Slide 1: SEEK Limited Full Year Results Presentation 2007
For personal use only SEEK Limited Full Year Results Presentation Year Ending 30th June 2007
Slide 2: For personal use only
For personal use only 2
Slide 3: Full Year 2007 Overview
Full Year 2007 Overview… For personal use only Consistent Strategy ® Effective Execution Outstanding Results Strong Financial Focused Strategic Market Performance Agenda Dynamics Revenue ©48% Expanded management capability Structural migration from print to across the business online continues NPAT
Slide 4: Financial Performance
Financial Performance For personal use only 4
Slide 5: Strong financial results continue
Strong financial results continue… For personal use only $M Growth SEEK LTD FY06 FY07 $ % Financial Results - Five Year Trend Revenue 106.2 157.0 50.8 48% © FY03 FY04 FY05 FY06 FY07 Employment 95.2 140.2 45.0 47% © Learning 11.0 16.8 5.8 53% © $157.0M EBITDA 49.0 80.3 31.3 64% © Associates 0.0 2.0 2
Slide 6: EBITDA growth of 64% and stronger EBITDA margins
…Leading to EBITDA growth of 64% & stronger EBITDA margins For personal use only EBITDA & Margin 51% $80.3M 46% % Margin 42% 36% $49.0M $29.5M 23% $14.4M $6.0M FY03 FY04 FY05 FY06 FY07 EBITDA CAGR = 94.6% 6
Slide 7: Underpinned by excellent H207 performance
…underpinned by excellent H207 performance… For personal use only Financial Results - Five Year Trend $M Change H2 H2 H203 H204 H205 H206 H207 SEEK LTD 2006 2007 $ % Revenue 58.9 87.0 28.1 48% © $ 87.0M Employment 52.3 77.3 25.0 48% © Learning 6.6 9.7 3.1 47% © $ 58.9M $ 45.7M EBITDA 27.8 45.7 17.9
Slide 8: Building long term sustainability (capex)
…Building long term sustainability… For personal use only CAPEX SPEND CAPEX SPEND FY07 FY06 FY07 $5.0M $10.1M Other IT Equipment Successful launch of SAP New Office Fitout SAP Business Benefits: Projects • Greater pricing flexibility • Enhanced analysis of performance • Automated promotion campaigns
Slide 9: Outlook FY08
Outlook FY08… For personal use only 9 Migration of employment advertising from print to online expected to continue 9 Employment market remains strong 9 Continued rapid expansion of SEEK Learning Anticipate strong top line and bottom line growth for the financial year 9 EBITDA margins expected to be
Slide 10: Employment Market Dynamics
Employment Market Dynamics For personal use only 10
Slide 11: Strong revenue growth in Employment continued in FY07
Strong revenue growth in Employment continued in FY07… For personal use only Revenue growth of 32.1% attributable to volume Strong volume growth across Australia and New Zealand Job Ad Volume Growth across all products and industries 193,000 ads on site @ 30 June 07 Revenue growth of 11.8%
Slide 12: Job seekers increasingly prefer online to search for a job
…as Job Seekers increasingly prefer online as the #1 way to search for a job… For personal use only 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? Ways to look for a job Internet Newspaper 46.0% 45.7% 42.4% 38.0% 35.4% 34.5%
Slide 13: SEEK continues to be the number one employment website in unaided awareness
… SEEK continues to be the # 1 employment website in unaided awareness… For personal use only Online Unaided Awareness 44.5% 45.3% 42.5% SEEK 39.9% 16.8% 15.6% 15.6% 13.6% CareerOne MyCareer 12.2% 9.5% 9.4% 7.3% Jul-06 Nov-06 Feb-07 Aug-07 Source: Newspoll Telephone Omnibus 10th – 12th Aug 2007; Sam
Slide 14: Increasingly identify SEEK with Jobs
…and increasingly identify “SEEK” with “Jobs”… For personal use only SEEK = Jobs Clear leader in organic (‘free’) search Source: Hitwise July 2007 14
Slide 15: Delivering clear leadership in the Australian market
…delivering clear leadership in the Australian market… For personal use only 9 73% of time spent between the 3 major employment sites was on SEEK 9 SEEK exclusive audience remains very strong, with a 3.7x multiple over MyCareer and a 3.9x multiple over Career One 9 SEEK ad volume lead remains > 100k
Slide 16: Leadership also in New Zealand
