#180 % ^ & 1 2 3 4 5 6 8 9 0 Q W E R T Y U I о P fab A S D F G H J KL caps lock Z X C V BN shift M H control option command * command option Figure out how much check home thetase is worth Find anagent price g ceguide Book appraisal Book cleaner Get house ready repair fence *Fund our new home!! paint spare room 4 bed Garage BIG Backyard check out houses for sale in the school zone. Inspections Abbotsford 2019 Full-Year Results Investor Presentation 16 August 2019 Domain#2Disclaimer Summary Information This presentation contains summary information about Domain Holdings Australia Limited (ASX: DHG) (Domain) and its activities current as at 16 August 2019. 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. Domain#3Agenda Introduction and Overview Jason Pellegrino Current Trading Environment and Outlook Jason Pellegrino Group Financials Rob Doyle Q&A Appendices 1. Non-Controlling Interests as reported and adjusted for divestments 2. FY19 and FY18 Results adjusted for divestments 3. FY19 and FY18 Segment Results adjusted for divestments 4. FY19 H1 and FY18 H1 Results adjusted for divestments 5. FY19 H1 and FY18 H1 Segment Results adjusted for divestments Neutral territory#4HOUSES SEA Introduction and Overview Jason Pellegrino, CEO Domain#5Introduction and Overview Strategy building Domain as a customer-centric Australian property marketplace 5 Investor Presentation Purpose Inspiring confidence for all of life's property decisions Grow the core listings business Domain Grow new revenue in consumer solutions Vision To build a customer-centric Australian property marketplace Simplify and optimise our business 000 Residential Agent Services Home Loans Insurance Efficiency Effectiveness Developers Commercial Utilities Referrals 「\」 ྂ# Cross Sell Portfolio Focus Data Platforms Nine RELATIONSHIP Domain#6Introduction and Overview FY19 progress against strategy Grow the core listings business Grow new revenue in consumer solutions 12% >200% Growth in residential yield Domain Loan Finder/Domain Insure revenue growth Simplify and optimise our business -5% Underlying expense^ reduction notwithstanding continued business investment commercial view Acquisition of CommercialView your research starts here. >300% 30%+ Growth in Commercial revenues* >350% homepass Homepass ownership increased to 68.5% © Domain Loan Finder increase in unconditional approvals Domain Loan Finder increase in settlements Domain Insure successful proof of concept phase Organisational structure aligned to B2B/B2C strategy Portfolio rationalisation with sale of Compare & Connect and Star Weekly Increasing data capability to build valuable user experiences and support smarter internal decision making * Excluding acquisitions "Excludes Consumer Solutions 6 Investor Presentation Domain#7Introduction and Overview Group Trading Performance 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%) members of the company Net profit attributable to Earnings per share (EPS) C FY19 included an extra week of trading which added $4.6m revenue and $2.7m EBITDA. Fairfax Media/Nine merger completed in December 2018. Initiatives being implemented to 37.4 52.9 (29.3%) 6.43 9.17 (29.9%) Dividend of 4 cents per share (100% franked). maximise benefit through additional marketing and audience reach and scale benefits. 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. 7| Investor Presentation Domain#8Introduction and Overview Segment Results REVENUE EBITDA EBITDA MARGIN FY19 FY18 % FY19 FY18 % FY19 $m Proforma Change Proforma Change FY18 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) 26.9 24.4 10.0% (7.2) (2.7) (167.0%) & Other 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 Domain Group 1.9 335.6 1.3 51.2% (17.5) (16.3) (6.8%) 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. 8 | Investor Presentation Domain#9Introduction and Overview Five revenue categories drive Domain's performance Residential Media, Developers & Commercial Agent Services Consumer Print Solutions & Other Domain LOAN FINDER Glend Get a home loan the smart way. Online. Home loans are complicated. That's why we make it easy with a simple online process. Our expert team will guide you every step of the way Get started The Sybory Morning Herald FINANCIAL REVIEW Domain Note: Core Digital Segment includes Residential, Media, Developers & Commercial and Agent Services. Consumer Solutions & Other was previously Transactions & Other. 