Slide 1: SEEK Limited – FY22 Full Year Results Presentation
16 August 2022 The Manager ASX Market Announcements Office Australian Securities Exchange Dear Manager SEEK Limited – FY22 Full Year Results Presentation In accordance with the Listing Rules, I enclose SEEK’s FY22 Full Year Results Presentation for immediate release to the market. Yours faithfully,
Slide 2: FY22 Results Presentation
SEEK Limited FY22 Results Presentation 12 months to 30 June 2022
Slide 3: Agenda
Agenda 1 FY22 highlights 2 FY22 financial performance 3 Employment marketplaces 4 Other businesses 5 Platform Unification 6 SEEK Growth Fund 7 Strategy update 8 FY23 outlook
Slide 4: FY22 highlights
FY22 highlights 3
Slide 5: FY22 highlights
FY22 highlights Operational Financial1 Capital management SEEK Growth Fund • Record job ad volumes in Revenue growth and margin • Operating cash to EBITDA • 36% increase in portfolio ANZ and growth across improvement conversion of 112% value vs capital deployed2 other key regions • Revenue of A$1,11
Slide 6: FY22 Financial performance
FY22 Financial performance 5
Slide 7: FY22 Financial results
FY22 Financial results Discontinued Continuing Operations Operations A$1,117m A$509m A$246m A$14m Revenue EBITDA NPAT NPAT excl significant items excl significant items +47% vs pcp +53% vs pcp +81% vs pcp +156% vs pcp 6
Slide 8: Profit and loss summary
Profit and loss summary FY22 FY21 Growth Constant % currency % Revenue up 47% vs pcp A$m • ANZ +53%: higher job ad volumes and increased yield • SEEK Asia +37%3: higher job ad volumes in all markets Continuing Operations Revenue 1116.5 760.3 47% 46% Operating expenses up 42% vs pcp Operating expense
Slide 9: Cashflow summary
Cashflow summary A$m FY22 1 Operating cashflow1 to EBITDA conversion of 112% Operating activities • Increase mainly reflects working capital benefits 1 Operating cashflows (excl. interest, tax etc) 572.6 Interest and transaction costs (53.4) 2 Tax 2 Tax, including tax paid on Zhaopin transaction (11
Slide 10: Balance sheet leverage
Balance sheet leverage Reconciliation to reported net debt 1 Borrower Group1 net debt of A$1.05bn (30 June 2022) • Increase from 30 June 2021 reflects M&A activity including 30-Jun-22 30-Jun-21 Change contribution to the SEEK Growth Fund (A$128m) and A$m acquisitions (A$80m) 1 1 Borrower Group net d
Slide 11: Capital management and dividends
Capital management and dividends Debt facilities Dividend Refinance of syndicated debt facility in December 2021 Final dividend of 21 cents per share • Extension of average debt tenor by 2 years1 • Next maturity is 30 November 2024 Total FY22 dividend of 44 cents per share Total facilities of A$1.8b
Slide 12: Employment marketplaces
Employment marketplaces 11
Slide 13: Employment marketplaces highlights
Employment marketplaces highlights Revenue EBITDA Market position Strategy Revenue growth across key EBITDA margin expansion Maintained market positions Strategic priorities markets whilst investment continued in competitive environment progressing • Revenue growth of 47% vs pcp • Restoration of cos
Slide 14: SEEK ANZ performance
SEEK ANZ performance Record volumes along with yield growth Financials1 Job ad volumes up 39% (vs pcp) v • Record job ad volumes of 325k in March 2022 REVENUE EBITDA MARGIN • Tight employment market driving high levels of activity $827m $530m 64% v Average ad yield up 11% (vs pcp), attributed evenly
Slide 15: SEEK ANZ – candidate activity
SEEK ANZ – candidate activity Increased engagement but applications per ad remain low Monthly unique visitors (m)1 Candidate engagement remained high during FY22 v 15 • Average monthly unique visitors up 6% vs pcp • Engagement benefitting from various initiatives including: 12 • ‘Great Job Boom’ cam
Slide 16: SEEK ANZ – hirer activity
SEEK ANZ – hirer activity Job market activity remained high during FY22 Job ads posted by month (‘000s)1 Record job ad volumes v 350 • Continued growth in job ads1 to a high of 325k (March 2022) 300 • Unique hirers (average) up 20% vs pcp • Seasonal slowdown in activity during December and April 250
Slide 17: SEEK AU competitive metrics
SEEK AU competitive metrics Maintained market and brand metrics Share of AU placements1,2 (%) SEEK’s share of placements of 29.7% v As at July-22 29.7% • AU placements share of 29.7% (vs 30.8%3 at Jan 2022) • Results reflective of a change in survey methodology • SEEK’s lead over the nearest competi
Slide 18: SEEK Asia performance
SEEK Asia performance Volume growth across all markets and investment to drive growth Financials1 Job ad volumes up 38% (vs pcp) v • Volume growth across all regions REVENUE EBITDA MARGIN • Corporate and SME segments driving growth A$202m A$52m 26% Average ad yield down 1% (vs pcp) v +38% reported +
Slide 19: SEEK Asia – candidate activity
