Seek Limited · ASX:SEK
Seek — Investor Day (April 2023)
69 slides from Seek's investor day presentation, Apr 4, 2023
Slide 1: SEEK Limited – Investor Day Presentation - 4 April 2023
4 April 2023 The Manager ASX Market Announcements Office Australian Securities Exchange Dear Manager SEEK Limited – Investor Day Presentation - 4 April 2023 In accordance with the Listing Rules, I enclose SEEK’s Investor Day Presentation - 4 April 2023 for immediate release to the market. Yours fait
Slide 2: Strategy update
SEEK LIMITED Strategy update 4 April 2023 Strategy update
Slide 3: SEEK leadership team
SEEK leadership team Ian Narev Kendra Banks Managing Director & Managing Director Australia Chief Executive Officer & New Zealand Kate Koch Emmett Sheppard Chief Financial Officer Managing Director Americas & Portfolio Investments Kathleen McCudden Lisa Tobin Chief People & Culture Officer Managing
Slide 4: Agenda
Agenda Welcome to SEEK’s strategy update 1. The market opportunity Ian Narev 2. Our starting point Ian Narev 3. Growing placements Simon Lusted 4. Growing yield Simon Lusted Kendra Banks 5. The $2bn revenue opportunity by FY28 Peter Bithos 6. Sustaining a margin above 50% Kate Koch 7. Other business
Slide 5: Agenda
Agenda 1. The market opportunity 2. Our starting point 3. Growing placements 4. Growing yield 5. The $2bn revenue opportunity by FY28 6. Sustaining a margin above 50% 7. Other businesses and opportunities 8. The Growth Fund 9. ESG activities 10. Capital management Strategy update 4 4
Slide 6: Matching people with jobs is a sophisticated, high value activity
Matching people with jobs is a sophisticated, high value activity Employment marketplace Both sides of the market: Talent Have sophisticated preferences Employers Engage actively Have a need for trust Strategy update 5
Slide 7: Our APAC total addressable recruitment value pool is ~$35bn
Our APAC total addressable recruitment value pool is ~$35bn ESTIMATED RECRUITMENT EXPENSE VALUE POOL IN EXISTING SEEK FOOTPRINT1 (AUD, bn, 2023) 34.6 25.0 742 bn Total annual wages of new 7.0 hires 1.1 1.5 Total employer Internal employer Agency Recruitment Marketplaces recruitment recruitment recru
Slide 8: We anticipate our value pool will grow by ~5% per annum to FY28
We anticipate our value pool will grow by ~5% per annum to FY28 TOTAL EMPLOYER RECRUITMENT EXPENSE LABOUR MARKET FORECAST (5-year pop. growth CAGR, 23-28) VALUE POOL FORECAST (AUD, bn) ASIA – ASIA – ANZ DEVELOPED1 EMERGING2 +5% 44.6 CAGR 1.2 – 1.4% 0.0 – 1.1% 0.1 – 1.5% 34.6 WAGE GROWTH FORECAST (5-
Slide 9: Our value pool is unevenly distributed by role due to differences in talent supply and selection risk
Our value pool is unevenly distributed by role due to differences in talent supply and selection risk ESTIMATED EMPLOYER RECRUITMENT EXPENSE BY ROLE PLACED Spend expressed as a % of annual labour costs of new hires, APAC 20% 10% 5% ~4.5% 1% Est. Weighted average cost Low-skilled Semi-skilled Skilled
Slide 10: Employment markets are sensitive to the economic cycle in the short term, but less so in emerging markets
Employment markets are sensitive to the economic cycle in the short term, but less so in emerging markets SEEK JOB ADS AS % OF LABOUR FORCE 2009-2023 (Monthly) 2.0 Australia 1.5 Philippines Jan 23 1.0 0.5 0.0 3 4 5 6 7 8 9 10 Unemployment rate, % As unemployment increases, the number of job ads typi
Slide 11: Employment marketplaces will increase their share of the value pool over the next five years
Employment marketplaces will increase their share of the value pool over the next five years Illustrative Increasing marketplace participation1 • ~60% roles addressed in developed FY28 EMPLOYER RECRUITMENT EXPENSE 44.6bn 1 markets by marketplaces Spend VALUE POOL FORECAST, AUD • ~30% roles addressed
Slide 12: Agenda
Agenda 1. The market opportunity 2. Our starting point 3. Growing placements 4. Growing yield 5. The $2bn revenue opportunity by FY28 6. Sustaining a margin above 50% 7. Other businesses and opportunities 8. The Growth Fund 9. ESG activities 10. Capital management Investor Strategy Day 11 11