9 Investor Presentation Neut Domain#10Residential Revenue $m +0.5% 172.5 173.3 FY18 FY19 Revenue as % of Total 52% ° Key Result Drivers Significantly lower listings volumes in key markets Higher yield from increased depth penetration and pricing 0.5% depth revenue growth (82:18 depth:subscription split)#11Introduction and Overview | Residential Marketplaces model drives yield by maximising supply (listings) and growing demand (audience) 500,000 400,000 300,000 200,000 100,000 0 1. MAXIMISING SUPPLY 2. GROWING DEMAND Residential Listings (sale and rent)¹ Total Audience (digital and print)² Residential volume and yield (sale only) (% ch YoY FY19 vs FY18) Domain Listings Competitor Listings Dec 16 May 17 Effective listings parity 11 Investor Presentation Oct 17 May 18 Nov 18 May 19 6.9M Total audience ~70% of major competitor² 3. DRIVING YIELD Volume % ch Yield % ch Note: 1. Domain and APM PriceFinder data; 2. Source: emma TM 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. Driving higher yield despite volume declines Domain#12Introduction and Overview | Residential Segmenting our residential markets to drive growth Market Segments Objective Established Continue to grow consumer engagement and strengthen market position Increase in frequency Expanding Targeted investment to grow audience reach and accelerate depth coverage Key opportunity Expand reach High upside Audience до Agent Medium upside coverage $ Pricing Audience-driven upside Audience-driven upside m Product upsell High upside High upside Emerging Continue to develop market position via cost-effective marketing and sales activities Expand reach High upside Audience-driven upside High upside FY19 Volume vs Yield (sale only) 12 Investor Presentation Volume % ch Yield per listing % Volume % ch Yield per listing % Volume % ch Yield per listing % ch ch ch Domain#13Introduction and Overview | Residential Focus on targeted marketing investment in high priority markets Queensland Case Study 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 Today 757 BRISBA DOMAIN CAPITAL CITY HOUSE PRICES BRISBANE $559.167 PERTH $526.186 1-1.4% 12.0% 1-1.8% #thine Domain Stylata have purbel ackn Shut your work arching wat property Domain +8% YoY +26% YoY FY18 H2 FY19 H2 FY18 H2 FY19 H2 VOLUME % CH YIELD PER LISTING % CH Domain's referral traffic from Nine increased 300%+ YoY in FY19 H21 Website visits² Views per listing³ FY19 H2 Volume vs yield (sale only) % change YoY 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. 13 Investor Presentation Domain#14Introduction and Overview | Residential Partnering with Nine to expand Domain's reach and engagement and drive monetisation of listings and audiences Domain LIVE SNEWS Domain .com.au :::Nine Domain 11.3m unique registered users $ Extending Domain platform on Nine Property features and market updates on the 'Today Show', Nine News and 'A Current Affair' Nine.com.au homepage takeover and introduction of Dream Homes strap Deepening Domain brand and content integration Launch of new 'Your Domain' TV show on September 7th Increased integration of Domain into 'The Block' leveraging Domain's property expertise. All 'Block' properties will be exclusively listed on Domain • Leveraging unique scale of combined Domain/Nine audience and rich data Increased referrals to Domain from Nine's digital assets Completion of project to align Domain and Nine data to better understand audience behaviours and opportunities • Maximising commercial results Enhancing advertiser solutions through new cross-platform opportunities Developing partnerships to drive premium revenue from content 14 | Investor Presentation Domain#15Introduction and Overview | Residential Total market new listings trends: Sydney, Melbourne and Canberra National 60,000 55,000 50,000 45,000 40,000 35,000 Sydney 12,000 10,000 8,000 6,000 Melbourne 14,000 12,000 10,000 8,000 6,000 4,000 4,000 2015/16 2016/17 2017/18 