SEEK Asia – candidate activity Targeted initiatives driving higher candidate activity Monthly active users (m) Candidate activity is increasing v 19 • Monthly active users up 8% vs pcp (average) and 3% above pre COVID-19 levels1 16 • Monthly candidate applications up 6% vs pcp (average) and 23% abov
Slide 20: SEEK Asia – hirer activity
SEEK Asia – hirer activity Job ad volume growth across all markets Paid job ads volumes by month Growth in paid job ads across all markets v 40% (% growth vs FY19)1 • Growth accelerated in H2 22 across the region 20% • Singapore and Malaysia job ads now ahead of pre COVID-19 0% levels1 -20% • Hong K
Slide 21: SEEK Asia – market insights
SEEK Asia – market insights Developed markets Emerging markets Hong Kong Malaysia Singapore Indonesia Thailand Philippines Labour force1 3.8m 16.3m 3.3m 139.2m 39.1m 43.8m Internet penetration %1 92% 90% 92% 54% 78% 50% % of placement activity2 using online 71% 74% % of placement activity using orga
Slide 22: Other businesses
Other businesses 21
Slide 23: Other businesses
Other businesses Zhaopin Brasil Online OCC Equity-accounted investment - 23.5% owned by SEEK Subsidiary - 100% owned by SEEK Subsidiary - 98.2% owned by SEEK RMBm Growth BRLm Growth MXNm Growth Pro forma (100% basis) FY22 FY21 % Pro forma (100% basis) FY22 FY21 % Pro forma (100% basis) FY22 FY21 % O
Slide 24: Platform Unification
Platform Unification 23
Slide 25: Platform Unification
Platform Unification Program progressing well with majority of work to be undertaken in FY23 1 Objectives FY22 progress One unified platform by the end of FY24 • Migrated 100% of JobStreet hirers onto a single SEEK Asia • APAC employment marketplaces centrally hirer system; legacy system ready for d
Slide 26: Platform Unification
Platform Unification Financial estimates updated to reflect expanded scope Investment required over three-year period (FY22-FY24) • Total incremental program costs up from A$125m to A$180m v • These costs supplement SEEK’s core technology teams • Incremental costs start to come out at the end of FY2
Slide 27: Platform Unification
Platform Unification Detailed financials Guidance provided Updated at H1 22 results guidance FY22-FY24 FY22A FY23F FY24F Total Incremental investment A$125m A$30m A$105m A$45m A$180m Capex cost A$100m A$8m A$40m A$25m A$73m Opex cost A$25m A$22m A$65m A$20m A$107m Capex/Opex split 80% / 20% 27% / 73
Slide 28: SEEK Growth Fund
SEEK Growth Fund 27
Slide 29: Update on the SEEK Growth Fund
Update on the SEEK Growth Fund Portfolio Overview • Adjusted portfolio value increased 36%1 to A$2,052m • Directors of Fund Trustee adjusted portfolio value downwards by 18% to reflect public market valuations • Realising benefits of new structure including increased ability to invest aggressively a
Slide 30: SEEK Growth Fund valuation
SEEK Growth Fund valuation Audited Fund valuation at 30 June 2022 Key portfolio movements • A positive start (albeit it is early days) in weak market conditions confirms A$m quality of portfolio and its exposure to favourable structural trends SEEK seeded assets1 1,215 • Gains: Predominately driven
Slide 31: Portfolio assets
Portfolio assets Education HR SaaS Contingent Labour Key structural • Technology and behavioural shifts to • Cloud-based solutions are solving large • Technology solutions are delivering trends remote working/learning are driving HR problems more effectively and at significant efficiencies in large,
Slide 32: Strategy update
Strategy update 31
Slide 33: SEEK's growth drivers
SEEK’s growth drivers Focused on opportunities in core businesses Significant growth Organic growth the opportunities in core focus, but will businesses consider M&A (ANZ and Asia) Underlying economic Enrichment and Aligning price to M&A to enhance growth and offline to expansion of the value that c
Slide 34: Strategic focus areas
Strategic focus areas Investing in four core capabilities Scalable, reliable, • Consolidate to one flexible platform for scale efficiencies, rapid innovation, improved reliability and security safe platforms Strong brand • Maintain ANZ brand strength presence • Reinvigorate brands in Asia and add sa
Slide 35: Strategic progress
Strategic progress FY22 progress across core capabilities Scalable, reliable, • Platform Unification program progressing well towards completion by the end of FY24 safe platforms • Refer slide 24 for detailed progress during FY22 • Resumed active marketing in ANZ following lower activity in FY21 due
Slide 36: Product, data and artificial intelligence
Product, data and artificial intelligence Large opportunity to unlock new value through the application of data and AI Capture relevant role, organisation and Leverage data and AI capability to generate the career data most granular and useful market intelligence Current focus Current focus • Real t
Slide 37: FY23 outlook
FY23 outlook 36
