Slide 1: Full Year Results Presentation 2012
For personal use only Full Year Results Presentation 2012 12 months to 30 June 2012
Slide 2: Disclaimer
Disclaimer 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 current as at the date of this presentation. The information is given in summary form and does not purport to
Slide 3: Key Messages
3 For personal use only Key Messages
Slide 4: FY12 Key Messages
FY12 Key Messages Strong result in challenging conditions reflecting market leadership, strength of business model and execution of strategy For personal use only Group reported result • Record full year result with FY12 v pcp • Revenue 29%, EBITDA 43% and NPAT (Post NCI) 35% • Result achieved despi
Slide 5: Execution of strategy has led to FY12 look-through result
Execution of strategy has led to FY12 “look-through” result of Revenue ~A$657m & EBITDA ~A$235m For personal use only “Look-through” 1 Revenue “Look-through” 1 EBITDA FY04 –FY12 CAGR of 42.0% $657.4m FY04 –FY12 CAGR of 61.0% $235.0m $557.7m $173.8m $454.3m $187.5m $49.8m $128.3m $399.4m $73.8m $142.
Slide 6: Financial Performance
For personal use only Financial Performance 6
Slide 7: Record full year results achieved in FY12
Record full year results achieved in FY12... Group Headline Performance Key Financial Highlights For personal use only A$m Growth Strong performance across all of SEEK's businesses has FY12 FY11 $m % driven a record full year result Revenue1 442.3 343.1 99.2 29% • Strong Revenue growth of 29% (A$99.
Slide 8: Continuation of SEEK's track record of consistent growth
... which is a continuation of SEEK’s track record of consistent growth over a long period For personal use only Operating Revenue Reported EBITDA Reported NPAT (Post NCI) CAGR of 35.2% CAGR of 38.4% CAGR of 32.6% $131.7m $442.3m $193.6m $97.7m $343.1m $89.5m $280.9m $76.3m $135.6m $117.4m $208.8m $
Slide 9: Consistent performance across the board
Consistent performance across the board Reported Results by Operating Division Reported EBITDA by Business A$m Growth A$m Growth For personal use only FY12 FY11 $m % FY12 FY11 $m % Domestic Employment International 3 Operating Revenue 247.8 224.0 23.8 11% JobsDB EBITDA 20.8 3.5 17.3 n/m EBITDA 152.1
Slide 10: Strong Associate results and growth in dividends
Strong Associate results and growth in dividends Results by Associate & JV: Seek Share of NPAT Key Insights For personal use only A$m Growth International FY12 FY11 $m % SEEK achieved ~70% growth in Dividends Received 6 Zhaopin 16.5 8.7 7.8 91% JobsDB1 0.0 0.7 (0.7) (100%) • Since SEEK’s investment
Slide 11: SEEK generates strong cash flows and is well capitalised
SEEK generates strong cash flows and is well capitalised For personal use only Track record of growing cash flows1 Well capitalised on key credit metrics Operating Cash Flow Net Leverage Ratio FY04-FY12 CAGR of 30.7% $141.3m (Net Debt/EBITDA)2 FY11 1.3 $108.2m FY12 1.2 $80.4m $72.7m $64.2m Net Inter
Slide 12: SEEK Domestic
12 For personal use only SEEK Domestic
Slide 13: SEEK has changed the way people find jobs, and will do so again
SEEK has changed the way people find jobs, and will do so again In 2012 SEEK is 2012 into the Future... “Opportunity Matching” For personal use only helping transform candidate sourcing In 2000 SEEK transformed 2000 job advertising Online Job Ads ...assist recruiters & corporates by matching job opp
Slide 14: SEEK is extending its core capabilities to create a sourcing marketplace
