Slide 1: SEEK Limited – FY23 Half Year Results Presentation
21 February 2023 The Manager ASX Market Announcements Office Australian Securities Exchange Dear Manager SEEK Limited – FY23 Half Year Results Presentation In accordance with the Listing Rules, I enclose SEEK Limited’s FY23 Half Year Results Presentation for immediate release to the market. Yours fa
Slide 2: H1 23 Results Presentation
SEEK Limited H1 23 Results Presentation 6 months to 31 December 2022
Slide 3: Agenda
Agenda 1 H1 23 highlights 2 H1 23 financial performance 3 Employment marketplaces 4 Other businesses 5 Platform Unification 6 SEEK Growth Fund 7 Strategy update 8 FY23 outlook
Slide 4: H1 23 highlights
H1 23 highlights 3
Slide 5: H1 23 highlights
H1 23 highlights Operational Financial1 Capital management SEEK Growth Fund • Continued growth in job ads • Revenue of A$627m, up 21% • Operating cash to EBITDA • 38% increase in portfolio across APAC vs pcp conversion of 87% value vs invested capital2 • Growth in yield, strongest in • EBITDA of A$2
Slide 6: H1 23 Financial performance
H1 23 Financial performance 5
Slide 7: H1 23 Financial results
H1 23 Financial results Discontinued Continuing Operations Operations A$627m A$283m A$135m A$3m Revenue EBITDA NPAT NPAT excl significant items excl significant items +21% vs pcp +13% vs pcp +9% vs pcp -69% vs pcp 6
Slide 8: Profit and loss summary
Profit and loss summary H1 23 H1 22 Growth Constant Revenue up 21% vs pcp v % currency % A$m • ANZ +19%: higher yield (+9%) and job ad volumes (+8%) • SEEK Asia +25%2: higher yield (+22%) and job ad volumes (+1%) Continuing Operations Operating expenses up 29% vs pcp (up 17% excluding v Revenue 626.
Slide 9: Cashflow summary
Cashflow summary A$m H1 23 1 Operating cashflow1 to EBITDA conversion of 87% Operating activities • Reflects seasonally higher payments in H1 and transition to 1 Operating cashflows (excl. interest, tax etc) 247.2 new budget-based model in SEEK Asia Interest and transaction costs (25.1) Tax (84.0) T
Slide 10: Balance sheet leverage
Balance sheet leverage Reconciliation to reported net debt Borrower Group1 net debt of A$1.07bn v A$m 31-Dec-22 30-Jun-22 Change • Materially in line with 30 June 2022 1 Borrower Group net debt (1,070.9) (1,045.2) (25.7) Zhaopin cash 1.8 1.0 0.8 Borrower Group net leverage decreased to 1.6x v Zhaopi
Slide 11: Capital management and dividends
Capital management and dividends Debt facilities Dividend Established new US$200m (A$294m) debt facility in December 2022 H1 23 dividend of 24 cents per share • Long term facility with duration of 6.5 years • Growth of 4% vs pcp • Will fund repayment of subordinated debt at first call date in June 2
Slide 12: Employment marketplaces
Employment marketplaces 11
Slide 13: Employment marketplaces highlights
Employment marketplaces highlights Revenue EBITDA Market position Strategy Revenue growth across EBITDA grew whilst Maintained market positions Strategic priorities APAC investing for the long term in competitive environment progressing • Revenue growth of 21% vs pcp • EBITDA growth of 13% vs pcp, •
Slide 14: SEEK ANZ performance
SEEK ANZ performance Volume and yield growth, whilst investing for the long term Financials Job ad volumes up 8% (vs pcp) v • Growth reflects ongoing strength of the labour market REVENUE EBITDA MARGIN • Some moderation in Q2 FY23 although off a high base $455m $276m 61% Average ad yield up 9% (vs p
Slide 15: SEEK ANZ – candidate activity
SEEK ANZ – candidate activity Increased engagement and higher applications per ad Monthly unique visitors (m)1 High levels of candidate engagement during H1 23 v 15 • Average monthly unique visitors up 11% vs pcp • Engagement benefitting from various factors including: 12 • Marketing campaigns (e.g.
