An in depth look at the trends impacting the global property portal industry by Simon Baker, the founder of Property Portal Watch, the former CEO/MD of the REA Group, the former Chairman of iProperty Group and a serial investor in the property portal industry

1. Trends in the Property Portal
World
Property Portal Watch Conference
Barcelona
1 October 2014
Simon Baker
Chairman Property Portal Watch

2. Types of Property Portal Markets
Market Characteristics Example Markets
Established Market structure established
Business model finalised
Leaders are “real” businesses
Online now the dominant property advertising medium
Western Europe
US
Australia
Emerging Market structure still emerging but a few strong players
Industry becoming more comfortable with online
Strong revenue growth
Focus on signing up customers / opening markets
Hong Kong, Singapore,
Malaysia, Brazil,
Mexico, Middle East,
South Africa
Early Stage Internet starting to get traction as advertising medium
Many players with no clear leader
Small / no revenues being generated
Most players are underfunded
Africa (excluding SA),
Majority of South
Amercia, Eastern
Europe, Parts of Asia

3. Trends in Established Markets

4. Key Trends in the Established Property Portal World
1. Revenue growth flattening – but still good

5. Annual Revenue Growth – Selected Examples (non US)
100%
80%
60%
40%
20%
0%
-20%
2006 2007 2008 2009 2010 2011 2012 2013 2014 (e)
Source: Annual reports, Analyst forecasts
REA Group
Rightmove
European Portal
15 – 30%

6. Key Trends in the Established Property Portal World
1. Revenue growth flattening – but still good
2. Leaders aggressively driving ARPA growth

7. ARPA Growth for Rightmove and REA Group (Aust)
REA Group Rightmove
AUD ~3,000
June 2014
30% Year on Year Growth in FY2014
13% Year on Year Growth in H1 2014
Source: Analyst Presentations, Shareholder Presentations (was 15% in 2013)

8. Drivers of Rightmove Growth (Agents & New Homes)
112.5
Volume
Increase
(709 new)
Price
Increase
GBP m
Source: Annual Report, Investor Presentation, PPW Analysis
134.2
4.5
5.9
11.3
New
Product
Sales
(Depth)
2012 2013
Depth
Revenue
(35%)
Subs
Revenue
(65%)
Depth
Revenue
(31%)
Subs
Revenue
(69%)

9. Drivers of Rightmove Growth (Agents & New Homes)
112.5
Volume
Increase
(709
new)
Price
Increase
GBP m
Source: Annual Report, Investor Presentation, PPW Analysis
134.2
4.5
5.9
11.3
New
Product
Sales
(Depth)
2012 2013
Depth
Revenue
(35%)
Subs
Revenue
(65%)
Depth
Revenue
(31%)
Subs
Revenue
(69%)

10. Drivers of Rightmove Growth (Agents & New Homes)
112.5
Price
Increase
GBP m
Source: Annual Report, Investor Presentation, PPW Analysis
134.2
4.5
5.9
11.3
New
Product
Sales
(Depth)
2012 2013
Depth
Revenue
(35%)
Subs
Revenue
(65%)
Depth
Revenue
(31%)
Subs
Revenue
(69%)
Volume
Increase
(709
new)

11. Drivers of Rightmove Growth (Agents & New Homes)
112.5
GBP m
Source: Annual Report, Investor Presentation, PPW Analysis
134.2
4.5
5.9
11.3
New
Product
Sales
(Depth)
2012 2013
Depth
Revenue
(35%)
Subs
Revenue
(65%)
Depth
Revenue
(31%)
Subs
Revenue
(69%)
Price
Increase
Volume
Increase
(709
new)

12. Key Trends in the Established Property Portal World
1. Revenue growth flattening – but still good
2. Leaders aggressively driving ARPA growth
3. Focus on cost management / EBITDA % growth

13. EBITDA Margin – Selected Portals (non-US)
80%
70%
60%
50%
40%
30%
20%
10%
0%
2009 2010 2011 2012 2013 2014 (e)
Source: Company Reports, Analyst Presentations
REA Group
Rightmove
Soufun

14. Key Trends in the Established Property Portal World
1. Revenue growth flattening – but still good
2. Leaders aggressively driving ARPA growth
3. Focus on cost management / EBITDA % growth
4. Mobile is most important channel

15. Percentage of Traffic from Mobile Devices
% Traffic from Mobile
Zillow (1/14) 66%
Move (3/14) 53%
Zoopla (4/14) >50%
Trulia (3/14) 49%
Homes.com (3/14) 44%
Rightmove (4/14) ~43%
realestate.com.au (FY 2014) 43%
Immoscout24 (5/13) 43%

