Slide 1: H1 24 Results Presentation
seek and you shall find @iobstreet SEEK LIMITED H1 24 Results Presentation 4 Candidate search page in English and Bahasa post-Unification
Slide 2: Agenda
01 H1 24 highlights 02 Platform Unification 03 H1 24 financial performance 04 APAC employment marketplace 05 Other businesses 06 SEEK Growth Fund 07 Strategy update 08 ESG 09 FY24 outlook
Slide 3: H1 24 highlights
H1 24 highlights
Slide 4: H1 24 highlights
H1 24 highlights » Platform Unification completed ahead of time and tracking under forecast D Placement share increased in ANZ and maintained in Asia p) Revenue down 5%!; volume declines in ANZ and Asia partially offset by double digit yield growth ) Operating expenses in line with pcp D EBITDA down
Slide 5: Platform Unification
Platform Unification <
Slide 6: Platform Unification completed ahead of schedule
Platform Unification completed ahead of schedule b Hong Kong Thailand 7 € Malaysia ecccccsnnnn x Singapore Philippines Indonesia Australia New e seek | Zealand \ v Pal Online marketplace and CRM rollout to Asia complete Oct 2023: Nov 2023: Malaysia, Singapore, Indonesia Philippines Jan 2024: — Hong
Slide 7: Platform Unification set to create value
Platform Unification set to create value APAC employment marketplace centrally hosted on an improved, proven ANZ platform Greater ROI for hirers + — Ability to post ads across APAC + Easier shortlisting and improved candidate management + Faster access to new products Improved experience for candida
Slide 8: Financial performance
H1 24 Financial performance <
Slide 9: H1 financial results
H1 24 financial results Continuing Operations $597m $253m Revenue EBITDA -5% vs pcp -11% vs pcp 19 cps H1 24 dividend -21% vs pcp, 100% payout? $108m $35m Adjusted NPAT! Reported NPAT -24% vs pcp -74%vs pcp 1. Adjusted NPAT is defined as Reported NPAT from Continuing Operations excluding the Fund an
Slide 10: Profit and loss summary
Profit and loss summary Constant Ag$m Growth % currency % Continuing Operations Revenue: down 5% due to Revenue (5%) (6%) lower volumes partially Operating expenses (343.9) (343.3) (0%) 1% offset by higher yield EBITDA (11%) (12%) re) ti sin li EBITDA Margin % perating expenses: in line with prior p
Slide 11: Revenue performance
Revenue performance Double digit yield growth partially offset volume reductions from historical highs Revenue H1 24 vs H1 23 ($m) 627 ANZ \f Asia L i 597 H123 | Volume Yield NJAR' } | Volume Yield NJART | LatAm Other? H1 24 Revenue *s..------------------nene ene ON ene nnn / Revenue ANZ revenue Asi
Slide 12: Profit performance
12 Profit performance Reduction in profit driven by lower revenue and higher D&A expense EBITDA H1 24 vs H1 23 ($m) 283 a mm H123 Revenue | Unification Opex | H124 EBITDA \. investment (ex Unification)’ EBITDA Adjusted NPAT H1 24 vs H1 23 ($m) || 108 142 H123 EBITDA D&A Interest Tax Other H124 Adj N
Slide 13: Cashflow summary
13 Cashflow summary A$m H1 24 Operating activities Operating cashflows (excluding interest, transaction costs and tax) 208.3 Interest and transaction costs (45.8) Tax (31.4) Total operating cashflows 131.1 Investing activities Capital contributions to the SEEK Growth Fund? (17.9) Management fees for
Slide 14: Balance sheet summary
14 Balance sheet summary Net debt and leverage A$m 31 Dec 23 30 Jun 23 Change © Borrower Group net leverage ratio increased to 2.46x due to lower earnings Borrowings’ (1,345.7) (1,315.4) (30.3) Cash 236.8 251.4 (14.6) © Total facilities of $1.8b, $456m undrawn at 31 Short term investments 0.2 0.2 -
Slide 15: APAC employment marketplace
APAC employment marketplace <
Slide 16: APAC employment marketplace highlights
16 APAC employment marketplace highlights Monthly Allorganisations unique hirers! and jobs and attention 95k All people Monthly unique visitors! 29m Outcome: | placements AU: 32% ASIA: 23% Month! Yield per ad? applications and B Efficient Best Talent Search connections! $206 monetisation «< oa match
Slide 17: Competitive metrics