Slide 16: SEEK ANZ – hirer activity
SEEK ANZ – hirer activity Continuation of high demand for labour Job ads posted by month (‘000s)1 Job ad volumes grew, despite some moderation in Q2 v 350 • Job ad volumes up 8% vs pcp 1 and unique hirers2 up 4% vs pcp 300 • Growth rates moderated in Q2 FY23 particularly in Hospitality 250 and Retai
Slide 17: SEEK AU competitive metrics
SEEK AU competitive metrics Maintained market and brand metrics Share of AU placements1,2 (%) Maintained share of placements v As at Jan-23 30.7% • Placement share of 30.7% (vs 29.7% at FY22) • Lead over nearest competitor of 3.7x Record brand awareness v 8.4% 6.2% • Unprompted brand awareness of 90
Slide 18: SEEK Asia performance
SEEK Asia performance Yield growth driving operating leverage Financials Job ad volumes up 1% (vs pcp) v • Volumes ahead of pcp in Q1 FY23 but below pcp in Q2 FY23 • New budget-based contract structure leading to some rationalisation REVENUE EBITDA MARGIN of job ads posted and higher depth adoption
Slide 19: SEEK Asia – candidate activity
SEEK Asia – candidate activity Candidate activity remains high Monthly active users (m) Growth in key metrics despite elevated comparative period v • Monthly active users up 6% in H1 23 vs pcp (average) and 11% 19 above pre COVID-19 levels1 • Monthly candidate applications up 18% in H1 23 vs pcp (av
Slide 20: SEEK Asia – hirer activity
SEEK Asia – hirer activity Hirer metrics reflective of changes to commercial model Paid job ads volume (000s) New commercial model rolled out in H1 23 v SEEK Asia total • Launch of budget-based contract structure in all markets 300 (replaces volume-based contracts) 250 • Increased use of Lite ads (f
Slide 21: SEEK Asia – market insights
SEEK Asia – market insights Developed markets Emerging markets Hong Kong Malaysia Singapore Indonesia Thailand Philippines Labour force1 3.8m 16.3m 3.3m 139.2m 39.1m 43.8m Internet penetration %1 92% 90% 92% 54% 78% 50% % of placement activity2 using online 74% 75% % of placement activity using orga
Slide 22: Other businesses
Other businesses 21
Slide 23: Employment marketplaces
Employment marketplaces OCC Brasil Online Zhaopin Subsidiary - 100% owned by SEEK Equity-accounted investment - 23.5% owned by SEEK Subsidiary - 98.2% owned by SEEK RMBm Growth MXNm Growth BRLm Growth Pro forma (100% basis) H1 23 H1 22 % Pro forma (100% basis) H1 23 H1 22 % Pro forma (100% basis) H1
Slide 24: Platform support
Platform support Investing to support the core employment marketplaces Financials Key assets A$m Growth • Online employment marketplace utilising aggregation H1 23 H1 22 % technology Revenue 19.1 13.9 37% • Operates alongside SEEK’s core platforms to drive ad scale EBITDA (11.2) (13.1) 15% and suppo
Slide 25: Platform Unification
Platform Unification 24
Slide 26: Platform Unification
Platform Unification Program progressing well with majority of work to be undertaken in FY23 1 Objectives H1 23 progress One unified platform by the end of FY24 • Implemented budget-based contract structure in Asia • APAC employment marketplaces centrally hosted on an optimised ANZ platform • Migrat
Slide 27: SEEK Growth Fund
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Slide 28: Update on the SEEK Growth Fund
Update on the SEEK Growth Fund Portfolio Overview • Adjusted portfolio value increased 38%1 to A$2,254m • Value of A$2,254m is after a downward adjustment of 18% to reflect disconnect between public and private valuations • The Fund’s top 5 assets comprise 76% of total unadjusted valuation2 • New st
Slide 29: SEEK Growth Fund valuation
SEEK Growth Fund valuation Fund valuation at 31 December 2022 Key portfolio movements • Solid returns in weak macro conditions demonstrates that performance is more A$m driven by structural and business factors 1 SEEK seeded assets 1,215 2 • Gains: Predominately driven by funding rounds in last 12 m
Slide 30: Portfolio assets
Portfolio assets Education HR SaaS Contingent Labour Key structural • Technology is improving the experience • Cloud-based solutions are solving large • Technology solutions are delivering trends for students and institutions and this is HR problems more effectively and at significant efficiencies i
Slide 31: Strategy update
Strategy update 30
Slide 32: SEEK's growth drivers
SEEK’s growth drivers Focused on opportunities in core businesses Significant growth Organic growth the opportunities in core focus, but will businesses consider M&A (ANZ and Asia) Underlying economic Enrichment and Aligning price to M&A to enhance growth and offline to expansion of the value that c
Slide 33: Strategic focus areas
Strategic focus areas H1 23 progress across core capabilities Strategic focus areas H1 23 progress • Consolidate to one flexible platform for • Platform Unification program progressing well towards completion Scalable, reliable, scale efficiencies, rapid innovation, by the end of FY24 safe platforms
