Seek Limited · ASX:SEK
Seek — Shareholder Meeting (November 2020)
28 slides from Seek's shareholder meeting presentation, Nov 19, 2020
Slide 1: ASX cover letter: 2020 AGM CEO's presentation
19 November 2020 For personal use only The Manager ASX Market Announcements Office Australian Securities Exchange Dear Manager SEEK Limited – 2020 Annual General Meeting – CEO’s presentation In accordance with the Listing Rules, attached is the presentation to be delivered by the Chief Executive Off
Slide 2: SEEK Limited Annual General Meeting 2020 - CEO's Address
For personal use only SEEK Limited Annual General Meeting 2020 CEO’S ADDRESS 19 NOVEMBER 2020 Refer to slides 24-25 where SEEK provides a trading update and FY21 guidance
Slide 3: SEEK is fulfilling its Purpose on a large scale
SEEK is fulfilling its Purpose on a large scale For personal use only Market leading businesses with Strong assets and capabilities to Entrepreneurial mindset with a track large addressable markets drive our growth strategy record of long-term value creation TSR2 of c2.9B Asia Pacific & Americas (AP
Slide 4: SEEK's actions are always guided by our Purpose and long-term mindset
SEEK’s actions are always guided by our Purpose and long-term mindset For personal use only Throughout SEEK’s history we have always taken a purpose driven and long-term approach • Our Purpose guides our strategy • Strong conviction in prioritising investment for the long-term This approach has guid
Slide 5: SEEK's long-term growth drivers are unchanged
SEEK’s long-term growth drivers are unchanged For personal use only Asia Pacific & Americas (AP&A) SEEK Investments M&A and Entrepreneurial ANZ Activities Scaling up existing Online Education Bringing SEEK Asia to Key Growth Drivers Aligning Price to Value Online Employment partners & signing ANZ ba
Slide 6: SEEK's approach has created significant shareholder value
SEEK’s approach has created significant shareholder value c6x1 TSR vs ASX 200 since IPO despite the economic cycle and aggressive competition For personal use only 3 Product & Tech evolution 1,201.7% 2 M&A led growth (Int’l & Education) 1 ANZ led growth 190.8% • SEEK has continually invested for the
Slide 7: Group Financial Performance
For personal use only Group Financial Performance
Slide 8: FY20 financial result impacted by COVID-19 and weak macro conditions
FY20 financial result impacted by COVID-19 and weak macro conditions For personal use only Group Revenue Group Reported NPAT Reported before significant items1 EBITDA NPAT loss A$1,577.4m A$414.9m A$90.3m A$(111.7)m +3% vs pcp -9% vs pcp -51% vs pcp Online employment Impacted by Impacted by lower Im
Slide 9: Track record of generating strong cash flows redeployed into high ROI strategies
Track record of generating strong cash flows which have been redeployed into high ROI strategies For personal use only Historically strong cash flows… ...have been deployed into high ...and high growth M&A. returning capex… Operating cash flows1 A$m Product & Tech capex A$m Capital deployed into cur
Slide 10: SEEK is managing its capital structure to support its growth strategy
SEEK is managing its capital structure to support its growth strategy For personal use only Debt Restructuring initiatives Final FY20 dividend Increased funding flexibility & new capital sources No final FY20 dividend • Increased covenant limits through to Jun-211 • Once economic conditions improve,
Slide 11: Asia Pacific & Americas (AP&A)
For personal use only Asia Pacific & Americas (AP&A)
Slide 12: AP&A is focused on evolving to capture a large market opportunity
AP&A is focused on evolving to capture a large market opportunity FY20 Summary For personal use only Population1: c590m Market positions remained strong GDP1: A$5,071m Ave. GDP per Capita1: A$31k Urbanisation1: c53% COVID-19 weighed on job volumes but depth revenue was resilient FY20 Revenue: cA$163
Slide 13: SEEK ANZ performed well in a weak volume environment
SEEK ANZ performed well in the context of a weak volume environment For personal use only FY20 Summary Revenue decline of 12% and EBITDA decline of 15% vs pcp • Resilient result in the context of volumes being down 17%1 • Depth revenue resilient +1% vs pcp • SME’s leading the recovery Managed costs
Slide 14: SEEK ANZ is the market leader despite strong competition
