Slide 1: SEEK Limited H1 21 Results Presentation
SEEK Limited H1 21 Results Presentation 6 months to 31 December 2020
Slide 2: Key Announcements
Key Announcements
Slide 3: Senior leadership change & more focused AP&A and Investments
Senior leadership change & more focused AP&A and Investments Andrew Bassat to transition to new role and be succeeded by Ian Narev • Andrew Bassat will step down as MD & CEO and be succeeded by Ian Narev, effective 1 July 2021 • Andrew Bassat will transition to a new full-time role as Executive Chai
Slide 4: Targeting greater independence and focus for SEEK and Investments
Targeting greater independence and focus for SEEK and Investments SEEK Investments Composition • AP&A with ownership interests in • ESV portfolio and OES Zhaopin and SEEK Investments • SEEK will focus on capturing the • Investments will focus on being a Strategic Focus significant growth opportuniti
Slide 5: Potential sell-down of SEEK's ownership interest in Zhaopin
Potential sell-down of SEEK’s ownership interest in Zhaopin • SEEK and other Zhaopin shareholders are in advanced discussions with a consortium looking to acquire an ownership interest in Zhaopin • The transaction valuation will be in the order of A$2.2 billion (100% implied Equity Value) • If the p
Slide 6: Executive Summary
Executive Summary
Slide 7: SEEK is fulfilling its purpose on a large scale
SEEK is fulfilling its purpose on a large scale Entrepreneurial mindset with a track Large addressable markets Leading market positions record of long-term value creation TSR3 of c2.9B Asia Pacific & Americas (AP&A) SEEK Investments 1,741% Population exposure 45M+ 220M+ vs ASX of 237% Candidates Can
Slide 8: SEEK is recovering well and executing on its key priorities
SEEK is recovering well and executing on its key priorities H1 21 result broadly in line with pcp despite COVID-19 impact • Revenue cA$819m, EBITDA cA$246m, NPAT cA$70m • H1 21 results broadly in line with pcp despite no COVID impact in H1 20 YTD results and improved momentum leading to upgraded FY2
Slide 9: Potential changes will impact our A$5bn revenue aspiration but long-term growth drivers remain unchanged
Potential changes will impact our A$5bn revenue aspiration but long- term growth drivers remain unchanged… • Intended changes to SEEK Investments & potential reduction in Zhaopin ownership will impact SEEK’s A$5b aspirational revenue opportunity • Long-term strategic growth drivers and substantial r
Slide 10: ...and we made tangible progress against them in H1 21.
…and we made tangible progress against them in H1 21. Asia Pacific & Americas (AP&A) SEEK Investments Early Stage Ventures ANZ Unify APAC platforms Online Employment Scaling up existing partners Investing and building • Common discovery experience rolled out across Asia • Migration to online • Scali
Slide 11: SEEK's long term approach has created significant shareholder value
SEEK’s long term approach has created significant shareholder value c7x1 TSR vs ASX 200 since IPO despite the economic cycle and aggressive competition 3 1,741.1% Product & Tech evolution 2 M&A led growth (Int’l & Education) 1 ANZ led growth 236.5% Apr-2005 Jul-2007 Oct-2009 Jan-2012 May-2014 Aug-20
Slide 12: Group Financial Performance
Group Financial Performance
Slide 13: SEEK's H1 21 results are broadly in line with pcp despite COVID-19 challenges
SEEK’s H1 21 results are broadly in line with pcp despite COVID-19 challenges Group Group Reported Revenue EBITDA NPAT A$819.1m A$245.9m2 A$69.7m -6% vs pcp -1% vs pcp -8% vs pcp Key employment businesses EBITDA benefiting from Higher D&A, +8% due to product recovering well vs pcp improving revenue
Slide 14: Group Financial Result: Detailed comparison H1 21 vs H1 20
Group Financial Result: Detailed comparison H1 21 vs H1 20 H1 21 Financials (A$m) Key Insights: Below the line items Constant Growth Currency Revenue H1 21 H1 20 % % Reported NPAT down 8% SEEK ANZ 223.0 224.4 (1%) (1%) • Higher D&A: increased product & tech investment SEEK Asia 67.1 91.3 (27%) (23%)
Slide 15: SEEK has a track record of generating strong cash flows and deploying capital
SEEK has a track record of generating strong cash flows and deploying capital into high growth opportunities Strong cash flows… ...have been deployed into high ...and high growth M&A. returning capex… Capital deployed into current Online Education, Operating cash flows1 A$m Product & Tech capex A$m
Slide 16: In H1 21, we undertook strategic investment and intend to recommence paying dividends in FY21
