Incentive Plan to the Chief Executive Officer Grant of Performance Rights under the Recover
Slide 44: Item 1
Item 1 Financial Report, Directors’ Report, Auditor’s Report To receive and consider the Company’s Financial Report, including the Financial Statements, and the reports of the Directors and Auditor for the year ended 30 June 2020. There is no vote for this item 33
Slide 45: Item 2
Item 2 Adoption of the Remuneration Report To consider and, if thought fit, pass the following resolution as an ordinary resolution: “That the Remuneration Report for the year ended 30 June 2020 be adopted.” For Open Usable Against Abstain Direct and Proxy Votes 114,058,800 58,723 1,167,254 2,579,00
Slide 46: Item 3
Item 3 Re-election of Nick Dowling as Director To consider and, if thought fit, pass the following resolution as an ordinary resolution: “That Nick Dowling, who retires in accordance with rule 7.1(f) of the Company’s Constitution, and being eligible for re-election, be re-elected as a Director of th
Slide 47: Item 4a
Item 4a Grant of Performance Rights under the REA Long Term Incentive Plan to the Chief Executive Officer To consider and, if thought fit, pass the following resolution as an ordinary resolution: “That approval is given for the grant of 7,093 performance rights under the REA Group long-term incentiv
Slide 48: Item 4b
Item 4b Grant of Performance Rights under the Recovery Incentive Plan to the Chief Executive Officer To consider and, if thought fit, pass the following resolution as an ordinary resolution: That approval is given for the grant of 12,541 performance rights under the REA Group recovery incentive plan
Slide 49: Thank-you for your attendance and participation
Thank-you for your attendance and participation Changing the way the world experiences property
Slide 50: Visit our investor site at rea-group.com
Visit our investor site at rea-group.com Investors: Graham Curtin General Manager Group Finance P: +61 3 8456 4288 Disclaimer: This presentation contains non-specific background information about REA E: ir@rea-group.com Group’s current activities. This information is a summary only. Investors and po