7 Competitive metrics Current share of placements Historical placements Unprompted brand awareness Australia metrics! Asia metrics2 31.7% 3.6x lead vs nearest competitor ° E 23% 8.7% Weighted average 5.3% 3.2% 0.5% Professional Social Online Aggregators SEEK Networks Networks Classifieds (incl. JORA
Slide 18: ANZ performance
ANZ performance Yield growth has partially offset volume reductions from historic highs FINANCIALS ANZ margin has 5 9 % benefitted 2 percentage m m ° points vs pcp due to the APAC technology Revenue EBITDA Margin service arrangements i 7 lated to Plath 10% 13% -2 percentage point decline hinfpeciton
Slide 19: ANZ - candidate activity
19 ANZ - candidate activity Candidate engagement coupled with lower job ads driving improvements in applications per ad High levels of candidate engagement Applications per job ad higher Monthly unique visitors (m) SEEK Job Ad Index’ vs Applications per Ad index? (Australia) 250 200 ~ +8% vs pcp 150
Slide 20: ANZ - hirer activity
ANZ - hirer activity Depth adoption higher and favourable shift in customer mix Volumes similar to FY19 with more favourable customer mix Monthly job ads! and unique hirers (‘(OOOs) . . A ®@ Volumes have continued to slow since reaching record levels in March 2022. All industries 350 recorded declin
Slide 21: Asia performance
Asia performance Revenue higher but EBITDA lower due to allocation of Platform Unification costs and ongoing investment FINANCIALS Revenue EBITDA +2% reported -27% reported -1% constant currency! REVENUE DRIVERS -31% constant currency -26% Volume? Absolute decline +32% Yield? Absolute growth 28% Mar
Slide 22: Asia - candidate activity
22 Asia - candidate activity Candidate activity stable; some transitional effects from Platform Unification Monthly active users lower as candidates adapt to Applications per ad rising due to decline in job ads unified platform (e.g., new mobile app download) Monthly unique visitors (m) Applications
Slide 23: Asia - hirer activity
Asia - hirer activity Commercial model driving depth adoption and yield uplift Hirer activity reflects economic conditions and changes to commercial model @ Paid job ad volumes declined due to weaker Monthly job ads and unique hirers’ (‘OOOs) economic conditions 350 + Lower yielding basic ads declin
Slide 24: Asia - market insights
24 Asia - market insights Developed markets Emerging markets Hong Kong Malaysia Singapore Indonesia Thailand _ Philippines Labour force! 3.8m 17.3m 3.5m 137.3m 40.2m 47.0m Internet penetration %! 96% 97% 96% 66% 88% 53% % of placement activity? 76% 17%, Zof placement activity 53% 45% Placements shar
Slide 25: Other businesses
a seek Other businesses
Slide 26: Employment marketplaces
26 Employment marketplaces Pro forma (100% basis)! Zhaopin Equity-accounted Online revenue investment . . (China) - 23.5% Adj. services rev. owned by SEEK Total revenue EBITDA EBITDA (%) NPAT SEEK share A$m occ Pro forma (100% basis) Subsidiary (Mexico) - Revenue 98.2% owned by SEEK EBITDA EBITDA (%
Slide 27: Platform support
Platform support Investing to grow JobAdder and support the core employment marketplace Financials Standalone business Ag$m Growth + End to end recruitment software suite for recruiters and H124 H123 % corporate talent acquisition teams Revenue 23.4 19.1 23% JobAdder + Integrated into SEEK’s core pl
Slide 28: SEEK Growth Fund
SEEK Growth Fund <
Slide 29: Update on the SEEK Growth Fund
Update on the SEEK Growth Fund Portfolio valuation down 4% since 30 June 2023; up 32%! since creation to $2.2b (IRR of 16%2) Movements in the SEEK Growth Fund Porwre valuation since creation ($m) 2,318 (139) 2,216 SEEK seeded Capital called Valuation increase Valuation Capital called Valuation decre
Slide 30: Update on the SEEK Growth Fund
Update on the SEEK Growth Fund Manager’s perspective on the Fund Accounting impacts for SEEK Fund commentary + The lower H1 24 valuation was driven by declines in HR SaaS (slow-down in revenue growth and multiple compression) and likely permanent declines in certain poor performing Education and Con
Slide 31: Strategy update
Strategy update <
