Slide 1: ASX Announcement: REA Group Investor Presentation HY2020
ASX Announcement 7 February 2020 REA Group Investor Presentation HY2020 For personal use only On behalf of REA Group Limited (ASX:REA) please find attached a half-year results presentation for the half- year ended 31 December 2019. The release of this announcement was authorised by Sarah Turner, Gen
Slide 2: Investor & Analyst presentation, Half-year results 31 December 2019
For personal use only REA Group Limited Investor & Analyst presentation Half-year results, 31 December 2019 Changing the way the world experiences property
Slide 3: Resilient performance in tough market conditions
Resilient performance in tough market conditions For personal use only Results & market update Progress on strategy HY 2020 highlights Resilient performance in challenging Individual, proactive & lifelong Audience market conditions1: consumer interactions • realestate.com.au #1 across all • Revenue2
Slide 4: Half year financial metrics
Half year financial metrics A resilient performance in challenging market conditions For personal use only -7% Flat +-6% 6% $272.1m 55.0¢ EBITDA2 Interim Dividend $ 440.3m Revenue1 -13% -13% $152.9m 116.1¢ NPAT3 EPS3 1. Revenue is defined as revenue from property and online advertising and revenue f
Slide 5: Changing the way the world experiences property
Changing the way the world experiences property For personal use only Delivering on our purpose and growth strategy Individual, proactive & lifelong consumer interactions Our global network: AUSTRALIA ASIA • Property • Finance • Services NORTH AM ERICA Deepest customer Richest content, data value dr
Slide 6: realestate.com.au is No.1 across all platforms
realestate.com.au is No. 1 across all platforms1 For personal use only The largest2 and most engaged2 audience of property seekers - record monthly visits of 92 million in October3 Total visits Monthly searches Monthly unique audience 84m 4 2.95x 4 103m 5 +14%5 8.8m 6 +7%6 Average monthly traffic to
Slide 7: Australia's market leading property app
Australia’s market leading property app1 For personal use only People are using our realestate.com.au app more than ever before – record monthly app launches of 38 million in October2 Hours on App App launches App downloads 2.6m 3 4.06x3 34.9m 4 +28%4 9.5m 5 +12%5 2.9x Average monthly hours spent on
Slide 8: Delivering a personalised consumer experience
Delivering a personalised consumer experience New technology and product innovation fueling growth For personal use only Lifelong property relationships Market Leading Innovation Australia’s #1 place for Rent • Active REA members increased 16% YoY1 • New consumer technology platforms and capabilitie
Slide 9: Strengthening our customer relationships
Strengthening our customer relationships Delivering real value and great leads For personal use only Delivering quality seller leads Business made easy for customers Prop20 unveiled • Growth in Property Showcase contracts sold1 • Over 9,600 customers now signed up to Ignite3 • National industry even
Slide 10: Providing value beyond property transactions
Providing value beyond property transactions Reaching more Australians in more ways For personal use only Evolving property finance strategy Rich market data & insights Partnering with powerful brands • $2.3 bn in digital home loan applications1 • Hometrack data integrated across all platforms and •
Slide 11: Our global footprint spans three continents
Our global footprint spans three continents Providing exposure to some of the world’s largest and fastest growing property markets For personal use only 10
Slide 12: Exciting long-term growth strategy across Asia
Exciting long-term growth strategy across Asia Leveraging REA Group’s capabilities to extend into Asia For personal use only Number one property sites in Malaysia, Hong Kong and Indonesia1 • Malaysia – 1.7X • Indonesia – 1.2x • Hong Kong – 1.04x Strong audience growth • Malaysia visits increased 51%
Slide 13: REA Group diversifying into global markets
REA Group diversifying into global markets Global investments delivering growth For personal use only • Revenue increased 2% to US$244 million1 • Q2 average monthly unique users increased 9% to ~59 million - mobile representing more than half of all unique users2 • New product features successfully
Slide 14: Our people and culture sets us apart
Our people and culture sets us apart REA Group recognised as one of Australia’s top 50 Best Places to Work For personal use only People are at the heart of REA Group • Over 1,500 talented people across Australia and Asia • Ranked #6 in Australia’s top 50 Best Places to Work by Great Place to Work Au
