SEEK
ANNUAL
REPORT
2021
We help people live more fulfilling and productive
working lives and help organisations succeed
WE HELP PEOPLE LIVE MORE FULFILLING
AND PRODUCTIVE WORKING LIVES AND
HELP ORGANISATIONS SUCCEED
SEEK Continuing Operations
A market leader in online
employment marketplaces with
deep and rich insights into the
future of work
A global presence including
Australia, New Zealand, Hong Kong,
South-East Asia, Brazil & Mexico.
In addition, SEEK has minority
investments in China, Korea and a
number of other countries
Leveraging data and technology
to create innovative solutions for
candidates and hirers
Employing 3,000+ people across
Australia, New Zealand, Asia and
Latin America
Creating a culture of innovation,
empowerment and collaboration
Australian listed with headquarters in
Melbourne, Victoria
Approximately
50m
Candidate relationships
Approximately
300k
Hirer relationships
Approximately
900m
Population exposure
Continuing Operations
Continuing Operations includes SEEK’s Asia Pacific and
Americas businesses and select Early Stage Ventures (ESVs)
that will continue to be owned by SEEK under the new structure
announced in August 2021. SEEK also holds a minority interest
of 23.5% in Zhaopin which is not included in the metrics above.
SEEK Growth Fund
The SEEK Growth Fund (the Fund) is a newly created unit trust
in which SEEK is expected to hold c84.5%(1) of the units after
the first capital round is completed. As announced in August
2021, the Fund will be seeded with SEEK’s interest in Online
Education Services and the majority of SEEK’s existing ESV
portfolio including investments across the key themes of Online
Education, HR SaaS and Contingent Labour. These are not
included in the metrics above.
(1) Based on a A$1,215m portfolio valuation of the SEEK seeded assets and completion of the
transfer of those assets plus A$200m of SEEK capital divided by A$1,215m portfolio valuation
plus A$200m SEEK capital plus A$260m external capital. Ownership interest of c84.5% assumes
all committed capital is fully drawn.
SEEK is implementing a new corporate structure to enable greater
focus on the growth opportunities within its core online employment
businesses whilst retaining economic exposure to the SEEK Growth
Fund and Zhaopin.
SEEK
SEEK Growth Fund
Online Education
HR Saas
Contingent Labour
(1)
(2)
(3)
Zhaopin
Formerly Caelum
Further information on SEEK’s new structure, including the creation of the SEEK Growth Fund is provided on pages 6 to 7.
(1) SEEK acquired a 100% interest in Sourcr in August 2021.
(2) SEEK acquired a 10% interest in JobKorea in August 2021.
(3) SEEK retains 23.5% equity accounted investment in Zhaopin.
ii
ii
SEEK Limited Annual Report 2021
ACKNOWLEDGEMENT
OF COUNTRY
SEEK respectfully acknowledges the Traditional
Owners of the land on which it operates.
We acknowledge Aboriginal and Torres Strait
Islander peoples as Australia’s First Peoples,
paying respects to their rich cultures, to their
Elders past, present and future, and their
continuing custodianship of the land, waterways
and community on which we all rely. We extend
that respect to all Aboriginal and Torres Strait
Islander peoples.
We recognise and value the ongoing contribution
of Aboriginal and Torres Strait Islander people
and communities to Australian life and how this
enriches us.
This report covers SEEK Limited as a consolidated entity
consisting of SEEK Limited and its controlled entities
(the Company or SEEK). The Financial Report was
authorised for issue by the directors on 24 August 2021.
The Company has the power to amend and reissue the
Financial Report.
SEEK Limited is a company limited by shares,
incorporated and domiciled in Australia. Its registered
principal place of business is:
60 Cremorne Street
Cremorne VIC 3121
AUSTRALIA
A description of the nature of the consolidated entity’s
operations and its principal activities is included in
the review of operations and activities in the Directors’
Report on pages 4 to 40.
Through the use of the internet, we have ensured
that our corporate reporting is timely, complete and
available globally at minimum cost to the Company. All
ASX Announcements, reports, presentations and other
information are available at our Investor Centre on our
website at www.seek.com.au/about/investors/.
SEEK Limited Annual Report 2021 CONTENTS
Message from the Chairman & CEO
Directors’ Report
Letter from Remuneration Committee Chairman
Remuneration Report
Auditor’s Independence Declaration
Sustainability Report
Corporate Governance Statement
Financial Report
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Five Year Financial Summary
Corporate Directory
iii
iii
iv
4
23
25
41
42
73
81
146
147
154
156
IBC
Contents iv
iv
MESSAGE FROM THE
CHAIRMAN & CEO
SEEK Limited Annual Report 2021 v
v
Dear Shareholder,
Wherever you are reading this it is likely that you are still living with some restrictions due to the
COVID-19 pandemic. We hope that you are safe and well.
Response to COVID-19
Strategic review of SEEK
Across the range of countries in which SEEK does business, the
pandemic made the 2021 financial year the most volatile in the
company’s history. As we navigated the associated economic
and social challenges, we benefitted from the strong foundations
we have built over years of focusing on long-term value
creation and culture. Even as revenue plummeted during the
first months of the pandemic, SEEK’s board and management
maintained our long-term commitment to prioritise the needs
of our people. Initially, at the end of the 2020 financial year,
this meant setting up all our people to work from home ahead
of government shutdowns, and committing to no reductions
in full-time staff numbers, no pay-cuts and no reduced hours.
Subsequently, we focused on helping our people deal with the
ongoing uncertainties of lockdowns. In some countries, we
also helped employees and their families who became ill with
COVID-19 access adequate healthcare and vaccinations. In
Indonesia for example we have sourced and paid for vaccines
for all our staff, in accordance with arrangements encouraged by
the government.
Commitment to our people and strategic priorities
We took these steps because they were the right thing to do
for our people and for the long-term strength of the company,
even though we knew they would impact short-term profitability.
Our commitment to our people led to strong ongoing employee
engagement. In Australia SEEK won the Australian Financial
Review’s award for Best Place to Work in 2021. And in Asia we
saw the biggest lift we have ever seen in our engagement survey.
This high engagement, in turn, led to continuing progress on our
long-term strategic priorities. Despite the disruptions of the year
we maintained our momentum in bringing innovative products
to market, completed the roll-out of the biggest ever change to
our contract structure in Australia, commenced a bold project
to strengthen our competitiveness through the unification of
our product and technology platforms across Australia, New
Zealand and South-East Asia and made tangible progress on a
variety of long-term sustainability priorities. On top of all that we
announced (and subsequently completed) a strategic review of
the SEEK Investments business, reduced our stake in Zhaopin,
and completed a successful internal CEO succession, which is
commented upon further in the Chairman’s comments below.
The strategic review of SEEK Investments was undertaken by
the Board to assess options to provide greater independence to
SEEK’s Asia Pacific & Americas (AP&A) and SEEK Investments
businesses. In early August, we announced the results of that
review, which included the formation of the SEEK Growth Fund.
The Fund will comprise most of SEEK’s Early Stage Ventures, as
well as Online Education Services. The Fund will be independent
of SEEK and will be managed by Andrew Bassat and the
SEEK Investments team through a management company.
Recognising the potential for a conflict of interest given Andrew’s
involvement in the Fund, the review was led by an independent
committee of the Board, comprising three Non-Executive
Directors. The committee received extensive independent
advice on all aspects of the review and the formation of the
Fund, including the valuation of the relevant assets, and the
fees payable by SEEK to the management company, which are
lower than usual market rates, and lower than the rates payable
by other investors in the Fund. Your Board is confident that
the independence of this new structure, and the alignment of
interests between investors and the management team, will
accelerate the value creation in the early stage ventures. We are
pleased to maintain a high level of economic exposure to the
Fund, and have the right but not the obligation to invest in future
capital raisings. In practice, we expect our ownership stake to be
diluted over time, as the Fund raises more capital.
Selldown of Zhaopin
The decision to reduce our stake in Zhaopin from 61.1%
(undiluted) to 23.5% (fully diluted) resulted from a combination
of factors. First, we were aware of significant investor interest in
the asset that led to an attractive value realisation opportunity.
Second, the incoming investors have significant experience in
doing business in China and will be able to add capability to
support the next wave of Zhaopin’s growth. Third, your Board felt
that the residual exposure provided a better risk/reward balance
for SEEK, recognising that the business still has significant
upside potential, but that over time it has grown as a proportion
of SEEK’s overall portfolio.
Message from the Chairman & CEO vi
vi
Continued focus on AP&A
The separation of SEEK Investments and the selldown of
the Zhaopin stake allow for greater focus on our core AP&A
business. We remain positive about its growth prospects. The
combination of underlying economic growth and offline to online
migration in Asia, the opportunity to enrich and expand products
through unique data, and alignment of our pricing to the value
we create gives us an opportunity to double revenue in our
core businesses over the next five years, if we execute well and
markets are stable.
We will need to continue to invest heavily to compete
successfully against the large global platforms that are our
primary competitors, and are committed to doing so. However,
with the business’s strong cashflow generation, and the healthy
state of our balance sheet, we believe that we can make the
necessary investment in our platforms, brand and data and
pricing capability and still achieve positive operating leverage.
