REA : 2017 AGM - Address and Presentation

Good afternoon. I'm Hamish McLennan, Chairman of REA Group Ltd, and on behalf of the Board I'm delighted to welcome you to our 2017 Annual General Meeting. Thank you for taking the time to attend.

Today's proceedings will be digitally recorded and will be made available on the Investor section of our website following this meeting.

Before we commence the formal proceedings, I would like to acknowledge the traditional owners of the land on which we are meeting, the Wurundjeri people, and pay my respects to Elders, past and present.

The Company Secretary informs me that a quorum is present and I now declare the meeting open.

I would now like to introduce my fellow Director - Tracey Fellows, our Chief Executive Officer, and our Non-executive directors: Roger Amos, Kathleen Conlon, Richard Freudenstein, and Michael Miller.

Unfortunately, due to other unavoidable commitments, two of our Non-Executive Directors - John McGrath and Ryan O'Hara - are unable to attend today's meeting.

We are also joined today by our Chief Financial Officer, Owen Wilson, and our General Counsel and Company Secretary, Sarah Turner. A number of the Executive Leadership Team are also present in the room today.

The Company's auditors, Ernst & Young, are represented today by our Audit Partner, Mr David McGregor.

Before addressing today's formal Agenda items, I will say a few words about the 2017 financial year and Tracey will also make a brief presentation.

We will then move on to the formal part of the meeting after which the Directors invite you to join us in the foyer for tea and coffee and light refreshments.

2017 was an exciting year for REA Group.

We continued to deliver on our strategy; we grew into new markets overseas and locally. And we put the foundations in place to diversify our audiences and experiences.

As a result, we've continued to see financial growth on the prior year. Revenue from our core operations has increased by 16% to $671 million, and our Group EBITDA rose by 16% to $381 million. We also achieved a 12% increase in net profit, finishing the year off at $228 million1.

1 All figures quoted are from core operations which excludes significant non-recurring items such as revaluation and unwind of contingent consideration,

foreign exchange ('FX') on proceeds from European operations, impairment charge, transaction costs and discontinued operations (net of gain on sale). Prior year comparative has been adjusted to meet this definition. Also excluded from 2016 results are the step-up gain on iProperty acquisition and proceeds from Move legal settlement.

For our shareholders:

• Earnings per share increased by 12% to 173.3 cents;

• And our total dividend for the year increased 12% to 91 cents per share fully franked

  This is an excellent achievement.

  It has been driven by our ongoing focus on the successful implementation of our strategy.

  Tracey and her team are committed to creating the best products and experiences for our customers and consumers around the world. This steadfast commitment has been the driving force behind delivering another outstanding performance.

  Our first quarter financial results were released earlier this month and Tracey will talk through these in more depth shortly. I'm pleased to say our flagship site, realestate.com.au, maintains its strong leadership position in the Australian market.

  We have:

• More than twice the visits on both web and app than our nearest competitor2;

• And our app has now been downloaded more than 7 million times3.

We remain the clear leader in Australia with the largest and most engaged property audience. We've continued to see growth across all parts of the business. This is a great accomplishment given the current market environment and property listing volumes remaining lower than the year prior.

We have diversified into financial services, giving us a stake in another critical part of the property purchase process.

In December, we announced our strategic partnership with NAB to create an end-to-end finance experience on realestate.com.au, offering consumers access to NAB and realestate.com.au-branded home loans. To complement this, we entered the mortgage broking market. We acquired an 80.3% stake in Smartline, one of the country's premier mortgage broking franchise groups. We then extended our partnership with NAB to create a realestate.com.au mortgage broking business.

We've enhanced our products to make them more personalised, allowing property seekers to more easily find, and be alerted to, properties that are suited to them, their lifestyle and now also their budget.

We remain focused on innovation and developing the most intuitive property experiences.

Turning to our international business, we have directed our focus to markets where we can make the greatest impact and optimise returns for shareholders.

The successful sale of our European operations in February enables us to prioritise growth in Australia, Asia and North America.

Our investment in Move, Inc. continues to perform well for REA Group, allowing us to shape and share insights from North America, the largest property market in the world.

We have also extended into India, investing in Elara Technologies, owner of PropTiger, Makaan.com and Housing.com. India is one of the fastest growing economies in the world. It has a population of more than 1.3 billion people - more than a third of whom

2 All data vs nearest competitor, Jul-Sep 2017. Web visits: Nielsen Market Intelligence. App launches: Nielsen Digital Content Ratings. 3 Google Play and iTunes. Total downloads for the realestate.com.au iOS and Android apps to Sep 2017.

live in urban areas. The pace of India's population growth - some 15 million a year - is the world's fastest, and within the next decade it's expected to edge past China to become the world's most populous country.

We made a strategic decision to enter this market very early, so we are well positioned to capitalise on India's growth as a long-term investment for us.

Asia is a region that is very early in its transition to online advertising. It is also not without its economic challenges.

There have been changes to government and banking regulations in a number of our markets, which have impacted our Asian business. There have also been challenging market conditions.

For these reasons we announced a non-cash impairment charge of $180m in June. That said, Asia remains key to our ongoing success.

We are confident in the long-term growth opportunities and we will continue to invest significantly across product, marketing and people to position us for the market's recovery.

We are leveraging our scale to provide knowledge and capability to our teams around the world.

We are enhancing the consumer experience to align with our number one Australian sites.

And we have appointed some of the world's leading digital experts to drive the transformation.

All this is helping our Asian businesses to increase speed to market. It also adds competitive advantage, in turn, creating even more value for our international customers.

I'd like to briefly address some specific comments that we have received in regard to the payment of STIs given the impairment in Asia.

REA Group is a strong and successful business and we have consistently achieved outstanding financial results. We remain focused on creating value and delivering returns for all of our shareholders.

We have achieved solid growth in challenging market conditions and the payout in STIs reflects this.

Finally, a word on our market performance.

The Group has a stable, committed and knowledgeable Board which has ensured our strategy is consistent, and is being executed in a timely and efficient way.

The execution of that strategy by management ensures we are well positioned to continue delivering strong results, and achieve continued growth in the medium to long- term.

This is reflected in our share price, which has once again outperformed the S&P/ASX200

- and reached record highs this year.

In closing, 2017 has been an exciting year, and one that positions us well for the year ahead.

The Board would like to extend our sincere thanks to you, our shareholders, for your ongoing support.

We would also like to commend and extend our thanks to Tracey and the REA Group executive team for their hard work.

Leadership is critical to the Group's global success. In my time on the Board, this is the strongest management team the company has ever had.

The team has done a fantastic job throughout the year, ensuring our employees are highly engaged and motivated to deliver outstanding results.

Thank you once again.

I will now hand over to your Chief Executive Officer, Tracey Fellows, to address the meeting.