16. Key Trends in the Established Property Portal World
1. Revenue growth flattening – but still good
2. Leaders aggressively driving ARPA growth
3. Focus on cost management / EBITDA % growth
4. Mobile is most important channel
5. Major funds / companies buying portals

17. Ownership Consolidation in Established Markets
In Market Out of Market
Axel Springer (Germany) Immonet.de (#2/3) Seloger (France) #1 Vertical
Immoweb (Belgium) #1
Yad2 (Israel) #1
Hellman & Friedman
(USA)
ImmobilienScout24 (#1) PropertyGuru Group (SE Asia) #2
ImmoScout24.ch
ImmoScout24.at
Schibsted (Sweden) Blocket LeBonCoin.fr (France)
Finn.no (Norway)
Fotocasa (Spain)
Subito (Italy)
Willhaben (Austria)
Mudah (Malaysia)
Others
Tiger Global (US) Commonfloor (India)
Daft.ie (Ireland)
Idealista (Spain)
Private Property (South Africa)
Redfin (USA)
Others

18. Ownership Consolidation in Established Markets (Cont.)
In Market Out of Market
New Corp (USA) Move Inc (#3) REA Group (62%)
iProperty Group (17%)
80% 20%

19. Move Inc. Revenues and Net Income – A Challenge
252
290
248
242
212
198
192
199
227
-7
-15
7 6
1
2005 2006 2007 2008 2009 2010 2011 2012 2013
Revenue
Net Income
USD $m

20. In Market Consolidation – Zoopla Closing the Gap
In Market
Zoopla Propertyfinder
Upmystreet
Thinkproperty
Byteplay
Findaproperty (Merger)
Primelocation (Merger)

21. Gap Between Zoopla and Rightmove Stablized

22. Zillow and Trulia Consolidation in the US

23. Zillow and Trulia Share Price Movement

24. Zillow and Trulia Share Price Movement

25. Key Trends in the Established Property Portal World
1. Revenue growth flattening – but still good
2. Leaders aggressively driving ARPA growth
3. Focus on cost management / EBITDA % growth
4. Mobile is most important channel
5. Major funds / companies buying portals
6. Equity market more excited about business potential

26. Market Cap of Listed Stocks (US$ m)
6,000
5,000
4,000
3,000
2,000
1,000
14 Month
Growth
Jul-11
Jul-12
Jul-13
NOovc-t1 134
43% 132% 95% 2% 75% 83%
0
REA Zillow Soufun Rightmove Trulia Move

27. Revenue Multiple of Selected Listed Stocks
25
20
15
10
5
0
Zillow Rightmove REA Trulia Soufun Move
May-13
Oct-13

28. EBITDA Multiple of Selected Listed Stocks
100.0
50.0
0.0
-50.0
-100.0
-150.0
-200.0
Zillow Trulia Move Rightmove REA Soufun Average

29. Key Trends in the Established Property Portal World
1. Revenue growth flattening – but still good
2. Leaders aggressively driving ARPA growth
3. Focus on cost management / EBITDA % growth
4. Mobile is most important channel
5. Major funds / companies buying portals
6. Equity market more excited about business potential
7. Horizontal players challenging vertical players

30. Key Trends in the Established Property Portal World
1. Revenue growth flattening – but still good
2. Leaders aggressively driving ARPA growth
3. Focus on cost management / EBITDA % growth
4. Mobile is most important channel
5. Major funds / companies buying portals
6. Equity market more excited about business potential
7. Horizontal players challenging vertical players
8. International advertising of listings

31. Local Sites Marketing International Listings Only

32. International Sections – Promoting Overseas Locally
Rightmove – 3.6
million international
searches each month

33. Rise of International Listing Syndicators
Syndi-cator
Portal 1
Portal 2
Portal 3
Portal 4
Portal 5
Global Network of
Sites e.g.
Reseller
Portal
Agent /
Developer

34. Key Trends in the Established Property Portal World
10. Branding for Leaders Moving to Lifestyle

35. Mature Sites Moving to Lifestyle Branding
Copyright Version 1.0 Property Portal Watch 35

36. Strong Investment in 2014 Branding Campaigns
Portal Investment
Realestate.com.au (AU) TV
Rightmove (UK) TV, Outdoor
Zillow (US) USD 65 m Total Advertising
Realtor.com (US) USD 35 m TV, Radio,Web
Zoopla (UK) (#2) TV
Trulia (US) (#2) USD 45 m TV, Radio, Web
Copyright Version 1.0 Property Portal Watch 36

37. Key Trends in the Established Property Portal World
10. Branding for Leaders Moving to Lifestyle
11. Agents are Rebelling

