28 February 2020

Full Year

for the year ended 31 December 2019

Results

Agenda

2

1. FY 2019 HighlightsPeter Brooks-Johnson, CEO

2. FinancialsRobyn Perriss, FD

3. Housing market updatePeter Brooks-Johnson, CEO

4. Strategic updatePeter Brooks-Johnson, CEO

5. Outlook

6. Appendix

1. FY 2019 HighlightsPeter Brooks-Johnson, CEO

3

Highlights

4

Revenue up to £289.3m (2018: £267.8m)

+8%

Revenue:

Underlying operating profit1

increased to £219.7m (2018: £203.3m)

+8%

Profit:

Underlying basic EPS2

increased to 20.2p (2018:18.3p)

+10%

EPS:

Total dividend of 7.2p (2018: 6.5p) per ordinary share.

Final dividend increased by 0.4p to 4.4p (2018: 4.0p)

+11%

Dividend:

Free cash flow returned to shareholders through dividends and buybacks

(2018: £168.5m)

£148.8mCash returned:

Membership as at 31 December 2019 down 3% year on year

(2018: 20,454)

19,809Advertisers3:

Time in minutes down 1% year on year (2018: 12.28bn)

12.13bnSite traffic4:

Per month, up £83(2018: £1,005)

£1,088ARPA3:

4

1. Before share-based payments and NI on share-based incentives

2. Before share-based payments, NI on share-based incentives and no related adjustment for tax

3. For Agency and New Homes customers 4. Source: Google Analytics

• Two further iterations of Tenant Passport experiment

• Acquisition of Van Mildert, a tenant referencing company in September

• Launch in September of mortgage tools with Nationwide Building Society

• Auto Featured Property launched in May

• Next generation digital marketing solution ‘Rightmove Active Extension’ launched in June

• New Optimiser 2020 package launched in November

• New intelligent product ‘Sold by Me’ launched in November

Innovating

in property advertising

Innovating

for agent efficiency

• Launch of a new version of our Best Price Guide in June

• New algorithm powered intelligent tool ‘Opportunity Manager’ launched in November

Innovating

for future growth

Strategic Highlights

5

2. FinancialsRobyn Perriss, FD

6

Revenue

7

Revenue

£ m

illio

ns

220.0

243.3

267.8

289.3

0

50

100

150

200

250

300

2016 2017 2018 2019

£ m

illio

ns

Revenue Bridge

7 Source: Rightmove

Number of

customers

8

Membership and ARPA

£842

£922

£1,005

£1,088

0

2,000

4,000

6,000

8,000

10,000

12,000

2016 2017 2018 2019

+9%

+8%

+10%

£80

£83

£83

20,121 20,427 20,454 19,809

0

2

4

6

8

10

12

14

16

18

20

22

2016 2017 2018 2019

• Agency branches down 6% since the start of the year to 16,347

• New Homes developments up 11% to 3,462

• We continue to be the only place to see virtually the whole UK property market with 900,000 properties

Membership1

ARPA1

Th

ou

san

ds

£ p

er

bra

nch

/de

ve

lop

me

nt

pe

r y

ear

Membership numbers down 3%

Continued ARPA growth2

8 Source: Rightmove 1: For Agency and New Homes customers 2. Last 12 Months

£1,088

£960

£980

£1,000

£1,020

£1,040

£1,060

£1,080

£1,100

LT

M A

RP

A

9

Cost, profit and margin

75.5% 75.8% 75.9% 75.9%Margin:

53.8

58.964.5

69.6

0

10

20

30

40

50

60

70

80

2016 2017 2018 2019

£ m

illio

ns

Costs1

£ m

illio

ns 166.2

184.4

203.3

219.7

0

50

100

150

200

250

2016 2017 2018 2019

Underlying operating profit1

9

Source: Rightmove

1. Before share-based payments and NI on share-based incentives

Income statement

10

Year ended31 December 2019

£m

Year ended31 December 2018

£m

Revenue 289.3 267.8

Operating costs (69.6) (64.5)

Underlying operating profitUnderlying operating profit margin

219.775.9%

203.375.9%

Share-based payments (4.9) (4.3)

NI on share-based incentives (1.1) (0.4)

Operating profit 213.7 198.6

Net financial expense (0.1) (0.3)

Profit before tax 213.6 198.3

Income tax expense (40.5) (37.8)

Profit for the year 173.1 160.5

10 Source: Rightmove

8%

8%

Growth YOY

8%

Summary balance sheet

11

As at 31 December 2019

£m

As at 31 December 2018

£m

Property, plant and equipment 12.8 15.2

Intangible assets 21.9 2.9

Deferred tax assets 2.7 2.8

Total non-current assets 37.4 20.9

Trade and other receivables 24.0 22.5

Contract assets 0.4 0.4

Cash and money market deposits 36.3 19.9

Total current assets 60.7 42.8

Trade and other payables (19.5) (18.1)

