Seek Limited · ASX:SEK
Seek — FY2005 Earnings Presentation
20 slides from Seek's earnings presentation, Aug 22, 2005
Slide 1: SEEK Limited 2005 Results Presentation
© seek SEEK Limited 2005 Results Presentation August 2005
Slide 2: 2005 Highlights
2005 Highlights Strong financials The Market Growth Exceeded Prospectus Revenue Growth crivers Structural move continues Market Leader Growth within core Seek Learning © seek T Revenue TEBITA T EBITA Margin ? Volume * Yield Online: 7 31% Print: 1 6% Strong market leadership Successful expansion sinc
Slide 3: Financials
Financials
Slide 4: Financial Highlights
Financial Highlights @ seek FY 2005 Prospectus FY2004 $m ‘ 4 69.6 Revenue To 4.2% | 75.3% rN a 29.4 EBITDA 5.8% 104.2% 28.4 EBITA ff 56% ff 104.3% A A 21.8 NPAT 10.1% f 82.4% (pre goodwill) 8.1 cents EPS 5.6 cents (pre goodwill) 16.4 cents NTA 11.6 cents
Slide 5: Strong Earnings Growth
Strong Earnings Growth @D seek Year ended FY04 Actual FY05 Actual % Year on FYO5 vs Forecasq 30 June 2005($m) Year Prospectus Prospectus FY06 SEEK 39.7 63.5 59.9% 60.6 48% 80.8] SEEK Learning - 641 0.0% 62 -1.6% 9.6} Total Operating revenue 39.7 69.6 75.3% 66.8 4.2% 90.4) Operating Expenses -25.3 -4
Slide 6: ...translated to strong cash flow
...translated to strong cash flow © seek Year ended 30 June EBITDA Tax Change in working capital Net interest received Cash Flow from operations Capital expenditure Payments for investments Other investing cash flows Dividends Net cash flow before financing Proceeds from issue of shares Payments for
Slide 7: Revenue key drivers
Revenue key drivers Key drivers exceeded prospectus Volume & Yield growth Ahead of prospectus on both key drivers Client numbers up by 43% SME revenue up by 85%
Slide 8: Operating Costs
Operating Costs @ seek coGs ° Improved agreement with IT course provider Skillsoft Operating expenses . Increased one off investments / discretionary spend : « Marketing & Online Alliances - increased investment «Learning business — rebranding website & launch OUA «IT infrastructure - ensure adequat
Slide 9: FY2006 Outlook
FY2006 Outlook @ seek Reaffirm Prospectus Forecasts for FY2006 " FY2005 financial year positions us well for FY2006 " Employment market remains strong and in line with prospectus forecasts " Solid start to FY2006 . SEEK is confident of achieving our FY2006 Prospectus forecasts . Too early to comment
Slide 10: : OMT Hininenenainnnnnd
a oo Ly : OMT Hininenenainnnnnd NO ee
Slide 11: The structural shift online continued in 2005
seek The structural shift online continued in 2005 Structural move accelerated in H2 05 Structural shift in the Australian Classifieds Market § é 250.0 5 2 3a 2000 —Print Job Ad Index g : ga — Online job ad index a oe ey 1500 <3 Bo 3 g 100.0 3 3 a £& ¢ 50.0 8 oO °° . r T T T T T dan-02 Jul-02 Jan-03
Slide 12: ...and still has a long way to go
© seek ..and still has a long way to go Total employment classified market Online penetration still only at «15% in $ terms Print volumes down by 6.4% YOY Online volumes up by 31.2% YOY US experience Penetration at 22%, but still growing at CAGR of 30% » Rate of market share shift broadly consistent
Slide 13: Market leader in an attractive market
Market leader in an attractive market @ seek SEEK remained the clear market leader on all metrics in 2005 User Time AU Job Ads AU Other MyCareer 3% 16% Other 13% CareerOne 22% Source: Nielsen NetRatings Source: SEEK estimates 13
Slide 14: eee |
ne eee | £5 SO en 14
Slide 15: The outlook for SEEK
The outlook for SEEK @ seek Organic growth ; “External” structural shift from Growth print to online + Volume Growth. : a : . : + ~ Early stage markets +0. Seek Learning ..« - Geographic : : : + SME Pricing wns + Changing mix +. Aligning value & pricing Product expansion « Resume. database + ~Matchi
Slide 16: SEEK growth drivers
SEEK growth drivers @D seek Volume Growth 4. Early stage markets . Government: 105% increase in volumes since dedicated resources . Very significant growth potential -estimated print market = $100m . Healthcare: « Solid traction with volumes up to 5,662 at June 2005 Significant potential - estimated
Slide 17: SEEK growth drivers
SEEK growth drivers @D seek Pricing 1. Changing mix SME market is higher yielding 2 Aligning value & pricing » Strategy and operational capability currently being developed to better align value and price proposition Product expansion 1. Non Job Ad Revenue More sophisticated matching technology curr
Slide 18: SEEK Learning — New Strategy...solid progress
© seek SEEK Learning — New Strategy...solid progress SEEK Learning Strategy + Utilise sales / marketing & distribution capabilities and leverage jobseeker and advertiser base to create the key marketplace for vocational training Jul 04: Acquired SelfCert, Dec 04: Renegotiated contract with the cours
Slide 19: SEEK Learning — DWT Acquisition
seek SEEK Learning — DWT Acquisition © . SEEK Learning has acquired 100% of Dynamic Web Training Pty Ltd (DWT), a leading IT education & training company . DWT overview : . Established in 2001 and operates in Sydney & Melbourne . Provides training courses in Macromedia, Adobe, Microsoft Office and M
Slide 20: Conclusion
Conclusion »1) Ad. volume growth «Early Stage Markets - « Geographic oe SMEs "2) Yield Expansion. «Changing Mix . Aligning value & pricing -3) Value Chain ‘Expansion » Eg-resume databases ~~ Sf in development In development Combination of structural market shift and volume growth —. strategies will