Seek Limited · ASX:SEK
Seek — Debt Investor Presentation (June 2012)
26 slides from Seek's debt investor presentation, Jun 4, 2012
Slide 1: SEEK Subordinated Notes Investor Presentation
Investor Presentation For personal use only SEEK Subordinated Notes 4 June 2012
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by SEEK Limited (Issuer) in relation to the offer (Offer) of SEEK Subordinated Notes (Notes). The Offer will be made in or accompanied by a copy of the Prospectus (Prospectus). The Issuer intends to lodge a replacement Prospectus which will include the
Slide 3: Summary of SEEK Subordinated Notes
For personal use only Summary of SEEK Subordinated Notes 3
Slide 4: Offer Summary
Offer Summary Issuer • SEEK Limited (“SEEK”) For personal use only Security • SEEK Subordinated Notes (“Notes”) Offer Size • A$125 million with the ability to raise more or less Use of proceeds • To reduce senior debt and provide balance sheet flexibility Maturity • Perpetual Ranking • Subordinated
Slide 5: Further Details about SEEK Subordinated Notes
Further Details about SEEK Subordinated Notes For personal use only Fixed rate, semi-annual distributions until the Call Date to be set with reference to the Margin determined in the Bookbuild, but will not be less than a fully franked distribution rate of 6.02%, which is equivalent to 8.60% if the
Slide 6: Security Ranking
Security Ranking Illustration of ranking of SEEK’s obligations in respect of existing debt instruments and equity upon a winding-up¹ For personal use only Ranking Type Existing debt Amount arrangements (31 December and equity 2011 Pro Forma) Secured Debt None 0 Higher Syndicated Facility Serviced by
Slide 7: About SEEK
7 For personal use only About SEEK
Slide 8: About SEEK
About SEEK For personal use only • S&P/ASX200 company with a market capitalisation of approximately A$2.3bn¹ • One of the world’s largest online employment classifieds businesses by market capitalisation¹, and a provider of education via online and classroom education and training • SEEK is comprise
Slide 9: Market Leading Businesses in Online Employment Classifieds and Education
Market Leading Businesses in Online Employment Classifieds and Education For personal use only SEEK Domestic SEEK International SEEK Education Australia New Zealand Swinburne Online Description • Largest employment marketplace in • Market leading online employment • SEEK Education is involved in sal
Slide 10: SEEK has a Strong Market Position in Australia and Exposure to Favourable Structural Trends
SEEK has a Strong Market Position in Australia and Exposure to Favourable Structural Trends For personal use only Online is the preferred way to search for jobs...¹ ... and SEEK is the #1 brand² 70% 80% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Aug-06 Aug-07 Aug-08 Aug-09 Aug-10 Aug-
Slide 11: Potential for Growth
Potential for Growth SEEK Domestic For personal use only • Growth potential through a continuation of structural migration of revenue from print to online • Structural migration of revenue expected to drive higher yields over the long term SEEK International • Leveraged to favourable structural and
Slide 12: Key Strategies
Key Strategies SEEK has strategies in place to drive future growth across its three main business divisions For personal use only Volume • Continue to expand its presence in the SME, government, health and education sectors Domestic SEEK Yield • Development of premium advertising products to assist
Slide 13: Management has Delivered Solid Growth
Management has Delivered Solid Growth For personal use only Revenue – FY04-FY11 CAGR of 36% EBITDA – FY04-FY11 CAGR of 38% $136m $343m $117m $110m $281m $98m $210m $90m $80m $209m $208m $157m $49m $106m $29m $70m $40m $14m FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 1H FY12 FY04 FY05 FY06 FY07 FY08 FY09
Slide 14: Management has Delivered Solid Growth (cont.)
Management has Delivered Solid Growth (cont.) For personal use only NPAT (attributable to SEEK Shareholders) – FY04-FY11 CAGR of 32% Operating Cashflow– FY04-FY11 CAGR of 31% $108m $98m $90m $80m $76m $73m $64m $65m $61m $59m $56m $55m $42m $34m $24m $19m $17m $14m FY04 FY05 FY06 FY07 FY08 FY09 FY10
Slide 15: SEEK's Credit Metrics
SEEK’s Credit Metrics For personal use only Leverage Ratio (Borrowings¹ / EBITDA²) Interest Cover Ratio (EBITDA² / Interest Expense³) 7.7 x 7.7 x 1.6 x 1.1 x 1H FY12 1H FY12 1H FY12 1H FY12 Pro forma Pro forma Leverage Ratio Interest Cover Ratio ¹ SEEK’s borrowings are comprised of a syndicated bank
Slide 16: Impact of the Notes on SEEK's Financial Statements
Impact of the Notes on SEEK’s Financial Statements Consolidated Balance Sheet Pro forma adjustment – Pro forma adjustment – Consolidated pro forma For personal use only A$ million 31 Dec 2011 (reviewed) Acquisitions Issue of Notes Balance Sheet 31 Dec 2011 Assets Total current assets 129.0 (24.2) -
Slide 17: Key Features of Notes and Risks
For personal use only Key Features of Notes and Risks 17
Slide 18: Key Terms – General
Key Terms – General For personal use only Issuer • SEEK Limited Security • SEEK Subordinated Notes Ranking • Subordinated and unsecured Offer Size • A$125 million with the ability to raise more or less Currency • Australian dollars Face Value • A$100.00 per Note Maturity • Perpetual Call Date • 29 J
Slide 19: Key Terms – Distributions
Key Terms – Distributions Distribution • First Distribution Payment Date scheduled 31 December 2012 and thereafter on 29 June and 29 December each Payment year in arrears For personal use only • Expected (but not guaranteed) to be fully franked. To the extent not fully franked, Distributions will be
Slide 20: Key Terms – Conversion and Redemption
Key Terms – conversion and redemption For personal use only Issuer • SEEK can elect to convert or redeem Notes: redemption and • on the Call Date or on any Distribution Date thereafter; or conversion • following the occurrence of a Regulatory Event or Change in Control Event • SEEK can also elect to
Slide 21: Key Risks Associated with Notes
Key Risks Associated with Notes These and other risks associated with Notes are discussed in more detail in Section 5 of the Prospectus. All potential investors should review the risks outlined in the Prospectus and not rely on this presentation For personal use only The claims of Holders of Notes a
Slide 22: Key Risks Associated with SEEK
Key Risks Associated with SEEK For personal use only These and other risks associated with SEEK are discussed in more detail in Section 5 of the Prospectus. All potential investors should review the risks outlined in the Prospectus and not rely on this presentation Deterioration in economic conditio
Slide 23: Key Dates and Contacts
For personal use only Key Dates and Contacts 23
Slide 24: Key Dates
Key Dates For personal use only Lodgement of Prospectus with ASIC 4 June 2012 Commencement of Bookbuild to determine the Margin 8 June 2012 Announcement of the Margin and Opening Date for the Offer and lodgement of the 12 June 2012 Replacement Prospectus with ASIC Closing Date for the Shareholder Of
Slide 25: Offer Contacts
Offer Contacts For personal use only Issuer John Armstrong SEEK Limited +61 3 8517 4142 Structuring Adviser Rob Penney Goldman Sachs +61 2 9320 1319 Joint Lead Managers Rob Penney Goldman Sachs +61 2 9320 1319 Truong Le Commonwealth Bank +61 2 9118 1205 Nicholas Chaplin NAB +61 2 9237 9518 25
Slide 26: For personal use only
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