Slide 1: Full Year Results Presentation
F ll Y Full Year R Results lt PPresentation t ti For personal use only 12 months to 30 June 2011
Slide 2: For personal use only
For personal use only The material in this presentation has been prepared by SEEK Limited ABN 46 080 075 314 ("SEEK") and is general background information about SEEK’s activities currentt as att the th date d t off this thi presentation. t ti The Th information i f ti isi given i in i summary form
Slide 3: SEEK operates a range of strategic businesses in Employment & Education
SEEK operates a range of strategic businesses in Employment & Education For personal use only Domestic Employment International Employment Education Australia New Zealand Swinburne Online Key Operating Metrics (FY11) Key Operating Metrics (FY11) Key Operating Metrics (FY11) • FY11 174m cumulative AU
Slide 4: Full Year Overview
Full Year Overview Consistent strategy and effective execution delivers a record full year result For personal use only Group Financial Performance Growth from diverse earnings streams underpinning a record full year financial result with normalised NPAT (Post NCI) of A$104.6m1 Profit increase drive
Slide 5: Financial Performance
For personal use only Financial Performance 5
Slide 6: SEEK achieved a record full year result
SEEK achieved a record full year result for 12 months to 30 June 2011 For personal use only FY11 – Headline Performance H2 FY11 – Headline Performance A$m Growth A$m Growth SEEK Group FY10 FY11 $m % SEEK Group H2 FY10 H2 FY11 $m % Revenue 1 280.9 343.1 62.1 22% Revenue1 150.6 184.1 33.5 22% EBITDA (
Slide 7: Track record of consistent growth
... which is a continuation of SEEK’s track record of consistent growth over a long time period. For personal use only Operating Revenue - CAGR of 36.1% Normalised EBITDA – CAGR of 38.9% Normalised NPAT (Post NCI) – CAGR of 33.6% $143.6M $104.6M $343.1M $117.4M $280.9M $109.8M $83.1M $76.3M $97.8M $
Slide 8: Reported results by Segment
Reported results by Segment FY11 – Results R l byb Segment S FY11 – Results R lt by b Associate A i t & JV For personal use only A$m Growth A$m Growth SEEK Employment FY10 FY11 $m % International (SEEK share of NPAT) FY10 FY11 $m % Operating Revenue 172.7 172 7 224.0 224 0 51 4 51.4 30% Zhaopin (3 8
Slide 9: Normalisation adjustments
Normalisation adjustments For personal use only Normalisation Adjustments Discussion A$m FY10 FY11 H1 FY11 Write back of borrowing costs Reported EBITDA 117 4 117.4 135.6 135 6 o Write back of SEEK’s SEEK s syndicated loan established in July + H1 FY11 : Write back of borrowing costs 1.8 2010 that
Slide 10: SEEK's FY11 look through result
SEEK’s FY11 look through result is Revenue ~A$558m A$558m and EBITDA ~A$188m A$188m For personal use only “Look through” Revenue “Look through” EBITDA FY07 – FY11 growth of 171% FY07 – FY11 growth of 118% A$557.6m A$187.5m A$128.3m A$454 3m A$454.3m $35.7m A$399.4m A$73.8m A$142.3m A$18.4m A$59.6m A
Slide 11: SEEK continues to generate strong free cash flow
SEEK continues to generate strong free cash flow For personal use only SEEK generates strong cash flow1 ... ...and also investing for growth A$153.1m A$116.2m A$3.7m A$2.9m A$8 4 A$8.4m A$4.7m FY10 FY11 FY10 FY11 Capex ‐ PPE Capex ‐ Intangibles Year on Year growth in operating cash flows1 of 32% FY1
Slide 12: Domestic Employment
For personal use only Domestic Employment 12
Slide 13: SEEK Employment had a robust FY11
SEEK Employment had a robust FY11 For personal use only SEEK Financials – continued recovery since the GFC Discussion on results A$ A$m G Growth th Revenue growth of 30% (FY11 v FY10) SEEK Employment FY10 FY11 $m % Revenue 172.7 224.0 51.4 30% • Revenue growth attributable to volume of 22% EBITDA 93
Slide 14: The Australian labour market has seen sustained growth
The Australian labour market has seen sustained growth over the last 25 months For personal use only Job Volumes have steadily recovered but are Growth in online job ads has outstripped the below the peaks of Dec-07 growth in print 120.0 ANZ Job Series 200,000 SEEK New Job Index (Dec-07 = 100) (Jul-
Slide 15: SEEK holds the #1 online market position in Australia and New Zealand
SEEK holds the #1 online market position in Australia and New Zealand For personal use only Australia Market AU Online Share - Key Metrics July 2011 % of Top 3 Ads Visits TTOS Reach 100% Visits SEEK 70% 73% 84% 74% 75% CareerOne 18% 14% 8% 25% MyCareer 12% 13% 8% 20% 50% Ads Monthly Visits SEEK Grow
Slide 16: Online is the preferred way to search for jobs
Online is the preferred way to search for jobs 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 job, Q When you think about employment websites on the internet Q. internet, in what way
Slide 17: Structural migration of revenue from print to online continues