This will in turn provide the opportunity to pay dividends. We
have updated our dividend policy and are now targeting a payout
of 75% of cash net profit after tax less capital expenditure. We
will continue to prioritise the investment needed for the long-
term health of our business. But as long as economic conditions
are reasonable, we aim to provide a consistent dividend to
shareholders. After deferring the determination of an interim
dividend during the financial year due to the uncertainties of the
economic environment, we announced a fully franked dividend of
20 cents per share in May following completion of the Zhaopin
sell-down, and a fully franked final dividend of a further 20 cents
per share with our annual results.
Our short-term results will always be dependent on economic
conditions, and the 2021 financial year showed us both
extremes. The first quarter was weak – volumes in our ANZ
business in July 2020 were more than 30% lower than in July
2019. Nine months later, they were at all-time highs. Due to the
separation of the AP&A business from our SEEK Investments
business, our results for the financial year were split into
“continuing operations” (primarily consisting of the AP&A
business, our remaining 23.5% interest in Zhaopin, and also
including a small number of early stage ventures that SEEK will
retain) and “discontinued operations” (being OES, the majority of
the early stage ventures, and Zhaopin’s results for the 10 months
to 30 April 2021). Relative to the 2020 financial year, revenue
in our continuing operations grew 17%, and EBITDA grew 30%.
Revenue and EBITDA in our discontinued operations declined
10% and 9% respectively relative to the 2020 financial year, due
largely to the accounting treatment of Zhaopin following the
sell-down of our stake. OES and our investments in early-stage
ventures performed very well. The faster than expected recovery
in our business led us to repay all government subsidies we had
received in Australia and New Zealand during the early part of the
financial year, including $9.6m in JobKeeper payments from the
Australian government.
Additional comments from the Chairman
Board renewal
Our ongoing focus on board performance and renewal led to the
appointment of Linda Kristjanson AO to the board in October
2020. Linda is a leading figure in the education sector, with
an academic career spanning four decades across Australia,
Canada and the United States. Most recently she was Vice-
Chancellor and President of Swinburne University of Technology
from May 2011 until August 2020. She has already contributed a
great deal to board discussions on a range of topics.
Looking forward
As we all know, the path ahead remains unpredictable. When we
released our financial results in August, we felt it important to
provide some guidance as to our expected performance for the
current financial year. That guidance was based on a number of
assumptions, each of which could have a material impact. These
include the extent of lockdown restrictions across ten markets,
the speed and nature of ongoing economic recovery, the level of
small business activity (which is particularly relevant for yield)
and our ability to source the resource we need to achieve our
ambitious investment goals during the year. We will provide an
update on how our business is tracking relative to our guidance
at the upcoming annual general meeting. One thing that is certain
is our ongoing commitment to our people and to long term value
creation. We have made clear that even if our revenue growth is
below the level we assume, we will continue to invest in building
long-term capability, even if that means lower short-term profit.
Thank you to everyone who makes SEEK a success
We thank all our shareholders for your ongoing support. We also
thank millions of job seekers, students and hirers throughout
Australasia, Asia and Latin American for the trust they place in
our products and services. Finally, and most importantly, we
thank SEEK’s people. Their ongoing commitment to SEEK’s
purpose, through difficult personal circumstances, has led to
another successful year for our business, and positioned us well
for the growth opportunities ahead.
Graham Goldsmith
Chairman
Ian Narev
CEO
Further comments from the Chairman on CEO succession
The announcement that Andrew Bassat would retire as SEEK’s
CEO was momentous for SEEK. As you are all well aware, Andrew
co-founded SEEK, and has since become one of the most
widely admired leaders in corporate Australia. Within SEEK he is
revered at all levels for his values, the culture he has created, his
entrepreneurial flair and his passion and commitment to making
SEEK as successful as it can possibly be. The succession of a
founder, particularly one of Andrew’s capability and popularity,
requires a great deal of care. We are pleased at how well this
internal succession has been executed. Beyond his track record
as a CEO prior to SEEK, Ian Narev has become well known to, and
trusted by, SEEK’s people. His ascension to the CEO role after
two years of working in partnership with Andrew in running the
AP&A business was seen as logical and unsurprising. Moreover,
all of us are delighted that Andrew will continue to add value
to SEEK, both as a non-executive director, and as the inaugural
Executive Chairman of the SEEK Growth Fund.
SEEK Limited Annual Report 2021 vii
vii
Message from the Chairman & CEO 2
OUR PURPOSE:
We help people
live more fulfilling
and productive
working lives and
help organisations
succeed.
IMAGE RIGHT
Pictured: Lumi Shrestha and Lydia Wang.
‘The part of our purpose to help people live more fulfilling and
productive working lives is reflected in the way SEEK treats its own
people – with care for their feelings, future goals and ambitions.’
- Lydia Wang, Developer at SEEK
SEEK Limited Annual Report 2021
3
Directors’ Report 4
DIRECTORS’ REPORT
Your directors present their report on the consolidated entity
consisting of SEEK Limited and the entities it controlled at
the end of, or during, the year ended 30 June 2021 (referred
to as 'the Company' or 'SEEK').
SEEK is having an impact
improving people’s lives
across employment and
education
Principal
activities
During the year the principal activities of SEEK
consisted of:
SEEK Continuing Operations(1)
online matching of hirers and candidates with
career opportunities and other related services;
investing in early stage businesses and
technologies in the human capital management
market; and
distribution and provision of higher
education courses.
Approximately
50m
Candidate relationships
Approximately
300k
Hirer relationships
Approximately
900m
Population exposure
(1) Continuing Operations includes SEEK’s Asia Pacific & Americas businesses and
select Early Stage Ventures that will continued to be owned by SEEK under the new
structure that is discussed further in this Report.
SEEK Limited Annual Report 2021 5
Business strategies and prospects
SEEK’s evolution
Focus on Australia and New Zealand (ANZ)
online marketplace
Founded in Melbourne, Australia in 1997, as a disruptive
online employment marketplace, SEEK leveraged the
increased access and usage of internet, data and technology
to build a low cost and highly effective online employment
marketplace. SEEK’s ANZ online marketplace has evolved
over the years and continues to be a market leader on
key metrics such as monthly visits, brand awareness and
placement share.
Expansion into international online
marketplaces and education
SEEK’s international employment marketplace and education
expansion commenced in 2005, with the focus being on
acquiring and operating international online employment
marketplaces, and leveraging SEEK’s online employment
assets and capabilities into adjacent education businesses.
SEEK has been successful in growing its footprint and
creating value mainly via M&A and strategic support as
well as incubating new businesses such as Online Education
Services (OES) which is now a market leader
in online higher education.
Product and technology focus
SEEK has evolved its online employment marketplaces over
time with an increased focus on using data and technology
to deliver the most effective search and matching experience
and outcomes for candidates and hirers.
Investment in artificial intelligence and technology, coupled
with SEEK’s strategic assets that include deep relationships,
unique data and strong brand, has enabled the creation of
innovative products that connect candidates with highly
relevant and personalised job opportunities and help hirers
find candidates and streamline their recruitment process in a
more efficient manner.
SEEK continuously invests and innovates to deliver long-term shareholder value
c7x TSR vs ASX 200 since IPO despite the economic cycle and aggressive competition
3
Product & Tech
Evolution
1,781.3%
2
M&A led growth
(Int’l & Education)
1
ANZ led
growth
Apr-2005
Jan-2008
Sep-2010
Jun-2013
Feb-2016
Nov-2018
Aug-2021
273.2%
Directors’ Report 6
Business strategies and prospects continued
Creation of AP&A and SEEK Investments divisions
Since 2018, SEEK has been structured into two main divisions, Asia Pacific and Americas (AP&A) and SEEK Investments. Under
this structure, AP&A has focussed on operating and innovating online employment marketplaces and SEEK Investments has
focussed on investing and scaling early stage businesses across the themes of Online Education, Contingent Labour and HR
Software as a Service (HR SaaS). The divisions comprise of the following:
• AP&A - comprises online employment marketplaces in Australia and New Zealand, Hong Kong, South East Asia, Brazil and Mexico
• SEEK Investments - comprises Zhaopin, OES and Early Stage Ventures (ESVs) across the key themes of Online Education,
Contingent Labour and HR SaaS
Creation of the new structure to create greater autonomy
In February 2021, SEEK announced its intention to implement changes to provide a greater degree of independence between
the AP&A and SEEK Investments businesses. In August 2021 SEEK announced a new structure had been created including the
establishment of a new unit trust, referred to as the ‘SEEK Growth Fund’ (the Fund).
SEEK will transfer its holdings in OES and 14 ESVs to the Fund as seed assets (being the majority of SEEK Investments’ existing
ESV portfolio) in exchange for units in the Fund.
Overview of the new structure
SEEK
SEEK will comprise the core AP&A businesses, and certain portfolio investments, primarily Zhaopin (23.5% interest) and SEEK’s
interest in the Fund. SEEK will be led by Ian Narev (as Managing Director (MD) and Chief Executive Officer (CEO) of SEEK) and
current members of the AP&A Executive team.
