#1Domain INVESTOR PRESENTATION | MACQUARIE AUSTRALIA CONFERENCE | 05.05.2020#2DISCLAIMER Summary Information This presentation contains summary information about Domain Holdings Australia Limited (ASX: DHG) (Domain) and its activities current as at 5 May 2020. The information in this presentation is of a general background nature and does not purport to be complete. It should be read in conjunction with Domain's other periodic and continuous disclosure announcements which are available at shareholders.domain.com.au. Not Financial Product Advice This presentation is for information purposes only and is not financial product or investment advice or a recommendation to acquire Domain securities and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Statements made in this presentation are made as at the date of the presentation unless otherwise stated. Past Performance Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. Future Performance This presentation contains certain "forward-looking statements". The words "expect", "should", "could", "may", "predict", "plan" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Actual results, performance or achievements may vary materially for many projections because events and actual circumstances frequently do not occur as forecast and these differences can be material. This presentation contains such statements that are subject to risk factors associated with the industries in which Domain operates which may materially impact on future performance. Investors should form their own views as to these matters and any assumptions on which any forward-looking statements are based. Domain assumes no obligation to update or revise such information to reflect any change in expectations or assumptions. The inclusion of forward-looking statements in this presentation should not be regarded as a representation, warranty or guarantee with respect to its accuracy or the accuracy of the underlying assumptions or that Domain will achieve, or is likely to achieve, any particular results. General Neither Domain, nor its related bodies corporate, directors, officers, employees, agents, contractors, consultants or advisers makes or gives any representation, warranty or guarantee, whether express or implied, that the information contained in this presentation is complete, reliable or accurate or that it has been or will be independently verified, or that reasonable care has been or will be taken by them in compiling, preparing or furnishing this presentation and its contents. To the maximum extent permitted by law, neither Domain, nor its related bodies corporate, directors, officers, employees, agents, contractors, consultants and advisers expressly disclaim any and all liability for any loss or damage suffered or incurred by any other person or entity however caused (including by reason of fault or negligence) and whether or not foreseeable, relating to or resulting from the receipt or use of the information or from any errors in, or omissions from, this presentation. The statements and the information in this presentation are subject to change without notice. No person, including Domain and its related bodies corporate, directors, officers, employees, agents, contractors, consultants and advisers accepts any obligation to update this presentation or to correct any inaccuracies or omissions in it which may exist or become apparent. 2 Investor Presentation Domain#3AGENDA MACQUARIE AUSTRALIA 2020 CONFERENCE CURRENT ENVIRONMENT DOMAIN'S EVOLUTION DOMAIN FOR AGENTS DOMAIN FOR CONSUMERS TRADING UPDATE Q&A#4CURRENT ENVIRONMENT#5Decline in new 'for sale' listings 2019 2020 Increased Depth penetration ■Gold & Silver Platinum. Jan Feb Mar Apr Apr-19 Apr-20 * Auctions as % of new sale listings for April versus February 2020 5 Investor Presentation CURRENT ENVIRONMENT APRIL 2020 SNAPSHOT ז' 5 n Reduction in auctions as % listings* 12% <5% Increased new rental listings Maata -2019 2020 Early improvement in appraisals ----- 2019 2020 Jan Feb Mar Apr Jan Feb Mar Apr Domain#66 | Investor Presentation