Slide 1: SEEK Limited FY20 Results Presentation
SEEK Limited FY20 Results Presentation 12 months to 30 June 2020
Slide 2: SEEK is fulfilling its purpose on a large scale
SEEK is fulfilling its purpose on a large scale… Market leading businesses with large Strong assets and capabilities to drive our Entrepreneurial mindset with a track addressable markets growth strategy record of long-term value creation Asia Pacific & Americas (AP&A) Population exposure Candidates
Slide 3: SEEK's actions are always guided by our Purpose and long-term mindset
SEEK’s actions are always guided by our Purpose and long-term mindset… Throughout SEEK’s history we have always taken a purpose driven and long-term approach • Our Purpose guides our strategy • We have strong conviction in prioritising investment for the long-term This approach has helped create sig
Slide 4: ...and this approach has guided our COVID-19 response
…and this approach has guided our COVID-19 response. People response • Ahead of Government policy we implemented work from home protocols supported by programs focused on physical safety and mental health • Across AP&A we protected our permanent workforce Customer response • Provided customer relief
Slide 5: SEEK's A$5b revenue aspiration and long-term growth strategy remain intact
SEEK’s A$5b revenue aspiration and long-term growth strategy remain intact but timing will be impacted by macro conditions • No fundamental change to SEEK’s A$5b1 revenue aspiration o COVID-19 will likely impact the timeframe to achieve this revenue opportunity o Original timeframe was FY25 and too
Slide 6: Tangible progress made against our key priorities in FY20
Tangible progress made against our key priorities in FY20 • In FY20, SEEK invested and executed against its key strategic drivers • We are confident in generating a strong return on investment when conditions return to normal Asia Pacific & Americas (AP&A) SEEK Investments M&A and Entrepreneurial AN
Slide 7: SEEK's approach has created significant shareholder value
SEEK’s approach has created significant shareholder value c6x1 TSR vs ASX 200 since IPO despite the economic cycle and aggressive competition 3 Product & Tech evolution 1,201.7% M&A led growth 2 (Int’l & Education) 1 ANZ led growth 190.8% • SEEK has continually invested for the long-term and evolved
Slide 8: Group Financial Performance
Group Financial Performance
Slide 9: FY20 financial result impacted by COVID-19 and weak macro conditions
FY20 financial result impacted by COVID-19 and weak macro conditions Group Revenue A$1,577.4m, up 3% vs pcp • Online employment businesses impacted by weak macro (H1 20) and COVID-19 (H2 20) o H2 20 billings for ANZ, Asia & Zhaopin bottomed at -65%+ (vs pcp) o Different rates of recovery observed in
Slide 10: Group Financial Result: Detailed comparison FY20 vs FY19
Group Financial Result: Detailed comparison FY20 vs FY19 FY20 Financials (A$m)1 Key Insights: Below the line items Constant Growth Currency Revenue FY20 FY19 % % Reported NPAT before significant items down 51% SEEK ANZ 387.2 440.0 (12%) (12%) • Higher D&A: AASB 16 impact (cA$30m) and increased produ
Slide 11: Track record of generating strong cash flows redeployed into high ROI strategies
Track record of generating strong cash flows which have been redeployed into high ROI strategies ...have been deployed into high Historically strong cash flows… ...and high growth M&A. returning capex… Operating cash flows1 A$m Product & Tech capex A$m Capital deployed into current Online Education,
Slide 12: Managing capital structure and dividends to support growth strategy
SEEK is managing its capital structure and dividends to support its growth strategy Debt Restructuring has increased flexibility and maturity profile Final FY20 dividend Key initiatives No final FY20 dividend • Increased funding flexibility & new sources of capital • Once economic conditions improve
Slide 13: Asia Pacific & Americas (AP&A)
Asia Pacific & Americas (AP&A)
Slide 14: AP&A continues to invest to capture a large market opportunity
AP&A continues to invest to capture a large market opportunity Focus is to invest and innovate to capture large FY20 Summary APAC market opportunity Market positions remained strong • Key competitive metrics remained strong but require continued investment and innovation Population2: c590m • Hirer s
Slide 15: SEEK ANZ performed well in the context of a weak volume environment
SEEK ANZ performed well in the context of a weak volume environment Financials Depth revenue result1 A$m 108.7 109.5 A$m Growth FY20 FY19 % 85.6 Revenue 387.2 440.0 (12%) 48.1 56.1 EBITDA 223.5 263.8 (15%) 62.7 EBITDA (%) 58% 60% 48.5 35.3 35.1 37.5 32.6 32.3 Revenue decline of 12% attributable to:
Slide 16: Update on SEEK ANZ's pricing model transition
Update on SEEK ANZ’s pricing model transition Subscription contract changes • New pricing and contract structure applied to renewing subscription contracts after 1 December 2019 • Key changes include: o Variable pricing of classic job ads o Transition to more flexible SEEK contract (e.g. ability to
Slide 17: SEEK ANZ retains market leadership on key metrics despite strong competition
SEEK ANZ retains market leadership on key metrics despite strong competition Market leadership in key operating metrics… …translates into a large lead in placements Largest candidate audience Share of AU Placements4 (%) As at Jul-20 33.4% Market leader in visits1 Significant profile scale 35m+ month
Slide 18: SEEK Asia result also impacted by macro conditions
SEEK Asia result also impacted by macro conditions Financials Investing in future depth strategy A$m Constant Resilient depth revenue result A$m Growth Currency growth of 5% vs pcp3 Reported A$ FY20 FY19 % % Revenue 162.9 176.6 (8%) (14%) 29.3 27.8 EBITDA 72.8 91.3 (20%) (26%) EBITDA (%) 45% 52% 21.