Contract liabilities (2.1) (2.1)

Lease liabilities (12.2) (13.0)

Income tax payable (18.9) (16.8)

Deferred tax liabilities (0.9) -

Provisions (3.2) (1.1)

Total liabilities (56.8) (51.1)

Net assets 41.3 12.6

11 Source: Rightmove

Cash bridge and dividend

• £148.8m (2018: £168.5m) returned to shareholders in the year

• 16.3m (2018: 25.0m) shares bought back at an average price of £5.45 and cancelled

• Closing cash and money market deposits of £36.3m (2018: £19.9m)

• Final dividend increased by 0.4p to 4.4p bringing the full year dividend to 7.2p (2018: 6.5p) up 11%

Full year 2019

£m

illio

ns

Cash Dec 2018

EBITDA before IFRS 2

Working capital

Tax payments

Capex AcquisitionofVan Mildert

Share buybacks (incl costs)

Dividends Lease payments

Other incl net interest

Cash

Dec 2019

Source: Rightmove12

3. Housing market updatePeter Brooks-Johnson, CEO

13

Source: 1. HMRC 2. Rightmove (adjusted for working days)

1,6

70

1,6

13

90

0

85

8

88

6

88

5

93

3

1,0

73

1,2

19

1,2

30

1,2

35

1,2

20

1,1

91

1,1

74

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Tra

nsa

ctio

n (t

ho

usa

nd

s)

The UK housing market is resilient, but the leading indicators were slow in H2

• The number of housing transactions in 2019 was only 1.4% lower than 2018

• Notable slow down in new listings in Q3 reduced the amount of available stock by 10% at the end of the year compared to 2018

• Reduction in available stock yet to be apparent in transaction numbers, but limited choice may hamper transaction numbers in early 2020 if it does not reverse

Housing Transactions 2006-2019 (UK)1

New Sales Listings Compared to 20182

14

80%

85%

90%

95%

100%

40%

60%

80%

100%

120%

140%

160%

Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19

Pro

po

rtio

n o

f 2

01

7

Estate Agency membership compared to 2017

Leaver Rate Joiner Rate

0%

5%

10%

15%

20%

25%

1-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 91-100 100+

Branch stock level

December 2018 December 2019

Increasing time to sell led to a cash flow impact in H1 2019 for low stock branches

• Buyer hesitancy increased time to sell notably at the end of 2018 and into 2019

• Anecdotal evidence that time to complete also increased

• Low-stock branches more vulnerable to cash flow impact of increased transactions times

• Slow down in Agency leavers in second half of 2019

Branch distribution by sales stock

15 Source: Rightmove

0%

50%

100%

150%

200%

250%

Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19

Pro

po

rtio

n o

f 2

01

7

Site Sold Rate New Development Listing Rate

Developers brought forward

listings in late 2018/early 2019 to

combat sales rate decline

New listings/site sold

rates balanced in H2 2019

leading to small growth in

developments listed

New Homes development flow was consistent in the second half of 2019New Homes development numbers indexed to 2017

16 Source: Rightmove

0

1,000

2,000

3,000

4,000

July August September October November December

Developments numbers in second half of 2019

Early 2020 market encouraging, but demand outstripping supply

• Respite from uncertainty leading to significant increase in activity post election:

• Record traffic in January, over 150m visits in a month for the first time with consumers spending nearly 1.2bn minutes on Rightmove

• Demand up on a year ago in most regions

• New property listing numbers are slower to recover:

• New listings in January 2020 at the same level as January 2019, February looking more positive

• Fewer and smaller price reductions than last two years

Consumer demand January 2020 vs January 2019

17 Source: Rightmove

80%

85%

90%

95%

100%

105%

2014 2015 2016 2017 2018 2019 2020

• Looking forward, slower H2 2019 will impact some agents in early 2020:

• Some smaller agents will continue to struggle with lack of cash flow from the slower activity

• Slower listings market has an impact on hybrid agents

January sales agreed (indexed to 2014)

Early 2020 market encouraging, but some agents will be impacted by H2 2019 overhang • Commission rates slightly increased and the

overall Agency revenue pool is at least stable

• Sales agreed up over 12% on January 2019

• Sale fall through rate at its lowest since 2014

• Market fundamentals remain positive:

• Employment rates remain at record high

• Mortgage interest rates remain low

• Certainty, for now

18 Source: Rightmove

4. Strategic updatePeter Brooks-Johnson, CEO

19

Making home moving easier in the UK

• The place consumers ‘turn to first’ and engage with most

• Offer unrivalled exposure, leads and products for our customers

• Innovate to create a better marketplace

The three pillars of our strategy:

