Seek Limited · ASX:SEK
Seek — Macquarie Australia Conference 2014
30 slides from Seek's conference presentation, May 7, 2014
Slide 1: Macquarie Australia Conference May 2014
For personal use only Macquarie Australia Conference May 2014
Slide 2: Disclaimer
Disclaimer The material in this presentation has been prepared by SEEK Limited ABN 46 080 075 314 For personal use only ("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: Overview
For personal use only Overview
Slide 4: SEEK is making a positive contribution to people's lives on a global scale
SEEK is making a positive contribution to people’s lives on a global scale SEEK Domestic SEEK International SEEK Education For personal use only c.30 c.320 million million Monthly visits Monthly visits Help c.50k people find courses per annum c.3 million c.350k c.25% of Australian placements Monthly
Slide 5: Long-term strategic focus has led to a track record of consistent growth
SEEK’s long-term strategic focus has led to a track record of consistent growth… For personal use only “Look-through”1,2 Revenue “Look-through”1,2 EBITDA H1 FY04 – H1 FY14 CAGR of 37% H1 FY04 – H1 FY14 CAGR of 40% $393.8m $148.9m $326.7m $120.5m $35.7m $302.6m $142.7m $107.6m $22.0m $258.7m $10.6m $
Slide 6: Significant shareholder value and positioned for future growth
…that has created significant shareholder value and positioned SEEK for future growth For personal use only Key Investment Highlights SEEK has a strong track …that has delivered strong …and is well positioned for record in start-ups, operating shareholder returns… further growth over the businesses
Slide 7: Core drivers of earnings growth & shareholder returns
Core drivers of earnings growth & shareholder returns Core drivers of earnings growth Core Drivers of Earnings Growth For personal use only SEEK Domestic SEEK International SEEK Education Structural migration Structural trends Large market opportunities • Ongoing structural migration of • Rising int
Slide 8: Group Financial Performance
Group For personal use only Financial Performance
Slide 9: H1 FY14 Key Messages
H1 FY14 Key Messages Group highlights For personal use only • Record half year result • Increasing contribution of earnings from offshore businesses NPAT SEEK Domestic (excl significant • Pleasing result in relatively subdued conditions items) • Market leader vs “Traditional” & “Evolving” compet
Slide 10: Another record half year result in H1 FY14
Another record half year result in H1 FY14 Group Headline Performance Key Highlights For personal use only A$m Growth H1 FY14 H1 FY13 $m % • Revenue growth of 38% & EBITDA growth of 37% vs H1 FY13 Revenue1 380.7 275.3 105.4 38% Reported EBITDA 147.5 107.5 40.0 37% • H1 FY14 Reported NPAT (Post NCI)
Slide 11: SEEK Domestic
For personal use only SEEK Domestic
Slide 12: Solid result from SEEK Domestic and strong progress in placement strategy
Solid result from SEEK Domestic and making strong progress in its placement strategy SEEK Domestic Financials Key Insights For personal use only A$m Growth • Solid result in relatively subdued macro conditions H1 FY14 H1 FY13 $m % Revenue 116.9 120.9 (4.0) (3%) • Maintained EBITDA margins at c61% dr
Slide 13: SEEK is the clear market leader in AU & NZ
SEEK is the clear market leader in AU & NZ “Traditional” Competitive Landscape - AU & NZ1,2,3 “Evolving” Competitive Landscape4 For personal use only Australia Share of AU Placements5 (%) Total Ads (#): Mar-14 Total Visits (‘m): Mar-14 12 month ending (average) 30% 24.7% 19,652 2.4 24.0% 24.3% 25% 2
Slide 14: SEEK Domestic's core drivers of future earnings growth
SEEK Domestic’s core drivers of future earnings growth Structural migration of print to online For personal use only SEEK to capture volume & revenue opportunities from the continued structural migration from print to online Improvement in the economic cycle SEEK’s core drivers of earnings growth Ex
Slide 15: SEEK is favourably exposed to structural & cyclical trends
SEEK is favourably exposed to structural & cyclical trends Structural migration of revenue from print to online Ad volumes have stabilised, with SEEK highly leveraged is a continuing trend to an improvement in the cycle For personal use only Case Study 100 USA Growth in key metrics from FY10 v FY11
