REA GROUP LTD - Investor Presentation 2021

==> picture [582 x 101] intentionally omitted <==

ASX Announcement 5 February 2021

REA Group Investor & Analyst Presentation Half-Year Results 31 December 2020

On behalf of REA Group Ltd (ASX:REA) please find attached a half-year results presentation for the half-year ended 31 December 2020.

-ends-

For further information, please contact:

REA Group Ltd Investors: REA Group Ltd Media: Graham Curtin Prue Deniz General Manager Group Finance General Manager Corporate Affairs P: +61 3 8456 4288 M: + 61 438 588 460 E: [email protected] E: [email protected]

The release of this announcement was authorised by Tamara Kayser, Company Secretary.

About REA Group Ltd : (www.rea-group.com): REA Group Ltd ACN 068 349 066 (ASX:REA) (“REA Group”) is a multinational digital advertising business specialising in property. REA Group operates Australia’s leading residential and commercial property websites – realestate.com.au and realcommercial.com.au – as well as the leading website dedicated to share property, Flatmates.com.au and Spacely, a short-term commercial and coworking property website. REA Group owns Smartline Home Loans Pty Ltd, an Australian mortgage broking franchise group, and PropTrack Pty Ltd, a leading provider of property data services. In Asia, REA Group owns leading portals in Malaysia (iproperty.com.my) and Hong Kong (squarefoot.com.hk), a prominent portal in China (myfun.com) and a leading property review site in Thailand (thinkofliving.com). REA Group holds a controlling interest in India’s Elara Technologies Pte. Ltd. which operates the established brands of Housing.com, Makaan.com and PropTiger.com. REA Group also holds a significant shareholding in property websites realtor.com in the US, 99.co and iproperty.com.sg in Singapore and rumah123.com in Indonesia.

==> picture [596 x 73] intentionally omitted <==

==> picture [302 x 405] intentionally omitted <==

REA Group Ltd Investor & Analyst presentation Half-year results, 31 December 2020

Changing the way the world experiences property

==> picture [72 x 21] intentionally omitted <==

Stron result and ro ress on strate g p g gy

==> picture [41 x 38] intentionally omitted <==

==> picture [38 x 38] intentionally omitted <==

==> picture [42 x 41] intentionally omitted <==

Results & market update

Strong result despite market volatility[1]

Revenue[2 ] down 2%
Operating expenses down 13%
EBITDA[3] up 9%
Net profit up 13%

Listings and project commencements

National residential listings: +4%
Sydney residential listings: +19%
Melbourne residential listings: -11%
Commercial listings: -26%
New project commencements: +8%

Improving domestic market conditions

Australia’s residential property market showing continued signs of recovery
Strong levels of buyer enquiry, underpinned by increasing consumer confidence, record low interest rates and healthy bank liquidity

==> picture [42 x 42] intentionally omitted <==

==> picture [34 x 33] intentionally omitted <==

==> picture [33 x 33] intentionally omitted <==

Progress on strategy

Superior customer value & consumer experiences

Personalised property owner experience launched, backed by unrivalled demand data
Strategic investments announced with industry leaders Realtair and CampaignAgent

Providing access to unique data and insights

Hometrack rebranded to PropTrack
REA Insights published 170 pieces of expert analysis and reports[4]
7m avg. monthly visits to realestate.com.au News section, up 78% YoY[5]

Building next generation marketplaces

Strengthening Australia’s #1 place for Rent by reimagining REA’s rental marketplace
Five-minute target time for property managers to evaluate rental applications

H1 FY21 highlights

==> picture [65 x 65] intentionally omitted <==

----- Start of picture text -----

•
•
----- End of picture text -----

Expanding global exposure

REA increased shareholding to 59.65% in Elara Technologies
Elara is India’s fastest growing digital real estate business in terms of audience[6]
99 Group acquired SRX in Singapore

==> picture [42 x 42] intentionally omitted <==

Record realestate.com.au audience

Monthly audience 12.3m, up 39% YoY[7]
Monthly visits 115m, up 36% YoY[7]
3.26x more visits than nearest competitor[8]
~6.5m people exclusive to realestate.com.au[9]
Monthly app launches 50.9m, up 46% YoY[7]

==> picture [26 x 35] intentionally omitted <==

REA remains in an excellent financial position

Increased core EBITDA margin[3] to 67%
• Strong balance sheet and ongoing capex investment for growth
Increased interim dividend to 59c, up 7% YoY

