Domain Australia : Appendix 4D - Half yearly report and accounts

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Contents

Results for Announcement

to the Market (Appendix

4D)

1

Directors'

Report

3

Auditor's

Independence

Declaration

5

use

6

Consolidated Statement of Profit or Loss and Other Comprehensive Income

Consolidated

Balance Sheet

7

Consolidated

Cash Flow

Statement

8

Consolidated

Statement

of Changes

in Equity

9

Notes to the Consolidated

Financial

Statements

11

1.

About this Report

11

2.

Revenues

13

personalFor

Expenses

14

3.

4.

Significant Items

15

5.

Segment

Reporting

16

6. Business

Combinations,

Acquisitions,

Disposals

and Investments

in Controlled

Entities

18

7. Intangible Assets

20

8.

Interest Bearing Liabilities

21

9.

Dividends

21

10. Earnings Per Share

22

11. Commitments and Contingencies

22

12. Events

Subsequent

to Reporting

Date

22

13. Related Parties and Entities

22

Dir

ctors'

Declaration

23

Ind pendent

Auditor's Review Report

24

Appendix 4D

Results for Announcement to the Market

Domain Holdings Australia Limited and Controlled Entities for the half year ended 31 December 2021

					Restated(i)
			31 December 2021	31 December 2020
	Key Financial Information		$'000	$'000
	Total revenue from ordinary activities	Up by 27.4%	176,229		138,371
	Net profit/(loss) from ordinary activities after tax attributable to members
	Up by 2.4%	19,486		19,025
	(before non-controlling interest)
only				Franked Amount
	Dividends		Amount per Security	per Security
use		2.0 cents		2.0 cents
	2022 interim dividend (record date: 24 February 2022; payment date: 15 March 2022)
	2021 final dividend (record date: 24 August 2021; payment date: 9 September 2021)		4.0 cents		4.0 cents
	2021 interim dividend		-		-
					Restated(i)
			31 December 2021	31 December 2020
	Net Tangible Assets per Share		cents	cents
	Net tangible asset backing per share(ii)		(0.48)		(0.36)
personalFor
	1.59		1.59
	Net asset backing per share

(i) The Group's accounting policy has historically been to capitalise all costs related to Software as a Service(SaaS) arrangements as intangibleassets in the Consolidated Balance Sheet, where they meet the relevant definition. The adoption of the April 2021 agenda decision made by the International Financial Reporting Standards Interpretations Committee (IFRIC) in respect of SaaS resulted in a reclassification of these intangible assets to recognition as an expense in the Consolidated Statement of Profit or Loss and Other Comprehensive Income, impacting both the current and prior periods presented. Refer to Note 1(A)(vi) of the 2022 Interim Financial Report for changes to the significant accounting policy in respect of SaaS arrangements.

(ii) Net tangible assets are calculated based on net assets excluding intangible and right of use (ROU) assets.

In October 2021, the Group acquired 100% of the share capital in Insight Data Solutions Holdings Pty Ltd and its subsidiaries . The acquisition marks another step forward in executing on the Group's marketplace strategy to expand its addressable market beyond Agents and Consumers to Financial Institutions, and Government.

Additional information supporting the Appendix 4D disclosure requirements can be found in the Directors' Report and the Financial Report for the financial half year ended 31 December 2021.

The half year financial report is provided to the Australian Securities Exchange (ASX) under ASX Listing Rule 4.2A.3.

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1

Appendix 4D

Results for Announcement to the Market

Domain Holdings Australia Limited and Controlled Entities for the half year ended 31 December 2021

