Slide 1: Half Year Results Presentation 2012
For personal use only Half Year Results Presentation 2012 6 months to 31 December 2011
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: Half Year Overview
Half Year Overview SEEK achieved a strong result despite a subdued employment market and continued investment in SEEK International and SEEK Education For personal use only Group Financial Performance Growth from diverse earnings streams underpinning a record half year financial result with NPAT (Po
Slide 4: Financial Performance
For personal use only Financial Performance 4
Slide 5: Record half year result for months to 31 December 2011
SEEK achieved a record half year result for the 6 months to 31 December 2011 ... For personal use only H1 FY12 – Headline Performance H1 FY12 – Key Financial Highlights Strong portfolio of assets helped SEEK deliver growth across all A$m Growth key financial metrics SEEK Group H1 FY11 H1 FY12 $m %
Slide 6: Track record of consistent growth over a long period
... which is a continuation of SEEK’s track record of consistent growth over a long period. For personal use only Operating Revenue - CAGR of 36.3% Reported EBITDA – CAGR of 42.8% Reported NPAT (Post NCI) – CAGR of 35.0% $89.8M $60.6M $208.1M $47.9M $159.0M $62.5M $56.6M $55.8M $130.4M $51.5M $35.6M
Slide 7: Reported Results by Division & Associates/JV
Reported Results by Division & Associates/JV For personal use only H1 FY12 – Results by Operating Division H1 FY12 – Results by Associate & JV A$m Growth A$m Growth SEEK Domestic H1 FY11 H1 FY12 $m % International (SEEK share of NPAT) H1 FY11 H1 FY12 $m % Operating Revenue 106.8 122.8 16.0 15% Zhaop
Slide 8: H1 FY12 look-through revenue and EBITDA
SEEK’s H1 FY12 “look-through” result is Revenue ~A$302.6m and EBITDA ~A$107.9m For personal use only H1 “Look-through” Revenue H1 “Look-through” EBITDA H1 FY04 – H1 FY12 CAGR of 42.8% H1 FY04 – H1 FY12 CAGR of 46.1% A$302.6m A$107.9m A$258.7m A$73.1m $22.1m A$54.7m A$82.6m A$211.2m A$192.9m A$10.6m
Slide 9: Analysis of key items below EBITDA
H1 FY12 - Analysis of key items below EBITDA For personal use only Analysis Discussion Net Interest Expense $Am Growth Net Debt at 31 December 2011 of A$198.4m was key driver of H1 FY11 H1 FY12 A$m % higher net interest expense1 Net Interest Expense 3.3 10.4 7.1 219% • Higher net debt at 31 Dec 20
Slide 10: Strong cash flow and continued investment for growth
SEEK generates strong cash flow and is continuing to invest for growth For personal use only SEEK achieves strong EBITDA to cash flow1 conversion... ...and investing for future growth. A$m 105% 8.0 A$6.9m 7.0 A$0.4m 101% 6.0 A$4.7m 100% 99% 5.0 4.0 A$5.1m 3.0 95% A$3.9m 2.0 1.0 A$1.3m A$0.8m 90% 0.0
Slide 11: SEEK Domestic
11 For personal use only SEEK Domestic
Slide 12: SEEK Domestic achieved a strong result despite challenging macro conditions
SEEK Domestic achieved a strong result despite challenging macro conditions For personal use only SEEK Domestic Financials Discussion on results Revenue growth of 15% and strong EBITDA margins A$m Growth Overall 15% revenue growth SEEK Domestic H1 FY11 H1 FY12 $m % Revenue 106.8 122.8 16.0 15% • 6
Slide 13: SEEK has performed well despite subdued labour market
SEEK has performed well despite subdued labour market conditions For personal use only Despite volatility in the unemployment rate... ...SEEK has performed consistently reflecting the strength of its business model Australia’s Seasonally Adjusted Unemployment rate SEEK New Job Index (Jul-10= 100) (J
Slide 14: SEEK holds the #1 market position
SEEK holds the #1 market position ..... Australia For personal use only AU Online Share - Key Metrics Jan 2012 Market % of Top 3 Ads Visits TTOS Reach 100% Visits SEEK 72% 72% 84% 74% 75% CareerOne 18% 15% 9% 25% MyCareer 10% 13% 7% 20% 50% Ads Monthly Visits SEEK SEEK SEEK Growth Growth Growth YoY
Slide 15: Online is the preferred way to search for jobs
