Investor & Analyst Presentation Full Year Results 2015

12 August 2015 Tracey Fellows - Chief Executive Officer Owen Wilson - Chief Financial Officer

Delivering on our purpose

To empower people by making property simple, efficient and stress-free

$-51,200,000$

Strong growth in all financial metrics

The story behind the numbers

Extended lead in consumer engagement ٠
Strong take up of premium listing products drove $\bullet$ value to customers and revenue growth
Significant international expansion through $\bullet$ investments in Move, Inc. and iProperty Group Limited
Introduction of market based pricing
Expanding property related services for consumers with the launch of utility connections and finance leads
First to market with innovative tools, including $\bullet$ property investor market data and Apple Watch⁽¹⁾ app

Investing in high growth markets

Largest and most engaged audience

Main $+$ mobile sites only (excludes app) (competitor app data not available)	$\Omega$	No. 2 property site	outperforming the competition	lead extended year on year ⁽²⁾
Visits (average monthly traffic) ⁽¹⁾	36.5m visits	12.2m visits	3.0x	(2%)
Time (share of combined minutes spent on realestate.com.au and the No. 2 property site) ⁽¹⁾	85% share	15% share	5.7x	22%
Time (average monthly total time on site) ⁽¹⁾	242m minutes	42m minutes	5.7x	22%
Page views (average monthly) (1)	991m views	156m views	$6.4x^1$	23%

4.4m app downloads

Australia really does live here

Comparison of app visits with competitors are not available and for that reason are not included in these statistics.(1) Source: Nielsen Online Market Intelligence Home and Fashion Suite Total Traffic for Audited sites for the main and mobile sites of realestate.com.au compared todomain.com.au. For main and mobile sites only (2) Applying current year methodology to prior year results, this is the growth in "out performing thecompetition" year on year. (3) ITunes and GooglePlay as at 30 June 2015.

Driving audience growth where it counts

Engaged property seekers come to realestate.com.au
Value to customers through quality audience
65% of our monthly audience did not visit our nearest competitor on main and mobile sites (1)

(1) Source: Nielsen Online Ratings data (average monthly) for FY 2015 showing exclusive audience that does not visit the competing property site for that month for main and mobile sites. (2) Experian Hitwise data May 2015 showing visits to Buy vs News section on main and mobile sites.

Innovation

Our first to market Apple Watch real estate app brings timely and accurate information to property hunters to help ease the stress of open for inspections

'Discover' is a new property search experience that helps buyers understand which suburbs meet their budget and lifestyle needs

Innovation

Our connection services enables consumers to conveniently connect their utilities

online

Innovation

Auction Results

Property Finance

Nearby Schools

Investment in world's largest property market

maye realtor.com

Operates in the largest residential real estate market in the world
\$14 billion spend on real estate advertising in the USA with less than \$1 billion online spend between 3 $\bullet$ largest players
Opportunity to leverage our digital real estate expertise and News Corp's content, distribution and marketing strengths
Realtor.com surpassed Trulia in early-2015 to become to become the #2 online real estate destination

Investment in world's fastest growing property market

iProperty (IPP) holds market leading position in Malaysia, Hong Kong, Indonesia, Macau, and Thailand $(1)$
Asia is one of the fastest growing real estate markets with a overall population over 500 million
Excellent potential for long-term growth across this region
Annual revenue upgraded to between \$32.5 and \$36 million and EBITDA between \$3 and \$6 million $(2)$
Strong growth in agents, developers, listings, and $leads⁽³⁾$

A Group'

ended 31 December

Financial results

Operating results

Performance (\$m)	FY 2015	FY 2014	Growth
Revenue
Australia	472.8	392.2	21%
Europe	45.6	42.9	6%
Asia	4.5	2.4	88%
Group revenue	522.9	437.5	20%
EBITDA ^(1,2)
Australia	288.1	232.4	24%
Europe	9.7	5.2	85%
Asia	0.6	(1.2)	150%
Corporate	(12.6)	(11.3)	(12%)
Group EBITDA ^(1,2)	285.8	225.1	27%
EBITDA Margin	55%	51%
NPAT ⁽²⁾	185.4	149.9	24%
Cash balance	78.9	253.8	(69%)
Earnings per share (EPS) cents ⁽²⁾	140.6c	113.7c	24%
Dividends per share (DPS) cents	70.0c	57.0c	23%

