25 February 2020
ASX Market Announcements Office
Dear Sir/Madam
SEEK Limited (SEEK) - FY2020 Half Year Results Presentation
In accordance with the Listing Rules, SEEK releases its FY2020 Half Year Results Presentation to the market.
This document was authorised for release by SEEK's Board of Directors.
Yours faithfully,
Lynne Jensen
Company Secretary
For further information contact:
Investors & Analysts: Steven Moran (03) 8525 5620
Media: Sarah Macartney 0433 949 639
SEEK Limited
Level 6, 541 St Kilda Road, Melbourne, Victoria, 3004 | Tel: +613 8517 4100 | Fax: +613 9510 7244 | ABN 46 080 075 314
SEEK Limited
H1 20 Results
Presentation
6 months to 31 December 2019
SEEK is fulfilling its purpose on a large scale…
Market leading businesses with large | Strong assets and capabilities to leverage | ||||
addressable markets | into our growth strategy | ||||
Asia Pacific & Americas (AP&A) | |||||
Population exposure | Candidates | Hirers | |||
c2.9B | 45M+ | 200k+ |
Visits per annum1
1.2B+
Entrepreneurial mindset with a track record of long-term value creation
TSR2 of
1,290%vs
ASX of 240%
GDP exposure | IRR of | ||||
SEEK Investments | |||||
c26% | 25%+ | ||||
Candidates | Hirers | ||||
of Global GDP | 200M+ | 900K+ | SEEK Investments | ||
(Current portfolio)3 | |||||
Students / Learners
55M+
SEEK's Purpose: We help people live more fulfilling and productive working lives and help
organisations succeed.
2 | 1 AP&A visits include Jora |
2 Total shareholder returns includes dividends and share price appreciation from 19 April 2005 to 20 February 2020 |
3 Based on current SEEK Investments Portfolio (Zhaopin, OES and ESVs) and includes A$105m of incremental capital deployed into ESVs in H1 20
…as we aggressively pursue a A$5b revenue opportunity by FY25.
Asia Pacific & Americas (AP&A) | SEEK Investments | |||||||||
M&A and | ||||||||||
Entrepreneurial | ||||||||||
ANZ | Activities | |||||||||
Aligning Price to | Bringing SEEK Asia | Scaling up existing | Online Education | |||||||
Online Employment | partners & signing | |||||||||
Value | to ANZ baseline | |||||||||
new partners | ||||||||||
Key Growth | ||||||||||
HR SaaS | ||||||||||
Drivers | ||||||||||
Utilise ANZ Product & | Adjacent market | |||||||||
Tech and key learnings | ||||||||||
Product Set | Adjacent Market | expansion | ||||||||
to help in Aligning | ||||||||||
Expansion | Expansion | (short courses & | ||||||||
Price to Value & | Contingent Labour | |||||||||
micro-credentials) | ||||||||||
Product Set Expansion | ||||||||||
- cA$5b1 aspirational revenue opportunity equates to an FY18 to FY25 Revenue CAGR of c20%
- Delivering revenue growth in the range of c16 - 18% (FY19 & H1 20) in weak macro environment gives us confidence in our outlook
- If we invest and execute well, we expect this to translate into increased profitability and overall growth in shareholder value
3 | 1 Aspirational revenue opportunity is not a budget or target and assumes reasonable macro conditions |
We made tangible progress in all strategic priorities during H1 20…
Asia Pacific & Americas (AP&A) | SEEK Investments | |
ANZ
Aligning Price to Value
- New pricing & contract structure for subscription contracts1
Product Set Expansion
• Increased depth product |
Lifting the baseline
- Operating model established
- Key technology decisions made & being implemented
- Applying ANZ experience to progress the roll out of new products in Asia
Online Employment
-
Investing to deliver better:
o Data, AI and search & match
o New mobile and chat functionality
o Sales efficiencies
Scaling up partners
- Maximised SOL & WSU student body
- Scaling up QUT & UK partnerships
Adjacent Mkt Expansion
M&A and
Entrepreneurial
Activities
- Deployed A$105M
- Strong portfolio performance & "look- through" Revenue growth of 30%+ vs PcP2
adoption |
• Building new products to |
increase efficiency for |
candidates & hirers |
Adjacent Mkt Expansion
- Strong growth in BPO, Training & Campus
- Developing micro- credentials
Our opportunity set is large but requires an entrepreneurial approach to innovate and evolve the business
4 | 1 | Refer to ASX Announcement on 21 October 2019. Changes apply to Australian customers renewing subscription contracts after 1 December 2019 |
2 | "Look-through" share represents revenue of investments multiplied by SEEK's ownership interest (based on comparable ownership interest across H1 19 & H1 20) |
…and are confident in our ability to unlock significant financial benefits over time.