(1) Financial results/highlights from core operations exclude significant non-recurring items such as gain/loss on acquisitions and disposals and transaction costs and historic tax provision (historic indirect tax provision reflects potential retrospective changes to interpretation of tax law). In the prior comparative period, they excluded items such as restructure costs and gain/loss on acquisitions and disposals and transaction costs. (2) Revenue is defined as revenue from property and online advertising and revenue from Financial Services less expenses from franchisee commissions. (3) EBITDA includes share of losses of associates and joint ventures. (4) REA internal data (Jul 20 – Dec 20). (5) Adobe Analytics, average monthly visits to realestate.com.au/news (Jul 20 – Dec 20) and compared to the same period (Jul 19 – Dec 19). (6) SimilarWeb, Dec 20 (based on traffic growth from Dec 19 to Dec 20 relative to 99acres, MagicBricks & NoBroker). (7) Nielsen Digital Content Ratings (Monthly Tagged), Jul 20 - Dec 20 vs Jul 19 – Dec 19 (average), P2+, Digital (C/M), text, realestate.com.au, Total Sessions, Unique Audience, App Launches. (8) Nielsen Digital Content Ratings (Monthly Tagged), Jul 20 – Dec 20 (average), P2+, Digital (C/M), text, realestate.com.au vs Domain, Total Sessions. (9) Nielsen Digital Content Planning, Nov 20, P2+, Digital C/M, text, Exclusive Reach, realestate.com.au and Domain.

==> picture [72 x 21] intentionally omitted <==

Half-year financial results Strong profit result with EBITDA margin[2] increasing to 67%

(1) Revenue is defined as revenue from property and online advertising and revenue from Financial Services less expenses from franchisee commissions. (2) EBITDA includes share of losses of associates and joint ventures. Financial results/highlights from core operations exclude significant non-recurring items such as gain/loss on acquisitions and disposals and transaction costs and historic tax provision (historic indirect tax provision reflects potential retrospective changes to interpretation of tax law). In the prior comparative period, they excluded items such as restructure costs and gain/loss on acquisitions and disposals and transaction costs. (3) Financial results/highlights from core operations exclude significant non-recurring items such as gain/loss on acquisitions and disposals and transaction costs and historic tax provision (historic indirect tax provision reflects potential retrospective changes to interpretation of tax law). In the prior comparative period, they excluded items such as restructure costs and gain/loss on acquisitions and disposals and transaction costs.

==> picture [72 x 21] intentionally omitted <==

Australian market update

COVID-19 restrictions caused significant volatility during the half

Residential buy listings YoY*

==> picture [301 x 233] intentionally omitted <==

----- Start of picture text -----

30%
20%
10%
-
(10%) Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
(20%)
(30%)
(40%)
(50%)
National Melbourne Sydney
Residential rent listings YoY
5.0%
(5.0%)
(15.0%)
(25.0%)
(35.0%)
Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
----- End of picture text -----*

Developer project launches YoY

==> picture [269 x 224] intentionally omitted <==

----- Start of picture text -----

20%
10%
-
Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
(10%)
(20%)
(30%)
(40%)
Commercial listings YoY
-
Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21
(5%)
(10%)
(15%)
(20%)
(25%)
(30%)
----- End of picture text -----*

==> picture [72 x 21] intentionally omitted <==

* YoY growth is adjusted for working days

==> picture [672 x 351] intentionally omitted <==

----- Start of picture text -----

Consistent growth strategy
Pursuing long-term growth opportunities balanced with operational
Largest audiences ,
most engaged consumers
Our global network:
A U S T R A L I A A S I A
Building the
next generation
marketplaces
N O R T H A M E R I C A
Superior Unparalleled
customer value data insights
----- End of picture text -----

Consistent growth strategy

Pursuing long-term growth opportunities balanced with operational discipline

realestate.com.au: Australia’s #1 property site & app[1] Reaching 6 million more Australians[2] and 3.2x more visits[3] than the nearest competitor

==> picture [124 x 56] intentionally omitted <==

----- Start of picture text -----

Monthly Visits
+36% [4]
115m [4]
----- End of picture text -----

==> picture [134 x 53] intentionally omitted <==

----- Start of picture text -----

Unique audience
+39% [4]
12.3m [4]
----- End of picture text -----

==> picture [137 x 55] intentionally omitted <==

----- Start of picture text -----

App launches
+46% [4]
50.9m [4]
----- End of picture text -----

H1 FY21 average monthly traffic to realestate.com.au on all platforms

==> picture [146 x 16] intentionally omitted <==

----- Start of picture text -----

H1 FY21 average monthly unique audience to
realestate.com.au on all platforms
----- End of picture text -----