2018/19 2,000 2,000 July Aug Sept Oct. Nov Dec Jan Feb March April May June Canberra 30,000 1,200 2015/16 25,000 2016/17 July Aug Sept Oct Nov Dec Jan 2017/18 2018/19 Feb March April May June 1,000 Source: Australian Property Monitors - New 'For Sale' Listings (Total market) 15 Investor Presentation 800 600 400 200 0 ممه ра 2015/16 2016/17 July Aug Sept Oct Nov Dec Jan 2017/18 2018/19 Feb March April May June. 2015/16 2016/17 2017/18 2018/19 July Aug Sept Oct Nov Dec Jan Feb March April May June Weak national trends with significant declines in Sydney and Melbourne in FY19 H2. Relative stability in Canberra. Domain#16Introduction and Overview | Residential Total market new listings trends: Brisbane, Adelaide and Perth Brisbane 7,000 6,000 Adelaide 3,200 2,700 National 60,000 55,000 50,000 45,000 40,000 35,000 Ам 5,000 4,000 3,000 2,200 1,700 1,200 2015/16 2016/17 2017/18 2018/19 2015/16 2,000 0,700 July Aug Sept Oct Nov Dec Jan Feb March April May June July Aug Sept Oct Perth 6,000 2015/16 2016/17 2017/18 2018/19 25,000 July Aug Sept Oct Nov Dec Jan Feb March April May June 5,000 30,000 4,000 3,000 M i Source: Australian Property Monitors - New 'For Sale' Listings (Total market) 16 Investor Presentation 2,000 2015/16 2016/17 2017/18 2018/19 July Aug Sept Oct Nov Dec Jan Feb March April May June 2016/17 2017/18 2018/19 Nov Dec Jan Feb March April May June Significant declines in Brisbane and Perth in FY19 H2 with relative stability in Adelaide. Domain#17Introduction and Overview | Residential Platinum driving gains in depth penetration, with further upside opportunity in key markets Domain Residential Depth Product Penetration (% of New "For Sale and Rent" Listings) 17 Investor Presentation ■■■Gold & Silver Tiers ■Platinum Tier FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 Total NSW VIC QLD SA WA Domain#18Introduction and Overview | Residential Leveraging Domain's data to deliver great consumer experiences 5:46 pm domain.com.au Domain 日 has made the highest offer when the hammer falls purchases the property I unconditionally. m Doman Second chance: Upfront costs calculator Find out how much you could put towards your deposit Calculate> Repayments calculator jeee 10:40 Launcher domain.com.au Properties sold this weekend 132 Warners Avenue, Bondi Beach is back on the market. My suburbs All suburbs Suburb name Abbotsford 22 10:58 domain.com.au We found these just for you Sold prior to K auction $1.125m Auction 18/24 Sandridge Street, Bondi NSW 2026 1816-0 Google Sydney Girls High School Anzac Parade & Cleveland Street. Surry Hills NSW 2021 Girls Government Filter 1000 properties for sale in S Properties near Sydney Girls High School FOR SALE FOR RENT See how much your monthly repayments would be Calculate> Equity calculator Calculate how much equity you may be able to access Calculato Dom Loan Finder, Credit Representative 5008 is the cred adviser A property is considered to be "on the market" when bidding reaches the reserve price, which is the minimum price the vendor will accept. If bidding fails to reach the reserve, the property "passes in" to the highest bidder, who normally has the first chance to negotiate a sale price with the Beachside haven 132 Warners Avenue. Bondi Beach NSW 2026 482620 House Total 24/3A Blackwall Point Rd Devine Real Estate Drummoyne Calculate monthly repayments Features. Air Conditioning Balcony/Deck Built-in wardrobes Dishwasher Fireplace Gas heating Internal Laundry Swimming pool Iconic And Rare Bondi Beachside house Iconic, impressive and simply incredible Located on a popular and high profile Bondi Annandale 13A Bayview Cr Pilcher Residential View all sold View for sale 1 House 3 beds Withdrawn View all sold View for sale How much could I bid at auction? Find out with Domain Loan Finder. Latest News Come for a day, stay for a lifetime: How this quiet town hooks newcomers in Reserve prices smashed at Melbourne auctions but Search by School Name Domain's location search now includes search by school name, providing a list of properties available within the school zone Domain Loan Finder Integration Integration of personalised tools (e.g. calculators) across the core search