In H1 21, we undertook strategic investment and intend to recommence paying dividends in FY21 Net debt Update on Dividends Flexibility to invest in H1 21 No interim H1 21 dividend • Covenant limits have been increased through to Jun-211 • It is the Board’s intention to recommence payment • Operating
Slide 17: Asia Pacific & Americas (AP&A)
Asia Pacific & Americas (AP&A)
Slide 18: AP&A progressed well in H1 21 as it looks to unlock the significant APAC opportunity
AP&A progressed well in H1 21 as it looks to unlock the significant APAC opportunity H1 21 Summary Significant APAC opportunity Market positions remained strong though competition intense Asia relative Variable recovery across regions; ANZ strongest to ANZ ANZ EBITDA benefited from revenue outperfor
Slide 19: ANZ job ad volume ended H1 21 ahead of pcp
ANZ job ad volume ended H1 21 ahead of pcp SEEK ANZ - Volume trends Detailed Insights Job ad volumes by month (‘000s) Industries hardest hit by COVID-19 have recovered well 250 • Hospitality & Tourism and Retail & Consumer amongst the hardest hit in H2 20 but moved ahead of pcp from Nov-20 • Other l
Slide 20: SEEK ANZ benefited from higher SME contribution and depth product adoption
SEEK ANZ benefited from higher SME contribution and depth product adoption Financials Depth revenue result A$m A$m Growth +12% H1 21 H1 20 % 68.8 Revenue 223.0 224.4 (1%) 61.4 EBITDA 133.1 134.2 (1%) 52.6 EBITDA (%) 60% 60% 37.7 Revenue decline of 1% attributable to: 29.3 22.2 • (16%) volume decline
Slide 21: SEEK ANZ is the market leader but competition is intensifying
SEEK ANZ is the market leader but competition is intensifying UNPROMPTED BRAND AWARENESS7 c16m 35m+ 78% +2x lead vs nearest competitor Candidate Profiles1 Monthly visits3 85%+ of ANZ labour force2 c70% of traffic via mobile/apps DELIVERING VALUE c75% of traffic is direct4 SHARE OF AU PLACEMENTS8 FOR
Slide 22: SEEK Asia volume recovery is variable
SEEK Asia volume recovery is variable SEEK Asia - Volume trends Key insights by market Hong Kong • Improving ad volume trends (Q2 FY21 ad volume up 7% vs Q1 FY21) • Momentum building in Financial Services, Telecommunication and Construction • Geopolitical issues/social unrest remains Malaysia • Volu
Slide 23: SEEK Asia maintained operational progress despite the disruption
SEEK Asia maintained operational progress despite the disruption Financials Operational insights Constant Operational progress from recent investment and A$m Growth Currency unification initiatives SEEK Reported H1 21 H1 20 % % • Brand refresh (Jobstreet & JobsDB) Revenue 67.1 91.3 (27%) (23%) • Sma
Slide 24: SEEK Asia has strong marketplace metrics and a large geographic footprint
SEEK Asia has strong marketplace metrics and a large geographic footprint c29m 40m+ Candidate Profiles1 Monthly visits3 c12% of labour force2 c70% of traffic via mobile/apps DELIVERING VALUE c70% of traffic is direct4 FOR CANDIDATES c105k c160k Active Unique Hirers5 Job ads on platform Last 12 month
Slide 25: To capitalise on the large APAC opportunity SEEK is focused on three key strategic areas
To capitalise on the large APAC opportunity SEEK is focused on three key strategic areas Progress in H1 21 Roadmap for H2 21 1. Unify • Commenced candidate experience unification • Complete Smarter Search platform roll-out platforms • Common discovery experience (search, view job etc) • APAC unifica
Slide 26: Acceleration of our unification program will help unlock the APAC market opportunity earlier
Acceleration of our unification program will help unlock the APAC market opportunity earlier APAC unification will provide scale efficiencies and increase speed to market • Unified technology allows us to better leverage our people and products across a broader footprint • Increased speed to market
Slide 27: LatAm: focused on re-building sustainable businesses
LatAm: focused on re-building sustainable businesses Brasil Online Key insights BRLm Growth • COVID-19 impact continues to be severe in Brazil and Mexico Pro-Forma H1 21 H1 20 % Revenue 61.7 80.7 (24%) • Strategy is in place to re-build sustainable businesses EBITDA 2.7 9.4 (71%) o Focusing on a ran
Slide 28: SEEK Investments
SEEK Investments
Slide 29: M&A and entrepreneurial ventures are a key part of creating long-term value
M&A and entrepreneurial ventures are a key part of creating long- term value for SEEK shareholders Investing in emerging leaders leveraged to long-term structural trends in the Human Capital Market. We then work with management teams to unlock the full potential of their businesses SEEK Investments