SEEK is extending its core capabilities to create a more effective and efficient sourcing marketplace For personal use only ...and refine & develop products SEEK to leverage its core assets ... to create better matching/search experiences Leading positional assets • SEEK accounts for 70% of ad share
Slide 15: If we execute on our strategy, the answer will be SEEK
If we execute on our strategy, the answer to the questions below will be “SEEK” For personal use only For All Job Seekers: Where did you find your last job? For All Recruiters & Corporates: Where did you source your last candidate? SEEK’s role is to assist with the matching & communication of job op
Slide 16: SEEK Australia & New Zealand achieved a solid result
SEEK Australia & New Zealand achieved a solid result in a challenging macro environment For personal use only SEEK Domestic Financials Key Insights A$m Growth Revenue growth of 11% (FY12 v FY11) FY12 FY11 $m % • Revenue growth attributable to volume of 1% & yield of Revenue 247.8 224.0 23.8 11% 10%
Slide 17: Major product achievements in FY12
Major product achievements in FY12 Product developments Refinement of For personal use only in Mobile & Tablet Jobseeker Profiles • Launch of iPhone app with >560k apps • Our first release towards a more two-way downloaded in the last 3 months candidate sourcing market • Since launch #1 iPhone app i
Slide 18: SEEK is well positioned versus its competitors
SEEK is well positioned versus its competitors... AU Competitive Landscape1 Key Insights For personal use only Ads Visits • We take all competitors (including LinkedIn) very Growth Growth Jul 12 Jul 12 seriously YoY % YoY % SEEK 139,094 (9%) 14,247,774 9% • To date, LinkedIn has had very limited imp
Slide 19: Positioned for growth via cyclical and structural labour market shifts
... positioned for growth via cyclical & structural shifts in Australia’s labour market... Record results achieved despite ad volumes Demand for labour & ageing of population For personal use only being 27% below the peak likely to lead to labour shortages 120.0 SEEK New Job Index Projected growth i
Slide 20: Structural migration from print to online
...and well placed for growth due to continuing structural migration from print to online For personal use only Structural migration of revenue from print to online ...reflecting ad volume trends and is a continuing trend ... user preferences. Online Revenue as a % of total employment market 90 USA
Slide 21: SEEK International
21 For personal use only SEEK International
Slide 22: Market opportunity is large with coverage of ~2.2b people
Market opportunity is large with coverage of ~2.2b people, >20% of Global GDP & exposure to favourable structural trends For personal use only China Zhaopin CJOL1 (56 %) Mexico • Zhaopin is #2 overall Asia • Population of ~1,343m OCC ( 57 %) JobStreet JobsDB2 • Internet penetration ~38% (22 %) (55 %
Slide 23: Strategy Update: International
Strategy Update: International For personal use only Strategic Objectives for Medium to Long Term SEEK has market leading positions across Asia and Latin America • Re-invest in people, sales, marketing, product & IT to either maintain or grow market share in key markets Build capabilities to support
Slide 24: SEEK International achieved a strong result
SEEK International achieved a strong result SEEK International1 – “Look-through”2 “Look-through” Historical financials1, 2 A$m Growth Revenue EBITDA For personal use only CAGR of 96.1%4 $173.8m CAGR of 132.7%4 "Look-through" FY12 FY11 $m % Revenue 173.8 128.3 45.5 35% $128.3m EBITDA 49.8 35.7 14.2 4
Slide 25: Zhaopin continues to achieve strong results
