Seek Limited · ASX:SEK
Seek — H1 FY2007 Earnings Presentation
24 slides from Seek's earnings presentation, Feb 13, 2007
Slide 1: SEEK Limited Results Presentation
© seek SEEK Limited Results Presentation 6 months to 31 December 2006
Slide 2: Overview — H1FY07
Overview — H1FY07 © seek Financials Revenue up 48% pcp NPAT up 63% pep Interim dividend declared — fully franked 6.0 cents per share Strong EPS growth up 62% pcp Market Dynamics Employment market remains buoyant Strong online migration continues Market share growth Strategic growth agenda Expanded m
Slide 3: Financials
© seek Financials
Slide 4: Financial highlights
Financial highlights ..... @ seek H106 H107 $ Chg % Chg $m $m Revenue 47.4 70.0 26 4 PP aa% EBITDA 21.3 34.6 13.0 63% EBITA 20.7 33.4 12.7 61% NPAT 14.7 23.9 92 63% EPS 52 84 32 A 82% DPS 37 6.0 23 62%
Slide 5: Profit & Loss Summary
Profit & Loss Summary ..... seek Interim Result Half Year Half Year Half Year Half Year % PCP $PCP to 31 Dec to 31 Dec to 31 Dec to 31 Dec December 34, 2006 2003 2004 2005 2006 Growth Growth $m Total operating revenue 17.5 314 474 70.0 48% 22.6 Operating expenses -12.2 18.5 -26.1 -35.4 36% 9.3 EBITD
Slide 6: Strong growth trajectory continues
Strong growth trajectory continues.... @ seek @H103 WH104 OH105 OH106 BH107 : Revenue EBITDA NPAT
Slide 7: Operating leverage continues to grow
Operating leverage continues to © seek grow (pcp) ..... 50.0% 45.0% 40.0% 35.0% | 30.0% 25.0% 7 20.0% 15.0% 10.0% 5.0% 0.0% EBITDA Margins MH103 WH104 OH105 OH106 2H107
Slide 8: H107 key revenue drivers
H107 key revenue drivers ..... © seek Employment Revenue up 46.4% Driven by: » Strong volume growth Across both Australia and New Zealand . 150,000 ads on site ~ Dec 06 » Improved Yield Mix change continues to drive yield Price rise - In line with increased value » Product Expansion » Successful lau
Slide 9: Continued investment in platform for future growth
Continued investment in platform for © seek future growth ..... " H107 Operational Expenditure up $ 9.3m (36%) " SEEK learning infrastructure —- new website launch Building brand — Marketing on & offline IT infrastructure & SAP implementation — ensure adequately positioned for growth Product Develop
Slide 10: H207 Outlook
H207 Outlook ..... @ seek First half result positions us well for solid full year result Employment market remains strong " Continued migration of employment advertising from print to online is driving our core growth SEEK Learning is growing rapidly: organic growth and IDP acquisition We anticipate
Slide 11: Employment Market Dynamics
Employment Market Dynamics Stand out _from the crowd SEEK and You Stati Find © seek SEEK and You Shail Find @ seek SEEK and You Shalt Find © seek to] seek 14
Slide 12: Investment in Brand is delivering results with strong awareness lead
Investment in Brand is delivering results with strong awareness lead over competitors .... seek Unaided awareness of employment websites in Australia 50% 5 40% witch Ww 30% 20% 10% 0% SEEK Career One My Career Source: Newspoll Telephone Omnibus 24M — 26" November 2006 Sample size 700 adults aged 18+
Slide 13: Investment in Brand is delivering results with strong awareness lead
Investment in Brand is delivering results with strong awareness lead over competitors .... © seek Evearen voRpne Googie Tras seek careerone MyCareer Source: Google Trends ~ Australia users only ~ Searches using the word SEEK, Careerone & Mycareer — 2004, 2005, 2006 13
Slide 14: Increased job ad volume and jobseeker traffic in Australia
.... leading to increased job ad © seek volume and jobseeker traffic in Australia .... Unique Browsers and Eyeball Minutes 72% of time spent between the 3 major employment sites was on SEEK YOY Mkt reach % of market Jan-06 Jan-07 Growth Absolute dan-07 Jan-07 Jan-07 Aggregate 3,016,634 3,669,487 22%
Slide 15: SEEK NZ despite increased competition
...and in SEEK NZ despite increased © seek competition... Unique Browsers and Eyeball Minutes 67% of time spent between the 3 major employment sites is on SEEK. YoY Mkt reach | Eyeball Minutes % of market Jan-06 Jan-07 Growth Absolute Jan-07 Jan-07 Jan-07 Aggregate 358,842 526,969 4T% 168,127 SEEK 2
Slide 16: Growth
Growth BUSING: seekcommercial Cah WORE CHAP ISIE © seek 16
Slide 17: Focus on key growth drivers remains consistent
Focus on key growth drivers remains consistent ..... © seek 17
Slide 18: Structural migration of job ads continued over 2007
Structural migration of job ads © seek continued over 2007 ........ Structural shift in the Australian Classifieds Market Online v Print Metro: Jan 02 — Dec 06 8 (Seasonally Adjusted; Jan 02 = 100) 350 E Se — Print Job Ad index ~A 300 —— : 23 — Online job ad index SZ 260 o 28 3 4 200 $2 se (150 Sw >
Slide 19: Online revenue as % of total employment market remains very low
......, Online revenue as % of total @ seek employment market remains very low ..... Revenue Penetration in US v. Australia 35% 4 30% 4 26% 4 . ° Australia 23% 20% 4 18% 4 Revenue Penetration Rate 10% 4 5% 4 — Z2yearlag —~ 0% 2001 2001 2002 2003 2004 2008 2006 2007 Source : SEEK estimates for FY07 1
Slide 20: Employment growth moving forward
Employment growth moving forward ..... © seek Volume: Early Stage Markets . Healthcare: currently nearly 9,000 healthcare ads across the site . Education: continues to grow at faster rate than core verticals . Government. volumes up 108% (pcp) as we continue development of concurrent relationships w
Slide 21: SEEK Learning continues to expand
seek SEEK Learning continues to expand Strategy: Build the first & best place to go for career related education & training SEEK Learning growth driven by: . Acquisitions & Partnerships : - — FINSIA— Sept 06 . Product extension . All vocational course levels now offered - Post Grad, University, TAFE
Slide 22: IDP Education Australia
IDP Education Australia .... © seek Strategy & Opportunity : . Commercialisation of a Not for Profit organisation . increase market share for Australian bound students . Expand the IDP & IELTS product suite Complementary with SEEK Learning . Embedded relationships with University sector H107 Progres
Slide 23: Zhaopin
Zhaopin .... @ seek Strategy & Opportunity : Market in China still very early stage Zhaopin is one of the three leading online job boards in PRC Zhaopin has built strong position despite limited resources to date Opportunity for Zhaopin to become an even more formidable player in the future with rec
Slide 24: Conclusion — H1FY07
Conclusion — H1FY07 24