Slide 1: Half Year Results Presentation
For personal use only Half Year Results Presentation 6 months ending 31 December 2008
Slide 2: Overview of SEEK
For personal use only 2 Overview of SEEK
Slide 3: Half Year Overview
Half Year Overview For personal use only Consistent strategy and effective execution delivers solid results Financial Performance Solid financial result in light of challenging operating conditions with Revenue up 9% and EBITDA up 10% from pcp SEEK has pro-actively reduced costs in discretionary are
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: SEEK continues to generate strong cash flow with limited capex
SEEK continues to generate strong cash flow with limited capex For personal use only Net operating cash flows increased by 51% from pcp SEEK requires limited Capex in the next few years $5.5M Fitouts $39.0 M Projects SAP IT $25.8 M $1.8M H108 H109 H108 H109 6
Slide 7: Change in Dividend Policy
Change in Dividend Policy For personal use only A change in dividend policy is a prudent measure in a challenging environment Current Policy Current policy is to pay out between 60-75% of NPAT with the recent pay-outs being 70%. Revised Policy • Revised policy is to pay out between 40-70% of NPAT wi
Slide 8: SEEK has no refinancing commitments prior to August 2010
SEEK has no refinancing commitments prior to August 2010 For personal use only Discussion • SEEK has a syndicated loan facility that is equally supported by Australia’s Big 4 Banks • SEEK’s covenant ratios are currently well-exceeded and has no market capitalisation covenants • As a result of SEEK’s
Slide 9: Outlook FY09
Outlook FY09 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 than print
Slide 10: Employment Market Dynamics
Employment Market Dynamics For personal use only 10
Slide 11: 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 12: Job seekers still prefer to look for jobs online and SEEK is the brand people think of
In a challenging environment, job seekers still prefer to look for jobs online and SEEK is the brand people think of … For personal use only Online is the way to search for jobs1 … … and SEEK is the #1 brand Q: If you were looking for a job and could use only one way to find a job, in what way would
Slide 13: 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 Jan 2009 100% 75% 50% SEEK SEEK 25% SEEK 0% Ads UB's TTOS Source: January 09 Nielsen NetRatings, SEEK Count of websites New Zealand 13
Slide 14: Challenging environment to drive rapid migration from print to online in CY09
The current challenging environment is anticipated to drive the rapid migration from print to online in CY09 … … 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 adj
Slide 15: 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 15 Source: Corzen, WARC, WAN, IAB, Clas
Slide 16: Strong upside through the cycle as revenue share is still predominantly 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 Volume Job Seeker Preferences Share of Spend Online 79% 68% 35% Print 21% 32% 65% Note: Job seeker preferences considers online and print metho
Slide 17: SEEK 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 18: Learning - Training & Education
Learning - Training & Education For personal use only 18
Slide 19: SEEK Learning has a diverse presence in education and training
SEEK Learning has a diverse presence in education and training… For personal use only Investee THINK Billy Blue (Design) (to be added to SKL William Blue (Hospitality) Providers as appropriate) ACNT (Natural Therapies) APM (Marketing/PR) DWT JNI (Psychology/Counselling) Domestic Students CATC (Desig
Slide 20: Learning has achieved strong financial performance
…that has achieved strong financial performance. For personal use only Learning Financials (H106 - H109) H106 H107 H108 H109 $65.6M The recent financial performance of listed education businesses in the $44.1M USA & Australia has been strong with earnings & valuation proving resilient in the challen
Slide 21: IDP continues strong growth and is paying its initial dividend
IDP has continued its strong growth trajectory and is paying its initial dividend since SEEK invested … For personal use only Financial Results1 H108 H109 238,500 H108 H109 179,323 14,502 12,320 IELTS Candidates Student Placements Results • Another strong result that supports our strategic rationale
Slide 22: SEEK Learning also performing strongly
…with SEEK Learning also performing strongly… For personal use only Financial Results 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 & market
Slide 23: THINK is building additional capabilities in the domestic education market
…and THINK is building additional capabilities to seize opportunities in the fast growing domestic education market For personal use only Financial Results Results • Acquisition of design colleges, CATC (Brisbane, Melbourne & Gold Coast) & CATC (Sydney) • Accreditation of 18 new higher education qua
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: Focus drivers for SEEK's growth remains consistent
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 Brasil Online Holdi
Slide 29: For personal use only
For personal use only 29