The new structure is intended to achieve the following business outcomes for SEEK:
• Enables sharper focus on the significant growth opportunities within SEEK’s core businesses;
• Generates strong cash flows from these businesses, which will enable ongoing reinvestment in building competitive capability
whilst allowing for payment of dividends; and
• Provides SEEK with the option, but not the obligation to commit further capital to the Fund.
SEEK Investments
The Fund will be managed by SEEK Investments, an independent management company. The management team will comprise
SEEK’s Co-Founder and former MD and CEO, Andrew Bassat, and the existing team transferring from the legacy SEEK
Investments business. The Fund will own SEEK’s interests in OES and 14 ESVs.
The new structure is intended to achieve the following business outcomes for SEEK Investments:
• Allows it to focus on being an investor and business builder, partnering with emerging leaders to deliver strong long-term returns;
• Facilitates greater access to capital that can be used to support both existing and new investments; and
• Delivers greater independence to enable aggressive long-term investment decisions.
SEEK Limited Annual Report 2021 7
Growth strategies over the medium- to long-term
The new structure enables SEEK to focus on capturing the significant growth opportunities in its core online employment businesses
and investing in its key capabilities.
SEEK’s growth drivers
Significant growth opportunities in our core businesses
(ANZ and Asia)
Organic growth the focus,
but will consider M&A
Underlying
economic growth
and offline to online
migration (Asia)
Enrichment and
expansion of
products including
through
unique data
Aligning price
to the value
we create
M&A to
enhance
capabilities and/or
create options in
new revenue
pools
SEEK has the opportunity to double revenue in its core
business over the next 5 years
(if it executes well and markets are stable)
SEEK’s strategic focus areas
SEEK Investments strategy
In order to capture the significant growth opportunities, SEEK is
focussed on investing in four core capabilities:
SEEK will continue to have an economic interest in SEEK
Investments via the Fund. SEEK Investments is focussed on:
Investing in high growth Human Capital Management (HCM)
businesses
Investing in emerging businesses across the key themes of
Online Education, Contingent Labour and HR SaaS. Wide global
reach with the Fund's current portfolio while also maintaining
the flexibility to invest in businesses at different stages of their
evolution (e.g. seed, scaling up).
Creating value through active partnerships
Working with businesses to provide strategic advice at Founder/
CEO level and supporting management teams on their key
strategic initiatives and all aspects of business building including
strategic planning and operational execution.
Long term and entrepreneurial approach to building big
businesses
Prioritising building long-term sustainable competitive advantage
over short-term financials with a preference to hold for the long-
term and appetite to incur significant upfront losses. Open to
value realisation where it aligns with the strategic objectives of
the business.
1. Scalable, reliable and safe platforms
Building a unified flexible platform across Asia-Pacific to provide
scale efficiencies, enable rapid innovation and improve reliability
and security.
2. Strong brand presence
Maintaining the strength of the SEEK brand in Australia and New
Zealand. Reinvigorating the brands in Asia to increase candidate
reach and attention through brand building initiatives and adding
sales capability in Indonesia.
3. Data capture, analysis and application
Using structured and unstructured data to continuously add
intelligence to the platform. Scale of data combined with
local expertise to be used to create a range of products and
personalised experiences including tools that add trust and
confidence to claims made by hirers and candidates.
4. Pricing to reflect value
Ensuring that pricing models better align with the value we create,
and provide hirers with a greater range of tools and insights to
maximise their return on investment with SEEK (for example, via
the new variable pricing model in Australia and New Zealand).
Focus on investing in organic capability building, although there
is also an appetite for targeted inorganic growth to enhance
capabilities and/or access to new revenue pools. Continue to
benefit from close ongoing ties with SEEK Investments through
the Fund. Expectation for strong revenue growth and increased
operating leverage over time, provided SEEK executes well.
Directors’ Report 8
SEEK Limited Annual Report 2021
OUR VISION:
To be the best in
the world in online
employment by:
matching more people with job
opportunities than any other
organisation in each market in
which we operate; AND
being the most trusted
partner for advice on, and
access to, relevant career
related education.
Review of results and operations
Sales revenue from Continuing Operations
Sales revenue from Discontinued Operations
Total sales revenue
EBITDA from Continuing Operations
EBITDA from Discontinued Operations
Total segment EBITDA(3)
Reported profit/(loss) from Continuing Operations
Reported profit from Discontinued Operations
Total reported profit/(loss) attributable to owners of SEEK Limited
(Excluding)/Add back significant items
Total profit attributable to owners of SEEK Limited (excluding significant items)
9
Reported currency
Constant
currency(2)
2021
$m
760.3
830.8
1,591.1
332.0
141.6
473.6
104.9
647.3
752.2
(611.4)
140.8
Restated
2020(1)
$m
650.6
926.8
1,577.4
255.1
155.5
410.6
(121.2)
8.1
(113.1)
202.0
88.9
Growth
%
Growth
%
21%
(7%)
5%
33%
(6%)
18%
17%
(10%)
1%
30%
(9%)
15%
n/m
58%
(1) Comparative information has been restated for Discontinued Operations and a change in accounting policy (refer to Note 2 Discontinued operations and Note 29 Changes in accounting policies
respectively in the Financial Statements for more information).
(2) Constant currency amounts are calculated by retranslating current year data using prior year exchange rates.
(3) Segment EBITDA is earnings before interest, tax, depreciation and amortisation and excludes impairment charges, share-based payment expense, share of results of equity accounted
investments, gains/losses on investing activities, and other non-operating gains/losses.
Changes to presentation of Results
As discussed in the ‘Business Strategies and Prospects’ section,
SEEK has announced the creation of the SEEK Growth Fund
following the completion of a strategic review, which will operate
autonomously, with a focus on being an investor and business
builder with greater access to third party capital. Additionally,
during FY2021 SEEK sold 37.6% of the equity of Zhaopin, the
results of which have been deconsolidated from 30 April 2021.
For statutory reporting purposes, these two events require that
SEEK’s results are presented on a Continuing Operations basis.
Continuing and Discontinued Operations
To aid in the understanding of SEEK’s overall financial
performance, the table above presents the results for Continuing
Operations, Discontinued Operations and in aggregate for both
FY2021 and the restated FY2020.
Continuing Operations comprises the results of:
• SEEK’s AP&A businesses and select portfolio investments
that will continue to be owned by SEEK under the new
structure; and
• SEEK’s share of net profit after tax from the 23.5% retained
interest in the equity accounted investment now held in
Zhaopin for May and June 2021, for which there is no
comparative information.
Discontinued Operations, as detailed in Note 2 Discontinued
operations in the Financial Statements, comprises the results of:
• Zhaopin for the ten months to 30 April 2021, including the
gain on disposal, and for the 12 months in FY2020; and
• Assets which will transfer to the Fund, including OES and a
suite of ESVs.
The commentary that follows has been prepared on
an aggregated basis. Commentary for Continuing and
Discontinued Operations separately can be found on pages
10-11 and 12-13, respectively.
SEEK aggregated Result
In the year ended 30 June 2021 SEEK achieved growth in sales
revenue of 1% (5% constant currency) and EBITDA growth of
15% (18% constant currency) compared to the year ended
30 June 2020.
Profit attributable to the owners of SEEK Limited was $752.2m
(30 June 2020 restated: loss of $113.1m).
Significant items
FY2021 significant items of $611.4m include the following:
• Gain on sale of the sell down of SEEK’s controlling interest in
Zhaopin of $628.9m post-tax; and
• Gains on changes in ownership of certain investments of
$98.6m post-tax; offset by:
• Deferred income tax with respect to SEEK’s future interest
in the SEEK Growth Fund of $75.2m;
•
Impairment charges against the carrying values of Brasil
Online and Workabroad of $33.6m post-tax; and
• Transaction costs relating to the structural separation
between SEEK and SEEK Growth Fund of $7.3m post-tax.
Amounts recognised as significant items in FY2020 comprised
of impairment charges relating to Brasil Online, OCC and minority
investments of $198.4m post-tax and refinancing related costs of
$3.6m post-tax.
Key drivers
• Revenue growth of 1% was driven by Continuing Operations,
up 17% compared to FY2020, led by a strong recovery from
ANZ, with SEEK Asia also recovering but at a slower rate. The
growth was partly offset by Discontinued Operations, down
10% compared to FY2020, driven by lower Zhaopin revenue
due to deconsolidation.
• EBITDA increased 15%, or 17% before impacts of the cloud
computing accounting policy change. Continuing Operations
EBITDA grew 30%, driven by the recovery in revenue and
operating efficiences whilst Discontinued Operations EBITDA
decreased 9% mainly due to the deconsolidation of Zhaopin.
Significant investment continued in strategic areas across
all businesses.
• Attributable profit (excluding significant items) for FY2021
improved by 58% to $140.8m, benefitting from higher EBITDA
and lower net interest, offset partly by higher depreciation and
amortisation due to product and technology investment and
leasing costs.
