Slide 1: Half Year Results Presentation
For personal use only Half Year Results Presentation 6 months ending 31 December 2009
Slide 2: Overview of SEEK
For personal use only 2 Overview of SEEK
Slide 3: Half Year Overview
Half Year Overview For personal use only Consistent strategy and effective execution delivers a strong result Financial Performance Strong financial result with NPAT of $36.6m up 13% from pcp Result driven by resilience in employment business and strong growth from SEEK Learning & THINK Employment D
Slide 4: Financial Performance
Financial Performance For personal use only 4
Slide 5: Strong Financial Results to December 2009
Strong Financial Results to 31 December 2009 For personal use only For H1 FY10, SEEK has increased its dividend pay-out ratio from 40% to 45% of Cash NPAT6 1 THINK was treated as an Associate for the 6 months to 30 December 2008 therefore its revenue & EBITDA were not included in statutory accounts
Slide 6: Record Revenue & NPAT results despite tough operating environment
Despite a tough operating environment in H1 FY10, SEEK has achieved record Revenue & NPAT results For personal use only CAGR 39.8% 48.5% 37.1% 6
Slide 7: SEEK generates high EBITDA margins and has low levels of net debt
SEEK generates high EBITDA margins and has low levels of net debt For personal use only SEEK g generates strong g EBITDA margins g SEEK is well capitalised with low levels of net debt1 EBITDA Margins at H1 FY10 Net Debt/LTM EBITDA at H1 FY10 is ~0.6x 1 Net Debt ($58.6m) / 12m trailing EBITDA ($96.9m
Slide 8: Outlook for H2 FY10
Outlook for H2 FY10 For personal use only EMPLOYMENT • Encouraging start to CY10 based on YTD results ¨ • Expect EBITDA for H2 to be moderately greater than H1 • Expect SEEK to capture disproportionate share of rebound in job ad revenue given strong market position and exposure to favourable structu
Slide 9: Employment Dynamics
For personal use only 9 Employment Dynamics
Slide 10: SEEK is well positioned to capitalise on improving employment market conditions
SEEK is well positioned to capitalise on improving employment market conditions For personal use only The recent decline & current The current unemployment p y rate is significantly g y improvement in job ad volumes vs 1981 downturn lower than the post 1981 downturn Number Of Job Ads (100 = Peak) Un
Slide 11: Rapid migration of revenue from print to online is a continuing structural trend
The rapid migration of revenue from print to online is a continuing structural trend which will continue to run For personal use only We have seen an acceleration in revenue migration from print to online (2003-2009E; %) market 80 70 USA employment ad m 60 50 nue as % of total e ~2 years lag Austral
Slide 12: Online is the preferred way to search for jobs where SEEK is the #1 brand
Online is the preferred way to search for jobs where SEEK is the #1 brand… For personal use only Online is the way to search for jobs1 … … and SEEK is the #1 brand1 Q: If you were looking for a job and could use only one way to find a job, in what way would you choose to look for a job? 1Source: Cal
Slide 13: SEEK's #1 market position in Australia & NZ
…which is reflected in SEEK’s #1 market position in Australia & NZ. For personal use only Australia Source: January 2010 Nielsen NetRatings, SEEK Count of websites New Zealand 13
Slide 14: SEEK is well positioned as the majority of spend is still in print
SEEK is well positioned as the majority of spend is still in print For personal use only Online vs. Print (%) Job-Ad Volume Job Seeker Preferences2 Share of Spend3 Jan 2010 Feb 2010 Dec 09(E) Online 78% 73% 41% Print 22% 27% 59% 1 ANZ Advertisement Series for January 2009 2 Job seeker preferences co
Slide 15: SEEK is poised for further growth given strong market position
SEEK is poised for further growth given its strong market position, exposure to favourable structural trends and improving job ad markets For personal use only Core drivers of long term employment earnings SEEK’s core growth strategy continues to focus on accelerating the structural migration of rev
Slide 16: Education – SEEK Learning, THINK and IDP
Education – SEEK Learning, THINK and IDP For personal use only 16
Slide 17: SEEK has a broad and diverse presence in education
SEEK has a broad and diverse presence in education… For personal use only Billy Blue (Design) William Blue (Hospitality) ACNT (Natural Therapies) (100%) APM (Marketing/PR) dents JNI (Psychology/Counselling) CATC ((Design) g ) omestic Stud (100%) EDUCATION AND TRAINING TO ADVANCE YOUR CAREER DWT Clas
Slide 18: Education continues to perform impressively
…that has continued to perform impressively. For personal use only SEEK Education continues to experience tremendous growth and expansion. Revenue growth3 of 56% in H1 FY10 was split between organic growth of 30% and acquisition growth 26%. SEEK believes there are still significant growth opportunit
Slide 19: SEEK Learning is continuing its rapid revenue and earnings growth
SEEK Learning is continuing its rapid revenue and earnings growth. For personal use only Financial Results • Strong growth with Revenue up 46% and EBITDA up 206% vs pcp • Strong revenue growth in new and existing partners with margin expansion attributable to economies of scale • H1 FY10 result incl
Slide 20: THINK is performing strongly in the fast growing domestic education market
THINK is performing strongly in the fast growing domestic education market … For personal use only Financial Results • Key drivers of revenue were strong enrolment growth in classroom and Flexible & Online Learning (“FOL”) across new/existing courses and strong retention of continuing students • Ach
Slide 21: THINK: rapid enrolment growth and strong operational performance
…underpinned by rapid enrolment growth and strong operational performance. For personal use only Enrolment Performance Operational Achievements Growth Drivers Rapid growth in student enrolments(a) Significant improvements in Organic Student Growth Digital Marketing 1. Grow new enrolments 2. Improve
Slide 22: IDP recorded a solid result in light of challenging conditions
IDP recorded a solid result in light of challenging conditions. For personal use only Financial Results • Strong result in light of a sharp drop in Indian students and changes by DIAC1 to student entry requirements • Declines in Student Placements were offset by strong growth in IELTS Candidates lea
Slide 23: International
For personal use only 23 International
Slide 24: Brasil Online's performance has been pleasing
Brasil Online’s performance has been pleasing For personal use only Results • St Strong result lt driven di by b strong t increase i in i active ti & invoiced i i d users, as wellll as yield growth • Invoiced users up >20% for both Catho & Manager and average yields up >30% for Catho at CY09 vs pcp
Slide 25: Zhaopin's result was pleasing and it remains well positioned
Zhaopin’s result was pleasing and it remains well positioned in a large growth market For personal use only Results Outlook • SEEK decreased d d its it share h off losses l iin H1 FY09 ffrom • Expect losses to continue to decline in CY10 with A$10.7m to A$3.4m reduction in losses driven by revenue g
Slide 26: JobStreet is performing well in the fast growing SE Asian markets
JobStreet is performing well in the fast growing SE Asian markets For personal use only JobStreet’s revenues are improving post-GFC.. … leading to significant earnings growth Profit Margins millions) MYR (milllions) Op P MYR (m Calendar Year Quarters Calendar Year Quarters Results • Over the Q1 to Q
Slide 27: Focus drivers for SEEK's growth remains consistent
Focus drivers for SEEK’s growth remains consistent For personal use only Core growth drivers of SEEK Employment Volume Yield Product Expansion Education Drivers of Future SEEK Learning Earnings Growth IDP THINK International Brasil Online Holdings Zhaopin JobStreet 27
Slide 28: For personal use only
For personal use only 28