-
Benefits of our investment process are first seen in our operating metrics followed by our financial results
o Seeing positive momentum across key operating metrics
o History has shown that translation to significant financial and valuation pay-off takes 3-5 years - ANZ model evolution from online classifieds to leading product & tech business
- Scaling Zhaopin & OES from loss making start-ups to significant standalone businesses
- Our optimism for the long-term means we are maintaining our investment bias
- Current investment focus means we are under-earning in FY20, sacrificing short-term profitability for greater long-term upside
- Macro factors may impact our short-term financials but have little bearing on our future prospects
- In the long-term our strategy and investment bias will grow SEEK's defensibility and profitability
5
SEEK's approach to long-term investment has created significant shareholder value
c5x1 TSR vs ASX 200 since IPO despite the economic cycle and aggressive competition
3 Product & Tech evolution
1,289.7%
2 M&A led growth
(Int'l & Education)
1 ANZ led growth
240.3%
Apr-2005 | Oct-2007 | Mar-2010 | Sep-2012 | Mar-2015 | Aug-2017 | Feb-2020 | |
SEEK | ASX 200 |
- SEEK has a strong track record of continually investing and evolving to drive long-term shareholder value
- We are well positioned and continue to invest to capture the next leg of growth
6 | 1 Total shareholder returns includes dividends and share price appreciation from 19 April 2005 to 20 February 2020 |
Group
Financial
Performance
Resilient result in the context of subdued macro economic conditions and continued investment
H1 20 Financials (A$m)1
Constant | ||||||
Growth | Currency | |||||
Revenue | H1 20 | H1 19 | % | % | ||
SEEK ANZ | 224.4 | 222.0 | 1% | 1% | ||
SEEK Asia | 91.3 | 84.7 | 8% | 0% | ||
LatAm | 43.0 | 43.9 | (2%) | (5%) | ||
AP&A Other | 1.1 | 1.3 | (15%) | (15%) | ||
AP&A | 359.8 | 351.9 | 2% | 0% | ||
Zhaopin | 418.4 | 319.0 | 31% | 27% | ||
OES | 65.1 | 61.5 | 6% | 6% | ||
ESVs | 32.2 | 24.8 | 30% | 30% | ||
SEEK Investments | 515.7 | 405.3 | 27% | 24% | ||
Total Revenue | 875.5 | 757.2 | 16% | 13% | ||
EBITDA | ||||||
SEEK ANZ | 134.2 | 134.2 | 0% | 0% | ||
SEEK Asia | 45.6 | 44.6 | 2% | (5%) | ||
LatAm | 7.4 | 8.8 | (16%) | (18%) | ||
AP&A Other | (9.2) | (9.6) | (4%) | (4%) | ||
AP&A | 178.0 | 178.0 | 0% | (2%) | ||
Zhaopin | 69.9 | 56.0 | 25% | 22% | ||
OES | 18.6 | 20.0 | (7%) | (7%) | ||
ESVs | (5.2) | (4.3) | 21% | 19% | ||
SEEK Investments | 83.3 | 71.7 | 16% | 14% | ||
Corporate Costs | (13.9) | (11.2) | 24% | 23% | ||
Total EBITDA2 | 247.4 | 238.5 | 4% | 1% | ||
Depreciation & Amortisation | (65.0) | (39.8) | 64% | |||
Net interest | (28.0) | (19.1) | 46% | |||
Share-based payments | (11.8) | (9.4) | 24% | |||
Share of equity accounted results | (18.2) | (6.3) | 190% | |||
Other items | (0.5) | 0.0 | n/m | |||
Tax | (35.1) | (48.4) | (28%) | |||
Non-controlling interests | (13.2) | (13.0) | 2% | |||
Reported NPAT (excl Sign. Items) (a) | 75.6 | 102.5 | (26%) | |||
Significant items (b) | 0.0 | (3.2) | ||||
Reported NPAT (a+b) | 75.6 | 99.3 | (24%) |
Results & Insights
H1 20 revenue growth of 16% (all organic)
- AP&A: resilient result despite weak macro conditions
- SEEK Investments: strong revenue growth from Zhaopin & ESVs
EBITDA growth less than revenue growth due to investment focus
FX impact:
- Reported A$ results positively impacted by A$ depreciation
Reported NPAT before significant items down 24%
- Higher costs associated with increased product & tech investment; M&A and ESV scale up
- Reported NPAT includes losses from SEEK Investments ESVs: $25.3m (H1 19: $10.1m) & AP&A Other: $8.3m (H1 19: $9.0m)
Accounting Standards require us to expense ESV losses but not recognise the long-term economic value created3
Reported EPS of 21.5 cents
1 | In H1 20 a number of small entities have moved between segments. H1 19 segment results have been restated to reflect these changes. There is no impact on Total Group Reported H1 19 results. Refer to | |
8 | page 35 for further detail | |
2 | H1 20 EBITDA reflects changes required under AASB 16 Leases. H1 19 financials have not been restated. Excluding the AASB 16 effect, EBITDA would have decreased by 2%. Refer to slide 37 for further detail |
3 Portfolio ESV valuation of A$530m based on valuations at 30 June 2019 of A$425m + A$105m of incremental capital deployed into ESVs in H1 20
SEEK generates strong cash flows which have been deployed into high growth
opportunities…
Strong operating
cash flows…
Operating cash flows A$m
$250m $242m $232m
$203m | $198m |
$174m
$137m
$90m | $95m |
..have been deployed into high | ..and high growth M&A | |||||||
returning capex… | ||||||||
Product & Tech capex A$m | Value created through M&A | |||||||
$57m | c2.5x | |||||||
$51m | ||||||||
$43m | ||||||||
$28m | ||||||||
$19m | $22m | |||||||
$16m | ||||||||
$2m | $5m | |||||||
H1 12 | H1 13 | H1 14 | H1 15 | H1 16 | H1 17 | H1 18 | H1 19 | H1 20 | H1 12 | H1 13 | H1 14 | H1 15 | H1 16 | H1 17 | H1 18 | H1 19 | H1 20 |
Capital deployed into M&A
2
M&A Valuation 31 Dec 19
3
- Strong Operating cash flow1 has created capacity for Capex and M&A
- Operating cash flow to EBITDA to conversion of c101%
o Includes OES cash receipts of cA$32m (received Jan 2020)
o Excluding OES, conversion was 88%
- Consistently increasing our capex investment given track record of high returns
- c3x Revenue return on ANZ product & tech capex, and strong revenue returns in Zhaopin
- c2.5x return on capital deployed
- cA$105m of capital deployed in H1 20 including jobandtalent
9 | 1 Cash flows from operating activities excluding interest, transaction costs and tax payments |
2 Net Capital deployed towards current investments from date of initial investment up to 31 December 2019 |
3 M&A Valuation = SEEK Group Enterprise Value (EV) less ANZ EV based on broker consensus
…and we have evolved our capital structure to support our growth strategy.