Slide 15: Financial Highlights
For personal use only Financial Highlights Half year results, 31 December 2019 14
Slide 16: Financial operating results
Financial operating results For personal use only Growth Growth Revenue ($m)1 Performance ($m) HY 2020 HY 2019 $m % HY20 440.3 Revenue 1 Australia 400.5 428.5 (28.0) (7%) HY19 469.2 Financial Services 12.6 14.7 (2.1) (14%) HY18 406.8 Asia 27.2 26.0 1.2 5% Group Revenue 440.3 469.2 (28.9) (6%) HY17 3
Slide 17: Unfavourable market conditions
Unfavourable market conditions For personal use only 1 Residential Listing Changes 0% -5% Residential listings -10% • Australian residential listings decreased 14%. The -15% overall decline was driven by declines of 17% in Sydney -20% and 16% Melbourne, two of the highest yielding cities. -25 % • Q2
Slide 18: Resilient performance in challenging market conditions
Resilient performance in challenging market conditions • Residential revenue decline of 6% reflects unfavourable market conditions, partially offset by For personal use only price changes taking effect from 1 July 2019 and continued growth in Premiere penetration, Property Group EBITDA ($m)1 Showcas
Slide 19: Delivering value for customers
Delivering value for customers For personal use only Residential Premium Listing Penetration (depth) Residential listing depth penetration • Improved product mix and further depth penetration notwithstanding challenging market conditions. • Record number of customers committed to depth products. • C
Slide 20: Continued international growth
Continued international growth Asia For personal use only • Revenue and EBITDA driven by strong revenue growth in Malaysia underpinned by improved customer acquisition and increased consumer +5% +11% audience. Malaysia has a leadership position of 1.7x the nearest competitor3. The ongoing disruption
Slide 21: Operating results
Operating results For personal use only HY20 revenue Group Operating Results Growth1 • Impacted by significant decline in Residential listings and Developer new project commencements. 30.0% • Resilient performance despite challenging market conditions. iProperty acquisition HY20 costs • Strong cost
Slide 22: Continued investment in growth
Continued investment in Capital Expenditure For personal use only Group Capital Expenditure 70.0 25 % Investment strategy 60.0 • The Group continues to invest to support growth 20% over the medium to long term. Investment focus is on 50.0 consumer experience plus new product delivery and supporting
Slide 23: Strong operating cash flows
Strong operating cash flows Strong operating cash flows enabled: For personal use only • Repayment of $70m of debt • Retained interim dividend payment of Group cash flow ($m) 55.0c despite decline in core NPAT • Continued investment in innovation and 494.6 (239.2) acquisitions Includes $70m net debt
Slide 24: Supplementary Information
For personal use only 1 Supplementary Information 23
Slide 25: Resilient performance in challenging market conditions
Resilient performance in challenging market conditions For personal use only Group Revenue ($m) 283.2 302.0 (6%) 68.4 (4%) 71.1 48.8 (12%) 55.4 27.2 12.6 5% (14%) 14.7 26.0 HY 2020 HY 2019 HY 2020 HY 2019 HY 2020 HY 2019 HY 2020 HY 2019 HY 2020 HY 2019 Aus: Residential Depth & Subs Aus: C omme rcia
Slide 26: Historical Revenue & EBITDA
Historical Revenue & EBITDA For personal use only Revenue, EBITDA and Margin (core operations)1 1,000 60% 900 800 874.9 50% 807.7 700 40% 600 671.2 500 579.1 30% 501.2 400 463.7 440.3 380.9 20% 300 327.8 200 267.2 10% 100 - 0% FY 2 016 FY 2 017 FY 2 018 FY 2 019 HY 2020 EBITDA Revenue EBITDA margi n
Slide 27: Financial comparatives
Financial comparatives For personal use only 1 Financial Core Operations Statements HY 2016 HY 2017 HY 2018 HY 2019 HY 2020 HY 2020 Group results $m Growth $m Growth $m Growth $m Growth $m Growth $m Total revenue 289.8 21% 337.3 16% 406.8 21% 469.2 15% 440.3 (6%) 440.3 Total operating income 289.8 2
Slide 28: Cash flow reconciliation
Cash flow reconciliation For personal use only Cash flow reconciliation (#039;m) HY 2020 HY 2019 Growth EBITDA1 267.2 289.1 (8%) Working capital movement (15.9) (31.5) 50% Net interest paid (2.6) (5.3) 51% Income taxes paid (88.8) (75.7) (17%) Capital expenditure (34.5) (31.9) (8%) Other 3.2 0.4 >100%
Slide 29: Visit our investor site at rea-group.com
For personal use only Visit our investor site at rea-group.com Investors: Graham Curtin Executive Manager Group Finance P: +61 3 8456 4288 Disclaimer: This presentation contains non-specific background information E: ir@rea-group.com about REA Group’s current activities. This information is a summar