experience and editorial Notifications Enhanced notifications to inform users about changes to shortlisted properties and auction results Auctions Enhanced auction result pages support user engagement through links to other relevant Domain products and services Personalised Recommendations New listing recommendations leverage Domain's data capabilities to provide relevant and timely information to users 18 Investor Presentation Domain#19Introduction and Overview | Residential Strengthening our core product offering for Owners Domain Search by address, building stront or subu 25 John Street, Greenville NSW 2000 House 85 63 01 Estimate range High Confidence LOW $3.33m MID $3.79m HIGH $4.25m Estimate from APM based on high avalability of comparabia data in this as When are you looking to sell? The sooner you're looking to sell, the more likely an agent will prioritise your appraisal so you can get your property on the market In the next month In the next 3 months In the next 6 months In the next year Next Domain When it's time to sell, think Domain With 5.8 million Australians visiting Domain each month, we connect you with the buyer you're looking for. From discovering what your home is worth to finding the right local agent, start your selling journey here. Get Started Find someone who can help you sell Don't go it alone-start your selling journey with a Thinking of buying or selling? Our property reports help Domain members better understand the market. Just tell us a bit about yourself and we'll email your report. Get my free property report Price Estimates Expansion in estimate numbers and improved accuracy delivering increased value to home owners Appraisal Funnel A new appraisal experience supports vendors with agent selection and provides qualified vendor leads to Agents Seller Tools Creation of a centralised hub to support potential vendors throughout the selling process, bringing together Domain's tools and content Free Property Report New free property report available for download by Buyers and Owners provides insights into individual properties and surrounds, and drives membership 19 Investor Presentation Domain#20Media, Developers & Commercial ° Revenue $m 54.1 47.1 -12.9% FY18 FY19 Revenue as % of Total 14% Key Result Drivers Strong commercial revenue growth Developer performance reflects Sydney and Melbourne market conditions Media business transitioning to higher margin model#21Introduction and Overview | Media, Developers & Commercial Strong performance from Commercial Real Estate Domain media Domain Performance Media • Transition to lower revenue, higher margin model impacting on display advertising New programmatic offering delivering strong growth Developers Weakness in major markets of NSW and Victoria • Market share gains in emerging markets • Commercial Real Estate Commercial Real Estate (CRE) Market share gains supported by increased platinum depth penetration, and standout growth in Queensland 30%+ underlying growth in revenue Market Dynamics Strategy 21 Investor Presentation Continued market share gains by Google and Facebook pressuring digital publishers Display advertising verticals seeing reduced spend ⚫ Drive new revenue sources through automated sales channels Support Consumer Solutions growth through efficient use of advertising inventory Property investors affected by financing constraints and other regulatory issues Shift away from investor to owner- occupier pressuring high-rise developments, with some resilience in smaller boutique projects • Use data and insights and multi- platform solutions to drive improved marketing efficiency for clients Geographic expansion into emerging markets, particularly Queensland ° ° • Sector supported by low interest rates and low unemployment Low office vacancy rates in east coast CBDs affecting marketing budgets Leverage strong platform of listings and audience to drive yield through higher depth penetration Develop new categories to support growth Domain#22Introduction and Overview | Media, Developers & Commercial CRE product innovation delivers great consumer experiences Back Commercial Real Estate Commercial Real Estate 12:31 pm