Slide 1: Half Year Results Presentation
For personal use only Half Year Results Presentation 6 months to 31 December 2010
Slide 2: SEEK operates a range of strategic businesses in Employment & Education
SEEK operates a range of strategic businesses in Employment & Education For personal use only Domestic Employment Education International Employment 2
Slide 3: Financial Performance
Financial Performance For personal use only 3
Slide 4: Half Year Overview
Half Year Overview For personal use only Consistent strategy and effective execution delivers a record half year result Group Financial Performance Growth from diverse earnings streams underpinning a record half year financial result with reported NPAT of $47.9m up 31% from pcp R Result lt d driven
Slide 5: SEEK achieved a record half year result for 6 months to December 2010
SEEK achieved a record half year result for 6 months to 31 December 2010 ... For personal use only 1 Non-trading costs of A$1.8m associated with the write back of SEEK’s syndicated loan established in July 2010 that had been expensed in the H1 FY11 P&L 5
Slide 6: Driven by strong results from Domestic & International Employment Businesses
...driven by strong results from Domestic & International Employment Businesses... For personal use only Strong g growth g in Employment p y Business o Consistent volume & yield growth o Strong EBITDA margins at 59% Challenging H1 FY11 for SEEK Learning & THINK Strong contribution from SEEK’s
Slide 7: A continuation of SEEK's track record of consistent growth
...which is a continuation of SEEK’s track record of consistent growth over a long time period. For personal use only Operating Revenue - CAGR of 37.1% EBITDA – CAGR of 42.7% Reported NPAT – CAGR of 36.2% 7
Slide 8: SEEK has a new debt facility and generates strong cash flows
SEEK has a new debt facility and generates strong cash flows For personal use only SEEK’s Capital Structure SEEK generates strong cash flows3 Revolving unsecured senior debt facility Key terms / covenants remain largely unchanged Fullyy underwritten byy NAB o SEEK & NAB in process to syndicate
Slide 9: Employment Dynamics
For personal use only 9 Employment Dynamics
Slide 10: Australian labour market has continued sustained growth over the last 18 months
The Australian labour market has continued its trajectory of sustained growth over the last 18 months For personal use only Job Volumes have steadily recovered but are still The growth in jobs ads has been consistent and well below the peaks of Dec-07 sustained for the last 18 months SEEK New Job In
Slide 11: Online ad volumes are growing faster than print and SEEK is the #1 brand
Online ad volumes are growing faster than print and SEEK is the #1 brand in online job ads... For personal use only Online ad volumes are rapidly outpacing print ads1 … … and SEEK is the #1 brand in online job ads2 ANZ Job Series – pcp growth in job ads 1Source: ANZ Job Series, December 2010 2Source
Slide 12: SEEK's #1 market position in Australia & NZ
…which is reflected in SEEK’s #1 market position in Australia & NZ. For personal use only Australia Source: January 2011 Nielsen NetRatings, SEEK Count of websites New Zealand UBs: unique browsers TTOS: Share of total time on site across the top 3 players 12 Market Reach UBs: Share of total aggregat
Slide 13: Migration of revenue from print to online is an ongoing structural trend
The migration of revenue from print to online is an ongoing structural trend which will continue to run For personal use only Structural migration of revenue from print to online is a continuing trend 80 nt ad market USA e revenue as % off total employmen 70 60 ~2 years lag 50 Australia 40 30 20 Onl
Slide 14: Approximately 50% of job ad spend still resides in print
SEEK is well positioned for growth as approximately 50% of job ad spend still resides in print For personal use only Online vs. Print (%) Job-Ad Volume1 Job Seeker Preferences2 Share of Spend3 Dec-10 Oct-10 Dec-10E Online 82% 75% 50% Print 18% 25% 50% 1 ANZ Advertisement Series for Dec-2010 2Job see
Slide 15: SEEK has a strong growth outlook
SEEK has a strong growth outlook reflecting its leading market position, exposure to favourable structural trends and improving job ad markets For personal use only Volume Continue C ti attacking tt ki industry i d t segments, t geographies hi andd client li t segments where SEEK is under-penetrated
Slide 16: Education – SEEK Learning, THINK and IDP
Education – SEEK Learning, THINK and IDP For personal use only 16
Slide 17: SEEK has a presence across domestic and international education
SEEK has a presence across domestic and international education For personal use only SEEK Education comprises of the following businesses (x% = SEEK Ownership) Swinburne & SEEK JV (100%) (50%) • SEEK Learning is the #1 (100%) • A 50:50 partnership online destination for b t between SEEK and d caree