CURRENT ENVIRONMENT DEPTH PENETRATION IS INCREASING IN ALL STATES Domain Residential Depth Product Penetration (% of New "For Sale" Listings) (FY April YTD) Gold & Silver Platinum FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 YTD YTD YTD YTD YTD YTD YTD YTD YTD YTD YTD YTD Total NSW VIC QLD SA WA Domain#77 | Investor Presentation CURRENT ENVIRONMENT DRIVING A TURNAROUND IN VICTORIA Domain Residential Depth Product Penetration - Victoria (% of New "For Sale" Listings) ■Gold & Silver Platinum FY17 H1 FY17 H2 FY18 H1 FY18 H2 FY19 H1 FY19 H2 FY20 H1 FY20 H2 to April Domain#88 CURRENT ENVIRONMENT DOMAIN'S RESPONSE TO COVID-19 Agent support Reduced or waived Residential and Agent Services subscriptions Access to Domain Market Insights Free access to Domain's Employee Assistance Program Creative product initiatives Informative COVID-19 guides Video and virtual tours Online and private inspection requests Online auction links Innovative cost solutions Reduced staff cash costs with equity participation options Pause on Print Targeted marketing Strengthened balance sheet $80m facility extension Debt covenants waived for June and December 2020 8 Investor Presentation Domain#9DOMAIN'S EVOLUTION#10DOMAIN'S EVOLUTION DOMAIN PROVIDES VALUE AT EVERY STEP OF THE PROPERTY JOURNEY FOR AGENTS AND CONSUMERS 10 | Investor Presentation FOR AGENTS 00 Purpose Inspiring confidence for all of life's property decisions Domain Vision To build a customer-centric Australian property marketplace core Grow the Grow new revenue in consumer solutions listings business Nine RELATIONSHIP Simplify and optimise our business FOR CONSUMERS 52 Domain#11MODEL 00 DOMAIN'S EVOLUTION EVOLVING DOMAIN'S MODEL m O o O O O O O ONLINE CLASSIFIEDS Ubiquity and reach: All the listings and all the audience Publisher model DIGITAL ASSISTANT Personalisation & relevance: Connecting the right vendors and buyers PROPERTY MARKETPLACE Domain's purpose: Inspiring confidence for all of life's property decisions Property ecosystem responsive to the changing environment Targeted high quality audiences with propensity to convert AUDIENCE STRATEGY Scale and volume PRODUCT Feature based Solutions based REVENUE Subscription and listings New revenue streams from a broad range of products and services 11 Investor Presentation Domain#12DOMAIN FOR AGENTS#13DOMAIN FOR AGENTS EVOLVING DOMAIN FOR AGENTS PRODUCT SOLUTIONS PRICING ONLINE CLASSIFIEDS Ubiquity and reach: All the listings and all the audience Digital listings Property marketing % increase from prior year DIGITAL ASSISTANT Personalisation & relevance: Connecting the right vendors and buyers PROPERTY MARKETPLACE Domain's purpose: Inspiring confidence for all of life's property decisions Rich data assets delivering transparency and a more dynamic marketplace Products and services to help agents grow their businesses Flexible pricing model, reflective of the market environment 13 | Investor Presentation Domain#14DOMAIN FOR AGENTS CURRENT ENVIRONMENT IS ACCELERATING THE DIGITAL EVOLUTION 'For Sale' Listing Journey Q 8 VENDOR APPRAISAL AGENT AUTHORITY PROPERTY LISTED OPEN INSPECTIONS AUCTION COMPLETION DOMAIN'S VISIBILITY pricefinder RealTime AUTHORITIES Domain Portal homepass BIDTRACKER RealTime REAL TIME RESULTS, REAL SIMPLE CONTRACTS TITLE DEEDS LODGED pricefinder 16x Increase in agent leads¹ Acceleration in Real Time Agent adoption 434 Online auctions? 4× Increase in private treaty sale contracts¹ 1. Between February and April 2020 2. Since late March 2020 14 | Investor Presentation Domain#1515 | Investor Presentation DOMAIN FOR AGENTS DOMAIN ADDS VALUE TO AGENTS AT EVERY STAGE OF THE PROPERTY JOURNEY RealTime CONTRACTS pricefinder homepass LEAD MINER (BETA) BIDTRACKER REAL TIME RESULTS. REAL SIMPLE. pricefinder SETTLE THE PROPERTY FIND A VENDOR SELL THE PROPERTY homepass FIND A BUYER MARKET PROPERTY $ .... ENGAGE VENDOR RealTime AUTHORITIES Domain allhomes Domain FOR AGENTS The new home for agents Domain#16DOMAIN FOR CONSUMERS 4.8- Get a t a home loan the smart way. Online#17PRODUCT SOLUTIONS DOMAIN FOR CONSUMERS