SEEK's dividend payout reflects our investment
strategy…
-
Dividend policy
o As communicated at our FY19 results we have revised our dividend policy to support investment into high ROI initiatives (capex & M&A) as SEEK pursues large new revenue opportunities
o Payout ratio of 30-50% of Group Cash NPAT1 - H1 FY20 dividend of 13 cents, down 46% vs pcp
- Paying at the lower end of the range given the significant capital we deployed in M&A during H1 20 and increased uncertainty caused by Coronavirus
…and we have improved our capital structure to
support our growth aspirations
-
New & diversified capital structure to support growth aspirations
o Refinanced syndicated loan facility (Jan-20):improved pricing & terms
o New source of capital: Issued A$150m Floating Rate Subordinated Notes (Dec-19)
o Overall longer tenor: Increased tenor of debt (average 3.5 years) -
Robust credit metrics
o EBITDA/Net Interest of 8.7x2 o Net Debt/EBITDA of 1.9x2
o Net debt of A$895m at 31 December 2019
10 | 1 | Cash NPAT defined as: Group Reported NPAT (Statutory excluding significant items) + Depreciation and Amortisation + Share based payments + Associate losses - Associate dividends |
2 | Credit ratios are based on reported financials (12 month trailing basis) and differ from bank covenant definitions |
Asia Pacific
- Americas (AP&A)
AP&A is leveraging ANZ's capability and product & tech initiatives across a much
larger opportunity set
SEEK has a track record of innovation and revenue | …and is now taking ANZ's success to a much | |||
growth in ANZ… | larger market opportunity. | |||
ANZ Revenue (A$m) | Leading product & | |||
3 tech business | Population1: c584m | |||
GDP1: A$4,134m | ||||
Ave. GDP per Capita1: A$26k | ||||
Model | Urbanisation1: c52% | |||
2 | H1 20 Revenue: cA$91m | |||
evolution | ||||
1 Start-up
cA$190m
cA$196m
ANZ
cA$50m | Population1: c30m |
GDP1: A$2,112m | |
Ave. GDP per Capita1: A$64k
Urbanisation1: c86%
H1 20 Revenue: cA$224m
Proven record of investing and evolving the business which | Now leveraging SEEK ANZ's capability and experience into |
has driven long-term revenue growth | the larger SEEK Asia footprint |
- Investment in product & tech capability transformed the ANZ business and continues to deliver a significant revenue uplift
- Large market opportunity for ANZ and Asia as long we keep investing and innovating
12 | 1 Source: The World Bank |
AP&A is investing in long term competitiveness despite weaker volumes
- Economic and geopolitical challenges weighed on job ad volumes
- Ad volumes weak in ANZ, but some positive signs from SMEs at the end of H1 20
- Material volume declines in Hong Kong due to economic impacts of unrest
- Growth slow in Singapore and Malaysia but developing markets better
- Growth in depth provided some offset
- Depth revenue growth of 17% (ANZ) and 22% (Asia) on pcp showed benefits of prior investment
- Market positions remained strong
- Key competitive metrics remained strong in all markets
- Competition intensifying, requiring ongoing investment and innovation
- Strategic priorities progressing
- New ANZ pricing capability developed and in market1
- Focused on creating flexibility and efficiency for all hirers and a more equitable marketplace
- No material financial benefit expected in FY20
- Platform unification underway with more work ahead
13 1 Refer to ASX Announcement on 21 October 2019. Changes apply to Australian customers renewing subscription contracts after 1 Dec 19
ANZ revenue and EBITDA flat due to economic conditions
Financials | Strong growth in depth revenue1 |
A$m | Growth | ||
H1 20 | H1 19 | % | |
Revenue | 224.4 | 222.0 | 1% |
EBITDA | 134.2 | 134.2 | 0% |
EBITDA (%) | 60% | 60% |
Revenue growth of 1% attributable to:
- 4% depth (Premium, Standout, Premium Talent Search etc)
- 3% average price increase
- 2% mix/other
- (8)% volume decline
Volumes weak but depth growth strong
- Reflects benefits from sustained reinvestment (see RHS)
Ongoing investment will extend growth profile
- Ongoing product enhancements including depth
- Data platforms and analytics have potential to improve candidate experience and hirer ROI
A$m | 61.4 |
c2.4x growth in Depth | |
52.6 | |
37.7 | |
29.3 | |
22.2 |
16.5 | 17.6 | 17.3 | 15.5 | 18.0 |
H1 11 | H1 12 | H1 13 | H1 14 | H1 15 | H1 16 | H1 17 | H1 18 | H1 19 | H1 20 | ||||
Depth as % Revenue | |||||||||||||
c15% | c24% | ||||||||||||
c17% | c19% | c27% | |||||||||||
Depth revenue grew by 17%
- Depth revenue grew despite negative job ad volumes
- Premium Ads (+31%) & Standout Ads (+14%) revenue growth
- Bodes well for strong depth growth in a tighter labour market
- Premium ad now 4%+ of total ads (penetration upside)
- Currently c27% of ANZ revenue is from depth
- Online peers generate c50-75% of revenue from depth
14 | 1 Prior years have been restated to remove immaterial revenue streams (cA$2m per half year) |
SEEK ANZ continues to lead the market across key metrics despite strong competition
Market leadership in key operating metrics…
Largest candidate audience
Market leader with c35m+ monthly visits
- c70% of total traffic via mobile
- c75% of traffic is direct1
14m2 candidate profiles
c85%+ of ANZ labour force
+
Greatest unique job ad scale
SEEK ANZ has the largest pool of unique job ads
- Jora has largest number of job ads of any AU aggregator (c300k ads/mth in AU)
+
Highly effective marketplace
Using AI & unique data to improve relevance
- Smarter search and new global recommendations engine surfacing the most relevant jobs and driving an uplift of c20% in applications (vs pcp)
- 5.5m+ candidates receiving 40m+ weekly job recommendations
…translates into a large lead in placements
Share of AU Placements (%)
As at Jan-20 | 37.2% |
5.2% | 4.1% | 6.1% |
Professional | Online Classifieds | Aggregators |
Networks |
Note: Offline channels (mainly word of mouth, HR/Employer site, notice boards, etc.) account for a combined 28% of placements
37% | 81% |
Placements3 | Brand Awareness |
Lead of c6x over | Lead of c2x over |
nearest competitor | nearest competitor |
15 | 1 Includes traffic direct to the SEEK website & app (including e-mail notifications) |
2 Searchable profiles of c10.3m (31 December 2019) |
3 Includes SEEK and Jora placements. Source: Independent research conducted on behalf of SEEK. Study is conducted quarterly among c3k Australian's that changed / started jobs in the last 12 months. Data is weighted to be nationally representative of the Australian labour force with quotas set for age, gender, location and employment status.
SEEK ANZ is making progress across its two key growth drivers
Scale and depth of candidate and hirer relationships underpin two growth opportunities:
Aligning price to value
Move to a more equitable and efficient marketplace by aligning price to value based on a number of factors including candidate supply
Key H1 20 achievements
-
Announced changes to pricing & contract structure1: o Variable pricing of classic job ads
o Transition to a new more flexible SEEK contract
o Transition to standardised discounts based on committed annual job ad spend
Future growth drivers
- Increasing premium ad penetration
- Development of new performance products
- Variable pricing for all job ads
Product Set Expansion
Utilise ANZ's strategic assets (unique data, strong
brand, etc) to deliver tech enabled solutions
Key H1 20 achievements
- Enhanced candidate experience by improved application functionality & helping them stand out
- Increased candidate engagement through Careers Advice, Company Reviews & GradConnection
- Increased product adoption (e.g. Branded Ad, Premium Talent Search)
Future growth drivers
- Building new tech solutions for all hirers to solve for inefficiencies across selection, assessment, verification of data, etc.