Slide 19: LatAm: COVID-19 impact exacerbated ongoing operational and macro challenges
LatAm: COVID-19 impact exacerbated ongoing operational and macro challenges Brasil Online Key Insights BRLm Growth • COVID-19 impact is severe in Brazil and Mexico Pro-Forma FY20 FY19 % Revenue 154.0 176.8 (13%) • Near-term macro outlook resulted in non-cash impairment EBITDA 17.3 31.6 (45%) charge2
Slide 20: SEEK Investments
SEEK Investments
Slide 21: M&A and entrepreneurial ventures are a key part of SEEK's strategy
M&A and entrepreneurial ventures are a key part of SEEK’s strategy Invest in emerging leaders leveraged to long-term structural trends in the Human Capital Market. We then work with management teams to unlock the full potential of their businesses Our approach SEEK’s unique strategic Focused on long
Slide 22: SEEK's philosophy to investing and our key focus areas
SEEK’s philosophy to investing and our key focus areas Philosophy for SEEK Investments • Invest in emerging leaders leveraged to long-term structural trends • Invest aggressively to build market leadership to capture a significant share of long-term revenue and profits • To maximise long-term capita
Slide 23: Zhaopin navigated a challenging period to deliver a resilient result
Zhaopin navigated a challenging period to deliver a resilient result Financials Results & Insights RMBm Growth Resilient revenue result in context of COVID-19 Pro-Forma FY20 FY19 % • Resilient online revenue result given soft macro & COVID-19 Online Revenue (100%) 2,017.7 2,270.6 (11%) o Q3-20: COVI
Slide 24: Zhaopin: Significant opportunity from hirer growth and long-term monetisation
Zhaopin: Significant opportunity from hirer growth and long-term monetisation… Hirers Candidates Large market opportunity as hirers migrate to Zhaopin has large candidate scale but more work online recruitment to be done in leveraging data & AI • Zhaopin is under-penetrated vs market opportunity1 •
Slide 25: ...and utilising its strategic assets across a large adjacent market opportunity
…and utilising its strategic assets across a large adjacent market opportunity. Zhaopin can leverage its hirer and candidate relationships into large total addressable market (“TAM”) • Market leadership in online employment is the key strategic focus • There is also an opportunity to utilise hirer a
Slide 26: OES: Scaling multiple partnerships and expanding its service offerings
OES: Scaling multiple partnerships and expanding its service offerings as demand for online education increases Financials Growth strategy & Outlook A$m Growth Pro-Forma FY20 FY19 % Revenue (100%) 136.6 127.5 7% EBITDA (100%) 34.8 36.7 (5%) 1 2 3 4 EBITDA (%) 25% 29% Post-grad Under-grad Short & New
Slide 27: SEEK Investments owns a portfolio of emerging leaders exposed to large markets
SEEK Investments owns a portfolio of emerging leaders exposed to large addressable markets Online Education HR SaaS Contingent Labour Large addressable A$50b+ globally A$2b+ in Australia A$20b+ across AP&A and Europe markets1 Tech and behavioural shifts to remote HR SaaS delivering superior cloud- T
Slide 28: Our conviction has increased in our investments and key themes
Our conviction has increased in our investments and key themes Quickly adapted and achieved strong growth Our long-term conviction has increased • New products launched to adapt to new environment • Our conviction has increased in our key themes o Online COVID-19 courses, contingent labour to meet i
Slide 29: Our online education businesses are disrupting traditional modes of education delivery
Our portfolio of online education businesses are disrupting traditional modes of education delivery Online Program Management MOOCs & Online Learning Overview of • Helping universities bring their content online • Providing learners with global access to career-relevant investments • Delivering cost
Slide 30: Our HR SaaS investments grew market share and revenue in FY20
Our HR SaaS investments grew market share and revenue in FY20 Investment thesis Strong growth in portfolio metrics and financial results Overview of GO1 is a global online leader in education and training Portfolio investments investments • 1.5m+ users with global presence including Australia, US &