Rec to Financial Statements (\$m)	FY 2015	FY 2014	Growth
NPAT from core operations	185.4	149.9	24%
Gain on sale of marketable securities	31.2
Tax on sale of marketable securities	(9.1)
Share of losses of associates	(7.1)
Gain on sale of discontinued business	9.8
Reported NPAT	210.2	149.9	40%

$14$

Revenue (\$m)

EBITDA (\$m)

FY15 285.8	$+27%$
FY14 225.1
FY13 164.0
FY12 126.0
FY11 103.2

EPS (cents)

EBITDA growth

Strong EBITDA growth driven by:

Strong take up of premium listing products and introduction of market based pricing
Robust developer market drove strong take up of Project Profiles and Advertising
Large, engaged audience increased media revenue
Reduced fixed costs for agents through lower subscriptions with market based pricing
Operating costs grew 12%, well below revenue growth
Some offset by lower listing volumes in the Australian market

Group EBITDA growth (\$m)⁽¹⁾

Revenue growth driven by success of premium listing products

Revenue category (\$m)	FY 2014	FY 2015	Growth
Australia
Listing depth revenue	220.4	322.6	46%
Subscription revenue	104.4	68.9	(34%)
Media display	65.5	79.7	22%
Other	1.9	1.6	(16%)
Australian revenue	392.2	472.8	21%

Europe	42.9	45.6	6%
Asia	2.4	4.5	88%
Total revenue	437.5	522.9	20%

Strong growth in premium listings

realestate.com.au experienced strong growth in premium listing products despite a 4% reduction in listings⁽¹⁾ in the market
Success of highest yielding Premiere listing product providing increased return on investment to agents and vendors

Premium Listing Penetration (depth)

European results

Increased agents, audience and listings in all countries
New Italian app & mobile site $\bullet$
Partnership with FIMMA (Italy's national association of 12k+ agents and brokers)
Luxembourg ("Lux") Apple Watch app first to market $\bullet$
Continued success of expansion into new regions of France

10% revenue growth

Europe results	FY 2015	FY 2014	Growth
Total revenue $(\epsilon m)$	31.8	29.0	10%
$EBITDA$ ( $\epsilon$ m)	6.7	3.5	91%
Agents (June)	13,238	12,094	9%
Average Monthly Visits (000's) ⁽¹⁾	10,595	9,861	7%
Listings (June, 000's)	902	754	20%

(1) Source: Adobe Omniture SiteCatalyst average monthly visits for Italy (casa.it) and Luxembourg & France (athome.lu, athome.de, atoffice.lu and immoregion.fr) combined (main and mobile site visits, includes international traffic to site, excluding apps). (2) Specific e-mail leads. (3) Month of June. Note: Due to the recent implementation of the Italian privacy legislation about cookie, consumers can opt out of being tracked by Omniture so these results are not an accurate representation of the total audience. (4) REA internal data

Operating results and capital expenditure

Group operating results growth

Group capital expenditure

Continued reinvestment in innovation

EBITDA margin growth

Group cash flow

Group cash flow (\$m)

18% increase in operating cash inflow (before tax)
36% increase in $\bullet$ dividends paid to shareholders
Significant investments in Move, Inc. and IPP funded via cash reserves

Strategy

Continued product innovation

Access to largest and most engaged audience of property seekers Utility connections Finance leads

Leverage expertise Revenue diversification

Market opportunity

Real estate classifieds continued migration to digital
Growth opportunity in core listings market

12:00 PM

100%

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Property related services

The utility connections market is growing
We're participating in utility connections and finance lead markets
Revenue growth and diversification opportunity
Drive consumer engagement, develop deeper relationships with customers and reward partnering agents
Encourage consumers to engage through all stages of the property cycle
Making property simple, efficient and stress-free

that move or switch⁽¹⁾

$2.9m$

(1) Source: 9.1M homes. 17% likely to switch electricity (9% likely to switch gas), Roy Morgan, 2014. Movers: Roy Morgan, 2014. (2) \$700B represents the total balance of all broker loan books which generate \$2B in broker fees. In 2013, brokers wrote \$125B in new loans which generated 65bps / \$812m of upfront commissions. * In Victoria only services provided is a water bill redirection notification service.

