![]() Rightmove plc 2 Caldecotte Lake Business Park Caldecotte Lake Drive Milton Keynes MK7 8LE Registered in England no. 6426485 #### Annual Report 2021 #### Explore the life that could be...Rightmove... Rightmove plc Annual Report 2021 ![]() Designed and produced by The Team www.theteam.co.uk #### Rightmove’s purpose is to make #### home moving easier in the UK We do this by creating a simpler and #### more ecient property marketplace #### Rightmove is the UK’s number one property portal Rightmove plc | Annual Report 2021 Contents Strategic report 1 Highlights 2 Chair’s statement 4 Chief Executive’s review 5 Our strategy 20 Business model 22 Key performance indicators 24 Financial review 28 Risk management 29 Principal risks and uncertainties 33 Going concern and viability statement 34 Section 172 – Working with our stakeholders 38 Sustainability report Governance 62 Corporate governance report 65 Directorsandocers 72 Audit Committee report 81 Nomination Committee report 84 Directors’ remuneration report 103 Directors’ report 106 Directors’ responsibilities statement 107 Auditor’s report Financial statements 114 Consolidated statement of comprehensive income 115 Consolidated statementofnancial position 116 Company statement ofnancialposition 117 Consolidated statement of cashows 118 Company statement ofcashows 119 Consolidated statement of changes in shareholders’ equity 120 Company statement of changes in shareholders’ equity 121 Notes forming part of thenancialstatements 156 Advisers and shareholder information ![]() Rightmove plc | Annual Report 2021 | 1 STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS “ Our ambition to make home moving easier in the UK is undiminished and drives our everyday business and longer-term strategy, and I’m excited about our plans to use our industry-leading platform to digitise more of the home moving journey.” Peter Brooks-Johnson Chief Executive Ocer Strategic report | Highlights Financial highlights Operational highlights (1) Underlying operating prot is dened as operating prot before share-based payments charges (including the related National Insurance). (2) Underlying EPS is dened as underlying prot (prot for the year before share-based payments charges including the related National Insurance and appropriate tax adjustments), divided by the weighted average number of ordinary shares in issue for the period. Revenue Revenue of £304.9m (2020 £205.7m) up 48% compared to 2020. Revenue up 5% compared to 2019 (2019: £289.3m) reecting the growth in both customer spending and ARPA +48% Customer numbers Membership numbers down 1% to 18,969 compared to 2020 (2020: 19,197) with 1% more Agency branches and 13% fewer New Homes developments. Compared to 2019, membership numbers down 4% (2019: 19,809) with 1% fewer Agency branches and 17% fewer New Homes developments 18,969 Cash returned to shareholders Cash returned to shareholders through share buybacks and dividends totalled £238.8m (2020: £30.1m; 2019: £148.5m). Interim dividend of 3.0p and nal dividend of 4.8p (2020: nil and 4.5p; 2019: 2.8p and nil). Total dividend for 2021 of 7.8p (2020: 4.5p; 2019: 2.8p) £ 238.8m Trac – time on site (4) Time on site up 15% over the year at 18.3bn minutes (4) and up 51% compared to 2019 (2020: 15.9bn; 2019: 12.1bn) 18.3 ## billion Underlying operating prot (1) Underlying operating prot (1) £231.0m up 68% compared to 2020 and up 5% compared to 2019 (2020: £137.5m; 2019: £219.7m) +68% Properties advertised Over 692,000 UK residential properties advertised on Rightmove (2020: 1.0 million; 2019: 0.9 million), more than anywhere else in the UK 692,000 Operating prot Operating prot of £226.1m up 67% compared to 2020 and up 6% compared to 2019 (2020: 135.1m; 2019: £213.7m) +67% Employee engagement 89% of employee respondents think that Rightmove is a great place to work (2020: 93%: 2019: 81%) 89% Underlying earnings per share (2) Underlying earnings per share (2) of 21.8p up 70% on 2020 and up 7% on 2019 (2020: 12.8p; 2019: 20.3p) +70% Trac – visits Site visits up over 19% compared to 2020 to 2.5 billion (4) and up 56% from 2019 (2020: 2.1 billion; 2019: 1.6 billion) +19% Basic earnings per share Basic EPS of 21.3p up 69% on 2020 and up 9% on 2019 (2020: 12.6p; 2019: 19.6p) +69% Average Revenue Per Advertiser (3) Average revenue per advertiser (ARPA) (3) up 53% compared to 2020 and up 9% compared to 2019 (2020: £778; 2019: £1,088) £ 1,189 (3) Average Revenue per Advertiser (ARPA) is calculated as revenue from Agency and New Homes advertisers in a given month divided by the total number of advertisers during the month, measured as a monthly average over the year. (4) Source: Google Analytics. ![]() 2 | Rightmove plc | Annual Report 2021 Returns to shareholders and dividend In keeping with our policy of returning free cash to our shareholders, £238.8m (2020: £30.1m) was returned through the share buyback programme, which resumed in March, and dividend payments were made in May and October. The Board remains condent in our ability to deliver sustainable returns to shareholders and is recommending a nal dividend of 4.8p per share for 2021 (2020: 4.5p). The nal dividend will be paid, subject to shareholder approval, on 27 May 2022. The share buyback programme, which paused for the Closed Period from 1 January, will resume in March 2022. Board priorities and governance There have been no changes to the Board or Committee membership during the year. In 2021, the Board has focused on augmenting the senior leadership team, investing in our core business and in two key strategies aimed at improving tenants' rental journeys and providing home buyers with an eective digital journey towards selecting a mortgage. In corporate governance, we aim to be best in class and have established a Corporate Responsibility Committee to oversee the Group’s Environmental, Social and Governance (ESG) strategy. The Audit Committee has overseen the competitive tender for the new external auditor and proposed the appointment of EY LLP to replace KPMG LLP, which the Board has recommended for shareholder approval at our AGM in May. The Group Risk Committee has supported the Audit Committee’s work, notably recommending a new comprehensive Risk Management Framework which will be fully implemented in 2022 (see the Corporate Governance Report and Risk Management section for details). It is my pleasure to present Rightmove’s results for the year ended 31 December 2021. Rightmove celebrated its 21 st Birthday in 2021 and we are delighted our results demonstrate the resilience of the Group’s business model, the return to more normal operating conditions and continuity of growth from 2019, looking through the disruption of 2020. 2021 has been the busiest year in Rightmove’s history, with record numbers of home hunters spending over 18 billion minutes on our platforms. The UK property market has seen extraordinary activity this year with over 1.4m transactions, fuelling an increase of 4.6% in average house prices. The strong market has presented opportunities and pressures for our customers and our business, and I am proud that our teams have delivered great service to our customers and home hunters during the year. In September, we were able to hold a Group-wide employee day, bringing all our teams together after 18 months of remote working, with many new team members experiencing for the rst time the enjoyment of ‘all being in it together’ and able to meet new colleagues for the rst time. Our workforce has grown by 12%, with over one-third joining during lockdown, and bringing people together has been extremely important to us. Financial Results The Group’s results reect the strength of our business model and core value proposition, delivering underlying operating prot (1) of £231.0m (2020: £137.5m) and operating prot of £226.1m (2020: £135.1m) from revenue of £304.9m (2020: £205.7m). Underlying earnings per share (2) was 21.8p (2020: 12.8p) and basic earnings per share 21.3p (2020:12.6p). Our cash (3) position at the year-end was £48.0m (2020: £96.7m), having returned all surplus cash to shareholders. Strategic report | Chair’s statement Following a year of strong recovery and a return to the growth trajectory our stakeholders expect, we are condent that our investment in technology and people will uphold Rightmove’s position as the UK’s number one property portal. Andrew Fisher Chair ![]() Rightmove plc | Annual Report 2021 | 3 STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS I am pleased to report that the comprehensive set of ESG initiatives and performance targets set by the Board in 2020 have enhanced our approach and oversight of environmental risks, employee welfare and governance (see the Sustainability Report for details). This year we are able to report under the recommendations of the Taskforce for Climate-related Financial Disclosures and submit our environmental targets to the Science Based Targets initiative. We continue to make progress on the Social side of ESG, with support for our employees and the communities in which our oces are based. We have also made a signicant increase in our charitable giving programme this year, and aim to continue to do so in the coming year. Looking ahead We fully appreciate the talent and dedication of our teams and on behalf of the Board, I would like to thank all our employees for their outstanding eorts in delivering such strong results in another challenging year and for serving our customers and consumers so well. Following a year of strong recovery and a return to the growth trajectory our stakeholders expect, we are condent that our investment in technology and people will uphold Rightmove’s position as the UK’s number one property portal. We are committed to investing in our core business, to providing the premium service that our customers expect and the truly compelling consumer experience homehunters know and love, in addition to pursuing our complementary new strategies. I am looking forward to working with our teams in 2022 as we continue to invest in the long-term sustainability of our business and to create more value for all our stakeholders. Andrew Fisher Chair 25 February 2022 (1) Underlying Operating Prot is dened as operating prot before share-based payments charges (including the related National Insurance) (2) Underlying EPS is dened as underlying prot (prot for the year before share-based payments charges including the related National Insurance and appropriate tax adjustments), divided by the weighted average number of ordinary shares in issue for the period. (3) Cash including money market deposits ![]() 4 | Rightmove plc | Annual Report 2021 Strategic report | Chief Executive’s review The robustness of the Rightmove model and the value of our service are underlined by the overall record ARPA growth of £411 (53%) in the year (a 9% increase from 2019), despite the headwinds generated by the stock-constrained market in 2021. The actions taken to support our customers through discounts, training and other support during 2020 have made Rightmove a stronger business. Revenue in 2021 was 5% higher than 2019 at £304.9m, with strong momentum carried into 2022. While the core property marketing proposition continues to go from strength to strength, Rightmove’s long standing ability to build smaller businesses which leverage and support the core business continues to drive growth. In 2021 these businesses – Commercial property, Data Services, Overseas property, Third Party Advertising and the early-stage Tenant Services and Mortgages businesses grew by 30% to contribute £31.9m (2020: £24.6m). Our preparation for agile remote working at the start of 2020 means our teams have been able to continue to innovate at pace. During 2021, the team released countless improvements to the platform for consumers and four signicant new products, which are already generating revenue. Our focus remains steadfastly on making home moving easier in the UK, with progress also on our longer-term initiatives within Tenant Services and Mortgages. Whilst both initiatives are early in their revenue growth, we have experimented with and implemented many features which have yielded signicant learnings both in our ability to make the process easier for home movers, and more ecient for our customers. I am immensely proud that we have worked with our customers to help homehunters in the busiest UK property market since 2007 (1) , despite the ongoing challenges of the pandemic. The eciency of the 2021 housing market is testament to the resilience of the thousands of people who work in the UK property industry and the benets that a digital market can bring. Rightmove’s sense of common purpose is stronger than ever, with 89% of our people responding to the annual ‘Have Your Say’ survey, agreeing that Rightmove is a great place to work. The past two years have demonstrated the trust Britain’s homemovers place in Rightmove, not only as the place to nd their next home but as the most reliable source of information about the housing market. The pandemic encouraged many to reconsider what they wanted from their home, leading to a busy property market during 2021. This strong market, and Rightmove’s place at the heart of it, led to record levels of engagement with our platforms; homehunters spent over 18billion minutes on our platforms searching for a new home or location and considered new possibilities, 15% higher than any previous year. This record trac extended Rightmove’s share of audience time compared to other property portals. The increased levels of buyer demand created a consequent reduction in the number of properties available for sale. The healthy transaction numbers and lack of available stock encouraged many agents to invest more heavily in Rightmove products to ensure they could drive their businesses forward by winning those instructions which were available. The record growth of average revenue per advertiser (ARPA) to £1,189 is testament to the trust our agent customers place in the Rightmove marketing products to help them to grow their businesses. The lack of new stock saw fewer new entrants to the agency industry than in previous years and made existing agencies equally cautious about expanding their branch networks. However, our record agent retention rate of over 91% drove a 1% increase in total agency membership, despite the low number of new agency joiners. Although our number of developer customers remained stable, the imbalance between supply and demand and the impact of Covid on construction rates saw the number of New Homes developments listed on Rightmove fall by nearly 6% during 2021, with many developers having already sold all their projected H1 2022 completions by the end of 2021. This lack of stock to sell reduced developers’ marketing needs, with spend dropping across various media platforms. Against this background, the 2% growth in ARPA from New Homes developers is testament to the strength of the new products released in the year – Advanced Development Listings and Native Search Adverts. Over the past 21 years Rightmove, along with thousands of our customers, has changed the way that Britain searches and researches property. Peter Brooks-Johnson Chief Executive Ocer ![]() Rightmove plc | Annual Report 2021 | 5 STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS #### Explore the life that could be... Strategic report | Our strategy #### Strategic report #### Rightmove’s purpose is to make #### home moving easier in the UK #### Our strategy Our ambition to make home moving easier in the UK is undiminished and drives our every- day business and longer-term strategy, and we plan to use our industry leading platform to digitise more of the home moving journey. In 2021, we maintained our culture of continuous improvement and innovation to make home moving easier and to make our platforms a compelling experience for our users. Rightmove plc | Annual Report 2021 | 5 STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS 1 Consumers The place homehunters turn to and return to rst Page 6 2 Customers Unrivalled returns for our customers through digital marketing solutions and insight Page 8 3 Innovation Innovating to make the home moving process more ecient by being more digital Page 10 4 Environment Doing the right thing underpins our culture Page 12 5 Great teams Build great teams Page 14 ![]() 6 | Rightmove plc | Annual Report 2021 Strategic report | Our strategy continued 6 | Rightmove plc | Annual Report 2021 #### 1 Our consumers Rightmove’s place at the heart of home moving in the UK has been hard won and our audience has high expectations of the technology and quality of the services we oer. #### The place homehunters #### turn to and return to rst 18 #### billion minutes Homehunters spent over 18 billion (2) minutes on our platforms searching for a new home or location and considered new possibilities 2.5 #### billion visits In 2021, consumers made over 2.5 billion (2) visits to our platforms ![]() Rightmove plc | Annual Report 2021 | 7 STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS #### Best property website... Explore the life that could be The changes in working practices over the last two years have allowed people to rethink how and where they work, and live. Our ‘Where can I live?’ tool helps home hunters nd their perfect location Rightmove plc | Annual Report 2021 | 7 STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ![]() 8 | Rightmove plc | Annual Report 2021 Strategic report | Our strategy continued 8 | Rightmove plc | Annual Report 2021 #### 2 Our customers Our objectives are to help our customers to save time, grow their market share, market more eectively and create new revenue streams. Unrivalled returns for ### our customers 65 #### million We delivered a record 65 million property- specic leads to our customers 14 #### million The Best Price Guide was used over 14 million times in 2021 ![]() Rightmove plc | Annual Report 2021 | 9 STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Creating opportunities to grow Helping to generate more opportunities to win instructions cost eectively and providing a market-leading professional training programme are invaluable tools for our customers #### Best support for agents... STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 9 ![]() 10 | Rightmove plc | Annual Report 2021 Strategic report | Our strategy continued 10 | Rightmove plc | Annual Report 2021 10 | Rightmove plc | Annual Report 2021 #### 3 Innovation Rightmove has played a signicant role in digitising the property search market in the UK. We believe that, by using the power of technology to improve the journey from searching for a home to being ready to transact on it, we can create a simpler and more ecient marketplace. ### Innovating to make the ### home moving process ### more ecient 20% #### more software #### releases Accelerating the pace of new releases, with over 20% more software releases in 2021 ![]() Rightmove plc | Annual Report 2021 | 11 STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS A restless drive for improvement Rightmove is continually developing new ways to help our customers and homemovers meet the challenges of the future, whether growing their businesses or moving for a new job, a growing family or retirement STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 11Rightmove plc | Annual Report 2021 | 11 #### Most innovative property platform... ![]() Strategic report | Our strategy continued 12 | Rightmove plc | Annual Report 2021 12 | Rightmove plc | Annual Report 2021 #### 4 Environment A force for good in the UK’s drive to reduce carbon emissions and making a dierence in the communities in which we operate. A force for good in the ### UK’s drive to reduce ### carbon emissions # Net Zero Science based targets set to achieve Net Zero in our direct operations by 2030 35% #### increased engagement Highlighting the Energy Performance Certicate (EPC) on each property increased home hunter engagement with EPCs by 35% ![]() #### A sustainable future... Securing a place in the future We will use the reach of our platforms to drive the UK’s ‘net zero’ agenda, by digitising home moving in the UK and helping consumers to understand the options and benets of making their homes more energy ecient STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 13Rightmove plc | Annual Report 2021 | 13 ![]() 14 | Rightmove plc | Annual Report 2021 Strategic report | Our strategy continued 14 | Rightmove plc | Annual Report 2021 #### 5 Great teams Our employees live by the central behaviours of doing the right thing for our customers and consumers, driving improvement, and taking responsibility for making things that matter happen. One highly connected, ### collaborative team 89% #### great place to work 89% of employee respondents agree that Rightmove is a great place to work and are proud to tell people that they work here ![]() Rightmove plc | Annual Report 2021 | 15 STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Our people dene Rightmove and #### create a culture where everyone #### matters and knows that their ideas #### will be explored and views respected #### Best people in the business... STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 15 ![]() 16 | Rightmove plc | Annual Report 2021 Strategic report | Chief Executive’s review continued of over 58m properties, an increase of 21% on 2020. As many home hunters reassessed their accommodation requirements and commute times during the pandemic, the use of our Where Can I Live? tool increased by 22% in 2021, compared to 2020. We value our role as a trusted source of housing market knowledge for UK home hunters and send our consumer email to an average of ve million consumers every week. Rightmove’s unique property demand data, analytical capabilities and access to real-time search and sales patterns provides valuable insights and commentary on property and home moving trends. Our House Price Index is the most accurate leading indicator of house prices in the UK, based on 95% of newly advertised properties in the UK. Our continuous investment in building our brand and the popularity of our website and apps means that 84% of visits to our platforms are direct visits, initiated either by consumers going directly to our site or launching our app. We have again focused on search engine optimisation and consumer engagement, understanding that the behaviour of our audience is always evolving. #### Unrivalled returns for our customers through #### digital marketing solutions and insight Our objectives are to help our customers to save time, grow their market share, market more eectively and create new revenue streams. We achieve this by giving our customers access to the largest possible home moving audience, helping them to win more business, and by providing them with a range of digital services and information. While we are proud of the extended product suite we oer, we work hard to ensure that the platform works for all our customers. The record trac to Rightmove, coupled with the strong property market throughout the year, delivered a record 65 million property-specic leads to our customers, up 26% on 2020. Rightmove’s product suite has been carefully designed to be eective in both stock-constrained and demand-constrained markets. In the extreme stock-constrained market of 2021, our agent customers turned more than ever to our products to help them to win property sales instructions eciently. Winning the right to an instruction to sell or to let a property is critical to an agent’s success. Our premium packages, Enhanced and Optimiser 2020, help our customers to generate more opportunities to win instructions cost eectively. The packages include branding and property- promotion solutions to boost agents’ performance in the ‘awareness’ stage of the marketing funnel, while our popular Local Valuation Alert and Rightmove Discover products fast-track agents to the ‘consideration’ stage. Our ambition to make home moving easier in the UK is undiminished and drives our everyday business and longer- term strategy to build a valuable, sustainable business for all our stakeholders. Our Strategy – making home moving easier #### The place consumers #### turn to and return to rst Rightmove’s place at the heart of home moving in the UK has been hard won and our audience has high expectations of the technology and quality of the services we oer. In 2021, we maintained our culture of continuous improvement and innovation to make home moving easier and to make our platforms a compelling experience for our users. For 15 years in a row, Rightmove has been a more popular search term than ‘property for sale’ according to Google, and 17 years for ‘property to rent’. In 2021, consumers made over 2.5 billion (2) visits to our platforms and spent over 18.3 billion (2) minutes (2020: 15.9 billion) on Rightmove. This level of consumer engagement has been achieved by delivering the best and most relevant search and research tools and access to the most up-to-date, engaging and comprehensive property content available. Consistent with our restless drive for improvement, despite a ground-up refresh of the property details pages in 2020, we released a further 70 iterations in 2021 which made the pages more ecient for home hunters, while highlighting features which are becoming much more important, such as a property’s energy performance and its tenure. Over 71% of all time spent on Rightmove’s platforms in 2021 was to our mobile-optimised site and apps, which have again seen the fastest growth, with a 16% increase in mobile site- time and a 14% increase in app time during 2021 (2) . Our mobile-optimised website and apps beneted from continuous investment with, for example, ground-up rebuilds of our popular draw-a-search and keyword-sort features. The total amount of time spent on Rightmove apps is over 12 times (3) that spent on our closest competitor’s and our mobile and tablet apps have over 5 times (3) more unique visitors on average per month, with each user spending an average of twice as much time per month (3) . The availability of our platforms is vital for both homeowners and home hunters and we have maintained an industry-leading level of “uptime” of 99.99%, meaning our platforms were unavailable for just under 15 minutes during 2021. Our property research tools are widely used by landlords, homeowners, buyers and sellers. Consumers spent over 728 million minutes using our sold prices data from an archive ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 17 enquiries generated in the remainder of the year. Over 400,000 virtual video viewings were delivered using the secure Rightmove platform in 2021, more than double those of 2020, while the new appointment booking tool was used by tenants to request over 344,000 physical viewings. Our market-leading professional training programme, free to all members, remains an invaluable tool for our customers. The topics covered in 2021 ranged from ‘preparing for an HMRC inspection’ to ‘recruiting the best talent’ and from ‘winning new sellers’ to ‘how to help tenants with accessibility needs to nd the right home’. In the year, we added courses that gave our customers continuing professional development (CPD) certication. This accredited learning has added an extra, welcome dimension to our oering and is helping agents to full mandatory training. In 2021, over 4,500 individuals from nearly 2,500 branches received foundation and advanced certicates in GDPR (Data Protection). Overall, in 2021 our webinars were viewed by nearly 24,000 property professionals both live and through our on-demand service. Our Rightmove Hub, which hosts all the material closed the year with more than 1,000,000 page views. Rightmove’s Commercial Real Estate (CRE) portal provides access to the largest audience of agents/surveyors, landlords/ owners, developers and investors in the UK. The changes in ways of working over the last two years have accelerated digital adoption as more agents and occupiers have used Rightmove both to advertise and to search for property and, having experienced the ease of using digital tools, have continued to do so. This dynamic is reected in the healthy growth of our audience, with time spent on our commercial property pages increasing by 17% and leads to CRE customers increasing by 25% during 2021. The Rightmove platform increasingly generates leads from occupiers with signicant scale, allowing CRE agents not only to earn a fee on the property being advertised but to introduce clients to the other professional services they oer. Rightmove’s Data Services business supports the property industry by delivering property valuation tools and insights based on our unparalleled dataset. The Surveyor Comparable Tool, used by surveyors to make property valuations, was used in over 75% of mortgage transactions in the UK, with more than 2.4 million reports run in 2021. Our Automated Valuation Model is used by lenders and, overall, we valued more than £3.8 trillion worth of property in 2021. The environment for Rightmove’s Overseas property advertising business has been challenging. The uncertainty surrounding Brexit was followed by pandemic-related travel restrictions, which eectively prevented UK buyers from travelling to view properties abroad. We are now well-positioned to recover as these restrictions start to unwind and we can once again help prospective buyers to nd their dream homes abroad. The market structure particularly highlighted the eectiveness of our vendor lead products and the benets of our unrivalled rst-party data driven agent branding products. Responding to our customers’ needs, we increased the inventory of our lead generation products by 22%, increasing the number of vendor leads generated by 20% on 2020. Recognising the value of our additional products, nearly 1,400 customers chose to upgrade to our Optimiser 2020 package. These package upgrades, along with customers choosing to buy more products, and our pricing actions contributed to record agency ARPA growth between January and December 2021. The strong demand from home-hunters has led to many New Homes developments being fully sold o-plan, signicantly reducing the requirement for developers to advertise. Pleasingly, despite the strong demand for New Homes, 28% of New Homes developments upgraded to our new Advanced Development Listings subscription package, launched in April 2021, which creates an opportunity to cross-sell and up-sell plots on a development, providing better engagement and lead-generation. We continue to innovate our product set to bring together Rightmove’s extensive rst-party dataset and reduce advert- management eort for our customers by leveraging the creative assets they have already shared as part of their listings. The second of our next generation marketing products, Native Search Adverts, launched for our New Homes customers in November. By combining enhanced designs targeting developers’ needs and smart on-Rightmove retargeting pioneered with our Sold By Me product, Native Search Adverts are performing more than ve times better than location only targeted banner ads. Rightmove’s value to our customers goes beyond digital advertising solutions; we also oer tools to our customers to help them to run their businesses more eciently. In the busy and often resource-constrained environment in 2021, these tools took on heightened importance. Rightmove Plus, included free of charge as part of all Rightmove membership packages, helps customers throughout the property marketing lifecycle. Agents tell us, for example, that the new version of the Best Price Guide, a reporting tool within Rightmove Plus which helps them to gather comparable properties to support their suggested property price, saves them up to an hour per market appraisal. The Best Price Guide was used over 14 million times in 2021. The video viewing tool developed during 2020 to help with Covid-restricted viewings allowed our customers not only to remain safe during the early part of 2021, but to process eciently the higher-than-normal level of home hunter ![]() 18 | Rightmove plc | Annual Report 2021 Our quest to reduce the time taken by tenants to complete their rental journeys, from search to occupancy, remains a focus, with our rst fully digital rental-progression ow due to enter testing in the rst half of 2022. In the medium term, this ow will signicantly enhance our opportunities to engage with tenants and oer them a transparent view of their progress towards moving in. It will also oer our customers a frictionless experience that minimises data entry and enables them to signicantly reduce the administrative burden to let a property, while protecting them from regulatory risk. It will also allow us to oer more valuable services to tenants. A vital part of the home buying journey is understanding aordability, which, for many people, starts with receiving an indication that they can secure a mortgage. Home movers tell us that they only start to be condent that they can secure a mortgage at the point they want to make an oer on the home they have chosen. This is too often late in the process and can lead to frustration and disappointment for the home buyer and wasted time, delays and potentially lost sales for agents. We will help home buyers to increase their condence earlier in the property search and selection process by oering easy, personalised, lender backed mortgages in principle (MiP). In 2021, we enhanced our nascent digital ow, bringing together the MiP and property search tools with helpful content which not only creates more certainty for borrowers, but increases the volume and quality of mortgage leads for our mortgage partner. While still early in our development, we increased the number of MiPs delivered four-fold compared to 2020 and the number of mortgage reservations nearly doubled. Plans are well advanced to make the journey to achieving a MiP easier and more ecient. This helps both prospective buyers and enhances agent eciency through better qualied leads. #### Our environment and society Doing the right thing underpins our culture and fashions our response to a range of issues. We believe that Rightmove can and should be a force for good in the UK’s drive to reduce carbon emissions and to make a dierence in the communities in which we operate. A diverse Rightmove is important to us. We recognise that a diverse team will provide a wide range of perspectives that promote innovation and business success. Drawing on what is unique about individuals adds value to the way we do business and helps us to anticipate and then provide the features our #### Innovating to make the home moving #### process more ecient by being more digital Rightmove has played a signicant role in digitising the property search market in the UK. We believe that, by using the power of technology to improve the journey from searching for a home to being ready to transact on it, we can make the process more transparent, more ecient and less stressful for both professionals and homehunters. Digitisation also creates opportunities which expand and augment our revenue beyond classied advertising. While still in the early stages, we are encouraged by the possibilities we are uncovering. Viewings Manager, our integrated appointments booking system, allows tenants to request an appointment electronically and to provide enhanced lead information which allows agents easily to assess the property’s aordability and suitability. Once a viewing is conrmed, tenants can cancel or reschedule the appointment at the click of a button and receive automated reminders to help to avoid missed appointments, which is a key timesaving benet for agents. Once a viewing has been completed, agents can seamlessly order a full tenant reference from Rightmove Landlord and Tenant Services, without the need to re-enter the tenant’s details, again saving time and reducing the risk of error. In 2021, we rebranded our tenant services business as Rightmove Landlord and Tenant Services and relaunched our tenant-referencing portal with added functionality. By oering one of the highest quality tenant reference products in the industry, we were able to introduce a market-leading landlord insurance product, which will provide increased cover at no extra cost. The next iteration of the referencing product – which leverages Open Banking technology to increase speed and accuracy yet further – is already underway. When moving, tenants require a number of services, including home contents insurance and broadband, for their new homes. In 2021, we continued to develop our oering to tenants to secure these services, helping over 9,000 tenants. The combination of landlord and tenant products creates a valuable prot stream on top of the reference itself. In 2021 these additional services created an additional £4.30 prot per reference delivered. We see future growth in our ability to increase the number of tenants purchasing insurance therefore increasing the prot per reference and increasing our share of the referencing market. Strategic report | Chief Executive’s review continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 19 We work hard to create one highly connected, collaborative team, with minimal hierarchy and bureaucracy, removing any barriers to rapid growth and innovation. As we have grown our teams by 12% in a challenging year for recruitment, we have remained disciplined in our determination to employ the right people and then to support them to be condent, to innovate and to lead eectively. 