2 | investor presentation - domain...5 | investor presentation *fy19 h1 results exclude divestments...

2 | Investor Presentation

5 | Investor Presentation

•

-

-

-

•

*FY19 H1 results exclude divestments

**Like-for-like adjustments include extra week of trading in FY19, revenue deferral arising from extended duration of Platinum l istings, impact of acquisitions and accounting adjustments arising from the adoption of AASB 16.

Full details are contained in Appendix 2.

5

Revenue

Share of Profits (Loss)

Expenses

EBITDA

EBIT

Net profit attributable to members of the company

Earnings per share (EPS) ¢

147.0

-

(99.9)

47.0

25.0

12.9

2.22

164.9

(0.3)

(113.0)

51.6

37.5

20.9

3.59

(10.9%) (8.0%)

NM NM

11.5% 7.8%

(8.9%) (8.0%)

(33.4%) (23.7%)

(38.0%)

(38.3%)

6 | Investor Presentation

*FY19 H1 results exclude divestments (Compare & Connect in Consumer Solutions and Star Weekly in Print)

Residential

Media, Developers & Commercial

Agent Services

Core Digital

Consumer Solutions & Other

Digital

Print

Corporate

Domain Group

84.5

24.2

16.8

125.5

2.6

128.0

17.7

1.3

147.0

93.6

25.8

15.8

135.2

1.5

136.7

27.3

0.9

164.9

(9.7%)

(6.3%)

6.0%

(7.2%)

71.9%

(6.3%)

(35.2%)

38.3%

(10.9%)

51.5

(2.1)

49.4

5.1

(7.5)

47.0

55.9

(5.0)

50.9

9.1

(8.4)

51.6

(7.9%)

57.9%

(3.0%)

(43.2%)

10.2%

(8.9%)

41.0%

(81.9%)

38.6%

29.1%

32.0%

41.3%

(334.7%)

37.2%

33.2%

31.3%

•

-

-

-

7 | Investor Presentation

*Like-for-like depth revenue is adjusted for extra week in FY19 and impact of revenue deferral arising from new depth contract duration in FY20

** Source : Australian Property Monitors

6%9%

-2%

-17%

-9%

-2%

FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY20 Q1 FY20 Q2

Reported revenue

Like-for-like revenue*

National listings**

8 | Investor Presentation

9 | Investor Presentation

10 | Investor Presentation

11 | Investor Presentation

12 | Investor Presentation

Source: 1. Domain and APM PriceFinder data; 2. Domain internal

Volume % ch Yield % chJan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

2019 2018

0

100,000

200,000

300,000

400,000

500,000

Ja

n 1

4

Ju

n 1

4

Nov 1

4

Ap

r 15

Se

p 1

5

Feb

16

Ju

l 1

6

Dec 1

6

May 1

7

Oct

17

May 1

8

Nov 1

8

May 1

9

Nov 1

9

Domain Listings Competitor Listings

13 | Investor Presentation

Established Expanding Emerging

Continue to grow consumer

engagement and strengthen

market position

Targeted investment to

grow audience reach and

accelerate depth coverage

Continue to develop market position

via cost-effective marketing

and sales activities

Market Segments

Objective

Agent

coverage

Audience Expand reach

Pricing

Product

upsell

Increase in frequency Expand reach

High upsideMedium upside High upside

Key opportunity

FY20 H1 Volume vs

Yield (sale only)

Volume % ch Yield per listing % ch

High upside

Audience & engagement upside

Volume % ch Yield per listing % ch

High upside

Volume % ch Yield per listing % ch

High upside

Audience & engagement upside Audience & engagement upside

14 | Investor Presentation

Note: 1. Platinum and Gold only. 2. and 3. Platinum only

15 | Investor Presentation

National NSW Vic Qld SA WA

Jun-19 Nov-19

1. Top-of-mind (TOM) brand awareness refers to a brand or product being first in customers' minds when thinking of a particular industry or category. Source : YouGov Omnibus November 2019 report, % change between June and November 2019

2. App Figures as at Dec 2019. Incl. Domain+Allhomes, FY20 H1 YoY growth 3. Domain Internal FY20 H1 YoY growth Domain and Allhomes 4. Domain Internal FY20 H1 YoY growth 5. Domain internal FY20 H1 YoY growth for Domain

6. Domain internal FY20 H1 YoY growth

1. Top-of-mind (TOM) brand awareness refers to a brand or product being first in customers' minds when thinking of a particular industry or category. Source : YouGov Omnibus November 2019 report, % change between June and

November 2019 2. Nielsen Market Intelligence-Domestic Traffic, Website sessions in Queensland for Domain.com.au and Allhomes.com.au combined (excludes app), October 2019 YoY. 3. Domain internal, October 2019 YoY growth.

