1 | Investor Presentation · July Aug Sept Oct Nov Dec Jan Feb March AprilMay June 2015/16 2016/17...

1 | Investor Presentation

* Excluding acquisitions ^Excludes Consumer Solutions

•

•

•

Note: Proforma results provide a view of the financials as if Domain had been a separately listed entity for the comparative period. FY18 includes twelve months of the proforma incremental

costs as per the Domain separation Scheme booklet. The Domain separation implementation date was 22 November 2017.

FY19 FY18 %

$m Proforma Change

Revenue 335.6 357.3 (6.1%)

Share of Profits (Loss) (0.3) (1.4) 77.8%

Expenses (237.3) (240.2) 1.2%

EBITDA 98.0 115.7 (15.3%)

EBIT 65.9 89.5 (26.4%)

Net profit attributable to

members of the company

37.4 52.9 (29.3%)

Earnings per share (EPS) ₵ 6.43 9.17 (29.9%)


REVENUE EBITDA EBITDA MARGIN

FY19 FY18 % FY19 FY18 % FY19 FY18

$m Proforma Change Proforma Change Proforma

Residential 173.3 172.5 0.5%

Media, Developers & CRE 47.1 54.1 (12.9%)

Agent Services 32.2 27.9 15.1%

Core Digital 252.5 254.5 (0.8%) 108.7 114.7 (5.2%) 43.1% 45.1%

Consumer Solutions (Transactions)

& Other 26.9 24.4 10.0% (7.2) (2.7) (167.0%)

Digital 279.4 278.9 0.2% 101.5 112.0 (9.3%) 36.3% 40.2%

Print 54.3 77.1 (29.6%) 13.9 20.0 (30.5%) 25.6% 26.0%

Corporate 1.9 1.3 51.2% (17.5) (16.3) (6.8%)

Domain Group 335.6 357.3 (6.1%) 98.0 115.7 (15.3%) 29.2% 32.4%

Note: Proforma results provide a view of the financials as if Domain had been a separately listed entity for the comparative period. FY18 includes twelve months of the proforma incremental

costs as per the Domain separation Scheme booklet. The Domain separation implementation date was 22 November 2017.



Note: Core Digital Segment includes Residential, Media, Developers & Commercial and Agent Services. Consumer Solutions & Other was previously Transactions & Other.

•

•

•

172.5 173.3

FY18 FY19

+0.5%

52%

Note: 1. Domain and APM PriceFinder data; 2. Source: emma™ conducted by Ipsos, people 14+ for 12 months ending March 2019. Nielsen Digital Content Ratings (Monthly), people 14+ March 2019,

Total Audience reach includes Domain, Domain Review and Allhomes.


Domain ListingsCompetitor Listings

Volume % ch Yield per listing %ch


Established Expanding Emerging

Continue to grow consumer

engagement and strengthen

market position

Targeted investment to

grow audience reach and

accelerate depth coverage

Continue to develop market position

via cost-effective marketing

and sales activities

Market Segments

Objective

Agent

coverage

Audience Expand reach

Pricing

Product

upsell

Increase in frequency Expand reach

High upsideMedium upside High upside

Audience-driven upsideAudience-driven upside Audience-driven upside

High upsideHigh upside High upside

Key opportunity

FY19 Volume vs

Yield (sale only)

Volume % ch Yield per listing %ch


Website visits Views per listing

+8% YoY +26% YoY

FY19 H2 Volume vs yield

(sale only) % change YoY

Targeted multi-platform campaign Supporting Domain’s Queensland

audience to record levels

High quality audience driving views

per listing to record levels

And supporting significant gains in yield

despite softer market conditions

FY18 H2 FY19 H2 FY18 H2 FY19 H2

VOLUME

% CHYIELD PER LISTING

% CHDomain’s referral traffic from Nine

increased 300%+ YoY in FY19 H2

Note: 1. Google Analytics, website sessions to Domain.com.au from Nine for the period January-June 2019 vs previous comparable period. 2. Nielsen Market Intelligence-Domestic Traffic, Website sessions in Queensland for

Domain.com.au and Allhomes.com.au combined (excludes app), January-June 2019 vs previous comparable period. 3. Domain internal data, views per live listing in Queensland, January-June 2019 vs previous comparable period.