Slide 31: Our contingent labour platforms helped address critical COVID-19 labour shortages
Our contingent labour platforms helped address critical COVID-19 labour shortages Investment thesis Strong growth in operating and financial results Overview of Tech solutions driving overall effectiveness by investments helping hirers find relevant talent at a faster rate Portfolio investments Mark
Slide 32: Outlook
Outlook
Slide 33: FY21: Context and recent trends
FY21: Context and recent trends Context for SEEK’s short-term results • Trading conditions are likely to remain uncertain and challenging to forecast in light of COVID-19, macroeconomic and FX volatility • The last 6 months provide us with experience on how the restrictions impact our business • Whe
Slide 34: Key Assumptions: FY21 illustrative scenario
Key Assumptions: FY21 illustrative scenario Set out below are the key assumptions adopted in our illustrative scenario: Revenue assumptions for 3 largest businesses (vs pcp): Business Assumption ANZ Job ad volumes gradually recover throughout FY21 but remain below FY20 peaks SEEK Asia Job ad volumes
Slide 35: Implied FY21 illustrative scenario
Implied FY21 illustrative scenario We cannot provide guidance but can provide a scenario based on current conditions • Refer slide 34 for key assumptions • It is likely that actual FY21 results will vary from these key assumptions based on external factors • Actual results may also vary based on fur
Slide 36: Near term will be challenging but expect SEEK to invest and capitalise on long-term opportunities
Near term will be challenging but expect SEEK to invest and capitalise on its significant long-term revenue opportunities • Our near-term results will be impacted by COVID-19 • Our focus is on long-term value creation o Our market positions remain strong o We are confident in our strategy and our lo
Slide 37: Appendices
Appendices
Slide 38: SEEK Group: Reconciliation to Statutory results
SEEK Group: Reconciliation to Statutory results FY20 FY19 Statutory Significant Statutory Result Statutory Significant Statutory Result Result Items excl Result Items excl Significant items Significant items Revenue H1 16 AP&A 629.6 629.6 709.7 709.7 SEEK Investments 947.8 947.8 827.6 827.6 Total Re
Slide 39: SEEK Group: FY20 Segment Results
SEEK Group: FY20 Segment Results FY20 Segment Results (from Note 1, p10 of SEEK’s Appendix 4E Preliminary Final Report 2020) Segment changes; No changes to total Revenue, EBITDA or NPAT • Minor changes have been made to SEEK’s operating segments for FY20 to align with Executive responsibilities & an
Slide 40: Strong liquidity and funding flexibility
Strong liquidity and funding flexibility Net debt breakdown Key insights • Reported net debt of A$901m (Dec-19: A$895m) • Group net debt broadly in line with Dec-19 despite: o Impact of COVID-19 in H2 20 o M&A in ESV portfolio (mainly Contingent labour) o Increased investment in product & tech • Inc
Slide 41: Group Capex of A$126m with majority of investment in Product & Tech
Group Capex of A$126m with majority of investment in Product & Tech SEEK Group Capex Key Insights Product & Tech: • AP&A capex of cA$89m mainly relating to: o Pricing and contract changes in ANZ (refer slide 16 for detail), mobile app enhancements and candidate tools o Smarter search, recommendation
Slide 42: SEEK ANZ – Key Operating Metrics
SEEK ANZ – Key Operating Metrics UNPROMPTED BRAND AWARENESS7 c15m 35m+ DELIVERING VALUE Candidate Profiles1 85%+ of ANZ labour force2 Monthly visits3 c70% of traffic via mobile/apps c75% of traffic is direct4 81% FOR CANDIDATES c2x lead over nearest competitor c145k c140k SHARE OF AU PLACEMENTS8 As
Slide 43: SEEK Asia – Key Operating Metrics
SEEK Asia – Key Operating Metrics c27m 40m+ Candidate Profiles1 Monthly visits3 Markets: HK, MY, SG, PH, TH, ID & VN c11% of labour force2 c70% of traffic via mobile/apps Population2: c590m DELIVERING VALUE c70% of traffic is direct4 GDP2: A$5,071m FOR CANDIDATES Ave. GDP per Capita2: A$31k Urbanisa
Slide 44: Zhaopin – Key Operating Metrics
Zhaopin – Key Operating Metrics No. of Completed Resumes (m) – as of period end Unique Online Customers (‘000) Average Daily Unique Visitors (m) Average Revenue per Online Customer (RMB) 44
Slide 45: 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. In parti