Slide 32: $2bn revenue opportunity by FY28
32 $2bn revenue opportunity by FY28 Revenue growth and cost management to deliver operating leverage ANZ volume | neutral to low single digit growth ANZ yield | high single digit growth $2bn opportunity at >50% margin Asia revenue | double digit growth Operating cost | mid to high single digit growt
Slide 33: SEEK's strategic flywheel
33 SEEK’s strategic flywheel SEEK’s strategy is to grow the placements it facilitates and the value it adds to each placement a— —_ All organisations All people and jobs and attention Outcome: placements Efficient Best monetisation » matching
Slide 34: Continued investment for long-term growth
Continued investment for long-term growth Capability and product development focused on growing placements All organisations and jobs All people and attention Best matching > -—- Increasing employer Growing talent reach and Increasing the number and Growing the number and penetration career support
Slide 35: Continued investment for long-term growth
Continued investment for long-term growth Capability and product development focused on growing yield Best matching Fair and effective monetisation > Increasing the volume of Optimising variable pricing Delivering enhanced ad Creating new value through high trust data and rolling out to Asia product
Slide 36: ESG
ESG
Slide 37: 2023 Modern Slavery Statement
• • • • • • • SEEK’s 2023 Modern Slavery Statement was released in November 2023 and is available at https://www.seek.com.au/about/sustainability/ • • •
Slide 38: FY24 outlook
FY24 outlook
Slide 39: FY24 trading outlook
FY24 trading outlook @ Over the course of H1 24, ANZ and Asia paid ad volumes trended downwards with the rate of decline in November and December exceeding usual seasonal trends @ Our guidance assumes absolute volumes hold close to current levels in H2 24, which will result in mid-teens decline vs p
Slide 40: FY24 guidance
FY24 guidance KEY ASSUMPTIONS: FY24 GUIDANCE! @ Ourcore revenue assumptions for H2 24, which may be subject to significant fluctuations, are: Revenue of approximately + ANZ: job ad volumes to decline mid-teens partially offset by a 10% increase in yield vs pcp $1 .15bn to $1.21 bn + Asia: revenue in
Slide 41: Well positioned to grow shareholder value
41 Well positioned to grow shareholder value >) We have the market positions and capability to execute our growth plans D Aunified APAC employment marketplace platform provides the foundation for future growth } Our focus on growing placements and optimising yield supports a $2bn revenue opportunity
Slide 42: Appendices
Appendices
Slide 43: Additional operational information
Additional operational information
Slide 44: Segment structure overview
ANZ Asia2 Brasil Online OCC Platform support Online Education (formerly known as Caelum) HR SaaS Contingent Labour Zhaopin4 ESVs (other Early Stage Ventures)
Slide 45: ANZ macroeconomic snapshot
45 ANZ macroeconomic snapshot Labour market remains tight and wages growth is persisting Unemployment has risen from Q2 23 but remains low Unemployment rate as % of labour force! (Australia) 8% 6% 4% 2% 0% 2017 2018 2019 2020 2021 2022 2023 1. Seasonally adjusted. Source: ABS Labour Force. 2. Season
Slide 46: Asia macroeconomic snapshot
Asia macroeconomic snapshot GDP growth slowed across most Asia markets in 2023 Developed economies’ GDP growth has slowed from Emerging economies’ GDP growth declined in 2023 elevated levels GDP Growth (%) GDP Growth (%) 10% 10% 8% 8% 6% 6% Le 4% 4% 4 2% 2% 0% 0% -2% \V] 2% -A% 6% -4% 8% “6% 10% “8%
Slide 47: Investment for long-term growth
Investment for long-term growth Proposition Serve hirers and candidates Phase Status All organisations and jobs Best Matching > JobStreet express in the large semi-skilled segment in Asia with a faster speed-to-hire mobile-first platform Active trials Launched in four Indonesian cities and Singapore
Slide 48: Investment for long-term growth