… and also in New Zealand … For personal use only 9 66% of time spent between the 3 major employment sites was on SEEK 9 SEEK exclusive audience lead is 1.6x over Trademe, and 7.6x over Search4jobs 9 SEEK ad volume lead remains strong, with 2x greater than Search4jobs and 2.7x greater than Trademe 9
Slide 17: Growth
For personal use only Growth 17
Slide 18: Focus on key growth drivers remains consistent
Focus on key growth drivers remains consistent… For personal use only DRIVERS OF FUTURE EARNINGS GROWTH EMPLOYMENT LEARNING Volume Acquisitions & Partnerships Yield Product expansion Product Expansion IDP Education Australia OPPORTUNITIES OUTSIDE CORE International Expansion - Zhaopin - Other intern
Slide 19: Strong growth in online job ad market continued in FY07
For personal use only Seasonally adjusted job ads. (Common Base 100 = Jan 2002) - 50 100 150 200 250 300 350 400 450 Feb-02 Apr-02 Jun-02 Source: ANZ Job Advertisements Series Aug-02 Oct-02 Dec-02 Print Job Ad Index Online job ad index Feb-03 Apr-03 Jun-03 Aug-03 Oct-03 Dec-03 Feb-04 Apr-04 Jun-04 A
Slide 20: Online revenue growing rapidly with significant headroom remaining
…and online revenue growing rapidly with significant headroom remaining… For personal use only Revenue penetration US vs. AU 38% 31% 25% 2 year lag 23% 22% 19% 18% 14% 14% 13% 11% USA Australia 2001 2002 2003 2004 2005 2006 2007 Source: Corzen (US); SEEK Estimates (AU) 20
Slide 21: Organic employment growth moving forward
Organic employment growth moving forward… For personal use only © Small Medium Enterprise • Continued focus on acquisition and retention © • Strong growth opportunities still available in this market Volume © Early Stage Markets • All sectors experiencing strong uptake and expected to continue movin
Slide 22: SEEK Learning continues to deliver
SEEK Learning continues to deliver… For personal use only Strategy Build the first & best place to go for career related education & training New partners signed in last 12 months: Acquisitions & FY07 - FINSIA (Sep06), CMA (April07), Wealth Within (May07) Partnerships FY08 - ACAP (July07), Martin Co
Slide 23: IDP has delivered an outstanding result
IDP has delivered an outstanding result in 9 months… For personal use only Strategy/ Commercialisation of a Not for Profit organisation, and increasing market share in the IDP & IELTS business Opportunity FY 2007 Result 9 FY07 EBITDA~ $20M; expected results @ acquisition $10M (CY06) IDP 100% SEEK Sh
Slide 24: International expansion on track, Zhaopin in line with expectations
International expansion on track for future growth…Zhaopin in line with expectations… For personal use only SEEK continues to pursue other international expansion opportunities Zhaopin Strategy/ Continue to build brand and increase market share in major regions across China Opportunity 67% online re
Slide 25: In Summary
In Summary… For personal use only Financial Strong financial performance this year…and expected to continue Outlook Employment market expected to remain strong Strategy Continued consistent focused strategic agenda Market Migration from print to online Dynamics Market leaders in unaided awareness, a
Slide 26: For personal use only
For personal use only 26
Slide 27: Appendix
Appendix For personal use only 1. Detailed P&L – 5 Year 2. Detailed P&L – Employment & Learning 27
Slide 28: Detailed P&L - Year
Detailed P&L - 5 Year For personal use only PCP Change SEEK LTD FY03 FY04 FY05 FY06 FY07 $ % Revenue 25.6 39.7 69.6 106.2 157.0 50.7 48% Employment 25.6 39.7 63.5 95.2 140.2 45.0 47% Learning 0.0 0.0 6.1 11.1 16.8 5.7 52% Operating expenses 19.7 25.4 40.1 57.2 76.7 19.4 34% EBITDA 6.0 14.4 29.5 49.0
Slide 29: Profit & Loss – Learning & Employment
Profit & Loss – Learning & Employment For personal use only Learning Employment SEEK LTD % % 2006 2007 Growth 2006 2007 % Growth 2006 2007 Growth Revenue 11.0 16.8 53% 95.3 140.2 47% 106.2 157.0 48% Operating expenses 5.5 9.8 76% 51.7 66.9 29% 57.2 76.7 34% EBITDA 3.1 3.5 13% 45.9 76.9 67% 49.0 80.3