H1 FY21 average monthly launches of the realestate.com.au app

==> picture [193 x 132] intentionally omitted <==

----- Start of picture text -----

115m
84m
H1 FY20 H1 FY21
----- End of picture text -----

==> picture [193 x 139] intentionally omitted <==

----- Start of picture text -----

12.3m
8.8m
H1 FY20 H1 FY21
----- End of picture text -----

==> picture [28 x 7] intentionally omitted <==

----- Start of picture text -----

50.9m
----- End of picture text -----

==> picture [207 x 101] intentionally omitted <==

----- Start of picture text -----

34.9m
H1 FY20 H1 FY21
----- End of picture text -----

(1) Nielsen Digital Content Ratings (Monthly Tagged), Jul 20 – Dec 20, P2+, Digital (C/M), text, Real Estate/Apartments subcategory, Unique Audience (static and app). (2) Nielsen Digital Content Ratings (Monthly Tagged), Nov 20, P2+, Digital (C/M), text, realestate.com.au vs Domain, Unique Audience (3) Nielsen Digital Content Ratings (Monthly Tagged), Jul 20 – Dec 20 (average), P2+, Digital (C/M), text, realestate.com.au vs Domain, Total Sessions. (4) Nielsen Digital Content Ratings (Monthly Tagged), Jul 20 - Dec 20 vs Jul 19 – Dec 19 (average), P2+, Digital (C/M), text, realestate.com.au, Total Sessions, Unique Audience, App Launches.

==> picture [72 x 21] intentionally omitted <==

Delivering rich consumer experiences backed by unrivalled data

Personalised Property Owner dashboard empowering owners to monitor their market and make confident property decisions

+100k people engaged with dashboard in first 6 weeks[1]

2.45m total properties now tracked – up 68% YoY[2]
1.26m owner properties now tracked – up 52% YoY[2]

==> picture [492 x 268] intentionally omitted <==

----- Start of picture text -----

Sell Rent Finance
----- End of picture text -----

(1) Adobe Analytics. (2) REA internal data as at 31 Dec 2020 compared to 31 Dec 2019.

Helping our customers grow their businesses Providing Agents with the tools they need to free themselves up and focus on what they do best

Providing access to unique data & market intelligence

Delivering REA Group’s unrivalled data & insights to customers and consumers

==> picture [307 x 227] intentionally omitted <==

==> picture [79 x 26] intentionally omitted <==

Trusted leader in property data and automated valuations

Hometrack rebranded as PropTrack
Successfully signed several multi-year customer contracts
Delivering property data insights and valuations services to Australia’s largest financial institutions

==> picture [86 x 22] intentionally omitted <==

Delivering expert reports & analysis

REA Insights brand gaining strong momentum
170 published pieces of expert analysis and reports[1]
+3m weekly eDMs delivering personalised property insights[1]

==> picture [90 x 18] intentionally omitted <==

Powering an informed News narrative

7m average monthly visits to News section, up 78% YoY[2]
Record 7.8m visits to News section in August, up 97% YoY[3]
New content partnership with Apple News delivering an additional 1m+ audience per month[4]

(1) REA internal data (Jul 20 – Dec 20). (2) Adobe Analytics, average monthly visits to realestate.com.au/news, Jul 20 – Dec 20 compared to Jul 19 – Dec 19.

(3) Adobe Analytics, total visits to realestate.com.au/news (Aug 20) and compared to the same period (Aug 19). (4) Apple News Analytics, Oct 20 vs Dec 20.

==> picture [72 x 22] intentionally omitted <==

Building REA’s next generation rental marketplace

Strengthening Australia’s #1 place for Rent by reimaging REA’s rental marketplace

Our goal

Property Managers evaluate applications in 5 mins versus 90 mins.

How

Introduce a consistent and reusable Property Management workflow
Remove repetitive processing and duplication
Streamline rental application by centralising three key evaluation components:
Identity verification
Rental affordability
Automated references

Impact

Consumers manage their search, inspect and apply experience in one place
Centralised profiles that build trust through automated verifications
A single source of truth for Property Managers when evaluating rental applications that removes administrative workload

==> picture [289 x 287] intentionally omitted <==

Global footprint spanning three continents Exposure to some of the world’s largest and fastest growing property markets

==> picture [387 x 279] intentionally omitted <==

----- Start of picture text -----

v
----- End of picture text -----

==> picture [72 x 22] intentionally omitted <==

Strong progress across Asia despite difficult conditions Product innovations launched to support customers and consumers during COVID-19

==> picture [104 x 17] intentionally omitted <==

iProperty.com.my Malaysia’s #1 property site[1] , growing site visits 35% YoY[2]
80% of customers successfully migrated to new iProperty PRO platform
iProperty PRO depth penetration continued to increase
Launch of i360 virtual tours experiencing strong uptake, supporting customers to connect with consumers despite COVID-19 restrictions