The structural migration of revenue from print to online continues to run ... For personal use only Structural migration of revenue from print to online is a continuing trend 80 USA ment market e Revenue as a % of total employm 70 60 ~2 years lag Australia 50 40 30 20 Online 10 0 2003 2004 2005 2006
Slide 18: SEEK is well positioned as half of ad spend still in print
...and SEEK is well positioned for growth as nearly half of ad spend still resides in print. For personal use only Online vs. Print (%) Job Seeker Job Ad Volume1 Share of Spend3 Preferences2 Jul-11 Aug-11 Mar-11 Online 83% 77% 52% Print 17% 23% 48% What does this mean? o Approximately $200-250m4 of
Slide 19: SEEK is well positioned for growth due to market leadership
SEEK is well positioned for growth due to its market leadership and exposure to favourable structural trends For personal use only Volume • Continue attacking industry segments such as Trade & Services, Regional, Govt & Healthcare. SEEK has repositioned its Exec offering to better serve this market
Slide 20: SEEK International
For personal use only 20 SEEK International
Slide 21: SEEK International has exposure to over 2b people
SEEK International has exposure to over ~2b people and ~20% 20% of Global GDP For personal use only China Zhaopin CJOL1 (56%) Mexico • Zhaopin is #2 overall SE Asia • CJOL is #2 in South China OCC (40 %) JobStreet J bSt t JobsDB J b DB • P Population l ti off ~1,330m 1 330 (22 %) ( 80%) • Internet p
Slide 22: SEEK owns some of the world's leading job boards
SEEK owns some of the world’s leading job boards exposed to favourable structural & macroeconomic trends For personal use only Market leadership positions in large & growing markets Key Attributes Strong Brands Over the medium to long term, we expect increased internet • Each of SEEK’s investments a
Slide 23: Strong result achieved by SEEK International
Strong result achieved by SEEK International For personal use only SEEK International1 – Pro-Forma2, 3 Pro-Forma2, 3 – Strong Revenue & EBITDA Growth SEEK Int'l $Am Growth A$128 3 A$128.3m Pro‐Forma 2,3 FY10 FY11 $m % Revenue 73.8 128.3 54.5 74% EBITDA 9.2 35.7 26.4 287% A$35.7m EBITDA (%) 12% 28% A
Slide 24: Zhaopin achieved a strong FY11 result
Zhaopin achieved a strong FY11 result For personal use only Zhaopin Financials Discussion on results Zhaopin RMBm Growth Zhaopin performed well in FY11 Pro‐Forma Pro Forma FY10 FY11 $m % Online Revenue (100%) 306.4 529.6 223.3 73% • Strong H2 performance with revenue of RMB345.7m, EBITDA of RMB78.2m
Slide 25: JobsDB performing ahead of expectations
JobsDB performing ahead of expectations For personal use only JobsDB Financials Discussion on results Pro-forma results below are for comparative purposes Pleasing financial performance by JobsDB only to show underlying business performance JobsDB HKDm Growth • Strong revenue and EBITDA growth in al
Slide 26: JobStreet continues to perform well
JobStreet continues to perform well For personal use only JobStreet – Consistent revenue growth Discussion on results MYRm 35.0 33.6 Continuation of solid quarter on quarter growth 33.0 31.0 29.9 30.4 • Q1 CY11 saw record quarterly Revenue and Op profit 29.4 29.0 27.5 – Record quarterly revenue resu
Slide 27: Brasil Online achieved a solid result
Brasil Online achieved a solid result and continues to invest in future growth opportunities For personal use only Brasil Online Discussion on results Brasil BRLm Growth Solid result despite significant investment activities Pro Forma Pro‐Forma FY10 FY11 $m % Revenue (100%) 152.4 176.2 23.8 16% • Re
Slide 28: OCC performing well in early stage Mexico market
OCC performing well in early stage Mexico market For personal use only OCC1 Discussion on results OCC MXNm Growth Pro‐Forma Pro Forma FY10 FY11 $m % • Strong market leadership leading to : Revenue (100%) 141.2 173.0 31.8 23% EBITDA (100%) 63.5 79.1 15.6 25% – Strong revenue growth of 23% driven prim
Slide 29: SEEK Education
For personal use only 29 SEEK Education
Slide 30: SEEK Education has unique businesses well positioned to grow
SEEK Education has unique businesses that are well positioned p t to t grow g .... For personal use only SEEK Education comprises of the following businesses (x% = SEEK Ownership) Swinburne Online (100%) (100%) (50%) (50%) • SEEK Learning is the #1 • THINK: Education Group is a • A 50:50 partnership
Slide 31: ...in large and growing markets
...in large and growing markets. For personal use only SEEK Learning & Swinburne Online THINK IDP Domestic Education is a large market opportunity that will increase given a International student mobility is large mismatch between supply & demand forecast to grow 2.5x from 2008 to 2025 38% of Aust
Slide 32: SEEK Education faced headwinds in FY11
SEEK Education faced headwinds in FY11 but is well positioned for the medium to long p g term For personal use only SEEK Education1 – Pro-Forma2 “Look through” Education financials over the last six years1, 2 A$m Growth SEEK Education FY10 FY11 $m % $39.7M $23.3M $207 8M $205.3M $207.8M Revenue 207.
