Slide 1: Full Year Results Presentation
For personal use only Full Year Results Presentation Year ending 30th June 2009 Amended for an error on p.5 “Normalised NPAT (Excl Zhaopin & Non-Trading Items)” FY09 restated to $76.1m previously it was $78 $78.8m 8m
Slide 2: Overview of SEEK
For personal use only 2 Overview of SEEK
Slide 3: Full Year Overview
Full Year Overview For personal use only Consistent strategy and effective execution delivers a strong result Financial Performance Strong financial result in a challenging year with EBITDA of $97.8m and NPAT of $55.3m Result driven by resilience in Ad revenues, growth in SEEK Learning and a reducti
Slide 4: Financial Performance
Financial Performance For personal use only 4
Slide 5: Strong Financial Results to June 2009
Strong Financial Results to 30 June 2009 For personal use only Change to Dividend Policy commencing H2 FY09 - Final Dividend Current policy is to pay out 40%-70% of NPAT with the current pay out ratio being 40%. Revised policy is that SEEK will continue with the 40% pay-out ratio but from “Cash NPAT
Slide 6: Strong Financial Results to June 2009 (cont'd)
Strong Financial Results to 30 June 2009 (cont’d) For personal use only 1 THINK’s financials are included in SEEK’s statutory accounts but only for the period 12 May 2009 to 30 June 2009 2 SEEK accounted for 34.7% of Zhaopin in FY08 and 56.1% in FY09 3 A 30% shareholding in Brasil Online Holdings wa
Slide 7: Non-trading items and write-downs
Non-trading items and write-downs For personal use only Discussion • Impairment (JobStreet)2: Relates to fair value adjustment based on a share price decline in JobStreet shares for the FY09 period • Fair value gain of pre-existing interest (THINK)3: Increase in valuation of previously held equity i
Slide 8: SEEK generates strong cash flow and has low levels of net debt
SEEK generates strong cash flow and has low levels of net debt For personal use only g1 EBITDA conversion to Op. cash flows is strong SEEK is well capitalised with low levels of net debt Net Debt/EBITDA at FY09 is ~0.7x 106% 96% FY08 FY09 1 Cash flows from operating activities before interest and in
Slide 9: FY10 Outlook
FY10 Outlook For personal use only EMPLOYMENT • Revenue has stopped declining since May ¨ • Revenue and profit starting point for FY10 is lower than FY09 starting point • Limited visibility due to uncertain market conditions but expect strong structural growth to continue when the market improves ED
Slide 10: Employment Dynamics
Employment Dynamics For personal use only 10
Slide 11: Structural shift in the Australian Classifieds Market
For personal use only 11 Seasonallly adjusted job ad ds Market Share of AU Classifieds M Market % online … 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Jan-02 90.0% Mar-02 May-02 Jul-02 Print Sep-02 Nov-02 Jan-03 Source: ANZ Job Advertisements Series Mar-03 May-03 Online Jul-03 Sep-03 Nov-03
Slide 12: Online is the way to search for jobs where SEEK is the #1 brand
…and online is the way to search for jobs where SEEK is the #1 brand … 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 you choose to look for a job? Internet Ways to
Slide 13: 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 AU Online Share - Key Metrics Jun 2009 100% 75% 50% SEEK SEEK SEEK 25% 0% Ads UB's TTOS Source: June 09 Nielsen NetRatings, SEEK Count of websites New Zealand 13
Slide 14: Rapid migration of revenue from print to online
The rapid migration of revenue from print to online is a continuing structural trend which will continue to run … For personal use only We have seen an acceleration in migration of revenue from print to online in the last 12 months (2001-2010F; %) 70 60 USA 50 ~2 years lag 40 Australia 30 20 10 0 20
Slide 15: Majority of spend is still in print
… and provide upside through the cycle as the majority of spend is still in print. For personal use only Online vs. Print (%) Job-Ad Volume1 Job Seeker Preferences2 Share of Spend3 Online 79% 73% 39% Print 21% 27% 61% 1 ANZ Advertisements Series for June 2009 2 Job seeker preferences considers onlin
Slide 16: Through the cycle, SEEK is strongly positioned for growth
Through the cycle, SEEK is strongly positioned for growth given its favourable exposure to structural trends and a strong market position. For personal use only Core drivers of long term employment earnings SEEK’s core growth strategy remains on accelerating the structural migration of revenue from
Slide 17: Education – SEEK Learning, THINK and IDP
Education – SEEK Learning, THINK and IDP For personal use only 17
Slide 18: SEEK has a broad and diverse presence in education and training
SEEK has a broad and diverse presence in education and training… For personal use only Billy Blue (Design) William Blue (Hospitality) ACNT (Natural Therapies) (100%) APM (Marketing/PR) dents JNI (Psychology/Counselling) CATC ((Design) g ) omestic Stud (100%) EDUCATION AND TRAINING SEEK Learning UK S
Slide 19: Education continues to achieve strong financial performance
…that continues to achieve strong financial performance. For personal use only Learning Financials (FY06 - FY09) $152 5M $152.5M FY06 FY07 FY08 FY09 $101 4M $101.4M In five years, SEEK has built a large Education business with “look through” revenue of $59.9M $152.5m and EBITDA of $28.2m in FY09. Re
Slide 20: SEEK Learning continues its rapid revenue and earnings growth
SEEK Learning continues its rapid revenue and earnings growth… For personal use only Financial Results • Strong growth with Revenue up 38% and EBITDA up 145% vs pcp continuing its strong performance since H2 FY08 • Revenue growth in new and existing partners and economies of scale l ddriving i i ear
Slide 21: THINK has continued to grow revenue at a rapid rate
…and THINK has continued to grow revenue at a rapid rate … For personal use only Financial Results • Strong revenue growth primarily driven by new enrolments and continuing students. Revenue augmented by the CATC acquisitions in H1 FY09 • Major investments include: opening of Brisbane Campus Campus,
Slide 22: IDP continuing its strong growth trajectory
…with IDP continuing its strong growth trajectory and providing SEEK with an excellent return on investment. For personal use only Financial Results FY08 FY09 510,700 381,000 IELTS Candidates • Strong result driven primarily by strong candidate growth for IELTS & solid growth in Student Placements •
Slide 23: International
For personal use only 23 International
Slide 24: Brasil Online's performance to date has been strong
Brasil Online’s performance to date has been strong For personal use only Results • St Strong result lt since i SEEK’ SEEK’s investment i t t with ith the th “jobseeker “j b k pays”” business b i model d l performing well in the downturn to date • Strong Balance Sheet with net cash position and gene
Slide 25: Zhaopin is well positioned in a challenging environment
Zhaopin is well positioned in a challenging environment For personal use only Zhaopin • SEEK increased its share of losses in FY08 from A$6.2m to A$17.3m of which ~93% of the increase in losses is attributable to FX and increased equity ownership • SEEK’s share of loss of A$6.7m in H2 FY09 is signif
Slide 26: JobStreet is well positioned to benefit from structural migration
JobStreet is well positioned to benefit from continuing structural migration and an economic recovery in SE Asia For personal use only JobStreet has market leading position across …and has achieved strong results despite SE Asia and strategic investments in exciting markets … challenging economic co
Slide 27: 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 Education Drivers of Future SEEK Learning Earnings Growth IDP THINK International Brasil Online Holdings Zhaopin J
Slide 28: For personal use only
For personal use only 28