Directors’ Report 10
Continuing Operations(1)
Continuing Operations comprise:
The Australia
and New Zealand
(ANZ) business
SEEK Asia
Sales revenue - Continuing Operations
Asia Pacific and Americas
ANZ
SEEK Asia
Brasil Online
OCC
AP&A Other
Portfolio Investments
ESVs(3)
EBITDA(4) - Continuing Operations
Asia Pacific and Americas
ANZ
SEEK Asia
Brasil Online
OCC
AP&A Other
Corporate costs
Portfolio Investments
ESVs(3)
EBITDA margin (%) - Continuing Operations
Asia Pacific and Americas
ANZ
SEEK Asia
Brasil Online
OCC
Portfolio Investments
ESVs(3)
The Latin
America
businesses of
Brasil Online
and OCC
Other entities
including Jora and
ESVs (including
JobAdder)
Constant
currency(2)
Growth
%
21%
40%
(2%)
(21%)
(13%)
(40%)
10%
33%
47%
(27%)
n/m
(60%)
34%
21%
(9%)
Growth
%
17%
40%
(11%)
(42%)
(24%)
(40%)
9%
30%
46%
(35%)
n/m
(67%)
34%
21%
(8%)
Reported currency
2021
$m
760.3
541.0
145.6
30.5
19.2
1.2
22.8
332.0
322.9
47.4
(1.1)
2.4
(9.5)
(26.0)
(4.1)
44%
60%
33%
(4%)
13%
2020
$m
650.6
387.2
162.9
52.4
25.1
2.0
21.0
255.1
220.5
72.8
5.8
7.2
(14.3)
(33.1)
(3.8)
39%
57%
45%
11%
29%
(18%)
(18%)
(1) Refer to Note 1 Segment information in the Financial Report for further details on the distinction between Continuing and Discontinued Operations.
(2) Constant currency amounts are calculated by retranslating current year data using prior year exchange rates.
(3)
Includes ESVs that will be retained by SEEK under the new structure and managed by SEEK Investments (e.g. JobAdder), and that have been reported under Portfolio Investments in Note 1
Segment information in the Financial Report.
(4) Comparative information has been restated for a change in accounting policy (refer to Note 29 Changes in accounting policies in the Financial Report for more information).
Continuing Operations revenue growth of 17% and EBITDA growth of 30% compared to FY2020 were driven by the following:
• ANZ: revenue growth of 40% driven by strong recovery from COVID-19 in H2 FY2021, peaking in March 2021 at record ad volumes;
• SEEK Asia: strong recovery in Singapore, Hong Kong and Malaysia, however other markets remained weaker; and
• Latin America: weak results with COVID-19 continuing to have a significant economic impact. There were signs of recovery in OCC
in H2 FY2021.
• Reported results were negatively impacted by the appreciation of the Australian dollar against key currencies, including the Hong
Kong Dollar and the Malaysian Ringgit. On a constant currency basis, revenue from Continuing Operations increased 21% and
EBITDA increased 33% compared to FY2020.
SEEK Limited Annual Report 2021 11
Australia and New Zealand (ANZ)
• ANZ recovered well from the COVID-19 lows of FY2020 with
Latin America
• Financial results in Brasil Online and OCC remained
weak with COVID-19 severely impacting the Brazilian and
Mexican economies.
• Despite the economic impacts, OCC saw recovering
volumes in H2 FY2021 (relative to H1 FY2021) that were
complemented by a new rate card and higher depth revenue.
• Given the severe economic headwinds in Brazil and execution
risk associated with the roll-out of a new business model in
this market, an aggregate non-cash impairment charge of
$19.5m post-tax has been recognised to bring the carrying
value of Brasil Online indefinite life intangibles down to $nil,
and to write down the carrying value of certain software and
website intangibles.
• Both businesses are leveraged to the eventual improvement
in macro conditions, but this will take time and require
successful execution of their strategies.
AP&A Other and ESVs
AP&A Other and ESVs comprises early stage investments that
complement and/or have synergies with the AP&A operating
businesses, including:
• Jora, which is playing a key role in growing ad scale and
supporting new product development, and now has a
presence in 36 countries; and
• JobAdder, a talent acquisition suite that simplifies the hiring
process for recruiter and corporate talent acquisition teams.
revenue growth of 40% and EBITDA growth of 46%.
• The recovery accelerated in early H2 FY2021, with ad volumes
exceeding pre COVID-19 levels in March 2021. Hiring activity
from Small to Medium Enterprises (SMEs) was strong, with
improving trends also observed across Corporates and
Recruiters during H2 FY2021. Depth revenue grew 58% on
FY2020 and now comprises 32% of total revenue.
• EBITDA margins expanded to 60% (62% before impacts of
the cloud computing accounting policy change) benefitting
from higher revenue, whilst targeted investment continued in
product and technology, analytics, architecture, security and
user experience.
SEEK continues to be a market leader on key metrics despite
strong competition.
Key strategic priorities progressed well including:
• The roll-out of SEEK’s new pricing model and contract
structure to all remaining Australian customers during early
FY2021 and the launch in New Zealand in March 2021;
• Expansion and enhancement of our product suite to optimise
value for our candidates and hirers.
SEEK Asia
• On a constant currency basis, SEEK Asia revenue declined 2%
and EBITDA declined 27% compared to FY2020.
• Revenue recovery varied by market, with stronger trends in
Singapore, Hong Kong and Malaysia, whilst other markets
were weaker reflecting a slower recovery from the impacts
of COVID-19. Uptake of depth products continued to improve
and now comprises 19% of total revenue.
• EBITDA was impacted by lower revenue and an increase
in investment across product and technology, and
also in marketing as part of a brand refresh to drive
improved awareness.
Directors’ Report 12
Discontinued Operations(1)
Discontinued Operations comprise:
Zhaopin
OES
ESVs
Consolidated operations
to 30 April 2021
(61.1% controlling interest)
80% controlling interest
Controlled entities and equity accounted
investments
Sales revenue - Discontinued Operations
Zhaopin(3)
OES
ESVs(4)
EBITDA - Discontinued Operations
Zhaopin(3)
OES
ESVs(4)
EBITDA margin (%) - Discontinued Operations
Zhaopin(3)
OES
ESVs(4)
Reported currency
Constant
currency(2)
Growth
%
Growth
%
(10%)
(23%)
40%
55%
(9%)
(20%)
31%
13%
(7%)
(19%)
40%
55%
(6%)
(17%)
31%
13%
2021
$m
830.8
577.1
190.7
63.0
141.6
98.7
45.5
(2.6)
17%
17%
24%
(4%)
2020
$m
926.8
749.6
136.6
40.6
155.5
123.7
34.8
(3.0)
17%
17%
25%
(7%)
(1) Refer to Note 1 Segment information in the Financial Report for further details on the distinction between Continuing and Discontinued Operations.
(2) Constant currency amounts are calculated by retranslating current year data using prior year exchange rates.
(3) SEEK disposed of 37.6% of the equity of Zhaopin on 30 April 2021. The above revenue and EBITDA represent the results for the ten months in FY2021 and the 12 months in FY2020 that Zhaopin was
consolidated as a subsidiary. From 1 May 2021, the remaining 23.5% stake in Zhaopin is accounted for in Continuing Operations as an equity accounted investment.
(4) Relates to controlled ESVs that will be transferred to the SEEK Growth Fund. The results from equity accounted ESVs that will be transferred to the SEEK Growth Fund will be accounted for within SEEK’s
share of results from equity accounted investments.
Discontinued Operations revenue decline of 10% and EBITDA decline of 9% compared to FY2020 were driven by:
• Zhaopin: reported results declined due to the deconsolidation which occurred on 30 April 2021 (FY2021 includes ten months of
consolidated results compared with a full 12 months in FY2020). The business was significantly impacted by the outbreak of
COVID-19 in early 2020, and has experienced a slow but steady recovery on an underlying basis;
• OES: benefitted from a significant uplift in COVID-19-related demand for online education; and
• ESVs: strong revenue growth and operating results from Sidekicker as this business continues to scale.
• Reported results were negatively impacted by the appreciation of the Australian dollar against the Chinese Renminbi (RMB). On a
constant currency basis, Discontinued Operations delivered revenue decline of 7% and EBITDA decline of 6%.
SEEK Limited Annual Report 2021 13
Zhaopin
• On a constant currency basis, for the full 12 months of
FY2021, Zhaopin delivered a revenue result marginally below
FY2020 (decline of 1%) and EBITDA growth of 11% compared
to FY2020.
• Online revenue declined 2% as the business recovered
from COVID-19. Adjacent services revenue benefitted from
online migration.
• Steady EBITDA margin reflects operating efficiencies, offset
by increased investment in data and artifical intelligence to
improve search and match outcomes.
• Zhaopin has many levers for future growth but competition
is intense and requires ongoing reinvestment to evolve the
product offerings and grow market share.
OES
• OES delivered revenue growth of 40% with COVID-19
accelerating the demand for online education.