Slide 38: FY23 trading outlook
FY23 trading outlook • Macroeconomic conditions at the start of FY23 are uncertain, though most economists are forecasting continuing low unemployment. ANZ job ad volumes moderated slightly in June and were stable in July, still well ahead of prior period (July +19% vs pcp per SEEK Employment Index)
Slide 39: FY23 Guidance: SEEK (Continuing Operations)
FY23 Guidance: SEEK (Continuing Operations)1 FY23 Guidance (excluding significant items) for SEEK (Continuing Operations): v • Revenue in the range of A$1.25bn to A$1.30bn • EBITDA in the range of A$560m to A$590m • NPAT in the range of A$250m to A$270m Forecasting economic conditions, changes in hi
Slide 40: FY23 Guidance: SEEK (Discontinued Operations)
FY23 Guidance: SEEK (Discontinued Operations)1 SEEK Growth Fund assets, pre deconsolidation FY23 Guidance (excluding significant items) for SEEK’s Discontinued Operations1: v • SEEK’s share of NPAT of approximately A$5m SEEK Growth Fund assets, pre deconsolidation (Discontinued Operations) • Deconso
Slide 41: Well positioned to grow shareholder value
Well positioned to grow shareholder value Attractive Leveraged to Ability to capture Opportunity to High cashflow Access to capital opportunity structural and apply deep price for the generation growth via the exists in core changes in the and unique data additional value provides ability SEEK Growt
Slide 42: Appendices
Appendices 41
Slide 43: Corporate and other information
Corporate and other information 42
Slide 44: Overview of SEEK's structure
Overview of SEEK’s structure1 SEEK Growth Fund Assets owned and managed by Assets owned by SEEK Growth Fund and SEEK managed by the Fund’s Manager3,5 SEEK ANZ SEEK Asia2 Brasil Online Platform Support Online Education OCC (formerly known as Caelum) HR SaaS Assets owned by SEEK and managed by the Fun
Slide 45: Capital management and dividends
Capital management and dividends Operating cashflows to support long term investment and shareholder returns Capital management approach Dividend Policy Dividend reflects SEEK’s operating cashflow performance and Strong operating cashflows accommodates SEEK’s long-term investment priorities, includi
Slide 46: SEEK Advertised Salary Index
SEEK Advertised Salary Index A new public source of labour market data On 29 August, SEEK will launch the SEEK Advertised Salary Index. This new monthly report will provide important insights into the 24 August growth of wages and salaries in Australia Media launch • Wages growth is a key economic i
Slide 47: Additional financial and operational information
Additional financial and operational information 46
Slide 48: Reconciliation to statutory results
Reconciliation to statutory results SEEK results versus those presented in SEEK’s statutory accounts (Segment Note) 1 FY22 FY21 (restated) Statutory Significant Items Excl. Significant Items Statutory Significant Items Excl. Significant Items Significant items A$m SEEK ANZ 826.6 0.0 826.6 541.0 0.0
Slide 49: FY22 segment results
FY22 segment results Extract from SEEK’s Appendix 4E and Statutory Accounts 2022 (page 46) 48
Slide 50: Net debt detail
Net debt detail Year ended 30 June 2022 Short-term Net cash/ Facility limit Borrowings Cash2 investments (debt) SEEK Ltd A$ bank debt A$612.5m (505.0) SEEK Ltd US$ bank debt US$652.5m (639.4) SEEK Ltd A$ subordinated floating rate notes A$225.0m (225.0) 1 SEEK Limited Borrower Group (1,369.4) 324.1
Slide 51: SEEK Group Capex
SEEK Group Capex Product and technology (A$m)1 Key insights Product and technology • ANZ and Asia: Platform Unification, enhancements to mobile, enhancements to AI and search, new products (e.g. Connected Talent Search and Company Profiles in ANZ), expansion of verified credentials • Establishing a
Slide 52: Changes to revenue disclosures: ANZ and Asia
Changes to revenue disclosures: ANZ and Asia Change #1 Change #2 What is the change? • Primary revenue disclosures for • Numerical volume and yield disclosures volume and yield impacts to be based to be provided at the aggregate level, on absolute change, rather than on rather than split by ad produ
Slide 53: ESG
ESG 52
Slide 54: ESG highlights
ESG highlights Priorities that deliver social and environmental value for our communities and our people Fair hiring Modern slavery Data trust • Focus on fair hiring in SEEK • Second Modern Slavery • Focus on protection of Asia through safe and Statement released in customers’ privacy and using resp
Slide 55: ESG highlights
ESG highlights Priorities that deliver social and environmental value for our communities and our people Climate Diversity and inclusion Social • SEEK ANZ certified carbon • 50:50 representation of women • SEEK Volunteer connected over neutral for FY21 by Climate and men on the Executive 107,000 vol
Slide 56: 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. Forward-l