Slide 1: SEEK Limited – FY23 Full Year Results Presentation
15 August 2023 The Manager ASX Market Announcements Office Australian Securities Exchange Dear Manager SEEK Limited – FY23 Full Year Results Presentation In accordance with the Listing Rules, I enclose SEEK’s FY23 Full Year Results Presentation for immediate release to the market. Yours faithfully,
Slide 2: FY23 Results Presentation
SEEK LIMITED FY23 Results Presentation 12 months to 30 June 2023
Slide 3: Agenda
Agenda 1. FY23 highlights 2. FY23 financial performance 3. APAC employment marketplaces 4. Other businesses 5. Platform Unification 6. SEEK Growth Fund 7. Strategy update 8. FY24 outlook 2
Slide 4: FY23 highlights
FY23 highlights Operational Financial1 Capital management SEEK Growth Fund • Platform Unification software • Revenue of A$1,225m, up 10% • Operating cash to EBITDA • 41% increase in portfolio development complete and vs pcp conversion of 94% value since creation of the on track for progressive roll-
Slide 5: Agenda
Agenda 1. FY23 highlights 2. FY23 financial performance 3. APAC employment marketplaces 4. Other businesses 5. Platform Unification 6. SEEK Growth Fund 7. Strategy update 8. FY24 outlook 4 4
Slide 6: FY23 financial results
FY23 financial results Continuing Operations Discontinued Operations A$1,225m A$546m A$255m A$203m A$3m Revenue EBITDA Adjusted NPAT* Reported NPAT Adjusted NPAT1 +10% vs pcp +7% vs pcp -1% vs pcp -16% vs pcp -78% vs pcp *Change in non-IFRS profit measure • SEEK has changed its reported non-IFRS pro
Slide 7: Profit and loss summary
Profit and loss summary FY23 FY22 Growth Constant Revenue up 10% vs pcp v A$m % currency % • ANZ +5%: higher yield (+8%) and lower job ad volumes (-4%) • Asia +17%4: higher yield (+28%) and lower paid job ad volumes (-9%) Continuing Operations Operating expenses up 12% vs pcp (up 4% excluding Platfo
Slide 8: Cashflow summary
Cashflow summary A$m FY23 Operating activities 1 Operating cashflows (excl. interest, tax etc) 512.8 1 Operating cashflow1 to EBITDA conversion of 94% Interest and transaction costs (61.4) • Despite higher cash collections, cash conversion is lower due Tax (126.2) to reduced accruals vs pcp Total op
Slide 9: Balance sheet leverage
Balance sheet leverage Reconciliation to reported net debt Borrower Group1 net debt of A$1.1bn v • Materially unchanged from 30 June 2022 A$m 30 June 2023 30 June 2022 Change Borrower Group net leverage materially in line with pcp v 1 Borrower Group net debt (1,065.1) (1,045.2) (19.9) • Leverage inc
Slide 10: Capital management and dividends
Capital management and dividends Debt facilities Dividend Total facilities of A$1.9b, A$577m undrawn at 30 June 2023 Final dividend of 23 cents per share • Cash and undrawn facilities of A$828m • New US$200m (A$294m) debt facility established in December Total FY23 dividend of 47 cents per share 202
Slide 11: Agenda
Agenda 1. FY23 highlights 2. FY23 financial performance 3. APAC employment marketplaces 4. Other businesses 5. Platform Unification 6. SEEK Growth Fund 7. Strategy update 8. FY24 outlook 10 10
Slide 12: APAC employment marketplaces highlights
APAC employment marketplaces highlights Monthly Monthly paid Candidate Monthly unique hirers1 ad volume1 profiles4 unique visitors1 111k 476k 42m 30m 3 AU: 31% ASIA: 23% Monthly Yield per ad2 applications and Talent Search $181 connections1 49m 1 Monthly average for FY23. Applications refer to appli
Slide 13: SEEK ANZ performance
SEEK ANZ performance Revenue growth driven by yield coupled with ongoing investment Job ad volumes down 4% (vs pcp) v Financials • Volumes slowed following record levels in March 2022 • Job ad volumes 21% above FY19 (pre-COVID) MARGIN REVENUE EBITDA Average ad yield up 8% (vs pcp) v $871m $520m 60%
Slide 14: SEEK ANZ – candidate activity
SEEK ANZ – candidate activity Record visits and higher applications per ad Monthly unique visitors (m)1 18 Record levels of candidate visits during FY23 v 15 • Average monthly unique visitors up 14% vs pcp • Engagement has benefitted from various factors including: 12 • Product and technology initia
Slide 15: SEEK ANZ – hirer activity
