Slide 1: REA Group Investor & Analyst Presentation H1 FY22
ASX Announcement 4 February 2022 REA Group Investor & Analyst Presentation H1 FY22 On behalf of REA Group Ltd (ASX:REA) please find attached a half-year results presentation for the half-year ended 31 December 2021. -ends- For further information, please contact: REA Group Ltd Investors: REA Group L
Slide 2: Half-year results
REA Group Ltd Half-year results 31 December, 2021 Changing the way the world experiences property
Slide 3: Agenda
Agenda 01. 02. 03. Business Financial Q&A highlights results update session
Slide 4: Business Highlights
Business Highlights Owen Wilson Chief Executive Officer
Slide 5: Exceptional H1 FY22 core financial results delivered
Exceptional H1 FY22 core financial results delivered Revenue1, 2 EBITDA1, 3 Net profit after tax1, 4 Reported net profit after tax4, 5 $590m $368m $226m $221m +37% +27% +31% +28% +25% excl. acquisitions6 +27% excl. acquisitions6 +33% excl. acquisitions6 +37% excl. acquisitions6 62% 75.0¢ +27% $1.71
Slide 6: Strong momentum behind key priorities
Strong momentum behind key priorities Consumer highlights Customer highlights Strategic investments 12.6m unique audience 1 +42% YoY 4 New audience records delivered New buyer enquiry records delivered Financial Services gaining momentum realestate.com.au remains Australia’s #1 property Enquiries at
Slide 7: Strategy supporting ongoing growth
Strategy supporting ongoing growth Largest audiences, Consumer Experiences most engaged consumers Customer Value Property Data Building the next generation Financial Services marketplaces Global Superior Unparalleled customer value data insights 6
Slide 8: Focused strategic priorities driving growth
Focused strategic priorities driving growth Audience & Customer Value Data & Insights Financial Services Global Consumer Helping customers win Data underpins REA’s Making it easy to find and REA India well positioned to Australia’s largest and more business through business, fueling finance property
Slide 9: Australia's #1 address in property
Australia’s #1 address in property Total visits2 Unique audience4 App launches6 128.8m Average monthly traffic to 12.6m Average monthly unique audience to 59m Average monthly launches of realestate.com.au on all platforms realestate.com.au on all platforms realestate.com.au app Record visits in Octo
Slide 10: Australia's 7th largest online brand
Top 10 Online Brands December 20211 Rank Brand Unique Audience 1 Google 20.3m 2 Facebook 17.8m Australia’s 3 MSN/Outlook/Bing/Skype 14.8m 4 Instagram 13.6m 5 Microsoft 13.3m 7th largest 6 ABC Online Network 12.5m 7 12.1m online brand 8 9 10 PayPal news.com.au Amazon 12.0m 11.4m 11.4m Reaching almost
Slide 11: Personalised member experiences driving deeper engagement and high value leads
Personalised member experiences driving deeper engagement and high value leads Member growth: Unlocking greater value in our audience to drive membership growth. Monthly active members up 24% YoY1 Members ready to act: Engaging and activating members, results in action when the time is right. Right
Slide 12: Integrated products and services connecting customers with more buyers, sellers and renters
Integrated products and services connecting customers with more buyers, sellers and renters Agency Services: providing customers with leading digital services aimed at streamlining their workflows. Connect engagement up 80% in Q21 Property Advertising: offering customers a Listing Upgrades • Social
Slide 13: Data underpins REA's business, fueling unique experiences
Data underpins REA’s business, fueling unique experiences Insights for Insights for Consumers Customers Property Data Powerhouse Consumer Behaviour Industry Data Insights for Connect Customers Property Data (CMA) Market Data Mortgage Insights for Choice Consumers brokers Bank tools & insights 12
Slide 14: Strong Financial Services result with continued innovation
Strong Financial Services result with continued innovation Record submissions and Pleasing ongoing broker settlements recruitment Submissions +25% YoY and +7% YoY2 increase in broker settlements +39%1, driven by network driven by attractive value broker recruitment, productivity proposition. improve
Slide 15: REA India well positioned to become India's #1 portal
