Slide 1: Full Year Results Presentation
For personal use only Full Year Results Presentation 12 months ending 30 June 2010
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 record result Group Financial Performance Growth from diverse earnings streams underpinning a record financial result with Normalised1 NPAT of $83.1m up 50% from pcp R Result lt d driven i b by sustained
Slide 4: Financial Performance
Financial Performance For personal use only 4
Slide 5: Strong Financial Results to June 2010
Strong Financial Results to 30 June 2010 For personal use only For FY10 final dividend, SEEK has increased its dividend pay-out ratio from 45% to 50% of Cash NPAT7 1 The FY09 result represents the THINK result from 12 May 2009 to 30 June 2009. Prior to 12 May 2009, THINK was accounted for as an Asso
Slide 6: In FY10, SEEK has achieved record Financial Results
In FY10, SEEK has achieved record Financial Results For personal use only Segment Revenue - CAGR of 38.6% EBITDA – CAGR of 41.9% Reported NPAT – CAGR of 36.6% 6
Slide 7: SEEK generates high EBITDA margins and strong cash flow
SEEK generates high EBITDA margins and generates strong cash flow For personal use only SEEK g generates strong g EBITDA margins g g1 EBITDA to Op CF Conversion is strong EBITDA Margins FY10 1 Cash flows from operating activities before interest and income taxes paid 7
Slide 8: SEEK has recently refinanced its debt facilities and is well capitalised
SEEK has recently refinanced its debt facilities and is well capitalised For personal use only SEEK’s old debt facility y SEEK’s new debt facility y & Capital Structure Old Facility Maturity Size $m Synd. Loan - Tranche 1 Aug-10 100.0 Synd. Loan - Tranche 2 Aug-11 100.0 The new debt facility is supp
Slide 9: Outlook for FY11
Outlook for FY11 For personal use only EMPLOYMENT • Revenue and p profit starting gppoint for FY11 is higher g than start of FY10 ¨ • Initial FY11 trading in line with expectations with a continuation of gradual but consistent month on month growth in job ads • If current trajectory continues expect
Slide 10: Employment Dynamics
Employment Dynamics For personal use only 10
Slide 11: The Australian labour market has achieved sustained growth in the last 12 months
The Australian labour market has achieved sustained growth in the last 12 months For personal use only In last 12 months, the labour market has …which is also reflected in robust growth in new steadily tightened … jobs ads. SEEK Employment Index1 (Jul-09 = 100) SEEK New Job Index 2 (Jul-09 = 100) (I
Slide 12: Online job ad volumes are growing faster than print where SEEK is #1
Online job ad volumes are growing faster than print where SEEK is the #1 brand... For personal use only Online ad volumes are outpacing print ads1 … … and SEEK is the #1 brand in online job ads2 ANZ Job Series – pcp growth in job ads over last 12 months 1Source: ANZ Job Series, July 2010 2Source: Ca
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 Source: June 2010 Nielsen Net Ratings, SEEK Count of websites New Zealand UBs: unique browsers TTOS: Share of total time on site across the top 3 players 13 Market Reach UBs: Share of total aggregate
Slide 14: 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 has continued1 in CY10 d despite it print i t achieving hi i robust b t volume l th2 on pcp basis growth b i 80 (2003-201
Slide 15: SEEK is well positioned for growth as majority of spend is still in print
SEEK is well positioned for growth as the majority share of spend is still in print For personal use only Online vs. Print (%) Job-Ad Volume Job Seeker Preferences2 Share of Spend3 Jul-2010 May-2010 Mar-10 Online 80% 76% 43% Print 20% 24% 57% 1 ANZ Advertisement Series for July 2010 2Job seeker pref
Slide 16: 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 Core drivers of long term employment earnings SEEK’s core strategy remains focused on accelerating the structural migration of revenue
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
SEEK has a broad and diverse presence in education ... For personal use only SEEK Education comprises of the following businesses (x% = SEEK Ownership) (100%) (100%) • SEEK Learning is the #1 online (50%) destination for career related • THINK: Education Group is a leading education & training domes
Slide 19: Education has continued to perform impressively
…that has continued to perform impressively. For personal use only Education Financials – A strong track record of growth SEEK Education continues to experience strong growth and expansion Revenue growth3 of 36% in FY10 was split between organic growth of 16% and acquisition growth 20% SEEK believes
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 SEEK Learning growth story • Strong growth with Revenue up 45% and EBITDA up 121% vs pcp • SEEK Learning generating high margins whilst increasing expenditure in marketing and advertising • Since FY
Slide 21: THINK grew revenue strongly but H2 earnings were impacted
THINK grew revenue strongly but H2 earnings were impacted due to increased restructuring and investment For personal use only Financial Results • Lower than expected earnings result for H2 due to increased restructuring and investment • Specific investment was required in key hires, infrastructure,
Slide 22: THINK's operating performance was pleasing
THINK’s operating performance was pleasing For personal use only Enrolment Performance Operational Achievements Consistent Growth Drivers Rapid growth in student enrolments(a) Course Development & Organic Student Growth College Roll Out 1. Grow new enrolments Results 2. Improve student retention 1.
Slide 23: IDP recorded a solid result in light of challenging conditions
IDP recorded a solid result in light of challenging conditions For personal use only Financial Results • A creditable result in light of changes by DIAC1 to student entry requirements and $6.2m of Opex spent on the US expansion2 • SEEK received a fully franked interim dividend of $2.5m in H2 FY10 •
Slide 24: International
For personal use only 24 International
Slide 25: Brasil Online delivered a strong performance
Brasil Online delivered a strong performance For personal use only Financial Results Operational Metrics Catho jjob Positions Catho g growth in Active & Invoiced Users 58% growth from FY09 to FY10 (90% conversion rate in FY10) • Result underpinned by Catho growth in active & invoiced users Strategic
Slide 26: Zhaopin delivered a strong result in FY10
Zhaopin delivered a strong result in FY10 For personal use only Results • SEEK decreased its share of loss in H1 FY10 from A$3 A$3.4m 4m to A$0.4m in H2 FY10 driven by strong revenue growth • Zhaopin achieved positive EBITDA months from March to May and at end of FY10 increased its cash balance by 2
Slide 27: JobStreet is performing strongly in fast growing SE Asian markets
JobStreet is performing strongly in 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 C l d Y Calendar Year Q Quarters t Results • Q2 CY10 w
Slide 28: SEEK has acquired a 40% stake in the leading job board in Mexico
SEEK has acquired a 40% stake in the leading job board in Mexico For personal use only Who are OCC? • Online Career Center Mexico SA de CV (OCC) is the clear market leader in Mexico across all jobseeker and advertiser metrics • OCC has over 5.5x unique visitors and 1.5x job ads vs the #2 player • Ma
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: Appendix: SEEK has an Experienced & Stable Executive Team
Appendix: SEEK has an Experienced & Stable Executive Team For personal use only Name Current Position Years at Previous Experience SEEK Paul Bassat Joint CEO, Co-Founder 13 Lawyer for six years with one of Australia’s leading corporate and commercial firms Andrew Bassat Joint CEO, Co-Founder 13 Mana
Slide 31: For personal use only
For personal use only 31