SEEK ANZ – hirer activity Demand for labour down from record highs in FY22 Job ads posted by month (‘000s)1 350 Hirer activity lower compared to FY22 v 300 • Job ad volumes and unique hirers2 down 4% vs pcp 250 • Activity progressively moderated in H2 23 vs H1 23 particularly in Hospitality and Reta
Slide 16: SEEK AU competitive metrics
SEEK AU competitive metrics Market leading placement share and brand awareness Share of AU placements1,2 (%) Maintained share of placements v • Placement share of 30.8% (vs 30.7% at H1 23) 30.8% • Lead over nearest competitor of 3.1x Record brand awareness v • Unprompted brand awareness of 90% (vs 9
Slide 17: SEEK Asia performance
SEEK Asia performance Commercial model changes driving higher yield Paid job ad volumes down 9% (vs pcp) v Financials • Volumes lower in H2 23 reflecting full impact of pricing and discount curve changes reducing duplicate ads, and weaker economic conditions in Q4 FY23 REVENUE EBITDA MARGIN Average
Slide 18: SEEK Asia – candidate activity
SEEK Asia – candidate activity Candidate engagement driving record applications Monthly active users (m) Monthly active users in line with pcp v 19 • Monthly active users (average) ahead of pcp in H1 23 but below pcp in H2 23 16 • Decline in Q4 FY23 due to lower marketing spend Record candidate appl
Slide 19: SEEK Asia – hirer activity
SEEK Asia – hirer activity Hirer activity reflective of weaker conditions and changes to commercial model Paid job ads volume (000s) SEEK Asia total Paid job ads volumes down 9% (vs pcp) v 350 • Volumes lower in H2 23 reflecting full impact of pricing and 300 discount curve changes reducing duplicat
Slide 20: SEEK Asia – market insights
SEEK Asia – market insights Developed markets Emerging markets Hong Kong Malaysia Singapore Indonesia Thailand Philippines Labour force1 3.8m 17.3m 3.5m 137.3m 40.2m 47.0m Internet penetration %1 93% 97% 91% 62% 85% 53% % of placement activity2 using online 75% 75% % of placement activity using orga
Slide 21: Agenda
Agenda 1. FY23 highlights 2. FY23 financial performance 3. APAC employment marketplaces 4. Other businesses 5. Platform Unification 6. SEEK Growth Fund 7. Strategy update 8. FY24 outlook 20 20
Slide 22: Employment marketplaces
Employment marketplaces Zhaopin OCC Brasil Online Equity-accounted investment - 23.5% owned by SEEK Subsidiary (Mexico) - 98.2% owned by SEEK Subsidiary (Brazil) - 100% owned by SEEK RMBm Growth MXNm Growth BRLm Growth Pro forma (100% basis) FY23 FY22 % Pro forma (100% basis) FY23 FY22 % Pro forma (
Slide 23: Platform support
Platform support Investing to support the core employment marketplaces Financials Key assets • Online employment marketplace utilising aggregation A$m Growth technology FY23 FY22 % • Operates alongside SEEK’s core platforms to grow ad scale Revenue 40.2 30.7 31% and support new product development E
Slide 24: Agenda
Agenda 1. FY23 highlights 2. FY23 financial performance 3. APAC employment marketplaces 4. Other businesses 5. Platform Unification 6. SEEK Growth Fund 7. Strategy update 8. FY24 outlook 23 23
Slide 25: Platform Unification
Platform Unification Unified platform provides the foundation for future growth and economies of scale CORE BUSINESS FOOTPRINT Rationale APAC employment marketplaces centrally hosted Hong Kong on an improved, proven ANZ platform Uniform products across all markets, with some local configuration Thai
Slide 26: Platform Unification
Platform Unification ERP delivered; Online and CRM on track Objectives FY23 progress FY24 actions • Implemented budget-based contract structure in Asia APAC employment • Staff and customer change marketplaces • Online marketplace successfully extended to support APAC management activities Online cen
Slide 27: Agenda
Agenda 1. FY23 highlights 2. FY23 financial performance 3. APAC employment marketplaces 4. Other businesses 5. Platform Unification 6. SEEK Growth Fund 7. Strategy update 8. FY24 outlook 26 26
Slide 28: Update on the SEEK Growth Fund
Update on the SEEK Growth Fund • Adjusted portfolio value increased 41%1 since creation of the Fund to A$2,318m at 30 June 2023 • Value of A$2,318m is after maintaining a downward adjustment of 18% to reflect a valuation lag as many private companies Portfolio have not raised capital since the decli
Slide 29: SEEK Growth Fund valuation