Slide 13: The separation of the Growth Fund from SEEK has increased the focus on the core
The separation of the Growth Fund from SEEK has increased the focus on the core ASSETS OWNED AND MANAGED BY SEEK ASSETS OWNED BY SEEK GROWTH FUND AND MANAGED BY THE SEEK GROWTH FUND’S MANAGER SEEK ANZ SEEK Asia Brasil Online Platform Support Online Education OCC (formerly known as Caelum) HR SaaS AS
Slide 14: We facilitate more placements than any other player in our region
We facilitate more placements than any other player in our region SEEK IS RANKED #1 IN PLACEMENT SHARE IN ALL APAC EMPLOYMENT MARKETPLACES IN WHICH IT PARTICIPATES Hong Kong Thailand Philippines Malaysia Singapore Australia Indonesia New Zealand Strategy update 13 Source: Independent research conduc
Slide 15: We have strong starting positions across our strategic flywheel
We have strong starting positions across our strategic flywheel 30M Monthly Monthly paid ad volume1 525K unique visitors1 3 AU: 31% ASIA: 23% Monthly Yield per ad2 $168 applications and Talent Search connections1 46M 1. Monthly average for CY22. Applications refer to application starts. 2. CY22 3. A
Slide 16: We have brand strength and marketing capability
Brand We have brand strength and marketing capability RETURNING TO PRE-PANDEMIC INVESTING IN ASIAN BRAND INVESTMENT LEVELS IN ANZ REFRESH AND AWARENESS EVOLVING BRAND ARCHITECTURE 90% 51% unaided unaided awareness awareness Source: AU independent research conducted on behalf of SEEK (Jan - Dec 2022)
Slide 17: Our local sales and service capability underpins our success
Sales and Service Our local sales and service capability underpins our success SEEK LOCAL SALES AND SERVICE HEADCOUNT Hong Kong Dedicated account managers, strong client Thailand ~95 ~80 relationships Philippines ~120 Local insights on salary trends and talent Malaysia availability ~140 Employer pro
Slide 18: Data is at the core of our marketplace
Data Capability Data is at the core of our marketplace SELECTED APAC MARKETPLACE DATA ASSETS Example: Shortlist Prediction >40M >2bn >500M >350M Talent Clicks on job On platform Structured role profiles1 ads p.a.2 applications p.a.2 requirements1 >20M >16M >85K >850K Talent profile Candidates Taxono
Slide 19: Product innovation is continuous
Product platform Product innovation is continuous Job search and Talent Mobile apps and Company Talent Search recommendations recommendations notifications profiles integrated into ATS 4x increase Improving Notification Helping in usage Apply rate reach of job engagement employers materially up when
Slide 20: Sustained investment in data and product has driven talent visits
Product platform Sustained investment in data and product has driven talent visits OUR FIRST AI SEARCH RELEASE IN LATE 2018 ANZ TALENT VISITS Index to 2016 First AI Release +6% 133 0% CAGR 123 CAGR 114 114 109 100 96 100 20%+ Increase in applications1 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 Feb-22
Slide 21: And our investment in selective aggregation capability has strengthened our talent proposition
Product platform And our investment in selective aggregation capability has strengthened our talent proposition QUALITY AD AGGREGATION LAUNCHED ACROSS APAC • Enabled some non- 10-30% monetised ads in all of ads typically aggregated per market1 markets • Launched selective aggregation of ads to 10-20
Slide 22: We have strengthened our monetisation capability
Monetisation We have strengthened our monetisation capability FOCUS INITIATIVE IMPACT • Configurable performance tiers • Increased employer choice according to Performance need ad ladder • Moved from ad packs to dollar • Enabled ad performance upgrade Budget buying budgets • Improved employer commit
Slide 23: These capabilities have led to ongoing revenue and profit growth