16
1 Refer to ASX Announcement on 21 October 2019. Changes apply to Australian customers renewing subscription contracts after 1 December 2019
Revenue growth in SEEK Asia was flat in a lower growth economic environment
Financials
Constant | ||||
A$m | Growth | Currency | ||
SEEK Reported | H1 20 | H1 19 | % | % |
Revenue | 91.3 | 84.7 | 8% | 0% |
EBITDA | 45.6 | 44.6 | 2% | (5%) |
EBITDA (%) | 50% | 53% |
Financial result reflects weak macro conditions
- Revenue growth flat vs pcp (constant currency)
- Revenue decline in Hong Kong (largest market) driven by sharp economic contraction (lowest GDP growth since 2009)
- Malaysia & Singapore also slowed but developing markets better o Weak H1 billings will impact H2 reported revenue
- EBITDA also impacted by investment
Recent investment is driving growth in key metrics
- Mobile enhancements led to 15% uplift in mobile app visits (vs pcp)
- Profile scale increased 16% vs pcp
- Product roll outs from AP&A first wave of unification initiatives
Positive long-term outlook but investment required
- Operating model now enables better sharing of capabilities with increased technology unification to follow
- Long-termrevenue opportunity is larger than ANZ with similar growth drivers (price to value & product set expansion)
- Competition intense but market positions strong
Growth in depth revenue
A$m
c85% growth in Depth
15.7
12.9
9.5 8.5
H1 17 | H1 18 | H1 19 | H1 20 |
Depth as % Revenue
c13% c13% c15% c17%
Depth revenue1 performing well despite the cycle
- 22% growth vs pcp (H1 20 vs pcp)
-
Growing penetration of depth products over time o Now c17% of revenue (H1 20) vs c13% (H1 17)
o Further upside as existing and new depth products are
rolled out across the region
17 | 1 Defined as non-basic job ad revenue (e.g. stand out ads and talent search, etc.) |
LatAm: Results in line with expectations
Brasil Online
BRLm | Growth | |||
Pro-Forma | H1 20 | H1 19 | % | |
Revenue | 80.7 | 85.9 | (6%) | |
EBITDA | 9.4 | 14.9 | (37%) | |
EBITDA (%) | 12% | 17% | ||
EBITDA A$m (100%) | 3.4 | 5.3 | (36%) |
OCC1
MXNm | Growth | |||
Pro-Forma | H1 20 | H1 19 | % | |
Revenue | 182.7 | 187.1 | (2%) | |
EBITDA | 52.9 | 48.0 | 10% | |
EBITDA (%) | 29% | 26% | ||
EBITDA A$m (100%) | 4.0 | 3.5 | 14% |
Key Insights
-
Brasil Online and OCC continue to hold market leading positions in large labour markets
o Combined population of c335m
o Ranked 9th & 15th in the world in terms of GDP - Both businesses face significant challenges, but remain focused on developing and implementing strategies to enable sustained market leadership
- Better macro-economic conditions and strong operational execution are required for improved financial results
- Will take time but both businesses are self-funding
18 | 1 In H1 20 OCC Education has moved reporting segments and is now reported within SEEK Investments ESVs. H1 19 comparative results have been |
restated to reflect these changes
SEEK Investments
M&A and entrepreneurial ventures are a key part of SEEK's strategy…
Leveraging SEEK's strategic advantages to pursue new growth opportunities across the
broader Human Capital Market
Our approach
- Investing in purpose aligned businesses across Human Capital Market
- Active partner offering strategic & operational support across the business life cycle
- Adopting a patient and long-termmindset to build large defensible businesses
SEEK's unique strategic
advantages
- Deep expertise from 22+ years as a leading operator and investor in Human Capital businesses
- Significant deal flow based on reputation and strategic assets
- Potential synergies where
SEEK's scale of data & relationships can be used to drive growth (245m+ candidates & 1.1m+ hirers)
Focused on long-term returns
- Attractive unit economics
- Deploying capital into high ROI opportunities
- Focusing on long-termcapital appreciation & targeting minimum IRRs of 15-20% over 5+ years
20
…and we have a proven track record of generating strong returns over time.