Slide 34: FY23 outlook
FY23 outlook 33
Slide 35: FY23 trading outlook
FY23 trading outlook • Low unemployment and high candidate engagement continue to provide generally positive market conditions for SEEK • Over the course of FY23 to date, ANZ volumes have gradually moderated relative to the levels observed in June /July 2022. As a result, applications per ad have sh
Slide 36: FY23 Guidance: SEEK (Continuing Operations)
FY23 Guidance: SEEK (Continuing Operations)1 Updated FY23 Guidance (excluding significant items) for SEEK (Continuing Operations): v • Revenue of approximately A$1.26bn • EBITDA of approximately A$560m • NPAT of approximately A$250m Assumptions: • Our assumptions are again based on our best estimate
Slide 37: Well positioned to grow shareholder value
Well positioned to grow shareholder value Attractive Leveraged to Ability to capture Opportunity to High cashflow Access to capital opportunity structural and apply deep price for the generation growth via the exists in core changes in the and unique data additional value provides ability SEEK Growt
Slide 38: Appendices
Appendices 37
Slide 39: Corporate and other information
Corporate and other information 38
Slide 40: Overview of SEEK's structure
Overview of SEEK’s structure1 SEEK Growth Fund Assets owned and managed by Assets owned by SEEK Growth Fund and SEEK managed by the Fund’s Manager3 SEEK ANZ SEEK Asia2 Brasil Online Platform Support Online Education OCC (formerly known as Caelum) HR SaaS Assets owned by SEEK and managed by the Fund’
Slide 41: Capital management and dividends
Capital management and dividends Operating cashflows to support long term investment and shareholder returns Capital management approach Dividend Policy Dividend reflects SEEK’s operating cashflow performance and Strong operating cashflows accommodates SEEK’s long-term investment priorities, includi
Slide 42: Additional financial and operational information
Additional financial and operational information 41
Slide 43: Reconciliation to statutory results
Reconciliation to statutory results SEEK results versus those presented in SEEK’s statutory accounts (Segment Note) H1 23 H1 22 Significant Significant A$m Excl. Significant Items Items Statutory Excl. Significant Items Items Statutory Significant items SEEK ANZ 455.0 0.0 455.0 383.1 0.0 383.1 SEEK
Slide 44: H1 23 segment results
H1 23 segment results Extract from SEEK’s Half year report 2023 (page 18) 43
Slide 45: Reconciliation of Gain on disposal of Discontinued Operations
Reconciliation of Gain on disposal of Discontinued Operations SEEK Growth Fund was deconsolidated in December 2022 A$m Fair value of retained equity accounted investment 1,957.5 1 Carrying amount of net assets derecognised, net of non-controlling interests (1,106.1) Liability derecognised for 15% no
Slide 46: Platform Unification
Platform Unification Incremental investment forecast unchanged at A$180m; composition updated Updated guidance FY22A FY23F FY24F Total Incremental investment A$30m A$110m A$40m A$180m Capex cost A$8m A$35m A$15m A$58m Opex cost A$22m A$75m A$25m A$122m Capex/Opex split 27% / 73% 32% / 68% 38% / 62%
Slide 47: Net debt detail
Net debt detail Year ended 31 December 2022 A$m Short-term Net cash/ Facility limit Borrowings Cash investments (debt) SEEK Ltd A$ bank debt A$612.5m (365.0) SEEK Ltd US$ bank debt US$852.5m (719.8) SEEK Ltd A$ subordinated floating rate notes A$225.0m (225.0) SEEK Limited Borrower Group1 (1,309.8)
Slide 48: SEEK Group Capex
SEEK Group Capex Product and technology (A$m)1 85 Key insights 1 57 Product and technology 55 51 51 • ANZ and Asia: Incremental Platform Unification (A$15m), launch of 3 43 8 seekMAX (Asia) and other product enhancements in job search, 84 recommendations, Talent Search and verifications 28 52 43 Pro
Slide 49: ESG
ESG 48
Slide 50: ESG highlights
ESG highlights Priorities that deliver social and environmental value for our communities and our people Fair hiring Modern slavery Data trust and Cyber • Focus on fair hiring in • Ongoing program of • Focus on protection SEEK Asia through safe modern slavery due diligence of customers’ privacy and
Slide 51: ESG highlights
ESG highlights Priorities that deliver social and environmental value for our communities and our people Climate People Social impact • Certified carbon neutral • 50:50 representation of women and • SEEK Employment Reports2 and the under Climate Active across men on the Executive Leadership Team SE
Slide 52: Disclaimer
Disclaimer 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, current as at the date of this presentation. The information is given in summary form and does not purport to be complete. Forward-l