SEEK ANZ is the market leader despite strong competition For personal use only UNPROMPTED BRAND AWARENESS7 c15m 35m+ DELIVERING VALUE Candidate Profiles1 85%+ of ANZ labour force2 Monthly visits3 c70% of traffic via mobile/apps c75% of traffic is direct4 81% FOR CANDIDATES c2x lead over nearest comp
Slide 15: SEEK Asia result also impacted by macro conditions
SEEK Asia result also impacted by macro conditions For personal use only FY20 Summary Revenue decline 14% and EBITDA decline of 26% (constant currency) vs pcp • Hong Kong: Key driver of revenue decline due to geopolitical concerns and COVID-19 • Other markets were more resilient • Depth revenue held
Slide 16: SEEK Asia is well positioned across several geographies
SEEK Asia is well positioned across several geographies For personal use only c27m 40m+ Candidate Profiles1 Monthly visits3 c11% of labour force2 c70% of traffic via mobile/apps DELIVERING VALUE c70% of traffic is direct4 FOR CANDIDATES c115k c200k Active Unique Hirers5 Job ads on platform FY20 tota
Slide 17: SEEK Investments
For personal use only SEEK Investments
Slide 18: M&A and entrepreneurial ventures are a key part of SEEK's strategy
M&A and entrepreneurial ventures are a key part of SEEK’s strategy Invest in emerging leaders leveraged to long-term structural trends in the Human Capital Market. For personal use only We then work with management teams to unlock the full potential of their businesses Our approach SEEK’s unique str
Slide 19: Zhaopin navigated a challenging period to deliver a resilient result
Zhaopin navigated a challenging period to deliver a resilient result… For personal use only FY20 Summary Revenue growth of 12% (local currency) vs pcp despite COVID-19 • Resilient online revenue given soft macro & COVID-19 (down 11% local currency) • Adjacent Services Revenue (+73% local currency) o
Slide 20: Zhaopin utilising strategic assets across a large adjacent market opportunity
…and is utilising its strategic assets across a large adjacent market opportunity. For personal use only Zhaopin can leverage its hirer and candidate relationships into a large total addressable market (“TAM”) Market leadership in online employment is the key strategic focus Utilise hirer and candid
Slide 21: OES: Scaling multiple partnerships and expanding service offerings
OES: Scaling multiple partnerships and expanding its service offerings as demand for online education increases For personal use only FY20 Summary Solid revenue result of 7% vs pcp in context of regulatory environment • Primarily from Post-grad and UK Under-grad EBITDA down 5% vs pcp due to aggressi
Slide 22: SEEK Investments owns a portfolio of emerging leaders
SEEK Investments owns a portfolio of emerging leaders exposed to large addressable markets For personal use only Online Education HR SaaS Contingent Labour Large addressable markets1 A$50b+ A$2b+ A$20b+ globally in Australia across AP&A and Europe Shift to remote working/learning HR SaaS delivering
Slide 23: Our conviction has increased in our investments and key themes
Our conviction has increased in our investments and key themes Portfolio “look-through” revenue of cA$73m with growth of c35% vs pcp1 For personal use only Held up well during COVID with c70% of investments delivering record results in H2 20 & FY20 Strong momentum (customer growth, unit economics, r
Slide 24: Outlook
For personal use only Outlook
Slide 25: Oct-20 YTD Trading Update
Oct-20 YTD Trading Update For personal use only YTD performance • Group YTD revenue is well above the assumptions underlying the illustrative scenario provided at SEEK’s FY20 Results (Aug-20) o SEEK ANZ, OES and Zhaopin have performed well above the illustrative assumptions, with SEEK Asia also abov
Slide 26: FY21 Guidance Update
FY21 Guidance Update Context For personal use only • Forecasting remains challenging given the ongoing uncertainty in all markets caused by COVID-19 restrictions, overall business confidence and FX rates • SEEK’s ad volumes have responded quickly to changes in COVID-19 restrictions, both positively
Slide 27: Near term will be challenging but expect SEEK to capitalise on long-term opportunities
Near term will be challenging but expect SEEK to invest and capitalise on its significant long-term revenue opportunities For personal use only Our near-term results will be impacted by COVID-19 Our focus is on long-term value creation • Our market positions remain strong • We are confident in our s
Slide 28: Disclaimer
For personal use only 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