2021 has been another year of extended periods of remote working and it has been a challenge to foster a strong sense of belonging and connection. Rightmovers have shown remarkable resilience and pragmatism in the face of the continuing separation from each other, and I am pleased that against this backdrop we have only seen a small decline in connectedness in our 2021 ‘Have Your Say’ survey. 89% (2020: 93%) of employees responding agreed that ‘Rightmove is a great place to work’, 89% think that they can be themselves at work and 89% are proud to work for Rightmove. Our commitment to restless improvement means that plans are in place to return these measures to their previous long-term averages. I am proud of our achievements and would like to thank all our employees for their extraordinary eorts and commitment over the past year, which has contributed to such a strong set of results. Peter Brooks-Johnson Chief Executive Ocer 25 February 2022 (1) Residential property transactions in the UK recorded by the Land Registry (2) Source: Google analytics (3) Source: Comscore Mobile Metrix ® Mobile App only, total Audience, Custom- dened list of Rightmove (Mobile App) and Zoopla Property Search (Mobile App), January – December 2021, United Kingdom. customers and homehunters expect from the Rightmove platform. We are committed to reducing the gender pay gap within Rightmove and are pleased to report that the ethnic diversity of our employees reects the UK population, with good representation in each pay quartile. We continue to work on promoting inclusion and opportunity beyond our workforce, through our partnership with Generating Genius to encourage people from disadvantaged backgrounds to consider a career in technology, and through the recruitment of a wider variety of educational backgrounds. Our environmental strategy has two elements. Firstly, to use science-based targets to reduce Rightmove’s carbon footprint within our own operations and supply chains. Secondly, to use the reach of our platforms to support initiatives to make the UK a carbon-neutral country. In 2021, we committed to the Science Based Targets Initiative (SBTi) and have submitted our targets to ensure we play our part in meeting the 1.5 °C climate challenge. Also in 2021, we took the rst steps to using our platform to promote energy ecient homes to homehunters. Highlighting the Energy Performance Certicate (EPC) on each property, for example, increases home hunter engagement with EPCs by 35%. Using the unique insight from our collaboration with the Department for Business, Energy & Industrial Strategy project to assess the value dierence of low carbon homes, we created a series of stories to expand on the benets for owners of reducing their home’s carbon footprint, achieving widespread national media coverage. We will continue to help to drive the UK’s ‘net zero’ agenda by digitising home moving in the UK and helping consumers to understand the options and benets of making their homes more energy ecient. More information about all these initiatives and our progress in meeting our environmental and social targets can be found in the Sustainability Report. #### Build great teams Our people dene Rightmove and create a culture which is highly supportive, innovative and open, where everyone matters and knows that their ideas will be explored and views respected. Our employees live by the central behaviours of doing the right thing for our customers and consumers, driving improvement, and taking responsibility for making things that matter happen. ![]() 20 | Rightmove plc | Annual Report 2021 Our purpose is to make home moving easier in the UK by creating a more ecient housing marketplace The UK housing market, both in sales and rentals, is complex and often inecient. Moving home can be a time consuming, frustrating experience for consumers and professionals, often with elements of wasted eort and unavoidable manual processes. We believe that, by creating a simpler and more ecient marketplace, we can make it easier. A better marketplace, one which empowers consumers and property professionals, leads to a better housing market. By building long-term partnerships and creating value for property professionals and consumers, we are able to grow our revenue, which in turn allows us to innovate to create more value for all. What we do Our business model has three reinforcing segments: • we are the place homehunters turn to and return to rst • this, in turn, makes us the UK’s primary property platform which delivers unparalleled ROI for our customers • and then we are in a unique position to help both customers and home hunters by making the process more digital and create new revenue opportunities. How we deliver unparalleled ROI for our customers Our customers are primarily estate agents, letting agents and new homes developers advertising properties for sale and to rent in the UK. We continue to innovate in our core business of providing advertising and tools to property professionals, generating returns for our customers in four distinct ways: • we help them to save time • we have products which help them to actively grow their market share • we help them to market more eciently using the power of by far the largest audience of home hunters in the UK • and we help them to grow new revenue streams. We also provide valuation services and unique demand side property data to surveyors and property professionals. By creating the UK’s largest digital property portal with the largest selection of properties, we have brought together virtually all the home hunting audience our customers want to attract. We are able to oer the most signicant and eective exposure for their brands and properties, resulting in the largest source of high-quality leads, thereby signicantly increasing our customers’ marketing eciency. Our digital solutions help our customers to reach their audiences more quickly and eciently, enabling them to win new business. Winning instructions is critical but time consuming for our Agency customers and we oer a number of tools and products to enable customers to win instructions. A good example of this is ‘Sold by Me’, an advertising product available with our Optimiser packages, which shows home hunters a range of properties sold by an agent in the area from which they are searching and may have a home to sell. Rightmove’s culture of constant improvement and innovation helps to create more eciency opportunities for our customers. A good example of this is 'Opportunity Manager’ – a lead management tool available with our Optimiser 2020 package, powered by an algorithm that is constantly learning and improving to intelligently spot the home hunters who are most likely to turn into potential home sellers in an agent’s area. As our customers faced new business challenges in 2021, with strong demand for properties and erce competition for home owners’ instructions, we supported our customers with Strategic report | Business model Digitising more of the transaction Digital marketing solutions which agents use to nd and win vendors Reducing customer operating costs with tools, data and services increases the potential spend on marketing solutions Digital marketing solutions which help agents nd buyers Making home moving in the UK easier ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 21 products and eciency tools to help them to manage leads and viewings eectively and to win instructions. Online Viewings is a simple tool for agents to upload video viewings and send them automatically to home hunters, which has been used for over 68,000 property listings. Our solutions for New Homes developers help them to reach almost every serious home buyer in the UK, and we help them to target these buyers both on and o Rightmove’s platform. In 2021 we added four signicant new “next-generation” property marketing products across our customer types. Each of these products leverage our unrivalled platform and data in dierent ways to deliver signicantly more value than equivalent products available elsewhere. We continue to help to drive eciencies for our Agency customers by providing best in class software that delivers data, market insight and analytical tools to help inform their decisions, with 84% of our Agency customers using our software each month. How we make the market more accessible for consumers Rightmove is free to consumers, and it is the only place where home buyers and renters can see almost the entire UK property market in one place. Rightmove has become the place consumers turn to rst when they think about moving home because they can rely on the speed and availability of our platforms to view more properties for sale and to rent than anywhere else. Finding your next home can be a stressful and frustrating experience; the simplicity and ease of access to the property information Rightmove oers can reduce that stress. Our carefully designed platforms avoid distractions in pursuit of simplicity, putting home hunters in control of their search and research. We never stand still or take Rightmove's success for granted and are continually investing to deliver the most engaging experience for home movers. Our culture is one of continuous improvement and innovation – we release hundreds of updates and improvements to our platforms each month. Investment in improved architecture and new ways of working continue to accelerate the pace of new releases, with over 20% more software releases in 2021 relative to 2020. A vital part of innovation is a disciplined willingness to experiment and learn from the results. In 2021, we have focused on two key strategic initiatives – the rst, aimed at improving tenants' rental journeys and the second, providing home buyers with an eective digital journey towards the selection of a mortgage: • Rightmove Landlord and Tenant Services oers a range of tenant services, from referencing to home insurance and utilities. • We are focussing on the homebuyer’s journey up to a mortgage decision in principle, with more innovation in bringing together mortgages and property search tools with helpful content. Beyond nding a buyer or tenant, the tools we provide for researching the property market bring simplicity and condence to sellers and landlords as they consider one of the largest transactions of their lives and choose an agent to help them on their home moving journey. How we create value for our shareholders Our principal source of revenue is the monthly subscription fees paid by customers to advertise all of their properties on Rightmove. Our customers can also pay for our additional advertising solutions, which increase a customer’s share of voice and competitiveness. These are critical factors for our customers and particularly for an agent to help to win the instruction opportunity to sell or rent a home, which remains the lifeblood of their business. As the property industry becomes more digital – a process that has accelerated for both our customers and consumers in the past 24 months – Rightmove’s market leading audience, best in class software and data driven analytics are becoming ever more valuable to our customers. Future ARPA growth will be driven by increased product penetration and pricing, which is underpinned by the value of our unrivalled audience and data, our substantial product inventory and our culture and track record for constantly innovating to benet our customers and consumers. We also continue to develop a number of smaller adjacent businesses, advertising commercial and overseas properties and providing property-related data and valuation services. Helping home hunters to become more ‘transaction ready’ will, in time, grow into a valuable source of revenue. Tenant referencing and rent-guarantee insurance capabilities through Rightmove Landlord and Tenant Services and our mortgage partnership with Nationwide Building Society are the rst steps in this journey. ![]() 22 | Rightmove plc | Annual Report 2021 Risks relevant to our KPIs (read more on pages 30 to 32) 1 Macroeconomic environment 4 Cyber security and IT systems 2 Competitive environment 5 Securing and retaining the right talent 3 New or disruptive technologies and changing consumer behaviours #### We use the metrics set out below to track our operational performance. Traffic (time on site measured in billions of minutes) 10.4 11.3 12.2 13.1 14.0 14.9 15.8 16.7 17.6 18.5 19.4 12.3 12.1 18.3 15.9 11.7 2020 20212017 2018 2019 Denition Total time measured in billions of minutes spent on Rightmove platforms during the year Strategic link The place consumers turn to rst and engage with most 2021 performance + 15 % Risks 3 2 4 Source: Google Analytics 2020 20212017 2018 2019 Employee engagement “Rightmove is a great place to work” 0 20 40 60 80 100 91% 81% 93% 89% 90% Denition Based on the number of employee respondents selecting ‘Yes’ as a response to the question ‘Rightmove is a great place to work’ in the annual employee survey Strategic link Build great teams with a culture to innovate 2021 performance - 4 Risks 5 Source: Rightmove Strategic report | Operational key performance indicators Number of advertisers 12000 13000 14000 15000 16000 17000 18000 19000 20000 21000 19,197 18,969 2020 2021 2017 2018 2019 20,454 19,809 20,427 Denition The total number of paid for UK estate and lettings Agency branches/branch equivalents and New Home developer sites advertising properties on Rightmove Strategic link The place consumers turn to rst and engage with most; and innovation to create a simpler and more ecient marketplace 2021 performance - 1 % Risks 2 1 3 Source: Rightmove Average revenue per advertiser – ARPA (in £ per month) 0 200 400 600 800 1000 1200 1,005 778 1,189 1,088 922 2020 2021 2017 2018 2019 Denition Revenue from Agency and New Home advertisers in a given month divided by the total number of advertisers during the month, measured as a monthly average over the year Strategic link Unrivalled exposure, leads and products for our customers 2021 performance + 53 % Risks 2 1 3 Source: Rightmove percentage points ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 23 1 Macroeconomic environment 4 Cyber security and IT systems 2 Competitive environment 5 Securing and retaining the right talent 3 New or disruptive technologies and changing consumer behaviours 0 50 100 150 200 250 300 243.3 267.8 289.3 205.7 304.9 Revenue £m 2020 2021 2017 2018 2019 Revenue grew by 48% year on year to £304.9m (2020: £205.7m) 2021 performance + 48 % Risks 1 2 3 4 5 Underlying EPS (pence per ordinary share) 10 12 14 16 18 20 22 2020 2021 2017 2018 2019 20.3 12.8 21.8 16.3 18.3 Underlying earnings per share (EPS) is dened as prot for the year before share-based payments charges (including the related National Insurance and appropriate tax adjustments), divided by the weighted average number of ordinary shares in issue for the period. Underlying EPS increased by 70% to 21.8p (2020: 12.8p) Basic EPS grew by 69% to 21.3p (2020:12.6p) 2021 performance + 70 % Risks 1 2 3 4 5 0 50 100 150 200 250 203.3 231.0 219.7 137.5 184.4 2020 2021 2017 2018 2019 Underlying operating profit £m Underlying operating prot is dened as operating prot before share-based payments charges (including the related National Insurance) Underlying operating prot increased by 68% to £231.0m (2020: £137.5m) with underlying operating margin (1) at 76% (2020: 67%). Operating prot increased by 67% to £226.1m (2020: £135.1m) with operating margin at 74% (2020: 66%) 2021 performance + 68 % Risks 1 2 3 4 5 Cash returned to shareholders £m 0 50 100 150 200 250 300 2020 2021 2017 2018 2019 140.4 148.5 30.1 238.8 168.5 During the year free cash ow was returned to shareholders in the form of share buybacks and dividends with cash returns totalling £238.8m (2020: £30.1m) 2021 performance + 693 % Risks 1 2 3 4 5 #### We use the metrics set out below to track our nancial performance. Source: Rightmove Source: Rightmove Source: Rightmove Source: Rightmove Strategic report | Financial key performance indicators (1) Underlying operating margin is dened as the underlying operating prot as a percentage of revenue. ![]() 24 | Rightmove plc | Annual Report 2021 Revenue Revenue increased by £99.2m/48% from 2020, to £304.9m     £m 2020 £m  £m  vs 2020 £m  vs 2020 %   %  224.5  209.2 82.9 58% 7%  50.0 40.7 55.5 9.3 23%   30.4 23.4  7.0 30% 24% Total revenue 304.9 205.7 289.3 99.2 48% 5% Membership  2020   vs 2020  vs 2020 %   %          2,859 3,275     Total membership 18,969 19,197 19,809 (228) (1%) (4%)                                    (2) increased to  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Agency New Homes Other Revenue (£m) vs 2020 0 50 100 150 200 250 300 350 88.9 (2.6) 3. 19.8 304.9 205.7 10 16 74 Dec 2020 Dec 2021 Customers Other revenue ARPA No discount in 2021 ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 25 Administration costs    (3)                              Operating prot 2021 £m 2020 £m  £m  vs 2020 £m  vs 2020 %   % Revenue 304.9 205.7 289.3 99.2 48% 5%  2.4   2.4    (81.2)     7% Operating prot 226.1       74%  74%     (4)      (5)        not met. Earnings per share (EPS)         (4) )  Revenue by segment (%) Agency New Homes Other Revenue (£m) vs 2020 0 50 100 150 200 250 300 350 88.9 (2.6) 3. 19.8 304.9 205.7 10 16 74 Dec 2020 Dec 2021 Customers Other revenue ARPA No discount in 2021 Revenue (£m) vs 2019 0 50 100 150 200 250 300 350 (14.8) 7.0 23.4 304.9 289.3 Dec 2019 Dec 2021 Customer Other revenue ARPA ![]() 26 | Rightmove plc | Annual Report 2021 Taxation      £226.1m £135.1m 2021 Profit before tax Tax highlights 2020 to 2021 Income tax expense Effective tax rate 2020 £25.0m £42.6m 18.9 % 18.5 %    year end.            Taxes collected (%) VAT Employment taxes 19 81 Taxes borne (%) Corporation tax Employment taxes Business rates Stamp duty and other 10 87 1 2 Balance sheet Summary consolidated statement of nancial position 2021 £m 2020 £m  £m  12.0    21.1    2.2 2.8   23.1 23.5 (0.4) Contract assets 0.1 0.3 (0.2)  1.1    48.0  (48.7)  (22.8)  (3.9) Contract liabilities (2.6)   Lease liabilities (11.0)    – (0.9) 0.9  (0.6)  3.0 Net assets 70.5                      as in 2020. Cash ow and liquidity     (7)     Financial review continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 27        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     ![]() 28 | Rightmove plc | Annual Report 2021              Three lines of defence model                                                    Governance framework     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              Principal risks and uncertainties Rightmove’s three lines of defence model Third Line of Defence • Internal Audit providing independent assurance of rst and second line of defence Second Line of Defence • Corporate Risk Management Framework – including Risk Register and Board governance • Compliance function – oversight, advising and monitoring the First Line of Defence First Line of Defence • Robust processes and controls • Owned and managed by business operational managers responsible for each area • Financial controls Senior Management Team Board & Audit Committee ![]() 30 | Rightmove plc | Annual Report 2021 Key risk and description Impact Changes in the year Monitoring and mitigation Change from prior year 1 Macroeconomic environment     macroeconomic     transaction levels.   may lead to a reduction or        revenues.   may also lead to a      In addition, a contraction in   could lead to a reduction in                       (2)         indicators and                   2 Competitive environment               audience, advertisers or demand for additional        (3)   (3)  2020 (87.8%) (3) . • Communication of  advertisers. • Continued investment in our account   businesses more       our audiences. Principal risks and uncertainties continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 31 Key risk and description Impact Changes in the year Monitoring and mitigation Change from prior year 3 New or disruptive technologies and changing consumer behaviours       customer business     and services to its        and demand for additional          turnaround times.            business models.   culture of innovation.          communities to stay  innovations. 4 Cyber security and IT systems                    systems, could result in   consumer and customer                several security controls to                          security systems.      ![]() 32 | Rightmove plc | Annual Report 2021 Key risk and description Impact Changes in the year Monitoring and mitigation Change from prior year 5 Securing and retaining the right talent Our continued success is  to attract, recruit, retain                          Teams.             In addition to many team            of future leaders.    incentives for senior        communication and     Principal risks and uncertainties continued Small increase in risk Risk unchanged      ®  ®     ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 33     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Going concern and viability statement ![]() 34 | Rightmove plc | Annual Report 2021                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      relations team.          Our Investor Relations team     Board decisions                     Section 172 Statement – Working with our stakeholders ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 35 Customers    data tools. Strategy Engagement              tools and services, account    Board decisions                 Consumers    Strategy Engagement             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       ![]() 36 | Rightmove plc | Annual Report 2021 Employees     Strategy Engagement          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   Suppliers      Strategy Engagement          Board decisions        Working with our stakeholders continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 37 Regulators and industry bodies       Strategy Engagement              direct and indirect consultation,       activities. Board decisions               ![]() 38 | Rightmove plc | Annual Report 2021 Sustainability Report Our commitment Rightmove is committed to being a responsible, sustainable business, operated for the benet of our stakeholders.            Reporting framework           Social progress A sustainable future Our employees   Headline: 89% Great place to work Supporting communities   Headline: 42 food banks funded via employee nominations for our Festive Food Bank Fund Protecting the environment    Headline: Targets set to achieve Net Zero in direct operations by 2030 Strong corporate governance    Headline: Two dedicated environmental risk meetings held in 2021 ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 39 Making a dierence beyond our direct operation           Net Zero business in our direct operations by 2030                  UN’s Sustainability Goals         UN Sustainable Development Goals      Sustainable Development Goal Playing our part 4 Quality Education     are celebrated. 5 Gender Equality 8 Decent Work and Economic Growth 11 Sustainable Cities and Communities       12 Responsible Consumption and Production 13 Climate Action FTSE4Good Index            ![]() 40 | Rightmove plc | Annual Report 2021 Protecting the environment         Carbon Neutral        Our employees         Making a dierence to our communities   Governance and Compliance       Corporate Responsibility Committee Report  Sustainability Accounting Standards Board (SASB)   Non-Financial Information Statement  Sustainability Report continued Protecting the environment Overview             TCFD compliance statement             recommended disclosures. TCFD disclosure index    ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 41 Sustainability Governance Board oversight and executive responsibility                      TCFD recommended disclosure Reporting and compliance Governance        Strategy                Risk Management                Metrics and Targets              Protecting the environment ![]() 42 | Rightmove plc | Annual Report 2021 Governance Structure Corporate Responsibility Committee Board Oversight Chief Financial Ocer Audit Committee Risk Committee Senior Leadership Team                 Climate strategy         Climate related risks             of annual revenue).     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    Sustainability Report continued Protecting the environment ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 43           Scenarios and key assumptions Timeframe of impact Early Policy Action < 2 degrees Early policy action Smooth transition Short term 2020-2025 Late Policy Action < 2 degrees Late policy action Disruptive transition Medium term 2025-2035 No Policy Action > 3 degrees No policy action Business as usual Longer term 2035-2050    900  30          0.39             Climate-related risk analysis and nancial impact Type of Risk Specic Risk Early Policy Action < 2 degrees Early policy action Smooth transition 2020-2025 Late Policy Action < 2 degrees Late policy action Disruptive transition 2025-2035 No Policy Action > 3 degrees No policy action Business as usual 2035-2050 Transition Risks    additional environmental information  Physical Risks   Opportunities Increased direct 3rd   Climate-related risk analysis and nancial impact Magnitude of Financial Impact Description     Protecting the environment ![]() 44 | Rightmove plc | Annual Report 2021 Primary climate-related risks   Transitional risks               Physical risks   result in:       Opportunity      Type of Risk Specic Risk Transition Risks           Physical Risks             Opportunities       Sustainability Report continued Protecting the environment ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 45 Aggregated risks      Changing consumer behaviour                 scenario. New Homes regulation               Climate-related opportunities  cumulative and material over time and include:                                 Climate risk management                  Protecting the environment ![]() 46 | Rightmove plc | Annual Report 2021 Sustainability Report continued Environmental targets and metrics Goals and performance 2020/21 Targets Action Achieved Carbon neutral   Achieved Scope 1    2022, 75% by  2028       Achieved Scope 2  carbon emissions by        2   2    Ahead of plan to achieve target Scope 3  carbon  data centres by            2  58.85 tCO 2   infrastructure). Ahead of plan to achieve target Reduce unnecessary travel         On track Protecting the environment 19% 2020 2021 Target by 2022 39% 25% 63.2 tCO 2 2020 2021 Target by 2023 56.9 tCO 2 27.8 tCO 2 58.9 tCO 2 2020 2021 Target by 2023 53.0 tCO 2 50.7 tCO 2 ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 47 2020/21 Targets Action Achieved    3 years        Ahead of plan to achieve target   50% by 2022        Ahead of plan to achieve target      Carbon neutral business         2    2     Science-based targets          559 tCO 2     Energy and Greenhouse Gas Report             Protecting the environment 1,523m3 2020 2021 Target by 2023 1,370m3 1,016m3 2020 2021 Target by 2022 44% 50%50% ![]() 48 | Rightmove plc | Annual Report 2021 Environmental targets and metrics Greenhouse Gas Emissions  Scope Activity Tonnes CO2e (market based) 2020 (1) 2021    171.33  (2)   27.83   0 14.98 Total CO 2 e 277.68 214.14 Tonnes of CO 2  (3) 0.50 0.37 Tonnes of CO 2  (4)  0.70  (5)   1,253,812   (7)  228.42 222.6  58.85 50.65   82.30 71.49 Total CO 2 e (with additional Scope 3) 647.25 558.88  e).           Scope 1 & 2 Emissions Intensity (Tonnes of CO 2 e per employee) Total Electricity Consumed (Scope 2 & 3) MwH 20212018 2019 20202017 2016 20212018 2019 20202017 2016 0.0 0.5 1.0 1.5 2.0 0 500 1000 1500 2000     Energy eciency               Emissions intensity metric     Sustainability Report continued Protecting the environment ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 49   Renewable energy             Climate action plan and net zero targets            Breakdown by Element (%) Company car travel Electricity generation Grey Fleet Supply chain Data centres Other Breakdown by Scope (%) Scope 1 Scope 2 Scope 3 30 5 65 30 5 65 30 5 65 13 30 5 9 40 3 Breakdown by Element (%) Company car travel Electricity generation Grey Fleet Supply chain Data centres Other Breakdown by Scope (%) Scope 1 Scope 2 Scope 3 30 5 65 30 5 65 30 5 65 13 30 5 9 40 3    Outsourced services other\* Outsourced services supply chain Company car travel Grey Fleet Electricity generation(5) Outsourced services - data centres Suppliers Data Centres Other\* Scope 3 Supply Chain Emissions (%) 29 20 51           Protecting the environment ![]() 50 | Rightmove plc | Annual Report 2021 Long-term targets to achieve Net Zero   Emissions Action Scope 1 Company Car travel      Scope 2 Oce electricity – transfer to renewables     ESOS stage 3 review  Scope 3 Outsourced Data Centres     Scope 3 Commuting and homeworking     Marketing and Information Services             Sustainability Report continued Protecting the environment ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 51 Our employees Our Social Goals  2021 Targets Action Achieved Progress towards an employee ethnic mix in proportion to UK ethnicity    On track Reduce the gender pay gap year-on-year until parity is reached     More to do All employees to receive mental health support and training by 2021    Achieved Employee engagement: 90% or more of employees agree that Rightmove is a great place to work  remuneration.   On track Be a Living Wage Employer     Achieved Support and encourage STEM initiatives   Achieved Support communities and individuals through increased charitable giving and matched funding     Achieved ![]() 52 | Rightmove plc | Annual Report 2021              Ethnicity mix and remuneration            Culture and values    Living Wage          Diversity, inclusion and equal opportunities           Sustainability Report continued Our employees Enjoy the journey. Be part of it Do the right thing for consumers and customers Be curious and go out of your way to understand Share honestly, early and often Make complex things as simple as possible Drive improvement: We can always be better Take responsibility and make things that matter happen Dare to do, be bold. Don’t be afraid of mistakes you can learn from Build great teams because Rightmove is people Be approachable and appreciate what others do ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 53          Employees with disabilities     Gender diversity                 Directors Male (50%) Female (50%) 4 4 Male (60%) Female (40%) Hampton-Alexander (1) 27 18 Male (60%) Female (40%) Senior Management (2) 17 26 Male (50%) Female (50%) All Rightmove Employees 310 304     Gender pay          White Mixed/multiple ethnic groups Asian/Asian British Black/African/ Caribbean/ Black British Other ethnic group    2.2% 7.5% 3.3%    5.5%  4.2%     84.3% 4.8% 7.2% 0.0%   77.2%    0.0%   3.5% 7.0% 7.0% 3.5%   8.4%  2.4%   Our employees ![]() 54 | Rightmove plc | Annual Report 2021    Recruitment and retention             Graduate programme    Development and training                        and team leaders.                     Dierence between male and female pay 2021 2020 Mean Median     23.8% 33.5% 20.4%   (2) 43.9% 0.0%   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    Sustainability Report continued Our employees ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 55                    Summary of training provided in 2021 Value  25      5,499    £742 Employee survey                      Employee benets   Pensions    Employee share schemes     • Sharesave:      recent years. • SIP     Hybrid working policy              Our employees ![]() 56 | Rightmove plc | Annual Report 2021      customer service and sales teams to listen to customer calls                     Well-being and mental health       Health & Safety               Wider workforce engagement        Sustainability Report continued Our employees ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 57                  Happy in your home    Charity Purpose Rightmove’s contribution CALM is a national         can     Harry’s Rainbow is a      due to Covid restrictions.    