==> picture [147 x 17] intentionally omitted <==

Delivered new mobile-prime property transactions hub providing access to price, transaction trends and insights across Hong Kong market
New flexible subscription packages resulting in increased customer renewal rates
New social-sign in capability launched increasing number of registered users

==> picture [92 x 16] intentionally omitted <==

==> picture [97 x 17] intentionally omitted <==

Delivered strong audience growth led by Indonesia across both 99.co and rumah123.com[3]
Launched Singapore's largest-ever virtual property show
Entered binding agreement to acquire 100% ownership of SRX, the market leading data & analytics provider in Singapore

==> picture [128 x 255] intentionally omitted <==

==> picture [72 x 22] intentionally omitted <==

(1) SimilarWeb, Oct 20 – Dec 20, a comparison with iProperty.com.my and propertyguru.com.my. (2) Google Analytics, Total Sessions, Jul 20 - Dec 20 vs Jul 19 – Dec 19. (3) Google Analytics, Total Sessions, 99 Group Indonesia (99.co and rumah123.com), Jul 20 – Dec 20 vs Jul 19 – Dec 19.

International investments across large and

growing markets

Controlling interest secured in Elara Technologies while Move, Inc. delivered strong result

==> picture [128 x 256] intentionally omitted <==

==> picture [109 x 15] intentionally omitted <==

REA Group moved to a controlling position in Elara Technologies, increasing its original shareholding from 13.5% to 59.65%
Elara operates India’s fastest growing digital real estate business in terms of audience[1]
Digital adoption of real estate accelerating with Housing.com audience, growing 57% YoY[2]
Indian market beginning to recover from COVID-19 impacts

==> picture [85 x 26] intentionally omitted <==

Move, Inc. revenue up 20% to USD 293 million[3] benefitting from strong consumer demand
Unique users and leads reaching all-time highs, despite industry wide active listing volumes remaining historically low
realtor.com Q2 avg monthly unique users grew 37% YoY to 80 million[4]

==> picture [128 x 256] intentionally omitted <==

==> picture [72 x 22] intentionally omitted <==

(1) SimilarWeb, Dec 20 (based on traffic growth from Dec 19 to Dec 20 relative to 99acres, MagicBricks & NoBroker). (2) Google Analytics, Total Sessions, Jul 20 - Dec 20 vs Jul 19 – Dec 19. (3) NewsCorp’s Form 10-Q stated in US Dollars for the six-month period ended 31 December 2020. (4) NewsCorp’s Earnings Release stated in US Dollars (4 February 2021) for the six-month period ended 31 December 2020: Average monthly unique users for Q2 FY21 and compared to prior corresponding period.

REA Group is committed to sustainable practices

Creating positive change through our ESG focus

Environment – Increased Climate Change commitment

Introduced REA’s inaugural Climate Change policy with established carbon footprint and science based aligned targets to reduce carbon footprint
Commitment to annual carbon neutral certification starting with our FY20 footprint

Social – Highly engaged workforce passionate about big issues

Extended multi-year community partnerships with charities focused on ending homelessness
Increased Australian diversity ratio with 50:50 gender representation across senior leadership group
Future of work research and design completed resulting in new hybrid working model
Increased positive sentiment in Nov 2020 engagement survey – 84% (Aus) and 82% (Asia) and executive leadership capability at 88% (global)

Governance – Increased investment in cyber security

Increased investment in Cyber Security team with new operational, engineering and advisory capability
Committed to transparency around our environmental impact through our first participation in the 2020 CDP questionnaire and SAM Corporate Sustainability Assessment.