REA India well positioned to Site visits (m)5 14.6 become India’s #1 portal 9.5 8.8 13.6 13.4 10.8 4.9 2.4 Strong audience & market Exceptional app Housing 99Acres MagicBricks NoBroker share growth downloads 55% YoY increase in 88% YoY increase in app Housing.com site visits1 and #1 site downloads4,
Slide 16: PropertyGuru provides exposure to large and growing markets
#1 in 4 priority markets PropertyGuru provides exposure Market position Brands Engagement Market to large and growing markets Share (%)9 Lead vs closest peer (x) Singapore 81% #1 5x closest peer Strong macro tailwinds in Large TAM of ~US$8.1bn4 SE Asia Core TAM of US$2.3bn4 from listings marketplace
Slide 17: Move delivering robust growth
Move delivering robust growth Revenue (US$m)4 +15% CAGR Revenue ($m)4 +19% YoY U.S. real estate market1 $641 • 2021 existing home sales of 6.1m were up 8.5% YoY, $452 $484 $473 $348 and up 15% from 2019 $357 $394 $282 $293 • Median existing home price of US$358k in December 2021 was up 16% YoY (US$3
Slide 18: Supporting a sustainable future
Supporting a sustainable future Creating positive change through responsible business practices Environment Social Governance Strong progress made on Highly engaged workforce Partnering with industry leaders environmental initiatives Overall employee engagement of Joined forces with the Tech 87%, wi
Slide 19: Financial Results Update
Financial Results Update Janelle Hopkins Chief Financial Officer
Slide 20: Core financial operating results
Core financial operating results H1 FY22 H1 FY22 H1 FY22 H1 FY21 Growth Growth excl. Core performance1, 2 ($m) Excl. acquisitions Revenue1, 3 acquisitions Acquisitions Total Total % % H1 FY22 590.4 Revenue3 H1 FY21 430.4 Australia – Property & Online Advertising4 524.6 - 524.6 418.7 25% 25% H1 FY20
Slide 21: Statutory (reported 4D) vs core results
Statutory (reported 4D) vs core results Statutory Significant Core Significant items3 H1 FY22 ($m) (reported 4D) items3 results Group revenue1 586.9 3.5 590.4 • Revenue o Trail commission adjustment for broker Group operating expenses (225.3) 0.7 (224.6) remuneration alignment. • Operating expenses
Slide 22: Residential
Residential Strong growth in Residential revenue driven by listings, depth, price rise and add-ons Residential revenue ($m) Residential national new Buy listings YoY change1 100% 80% 60% 40% 31% 54% 20% 387 - 22% 296 6% 8% 11% (20%) -4% 0% (40%) -14% -13% -15% (60%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2
Slide 23: Continued growth in depth penetration
Continued growth in depth penetration Record Premiere and overall depth penetration Residential buy listings penetration (depth)1 Record Residential buy listing depth penetration • The strong recontracting effort in Q4 FY21 continues to deliver upside • H1 has seen record penetration across all stat
Slide 24: Commercial & Developer Media, Data & Other
Commercial & Developer Media, Data & Other Growth in Commercial and Developer despite the Strong 23% growth in Data revenues negative impact of lockdowns Commercial & Developer revenue Developer project launches Media, Data & Other revenue ($m) YoY change ($m) 7% 68 63 44% 14% 12% 14% 49 3% -10% 43
Slide 25: Financial Services
Financial Services Continued strength in settlements and recruitment Financial Services revenue1, 2 ($m) Settlements ($bn)2 +39% YoY 24%2 13.0 33 10.6 41 9.3 21 Mortgage Choice pro forma H1 FY21 H2 FY21 H1 FY22 Financial Services Brokers2 YoY 12 +7% H1 FY21 H1 FY22 978 945 917 • Financial Services r
Slide 26: India
India Growth driven by Housing.com’s core business and adjacency products including Housing Edge India revenue1 ($m) India EBITDA ($m) Housing.com audience3 (m) +55% YoY 24 H1 FY21 H1 FY22 Pro forma Adjacency 13 125%1 6 11 Pro forma Property & (10) 8 11 18 Advertising (15) 1 5 5 Adjacency 10 H1 H2 H
Slide 27: Equity-accounted associates
Equity-accounted associates Decrease in share of associates profit due to investment in PropertyGuru and continued investment by Move, Inc. Move, Inc.1 ($m) PropertyGuru2, 3 ($m) Other4 ($m) H1 FY21 H1 FY22 H1 FY21 H1 FY22 9 (2) 8 (4) (4) H1 FY21 H1 FY22 • Revenue up 19% to US$349m driven by • Contr
Slide 28: Positive operating jaws
Positive operating jaws Cost growth reflects continued investment in strategic initiatives and reduced operating costs in prior period Group operating results growth1 Operational expenses1 ($m) (excl. acquisitions)2 225 15 Mortgage Choice 25% 39 REA India 11% 17% 168 1712 8% -13% +17% 9 13% 18 146 1
