Rea Group Ltd · ASX:REA

Rea — FY2011 Earnings Presentation

28 slides from Rea's earnings presentation, Aug 18, 2011

1. Slide 1: REA Group Ltd FY11 Analyst and Investor Presentation

   For personal use only REA Group Ltd FY11 – Analyst and Investor Presentation 18th August 2011 www.rea-group.com Commercial in Confidence

2. Slide 2: Summary

   For personal use only Summary Commercial in Confidence

3. Slide 3: REA Group – Market Leaders in Growth & Innovation

   REA Group – Market Leaders in Growth & Innovation For personal use only REA operates 13 property websites around the world We aim to be globally known as the leading, most innovative digital marketing company for real estate, and the first choice for both advertising and consumers in the markets we

4. Slide 4: REA continued to improve performance and growth over FY10

   REA continued to improve performance and growth over FY10 For personal use only  Revenue up 23% to $238.4 million  EBIT up 31% to $92.7million  NPAT up 37% to $67.5 million  Earnings Per Share up 36% to 53 cents AU$ million FY 2010 FY 2011 Growth YOY Revenue 194,335 238,401 23% EBITDA 77,987 103

5. Slide 5: Key Highlights of Our Performance in FY11

   Key Highlights of Our Performance in FY11 For personal use only (1) Continued Profitable Growth REA Overperformance of ASX 200 Index 300,000 45% 150 250,000 140 40% 130 200,000 35% 120 150,000 110 30% 100,000 100 90 25% 50,000 80 0 20% FY 2007 FY 2008 FY 2009 FY 2010 FY2011 REA ASX200 Revenue EBITDA

6. Slide 6: REA's Business Strategy

   REA’s Business Strategy For personal use only SEARCH / ENTERTAIN FIND EVALUATE ENGAGE WE HELP SHARE CONSUMERS WIN NEW WE HELP PROPERTY WE HELP AGENTS PROVABLE LEADS OWNERS MOVE BUILD THEIR COST LISTINGS PREDICTABLE RENT ROLL EFFECTIVE 6 Commercial in Confidence

7. Slide 7: Innovation and Branding

   For personal use only Innovation and Branding Commercial in Confidence

8. Slide 8: Significant innovation across the business in FY11

   Significant innovation across the business in FY11 For personal use only We leveraged our new technology platform to rebuild and re-launch state-of-the-art property websites for: ™ 8 Commercial in Confidence

9. Slide 9: Significant innovation across the business in FY11 (mobile)

   Significant innovation across the business in FY11 For personal use only We are making significant inroads globally on our mobile platform: ® ™ ® 9 Commercial in Confidence

10. Slide 10: REA reinforced its Branding position with advertising and social media

    REA reinforced its Branding position with advertising and social media. For personal use only An Autumn advertising campaign (print, outdoor and Through improved content, promotions, competitions radio) ran in the key markets of Sydney and regional and monitoring we have grown our Facebook fan page

11. Slide 11: Australian Business

    For personal use only Australian Business Commercial in Confidence

12. Slide 12: Australian Growth Drivers

    Australian Growth Drivers For personal use only Paying Agents- Australia June 2011 ARPA (Average Revenue Per Agent) - Australia 9,536 10,000 1,600 15% YOY 1,400 Growth 8,000 $1,456 1,200 6,000 1,000 800 4,000 600 2,000 400 200 0 0 Revenue: By Customer Type By Brand By Type (All Revenue) By Type (Res

13. Slide 13: Realestate.com.au continues to lead the Residential market

    Realestate.com.au continues to lead the Residential market For personal use only Total Unique Browsers Total Time (Hours) Source: Nielsen Online, Market Intelligence, Total Traffic for Audited Sites Source: Nielsen Online, Market Intelligence, Total Traffic for Audited Sites 8,000,000 3,500,000 7,00