..and online is the preferred way to search for jobs. For personal use only Online is the way to search for jobs1 … ...and SEEK is the #1 brand1 Q: If you were looking for a job and could use only one way to find a job, Q. When you think about employment websites on the internet, 80% in what way wou
Slide 16: Online dominates job ads yet half of ad spend is in print
Online dominates in job ads & job seeker preferences yet nearly half of ad spend still resides in print ... For personal use only Online vs. Print (%) Job Seeker Job Ad Volume 1 Share of Spend 3 Preferences 2 Jan-12 Oct-11 Dec-11 (E) Online 84% 74% 56% Print 16% 26% 44% What does this mean? A larg
Slide 17: Structural migration from print to online will continue
...indicating future revenue growth as structural migration from print to online will continue. For personal use only Structural migration of revenue from print to online is a continuing trend Online Revenue as a % of total employment market 80 USA 70 60 Australia 50 40 30 20 10 0 2003 2004 2005 200
Slide 18: Well positioned for growth due to market leadership
SEEK is well positioned for growth due to its market leadership and exposure to favourable structural trends For personal use only Volume • Continue attacking industry segments such as SME, Govt & Regional. • Expect SEEK to grow ad volumes when macro conditions improve & continue to benefit from the
Slide 19: SEEK International
19 For personal use only SEEK International
Slide 20: Large market opportunity with exposure to ~2b people
The market opportunity is large for SEEK as it has ownership interests in leading job boards with exposure to over ~2b people & ~20% of global GDP For personal use only China Zhaopin CJOL1 (56 %) Mexico • Zhaopin is #2 overall SE Asia • CJOL is #2 in South China OCC ( 40 %) JobStreet JobsDB2 • Popul
Slide 21: Interests in leading job boards exposed to favourable trends
SEEK International owns interests in leading job boards that are exposed to favourable structural & macro trends For personal use only Market leadership in large & growing markets Key Attributes Over the medium to long term, we expect increased internet penetration, Each of SEEK’s investments have
Slide 22: Strong result achieved by SEEK International
Strong result achieved by SEEK International Strong “Look-through”2, 3 Revenue & EBITDA Growth SEEK International1 – “Look-through”2, 3 For personal use only & Share of Associates NPAT Share of Revenue A$73.1m EBITDA SEEK Int'l $Am Growth Associates NPAT "Look-through" 2,3 H1 FY11 H1 FY12 $m % A$22.
Slide 23: Zhaopin achieved a strong H1 FY12 result
Zhaopin achieved a strong H1 FY12 result Zhaopin Financials Discussion on results For personal use only Zhaopin RMBm Growth Continuation of strong revenue growth in Tier 1 & Tier 2 markets Standalone Results H1 FY11 H1 FY12 RMBm % Online Revenue (100%) 234.4 336.1 101.7 43% Zhaopin is strong ove
Slide 24: JobsDB achieved solid revenue and earnings growth
JobsDB achieved solid revenue and earnings growth JobsDB Financials Discussion on results For personal use only JobsDB HKDm Growth Overall solid revenue & strong EBITDA growth Standalone Results H1 FY11 H1 FY12 HKDm % Revenue (100%) 172.0 201.8 29.8 17% • Revenue growth strongest in Indonesia, Hon
Slide 25: JobStreet continues to consistently perform
JobStreet continues to consistently perform JobStreet – Quarterly Revenue Discussion on results For personal use only MYRm 40.0 In Q3 CY11- JobStreet recorded Revenue of MYR 36.0m and Op. 36.2 36.0 profit of MYR 15.0m 35.0 33.6 30.0 29.9 30.4 29.4 • YoY revenue growth of 18% & Op. profit growth of
Slide 26: Brasil Online gaining traction in advertiser paid products
Brasil Online gaining strong traction in advertiser paid products Brasil Online Financials Discussion on results For personal use only Brasil is a clear market leader & achieving strong growth in advertiser paid Brasil BRLm Growth products Standalone Results H1 FY11 H1 FY12 BRLm % Revenue (100%) 83.