Slide 33: SEEK Learning achieved a strong H2 result
SEEK Learning achieved a strong H2 result For personal use only SEEK Learning Financials Discussion on results A$m Growth Robust H2 FY11 result with: 1 SEEK Learning FY10 FY11 $ $m % • Revenue of A$24.3m (H2 v H1 growth of 20%) Revenue 43.6 44.5 0.9 2% EBITDA 16.7 13.1 (3.6) (22%) • EBITDA of A$8.6m
Slide 34: THINK has experienced a challenging year
THINK has experienced a challenging 12 months For personal use only THINK Financials Discussion on results A$m Growth Continued restructuring of operations THINK 1 FY100 FY11 $ $m % • Disappointing reported revenue result due to: Revenue 69.5 69.1 (0.4) (1%) EBITDA 7.3 (7.5) (14.8) n/a o Under-provi
Slide 35: IDP has achieved a credible result
IDP has achieved a credible result in light of challenging g g conditions For personal use only IDP Financials Discussion on results A$m Growth S lid result Solid lt b by IDP IDP FY10 FY11 $m % Revenue (100%) 196.6 189.8 (6.8) (3%) • A solid revenue result in light of challenging conditions EBITDA (
Slide 36: Outlook
For personal use only 36 Outlook
Slide 37: FY12: Short term outlook
FY12: Short term outlook For personal use only THE IMPACT OF THE MACROECONOMIC ENVIRONMENT • Domestic employment is most impacted by sustained macroeconomic (“macro”) variability • Education results tend to be “counter-cyclical” to domestic employment • International results are less susceptible t
Slide 38: Medium to Long term Outlook for SEEK
Medium to Long term Outlook for SEEK Medium Term Outlook Long Term Outlook For personal use only Domestic Employment Long-term growth horizon for SEEK • Continued g growth from structural migration g of revenue • SEEK is well positioned for robust growth over the from print to online medium to long
Slide 39: Appendices
For personal use only 39 Appendices
Slide 40: Details of SEEK's 'look-through' P&L
Details of SEEK’s ‘look-through’ P&L For personal use only Underlying and “Look through” P&L Equity Ownership & FX rates A$m FY07 FY07 FY08 FY08 FY09 FY09 FY10 FY10 FY11 FY11 SEEK'ss Equity Ownership SEEK Underlying SEEK Share Underlying SEEK Share Underlying SEEK Share Underlying SEEK Share Underly
Slide 41: LinkedIn – What is SEEK's position?
LinkedIn – What is SEEK’s position? For personal use only What is it? Is it a threat? What’s SEEK’s strategy? A professional social network Our view on LinkedIn Keep focusing on ROI leadership It is a complementary job search • Make job search even more Appeal for users tool for users who
Slide 42: SEEK Learning – Detailed Metrics
SEEK Learning – Detailed Metrics SEEK Learning Operating Metrics SEEK Learning Financials For personal use only H1 FY10 H2 FY10 H1 FY11 H2 FY11 Revenue H1 FY10 H2 FY10 H1 FY112 H2 FY11 Ubs ('000) 1,769 2,243 2,190 2,136 SEEK Learning AUS 15.8 21.8 18.5 22.1 pcp growth (%) 26 0% 26.0% 56 3% 56.3% 23
Slide 43: THINK - Detailed Metrics
THINK - Detailed Metrics For personal use only Total Students Educated during FY11 Total Educated Students by Modality during FY11 7,000 16,000 5,987 , 6,000 14 000 14,000 5,339 5,143 12,000 5,000 5,906 10,000 4,000 3,565 3,781 8,000 3,000 2,255 6,000 1,918 2,000 4,000 7,479 7,041 1,000 2,000 0 0 Bu
Slide 44: THINK - Detailed Metrics (cont'd)
THINK - Detailed Metrics (cont’d) For personal use only THINK P&L FY11 - Key Earnings Drivers FY11 H1 FY11 H2 FY11 A$m Business & Health Revenue Hosp & Wellness Design Total Total Total A Avg Net Revenue 18.5 18.2 30.1 66.8 32.6 34.1 Students Other Revenue 2.3 0.5 1.8 FOL & DE Total Revenue 69.1 33.
