7 August 2020

Half Year

for the half year ended 30 June 2020

Results

Agenda

2

1. Covid-19 ResponsePeter Brooks-Johnson, CEO

2. HY 2020 Highlights

3. FinancialsGeorgina Hudson, Interim FD

4. Strategic updatePeter Brooks-Johnson, CEO

5. Outlook

6. Appendix

1. Covid-19 ResponsePeter Brooks-Johnson, CEO

3

Looking after our people• All employees moved seamlessly to working from home on 17 March 2020. Small scale trial return

to office in July

• Weekly Company-wide live Town Halls to keep team connected and updated

• Enhanced support for health and well being including webinars on topics such as home schooling and mental health

• Ten days extra paid leave for those with caring responsibilities

• Recognising the challenges of the continually changing environment, new training to help managers ‘lead out of lockdown’

4

Supporting our customersSignificant financial support

• We gave all customers an automatic discount on their entire invoice value

• Tapered the discount beyond the end of the closure of the property market recognising that revenue on new transactions takes three months to reach agents post sale agreed

Helping to keep Britain moving

• 34,000 professionals from 5,200 branches attended over 50 Covid-19 related advice webinars for agents

• Provided bespoke local data to help agents make decisions during the lockdown period

• Created a Covid advice hub for consumers and professionals which has been accessed nearly 700,000 times

• Weekly consumer updates read 800,000 times per week

• Delivered integrated and secure video viewing functionality

• An automatic “relaunch” set of emails for properties listed shortly before and during lockdown

5

Video viewings platform

Local Market Data

2. HY 2020 HighlightsPeter Brooks-Johnson, CEO

6

1. For Agency and New Homes customers2. Source: Comscore3. Source: Google Analytics

Revenue down to £94.8m(2019: £143.9m)

-34%

Revenue:

Operating profit decreased to £61.7m (2019: £108.2m)

-43%

Profit:

Basic EPSof 5.7p (2019: 9.9p)

-42%

EPS: Cash returned:

Market share of time, slightly up from June 2019(2019: 87%)

88%

Share of time2:

As at 30 June 2019 down 3.3%(31 December 2019: 19,809)

19,158

Advertisers1:

Average monthly time in minutes for the 6 months ended 30 June (2019: 1.1bn)

1.1bn

Site traffic3:

Per month, down 34% reflecting discounts to customers in Q2 in response to Covid-19 (2019: £1,077)

£712

ARPA1:

7

£30.1mFree cash flow returned through buybacks. No interim dividend proposed (2019: 2.8p)

(2019: £54.0m through buybacks and dividends).

Key Performance Indicators

7

• Tenant Passport integrated into appointment booking functionality

• Tenant contents insurance sales live as a proof of concept

• Refinement of mortgage tools with Nationwide Building Society doubling engagement

• Promising growth of premium Optimiser 2020 package

• Further Local Valuation Alert optimisation

• New property details page with bigger images and integrated video in beta testing

Innovating

in property advertising

Innovating

for agent efficiency

• Secure video viewings functionality launched

• Integrated appointment booking for rentals in beta testing

• Further improved lead quality

Innovating

for future growth

Delivering on our long term strategic goals

8

3. Financials

9

Georgina Hudson, Interim FD

143.9 (50.5)

6.7 (7.5)2.2 94.8

0

20

40

60

80

100

120

140

160

RevenueHY 2019

Discount * ARPAgrowth

Customernumbers

* Otherrevenue

RevenueHY 2020

Revenue

£ m

illio

ns

243.3

267.8

289.3

143.9

94.8

0

25

50

75

100

125

150

175

200

225

250

275

300

2017 2018 2019 H1 2019 H1 2020

10

Revenue bridge

£ m

illio

ns

* Excluding impact of discount

Revenue

10

£922£1,005

£1,088 £1,077

£712

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2017 2018 2019 H1 2019 H1 2020

20,427 20,454 19,809 20,20919,158

10

12

14

16

18

20

22

2017 2018 2019 H1 2019 H1 2020

Th

ou

san

ds

Agency and New Homes Membership numbers down 3%

• Agency branches down 580 since the start of the year to 15,767

• New Homes developments down 71 to 3,391

• Customers advertising 940,000 UK residential properties on Rightmove

11

ARPA ARPA impacted by actions to support customers

• ARPA down £365 year on year to £7121

per month

• ARPA impacted by 75% discount to Agency and New Homes customers during Q2

1: For Agency and New Homes customers

£8£83

£90

£ p

er

off

ice

/de

ve

lop

me

nt

pe

r y

ear

Membership and ARPA

11

Protecting our liquidity• The Board and Leadership Team have taken a voluntary 20% reduction in salary between 1 April and

31 July

• Suspended the share buyback scheme in March, cancelled the previously announced 2019 final dividend

• The Directors are not declaring an interim dividend

• £12.1m of VAT payments deferred

• Confirmed eligibility for CCFF, however no Commercial Paper has been issued

• Utilised the Coronavirus Job Retention Scheme (CJRS) for nearly a third of employees between April and June. We intend to repay the CJRS grant by the end of the year