Slide 27: OCC performing well and continues to pay dividends
OCC performing well & continues to pay dividends OCC Financials1 Discussion on results OCC leveraged its market leadership to achieve strong results For personal use only OCC MXNm Growth Standalone Results H1 FY11 H1 FY12 MXNm % Strong revenue growth of 23% driven primarily by ad volume growth Rev
Slide 28: SEEK Education
28 For personal use only SEEK Education
Slide 29: A solid result for SEEK Education in H1 FY12
A solid result for SEEK Education in H1 FY12 SEEK Education1 – “Look-through”2 “Look through” Education financials over the last eight years 1, 2 For personal use only SEEK Education A$m Growth "Look-through" H1 FY11 H1 FY12 $m % $106.7M $25.4M Revenue 97.2 106.7 9.5 10% $100.9M $97.2M EBITDA 6.7 10
Slide 30: SEEK Learning achieving solid earnings growth
SEEK Learning achieving solid earnings growth SEEK Learning Financials Discussion on results For personal use only A$m Growth Solid H1 FY12 result: 1 SEEK Learning H1 FY11 H1 FY12 $m % A concerted focus on growing profitability in H1 FY12 which led Revenue 20.2 21.0 0.7 4% to EBITDA growth of 14%
Slide 31: THINK executing well against its turn-around strategy
THINK executing well against its turn-around strategy THINK Financials Discussion on results For personal use only A$m Growth Strong revenue result & scalability from shared services driving an THINK 1 H1 FY11 H1 FY12 $m % improving result Revenue 33.1 40.4 7.2 22% Strong revenue result driven by:
Slide 32: IDP achieved a solid result in light of current environment
IDP achieved a solid result in light of the current environment For personal use only IDP Financials Discussion on results A$m Growth Solid overall result in H1 FY12 IDP H1 FY11 H1 FY12 $m % Revenue (100%) 90.1 93.6 3.5 4% Solid growth in IELTS revenue EBITDA (100%) 13.4 11.9 (1.5) (11%) APF rev
Slide 33: Outlook
33 For personal use only Outlook
Slide 34: H2 FY12: Short term outlook
H2 FY12: Short term outlook1 For personal use only SEEK Group • Anticipate H2 FY12 Revenue and EBITDA to be strongly ahead of H2 FY11 & expect H2 FY12 EBITDA to be similar or slightly ahead of H1 FY12 SEEK DOMESTIC • CY12 YTD Observations: First six weeks of CY12 revenue growth has been solid vs p
Slide 35: Medium to Long term Outlook for SEEK
Medium to Long term Outlook for SEEK Medium Term Outlook Long Term Outlook For personal use only SEEK Domestic Long-term growth horizon for SEEK Continuation of structural migration of revenue from SEEK is well positioned for robust growth over the print to online medium to long term in each of
Slide 36: Appendices
For personal use only Appendices Contents Page Number SEEK Group 37 SEEK Domestic 41 SEEK International 43 SEEK Education 54 Overview of Non-IFRS Information 61 36
Slide 37: SEEK Group
37 For personal use only SEEK Group
Slide 38: Details of SEEK's look-through P&L Methodology
Details of SEEK’s “look-through” P&L Methodology “Look through” P&L Methodology Equity Ownership & FX Rates Applied For personal use only “Look-through” Revenue & EBITDA presented for each respective 6 SEEK's Equity Ownership H1 FY04 H1 FY05 H1 FY06 H1 FY07 H1 FY08 H1 FY09 H1 FY10 H1 FY11 H1 FY12
Slide 39: SEEK's detailed look-through P&L Analysis
