Slide 1: Half Year Results Presentation 2013
For personal use only Half Year Results Presentation 2013 6 months to 31 December 2012
Slide 2: Disclaimer
Disclaimer For personal use only 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
Slide 3: Key Messages
3 For personal use only Key Messages
Slide 4: H1 FY13: Key Messages
H1 FY13: Key Messages Solid result despite soft macro conditions, reflecting the strength of SEEK’s business model and continued execution against its strategy For personal use only Group highlights • Record H1 result • H1 FY13 vs pcp growth of Revenue 32%, EBITDA 20% and NPAT (Post NCI) 11% SEEK Au
Slide 5: Look-through Revenue ~A$327m & EBITDA ~A$121m
Execution of strategy has led to H1 FY13 “look-through” Revenue ~A$327m & EBITDA ~A$121m For personal use only “Look-through” 1 Revenue “Look-through” 1,3 EBITDA H1 FY04 – H1 FY13 CAGR of 38.4% H1 FY04 –H1 FY13 CAGR of 41.8% $326.7m $120.5m $302.6m $107.6m $86.3m $23.2m $258.7m $73.1m $21.8m $82.6m
Slide 6: Financial Performance
For personal use only Financial Performance 6
Slide 7: A record half year result achieved in H1 FY13
A record half year result achieved in H1 FY13... Group Headline Performance Key Financial Highlights For personal use only A$m Growth Record half year result despite challenging macro conditions and re-investment focus in international businesses H1 FY13 H1 FY12 $m % Revenue1 275.3 208.1 67.2 32% •
Slide 8: Continuation of SEEK's track record of long-term growth
…which is a continuation of SEEK’s track record of long-term growth For personal use only Operating Revenue Reported EBITDA Reported NPAT (Post NCI) CAGR of 36% CAGR of 40% CAGR of 32% $275.3m $107.5m $208.1m $67.5m $89.8m $60.6m $159.0m $47.9m $62.5m $130.4m $56.6m $55.8m $109.3m $51.5m $35.6m $36.
Slide 9: Consistent performance across the group
Consistent performance across the group Reported Results by Operating Division Results by Associate & JV: Seek Share of NPAT For personal use only A$m Growth A$m Growth H1 FY13 H1 FY12 $m % International H1 FY13 H1 FY12 $m % Domestic Employment Zhaopin 8.6 7.5 1.1 15% Operating Revenue 120.9 122.8 (
Slide 10: Strong cash flows and well capitalised
SEEK continues to generate strong cash flows and is well capitalised Track record of strong cash flows Well capitalised on key credit metrics For personal use only Cash flows from Op. Activities1 Reported Net Leverage Ratio H1 FY05- H1 FY13 CAGR of 29% (Net Debt/EBITDA)2 $95.2m $90.4m H1 FY12 2.2 H1
Slide 11: SEEK Domestic
11 For personal use only SEEK Domestic
Slide 12: SEEK Australia & New Zealand results in line with H1 FY12
SEEK Australia & New Zealand achieved results in line with H1 FY12 despite a soft macro environment For personal use only SEEK Domestic Financials Key Insights A$m Growth Revenue broadly in line with pcp despite weak conditions • Revenue decline of -2% attributable to revenue impact of H1 FY13 H1 FY
Slide 13: SEEK is the clear market leader in AU & NZ
SEEK is the clear market leader in AU & NZ AU Competitive Landscape1 Key Insights For personal use only Ads Visits2 Growth Growth • The competitive environment continues to evolve Jan-13 Jan-13 YoY % YoY % • To date, LinkedIn having negligible impact on SEEK’s key SEEK 117,898 (18%) 17,818,106 22% j
Slide 14: Focus areas for SEEK's placement strategy
Focus areas for SEEK’s placement strategy For personal use only Focus Areas Explanation Be the primary marketplace • Extend SEEK’s market leadership (brand, ads, visits) and develop & for all candidates refine new products to facilitate improved job search and application Be the primary sourcing • C
Slide 15: If we execute on our strategy, the answer will be SEEK