SEEK Growth Fund valuation Fund valuation at 30 June 2023 • Gains: Predominately driven by external funding rounds in HR A$m Key portfolio SaaS (Go1, Hibob, Employment Hero) and growth in SEEK seeded assets 1 1,215 education businesses (Utel, Alura) movements 2 (vs Invested Add: additional capital c
Slide 30: Agenda
Agenda 1. FY23 highlights 2. FY23 financial performance 3. APAC employment marketplaces 4. Other businesses 5. Platform Unification 6. SEEK Growth Fund 7. Strategy update 8. FY24 outlook 29 29
Slide 31: SEEK’s strategic flywheel
SEEK’s strategic flywheel SEEK’S STRATEGIC FLYWHEEL MARKETPLACE GOALS Platform of first choice for organisations Platform of first choice for people Best matching Fair and effective monetisation 30
Slide 32: Strategic progress in FY23
Strategic progress in FY23 MARKETPLACE GOALS FY23 PROGRESS • Scaled Company Profiles product across ANZ (over 3,000 by June 2023) Platform of first • Added Job Listing feature to Company Profiles, allowing companies to list all their roles on SEEK with limited choice for performance, to maximise ad
Slide 33: A$2bn FY28 opportunity
Our strategy provides a A$2bn revenue opportunity by FY28 ANZ volume | neutral to low single digit growth A$2bn FY28 ANZ yield | high single digit growth opportunity Asia revenue | double digit growth Note: Growth rates reflect FY23 – FY28 CAGR estimates. SEEK’s aspirational revenue opportunity is n
Slide 34: Agenda
Agenda 1. FY23 highlights 2. FY23 financial performance 3. APAC employment marketplaces 4. Other businesses 5. Platform Unification 6. SEEK Growth Fund 7. Strategy update 8. FY24 outlook 33
Slide 35: FY24 trading outlook
FY24 trading outlook • Macroeconomic conditions at the start of FY24 are • Platform Unification will be completed in FY24 with uncertain, with economists forecasting lower levels of incremental operating costs already down 44% from the economic activity in most of the markets in which we monthly pea
Slide 36: FY24 guidance
FY24 guidance Key assumptions: FY24 guidance (excluding the Fund • Economic volatility makes revenue forecasting difficult. Our core revenue assumptions, which may be and significant items)1 subject to significant fluctuations, are: • ANZ: job ad volumes to decline vs pcp, partially offset by high s
Slide 37: Well positioned to grow shareholder value
Well positioned to grow shareholder value We have the market positions and capability to execute our growth plans With focus on growing placements and optimising yield, we have a A$2bn revenue opportunity by FY28 Investment discipline and cost management can deliver sustainable margins above 50% by
Slide 38: Appendices
Appendices 37
Slide 39: Additional financial and operational information
Additional financial and operational information 38
Slide 40: Reconciliation to statutory results
Reconciliation to statutory results SEEK results versus those presented in SEEK’s statutory accounts (Segment Note) FY23 FY22 Continuing Operations SEEK SEEK 1 Significant 1 Significant Adjusted Growth Reported Adjusted Growth Reported items items SEEK Growth Fund A$m Fund2 Fund2 • FY23 share of equ
Slide 41: Reconciliation of Reported NPAT to Adjusted NPAT
Reconciliation of Reported NPAT to Adjusted NPAT Continuing Operations FY23 FY22 Growth FY23 FY23 actual vs 1 % Guidance guidance % A$m 1• SEEK’s share of the equity accounted results Reported NPAT 202.7 240.8 (16%) of the Fund since deconsolidation on 19 Adjusted to exclude: December 2022. Prior to
Slide 42: Overview of SEEK’s structure
Overview of SEEK’s structure Employment marketplaces1 SEEK Growth Fund3 SEEK ANZ SEEK Asia2 Brasil Online OCC Platform Support Online Education (formerly known as Caelum) HR SaaS Portfolio investments3 Contingent Labour Zhaopin4 ESVs (plus other ESVs) For statutory reporting purposes SEEK’s results
Slide 43: FY23 segment results
FY23 segment results Extract from SEEK’s Appendix 4E and Statutory Accounts for the 12 months ended 30 June 2023 Full year report 2023 (page 52) 42
Slide 44: Reconciliation between Continuing and Discontinued operations