Returns and duration held by asset
Capital Gain | IRR | Years held |
(x) | (%) | (#) |
Key insights
Largest gains made over a medium to long-term horizon
• Zhaopin and OES have been held for 8+ years and are |
generating significant valuations and strong returns |
ESV Portfolio
1
2,3,4
6x | 27% | 13 |
9x | 33% | 9 |
3x | 61% | 8 |
1x | n/m | 2 |
• Patient and long term approach to building value has |
proved successful |
ESVs showing promising operating & financial momentum
- Portfolio of 15+ assets, valuation of cA$0.5bn
- Average years held of c2 yrs across portfolio
- Significant capital deployed in last 12 mths (cA$290m) incl A$105m in H1 20 which is yet to contribute a meaningful uplift in valuation
- Expect good growth in current operating metrics to translate into material valuation uplift over time
SEEK Investments will continue to focus on compounding capital at high rates of return over 5+ years
21 | 1 | IDP divested in November 2015 |
2 | Portfolio ESV valuation based on valuations at 30 June 2019 of A$425m + A$105m of incremental capital deployed into ESVs in H1 20 | |
3 Capital gain and years held based on average across Investments ESV Portfolio. Average years held weighted based on % of capital deployed 4 IRR for ESV Portfolio not meaningful as assets have only been held for a short period (e.g. average 2 years)
Zhaopin performed well in a challenging macro environment…
Financials
RMBm | Growth | ||
Pro-Forma | H1 20 | H1 19 | % |
Online Revenue (100%) | 1,091.4 | 1,139.5 | (4%) |
Adjacent Services Revenue (100%) | 924.0 | 441.6 | 109% |
Revenue (100%) | 2,015.3 | 1,581.1 | 27% |
EBITDA (100%) | 337.4 | 277.5 | 22% |
EBITDA (%) | 17% | 18% | |
EBITDA A$m (100%) | 69.9 | 56.0 | 25% |
H1 20 EBITDA growth of 25% reflects the benefits of the change in operating lease
recognition. On a like-for-like basis EBITDA growth would have been 9%1
Operational metrics
Market leader by # of hirers, registered candidates and completed resumes
- 615k unique hirers, down 10% vs pcp2 due to weak market conditions
- 205m registered candidate users, up 13% vs pcp
- 130m completed resumes, up 14% vs pcp
Focus on better structuring large scale of data to form the foundation for new products and services
Results & Insights
Revenue resilient in light of weak operating conditions
- Total revenue grew by 27%
- Online revenue decline of -4% due to lower unique hirers partly offset by increased usage of prominence products
- Adjacent services revenue growth of 109% (driven by BPO, Campus & Training) achieved via cross-sell into large hirer base
Aggressive investment to strengthen platform
- Online offerings remain the core, with ongoing investment in Product & Tech (mobile & chat), Data & AI to improve outcomes for candidates & hirers
- Adjacent Services investment helping to penetrate large new revenue opportunities
Impact of the Coronavirus
- The Coronavirus has significantly impacted the Chinese economy in early CY20 and will impact Zhaopin's near-term results
- However, there is no change on Zhaopin's long-term market opportunity in what we expect to be world's largest HCM market
- Our focus remains on building market leadership in a competitive environment, which will open up monetisation & cross-sell opportunities
22 | 1 Zhaopin has a presence in 36 cities. Under AASB 16 (Leases), from 1 July 2019 operating lease costs are no longer reported in EBITDA |
2 Represents no. of unique hirers in Q2 FY20 vs Q2 FY19 |
…remains focused on building online market share…
Strong hirer lead yet remain significantly
under-penetrated
Strong Hirer lead1
2x+ lead ZPIN v listed competitor
2x+
c1.2x
c1x
CY15 | CY17 | CY19 |
- Hirer lead is 2x+ over listed competitor o Freemium model and improvements in product & tech are helping to drive hirer
numbers - Zhaopin is under-penetrated vs market opportunity3
- Our FY19 unique hirers represent: c6% of Private Enterprises
c23% of Online Employers in China
Hold the lead on key candidate metrics but more work to be done
Solid Candidate lead
ZPIN v listed competitor
Daily unique visitors | 1.1x2 |
Monthly unique visitors | 1.5x2 |
Registered users | 1.3x1 |
- Track record in growing candidate scale where Zhaopin has moved from #3 to #1 player across many key metrics
- Focused on growing candidate lead to 1.5-2.0x
o Competition for candidate attention has intensified, requiring investment in mobile, unique insights and marketing
Significant long-term opportunity to align
price to value
Significant Online ARPU1 Opportunity
Online global | |
Listed competitor | peers generating |
ARPU1 is c2.5x | significantly higher |
Zhaopin | ARPU |
2,019 | |
819 | |
Zhaopin | Listed Competitor |
- Zhaopin's ARPU is low relative to local listed competitors & global online peers4
-
Significant ARPU opportunity
o Competition for key talent expected to intensify creating opportunities to better align price to value
o New products & technology expected to
create efficiencies in the hiring process and unlock large revenue pools
Focused on building strong network effects in what we expect will be the world's largest Human Capital Market | ||
1 Based on internal data for Zhaopin and quarterly results releases for closest listed competitor (US listed). Average Revenue Per User (ARPU) & Registered Users are | ||
23 | for the Sept-19 quarter | |
2 | Zhaopin compared to its closest listed competitor (US listed). Source Questmobile data | |
3 | Zhaopin FY19 Hirers of 936k, Private Enterprises of 16.2m (source: National Bureau of Statistics, 2017), Online Employers of 5.27m (source: iResearch 2018) | |
4 Global peers include SEEK, CareerBuilder & Stepstone |
…and further penetrating large adjacent market opportunities.
Adjacent Services market opportunity (cA$120b) is 6x larger than Online (cA$20b)
- Online offerings to remain Zhaopin's core focus, however significant opportunity exists from leveraging hirer & candidate relationships and data to grow adjacent revenue streams
- Across both online and adjacent services we have track record of strong revenue CAGRs
Core Operations
Core white-collar | Highend & RPO | |
(junior to mid) | ||
Adjacent Services2
Business
CampusTrainingprocess outsourcing
• Freemium model | |
accelerating hirer | |
penetration in | |
Opportunity | enormous market |
• Roll-out of depth | |
products over time to | |
align price to value |
- Large, highly fragmented offline recruitment process
- Leveraging data & technology expertise from "Core white- collar" to build scalable platform & tech solutions
- Large penetration opportunity in the university segment
- Significant opportunity to migrate services from offline to online
- Significant opportunity in helping assess new entrants to the labour force
- Large education market opportunity with initial focus on online courses in generic skills
- Objective testing for employees currently in the workforce