These capabilities have led to ongoing revenue and profit growth REVENUE BY SEGMENT AND GROUP EBITDA, FY18-FY22 ($m)1 CAGR 1,117 13% 88 Other2 -7% 202 Asia 7% 730 760 687 651 73 119 113 101 146 152 177 163 19% 827 ANZ 440 541 416 387 FY18 FY19 FY20 FY21 FY22 EBITDA 315 335 255 332 509 13% $m Pandemi
Slide 24: SEEK is well positioned within a highly competitive market
SEEK is well positioned within a highly competitive market Illustrative • Intensely White collar competitive High-end LinkedIn • Major global players CTgoodjobs with extensive reach and capabilities JOB BKK Glints • Government sites - JobThai Google all free Mid-level KitaLulus for Jobs Government •
Slide 25: Unification is completing a three-way merger and provides the foundation for future growth
Unification is completing a three-way merger and provides the foundation for future growth and economies of scale CORE BUSINESS FOOTPRINT Hong Kong One unified employment marketplace across APAC (To be completed by end of FY24) Thailand Philippines Talent and employer sides of the market unified Mal
Slide 26: Agenda
Agenda 1. The market opportunity 2. Our starting point 3. Growing placements 4. Growing yield 5. The $2bn revenue opportunity by FY28 6. Sustaining a margin above 50% 7. Other businesses and opportunities 8. The Growth Fund 9. ESG activities 10. Capital management Investor Strategy Day 25 25
Slide 27: We aspire to be the first choice for both talent and employers
We aspire to be the first choice for both talent and employers SEEK’S STRATEGIC FLYWHEEL GROW PLACEMENTS BY Increasing employer penetration through removing friction and providing insights Participating in low and semi-skilled roles across the region Growing talent reach by providing better support
Slide 28: We will make it easy for employers to use SEEK
We will make it easy for employers to use SEEK Understanding Post - Manage market AI ad writing candidates • Easier onboarding and more self-serve experience • AI-assisted experiences • Improved analytics and labour market understanding • Further integration into employers’ daily flows and recruitme
Slide 29: We will address the large SME opportunity in Asia by scaling our semi-skilled marketplace
We will address the large SME opportunity in Asia by scaling our semi-skilled marketplace Match based Fast, message Profile only apply on location based interactions • Large penetration opportunity. Asia SME share 8% in developed1 and 1% in emerging2 markets • Most SMEs use informal social and word-
Slide 30: We will help talent understand ongoing demand for current role and skills
We will help talent understand ongoing demand for current role and skills MONITORING – LABOUR MARKET Career feed • Prioritising our mobile app experience • Attracting and engaging through more relevant content — Combining jobs content, market insights and career advice — Delivering real time persona
Slide 31: And we will support talent in exploring new careers and acquiring new skills
And we will support talent in exploring new careers and acquiring new skills EXPLORE – CAREER ADVICE GROW – seekMAX Career pathway Bite-sized learning Skills exploration Learner profile discovery content SEEK MAX 78% 40% of talent aims to of talent in Asia discover if a career wishes to access direc
Slide 32: Our aspiration is to lead in matching effectiveness and efficiency
Our aspiration is to lead in matching effectiveness and efficiency SEEK’S STRATEGIC FLYWHEEL GROW PLACEMENTS BY Increasing the number and quality of matches in our marketplace Growing the number and quality of employment connections Increasing the volume and freshness of high trust data Strategy upd
Slide 33: We will deliver an increasingly personalised discovery experience
We will deliver an increasingly personalised discovery experience Conversational Explaining fit search1 Using our data and AI capability to • Move beyond the role title to skills • Respond to local labour market norms • Enable more expressive search1 • Deepen personalisation with more data and bette
Slide 34: We will improve how talent and employers connect….