and send over 200   The Trussell Trust                  Increasing opportunity, equality and inclusion in education – STEM (Science, Technology, Engineering and Mathematics)             Generating Genius              Making a dierence to our communities ![]() 58 | Rightmove plc | Annual Report 2021 Protecting customer and consumer data                              2021 Targets Action Achieved Be tax transparent    Achieved Zero reportable data protection incidents     On track Zero tolerance of bribery and corruption, modern slavery or human rights breaches     Achieved Trusted Marketplace    service or innovation is tested to ensure it delivers a valuable   Tax transparency      Our platform security                  Governance and Compliance Sustainability Report continued   Our Governance and Compliance Goals   ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 59 Human rights          Modern Slavery    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   Governance and Compliance ![]() 60 | Rightmove plc | Annual Report 2021 Corporate Responsibility Committee Report Overview        Progress in 2021        Focus for 2022  and Net Zero commitments      Sustainability Report continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 61 Sustainability Accounting Standards Board (SASB) disclosure index   Area Recommended disclosure Location Environmental footprint of hardware infrastructure           Data Privacy, Advertising Standards and Freedom of Expression               None Data Security    Employee Recruitment, inclusion and performance      Non-Financial Information Statement   Reporting Requirement Policies Relevant Information Environmental matters  on environmental issues    emissions data Employees        Human rights     Social matters   Anti-bribery and corruption     Business model  Principal Risks  Non-nancial key performance indicators  ![]() 62 | Rightmove plc | Annual Report 2021 Governance | Corporate governance report Board priorities In 2021, the Board has focused on ensuring a smooth return to business as usual, following the disruption of 2020, investing in our core business and in two key strategic workstreams aimed at improving and increasingly digitising tenants' rental journeys and providing home buyers with an eective digital journey towards selecting a mortgage. A key priority was the competitive tender for the new external auditor, overseen by the Audit Committee, and the recommendation to appoint EY LLP in place of KPMG LLP, which the Board has agreed. The Board has continued to enhance its oversight of environmental risks, employee welfare and governance. The Board also updated the matters reserved for its decision. Board membership There have been no changes to Board membership during 2021 and we continue to have a strong and balanced Board with appropriate skills, knowledge, experience and diversity. Board Evaluation Independent Audit Limited facilitated our external Board evaluation during the year. The review included briengs with the Board Chair and Company Secretary, the completion of a detailed questionnaire by each Board member and presentation of the results by Independent Audit to the whole Board. The Board discussed the results and formulated an action plan, which is summarised in the Nomination Committee Report. Statement of compliance The Code sets out the principles and provisions relating to good governance of UK listed companies and can be found on the FRC’s website at frc.org.uk. Our Corporate Governance Report includes • A statement of compliance with the Code • Rightmove’s corporate governance structure • Our Directors’ biographies • Key Board and committee activities and reports from the • Audit Committee • Nomination Committee • Remuneration Committee; and • Directors Corporate Responsibility Committee The Board understands that climate change is an area of increasing focus for shareholders and to ensure continued emphasis on the environmental, as well as the social and governance aspects of our business, the Board has established a Corporate Responsibility Committee, which comprises the full Board. Our rst Corporate Responsibility Report is included within the Sustainability Report. One of the main areas of focus for this Committee and the newly created Risk Committee has been the evaluation of environmental risks and our reporting under the Taskforce for Climate Related Financial Disclosures (TCFD). Further details of these activities can be found in the Sustainability Report. Company Purpose, Values, Strategy and Culture Rightmove’s purpose is to make home moving easier in the UK. This is achieved through the delivery of our strategy, supported by an eective system of governance and risk management throughout the Group and our culture and values. We are fortunate to have an open and supportive culture at Rightmove, and the Board recognises the value of this strong company culture to the success of the business and is satised that our culture is aligned with the Company’s purpose, values and strategy. I am pleased to introduce our Corporate Governance Report, which explains how the Company has applied the provisions of the UK Corporate Governance Code 2018 (the Code) during the year, through a framework of governance policies, procedures and initiatives. Andrew Fisher Chair ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 63 1. Board Leadership and Company Purpose Location in Annual Report A. Promoting the long term sustainable success of the Company Corporate Governance Report – Board Leadership – Board activities B. Purpose, Values, strategy and culture Chair’s Governance Letter and Strategic Report (Business Model) C. Governance framework and controls Corporate Governance Report – Board Leadership D. Engagement with stakeholders Strategic Report – S172 statement: working with our stakeholders E. Oversight of employment policies and practices Sustainability report 2. Division of Responsibilities F. Role of Chair and Board Information Corporate Governance Report – Board Leadership G. Division of Responsibilities Corporate Governance Report – Division of Responsibilities H. External Commitments and Conicts of Interest Corporate Governance Report – Board Leadership I. Role of Company Secretary Corporate Governance Report – Board Leadership 3. Composition, succession, and evaluation J. Appointments to the Board and succession Planning Nomination Committee Report K. Board composition and length of tenure Board Leadership and Board Composition L. Board Evaluation Board Composition and Evaluation; Nomination Committee Report 4. Audit, risk and internal control M. Financial reporting – integrity of nancial and narrative statements Audit Committee Report N. Fair, balanced and understandable assessment Audit Committee Report and Directors' Report O. Risk management and internal control framework Audit Committee Report and Strategic Risk Management Report 5. Remuneration P. Reward Structure reecting achievement and contribution to long term strategy Remuneration Committee Report Q. Remuneration Policy Remuneration Committee Report R. 2021 Remuneration Outcomes Remuneration Committee Report Corporate Governance Code Overview The schedule below provides an overview of where the application of Principles (A to R) and associated provisions of the Code have been reported in the Annual Report. The Board is committed to good governance and we are pleased to conrm that for the year under review, the Company has complied with the principles and provisions of the Code. Details of our approach to corporate governance and compliance with the Code is summarised at the beginning of this report and throughout the Governance section of the Annual Report. Directors' duties An explanation of how Directors have engaged with and have taken into consideration the requirements of Rightmove’s key stakeholders, in accordance with S172 of the Act, can be found in the S172 Working with our Stakeholders section of the Strategic Report. Andrew Fisher Chair ![]() 64 | Rightmove plc | Annual Report 2021 Shareholders of Rightmove plc The Board (primarily through the Chief Executive Ocer and the Chief Financial Ocer, supported by the Chair and the Senior Independent Director) actively engaged with the Company’s investors during the year. Details of the Board’s engagement with shareholders can be found on the following pages and in the Section 172 Statement – Working with our Stakeholders in the Strategic Report.. The Board of Rightmove plc (8 Directors) The Board is collectively responsible for promoting the long-term success of the Group for the benet of the Company’s stakeholders. It agrees the overall strategy, direction and culture of the Group and has the powers and duties set out in the Companies Act 2006 (the Act) and the Company’s Articles of Association. The Board delegates certain matters to the Board committees and delegates the day-to-day operation of the business to the Executive Directors. Chair The Chair is responsible for leadership and governance of the Board, planning the Board’s agenda and ensuring that Directors receive sucient, relevant, timely and clear information and that all subjects requiring discussion are allocated sucient time to support eective decision making. He also ensures that the Board remains eective by encouraging constructive relationships between the Executive and Non-Executive Directors and ensures ongoing and eective communication between the Board and its key stakeholders. 1 Board Leadership | Board governance structure The Company Secretary The Board and its Committees are supported by the Company Secretary, who is responsible for advising the Board and assisting the Chair in all corporate governance matters. Senior Leadership Team The Senior Leadership Team (SLT) supports the Chief Executive Ocer and Chief Financial Ocer in the development and delivery of Rightmove’s business strategy, and meets regularly to discuss operational and nancial performance. The Board also receives presentations from the SLT to provide a deeper understanding of the business, our customers and products, and the market in which Rightmove operates. Risk Committee To enhance our governance and risk management framework, a Risk Committee was established in 2021, comprising the Chief Financial Ocer, and members of the SLT, with the objective to continually assess emerging, existing and changing risks, monitor the eectiveness of corresponding controls and report to the Audit Committee. Executive Directors (2) Responsible for: • the day-to-day management of the Group, and its operations and results; and • implementation of the Group strategy. Led by the Chief Executive Ocer and supported by the Chief Financial Ocer and their Senior Leadership Team. The roles of Chair and Chief Executive Ocer are separate with clear written guidelines on the division of responsibilities. Non-Executive Directors (5) Responsible for: • constructively challenging the Executive Directors; and • monitoring the delivery of the strategy within the risk and control framework set by the Board. One of the Non-Executive Directors is appointed as the Senior Independent Director, who is responsible for: • acting in an advisory capacity to the Chair; • deputising for the Chair if required; • serving as an intermediary for other Directors when necessary; • being available to shareholders if they have concerns which they have not been able to resolve through the normal channels; and • conducting an annual review of the performance of the Chair. Matters reserved to the Board • Rightmove’s business strategy and annual business plan • capital management and dividend policies • the system of internal control and risk management • Environmental, Social and Governance policies • the annual and half-year results and shareholder communications • major acquisitions and disposals • appointment and removal of ocers of the Company Details of Board activities during the year can be found later in this report. The Board Committees (composed of Non-Executive Directors (NEDs) only, with the exception of the Corporate Responsibility Committee which is composed of all Directors) The Board delegates certain matters of business to its four Committees. The Committees review and report back to the Board on the matters within each of their remits. Only Committee members are entitled to attend Committee meetings. Other Board members may attend Committee meetings by invitation only. Terms of reference for each of the Board Committees are available on the Company’s corporate website at plc.rightmove.co.uk Audit Committee (Quorum: 2 independent NEDs) Responsible for: • the oversight of accounting, nancial reporting and internal control processes; • Rightmove’s internal audit function; and • ensuring the eectiveness and quality of the work produced by the Group’s external auditor Remuneration Committee (Quorum: 2 independent NEDs) Responsible for: • making recommendations to the Board for the overall policy and framework for the remuneration of the Chair, Executive Directors and the Senior Leadership Team. Nomination Committee (Quorum:2 NEDs, majority must be independent) Responsible for: • keeping the structure, size and composition of the Board and its Committees under review; • matching the skills, knowledge and experience of Directors to Rightmove’s business strategy and requirements; and • consider succession planning and the development of a diverse pipeline for senior roles. Corporate Responsibility Committee (Quorum: 3 Directors) Responsible for: • the oversight of the Group’s ESG strategy; • monitoring progress against ESG objectives and targets; and • approving the Sustainability Report. Governance | Corporate governance report continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 65 Andrew Fisher OBE Chair Nationality British Appointment to the Board 1 January 2020 Committee membership Nomination (Chair) Current external commitments Non-Executive Director of Marks and Spencer plc Previous roles and relevant skills and experience Andrew has a background in building digital, media and entrepreneurial businesses and executing a high growth strategy. He also has experience of serving on the Boards of a number of listed companies as a non-executive director. Andrew was previously CEO and Executive Chairman of Shazam, where he was instrumental in developing and executing a growth strategy to establish one of the world’s leading mobile consumer brands. He was also European Managing Director of Infospace Inc and the founder and Managing Director of TDLI.com. Andrew was a non- executive director of Moneysupermarket. com Group plc until May 2020 and Merlin Entertainments plc until November 2019. Peter Brooks-Johnson Chief Executive Ocer Nationality British Appointment to the Board 10 January 2011 Current external commitments Non-Executive Director of Adevinta ASA Previous roles and relevant skills and experience Peter joined Rightmove in 2006 and became Chief Operating Ocer in April 2013 having been Managing Director of rightmove.co.uk since 2011 and Head of the Agency business since 2008. He was promoted to Chief Executive Ocer in May 2017. Prior to joining Rightmove, Peter was a management consultant with Accenture and the Berkeley Partnership. Peter has substantial experience and understanding of the online media and property markets, developing Rightmove’s business plan and strategy over many years, with strong leadership and stakeholder management skills. Alison Dolan Chief Financial Ocer Nationality Irish Appointment to the Board 7 September 2020 Current external commitments None Previous roles and relevant skills and experience Alison was the Chief Strategy Ocer at News UK from 2016 until May 2020, where she was at the forefront of the business’s digital transformation. Before News UK, Alison held a number of senior positions at Sky plc from 2002 – 2016, including Group Treasurer, Director of Finance and Deputy Managing Director Sky Business. Alison is an Irish national, but has lived in London since 1994. She has a Masters in Business Studies from University College Dublin. Governance | Directors and ocers ![]() 66 | Rightmove plc | Annual Report 2021 Governance | Directors and ocers continued Rakhi Goss-Custard Non-Executive Director Nationality American/British Appointment to the Board 28 July 2014 Committee membership Nomination, Remuneration Current external commitments Non-Executive Director of Kingsher plc Non-Executive Director of Schroders plc Previous roles and relevant skills and experience Rakhi has extensive knowledge of the customer and consumer experience and innovation across a wide range of digital products, desktop and mobile platforms, augmented by a varied non-executive portfolio in other customer-centric businesses and sectors. Rakhi was a non-executive director of Be Heard Group plc until August 2018 and of Intu Properties plc to May 2019, and a Director of UK Media at Amazon to June 2014. She held various other senior positions during her 12-year tenure at Amazon including Media, Entertainment, General Merchandise and Book divisions as well as advising Zappos. Prior to Amazon, Rakhi held strategy roles at TomTom and Oliver Wyman. Jacqueline de Rojas CBE Senior Independent Non-Executive Director Nationality British Appointment to the Board 30 December 2016 Committee membership Audit, Nomination, Remuneration Current external commitments President of techUK Non-Executive Director of Costain Group plc Non-Executive Director of FDM Group (Holdings) plc Previous roles and relevant skills and experience Jacqueline is a recognised technology leader with many years’ experience in the software, technology and digital sectors, working in enterprise and sales-focused businesses. She has extensive knowledge and skills in promoting technology-based solutions and cyber security and is a passionate advocate for diversity and inclusion. Jacqueline has been employed throughout her career by global blue-chip software companies and has held senior positions at Citrix, CA Technologies, McAfee and Ascential Software. She was a non-executive director of Home Retail Group from 2012 to 2016, and of AO World plc from 2017 to 2019. Jacqueline is the co-chair at the Institute of Coding, President of Digital Leaders Technology Group and advisor to the board of Accelerate-her, which addresses the under-representation of women in technology. She is a passionate advocate for diversity and inclusion in the workplace with a particular focus on getting women and girls into digital careers and studying STEM subjects. Jacqueline is especially delighted to lend her support to the Girlguiding Association for technology transformation. She was awarded a CBE for services to international trade in the technology industry in 2018. Andrew Findlay Non-Executive Director Nationality British Appointment to the Board 1 June 2017 Committee membership Audit (Chair), Nomination Current external commitments Chief Financial Ocer of M Group Services Limited Previous roles and relevant skills and experience Andrew is a chartered accountant with a wealth of nancial expertise, proven commercial experience and strong consumer-centric background. He has a deep knowledge of nancial reporting and risk management, technological solutions and consumer platforms. Andrew is currently the Chief Financial Ocer of M Group Services Limited, a leading essential infrastructure services provider in the UK and Ireland. He was previously the Chief Financial Ocer of easyJet plc from 2015 until February 2021. Before joining easyJet, Andrew was Chief Financial Ocer of Halfords plc and prior to that Director of Finance, Tax and Treasury at Marks and Spencer Group plc. He formerly held senior nance roles with the London Stock Exchange and Cable & Wireless, in the UK and US. Andrew qualied as a chartered accountant with Coopers & Lybrand. ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 67 Sandra Odell Company Secretary Appointment as ocer of the Board 1 November 2016 Current external commitments None Previous roles and relevant experience Sandra is a Fellow of the Chartered Governance Institute. Prior to joining Rightmove, Sandra was Company Secretary of Quintain, the London property developer, and before that held various senior company secretarial positions in listed nancial services companies. Lorna Tilbian Non-Executive Director Nationality British Appointment to the Board 1 February 2018 Committee membership Remuneration (Chair), Nomination Current external commitments Non-Executive Director of Proven VCT plc Non-Executive Director of Finsbury Growth & Income Trust PLC Previous roles and relevant skills and experience Lorna has extensive experience as a media analyst and investment adviser to the media sector with strong nancial analysis and leadership skills. She was Executive Director and Head of the Media Sector in Corporate Broking & Advisory at Numis Corporation PLC until September 2017. She was a founder of Numis when it launched in 2001 having worked at Sheppards, as a director of SG Warburg and executive director of WestLB Panmure. Lorna sits on the Advisory Panel of TechNation’s Future Fifty programme and has served as a Cabinet Ambassador (for Creative Britain) for the Department of Culture, Media & Sport. She has also served as a non-executive director of M&C Saatchi PLC, Euromoney Institutional Investor PLC and Jupiter UK Growth plc. Amit Tiwari Non-Executive Director Nationality American Appointment to the Board 1 June 2019 Committee membership Audit, Nomination Current external commitments Managing Director of Vitruvian Partners LLP Previous roles and relevant skills and experience Amit has a strong understanding of the online classied sector and innovation across a range of online marketplace businesses, with extensive knowledge of nance and capital markets. He was Head of International Developed Equities at Harvard Management Company and prior to that Head of Equities at the Lakshmi Mittal Family Oce. He previously held senior investment management roles at Morgan Stanley & Co International plc, Zi Brothers Investments and KKR & Co. Amit has an MBA with Distinction from Harvard Business School and a Bachelor’s degree in Economics with Honours from Harvard College. Board composition Executive Directors Chair Non-Executive Directors 5 1 2 Board skills & experience Finance & governance Voice of the customer/ property market Technology & innovation Voice of the consumer & retail Digital marketing & online media Corporate transactions 7 4 5 5 2 4 0–3 years Board tenure 3–6 years 6–9 years 9+ years Board gender Female Male 44 Board age 60+ 50/ 59 40/ 49 Non-ExecutiveExecutive No. of Directors Age range 0 1 2 3 4 3 1 3 1 We recognise the benets of diversity on our Board to ensure eective engagement with Rightmove’s key stakeholders and a variety of thinking in relation to our business strategy. The age, gender, tenure and skills of Board members as at 1 January 2022 are set out above. Board Composition and Diversity ![]() 68 | Rightmove plc | Annual Report 2021 Board activities At each scheduled meeting the Board considers the minutes and actions raised at previous meetings, updates from the CEO and CFO, and reports on each Committee’s activities from the respective Chairs. The key responsibilities and actions carried out by the Board during the year are set out below: Strategy Performance People Shareholders Governance Regular reports and activities (1) Analysis and implementation of strategic initiatives Monthly management report Employee update and feedback Investor relations update and share register reports Governance and regulatory updates February Product development Roadmap Trac Update Full-year results and Final Dividend Group employee satisfaction scores ’Have your say’ survey results Remuneration Committee update on shareholder feedback Risk Register review ESG Report review Gender Pay Report review Tax Strategy review Modern Slavery Act Statement Payment Practices Report May Mortgages update AGM – analysis of shareholder voting and feedback June O-site away day: Estate Agency and New Homes Update New Strategic Models (2) Customer presentation Trends in the online classied sector Trends in the property market Analyst view – how investors value Rightmove Approval of Ransomware Policy Revised Schedule of matters reserved for Board approval July Half-year results and Interim Dividend Risk Register review September Strategy update: Tenant Services and Mortgages Employee engagement with sales and customer services teams Update on Group succession plan, gender pay and diversity from the Nomination Committee Annual approval of SIP and Sharesave awards ESG Strategy update and performance review November 2022 three-year business plan approved Phase 1 of new ERP system reviewed and approved Employee engagement with new employees, and managers giving feedback on performance development training Recommendation on appointment of EY as external auditor Policy review Internal controls and risk management update from the Audit Committee Insurance review and renewal December Cyber security update Breadth Business update Update from the Remuneration Committee on 2022 performance targets Discussion of employee engagement format and responsibilities for 2022 Board and Committee evaluation feedback and actions agreed Legal and Corporate Governance update Report from Audit Committee on review of 2021 Sustainability Report Policy approval (1) Frequency coincides with Board meetings, unless otherwise indicated. (2) New strategic models include new business initiatives or products such as the Market Intelligence Centre, Online Conditional Auctions and consumer services, in addition to Tenant Services and Mortgage Services. Governance | Corporate governance report continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 69 There are seven scheduled Board meetings each year including one meeting or away day devoted to consideration of the Group’s strategy. In addition to scheduled Board meetings, there was online and informal communication between the Directors and management. Directors receive Board papers in the week before meetings to allow sucient time for review. At each Board meeting, the Chair holds a brief informal ‘executive session’ with the Non- Executive Directors to consider key questions and feedback for management. The Company Secretary records Directors’ questions and challenges and agreed actions in the Board minutes. In addition to formal Board papers, Directors receive an update from the CEO and CFO at each Board meeting, in addition to a more detailed monthly management report on the operational and nancial performance of the business, setting out actual and forecast nancial performance against approved plans and other key performance indicators. The Board has access to broker reports, research analyst reports and market reviews relating to Rightmove. Shareholder engagement The Board welcomes opportunities to engage with current and potential shareholders and answer any questions about the performance and activities of the Group. Within the regulatory framework, the Executive Directors have conducted regular and open dialogue with shareholders through ongoing meetings with major investors and analysts to discuss strategy and operational and nancial performance, environmental, social and governance matters. The Chair, Committee chairs and Senior Independent Director were also available to answer shareholder questions, typically received via our Company Secretary and investor relations team. The Board is kept informed of the views and opinions of shareholders and analysts. Directors receive an update at each Board meeting from the Chief Executive Ocer and the Chief Financial Ocer on their interaction with investors, as well as share register analyses and market reports from the Company’s brokers, UBS and Numis. Shareholders are also kept up to date with the Group’s activities through the Annual Report, full and half year results presentations. The investor relations section of the Company’s website, at plc.rightmove.co.uk provides details of all the Directors, the nancial calendar, latest news including nancial results, investor presentations, corporate governance, and Stock Exchange announcements. Annual General Meeting The AGM provides an opportunity for shareholders to vote on aspects of the Company’s business, meet the Directors and ask them questions. The next AGM is scheduled to be held on 6 May 2022 at the oces of UBS Limited at 5 Broadgate, London, EC2M 2QS. As in prior years, shareholders will be able to raise questions in advance of the meeting through companysecretary@rightmove.co.uk. Each Committee Chair will be available at the AGM to answer any shareholder questions on their respective Committee’s activities. The Company will arrange for the Annual Report and related papers to be available on the Company’s corporate website at plc.rightmove.co.uk or, if requested, posted to shareholders at least 20 working days before the AGM. The Company proactively encourages shareholders to vote at general meetings by providing electronic voting for shareholders who wish to vote online and personalised proxy cards to shareholders electing to receive them, ensuring that all votes are clearly identiable. The Company takes votes at general meetings on a poll, the results of which are reported after each resolution and published on the Company’s website. All resolutions at the Company’s 2021 AGM were passed comfortably, and no resolutions received more than 20% of votes against the Board’s recommendations. Stakeholder engagement Maintaining regular contact with our key stakeholders remains an important part of the Board’s activities and is fundamental to good governance. Under the Code, the Board is required to report on how it has considered the interests of its wider stakeholders in accordance with section 172 of the Companies Act 2006. This report can be found in the Section 172 Statement – Working with our Stakeholders, in the Strategic Report. Employee engagement In response to the Code requirement, the Board has elected to adopt a bespoke approach to employee engagement, with all Non-Executive Directors engaging directly and regularly with the Company’s workforce. During 2021, remote working once again meant that Non-Executive Directors were unable to hold face to face meetings in the rst half of the year but did receive employee feedback during Board meetings. In the latter part of the year our programme of engagement continued and details can be found in the Sustainability Report and the Remuneration Committee Report. Our Senior Independent Director will work with the Director of People and Development and Company Secretary during 2022 to further enhance the programme of employee engagement activity. Rightmove’s culture and values The Board fully supports and reects Rightmove’s open, supportive and innovative culture, described in more detail in the Sustainability Report. Executive Directors lead by example in maintaining Rightmove’s open, collaborative culture with a fully open plan oce environment, and during 2021 employees had access to regular fortnightly, and latterly, monthly ‘Town Hall’ webinars to provide updates and answer employees’ questions. All Directors have access to Group employees, through a variety of channels, detailed in the Sustainability Report. ![]() 70 | Rightmove plc | Annual Report 2021 Governance | Corporate governance report continued The Board assesses and monitors culture through the results of the bi-annual ‘Have Your Say’ employee survey, with a percentage of the Executive Directors’ variable bonus directly dependent on the survey results – more information on this can be found in the Directors’ Remuneration Report. Employee concerns (Whistleblowing) During the year, the Company reviewed and approved its Whistleblowing policy. The Board ensures that there are arrangements in place for individuals to raise concerns. An independent whistleblowing service continues to be available and communicated to all employees. The service enables individuals to report concerns anonymously and in condence and can be accessed by telephone, email or via the website. During 2021 no concerns were raised using this facility and no other issues were raised that have been treated as whistleblowing. Further information can be found in the Audit Committee and Sustainability Reports. Conicts of interest Under the Companies Act 2006, the Directors have a statutory duty to avoid situations in which they have, or may have, a direct or indirect conict of interest with the Company. The Directors must also declare the nature and extent of any interest in any existing or potential conicting interest. The Company’s Articles of Association does have provisions for managing and authorising potential conicts of interest. The Board approved a revised Conicts of Interest Policy in 2021 and continues to observe the policy and review the Register of Directors’ Interests at least annually. To safeguard their independence, a Director is not entitled to vote on any matter in which they may be conicted or have a personal interest. If necessary, Directors are required to absent themselves from a meeting of the Board while such matters are being discussed and if there is any doubt, the Chair of the Board is responsible for determining whether a conict of interest exists. No such conicts of interest arose in 2021. 2 Division of responsibilities The roles of Chair and Chief Executive Ocer are separate with clear written guidelines on the division of responsibilities. A summary of the key responsibilities of the Board members is included in the governance structure table at the beginning of this Report. Board independence The Board reviews each Non-Executive Director’s independence on an annual basis and considers that all Non- Executive Directors are fully independent of management. The review takes into account factors such as Directors’ external interests and appointments, and contribution to debate during meetings to determine whether they demonstrate independent judgment and whether there are any other relationships or circumstances which are likely to aect, or could appear to aect, a Director’s judgment. The Board considers that there is an appropriate balance between Executive and Non-Executive Directors. Directors’ external appointments In line with the Code, Directors’ additional external appointments are approved by the Nomination Committee or Board. Our Chair, Andrew Fisher, is also a Non-Executive Director of one other publicly listed company. The Chief Executive holds one other non-executive directorship of a listed company, as permitted under the Code. The Board recognises that non-executive directorships can broaden the knowledge and experience of the Executive Directors, which may benet the Company. Board and Committee membership and attendance The membership of the Committees of the Board and attendance at Board and Committee meetings for the year under review are set out in the table below: Board (1) Remuneration Audit Nomination Corporate Responsibility (2) Total meetings 7 6 5 2 1 Andrew Fisher 7 – – 2 1 Peter Brooks-Johnson 7 – – – 1 Alison Dolan 7 – – – 1 Jacqueline de Rojas 7 6 5 2 1 Rakhi Goss-Custard 7 6 – 2 1 Andrew Findlay 7 – 5 2 1 Lorna Tilbian 7 6 – 2 1 Amit Tiwari 7 – 5 2 1 (1) There were seven scheduled Board meetings in 2021. The Board away day (two days), is included in these numbers. (2) The Corporate Responsibility Committee was established as a Board Committee in June 2021. All of the Board have attended all Board and relevant Committee meetings during the year and have shown continued commitment to their roles. In addition to the above meetings, the Chair conducts meetings with the Non-Executive Directors without the Executive Directors being present. Jacqueline de Rojas, the Senior Independent Director, chaired a meeting of the Non-Executive Directors in December 2021, at which the performance of the Chair was also reviewed without him present. 3 Board composition and evaluation At the date of this report, the Board comprises two Executive Directors and six Non-Executive Directors, including the Chair. The Executive Directors are Peter Brooks-Johnson (Chief Executive Ocer) and Alison Dolan (Chief Financial Ocer) and the Non-Executive Directors are Andrew Fisher (Chair), ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 71 Jacqueline de Rojas (Senior Independent Director), Andrew Findlay, Rakhi Goss-Custard, Lorna Tilbian and Amit Tiwari. All Directors will retire and oer themselves for re-election at the next AGM. The Board is satised that the Directors retiring and standing for re-election are well qualied for re-appointment by virtue of their skills, experience and contribution to the Board, described in their biographies. The Executive Directors have service contracts with the Company which can be terminated on 12 months’ notice. The appointments of the Non-Executive Directors can be terminated on three months’ notice. The interests of the Directors in the share capital of the Company as at the date of this report, the Directors’ total remuneration for the year and details of their service contracts and Letters of Appointment are set out in the Directors’ Remuneration Report. At the date of this report, the Executive Directors were deemed to have a non-benecial interest in 1,151,109 ordinary shares held by The Rightmove Employees’ Share Trust (EBT). Biographical details of all Directors at the date of this report and details of Committee membership appear earlier in this Report. The Board’s size and composition is kept under regular review by the Nomination Committee. Board changes There have been no Board changes during the year. More information on the usual selection and appointment process for new Directors, can be found in the Nomination Committee Report. Board diversity and experience Rightmove is committed to a diverse Board comprised of directors from dierent backgrounds with relevant experience, perspectives, skills and knowledge. We believe that diversity, including gender and ethnic diversity, amongst directors and employees contributes towards a high performing and eective Board and business and promotes the Company’s ongoing success. We strive to maintain the optimal balance, using a meritocratic appointment process. At 31 December 2021, 50% of both executive and non- executive Board members were female, along with the strong female representation amongst the Senior Leadership Team. We remain committed to our policy of recruiting the best people and appropriate talent for the business whilst seeking to maintain as near 50:50 gender balance on the Board as possible. We are pleased to report that as at 31 December 2021, 37% of Board members are from ethnically diverse backgrounds, exceeding the Parker Review target for FTSE100 boards, which we are committed to meeting or exceeding in future. The range of skills and experience the Board considers necessary to deliver Rightmove’s business strategy, as identied in the Board Strategy Review, includes: • nance and governance • technology and innovation • voice of the customer and property market • voice of the consumer and retail • digital marketing and online media • corporate transactions Further information can be found at the beginning of this report and in the Sustainability Report. Board evaluation The Board last completed an externally facilitated performance evaluation in 2018. Therefore, the evaluation conducted in 2021 was externally facilitated by Independent Audit and details can be found in the Nomination Committee report. The 2022 Board and Committee evaluations will be internally facilitated by questionnaire and direct feedback. Re-election to the Board Directors are appointed and may be removed in accordance with the Articles of Association of the Company and the provisions of the Act. All Directors are subject to election at the rst AGM following their appointment and in accordance with the Code, all Directors will seek re-election at the 2022 AGM. Indemnication of Directors The Articles of Association of the Company allow for a qualifying third-party indemnity provision for the purposes of S234 of the Act between the Company and its past and present Directors and ocers, which remains in force at the date of this report. The Group has also arranged directors’ and ocers’ insurance cover in respect of legal action against the Directors. Neither our indemnity nor the insurance provides cover in the event that a Director is proven to have acted dishonestly or fraudulently. The Company has a Dealing Code setting out the process and timing for dealing in shares, which is compliant with the Market Abuse Regulation. The Dealing Code applies to all Directors, who are persons discharging managerial responsibility, and other insiders. 