Seek Limited · ASX:SEK
Seek — UBS Emerging Companies Conference 2009
28 slides from Seek's conference presentation, Oct 22, 2009
Slide 1: UBS Emerging Companies Conference
For personal use only UBS Emerging Companies Conference 22 October 2009
Slide 2: Overview of SEEK
For personal use only 2 Overview of SEEK
Slide 3: Full Year Overview
Full Year Overview For personal use only Consistent strategy and effective execution delivers a strong result Financial Performance Strong financial result in a challenging year with EBITDA of $97.8m and NPAT of $55.3m Result driven by resilience in Ad revenues, growth in SEEK Learning and a reducti
Slide 4: Financial Performance
Financial Performance For personal use only 4
Slide 5: Strong Financial Results to June 2009
Strong Financial Results to 30 June 2009 For personal use only Change to Dividend Policy commencing H2 FY09 - Final Dividend Current policy is to pay out 40%-70% of NPAT with the current pay out ratio being 40%. Revised policy is that SEEK will continue with the 40% pay-out ratio but from “Cash NPAT
Slide 6: Strong Financial Results to June 2009 (cont'd)
Strong Financial Results to 30 June 2009 (cont’d) For personal use only 1 THINK’s financials are included in SEEK’s statutory accounts but only for the period 12 May 2009 to 30 June 2009 2 SEEK accounted for 34.7% of Zhaopin in FY08 and 56.1% in FY09 3 A 30% shareholding in Brasil Online Holdings wa
Slide 7: SEEK has a strong track record over a sustained period
SEEK has a strong track record over a sustained period For personal use only CAGR 51.4% 61.4% 41.5% Note Revenue excludes interest and other revenue 7
Slide 8: FY10 Outlook
FY10 Outlook For personal use only EMPLOYMENT • Revenue has stopped declining since May and current levels modestly above April low. ¨ • Revenue and profit starting point for FY10 is lower than FY09 starting point • Limited visibility due to uncertain market conditions but expect strong structural g
Slide 9: Employment Dynamics
For personal use only 9 Employment Dynamics
Slide 10: The last months have been challenging but SEEK has emerged with its market leadership intact
The last 12 months have been challenging but SEEK has emerged with its market leadership intact For personal use only Despite cyclical weakness impacting ad volumes, online revenue has been resilient… Online revenue & volumes have been impacted by the downturn but have fared considerably better than
Slide 11: SEEK has maintained its #1 market position in Australia & NZ
SEEK’s has maintained its #1 market position in Australia & NZ. For personal use only Australia Source: Sep 09 Nielsen NetRatings, SEEK Count of websites New Zealand 11
Slide 12: Online is the way to search for jobs where SEEK is the #1 brand
Online is the way to search for jobs where SEEK is the #1 brand … For personal use only Online is the way to search for jobs1 … … and SEEK is the #1 brand Q: If you were looking for a job and could use only one way to find a job, in what way would you choose to look for a job? Internet Ways to look
Slide 13: Structural shift in the Australian Classifieds Market
For personal use only 13 Seasonnally adjusted job b ads Market Share e of AU Classifieds s Market % online … 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% Jan-02 Mar-02 May-02 Jul-02 Print Sep-02 Nov-02 Source: ANZ Job Advertisements Series Jan-03 O Mar-03 May-03 Online Jul-03 Sep-03 No
Slide 14: A continuation of a long term structural growth story
… which is a continuation of a long term structural growth story… For personal use only We have seen an acceleration in migration of revenue from print to online in the last 12 months (2001-2010F; %) 70 60 USA 50 ~2 years lag 40 Australia 30 20 10 0 2001 2002 2003 2004 2005 2006 2007 2008 2009F 2010
Slide 15: Will continue to run and provide upside through the cycle
… which will continue to run and provide upside through the cycle as the majority of spend is still in print. For personal use only Online vs. Print (%) Job-Ad Volume1 Job Seeker Preferences2 Share of Spend3 Online 77% 73% 39% Print 23% 27% 61% 1 ANZ Advertisements Series for September 2009 2 Job se
Slide 16: Through the cycle, SEEK is strongly positioned for growth
Through the cycle, SEEK is strongly positioned for growth given its favourable exposure to structural trends and a strong market position. For personal use only Core drivers of long term employment earnings SEEK’s core growth strategy remains on accelerating the structural migration of revenue from
Slide 17: Education – SEEK Learning, THINK and IDP
Education – SEEK Learning, THINK and IDP For personal use only 17
Slide 18: SEEK has a broad and diverse presence in education and training
SEEK has a broad and diverse presence in education and training… For personal use only Billy Blue (Design) William Blue (Hospitality) ACNT (Natural Therapies) (100%) APM (Marketing/PR) dents JNI (Psychology/Counselling) CATC ((Design) g ) omestic Stud (100%) EDUCATION AND TRAINING SEEK Learning UK S
Slide 19: Continues to achieve strong financial performance
…that continues to achieve strong financial performance. For personal use only Learning Financials (FY06 - FY09) $152 5M $152.5M FY06 FY07 FY08 FY09 $101 4M $101.4M In five years, SEEK has built a large Education business with “look through” revenue of $59.9M $152.5m and EBITDA of $28.2m in FY09. Re
Slide 20: SEEK Learning continues its rapid revenue and earnings growth
SEEK Learning continues its rapid revenue and earnings growth… For personal use only Financial Results • Strong growth with Revenue up 38% and EBITDA up 145% vs pcp continuing its strong performance since H2 FY08 • Revenue growth in new and existing partners and economies of scale l ddriving i i ear
Slide 21: THINK has continued to grow revenue at a rapid rate
…and THINK has continued to grow revenue at a rapid rate … For personal use only Financial Results • Strong revenue growth primarily driven by new enrolments and continuing students. Revenue augmented by the CATC acquisitions in H1 FY09 • Major investments include: opening of Brisbane Campus Campus,
Slide 22: IDP continuing its strong growth trajectory
…with IDP continuing its strong growth trajectory and providing SEEK with an excellent return on investment. For personal use only Financial Results FY08 FY09 510,700 381,000 IELTS Candidates • Strong result driven primarily by strong candidate growth for IELTS & solid growth in Student Placements •
Slide 23: International
For personal use only 23 International
Slide 24: Brasil Online's performance to date has been strong
Brasil Online’s performance to date has been strong For personal use only Results • St Strong result lt since i SEEK’ SEEK’s investment i t t with ith the th “jobseeker “j b k pays”” business b i model d l performing well in the downturn to date • Strong Balance Sheet with net cash position and gene
Slide 25: Zhaopin is well positioned in a challenging environment
Zhaopin is well positioned in a challenging environment For personal use only Zhaopin • SEEK increased its share of losses in FY08 from A$6.2m to A$17.3m of which ~93% of the increase in losses is attributable to FX and increased equity ownership • SEEK’s share of loss of A$6.7m in H2 FY09 is signif
Slide 26: JobStreet is well positioned to benefit from structural migration and recovery in SE Asia
JobStreet is well positioned to benefit from continuing structural migration and an economic recovery in SE Asia For personal use only JobStreet has market leading position across …and has achieved strong results despite SE Asia and strategic investments in exciting markets … challenging economic co
Slide 27: Focus drivers for SEEK's growth remains consistent
Focus drivers for SEEK’s growth remains consistent For personal use only Through the cycle, SEEK is well positioned to strongly grow earnings … Employment Volume Yield Product Expansion Education Drivers of Future SEEK Learning Earnings Growth IDP THINK International Brasil Online Holdings Zhaopin J
Slide 28: For personal use only
For personal use only 28