- Potential to form JVs to help distribute content over time
- Includes labour outsourcing
- Demand being driven by changes to social security and SME's looking to variablise costs and reduce risk
Est Market Size1 | cA$20b combined |
(A$ billion) | |
Revenue growth | -4% combined |
%age of Revenue | 54% combined |
cA$120b combined
109% combined
46% combined
24 | 1 | Source: Management estimates, Analyst reports, CIC, Deloitte (Golden Age of China's Education Industry) |
2 | Assessment Services now included within Campus & Training |
OES is investing to scale multiple partnerships and expand its offerings
Financials
A$m | Growth | ||
Pro-Forma | H1 20 | H1 19 | % |
Revenue (100%) | 65.1 | 61.5 | 6% |
EBITDA (100%) | 18.6 | 20.0 | (7%) |
EBITDA (%) | 29% | 33% |
Results & Insights
Solid revenue result in context of regulatory constraints
- Good growth achieved from new partnerships
- Caps on Commonwealth funding impacting growth in undergraduate
Investing aggressively to support long-term growth
- Scaling up existing partners (QUT, UK partnerships)
- Developing adjacent offerings (e.g. micro-credentials)
- Investing in student experience & Bus Dev (M&A, new partners)
Leveraging online expertise and world class student engagement into new partnerships
- 12k+ students1 across 5 uni partners (AU & UK)
- c5,3002 graduates since inception
- Student satisfaction scores of c89%2
Growth strategy & Outlook
Existing Partners | New Partners | Short courses, |
micro-credentials |
Growth strategy
- Existing partners: Maximise student body within the constraints of funding caps
- New partners: Leverage strong capabilities to scale and pursue new partnerships
- Expand into short courses and micro-credentials
Overall financial impact
- Existing partners will generate stable revenue/earnings growth but overall OES earnings will go backwards in the near-term as we invest to scale new partners and grow adjacent offerings
25 | 1 Total current students: Swinburne Online, WSU, QUT & UK partnerships (Uni of Aberdeen & Uni of Hertfordshire) |
2 Metrics relate to Swinburne Online. Source: QILT Student Experience Survey (SES) data. Student satisfaction scores based on teaching quality & student support |
SEEK Investments owns a portfolio of high growth businesses leveraged to key structural trends
Key structural trends
Large addressable markets1
Strong
Revenue
Growth2
Key Investments
Online Education
Demand driven by structural
changes in the labour market and technology is improving access
A$50b+ globally
14% Look-through revenue growth
Further details at page 27
HR SaaS | Contingent Labour | |
Cloud based solutions are solving | Tech solutions delivering | |
large HR problems more | significant efficiencies in large, | |
effectively and at significant scale | flexible labour pools |
A$2b+ in Australia | A$20b+ across AP&A and Europe |
32% Look-through revenue growth | 95% Look-through revenue growth |
Further details at page 28 | Further details at page 29 |
Portfolio look-through revenue of cA$35m with growth of 30%+ vs PCP3
Strong results (unit economics, revenue, valuation) gives us confidence to aggressively invest
- Details on the Total Addressable Markets (TAM) provided on slides 27 to 29
- "Look-through"share represents revenue of investments multiplied by SEEK's ownership interest (based on comparable ownership interest across H1 19 & H1 20). Online Education excludes Coursera 26 (ownership interest <5%) & OES
- Portfolio revenue of cA$35m is based on net revenue, reflective of underlying economic value. Some Contingent Labour businesses (Sidekicker & jobandtalent) recognise revenue on a gross basis. On a gross basis, portfolio revenue was A$100m+.
Our portfolio of online education businesses are disrupting traditional modes of education delivery
Disruptive logic
Portfolio investments
Levers of growth
Portfolio metrics (aggregate)
Online Program Management
- Helping universities bring their course content online
- Developing rich learning experiences for students who prefer the flexibility of online study
(Australia & UK) | (Latin America) |
- Grow core undergrad course offerings
- Extend core capabilities into:
- Postgrad offerings
- New offerings such as short courses or micro credentials in high demand areas (eg. product, data, AI, etc)
- Invest in student satisfaction / retention / online acquisition
- c40k students / learners
MOOCs & Online Learning
- Providing learners with access to a large scale of career- relevant education (short courses through to degrees)
- Platform solutions enabling education partners to reach new students and deliver their course content online
(UK, Europe & Australia) | (Global) | (Latin America) |
- Grow scope of short-course offerings in high demand skills
- Extend core capabilities into:
- Building pathways from short courses to micro-
credentials to "stackable" degrees (student and enterprise solutions)
- Extending into post grad offerings
- Future Learn is a unique opportunity but requires significant investment to build a market leader
- 55m+ students / learners
- 350+ education partners
- Huge opportunity with Online Education Marketplace given total addressable market of A$50b+1
- Ability to leverage learnings and capabilities across the portfolio
27 | 1 TAM = Enterprise Training opportunity of cA$50B + MOOCs/Online Short Courses/Online Program Management of cA$5B+ |
Source: Internal management analysis supported by external market studies |
Our high quality HR SaaS businesses have the opportunity to be strong market leaders
Investment thesis | Strong growth in portfolio metrics and financial results | |
Disruptive logic
Market Opportunity
Levers of growth
- GO1 is solving significant hirer pain points which are not addressed by legacy learning & education solutions
- Employment Hero is driving efficiencies for SMEs by migrating their critical HR processes from manual processes to an integrated online solution
- JobAdder is leveraging leading technology to simplify the hiring process
Market opportunity is enormous and SEEK brings strong track record and synergies
- Addressable market opportunity of A$2b+1 (AU only) o Scaling offshore will increase TAM
- SEEK can bring huge scale of hirer relationships
Multiple drivers of long-term growth
- Further penetrating existing markets
- Upsell / cross-sell opportunities
- Product set expansion
- Expansion into new geographies
Portfolio investments
Portfolio | • 5k+ customers growing at 30%+ |
metrics | • c90% recurring revenue |
(aggregate) | • Net revenue churn of >100% (e.g. upselling |
more than losing customers)2 | |
• Strong unit economics driven by effective | |
customer acquisition and low churn | |
• Despite strong growth still less than <1% | |
market penetration |