4 Audit, risk and internal control The Board accepts responsibility for determining the nature and extent of the signicant risks it is willing to take in achieving its strategic objectives and monitors and reviews the eectiveness of the Company’s risk management and internal control systems. Further details can be found in the Audit Committee Report in the Governance section and the Risk Management section of the Strategic Report. 5 Remuneration The Annual Remuneration Report describes the policies and practices in place to ensure that the Company leadership is motivated to deliver long-term sustainable growth and the work of the Remuneration Committee can be found later in this Governance section. ![]() 72 | Rightmove plc | Annual Report 2021 Governance | Audit Committee report Dear Shareholder As Chair of the Audit Committee (the Committee), I am pleased to present the Committee’s report for the year ended 31 December 2021. In this report we aim to provide an overview of the principal activities of the Committee and an update on the key areas of review as the Committee discharged its responsibilities during the year. The Committee’s key responsibilities are set out in the Corporate Governance Report on page 64. The Committee has overseen a detailed programme of work during 2021, including agreeing the scope – and reviewing the results – of the work delivered by the PwC-outsourced internal audit function, Rightmove Assurance. This year, PwC reported on customer onboarding; third party supplier management; the purchase to payments nancial controls; GDPR, and the mobilisation of the project to select and implement a new nance system. A key focus of the Committee has been the continued enhancement of the risk and compliance framework, including the formation of a new Legal and Compliance function and a new Risk Committee, which supports the Committee. Other activities undertaken by the Committee during the year were to evaluate the reporting requirements of the new TCFD framework; to agree the scope and review of the new reporting for climate-based nancial disclosures (TCFD) and Science Based Target initiative (SBTi); to conduct a competitive tender for the provision of external audit services from 2022; to assess the Rightmove response to the BEIS consultation on audit reform; and to consider the letter received from the Financial Reporting Council in relation to its review of Rightmove’s 2020 annual report and accounts. The Committee, as part of its annual governance cycle, also reviewed the Group’s Treasury, Bribery and Whistleblowing policies, the Gifts and Hospitality Register, and the Non-Audit Services Policy. Looking forward to the next 12 months, the Committee will continue to focus on key risk areas such as cyber security and regulatory compliance, and to support the Company’s overall risk management framework. The implementation of the new nance system will also be a key priority for the Committee in 2022. Other areas of focus will include Internal Audit reviews of operational product development; cloud security; the customer experience within the Overseas business; and the implementation of the new nance system. The Committee will also monitor the transition to, and the eectiveness of, the new external auditor, EY LLP. In addition to its annual performance evaluation, the Committee carried out a review of its terms of reference in relation to the 2018 UK Corporate Governance Code. These are published on the investor relations section of the Group’s website at plc.rightmove.co.uk and are available in hard copy form from the Company Secretary. Committee’s remit The Committee is an essential part of Rightmove’s governance framework, to which the Board has delegated oversight of the accounting, nancial reporting and internal control processes, the outsourced internal audit function and the review of the eectiveness and quality of the external auditor. Committee members and auditors The Committee members are independent Non-Executive Directors and comprise: • Andrew Findlay (Chair) • Jacqueline de Rojas • Amit Tiwari The Group’s external auditor is KPMG LLP. PwC LLP provide internal audit services. 2021 Activities The Committee met ve times during 2021 and its key activities were to: • conduct a competitive tender for the provision of external audit services to the Group • assess the integrity of the Group’s half-year report and annual nancial statements, considering the application of nancial reporting and governance standards, including the use of Alternative Performance Measures • review management’s approach to any key judgmental areas of reporting and the related comments of the external auditor • conrm that the Annual Report is as a whole fair, balanced and understandable • review the eectiveness of Rightmove’s internal control processes • consider the structure and approach of the newly formed Risk and Compliance function, including reviewing the terms of reference of the Risk Committee • evaluate the reporting requirements of the new TCFD framework and agreeing the scope and review of the new reporting for climate-based nancial disclosures (TCFD) • agree the scope and terms of reference for the reviews undertaken by Internal Audit • assess the progress, and or conclusions, and recommendations of the Internal Audit reports on customer vetting and onboarding, purchase to payables nancial controls, and GDPR processes • evaluate the eectiveness of the external auditor and the Internal Audit function, and • review and challenge the Internal Audit plan for 2022. 2022 Priorities • continued focus on key risk areas such as compliance, cyber and data security • review of product development, cloud security, FCA compliance, the implementation of a new nance ERP system and transition to the new auditor. Andrew Findlay Chair of the Audit Committee Audit Committee Report Summary ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 73 I will be available at the AGM to answer any questions about the work of the Committee. Andrew Findlay Chair of the Audit Committee Audit Committee membership and meetings All the members of the Audit Committee are Independent Non-Executive Directors in accordance with provision 24 of the UK Corporate Governance Code (the Code). The Board has determined that Andrew Findlay, as the Committee Chair, has the recent and relevant nancial experience required by the Code, given his several executive nance roles, including his current role as Chief Finance Ocer at M Group Services. Andrew is also a chartered accountant with the Institute of Chartered Accountants in England and Wales. In line with the Code, the Committee possesses experience relevant to the business, through the digital, consumer and nancial experience of Andrew Findlay, the technology background of Jacqueline de Rojas and the deep nancial and capital markets expertise of Amit Tiwari. Biographies of the members of the Committee are set out in the Corporate Governance Report. The Committee met ve times during 2021 and attendance of the members is shown in the Corporate Governance Report. In order to maintain eective communication between all relevant parties, the Committee invited the Chief Financial Ocer, together with appropriate members of the management team, and the external and internal auditors, to meetings as necessary. The Committee periodically set time aside to seek the views of the external auditor, without the presence of management. The external auditor had direct access to the Chair to raise any concerns outside formal Committee meetings. The Committee also met separately with the internal auditor during the year, and in between meetings the Chair maintained contact with the Chief Financial Ocer, external audit partner and other members of the management team. After each meeting, the Chair reported to the Board on the main issues discussed by the Committee and minutes of the Committee meetings were circulated to the Board once approved. Audit Committee eectiveness The eectiveness of the operation of the Committee was reviewed in December 2021 as part of the internal Board and Committee evaluation process. The feedback on the Committee was unanimously positive and armed that the Committee is eective and provides appropriate challenge. Financial reporting The Committee is responsible for reviewing the appropriateness of the Group’s half-year report and annual nancial statements. The Committee has considered, among other things, the accounting policies and practices adopted by the Group; the correct application of reporting standards and compliance with broader governance requirements including the new reporting for climate-based nancial disclosures (TCFD); the use of Alternative Performance Measures; the approach taken by management to any key judgmental areas of reporting; the comments of the external auditor on management’s chosen approach; and the information, underlying assumptions and stress-test analysis presented in support of the Going Concern status and Viability Statement. Signicant accounting matters The key signicant accounting matter in the context of the 2021 Group nancial statements is revenue recognition. The Committee considers this area to be signicant given the volume of transactions and the fact that revenue is the most material gure in the income statement. The Committee discussed revenue recognition in detail, including the underlying policies, processes and controls, to ensure that the approach taken to accounting and disclosure was appropriate. In relation to the parent Company nancial statements, the key signicant accounting matter is the recoverability of the investment by the parent Company in its subsidiary Rightmove Group Limited, given its materiality in the context of the total assets of the parent Company. ![]() 74 | Rightmove plc | Annual Report 2021 Key accounting matters Committee review Revenue recognition As more fully described in note 1 to the accounts, the majority of the Group’s revenue is derived from membership subscriptions for core listing fees and advertising products on Rightmove’s platforms. Customers are able to tailor their packages. The Group recognises this revenue over the period of the contract or the point at which advertising products are used. Revenue is a prime area of audit focus, in particular the timing of recognition in relation to the billing of subscription fees, additional products and the accounting for any material membership oers to customers. During the year, management performed data analytics procedures on the amounts billed to the two largest customer groups (Agency and New Homes). This included investigating anomalies such as billing gaps and single bills raised and reporting to the Committee in this regard. The Committee discussed any anomalies with management in relation to the data analytics work performed. The Committee was satised with the explanations provided and conclusions reached. As part of the nancial statement audit, KPMG performs data analytics work, using computer-assisted audit techniques to identify any unexpected or unusual revenue postings, considering in particular whether the opposite side of the journal entry was as expected, based on the characteristics of the journal. The results of this work were reported to the Committee. Investment by the Company Rightmove plc in Rightmove Group Limited (RMGL) The investment by the Company in RMGL is carried at cost, adjusted for subsequent additions to the investment. Cost was initially assessed at 28 January 2008 when Rightmove plc became the parent company of RMGL. Share-based payments awards to RMGL employees are accounted for as a deemed capital contribution by Rightmove plc to RMGL, with the value of the share-based payments charge for those awards increasing the value of the investment. Further details are provided in Note 15 to the nancial statements. The investment is not considered at risk of material misstatement or subject to signicant judgement, however it is considered signicant due to its size in relation to the Company balance sheet. The Committee reviewed the assumptions made by management, including the strong track record of protable growth and cash generation by RMGL. Furthermore, the Rightmove plc share price has increased signicantly in the 12 years since 2008, resulting in a current market value exceeding £6 billion, signicantly higher than the investment carrying value of £0.6 billion. As RMGL is the main trading entity of Rightmove plc, we therefore see no evidence of impairment. The Committee was satised with the assumptions made. The Committee also reviewed and considered the following areas in relation to the 2021 nancial statements. Accounting matter Committee review Going concern and viability statements In assessing the validity of the viability and going concern statements detailed on pages 33 and 122 to 123, the Committee reviewed the work undertaken by management to assess the Group’s resilience to the Principal Risks set out on pages 29 to 32 under various stress test scenarios. The Committee concluded that the viability time-period of three years remained appropriate. The Committee were satised that sucient rigour was built into the process to assess going concern and viability over the designated periods. Governance | Audit Committee report continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 75 Is the report fair? • Is the whole story presented and has any sensitive material been omitted that should have been included? • Are key messages in the narrative aligned with the KPIs and are they reected in the nancial reporting? • Are the KPIs being reported consistently from year to year? • Is the reporting on the business areas in the narrative reporting consistent with the nancial reporting in the nancial statements? Is the report balanced? • Do you get the same messages when reading the front end and back end of the Annual Report independently? • Are threats identied and appropriately highlighted? • Are the alternative performance measures explained clearly with appropriate prominence? • Are the key judgements referred to in the narrative reporting and signicant issues reported in this Committee Report consistent with disclosures of key estimation uncertainties and critical judgements set out in the nancial statements? • How do these judgements compare with the risks that KPMG are planning to include in their Auditors’ Report? Is the report understandable? • Is there a clear and cohesive framework for the Annual Report? • Are the important messages highlighted appropriately throughout the Annual Report? • Is the Annual Report written in easily understandable language and are the key messages clearly drawn out? • Is the Annual Report free of unnecessary clutter? Conclusion Following its review, the Committee is of the opinion that the 2021 Annual Report, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Group’s position, performance, business model and strategy. Fair, balanced and understandable One of the key governance requirements is for the Annual Report and the Financial Statements, taken as a whole, to be fair, balanced and understandable, and to provide the information necessary for shareholders to assess the Group’s position and performance, business model and strategy. The Committee was provided with an early draft of the Annual Report in order to assess the strategic direction and key messages being communicated. Feedback was provided by the Committee in advance of the February 2022 Board meeting, highlighting any areas where the Committee believed further clarity was required. The draft report was then amended to incorporate this feedback prior to being tabled at the Board meeting for nal comment and approval. To help the Committee in forming its opinion, management presented a fair, balanced and understandable paper to the February 2022 Audit Committee, which identied the key themes in the Annual Report and assessed whether each of the governance requirements were met. When forming its opinion, the Committee reected on the information it had received and its discussions throughout the year. It considered the key messages for 2021 and whether these are appropriately and consistently disclosed throughout the Annual Report, with equal prominence of front half reporting and nancial statements; with no bias or omissions, and with clear language within a structured framework. The key matters considered by the Committee and its conclusion were: ![]() 76 | Rightmove plc | Annual Report 2021 External Audit Tender During the year, the Committee led a formal competitive tender process for external audit services for the 2022 nancial year onwards. The Group has therefore complied with the UK Competition and Markets Authority’s Statutory Audit Services Order 14, which states, among other matters, that FTSE 350 listed companies should put their external audit contract out to public tender at least every ten years. KPMG was not invited to re-tender, as reappointment would mean it would exceed the allowed maximum period in oce. The Board and the Committee have remained satised with both KPMG’s quality of service and their independence and objectivity throughout their tenure. The Audit Committee led a rigorous tender process, including agreeing the selection criteria against which the tendering rms would be assessed, the tender timetable and requirements for the rms’ proposal documents and presentations. An outline of the process undertaken is included in the table below. The Committee, following an assessment of the tender process and consultation with management, recommended the Board appoint EY LLP as external auditor, with eect for the full year ended 31 December 2022, including the half year ended 30 June 2022. The Board accepted the Committee’s recommendation to appoint EY LLP as external auditor and a resolution for the appointment of EY LLP will be put to shareholders at the Annual General Meeting in May 2022. The Committee conrms this recommendation is free from inuence by a third party and that no contractual term has been imposed on the Company which would limit the choice of auditor. KPMG will cease to hold oce following the completion of the audit of the Group’s Financial Statements for the current year ended 31 December 2021. FRC Review During the year the Financial Reporting Council (‘FRC’) reviewed Rightmove’s 2020 Annual Report and Accounts in relation to their review of UK corporate reporting in 2020/21 (in accordance with Part 2 of the FRC Corporate Reporting Review Operating Procedures). Rightmove received a letter from the FRC informing them that, based on that review, the FRC had no questions or queries that they wished to raise. The letter included a schedule of minor improvements to consider in the preparation of the Company’s next annual report and accounts, where the FRC believed that users of the accounts could benet from increased disclosure. No response to the letter was required from Rightmove, other than acknowledgement of receipt of the letter. The FRC’s review provides no assurance that the annual report and accounts are correct in all material respects. The FRC's role is not to verify the information provided but to consider compliance with reporting requirements. Rightmove’s management and the Audit Committee welcomed the comments received by the FRC, have incorporated the matters raised into the Annual Report where appropriate and are supportive of its goal of increasing transparency in corporate reporting. External Audit The Committee has primary responsibility for overseeing the quality and eectiveness of the external auditor, KPMG LLP (KPMG), who is engaged to conduct a statutory audit and express an opinion on the nancial statements. The Committee reviews the scope of KPMG’s audit, which includes the review and testing of the systems of internal nancial control used to produce the information contained in the nancial statements. The Committee approves the terms of engagement and fees of the external auditor, ensuring it has appropriate audit plans in place and that an appropriate relationship is maintained between the Group and the external auditor. The Committee approved the audit fees of £300,000 for the year as set out in Note 6 of the nancial statements. The Committee is responsible for making recommendations to the Board in relation to the appointment of the external auditor. KPMG was reappointed as auditor of the Group at the 2021 AGM. The current external audit engagement partner is Anna Jones, who has held this role since the beginning of 2018. KPMG was rst appointed auditor to the Group in 2000 and was reappointed in 2013 following a competitive tender. This is the nal year of KPMG as auditors given the audit tender conducted during the year and appointment of new auditors from the year ending 31 December 2022. Governance | Audit Committee report continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 77 Expression of interest Rightmove management held meetings with the Big Four rms, excluding KPMG, and one challenger rm to capture expressions of interest Invitation to tender Rightmove issued a formal Request for Proposal to the three rms who had conrmed a willingness to participate in the tender process, detailing the evaluation criteria which would be used by the Committee in informing its decision, which included but was not limited to: • Tendering rm’s approach to ensuring overall audit quality • Capability and experience of the lead partner, team and rm and their ability to provide a high-quality audit • Firm’s proposal to managing the audit, including: - Overall audit approach, including risk assessment - Management of the day-to-day process - Coordination and communication - Approach to transition from KPMG - Impact of potential changes arising from the government’s BEIS proposals • The performance of the rm during the tender process Independence In order to ensure auditor independence and objectivity, all rms and Rightmove management reviewed the non-audit services provided by the tendering rms. The tendering rms also formally conrmed their ability to comply with applicable independence rules and ability to act as Rightmove’s auditor for the year ending 31December 2022 should they be successful in the tender process. Preliminary meetings The Audit Committee created a Tender Committee comprising of the Audit Committee Chair, Chief Financial Ocer and Head of Group Reporting/Financial Controller to run the day-to-day tender process. The Tender Committee members individually met the three tendering lead partners and their senior team for introductions and questions. Data room The data room was opened to participating rms. Any request for further information was added to the data room for access by all participating rms, not just the rm that requested the information. Further engagement The rms were asked to review and comment on the previous year’s Annual Report, and this was submitted to the Tender Committee. An audit tender day was set up for each of the rms to visit the Rightmove oces and meet key management. Following this, a nal meeting was then arranged for each of the audit rms with the CFO and Financial Controller to discuss any further questions. Written proposal Rightmove received a written proposal from each of the three rms. The Tender Committee then agreed, using the selection criteria, which two rms they recommended to invite to the proposal presentation. This recommendation was reviewed, discussed and agreed by the Audit Committee. Proposal Presentation and Q&A At the nal stage, the participating rms delivered presentations and their proposed audit plan to the Tender Committee members, followed by a question and answer session. References Independent references for each rm’s lead partner and their senior manager/director were provided and taken by the Tender Committee. Evaluation, assessment and Committee recommendation The Tender Committee’s view was that each rm could perform a quality audit of Rightmove. However, based on the evaluation criteria above, the Tender Committee recommended EY to the Audit Committee as the preferred choice of auditor. The assessment of the rms’ performance against the selection criteria was reviewed and discussed by the Audit Committee who unanimously agreed to recommend EY to the Board as the preferred choice. Board decision The Board considered and endorsed the Committee’s recommendation to appoint EY as the auditor from 2022. Announcement Once the terms of engagement were nalised, the Group was clear on transition arrangements, Rightmove announced the results of the audit tender to the tender rms. Audit transition plans EY, as the proposed external auditor, started undertaking transitional activity from January 2022, in preparation for the external audit cycle in 2022, by shadowing the outgoing external auditor and attending the Committee meeting in February 2022. EY also held meetings with key members of the senior management team regularly during this period. The steps that were undertaken as part of the process are set out below: ![]() 78 | Rightmove plc | Annual Report 2021 nancial year, the Committee was satised that there had been appropriate focus and challenge on the primary areas of audit risk and concluded that the performance of KPMG remained ecient and eective in its role. External auditor independence and objectivity The Committee considered the safeguards in place to protect the external auditor’s independence. KPMG reported to the Committee that it had considered its independence in relation to the audit and conrmed to the Committee that it complies with UK regulatory and professional requirements and that its objectivity is not compromised. The Committee took this into account when considering the external auditor’s independence and concluded that KPMG remained independent and objective in relation to the audit. Statement of Compliance with the Competition and Markets Authority (CMA) Order The Group conrms that it has complied with The Statutory Audit Services for Large Companies Market Investigation (Mandatory Use of Competitive Processes and Audit Committee Responsibilities) Order 2014 (Article 7.1), including with respect to the Committee’s responsibilities for agreeing the audit scope and fees and authorising non-audit services. Internal audit The Group has an Internal Audit function, Rightmove Assurance, which is fully outsourced to PwC. The aim of Rightmove Assurance is to provide independent and objective assurance on the adequacy and eectiveness of internal control, risk management and governance processes. This includes assurance that underlying nancial controls and The level of non-audit fees as a proportion of the audit fee has typically been low at Rightmove. During the year, KPMG charged the Group £27,000 for non-audit services, representing 9% of the 2021 audit fee. Of this, £25,000 related to the half-year review and £2,000 for agreed-upon procedures in relation to the 2021 bonus outturn. Further details of these services can be found in Note 6 to the nancial statements. External auditor eectiveness The Committee places great importance on ensuring that the external audit is both high quality and eective. The Committee considered the quality and eectiveness of the external audit process in line with the FRC’s Practice Aid for Audit Committees (updated 2019). The eectiveness of the external audit process is dependent on several factors, including the quality, continuity, experience and training of audit personnel; understanding of the business model, strategy and risks; technical knowledge and degree of rigour applied in the review processes of the work undertaken; communication of key accounting and audit judgements; together with appropriate audit risk identication at the start of the audit cycle. The Committee also met with KPMG at various stages during the year, at times without management present, to discuss its remit and any issues arising from its work as the auditor. The Committee evaluated the eectiveness of the audit process using a questionnaire, together with input from management. Areas considered in the review included the quality of audit planning and execution, engagement with the Committee and management, quality of key audit reports and the capability and experience of the audit team. For the 2021 Governance | Audit Committee report continued Independence and non-audit services The Board has policies in place in relation to the provision of non- audit services by the external auditor, and the non-audit fee policy was reviewed by the Committee during the year. The non-audit fee policy ensures that the Group benets in a cost-eective manner from the cumulative knowledge and experience of its auditor, whilst also ensuring that the auditor maintains the necessary degree of independence and objectivity. Non-audit services Policy Assurance-related services directly related to the audit – for example, the review of the half year Financial Statements. The half year Review, an assurance-related non-audit service, is approved as part of the Audit Committee approval of the external audit plan, which takes place in May of each year. Management is authorised to incur additional fees for permitted non-audit services of up to £15,000 in any nancial year, without any prior approval from the Committee. Thereafter, all additional fees are to be referred to the Audit Committee in advance, subject to the cap of 70% of the fees paid for the audit in the last three consecutive nancial years. Permitted non-audit services Including, but not limited to, accounting advice, work related to mergers, acquisitions, disposals, joint ventures or circulars, sustainability audits and reports required by regulators. Prohibited services In line with the FRC ethical standards, these are services where the auditor’s objectivity and independence may be compromised. Prohibited services are detailed in the FRC Revised Ethical Standards 2019 and include tax services, accounting services, internal audit services and valuation services. Prohibited, in accordance with the FRC Ethical Standards. ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 79 Committee Chair and involved issuing tailored evaluation questionnaires which were completed by Rightmove management, KPMG, and the Committee. The evaluation concluded that the function had a sound appreciation of the key issues facing the business, was realistic and robust with audit suggestions and added value to the business. Risk Management During the year, the Group established a new Legal and Compliance function, which includes a Risk Committee that supports the Audit Committee, and comprises the CFO, the Chief Product & Technology Ocer, the Head of Risk & Compliance, the Director of Group Security and other members of senior management as required, to further strengthen the risk and control framework. These were both assessed by the Audit Committee as it considered the nature and extent of the Group’s risk management framework. The Audit Committee reviewed the work undertaken by the Risk Committee and the Board to assess the Group’s principal risks and uncertainties, which included an assessment of each risk and the related response, and progress made against any actions. Further details on the Group’s approach to risk management are set out in the risk management section of the Strategic Report. Internal controls The Board has overall responsibility for the Group’s system of internal controls and has established a framework of nancial and other controls. This is periodically reviewed in accordance with the FRC Guidance on Risk Management, Internal Control and Related Financial and Business Reporting (which integrates and replaces the earlier FRC guidance and the Turnbull Guidance) for its eectiveness. The Board has taken, and will continue to take, appropriate measures to ensure that the chances of nancial irregularities are reduced as far as is reasonably possible by improving the quality of information at all levels in the Group, fostering an open environment and ensuring that nancial analysis is rigorously applied. Any system of internal control is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The Group’s management has established the procedures necessary to ensure that there is an ongoing process for identifying, evaluating and managing the principal risks to the Group. These procedures have been in place for the whole of the nancial year ended 31 December 2021 and up to the date of the approval of these nancial statements. To date, Rightmove’s Internal Audit function, Rightmove Assurance, has been fully outsourced to PwC, which provides the Group with additional independent assurance on the eectiveness of internal controls. processes are working eectively, as well as specialist operational and compliance reviews that focus on emerging risks in new and evolving areas of the business. The Rightmove Assurance plan for 2021 was approved in advance by the Audit Committee and covered a broad range of core nancial and operational processes and controls, focusing on specic risk areas. Specialist reviews were undertaken in the following areas: • Onboarding and vetting of new customers • Purchase to payments cycle and nancial controls • GDPR processes The Committee reviewed the reports provided by Rightmove Assurance that set out the principal ndings of their reviews and agreed management actions. The Committee also reviewed open actions from previous reviews, and monitored management’s progress in completing these actions. Approach to developing the 2022 internal audit plan The approach to the 2022 internal audit plan is in line with prior years, in that it includes a combination of traditional internal audit and compliance reviews – primarily with a nancial control, regulatory, cyber or GDPR focus – and reviews with more of an advisory focus. Additionally, as the business continues to evolve, with new sources of revenue growth and given the increasing complexity of the environment within which Rightmove now operates, the Board wants to ensure an appropriate level of continuity in the monitoring of risks and controls throughout the year by senior management. Consequently, the 2022 internal audit plan will include some elements of in-house assurance activities, performed by the Compliance function, to supplement the work of PwC. This will strengthen the second line of defence in the risk management model on page 29 and enhance the on-going ownership of risk management by the business. PwC will continue to work closely with management and have completed their annual detailed review of the audit universe, which highlights the various functional areas within Rightmove, the associated key process areas, related principal or emerging risks and areas in which internal audit work has been carried out already. This review was then used as the basis for developing the Rightmove Assurance plan for 2022, to ensure an appropriate focus on the key risks facing the business and any in-house assurance activities. Eectiveness of the internal audit process The work of Rightmove Assurance provides a key source of additional assurance and support to management and the Audit Committee regarding the eectiveness of internal controls, as well as providing guidance and recommendations to further enhance the internal control environment and provide specialist insight into areas of change in the business. At the end of the year, the Audit Committee undertook a review of the eectiveness of the Rightmove Assurance function during 2021. The evaluation was led by the ![]() 80 | Rightmove plc | Annual Report 2021 Governance | Audit Committee report continued Through the procedures outlined above, the Board, with advice from the Audit Committee, has considered all signicant aspects of internal control for the year and up to the date of this Annual Report. No signicant failings or weaknesses were identied during this review. The control environment will be further strengthened by the implementation of the new nance ERP system which began in 2021. Anti-bribery and whistleblowing The Code includes a provision requiring the Committee to review arrangements by which employees of the Group may, in complete condence, raise concerns about possible improprieties in relation to nancial reporting or other matters. The Committee’s objective is to ensure that arrangements are in place for the proportionate and independent investigation of such matters and for the appropriate follow-up action. Rightmove is committed to the highest standards of quality, honesty, openness and accountability. The Group has a whistleblowing process, which enables employees of the Group to raise genuine concerns on an entirely condential basis, that includes a third-party ‘speak up’ facility provided by Navex Global. The Committee receives reports on the communication of the Whistleblowing Policy to the business and on the use of the service which contains information on any whistleblowing incidents and their outcomes. The Board believes that it is important for the Group and its employees to follow clear and transparent business practices and to consistently apply high ethical standards in all business dealings, thereby supporting the objectives of the Bribery Act 2010. A Bribery Policy exists to set out what is expected from employees and other stakeholders acting on the Group’s behalf, to ensure that they protect both themselves and the Group’s reputation and assets. The Committee reviews the Bribery Policy annually to ensure it reects best practice. Employees are required to sign up to Rightmove’s Bribery Policy on appointment, and any updates are communicated to all employees. Rightmove has a zero-tolerance approach to bribery and any breach of the Bribery Act is regarded as serious misconduct, justifying immediate dismissal. All corporate gifts and hospitality oered or received valued at more than £50 are recorded in the Group’s gifts and hospitality register. Prior approval is required for any gifts or hospitality greater than £100, and the register is examined by the Committee at least annually. The key elements of the system of internal control are: 1 Major commercial, strategic, competitive, nancial and regulatory risks are formally identied, quantied and assessed by senior management, after which they are considered by the Board; 2 A comprehensive system of planning, budgeting and monitoring Group results. This includes monthly management reporting and monitoring of performance against both budgets and forecasts, with explanations for all signicant variances; 3 An organisational structure with clearly dened lines of responsibility and delegation of authority, and an embedded culture of openness where business decisions and their associated risks and benets are discussed and challenged; 4 Clearly dened policies for capital expenditure and investment exist, including appropriate authorisation levels, with larger capital projects, acquisitions and disposals requiring Board approval; 5 Ongoing management of cash ow forecasts and cash on deposit and, where appropriate, monitoring of compliance with banking agreements; 6 A Compliance Framework to support the Group’s FCA regulated subsidiaries in meeting the requirements of the Financial Conduct Authority (FCA); 7 A Data Protection Framework to ensure the Group is meeting the requirements of the GDPR and Data Protection Act 2018; 8 A Cyber Security plan which identies and categorises cyber security threats and controls, which are regularly reviewed by the Board and Audit Committee; 9 A Legal and Compliance function which has responsibility to oversee legal, compliance, risk and data protection matters; 10 An Anti-Bribery Policy outlining the Group’s position on preventing and prohibiting bribery; 11 A Whistleblowing Policy to encourage employees and others who have serious concerns about any aspect of the Group’s conduct to come forward and voice those concerns; and 12 A comprehensive disaster recovery plan and business continuity plan based upon: – co-hosting of the Rightmove.co.uk website across three separate locations, which is regularly tested and reviewed – the ability of the business to maintain business critical activities in the event of an incident – the capability for employees to work remotely in the event of a loss of one of our premises, which is regularly tested through planned oce closures – regular testing of the security of the IT systems and platforms, regular backups of key data and ongoing threat monitoring to protect against the risk of cyber-attack. ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 81 Governance | Nomination Committee report The Committee continued its focus on Board and organisational succession, in view of Rightmove’s strategic objectives and new initiatives and the Group’s approach to employee diversity, welfare and engagement. There were no changes to the Board of Directors or Committee membership during the year. The Board currently consists of eight Directors, including six Non-Executive Directors, all of whom are considered to be independent, from diverse backgrounds and with gender balance in both executive and non-executive roles. I will be available at the AGM to answer any questions about the work of the Committee. Andrew Fisher Chair Dear Shareholder I am pleased to present the Nomination Committee report for 2021. The role of the Nomination Committee (the Committee) is to keep the structure, size and composition of the Board and Committees under review. Our primary objective is matching the skills, knowledge and experience of Directors to Rightmove’s business strategy and optimise Board performance, manage risk eectively and foster innovation in the business. The terms of reference of the Committee were reviewed during the year and can be found on the Company’s website. The Committee fullled its terms of reference during the year by: • reviewing the Group organisation and succession plans; • considering the diversity of the Board and management team; and • approving the format of the externally facilitated Board and Committee evaluations and agreeing the resulting action plan. Andrew Fisher Chair of the Nomination Committee ![]() 82 | Rightmove plc | Annual Report 2021 Board induction and training New Directors joining the Board undertake a tailored induction programme, including meetings with key members of the management team. Non-Executive Directors have full access to our Executive Directors and Senior Leadership Team outside scheduled Board meetings and can attend Company and employee events and briengs. Individual Board members have access to training and can seek advice from independent professional advisers, at the Group’s expense, where specic expertise or training is required to enable them to perform their duties eectively. Throughout the year the Board received technical briengs on key business activities, new strategies, products and technology; risks including cyber security risks, data protection and other relevant regulations. All Directors are required to complete mandatory information security and data protection training, which is a requirement for all Rightmove employees. Board diversity and experience We believe it is essential to maintain a Board with diverse skills and backgrounds. The Committee devoted time to the review of organisational succession plans and the gender and ethnic diversity of employees with the objective of developing a diverse talent pipeline for senior roles. Details of our Board diversity policy and the skills and experience of our Directors are set out in the Corporate Governance Report. Composition and attendance at meetings The Chair and Non-Executive Directors are members of the Nomination Committee. The Chief Executive Ocer, Chief Financial Ocer and the Director of People & Development attend meetings at the request of the Chair, to discuss the organisation and succession plans and Board evaluation feedback. The Committee met twice during the year and attendance at the meetings is shown in the Corporate Governance report. Membership The Committee is comprised of Non-Executive Directors, whose biographical details can be found in the Corporate Governance report. Throughout the year, all our Non-Executive Directors were considered by the Board to be independent. Principal activities During the year the Committee has: • reviewed the composition and diversity of the Board; • approved the plans for the organisation and succession of the Executive Directors and the Senior Leadership Team; • reviewed the actions taken to reduce the Group’s gender pay gap and the ethnic diversity of the workforce; • agreed the process for an externally facilitated Board evaluation and agreed an action plan from directors’ feedback; and • conducted the annual review of its terms of reference. Governance | Nomination Committee report continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 83 2021 Board evaluation In 2021, our Directors completed an externally facilitated review of the Board and each of its Committees. The review was conducted by Independent Audit Limited, Board evaluation consultants, using a bespoke questionnaire which Directors completed online. Experts from Independent Audit met with the Board Chair and Company Secretary to plan and discuss the questionnaire and, following the evaluation, to discuss directors’ feedback. The results of the evaluation were presented to the Committee in December and an action plan was agreed, with input from Independent Audit, including: – increasing the opportunities for directors to meet informally between scheduled meetings, following two years of reduced in-person contact; – the Senior Independent Director taking a lead in liaising with the Director of People and Development and the Company Secretary to increase the variety and frequency of employee engagement activities throughout the year; – improving the format of business presentations and optimising Directors’ time with presenters at Board meetings; and – reviewing the Board programme to include deeper dives into key strategic initiatives, with business presentations scheduled through the year to provide updates on performance and strategic milestones. Overall, the evaluation concluded that the Board is performing well with a strong, supportive dynamic between Executive and Non-Executive Directors, well lead and organised Committees and good coverage of risk management and Corporate Governance. An internally facilitated Board and Committee evaluation will be conducted in 2022. Board succession and independence The Nomination Committee takes a long-term view of Board succession and will refresh Board skills to meet the Group’s evolving strategy. In 2021, the Committee considered current Board skills and the talent pipeline in light of the Group’s strategic plan. All key roles have recognised successors and have been bolstered by new and promoted talent supporting the Senior Leadership Team. The Board has determined that all Non-Executive Directors are independent in character and judgment and have enough capacity to meet their commitments to Rightmove, including during periods when greater involvement may be required of them. Directors have been able to meet all demands on the Board’s time in 2021, evidenced by their full attendance at Board and Committee meetings, detailed in the Corporate Governance Report. Board eectiveness and evaluation Progress against 2020 Board evaluation actions During 2021, improvements in the Board programme were implemented in response to Directors’ feedback. The length of Board meetings was extended to allow for more in-depth consideration of business initiatives, and the Board awayday was extended to two days to discuss the core business strategy, new strategic initiatives and receive presentations from a wider range of external speakers. Additional informal meetings of Non-Executive Directors were scheduled, and the Non-Executive Directors concluded each Board meeting with an ‘executive session’ to share their feedback on the meeting with the Board Chair. In-person employee engagement resumed in September, with the Non-Executive Directors meeting groups of employees to observe and discuss their work (details can be found in the S172 Statement). ![]() 84 | Rightmove plc | Annual Report 2021 Governance | Directors' remuneration report Annual Statement by the Chair of the Remuneration Committee Executive Directors’ bonuses for 2021 will be 84% of the maximum award, reecting Rightmove’s strong nancial performance and audience share. Our CEO’s LTIP award, for which 2021 was the nal year of performance, will vest at 25% of the maximum award, reecting strong TSR performance relative to the FTSE350. EPS growth fell just short of the threshold target 20% growth over three years. Further details are set out in this report. The Committee considers that these incentive outcomes are a fair reection of the Group’s performance achieved during 2021 and over the past three years, and are appropriate in the context of the stakeholder experience. 2021 incentive outcomes 2021 annual bonus The Committee reviewed nal performance against the bonus plan objectives for 2021 and recommended an annual bonus payment of 84% of the maximum for Executive Directors. The higher bonus for 2021 primarily reects the growth in underlying operating prot (1) (60% of the maximum award) and strong audience growth (2) in time spent on our platforms compared to time spent on Rightmove’s closest competitors (15% of the maximum) and a strong recovery in our Breadth (3) business revenue growth (10% of the maximum). Following a challenging year for our Tenant Services business (4) , the threshold performance level for our rental services target (10% of the maximum) has not been met. Employee satisfaction (5% of the maximum) has again been strong, with a ‘great place to work’ (4) endorsement of 89%, just missing the 90% threshold target. 2019-2021 LTIP award Rightmove has outperformed the market over the three-year performance period from 1 January 2019 to 31 December 2021. Rightmove’s TSR growth over that period has exceeded the FTSE 350 Index by over 50%, resulting in 25% of the Performance Share Plan (PSP) awards granted in 2019 vesting in March 2022 (the maximum award relating to TSR performance). However, Rightmove’s underlying EPS (5) growth has fallen just short of the threshold for EPS growth over three years, therefore 75% of the awards granted to the CEO and our former Finance Director will not vest. Lorna Tilbian Chair of the Remuneration Committee Dear Shareholder I am pleased to present our Directors’ Remuneration Report for Rightmove (the Company) for the year ended 31December 2021. Our report explains the work of the Committee and how it applied the Remuneration Policy, which was approved by shareholders in 2020. The Remuneration Policy and its application are summarised in ‘Remuneration at a glance’ below. Full details of the 2020 Remuneration Policy which applies to this Annual Report, can be found on the Company’s website at www.plc.rightmove.co.uk/governance 2021 remuneration in the context of stakeholder experience and company performance The Committee has as usual considered executive remuneration in the light of outcomes for Rightmove’s key stakeholders and the Group’s nancial performance. Strong nancial performance combined with record retention of advertisers, operating eciency and increased innovation will mean that revenue, margin and operating prot have exceeded consensus for the full year. – Our customers have continued to benet from the strong UK property market in 2021, we have delivered package improvements and tools to optimise customers’ nancial performance and we are making good progress with improvements in our customer support, sentiment and leaver rates. – Shareholder returns have resumed, with over £174m returned through share buybacks and £64m paid in dividends during 2021. – Our employees returned to the oce and resumed face to face contact with our customers in September, with exibility to work from home two days a week. The 2021 full-year ‘Have Your Say’ survey indicates that employee engagement and satisfaction scores remain strong, although just falling short of our very high standards for creating a ‘great place to work’. The all-employee pay rise for 2022 will be 3% taking into consideration CPI. ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 85 2022 approach The Committee has approved a 3% increase in Executive Directors’ salaries with eect from 1 January 2022, in line with the all-employee pay rise and in accordance with our Policy. There are no changes to the range of benets described in the 2020 Remuneration Policy. The 2022 Bonus plan targets have been adjusted and weighted to align with key performance targets in the Group’s business strategy. The nancial target weighting is 60% (2021:80%) for underlying operating prot and 40% for operational KPIs, of which 20% are designed to drive revenue in the Group’s two key strategic initiatives, mortgages and rental services. The trac and employee engagement targets are unchanged, as the Board considers that these remain critical to Rightmove’s nancial performance and strategy: – 60% for underlying operating prot (1) ; – 15% for absolute growth in trac, compared to all our competitors (2) ; – 10% for referencing volume in Rental Services; – 10% for growth in mortgage outcomes; and – 5% for employee engagement, based on our ‘Have Your Say’ survey (4) . The Remuneration Committee has reviewed the EPS (5) and TSR performance measures which will be applied to the PSP awards granted in 2022, and agreed that a 50:50 weighting remains appropriate. To ensure stretching but achievable revenue targets, the Committee is minded to approve an EPS growth range from a threshold of 38% to a maximum of 44% over the three-year performance period commencing on 1January 2022, taking into account the Corporation Tax rise from 19% to 25% in 2023. These targets have been considered in light of the Group's internal nancial planning and external market expectations for future growth, and are designed to provide a realistic incentive at the lower end of the performance range and require exceptional performance to achieve full vesting. On this basis, the Committee is satised that the range of targets remain appropriately demanding, and no less challenging than for prior year awards. Shareholder and employee engagement I have written to investors holding in total over 50% of Rightmove shares to outline the Committee’s proposals for 2022 and invited their feedback. Our major shareholders have raised no concerns with our proposals. I have also engaged directly with employees in relation to their pay and benets and executive remuneration at Rightmove, including how it aligns with wider Company pay policy. The views I have received were shared with the Committee and indicate that there is a strong sense that ‘we’re all in it together’, hard work is acknowledged and rewarded, and benets are in line with expectations. There is a strong view that the Group’s remuneration policy should reward eort and achievement throughout the workforce. The Committee has also received feedback on employee sentiment, including pay, from employees during the year from our Director of People and Development. I will be available at the AGM to answer any questions you may have on the application of Rightmove’s Remuneration Policy in 2021 and its proposed application in 2022. Lorna Tilbian Chair of the Remuneration Committee 25 February 2022 (1) Underlying operating prot is dened as operating prot before share-based payments charges (including the related National Insurance). (2) Time in minutes spent on Rightmove platforms, relative to our nearest competitors (Zoopla.co.uk and PrimeLocation.com). Comscore MMX ® Desktop only + Comscore Mobile Metrix ® Mobile Web & App, Total Audience, Custom- dened list of Rightmove Sites, RIGHTMOVE.CO.UK, ZOOPLA.CO.UK, PRIMELOCATION.COM, January 2019 – December 2021, United Kingdom (3) Revenue excluding Agency and New Homes. (4) Based on employee respondents selecting ‘Yes’ in response to this question in the annual employee survey. (5) Underlying earnings per share (EPS) is dened as underlying prot (prot for the year before share based payments charges including the related National Insurance and appropriate tax adjustments), divided by the weighted average number of ordinary shares in issue for the period. ![]() 86 | Rightmove plc | Annual Report 2021 Governance | Remuneration at a glance 2021 Financial performance Pay and performance for 2021 The charts below show the actual remuneration for the Chief Executive Ocer and the Chief Financial Ocer for 2021. The charts include data for salary, bonus and the LTIP (performance shares) granted in 2019, with a performance period ending on 31 December 2021. The charts exclude data for benets and pensions, details of which can be found in the single remuneration gure table. Revenue 48% Returns to shareholders £238.8m Underlying Operating prot (1) 68% Chief Executive Ocer – Peter Brooks-Johnson 0 500 1000 1500 2000 2500 £000 £515.7 £902.5 £902.5 £515.7 £758.1 £397.7 £515.7 Minimum Actual Maximum Amounts shown in £’000 LTIPBonusSalary £165.3 Chief Financial Ocer – Alison Dolan 0 500 1000 1500 2000 2500 £000 £393.9 £689.3 £393.9 £579.0 £393.9 £124.1 £220.5 £124.1 £220.5 Minimum Actual Maximum £40.8 £124.1 Amounts shown in £'000 BonusSalary Long-term incentive plan performance – 25% Underlying EPS (5) Total Shareholder Return Underlying Earnings per share (EPS) increased by 19.1% over three years, missing the threshold of 20% growth; this element of the 2019 PSP awards will not vest in 2022. 25% out of a maximum of 25% for this element of the 2019 PSP awards will vest as relative three- year TSR performance exceeded the FTSE 350 index by over 50%. Pence per share Source: Rightmove Source: Thomson Reuters The graph shows underlying EPS (5) as at 31 December 2021 (21.8p), compared to EPS as at 31 December 2018 (18.3p). 10 14 18 22 16.3 20.3 21.8 2017 2018 20212019 2020 Underlying basic EPS (5) 18.3 Value £ Dec 2018 Dec 2019 Dec 2020 Dec 2021 Total shareholder return Rightmove FTSE 100 FTSE 350 12.8 This graph shows the value, by 31 December 2021, of £100 invested in Rightmove on 31 December 2018, compared with the value of £100 invested in the FTSE 100 and the FTSE 350 Indices on the same date. -+26% +88% +23% 60 80 100 120 140 160 180 200 Underlying EPS Pence per share Source: Rightmove Source: Thomson Reuters The graph shows underlying EPS (5) as at 31 December 2021 (21.8p), compared to EPS as at 31 December 2018 (18.3p). 10 14 18 22 16.3 20.3 21.8 2017 2018 20212019 2020 Underlying basic EPS (5) 18.3 Value £ Dec 2018 Dec 2019 Dec 2020 Dec 2021 Total shareholder return Rightmove FTSE 100 FTSE 350 12.8 This graph shows the value, by 31 December 2021, of £100 invested in Rightmove on 31 December 2018, compared with the value of £100 invested in the FTSE 100 and the FTSE 350 Indices on the same date. -+26% +88% +23% 60 80 100 120 140 160 180 200 Total Shareholder Return Shareholder alignment Shareholding guidelines Proportion of variable awards received in shares 200% of salary for all Executive Directors 80% of performance-related pay for 2021 was awarded in Rightmove shares Annual bonus achievement – 84% Performance Target Threshold Actual Bonus % achieved Underlying operating prot (1) £204.5m £231.0m 60% Growth in absolute time on site in minutes relative to our nearest competitors (2) Same absolute growth in minutes Growth in time on Rightmove platforms in minutes compared to 2019 (and 2020) was over 100% better than our nearest competitors 15% Innovation – growth in Other revenue (3) £21m £26.9m 9% Tenant Services revenue £4.5m £3.1m 0% Employee survey respondents who think ‘Rightmove is a great place to work’ (4) 90% 89% 0% (1) Underlying operating prot is dened as operating prot before share-based payments charges (including the related National Insurance). (2) Time in minutes spent on Rightmove platforms, relative to our nearest competitors (Zoopla.co.uk and PrimeLocation.com). Comscore MMX ® Desktop only + Comscore Mobile Metrix ® Mobile Web & App, Total Audience, Custom-dened list of Rightmove Sites, RIGHTMOVE.CO.UK, ZOOPLA.CO.UK, PRIMELOCATION.COM, January 2019 – December 2021, United Kingdom. (3) Revenue excluding Agency and New Homes. (4) Based on employee respondents selecting ‘Yes’ in response to the question “is Rightmove a great place to work” in the annual employee survey. (5) Underlying earnings per share (EPS): is dened as underlying prot (prot for the year before share-based payments charges including the related National Insurance and appropriate tax adjustments), divided by the weighted average number of ordinary shares in issue for the period. ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 87 Governance | Directors’ remuneration report continued 2020 Remuneration Policy and application Policy Application in 2021/2022 Base salaries Executive Directors will normally receive inationary adjustments to salaries in line with wider workforce increases Executive Directors will receive a 3% pay rise in line with the wider workforce from 1 January 2022. Pension Rightmove contributes 6% of base salary, subject to an employee contributing a minimum of 3% of base salary The CEO elected not to participate in the Group pension plan during the year. The CFO joined the Group pension scheme, on the same terms as all employees, in December 2020. Annual bonus and Deferred Share Bonus Plan (DSP) Maximum 175% of salary, with 40% cash and 60% deferred into Company shares for two years Executive Directors’ 2020 bonus awarded in March 2021 based on a maximum of 125% of salary. The CEO and CFO will be awarded cash and deferred bonuses for 2021 in March 2022 based on a maximum of 175% of salary with 60% deferred into shares. Performance Share Plan (PSP) Awards granted at 175% of salary to which a ve year holding period applies, comprising a three year vesting and a two-year post-vesting holding period The CEO and CFO were granted awards in March 2021, based on the three-year performance period from 1 January 2021 to 31 December 2023 at 175% of salary, exercisable from March 2026. Malus and Clawback Enhanced malus and clawback apply to DSP and PSP awards Applied to the 2021 PSP and DSP awards. Shareholding Guidelines 200% of basic salary – Post cessation shareholding requirements A two-year post-employment holding period will apply to share awards granted from May 2020, with 100% of the shareholding requirement (or actual holding, if lower) retained for the rst year, and 50% for the second year – Non-executive director fees (including the Company Chair and additional fees for chairing Board Committees) The fees for Non-Executive Directors are reviewed periodically (normally every three years). Fee levels reect the responsibility, skills and knowledge required to perform each role and the expected time commitment Non-Executive Directors will receive a 3% fee increase in line with the wider workforce from 1January 2022. ![]() 88 | Rightmove plc | Annual Report 2021 Annual Report on Remuneration Remuneration Committee purpose and membership Terms of reference The Committee is primarily responsible for making recommendations to the Board on the Company’s overall remuneration policy and framework, setting the remuneration of the Chair, Executive Directors and the Senior Leadership Team. The Committee’s primary objective in formulating and applying the Remuneration Policy is the eective recruitment, retention and fair reward of directors and employees. In accordance with the Code, the Committee also recommends the structure, and monitors the level of remuneration for management, below Board level. The Committee is aware of, and advises on, the employee benet structures throughout the Group and ensures that it is kept aware of any potential business risks arising from those remuneration arrangements. The remuneration and terms of appointment of the Non-Executive Directors are determined by the Board as a whole. The Committee has formal terms of reference which are reviewed annually and updated as required. These are available on the Company’s website at plc.rightmove.co.uk. Membership The following independent Non-Executive Directors were members of the Committee during 2021: Lorna Tilbian (Chair of the Committee) Rakhi Goss-Custard Jacqueline de Rojas The Committee met seven times during 2021 and attendance at meetings is shown in the Corporate Governance Report. The Committee will meet as necessary, but normally at least ve times a year. The quorum for meetings of the Committee is two members and the Company Secretary acts as Secretary to the Committee. Only members of the Committee have the right to attend Committee meetings. The Committee Chair has invited the Chair of the Board to attend meetings except during discussions relating to his own remuneration. The CEO is also invited to meetings when the Committee is considering his recommendations on the remuneration of the Chief Financial Ocer and the Senior Leadership Team. No Executive Director is involved in deciding their own remuneration. External advisors Deloitte LLP (Deloitte) is the Committee’s remuneration advisor. Deloitte is a founding member of the Remuneration Consultants Group and adheres to its code in relation to executive remuneration consulting. In 2021, the Company paid fees of £22,450 to Deloitte in respect of work and advice which was of material assistance to the Committee. The Committee keeps its relationship with external advisors under review and is satised that there are no conicts of interest. Aside from other remuneration-related support provided in their role as advisors, that was not considered to be of material assistance to the Committee (e.g. provision of accounting fair values for Rightmove share awards), Deloitte did not provide any other services to the Company during the year. What has the Committee done during the year? The Committee’s work in 2021 included: Pay and incentive plan reviews • annual review and approval of Executive Directors’ base salaries and benets; • review of 2021 business performance against relevant performance targets to determine annual bonus payments and vesting of long-term incentives; • review and approval of appropriate benchmarks and performance measures for the annual performance-related bonus, DSP awards and 2022 PSP awards to ensure measures are aligned with strategy and that targets are achievable and appropriately stretching; • approval of share awards granted in March 2021 under the DSP and the PSP; • ongoing monitoring of remuneration for the Senior Leadership Team; and • approval of our leaver arrangements relating to share awards for members of the Senior Leadership Team. Governance | Directors’ remuneration report continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 89 Governance and strategy • review of the 2021 AGM voting and feedback from institutional investors; • engagement with shareholders on the application of the 2020 Remuneration Policy in 2022; • review and approval of the Directors’ Remuneration Report; • evaluation of the Committee’s performance during the year; and • review of the Committee’s terms of reference. Remuneration Policy In formulating the Remuneration Policy approved by shareholders in 2020 (‘the 2020 Policy’), the Committee considered the following principles recommended in the Code: • Clarity – the Policy is designed to allow our remuneration arrangements to be structured in a way that clearly supports the nancial objectives and the strategic priorities of the Group. The Committee remains committed to reporting on Rightmove’s remuneration practices in a transparent, balanced and straightforward way. • Simplicity – the Policy consists of three main elements: xed pay (salary, benets and pension), an annual bonus award and a long-term incentive award. The annual bonus award is based on a combination of our nancial and operational KPIs. The vesting of LTIP awards is based on EPS growth and relative TSR performance. • Risk – the Policy is in line with Rightmove’s risk appetite. TheCommittee has the discretion to reduce variable pay outcomes where these are not considered to represent overall Group performance or the shareholder experience. Over half (60%) of bonus awards are deferred into shares, and vested shares under the LTIP must be retained for a further two years, ensuring that Executive Directors are motivated to deliver longer-term sustainable performance. • Predictability – the Committee considers the impact of various performance outcomes on incentive levels when determining overall executive pay levels. • Proportionality – a substantial portion of the package comprises performance based reward, linked to the delivery of strong Group performance and the achievement of key strategic objectives. The Committee will use its discretion where required to ensure that performance outcomes are appropriate. • Alignment to culture – in determining executive remuneration policies and practices, the Committee considers the overall remuneration framework for our wider workforce as part of its review, including employee engagement and satisfaction levels, succession plans including diversity, to ensure executive remuneration is aligned to Rightmove’s culture. ![]() 90 | Rightmove plc | Annual Report 2021 Directors’ remuneration This section of the report sets out how the 2020 Policy was applied in 2021, along with changes in Directors’ share interests during 2021. Information that is audited is clearly indicated. Directors’ Single Figure Remuneration Tables (audited) The remuneration of the Directors of the Company during 2021 for time served as a Director is as follows: Fixed Pay Performance-related pay Salary/fee £ Benets (1) £ Pension (2) £ Fixed pay subtotal £ Annual bonus (3) £ Long-term incentives (4) £ Variable pay subtotal £ Total remuneration in 2021 £ Executive Directors Peter Brooks-Johnson 515,724 2,172 – 517,896 758,115 397,662 1,155,777 1,673,673 Alison Dolan 393,900 – 23,634 417,534 579,034 – 579,034 996,568 Non-Executive Directors (5) Andrew Fisher 202,000 – – 202,000 – – – 202,000 Jacqueline de Rojas 65,550 – – 65,550 – – – 65,550 Rakhi Goss-Custard 55,550 – – 55,550 – – – 55,550 Andrew Findlay 70,700 – – 70,700 – – – 70,700 Lorna Tilbian 70,700 – – 70,700 – – – 70,700 Amit Tiwari 55,550 – – 55,550 – – – 55,550 (1) Benets in kind for the Executive Directors relate to private medical insurance and the medical cash plan. (2) Alison Dolan participated in the Rightmove pension scheme on the same terms as all employees. (3) The annual bonus amount relates to the accrued payment in respect of the full year results for the year ended 31 December 2021 including the deferred element (60% of the annual bonus is deferred in shares with a two-year vesting period). (4) The value of the long-term incentives includes: • nil cost PSPs where vesting is calculated by taking the number of nil cost options expected to vest on 6 March 2022 (including dividend roll-up), which are