Interim Results for the half year ended 30 June 2018 Disclaimer - PowerPoint PPT Presentation

27 July 2018 Interim Results for the half year ended 30 June 2018

Disclaimer This presentation may contain forward- looking statements, including ‘forward - looking statements’ within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Group. They are not historical facts, nor are they guarantees of future performance. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Further details of potential risks and uncertainties affecting the Group are described in the Group’s filings with the London Stock Exchange including the Prospectus. These forward-looking statements speak only as of the date of this presentation. This presentation and a press release will be posted on the investor section of the Rightmove website. 2

Highlights Revenue: Profit: EPS: Dividend: +10% +11% +13% +14% Interim dividend increased by Revenue up to £131.1m Underlying operating profit 1 Underlying basic EPS 2 (2017: £119.5m) increased to £101.0m grew to 90.6p (2017: 80.3p) 3.0p to 25.0p (2017: 22.0p) per (2017: £91.0m) ordinary share Cash returned: Advertisers 3 : Site traffic: ARPA 3 : £76.9m 20,450 6.5bn £987 As at 30 June 2018, stable Free cash flow returned Time in minutes for 6 months Per month, up £76 (31 December 2017: 20,427) to shareholders through to 30 June 2018 (2017: 6.2bn) (2017: £911 ) dividends and buybacks (2017: £72.0m) 1. Before share-based payments and NI on share-based incentives 3 2. Before share-based payments, NI on share-based incentives and no related adjustment for tax 3. For Agency and New Homes customers

Revenue Revenue Revenue bridge 140 243.3 131.1 250 1.0 1.3 9.3 £ millions £ millions 119.5 220.0 225 120 192.1 200 100 175 150 80 131.1 119.5 125 60 100 40 75 50 20 25 0 0 Revenue HY ARPA growth Customer Growth in other Revenue HY 2015 2016 2017 H1 2017 H1 2017 2017 growth revenue 2018 4

Costs, profit and margin Costs 1 Underlying operating profit 1 Margin: 75.1% 75.5% 75.8% 76.2% 77.0% 200 £ millions 70 £ millions 184.4 180 144.3 58.9 60 160 53.8 124.6 47.8 140 50 120 40 101.0 100 91.0 30.1 28.5 30 80 60 20 40 10 20 0 0 2015 2016 2017 H1 2017 H1 2018 2015 2016 2017 H1 2017 H1 2018 5 1. Before share-based payments and NI on share-based incentives Source: Rightmove

Income statement 6 months ended 6 months ended 30 June 2018 30 June 2017 £m £m Revenue 131.1 119.5 Operating costs (30.1) (28.5) Underlying operating profit 101.0 91.0 Underlying operating profit margin 77.0% 76.2% Share-based payments (2.1) (2.7) NI on share-based incentives (0.7) (0.7) Operating profit 98.2 87.6 Net financial expense (0.1) (0.1) Profit before tax 98.1 87.5 Tax (18.8) (16.8) Profit for the period 79.3 70.7 6 Source: Rightmove

Balance sheet As at As at 30 June 2018 30 June 2017 £m £m Property, plant and equipment 16.1 16.1 2.5 Intangible assets 3.1 3.7 Deferred tax assets 5.5 7.4 Total non-current assets 24.7 13.6 21.1 Trade and other receivables 21.1 34.5 Contract assets 0.3 - Cash and money market deposits 28.1 17.6 Total current assets 49.5 52.1 Trade and other payables (17.8) (17.8) (38.7) Contract liabilities (2.0) - Income tax payable (18.1) (16.8) (13.6) Lease liabilities (13.6) - Provisions (1.0) (0.5) Total liabilities (52.5) (56.0) Net assets 21.7 9.7 Share capital 0.9 0.9 Other reserves 0.5 0.5 Retained earnings 20.3 8.3 Total equity 21.7 9.7 7 Source: Rightmove

Cash bridge and dividend Half year 2018 • £76.9m (2017:£72.0m) 140 returned to shareholders in 102.2 the period 120 (5.5) • 1.0m (2017: 1.0m) shares bought back and cancelled (14.7) (1.0) 100 • Closing cash and money market deposits of £28.1m 80 (31 Dec 2017: £25.0m) • Interim dividend increased by 60 (44.6) 3p to 25p (2017: 22p) • 10 for 1 share split 40 announced effective 28.1 25.0 (32.6) 31 August 2018 (0.7) 20 0 Cash Dec EBITDA Working Tax Capex Share buy Dividends Lease Cash June 2017 before capital payments backs incl payments 2018 IFRS 2 costs Source: Rightmove 8