Reconciliation between Continuing and Discontinued operations Employment Reported SEEK Growth Fund Adjusted Portfolio investments SEEK Growth Fund less marketplaces1 NPAT and significant items NPAT FY23 A$260.5m A$(0.7)m A$(57.1)m A$202.7m A$(52.3)m A$255.0m Continuing - Equity accounted result of -
Slide 45: Platform Unification
Platform Unification Project timeline ahead of guidance and remains on budget FY22 FY23 FY24F Total Incremental investment A$30m A$105m A$45m A$180m Capex cost A$8m A$33m A$17m A$58m Opex cost A$22m A$72m A$28m A$122m Capex/Opex split 27% / 73% 31% / 69% 38% / 62% 32% / 68% Other information • Total
Slide 46: APAC technology service arrangement
APAC technology service arrangement FY22 FY23 FY24 estimate 1 ANZ/ ANZ Asia ANZ Asia Asia A$m Corporate Technology cost transfer between ANZ and Asia (3.1) 3.1 (14.2) 14.2 Simliar levels to FY222 Platform license fee New in FY243 Usage fee for use of ERP New in FY244 Net technology service (expense)
Slide 47: Net debt detail
Net debt detail Year ended 30 June 2023 A$m Short-term Net cash/ Facility limit Borrowings Cash investments (debt) SEEK Ltd A$ bank debt A$612.5m (415.0) SEEK Ltd US$ bank debt US$852.5m (900.4) 1 SEEK Limited Borrower Group (1,315.4) 250.1 0.2 (1,065.1) Zhaopin Limited 0.0 1.3 0.0 1.3 SEEK A$1,891.
Slide 48: SEEK Group Capex
SEEK Group Capex Product and technology (A$m)1 180 Key insights 1 130 Product and technology 110 107 6 • ANZ and SEEK Asia: includes incremental Platform Unification (FY23: A$33m), other platform development and product 25 23 179 enhancements across job search, recommendations, Talent 124 Search and
Slide 49: Placement share trends
Placement share trends Share of AU placements1,2(%) Share of SEEK Asia placements3(%) 60.0% 50.0% 45.0% 50.0% 40.0% 40.0% 35.0% 33.4% 34.3% 30.9% 29.8% 30.7% 30.8% 30.0% 29.7% 30.0% 24.1% 23.3% 23.2% 22.7% 25.0% 21.6% 22.7% 22.7% 20.0% 20.0% 15.0% 10.0% 10.0% 5.0% 0.0% 0.0% FY20 H1 21 FY21 H1 22 FY2
Slide 50: 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, including Strong operating cashflo
Slide 51: SEEK Growth Fund additional information
SEEK Growth Fund additional information 50
Slide 52: SEEK Growth Fund – theme overview
SEEK Growth Fund – theme overview Investments in high-growth businesses across three priority themes Education HR SaaS Contingent labour Technology is improving the experience Cloud-based subscription solutions Technology solutions are delivering Key structural for students and institutions and this
Slide 53: SEEK Growth Fund - portfolio investments
SEEK Growth Fund - portfolio investments Key investments are leveraged to long-term growth drivers Education HR SaaS HR SaaS HR SaaS Market Australia, US, NZ, UK, India Australia, Asia, UK, US, Europe Australia, NZ, UK, SE Asia Israel, UK, Europe, US, Australia Last major US$100m in June 2022 A$181m
Slide 54: SEEK Growth Fund - reconciliation of equity accounted investment
SEEK Growth Fund - reconciliation of equity accounted investment A$m Opening balance 1 July 2022 0 Acquisition of interest 2,017.5 1 Share of portfolio valuation increase 46.6 2 Share of accrued carry liability (85.7) 3 4 Dividends paid (13.0) Carrying value at 30 June 2023 1,965.4 1 Represents fair
Slide 55: Reconciliation of Gain on disposal of Discontinued Operations
Reconciliation of Gain on disposal of Discontinued Operations SEEK Growth Fund was deconsolidated in December 2022 A$m Fair value of retained equity accounted investment 1,957.5 1 Carrying amount of net assets derecognised, net of non-controlling interests (1,106.1) Liability derecognised for 15% no
Slide 56: ESG
ESG 55
Slide 57: ESG highlights
ESG highlights Priorities that deliver social and environmental value for our communities and our people Fair hiring Modern slavery Data and cyber • Automatically scanned 7.8m • Completed due diligence • Undertook an external audit of direct job ads on SEEK assessment of employment cybersecurity gov
Slide 58: ESG highlights
ESG highlights Priorities that deliver social and environmental value for our communities and our people Climate People Social impact • Achieved carbon neutral certification • 50:50 representation of women and • Published SEEK Employment Reports3 for business operations men on the Executive Leadersh
Slide 59: 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. Forward-l