commercialview.com.au c alview More Properties for Lease in Sydney, NSW Start our journey Industrial Propert 87,450 pa (excl. GST) For Lease $3 312-318 George Street, Sydney NSW Hotel/Leisure 582m Expressions of interest Contact Agent 4 George, 2000 Offices Suite 92/183 Sydney, NSW 34 m² Enter Keywords Commercial Real Estate FOR SALE Investor/Developer FOR LEASE Lessne Suburbs Postcode State or 10 Select property type 10 km FOR SALE OR LEASE Owner/Occupier Now Jenny Brown Old mill in rural WA set to be the first of many hotels in restored bush buildings One businessman is on a mission to save the state's beautiful built heritage. New Listings Pages Launch of new listing template for Business and Franchise sections to enhance the user experience Recommendations Introduction of new recommendations on listings pages leverages Domain data and promote user engagement through relevant and timely information CommercialView Integration of CommercialView into CRE improves the user experience through expanded product offering News Migration Migration of CRE news to Domain news platform providing a consistent user experience across the Group 22 Investor Presentation Domain#23Agent Services uie wod Revenue $m 27.9 32.2 +15.1% FY18 FY19 Revenue as % of Total 10% Key Result Drivers ° Growth in yield ° Increased ownership of Homepass Further integration of agent services offering#24Introduction and Overview | Agent Services Enriching the Domain property cloud suite to grow subscriptions and revenue pricefinder Property Data, Research and Insights Platform homepass 68.5%-Owned Open for Inspection Registration Tool and Database * my desktop Real Estate Customer Relationship Management Platform Current competitive position #2 in property data #1 in sales open for inspection Innovation Expanded features include new property monitoring function that informs agents of real-time changes to properties, as well as tighter integration with MyDesktop 15.2% 826K HALL DRIVE MEMA 24 Investor Presentation 812 New Homepass features include attendees being sent a Domain link post- inspection, driving an uplift in weekend sessions to Domain Hi, Harold Isabel 2 in Maboume today 27 Elzabeth St Malvern Activity Loves the yard- #1 in real estate sales CRM The new MyDesktop experience Hi Mike Many NSW3095 brings a faster, mobile responsive interface. New interactions for both contacts and properties empower the agent on the go Domain#25Introduction and Overview | Agent Services Domain provides solutions to agents that address their key challenges and opportunities Agents want Find and winthe next listing Market and sell the property quickly for the best possible price m Rich data and unique insights 25 Investor Presentation 인이 Mi Run an efficient and profitable business Differentiate their brands and attract and retain talent Domain delivers DC - Domain Powerful multi-channel Agenttools Large and exclusive marketing platform audiences Domain Domain Light touch pricefinder homepass * my desktop FULLY CONVERTED Domain for Agents Everything for Agents under one roof TH 27 Elizabeth St, Malvern 826K Domain#26Introduction and Overview | Agent Services Introducing Domain for Agents: Everything an agent needs under one roof Domain Everything for Agents under one roof Domain for Ages brings together everything Deliver the best results Grow your market share Sulutions for ding the right market Stay mobile Be inspired Property Ca The and thought The p Domain PROPERTY MARKETING DOMAIN ACADEM 370 Domain for Agents Everything for Agents under one roof One central location Domain for Agents will provide a single entry point for agents to access everything they need to find and win listings and have confident conversations with vendors about Domain products, market insights and news Pricefinder, Homepass and MyDesktop New product pages showcase the latest releases, innovations and integrations to support upsell and cross-sell across the agent product suite Insights Hub Domain for Agents also features a logged-in property insights hub that leverages Domain's rich data. New and upcoming features include: an agent dashboard, appraisal funnel, real-time listing