28 | 1 TAM includes: 1) Learning and development platforms (e.g. GO1); 2) SME Human Resource Information Systems (e.g. Employment Hero); and 3) Talent acquisition platforms (e.g. JobAdder) |
Source: Internal management analysis supported by external data | |
2 Metric relates to Go1 and Employment Hero |
Our Contingent Labour platforms are growing strongly and operating in large revenue pools
Investment thesis | ||
Disruptive | • | Tech solutions driving overall effectiveness by |
logic | helping hirers find relevant talent at a faster rate | |
• | Providing hirers with access to on-demand, highly | |
skilled talent for short-term assignments |
Strong growth in portfolio metrics and financial results
• | Net Revenue growth >140% |
• | Completion rates of c80% |
Market Opportunity
- Addressable market opportunity of A$20b1+ across AP&A & Europe
- Contingent labour c25%+ of Australian labour force
SEEK is highly experienced and brings deep synergies
- 22+ years of innovating online and digital experience
- Deep candidate data and relationships
- Strong search & match capabilities
• Net Revenue growth >45% | |
• Completion rates of c80% | |
• Net Revenue growth >100% | |
• | Completion rates of c70% |
• | Net Revenue growth >40% |
Levers of | Multiple drivers of long-term growth |
growth | • Enter new industry verticals |
• Increase depth of offering | |
• Expand into new geographies |
• Paid projects up c20% |
29 1 Source: Internal management analysis supported by external data
Outlook
Original FY20 Guidance (pre impact of Coronavirus)
Based on performance through the first seven months of FY20, SEEK was on track to achieve its original Revenue and EBITDA guidance1 despite several negative short-term external events:
- US-ChinaTrade Tensions: Still feeling residual impact across all markets
- Political unrest in Hong Kong
In regard to SEEK Investments Early Stage Venture losses, due to:
- new investments within SEEK Investments Early Stage Ventures in H1 20 (including jobandtalent); and
- strong momentum in a number of our existing investments giving us confidence to invest more aggressively,
we now expect our FY20 losses from SEEK Early Stage Ventures to become A$55m (above the upper end of previous guidance range of A$45m to A$50m)
This will have a flow through impact on our Reported NPAT expectations
31 1 Guidance provided at the AGM in November 2019, (growth FY20 vs FY19) Revenue of 15 - 18%, EBITDA of 8 - 11% (incl. the benefits of AASB 16)
Coronavirus impacts to FY20 guidance
- Outside of China and Hong Kong, the direct impact of Coronavirus has not been material and performance to date is broadly aligned with our original guidance
- As a result, excluding Zhaopin (China), SEEK does not expect any material change to its FY20 outlook1
- SEEK ANZ & SEEK Asia on track to achieve forecast built into FY20 guidance (as per slide 31) but with more risk for Asia given Coronavirus impact in Hong Kong
- No material changes to all other businesses
- However, the performance could vary depending on direct or secondary impacts of Coronavirus and underlying economic conditions
- Short-termforecasting for Zhaopin is extremely challenging given the material uncertainties in predicting the duration and severity of the impact or "shape of the recovery" from the Coronavirus
- Note, Zhaopin would have comprised c50% of FY20 Group Revenue (prior to Coronavirus)
- Consequently, we cannot reliably update guidance
- However, we can provide an example of how lower billings (which would be the key impact) flow into reduced Revenue, EBITDA and Reported NPAT
- If the following high level assumptions are used (for Zhaopin):
- Mar-20& April-20 billings are 30% lower than originally assumed for current guidance1 (by way of reference Feb-20 billings are 60%+ lower than originally assumed)
- Activity then recovers so that May-20 and June-20 billings are in line with original assumptions1 (with no additional activity compensating for reduced activity from Feb to April-20)
- There is no impact beyond that currently observed in other economies in which SEEK operates (in particular Australia)
then SEEK Group FY20 results could belower than current guidance1 by:
- Revenue A$110-120m
- EBITDA A$40-45m
- Reported NPAT (post tax & NCI) cA$25m
32
1 Refers to managements original FY20 forecasts prior to the outbreak of the Coronavirus (slide 31)
Near-term is likely to remain challenging but we are focused on running the business for the long-term
- Our near-term results are being impacted by Coronavirus and macro conditions
- Despite this, we will retain an investment bias where we prioritise long term value creation over short term earnings
- Some discretionary costs will reduce in line with revenue
- However, we will continue our growth investment through this period as we expect a significant long-termpay-off
- Over time we expect China and the rest of the world to return to more normal conditions, and are confident that our long-term strategy and aspirational targets remain intact
- We are confident that, over time, we will experience stronger economic conditions in our key markets and we remain excited about the future returns across our key strategic priorities:
- ANZ - aligning price to value to create a more equitable marketplace
- Asia - innovation and closer integration with ANZ to help unlock the large Asian market opportunity
- Zhaopin - investment to build market leadership to deliver significant long-term value
- OES - scaling new partners and adjacent education offerings to drive next leg of earnings growth
- ESVs - investing to build SEEK's next generation of high growth businesses
- Executing well against our strategic priorities sets us on the course to achieve our aspirational revenue opportunity of A$5b (in FY25)1
- If we can achieve our aspirational revenue opportunity, we expect SEEK's earnings to be significantly higher
33 | 1 Revenue opportunity is not a budget or target & assumes reasonable macro conditions |
Appendices
SEEK Group: H1 20 Segment Results
H1 20 Segment Results (from Note 1, p16 of SEEK's Half year report 2020)
Segment changes; No changes to total Revenue, EBITDA or NPAT
- Minor changes have been made to SEEK's operating segments for H1 20 to align with Executive responsibilities and analysis of results as provided to the Chief Operating Decision Maker. The main changes are:
- JobAdder moving from AP&A Other to the HR SaaS portfolio within Investments ESVs
- SEEK Learning and GradConnection moving from AP&A Other to ANZ, reflecting their closer integration with the ANZ operations
- OCC Education moving from OCC to the Online Education portfolio within Investments ESVs
- Comparative segment information for H1 19 has been restated (refer slide 36)
35
SEEK Group: H1 19 & FY19 Operating Segment changes (Revenue & EBITDA)
H1 19 | FY19 | |
A$m | H1 19 | Segment | H1 19 |
Reported | changes | Restated | |
Revenue | |||