• EBITDA growth of 31% benefitted from the increase in
revenue. EBITDA margin declined by 1% due to investment in
scaling new partnerships and unbundled service offerings.
• OES is positioned well for growth and has planned significant
investment to scale opportunities across online program
management and customised education solutions.
Opportunities exist to unlock international growth but
significant investment is required.
ESVs
The portfolio of ESVs comprises investments exposed to high
growth structural trends across three key themes comprising
Online Education, Contingent Labour and HR SaaS.
SEEK Investments has invested in emerging leaders in the
three key themes, and actively partners with its investments
to leverage its deep online human capital market expertise
to accelerate their growth. Some key investments in the
portfolio are:
Online Education: FutureLearn and Coursera are global leaders
in the delivery of Massive Open Online Course content;
Contingent Labour: Sidekicker, Jobandtalent and Florence are
leading on-demand staffing platforms which in combination
provide exposure to a large and growing contingent labour
markets across Australia, New Zealand, and eight countries
across Europe and Latin America;
HR SaaS: GO1 is a leading digital learning platform enabling
organisations to source, deliver and track employee training;
Employment Hero is a cloud-based HR Information System that
helps SMEs to easily manage HR, payroll and employee benefits;
HiBob is a HR Information System tailored to mid-large sized
businesses, with a focus on employee experience.
To date, the portfolio has recovered well from COVID-19 and
benefitted from the structural migration to online platforms.
Overall ESVs delivered look-through revenue growth of
approximately 50%5.
(5) Look-through share represents net revenue of investments mutliplied by SEEK’s ownership interest (based on comparable ownership interest across FY2020 and FY2021). Excludes OES
and Coursera.
Directors’ Report 14
Financial position
Cash and cash equivalents
Other current assets
Intangible assets
Equity accounted investments
Other non-current assets
Total assets excluding assets held for sale
Assets held for sale
Total assets
Current borrowings
Non-current borrowings
Unearned income
Lease liabilities
Current creditors and provisions
Non-current creditors and provisions
Shareholders equity
Total liabilities and equity excluding liabilities directly associated with the assets held for sale
Liabilities directly associated with the assets held for sale
Total liabilities and equity
2021
$m
491.8
781.7
1,380.0
562.4
320.2
3,536.1
1,064.5
4,600.6
77.3
1,029.9
129.9
205.2
990.7
179.8
1,918.7
4,531.5
69.1
4,600.6
Restated
2020(1)
$m
604.8
212.4
2,538.8
268.3
704.5
4,328.8
-
4,328.8
143.4
1,797.6
350.9
64.0
439.0
158.1
1,375.8
4,328.8
-
4,328.8
(1) Comparative information has been restated for a change in accounting policy (refer to Note 29 Changes in accounting policies in the Financial Report for more information).
At 30 June 2021, SEEK had:
• Total assets of $4,600.6m of which 30% related to long-life intangible assets (goodwill, brands and licences) arising from business
combinations, with the remainder primarily comprised of equity accounted investments, trade and other receivables and cash and
cash equivalents; and
• Total liabilities of $2,681.9m of which 41% related to borrowings, with the remainder primarily comprised of trade and other
payables, unearned income, and lease liabilities.
At 30 June 2021, SEEK is in a net asset position of $1,918.7m. Excluding net assets held for sale of $995.4m, SEEK is in a net asset
position of $923.3m. Excluding net assets held for sale, SEEK’s current assets exceed its current liabilities by $58.5m.
The differences in SEEK’s financial position comparing FY2021 to FY2020 are primarily the result of:
• The selldown of SEEK’s controlling interest in Zhaopin, which resulted in the deconsolidation of assets totalling $1,246.5m and
liabilities totalling $573.5m, coupled with the recognition of an equity accounted investment of $521.1m for SEEK’s retained 23.5%
interest. Refer to Note 2 Discontinued operations, specifically section (b), in the Financial Report for further information; and
• The planned separation between SEEK and SEEK Investments. SEEK has designated assets (and associated liabilities) expected
to be transferred to SEEK Growth Fund as held for sale. Refer to Note 2 Discontinued operations, specifically section (c)(iii), in the
Financial Report, for further details of what comprises these balances at 30 June 2021.
SEEK’s share of cash proceeds received in relation to the Zhaopin disposal have been partially used to repay borrowings, and fund
the SEEK Limited dividend in May 2021. At 30 June 2021, a number of balances are included within SEEK’s Consolidated Balance
Sheet which are attributable to gross funds flows that are expected to occur after year end, relating to both SEEK’s share and the non-
controlling interests’ share of proceeds from the Zhaopin disposal, through Zhaopin Limited (SEEK’s holding entity for the Zhaopin
operations). Refer to Note 2 Discontinued operations, specifically section (b)(iv), in the Financial Report for further details. SEEK’s
remaining share of proceeds from the disposal after the net distributions outstanding is $183.7m.
Excluding this receivable, SEEK’s current liabilities exceed its current assets by $125.2m, however by excluding unearned income of
$129.9m, which represents non-refundable advances from customers, SEEK would have net current assets of $4.7m, and sufficient
liquidity and undrawn borrowings to further support this position.
Net debt
Net debt at 30 June 2021 was $623.6m ($615.3m net of capitalised borrowing costs) and is further discussed in Note 7 Net debt in
the Financial Report.
SEEK’s borrowings comprise a combination of debt facilities across SEEK Limited and Zhaopin Limited:
• SEEK Limited has an unsecured syndicated bank facility comprising A$612.5m and US$552.5m, and A$225.0m of notes issed
under SEEK’s Euro Medium Term Note Programme; and
• Zhaopin Limited has entrusted loan facilities of US$58.0m, which are expected to be repaid following further receipt of proceeds
as a result of the Zhaopin disposal.
At 30 June 2021, $1,115.5m of the total available facitilies were drawn down, with $536.3m available in undrawn capacity.
SEEK Limited Annual Report 2021 Cash flow
Cash generated from Continuing Operations
increased to $313.6m and represented an
EBITDA conversion ratio(1) of 94%.
(1) EBITDA conversion ratio is calculated as cash generated from operations / EBITDA.
Cash generated from Continuing Operations
Transaction costs
Finance costs and taxes paid
Net cash from operating activities attributable to Continuing Operations
Proceeds from disposal of interest in Zhaopin, net of cash disposed
Proceeds from disposal of Zhaopin, to be paid out
Proceeds from disposal of equity accounted investment
Payments for acquisition of subsidiary, net of acquired cash
Payments for acquisition of equity accounted investments
Capital expenditure (intangible assets and plant and equipment)
Other investing activities
Net cash from/(used in) investing activities attributable to Continuing Operations
Net change in borrowings
Dividends paid to shareholders of SEEK Limited
Payments of lease liabilities
Payments for additional interest in subsidiary
Other financing activities
Net cash (used in)/from financing activities attributable to Continuing Operations
Net cash used attributable to Discontinued Operations
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the year
Less cash and cash equivalents at the end of the year attributable to assets held for sale
Cash and cash equivalents at the end of the year attributable to Continuing Operations
2021
$m
313.6
(2.0)
(87.5)
224.1
124.1
308.7
6.1
(1.2)
-
(137.9)
0.6
300.4
(400.8)
(116.4)
(7.1)
(14.2)
(30.5)
(569.0)
(22.5)
(67.0)
604.8
(12.4)
525.4
(33.6)
491.8
15
Restated
2020(2)
$m
250.3
(1.0)
(81.3)
168.0
-
-
-
(4.0)
(4.0)
(92.8)
(4.5)
(105.3)
301.7
(47.8)
(9.7)
-
(41.9)
202.3
(29.4)
235.6
382.9
(13.7)
604.8
-
604.8
(2) Comparative information has been restated for Discontinued Operations and a change in accounting policy (refer to Note 2 Discontinued operations and Note 29 Changes in accounting policies
respectively in the Financial Report for more information).
Key cash flow movements
Net cash inflow from investing activities of $300.4m includes $432.8m received in relation to the disposal of Zhaopin, however,
$308.7m of cash received will be distributed to non-controlling interests and third parties for transaction costs in future periods.
These inflows were partially offset by capital expenditure of $137.9m.
Cash outflows from financing activities of $569.0m were primarily driven by: a net decrease in borrowings of $400.8m, which
included net repayments of Zhaopin Limited borrowings of $19.3m and net repayments of SEEK Limited borrowings of $381.5m; and
payments of dividends of $116.4m, including the FY2020 interim dividend for which payment was deferred to July 2020, and the May
2021 dividend paid following completion of the Zhaopin transaction.
Directors’ Report 16
Principal risks
SEEK actively manages the risks that could materially impact our ability to sustain our future financial performance and deliver our
long-term strategy. The following are the key risks and the actions we are taking to manage these risks. Climate change risk is not
considered financially material at this time and is addressed separately in SEEK’s Sustainability Report.
COVID-19
COVID-19 still presents many uncertainties across our markets. Varying speeds of economic recovery and levels of government
intervention will require SEEK to adapt to continually changing conditions in the near term. As the medium- and long-term impacts
and trends from COVID-19 begin to emerge, SEEK will monitor their effects on its principal risks, particularly in the areas of
cybersecurity, business resiliency, marketplace disruption, workplace culture and attracting and retaining talent.