38. Agent Owned and Controlled Sites

39. Trends in Emerging & Early Stage Markets

40. Types of Property Portal Markets
Market Characteristics Example Markets
Established Market structure established
Business model finalised
Leaders are “real” businesses
Online now the dominant property advertising medium
Western Europe
US
Australia
Emerging Market structure still emerging but a few strong players
Industry becoming more comfortable with online
Strong revenue growth
Focus on signing up customers / opening markets
Hong Kong, Singapore,
Malaysia, Brazil,
Mexico, Middle East,
Sth Africa
Early Stage Internet starting to get traction as advertising medium
Many players with no clear leader
Small / no revenues being generated
Most players are underfunded
Africa (excluding SA),
Majority of South
Amercia, Eastern
Europe, Parts of Asia

41. Key Trends in the Emerging Property Portal World
1. Growth is still strong

42. Annual Revenue Growth – Emerging Market Examples
90%
80%
70%
60%
50%
40%
30%
20%
10%
Source: Annual reports, Analyst forecasts
iProperty Soufun
ESTABLISHED MARKETS
0%
2010 2011 2012 2013 2014

43. Key Trends in the Emerging Property Portal World
1. Growth is still strong
2. Property developer segment critical to success

44. Key Trends in the Emerging Property Portal World
1. Growth is still strong
2. Property developer segment critical to success
3. Difficult to find quality internet skills

45. Key Trends in the Emerging Property Portal World
1. Growth is still strong
2. Property developer segment critical to success
3. Difficult to find quality internet skills
4. Intense Competition

46. Key Trends in the Emerging Property Portal World
1. Growth is still strong
2. Property developer segment critical to success
3. Difficult to find quality internet skills
4. Intense Competition
5. Some consolidation – by portals and investors

47. Navent – Consolidating the Sth American Market
• Focus on Property Portals and Jobs Portals in Sth America
• Investment in:
– Imovelweb (Brazil) – top 3
– Imovelweb Curitiba
– Adondevivir (Peru) - #1
– Inmuebles24 (Mexico) - #1/2
– Plusvalia (Ecuador) - #1
– Compreoalquile (Panama)
– Conlallave (Venezuela)
– Imovelpro (Brazil – Software)
– Union Desenvolvimento de Software (Brazil – Software)
– CRM Inmobiliario (Mexico – Software)
– Wimoveis (Brazil)
• Raised significant money to target other Sth American investment
opportunities

48. One Africa Media – Consolidating the African Market
• Focus on Property Portals, Jobs, Cars and Travel in Africa
• Investment in:
– Privateproperty.co.za
– Properties.ng (now PrivateProperty.co.ng)
– BuyRentKenya.com
– PrivateProperty.co.na
• Recently raised US$20m to target other African investment opportunities
– from Seek.com.au (ASX:SEK)

49. Key Trends in the Emerging Property Portal World
1. Growth is still strong
2. Property developer segment critical to success
3. Difficult to find quality internet skills
4. Intense Competition
5. Some consolidation – by portals and investors
6. Emergence of Property Portal Accelerators

50. Example Property Portal Accelerators
Company Service Provided
Mitula
Trovit
Nestoria
Drive highly qualified traffic on a CPC basis
ListGlobally Plug and play international search for any portal +
international listing syndication subscription
Floorplanner
Diakrit
Plug and play floor planning solution for portals
Transmit
Ubiflow
Plug and play XML feed management solution
Distil Networks Spam and unwanted traffic detection and protection
Global Property TV Plug and play video editorial content solution for property
portals
Adslot Plug and play solution to capture higher yields from display
and premium advertising products
Property Portal Watch /
Property Portal Consulting
Quality news, information, advice and guidance on running a
property portal

51. Key Trends in the Emerging Property Portal World
1. Growth is still strong
2. Property developer segment critical to success
3. Difficult to find quality internet skills
4. Intense Competition
5. Some consolidation – by portals and investors
6. Emergence of Property Portal Accelerators
7. Multi country players emerging – staking out the ground

52. Rocket Media Example

53. Key Trends in the Emerging Property Portal World
1. Growth is still strong
2. Property developer segment critical to success
3. Difficult to find quality internet skills
4. Intense Competition
5. Some consolidation – by portals and investors
6. Emergence of Property Portal Accelerators
7. Multi country players emerging – staking out the ground
8. Portals looking to capture part of the commission

54. Key Trends in the Emerging Property Portal World
1. Growth is still strong
2. Property developer segment critical to success
3. Difficult to find quality internet skills
4. Intense Competition
5. Some consolidation – by portals and investors
6. Emergence of Property Portal Accelerators
7. Multi country players emerging – staking out the ground
8. Portals looking to capture part of the commission
9. Significant capital being raised