==> picture [271 x 273] intentionally omitted <==

==> picture [72 x 22] intentionally omitted <==

==> picture [302 x 405] intentionally omitted <==

==> picture [102 x 102] intentionally omitted <==

Financial Highlights H1 FY21 results

==> picture [72 x 22] intentionally omitted <==

Financial operating results

Performance ($m)	H1 FY21	H1 FY20	Growth $m	Growth %
Revenue1 Australia 401.7 400.5 1.2 0% Financial Services 11.7 12.6 (1.0) (8%) Asia 17.0 27.2 (10.2) (38%)
Group Revenue 430.4 440.3 (10.0) (2%) EBITDA2 Australia 288.6 271.5 17.1 6% Financial Services 4.4 4.3 0.1 1% Asia 1.7 6.3 (4.6) (73%) Corporate (10.1) (10.0) (0.1) (1%)
Group EBITDA before associates2 284.6 272.1 12.5 5% EBITDA Margin 66% 62% Associates 5.6 (4.9) 10.5 >100%
Group EBITDA2 290.2 267.2 23.0 9% EBITDA Margin 67% 61% Net profit2 172.1 152.9 19.2 13% Cash Balance 179.9 91.0 88.9 98% Earnings Per Share ('EPS') (cents)2 130.7 116.1 14.6 13% Dividend Per Share (cents) 59.0 55.0 4.0 7%
Reconciliation to Financial Statements ($m)	H1 FY21	H1 FY20	Growth $m	Growth %
Net profit from core operations 172.1 152.9 19.2 13% Restructure costs4 - (2.9) 2.9 n/m Historic tax provision4 (2.2) - (2.2) n/m Gain/(loss) on acquisitions and disposals and business combination transaction costs3, 4 3.5 (2.3) 5.8 >100% Reported netprofit 173.5 147.7 25.8 17%

(1) Revenue is defined as revenue from property and online advertising and revenue from Financial Services less expenses from franchisee commissions. (2) Financial results/highlights from core operations exclude significant non-recurring items such as gain/loss on acquisitions and disposals and transaction costs and historic tax provision (historic indirect tax provision reflects potential retrospective changes to interpretation of tax law). In the prior comparative period, they excluded items such as restructure costs and gain/loss on acquisitions and disposals and transaction costs. (3) Transaction costs incurred in the current period relate to the Group’s acquisition of Elara. Transaction costs incurred in the prior comparative period relate to the Group’s disposal of its investment in iProperty Singapore and its investment in the 99.co joint venture. (4) Net of tax.

==> picture [217 x 288] intentionally omitted <==

----- Start of picture text -----

Revenue ($m) [1]
H1 FY21 430.4
H1 FY20 440.3
H1 FY19 469.2
H1 FY18 406.8
H1 FY17 337.3
EBITDA ($m) [2]
H1 FY21 290.2
H1 FY20 267.2
H1 FY19 289.1
H1 FY18 242.8
H1 FY17 200.1
EPS (cents) [2]
H1 FY21 130.7
H1 FY20 116.1
H1 FY19 134.1
H1 FY18 111.8
H1 FY17 92.5
----- End of picture text -----

==> picture [72 x 22] intentionally omitted <==

Volatile market conditions

==> picture [409 x 308] intentionally omitted <==

----- Start of picture text -----

1
Residential Listing Changes
70%
20%
-30%
-80%
National Melbourne (metro) Sydney (metro)
Dwelling Commencement Changes [2]
50%
Now
40%
30%
20%
10%
-
(10%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY18 FY18 FY18 FY18 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23
(20%)
(30%)
(40%)
(50%)
Private Houses Private Attached Dwellings Total Private Dwellings
----- End of picture text -----

Residential listings

In Australia, the residential property market showed continued signs of recovery with National residential listings increasing 4% and Sydney listings increasing 19% for the half.
In contrast, the COVID-19 restrictions in Melbourne caused significant weakness in the first quarter.
Following the removal of COVID-19 restrictions in November, the Melbourne market rebounded, resulting in an overall 11% decrease in listings for the half.

Developments

8% YoY increase in project launches, assisted by government stimulus.
BIS Oxford has upgraded its FY21 forecast for new project commencements from -5% to +7%[2] .

==> picture [72 x 22] intentionally omitted <==

(1) REA Internal Data Jul 19 – Dec 20. (2) BIS Oxford BIA Data - dwelling commencements quarterly forecast at Dec 20.

Strong EBITDA performance

==> picture [412 x 270] intentionally omitted <==

----- Start of picture text -----

Group EBITDA ($m) [1]
22.5 290.2
14.8 (3.8)
(6.0)
(3.8)
267.2 (1.0) (10.2) 10.5
H1 FY20 Aus Aus Aus Aus Financial Asia Share of Operating H1 FY21
Group Residential Developer & Media, Data Subscriptions Services Revenue Losses of Expenses Group
EBITDA Depth Commercial & Other Associates & EBITDA
Depth Joint
Ventures
Revenue Associates Costs
----- End of picture text -----

Residential revenue increased 4%, due to increase in buy listings, stronger Premiere penetration, continued growth in add-on products and a one-off COVID-19 related impact resulting in a reduction in listings syndicated to MyFun.
Commercial and Developer revenue declined 7% due to a significant decline in commercial listings.
Media, data and other revenue declined by 12%, primarily driven by a reduction in Developer display advertising.
Subscription revenue declined due to discounts provided as part of COVID-19 support.
Asia revenue decreased due to renewed COVID-19 related lockdowns and continued cancellation of events across all markets, as well as the one-off reduction in syndicated MyFun listings.
Share of associates increased $10.5m due to the positive equity contribution from Move.
Operating expenses[2] decreased 13% as a result of strong cost management, COVID-19 related savings and deferral of marketing into the second half.