Zhaopin continues to achieve strong results Zhaopin Financials Key Insights For personal use only RMBm Growth Strong Result in FY12 Pro-Forma FY12 FY11 RMBm % • Online revenue growing at 31% vs pcp Online Revenue (100%) 692.8 529.6 163.1 31% • EBITDA margins at 25% driven by operating efficiencies T
Slide 26: JobsDB achieved solid earnings growth
JobsDB achieved solid earnings growth and is positioning the business for the long-term JobsDB Financials Key Insights For personal use only HKDm Growth 3 Performing well and continues to pay dividends Pro-Forma FY12 FY11 HKDm % • Pleasing result despite slowing economic conditions in Revenue (100%)
Slide 27: JobStreet achieved solid revenue growth
JobStreet achieved solid revenue growth JobStreet Financials Key Insights For personal use only Pro-Forma FY12 FY11 MYRm % Solid revenue growth & continues to pay dividends Revenue2 (100%) 153.0 129.6 23.4 18% • Revenue growth of 18% & EBITDA growth of 6% vs pcp EBITDA (100%) 58.0 54.5 3.5 6% • Cont
Slide 28: Brasil Online achieved a solid result in an investment period
Brasil Online achieved a solid result in an investment period Brasil Online Financials Key Insights For personal use only BRLm Growth Solid result in context of investment period Pro-Forma FY12 FY11 BRLm % • Pleasing revenue result given soft macro conditions Revenue (100%) 200.3 176.2 24.2 14% • On
Slide 29: OCC performing well and generating strong cash flow
OCC performing well and generating strong cash flow OCC Financials Key Insights For personal use only MXNm Growth Solid Results achieved during significant transition period Pro-Forma FY12 FY11 MXNm % • Undertaken transition to better capture value via new Revenue (100%) 199.5 173.0 26.5 15% pricing
Slide 30: SEEK Education
30 For personal use only SEEK Education
Slide 31: Update: THINK Education Group
Update: THINK Education Group Potential minority investment by a leading Global For personal use only Education Company into THINK • SEEK is in exclusive discussions with a Global Education Company looking to acquire a minority shareholding (c.20%) in THINK • If completed, this will be accompanied b
Slide 32: SEEK Education performed well in FY12
SEEK Education performed well in FY12 SEEK Education1 – “Look-through”2 “Look-through” Historical financials 1, 2 For personal use only A$m Growth Revenue EBITDA "Look-through" FY12 FY11 $m % CAGR of 68.6% CAGR of 57.1% Revenue 235.8 205.3 30.5 15% $235.8m $39.7M EBITDA 33.0 18.4 14.7 80% $207.8m $2
Slide 33: SEEK Learning achieved a strong result
SEEK Learning achieved a strong result SEEK Learning Financials1 Key Insights For personal use only A$m Growth Solid H2 FY12 Result with • Revenue of A$28.5m (H2 v pcp growth of ~18%2) FY12 FY11 $m % • EBITDA of A$10.1m (H2 v pcp growth of ~18%2) Revenue 49.5 44.5 5.0 11% with margins of 35% EBITDA
Slide 34: THINK achieved a strong underlying result in H2 FY12
THINK achieved a strong underlying result in H2 FY12* THINK Financials Key Insights For personal use only Strong H2 FY12 Result A$m Growth • Revenue of A$46.5m (H2 pcp growth of 29%) FY12 FY11 $m % • EBITDA of A$5.0m Revenue 86.9 69.1 17.8 26% EBITDA 5.3 (7.5) 12.8 n/m Key drivers of result EBITDA (
Slide 35: IDP achieved a pleasing result despite subdued conditions
IDP achieved a pleasing result despite subdued market conditions IDP Financials Key Insights For personal use only A$m Growth Solid financial result FY12 FY11 $m % • Revenue growth of 8% despite challenging conditions • In FY12, received total dividends of A$6.0m2 (FY11: Revenue (100%) 204.6 189.8 1
