REA Group Ltd 1HY11 - Analyst and Investor Presentation February 2011 www.rea-group.com
REA Group Market Leader 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 advertisers and consumers in the markets we serve 2
Key Highlights of Our Performance for First Half 2011 Continued Profitable Growth REA Overperformance of ASX 200 Index (1) 140 130 120 110 100 90 80 REA ASX200 1. Source: Yahoo Finance - http://au.finance.yahoo.com/, Jan 2011 3
Significant Levels of Innovation Continue Across the Business to Drive Performance (1HY2011 v 1HY2010) 25% Revenue growth and 28% EBITDA growth Property listings up by 17% to 1.56m Paying Agents up by 14% to 22,172 for the Group 22% Revenue growth in the core market of Australia 135% Revenue growth in Italy 26% increase in Paying Agents in Italy Innovation in Marketing recognised by Industry Continued IT innovation : new casa.it website New Homes tab on realestate.com.au iphone Application launched Continued Outperformance of the ASX 200 Increased return to shareholders Half Year Dividend Carbon Neutral and Oekom Accredited (1) 1. Source: Yahoo Finance - http://au.finance.yahoo.com/, Jan 2011 for calendar year 2010 4
Brand and Country Performance 5
Australian Revenue Growth of 22% to $103m Dec 10 9,688 16% YOY Growth 6
realestate.com.au and realcommerical.com.au Continue to Lead the Australian Market Gap > 4m (1) (1) Key Facts: Key Facts: #1 Australian residential real estate site #1 Australian commercial real estate site Residential agent revenues up by 21% to $78.5m Commercial Agent revenues up by 23% to $11.2m Residential depth revenues 44% of agent revenues (2010: 39%) Paying Subscriptions increase to 1478 (10% growth) Paying Subscriptions increase to 8950 (4% growth) Realcommercial.com.au had 3.9 times more Unique Browsers that its Partnerships with ebay and Yahoo7! nearest competitor in December 2010 (increasing from 2.7 times more in UBs increased to a record 7.5m increasing the gap with Domain by 22.8% (2) Dec 2009) (2) on prior month (Jan 2011) 1. Comparison period is 1HY2011 to 1HY2010 unless otherwise indicated 2. Source: Nielsen Online, Market Intelligence, Total Traffic for Audited Sites, Jan 2011 7
REA Australia Potential Brand Exposure Increases Against Number Two Portal - Dec 2010 Source: Nielsen Online, Market Intelligence, Total Traffic for Audited Sites, Dec 2010 8
The Business Model Valued by Consumers Entertain Engage Search/Find Evaluate Valued by Agents Win New Listings Sell Houses Build Rent Roll Sales Productivity Valued by Vendors Cost Effective Predictable Provable 9
Enhancement of our Product Suite to Support the Business Model and Customer Satisfaction Valued by Consumers Suburb Sponsorship Valued by Agents Our Network Valued by Vendors Premiere Property Premier Property Customer Satisfaction Focus is Supported By Improved Customer Call Centre and a Professional Sales Team to Understand Our Customer Needs 10
The Australian Business Continues to Improve Site Traffic, Usage and Engagement Syndication and co-branding: REA identifies new strategic partnerships to support our strategy Social media campaigns: The Fresh Start Project won REA the Internet Advertising Bureau (IAB) Creative Showcase (Dec 2010) Spring Campaign Advertising: Kicked off in September and covered TV commercials, outdoor and online advertising 11
REA Australia s Media Business Breaks New Ground Media revenues up by 27% to $24.6m in 1HY11 One of the largest digital display publishers in Australia by revenue Brings new functionality in New Homes tab MINI s Floor ad on realestate.com.au We have been overwhelmed with the results and level of interest the campaign has generated in just one day with a click through rate of over 8 per cent (1), well above industry average. As a result, we have managed to increase traffic to our site by a whopping 1700 per cent a phenomenal result for a reasonable investment (1), MINI s Marketing Manager Chris Brown. 1. Eyeblaster Research Q1 2009 to Q4 2009, Australia and New Zealand market. 12
casa.it Goes from Strength to Strength 12,000 Paying Agents- Italy 10,000 8,000 6,000 4,000 11,531 as at DEC 10 YOY Growth 26% 2,000 0 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 * (1) 1. Source: Nielsen Online, Site Census, Dec 2010 13
Plus the Arrival of casa.it Website A simplified Home Page Fast and easy search NEW refined search on one page! NEW enhanced Map results View NEW enhanced Gallery results View NEW Feature Enhanced Customer reporting NEW Product Feature Property NEW Compare it! NEW My Casa NEW Mobile site casa.it 1.0 casa.it 2.0 14
International Significantly Improved Performance Luxembourg #1 in Greater Luxembourg Online, TV, Data Services and Print Achieved break-even in FY10 Hong Kong Only independent English magazine, website & emagazine dedicated to property Chinese-language site launched July 2010 (1) (1) 1. Source: Nielsen Online, Site Census, Dec 2010 15
Financial Data 16
REA Group s Strong Growth Record 17
REA Group EBITDA Continues To Strengthen 18
Strategic Themes for FY11 1. Engage with consumers 2. Develop an active real estate community 3. Offer customers more flexible products and price offers 4. Build operational excellence 5. Create the team and culture we want 19
Welcome to REA Group s New Corporate Website 20
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. Unless otherwise indicated, information contained within this report is internal REA Group information and data. 21