==> picture [72 x 22] intentionally omitted <==

Strong Premiere penetration

Residential Listing Penetration (depth)

==> picture [348 x 177] intentionally omitted <==

Residential listing depth penetration

Overall penetration and Premiere penetration maintained despite the significant Q1 FY21 listing declines in Melbourne.
Continued penetration and Premiere growth in NSW and QLD offsetting the COVID-19 impact from VIC.
Contracted price rises cancelled for FY21 across all depth categories.

==> picture [340 x 22] intentionally omitted <==

----- Start of picture text -----

H1 FY17 H2 FY17 H1 FY18 H2 FY18 H1 FY19 H2 FY19 H1 FY20 H2 FY20 H1 FY21
Premiere property Highlight property Feature property
----- End of picture text -----

Penetration is based on listings being on site for minimum 3 days.

==> picture [72 x 22] intentionally omitted <==

International performance impacted by COVID-19

==> picture [359 x 233] intentionally omitted <==

----- Start of picture text -----

Asia Asia
Revenue EBITDA [1]
$17.0m $1.7m
-38% -73%
Share of losses Share of losses Share of gain [2]
$1.1m $2.4m $9.4m
n/m +23% ($1.5m loss in PCP)
----- End of picture text -----

(1) Excludes share of losses of associates and joint ventures. Financial results/highlights from core operations exclude significant non-recurring items such as gain/loss on acquisitions and disposals and transaction costs and historic tax provision (historic indirect tax provision reflects potential retrospective changes to interpretation of tax law). In the prior comparative period, they excluded items such as restructure costs and gain/loss on acquisitions and disposals and transaction costs. (2) Financial results/highlights from core operations exclude significant nonrecurring items such as gain/loss on acquisitions and disposals and transaction costs and historic tax provision (historic indirect tax provision reflects potential retrospective changes to interpretation of tax law). In the prior comparative period, they excluded items such as restructure costs and gain/loss on acquisitions and disposals and transaction costs. (3) NewsCorp’s Form 10-Q stated in US Dollars for the six-month period ended 31 December 2020.

Asia

Revenue negatively impacted by renewed COVID19 related lockdowns, cancellation of events across all markets, adverse FX movements and the one-off COVID-19 related reduction in syndicated MyFun listings.
Prior period comparatives also include Singapore and Indonesia, which were deconsolidated from 1 March 2020 as part of the 99 Group transaction.
Revenue decline was partially offset by continued cost management across the region.
The Group moved to a controlling position of Elara in December 2020. REA will consolidate Elara’s earnings effective 1 January 2021.

North America

Move’s strong operational performance contributed to the Group’s profit during the half.
Reported revenue growth of 20% to US$293m[3] was due to the continued strength in the referral model and recovery in the traditional lead gen product, both benefitting from improved average monthly lead and transaction volumes. The result also benefitted from lower costs including the deferral of marketing costs.

==> picture [72 x 22] intentionally omitted <==

Operating results

==> picture [397 x 257] intentionally omitted <==

----- Start of picture text -----

Group Operating Results Growth [1,2]
30.0%
20.0%
10.0%
-
FY17 FY18 FY19 FY20 H1 FY21
(10.0%)
(20.0%)
Revenue growth Operational expenses growth
----- End of picture text -----

H1 FY21 revenue

The Group’s result reflects the diverse effects of the COVID-19 pandemic across Australia and the Group’s International businesses.

H1 FY21 costs

Continued focus on strong cost management resulted in a 13% reduction in total core operating expenditure[2] for the half.
All cost categories decreased due to a combination of ongoing cost management initiatives, COVID-19 related savings and the deferral of marketing spend into the second half.

FY21 target

The Group continues to prudently manage its cost base, targeting full year positive operating jaws, excluding the impact of acquisitions. The Group anticipates core operating costs for FY21 (excl. acquisitions) to be broadly in line with FY20.
Second half operating cost growth will increase as investment increases and the benefits of COVID19 related savings reduce.