insights, vendor and buyer enquiry insights 26 Investor Presentation Domain#27Domain LOAN FINDER lendi Revenue $m 26.9 24.4 +10.0% Log in Consumer Solutions & Other Get a home loan the smart way. Online. Home loans are complicated. That's why we make it easy with a simple online process. Our expert team will guide you every step of the way. Get started • FY18 FY19 Revenue as % of Total 8% Key Result Drivers Revenue impact from slowing Compare & Connect growth and divestment Strong early revenue growth from Domain Loan Finder and Domain Insure#28Introduction and Overview | Consumer Solutions Strong competitive positions and key business development initiatives Current competitive position Our right to compete Key business development initiatives • • • HOME LOANS Domain LOAN FINDER POWERED BY lendi Solid foundation - Domain Loan Finder gaining traction. Scaling operations and deepening product integration INSURANCE Domain INSURE UTILITY CONNECTIONS Domain CONNECTIONS Emerging- Domain Insure transitioning from white label to agency model^ Transitioning - Domain Connections developing a higher margin model through service expansion and increased focus on lead generation Large audiences with high purchase intent Rich data assets Established digital platform to take advantage of market evolution to end-to-end digital transaction Strong compliance and industry-leading efficient broker network Large audiences with high purchase intent Rich data assets Differentiated compelling and efficient digital experiences Cross-sell opportunity Large audiences with high purchase intent Rich data assets Strong relationships and engagement with major energy retailers . Grow awareness of and engagement with Domain Loan Finder brand Further integration with Domain • Expansion of broker capacity and effectiveness Transition from white label to agency model with compelling bespoke consumer experiences Grow awareness of and engagement with Domain Insure brand Diversification of product suite Sale of Compare & Connect to focus on higher margin revenue Integration with retailer digital pathways Target renters segment Optimise digital cross-sell opportunity from Domain Loan Finder and Domain Insure customers ^ 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. Domain 28 Investor Presentation#29Introduction and Overview | Consumer Solutions Domain Loan Finder is changing the home loan industry and resonating with consumers Consumers want Traditional broker model Domain delivers Domain Loan Finder performance Instantaneous feedback Seamless property purchase journey Understanding of their needs Unbiased advice *Source: productreview.com.au 29 Investor Presentation Average of 5 Major Banks Domain LOAN FINDER POWERED BY lendi Time-consuming offline interaction After-thought to the property purchase journey Reduced visibility of customer needs Live pricing and pathway to online approval Integration into Domain's property search experience Digitally led-customer engagement throughout the property cycle Lacks transparency and is relationship-based Broad and unbiased menu of ~1600 products Customer reviews* 1.6/5 Domain LOAN FINDER POWERED BY lendi Customer reviews* 4.8/5 Unconditional approvals FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY19 Q1 FY19 Q2 FY19 Q3 Settlements FY19 Q4 FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4 Domain#30Print The Sydney Morning Herald FINANCIAL REVIEW Domain 3:4 MAY 2019 Revenue $m 77.1 54.3 -29.6% FY18 FY19 Revenue as % of Total 16% Neutral • Key Result Drivers Cyclicality in auction and Developer markets Disciplined cost management Sale of Star Weekly titles supports margin improvement#31Introduction and Overview | Print Print benefiting from focus on cost efficiency • Revenue decline of around 30% reflecting weakness in Domain REVIEW PEOPLE & PROPERTY OF MELBOURNE residential listings, auctions and developer markets, particularly in Sydney and Melbourne Markets that experienced a lesser property downturn demonstrated lower rates of decline including Canberra and Commercial Real Estate Cost initiatives and print volume decline contributed to 29% reduction in expenses year-on-year, with