Slide 36: Swinburne Online performing ahead of expectations
Swinburne Online performing ahead of expectations Swinburne Online Financials For personal use only Key Insights A$m Growth Pleasing financial result FY12 FY11 $m % • Revenue and EBITDA result are ahead of business Revenue (100%) 2.2 0.0 2.2 n/a plan expectations for initial start-up phase EBITDA (1
Slide 37: Outlook
37 For personal use only Outlook
Slide 38: FY13: Short Term Outlook
FY13: Short Term Outlook The guidance statements below may vary in the event of a major macroeconomic shock in either or both domestic and global economic conditions For personal use only • Expect an improved result for FY13 from FY12 across Revenue, EBITDA and NPAT SEEK • SEEK to provide an update
Slide 39: Medium to Long term Outlook for SEEK
Medium to Long term Outlook for SEEK Medium Term Outlook Long Term Outlook For personal use only SEEK Domestic Long term growth horizon for SEEK • Through the cycle, expect continuation of structural • Through the cycle, SEEK is well positioned for robust migration of revenue from print to online gr
Slide 40: Appendices
For personal use only Appendices Contents Page Number SEEK Group 41 SEEK Domestic 48 SEEK International 51 SEEK Education 63 Overview of Non-IFRS Information 69 40
Slide 41: SEEK Group
41 For personal use only SEEK Group
Slide 42: Results by Business
Results by Business Reported Results by Business For personal use only International A$m Growth JobsDB 1 FY12 FY11 $m % Operating OperatingRevenue Revenue 52.9 8.7 44.2 n/m EBITDA EBITDA 20.8 3.5 17.3 n/m EBITDA EBITDA(%)(%) 39% 40% Brasil 2 Operating Revenue 8.8 n/a 8.8 n/a EBITDA 3.0 n/a 3.0 n/a E
Slide 43: Details of SEEK's look-through P&L Methodology
Details of SEEK’s “look-through” P&L Methodology “Look-through” P&L Methodology Equity Ownership & FX Rates Applied For personal use only • “Look-through” Revenue & EBITDA presented for each respective 12 SEEK's Equity Ownership FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 month period has been calc
Slide 44: SEEK's detailed look-through P&L Analysis
SEEK’s detailed “look-through” P&L Analysis "Look-through" Revenue & EBITDA (Non-IFRS Financial Information) A$m FY04 FY04 FY05 FY05 FY06 FY06 FY07 FY07 FY08 FY08 FY09 FY09 FY10 FY10 FY11 FY11 FY12 FY12 Underlying SEEK Share Underlying SEEK Share Underlying SEEK Share Underlying SEEK Share Underlyin
Slide 45: Net Debt & Capex Summary
Net Debt & Capex Summary Net Debt movements 30 June 2011 to 30 June 2012 Capex Summary For personal use only A$m 18.0 16.9 Reconciliation of SEEK Reported Net Debt 16.0 14.0 12.1 Reported Payment to Acquisition Acquisition Operational Reported 12.0 8.7 A$m 30 June 2011 JDB Vendor of BOL of OCC movem
Slide 46: Analysis of key items below EBITDA
Analysis of key items below EBITDA For personal use only Analysis Key Insights Net Interest Expense A$m Growth • Higher net debt at 30 June 2012 of A$227.8m was key driver of increased FY12 FY11 A$m % net interest expense1 Net Interest Expense 20.6 12.9 7.7 60% • Higher net debt driven predominantly
Slide 47: Significant items included in reported results
Significant items included in reported results EBITDA Key Insights For personal use only A$m FY11 Significant items FY12 FY11 JobsDB transaction costs Reported EBITDA 193.6 135.6 • SEEK Asia's share of transaction costs on acquisition of Reported EBITDA includes the following: JobsDB (EBITDA) JobsDB
Slide 48: SEEK Domestic
48 For personal use only SEEK Domestic
Slide 49: Social Networks (incl. LinkedIn) - What is SEEK's position?