==> picture [72 x 22] intentionally omitted <==

Continued investment in Capital Expenditure

==> picture [122 x 10] intentionally omitted <==

----- Start of picture text -----

Group Capital Expenditure
----- End of picture text -----

==> picture [373 x 169] intentionally omitted <==

----- Start of picture text -----

90.0 25%
80.0
70.0 20%
60.0
15%
50.0
40.0
10%
30.0
20.0 7% 7% 8% 8% 7% 5%
10.0
- 0%
FY17 FY18 FY19 FY20 H1 FY21
Once-off office fit out costs CapEx
Total Depreciation and Amortisation expense CapEx as a % of revenue (excl. office fit out)
Amount ($m) % of revenue
----- End of picture text -----

REA Group ($m)	H1 FY21 Actual	H2 FY21 Forecast	FY21 Forecast
Core depreciation & amortisation	34	34-36	68-70
Depreciation of leases	5	5	10
Elara amortisation	-	2-4	2-4
Total	39	41-45	80-84

Investment strategy

The Group continues to invest to support growth over the medium to long-term.
Investment focus is on consumer experience, new product delivery and supporting technology.

Fit out costs

No significant fit outs are planned for FY21.

Elara acquisition

H2 FY21 acquisition-related D&A anticipated range of $2-4m. Valuation of acquired assets will be finalised within 12 months of the acquisition date.

==> picture [72 x 22] intentionally omitted <==

Strong cash position

Group cash flow ($m)

464.7 (219.0) (119.1) (1.7) (56.7) (31.2) (3.1) (72.6) 222.8 (4.4) 179.9 Opening cash Receipts from Payments to Income taxes Net interest Payment for Capital Repayment of Payment of Other Closing cash balance customers suppliers paid paid subsidiary, expenditure borrowings dividends balance and employees associates and and leases convertible note Operating Activities Investing Activities Financing Activities Other

Cash flow highlights

Operating cash flows of $125m impacted by higher income tax payments following the temporary deferral of FY20 instalments as a result of COVID-19.
Lower receipts from customers driven by revenue decline and working capital movements were partly offset by lower payments to suppliers and employees.
Interim dividend payment of 59.0c per share, 7% higher than prior year.
Continued investment in innovation and acquisitions including a controlling interest in Elara.

Strong liquidity position

$149m loan facility and $20m overdraft facility remain undrawn and are in place to cover contingencies.
Drawn facilities fall due in Apr-21 ($70m) and Dec-21 ($170m).

==> picture [72 x 22] intentionally omitted <==

Current trading

COVID-19 continues to create market uncertainty

In January, national residential listings were flat, with an increase in Melbourne of 12% and Sydney down 1%.
Strong levels of buyer enquiry, underpinned by low interest rates and healthy bank liquidity.
Developer revenues are expected to be supported by growth in new developments in FY21, however the higher proportion of smaller projects is likely to impact average yield.
Commercial revenues are expected to remain challenged, with listings pressure anticipated to continue in the second half.
Asia revenues are likely to be negatively impacted for the remainder of FY21 given the severe COVID-19 restrictions still in place in Malaysia.
Targeting FY21 positive operating Jaws, excluding acquisitions.
Based on the current market outlook, targeting operating costs for FY21 to be broadly in line with FY20 (excluding impact of acquisitions).
Elara earnings will be consolidated from 1st January 2021. The EPS impact is expected to be marginally dilutive for FY21.

==> picture [720 x 335] intentionally omitted <==

----- Start of picture text -----

1
----- End of picture text -----

Supplementary Information

Strong performance in volatile market conditions

==> picture [650 x 164] intentionally omitted <==

----- Start of picture text -----

295.6 Group Revenue ($m)
4%
283.2
63.3
(7%) 68.4 42.8
(12%) 48.8 11.7 17.0
27.2
(8%) 12.6 (38%)
H1 FY21 H1 FY20 H1 FY21 H1 FY20 H1 FY21 H1 FY20 H1 FY21 H1 FY20 H1 FY21 H1 FY20
Aus: Residential Depth & Subs Aus: Commercial & Developer Depth & subs Aus: Media, Data & Other Aus: Financial Services Asia
----- End of picture text -----

Revenue category ($m)1	H1 FY21	H1 FY20	Growth
Australia
Depth revenue	333.5	322.5	3%
Subscription revenue	25.4	29.2	(13%)
Media, Data & Other	42.8	48.8	(12%)
FinancialServices	11.7	12.6	(8%)
Australian revenue	413.4	413.1	0%
Asia	17.0	27.2	(38%)
Total revenue	430.4	440.3	(2%)

==> picture [72 x 22] intentionally omitted <==

(1) Revenue is defined as revenue from property and online advertising and revenue from Financial Services less expenses from franchisee commissions.