Investment for long-term growth Fair and effective monetisation Proposition Phase Status Variable pricing and freemium Pay per application Q Pay Per Ane $120 Capped at $600 + 6ST Boosted ads Liaison Officer - Vocational Apply on SEEK > Recruiter network ek recruiter network Find quality candidates f
Slide 49: Additional financial information
Additional financial information <
Slide 50: Reconciliation to statutory results
Reconciliation to statutory results SEEK Adjusted results versus SEEK’s Reported statutory accounts (Segment Note) H124 H123 SEEK if SEEK if Adjusted’ Growth “9Mfeant Reported Adjusted’ Growth '9MHcant Reported A$m Fund? ems Fund? “ms ANZ 411.6 Ane 455.0 455.0 Asia 123.0 123.0 120.7 120.7 Brasil Onl
Slide 51: H1 segment results
H1 24 segment results Extract from SEEK’s Appendix 4D and Half Year Report for the 6 months ended 31 December 2023 Employment Marketplaces Investments Total _ Brasil Platform Corporate Portfolio _ SEEK ANZ Asia : occ . Growth Online support costs investments Fund Half-year ended 31 December 2023 Not
Slide 52: Platform Unification
Platform Unification Incremental investment likely to be below forecast following final activities Other information + Platform Unification incremental investment is now estimated at $175m, under forecast of $180m + Final incremental investment for the FY22 FY23 FY24F Total program will be provided
Slide 53: APAC technology service arrangements
53 APAC technology service arrangements H123' H124! Change FY24 estimate! . ANZ/ . ANZ/ . ANZ/ . Ag$m ANZ Asia Corporate Asia Corporate Asia Corporate Asia Net technology cost transfer we 2 between ANZ and Asia (7.4) 74 (2.4) 2.4 5.0 (5.0) Ongoing in FY24 Platform royalty fee - - 1.6 (1.6) 1.6 (1.6)
Slide 54: Capital expenditure
54 Capital expenditure Product and technology ($m)! 85 87 87 H121 H122 H123 H124 m= Continuing Operations Discontinued Operations Plant and equipment ($m)1 6 Yidd 5 Ty 5 2 H121 H122 H1 23 H124 = Continuing Operations Discontinued Operations 1. Capex additions above for Continuing Operations differ t
Slide 55: Capital management and dividends
Capital management and dividends Operating cashflows to support long term investment and shareholder returns Capital management approach Dividend Policy Dividend reflects SEEK’s operating cashflow performance and accommodates SEEK’s long-term investment priorities. Strong operating cashflows Key asp
Slide 56: Additional SEEK Growth Fund information
Additional SEEK Growth Fund information
Slide 57: SEEK Growth Fund - theme overview
SEEK Growth Fund - theme overview Investments in high-growth businesses across three priority themes HR SaaS Education Key structural Cloud-based subscription solutions that efficiently address critical needs in managing human capital for businesses of all sizes Digitisation and Al are improving stu
Slide 58: SEEK Growth Fund - portfolio investments
58 SEEK Growth Fund - portfolio investments Key investments are leveraged to long-term growth drivers Market Last major capital raise Capital position Investment thesis Growth drivers 1. In March 2017, SEEK increased its ownership in OES from 50% to 80%. bob HR SaaS Israel, UK, Europe, US, Australia
Slide 59: SEEK Growth Fund - reconciliation of equity accounted investment
SEEK Growth Fund - reconciliation of equity accounted investment A$m Dec-23 Jun-23 Change Portfolio valuation 2,216 2,318 (102) Uncalled capital 83 121 (38) Other net assets of the Fund 3 9 (6) Net asset value for equity accounting purposes 2,302 2,448 (146) SEEK ownership 83.8% 83.8% 0.0% SEEK shar
Slide 60: Additional ESG information
Additional ESG information
Slide 61: 2023 Sustainability Report and Modern Slavery Statement
• • • • • • • SEEK’s 2023 Sustainability Report and 2023 Modern Slavery Statement are available at • https://www.seek.com.au/about/sustainability/
Slide 62: 2023 Sustainability Report and Modern Slavery Statement
• • • • • • • • SEEK’s 2023 Sustainability Report and 2023 Modern Slavery Statement are available at https://www.seek.com.au/about/sustainability/ •
Slide 63: Disclaimer
#- seek and you shall find 63 Disclaimer 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 pur