only				Statutory	Significant	Trading Performance excluding
			Results	Items (iii)	Significant Items
				Restated(iv)			Restated(iv)		Restated(iv)
			31 December	31 December	31 December		31 December	31 December	31 December
		Note	2021	2020	2021	2020	2021	2020
			$'000	$'000	$'000		$'000	$'000	$'000
Total revenue	(i)	176,229	138,371	974		1,378	175,255	136,994
		Expenses		(123,930)	(85,830)	(9,662)	(2,263)	(114,268)	(83,568)
		Operating EBITDA			52,299	52,541	(8,688)	(885)	60,987	53,426
		Depreciation and amortisation			(16,387)	(18,727)	-	-	(16,387)	(18,727)
		EBIT			35,912	33,814	(8,688)	(885)	44,600	34,699
		Net finance (costs)/income		(ii)	(3,332)	(3,549)	-	-	(3,332)	(3,549)
		Net profit/(loss) before tax		32,580	30,265	(8,688)	(885)	41,268	31,150
		Income tax (expense)/benefit		(10,884)	(9,543)	2,118	489	(13,002)	(10,032)
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personalFor		Net profit/(loss) after tax		21,696	20,722	(6,570)	(396)	28,266	21,118
	Net profit/(loss) attributable to
		2,210	1,697	-	-	2,210	1,697
	non-controlling interest
	Net profit/(loss) attributable to		19,486	19,025	(6,570)	(396)	26,056	19,421
	members of the Company
	Earnings per share (cents)		3.34	3.26				4.46	3.32

Notes:

(i) Revenue from ordinary activities excluding interest income. (ii) Finance costs net of finance income.

(iii) Significant items are those items of such a nature or size that separate disclosure will assist users to understand the accounts. Refer to Note 4 for further details.

(iv) Certain amounts shown here do not correspond to the 2021 half year financial report. Refer to Note 1(A)(vi) for changes to the significant accounting policy in respect of SaaS arrangements.

Half Ye ar Report 2022

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Directors' Report

Domain Holdings Australia Limited and Controlled Entities for the half year ended 31 December 2021

The Board of Directors presents its report on the consolidated entity of Domain Holdings Australia Limited (the Company) and the entities it controlled at the end of, or during, the period ended 31 December 2021, (collectively, the Group), and the review report thereon.

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Directors
The Directors of the Company at any time during the period ended 31 December 2021 or up to the date of this report are as follows.
Directors held office the entire period unless otherwise stated.
Nick Falloon	Mike Sneesby
N n-Executive Director and Chairman	Non-Executive Director
Greg Ellis	Jason Pellegrino
use	Managing Director and Chief Executive Officer
Non-Executive Independent Director
G off Kleemann	Lizzie Young
Non-Executive Independent Director and Chair of Audit and Risk Committee	Non-Executive Director
Diana Eilert
Non-Executive Independent Director and Chair of People and Culture Committee
Review of Operations
personalSince the end of the half-year period ended 31 December 2021, the Directors have resolved to declare an interim dividend of 2.0 cents per

Statutory revenue for the Group for half year ended 31 December 2021 was higher than the prior year at $176.2 million (HY21: $138.4 million).

The Group generated a net profit after tax attributable to members of $19.5 million (HY21 profit: $19.0 million), EBITDA of $52.3 million (HY21

EBITDA: $52.5 million) and basic earnings per share were 3.34 cents (HY21: 3.26 cents). The result is after accounting for the repayment of JobKeeper amounting to $6.5 million ($5.7 million reduction in EBITDA). Refer to Note 3 for further details.

Net debt was $166.4 million, compared with net debt of $79.0 million at 30 June 2021.

In October 2021, the Group acquired 100% of the share capital in Insight Data Solutions Holdings Pty Ltd and its subsidiaries. The acquisition marks another step forward in executing on the Group's marketplace strategy to expand its addressable market beyond Agents and Consumers to Financial Institutions, and Government. Refer to Note 6 for further details.

In December 2021, the Group refinanced its debt entering into a revised $355.0 million syndicated bank facility (previously: $225.0 million). Refer to Note 8 for further details.

Dividends

On 9 September 2021, the Company paid a fully franked dividend of 4.0 cents per ordinary share relating to 30 June 2021 profits.

fully paid ordinary share, 100% franked at the corporate tax rate of 30%, to be paid on 15 March 2022.

ForR unding of Amounts

The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to the 'rounding off' of amounts in this Directors' Report. Amounts contained in this Directors' Report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, to the nearest dollar.

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Jason Pellegrino

Managing Director and Chief Executive Officer

Directors' Report

Domain Holdings Australia Limited and Controlled Entities for the half year ended 31 December 2021

Auditor's Independence Declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 5.

onlyThe report is made in accordance with a resolution of the Directors of Domain Holdings Australia Limited.

Nick Falloon

Chairman

useSydney

17 February 2022 personalFor

Half Ye ar Report 2022

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