Seek Limited · ASX:SEK
Seek — H1 FY22 Earnings Presentation
52 slides from Seek's earnings presentation, Feb 15, 2022
Slide 1: SEEK Limited – FY22 Half Year Results Presentation
15 February 2022 The Manager ASX Market Announcements Office Australian Securities Exchange Dear Manager SEEK Limited – FY22 Half Year Results Presentation In accordance with the Listing Rules, I enclose SEEK’s FY22 Half Year Results Presentation for immediate release to the market. Yours faithfully
Slide 2: H1 22 Results Presentation
SEEK LIMITED H1 22 RESULTS PRESENTATION 6 months to 31 December 2021 We help people live more fulfilling and productive working lives and help organisations succeed
Slide 3: Today's agenda
Today’s 1 H1 22 Highlights agenda 2 H1 22 Financial Performance 3 Employment Marketplaces 4 SEEK Growth Fund 5 Strategy Update 6 FY22 Outlook SEEK Limited H1 22 Results 2
Slide 4: H1 22 Highlights
H1 22 Highlights
Slide 5: H1 22 Highlights
H1 22 Highlights Operational v • Record job ad volumes in Australia and positive trends in other key regions • Strengthening of market and brand metrics • Revenue strength enabling accelerated investment • Progress against strategic initiatives including Platform Unification Financial v • Revenue gr
Slide 6: H1 22 Financial Performance
H1 22 Financial Performance
Slide 7: H1 22 Financial Results
H1 22 Financial Results Continuing Operations Revenue A$517m +59% vs pcp EBITDA A$251m +83% vs pcp NPAT Excl Significant items1,2 A$124m +147% vs pcp Discontinued Operations NPAT Excl Significant items1,2 A$9m (47%) vs pcp 1 Further detail on significant items is provided on page 44. 2 Continuing Op
Slide 8: Profit and loss summary
Profit and loss summary H1 22 H1 21 Growth Constant 1 % Currency % A$m Restated Revenue up 59% vs pcp v • ANZ +72%: record job volumes and increased adoption of Continuing Operations depth products Revenue 517.2 326.1 59% 59% • SEEK Asia +42%4: volume growth across key markets, EBITDA 250.6 137.1 83
Slide 9: Cash flow summary
Cash flow summary A$m H1 22 1 Operating cash flow1 to EBITDA conversion of 94% 1 Operating Activities • Cash to EBITDA conversion in line with FY21 Operating cash flows (excl. interest, tax etc) 236.4 Interest and transaction costs (30.5) 2 Tax 2 Tax, including tax paid on Zhaopin transaction (80.1)
Slide 10: Balance sheet leverage
Balance sheet leverage Reconciliation to Reported Net Debt A$m 31-Dec-21 30-Jun-21 Change 1 Borrower Group1 net debt of A$1.2bn (31 December 2021) 1 • Key movements from 30 June 2021: 1 Borrower Group Net Debt (1,174.6) (863.3) (311.3) • contribution to the SEEK Growth Fund (A$128m); Zhaopin Cash 8.
Slide 11: Capital management and dividends
Capital management and dividends Debt facilities Dividend Refinance of syndicated debt facility completed in December H1 22 dividend of 23 cents per share 2021 • Consistent with SEEK’s dividend policy1 • Extension of average debt tenor by 2 years to 4.2 years • Next maturity is 30 November 2024 Tota
Slide 12: Employment Marketplaces
fH om Employment _/ ' “_ f) —_
Slide 13: Employment Marketplaces Highlights
Employment Revenue growth across key markets v Marketplaces • Record ad volumes in Australia and increased depth adoption • Volume recovery across all Asian markets Highlights EBITDA margin expansion whilst reinvestment continued v • Investment in product development and restoration of costs followi
Slide 14: ANZ
ANZ
Slide 15: SEEK ANZ performance
SEEK ANZ performance Record volumes and yield improvement from depth adoption Financials EBITDA A$m Growth Revenue growth enabled investment while delivering margin expansion H1 22 H1 211 % • Restoration of costs (especially marketing) following a pause Revenue 383.1 223.0 72% in prior year due to C
Slide 16: SEEK ANZ – Candidate activity
SEEK ANZ – Candidate activity Candidate engagement steady but applications per ad at record lows Monthly unique visitors (m)1 Candidate engagement remained high during H1 22 v 15 • Average monthly unique visitors up 6% vs pcp 12 Applications per job ad declined, reaching a record low in v November 2
Slide 17: SEEK ANZ - Hirer activity
SEEK ANZ - Hirer activity Job market activity at record levels during H1 22 Job ads posted by month (‘000s)1 Record job ad volumes v 300 • Steady increase in job ad volumes, reaching record levels in November 2021 250 • Unique hirers (average) up 30% vs pcp 200 • Seasonal slowdown in activity levels