Slide 45: IDP - Detailed Metrics
IDP - Detailed Metrics For personal use only P&L Key Operating Metrics A$m FY10 FY11 H1 FY10 H2 FY10 H1 FY11 H2 FY11 Revenue H1 FY10 H2 FY10 H1 FY11 H2 FY11 IELTS ‐ Rev per test candidate (A$) 235 243 254 251 IELTS 64.8 67.0 62.3 67.5 APF ‐ Rev per Placement (A$) 1,852 1,906 1,943 2,090 APF1 23.4 23
Slide 46: Zhaopin – Detailed Financials & Key Competitor Metrics
Zhaopin – Detailed Financials & Key Competitor Metrics P&L Monthly Page Views - month end (m) For personal use only RMBm ‐ at 100% of Zhaopin unless indicated Revenue H1 FY10 H2 FY10 H1 FY11 H2 FY11 Online Revenue 134.2 172.2 234.4 295.3 1,000 931 Other Revenue 45.2 44.6 60.8 50.5 900 Total Revenue
Slide 47: Zhaopin – Key Revenue Drivers
Zhaopin – Key Revenue Drivers For personal use only Total Positions Posted Total Customers 700,000 160,000 140,000 135 364 135,364 600,000 500,000 120,000 109,231 97,096 100,000 400,000 80 000 80,000 300,000 66,458 60,000 200,000 40,000 100,000 20,000 ‐ 0 Jul‐09 Jul‐10 Feb‐09 Sep‐09 Feb‐10 Sep‐10 Fe
Slide 48: JobsDB timeline & Key Accounting Implications
JobsDB timeline & Key Accounting Implications For personal use only SEEK Asia acquired 80% of JobsDB in 3 stages Financial Summary2 Stages of the transaction SEEK Asia SEEK Co‐investors' • During FY11 SEEK along with its co-investors1 formed a new subsidiary (SEEK Asia) to Share Share Share acquire
Slide 49: JobsDB – Contribution to Reported Results
JobsDB – Contribution to Reported Results For personal use only JobsDB P&L Contribution1 Discussion 1 Jan ‐ 5 May 6 May ‐ 30 June 6 May ‐ 30 January to 5 May 2011: JobsDB accounted for as an 2011 2011 June 2011 Associate & SEEK’s share of NPAT was A$0.5m ((post NCI)) Stage 1 Stage 2 Key A$m (40% o
Slide 50: JobsDB impact on SEEK balance sheet
JobsDB impact on SEEK balance sheet For personal use only JobsDB related balances in SEEK’s 30 Jun ‘11 balance sheet Discussion As at 30 June 2010 As at 30 June 2011 SEEK Group JobsDB JobsDB (Acquired) SEEK Group JobsDB SEEK Group (excl. JobsDB (Acq related (Reported) (Acquired) (Reported) related b
Slide 51: Brasil Online – Detailed Metrics
Brasil Online – Detailed Metrics For personal use only Invoiced Users P&L 300,000 BRL m ‐ at 100% of Brasil Online unless otherwise indicated H1 FY10 H2 FY10 H1 FY11 H2 FY11 250,000 Net Revenue 70.6 81.8 83.2 92.9 COGS 21.7 26.2 29.0 34.9 200,000 GP 48.9 55.6 54.2 58.1 GP / Net Rev % 69% 68% 65% 65%
Slide 52: OCC – Detailed Metrics
OCC – Detailed Metrics For personal use only Ad Volume P&L 100,000 MXN m ‐ at 100% of OCC unless otherwise indicated 90,000 H1 FY10 H2 FY10 H1 FY11 H2 FY11 80,000 Net Revenue 65.6 75.6 82.3 90.7 70,000 COGS 11.1 12.8 12.8 15.9 60,000 GP 54.5 62.8 69.5 74.8 50,000 83% 83% 84% 82% GP / Net Rev % 40,00
Slide 53: OCC – Detailed Metrics
OCC – Detailed Metrics For personal use only Ubs Monthly ('000) Page Views ('000) 4,000 120,000 3,500 100,000 3,000 80,000 2,500 2,000 60,000 1,500 40,000 1,000 20,000 500 ‐ ‐ Jun‐10 Dec‐10 Jun‐11 Jun‐10 Dec‐10 Jun‐11 OCC Competitor A Competitor B OCC Competitor A Competitor B Paid Job Ads ('000) Sh
Slide 54: For personal use only
For personal use only