We will improve how talent and employers connect…. Personal New forms of Ongoing connection connection connection • Reduce application friction with on- site apply1 • Facilitate more personal connections • Maintain ongoing talent relationship • Help talent know where they stand with better feedback
Slide 35: …and enable high trust ways for them to stand out
…and enable high trust ways for them to stand out Verified talent Verified recruiter Company profile reputation reputation Creating a high trust marketplace by • Growing talent identity and credentials • Increasing coverage of employer EVP and workplace reputation • Growing recruiter and hiring mana
Slide 36: We will accelerate the adoption of verified credentials through Certsy
We will accelerate the adoption of verified credentials through Certsy CERTSY PROPOSITION CERTSY VERIFICATIONS 2021/22 2022/23 2023/24 Roadmap • Verify work credentials • Share securely Right to Drivers Higher Ed COVID vax Vehicle High risk RSA NZ higher Work licence access work education • Create o
Slide 37: Agenda
Agenda 1. The market opportunity 2. Our starting point 3. Growing placements 4. Growing yield 5. The $2bn revenue opportunity by FY28 6. Sustaining a margin above 50% 7. Other businesses and opportunities 8. The Growth Fund 9. ESG activities 10. Capital management Investor Strategy Day 36 36
Slide 38: Our aspiration is to price to the value of the placement
Our aspiration is to price to the value of the placement SEEK’S STRATEGIC FLYWHEEL GROW REVENUE BY Grow revenue by Optimising our existing ANZ capability and rolling out to Asia Monetising the SME penetration opportunity in Asia Improving value communication, transparency and choice Creating new emp
Slide 39: We are making good progress evolving our monetisation approach to price closer to value
We are making good progress evolving our monetisation approach to price closer to value PRICING EVOLUTION First iteration in market – focus on optimisation Future products or features We are here 7 Outcome pricing 6 Transparency and choice 5 Freemium in Asia 4 Variable pricing 3 Discount optimisatio
Slide 40: We continue to progress and optimise our core monetisation capabilities
We continue to progress and optimise our core monetisation capabilities FOCUS ACTIONS • Create and optimise new 1 Performance ad ladder • performance tiers Deliver new value in ads (i.e. talent recommendations) • Significant opportunities remain to • Expand to non job ad improve capability 2 Budget
Slide 41: New ad types are being developed to better meet employer needs
New ad types are being developed to better meet employer needs PERFORMANCE PRICING ADS OUTCOME PRICING ADS Freemium Cost per application • Low exposure • Reduced risk proposition 5 7 proposition • Labour long • Balanced and labour segments short segments • Ad scale and • Ad scale and yield employer
Slide 42: Freemium is a key enabler to monetise incremental SME ad scale
Freemium is a key enabler to monetise incremental SME ad scale in low and semi-skilled roles Core Express proposition proposition 5 Freemium in Asia • Allows us to compete with informal social channels and freemium job propositions • Offers upgrade to higher value ad types • Core proposition: select
Slide 43: Employers will be able to make informed ad choices using performance predictions and upgrades
Employers will be able to make informed ad choices using performance predictions and upgrades Salary market Expected Ad upgrade context applications 6 Transparency and choice • Communicate market conditions and context to help employers understand labour market and value • Provide performance predic
Slide 44: Outcome pricing can deliver increased satisfaction and yield
Outcome pricing can deliver increased satisfaction and yield EMPLOYER SATISFACTION WHEN ROLE PLACED 7 Outcome pricing Highly satisfied • Employer price elasticity is low when a placement is made • We have significantly improved our ability to predict the quality of an application and the likelihood
Slide 45: Our full range of products will drive a significantly wider distribution of prices