4 Domain internal, FY20 H1 (Average) YoY growth 5. Domain internal (sale only), FY20 H1 YoY growth

16 | Investor Presentation

17 | Investor Presentation

*Source: OzTAM

18 | Investor Presentation

Source: Australian Property Monitors – New ‘For Sale’ Listings (Total market)

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

July Aug Sept Oct Nov Dec Jan Feb March April May June

2017/18 2018/19 2019/20

2,000

4,000

6,000

8,000

10,000

12,000

July Aug Sept Oct Nov Dec Jan Feb March April May June

2017/18 2018/19 2019/20

2,000

4,000

6,000

8,000

10,000

12,000

14,000

July Aug Sept Oct Nov Dec Jan Feb March April May June

2017/18 2018/19 2019/20

0

200

400

600

800

1,000

1,200

July Aug Sept Oct Nov Dec Jan Feb March April May June

2017/18 2018/19 2019/20

19 | Investor Presentation

Source: Australian Property Monitors – New ‘For Sale’ Listings (Total market)

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

July Aug Sept Oct Nov Dec Jan Feb March April May June

2017/18 2018/19 2019/202,000

3,000

4,000

5,000

6,000

7,000

July Aug Sept Oct Nov Dec Jan Feb March April May June

2017/18 2018/19 2019/20

0,700

1,200

1,700

2,200

2,700

3,200

July Aug Sept Oct Nov Dec Jan Feb March April May June

2017/18 2018/19 2019/20

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

July Aug Sept Oct Nov Dec Jan Feb March April May June

2017/18 2018/19 2019/20

20 | Investor Presentation

Gold & Silver

Platinum

Note : Residential depth product penetration disclosure previously reflected % of new “for sale and rent” listings. This has been updated to “for sale” listings only as more reflective of revenue

21 | Investor Presentation

22 | Investor Presentation

23 | Investor Presentation

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

24 | Investor Presentation

25 | Investor Presentation

26 | Investor Presentation

27 | Investor Presentation

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

28 | Investor Presentation

29 | Investor Presentation

* Excludes divestment of Compare & Connect

30 | Investor Presentation

31 | Investor Presentation

32 | Investor Presentation

* Excludes divestment of Star Weekly

33 | Investor Presentation

•

•

•

•

−

−

−

•

35 | Investor Presentation

•

•

•

37 | Investor Presentation

Revenue

Share of Profits (Loss)

Expenses

EBITDA

Depreciation & Amortisation

EBIT

Net Finance Costs

Net Profit / (Loss) Before Tax

Tax (Expense)/ Benefit

Net Profit / (Loss) After Tax

Net Profit Attributable to Non Controlling

Interest

Net Profit / (Loss) Attributable to Members of

the Company

Earnings Per Share (EPS) (¢)

157.6

-

(103.3)

54.3

(22.1)

32.3

(2.8)

29.4

(6.6)

22.8

(3.4)

19.4

3.32

(10.6)

-

3.3

(7.3)

-

(7.3)

(0.7)

(7.9)

(0.4)

(8.3)

1.9

(6.4)

147.0

-

(99.9)

47.0

(22.1)

25.0

(3.5)

21.5

(7.1)

14.5

(1.5)

12.9

2.22

-

-

-

-

-

-

-

-

-

-

-

-

-

147.0

-

(99.9)

47.0

(22.1)

25.0

(3.5)

21.5

(7.1)

14.5

(1.5)

12.9

2.22

38 | Investor Presentation

Revenue

Share of Profits (Loss)

Expenses

EBITDA

Depreciation & Amortisation

EBIT

Net Finance Costs

Net Profit / (Loss) Before Tax

Tax (Expense)/ Benefit

Net Profit / (Loss) After Tax

Net Profit Attributable to Non Controlling

Interest

Net Profit / (Loss) Attributable to Members of

the Company

Earnings Per Share (EPS) (¢)

186.3

(0.3)

(311.3)

(125.3)

(14.4)

(139.6)

(4.7)

(144.3)

(9.8)

(154.1)

(2.2)

(156.4)

(26.94)

(2.5)

-

180.5

178.0

-

178.0

-

178.0

(0.5)

177.5

-

177.5

183.9

(0.3)

(130.8)

52.7

(14.4)

38.4

(4.7)

33.7

(10.3)

23.4

(2.2)

21.1

3.64

(19.0)

-

17.9

(1.1)

0.2

(0.9)

(0.0)

(0.9)

0.4

(0.5)

0.2

(0.3)

164.9

(0.3)

(113.0)

51.6

(14.1)

37.5

(4.7)

32.8

(9.9)

22.9

(2.0)

20.9

3.59

*Note: Divestments include Compare & Connect and Star Weekly.