•

•


•

•

•

•

•

•

Source: Australian Property Monitors – New ‘For Sale’ Listings (Total market)


25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

July Aug Sept Oct Nov Dec Jan Feb March April May June

2015/16 2016/17 2017/18 2018/19

2,000

4,000

6,000

8,000

10,000

12,000


2015/16 2016/17 2017/18 2018/19

0

200

400

600

800

1,000

1,200


2015/16 2016/17 2017/18 2018/19

2,000

4,000

6,000

8,000

10,000

12,000

14,000


2015/16 2016/17 2017/18 2018/19

Source: Australian Property Monitors – New ‘For Sale’ Listings (Total market)


25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000


2015/16 2016/17 2017/18 2018/19

2,000

3,000

4,000

5,000

6,000


2015/16 2016/17 2017/18 2018/19

2,000

3,000

4,000

5,000

6,000

7,000


2015/16 2016/17 2017/18 2018/19

0,700

1,200

1,700

2,200

2,700

3,200


2015/16 2016/17 2017/18 2018/19

FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19

Total NSW VIC QLD SA WA

Gold & Silver Tiers

Platinum Tier


•

•

•

-12.9%

54.1

47.1

FY18 FY19

14%


•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

+15.1%27.9

32.2

FY18 FY19

10%

24.426.9

FY18 FY19

•

•

+10.0%

8%

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

^ Underwriting agency model provides Domain with delegated authority to sell insurance products on behalf of multiple insurers, with greater control over the customer proposition as well as the sales and claims experience.

Domain Insure does not assume claims risk, which remains with the underwriter.


Settlements

Unconditional approvals

*Source : productreview.com.au


•

•

•

-29.6%

16%

77.1

54.3

FY18 FY19

•

•

•

•

•

−

−

−


•

•



FY19 Statutory

(Reported 4E)

Less Significant

Items

Statutory

Excluding

Significant Items

Adjustments to

Statutory

Trading

Performance

Excluding

Significant Items

$m

Revenue 343.3 (7.7) 335.6 - 335.6

Share of Profits / (Loss) (0.3) - (0.3) - (0.3)

Expenses (419.1) 181.8 (237.3) - (237.3)

EBITDA (76.1) 174.1 98.0 - 98.0

Depreciation & Amortisation (34.6) 2.5 (32.1) - (32.1)

EBIT (110.7) 176.6 65.9 - 65.9

Net Finance Costs (8.5) - (8.5) - (8.5)

Net Profit / (Loss) Before Tax (119.1) 176.6 57.4 - 57.4

Tax (Expense) / Benefit (16.0) (1.6) (17.7) - (17.7)

Net Profit / (Loss) After Tax (135.2) 174.9 39.8 - 39.8

Net Profit Attributable to Non Controlling

Interest(2.4) - (2.4) - (2.4)

Net Profit / (Loss) Attributable to

Members of the Company(137.6) 174.9 37.4 - 37.4

Earnings Per Share (EPS) ₵ (23.67) 6.43 6.43

Note: Proforma results provide a view of the financials as if Domain had been a separately listed entity for the current and comparative periods. FY18 includes 12 months of

the proforma incremental costs as per the Scheme booklet. The Domain separation implementation date was 22 November 2017.