Social Networks (incl. LinkedIn) - What is SEEK’s position? For personal use only What we’re seeing Our Assessment Our Strategy • Social networking is growing but • Our threat assessment hasn’t materially • Stay focused on ROI leadership fragmented with Facebook, LinkedIn, changed • Our view of jobs
Slide 50: SEEK Mobile is attracting strong visitor growth in Australia
SEEK Mobile is attracting strong visitor growth in Australia For personal use only SEEK Mobile Visits (‘m) Key Insights 'm • ~6m mobile visits in July 2012 6.0 • ~2.3m iPhone visits per month 5.0 • >560k SEEK Apps downloaded in last 4.0 3 months 3.0 2.0 1.0 - Apr-10 Apr-11 Apr-12 Feb-10 Sep-10 Feb-1
Slide 51: SEEK International
51 For personal use only SEEK International
Slide 52: Zhaopin – Detailed Financials & Key drivers
Zhaopin – Detailed Financials & Key drivers P&L Total Positions Posted RMBm - at 100% of Zhaopin unless indicated Revenue H1 FY11 H2 FY11 H1 FY12 H2 FY12 For personal use only 900,000 Online Revenue 234.4 295.3 336.1 356.7 800,000 Other Revenue 60.8 50.5 74.7 54.1 700,000 Total Revenue 295.2 345.8 4
Slide 53: Zhaopin – Key Competitor Metrics
Zhaopin–Key Competitor Metrics Monthly Page Views - month end (m) Job Ads - month end ('000) For personal use only 900 2,500 754 772 800 1,998 2,012 705 646 2,000 1,887 700 629 1,670 1,731 1,729 596 600 534 506 1,589 1,500 1,361 500 400 1,000 300 712 644 545 200 159 431 90 500 76 81 100 - - Dec-10 J
Slide 54: JobsDB – Detailed Financials & Key Markets
JobsDB – Detailed Financials & Key Markets P&L Market Landscape HKD m - at 100% of Job sDB unless otherwise indicated For personal use only H1 FY11 H2 FY11 H1 FY12 H2 FY12 Net Revenue 172.0 212.7 201.8 219.1 Total Overheads 112.1 138.3 120.3 135.4 EBITDA 59.9 74.4 81.5 83.7 EBITDA / Net Rev % 35% 35
Slide 55: OCC & Brasil Transactions
OCC & Brasil Transactions Transaction Overview - OCC Transaction Overview- Brasil Online For personal use only • SEEK increased its stake in OCC from 41% to 57% 1 • SEEK increased its stake in Brasil Online from 30% to 51% • Total consideration for the transaction was ~A$22.3m • Total consideration
Slide 56: PPA Amortisation Profile – OCC, Brasil & JobsDB
PPA Amortisation Profile – OCC, Brasil & JobsDB For personal use only OCC1 Brasil Online1 JobsDB A#039;m A#039;m A#039;m 1.5 2.5 6.0 35% 2.0 5.0 47% 1.0 4.0 1.5 3.0 1.0 9% 0.5 12% 2.0 0.5 1.0 0.0 0.0 0.0 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 H1 H2 H1 H2 H1 H2 • The amorti
Slide 57: OCC & Brasil Transactions - Balance Sheet Impacts
OCC & Brasil Transactions - Balance Sheet Impacts Balance Sheet- Acquisition impacts For personal use only OCC Brasil SEEK Group SEEK Group (excl. BOL & Underlying Underlying PPA entries Consolidated PPA entries Consolidated (Reported) OCC) BS BS As at 30 June 2012 A$M Assets 35% Cash and cash equiv
Slide 58: OCC – Detailed Financials & Key drivers
OCC – Detailed Financials & Key drivers P&L Ad volume MXN m - at 100% of OCC unless otherwise indicated For personal use only H1 FY11 H2 FY11 H1 FY12 H2 FY12 120,000 Net Revenue 82.3 90.7 101.1 98.4 110,000 COGS 12.8 15.9 17.2 19.4 100,000 GP 69.5 74.8 83.9 79.0 GP / Net Rev % 84% 82% 83% 80% 90,000
Slide 59: OCC – Key Competitor Metrics
OCC–Key Competitor Metrics1 Monthly Page Views2 (‘000) Paid Job Ads ('000) For personal use only 50,000 120,000 109,089 45,000 42,873 40,000 100,000 89,150 35,000 30,000 80,000 73,599 30,000 25,940 25,000 60,000 20,000 15,000 40,000 8,000 10,000 6,051 5,531 3,200 20,000 7,675 13,175 4,000 9,200 9,89