SEEK’s detailed “look-through” P&L Analysis "Look-through" Revenue & EBITDA (Non-IFRS Financial Information) A$m H1 FY04 H1 FY04 H1 FY05 H1 FY05 H1 FY06 H1 FY06 H1 FY07 H1 FY07 H1 FY08 H1 FY08 H1 FY09 H1 FY09 H1 FY10 H1 FY10 H1 FY11 H1 FY11 H1 FY12 H1 FY12 Underlying SEEK Share Underlying SEEK Share
Slide 40: SEEK Reported & Pro-forma Net Debt
SEEK Reported & Pro-forma Net Debt For personal use only Net Debt movements 30 Jun 2011 to 31 Dec 2011 Commentary SEEK Group Pro-forma Net Debt at 30 June 2011 Note reference (i) As at 30 June 2011 SEEK Asia had a payable of A$71.8m A$m Key Reported Adjustment Pro-forma to the founder of JobsDB to
Slide 41: SEEK Domestic
41 For personal use only SEEK Domestic
Slide 42: 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 43: SEEK International
43 For personal use only SEEK International
Slide 44: Zhaopin – Detailed Financials & Key Competitor Metrics
Zhaopin – Detailed Financials & Key Competitor Metrics P&L Monthly Page Views - month end (m) RMBm - at 100% of Zhaopin unless indicated For personal use only Revenue H1 FY10 H2 FY10 H1 FY11 H2 FY11 H1 FY12 Online Revenue 134.2 172.2 234.4 295.3 336.1 1,000 931 Other Revenue 45.2 44.6 60.8 50.5 74.7
Slide 45: Zhaopin – Key Revenue Drivers
45 For personal use only - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Total Positions Posted Jan-11 Feb-11 Mar-11 Apr-1
Slide 46: Brasil Online – Detailed Metrics
Brasil Online – Detailed Metrics Invoiced Users P&L For personal use only 300,000 BRL m - at 100% of Brasil Online unless otherwise indicated 250,000 H1 FY10 H2 FY10 H1 FY11 H2 FY11 H1 FY12 Net Revenue 70.6 81.8 83.2 92.9 95.3 200,000 COGS 21.7 26.2 29.0 34.9 35.1 150,000 GP 48.9 55.6 54.2 58.1 60.2
Slide 47: OCC – Detailed Metrics
OCC – Detailed Metrics Ad Volume P&L For personal use only H1 FY10 H2 FY10 H1 FY11 H2 FY11 H1 FY12 100,000 Net Revenue 65.6 75.6 82.3 90.7 101.1 90,000 COGS 11.1 12.8 12.8 15.9 17.2 GP 54.5 62.8 69.5 74.8 83.9 80,000 GP / Net Rev % 83% 83% 84% 82% 83% 70,000 Total Overheads 26.8 27.0 29.8 35.4 39.0
Slide 48: OCC – Detailed Metrics
OCC – Detailed Metrics1 For personal use only Ubs Monthly ('000) Page Views ('000) 4,000 120,000 3,611 105,000 3,500 100,652 3,172 100,000 3,000 80,000 2,500 1,964 59,270 2,000 1,687 60,000 54,270 1,500 40,000 896 978 1,000 657 614 600 535 593 20,000 9,955 8,011 12,004 386 9,953 500 7,005 8,003 5,16
Slide 49: JobsDB – Accounting Implications
JobsDB – Accounting Implications Ownership Structure Ownership Structure & Discussion For personal use only 1. JobsDB 100% of JobsDB Revenue, EBITDA, Net Interest and D&A items are JobsDB (1) consolidated into SEEK’s Statutory Accounts • SEEK’s non-controlling interests are removed from SEEK’s NPA
Slide 50: JobsDB – SEEK share vs. Non-controlling Interest
JobsDB – SEEK share vs. Non-controlling Interest For personal use only Financial Analysis on JobsDB & NCI Commentary Analysis of NCI for JobsDB (i) NCI @ 20% The Founder of JobsDB holds a 20% interest in JobsDB. JobsDB As a result an NCI is recognised for their share in the Standalone JobsDB PPA S
Slide 51: Purchase Price Allocation (PPA) - JobsDB