If we execute on our strategy, the answer to the questions below will be “SEEK” For personal use only For All Job Seekers: Where did you find your last job? For All Recruiters & Corporates: Where did you source your last candidate? SEEK’s role is to assist with the matching & communication of job op
Slide 16: Examples of initiatives implemented in H1 FY13
Examples of initiatives implemented in H1 FY13 New Advertiser Centre iPad application For personal use only Explanation Explanation Cloud based platform to better manage job ad & candidate search Cross device applications extending SEEK’s audience • New search & archiving features including: • Succe
Slide 17: Positioned to benefit from improvement in labour market
SEEK is positioned to benefit from any improvement in labour market conditions … For personal use only Solid results achieved despite ad volumes being 33% below the Dec-07 peak Key Insights SEEK New Job Index 120.0 Seasonally Adjusted (Dec-07=100) • SEEK’s H1 FY13 result was achieved despite SEEK Ne
Slide 18: Structural migration from print to online
...and well placed for growth due to continuing structural migration from print to online For personal use only Online is the clear leader in job ad volumes and …..with structural migration of revenue from print to online user preferences .... a continuing trend. Job Ad Job Seeker Share of 90 Online
Slide 19: SEEK International
19 For personal use only SEEK International
Slide 20: Controlling interests in businesses with strong market positions
SEEK has controlling interests1 in businesses with strong market positions, exposure to over 2.2b people and >20% of global GDP For personal use only China Zhaopin4 CJOL2 (78 %) • Zhaopin is #1 in some key regions and a close #2 overall Mexico • Population of ~1,343m Asia OCC • Internet penetration
Slide 21: Transaction Updates
Transaction Updates Zhaopin JobsDB For personal use only SEEK has now increased its ownership stake in Zhaopin from Announced on 21 December 2012 55.5% to 78.2% (undiluted basis) • On 19 February 2013, SEEK increased in ownership from 55.5%1 • SEEK Asia to increase its ownership stake in JobsDB to 7
Slide 22: SEEK International pleasing result despite weak markets
SEEK International achieved a pleasing result despite weak market conditions and a focus on re-investment SEEK International1 – “Look-through”2 “Look-through” Historical Financials1, 2 For personal use only A$m Growth Revenue EBITDA6 CAGR of 81%4 $86.3m CAGR of 102%4 "Look-through" H1 FY13 H1 FY12 $
Slide 23: Zhaopin continues to achieve pleasing results
Zhaopin continues to achieve pleasing results despite subdued conditions Zhaopin Financials Key Insights For personal use only RMBm Growth Pleasing Result in H1 FY13 Pro-Forma H1 FY13 H1 FY12 RMBm % • Online revenue growth of 13% vs pcp Online Revenue (100%) 378.7 336.1 42.6 13% • Well capitalised w
Slide 24: JobsDB investing for long term growth
JobsDB is investing to position the business for long term growth JobsDB Financials Key Insights For personal use only HKDm Growth Solid revenue result in weak market conditions Pro-Forma H1 FY13 H1 FY12 HKDm % • EBITDA reflects weak macro conditions & re-investment focus Revenue (100%) 196.5 201.8
Slide 25: JobStreet achieved solid financial results
JobStreet achieved solid financial results JobStreet Financials Key Insights For personal use only MYRm Growth Pro-Forma H1 FY13 H1 FY12 MYRm % Solid financial results • Revenue growth of 13% & EBITDA growth of 15% vs pcp Revenue (100%) 78.8 69.8 9.0 13% • Paid dividends to SEEK of A$0.7m during H1
Slide 26: Brasil Online achieved a strong result
Brasil Online achieved a strong result Brasil Online Financials Key Insights Strong results achieved despite continued re-investment For personal use only BRLm Growth Pro-Forma H1 FY13 H1 FY12 BRLm % • EBITDA margins grew to 24% driven by operational changes Revenue (100%) 108.9 95.3 13.6 14% implem