Slide 18: Financial results impacted by challenges specific to each business
Financial results have been impacted by challenges specific to each business For personal use only Education Financials – Trajectory over the last six years Numerous operational issues have led to a weak result for SEEK Education but SEEK believes the strategic logic remains intact 1. SEEK has imple
Slide 19: SEEK Learning experienced a challenging half
SEEK Learning experienced a challenging half but continues to expand its service and course offerings For personal use only Financial Results • Key drivers of slowdown in revenue growth (i) Relative to pcp, student demand has moderated (ii) One-off changes in course entry requirements in certain par
Slide 20: THINK has experienced a difficult six months
THINK has experienced a difficult six months For personal use only Financial Results • Result impacted by write-off of $5.2m due to an underestimate in student withdrawals related to prior & current period o Issue discovered post-trading update & quantified during H1 FY11 review o Impacting both Rev
Slide 21: IDP recorded a creditable result and is investing in the US & UK
IDP recorded a creditable result and is investing in expanding into the US & UK international student markets For personal use only Financial Results • In light of challenging conditions a creditable result achieved by management • US expansion is tracking well with over 80 US Universities signed to
Slide 22: International – investments hold market leadership positions in high growth regions
International – SEEK’s international investments hold market leadership positions in high growth regions For personal use only China Zhaopin (56%) CJOL2 Internet penetration ~~31% Internet penetration ~28% Internet penetration ~12% to 79% depending on country Internet penetration ~38% Internet penet
Slide 23: Brasil Online continues to perform well
Brasil Online continues to perform well For personal use only Financial Results Operational Metrics Strategic Outlook • SEEK will receive a dividend of ~A$4.5m2 in H2 FY11 • EBITDA result impacted by one-off costs1 of BRL 6.4m • Continue investing in sales & marketing to build & leverage #1 • Result
Slide 24: Zhaopin moved to profitability in H1 FY11
Zhaopin continues to rapidly grow online revenue and moved to profitability in H1 FY11 For personal use only Financials Competitor Metrics & Results • Zhaopin achieved positive EBITDA in each month from August to December • Zhaopin is well capitalised with cash balance of RMB 235.4m • Making strong
Slide 25: JobsDB operates in countries with strong economic prospects
JobsDB operates in countries with strong economic prospects & significant scope for growth in online employment job ads For personal use only Financial Results Operating Metrics Unique Paying Clients Jobseeker Profiles (‘000) (m) • CY10 result is back above pre-GFC high of CY08 • Strong start to CY1
Slide 26: JobStreet continues to perform well in fast growing SE Asian markets
JobStreet continues to perform well in the fast growing SE Asian markets For personal use only Strong Quarterly Revenue Growth ... ...leading to significant earnings growth Op Prrofit Margins (%) YR (millions) YR (millions) MY MY Calendar Year Quarters Calendar Year Quarters Results • Q3 CY10 was re
Slide 27: Strong growth by OCC in the early stage Mexico market
Strong growth by OCC in the fast growing and early stage Mexico market For personal use only Financial Results Operational Metrics Strategic g Outlook • SEEK will receive a dividend of ~A$1.6m4 in H2 FY11 • Continue capitalising on clear market leadership in an under • Results underpinned by 30% gro
Slide 28: Outlook for H2 FY11
Outlook for H2 FY11 For personal use only SEEK Group • Expect H2 NPAT (excluding JobsDB transaction costs & Swinburne JV start up costs) to be greater than H1 EMPLOYMENT • Positive start to CY11 based on YTD results • Expect a continuation of gradual but consistent revenue and earnings growth •
Slide 29: Focus drivers for SEEK's growth remains constant
Focus drivers for SEEK’s growth remains constant For personal use only There remains significant growth opportunities across Employment, Education and International that should form the basis of earnings growth for many years to follow Employment Volume Yield Product Expansion Education Diverse Driv
Slide 30: Appendices: THINK's enrolment metrics, operational achievements & key priorities
Appendices: THINK’s enrolment metrics, operational achievements & key priorities For personal use only Operational Achievements Key Priorities over next six to nine months Course Development Other 1. Consolidate and improve operational • Launch of new online Bachelor • Awarded 5 year re-registration
Slide 31: For personal use only
For personal use only 31