Slide 60: Brasil Online – Detailed Financials & Key Drivers
Brasil Online – Detailed Financials & Key Drivers P&L Invoiced & Active Users BRL m - at 100% of Brasil Online unless otherwise indicated 350,000 For personal use only H1 FY11 H2 FY11 H1 FY12 H2 FY12 300,000 Net Revenue 83.2 92.9 95.3 105.0 250,000 Total Overheads (incl. COGS)3 61.2 63.1 72.6 80.0 2
Slide 61: Reconciliation of International associates' EBITDA to SEEK share of profits
Reconciliation of SEEK’s International associate’s EBITDA to SEEK share of profits For personal use only Zhaopin JobStreet FY12 FY11 FY12 FY11 A. Underlying RMB$m at 100% RMB$m RMB$m A. Underlying MYRm at 100% MYRm MYRm EBITDA 207.3 121.7 EBITDA 58.0 53.6 D&A (12.4) (11.7) Tax & other (11.2) (9.1) I
Slide 62: Reconciliation of International associates' EBITDA to SEEK share of profits
Reconciliation of SEEK’s International associate’s EBITDA to SEEK share of profits For personal use only OCC Brasil Online FY12 FY11 FY12 FY11 A. Underlying MXNm at 100% MXNm MXNm A. Underlying BRL$m at 100% BRL$m BRL$m EBITDA 82.0 79.1 EBITDA 47.8 51.9 Non-recurring expenses - (26.8) Other non-oper
Slide 63: SEEK Education
63 For personal use only SEEK Education
Slide 64: SEEK Learning – Detailed Financials & Key drivers
SEEK Learning – Detailed Financials & Key drivers P&L Key Drivers A#039;m H1 FY11 H2 FY11 H1 FY12 H2 FY12 For personal use only Revenue H1 FY11 H2 FY11 H1 FY12 H2 FY12 Enquiries ('000) 179.0 207.2 187.3 225.9 SEEK Learning AUS 18.5 22.1 19.1 26.5 pcp growth (%) 6% 8% 5% 9% SEEK Learning UK1 - - - - DWT
Slide 65: THINK – Detailed Financials & Key drivers
THINK– Detailed Financials & Key drivers P&L Group FY12 Key Earnings Drivers A$m H1 FY11 H2 FY11 H1 FY12 H2 FY12 Students Taught Online 8,419 Revenue 37% of rev For personal use only Net Revenue 32.6 34.1 39.7 42.8 30.2m Avg Fees 3,591 Other Revenue 0.5 1.8 0.6 3.7 Fee Revenue 1 Total Revenue 33.1 3
Slide 66: THINK – Key drivers
THINK–Key drivers Students Educated1 by Modality Discussion on Student Trends # • Overall student growth of 11% (+1,684 students) For personal use only 18,000 16,578 16,000 14,894 • Continuation of growth in online students with +18% (+1,257 14,000 students) 12,000 8,419 • Online student growth stro
Slide 67: IDP - Detailed Financials & Key drivers
IDP - Detailed Financials & Key drivers P&L IELTS Metrics A$m H1 FY11 H2 FY11 H1 FY12 H2 FY12 Rev per Test candidate (A$) For personal use only Test candidates (#) Revenue IELTS 62.3 67.5 66.0 76.9 314,759 APF 20.3 22.1 18.7 22.8 254 251 252 269,170 261,737 244 Other 7.5 10.1 8.9 11.4 244,884 Total
Slide 68: Reconciliation of Education Associates' EBITDA to SEEK share of profits
Reconciliation of SEEK’s Education Associate’s EBITDA to SEEK share of profits For personal use only IDP Swinburne Online FY12 FY11 FY12 FY11 A. Underlying A$m at 100% A$m A$m A. Underlying A$m at 100% A$m A$m EBITDA 28.1 25.7 EBITDA (3.2) (0.2) D&A (6.8) (2.5) D&A (0.0) - Prior year adjustment (1.5
Slide 69: Overview of Non-IFRS Information
For personal use only Overview of Non-IFRS Information 69
Slide 70: Overview of SEEK's non-IFRS financial information
Overview of SEEK’s non-IFRS financial information What is non-IFRS financial information? IFRS financial information is financial information that is presented in accordance with all relevant accounting standards For personal use only Non-IFRS financial information is financial information that
Slide 71: For personal use only
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