Asian opportunity 36% bigger than Australia

Extract from iProperty Group trading update (ASX release, May 2015)

a's No.1 Deline Property Gr

A Group

USA opportunity

Extract from News Corp release, Acquisition of Move, Inc. (30 September 2014)

New York, 30 September 2014

FY15 summary

Strong results, demonstrating our capacity to deliver solid growth, despite listing volumes in the Australian market being down 4%
We've accomplished this by providing our customers with more choice and better value and by giving the 3.4 million¹ people who use our sites monthly an exceptional experience.
Our strategy to take our expertise both internationally and to new property-related markets gathered pace this year:
Expanded into the world's largest property market, the US with Move; as well as one of the fastest growing regions through our iProperty investment in Asia.
Launched our utility connections service the first of our property-related services.
Our growth strategy will continue to focus on the three strands of our business: listings, media and property-related services and international expansion.

Supplementary information

Financial comparatives

					Core Operations						Financial Statements
Group results	FY 2011		FY 2012		FY 2013		FY 2014		FY 2015		FY 2015
	\$m	Growth	$\mathsf{S}$ m	Growth	$\mathsf{S}$ m	Growth	$\mathsf{S}$ m	Growth	$\mathsf{S}$ m	Growth	$\mathsf{S}$ m
Revenue from core operations	238.4	23%,	277.6	16%,	336.5	21%,	437.5	30%,	522.9	20%	522.9
Gain on sale of marketable securities											31.2
Total revenue & other income	238.4	23%	277.6	16%.	336.5	$21\%$	437.5	30%,	522.9	20%,	554.1
Operating expenses	(135.2)	(16%)	(151.6)	(12%)	(172.5)	(14%)	(212.4)	(23%)	(237.1)	(12%)	(237.1)
Share of losses of associates											(7.1)
EBITDA	103.2	32%,	126.0	22%	164.0	30%,	225.1	37%,	285.8	27%	310.0
EBITDA Margin	43%		45%		49%		51%		55%
Depreciation and amortisation	(10.5)	(48%)	(15.2)	(45%)	(18.7)	(23%)	(21.2)	(13%)	(26.9)	(27%)	(26.9)
EBIT	92.7	31%,	110.8	20%	145.3	31%,	203.9	40%,	258.9	27%	283.1
Net finance income	4.6		7.7		9.2		9.3		3.5		3.5
Earnings before tax	97.3	35%,	118.5	22%	154.5	30%,	213.2	38%,	262.3	23%,	286.5
Tax on gain on sale of marketable securities											(9.1)
Income tax expense	(29.8)	(32%)	(31.7)	(6%)	(44.8)	(41%)	(63.3)	(41%)	(76.9)	(21%)	(76.9)
Net Profit from continuing operations	67.5	37%,	86.8	29%,	109.7	26%,	149.9	37%,	185.4	24%	200.5
Gain on sale of Squarefoot business											9.8
Net Profit	67.5	37%	86.8	29%,	109.7	26%,	149.9	37%,	185.4	24%	210.2
Dividends per share (DPS)	26.0	100%.	33.0	27%	41.5	26%,	57.0	37%,	70.0	23%,	70.0
Earnings per share (EPS)	53.1	232%,	66.2	25%,	83.3	26%,	113.7	36%,	140.6	24%	159.4
EPS from continuing operations											152.0