Slide 27: OCC transitioning its pricing model
OCC transitioning its pricing model to drive long-term earnings growth OCC Financials Key Insights For personal use only Expected result in context of pricing model transition MXNm Growth • Decline in revenue was anticipated due to change in revenue Pro-Forma H1 FY13 H1 FY12 MXNm % recognition perio
Slide 28: SEEK Education
28 For personal use only SEEK Education
Slide 29: Strong result from SEEK Education in H1 FY13
Strong result from SEEK Education in H1 FY13 SEEK Education1 – “Look-through”2 “Look-through” Historical financials 1, 2 For personal use only A$m Growth Revenue EBITDA "Look-through" H1 FY13 H1 FY12 $m % CAGR of 59% CAGR of 57% Revenue 119.5 106.7 12.8 12% $119.5m $25.4M EBITDA 22.0 10.6 11.4 108%
Slide 30: Strong result from SEEK Learning
Strong result from SEEK Learning in H1 FY13 SEEK Learning Financials1 Key Insights For personal use only A$m Growth Strong H1 FY13 Result H1 FY13 H1 FY12 $m % • Record H1 result Revenue 25.8 21.0 4.8 23% Key Drivers of result include EBITDA 9.0 5.2 3.8 73% • Growth in average yields driven by contin
Slide 31: THINK achieved a strong result
THINK achieved a strong result in H1 FY13 THINK Financials Key Insights For personal use only Strong H1 FY13 Result A$m Growth • Continuation of strong growth in Revenue and EBITDA H1 FY13 H1 FY12 $m % • Operating leverage driving EBITDA margins to 11% Revenue 48.4 40.4 8.0 20% EBITDA 5.2 0.3 4.9 1,
Slide 32: IDP strong result despite subdued conditions
IDP achieved a strong result despite subdued market conditions IDP Financials Key Insights For personal use only A$m Growth Strong financial result H1 FY13 H1 FY12 $m % • Revenue growth of 14% driven primarily by improving conditions Revenue (100%) 106.3 93.6 12.7 14% in Australia • IDP continues to
Slide 33: Solid results from Swinburne Online
Solid results from Swinburne Online with Revenue & EBITDA ahead of expectations Swinburne Online Financials Key Insights For personal use only A$m Growth Pleasing financial result H1 FY13 H1 FY12 $m % • Revenue & EBITDA strongly ahead of business plan Revenue (100%) 7.3 0.0 7.3 n/a expectations • We
Slide 34: Outlook
34 For personal use only Outlook
Slide 35: H2 FY13: Short Term Outlook
H2 FY13: Short Term Outlook The guidance statements below may vary due to macroeconomic shock(s) or volatility in sentiment in domestic and/or global markets For personal use only SEEK • Expect Reported NPAT1 for H2 FY13 to be moderately greater than H1 FY13 • SEEK’s portfolio of leading businesses
Slide 36: Medium to Long term Outlook for SEEK
Medium to Long term Outlook for SEEK Medium Term Outlook Long Term Outlook For personal use only SEEK Domestic Long term growth horizon for SEEK • SEEK’s market leadership makes it the primary beneficiary • SEEK’s portfolio of domestic and international businesses from the ongoing structural migrati
Slide 37: Appendices
For personal use only Appendices Contents Page # • SEEK Group 38 • SEEK Domestic 45 • SEEK International 48 • SEEK Education 57 • Overview of Non-IFRS Information 63 37
Slide 38: SEEK Group
38 For personal use only SEEK Group
Slide 39: Results by Business & Dividends Received
Results by Business & Dividends Received Reported Results by Business A$m Growth A$m Growth H1 FY13 H1 FY12 $m % H1 FY13 H1 FY12 $m % For personal use only Employment International Operating Revenue 120.9 122.8 (1.9) (2%) JobsDB EBITDA 75.3 75.2 0.1 0% Operating Revenue 24.4 25.4 (1.0) (4%) EBITDA (
Slide 40: Details of SEEK's look-through P&L Methodology
