Seek Limited · ASX:SEK
Seek — Macquarie Emerging Leaders Conference 2009
29 slides from Seek's conference presentation, May 6, 2009
Slide 1: Macquarie Emerging Leaders Conference, 2009
For personal use only Macquarie Emerging Leaders Conference, 2009 Paul Bassat, Joint CEO & Co-Founder, SEEK Limited
Slide 2: Overview of SEEK
For personal use only 2 Overview of SEEK
Slide 3: SEEK is #1 in online job ad classifieds in Australia & NZ and trading in line with expectations
SEEK is the #1 in online job ad classifieds in Australia & NZ and is trading in line with expectations For personal use only Despite the challenging environment, SEEK is trading in line with expectations… SEEK reaffirms the guidance of $93.5m1 EBITDA it provided around its half-year announcement in
Slide 4: Financial Performance
Financial Performance For personal use only 4
Slide 5: Robust Financial Results to December 2008
Robust Financial Results to 31 December 2008 For personal use only 1A 30% shareholding in Brasil Online Holdings was acquired in 17 November 2008 5
Slide 6: Continuing the trajectory over the last years: H1 Six Year Trend
…continuing the trajectory over the last 6 years For personal use only H1 Financial Results - Six Year Trend $108.7M $99.9M $70.0M $56.6M $51.6M $47.4M $35.6M $31.4M $33.4M $32.5M 52% $23.8M $20.6M 52% $17.5M $12.9M 48% $14.6M 43% $8.2M $5.0M $5.4M 41% FY04 FY05 FY06 FY07 FY08 FY09 FY04 FY05 FY06 FY
Slide 7: SEEK is conservatively funded with no refinancing commitments prior to August 2010
SEEK is conservatively funded with no refinancing commitments prior to August 2010 For personal use only Illustrative Pro-Forma Net Debt Position (Post Capital Raising but excl increase in op. cash flow) Discussion • The illustrative analysis above is based on a series of assumptions around: • Share
Slide 8: Outlook FY09 & Update
Outlook FY09 & Update For personal use only • Significant weakening of overall employment advertising market starting in Q2 FY09 • Migration of employment advertising from print to online continuing at a rapid rate • Through the downturn, online ad volumes & revenue will continue to hold up better t
Slide 9: Employment Market Dynamics
Employment Market Dynamics For personal use only 9
Slide 10: Despite the current cyclical weakness, SEEK is in a strong market position
Despite the current cyclical weakness, SEEK is in a strong market position For personal use only Online is faring better than print but SEEK is not immune to the downturn … Online revenue & volumes are holding up well relative to print with the downturn accelerating the rapid migration from print to
Slide 11: Reflected in our #1 market position in Australia & NZ
…which is reflected in our #1 market position in Australia & NZ For personal use only Australia AU Online Share - Key Metrics Mar 2009 100% 75% 50% SEEK SEEK 25% SEEK 0% Ads UB's TTOS Source: March 09 Nielsen NetRatings, SEEK Count of websites New Zealand 11
Slide 12: Challenging environment driving rapid migration from print to online
The current challenging environment is driving the rapid migration from print to online in CY09 YTD … For personal use only Structural shift in the Australian Classifieds Market 90.0% (Market Share of Print and Online Ads) 80.0% Market Share of AU Classifieds Market % 70.0% Seasonally adjusted job a
Slide 13: Strong upside through the cycle as share of revenue is still predominantly in print
…of which there is strong upside through the cycle as the share of revenue is still predominantly in print For personal use only Online vs. Print (%) Job-Ad Volume1 Job Seeker Preferences2 Share of Spend3 Online 80% 68% 35% Print 20% 32% 65% Note: Job seeker preferences considers online and print me
Slide 14: Continuation of a long term structural growth story
… which is a continuation of a long term structural growth story… For personal use only Migration of jobs classifieds from print to online (2001-2010F; %) 70 60 USA 50 ~2 years lag 40 Australia UK 30 20 10 0 2001 2002 2003 2004 2005 2006 2007 2008F 2009F 2010F 14 Source: Corzen, WARC, WAN, IAB, Clas
Slide 15: Looking through the cycle, SEEK is well positioned to take advantage of structural growth
Looking through the cycle, SEEK is well positioned to take advantage of the structural growth that is still unfolding For personal use only Core drivers of long term employment earnings When operating conditions improve, SEEK’s revenue & earnings should rebound rapidly given its strong market positi
