2019 Annual General Meeting 11 November 2019 3
Chairman’s Address Nick Falloon 2019 ANNUAL GENERAL MEETING 4
CHAIRMAN’S ADDRESS Domain’s FY19 Financial Performance $335.6m $98.0m 6.4c REVENUE* EBITDA* EARNINGS PER SHARE* $(137.6)m 1.2x 6c STATUTORY NET LOSS NET DEBT/EBITDA* DIVIDEND PER SHARE *Trading performance excluding significant items 2019 ANNUAL GENERAL MEETING 5
CHAIRMAN’S ADDRESS Domain has a world-class customer-centric product and services ecosystem 2019 ANNUAL GENERAL MEETING 6
CHAIRMAN’S ADDRESS Strategy building Domain as a customer-centric Australian property marketplace Vision Purpose Inspiring confidence for all To build a customer-centric of life’s property decisions Australian property marketplace Grow the core Grow new revenue in Simplify and optimise listings business consumer solutions our business Residential Agent Home Insurance Efficiency Effectiveness Services Loans Developers Commercial Utilities Cross Data Portfolio Referrals Sell Platforms Focus RELATIONSHIP 2019 ANNUAL GENERAL MEETING 7
CEO’s Address Jason Pellegrino 2019 ANNUAL GENERAL MEETING 8 8
CEO’S ADDRESS Domain’s FY19 performance across five revenue categories CONSUMER CORE DIGITAL SOLUTIONS & OTHER PRINT RESIDENTIAL MEDIA, DEVELOPERS AGENT SERVICES & COMMERCIAL 26.9 24.4 Revenue $m 77.1 54.1 32.2 172.5 173.3 47.1 +0.5% -12.9% 27.9 +15.1% +10.0% -29.6% 54.3 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 Revenue % total 10% 8% 14% 16% 52% Key result drivers • Significantly lower listings • Strong commercial revenue growth • Growth in yield • Revenue impact from slowing • Cyclicality in Auction and volumes in key markets Compare & Connect growth Developer markets • Developer performance • Increased ownership and divestment • Higher yield from increased reflects Sydney and Melbourne of Homepass • Disciplined cost management depth (premium) penetration market conditions • Strong early revenue growth • Further integration of agent • Sale of Star Weekly titles and pricing from Domain Loan Finder and • Media business transitioning to services offering supports margin improvement Domain Insure • 0.5% depth revenue growth higher margin model (82:18 depth:subscription split) 2019 ANNUAL GENERAL MEETING 9
CEO’S ADDRESS – GROWING THE CORE LISTINGS BUSINESS Domain is driving higher yield despite listings volume declines FY19 EXPERIENCED UNPRECEDENTED LISTINGS VOLUME DECLINES…. …. HOWEVER DELIVERED STRONG YIELD GROWTH Total national market new ‘for sale’ listings* Residential volume and yield (sale only) (% ch YoY FY19 vs FY18) 60,000 55,000 50,000 45,000 40,000 35,000 30,000 2016/17 2017/18 2018/19 2019/20 25,000 July Aug Sept Oct Nov Dec Jan Feb March April May June *Source : Australian Property Monitors 2019 ANNUAL GENERAL MEETING 10
CEO’S ADDRESS – GROWING THE CORE LISTINGS BUSINESS Domain is driving higher depth (premium) penetration with further upside opportunity DOMAIN RESIDENTIAL DEPTH PRODUCT PENETRATION (% OF NEW “FOR SALE AND RENT” LISTINGS) JULY-OCT 2019 VS JULY-OCT 2018 Gold & Silver Platinum FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 Total NSW VIC QLD SA WA 2019 ANNUAL GENERAL MEETING 11
CEO’S ADDRESS – GROWING THE CORE LISTINGS BUSINESS Localised market approach to drive core listings business growth Market Segments Established Expanding Emerging Continue to grow consumer Targeted investment to Continue to develop market engagement and strengthen grow audience reach and position via cost-effective Objective market position accelerate depth coverage marketing and sales activities Competitive position (indicative) vs major Audience ~90% ~75% ~50% competitor 1 Agent % with depth ~75% ~40% ~25% coverage “all” contracts Pricing Platinum ~$2,000 ~$600 ~$200 listing Product Platinum ~60% ~20% ~10% upsell penetration Note: 1. Based on Domain’s established markets via emma ™ conducted by Ipsos Australia, people 14+ for 12 months ending October 2018 to January 2019, 14+ Nielsen Digital Panel data calibrated to Digital Content Ratings, monthly average for October 2018 to January 2019. Comparison includes Domain and Allhomes unique audience (unduplicated vs Realestate.com.au unique audience). 2019 ANNUAL GENERAL MEETING 12
