REA Group Ltd HY2012 Analyst and Investor Presentation
2 REA Group Market Leaders in Growth & Innovation REA Group operates 13 property websites around the world We aim to be globally known as the leading, most innovative digital marketing company for property, and the first choice for agents, advertisers and consumers in the markets we serve REA Group cements its position as a diversified media and advertising business - the Group s continued investment in technology and innovation has been instrumental to the uplift in brand and financial performance
3 Key Highlights of Our Performance in HY20121 Revenue growth at 18% for the Group Continued EBITDA growth across the Group at 24% Revenue growth continues in core Australian market at 16% Revenue growth of 52% for Italy in local currency and positive EBITDA Property Listings up by 4% to 1.6m for the Group Cash balance grows by 11% to $152m compared to June 2011; growth of 46% compared to December 2011 Paying agents for the Group increased to 22,322 from 22,172 in December 2010 Acquisition of Casa minority interest in December 2011, now at 100% ownership 1. This is to be read in conjunction with REA Group Half year Financial Report for the period ended 31 December 2011
4 HY2012 Performance remains strong in a weaker market Source: REA Group and Yahoo Finance
{Australian Business}
6 Australian Market Continues to Deliver * Excludes Media, Hub and Home Guru 1. As at December 2011 2. Source: Nielsen online intelligence
7 Australian Growth Drivers Key Facts #1 Australian residential real estate site Residential agent revenues up by 11% to $74.4m Residential depth revenues 48% of agent revenues (December 2010: 46%) Release of new products: Diamond Subscriptions, Highlight Paying agents offices as at 31 December 2011 of 9,324, a slight decrease on prior period (9,688) mainly due to the contraction in Queensland Agency numbers Source: REA Group
8 REA Media Key Metrics Media and Developer revenues up by 33% to $32.7m compared to December 2010 Top ten publisher in agency bookings * One of REA s Key Growth Engines Key customers / products 8.6 million Australians intend to renovate or improve their home in the next 12 months^ 93% of people intending to renovate their home in next 12 months access the internet daily^ Internet is the most useful source of information for home improvement^ Home Ideas is a new product for consumers interested in renovating their home or just looking for inspiration. This new product provides advertising opportunities for those customers outside of REA's traditional real estate agent base. * SMI ^ Nielsen Market Intelligence, REA Group
9 A significant lead in reach & engagement 1. Nielsen Online Ratings, Domestic Audience, November 2011. 2. Nielsen Online Market Intelligence, Total Traffic, August 2011. 3. October 2011. Total Unique Browsers (000's) x Average Session Duration (mins:secs) x UB Frequency (no. of Return visits) = Total Time on site (000's mins) 4. October 2011
{International Business}
11 Casa.it goes from strength to strength 1. As at December 2011 2. Omniture Site Catalyst, December 2011
12 Strong performance across our other international businesses athome.lu #1 in Greater Luxembourg Paying agents growing in France Overall ARPA decrease due to lower ARPA rate in France vs Luxembourg squarefoot.com.hk Excellent online growth Consolidations of print publications ARPA decrease due to lower cost of online vs print
{Financial Summary}
REA Group s Strong Growth Record 14
15 REA Group s EBITDA Continues to Strengthen * Assuming the same rate of corporate overhead as FY10 would see EBITDA margin expansion to 53% for Australia
{Innovation and Branding}
17 Innovation continues in HY2012 With a mobile first approach Diamond Subscription Agent website Advertising Upgrades realestate.com.au app for ipad and app for iphone
18 Mobile Snapshot - Australia Consumers engage with mobiles more often iphone app is accessed 3.3 x more often than our website Consumers access content on multiple devices 86% of our m.site users also use our website 1 65% of our app users also use our website 1 Mobile is an increasingly important channel More than 24% of total page views are now from mobile devices m.site traffic has increased by a factor of 4.5 since June 2010 Our customers love it Consistently in top 10 lifestyle apps in itunes Store 2 3.5 star rating 2 * Unique download numbers - Ignores upgrade downloads 1. Survey data 2. As at 16 January 2012
19 Developing global branding Corporate sponsorship of Cadel Evans Agent Marketing Centre Dream a Little campaign Facebook post realestate.com.au Twitter page
{Product Summary} 20
21 Product Summary realestate.com.au Highlight Property listing Diamond Subscription Agent website
22 Residential Product Examples Premiere Property listing Feature Agent Premiere Property details page
23 Commerical Product Examples Elite PLUS, Elite and Enhanced listings Professional Agent Elite PLUS details page
24 Disclaimer 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. This material is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of a particular investor. These should be considered when deciding if a particular investment is appropriate.