continued focus on cost efficiencies Sale of Star Weekly titles to support higher margin strategy Print delivers strategic value to Domain by: - Attracting high value and passive buyers and aspirational and lifestyle audiences Building agent profile and brand Opportunities for bundling with premium digital products (e.g. Dream Homes and Social Boost) to enhance results. Domain MEGA GAL ON THE MOMEN THAT MATTER M DIANA C HOW TO C FIONA H THERE'S SABAHLO A NEW VO 31 Investor Presentation Ther Domain Light touch Effortlessly smart and beautiful. Ministers hold out se company tax cuts Abbett warns on policy PROPERTY BY Danas WARREWOOD FULLY CONVERTED The Star Marning Herald shake up that's Buyers decide to wand wait as Sydney clearance rate What production in Australia mean for ommercial real estate Heres that make a good st ingresos have five things SMALL BUSINESS > Domain PRESTIGE ANCIAL IN POINT OF PERFECTION Contact Agent Sea Subarb, STATE 1254 58 36 20 Domain#32Current Trading Environment and Outlook Jason Pellegrino, CEO Domain#33Current Trading Environment and Outlook . • FY20 Outlook In line with broadly reported market indicators, Domain's proprietary datasets have shown some encouraging signs of buyer activity in the first weeks of FY20, including attendance at open for inspections and home loan application volumes. However listings volumes remained weak in a seasonally low listings period, with national market new listings declining ~20% in July 2019 with Sydney and Melbourne new listings down 26% and 27% respectively. For FY20 Domain will remain disciplined in managing its cost base to take account of the trading environment, while continuing to invest in growth initiatives. 33 Investor Presentation Domain#34Group Financials Rob Doyle, CFO Domain#35Group Financials Reconciliation of Statutory (Reported 4E) to Trading Result FY19 FY19 Statutory (Reported 4E) Less Significant Items Statutory Excluding Significant Items Adjustments to Statutory Trading Performance Excluding Significant Items $m Revenue Share of Profits/ (Loss) Expenses EBITDA Depreciation & Amortisation EBIT Net Finance Costs 343.3 (7.7) 335.6 335.6 (0.3) (419.1) 181.8 (0.3) (237.3) (76.1) 174.1 98.0 (34.6) 2.5 (32.1) (0.3) (237.3) 98.0 (32.1) (110.7) 176.6 65.9 65.9 (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 (2.4) (2.4) (2.4) Interest Net Profit/ (Loss) Attributable to Members of the Company (137.6) 174.9 37.4 37.4 Earnings Per Share (EPS) C (23.67) 6.43 6.43 35 Investor Presentation Domain#36Group Financials Reconciliation of Statutory (Reported 4E) to Proforma Result FY18 FY18 Statutory (Reported 4E) Less Statutory Excluding Significant Items 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) Expenses EBITDA (1.4) (1.4) (251.6) 36.0 (215.6) (24.6) (1.4) (240.2) 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 Net Profit Attributable to Members of the Company (3.4) (1.9) (5.3) (5.3) (6.2) 29.6 23.5 29.4 52.9 Earnings Per Share (EPS) C (1.55) 5.92 9.17 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. 36 Investor Presentation Domain#37Group Financials Domain cost reconciliation and structure Cost Reconciliation of Statutory (Reported 4E) to Total Expenses (excluding Significant Items) Cost Structure FY19 FY19 FY18 % Staff $m change Statutory Expenses (419.1) Less Significant Items 181.8 Statutory excluding Significant Items (237.3) (251.6) 36.0 (215.6) (66.6%) 15% n/a 5% 40% (10.1%) 8% $237.3m Adjustments to Statutory (24.6) n/a Total Expenses (237.3) (240.2) 1.2% (excluding Significant Items) 17% 15% Production and Distribution Promotion Computer and Communications ■Property, Repairs and Maintenance ■Other comprising Consumer Solutions Expenses (33.8) (25.9) (30.7%) Underlying Expenses (203.5) (214.3) 5.0% FY18 Proforma Staff Estimated impact of AASB16 Impact +/- 13% FY20 4% $m 39% 7% Operating expenses - Property, Repairs & Maintenance Depreciation and amortisation + 7-9 $240.2m (8)-(10) 17% Interest expense (0)-(2) ■Production and Distribution Promotion Computer and Communications Property, Repairs and Maintenance Other Net Profit (1)-(3) 20% 37 Investor Presentation Domain#38Group Financials Significant