REA : Financial Statements for the year ended 30 June 2016

REA Group Limited ABN 54 068 349 066‌‌‌‌‌ Audited Financial Statements for the year ended 30 June 2016 Index

Corporate information 3

Directors' Information 4

Directors' Report 8

Auditor's Independence Declaration 18

Remuneration Report 19

Consolidated Income Statement 31

Consolidated Statement of Comprehensive Income 32

Consolidated Statement of Financial Position 33

Consolidated Statement of Changes in Equity 34

Consolidated Statement of Cash Flows 35

Notes to the Consolidated Financial Statements 36

Directors' Declaration 86

Independent auditor's report 87

Historical results 89

REA Group Limited Corporate Information Corporate information

Directors	Mr Hamish McLennan (Chairman) Ms Tracey Fellows (Chief Executive Officer) Mr Roger Amos Ms Kathleen Conlon Mr Richard J Freudenstein Mr William Lewis (resigned 12 November 2015) Mr John D McGrath Mr Michael Miller (appointed 12 November 2015) Ms Susan Panuccio (appointed 22 March 2016) Mr Peter Tonagh (resigned 22 March 2016)
Chief Financial Officer	Mr Owen Wilson
Company Secretary	Ms Sarah Turner
Principal Registered Office in Australia	511 Church Street Richmond, Victoria, 3121 Australia Ph: [phone] Fax: [phone]
Share register	Boardroom Pty Limited Level 12 Grosvenor Place 225 George Street Sydney NSW 2000 Australia Ph: 1300 737 760 (within Australia) [phone] (outside Australia) Fax: [phone]
Auditor	Ernst & Young 8 Exhibition Street Melbourne, VIC 3000 Australia
Bankers	National Australia Bank Limited
Stock Exchange Listing	REA Group shares are listed on the Australian Stock Exchange (ASX: REA)
Website	www.rea-group.com

REA Group Limited Directors' Information Directors' Information Mr Hamish McLennan

Non-executive Director appointed 21 February 2012

and Chairman since 10 April 2012. Age 50

Independent: No - Mr McLennan is a Nominee Director of News Corp Australia.

Skills and experience: Mr McLennan is an experienced media and marketing industry executive. He was Executive Chairman and Chief Executive Officer of Ten Network Holdings until July 2015 prior to which he was Executive Vice President, Office of the Chairman, at News Corp. Previously, Mr McLennan was Global Chairman and CEO of Young & Rubicam, part of WPP, one of the world's largest communications services group.

Other current directorships and offices: Director of Magellan Financial Group Recent directorships and offices:

Former Executive Chairman and Chief Executive Officer of Ten Network Holdings Limited (from March 2013, Chairman from March 2014 to July 2015)

Former Executive Vice President, Office of the Chairman of News Corp Australia (from March 2011 to March 2013)

Board Committee membership:

Chairman of the Board

Member of the Human Resources Committee

Ms Tracey Fellows BEc

Executive Director and Chief Executive Officer appointed 20 August 2014. Age 51

Independent: No

Skills and experience: Ms Fellows is Chief Executive Officer of REA Group, responsible for the Group's operations and investments across Australia, Europe, Asia and North America.

Prior to joining REA Group in August 2014, Ms Fellows was Executive General Manager of Communication Management Services at Australia Post, responsible for the physical and digital mail business which encompassed 13,000 employees.

Previously, she was based in Singapore as Microsoft Vice-President for the Asia-Pacific region responsible for 12 geographies across the region. Prior to this, Ms

Fellows was Managing Director of Microsoft Australia for four years and also served on the ninemsn Board.

Other current directorships and offices:

Member of Chief Executive Women

Member of the Royal Children's hospital foundation board

APEC Business Advisory Council (Australian Representative)

Premiers Jobs and Investment Panel (Appointee)

Board Committee membership:

Ms Fellows attends all Audit, Risk and Compliance Committee and Human Resources Committee meetings at the invitation of the Board/Committee.

Mr Roger Amos FCA, FAICD

Independent non-executive Director appointed 4 July 2006. Age 68

Skills and experience: Mr Amos is an experienced non-executive Director with extensive finance and management expertise gained during a long and distinguished career in accounting. He was a partner in the international accounting firm KPMG for 25 years before retiring in 2006.

Other current directorships and offices:

Chairman of Tyrian Diagnostics Limited (since November 2007)

Director of Enero Group Limited (since November 2009), Chairman of the Audit and Risk Committee and member of the Remuneration and Nomination Committee

Director of 3P Learning Limited (since June 2014), Chairman of Audit and Risk Committee and member of the Human Resources Committee

Governor of the Cerebral Palsy Alliance Research Foundation

Recent directorships and offices:

Former Director of Austar United Communications Limited (from May 2008 to April 2013)

Former Chairman of the Opera Foundation of Australia (from 2009 to 2013)