Slide 16: SEEK is well positioned for future growth via its placement strategy
SEEK is well positioned for future growth via its placement strategy For personal use only Aspirations of SEEK’s Placement Strategy Large Growth Opportunity If we execute on the placement strategy, SEEK facilitated SEEK’s placement lead over the answer to the questions below will be placements2 comb
Slide 17: SEEK International
For personal use only SEEK International
Slide 18: Interests in leading online employment marketplaces
SEEK has interests in leading online employment marketplaces which have exposure to ~2.5b people and >20% of global GDP For personal use only Zhaopin (79%) CJOL2 • Zhaopin is #1 in certain regions and a close #2 overall Mexico (56%) • Population of ~1,349m • #1 Market Position • Internet penetration
Slide 19: SEEK International delivered a strong result
SEEK International delivered a strong result “Look-through”1 Revenue (A$m) H1 FY14 Highlights For personal use only $134.3m • Strong “look-through”1 Revenue & EBITDA • Brasil and OCC are performing very well (100% local 77% $86.3m currency) CAGR2 $73.1m • Zhaopin, JobsDB & JobStreet are realising be
Slide 20: Zhaopin performing well and focusing on market share
Zhaopin performing well and focusing on market share For personal use only • In H1 FY14, achieved revenue growth of 13%1 & EBITDA growth of 17%1 on pcp despite subdued macro conditions & robust competitive environment • Strong H1 FY14 growth in other revenue streams (Campus & Assessment) • SEEK’s un
Slide 21: Pleasing results from JobsDB and JobStreet
Pleasing results from JobsDB and JobStreet • In H1 FY14, achieved revenue growth of 7%1 & EBITDA growth of 16%1 on pcp For personal use only • Solid Online revenue growth of 10%1 • EBITDA margin improvement driven by prior period re-investment • Strong cash flow facilitated repayment of SEEK Asia’s
Slide 22: Strategic re-investment positions Latin American businesses for growth
Strategic re-investment positions SEEK’s Latin American businesses well for future growth For personal use only • In H1 FY14, delivered strong EBITDA growth of 47%1 on pcp & EBITDA margin expansion to 33%1 • Growth in EBITDA achieved via efficiency gains in sales & marketing whilst re-investing in p
Slide 23: Strategic investments provide exposure to large, fast growing, early stage markets
SEEK’s strategic investments provide exposure to large, fast growing, early stage markets For personal use only • OAM remain focused on investment and building strong market positions across each of its verticals 24.4%2 Ownership Interest • Operational Update & Outlook: • Focused on building leading
Slide 24: SEEK Education
For personal use only SEEK Education
Slide 25: SEEK Education delivered strong results and executed against key objectives
SEEK Education delivered strong results and executed against key strategic objectives “Look-through”1 Revenue (A$m) H1 FY14 Highlights For personal use only 54% CAGR • SEEK Education has a strong track record of growth $142.7m $119.5m H1 FY14 Look-through • Strong results from SEEK Learning & IDP re
Slide 26: Strong results achieved by SEEK Learning & Swinburne Online
Strong results achieved by SEEK Learning & Swinburne Online … For personal use only • In H1 FY14, achieved revenue growth of 35% & EBITDA growth 74% on pcp • Continued focus on higher value courses & improved lead-to-enrolment conversion rates 100% Ownership Interest • Promising start to the launch
Slide 27: IDP also performing well
…with IDP also performing well For personal use only • In H1 FY14, strong growth across both student placements and IELTS helped deliver revenue growth of 17%1 & EBITDA growth of 33%1 on pcp • Strong cash flows have facilitated dividend payments of A$16.5m to 50% Ownership Interest SEEK (FY14 YTD) •
Slide 28: H2 FY14 Guidance & Transaction updates
H2 FY14 For personal use only Guidance & Transaction updates
Slide 29: H2 FY14 Guidance & Transaction updates
H2 FY14 Guidance & Transaction updates H2 FY14 Guidance1 Transaction updates For personal use only • Based on YTD results; SEEK re-affirms the H2 • Acquisition of JobStreet FY14 guidance issued as part of its H1 FY14 • JobStreet EGM to be held on 14 May-14 results presentation to the market in Feb-1
Slide 30: For personal use only
For personal use only