Group results by quarter and half year

REA Group		Q ₁				Q ₂				Q ₃				Q ₄
Core operations (\$m)	FY15	FY14		Mymt Growth	FY15	FY14		Mymt Growth	FY15	FY14		Mymt Growth	FY15	FY14		Mymt Growth
Revenue from core operations	121.0	98.7	22.3	23%	140.5	110.7	29.8	27%	122.9	108.2	14.7	14%	138.5	119.9	18.6	16%
Operating expenses	(57.5)	(50.8)	(6.7	(13%)	(59.5)	(51.8)		(15%)	(57.4)	(53.5)	(3.9)	7%	(62.7)	(56.3)	(6.4)	(11%)
EBITDA	63.5	47.9	15.6	33%	81.0	58.9	22.1	38%	65.5	54.7	10.8	20%	75.8	63.6	12.2	19%
EBITDA Margin	52%	49%			58%	53%			53%	51%			55%	53%
Depreciation and amortisation	(6.0)	(5.1)	(0.9)	(18%)	(7.1)	(5.4)		(31%)	(6.6)	(5.3)	(1.3)	(25%)	(7.2)	(5.4)	(1.8)	(33%)
Net finance income	1.9	2.4	(0.5)		1.0	2.2	(1.2)		0.2	2.3	(2.1)		0.4	2.4	(2.0)
Earnings before tax	59.4	45.2	14.2	31%	74.9	55.7	19.2	34%	59.1	51.7	7.4	14%	68.9	60.6	8.4	14%
Income tax expense	(18.0)	(13.6)	(4.4)	$32\%)$	(21.6)	(16.6)	(5.0)	30%)	(17.7)	(15.8)	(1.9)	$12\%)$	(19.6)	(17.3)	(2.3)	(13%)
Net Profit	41.4	31.6	9.8	31%	53.3	39.1	14.2	36%	41.4	35.9	5.5	15%	49.3	43.3	6.1	14%

REA Group		H1				H ₂
Core operations (\$m)	FY15	FY14		Mymt Growth	FY15	FY14		Mymt Growth
Revenue from core operations	261.5	209.4	52.1	25%	261.4	228.1	33.3	15%
Operating expenses	(117.0)	(102.6)	(14.4)	(14%)	(120.1)	(109.8)	(10.3)	(9%)
EBITDA	144.5	106.8	37.7	35%	141.3	118.3	23.0	19%
EBITDA Margin	55%	51%			54%	52%
Depreciation and amortisation	(13.1)	(10.5)	(2.6)	(25%)	(13.8)	(10.7)	(3.1)	(29%)
Net finance income	2.9	4.6	(1.7)		0.6	4.7	(4.1)
Earnings before tax	134.3	100.9	33.4	33%	128.0	112.3	15.8	14%
Income tax expense	(39.6)	(30.2)	(9.4)	(31%)	(37.3)	(33.1)	(4.2)	(13%)
Net Profit	94.7	70.7	24.0	34%	90.7	79.2	11.6	15%

Full Year
FY15	FY14	Mvmt	Growth
5229	437.5	85.4	20%
(237.1)	(212.4)	(24.7)	(12%)
285.8	225.1	60.7	27%
55%	51%
(26.9)	(21.2)	(5.7)	(27%)
35	93	(5.8)
262.3	213.2	49.2	23%
(76.9)	(63.3)	(13.6)	(21%)
185.4	149.9	35.6	24%

Group cash flow reconciliation

Cash flow reconciliation (\$m)	FY 2015	FY 2014	Growth
EBITDA ⁽¹⁾	285.8	225.1	27%
Working capital movement	(10.3)	5.0	(306%)
Tax paid	(88.4)	(53.9)	(64%)
Capital expenditure	(41.8)	(26.2)	$(60\%)$
Other	4.1	7.5	(45%)
Free cash flow	149.4	157.5	(5%)

Sale/(purchase) of other investments	111.7	(80.5)	n/m
Investment in Move	(237.4)
Investment in IPP	(109.1)
Dividends paid	(85.1)	(62.6)	(36%)
Other	(4.4)	(18.0)	76%
Net cash (outlfow)	(174.9)	(3.6)	n/m

Products

Core products - Customers

Connecting real estate agents and developers to the largest audience of property seekers and movers⁽¹⁾

Core products

Core products: Residential - Depth Listings

Desktop PIPPINGHALL

IPPINSHAL

$$800k - $950k$

$h = 3$ $h = 2$ $h = 1$

9 Verdoni Drive, Southview, 9824

Mobile

Standard ad Feature Property 2 times more views Highlight Property 7 times more views

Premiere Property 20 times more views¹

\$590,000 - \$630,000 Ben Thoma Southview 9824

$\vec{\Sigma}$

$\stackrel{\curvearrowleft}{\bowtie}$

$km3 = 1 + m1$

\$590,000 - \$630,000 62 Belmore Avenue, Southview 9824 $km3 = 1.661$

Our depth listings products help vendors and agents stand out in the crowd, with Premiere Property delivering up to 20 times more views than a standard listing.