Risk area
Impact of the risk
Mitigation and monitoring strategies
Cybersecurity
and business resilience
Disruption and
competition
Data governance and
artificial intelligence
Culture and talent
A major cybersecurity breach could result in
the loss of personally identifiable information,
proprietary algorithms or sensitive data. A
prolonged, unplanned disruption to critical
platforms or significant interruptions in the
systems of third parties upon which SEEK relies
may impair SEEK’s ability to provide services
and damage SEEK’s reputation and trust with
candidates, hirers and students.
Highly skilled cybersecurity and technical
experts focus on preventative, detective and
responsive capabilities, to identify and respond
to the emerging cyber threat landscape.
Initiatives to raise employee cyber awareness
and vigilance have been implemented and
continue to be reinforced. SEEK continues
to enhance business continuity and disaster
recovery capability and procedures, and the
monitoring of critical systems for signs of poor
performance, intrusion or interruption.
New disruptive business models, competitors
entering the market or existing competitors
aggressively increasing their market share could
erode SEEK’s ability to compete. SEEK may
not successfully build and acquire new growth
platforms or products that solve candidate, hirer
or student needs in the human capital market as
quickly or effectively as competitors.
SEEK is vigilant in monitoring local and global
competitive trends and operating metrics.
SEEK’s organisational structure is designed for
effective and fast-paced product and technology
rollouts to provide market-leading experiences
for candidates, hirers and students. Increased
investment activity aims to diversify the portfolio
and enhance capabilities and value offerings.
Failure to use and protect personally identifiable
information or sensitive data in breach of
data privacy laws or contrary to customer and
community expectations may breach customer
trust. Loss of confidence would damage SEEK’s
reputation and market position and could result
in regulatory action.
Operating and financial performance is
dependent on the ability to attract and retain top
talent in a competitive environment, particularly
in technology roles, and with changing workplace
expectations. The loss of critical people could
leave SEEK vulnerable to leadership and
capability gaps.
SEEK continually invests in cybersecurity and
data management practices and procedures.
Legal teams monitor developments in data
privacy and ethics in relevant jurisdictions.
Privacy policies are supported by clear guidance
for candidates on how their information is
collected, used, protected, and managed when
they use SEEK’s services.
Investment in our people and culture enables
SEEK to attract and retain key talent and maintain
a motivated and effective workforce in the face of
changing workplace environments. External
hiring addresses gaps in experience and capability
for more complex roles with cross-geographical
responsibility. The senior management
remuneration structure is designed to retain key
managers in specific geographies and focus them
on SEEK’s long-term growth potential.
Detailed planning processes underpin
adjustments to the operating model designed
to respond to customer needs, promote cross-
regional collaboration and deliver greater impact
on a global scale. Major programs of work have
governance structures in place to ensure risks are
well understood and managed.
Execution effectiveness
Changes and integration across the operating
model and technology systems are complex
particularly across geographies, and anticipated
business benefits may not be realised within the
desired timeline or at increased costs.
SEEK Limited Annual Report 2021 17
Risk area
Impact of the risk
Mitigation and monitoring strategies
Country and regulatory
Economic conditions
Environment and
community
SEEK is exposed to regulatory, legal, political
and conduct risks in the countries in which it
operates including in the Asia Pacific region and
Latin America. Changes in policy or regulation
in any country in which SEEK’s employment
businesses operate may adversely impact the
delivery of services.
A prolonged decline in job advertisement
volumes and revenue may occur as a result
of severe economic downturn impacting
employment markets in one or more of SEEK’s
countries of operation.
SEEK’s policies, or the implementation and
governance of those policies, in relation to
business conduct and sustainable business
practices, including in the areas of modern
slavery, bribery and corruption and environmental
practices, could fail to meet the expectations of
customers, investors and other key stakeholders,
resulting in a significant negative impact on
reputation and loss of business.
Local and corporate management monitor
economic and political indicators and
changes to legislation. SEEK maintains
strong relationships with key stakeholders in
these markets, trains relevant employees and
participates in industry consultation.
SEEK monitors and forecasts its cash flow
and revenue to manage its capital position.
Additionally, SEEK continues to evolve its
business model, products and services. Agile
development methodologies enable fast
response to challenges and allow SEEK to
capitalise on new opportunities as they arise.
SEEK engages with stakeholders to understand
and meet community expectations regarding
candidate safety and climate responsibilities.
SEEK monitors its platforms to identify and
remove illegitimate hirers or job ads that may
lead to fraud or discrimination, or endanger
candidates. Employees receive training in
anti-bribery and corruption to support internal
controls. SEEK also has a climate change
strategy including emissions reduction targets.
Directors’ Report 18
Board of Directors
Graham Goldsmith, age 61
Non-Executive Director since October 2012, Chairman from January 2019
Skills and Experience
Graham Goldsmith retired in 2012 as Vice
Chairman and a Managing Director of Goldman
Sachs Australia after a 25 year career with the
firm (and its predecessors in Australia), spanning
a number of different roles. He was Chancellor
of Swinburne University of Technology until 31
January 2019. Graham is a Panel Member of
Adara Partners, a director of Stars Foundation Inc
and Deputy Chairman of the John and Pauline
Gandel Foundation.
Other listed company directorships
• Djerriwarrh Investments Ltd since April 2013
Board Committee memberships
• Chairman of Remuneration Committee
• Member of Audit and Risk Management Committee
• Chairman of Nomination Committee
Qualifications
B.Bus (Accounting) (Swinburne), AMP (Harvard),
FCPA, FAICD
Ian Narev, age 54
Executive Director since 1 July 2021
Skills and Experience
Ian has been the Managing Director and CEO of
SEEK Limited since 1 July 2021. Ian joined SEEK
in April 2019 in the dual roles of Chief Operating
Officer and CEO of Asia Pacific and Americas.
Prior to joining SEEK, Ian had spent 11 years at
Commonwealth Bank of Australia (CBA). He was
CBA’s Managing Director and CEO from 2011 until
2018. Ian has non-profit board roles in education
and the performing arts, and advisory board roles
in private equity and fintech.
Other listed company directorships
None
Qualifications
BA LLB (Hons)(Auckland), LLM (International
Corporate Law)(Cambridge), LLM (International
Relations)(New York)
Andrew Bassat, age 55
Non-Executive Director since 1 July 2021
Executive Director between September 1997 and 30 June 2020
Skills and Experience
Andrew Bassat is the former Managing Director and
CEO of SEEK Limited. He co-founded the company in
1997 and from its inception until stepping down as CEO
on 30 June 2021 he was involved in all stages of the
development of SEEK’s business. In July 2016 Andrew
was appointed as a director of St Kilda Football Club
and in December 2018, became President of the Club.
Effective 1 July 2021, Andrew commenced as Executive
Chairman and CEO of SEEK Growth Fund.
Other listed company directorships
None
Board Committee memberships
• Member of Nomination Committee
Qualifications
BSc (Computer Science) (Melb), LLB
(Hons) (Monash), MBA (Melb)
Julie Fahey, age 64
Non-Executive Director since July 2014
Skills and Experience
Julie Fahey has over 30 years of experience
in technology, covering consulting, software
vendor and Chief Information Officer roles.
In addition, Julie spent 10 years as a partner
at KPMG. She is a director of Datacom
Group Ltd and CenITex, and a member of the
Australian Red Cross Lifeblood Board and the
LaTrobe University Council.
Other listed company directorships
• Australian Foundation Investment Company
Ltd since April 2021
•
IRESS Ltd since October 2017
• Vocus Group Ltd (February 2018 to July 2021)
Board Committee memberships
• Member of Audit and Risk Management Committee
• Member of Nomination Committee
Qualifications
BAppSc (RMIT)
SEEK Limited Annual Report 2021 19
Leigh Jasper, age 47
Non-Executive Director since April 2019
Skills and Experience
Leigh Jasper co-founded and was the CEO
of Aconex, which listed on the ASX in 2014
and was subsequently acquired by Oracle in
March 2018. Leigh led Aconex’s global growth,
expanding the business into Asia, the Americas,
the Middle East and Europe.
Leigh is a director of The Macfarlane Burnet
Institute for Medical Research and Public
Health Limited, Salta Properties Pty Ltd and
Buildxact Ltd, and Chair of LaunchVic.
Linda Kristjanson, age 66
Non-Executive Director since October 2020
Skills and Experience
Linda Kristjanson is a leading figure in the
education sector with an academic career
spanning four decades across Australia,
Canada and the United States. Linda was
Vice-Chancellor and President of Swinburne
University of Technology until August 2020.
Linda is Chairperson of the Board of the
Victorian Comprehensive Cancer Centre and a
Non-Executive Director of Education Australia
Limited and the National Stroke Foundation.
Michael Wachtel, age 66
Non-Executive Director since September 2018
Skills and Experience
Michael Wachtel has considerable global
business experience gained during his 35 year
career in the professional services industry.