Slide 30: Zhaopin achieved a solid result driven by improving billing trends and operational efficiencies
Zhaopin achieved a solid result driven by improving billing trends and operational efficiencies Financials Results & Insights RMBm Growth Online and Adjacent revenue showing good momentum Pro-Forma H1 21 H1 20 % • Online billings recovering faster than reported revenue Online Revenue (100%) 969.5 1,
Slide 31: OES: COVID-19 increased the demand for online education
OES: COVID-19 increased the demand for online education Financials Growth Strategy & Outlook A$m Growth Pro-Forma H1 21 H1 20 % Revenue (100%) 89.7 65.1 38% EBITDA (100%) 26.8 18.6 44% EBITDA (%) 30% 29% 1 2 3 4 Post-grad Under-grad Short & Unbundled OPM Services OPM Services Micro-courses Services3
Slide 32: Our diverse portfolio of Online Education businesses are disrupting traditional modes of education delivery
Our diverse portfolio of Online Education businesses are disrupting traditional modes of education delivery Online Program Management & Online Education Marketplaces / Higher Education Services Distribution 1 Investments in emerging leaders Australia, US, NZ, UK Latin America Latin America Latin Ame
Slide 33: Our HR SaaS businesses provide tech-enabled solutions to solve complex problems
Our HR SaaS businesses provide tech-enabled solutions to solve complex problems Investments in emerging leaders Australia, Asia, UK & US Australia, NZ, UK & US Australia, NZ, UK & SE Asia Israel, UK, & US • A leading digital learning • A talent acquisition suite • A HR Information System • A HR Info
Slide 34: Our contingent labour platforms are leveraged to the growing temporary labour force
Our contingent labour platforms are leveraged to the growing temporary labour force Investments in emerging leaders Europe & Latin America Australia & NZ UK Latin America & SE Asia Serving an • A tech-enabled staffing • A tech-enabled marketplace • A tech-enabled marketplace • A tech-enabled marketp
Slide 35: Outlook
Outlook
Slide 36: YTD Performance vs SEEK's AGM guidance
YTD Performance vs SEEK’s AGM guidance Since late Nov-20 SEEK’s results and momentum have been significantly better than our AGM expectations1 • Results for the last 6 weeks of CY20 were significantly better than our AGM expectations 1 o Mainly driven by ANZ, with OES and SEEK Asia to a lesser exten
Slide 37: FY21 Guidance Update
FY21 Guidance Update Context • Forecasting remains challenging given volatility caused by COVID-19, changes in hiring sentiment and FX o SEEK’s ad volumes have responded quickly to changes in COVID-19 restrictions, both positively and negatively. Yields are also sensitive to the sectors in which act
Slide 38: Well positioned to grow SEEK's long-term value
Well positioned to grow SEEK’s long-term value Strong performance during COVID-19 and in initial recovery stage demonstrates SEEK’s resilience and strength We see significant opportunities to grow SEEK and SEEK Investments • Both businesses are executing well against key strategic priorities • Compe
Slide 39: Appendices
Appendices
Slide 40: SEEK Group: H1 21 Segment Results
SEEK Group: H1 21 Segment Results H1 21 Segment Results (from Note 1, p18 of SEEK’s Half-year Report 2021) 40 SEEK Limited H1 21 Results Presentation
Slide 41: SEEK Group: Net Debt Breakdown (31 December 2020)
SEEK Group: Net Debt Breakdown (31 December 2020) 31 December 2020 (A$m) Short Net Facility Funds on Borrowings Cash -term 2 Cash/ Limit deposit Investments (Debt) SEEK Ltd - A$ bank debt A$612.5m (487.5) SEEK Ltd - US$ bank debt US$552.5m (662.2) SEEK Ltd -A$ Subordinated Floating Rate Notes A$225.
Slide 42: Group Capex of A$67m with majority of investment in Product & Tech
Group Capex of A$67m with majority of investment in Product & Tech SEEK Group Capex Key insights Product & Tech: AP&A capex of cA$43m mainly relating to: • ANZ: AI & Search, CRM, Mobile, Hirer analytics & insights • Asia: Platform unification (incl. Smarter Search, Recommendations, Notifications) an
Slide 43: Continued focus on key ESG areas
Continued focus on key ESG areas Data Trust Cyber Security Protecting data privacy Significant investment in cyber controls • Data governance reflects importance of customer trust • Protecting systems, infrastructure & processes • Ethical use of data for candidate benefit • Tackling current and emer
Slide 44: Disclaimer
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 purport to be complete. In parti