Details of SEEK’s “look-through” P&L Methodology “Look-through” P&L Methodology Equity Ownership & FX Rates Applied For personal use only SEEK's Equity Ownership • “Look-through” Revenue & EBITDA presented for each respective 6 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 month period has been calculated based on:
Slide 41: SEEK's detailed look-through P&L Analysis
SEEK’s detailed “look-through1” P&L Analysis "Look-through" Revenue & EBITDA (Non-IFRS Financial Information) A$m H1 FY04 H1 FY04 H1 FY05 H1 FY05 H1 FY06 H1 FY06 H1 FY07 H1 FY07 H1 FY08 H1 FY08 H1 FY09 H1 FY09 H1 FY10 H1 FY10 H1 FY11 H1 FY11 H1 FY12 H1 FY12 H1 FY13 H1 FY13 2 Underlying SEEK Share Un
Slide 42: Reported Net Debt
Reported Net Debt Reported Net Debt Summary Key Insights For personal use only Growth Outlook (Pro-forma Reported Net Debt) Acquisition of remaining 20% in JobsDB • As at 31 December 2012, SEEK had a payable of A$55.0m 1 A$m 31-Dec-12 30-Jun-12 $m % representing SEEK’s share of the remaining 20% sta
Slide 43: Capex Summary
Capex Summary Capex Summary Key Insights For personal use only H1 FY13 Capex of $6.7m is broadly in line with H1 FY12 capex A$m 8.0 6.9 6.7 Key components of capex spend 7.0 • A reduction in PP&E is offset by an increase in Intangibles 6.0 investment: 1.7 • Decline in PP&E spend in H1 FY13 driven by
Slide 44: Reconciliation of EBITDA to Reported NPAT (Post NCI)
Reconciliation of EBITDA to Reported NPAT (Post NCI) For personal use only Analysis Key Insights A$m Growth Net Interest Expense H1 FY13 H1 FY12 A$m % • Net interest expense is broadly in line with H1 FY12 due to: Reported EBITDA 107.5 89.8 17.7 20% • Reduction in interest on loan facilities due to
Slide 45: SEEK Domestic
45 For personal use only SEEK Domestic
Slide 46: SEEK Domestic – Detailed Financials & Key metrics
SEEK Domestic – Detailed Financials & Key metrics P&L SEEK New Job Index For personal use only Seasonally Adjusted (July-10=100) A$m FY11 FY12 115.0 H1 FY11 H2 FY11 H1 FY12 H2 FY12 H1 FY13 110.0 Revenue 106.8 117.2 122.8 125.0 120.9 Total Costs 44.0 46.4 47.6 48.0 45.6 105.0 EBITDA 62.8 70.8 75.2 76
Slide 47: Mobile offerings attracting >30% of visits
SEEK’s Mobile1 offerings are attracting >30% of Visits2 with strong engagement metrics in Australia & NZ For personal use only SEEK Mobile Visits (‘m) Key Insights 'm 12.0 • Mobile1 accounted for >30% of all visits in Jul-Dec 2012 with ~7m visits per month2, exhibiting strong 10.0 engagement metrics
Slide 48: SEEK International
48 For personal use only SEEK International
Slide 49: PPA Amortisation Profile
PPA Amortisation Profile – Zhaopin, JobsDB, Brasil Online & OCC For personal use only Indicative Amortisation profile FY13 - FY18 A#039;m 5.0 4.5 35% 47% 4.0 3.5 3.0 2.5 9% 12% 2.0 1.5 1.0 0.5 0.0 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 FY13 FY13 FY14 FY14 FY15 FY15 FY16 FY16 FY17 FY17 FY18 FY18 JobsDB BOL
Slide 50: Zhaopin – Detailed Financials & Key drivers
Zhaopin – Detailed Financials & Key drivers P&L Total Positions Posted 900,000 RMBm - at 100% of Zhaopin unless indicated For personal use only FY11 FY12 800,000 Revenue H1 FY11 H2 FY11 H1 FY12 H2 FY12 H1 FY13 Online Revenue 234.4 295.3 336.1 356.7 378.7 700,000 Other Revenue 60.8 50.5 74.7 54.1 66.
Slide 51: Zhaopin – Key Competitor Metrics
Zhaopin–Key Competitor Metrics Monthly Page Views - month end (m) Job Ads - month end ('000) For personal use only 900 2,500 772 800 746 705 1,998 2,012 2,034 700 629 2,000 1,887 1,859 596 610 1,731 1,729 600 534 1,589 506 1,500 500 400 1,000 300 644 545 200 431 90 500 76 81 76 100 189 - - Jun-11 De
Slide 52: JobsDB – Detailed Financials & Key Markets
JobsDB – Detailed Financials & Key Markets P&L Key Metrics & Insights For personal use only HKD m - at 100% of Job sDB unless otherwise indicated At Dec FY11 FY12 H1 FY11 H2 FY11 H1 FY12 H2 FY12 H1 FY13 H1 FY13 H1 FY12 Growth % Net Revenue 172.0 212.7 201.8 219.1 196.5 No. of Visits 11,924,735 11,10