Items $m Impairment of goodwill Income tax benefit Impairment of goodwill, net of tax Restructuring charges Accelerated depreciation Income tax benefit Restructuring, net of tax Gain on contingent consideration payable and sale of controlled entities Income tax expense Gain on contingent consideration payable and sale of controlled entities, net of tax Significant items, net of tax • FY19 FY18 (178.8) (29.6) 2.7 (178.8) (26.9) (2.9) (6.4) (2.5) 1.6 1.8 (3.8) (4.6) 7.7 7.7 (174.9) (31.5) The accounting standard AASB 136 required assessment of carrying values as a result of the lower listings environment, particularly in Sydney and Melbourne. These lower growth assumptions resulted in a non-cash impairment charge of $178.8 million being recognised. The charge is non-cash in nature and there is no impact on banking covenants. 38 Investor Presentation Domain#39Group Financials Cash Flow (Statutory) $m FY19 FY18 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 Cash at Beginning of Period (11.5) 2.5 60.8 58.3 39 Investor Presentation Cash at End of Period 49.3 60.8 Domain#40Group Financials Debt Facilities $250m syndicated bank facility with a maturity of 3 to 4 years Facility drawn down to $163m as at June 2019. 40 Investor Presentation $Am 200.0 150.0 100.0 FY19 50.0 FY20 FY21 FY22 ■Undrawn Drawn Facility Usage $m Non Current Syndicated Bank Facility 250.0 163.0 Total Debt Facilities 250.0 163.0 Domain#41Group Financials Balance Sheet Balance sheet movements reflect a non-cash impairment of intangible assets of $178.8m and repayment of debt of $25m Net debt of $113.2m represents a leverage ratio of 1.2x. 41 Investor Presentation 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 Total Equity 3.4 1,163.5 10.8 1,333.5 Net Debt/ (Cash) 113.2 126.5 Domain#42G H H V < B > N M H alt command option Domain Q & A Jason Pellegrino, CEO Rob Doyle, CFO Domain#43Thank you Contact: [email protected] Domain The Sydney Mormug fjerald FINANCIAL REVIEW Domain#44Appendices Domain#45Appendices 1. Non-Controlling Interests* 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. 45 Investor Presentation Domain#46Appendices 2. FY19 and FY18 Results adjusted for divestments* FY19 $m Revenue 302.3 FY18 Proforma 322.1 % Change (6.1%) Share of Profits (Loss) (0.3) (1.4) 77.8% Expenses (205.4) (207.4) 0.9% EBITDA 96.6 113.3 EBIT 64.9 87.9 (14.7%) (26.1%) *Note: Divestments include Compare & Connect and Beevo in Consumer Solutions and Star Weekly in Print. 46 Investor Presentation Domain#47Appendices 3. FY19 and FY18 Segment Results adjusted for divestments* REVENUE EBITDA EBITDA MARGIN FY19 $m FY18 Proforma % FY19 Change FY18 Proforma % FY19 Change FY18 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) 3.1 0.9 259.7% (8.6) (3.9) (118.1%) & Other 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 Domain Group 1.9 302.3 1.3 51.2% (17.5) (16.3) (6.8%) 322.1 (6.1%) 96.6 113.3 (14.7%) 31.9% 35.2% *Note: Divestments include Compare & Connect and Beevo in Consumer Solutions and Star Weekly in Print. 47 Investor Presentation Domain#48Appendices 4. FY19 H1 and FY18 H1 Results adjusted for divestments* FY19 H1 $m FY18 H1 Proforma % Change Revenue 164.9 165.9 (0.6%) Share of Profits (Loss) (0.3) (0.7) 55.1% Expenses (113.0) (109.5) (3.2%) EBITDA 51.6 55.8 (7.4%) EBIT 37.5 43.2 (13.2%) *Note: Divestments include Compare & Connect and Beevo in Consumer Solutions and Star Weekly in Print. 48 Investor Presentation Domain#49Appendices 5. FY19 H1 and FY18 H1 Segment Results adjusted for divestments* REVENUE EBITDA FY19 H1 FY18 H1 % FY19 H1 $m Proforma Change FY18 H1 Proforma % Change EBITDA MARGIN FY19 H1 FY18 H1 Proforma Residential 93.6 86.1 8.6% Media, Developers & CRE 25.8 28.7 (10.1%) Agent Services 15.8 13.7 15.2% Core Digital 135.2 128.6 5.1% 55.9 55.9 0.1% 41.3% 43.4% Consumer Solutions (Transactions) 1.5 0.1 896.0% (5.0) (1.8) (183.6%) & Other 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 Domain Group 0.9 164.9 0.6 49.1% (8.4) (7.9) (6.2%) 165.9 (0.6%) 51.6 55.8 (7.4%) 31.3% 33.6% *Note: Divestments include Compare & Connect and Beevo in Consumer Solutions and Star Weekly in Print. 49 Investor Presentation Domain#50Domain