FY18Statutory

(Reported 4E)

Less

Significant Items

Statutory Excluding

Significant Items

Adjustments to

Statutory

Proforma Trading

Performance

Excluding

Significant Items

$m

Revenue 286.6 - 286.6 70.7 357.3

Share of Profits / (Loss) (1.4) - (1.4) - (1.4)

Expenses (251.6) 36.0 (215.6) (24.6) (240.2)

EBITDA 33.6 36.0 69.6 46.1 115.7

Depreciation & Amortisation (20.4) - (20.4) (5.8) (26.2)

EBIT 13.2 36.0 49.3 40.2 89.5

Net Finance Costs (4.7) - (4.7) (2.9) (7.6)

Net Profit / (Loss) Before Tax 8.6 36.0 44.6 37.3 81.9

Tax (Expense) / Benefit (11.3) (4.5) (15.9) (7.9) (23.8)

Net Profit / (Loss) After Tax (2.7) 31.5 28.7 29.4 58.1

Net Profit Attributable to

Non Controlling Interest(3.4) (1.9) (5.3) - (5.3)

Net Profit Attributable to

Members of the Company(6.2) 29.6 23.5 29.4 52.9

Earnings Per Share (EPS) ₵ (1.55) 5.92 9.17


FY19 FY18 %

$m change

Statutory Expenses (419.1) (251.6) (66.6%)

Less Significant Items 181.8 36.0 n/a

Statutory excluding Significant Items (237.3) (215.6) (10.1%)

Adjustments to Statutory - (24.6) n/a

Total Expenses

(excluding Significant Items)(237.3) (240.2) 1.2%

comprising

Consumer Solutions Expenses (33.8) (25.9) (30.7%)

Underlying Expenses (203.5) (214.3) 5.0%

40%

15%

17%

8%

5%

15%

FY19 Staff

Production andDistribution

Promotion

Computer andCommunications

Property, Repairsand Maintenance

Other

$237.3m

39%

20%

17%

7%

4%

13%

FY18 Staff

Production andDistribution

Promotion

Computer andCommunications

Property, Repairsand Maintenance

Other

$240.2m

Impact +/- FY20

$m

Operating expenses – Property, Repairs & Maintenance + 7-9

Depreciation and amortisation - (8)-(10)

Interest expense - (0)-(2)

Net Profit - (1)-(3)


FY19 FY18

$m

Impairment of goodwill (178.8) (29.6)

Income tax benefit - 2.7

Impairment of goodwill, net of tax (178.8) (26.9)

Restructuring charges (2.9) (6.4)

Accelerated depreciation (2.5) -

Income tax benefit 1.6 1.8

Restructuring, net of tax (3.8) (4.6)

Gain on contingent consideration payable and sale of controlled entities 7.7 -

Income tax expense - -

Gain on contingent consideration payable and sale of controlled entities,

net of tax7.7 -

Significant items, net of tax (174.9) (31.5)

•


FY19 FY18

$m

Cash from Trading 103.4 62.7

Net Finance Charges (7.0) (3.3)

Tax Payments (20.4) (13.4)

Net Cash Inflow from Operating Activities 76.1 46.0

Investment in PP&E and Software (22.8) (20.4)

Net Investment in Businesses/ Ventures (1.4) -

Net Cash Outflow from Investing Activities (24.3) (20.4)

Proceeds from Borrowings - 188.0

Repayment of Borrowings (25.0) -

Transaction Cost on Issue of Shares - (7.5)

Repayment of Borrowings to Fairfax Media Limited - (174.6)

Dividends Paid (38.0) (29.9)

Net Other (0.3) 1.0

Net Cash Outflow from Financing Activities (63.3) (23.0)

Net Cash (Outflow) / Inflow (11.5) 2.5

Cash at Beginning of Period 60.8 58.3

Cash at End of Period 49.3 60.8

•

•


FY19 Facility Usage

$m

Non Current

Syndicated Bank Facility 250.0 163.0

Total Debt Facilities 250.0 163.0

50.0

100.0

150.0

200.0

FY20 FY21 FY22

$A

m

Undrawn

Drawn

•

•


FY19 FY18

$m

Cash 49.3 60.8

Trade and Other Receivables 46.0 62.8

Current Assets 95.3 123.6

Investments - 3.4

Intangible Assets 1,365.2 1,534.7

Property, Plant and Equipment 15.9 23.4

Non Current Assets 1,381.1 1,561.4

Total Assets 1,476.4 1,685.1

Current Liabilities 61.1 66.9

Interest Bearing Liabilities 162.5 187.3

Provisions 11.2 15.7

Deferred Tax Liabilities 78.0 81.7

Non Current Liabilities 251.8 284.7

Total Liabilities 312.9 351.6

Net Assets 1,163.5 1,333.5

Contributed Equity 1,289.7 1,283.4

Reserves (35.0) (38.9)