• Recruitment paused, recently restarted for strategic roles

• Marketing spend deferred and small cost savings across travel, accommodation and staff entertainment costs

• Ended the period with £50m cash

12

1. Costs are reported on a GAAP basis and include IFRS 2 and NI charge

Operating profit

178.3

198.6

213.7

108.2

61.7

0

50

100

150

200

250

2017 2018 2019 H1 2019 H1 2020

£ m

illio

ns

73.2% 74.2% 73.9% 75.2% 65.1%Margin:

13

Costs1

65.0

69.2

75.6

35.733.1

0

10

20

30

40

50

60

70

80

2017 2018 2019 H1 2019 H1 2020

£ m

illio

ns

Costs, operating profit and margin

13

6 months ended30 June 2020

£m

6 months ended30 June 2019

£m

Revenue 94.8 143.9

Administrative expenses (33.4) (32.9)

Share-based payments 0.2 (2.2)

NI on share-based incentives 0.1 (0.6)

Operating profit 61.7 108.2

Margin 65.1% 75.2%

Net financial expense (0.1) (0.1)

Profit before tax 61.6 108.1

Tax (11.6) (20.6)

Profit for the period 50.0 87.5

14

Income Statement

14

As at 30 June 2020

£m

As at 30 June 2019

£m

Property, plant and equipment 12.7 14.1

Intangible assets 22.3 2.9

Deferred tax assets 2.6 3.1

Total non-current assets 37.6 20.1

Trade and other receivables 12.8 25.6

Contract assets 0.4 0.4

Cash and money market deposits 50.3 54.1

Total current assets 63.5 80.1

Trade and other payables (22.5) (17.1)

Lease liabilities (11.5) (12.6)

Contract liabilities (1.3) (2.0)

Income tax payable (0.9) (20.5)

Provisions (3.5) (0.7)

Deferred tax liability (0.9) -

Total liabilities (40.6) (52.9)

Net assets 60.5 47.3

Share capital 0.9 0.9

Other reserves 0.5 0.5

Retained earnings 59.1 45.9

Total equity 60.5 47.3

15

Balance Sheet

15

Half year 2020

16

• £30.1m (2019:£54.0m) returned to shareholders prior to suspension of the buyback programme on 14th March

• 5.0m (2019: 3.6m) shares bought back and cancelled

• Closing cash of £50.3m (31 Dec 2019: £36.3m cash and money market deposits)

• No interim dividend (2019: 2.8p) given ongoing market uncertainty

• Long term capital returns policy unchanged of returning all free cash flows to shareholders through dividends and share buybacks

36.3

63.6

13.7 (29.9)

(2.1) (30.4)

(1.0) 0.1 50.3

0

20

40

60

80

100

120

140

Cash Dec2019

EBITDAbeforeIFRS 2

Workingcapital

Taxpayments

Capex Sharebuybacks

(inclcosts)

Leasepayments

Proceedson share

optionexercises

Cash HY2020

Cash bridge

16

£ m

illio

ns

4. Strategic updatePeter Brooks-Johnson, CEO

17

Making home moving easier in the UK

• The place consumers ‘turn to first’ and engage with most

• Offer unrivalled exposure, leads and products for our customers

• Innovate to create a better marketplace

The three pillars of our strategy:

Our aim is to create a simpler and more efficient property marketplace

BuyersSellersRentersLandlords

AgentsDevelopers

The place consumers turn to first and engage with most

Unrivalled exposure, leads and products for our customers

18

SIMPLICITY

-300%

-200%

-100%

0%

100%

200%

300%

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

Pro

po

rtio

n o

f 2

01

9

Branch based Agent Joiner Rate Branch Based Agent Leaver Rate

Hybrid Agent Joiner Rate Hybrid Agent Leaver Rate

Branch based agent numbers have thus far proven resilient to lockdown

Branch based agents:

• Fewer leavers every month than 2019 except for April as agents reacted to the unprecedented uncertainty

• More joiners than 2019 in May and June

• A net positive movement in July

Hybrid agents:

• Reduced property stock in Q4 2019 reduced number of ‘virtual’ hybrid branches

• Little change in number of hybrid companies

19

-350

-250

-150

-50

50

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

Branch based Agents Hybrid Agents

Estate Agency movements vs 2019

Estate Agency net membership movement

0%

50%

100%

150%

200%

January February March April May June

New Homes Development numbers indexed to 2019

New Development Listing Rate Site Sold Rate

New Homes development flow

20

• Developments reduced in Q1 as sales rate outstripped build rate

• Listing rate slows first as lockdown impacts construction

• Slight delay to sales rate decline once lockdown is implemented as deals in train complete

• If the market continues at the current pace construction is likely to be outstripped by demand in the second half of the year

Data approximately 1 month delayed

from activity

50%

60%

70%

80%

90%

100%

110%

120%

Number of sales agreed is accelerating and stock is returning to marketYear-to-date Sales Agreed vs 2019