SEEK ANZ | 221.7 | 0.3 | 222.0 |
SEEK Asia | 84.7 | 84.7 | |
Brasil Online | 30.6 | 30.6 | |
OCC | 14.7 | (1.4) | 13.3 |
AP&A Other | 8.5 | (7.2) | 1.3 |
AP&A | 360.2 | (8.3) | 351.9 |
Zhaopin | 319.0 | 319.0 | |
OES | 61.5 | 61.5 | |
ESVs | 16.5 | 8.3 | 24.8 |
SEEK Investments | 397.0 | 8.3 | 405.3 |
Total Revenue | 757.2 | 0.0 | 757.2 |
EBITDA | |||
SEEK ANZ | 137.5 | (3.3) | 134.2 |
SEEK Asia | 44.6 | 44.6 | |
Brasil Online | 5.3 | 5.3 | |
OCC | 2.5 | 1.0 | 3.5 |
AP&A Other | (13.1) | 3.5 | (9.6) |
AP&A | 176.8 | 1.2 | 178.0 |
Zhaopin | 56.0 | 56.0 | |
OES | 20.0 | 20.0 | |
ESVs | (3.1) | (1.2) | (4.3) |
SEEK Investments | 72.9 | (1.2) | 71.7 |
Corporate Costs | (11.2) | (11.2) | |
Total EBITDA | 238.5 | 0.0 | 238.5 |
A$m | FY19 | Segment | FY19 |
Reported | changes | Restated | |
Revenue | |||
SEEK ANZ | 437.6 | 2.4 | 440.0 |
SEEK Asia | 176.6 | 176.6 | |
Brasil Online | 64.1 | 64.1 | |
OCC | 29.3 | (2.8) | 26.5 |
AP&A Other | 19.2 | (16.7) | 2.5 |
AP&A | 726.8 | (17.1) | 709.7 |
Zhaopin | 647.9 | 647.9 | |
OES | 127.5 | 127.5 | |
ESVs | 35.1 | 17.1 | 52.2 |
SEEK Investments | 810.5 | 17.1 | 827.6 |
Total Revenue | 1,537.3 | 0.0 | 1,537.3 |
EBITDA | |||
SEEK ANZ | 270.1 | (6.3) | 263.8 |
SEEK Asia | 91.3 | 91.3 | |
Brasil Online | 11.5 | 11.5 | |
OCC | 3.7 | 1.3 | 5.0 |
AP&A Other | (25.5) | 7.4 | (18.1) |
AP&A | 351.1 | 2.4 | 353.5 |
Zhaopin | 99.1 | 99.1 | |
OES | 36.7 | 36.7 | |
ESVs | (6.9) | (2.4) | (9.3) |
SEEK Investments | 128.9 | (2.4) | 126.5 |
Corporate Costs | (25.0) | (25.0) | |
Total EBITDA | 455.0 | 0.0 | 455.0 |
Key insights
- Comparative segment information for purposes) to reflect minor changes to
H1 19 has been restated as shown above (FY19 also shown for information SEEK's operating segments in H1 20 (refer slide 35 for details of changes)
36
SEEK Group: AASB 16 Leases
H1 19 Operating lease costs - by Business
FY19 Operating lease costs - by Business
Operating lease costs by business provided above for directional/illustrative purposes only (Note this is not an AASB 16 adjusted position)
Key insights
- New leasing standard (AASB 16) effective 1 July 2019 (FY20) requires:
- Recognition of a right-of-use asset of cA$57m and a lease liability of cA$66m on SEEK's Group Balance Sheet
- Operating lease expenses no longer recognised in EBITDA, and replaced with depreciation and interest expense in the P&L
- FY19 financials are not restated on adoption
- FY20 EBITDA will be positively impacted but minimal impact on FY20 NPAT
37
1 Reflects restated comparative segment information for H1 19 & FY19 based on minor changes to SEEK's operating segments in H1 20
Robust and diversified balance sheet
Net debt breakdown | Key insights | |
• Robust balance sheet with reported net debt of A$895m (Jun-19: A$757m)
• Increase in Group net debt of A$138m (vs Jun-19) mainly driven by:
o Acquisitions in ESV portfolio (mainly Contingent labour) o Increased investment in product & tech
• Increased diversification and flexibility from Subordinated debt issuance and refinance of Syndicated debt facility
38 1 Funds on deposit relates to A$433.5m held as security by Zhaopin lenders which is recognised in 'Trade and other receivables' (A$160.0m) and 'Other financial assets' (A$273.5m) in SEEK's Half year report 2020 for 6 months ended 31 December 2019
Group Capex of A$62m with majority of investment in Product & Tech
SEEK Group Capex | Key Insights | |
Product & Tech:
• AP&A capex of cA$45m mainly relating to:
o Pricing and contract changes in ANZ (refer slide 16 for detail) o Smarter search technology, recommendations & notifications, mobile app enhancements, e-commerce/self service (Asia)
• SEEK Investments capex of cA$12m relating to:
o Zhaopin capex of cA$10m: Mobile app enhancements, search & AI improvements, adjacent services (incl Highpin & Campus)
o OES capex of cA$2m: integration of new partners onto the OES platform and software to support course delivery
Property, Plant & Equipment (PPE):
• Relates to office fit outs (mainly Zhaopin)
Expect Capex to increase in FY20 due to:
• Continued reinvestment in product and tech evolution particularly across big 3 businesses (ANZ, SEEK Asia & Zhaopin)
P&L impact
- Depreciation & amortisation
- Assets amortised over an average of 3-5 years
- Expect D&A expense to increase over time reflecting higher Capex
- PPA Amortisation
- Purchase Price Amortisation (PPA) for existing businesses to reduce over time
- PPA expense (pre tax & NCI), expected to be cA$9m in FY20, cA$7m in FY21, cA$2m in FY22 and negligible thereafter
39
AP&A - Key Operating Metrics
SEEK ANZ | SEEK Asia | Brasil (Catho) | |||
Visits (m)2 | |||||
H1 20 monthly average | 35m+ | c46m | c7m |
Job ads (#)3
H1 20 monthly average | c175k | c240k | c150k |
Hirers (#)4
H1 20 monthly average | c36k | c42k | c6k |
Profiles (m)5
As at 31 Dec 2019 | 10m+ | 20m+ | 8m+ |
1 Jora is included in AP&A Other. It has a presence in 36 countries and is SEEK's second brand in key markets
2 SEEK ANZ, SEEK Asia & OCC: total visits including desktop, mobile & app. Brasil: unique visits including desktop & mobile
40 | 3 Total number of job ads on platform |
4 Number of active advertisers (posting any job ads) | |
5 Number of searchable profiles in database |
c18mc14m
c90kc7m
c8kn/a
c6mn/a
Zhaopin - Key Operating Metrics
No. of Completed Resumes (m) - as of period end
Average Daily Unique Visitors (m)
Unique Online Customers ('000)
Average Revenue per Online Customer (RMB)
41
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 particular you are cautioned not to place undue reliance on any forward looking statements regarding our belief, intent or expectations with respect to SEEK's businesses, market conditions and/or results of operations, as although due care has been used in the preparation of such statements, actual results may vary in a material manner.
Information in this presentation, including forecast financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice.
Non-IFRS Financial Information
SEEK's results are reported under International Financial Reporting Standards (IFRS). This presentation also includes certain
non-IFRS measures including, "Underlying NPAT", "EBITDA". "Significant items" and "pro-forma". These measures are used
internally by management to assess the performance of our business, our Associates and Joint Ventures, make decisions on the allocation of our resources and assess operational management. Non-IFRS measures have not been subject to audit or review.
Refer to SEEK's Appendix 4D and Half year report 2020 for the 6 months ended 31 December 2019 for IFRS financial information that is presented in accordance with all relevant accounting standards.
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Seek Limited published this content on 25 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 February 2020 00:08:02 UTC