subject to the three-year performance period, ending on 31 December 2021, multiplied by the average share price for the 3 months ending 31 December 2021 of £7.28, and • the capital gain of £7,059 on the CEO’s Sharesave option which vested on 1 November 2021, which reects the dierence between the option grant price of £3.89 and £6.94, being the share price at vesting. The increase in the value of the CEO’s 2019 PSP awards vesting in 2022, due to share price appreciation, was £125,188. (5) The basic fee for all Non-Executive Directors (excluding the Chair) in 2021 was £55,550, Committee Chairs (excluding Nomination Committee) received an additional fee of £15,150, and the Senior Independent Director received an additional fee of £10,000. The Chair’s fee was £202,000. Governance | Directors’ remuneration report continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 91 The remuneration of the Directors of the Company during 2020 (audited) was: Fixed Pay Performance-related pay Salary/fee (1) £ Benets (2) £ Pension (3) £ Fixed pay subtotal £ Annual bonus (4) £ Long-term incentives (5) £ Variable pay subtotal £ Total remuneration in 2020 £ Executive Directors Peter Brooks-Johnson 477,736 2,224 – 479,960 165,312 315,555 480,867 960,827 Alison Dolan (6) 124,091 – 1,950 126,041 40,793 – 40,793 166,834 Robyn Perriss (7) 165,868 1,244 – 167,112 23,747 171,873 195,620 362,732 Non–Executive Directors (8) Andrew Fisher 187,121 – – 187,121 – – – 187,121 Jacqueline de Rojas 56,136 – – 56,136 – – – 56,136 Rakhi Goss-Custard 51,458 – – 51,458 – – – 51,458 Andrew Findlay 65,492 – – 65,492 – – – 65,492 Lorna Tilbian 65,492 – – 65,492 – – – 65,492 Amit Tiwari 51,458 – – 51,458 – – – 51,458 (1) All directors volunteered a 20% reduction in their salaries and fees for four months (April to July 2020); a total reduction of £83,228. (2) Benets in kind for the Executive Directors relate to private medical insurance and the medical cash plan. (3) Alison participated in the Rightmove pension scheme on the same terms as all employees. (4) The annual bonus amount relates to the accrued payment in respect of the full-year results for the year ended 31 December 2020 including the deferred element (60% of the annual bonus is deferred in shares with a two-year vesting period). (5) The value of the long-term incentives has been restated for vested awards and includes: • nil cost PSPs where vesting is calculated by taking the number of nil cost options which vested on 28 February 2021 (including dividend roll-up), which are subject to the three-year performance period, ending on 31 December 2020, multiplied by the vesting date closing share price of £5.65, and • the capital gain of £7,890 on the CEO’s Sharesave option which vested on 1 November 2020, is the dierence between the option grant price of £3.29 (adjusted for the share subdivision) and £6.18, being the share price at vesting on 1 November 2020. The increase in the value of the PSP awards vesting in 2020, due to share price appreciation, was £90,230 for the CEO and £50,406 for the former Finance Director. (6) Salary and benets for four months from 7 September 2020. (7) Salary and benets are shown to 30 June 2020, being the period of Robyn’s service as a Director; her bonus and performance shares were pro-rated to 30 June 2020. (8) The basic fee for all Non-Executive Directors (excluding the Chair) in 2020 was £55,000; Committee Chairs (excluding Nomination Committee) received an additional fee of £15,000, and the Senior Independent Director received an additional fee of £5,000. The Chair’s fee was £200,000. All fees were subject to a voluntary 20% reduction for four months, from April to July 2020. Dened contribution pension The Group operates a stakeholder pension plan for employees under which Rightmove contributes 6% of base salary, subject to the employee contributing a minimum of 3% of base salary. Alison Dolan is a member of the Group pension plan having joined in December 2020, on the same basis as all employees. The Company does not contribute to any personal pension arrangements. External appointments With the approval of the Board in each case, Executive Directors may accept one external appointment as a non-executive director of another listed or similar company and retain any fees received. Peter Brooks-Johnson is a Non-Executive Director of Adevinta ASA, the international online classieds operation, which is listed on the Oslo Børs. Peter received a director’s fee of 842,500 Norwegian Krone from Adevinta for the year to 31December 2021 (2020: €72,000 received, equivalent to 755,224 Norwegian Krone as at 31 December 2020). ![]() 92 | Rightmove plc | Annual Report 2021 How was pay linked to performance in 2021? Annual bonus plan The incentive for the nancial year ended 31 December 2021 was in the form of a cash bonus of up to 70% of salary and a DSP bonus of up to 105% of salary (i.e. 175% in total awarded under the 2020 Policy). The bonus, both cash and DSP elements, was determined by a mixture of operating prot performance (60%) and key performance indicators (40%) relating to underlying drivers of long-term revenue growth. The Committee reviewed the performance targets for the 2021 bonus plan during the year and agreed that the trac target should be adjusted to compare trac growth between 2019 and 2021. The Committee considered that 2020 was an exceptional year in terms of trac, due to the disruption caused by the pandemic to the property market, and therefore 2019 was a more appropriate baseline for this target. The Committee was satised that the adjustment represented a no less challenging target, and the trac comparison for time on site in 2021 was also 100% better than Rightmove's nearest competitors compared to 2020. When comparing performance against the 2021 bonus targets set, the Committee determined that 84% of the maximum achievable cash and DSP bonus should be paid to the Executive Directors in March 2022. Accordingly, a cash bonus of 59% of base salary (out of a maximum of 70%) will be paid to the executives and 88% of base salary (out of a maximum of 105%) will be granted to the Executive Directors under the DSP, which will be deferred until March 2024. Details of the achievement of bonus targets are provided in the following table: Measure Target As a % of maximum bonus opportunity Actual performance achieved Resulting bonus % achieved Financial targets Underlying operating prot (1) Growth in underlying operating prot: • £204.5m: 10% payout • £221.5m: 100% payout 60% Underlying operating prot achieved: £231.0m.This represents growth of 68% on 2020 60% Strategic targets Trac market share (2) Growth in time in minutes spent on Rightmove platforms as measured by comScore relative to Rightmove’s nearest competitors • Same absolute growth: 25% payout • 50% higher absolute growth: 100%payout 15% Growth in time in minutes spent on Rightmove platforms compared to 2019 (and 2020) was over 100% better than our nearest competitors’ platforms 15% Other business revenue (3) • Growth of £21.0m: 25% • Growth of £27.5m: 100% 10% Revenue growth of £26.9m achieved 9% Rental Services Revenue Target: • £4.5m: 25% payout • £6m: 100% payout 10% Revenue was £3.1m, which is below threshold 0% Employee engagement (4) Percentage of respondents to theemployee survey who say ‘Rightmove is a great place to work’: • 90%: 25% payout • 95%: 100% payout 5% 89% of respondents agree ‘Rightmove is a great place to work’, which is below threshold 0% Total 100% 84% (1) Underlying operating prot is dened as operating prot before share-based payments charges (including the related National Insurance). (2) Time in minutes spent on Rightmove platforms, relative to our nearest competitors (Zoopla.co.uk and PrimeLocation.com). Source: Comscore MMX ® Desktop only + Comscore Mobile Metrix ® Mobile Web & App, Total Audience, Custom-dened list of Rightmove Sites, RIGHTMOVE.CO.UK, ZOOPLA.CO.UK, PRIMELOCATION.COM, January 2019 – December 2021, United Kingdom (3) Revenue excluding Agency and New Homes. (4) Based on the results of the annual employee engagement survey. Governance | Directors’ remuneration report continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 93 Long-term incentives vesting during the year The PSP awards granted to Peter Brooks-Johnson and Robyn Perriss, (Rightmove's former Finance Director) in March 2019 were subject to underlying EPS (1) (75% of the awards) and relative TSR (25% of the awards) performance conditions that related to the three-year period ended 31December 2021. The vesting schedule for the relative TSR element of the 2019 PSP awards is set out below: Relative TSR condition % of award vesting (maximum 25%) Less than the Index 0% Equal to the Index 6.25% 25% higher than the Index 25% Intermediate performance Straight-line vesting At the end of the performance period, Rightmove’s TSR was 88% compared to 26% for the FTSE 350 Index. This performance is over 62% above the Index and therefore this part of the award will vest at the maximum level of 25% on 6March 2022. Rightmove's underlying EPS growth is measured over a period of three nancial years (2019 to 2021); the vesting schedule is set out below: Underlying EPS (1) growth from 2019 to 2021 % of award vesting (maximum 75%) Less than 20% 0% 20% 18.75% 50% 75% Between 20% and 50% Straight-line vesting (1) Underlying earnings per share is dened as underlying prot (prot for the year before share-based payments charges including the related National Insurance and appropriate tax adjustments), divided by the weighted average number of ordinary shares in issue for the period. At the end of the performance period, underlying EPS was 21.8p which is 19.1% higher than underlying EPS of 18.3p for the base year 2018. Therefore, there will be nil vesting for this part of the award (maximum of 75%). Share awards granted during the year (audited) On 3 March 2021 Peter Brooks-Johnson and Alison Dolan were awarded shares under the PSP, which vest in March 2024 and are exercisable from March 2026. The awards are subject to a mixture of EPS (50% of the awards) and TSR relative to the FTSE 350 Index (50% of the awards). Executive Director Basis of grant Number of shares Face value ofaward (1) Peter Brooks-Johnson 175% of base salary 153,062 £893,882 Alison Dolan 175% of base salary 116,906 £682,731 (1) Based on the average mid-market share price for the three consecutive days prior to grant, taken from the Daily Ocial List, of £5.84 The vesting schedule for the relative TSR element of Executive Directors' 2021 PSP awards is set out below. It is consistent with the TSR condition used for previous grants under the share option plan and will be assessed against the FTSE 350 Index. Performance will be measured over three nancial years. Relative TSR condition % of award vesting (maximum 50%) Less than the Index 0% Equal to the Index 12.5% 25% higher than the Index 50% Intermediate performance Straight-line vesting Rightmove's EPS growth will be measured over a period of three nancial years (2021-2023). The EPS gure used will be equivalent to the Group’s underlying EPS (1) . The following vesting schedule will apply for Executive Directors' awards granted in 2021: Underlying EPS (1) growth from 2021 to 2023 % of award vesting (maximum 50%) Less than 87% 0% 87% 12.5% 95% 50% Between 87% and 95% Straight-line vesting (1) Underlying earnings per share is dened as underlying prot (prot for the year before share-based payments charges, including the related National Insurance and appropriate tax adjustments), divided by the weighted average number of ordinary shares in issue for the period. The benchmark underlying EPS for the nancial year 2020 from which these targets will be measured is 12.6p. ![]() 94 | Rightmove plc | Annual Report 2021 Share-based incentives held by the Executive Directors and not exercised as at 31 December 2021 (audited) Date granted Share–based incentives held 1 January 2021 (1) Granted/dividend roll–up Exercise price (1) Exercised Average share price at date of exercise Lapsed Share–based incentives held at 31December 2021 Vesting date Expiry date Executive Directors Peter Brooks–Johnson 01/03/2017 (PSP) 165,170 – £0.00 (165,170) (2) – – – 01/03/2020 28/02/2022 09/05/2017 (PSP) 30,549 – £0.00 (30,549) (2) – – – 09/05/2020 08/05/2022 01/10/2017 (Sharesave) 2,730 – £3.29 (2,730) (3) £6.02 – – 01/11/2020 30/04/2021 28/02/2018 (PSP) 212,310 1,376 £0.00 (54,454) (4) £6.98 (159,232) – 28/02/2021 27/02/2023 01/10/2018 (Sharesave) 2,313 – £3.89 – – – 2,313 01/11/2021 30/04/2022 06/03/2019 (DSP) 56,498 – £0.00 (56,498) (5) £6.98 – – 06/03/2021 05/03/2022 06/03/2019 (PSP) 204,746 – £0.00 – – – 204,746 06/03/2022 05/03/2024 04/03/2020 (DSP) 39,282 (6) – £0.00 – – – 39,282 04/03/2022 03/03/2023 17/09/2020 (PSP) 143,034 (7) – £0.00 – – – 143,034 17/09/2023 17/09/2027 30/09/2020 (Sharesave) 1,754 (8) – £5.13 – – – 1,754 01/11/2023 30/04/2024 03/03/2021 (PSP) – 153,062 (9) £0.00 – – – 153,062 03/03/2024 03/03/2028 03/03/2021 (DSP) – 16,989 (10) £0.00 – – – 16,989 03/03/2023 03/03/2024 Total 858,386 171,427 – (309,401) – (159,232) 561,180 Governance | Directors’ remuneration report continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 95 Date granted Share–based incentives held 1 January 2021 Granted/dividend roll–up Exercise price Exercised Average share price at date of exercise Lapsed Share–based incentives held at 31December 2021 Vesting date Expiry date Alison Dolan 17/09/2020 (PSP) 84,970 (7) – £0.00 – – – 84,970 17/09/2023 17/09/2027 30/09/2020 (Sharesave) 3,508 (8) – £5.13 – – – 3,508 01/11/2023 30/04/2024 03/03/2021 – 116,906 (9) £0.00 – – – 116,906 03/03/2024 03/03/2028 03/03/2021 – 4,192 (10) £0.00 – – – 4,192 03/03/2023 03/03/2024 Total 88,478 121,098 – – – – 209,576 (1) The Company’s ordinary shares of 1 pence each were divided into 10 new ordinary shares of 0.1 pence each on 31 August 2018. The exercise prices and the number of shares under options granted before 31 August 2018 have been restated for the share subdivision. (2) The performance shares awarded to Peter Brooks-Johnson under the PSP on 1 March and 9 May 2017 vested in 2020 subject to EPS and relative TSR performance measures, 85% of the awards vested. Nil cost Options over a total of 195,719 shares (including 7,462 dividend roll up shares) were exercised by Peter Brooks-Johnson on 10November 2021 and all shares sold at an average market price of £6.98 per share, 33,223 shares lapsed on the vesting date. (3) In September 2017, Peter Brooks-Johnson was granted Sharesave options over 2,730 shares which vested in November 2020 at an exercise price of £3.29. Peter Brooks-Johnson exercised the option on 20 April 2021 and retained all the shares. (4) The performance shares awarded to Peter Brooks-Johnson under the PSP on 28 February 2018 vested in 2021 subject to EPS and relative TSR performance measures, 25% of the awards vested. Nil cost options over 54,454 shares (including 1,376 dividend roll up shares) were exercised by Peter Brooks-Johnson on 10 November 2021 and all the shares sold at an average market price of £6.98 per share; 157,856 shares lapsed on the vesting date. (5) The deferred shares granted under the DSP on 6 March 2019 vested in March 2021. Peter Brooks-Johnson exercised the nil cost option over 56,498 shares on 10 November 2021 and sold all the shares at an average market price of £6.98 per share. (6) On 4 March 2020, Peter Brooks-Johnson was awarded nil cost deferred shares under the DSP, which vest in March 2022. The average mid-market share price for the three consecutive preceding days, used to calculate the number of shares awarded, was £6.21. (7) On 17 September 2020 the Executive Directors were awarded nil cost performance shares under the PSP, which vest in 2023 and are exercisable from September 2025. The average mid-market share price for the three consecutive preceding days, used to calculate the number of shares awarded, was £6.25. (8) On 30 September 2020, Peter Brooks-Johnson and Alison Dolan were granted Sharesave options over 1,754 and 3,508 shares respectively at an exercise price of £5.13. The options will be exercisable from November 2023. (9) On 3 March 2021 the Executive Directors were awarded nil cost performance shares under the PSP, which vest in 2024 and are exercisable from March 2026. The average mid-market share price for the three consecutive preceding days, used to calculate the number of shares awarded, was £5.84. (10) On 3 March 2021, the Executive Directors were awarded nil cost deferred shares under the DSP, which vest in March 2023. The average mid-market share price for the three consecutive preceding days, used to calculate the number of shares awarded, was £5.84. Dilution (audited) All existing executive share-based incentives can be satised from shares held in the Rightmove Employees’ Share Trust (EBT) and shares held in treasury. It is intended that the 2022 share-based incentive awards will also be settled from shares currently held in the EBT or from shares held in treasury without any requirement to issue further shares. During 2021, treasury shares were used to satisfy vested DSP and PSP awards over 805,018 shares, representing 0.1% of the issued share capital (less treasury shares) as at 31 December 2021. ![]() 96 | Rightmove plc | Annual Report 2021 Directors’ interests in shares (audited) The benecial and family interests of each person who served as a Director during 2021 in the share capital of the Company were as follows: Interests in ordinary shares of 0.1p Interests in share-based incentives At 31 December2021 At 1 January 2021 PSP & DSP awards (unvested) SAYE awards (vested but unexercised) Options (unvested) Executive Directors Peter Brooks–Johnson 2,017,302 2,014,553 557,113 2,313 1,754 Alison Dolan – – 206,068 – 3,508 Non–Executive Directors Andrew Fisher 20,000 20,000 – – – Jacqueline de Rojas 1,880 1,880 – – – Rakhi Goss-Custard 5,440 5,440 – – – Andrew Findlay – – – – – Lorna Tilbian – – – – – Amit Tiwari – – – – – Total 2,044,622 2,041,873 763,181 2,313 5,262 • The Company’s shares in issue (including 12,480,472 shares held in treasury) as at 31 December 2021 comprised 859,678,232 ordinary shares of 0.1p each (2020: 886,387,616 ordinary shares of 0.1p each). • The closing share price of the Company was £7.95 as at 31 December 2021. The lowest and highest share prices during the year were £5.55 and £8.00 respectively. • The Executive Directors are regarded as being interested, for the purposes of the Act, in 1,158,418 ordinary shares of 0.1p each (2020: 1,395,476 ordinary shares of 0.1p each) in the Company held by the EBT at 31 December 2021 as they are, together with other employees, potential beneciaries of the EBT. • The Directors’ benecial holdings represented 0.24% of the Company’s shares in issue as at 31 December 2021 (2020: 0.23%), excluding shares held in treasury. • There have been no changes to the share interests of continuing Directors between the year-end and the date of this report. Share ownership guidelines (audited) Executive Director share ownership guidelines are set out in the Remuneration Policy on the Company’s website. The interests of the Executive Directors in oce at 31 December 2021 in the share capital of the Company as a percentage of base salary were as follows: Base salary 1 January 2022 Number of shares held benecially at 31 December 2021 Number of vested, unexercised share awards Value of shares at 31 December 2021 (1) Value of shares as a % of base salary Guideline met (200% of salary) Executive Directors Peter Brooks–Johnson £531,196 2,017,302 0 £16,037,551 3,019% Yes Alison Dolan £405,717 0 0 £0 0% No (2) (1) Based on the closing share price on 31 December 2021: £7.95 per share; multiplied by the number of benecially owned shares plus vested share awards and shares under awards no longer subject to performance on a net of tax basis. (2) Executive Directors are required to retain at least half of any share awards vesting or exercised (after selling sucient shares to meet the exercise price and to pay any tax liabilities due) until they have met the shareholding guideline. Governance | Directors’ remuneration report continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 97 Payments to past Directors and payments for loss of oce There were no payments to past Directors for loss of oce during 2021. Details of outstanding share awards for Robyn Perriss, our former Finance Director who stepped down from the Board on 30June 2020 are detailed below. Outstanding awards will vest in line with performance conditions for the PSP and the normal vesting dates for DSP and PSP awards. Rightmove Performance Share Plan (PSP) Unvested PSP awards were pro-rated for time elapsed from the date of grant to 30 June 2020 and vest on the original vesting dates. Details of the 2018 PSP award which vested in 2021 and was exercised at a market value of £6.24. The 2019 PSP award that will vest in 2022 has been prorated for time and 25% performance. Details of both Awards are set out in the table below. Award Date Performance Period Normal Vesting Date Award (number of shares) Pro–rated award (number of shares) 28 February 2018 1 January 2018 to 31December 2020 28 February 2021 152,490 30,420 (1) 6 March 2019 1 January 2019 to 31December 2021 6 March 2022 147,056 16,739 (2) All awards are subject to EPS and TSR performance conditions on vesting before dividend roll-up is applied. (1) Pro-rated by 28/36 for time elapsed from grant and by 25% for performance including 769 shares for dividend roll up. (2) Pro-rated by 16/36 for time elapsed from grant and by 25% for performance including 399 shares for dividend roll up. Rightmove Deferred Share Bonus Plan (DSP) DSP awards granted in respect of prior years’ performance will vest or vested in full on the original vesting dates and be exercisable for 12 months. Award Date Performance Period Normal Vesting Date Award (number of shares) 6 March 2019 1 January 2018 to 31 December 2018 6 March 2021 40,579 (1) 4 March 2020 1 January 2019 to 31 December 2019 4 March 2022 28,213 (1) The deferred shares granted under the DSP on 6 March 2019 vested in March 2021. Robyn Perriss exercised the nil cost option over 40,579 shares on 8 June 2021 and sold all the shares at an average market price of £6.24 per share Details of Robyn’s salary, benets and cash bonus for 2020 are shown in the 2020 Directors’ Single Figure Remuneration Table above. ![]() 98 | Rightmove plc | Annual Report 2021 TSR Graph – ten years Dec 18 Dec 19 Dec 20 Dec 21 +23% +26% +88% Source: Thomson Reuters Source: Thomson Reuters Rightmove FTSE 100 FTSE 350 Rightmove FTSE 100 FTSE 350 This graph shows the value, by 31 December 2021, of £100 invested in Rightmove on 31 December 2018, compared with the value of £100 invested in the FTSE 100 and the FTSE 350 Indices on a daily basis. This graph shows the value, by 31 December 2021, of £100 invested in Rightmove on 31 December 2011, compared with the value of £100 invested in the FTSE 100 and the FTSE 350 Indices on a daily basis. Dec 13 Dec 12 Dec 11 Dec 14 Dec 15 Dec 16 Dec 19 Dec 20 Dec 21 Dec 18 Dec 17 +107% +615% 60 80 100 120 140 160 180 200 0 100 200 300 400 500 600 700 800 +94% TSR Graph – three years Dec 18 Dec 19 Dec 20 Dec 21 +23% +26% +88% Source: Thomson Reuters Source: Thomson Reuters Rightmove FTSE 100 FTSE 350 Rightmove FTSE 100 FTSE 350 This graph shows the value, by 31 December 2021, of £100 invested in Rightmove on 31 December 2018, compared with the value of £100 invested in the FTSE 100 and the FTSE 350 Indices on a daily basis. This graph shows the value, by 31 December 2021, of £100 invested in Rightmove on 31 December 2011, compared with the value of £100 invested in the FTSE 100 and the FTSE 350 Indices on a daily basis. Dec 13 Dec 12 Dec 11 Dec 14 Dec 15 Dec 16 Dec 19 Dec 20 Dec 21 Dec 18 Dec 17 +107% +615% 60 80 100 120 140 160 180 200 0 100 200 300 400 500 600 700 800 +94% Review of past performance Share price performance The Company’s share price ended the year at £7.95, up 22% year on year, compared to the FTSE 100 Index and the FTSE 350 Indices which were both up 14%. On a three-year basis the share price has increased by 84% and the FTSE 100 and FTSE 350 Indices rose by 10% and 14% respectively. Rightmove’s Total Shareholder Return performance relative to those indices over three and ten years is shown in the graphs below. Total shareholder return (TSR) The rst graph below compares the TSR of Rightmove’s shares against the FTSE 100 Index and the FTSE 350 Index for the three- year period from 1 January 2019 to 31 December 2021. TSR is the product of movements in the share price plus dividends reinvested on the ex-dividend date. TSR provides a useful, widely used benchmark to illustrate the Company’s performance over the last three years. Specically, it illustrates the value of £100 invested in Rightmove’s shares and in the FTSE 100 Index and the FTSE 350 Index over that period. As required by the Act, the Company’s TSR performance is shown against a recognised broad-based share index; the FTSE 100 and the FTSE 350 indices are both considered appropriate comparators. The graphs below illustrate, for statutory purposes, the TSR of Rightmove’s shares against the FTSE 100 Index and the FTSE 350 Index for the three and ten years to 31 December 2021. Governance | Directors’ remuneration report continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 99 Total remuneration for the Chief Executive Ocer The table below shows the total remuneration gure for the Chief Executive Ocer over a ten-year performance period. Thetotal remuneration gure includes the annual bonus and long-term incentive awards that vested based on performance in those years. Year Executive Total single gure £ Annual bonus outturn (% of maximum) Long–term incentive outturn (% of maximum) 2021 Peter Brooks-Johnson 1,673,673 84% 25% 2020 Peter Brooks-Johnson 960,827 18.5% 25% 2019 Peter Brooks-Johnson 2,155,759 65% 85% 2018 Peter Brooks-Johnson 1,490,178 78% 67% 2017 Peter Brooks-Johnson (1) 504,557 60% 100% Nick McKittrick (1) 1,223,443 n/a 100% 2016 Nick McKittrick 2,126,923 92% 100% 2015 Nick McKittrick 2,300,349 100% 100% 2014 Nick McKittrick 1,599,610 70% 92% 2013 Nick McKittrick 531,371 85% 100% Ed Williams (2) 1,531,515 n/a 100% 2012 Ed Williams 2,219,882 90% 100% (1) Nick McKittrick was Chief Executive Ocer and a Director until 9 May 2017 and retired from Rightmove on 30 June 2017. Peter Brooks-Johnson was appointed ChiefExecutive Ocer on 9 May 2017. (2) Ed Williams was Chief Executive Ocer until his retirement on 30 April 2013. Nick McKittrick was appointed Chief Executive Ocer at this time.. Percentage change in the remuneration of Directors compared with employees The table below sets out the percentage change in the remuneration of all the Directors of the Company compared with the average of all employees between 2020 and 2021, based on the gures shown in the single gure tables above. % increase/(decrease) in remuneration of the Directors compared with the average of all employees between 2020 and 2021 Actual increase in salary or fees Increase in contractual salary or fees (1) Benets Bonus Peter Brooks-Johnson (1) 8.0% 1.0% -2.4% 358.6% Alison Dolan (2) 217.4% 1.0% 1,112.0% 1,319.5% Andrew Fisher (1) 8.0% 1.0% – – Jacqueline de Rojas (3) 16.9% 9.3% – – Andrew Findlay (1) 8.0% 1.0% – – Rakhi Goss-Custard (1) 8.0% 1.0% – – Lorna Tilbian (1) 8.0% 1.0% – – Amit Tiwari (1) 8.0% 1.0% – – Employees 6.2% 1.3% 7.8% -4.3% (1) Directors volunteered a 20% reduction in their salaries and fees for four months from April to July 2020. Directors’ salaries and fees increased by 1% on 1 January 2021, a pay rise that applied to all Group employees. (2) Alison Dolan was appointed to the Board on 7 September 2020, earned four months’ salary and was enrolled for one month’s benets (including pension) in 2020, compared to 12 months in 2021. Her salary increased by 1%, which applied to all Group employees’ salaries. Alison’s 2020 bonus was pro-rated for time and 18.5% of the maximum payable for performance, compared with a bonus payout of 84% of the maximum for the full year 2021. (3) The fee for our Senior Independent Director, Jacqueline de Rojas, increased from £5,000 to £10,000 per annum from January 2021. Her Non-Executive Director fee increased by 1%, which applied to all Group employees’ salaries. ![]() 100 | Rightmove plc | Annual Report 2021 Pay ratio information in relation to the total remuneration of the Chief Executive Ocer The table below shows the total remuneration of our Chief Executive Ocer compared to the equivalent remuneration for our employees, who are all based in the UK. We have calculated the full-time equivalent remuneration for all Group employees using the Government’s preferred Option A and identied the total remuneration gure at the 25 th , 50 th and 75 th percentile. We then compared each percentile gure against our CEO’s single gure for total remuneration to determine the pay ratios set out below. All employees Year Method CEO’s total remuneration (1) 25 th percentile Median 75 th percentile 25 th percentile pay ratio Median pay ratio 75 th percentile pay ratio 2021 Option A 1,673,673 (2) 26,730 49,386 72,203 63 34 23 2020 Option A 960,827 29,854 51,155 73,266 32 19 13 (1) The CEO’s total remuneration comprises salary, benets, bonus and the value of long-term incentives, including PSP awards. The 2020 total remuneration gure has been restated for vested PSP and Sharesave awards. (2) £125,188 of the CEO’s remuneration was attributable to share price growth in respect of the PSP award granted in 2019. The share price was £4.89 at the grant date of the 2019 PSP award, and increased to £7.28 being the average share price for the 3 months ending 31 December 2021. Relative importance of the spend on pay The table below shows the total pay for all Rightmove’s employees compared to other key nancial indicators. Additional information on the number of employees, total revenue and operating prot has been provided for context. Year ended 31 December 2021 Year ended 31 December 2020 Year ended 31 December 2019 % change Employee costs (refer Note 7) £37,974,000 £34,832,000 9% Dividends paid to shareholders (refer Note 12) (1) £64,494,000 £0 £60,173,000 7% Purchase of own shares (refer Note 23) £174,369,000 £30,125,000 479% Income tax (refer Note 10) £42,555,000 £25,040,000 70% Average number of employees (refer Note 7) (2) 572 558 3% Revenue £304,886,000 £205,717,000 48% Operating prot £226,100,000 £135,142,000 67% (1) No dividends were paid in 2020; the percentage increase in dividends paid between 2019 and 2021 is shown as the best comparison. (2) The average number of employees includes Executive Directors and Group employees. Application of Policy for the year ending 31 December 2022 Salaries The Executive Directors’ salaries for the 2022 nancial year are set out in the table below: Salary 1 January 2022 Salary 31 December 2021 Change Executive Directors Peter Brooks-Johnson £531,196 £515,724 3% Alison Dolan £405,717 £393,900 3% The 3% increase in base salaries for Executive Directors is in line with the increase applied to other Group employees for 2022. Executive salaries remain below the market median for executives in comparable companies. All employee salaries are subject to annual review and market adjustments as appropriate; the Committee also approves salaries for the Senior Leadership Team and other key roles. Pension and other benets The Group operates a stakeholder pension plan for all employees (including Executive Directors under the same terms) under which Rightmove contributes 6% of base salary, subject to the employee contributing a minimum of 3% of base salary. Alison Dolan, CFO participated in the pension plan during the year. The Company did not contribute to any personal pension arrangements. The Executive Directors are enrolled on the same terms as all employees in the Group’s private medical insurance scheme, the medical cash plan and receive life assurance cover equal to four times base salary. Governance | Directors’ remuneration report continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 101 Annual bonus The annual bonus for the 2022 nancial year will be consistent with the 2020 Remuneration Policy, in terms of maximum bonus opportunity (175% of base salary), deferral (40% cash and 60% shares) and malus and clawback provisions. The mechanism through which the clawback can be implemented (enabling both the recovery and withholding of incentive pay) enables the Committee to: (i) reduce the cash bonus earned in a subsequent year and/or reduce outstanding DSP/PSP share awards (i.e. withholding provisions may be used to eect a recovery); or (ii) for the Committee to require that a net of tax balancing cash payment be made to the Company. The performance measures for 2022 have been selected to reect a range of nancial and strategic targets that support Rightmove’s key objectives. The Committee will continue to use underlying operating prot as an appropriate performance measure for 2022 bonus awards, because it excludes share-based incentive costs and the related national insurance payments. The performance measures and weightings for the 2022 nancial year are as follows: Measure As a % of maximum bonus opportunity Financial target Underlying operating prot (1) 60% Strategic targets Trac market share (2) 15% Rental services (3) 10% Financial Services (4) 10% Employee engagement (5) 5% (1) Underlying operating prot is dened as operating prot before share-based payments charges (including the related National Insurance). (2) Time in minutes spent on Rightmove platforms, measured by Comscore, relative to our nearest competitors (Zoopla.co.uk and PrimeLocation.com). (3) Based on number of references delivered by Rental Services. (4) Based on volume of Mortgage outcomes delivered by Rightmove Financial Services. (5) Based on the results of the annual employee engagement survey. In relation to the nancial target a challenging sliding scale will operate with 10% of the maximum bonus opportunity payable at the threshold operating prot target relative to the 2022 business plan through to 100% payable for signicant outperformance relative to the plan. The performance measures have changed from 2021, reecting the Group’s strategic focus on its Mortgage proposition and Rental Services. The nancial target weighting is 60% for underlying operating prot and 40% for key operational performance indicators (trac, references, mortgages and employee engagement). The new operational targets are designed to directly drive revenue. The specic nancial targets for the 2022 nancial year are considered to be commercially sensitive. However, retrospective disclosure of the actual targets and performance against them will be provided as usual in the 2022 Remuneration Report, to the extent that they do not remain commercially sensitive at that time. Long-term incentives Awards to Executive Directors under the PSP in 2022 will be consistent with the 2020 Remuneration Policy, with a maximum bonus opportunity of 175% of base salary. The awards will again be subject to a mixture of EPS (50%) and relative TSR (50%) performance conditions and subject to a two year post-vesting holding period. The 2022 targets are as follows: EPS performance condition The Group’s EPS growth will be measured over the period of three nancial years (2022 to 2024). The EPS gure used will be equivalent to the Group’s underlying EPS (1) . With a view to ensuring appropriately stretching but achievable targets are set in light of market expectations for the Group, the following range of targets will apply to the 2022 awards: Underlying EPS growth from 2022 to 2024 (2) % of award vesting (maximum 50%) Less than 38% 0% 38% 12.5% 44% 50% Between 38% and 44% Straight–line vesting (1) Underlying earnings per share is dened as underlying prot (prot for the year before share-based payments charges, including the related National Insurance and appropriate tax adjustments), divided by the weighted average number of ordinary shares in issue for the period. (2) The benchmark underlying EPS for the nancial year 2021 from which these targets will be measured is 21.8p. The targets that are intended to operate for the 2022 PSP awards are considered to be demanding in light of the current trading environment, the Group's starting position, internal nancial planning and external market expectations for future growth. The Committee is satised that the range of targets remain appropriately demanding, and no less challenging than the range of targets set for prior year awards. ![]() 102 | Rightmove plc | Annual Report 2021 Relative TSR performance condition The vesting schedule for the relative TSR element of Executive Directors’ 2022 PSP awards is set out below. Relative TSR will be assessed against the FTSE 350 Index, reecting the Company’s size in terms of market capitalisation. Performance will be measured over three nancial years. TSR performance of the Company relative to the FTSE 350 Index (1) % of award vesting (maximum 50%) Less than the Index 0% Equal to the Index 12.5% 25% higher than the Index 50% Intermediate performance Straight–line vesting (1) If the FTSE 350 Index’s TSR was 50% over the three-year performance period, then the Company’s TSR would have to be at least 75% for all 50% of the PSP shares to vest. Chair and Non–Executive Directors’ fees The Chair’s and Non-Executive Directors’ fees for 2022 are set out in the table below: Role 2021 Fees £ 2022 Fees £ Chair 202,000 208,060 Non–Executive Director (basic fee) 55,550 57,217 Committee Chair (excluding the Nomination Committee) 15,150 15,605 Senior Independent Director 10,000 10,300 The 3% increase in fees for the Non-Executive Directors is in line with the increase applied to other Group employees for 2022. Details of the fees paid to Directors in 2021 can be found earlier in this report. Governance | Directors’ remuneration report continued Shareholder voting on the Remuneration Policy and Annual Report At the AGM on 7 May 2021, shareholders again voted overwhelmingly in favour of the Directors’ Remuneration Report, demonstrating a strong level of shareholder support for Rightmove’s management and their remuneration. The table below shows full details of the voting outcomes for the Directors’ Remuneration Report at the 2021 AGM and the Remuneration Policy at the 2020 AGM: Votes for % Votes for Votes against % Votes against Votes withheld (1) Directors’ Remuneration Report 650,959,737 94.40 38,616,588 5.60 10,025,867 Remuneration Policy (2020) 684,058,225 96.08 27,900,733 3.92 793,538 (1) A vote withheld is not a vote in law and is not counted in the calculation of the proportion of votes cast ‘For’ and ‘Against’ a resolution. In line with the Company’s commitment to ongoing dialogue with its shareholders, the Committee has corresponded with major shareholders to invite their feedback on the 2022 remuneration proposals. ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 103 The Directors submit their report together with the audited nancial statements for the Company (Number: 06426485) and its subsidiary companies (the Group) for the year ended 31December 2021. The Directors’ Report includes these pages, the sections of the Annual Report referred to in the Corporate Governance statement and other information below which are all incorporated into the Directors’ Report by reference. The Board has included certain disclosures in the Strategic Report in accordance with section 414C(11) of the Companies Act 2006 (the Act). Corporate governance statement The Disclosure, Transparency and Guidance Rules (DTR) require certain information to be included in a corporate governance statement in the Directors’ Report. Information that fulls these requirements can be found in the Corporate Governance Report and is incorporated into the Directors’ Report by reference. Strategic Report The Strategic Report can be found on pages 1 to 61. The Act requires this Annual Report to present a fair, balanced and understandable view of Rightmove’s business during the year ended 31 December 2021 and of the position of the Group at the end of the nancial period, together with a description of the principal risks and uncertainties facing the business. For the purposes of compliance with DTR 4.1 the required content of the management report can be found in the Strategic Report and this Directors’ Report, including the sections of the Annual Report incorporated by reference. Directors’ Duties A statement of how the Directors have had regard to the need to foster the Company’s business relationships with suppliers, customers and others, and the eect of that regard, including on principal decisions taken by the Company, can be found in the Section 172 Statement (Working with our Stakeholders) in the Strategic Report. Directors The Directors of the Company as at the date of this report are Andrew Fisher, Peter Brooks-Johnson, Alison Dolan, Jacqueline de Rojas, Andrew Findlay, Rakhi Goss-Custard, Lorna Tilbian and Amit Tiwari. Biographies of each Director can be found in the Corporate Governance Report. Governance | Directors’ report Share capital and Shareholder Voting Rights The shares in issue, including 12,480,472 shares of 0.1p held in treasury (2020: 13,285,490 shares) at the year-end, amounted to 859,678,232 shares of 0.1p (2020: 886,387,616 shares), with a nominal value of £859,678 (2020: £886,388). The rights and obligations attached to each 0.1p ordinary share are as set out in the Company’s Articles of Association. The holders of each ordinary share in the Company are entitled to receive dividends as declared from time to time and are entitled to one vote per share at general meetings of the Company. Other than the usual regulations applicable for UK listed companies, there are no restrictions on the transfer of the Company’s shares. Results and dividends The Group reported operating prot before tax for the year of £226.1m (2020: £135.1m). The Directors are recommending a nal dividend for the year of 4.8p per share (2020: 4.5p) amounting to £40.4m (2020: £38.9m). The interim dividend for 2021 was 3p per share (2020: Nil) bringing the total dividend for the year to 7.8p per share (2020: 4.5p). Subject to shareholder approval at the Annual General Meeting (AGM) on 6 May 2022, the nal dividend will be paid on 27 May 2022 to shareholders on the register of members at the close of business on 29 April 2022. Share buyback The Company’s share buyback programme resumed in March 2021 and of the 10% authority granted by shareholders at the 2021 AGM, a total of 26,709,384 shares (2020: 5,028,392 shares) were purchased in the year to 31 December 2021, being 3.1% (2020: 0.6%) of the shares in issue (excluding shares held in treasury) at the time the authority was granted. The average price paid per share was £6.53 (2020: £5.99 per share) with a total consideration paid (excluding all costs) of £174,369,302 (2020: £30,124,778). Since January 2008, 459,375,838 shares have been purchased in total; 12,480,472 shares of 0.1p were held in treasury as at 31 December 2021, the remainder of which were cancelled. A resolution seeking to renew this authority will be put to shareholders at the AGM on 6 May 2022. ![]() 104 | Rightmove plc | Annual Report 2021 The resolutions being proposed at the 2022 AGM include the appointment of a new Auditor (EY LLP), the renewal for a further year of the limited authority of the Directors to allot unissued share capital of the Company and to issue shares for cash other than to existing shareholders (in line with the Pre- Emption Group’s Statement of Principles), and a resolution to renew the Directors’ authority to purchase a proportion of the Company’s own shares. The Company will again seek shareholder approval to hold general meetings (other than AGMs) at 14 days’ notice. Resolutions will be proposed to renew these authorities, which would otherwise expire at the 2022 AGM. Auditor KPMG LLP will resign and Ernst & Young LLP (EY) will be appointed as the auditor of the Group, subject to shareholder approval at the AGM. In accordance with section 489 of the Act, separate resolutions for the appointment of EY and for the Audit Committee to determine the auditor’s remuneration will be proposed at the 2022 AGM. Audit information So far as the Directors in oce at the date of this report are aware, there is no relevant audit information of which the auditor is unaware and each Director has taken all reasonable steps to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. Substantial shareholdings As at the date of this report, the following benecial interests in 3% or more of the Company’s issued ordinary share capital (excluding shares held in treasury) held on behalf of the organisations shown in the table below, had been notied to the Company pursuant to DTR 5.1. The information provided below was correct as at the date of notication, where indicated this was not in the 2021 nancial year. It should be noted that these holdings are likely to have changed since they were notied to the Company. However, notication of any change is not required until the next applicable threshold is crossed. Shares held in trust As at 31 December 2021, 1,158,418 shares (2020: 1,395,476 shares) were held by The Rightmove Employees’ Share Trust (EBT) for the benet of Group employees. These shares had a nominal value at 31 December 2021 of £1,158 (2020: £1,395) and a market value of £9,209,423 (2020: £9,084,549). The shares held by the EBT may be used to satisfy share-based incentives for the Group’s employee share plans. During 2021, 237,058 shares (2020: 817,714 shares) were transferred to Group employees following the exercise of share options under the Sharesave plan and the Restricted Share Plan. Additionally, 148,147 shares (2020: 113,465 shares) were purchased by the EBT for transfer to the Rightmove Share Incentive Plan Trust (SIP). The terms of the EBT provide that dividends payable on the shares held by the EBT are waived. In addition, 20,278 shares of 0.1p (2020: Nil) were purchased by the SIP to partly satisfy the all employee Free Share Award in December 2021. As at 31 December 2021, 787,000 shares (2020: 757,575 shares) were held by the SIP for the benet of Group employees. These shares had a nominal value at 31December 2021 of £787 (2020: £758) and a market value of £6,256,650 (2020: £4,931,813). The shares held by the SIP are awarded as free shares to eligible employees each year and are held in trust for a period of three years before an employee is entitled to take ownership of the shares. During the year, 139,000 shares (2020: 141,020 shares) were transferred to Group employees under the SIP rules. Research and development The Group undertakes research and development activity in order to develop new products and to continually improve the existing property platforms. Further details are disclosed in Note 2 to the nancial statements. Political and charitable donations During the year the Group did not make donations to any political party or other political organisation and did not incur any political expenditure within the meanings of sections 362 to 379 of the Act (2020: £nil). Details of the Group’s charitable donations are set out in the Sustainability Report. Annual General Meeting The AGM of the Company will be held at the oces of UBS, 5 Broadgate, London EC2M 2QS on 6 May 2022 at 10am. The Notice of Annual General Meeting will be published in March 2022. Governance | Directors’ report continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 105 Shareholder Nature of holding Total voting rights % of total voting rights (1) Kayne Anderson Rudnick Investment Management, LLC Direct American Depository Receipts 67,322,525 34,121,006 7.95% 4.03% BlackRock Inc (2) Indirect Contracts for dierence Stock Lending 50,160,300 5,473,130 16,304,460 5.92% 0.65% 1.92% Marathon Asset Management LLP Indirect 42,877,709 5.06% Baillie Giord & Co (2) Indirect 58,736,140 6.93% Standard Life Aberdeen (2) Indirect 45,307,190 5.35% Generation Investment Management LLP (2) Indirect 45,181,680 5.33% Axa Investment Managers SA (2) Indirect Contracts for dierence 44,413,780 376,620 5.24% 0.04% (1) The above percentages are based upon the voting rights share capital (being the shares in issue less shares held in treasury) of 847,197,760 as at 25 February 2022. (2) Date of notication preceded the 2021 nancial year. Articles of association Any amendment to the Articles may be made in accordance with the provisions of applicable English law concerning companies, specically the Act (as amended from time to time), by way of special resolution at a general meeting of the shareholders. Compensation for loss of oce There are no additional agreements between the Company and its Directors or employees providing for compensation for loss of oce or employment that occurs because of a takeover bid, except that provisions of the Company’s share plans may allow options and awards granted to Directors and employees to vest on a takeover. Transactions with Related Parties During the year under review neither the Company nor its subsidiaries entered into any material transactions with any related parties, other than those disclosed in Note 28 to the nancial statements. Post-balance sheet events There have been no balance sheet events since the end of the 2021 nancial year. Branches Neither the Company nor its subsidiaries have branches outside the UK. Other Information Information Location in Annual Report Financial instruments and nancial risk management Notes 3 and 26, Financial Statements Appointment, removal and powers of Directors Corporate Governance Report Future developments of the Group’s business Strategic Report (1) Employee engagement Strategic Report: Sustainability Report (1) Employee share schemes Strategic Report: Sustainability Report (1) and Directors’ Remuneration Report Health and safety and employee-related policies including diversity and disability Strategic Report: Sustainability Report (1) Movements in share capital Note 23, Financial Statements Share-based incentives Note 25, Financial Statements Long-term incentive plans Directors’ Remuneration Report Energy and Greenhouse Gas Report Strategic Report: Sustainability Report (1) Fair, balanced and understandable Audit Committee report and Directors’ statement of responsibilities Directors’ indemnities Corporate Governance Report (1) The Board has taken advantage of section 414C(11) of the Act to include disclosures in the Strategic Report on the items indicated above. The Directors’ Report was approved by the Board on 25February 2022. Signed on behalf of the Board: Peter Brooks-Johnson Chief Executive Ocer 25 February 2022 ![]() 106 | Rightmove plc | Annual Report 2021 Governance | Directors’ responsibilities statement Statement of Directors’ responsibilities in respect of the annual report and the nancial statements The directors are responsible for preparing the Annual Report and the Group and parent Company nancial statements in accordance with applicable law and regulations. Company law requires the directors to prepare Group and parent Company nancial statements for each nancial year. Under that law they are required to prepare the Group nancial statements in accordance with UK-adopted international accounting standards and applicable law and have elected to prepare the parent Company nancial statements on the same basis. In addition, the Group nancial statements are required under the UK Disclosure Guidance and Transparency Rules to be prepared in accordance with International Financial Reporting Standards. Under company law the directors must not approve the nancial statements unless they are satised that they give a true and fair view of the state of aairs of the Group and parent Company and of the Group’s prot or loss for that period. In preparing each of the Group and parent Company nancial statements, the directors are required to: • select suitable accounting policies and then apply them consistently; • make judgements and estimates that are reasonable, relevant and reliable; • state whether they have been prepared in accordance with UK-adopted international accounting standards; • assess the Group and parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and • use the going concern basis of accounting unless they either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so. The directors are responsible for keeping adequate accounting records that are sucient to show and explain the parent Company’s transactions and disclose with reasonable accuracy at any time the nancial position of the parent Company and enable them to ensure that its nancial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of nancial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities. Under applicable law and regulations, the directors are also responsible for preparing a Strategic Report, Directors’ Report, Directors’ Remuneration Report and Corporate Governance Statement that complies with that law and those regulations. The directors are responsible for the maintenance and integrity of the corporate and nancial information included on the company’s website. Legislation in the UK governing the preparation and dissemination of nancial statements may dier from legislation in other jurisdictions. Responsibility statement of the directors in respect of the annual nancial report We conrm that to the best of our knowledge: • the nancial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, nancial position and prot or loss of the company and the undertakings included in the consolidation taken as a whole; and • the strategic report/directors’ report includes a fair review of the development and performance of the business and the position of the issuer and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face. We consider the annual report and accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Group’s position and performance, business model and strategy. Signed on behalf of the Board: Peter Brooks-Johnson Chief Executive Ocer 25 February 2022 Alison Dolan Chief Financial Ocer ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 107 Governance | Independent auditor’s report to the members of Rightmove plc 1. Our opinion is unmodied We have audited the nancial statements of Rightmove plc (“the Company”) for the year ended 31 December 2021 which comprise the Consolidated statement of comprehensive income, Consolidated statement of nancial position, company statement of nancial position, Consolidated statement of cash ows, Company statement of cash ows, Consolidated statement of changes in shareholders’ equity and Company statement of changes in shareholders’ equity, and the related notes, including the accounting policies. In our opinion: • the nancial statements give a true and fair view of the state of the Group’s and of the parent Company’s aairs as at 31 December 2021 and of the Group’s prot for the year then ended; • the Group nancial statements have been properly prepared in accordance with UK-adopted international accounting standards; • the parent Company nancial statements have been properly prepared in accordance with UK-adopted international accounting standards and as applied in accordance with the provisions of the Companies Act 2006; and • the nancial statements have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We believe that the audit evidence we have obtained is a sucient and appropriate basis for our opinion. Our audit opinion is consistent with our report to the audit committee. We were rst appointed as auditor by the directors to the Group’s previous holding company, prior to becoming a public interest entity, for the nancial period ended 31 December 2000. The period of total uninterrupted engagement is for the 16 nancial years ended 31 December 2021 as a public interest entity and 22 years in total. We have fullled our ethical responsibilities under, and we remain independent of the Group in accordance with, UK ethical requirements including the FRC Ethical Standard as applied to listed public interest entities. No non-audit services prohibited by that standard were provided. Overview Materiality: Group nancial statements as a whole £9.3m (2020: £5.8m) 4.1% (2020: 4.3%) of prot before tax Coverage 99.6% (2020: 99.8%) of group prot before tax Key audit matters vs 2020 Recurring risks Agency and New Homes revenue recognition  Recoverability of parent Company’s investment in subsidiaries 2. Key audit matters: our assessment of risks of material misstatement Key audit matters are those matters that, in our professional judgement, were of most signicance in the audit of the nancial statements and include the most signicant assessed risks of material misstatement (whether or not due to fraud) identied by us, including those which had the greatest eect on: the overall audit strategy; the allocation of resources in the audit; and directing the eorts of the engagement team. We summarise below the key audit matters (unchanged from 2020), in decreasing order of audit signicance, in arriving at our audit opinion above, together with our key audit procedures to address those matters and, as required for public interest entities, our results from those procedures. These matters were addressed, and our results are based on procedures undertaken, in the context of, and solely for the purpose of, our audit of the nancial statements as a whole, and in forming our opinion thereon, and consequently are incidental to that opinion, and we do not provide a separate opinion on these matters. ![]() 108 | Rightmove plc | Annual Report 2021 Governance | Auditor's report continued The risk Our response Agency and New Homes revenue recognition Processing error: The key revenue streams, being Agency and New Homes, consist of subscription fees and customer spend on additional advertising products in respect of properties listed on Rightmove platforms. There are a variety of packages and membership oers available and customers are able to tailor both the specic add-on products (purchased in addition to the subscribed membership package) and the volume of these that they receive. The variability of product and pricing combinations available to customers, creates a risk of pricing processing error, in particular revenue being recognised at the incorrect amount. In addition, revenue is the most material gure in the nancial statements and is considered to be a main driver of results, and as such has the greatest eect on our allocation of resources in planning the audit. Our procedures included: We performed the detailed tests below rather than seeking to rely on any of the Group's controls because our existing knowledge of related IT controls indicated that we would not be able to obtain the required evidence to support reliance on controls. Test of detail: Using statistical sampling we selected revenue transactions recorded throughout the year. We agreed a sample through to source documentation in order to assess whether revenue had been recognised in line with the products and rates agreed by the customer. Test of detail: For a sample of the highest revenue generating customers, we inspected contracts signed in the year, to assess whether revenue had been recognised in accordance with the specic contract terms and conditions. We also compared the standard packages against the revenue recognition policy. Test of detail: We inspected a sample of credit notes raised during the year and post year end to determine whether they related to revenue recognised in the year. Test of detail: We obtained all journals posted in respect of revenue and, using computer assisted audit techniques, analysed these to identify whether there were any entries which were unexpected based upon the specic characteristics of the journal, considering in particular whether the opposite side of the journal entry was as expected, based on our business understanding. We tested a sample of journal entries back to supporting evidence to assess whether revenue had been recognised appropriately. Our results We found no exceptions performing the procedures described above (2020: We found no exceptions performing the procedures described). (£274.5m; 2020: £182.3m) Refer to page 74 (Audit Committee Report), page 123 to 124 (accounting policy) and page 133, note 5 (nancial disclosure) Recoverability of parent Company’s investment in subsidiaries (£560.7m; 2020: £557.6m) Refer to page 74 (Audit committee Report), page 125 (accounting policy) and page 140, note 15 (nancial disclosures) Low risk, high value: The carrying amount of the parent Company’s investments in the subsidiary company Rightmove Group Limited represents 99.9% (2020: 99.9%) of the Company’s total assets. Its recoverability is not at a high risk of signicant misstatement or subject to signicant judgement. However, due to its materiality in the context of the parent company nancial statements, this is considered to be the area that will have the greatest eect on our overall parent company audit. We performed the tests below rather than seeking to rely on any of the Company’s controls because the nature of the balance is such that we would expect to obtain audit evidence primarily through the detailed procedures described. Our procedures included: Comparing valuations: Comparing the carrying amount of the investment to the market capitalisation of the Group, as Rightmove Group Limited contains all of the Group’s trading operations to ascertain whether there were any indicators of impairment. Our results We found the Company’s conclusion that there is no impairment of its investments in subsidiaries to be acceptable (2020: acceptable). ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 109 3. Our application of materiality and an overview of the scope of our audit Materiality for the Group nancial statements as a whole was set at £9.3m (2020: £5.8m), determined with reference to a benchmark of Group prot before tax, of which it represents 4.1% (2020: 4.3%). Materiality for the parent company nancial statements as a whole was set at £6.975m (2020: £4.4m), determined with reference to a benchmark of Company net assets, of which it represents 1.3% (2020: 1.1%). In line with our audit methodology, our procedures on individual account balances and disclosures were performed to a lower threshold, performance materiality, so as to reduce to an acceptable level the risk that individually immaterial misstatements in individual account balances add up to a material amount across the nancial statements as a whole. Performance materiality for the Group and parent company was set at 75% (2020: 75%) of materiality for the nancial statements as a whole, which equates to £6.975m (2020: £4.4m) for the group and £5.23m (2020: £3.2m) for the parent company. We applied this percentage in our determination of performance materiality because we did not identify any factors indicating an elevated level of risk. We agreed to report to the Audit Committee any corrected or uncorrected identied misstatements exceeding £0.465m (2020: £0.29m), in addition to other identied misstatements that warranted reporting on qualitative grounds. Of the Group's four (2020: four) reporting components, we subjected two (2020: two) to full scope audits for Group purposes. All components are audited by the Group audit team. There are no specic risks that are material to the Group in the components not in Group scope. The components within the scope of our work accounted for the percentages illustrated opposite. The scope of the audit work performed was predominately substantive as we placed limited reliance upon the Group’s internal control over nancial reporting. Group prot before tax £225.6m (2020:£134.8m) Group pbt Group materiality Group materiality £9.3m (2020: £5.8m) £9.3m Whole nancial statements materiality (2020: £5.8m) £6.975m Whole nancial statements performance materiality (2020:£4.4m) £6.975m Component materiality (2020: £4.4m) £0.465m Misstatements reported to the audit committee (2020: £0.29m) Full scope for Group audit purposes 2021 Full scope for Group audit purposes 2020 Residual components Group revenue 99% (2020: 98.5%) 99 Group total assets 97% (2020: 98.7%) 98.7 97 Group prot before tax 99.6% (2020: 99.8%) 99.6 3 1.3 0.4 0.2 1 99.8 1.5 98.5 ![]() 110 | Rightmove plc | Annual Report 2021 Governance | Auditor’s report continued 4. The impact of climate change on our audit We considered the potential impacts of climate change on the nancial statements as part of planning our audit. Taking into account the nature of the business operations, the relatively low level of long term assets and the solvency of the group we did not identify any risks that signicantly impact the nancial statements of the Group or our audit. We read the disclosure of climate related information in the front half of the annual report and considered consistency with the nancial statements and our audit knowledge. 5. Going concern The directors have prepared the nancial statements on the going concern basis as they do not intend to liquidate the Group or the Company or to cease their operations, and as they have concluded that the Group’s and the Company’s nancial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast signicant doubt over their ability to continue as a going concern for at least a year from the date of approval of the nancial statements (“the going concern period”). We used our knowledge of the Group, its industry, and the general economic environment to identify the inherent risks to its business model and analysed how those risks might aect the Group’s nancial resources or ability to continue operations over the going concern period. The risk that we considered most likely to adversely aect the Group’s available nancial resources over this period was lower than expected revenues arising from a downturn in the housing market, increased competition and / or disruptive technology and the resultant reduction in customer activity on the Group’s website. We considered whether these risks could plausibly aect the liquidity in the going concern period by assessing the degree of downside assumption that, individually and collectively, could result in a liquidity issue, taking into account the Group’s current and projected cash and facilities (a reverse stress test). We also assessed the completeness of the going concern disclosure. Our conclusions based on this work: • we consider that the directors’ use of the going concern basis of accounting in the preparation of the nancial statements is appropriate; • we have not identied, and concur with the directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast signicant doubt on the Group’s or Company's ability to continue as a going concern for the going concern period; • we have nothing material to add or draw attention to in relation to the directors’ statement in note 1 to the nancial statements on the use of the going concern basis of accounting with no material uncertainties that may cast signicant doubt over the Group and Company’s use of that basis for the going concern period, and we found the going concern disclosure in note 1 to be acceptable; and • the related statement under the Listing Rules set out on page 33 is materially consistent with the nancial statements and our audit knowledge. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Group or the Company will continue in operation. 6. Fraud and breaches of laws and regulations – ability to detect Identifying and responding to risks of material misstatement due to fraud To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included: • Enquiring of directors, the audit committee and inspection of policy documentation as to the Group’s high-level policies and procedures to prevent and detect fraud, including the internal audit function, and the Group’s channel for “whistleblowing”, as well as whether they have knowledge of any actual, suspected or alleged fraud. • Reading Board, audit committee and remuneration committee minutes. • Considering remuneration incentive schemes and performance targets for directors and management including the EPS target for management remuneration. • Using analytical procedures to identify any usual or unexpected relationships. We communicated identied fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit. As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that Group management may be in a position to make inappropriate accounting entries. On this audit we do not believe there is a fraud risk related to revenue recognition because revenue consists of a high volume of low value transactions with no individually signicant transactions such that there is a remote chance that fraudulent revenue recognition could have a material impact on the nancial statements. Further, the revenue transactions are simple and are largely automated based on contractual prices established in the billing system which provides little opportunity to fraudulently record revenue. We did not identify any additional fraud risks. ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 111 We performed procedures including identifying journal entries and other adjustments to test for all full scope components based on risk criteria and comparing the identied entries to supporting documentation. These included those posted by senior nance management, those posted by users outside the nance function and those posted to unrelated accounts. Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations We identied areas of laws and regulations that could reasonably be expected to have a material eect on the nancial statements from our general commercial and sector experience and through discussion with the directors and other management (as required by auditing standards), and from inspection of the Group’s regulatory and legal correspondence and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations. As the Group is regulated, our assessment of risks involved gaining an understanding of the control environment including the entity’s procedures for complying with regulatory requirements. We communicated identied laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential eect of these laws and regulations on the nancial statements varies considerably. Firstly, the Group is subject to laws and regulations that directly aect the nancial statements including nancial reporting legislation (including related companies legislation), distributable prots legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related nancial statement items. Secondly, the Group is subject to many other laws and regulations where the consequences of non-compliance could have a material eect on amounts or disclosures in the nancial statements, for instance through the imposition of nes or litigation. We identied the following areas as those most likely to have such an eect: general data protection regulation, health and safety, anti-bribery, employment law, agency regulations, regulatory capital and liquidity and certain aspects of company legislation recognising the nancial and regulated nature of the some of the Group’s activities. Auditing standards limit the required audit procedures to identify non- compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. Context of the ability of the audit to detect fraud or breaches of law or regulation Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the nancial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reected in the nancial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. 