Historical Revenue & EBITDA

==> picture [650 x 288] intentionally omitted <==

----- Start of picture text -----

Revenue, EBITDA and Margin
(core operations) [1]
1,000 70%
900
60%
874.9
800
807.7 820.3
700 50%
671.2
600
40%
500
501.2
400 463.7 475.6 30%
430.4
380.9
300 20%
290.2
200
10%
100
- 0%
FY17 FY18 FY19 FY20 H1 FY21
EBITDA after associates Revenue EBITDA margin
----- End of picture text -----

==> picture [72 x 22] intentionally omitted <==

Financial comparatives

	Core Operations1
	H1 FY17 H1 FY18 H1 FY19 H1 FY20 H1 FY21
Groupresults	$m Growth $m Growth $m Growth $m Growth $m Growth
Total revenue
Total operating income Operating expenses Share of losses of associates &joint ventures
EBITDA EBITDA margin Depreciation & amortisation
Earnings before interest and tax Net finance income/(expense)
Earnings before tax Income tax expense
Netprofit
Dividends per share (DPS) (cents) Earnings per share (EPS) (cents)

==> picture [72 x 22] intentionally omitted <==

Cash flow reconciliation

Cash flow reconciliation ($'m)	H1 FY21	H1 FY20	Growth
EBITDA1	290.2	267.2	9%
Working capital movement	(30.6)	(15.9)	(92%)
Net interest paid	(1.7)	(2.6)	31%
Income taxes paid	(119.1)	(88.8)	(34%)
Capital expenditure	(31.2)	(34.5)	10%
Other	(14.5)	3.2	<(100%)
Free cash flow	93.1	128.6	(28%)
Payment for acquisition of subsidiary, net of cash acquired	(39.4)	(15.9)	<(100%)
Payment for investment in associates and joint ventures	(5.4)	(2.0)	<(100%)
Proceeds from borrowings	-	169.5	(100%)
Repayment of borrowings and leases	(3.1)	(243.2)	99%
Dividends paid	(72.6)	(83.6)	13%
Purchase of convertible note receivable	(11.8)	-	n/m
Other	(3.8)	(0.3)	<(100%)
Net cash outflow	(43.0)	(46.9)	8%

==> picture [72 x 22] intentionally omitted <==

Visit our investor site at rea-group.com

Disclaimer: This presentation contains non-specific background information about REA Group’s current activities. This information is a summary only. Investors and potential investors should obtain independent advice. This information is not intended to provide advice to investors or potential investors and does not take into account the individual investment objectives, financial situation or needs of any particular investor(s). These factors should be considered when making investment decisions.

Investors: Graham Curtin General Manager Group Finance P: +61 3 8456 4288 E: [email protected]

Media: Prue Deniz

General Manager Corporate Affairs M: +61 438 588 460 E: [email protected]

==> picture [72 x 22] intentionally omitted <==

AI assistant

REA GROUP LTD — Investor Presentation 2021

65679_rns_2021-02-04_ac1430dc-c93b-4366-b779-31bf21eec82f.pdf

ASX Announcement 5 February 2021

REA Group Investor & Analyst Presentation Half-Year Results 31 December 2020

-ends-

For further information, please contact:

Stron result and ro ress on strate g p g gy

Results & market update

Strong result despite market volatility[1]

Listings and project commencements

Improving domestic market conditions

Progress on strategy

Building next generation marketplaces

H1 FY21 highlights

Expanding global exposure

Record realestate.com.au audience

Australian market update

Residential buy listings YoY*

Developer project launches YoY

Consistent growth strategy

Delivering rich consumer experiences backed by unrivalled data

Providing access to unique data & market intelligence

Trusted leader in property data and automated valuations

Delivering expert reports & analysis

Powering an informed News narrative

Building REA’s next generation rental marketplace

Strengthening Australia’s #1 place for Rent by reimaging REA’s rental marketplace

Our goal

How

Impact

International investments across large and

growing markets

REA Group is committed to sustainable practices

Creating positive change through our ESG focus

Environment – Increased Climate Change commitment

Social – Highly engaged workforce passionate about big issues

Governance – Increased investment in cyber security

Financial operating results

Volatile market conditions

Residential listings

Developments

Strong EBITDA performance

Strong Premiere penetration

Residential listing depth penetration

International performance impacted by COVID-19

Asia

North America

Operating results

H1 FY21 revenue

H1 FY21 costs

FY21 target

Continued investment in Capital Expenditure

Investment strategy

Fit out costs

Elara acquisition

Strong cash position

Cash flow highlights

Strong liquidity position

Current trading

Strong performance in volatile market conditions

Historical Revenue & EBITDA

Financial comparatives

Cash flow reconciliation

More from REA GROUP LTD

REA GROUP LTD Investor Presentation 2021