CEO’S ADDRESS – GROWING THE CORE LISTINGS BUSINESS Domain provides solutions to agents that address their key challenges and opportunities Agents want Find and win the Market and sell the Run an efficient and Differentiate their next listing property quickly for the profitable business brands and attract and best possible price retain talent Domain delivers Large and exclusive Rich data and unique Powerful multi-channel Agent tools audiences insights marketing platform 2019 ANNUAL GENERAL MEETING 13
CEO’S ADDRESS – GROWING THE CORE LISTINGS BUSINESS Domain for Agents: Everything an agent needs under one roof One central location Pricefinder, Homepass and Insights Hub MyDesktop Domain for Agents provides a single entry Domain for Agents also features a logged-in point for agents to access everything they property insights hub that leverages Domain’s New product pages showcase the latest need to find and win listings and have rich data. New and upcoming features include: an releases, innovations and integrations to confident conversations with vendors about agent dashboard, appraisal funnel, real-time support upsell and cross-sell across the Domain products, market insights and news listing insights, vendor and buyer enquiry insights agent product suite 2019 ANNUAL GENERAL MEETING 14
CEO’S ADDRESS – GROWING THE CORE LISTINGS BUSINESS Acquisition of Real Time Agent • Domain has entered into a binding agreement to acquire Real Time Agent for $24.8 million • Real Time Agent is a point of sale platform that digitises key steps in the property sale process • The acquisition accelerates Domain’s strategy of working closely with agents and consumers to provide solutions to their chal lenges Recording of Benefits for Agents auction bidders, • Reduces 80% of admin work bids and results in real time (saves on average 4 hours in admin time per transaction) • Improves efficiency, compliance and record-keeping • Reduces back-office costs and paperwork • Improves efficiency and accuracy for compliance Benefits for Consumers • Streamlines the selling and buying process • Increases confidence through offering key real-time information, such as auction activity and property demand • Sign documents digitally, saving time and improving record-keeping Digitises the sale Digital binding Benefits for Domain contract with agreement • Accelerates Domain’s strategy of supporting agents to build profitable, automatic delivery between to agent office, vendors sustainable and resilient businesses vendor and and agents • A natural fit with Domain’s suite of trusted agent products purchaser • Proven high value products: o Taken up by 4,000+ agents, with a 98% retention rate o Processed $40bn+ in property transactions on the platform in only 3 years o Broad coverage of 60 % of Victoria’s auctions each week 2019 ANNUAL GENERAL MEETING 15
CEO’S ADDRESS – GROWING NEW REVENUE IN CONSUMER SOLUTIONS Domain inspires confidence in consumers for all of life’s property decisions Consumers want Transparency and Independent content Immediate, relevant Confidence at every depth of market and and advice and actionable stage of their property pricing information experiences journey Domain delivers Tailored solutions Trusted information Leading innovation Lifetime connection 2019 ANNUAL GENERAL MEETING 16
CEO’S ADDRESS – GROWING NEW REVENUE IN CONSUMER SOLUTIONS Introducing Domain for Owners : Providing relevant insights to home owners to build a lifetime connection Personalised dashboard Relevant content and calculators Alerts Domain for Owners allows property Address key home owner challenges including the Ongoing alerts related to owners to track their home and properties changed value of a home since purchase, the current tracked properties market environment, recent neighbourhood trends, and current home loan opportunities 2019 ANNUAL GENERAL MEETING 17
CEO’S ADDRESS – GROWING NEW REVENUE IN CONSUMER SOLUTIONS Building consumer brand awareness and engagement Domain’s Spring campaigns Integrated content with Nine showcasing Domain’s property expertise 2019 ANNUAL GENERAL MEETING 18
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