¹ Source: REA Internal Data Warehouse. This is an average based on activity on realestate.com.au between 1 October 2014 - 31 December 2014. Our property sample includes suburbs that only had Premiere Property, Highlight Property, Feature Property and Standard ads during the same time period.

Highlight Property

Feature Property

$\hat{\mathbb{C}}$ Save

Details

Core products: Residential - Agent Profiles

one of the industry's leading talents not only at Pippin & Hall but

Australia wide. A new breed of real estate agent, his dedication impresses both new and existing clients who are... read more

Office Location 23 Smithly Street, Southview, VIC 3036

62% of vendors say choosing an Agent is one of the hardest decisions in the selling process $(1)$

Agent profiles enables individual agents to build their personal brand and help vendors choose the right agent

Core products: Residential - 1 Form

Potential tenants can apply for rental properties, securely and easily online

$1.8m$ applications submitted $\text{ }^{(1)}$ 29.6m page views⁽²⁾

Core products: Commercial - Native Advertising in iOS

Engaging advertising content that connects consumers to commercial properties

Core products: Developer - 3D Property View

Our 3D property tours bring off the plan apartments to life for consumers

Core products: Developer - Project Profiles

We provide developers with the opportunity to showcase new apartments and land estates at a project and individual property level to maximise consumer interest and inspiration

Continuous innovation

3D virtual tours

Nearly a third of all properties sold are new builds⁽¹⁾. That's why we've created a world first, self-guided 3D tours for new developments with our technology partner bringing off the plan properties to life

Wearables

Our Apple Watch & Android Wear™ real estate apps are designed to alert consumers to open for inspections and key property details

rea-group.com

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.

Media: Natalie Cerny Head of Corporate Affairs M: +61 407 487 221 E: [email protected]

Investors: Owen Wilson Chief Financial Officer P: +61 3 8456 4288 E: ir area-group.com

News Corp (New York) media inquiries: Mike Florin SVP, Head of Investor Relations $P: + 2124163248$ E: [email protected]

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REA GROUP LTD — Investor Presentation 2015

65679_rns_2015-08-11_379b1830-2535-4be2-b71d-52cd83d541f3.pdf

Investor & Analyst Presentation Full Year Results 2015

Strong growth in all financial metrics

The story behind the numbers

Investing in high growth markets

Largest and most engaged audience

4.4m app downloads

Australia really does live here

Driving audience growth where it counts

Innovation

Innovation

Our connection services enables consumers to conveniently connect their utilities

Innovation

Nearby Schools

Investment in world's largest property market

maye realtor.com

Investment in world's fastest growing property market

Financial results

Operating results

EBITDA (\$m)

EPS (cents)

EBITDA growth

Revenue growth driven by success of premium listing products

Strong growth in premium listings

European results

10% revenue growth

Operating results and capital expenditure

Group operating results growth

Group cash flow

Group cash flow (\$m)

Strategy

Market opportunity

Property related services

Asian opportunity 36% bigger than Australia

USA opportunity

FY15 summary

Supplementary information

Financial comparatives

Group results by quarter and half year

Group cash flow reconciliation

Products

Core products - Customers

Core products

Core products: Residential - Depth Listings

Desktop PIPPINGHALL

Mobile

Standard ad Feature Property 2 times more views Highlight Property 7 times more views

Highlight Property

Core products: Residential - Agent Profiles

Core products: Residential - 1 Form

Core products: Commercial - Native Advertising in iOS

Core products: Developer - 3D Property View

Core products: Developer - Project Profiles

Continuous innovation

3D virtual tours

Wearables

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REA GROUP LTD Investor Presentation 2015