Michael was previously Chairman (Asia
Pacific & Oceania) of Ernst & Young (EY) and a
member of the EY Global Governance Council
and Global Risk Executive Committee.
He is currently a Board member of the Future
Fund and St Vincent’s Medical Research Institute.
Vanessa Wallace, age 57
Non-Executive Director since March 2017
Skills and Experience
Vanessa Wallace has over 30 years experience
in strategy management consulting. Her
former roles at Booz & Company (now known
as Strategy&) included Executive Chairman of
Booz & Company (Japan) Inc, Senior Partner,
member of the global Board, lead of the
financial services practice in Global Markets
and lead of the strategy practice in ANZSEA.
Vanessa is also a member of the Chairman’s
Council of the Australian Chamber Orchestra.
Other listed company directorships
None
Board Committee memberships
• Member of Remuneration Committee
• Member of Nomination Committee
Qualifications
BE (Hons) (Melb), BSc (Mathematics)(Melb),
Dip ML (French) (Melb)
Other listed company directorships
None
Board Committee memberships
• Member of Remuneration Committee
• Member of Nomination Committee
Qualifications
BN (Manitoba), MN (Manitoba), PhD (Arizona)
FAICD, FTSE
Other listed company directorships
• Pact Group Holdings Ltd since April 2020
Board Committee memberships
• Chairman of Audit and Risk Management Committee
• Member of Nomination Committee
Qualifications
BCom LLB (UCT), LLM (LSE), CTA, FAICD
Other listed company directorships
• Doctor Care Anywhere Group PLC since September 2020
• Ecofibre Ltd since July 2021
• Wesfarmers Ltd since July 2010
Board Committee memberships
• Member of Audit and Risk Management Committee
• Member of Remuneration Committee
• Member of Nomination Committee
Qualifications
BCom (UNSW), MBA (IMD, Switzerland)
Directors’ Report 20
Directors and meetings of directors
All persons listed below were directors of SEEK Limited during the year ended 30 June 2021 and up to the date of this report, unless
otherwise stated. Andrew Bassat stepped down as MD and CEO on 30 June 2021, and was appointed a Non-Executive Director of
SEEK Limited effective 1 July 2021. Ian Narev became MD, CEO and Executive Director of SEEK Limited effective 1 July 2021. The
Board acknowledges that Andrew’s contribution to SEEK since its founding has been enormous, and would like to thank Andrew for
his vision, leadership and passion. The Directors are pleased to retain his commitment and experience on the Board.
The qualifications, experience and special responsibilities of each director, including current and recent directorships, are detailed on
pages 18 and 19 of the Directors’ Report. The table below details the number of Board and Committee meetings held and attended by
those directors during the year ended 30 June 2021.
Board
A
B
Audit and Risk
Management
Committee
A
B
C
Managing Director, Chief Executive Officer and Co-Founder(2)
7
A R Bassat
13
13
-
-
Non-Executive Directors
13
G B Goldsmith
13
J A Fahey
13
L M Jasper
L J Kristjanson(3)
10
13
M H Wachtel
13
V M Wallace
13
13
13
10
13
13
7
7
-
-
7
7
7
7
-
-
7
7
-
-
6
4
-
-
Remuneration
Committee
Nomination
Committee
Ad hoc Committees(1)
A
-
6
-
6
4
-
6
B
-
6
-
5
4
-
6
C
6
-
6
-
-
6
-
A
-
1
1
1
1
1
1
B
-
1
1
1
1
1
1
C
1
-
-
-
-
-
-
A
2
8
-
-
-
8
4
B
2
8
-
-
-
8
4
C
1
-
-
-
1
-
-
A - Meetings held while member held office and was eligible to attend as a member
B - Meetings attended
C - Meetings attended by invitation
(1)
Includes the Independent Board Committee announced on 23 February 2021. Ad hoc committee meetings of the Board were convened during the year in relation to financial results and the issue
of Subordinated Notes under the Euro Medium Term Note programme.
(2) Andrew Bassat was succeeded by Ian Narev as Managing Director and CEO, and was appointed a Non-Executive Director effective 1 July 2021.
(3) Linda Kristjanson was appointed a Non-Executive Director effective 9 October 2020.
Company Secretary
The Company Secretary during the year ended 30 June 2021
was Lynne Jensen. Lynne has over 25 years of international and
domestic legal and governance experience, including as a partner
of Allens Arthur Robinson and as Group General Counsel and
Company Secretary of Grocon. Lynne holds a Bachelor of Laws
(Honours) and Bachelor of Arts from the University of Melbourne.
Effective 1 July 2021, Rachel Agnew replaced Lynne Jensen as
Company Secretary. Rachel was previously a Company Secretary
of BHP Group Limited and BHP Group Plc and holds a Bachelor of
Laws (Honours) and Bachelor of Commerce from the University of
Wollongong.
Indemnification and insurance of officers
The SEEK Limited Constitution provides that the Company
will, to the extent permitted by law, indemnify any current or
former director or officer in respect of any liability incurred in
that capacity and related legal costs. SEEK Limited has entered
into a Deed of Indemnity with each director and a number of
senior executives. During the year SEEK Limited paid a premium
in respect of an insurance contract which covers the directors
and officers against certain liabilities in accordance with the
terms of the policy. The insurance contract requires the nature
of the liability covered and the amount of the premium paid to
be confidential.
Interests in shares and options
As at the date of the report the directors held the following
interests in shares and options:
G B Goldsmith
I M Narev
A R Bassat
J A Fahey
L M Jasper
L J Kristjanson
M H Wachtel
V M Wallace
Shares in
SEEK Limited
Options over
SEEK Limited
shares
50,000
116,037
15,001,722
8,888
68,133
1,137
4,000
17,000
-
1,144,201(1)
435,287(1)
-
-
-
-
-
(1)
Includes Wealth Sharing Plan Options/Rights (refer to section 6.3 on page 39).
Dividends
Dividends paid or declared by the Company to shareholders
during the financial year are set out in Note 18 Dividends of the
Financial Report.
SEEK Limited Annual Report 2021 21
Auditor and non-audit services
PricewaterhouseCoopers (PwC) continues in office as auditor of
the parent entity (Auditor) in accordance with section 327 of the
Corporations Act 2001.
It is SEEK’s policy to engage PwC on assignments in addition
to their statutory audit duties only where PwC’s expertise and
experience with SEEK provide a compelling reason to do so. These
assignments are principally other assurance and due diligence
reporting on acquisitions.
Fees that were paid or payable during the financial year for non-
audit services provided by the Auditor and its related practices
are disclosed in Note 27 Remuneration of auditors of the
Financial Report.
The Board has considered the position and, in accordance with the
advice received from the Audit and Risk Management Committee,
is satisfied that the provision of the non-audit services is compatible
with the general standard of independence for auditors imposed by
the Corporations Act 2001.
The directors are satisfied that the provision of non-audit
services by the Auditor did not compromise the auditor
independence requirements of the Corporations Act 2001 for the
following reasons:
• all non-audit services have been reviewed by the Audit and Risk
Management Committee to ensure they do not impact the
impartiality and objectivity of the Auditor; and
• none of the services undermine the general principles relating to
auditor independence as set out in APES 110 Code of Ethics for
Professional Accountants.
A copy of the Auditor’s Independence Declaration as required under
section 307C of the Corporations Act 2001 is set out on page 41.
Environmental regulation
The operations of the Group are not subject to any particular or
significant environmental regulations under a Commonwealth,
State or Territory law.
Proceedings on behalf of the Company
No proceedings have been brought or intervened in on behalf
of the Company, nor have any applications for leave to do so
been made in respect of the Company, under section 237 of the
Corporations Act 2001.
Significant changes in the state of affairs
In the opinion of the directors, other than the discontinued
operations referenced in the operating and financial review of
this report, there were no significant changes in the state of
affairs of SEEK that occurred during the financial year.
Other information
The following information also forms part of this Directors’
Report and is located as follows:
• Principal activities are set out on pages 4 to 8;
• SEEK’s Operating and financial review is set out on pages 9 to
17; and
•
the Remuneration Report, including an introductory letter from
the Chairman of the Remuneration Committee, is set out on
pages 23 to 40.
Matters subsequent to the end of the
financial year
SEEK Growth Fund
On 11 August 2021, SEEK announced the creation of SEEK Growth
Fund following the completion of a strategic review. SEEK’s current
holdings in OES and 14 ESVs will be transferred to the Fund as seed
assets in exchange for units in the Fund, based on an independently
assessed fair value of A$1,215.0m. A management company will
be formed to manage the Fund, led by Andrew Bassat and a team
of investment professionals from SEEK. The Fund will operate
autonomously from SEEK, with greater access to third party capital,
allowing it to focus on being an investor and business builder,
enabling SEEK to focus on growth opportunities in AP&A whilst
retaining its economic exposure to the investment portfolio.
On 6 August 2021, SEEK acquired a 26.3% undiluted interest in
Hireup Holdings Pty Ltd (Hireup), a provider of online disability
support services which connects workers with participants, and
a 38.4% undiluted interest in MyTutorWeb Limited (MyTutor), a
UK based online tutoring marketplace. SEEK will subsequently
sell its interests in Hireup and MyTutor to the Fund.