EVOLVING DOMAIN FOR CONSUMERS ONLINE CLASSIFIEDS Ubiquity and reach: All the listings and all the audience One size fits all DIGITAL ASSISTANT Personalisation & relevance: "The right property/ buyer for me" Listings based CONNECTION One-off transaction based 17 | Investor Presentation PROPERTY MARKETPLACE Domain's purpose: Inspiring confidence for all of life's property decisions Personalisation and tailored solutions Immediate, relevant and actionable experiences Service the entire property lifecycle Domain#18DOMAIN FOR CONSUMERS CURRENT ENVIRONMENT IS ACCELERATING THE DIGITAL EVOLUTION Acceleration in new Domain Loan Finder accounts FY20 Q2 FY20 Q3 April 2020 run rate FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4 Domain FY20 Q1 POWERED BY LOAN FINDER lendi *April 2020 daily run rate versus February 2020 18 | Investor Presentation Domain m Expansion into refinancing Domain Loan Finder can help you explore home loan rates as low as 2.09% pa | 3.77% comp pa*. Now that's worth talking about. *Comparison rate warning. Let's talk about refinancing. Domain LOAN FINDER lendi WWW.DOMAIN.COM.AU/HOME-LOANS Refinance with Domain Loan Finder Learn More 9x Increase in Domain Loan Finder Refinance Accounts* Domain#19DOMAIN FOR CONSUMERS CONSUMER ENGAGEMENT REMAINS VERY HIGH Coronavirus: A guide for sellers HOME BUYING SELLING HOME LIFE MONEY MARKET UPDATES Homeowners are enabled to continue to sell during this period, with safety the industry's number one priority. New procedures that have been implemented by agents to ensure the wellbeing for all involved in the selling process, so you can continue to sell your home as smoothly and safely as possible With online or private inspections and online auctions readily available, agents are swiftly adopting technology as a tool to ensure you receive the best possible result for your property. 40% Continue reading for frequently asked questions surrounding the impacts of coronavirus on property sellers 30% 20% 10% 0% Strong growth in Domain editorial page views Jan Feb -2019 Mar 2020 Apr Leads to agents rebounding (% ch YoY) -10% Jan Feb Mar Apr * Nielsen Digital Content Ratings Monthly Tagged, March 2019-2020, People 2+, Digital (C/M), Text. Does not include Domain's print audience. 19 | Investor Presentation Domain's Unique Digital Audience reaches all-time high 6.9 million* +21% YoY Domain#2020 | Investor Presentation DOMAIN FOR CONSUMERS DOMAIN ADDS VALUE TO CONSUMERS AT EVERY STAGE OF THE PROPERTY JOURNEY RealTime CONTRACTS Domain INSURE RealTime AUTHORITIES Domain CONNECTIONS RealTime CONTRACTS SELL DREAM REVIEW your OWN $2 SEARCH SETTLE Domain LOAN FINDER Alendi BUY EVALUATE BIDTRACKER REAL TIME RESULTS REAL SIMBLE your Domain Domain allhomes homepass pricefinder Domain#21TRADING UPDATE#22TRADING UPDATE FY20 OUTLOOK Trading in the FY20 March quarter (1 January - 31 March 2020), adjusted for divestments, saw: Digital revenue increase 3% for the quarter, and 15% for the month of March - Total revenue increase 1% for the quarter, and 10% for the month of March. The month of March saw a recovery in new listings in key markets. Residential depth yield increased 17% for the month, benefiting from the positive impact of Domain's new flexible pricing model, and increased depth penetration across all states. • April new residential listings volumes declined in the high 20% range reflecting COVID-19 impacts. Residential depth yield continued to grow YoY, however at a lower rate than in March. FY20 H2 operating costs are expected to be around 7% lower than FY19 H2's base of $89 million (adjusted for divestments), as a result of expense reduction initiatives, and new staff arrangements effective from May. This does not include any potential benefits from the Australian Government's JobKeeper support package. March's performance (prior to the impact of COVID-19 restrictions), provides confidence that Domain is well positioned when markets return to normal. 22 | Investor Presentation Domain#23Q & A Jason Pellegrino, CEO Rob Doyle, CFO#2424 Domain THANK YOU Contact: [email protected]