Retained Profits (94.6) 78.2

Total Parent Equity Interest 1,160.1 1,322.7

Non-Controlling Interest 3.4 10.8

Total Equity 1,163.5 1,333.5

Net Debt / (Cash) 113.2 126.5


As reported FY19 FY18 FY19 H1 FY18 H1

$m

Core Digital (4.0) (4.9) (2.7) (3.4)

Consumer Solutions (Transactions) & Other 2.2 1.1 1.1 0.5

Digital (1.8) (3.8) (1.6) (3.0)

Print (0.6) (1.5) (0.7) (0.8)

Total Non-Controlling Interest (2.4) (5.3) (2.2) (3.8)

Adjusted for divestments FY19 FY18 FY19 H1 FY18 H1

$m

Core Digital (4.0) (4.9) (2.7) (3.4)

Consumer Solutions (Transactions) & Other 2.8 1.1 1.3 0.3

Digital (1.1) (3.9) (1.5) (3.1)

Print (0.6) (1.2) (0.5) (0.6)

Total Non-Controlling Interest (1.8) (5.1) (2.0) (3.7)

*Note: Divestments include Compare & Connect and Beevo in Consumer Solutions and Star Weekly in Print.


FY19 FY18 %

$m Proforma Change

Revenue 302.3 322.1 (6.1%)


Expenses (205.4) (207.4) 0.9%

EBITDA 96.6 113.3 (14.7%)

EBIT 64.9 87.9 (26.1%)




FY19 FY18 % FY19 FY18 % FY19 FY18


Residential 173.3 172.5 0.5%



Core Digital 252.5 254.5 (0.8%) 108.7 114.7 (5.2%) 43.1% 45.1%


& Other 3.1 0.9 259.7% (8.6) (3.9) (118.1%)

Digital 255.6 255.3 0.1% 100.1 110.7 (9.6%) 39.2% 43.4%

Print 44.8 65.5 (31.5%) 14.0 18.9 (26.0%) 31.1% 28.8%

Corporate 1.9 1.3 51.2% (17.5) (16.3) (6.8%)

Domain Group 302.3 322.1 (6.1%) 96.6 113.3 (14.7%) 31.9% 35.2%



FY19 H1 FY18 H1 %

$m Proforma Change

Revenue 164.9 165.9 (0.6%)


Expenses (113.0) (109.5) (3.2%)

EBITDA 51.6 55.8 (7.4%)

EBIT 37.5 43.2 (13.2%)




FY19 H1 FY18 H1 % FY19 H1 FY18 H1 % FY19 H1 FY18 H1


Residential 93.6 86.1 8.6%



Core Digital 135.2 128.6 5.1% 55.9 55.9 0.1% 41.3% 43.4%


& Other 1.5 0.1 896.0% (5.0) (1.8) (183.6%)

Digital 136.7 128.7 6.2% 50.9 54.1 (5.9%) 37.2% 42.0%

Print 27.3 36.6 (25.4%) 9.1 9.5 (4.9%) 33.2% 26.0%

Corporate 0.9 0.6 49.1% (8.4) (7.9) (6.2%)

Domain Group 164.9 165.9 (0.6%) 51.6 55.8 (7.4%) 31.3% 33.6%


1 | Investor Presentation · July Aug Sept Oct Nov Dec Jan Feb March AprilMay June 2015/16 2016/17...

Documents

Transcript of 1 | Investor Presentation · July Aug Sept Oct Nov Dec Jan Feb March AprilMay June 2015/16 2016/17...