Presentation by Simon Baker at the Property Portal Watch Conference in Amsterdam (October 2015) about trends occurring in the property portal / online real estate industry

1. Trends in the Property Portal
World
Property Portal Watch Conference
Amsterdam
Simon Baker
Founder Property Portal Watch

2. Types of Property Portal Markets
Market Characteristics Example Markets
Established Market structure established
Business model finalized
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,
Malaysia, Brazil,
Mexico, Middle
East, South Africa,
India
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)
Source: Annual reports, Analyst forecasts
5 – 25%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (e)
REA Group
Rightmove
European Portal
Zoopla

6. Annual Revenue Growth – Selected Examples
Source: Annual reports, Analyst forecasts
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (e)
REA Group
Rightmove
European Portal
Zoopla
Trulia
Zillow

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

8. Version 3.0 Copyright Property Portal Watch Pty Ltd 8
ARPA Probably
AUD 3,200-3,500
(Jun 2015)
21% year on year
growth (FY14-15)
Almost doubled
since Jun 2013
Growth in ARPA at realestate.com.au

9. Version 3.0 Copyright Property Portal Watch Pty Ltd 9
Growth in ARPA at Rightmove
11% year on
year growth

10. 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

11. EBITDA Margin – Selected Portals (non-US)
Source: Company Reports, Analyst Presentations
-40%
-20%
0%
20%
40%
60%
80%
2009 2010 2011 2012 2013 2014 2015 (e)
REA Group
Rightmove
Soufun
Zoopla

12. EBITDA Margin – Selected Portals
Source: Company Reports, Analyst Presentations
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
2009 2010 2011 2012 2013 2014 2015 (e)
REA Group
Rightmove
Soufun
Zoopla
Trulia
Zillow

13. 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 the most important channel

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 the most important channel
5. Ownership consolidation

15. Media & Funds Investing in Established Markets
In Market Out of Market
Axel Springer
(Germany)
Immonet.de (#2/3)
Immowelt.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

16. Media & Funds Investing in Established Markets (Cont)
In Market Out of Market
New Corp (USA) Move Inc (#3) REA Group (62%)
iProperty Group (via REA) (13%)
Prop Tiger (25%)
Makaan (100%)
Tiger Global (US) Commonfloor (India)
Daft.ie (Ireland)
Idealista (Spain)
Private Property (South Africa)
Redfin (USA)
Others

17. Portals Are Consolidating Markets and Investing
Portal Acquisition / Investment
Immobiliare (Italy #1) Spitigatos (Greece)
Tospitimou (Greece)
REA Group (Australia #1) iProperty Group (SE Asia 20%)
Move (USA 20%)
Domain (Australia #2) Allhomes (Canberra)
Realestateview (Australia) REIQ.com
Next (Japan) Trovit (Spain)
Zillow (USA #1) Trulia (USA #2)
Zoopla (UK #2) Uswitch (UK)
CoStar (USA) Apartmentfinder.com (USA)
Apartments.com (USA)
Loopnet (USA)

18. 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 the most important channel
5. Ownership consolidation
6. Equity market more excited about business potential

19. Market Cap of Listed Stocks (US$ m)
Annual
Month
Growth
-18% -10% 52% -26% -18%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
REA Zillow Rightmove Soufun Trulia Zoopla Move Scout24
Jul-11
Jul-12
Jul-13
Jul-14
Sep-15

20. Smaller Online Real Estate Companies are Listing
• Rent.com.au
• Mitula Group
• Real Estate Investar (in December)

21. 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 the most important channel
5. Ownership consolidation
6. Equity market more excited about business potential
7. Horizontal players challenging vertical players

22. 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 the most important channel
5. Ownership consolidation
6. Equity market more excited about business potential
7. Horizontal players challenging vertical players
8. International advertising of listings

23. Local Sites Marketing International Listings Only

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

25. 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

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

27. Mature Sites Moving to Lifestyle Branding
Copyright Property Portal Watch 27Version 1.0

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

29. Agent Owned and Controlled Sites

30. Zoopla Marketing Response

31. Impact of OnTheMarket on Zoopla – DeskTop Traffic
8.6x16.6x

32. Impact of OnTheMarket on Zoopla – Share Price

33. Impact of OnTheMarket on Rightmove – Share Price

34. Trends in Emerging & Early Stage Markets

35. 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

36. Key Trends in the Emerging Property Portal World
1. Property developer segment critical to success

37. Key Trends in the Emerging Property Portal World
1. Property developer segment critical to success
2. Intense Competition

38. Key Trends in the Emerging Property Portal World
1. Property developer segment critical to success
2. Intense Competition
3. Some consolidation – by portals and investors

39. 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)
– Dridco (Argentina)
• Raised significant money to target other Sth American investment
opportunities

40. 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
• Raised US$20m to target other African investment opportunities – from
Seek.com.au (ASX:SEK)

41. MercardoLibre – Consolidating the LATAM Market
• Largest general classifieds site in LATAM
– 12 countries
– 120 million registered users
– 2,600 employees
• Acquisition of:
– Metroscubicos (MX)
– Guiadinmuebles (MX)

42. Schibstead / Naspers Merger in Selected Markets
• Brazil
• Thailand
• Indonesia
• Bangladesh

43. Key Trends in the Emerging Property Portal World
1. Property developer segment critical to success
2. Intense Competition
3. Some consolidation –by portals and investors
4. Emergence of Property Portal Accelerators

44. 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

45. Key Trends in the Emerging Property Portal World
1. Property developer segment critical to success
2. Intense Competition
3. Some consolidation –by portals and investors
4. Emergence of Property Portal Accelerators
5. Multi country players emerging – staking out the ground

46. Rocket Media Example

47. Key Trends in the Emerging Property Portal World
1. Property developer segment critical to success
2. Intense Competition
3. Some consolidation –by portals and investors
4. Emergence of Property Portal Accelerators
5. Multi country players emerging – staking out the ground
6. Portals looking to capture part of the commission

48. Key Trends in the Emerging Property Portal World
1. Property developer segment critical to success
2. Intense Competition
3. Some consolidation – by portals and investors
4. Emergence of Property Portal Accelerators
5. Multi country players emerging – staking out the ground
6. Portals looking to capture part of the commission
7. Significant capital being raised