Our aim is to create a simpler and more efficient property marketplace

BuyersSellersRentersLandlords

AgentsDevelopers

The place consumers turn to first and engage with most

Unrivalled exposure, leads and products for our customers

20

SIMPLICITY

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

0

2

4

6

8

10

12

14

2015 2016 2017 2018 2019

Bill

ion

s o

f V

isit

s

Time Visits

Bill

ion

s o

f M

inu

tes

• Continuing high engagement with 12.1 billion minutes spent on Rightmove

• Over 1.6 billion visits in 2019, up 2% year on year

• Time spent per property listed increased 4%, however fewer properties reduced total time by 1%

• Traffic to our research tools grew 7% with consumers spending over 480 million minutes on features such as sold prices

• 40.5 million leads sent to our customers, 2% more per property listed, but 4% down on 2018 in total

0%

20%

40%

60%

80%

100%

Rightmove Zoopla Primelocation OnTheMarket

Comscore methodology change

The place consumers ‘turn to first’ and engage with most

21 Source: 1. Google Analytics & Rightmove 2. Comscore

Traffic1

Market Share of top 4 property portals2

• 38% of Agency branches now taking either the Enhanced or

Optimiser package, up from 27% in December 2018

• Record revenue from digital marketing solutions for New

Homes developers gaining targeted access to our unique in-

market audience of home hunters

• Encouraging early sales of new Optimiser 2020 package

launched in November with nearly 200 sales in two months

at an average uplift of just under £300

• 2020 product sales and pricing progressing according to

plan

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2017 2018 2019

Enhanced package1

0

1

2

3

4

5

6

7

8

9

2015 2016 2017 2018 2019

£ m

illio

ns

Digital marketing solutions revenue2

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2015 2016 2017 2018 2019

Optimiser package1

Unrivalled exposure, leads and products for our customers

22 Source: Rightmove 1.Estate and rental agents 2.New Homes developers

Innovating for property advertising

23

• Influencing potential sellers early in their journey is important to ensure agents are part of the potential seller’s “consideration phase”

• Sellers tend to consider agents who successfully sell “properties like mine”

• Sold By Me Automatically and dynamically targets sellers moving locally and out of area by showcasing an agent’s success on the most viewed page on Rightmove

• Properties are automatically chosen to be closest to a seller’s home location where we know it and maximum price

• Exclusively available to customers who take the new Optimiser 2020 package

• Good consumer engagement with over 100,000 consumer interactions in January alone

Innovating for agent efficiency

24

• Nearly two thirds of home hunters sending a Rightmove lead have yet to select an agent to sell their current home

• In a recent exercise 87% of agents missed an instruction opportunity in a lead1

• Opportunity Manager uncovers potential sellers within the pool of buyers an agent already knows just before they’re ready to consider instructing an agent

• It helps agents prioritise and manage the contact with those prospects

• Powered by a real time algorithm to intelligently spot buyers that are most likely to turn into potential home sellers in the agent’s area

Opportunity Manager rolled out as part of Optimiser 2020 package

1. Property Academy - mystery shopping for the Best Estate Agent Guide 2019, based on 4,300 sales calls

Opportunity Manager can be enhanced by several Rightmove products

25

Auto Featured PropertyLocal Valuation AlertRightmove Discover

Opportunity Manager

Innovating for future growth

26

Help home moversbe “transaction ready”

Help property professionals be

more efficient

Opportunity

Helping tenants to be transaction ready

27

Lettings process dogged by lack of visibility for tenant and agent, duplicate data entry, last minute reference failures and a lack of pace leading to wasted effort for tenant and agent

Rightmove is in a unique position to create integration efficiencies for agent and landlord whilst generating revenue and commission for agents

Prototype to simplify and automate communication between agent and tenant

Referencing order flow integration in progress

Referencing speed improvements under way

Market leading landlord protection insurance. Rightmove experience in digital marketing yet to be deployed

Search View Reference Contract Move in

Rightmove Passport Van Mildert Van Mildert Insurance

Customer efficiency

Revenue Growth

Rightmove tenant proposition

Lo

ng

te

rm o

pp

ort

un

ity

Fo

r R

igh

tmo

ve

Init

iati

ves

Ca

pab

ility

Jou

rne

y

5. OutlookPeter Brooks-Johnson, CEO

28

29

Outlook

• Continued ARPA growth driven by customers spending more on packages and pricing with 2020 pricing rollout according to plan

• Customer numbers in the first half of 2020 likely to follow a similar trajectory to the second half of 2019 as a result of the slower listing market

• More product innovation on track for delivery in 2020

• Confident in delivering the Board’s full year expectations

29