Rea Group Ltd · ASX:REA
Rea — H1 FY2019 Earnings Presentation
25 slides from Rea's earnings presentation, Feb 8, 2019
Slide 1: Investor & Analyst presentation, Half-year results, 31 December 2018
‘Stop looking at all the places ar nd Start looking at all the right places Cotes on 182782 REA Group Limited Investor & Analyst presentation Half-year results, 31 December 2018 “Change the way the world experiences property"
Slide 2: Our performance: Half-year financial metrics
Our performance Half-year financial metrics Interim Dividend 55.0¢ +17 rom property and online advertising and come. 2, Finan .cquisitions by asso: osts relating to acquisitions a nsolidated Interim sideration, ontingent REA Group
Slide 3: realestate.com.au is the #1 place for property
realestate.com.au is the #1 place for property The largest and most engaged audience bd ene] Total visits App launches Time on app App downloads 73.4m 19% growth 17% growth 16% growth Average monthly traffic to Average monthly launches of Average monthly total Downloads of realestate.com.au realesta
Slide 4: Growing our business: Delivering on our strategy
Growing our business Delivering on our strategy Change the way the world experiences property Property Advertising O The online advertising of property remains at the centre of our business Lifestyle & Financial Services (ae Connecting with people throughout their entire property journey & Extending
Slide 5: Individual. Proactive. Lifelong. Engaging with our consumers
Individual. Proactive. Lifelong. Engaging with our consumers We recognise the individual needs of our consumers are ongoing. Our focus is on delivering highly personalised experiences to consumers at every step of their property journey. ifes: “ AGENT MATCH Agent ratings Ptadmades Lifestyle G a Agen
Slide 6: Enhancing our consumer experience
Individual. Proactive. Lifelong. Enhancing our consumer experience 6 (— ° >) @ resestatecomau (0) My property Property Value rs] , @mscbie cows varemoe OD A faster experience Everything in one place Helping renters * Completed a large technology * Introduced Travel Time into map * Launched Tenant Ve
Slide 7: For personal use only
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Slide 9: Global network: Our footprint spans three continents
Global network Our footprint soans three continents REA's long-term growth strategy looks to extend our expertise to large and growing markets. We have businesses in Australia, Asia and North America @ realestatecomau’ PR propricencom LF realtor.conr - “_ meve realestate.com.au ®HOUSING.com 9 iPrope
Slide 10: For personal use only
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Slide 11: For personal use only
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Slide 12: Financial Highlights
Financial Highlights Half-year results, 31 December 2018
Slide 13: Financial operating results
Financial operating results Performance ($m) HY 2019 — HY 2018 _ Growth Revenue’ Australia 428.5 370.8 16% Financial Services 14.7 13.2 11% Asia 26.0 22.8 14% Group Revenue 469.2 406.8 15% EBITDA Australia 293.2 247.7 18% Financial Services 5.8 5.9 (2%) Asia 5.7 45 27% Associates & Joint Ventures (4
Slide 14: Unfavourable market conditions
Unfavourable market conditions Residential Listing Changes! Q418 Qi1i9 Q219 ——National =—=Melbourne ===Sydney Dwelling Commencements? oanv DR DDT AVM TH HR WACO ATM ScoCRCDOCCOFOCOa HA AAA A ANN os ede OSE HoaoOoRERnY RE eoaHeEE 5 5 7 8 2 5 5 3 § g 5 6 So 3 s BzFzsSBFAZFSGARAPHRHQFSHAHGZES Private H
Slide 15: Strong EBITDA results
Strong EBITDA results Continued success despite challenging market conditions. Group EBITDA ($m)! + — Residential revenue growth reflects price 320 changes from July and the continued success of Premiere All, despite a decline in listings. = * Developer and Commercial revenue growth due to an increa
Slide 16: Listing depth strategy driving revenue growth
Listing depth strategy driving revenue growth HY 2019 Group Revenue ($m) Aus: Residential Depth & Subs 302.0 BiRMieyA Aus: Commercial & Developer 6 Depth & Subs +10% Aus: Media, Data & Other Ga +19% Aus: Financial Services [14.7 +11% Asia J) 26.0 +14% Aus: HY 2018 Group Revenue ($m) Commercial & Dev
Slide 17: Delivering value for customers
Delivering value for customers Residential Premium Listing Penetration (depth) . oo, . Residential listing depth penetration + Improved product mix and further depth penetration. * Continued success of highest yielding listing product ‘Premiere’ demonstrating the superior returns to agents and vendo
Slide 18: Continued international growth
Continued international growth Asia Revenue $26.0m 4+14% Share of Losses PropTiger Asia EBITDAt S$5.7m +27% Share of Losses Move Asia Revenue and EBITDA growth due to myfun & Malaysia despite challenging market conditions across the region. Further investment in marketing, talent & product innovatio
Slide 19: Operating results & capital expenditure
Operating results & capital expenditure Group Operating Results Growth 30% Property Acquisition 4 20% 10% FY 2015 FY 2016 FY 2017 FY 2018 Revenue growth —==Operational expenses growth For FY19 the target is for the rate of revenue growth to exceed the rate of cost growth for both the second half and
Slide 20: Cash flow for the half-year
Cash flow for the half-year Reduction in cash position due to repayment of debt 7O0 - 600 Group cash flow ($m) Opening cash balance (5.3) ca) Le (31.9) 122.4) (6.0) Receipts from Payments to Taxes paid Net interest paid Receipt for Capital Repayment of Payment of Other Closing cash customers supplie
Slide 21: Supplementary Information
this is the place realestate Supplementary Information Source: 1, Nielsen Digital Content Ratings, (Jul 2018 to Dec 2018), comparing average monthly sessions of realestate.com au to nearest competitor, tagged, People 2+, text, computer & mobile REA Group
Slide 22: Historical Revenue & EBITDA
Historical Revenue & EBITDA Revenue, EBITDA and Margin (core operations)* 900 sare sere 60% woof eee ee eee eens 700 50% 600 40% 500 400 30% 300 20% 200 10% 100 0 0% FY15 FY16 FY18 HY19 MMEEBITDA (Sm) mmmRevenue (Sm) = -EBITDA% 1. Financial res ction costs relating t and impairment s from core opera
Slide 23: Financial comparatives
Financial comparatives Core Operations! HY2017 Growth HY2015 Growth HY2016 Growth HY2018 Growth HY2019 Growth sm Greup Results Sm $m $m $m Financial Statements HY2019 $m Total Revenue 239.3 26% 289.8 21% 337.3 16% 406.8 21% 469.2 15% 469.2 Total Operating Income 239.3 26% 289.8 21% 337.3 16% 406.8 2
Slide 24: Cash flow reconciliation
Cash flow reconciliation Cash flow reconciliation ($m) HY 2019 HY 2018 Growth EBITDAY 289.1 242.8 19% Working capital movement (31.5) (24.0) (31%) Net interest paid (5.3) (2.7) (95%) Income taxes paid (75.7) (72.4) (5%) Capital expenditure (31.9) (28.0) (14%) Other 0.4 41 nim Free cash flow 145.1 11
Slide 25: Disclaimer
For personal use only 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 provide advice to investo