Slide 53: Brasil Online – Detailed Financials & Key Drivers
Brasil Online – Detailed Financials & Key Drivers P&L Invoiced & Active Users BRL m - at 100% of Brasil Online unless otherwise indicated 350,000 FY11 FY12 For personal use only 300,000 H1 FY11 H2 FY11 H1 FY12 H2 FY12 H1 FY13 250,000 Net Revenue 83.2 92.9 95.3 105.0 108.9 Total Overheads (incl. COGS
Slide 54: OCC – Detailed Financials & Key drivers
OCC – Detailed Financials & Key drivers P&L Ad volume 120,000 For personal use only MXN m - at 100% of OCC unless otherwise indicated 100,000 FY11 FY12 H1 FY11 H2 FY11 H1 FY12 H2 FY12 H1 FY13 80,000 Net Revenue 82.3 90.7 101.1 98.4 86.0 Total Costs 42.6 51.3 56.2 61.2 70.2 60,000 EBITDA 39.7 39.4 44
Slide 55: OCC – Key Competitor Metrics
OCC–Key Competitor Metrics1 Monthly Page Views2 (‘000) Paid Job Ads ('000) For personal use only 50,000 120,000 As anticipated, business model transition 45,000 42,873 109,089 has changed customer behaviour • Previous plan, advertisers could post 40,000 Recent Website enhancements have an unlimited
Slide 56: Reconciliation of International associate's EBITDA to SEEK share of profits
Reconciliation of SEEK’s International associate’s EBITDA to SEEK share of profits For personal use only Zhaopin JobStreet H1 FY13 H1 FY12 H1 FY13 3 H1 FY12 4 A. Underlying RMB$m at 100% RMB$m RMB$m A. Underlying MYRm at 100% MYRm MYRm EBITDA 119.1 110.0 EBITDA 27.5 23.9 D&A (7.9) (5.4) Tax & other
Slide 57: SEEK Education
57 For personal use only SEEK Education
Slide 58: SEEK Learning – Detailed Financials & Key drivers
SEEK Learning – Detailed Financials & Key drivers P&L Key Drivers A$m FY11 FY12 FY11 FY12 For personal use only Revenue H1 FY11 H2 FY11 H1 FY12 H2 FY12 H1 FY13 H1 FY11 H2 FY11 H1 FY12 H2 FY12 H1 FY13 SEEK Learning AUS 18.5 22.1 19.1 26.5 24.2 Enquiries ('000) 179.0 207.2 187.3 225.9 180.5 SEEK Learn
Slide 59: THINK – Detailed Financials & Key drivers
THINK–Detailed Financials & Key drivers P&L Group H1 FY13 Key Earnings Drivers A$m FY11 FY12 Students Taught Online 6,698 H1 FY11 H2 FY11 H1 FY12 H2 FY12 H1 FY13 38% of rev For personal use only Revenue 17.8m Avg Fees Net Revenue 32.6 34.1 39.7 42.8 47.1 2,656 Other Revenue 0.5 1.8 0.6 3.7 1.3 Fee R
Slide 60: THINK – Key drivers
THINK–Key drivers Students Educated1 by Modality Discussion on Student Trends # For personal use only 14,000 12,094 • Overall student growth of 8% (+933 students), driven by: 12,000 11,161 • Strong growth in online +15% (+860 students) 10,000 • Campus growth relatively flat +1% (+73 students) 6,698
Slide 61: IDP – Detailed Financials & Key drivers
IDP - Detailed Financials & Key drivers P&L IELTS Metrics FY11 FY12 Rev per Test candidate (A$) For personal use only Test candidates (#) A$m H1 FY11 H2 FY11 H1 FY12 H2 FY12 H1 FY13 Revenue IELTS 62.3 67.5 66.0 76.9 72.6 APF 20.3 22.1 18.7 22.8 22.7 Other 7.5 10.1 8.9 11.4 11.0 314,759 254 251 252 2
Slide 62: Reconciliation of Education Associate's EBITDA to SEEK share of profits
Reconciliation of SEEK’s Education Associate’s EBITDA to SEEK share of profits For personal use only IDP Swinburne Online H1 H1 H1 H1 FY13 FY12 FY13 FY12 A. Underlying A$m at 100% A$m A$m A. Underlying A$m at 100% A$m A$m EBITDA 18.4 11.9 EBITDA 0.6 (1.7) D&A (3.3) (2.9) D&A (0.1) (0.0) Net Interest
Slide 63: Overview of SEEK's non-IFRS financial information
Overview of SEEK’s non-IFRS financial information What is non-IFRS financial information? IFRS financial information is financial information that is presented in accordance with all relevant accounting standards Non-IFRS financial information is financial information that is presented other tha
Slide 64: For personal use only
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