Seek Limited · ASX:SEK
Seek — Macquarie Online Conference 2010
26 slides from Seek's conference presentation, Nov 12, 2010
Slide 1: Macquarie Online Conference
For personal use only Macquarie Online Conference 12 November 2010 Includes a trading update on page 7
Slide 2: SEEK holds strategic assets in Employment and Education
SEEK holds strategic assets in Employment and Education For personal use only Domestic Employment Education International Employment 2
Slide 3: Financial Performance
Financial Performance For personal use only 3
Slide 4: Strong Financial Results to June 2010
Strong Financial Results to 30 June 2010 For personal use only For FY10 final dividend, SEEK has increased its dividend pay-out ratio from 45% to 50% of Cash NPAT7 1 The FY09 result represents the THINK result from 12 May 2009 to 30 June 2009. Prior to 12 May 2009, THINK was accounted for as an Asso
Slide 5: SEEK has a track record of consistent growth
SEEK has a track record of consistent growth For personal use only Segment Revenue - CAGR of 38.6% EBITDA – CAGR of 41.9% Reported NPAT – CAGR of 36.6% 5
Slide 6: SEEK has refinanced its debt facilities and is well capitalised
SEEK has refinanced its debt facilities and is well capitalised For personal use only SEEK’s old debt facility y SEEK’s new debt facility y & Capital Structure Old Facility Maturity Size $m Synd. Loan - Tranche 1 Aug-10 100.0 Synd. Loan - Tranche 2 Aug-11 100.0 The new debt facility is supported by
Slide 7: Trading Update
Trading Update For personal use only EMPLOYMENT • Revenue and p profit starting gppoint for FY11 is higher g than start of FY10 ¨ • Gradual and consistent month on month growth in revenue and profit • If current trajectory continues expect SEEK to be a primary beneficiary given its market leading po
Slide 8: Employment Dynamics
For personal use only 8 Employment Dynamics
Slide 9: Online job ad volumes are growing faster than print where SEEK is the #1 brand
Online job ad volumes are growing faster than print where SEEK is the #1 brand... For personal use only Online ad volumes continue to outpace print ads1 … … and SEEK is the #1 brand in online job ads2 ANZ Job Series – pcp growth in job ads 1Source: ANZ Job Series, October 2010 2Source: Calculated fr
Slide 10: SEEK's #1 market position in Australia & NZ
…which is reflected in SEEK’s #1 market position in Australia & NZ. For personal use only Australia Source: September 2010 Nielsen Net Ratings, SEEK Count of websites New Zealand UBs: unique browsers TTOS: Share of total time on site across the top 3 players 10 Market Reach UBs: Share of total aggre
Slide 11: The migration of revenue from print to online is an ongoing structural trend
The migration of revenue from print to online is an ongoing structural trend which will continue to run For personal use only Structural migration of revenue from print to online has continued1 in CY10 d despite it print i t achieving hi i robust b t volume l th2 on pcp basis growth b i 80 (2003-201
Slide 12: SEEK is well positioned for growth as the majority share of spend is still in print
SEEK is well positioned for growth as the majority share of spend is still in print For personal use only Online vs. Print (%) Job-Ad Volume Job Seeker Preferences2 Share of Spend3 Oct-2010 May-2010 Mar-10 Online 81% 76% 43% Print 19% 24% 57% 1 ANZ Advertisement Series for Octoberr 2010 2Job seeker
Slide 13: SEEK has a strong growth outlook
SEEK has a strong growth outlook reflecting its leading market position, exposure to favourable structural trends and improving job ad markets For personal use only Volume Continue C ti attacking tt ki industry i d t segments, t geographies hi andd client li t segments where SEEK is under-penetrated
Slide 14: Education – SEEK Learning, THINK and IDP
Education – SEEK Learning, THINK and IDP For personal use only 14
Slide 15: SEEK has presence across domestic and international education
SEEK has presence across domestic and international education ... For personal use only SEEK Education comprises of the following businesses (x% = SEEK Ownership) (100%) (100%) • SEEK Learning is the #1 online (50%) destination for career related • THINK: Education Group is a leading education & tra
Slide 16: Education financials: a strong track record of growth
…that has performed well in recent years. For personal use only Education Financials – A strong track record of growth Revenue growth3 of 36% in FY10 was split between organic growth of 16% and acquisition growth 20% SEEK believes there are still significant organic and acquisition growth opportunit
Slide 17: SEEK Learning achieved a strong result in FY10 but outlook for FY11 is more difficult
SEEK Learning achieved a strong result in FY10 but outlook for FY11 is more difficult For personal use only FY10 - Financial Results SEEK Learning – historic track record Overview of FY10 – Financial Results • Strong growth with Revenue up 45% and EBITDA up 121% vs pcp • Since FY05, Revenue grown at
Slide 18: THINK is expected to continue revenue growth but earnings will be impacted
THINK is expected to continue revenue growth but earnings will be impacted by continued investment costs For personal use only FY10 - Financial Results Overview of FY10 – Financial Results • Lower than expected earnings result for FY10 H2 due to increased restructuring and investment • Specific inve
Slide 19: IDP performing creditably but operating environment continues to be challenging
IDP performing creditably but operating environment continues to be challenging For personal use only FY10 - Financial Results Overview of FY10 – Financial Results • A creditable result in light of changes by DIAC1 to student entry requirements and $6.2m of Opex spent on the US expansion2 • SEEK rec
Slide 20: International
For personal use only 20 International
Slide 21: SEEK owns an attractive suite of international investments
SEEK owns an attractive suite of international investments For personal use only • SEEK owns 30% of Brasil Online • SEEK owns 56.1% of Zhaopin • SEEK owns 23.1% of JobStreet • SEEK owns 40% of OCC • #1 & #2 job boards in Brazil • #2 job board in China • #1 job board in Malaysia & • #1 job board Mexi
Slide 22: Brasil Online continues to perform impressively
Brasil Online continues to perform impressively For personal use only FY10 - Financial Results Trading Update • Continuation C ti ti off growth th in i active ti & invoiced i i d users ffor C Catho th • Cash flow generation continues to be strong • Catho Learning increasing number of partners and ea
Slide 23: Zhaopin delivered a strong result in FY10 and is performing well in FY11
Zhaopin delivered a strong result in FY10 and is performing well in FY11 For personal use only FY10 - Financial Results Overview of FY10 – Financial Results • SEEK decreased its share of loss in H1 FY10 from A$3 A$3.4m 4m to A$0.4m in H2 FY10 driven by strong revenue growth • Zhaopin achieved positi
Slide 24: JobStreet is performing strongly in fast growing SE Asian markets
JobStreet is performing strongly in fast growing SE Asian markets For personal use only Strong Quarterly Revenue Growth ... ...leading to significant earnings growth Op Prrofit Margins (%) YR (millions) YR (millions) MY MY Calendar Year Quarters C l d Y Calendar Year Q Quarters t Results • Q2 CY10 w
Slide 25: SEEK has acquired a 40% stake in the leading job board in Mexico
SEEK has acquired a 40% stake in the leading job board in Mexico For personal use only Who are OCC? • Online Career Center Mexico SA de CV (OCC) is the clear market leader in Mexico across all jobseeker and advertiser metrics • OCC has over 5.5x unique visitors and 1.5x job ads vs the #2 player • Ma
Slide 26: For personal use only
For personal use only 26