Slide 16: SEEK builds & strengthens Education & Training Business
SEEK builds & strengthens Education & Training Business For personal use only 16
Slide 17: 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) (50% moving to 100%) APM (Marketing/PR) Domestic Students JNI (Psychology/Counselling) CATC (Design) (100%) EDUCATION AND TRAINING SEEK Learni
Slide 18: SEEK's expansion into Education and Training has been highly successful
SEEK’s expansion into Education and Training has been highly successful For personal use only Learning Revenue (FY06 - FY08) Learning EBITDA (FY06 - FY08) FY06 FY07 FY08 FY06 FY07 FY08 $111.7M $20.6M $59.9M $12.0M $3.1M $11.0M *H1 FY09 = $65.6 M *H1 FY09 = $12.9 M • SEEK owns 100% of SEEK Learning (
Slide 19: Key Transaction Details
Key Transaction Details For personal use only Transaction Details Transaction Details • SEEK to acquire the remaining 50% of THINK for • SEEK to offer to purchase up to an additional $42.5 MM and to pay down current THINK Debt of 10% of IDP from Education Australia Pty Ltd approximately $14.5 MM • S
Slide 20: Transaction Highlights
Transaction Highlights For personal use only • THINK has the broadest group of private colleges in Australia • SEEK Learning is the leading Education Sales and Enrolment channel • There are considerable revenue & cost synergies between SEEK Learning and THINK • SEEK Learning and THINK together provi
Slide 21: THINK is building additional capabilities in the fast growing domestic education market
THINK is building additional capabilities to seize opportunities in the fast growing domestic education market For personal use only Financial Results • THINK has demonstrated rapid revenue growth since THINK Education Group 100% SEEK’s initial investment in October 2007 A$M's H1081 H109 $ Growth •
Slide 22: IDP has continued its strong growth trajectory
IDP has continued its strong growth trajectory and has substantial further opportunities For personal use only Financial Results1 • IDP has produced more than two years of strong, IDP Education 100% sustained growth since SEEK’s investment in August $ % 2006 A$M's H108 H109 Growth Growth • Growth ha
Slide 23: SEEK Learning is continuing to perform strongly
SEEK Learning is continuing to perform strongly For personal use only Financial Results • Strong growth with Revenue up 58% and EBITDA up 267% vs pcp continuing its strong performance in H2 FY08 • Growth driven by strong increase in sales and creating economics of scale over its sales & marketing ca
Slide 24: International
For personal use only 24 International
Slide 25: Brasil Online's performance to date has been pleasing
Brasil Online’s performance to date has been pleasing For personal use only Results Share of Unique Audience • Brasil Online Holdings comprises of the #1 & #2 online employment sites in Brazil being Catho and Manager (Jan 2009) • Strong performance through the 1st half of FY09 with the “jobseeker pa
Slide 26: Zhaopin is well positioned in a challenging environment
Zhaopin is well positioned in a challenging environment For personal use only Zhaopin1 • SEEK increased its losses since H108 with SEEK’s share of losses increasing from A$2.4m to A$10.7m of which 76% of the increase in losses is attributable to FX and increased equity ownership • Zhaopin’s operatin
Slide 27: JobStreet provides exposure to the fast growing SE Asian Market
JobStreet provides SEEK with exposure to the fast growing SE Asian Market For personal use only JobStreet - Annual Results (RM) Who are JobStreet? CY04 CY05 CY06 CY07 CY08 • Equal #1 job board leader in SE Asia, and #1 player in RM 102.3M Malaysia with over 5.5m Jobseekers and 50,000 customers • Hol
Slide 28: In conclusion focus drivers for SEEK's growth remains consistent
In conclusion 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 Learning Drivers of Future Acquisitions & Partnerships Earnings Growth IDP THINK International Brasi
Slide 29: Disclaimer
Disclaimer For personal use only This presentation has been prepared by SEEK Limited (“SEEK”) for general information purposes only. The information in this document is in summary form and does not purport to be complete. This document does not constitute investment advice or a recommendation to any