7. We have nothing to report on the other information in the Annual Report The directors are responsible for the other information presented in the Annual Report together with the nancial statements. Our opinion on the nancial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether, based on our nancial statements audit work, the information therein is materially misstated or inconsistent with the nancial statements or our audit knowledge. Based solely on that work we have not identied material misstatements in the other information. Strategic report and directors’ report Based solely on our work on the other information: • we have not identied material misstatements in the strategic report and the directors’ report; • in our opinion the information given in those reports for the nancial year is consistent with the nancial statements; and • in our opinion those reports have been prepared in accordance with the Companies Act 2006. Directors’ remuneration report In our opinion the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006. ![]() 112 | Rightmove plc | Annual Report 2021 Disclosures of emerging and principal risks and longer-term viability We are required to perform procedures to identify whether there is a material inconsistency between the directors’ disclosures in respect of emerging and principal risks and the viability statement, and the nancial statements and our audit knowledge. Based on those procedures, we have nothing material to add or draw attention to in relation to: • the directors’ conrmation within the viability statement on page 33 that they have carried out a robust assessment of the emerging and principal risks facing the Group, including those that would threaten its business model, future performance, solvency and liquidity; • the principal risks and uncertainties disclosures describing these risks and how emerging risks are identied, and explaining how they are being managed and mitigated; and • the directors’ explanation in the viability statement of how they have assessed the prospects of the Group, over what period they have done so and why they considered that period to be appropriate, and their statement as to whether they have a reasonable expectation that the Group will be able to continue in operation and meet its liabilities as they fall due over the period of their assessment, including any related disclosures drawing attention to any necessary qualications or assumptions. We are also required to review the viability statement, set out on page 33 under the Listing Rules. Based on the above procedures, we have concluded that the above disclosures are materially consistent with the nancial statements and our audit knowledge. Our work is limited to assessing these matters in the context of only the knowledge acquired during our nancial statements audit. As we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of anything to report on these statements is not a guarantee as to the Group’s and Company’s longer-term viability. Corporate governance disclosures We are required to perform procedures to identify whether there is a material inconsistency between the directors’ corporate governance disclosures and the nancial statements and our audit knowledge. Based on those procedures, we have concluded that each of the following is materially consistent with the nancial statements and our audit knowledge: • the directors’ statement that they consider that the annual report and nancial statements taken as a whole is fair, balanced and understandable, and provides the information necessary for shareholders to assess the Group’s position and performance, business model and strategy; • the section of the annual report describing the work of the Audit Committee, including the signicant issues that the audit committee considered in relation to the nancial statements, and how these issues were addressed; and • the section of the annual report that describes the review of the eectiveness of the Group’s risk management and internal control systems. We are required to review the part of the Corporate Governance Report relating to the Group’s compliance with the provisions of the UK Corporate Governance Code specied by the Listing Rules for our review. We have nothing to report in this respect. 8. We have nothing to report on the other matters on which we are required to report by exception Under the Companies Act 2006, we are required to report to you if, in our opinion: • adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or • the parent Company nancial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with the accounting records and returns; or • certain disclosures of directors’ remuneration specied by law are not made; or • we have not received all the information and explanations we require for our audit. We have nothing to report in these respects. 9. Respective responsibilities Directors’ responsibilities As explained more fully in their statement set out on page 106, the directors are responsible for: the preparation of the nancial statements including being satised that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of nancial statements that are free from material misstatement, whether due to fraud or error; assessing the Group and parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so. Governance | Auditor’s report continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 113 Auditor’s responsibilities Our objectives are to obtain reasonable assurance about whether the nancial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to inuence the economic decisions of users taken on the basis of the nancial statements. A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities. 10. The purpose of our audit work and to whom we owe our responsibilities This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members, as a body, for our audit work, for this report, or for the opinions we have formed. Anna Jones (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants Milton Keynes 25 February 2022 ![]() 114 | Rightmove plc | Annual Report 2021 Note 2021 £000 2020 £000 Revenue 5 304,886 205,717 Other income 22 2,407 – Administrative expenses (81,193) (70,575) Operating prot 6 226,100 135,142   230,965 137,521   (4,865) (2,379) Financial income  20 151 Financial expenses 9 (471) (478) Net nancial expense (451) (327) Prot before tax 225,649 134,815 Income tax expense 10 (42,555) (25,040) Prot for the year being total comprehensive income 183,094 109,775 Attributable to:  183,094 109,775 Earnings per share (pence) Basic 11 21.3 12.6 Diluted 11 21.3 12.6    ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 115  Note 2021 £000 2020 £000 Non-current assets  13 11,990 13,852  14 21,141 22,112  16 2,169 2,843 Total non-current assets 35,300 38,807 Current assets  17 23,112 23,450 Contract assets 5 120 334  1,057 1,163 Money market deposits 18 5,003 – Cash and cash equivalents 18 42,985 96,690 Total current assets 72,277 121,637 Total assets 107,577 160,444 Current liabilities  19 (22,757) (18,925)  21 (2,177) (2,023)  5 (2,633) (1,570)  22 (61) (666) Total current liabilities (27,628) (23,184) Non-current liabilities  21 (8,832) (10,287)  22 (585) (2,969)  16 – (859) Total non-current liabilities (9,417) (14,115) Total liabilities (37,045) (37,299) Net assets 70,532 123,145 Equity Share capital 23 860 887 Other reserves 572 545  69,100 121,713 Total equity attributable to the equity holders of the Parent 70,532 123,145   Peter Brooks-Johnson Alison Dolan Director Director ![]() 116 | Rightmove plc | Annual Report 2021  Note 2021 £000 2020 £000 Non-current assets Investments 15 560,740 557,622  16 481 549 Total non-current assets 561,221 558,171 Total assets 561,221 558,171 Current liabilities  19 (22,981) (47,464) Total current liabilities (22,981) (47,464) Net assets 538,240 510,707 Equity Share capital 23 860 887 Other reserves 127,684 124,539  409,696 385,281 Total equity attributable to the equity holders of the Parent 538,240 510,707     Peter Brooks-Johnson Alison Dolan Director Director ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 117  Note 2021 £000 2020 £000 Cash ows from operating activities  183,094 109,775  Depreciation charges 13 3,448 3,259 Amortisation charges 14 991 1,011 Financial income 8 (20) (151) Financial expenses 9 471 478  (84) (20)  25 3,923 2,102 Income tax expense 10 42,555 25,040 Operating cash ow before changes in working capital 234,378 141,494  338 507  3,832 (572) (Decrease)/increase in provisions (2,989) 465 Decrease in contract assets 214 95  1,063 (541) Cash generated from operating activities 236,836 141,448 Financial expenses paid (209) (198) Income taxes paid (41,611) (44,959) Net cash from operating activities 195,016 96,291 Cash ows used in investing activities Interest received on cash and cash equivalents 23 160 (Increase)/reduction in money market deposits (5,003) 4,141  13 (700) (2,308)  14 (19) (1,169) Net cash used in investing activities (5,699) 824 Cash ows used in nancing activities Net dividends 12 (64,447) 2  23 (174,369) (30,125)  24 (1,284) (765)  23 (1,224) (211)  21 (2,464) (2,159)  766 716 Net cash used in nancing activities (243,022) (32,542) Net increase/(decrease) in cash and cash equivalents (53,705) 64,573 Cash and cash equivalents at 1 January 96,690 32,117 Cash and cash equivalents at 31 December 18 42,985 96,690  ![]() 118 | Rightmove plc | Annual Report 2021  Note 2021 £000 2020 £000 Cash ows from operating activities  264,764 (707)  Dividend income 27 (268,338) (734) Financial expenses 27 238 279  25 762 (966) Income tax credit (1,078) (441) Operating cash ow before changes in working capital (3,652) (2,569)  3,652 2,569 Cash generated from operating activities – – Net decrease in cash and cash equivalents – – Cash and cash equivalents at 1 January – – Cash and cash equivalents at 31 December 18 – –  ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 119  Note Share capital £000 Own shares held £000 Other reserves £000 Reverse acquisition reserve £000 Retained earnings £000 Total equity £000 At 1 January 2020 892 (11,744) 402 138 51,652 41,340 Total comprehensive income  – – – – 109,775 109,775 Transactions with owners recorded directly in equity  25 – – – – 2,102 2,102  recognised directly in equity 10 – – – – 311 311 Net dividends 12 – – – – 2 2  24 – 957 – – (241) 716  24 – (765) – – – (765)  23 (5) – 5 – (30,125) (30,125)  23 – – – – (211) (211)  887 (11,552) 407 138 133,265 123,145 At 1 January 2021 887 (11,552) 407 138 133,265 123,145 Total comprehensive income  – – – – 183,094 183,094 Transactions with owners recorded directly in equity  25 – – – – 3,923 3,923  recognised directly in equity 10 – – – – 928 928 Net dividends 12 – – – – (64,447) (64,447)  24 – 1,248 – – (482) 766  24 – (1,284) – – – (1,284)  23 (27) – 27 – (174,369) (174,369)  23 – – – – (1,224) (1,224) At 31 December 2021 860 (11,588) 434 138 80,688 70,532  ![]() 120 | Rightmove plc | Annual Report 2021  Note Share capital £000 Own shares held £000 Other reserves £000 Reverse acquisition reserve £000 Retained earnings £000 Total equity £000 At 1 January 2020 892 (9,552) 17,946 103,520 427,519 540,325 Total comprehensive income  – – – – (707) (707) Transactions with owners recorded directly in equity  25 – – – – (966) (966)  recognised directly in equity 10 – – – – 55 55  24 – – 3,068 – – 3,068 Dividends to shareholders 12 – – – – 2 2  – (734) – – – (734)  – 560 – – (560) –  23 (5) – 5 – (30,125) (30,125)  23 – – – – (211) (211)  887 (9,726) 21,019 103,520 395,007 510,707 At 1 January 2021 887 (9,726) 21,019 103,520 395,007 510,707 Total comprehensive income  – – – – 264,764 264,764 Transactions with owners recorded directly in equity  25 – – – – 762 762  recognised directly in equity 10 – – – – 211 211  24 – – 3,118 – – 3,118 Dividends to shareholders 12 – – – – (64,447) (64,447)  – (1,284) – – – (1,284)  – 975 – – (975) –  23 (27) – 27 – (174,369) (174,369)  23 – – – – (1,222) (1,222) At 31 December 2021 860 (10,035) 24,164 103,520 419,731 538,240  ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 121 1 General information        Statement of compliance    Basis of preparation      Basis of consolidation     until the date that control ceases. Alternative performance measures      • Underlyingprot: Insurance and appropriate tax adjustments); • Underlyingearningspershare(EPS):  shares in issue in the period; • Underlyingoperatingprot: National Insurance); • Underlyingcosts: National Insurance); and • Underlyingoperatingmargin:      ![]() 122 | Rightmove plc | Annual Report 2021 1 General information continued  Underlying prot  2021 £000 2020 £000  183,094 109,775  3,923 2,102  942 277 Impact on tax charge (1,144) (580) Underlying prot 186,815 111,574 underlying earnings per share   Underlying operating prot  2021 £000 2020 £000  226,100 135,142  3,923 2,102  942 277 Underlying operating prot 230,965 137,521 underlying operating margin  Underlying costs  2021 £000 2020 £000 Administration expenses 81,193 70,575  (3,923) (2,102)  (942) (277) Underlying costs 76,328 68,196 Going concern         Notes continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 123 1 General information continued Going concern continued   customers in 2021. 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 Judgements and estimates           2 Signicant accounting policies     (a) Revenue    ![]() 124 | Rightmove plc | Annual Report 2021 2 Signicant accounting policies continued   or other services.   Type of product/service Nature and timing of satisfaction of performance obligations Property products: membership of Rightmove platforms          Customers have the option to enhance their property listings and presence on Rightmove through     the customer chose to apply and use the product.   Property products: provision of tenant referencing and insurance broking commission    the customer.    Non-property products                  Notes continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 125 2 Signicant accounting policies continued (b) Investments  (c) Intangible assets (i) Goodwill        (ii) Research and development   understanding, is recognised in the income statement as incurred.           (iii) Computer software and licences         (vi) Customer relationships      (d) Property, plant and equipment            ![]() 126 | Rightmove plc | Annual Report 2021 2 Signicant accounting policies continued (e) Impairment         is estimated.      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 (f) Cash and cash equivalents  (g) Provisions      (h) Leases   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    Notes continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 127 2 Signicant accounting policies continued (h) Leases continued    (i) Employee benets (i) Pensions    (ii) Employee share schemes    Fair value at the grant date is measured using either the Monte Carlo or Black Scholes pricing model as is most appropriate          the vesting period is recognised immediately in the income statement.      (iii) Own shares held by The Rightmove Employee Share Trust (EBT)     (iv) Own shares held by The Rightmove Share Incentive Plan Trust (SIP)    are charged directly to equity. (v) Own shares held by Treasury   (vi) National Insurance (NI) on share-based incentives      ![]() 128 | Rightmove plc | Annual Report 2021 2 Signicant accounting policies continued (j) Treasury shares and shares purchased for cancellation   (k) Segmental reporting     (l) Financial income and expenses     (m) Taxation     previous periods.          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  Notes continuedNotes continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 129 3 Risk and capital management Overview  • credit risk • liquidity risk • market risk         Credit risk       given in Note 26.   Liquidity risk           ![]() 130 | Rightmove plc | Annual Report 2021 3 Risk and capital management continued Market risk   optimising the return on risk. (i) Currency risk   (ii) Interest rate risk   Capital management      (i) Dividend policy            (ii) Share buybacks      Notes continuedNotes continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 131 3 Risk and capital management continued Operational risk             entities;          4 Operating segments    • The Agency  • The New Homes  The Other        ![]() 132 | Rightmove plc | Annual Report 2021 4 Operating segments continued  Agency £000 New Homes £000 Subtotal £000 Other £000 Central £000 Adjustments £000 Total £000 Year ended 31 December 2021 Revenue 224,490 50,026 274,516 30,370 – – 304,886  (1) – – – – 230,965 (4,865) (2) 226,100 Depreciation and amortisation – – – – (4,439) – (4,439) Financial income – – – – 20 – 20 Financial expenses – – – – (471) – (471)  (3) 6,091 9,573 15,664 2,046 – 220 (4) 17,930 Other assets – – – – 89,505 142 (4) 89,647  – – – – (36,683) (362) (4) (37,045)  Revenue 141,636 40,656 182,292 23,425 – – 205,717  (1) – – – – 137,521 (2,379) (2) 135,142 Depreciation and amortisation – – – – (4,270) – (4,270) Financial income – – – – 151 – 151 Financial expenses – – – – (478) – (478)  (3) 4,776 9,683 14,459 2,811 – 127 (4) 17,397 Other assets – – – – 140,968 57 (4) 141,025  – – – – (37,115) (184) (4) (35,299)       accounts purposes. Geographic information  2021 2020 Group Revenue £000 Trade receivables £000 Revenue £000  £000  300,056 17,876 202,468 17,252  4,830 54 3,249 145 304,886 17,930 205,717 17,397 Notes continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 133 5 Revenue   Disaggregation of revenue   Year ended 31 December 2021 Agency £000 New Homes £000 Other £000 Total £000 Revenue stream  224,490 50,026 14,211 288,727  – – 16,159 16,159 224,490 50,026 30,370 304,886  Agency £000  £000 Other £000 Total £000 Revenue stream  141,636 40,656 9,832 192,124  – – 13,593 13,593 141,636 40,656 23,425 205,717 Contract balances  Note 2021 £000 2020 £000  17 18,645 18,277 Contract assets 120 334  (2,633) (1,570)     6 Operating prot 2021 £000 2020 £000 Operating prot is stated after charging:  37,974 34,832  3,448 3,259  991 1,011  260 701 ![]() 134 | Rightmove plc | Annual Report 2021 6 Operating prot continued Auditor’s remuneration 2021 £000 2020 £000 Fees payable to the Company’s auditor in respect of the audit  53 32  235 208 Total audit remuneration 288 240 Fees payable to the Company’s auditor in respect of non-audit related services  25 19 All other services 2 2 Total non-audit remuneration 27 21  7 Employee numbers and costs  2021 2020 Number of employees Administration 526 514 Management 46 44 572 558  2021 £000 2020 £000 Wages and salaries 32,353 29,698 Social security costs 4,006 3,700  1,615 1,434 37,974 34,832  4,865 2,379 Total 42,839 37,211      Notes continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 135 8 Financial income 2021 £000 2020 £000 Interest income on cash and cash equivalents 17 134 Interest income on money market deposits 3 17 20 151 9 Financial expenses 2021 £000 2020 £000  198 199  273 279 471 478 10 Income tax expense 2021 £000 2020 £000 Current tax expense Current year 42,307 25,272  113 60 42,420 25,332 Deferred tax (Note 16)  (113) 219  175 (351)  73 (160) 135 (292) Total income tax expense 42,555 25,040 Income tax credit recognised directly in equity 2021 £000 2020 £000 Current tax  (609) (465) Deferred tax  (260) 250  (59) (96) (319) 154 Total income tax credit recognised directly in equity (928) (311)  ![]() 136 | Rightmove plc | Annual Report 2021 10 Income tax expense continued Reconciliation of eective tax rate   2021 £000 2020 £000  225,649 134,815  42,873 25,614  73 (160)  (654) 77  – 50  175 (351)  113 60  (25) – Research and development credit – (250) 42,555 25,040 Factors aecting future tax charge      11 Earnings per share (EPS) Pence per share £000 Basic Diluted Year ended 31 December 2021 Prot for the year and EPS 183,094 21.3 21.3 Underlying prot and underlying EPS 186,815 21.8 21.7   109,775 12.6 12.6  111,574 12.8 12.8 Weighted average number of ordinary shares (basic) 2021 Number of shares 2020  Issued ordinary shares at 1 January less ordinary shares  884,234,565 888,422,516  (13,285,490) (13,360,310)  (12,603,891) (4,280,999)  436,477 409,021  (11,640) (6,669)   858,770,021 871,183,559 Notes continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 137 11 Earnings per share (EPS) continued Weighted average number of ordinary shares (diluted)   2021 Number of shares 2020   858,770,021 871,183,559  1,511,725 2,491,363 860,281,746 873,674,922   12 Dividends  2021 2020 Pence per share £000  £000  – – – – 2020 interim dividend paid – – – –  4.50 38,900 – – 2021 interim dividend paid 3.00 25,594 – – 7.50 64,494  – (47) – (2)  – 64,447 – (2)           ![]() 138 | Rightmove plc | Annual Report 2021 13 Property, plant and equipment Group Land & buildings \* £000 Oce equipment, xtures & ttings £000 Computer equipment £000 Leasehold improvements £000 Motor vehicles \* £000 Total £000 Cost At 1 January 2021 14,634 1,074 11,893 1,115 1,703 30,419 Additions – 6 694 – – 700 Leased asset additions – – – – 686 686  200 – – – – 200  14,834 1,080 12,587 1,115 2,389 32,005 Depreciation At 1 January 2021 (4,531) (802) (9,566) (588) (1,080) (16,567)  (1,575) (145) (1,155) (122) (451) (3,448)  (6,106) (947) (10,721) (710) (1,531) (20,015) Net book value At 31 December 2021 8,728 133 1,866 405 858 11,990  10,103 272 2,327 527 623 13,852 Group Land & buildings\* £000 Oce equipment, xtures & ttings £000 Computer equipment £000 Leasehold improvements £000 Motor vehicles\* £000 Total £000 Cost At 1 January 2020 13,205 1,022 9,637 1,115 1,130 26,109 Additions – 52 2,256 – – 2,308 Leased asset additions – – – – 573 573  1,429 – – – – 1,429  14,634 1,074 11,893 1,115 1,703 30,419 Depreciation At 1 January 2020 (2,961) (656) (8,437) (466) (788) (13,308)  (1,570) (146) (1,129) (122) (292) (3,259)  (4,531) (802) (9,566) (588) (1,080) (16,567) Net book value At 31 December 2020 10,103 272 2,327 527 623 13,852  10,244 366 1,200 649 342 12,801  The Company had no property, plant or equipment in either year. Notes continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 139 14 Intangible assets Group Goodwill £000 Computer software £000 Customer relationships £000 Total £000 Cost At 1 January 2021 16,516 7,367 4,521 28,404 Additions – 19 – 19  16,516 7,386 4,521 28,423 Amortisation At 1 January 2021 – (5,726) (565) (6,291)  – (538) (453) (991)  – (6,264) (1,018) (7,282) Net book value At 31 December 2021 16,516 1,122 3,503 21,141  16,516 1,641 3,956 22,113 Group Goodwill £000 Computer software £000 Customer relationships £000 Total £000 Cost At 1 January 2020 16,516 6,198 4,521 27,235 Additions – 1,169 – 1,169  16,516 7,367 4,521 28,404 Amortisation At 1 January 2020 – (5,167) (113) (5,280)  – (559) (452) (1,011)  – (5,726) (565) (6,291) Net book value At 31 December 2020 16,516 1,641 3,956 22,113  Impairment testing for cash generating units containing goodwill   as reported in Note 4.       ![]() 140 | Rightmove plc | Annual Report 2021 14 Intangible assets continued     15 Investments  Company Nature of business Country of incorporation Holding Class of shares Trading status  Online property advertising England and Wales  Ordinary Trading Rightmove Financial Services Limited\* Online rental services England and Wales  Ordinary Trading Rightmove Landlord and Tenant Services Limited\*\*  guarantee insurance services England and Wales  Ordinary Trading  Online rental services England and Wales  Ordinary Dormant     Company 2021 £000 2020 £000 Investment in subsidiary undertakings At 1 January 557,622 554,554  3,118 3,068 At 31 December 560,740 557,622               Notes continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 141 16 Deferred tax asset and deferred tax liability  Deferred tax asset Group Company Share-based incentives £000 Property plant and equipment £000 Provisions £000 Total £000 Share-based incentives £000 At 1 January 2021 2,066 381 396 2,843 549  – 10 (175) (165) –  191 28 (81) 138 (24) Recognised directly in equity 319 – – 319 (44) At 31 December 2021 2,576 419 140 3,135 481 At 1 January 2020 2,318 308 92 2,718 1,010  – 130 221 351 –  (98) (57) 83 (72) (335) Recognised directly in equity (154) – – (154) (126)  2,066 381 396 2,843 549    Deferred tax liability Group Intangibles 2021 £000  £000 At 1 January (859) (871)  (10) –  (97) 12 At 31 December (966) (859)    Net deferred tax position   Group  Company Company 2021 £000 2020 £000 2021 £000 2020 £000  3,135 2,843 480 549  (966) (859) – – At 31 December 2,169 1,984 480 549 ![]() 142 | Rightmove plc | Annual Report 2021 17 Trade and other receivables Group Note 2021 £000 2020 £000  18,645 18,277  26 (715) (880)  17,930 17,397  5,028 5,951  1 4  153 98 23,112 23,450   18 Cash and deposits Group 2021 £000 2020 £000 Cash and cash equivalents 42,985 96,690 Money market deposits 5,003 – 47,988 96,690      The Company had no cash and cash equivalents in either year. 19 Trade and other payables Group Company 2021 £000 2020 £000 2021 £000 2020 £000  3,056 2,742 – – Accruals 7,748 5,879 1,139 666 Other creditors 979 414 – – Other taxation and social security 10,974 9,890 – –  – – 21,842 46,798 22,757 18,925 22,981 47,464 20 Loans and borrowings   Notes continuedNotes continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 143 21 Leases   Analysis of property, plant and equipment between owned and leased assets 2021 £000 2020 £000  2,404 3,126  9,586 10,726 11,990 13,852 Net book value of right of use assets Property £000 Vehicles £000 Total £000 At 1 January 2021 10,103 623 10,726 Additions – 686 686  200 – 200 Depreciation charge (1,575) (451) (2,026) At 31 December 2021 8,728 858 9,586 At 1 January 2020 10,244 342 10,586 Additions – 573 573  1,429 – 1,429 Depreciation charge (1,570) (292) (1,862)  10,103 623 10,726 Lease liabilities Maturity analysis – contractual undiscounted cash ows 2021 £000 2020 £000 Less than one year 2,398 2,281  8,828 8,346  432 2,544 11,658 13,171 Lease liabilities included in the statement of nancial position 2021 £000 2020 £000 Current 2,177 2,023  8,832 10,287 11,009 12,310 Amounts recognised in income statement 2021 £000 2020 £000  273 279  204 233  22 16 499 528 ![]() 144 | Rightmove plc | Annual Report 2021 21 Leases continued Amount recognised in the statement of cash ows 2021 £000 2020 £000  2,464 2,159 Reconciliation of movement of liabilities to cashows arising from nancing activities Lease liabilities £000 Share capital £000 Reserves £000 Retained earnings £000 Total £000 At 1 January 2021 12,310 887 (11,007) 133,265 135,455 Net dividends – – – (64,447) (64,447)  – – – (174,369) (174,369)  – – (1,284) – (1,284)  – – – (1,224) (1,224)  (2,464) – – (2,464)  – – 1,248 (482) 766 Total changes arising from cash ow (2,464) – (36) (240,522) (243,022) Other changes – – – – –  886 – – – 886 Interest 273 – – – 273 Other movements 4 – – – 4  – (27) 27 – –  – – – 928 928  – – – 183,094 183,094  – – – 3,923 3,923 Total liability/equity related to other changes 1,164 (27) 27 187,945 189,109 Balance as at 31 December 2021 11,009 860 (11,016) 80,688 81,541 At 1 January 2020 12,208 892 (11,204) 51,652 53,548 Net dividends – – – 2 2  – – – (30,125) (30,125)  – – (765) – (765)  – – – (211) (211)  (2,159) – – – (2,159)  – – 957 (241) 716  (2,159) – 192 (30,575) (32,542)  2,002 – – – 2,002 Interest 279 – – – 279 Other movements (20) – – – (20)  – (5) 5 – –  – – – 311 311  – – – 109,775 109,775  – – – 2,102 2,102  2,261 (5) 5 112,188 114,449  12,310 887 (11,007) 133,265 135,455 Notes continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 145 22 Provisions Dilapidations provision £000 Employee provisions £000 Contingent consideration £000 Total £000 At 1 January 2021 562 666 2,407 3,635  – (666) – (666) Released during the year – – (2,407) (2,407) Charged in the year 84 350 – 434  – (350) – (350) At 31 December 2021 646 – – 646 Current 61 – – 61 Non-current 585 – – 585 646 – – 646 Dilapidations provision £000 Employee provisions £000 Contingent consideration £000 Total £000 At 1 January 2020 507 256 2,407 3,170  – (256) – (256) Charged in the year 55 666 – 721 At 31 December 2020 562 666 2,407 3,635 Current – 666 – 666 Non-current 562 – 2,407 2,969 562 666 2,407 3,635          The Company had no provisions in either year. ![]() 146 | Rightmove plc | Annual Report 2021 23 Share capital 2021 2020 Amount £000 Number of shares Amount £000   In issue ordinary shares At 1 January 887 886,387,616 892 891,416,008  (27) (26,709,384) (5) (5,028,392) At 31 December 860 859,678,232 887 886,387,616           24 Reconciliation of movement in capital and reserves Group Own shares held – £000 EBT shares reserve £000 SIP shares reserve £000 Treasury shares £000 Total £000  (2,191) (3,205) (6,348) (11,744)  (765) – – (765)  734 (734) – –  397 378 36 811  – 146 – 146  (1,825) (3,415) (6,312) (11,552) Own shares held as at 1 January 2021 (1,825) (3,415) (6,312) (11,552)  (1,127) (157) – (1,284)  1,127 (1,127) – –  273 560 383 1,216  – 32 – 32 Own shares held as at 31 December 2021 (1,552) (4,107) (5,929) (11,588) Notes continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 147 24 Reconciliation of movement in capital and reserves continued Own shares held – number of shares Number of shares EBT shares reserve SIP shares reserve Treasury shares Total  2,208,362 785,130 13,360,310 16,353,802  118,293 – – 118,293  (113,465) 113,465 – –  (817,714) (111,620) (74,820) (1,004,154)  – (29,400) – (29,400)  1,395,476 757,575 13,285,490 15,438,541 Own shares held as at 1 January 2021 1,395,476 757,575 13,285,490 15,438,541  148,147 20,278 – 168,425  (148,147) 148,147 – –  (237,058) (133,200) (805,018) (1,175,276)  – (5,800) – (5,800) Own shares held as at 31 December 2021 1,158,418 787,000 12,480,472 14,425,890 (a) EBT shares reserve     (b) SIP shares reserve (Group and Company)         (c) Treasury shares (Group and Company)    Other reserves   Retained earnings     ![]() 148 | Rightmove plc | Annual Report 2021 24 Reconciliation of movement in capital and reserves continued Company Reverse acquisition reserve   Other reserves      25 Share-based payments           Group Company 2021 £000 2020 £000 2021 £000 2020 £000  336 324 5 1  424 (1,112) 424 (1,019)  2,015 1,489 330 52  826 838 3 –  322 563 – – Total share-based payments charge 3,923 2,102 762 (966) NI on applicable share-based incentives at 13.8% 942 277 295 (53) Sharesave Plan      Grant date Share price at grant date (pence) Exercise price (pence) Expected volatility (%) Option life (years) Risk free rate (%) Dividend yield (%) Fair value per option (pence)  627.0 513.0 27.5 3.0 0.0 0.5 167.1  683.0 574.0 26.6 3.0 0.8 1.12 184.0  Notes continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 149 25 Share-based payments continued     2021 2020 Group Number Weighted average exercise price (pence)   Weighted average exercise price (pence) Outstanding at 1 January 752,023 442.9 804,221 387.3  217,790 574.0 247,942 513.0  (104,234) 468.3 (85,974) 401.5 Exercised (202,011) 376.9 (214,166) 329.7 Outstanding at 31 December 663,568 497.9 752,023 442.9 Exercisable at 31 December 38,274 389.0 42,096 329.0     Performance Share Plan (PSP)             Grant date Share price at grant date (pence) Exercise price (pence) Expected volatility (%) Option life (years) Risk free rate (%) Dividend yield (%) Discount for two year holding period (%) Fair value per option (pence)  (1) 630.0 0.0 27.5 3.0 0.0 0.0 15.4 346.0  (1) 630.0 0.0 0.0 3.0 0.0 0.0 15.4 533.0 3 March 2021 (TSR dependent) (1) 584.0 0.0 28.1 3.0 0.4 0.0 15.8 176.0  (1) 584.0 0.0 0.0 3.0 0.0 0.0 15.8 492.0   share price volatility at the grant date. ![]() 150 | Rightmove plc | Annual Report 2021 25 Share-based payments continued   Group 2021 Number 2020  Outstanding at 1 January 1,017,279 1,131,918  269,968 228,004  (1) (248,185) (82,637) Exercised (270,986) (260,006) Outstanding at 31 December 768,076 1,017,279 Exercisable at 31 December – 188,258      Deferred Share Bonus Plan (DSP)          Grant date Award date Share price at grant date (pence) Exercise price (pence) Expected term (years) Risk free rate (%) Dividend yield (%) Fair value per option (pence) 6 March 2019 4 March 2020 495.0 0.0 3.0 0.0 1.3 476.0 4 March 2020 3 March 2021 (1) 614.0 0.0 3.0 0.0 0.5 605.3 3 March 2021 3 March 2022 (2) 584.0 0.0 3.0 0.0 0.8 571.0     Group 2021 Number 2020  Outstanding at 1 January 881,577 939,982  329,380 357,152  (2,206) (10,257) Exercised (511,572) (405,300) Outstanding at 31 December 697,179 881,577 Exercisable at 31 December – – Notes continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 151 25 Share-based payments continued    Share Incentive Plan       Grant date Share price at grant date (pence) Exercise price (pence) Option life (years) Risk free rate (%) Dividend yield (%) Fair value per option (pence)  642.4 0.0 3.0 0.0 0.0 642.4  651.6 0.0 3.0 0.0 0.0 651.6  769.0 0.0 3.0 0.0 0.0 769.0  Group 2021 Number 2020  Outstanding at 1 January 748,050 761,845  236,000 187,250  (86,275) (60,025) Exercised (138,725) (141,020) Outstanding at 31 December 759,050 748,050 Exercisable at 31 December 148,500 106,000     Restricted Share Plan (RSP)    service period.    Grant date Share price at grant date (pence) Exercise price (pence) Expected volatility (%) Option life (years) Risk free rate (%) Dividend yield (%) Fair value per option (pence) 6 March 2019 495.1 0.0 22.4 3.0 0.0 1.3 476.0  630.0 0.0 27.5 1.0 0.0 0.4 627.2  ![]() 152 | Rightmove plc | Annual Report 2021 25 Share-based payments continued Group 2021 Number 2020  Outstanding at 1 January 244,937 211,323  – 33,614  – – Exercised (33,614) – Outstanding at 31 December 211,323 244,937 Exercisable at 31 December – –    26 Financial instruments Credit risk   Group Note 2021 £000 2020 £000  17 17,930 17,397  17 1 4 Contract assets 5 120 334  17 153 98 Cash and cash equivalents 18 42,985 96,690 Money market deposits 18 5,003 – 66,192 114,523    Group Note 2021 £000 2020 £000  17,876 17,252  54 145 17 17,930 17,397 Notes continuedNotes continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 153 26 Financial instruments continued  Group Note 2021 £000 2020 £000  16,201 14,961 Other 1,729 2,436 17 17,930 17,397  Expected credit loss assessment         2021 Weighted-average loss rate Gross carrying amount £000 Loss allowance £000 Credit-impaired Current  16,050 (110) No   1,203 (67) No   495 (45) No   305 (75) No More than 91 days past due  592 (418) No 18,645 (715) 2020  loss rate  amount £000  £000  Current  11,969 (197) No   3,391 (220) No   1,281 (171) No   423 (25) No More than 91 days past due  1,213 (267) No 18,277 (880) ![]() 154 | Rightmove plc | Annual Report 2021 26 Financial instruments continued  Group Note 2021 £000 2020 £000 At 1 January 880 733 Charged during the year 260 701  (425) (554)  17 715 880      Liquidity risk  Group Carrying amount £000 Contractual cash ows £000 6 months or less £000 At 31 December 2021  3,056 (3,056) (3,056)   2,742 (2,742) (2,742)    Currency risk   Interest rate risk    Fair values  Notes continued ![]() STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Rightmove plc | Annual Report 2021 | 155 27 Related party disclosures Inter-group transactions with subsidiaries          Directors’ transactions       incentive schemes in the period. Key management personnel   28 Contingent liabilities  29 Subsequent events  and the reporting date. ![]() 156 | Rightmove plc | Annual Report 2021 (1) Auditor   (2) Shareholder enquiries             10th Floor Central Square 29 Wellington Street Leeds LS1 4DL          • Elect to receive shareholder communications electronically  Contacts         Financial calendar 2022   Final dividend record date 29 April 2022   Final dividend payment 27 May 2022   Registered oce Rightmove plc 2 Caldecotte Lake  Caldecotte Lake Drive Milton Keynes MK7 8LE Registered in England no. 06426485 Corporate advisers Financial adviser  Joint brokers  Numis Securities Limited Auditor  (1) Bankers Barclays Bank plc    Solicitors  Slaughter and May  Registrar Link Asset Services (2)  ![]() Designed and produced by The Team www.theteam.co.uk Rightmove’s purpose is to make home moving easier in the UK We do this by creating a simpler and more ecient property marketplace Rightmove is the UK’s number one property portal Rightmove plc | Annual Report 2021 Contents Strategic report 1 Highlights 2 Chair’s statement 4 Chief Executive’s review 5 Our strategy 20 Business model 22 Key performance indicators 24 Financial review 28 Risk management 29 Principal risks and uncertainties 33 Going concern and viability statement 34 Section 172 – Working with our stakeholders 38 Sustainability report Governance 62 Corporate governance report 65 Directorsandocers 72 Audit Committee report 81 Nomination Committee report 84 Directors’ remuneration report 103 Directors’ report 106 Directors’ responsibilities statement 107 Auditor’s report Financial statements 114 Consolidated statement of comprehensive income 115 Consolidated statementofnancial position 116 Company statement ofnancialposition 117 Consolidated statement of cashows 118 Company statement ofcashows 119 Consolidated statement of changes in shareholders’ equity 120 Company statement of changes in shareholders’ equity 121 Notes forming part of thenancialstatements 156 Advisers and shareholder information ![]() Rightmove plc 2 Caldecotte Lake Business Park Caldecotte Lake Drive Milton Keynes MK7 8LE Registered in England no. 6426485 Annual Report 2021 Explore the life that could be...Rightmove... Rightmove plc Annual Report 2021