Available Stock vs 2019

21

75%

78%

80%

83%

85%

88%

90%

• Home hunters are active in the marketplace with 38% more sales agreed in July 2020 than July 2019

• Available stock is 11% lower than this time last year, but there were over 35% more new listings in July 2020 than last year

• Most areas showing asking price and achieved price growth

• However, when thinking about branch numbers:• Wider economic and mortgage availability

concerns hang over momentum in Q4• The end of the furlough scheme in October

will further negatively impact agent cash flow of the smallest agents

50%

100%

150%

200%

250%

20%

40%

60%

80%

100%

120%

140%

160%

Rightmove digital solutions are helping agents recover

Local Valuation Alert leads vs 2019

22

• Local Valuation Alert encourages potential home sellers to request a property valuation

• The strong performance of Local Valuation Alert has been helped by product optimisationin the first half of the year

Featured Agent Engagement vs 2019• Featured Agent allows an agent to showcase

their brand to potential sellers

• Brand awareness is key for an agent being invited to value a potential seller’s home

• Can be used to drive traffic to an agent’s own website

• Customers value Rightmove products even in the most turbulent of markets with 39% of Agency branches now taking either the Enhanced or Optimiser package, up from 38% in December 2019

• Promising growth in the premium Optimiser 2020 package with 400 sales in 2020 including nearly 100 sales during lockdown with an average uplift of over £360

• Product sales growing post market reopening with July sales to Agents 7% higher than a year ago1

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2017 2018 2019 H1 2019 H1 2020

Enhanced package1

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2015 2016 2017 2018 2019 H1 2019 H1 2020

Optimiser package1

Unrivalled exposure, leads and products for our customers

23 1. Units sold to estate and rental agents

Optimiser2020

Optimiser2015

Product sales compared to 20191

20%

40%

60%

80%

100%

120%

Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20

0

50

100

150

200

250

300

350

400

450

02 Feb 20 16 Feb 20 01 Mar 20 15 Mar 20 29 Mar 20 12 Apr 20 26 Apr 20 10 May 20 24 May 20 07 Jun 20 21 Jun 20 05 Jul 20 19 Jul 20

Min

ute

s p

er

we

ek

Mill

ion

sHome hunters have returned to the market and returned to Rightmove in record numbersTime on Rightmove

Rightmove leads

24

Busiest day ever pre-lockdown

19 Feb – 42.8m mins

Busiest day ever 8 Jul – 68.8m mins

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

02 Feb 20 16 Feb 20 01 Mar 20 15 Mar 20 29 Mar 20 12 Apr 20 26 Apr 20 10 May 20 24 May 20 07 Jun 20 21 Jun 20 05 Jul 20 19 Jul 20

Le

ad v

olu

me

pe

r w

ee

k

Mill

ion

s

Week Commencing

Government allows

agents to open

Stamp duty holiday

announced

July 2020 leads 50% higher than July 2019

All weeks since 24

June higher

than previous

record

• Rightmove is the only place to find virtually the whole of the UK property market in one place. The listings lead over any other UK website has widened to over 50%

• Over 890 million visits, up 5% year on year

• Traffic to our research tools grew 4% with consumers spending over 300 million minutes on features such as sold prices in the first six months of 2020

• 21.3 million leads sent to our customers, 3% up year on year

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Rightmove Zoopla Primelocation OnTheMarket

Comscore methodology change

The place consumers ‘turn to first’ and engage with most

25 Source: 1. Comscore 2. Google Analytics

Market Share of top 4 property portals1

0.85 0.89

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2015 2016 2017 2018 2019 H1 2019 H1 2020

Bill

ion

s o

f V

isit

s

Visits2

Innovating for property advertising

26

New property details page live for Overseas properties and in beta for rental properties

• 50% bigger images

• Integrated video content

• Property size for the majority of UK properties

• 40% faster than previous page

• Overseas properties have seen a 40% increase in home hunter engagement

Innovating for future growth

27

Help home moversbe “transaction ready”

Help property professionals

be more efficient

Opportunity

Lettings appointment booking will make the process more efficient and Van Mildert more attractive to agents

28

• Allows tenants to request a viewing appointment with dates and times they are available

• Viewing request includes the next version of the tenant passport allowing the agent to prioritisethose tenants most likely to pass referencing

• Tenant automatically receives a text message reminder to help avoid missed appointments

• System automatically gathers feedback from tenant after the appointment

• One click ordering from RightmovePlus will automatically transfer tenant passport and property details to Van Mildert from the autumn

5. OutlookPeter Brooks-Johnson, CEO

29

30

Outlook

• Rightmove’s network effects benefiting from a stronger than expected property market

• Positive trading in June and July, but momentum in the second half dependent on wider economy and possibility of further lockdowns

• Capital return policy unchanged, all free cash flow to be returned to shareholders through a mix of dividend and share buybacks when prudent

• More product innovation on track for delivery in 2020

• The Board has confidence in Rightmove’s long term growth outlook

30