Purchase Price Allocation (PPA) - JobsDB Acquisition Accounting Treatment Outlook – Amortisation of JobsDB Intangibles For personal use only At the acquisition date, the acquirer has to separately identify the A$m identifiable assets, liabilities & NCI with the balance between 6.0 these items and
Slide 52: Reconciliation of International associate's EBITDA to SEEK share of profits
Reconciliation of SEEK’s International associate’s EBITDA to SEEK share of profits For personal use only Zhaopin JobStreet Zhaopin JobStreet (H1 FY12 based on JobStreet actual results for Q3 (July-Sept 11) & SEEK's internal budget for Oct to Dec 11) H1 FY11 H1 FY12 H1 FY11 H1 FY12 A. Underlying RMB$
Slide 53: Reconciliation of International associate's 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 OCC Brasil H1 FY11 H1 FY12 H1 FY11 H1 FY12 A. Underlying MXNm at 100% MXNm MXNm A. Underlying BRL$m at 100% BRL$m BRL$m EBITDA 39.7 44.9 EBITDA 22.0 22.8 Non-recurring expenses
Slide 54: SEEK Education
54 For personal use only SEEK Education
Slide 55: SEEK Learning – Detailed Metrics
SEEK Learning – Detailed Metrics SEEK Learning AUS - Operating Metrics SEEK Learning Financials For personal use only 2 Revenue H1 FY10 H2 FY10 H1 FY11 H2 FY11 H1 FY12 H1 FY10 H2 FY10 H1 FY11 H2 FY11 H1 FY12 SEEK Learning AUS 15.8 21.8 18.5 22.1 19.1 SEEK Learning UK1 1.6 0.3 - - - Enquiries ('000)
Slide 56: THINK – Operational Performance
THINK – Operational Performance Total Students Educated during H1 FY12 Discussion – growth in student enrolments For personal use only 5,000 4,589 4,328 Design (+24% vs pcp) / Business & Hospitality (+25%) 4,500 4,038 4,000 • Design: Strong result driven by CATC with strong growth in 3,499 3,500 n
Slide 57: THINK – Operational Performance (cont'd)
THINK – Operational Performance (cont’d) Total Educated Students by Modality during H1 FY12 Discussion – growth in student enrolments For personal use only Discussion on growth in student enrolments 12,000 Continuation of strong online growth of +27% in students with particularly 10,000 strong gro
Slide 58: THINK - Detailed Metrics
THINK - Detailed Metrics THINK P&L H1 FY12 - Key Earnings Drivers For personal use only H1 FY12 H1 FY11 A$m Business & Health Revenue Hosp & Wellness Design Total Total Students Online Net Revenue 11.6 10.6 17.5 39.7 32.6 5,363 32% of Fee Other Revenue 0.2 0.5 (0.0) 0.6 0.5 Rev Total Revenue 11.8 11
Slide 59: IDP - Detailed Metrics
IDP - Detailed Metrics P&L Key Operating Metrics For personal use only A$m FY10 FY11 FY12 H1 FY10 H2 FY10 H1 FY11 H2 FY11 H1 FY12 3 Revenue H1 FY10 H2 FY10 H1 FY11 H2 FY11 H1 FY12 IELTS - Rev per test candidate (A$) 235 243 254 251 252 IELTS 64.8 67.0 62.3 67.5 66.0 APF - Rev per Placement (A$) 1,85
Slide 60: Reconciliation of Education associate's EBITDA to SEEK share of profits
Reconciliation of SEEK’s Education associate’s EBITDA to SEEK share of profits For personal use only IDP Swinburne Online IDP Swinburne Online H1 FY11 H1 FY12 H1 FY11 H1 FY12 A. Underlying A$m at 100% A$m A$m A. Underlying A$m at 100% A$m A$m EBITDA 13.4 11.9 EBITDA (1.7) D&A (1.2) (2.9) D&A (0.0) N
Slide 61: Overview of Non-IFRS Information
For personal use only Overview of Non-IFRS Information 61
Slide 62: 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 63: For personal use only
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