Housing market CumulativeTransactions in England, Scotland and Wales 1 5.00% 1,500,000 1,000,000 3.00% 500,000 1.00% 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -1.00% -500,000 -3.00% -1,000,000 -5.00% -1,500,000 2017 2018 YTD 2018 vs 2017 Sales Agreed in England, Scotland and Wales vs 2017 2 5.0% 0.0% Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 -5.0% -10.0% 9 Source: 1. HMRC England, Scotland and Wales 2. Rightmove

The housing market is regional London – Year on Year Change 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% -40.0% Demand Available Stock Asking price 10 Source: Rightmove

More customers, more choice Agency and New Homes • Period end membership of 20,450 broadly unchanged since the end of 2017 21 Thousands • Agency membership broadly unchanged at 17,585 20,450 20,427 20,358 20.5 and retention rates in line with historical highs 20,121 • New Homes Developments up 64 (+2%) 20 19,752 • Customers advertising 1.2 million UK residential 19.5 properties on Rightmove • We continue to be the only place to see virtually the 19 2015 2016 2017 2017 H1 2018 H1 whole UK property market Agency Customer Size 100+ Branches 100+ Branches 100+ Branches 100+ Branches 21-100 Branches 21-100 Branches 21-100 Branches 21-100 Branches 3-20 Branches 3-20 Branches 3-20 Branches 3-20 Branches 2 Branches 2 Branches 2 Branches 2 Branches Single Branch Single Branch Single Branch Single Branch Janurary 2013 June 2017 December 2017 June 2018 11

The place consumers ‘turn to first’ and engage with most Time 1 Visits 1 11.7 11.7 11.1 1.5 1.5 12 1.6 Billions of Minutes Billions 1.3 1.4 10 1.2 8 6.5 1 6.2 0.83 0.79 6 0.8 0.6 4 0.4 2 0.2 0 0 2015 2016 2017 H1 2017 H1 2018 2015 2016 2017 H1 2017 H1 2018 Market share of top 4 property portals 2 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Rightmove Zoopla.co.uk Primelocation OTM 12 Sources: 1. Google Analytics & Rightmove 2. comScore

Keyword Sort – Innovation in the detail • Keyword Sort live May 2018, used by nearly 200,000 people in June • Home hunters look at 26% more properties when the search includes a keyword 13

Data drives advertising effectiveness Active Campaigns Active Display phase 1 Active Display phase 2 • The ‘Active’ product suite uses Rightmove data to target a relevant audience across multiple touch points • ‘Rightmove Active Campaigns’, launched in 2017 augment an email campaign by repeating the advertiser’s message through social media and SMS • First phase of ‘Rightmove Active Display’ launched at the start of 2018 focusses new home developer’s advertising to home hunters on Rightmove based on their search behaviour • Second phase is now in trial which microtargets home hunters on other websites based on their search behaviour 14

Restless innovation with data drives efficiency • Early trials of a new ‘Opportunity Manager’ tool have begun. Opportunity Manager helps agents prioritise leads to make the most of the enquiries they already receive • The Best Price Guide helps an agent justify their valuation to a potential vendor: In the first half of 2018 agents generated an o average of nearly a million Best Price Guides per month A new, faster, version including significantly o enhanced market data due for launch in Q4 2018 The new version will save agents up to a further o 15 minutes per valuation • Tenant passport is now in the next phase of trialling. The passport aims to make the process of renting a property faster and more efficient by enabling potential tenants to collate in advance all the information needed for the process of applying for a tenancy 15

Driving efficiency drives growth ARPA • ARPA 1 up £76 (+8%) to £987 per month per £987 office/development (2017: £911) £ per office/development per year 14,000 per month £911 £922 12,000 • Full year ARPA growth expected to be around £842 £754 10,000 £80 with phasing driven by timing of pricing activities 8,000 6,000 • ARPA driven by pricing and product growth 4,000 • More product penetration driven by uptake of 2,000 our Enhanced package 0 2015 2016 2017 H1 2017 H1 2018 • RightmoveDiscover progressing to plan, Premium Packages average monthly revenue 75% higher in H1 2018 than H2 2017 3000 2500 2000 1500 1000 500 0 2015 2016 2017 H1 2017 H1 2018 Optimiser Enhanced 16 1. Agency and New Homes customers.