Slide 18: SEEK AU competitive metrics
SEEK AU competitive metrics Strengthening of market and brand metrics Share of AU Placements1 (%) SEEK’s share of placements has increased v Last 12 months • AU placements share of 34.3% (vs 29.8% at FY21) 34.3% • COVID-19 impacts that previously caused a spike in social media attribution appear to
Slide 19: SEEK Asia
SEEK Asia
Slide 20: SEEK Asia performance
SEEK Asia performance Volume growth across all markets and acceleration of long-term investment Financials EBITDA Constant Strategic investment in marketing and product development A$m Growth Currency • Significant investment in marketing and user experience SEEK Reported H1 22 H1 21 % % including l
Slide 21: SEEK Asia – Candidate activity
SEEK Asia – Candidate activity Targeted initiatives are driving increased candidate activity Monthly active users (m) Candidate activity is gaining momentum v 20 • Monthly active users up 16% vs pcp (average) and approaching pre COVID-19 levels1 18 • Candidate applications up 8% vs pcp (average) and
Slide 22: SEEK Asia - Hirer activity
SEEK Asia - Hirer activity Job ad volume growth across all markets; strongest in major markets Paid job ads volumes by month Paid job ads up vs pcp across all markets v 40% (% growth vs FY19) • Growth accelerated in Q2 FY22 across major markets with 20% Malaysia and Singapore reaching pre COVID-19 l
Slide 23: Other Businesses
.. Other Businesses ad
Slide 24: Other businesses
Other businesses Financials Insights RMBm Growth • Online revenue grew 9%; Adjacent services revenue (excl. BPO) grew 9%1 Pro Forma (100% basis) H1 22 H1 21 % Online Revenue 1,056.2 969.5 9% • EBITDA decline reflects investment in marketing and product & tech Adj. Services Rev. 794.6 875.1 (9%) • Fo
Slide 25: SEEK Growth Fund
SEEK Growth Fund
Slide 26: Update on the SEEK Growth Fund
Update on the SEEK Growth Fund Portfolio value increased 17% to A$1,738m v • Based on unaudited valuation provided by the Fund’s Manager as at 31 December 2021 (refer next slide) • Recent public market valuation declines had not flowed through to private markets in CY21 Portfolio progress v • ESV po
Slide 27: SEEK Growth Fund Valuation
SEEK Growth Fund Valuation Fund valuation of A$1,738m at 31 December 20211 Key drivers of valuation gain: v v A$m Increase in valuation • Aggregate increase of A$428m, mainly driven by latest funding rounds in HR SaaS (Go1, Hibob, Employment Hero) and modest increases SEEK seeded assets2 1,215 acros
Slide 28: Portfolio Assets
Portfolio Assets Online Contingent Education HR SaaS labour Key structural • Technology and behavioural shifts to • Cloud based solutions are solving • Technology solutions are delivering trends remote working/learning are driving large HR problems more effectively significant efficiencies in large,
Slide 29: OES performance
OES performance Revenue growth despite slowing COVID related demand; EBITDA declined due to reinvestment in growth Financials EBITDA A$m Growth EBITDA declined by 29% due to re-investment Pro Forma (100% basis) H1 22 H1 21 % • Increased investment across marketing and business Revenue 101.0 89.7 13%
Slide 30: Strategy Update
Strategy Update
Slide 31: SEEK's growth drivers
SEEK’s growth drivers Significant growth opportunities in Organic growth the focus, our core businesses (ANZ and Asia) but will consider M&A Underlying Enrichment and M&A to enhance Aligning price economic growth expansion of products capabilities and/or to the value we and offline to online includi
Slide 32: Strategic focus areas
Strategic focus areas Investing in four core capabilities Focus areas Objectives Progress Scalable, • Consolidate to one flexible platform to • Platform Unification project progressing in line with plan reliable and provide scale efficiencies, enable rapid • Focus on consolidation and scaling of inf
Slide 33: FY22 Outlook
FY22 Outlook
Slide 34: FY22 Trading Outlook
FY22 We noted at the 2021 AGM that we would reconsider v guidance after seeing December and January activity Trading • Volumes in ANZ were higher than usual in late December and early January, with less of a seasonal Outlook decline in December and a stronger return in January The combination of str