14. Slide 14: The REA Media business continues to break new ground

    The REA Media business continues to break new ground For personal use only  Media revenues up by 26% to $52m in FY11  4th largest digital display publisher in Australia by revenue  One of REA’s Key Growth Engines Source: Nielsen Market Intelligence, REA Group New Media Centre website Banner Adver

15. Slide 15: Realcommercial.com.au gap increases against our competition

    Realcommerical.com.au gap increases against our competition For personal use only Total Unique Browsers Total Time (Hours) Source: Nielsen Online, Market Intelligence, Total Traffic for Audited Sites Source: Nielsen Online, Market Intelligence, Total Traffic for Audited Sites 800,000 140,000 700,000

16. Slide 16: International Businesses

    For personal use only International Businesses Commercial in Confidence

17. Slide 17: Casa.it goes from strength to strength

    Casa.it goes from strength to strength For personal use only Total Unique Audience Paying Agents 2,000 Source: Nielsen Online, NetView, Jul 2011 14,000 1,800 16% YOY Growth 12,000 12,377 1,600 1,400 10,000 1,200 8,000 1,000 800 6,000 600 4,000 400 2,000 200 0 0 Casa.it Immobiliare.it Revenue Split F

18. Slide 18: Casa.it is the place for online advertising spend

    Casa.it is the place for online advertising spend For personal use only Campaigns on National & Local TV Local Online Publications National Sites & Portals 18 Commercial in Confidence

19. Slide 19: Casa.it has established strong Social Media and Viral Campaigns

    Casa.it has established strong Social Media and Viral Campaigns For personal use only Viral Campaign Granny Lea Tricks 1 (1) 32,000 fans Channel Most 4,800 Subscribed (2) comments (1) & likes 3 (2) Over 5.5m views Over 3m post views (1) 400,000 video Channel in Humor (1) shares Category (2) (1) Sour

20. Slide 20: Strong performance across our other international businesses

    Strong performance across our other international businesses For personal use only Luxembourg Hong Kong  #1 in Greater Luxembourg  #1 English-language property site in Hong Kong  Growing in France  Simplified Chinese language site launched in June 2011  New Mobile application launched  New Mob

21. Slide 21: Financial Information

    For personal use only Financial Information Commercial in Confidence

22. Slide 22: REA Group's Strong Growth Record

    REA Group’s Strong Growth Record For personal use only 22 Commercial in Confidence

23. Slide 23: REA Group's EBITDA Continues to Strengthen

    REA Group’s EBITDA Continues to Strengthen For personal use only COUNTRY PERFORMANCE Revenue EBITDA Margin in #039;000 FY 2011 Australia 213,595 112,086 52%* Italy 16,599 (3,484) (21%) Other Overseas countries 8,207 1,034 13% Corporate overhead (6,455) Total 238,401 103,181 43% FY 2010 Australia 178,22

24. Slide 24: Product Examples

    For personal use only Product Examples Commercial in Confidence

25. Slide 25: Australian Product Summary

    Australian Product Summary For personal use only Product Realestate.com.au Realcommercial.com.au Subscriptions Standard Standard Platinum Platinum Listing Products Feature Property Feature Property – Elite + eBrochure Feature Property – Elite Premiere Feature Property – Enhanced Pay Per Listing Pay

26. Slide 26: Depth Product Examples

    Depth Product Examples For personal use only Premiere Property and Feature Property Feature Agent Premiere Property Listing 26 Commercial in Confidence

27. Slide 27: Value to Customers determined by Levels of Consumer Engagement

    Value to Customers determined by “Levels of Consumer Engagement” For personal use only REA provides the agent with online reporting detailing 22 different methods that the customer interacts with a listing Views PROPERTY PROPERTY PROPERTY MAP Interactions that indicate an initial DETAILS PAGES CAROU

28. Slide 28: Disclaimer

    Disclaimer For personal use only 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 own independent advice

REA Group — FY2011 Earnings Presentation on 6ix