Slide 29: Continued investment in strategic initiatives
Continued investment in strategic initiatives Group capital expenditure1 ($m) Depreciation and amortisation1 ($m) 90.0 25% FY 21 H1 FY22 FY 22 80.0 REA Group ($m) Actual Actual Forecast 70.0 20% Excluding acquisitions Office fit out costs 60.0 Core depreciation & amortisation2 69 30 60 - 64 15% Depr
Slide 30: Strong cash position
Strong cash position Strong operating cash flows • Operating cash flow of $213m, with Group cash flow ($m)1 free cash flow of $169m - 645.1 (327.1) • Higher income tax payments in prior period ($119m) following the temporary deferral of FY20 instalments as a result of COVID-19 Strong liquidity posit
Slide 31: Current trading
Current trading • Residential property market conditions remain positive, with high levels of buyer enquiry underpinned by increased supply. • January National residential listings were up 14% YoY, with Sydney listings increasing 19% and Melbourne up 5%. • YoY growth rates are expected to slow in th
Slide 32: Q&A
Q&A Owen Wilson Chief Executive Officer Janelle Hopkins Chief Financial Officer
Slide 33: Supplementary Information
Supplementary Information Where 12 million Australians buy, rent & sell
Slide 34: Core vs. reported reconciliation
Core vs. reported reconciliation Growth Core vs. reported reconciliation ($m) H1 FY22 H1 FY21 % Core operating income 590.4 430.4 37% Trail commission integration adjustment (3.5) - n/a Reported operating income 586.9 430.4 36% Trail commission integration adjustment • Trail commission adjustment fo
Slide 35: EBITDA drivers and revenue breakdown
EBITDA drivers and revenue breakdown Group EBITDA ($m)1, 2 24.7 5.9 2.9 3.9 91.7 4.4 14.8 11.9 3.4 368.0 Revenue category1, 3 ($m) H1 FY22 H1 FY21 Growth Australia Depth revenue 427.2 333.5 28% 290.2 Subscription revenue 27.7 25.4 9% Media, Data & Other 48.8 42.8 14% Financial Services 41.3 11.7 >10
Slide 36: Australia Property & Online Advertising segment reconciliation (Myfun/Legacy Asia)
Australia Property & Online Advertising (P&OA) segment reconciliation (Myfun/Legacy Asia) Australia Australia P&OA H1 FY221 P&OA Asia3 (restated) Segment operating income Total segment operating income Inter-segment operating income 503.7 - 21.4 (0.5) 525.1 (0.5) Change in operating segment presenta
Slide 37: Financial Services: pro forma
Financial Services: pro forma REA Financial Services Combined pro forma4 H1 FY21 Mortgage Choice3 (excl. Mortgage Choice) REA Financial Services H1 FY21 and FY21 pro forma earnings including Mortgage Choice Revenue1 $11.7m $21.1m $32.8m • While Mortgage Choice earnings are Opex ($7.3m) ($12.4m) ($19
Slide 38: Financial comparatives: half year
Financial comparatives: half year Core Operations1 Reported H1 FY18 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY22 Group results $m Growth $m Growth $m Growth $m Growth $m Growth $m Total revenue2 406.8 21% 469.2 15% 440.3 (6%) 430.4 (2%) 590.4 37% 586.9 Total operating income 406.8 21% 469.2 15% 440.3 (6%
Slide 39: Financial comparatives: full year
Financial comparatives: full year Core Operations1 Reported FY18 FY19 FY20 FY21 FY21 Group results $m Growth $m Growth $m Growth $m Growth $m Total revenue2 807.7 20% 874.9 8% 820.3 (6%) 927.8 13% 927.8 Total operating income 807.7 20% 874.9 8% 820.3 (6%) 927.8 13% 927.8 Operating expenses (336.2) 1
Slide 40: Cash flow reconciliation
Cash flow reconciliation Cash flow reconciliation ($m) H1 FY22 H1 FY21 Growth Free cash flow EBITDA1 368.0 290.2 27% • Higher working capital movement driven by Working capital movement (44.3) (30.6) (45%) increased payments relating to payroll, Net interest paid (2.8) (1.7) (64%) transaction costs
Slide 41: Glossary
Glossary EBITDA Earnings before Interest, Tax, Depreciation and Amortisation including share of associates and joint ventures. Financial results from Reported results adjusted for significant non-recurring items such as gain/loss on acquisitions, core operations disposals and discontinued operations
Slide 42: Visit our investor site at rea-group.com
Visit our investor site at rea-group.com Investors: Alice Bennett Executive Manager Investor Relations M: +61 409 037 726 Disclaimer: This presentation contains non-specific background information E: ir@rea-group.com about REA Group’s current activities. This information is a summary only. Investors