Slide 35: FY22 Updated Guidance: SEEK (Continuing Operations)
FY22 Updated Guidance: SEEK (Continuing Operations)1 FY22 Guidance (excluding significant items) for SEEK (Continuing Operations)1: v • UPDATE: EBITDA to be in the range of A$490m to A$515m o UPDATE: Based on assumed revenue in the range of A$1.05bn to A$1.10bn • UPDATE: NPAT to be in the range of A
Slide 36: FY22 Updated Guidance: SEEK Growth Fund
FY22 Updated Guidance: SEEK Growth Fund (Discontinued Operations) FY22 Guidance (excluding significant items) for the SEEK Growth Fund: v • UPDATE: SEEK’s share of NPAT to be in the range of A$10m to A$20m profit for FY221 Key assumptions: SEEK Growth Fund (Discontinued Operations) • The point at wh
Slide 37: Well positioned to grow long-term shareholder value
Well positioned Attractive opportunity exists in our core markets to grow v revenue and expand margins over time to grow long- term Leveraged to improving economic conditions and structural v changes in the labour market shareholder value Ability to capture and apply deep and unique data to create v
Slide 38: Appendices
Appendices
Slide 39: Corporate Information
Corporate Information ad
Slide 40: Overview of SEEK's structure
Overview of SEEK’s structure SEEK Growth Fund Assets owned and Assets owned by SEEK Growth Fund managed by SEEK1 and managed by SEEK Investments3,4 SEEK ANZ SEEK Asia Brasil Online Online Education Platform Support OCC (formerly known as Caelum) HR SaaS Assets owned by SEEK and managed by SEEK Inves
Slide 41: SEEK's strategic outlook
SEEK’s Opportunity to double revenue by FY26 v • Aspirational but achievable given current market positions and size of the strategic addressable market • Focused on growth opportunities in our core businesses but may consider outlook M&A to enhance capabilities and/or create options in new revenue
Slide 42: Platform Unification
Platform Project recap v Goal is one unified platform within 3 years Unification • APAC employment marketplaces will be centrally hosted on an optimised ANZ platform • Centralised platform will enable new products and enhancements to be deployed at scale across all markets, and improve reliability a
Slide 43: 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 Strong operating cash flows and accommodates SEEK’s long term investment priorities, incl
Slide 44: Additional financial & operational information
Additional financial & operational information
Slide 45: Reconciliation to statutory results
Reconciliation to statutory results SEEK results versus those presented in SEEK’s statutory accounts (Segment Note) H1 22 Financials (A$m) Significant items 1 H1 22 H1 21 (restated) Statutory Significant Excl. Sign. Items Statutory Significant Excl. Sign. Items Continuing operations Items Items H1 2
Slide 46: H1 22 Segment Results
H1 22 Segment Results Extract from SEEK’s half-year report 2022 (page 19) SEEK Limited H1 22 Results 45
Slide 47: Net Debt Detail
Net Debt Detail Half-year ended 31 December 2021 Short-term Net Cash/ Facility Limit Borrowings Cash2 Investments (Debt) SEEK Ltd A$ bank debt A$612.5m (612.5) SEEK Ltd US$ bank debt US$652.5m (640.9) SEEK Ltd A$ Subordinated Floating Rate Notes A$225.0m (225.0) 1 SEEK Limited Borrower Group (1,478.
Slide 48: SEEK Group Capex
SEEK Group Capex Product & Technology (A$m)1 Key insights 57 55 51 51 3 Product and Technology: • ANZ: improvements to hirer experience, AI & Search, Mobile 43 8 Apps, Candidate Profiles, Verified Credentials • Unification across ANZ and Asia (cA$13m) 28 • Establishing Corporate Data Hub to support
Slide 49: ESG
ESG
Slide 50: Sustainability focus areas
Sustainability focus areas Modern Slavery Fair Hiring • Second Modern Slavery Statement released in • Focus on fair hiring in SEEK Asia through safe and December 2021 responsible job advertising • No instances of modern slavery identified during • Completed detailed controls review of hirer FY21 onb
Slide 51: Sustainability focus areas
Sustainability focus areas Climate Data & Cyber Carbon neutral achievements Protecting data privacy • SEEK ANZ has been certified carbon neutral for FY21 by • Updated guidelines for data handling and retention Climate Active • 100% offsetting of the SEEK ANZ carbon footprint Data trust • Offsets are
Slide 52: 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