Our full range of products will drive a significantly wider distribution of prices in the future Performance Products Outcome Products AD TYPE FROM1 TO Illustrative, not to scale Freemium Classic Premium Pay per experienced applicant Guaranteed Hire Pay per hire (Refund if no placement) Lower Price
Slide 46: In our variable pricing model the price is set in line with our expectation of value
In our variable pricing model the price is set in line with our expectation of the unique value we deliver Technical primer – variable pricing FOR EACH ROLE AND LOCATION COMBINATION (APPROXIMATELY 20,000 IN AUSTRALIA) SEEK’s placement likelihood Value of the placement Factors with one ad Inputs Sala
Slide 47: Agenda
Agenda 1. The market opportunity 2. Our starting point 3. Growing placements 4. Growing yield 5. The $2bn revenue opportunity by FY28 6. Sustaining a margin above 50% 7. Other businesses and opportunities 8. The Growth Fund 9. ESG activities 10. Capital management Investor Strategy Day 46 46
Slide 48: Our ANZ business has generated substantial value
Our ANZ business has generated substantial value 13M Monthly Monthly paid ad volume1 284K unique visitors1 3 31% Monthly Yield per ad2 $251 applications and Talent Search connections1 10M Strategy update 47 1. ANZ monthly average for CY22. Applications refer to application starts. 2. ANZ, CY22 3. AU
Slide 49: There remain many opportunities for growth in ANZ
There remain many opportunities for growth in ANZ MARKETPLACE GOALS STRATEGIC FOCUS 1. New ad constructs to capture growth Increase share of 2. SME loyalty and retention, through service support and commercial offerings hiring opportunities 3. Industry-specific (e.g. healthcare, tech) go-to-market
Slide 50: We expect SEEK ANZ's growth to be underpinned by yield improvements
We expect SEEK ANZ’s growth to be underpinned by yield improvements ANZ GROWTH ASPIRATIONS BY DRIVER, FY23 TO FY28 Neutral to low single digit High single digit Volume growth in ad volumes X Yield growth in yield • Long term growth in line • Solid growth expected Jobs Wages • Input into pricing mode
Slide 51: In Asia we have delivered strong results
In Asia we have delivered strong results 17M Monthly Monthly paid ad volume1 241K unique visitors1 3 23% Monthly Yield per ad2 $70 applications and Talent Search connections1 36M Strategy update 50 1. Monthly average for CY22. Applications refer to application starts. 2. CY22. 3. SEEK Asia placement
Slide 52: SEEK Asia aims to deliver high growth via market penetration and a stronger core
SEEK Asia aims to deliver high growth via market penetration and a stronger, improved core – both enabled by Unification MARKETPLACE GOALS STRATEGIC FOCUS 1. Self-service experience (post-Unification) Increase share of 2. Freemium and focused sales initiatives to drive employer scale hiring opportun
Slide 53: We expect strong revenue growth in Asia
We expect strong revenue growth in Asia ASIA GROWTH EXPECTATIONS BY DRIVER, FY23 TO FY28 Double digit Revenue growth in revenue, above ANZ Volume X Yield • Long term growth in line • Solid growth expected Jobs Wages • Input into pricing model with population growth • Underpenetrated niches Core pric
Slide 54: This all adds to a $2bn revenue opportunity by FY28
This all adds to a $2bn revenue opportunity by FY28 ANZ volume | neutral to low single digit growth $2bn FY28 ANZ yield | high single digit growth opportunity Asia revenue | double digit growth Source: Growth rates reflect FY23 – FY28 CAGR estimates. SEEK’s aspirational revenue opportunity is not gu
Slide 55: Agenda
Agenda 1. The market opportunity 2. Our starting point 3. Growing placements 4. Growing yield 5. The $2bn revenue opportunity by FY28 6. Sustaining a margin above 50% 7. Other businesses and opportunities 8. The Growth Fund 9. ESG activities 10. Capital management Investor Strategy Day 54 54
Slide 56: We have built capacity to deliver margins above 50% with a focus on product innovation
We have built capacity to deliver margins above 50% with a focus on product innovation SEEK OPERATING COSTS AND CAPEX (FY22) Incremental • Product innovation costs will be prioritised and Unification focus on long term value creation Product Corporate costs innovation 4% • Core technology will grow
Slide 57: Agenda