39 | Investor Presentation

Statutory expenses

Less : Significant items

Statutory excluding significant items

Less : Disposals

Trading expenses

Comprising

Consumer Solutions expenses

Underlying expenses

(311.3)

180.5

(130.8)

17.9

(113.0)

(6.3)

(106.7)

66.8%

n/a

23.6%

n/a

11.5%

25.7%

10.7%

(103.3)

3.3

(99.9)

-

(99.9)

(4.7)

(95.3)

Operating expenses – Property, Repairs & Maintenance

Depreciation and amortisation

Interest expense

Net Profit

4

(4)

(1)

(1)

7-8

(8)-(9)

(1)-(2)

(2)-(3)

*Note: FY19 H1 results exclude divestments (Compare & Connect in Consumer Solutions and Star Weekly in Print)

42%

15%

24%

10%

1%8%

Staff

Production andDistribution

Promotion

Software andCommunications

Property, Repairs andMaintenance

Other

$99.9m

38%

16%

22%

9%

4%

11%

Staff

Production andDistribution

Promotion

Software andCommunications

Property, Repairs andMaintenance

Other

$113.0m

40 | Investor Presentation

•

Impairment of goodwill

Income tax benefit

Impairment of goodwill, net of tax

Restructuring charges

Gain on debt refinance

Income tax benefit

Restructuring charges, net of tax

Gain on contingent consideration payable and sale of controlled entities

Income tax expense

Gain on contingent consideration payable and sale of controlled entities, net of tax

Significant items, net of tax

-

-

-

(2.1)

0.7

0.4

(1.1)

9.4

-

9.4

8.3

(178.8)

-

(178.8)

(1.6)

-

0.5

(1.1)

2.5

-

2.5

(177.5)

41 | Investor Presentation

Cash from Trading

Net Finance Charges

Tax Payments

Net Cash Inflow from Operating Activities

Investment in PP&E and Software

Net Investment in Businesses/ Ventures

Net Cash Outflow from Investing Activities

Proceeds from Borrowings

Dividends Paid

Lease Payments

Net Other

Net Cash Outflow from Financing Activities

Net Cash (Outflow) / Inflow

Cash at Beginning of Period

Cash at End of Period

51.5

(3.5)

(22.1)

25.9

(10.9)

(19.7)

(30.6)

0.2

(27.8)

(4.3)

1.6

(30.4)

(35.1)

49.3

14.2

57.9

(3.6)

(9.2)

45.1

(11.3)

(2.6)

(13.9)

-

(25.4)

-

(0.3)

(25.7)

5.5

60.8

66.3

42 | Investor Presentation

•

•

Non Current

Syndicated Bank Facility

Total Debt Facilities

225.0

225.0

163.0

163.0

50.0

100.0

150.0

FY20 FY21 FY22 FY23 FY24$A

m

Undrawn

Drawn

43 | Investor Presentation

•

•

Cash 14.2 49.3

Trade and Other Receivables 45.6 46.0

Current Lease Assets 1.1 -

Current Assets 60.9 95.3

Intangible Assets 1,383.6 1,365.2

Property, Plant and Equipment 13.8 15.9

Non-Current Lease Assets 45.2 -

Non Current Assets 1,442.5 1,381.1

Total Assets 1,503.5 1,476.4

Current Lease Liability 10.2 -

Other Current Liabilities 44.6 61.1

Current Liabilities 54.9 61.1

Interest Bearing Liabilities 162.1 162.5

Non-Current Lease Liability 43.3 -

Provisions 5.4 11.2

Deferred Tax Liabilities 76.7 78.0

Non Current Liabilities 287.6 251.8

Total Liabilities 342.4 312.9

Net Assets 1,161.0 1,163.5

Contributed Equity 1,290.3 1,289.7

Reserves (35.2) (35.0)

Retained Profits (98.5) (94.6)

Total Parent Equity Interest 1,156.6 1,160.1

Non-Controlling Interest 4.4 3.4

Total Equity 1,161.0 1,163.5

Net Debt / (Cash) 147.9 113.2

46 | Investor Presentation

Core Digital

Consumer Solutions & Other

Digital

Print

Total Non Controlling Interest

(2.7)

1.0

(1.6)

0.1

(1.5)

(2.7)

1.3

(1.5)

(0.5)

(2.0)

47 | Investor Presentation

FY20 H1 Reported

Adjustments:

Revenue deferral from extended duration

Acquisitions

AASB 16

FY20 H1 Adjusted (like-for-like)

FY19 H1 Reported

Adjustments:

Extra week of trading

FY19 H1 Adjusted (like-for-like)

% change like-for-like

147.0

1.4

(0.8)

147.6

164.9

(4.4)

160.5

(8.0%)

(99.9)

0.9

(3.6)

(102.6)

(113.0)

1.7

(111.2)

7.8%

47.0

1.4

0.1

(3.6)

45.0

51.6

(2.7)

48.9

(8.0%)

48