Agenda 1. The market opportunity 2. Our starting point 3. Growing placements 4. Growing yield 5. The $2bn revenue opportunity by FY28 6. Sustaining a margin above 50% 7. Other businesses and opportunities 8. The Growth Fund 9. ESG activities 10. Capital management Investor Strategy Day 56 56
Slide 58: Performance in our Latin American businesses is strengthening
Performance in our Latin American businesses is strengthening OCC Brasil Online Subsidiary - 98.2% owned by SEEK Subsidiary - 100% owned by SEEK • Mexico is the second largest economy in Latin • Brasil is the largest economy in Latin America with America with workforce >55m and a growing workforce >
Slide 59: We maintain options in attractive North-East Asian markets
We maintain options in attractive North-East Asian markets Zhaopin JobKorea Equity-accounted investment - 23.5% owned by SEEK Investment in equity instrument - 10% owned by SEEK • Career platform in China, connecting users with relevant • Leading online employment marketplace in Korea, top 10 job op
Slide 60: While the focus remains on core business growth, we continue to explore adjacent opportunities
While the focus remains on core business growth, we continue to explore adjacent opportunities Type of adjacency Deepen core Extend up / down Expand into adjacent Grow presence in new offer value chain marketplaces geographies Example addressable ~$400m ~$200m >$1bn >$1bn Market for digital Market f
Slide 61: Agenda
Agenda 1. The market opportunity 2. Our starting point 3. Growing placements 4. Growing yield 5. The $2bn revenue opportunity by FY28 6. Sustaining a margin above 50% 7. Other businesses and opportunities 8. The Growth Fund 9. ESG activities 10. Capital management Investor Strategy Day 60 60
Slide 62: SEEK Growth Fund comprises a quality portfolio with attractive prospects
SEEK Growth Fund comprises a quality portfolio with attractive prospects Assets owned by SEEK Growth Fund and Strong revenue Aggregate look-through revenue growth of managed by the Fund’s Manager1 growth 70% vs pcp2 Online Education Growth potential Significant potential in both market penetration a
Slide 63: The SEEK Growth Fund provides exposure for capital growth
The SEEK Growth Fund provides exposure for capital growth SEEK GROWTH FUND VALUATION AT 31 DECEMBER 20221 • Split has created better focus on both core business and fund assets $1.6bn Invested capital • Fund assets have withstood market conditions well • Final new capital raise of around $100m likel
Slide 64: Agenda
Agenda 1. The market opportunity 2. Our starting point 3. Growing placements 4. Growing yield 5. The $2bn revenue opportunity by FY28 6. Sustaining a margin above 50% 7. Other businesses and opportunities 8. The Growth Fund 9. ESG activities 10. Capital management Investor Strategy Day 63 63
Slide 65: Our ESG practices focus on priorities that deliver social and environmental value
Our ESG practices focus on priorities that deliver social and environmental value to SEEK and its stakeholders HUMAN RIGHTS - FAIR HIRING MODERN SLAVERY DATA TRUST AND CYBER • Focus on fair hiring in SEEK Asia • Ongoing program of • Focus on protection of customers’ through safe and responsible job
Slide 66: Agenda
Agenda 1. The market opportunity 2. Our starting point 3. Growing placements 4. Growing yield 5. The $2bn revenue opportunity by FY28 6. Sustaining a margin above 50% 7. Other businesses and opportunities 8. The Growth Fund 9. ESG activities 10. Capital management Investor Strategy Day 65 65
Slide 67: Capital management framework focused on providing sustainable returns
Capital management framework focused on providing sustainable returns Strong operating cashflows Strong cashflow generation enables investment into the long- term health of SEEK’s employment marketplaces, market positions and product development Long-term investment Product & Tech Optionality for M&
Slide 68: Key points
Key points Capacity for growth in our addressable markets is supported by long-term structural trends We have the market positions and capability to execute our growth plans With focus on growing placements and optimising yield, we have a $2bn revenue opportunity by FY28 Investment discipline and co
Slide 69: 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. There are