Remittance of proceeds
In June 2021, Zhaopin Limited, the holding entity for the Zhaopin
operations, received AUD$308.7m of proceeds related to the
disposal of Zhaopin. These proceeds had not been distributed
to shareholders at balance date and the amount is recorded in
Cash and cash equivalents at 30 June 2021. On 5 July 2021, the
amount was remitted to SEEK’s co-investors in Zhaopin.
There are no other matters or circumstances which have arisen
since the end of the financial year that have significantly affected
or may significantly affect the operations of SEEK, the results of
those operations and the state of affairs of SEEK in subsequent
financial periods.
Rounding of amounts
The Company is of a kind referred to in Corporations Instrument
2016/191, issued by the Australian Securities and Investments
Commission, relating to the ‘rounding off’ of amounts in the
financial statements. Amounts in the financial statements have
been rounded off in accordance with that Corporations Instrument
to the nearest hundred thousand dollars, or in certain cases, the
nearest dollar.
Directors’ Report 22
SEEK Limited Annual Report 2021 23
Letter from Remuneration
Committee Chairman
Dear Shareholders,
On behalf of the Board, I am pleased to present SEEK’s FY2021 Remuneration Report (Report). This letter and the Q&A which follows
summarise the remuneration outcomes for FY2021, changes to Executive leadership roles and our Executive KMP, and key changes to the
executive remuneration framework as outlined in last year’s Report.
COVID-19 and FY2021 Remuneration Outcomes
The 2021 financial year was a challenging one, as the health, social and economic consequences of the COVID-19 pandemic presented
ongoing uncertainty for our customers and for society at large. Throughout this extraordinary period, we continued to support our customers
through relief measures and prioritised the safety, wellbeing and retention of our people. The impact of the pandemic in all markets in which
SEEK operates varied considerably and was constantly changing. The signs of economic recovery were closely linked to the status of the virus
in each location.
Given the business challenges arising from COVID-19, there were no remuneration increases provided to Executives in FY2021. Additionally, for
the second successive year, we made no changes to fees for Non-Executive Directors.
Given the improvement in SEEK’s business results through the year being reflected in increases in our share price, the FY2019 Wealth Sharing
Plan (WSP) fully vested as the 60-day VWAP to 30 June 2021 of $30.76 exceeded the three-year share price hurdle of $24.39. Pleasingly for
shareholders, over the three-year vesting period for this award, SEEK’s share price increased by 54%, from $21.53 to $33.14. The vesting of the
FY2019 WSP followed the lapsing of the FY2018 WSP in the prior financial year.
The strength of recovery in our ANZ business through FY2021 also resulted in our decision to repay to both the Australian and New Zealand
governments the COVID related support payments received during FY2021 totaling $9.8 million.
FY2022 Separation of the SEEK Investments business and Executive KMP leadership
On 11 August 2021, SEEK announced that the Board had finalised a review targeted to provide SEEK Investments with a greater degree of
independence, focus and access to third party capital; whilst allowing SEEK to retain significant economic exposure to the investment portfolio.
We had also announced that SEEK’s Chief Executive Officer (CEO) and Co-Founder, Andrew Bassat, would step down from this role and lead
the Investments business. Ian Narev was appointed as Managing Director and Chief Executive Officer (MD and CEO), effective from 1 July
2021.
As I have noted in other communications, Andrew’s contribution to SEEK since its founding has been enormous and we are pleased that we
will retain his focus and commitment in his new role and also as a Non-Executive Director of SEEK Limited. Over the last two years, Ian and
Andrew have worked closely in partnership, with Ian leading SEEK’s operating businesses during a particularly challenging period. In his new
role as MD and CEO, Ian brings a strong track record in public company leadership, digital transformation and strategy and we are fortunate to
have such a high calibre leader as successor to Andrew.
At the end of FY2021, Geoff Roberts retired as Chief Financial Officer (CFO) after nearly six years at SEEK. The Board appointed Kate Koch
as the new CFO and we welcome her to the organisation. I would like to record our thanks and appreciation to Geoff for his commitment and
contribution during his time as CFO.
FY2022 Executive remuneration framework
Ensuring SEEK has the right leadership team in place is critical to its ongoing success. It is also critical to the have right remuneration
framework in place – one that is globally competitive, while remaining fair and reasonable in a local context and delivering outcomes that
are aligned with the shareholder experience over the long-term. Consequently, SEEK’s executive remuneration framework is structured
such that aside from base salary, Executives and other senior leaders do not receive incentive payments in cash. For most senior leaders
at SEEK, variable remuneration is delivered entirely through equity, which we believe encourages leaders to focus on building a sustainable
business over the long-term and achieves wealth creation for leaders and shareholders alike through ongoing share price growth. Our
variable remuneration components are designed to align executive reward with the shareholder experience.
The Board is grateful for the support from investors in relation to changes to the WSP introduced in FY2021 and outlined in the FY2020
Remuneration Report. These changes are summarised in the following Q&As and outlined in further detail under section 3.5 of this Report.
Recognising the changes introduced last year were well-received, the overall approach to the FY2022 WSP will remain unchanged. However,
we have addressed a further area of focus by many for the incoming CEO, by locking in the mix of WSP Options and Rights at 50:50, which
is consistent with his recent voluntary choices. It is the Board’s intent to review aspects of executive remuneration on an ongoing basis, to
ensure the structure and methodology remain closely aligned with our remuneration principles and support sustainable growth of SEEK’s
business. We will continue to share our thinking with you as it evolves and as always, we welcome your feedback.
I look forward to engaging with you in FY2022 and thank you for your ongoing support of SEEK.
Graham Goldsmith
Chairman of the Remuneration Committee
Remuneration Report 24
Q&A
This section addresses questions relating to the remuneration
arrangements of Ian Narev as SEEK MD and CEO, the departure
arrangements for Andrew Bassat as he steps down, and the
changes to the WSP introduced in FY2021.
1) What are Ian Narev’s remuneration arrangements
upon appointment as MD and CEO and are they
appropriate relative to market?
Upon appointment as MD and CEO, Ian Narev’s Total
Remuneration Opportunity (TRO) was set at $4,503,000 per
annum, the key components of which are:
• Fixed Remuneration comprising Base Salary and
Superannuation of $1,900,000 – which remained unchanged;
• Equity Rights of $950,000 (50% of Fixed Remuneration) –
which also remained unchanged; and
• WSP Options and Rights of $1,653,000 (87% of Fixed
Remuneration) – which was increased in quantum and
proportion of TRO.
The increase to Ian’s TRO upon appointment as MD and CEO
was thus delivered exclusively via an increase in the WSP
component, which is entirely ‘at risk’ and closely aligned to the
shareholders’ interests.
The Board considers the increase to Ian’s TRO upon appointment
to the MD and CEO role to be appropriate. Ian’s remuneration
is positioned at the median of the primary comparator group
(see section 3.2 for further detail on SEEK’s benchmarking
methodology) and recognises his skills and experience as
demonstrated during his tenure with SEEK and his depth of
experience as a seasoned CEO and executive prior to joining.
The Board also determined that in relation to Ian’s WSP, 50% of
the WSP is to be awarded as Options and 50% is to be awarded
as Rights; ensuring the increase to Ian’s TRO is closely aligned
with the long-term interests of SEEK’s shareholders.
Ian’s TRO at $4,503,000 is 10.4% below Andrew’s TRO at the time
of him stepping down as CEO.
2) What were Andrew Bassat’s departure
arrangements upon stepping down as CEO?
Upon stepping down as CEO, Andrew was not provided with
any termination payment or payment in lieu of notice. All on-
foot equity awards were treated in accordance with the default
provisions of the grants per the plan rules and as approved by
shareholders. Andrew’s outstanding WSP awards were pro-rated
based on the portion of the respective vesting period served
to 30 June 2021 and all WSP awards remaining on-foot will be
tested in accordance with the respective vesting conditions
in July 2022 (for the FY2020 WSP) and July 2023 (for the
FY2021 WSP).
As Andrew was appointed as a Non-Executive Director of SEEK
effective from 1 July 2021, he will receive the standard Non-Executive
Director fee of $160,000, inclusive of superannuation. Under the
Nomination Committee Charter, all Non-Executive Directors are
members of this Committee, including Andrew. No fees are payable
for membership of the Nomination Committee. Andrew will not be a
member of any other Board Committee. As a Non-Executive Director,
Andrew will not participate in any future EEP or WSP awards.
3) What were the WSP design changes in FY2021
and are these being retained in FY2022?
As outlined in SEEK’s 2020 Remuneration Report, the following
changes were made to the FY2021 WSP.
• Graduated vesting – 50% vesting occurring at a Threshold
share price hurdle, 100% vesting occurring at a Stretch share
price hurdle and pro-rata vesting taking place between these
points. This change addressed feedback received about the
‘all or nothing’ nature of the WSP which previously included a
‘cliff vesting’ design element, and now more closely mirrors
the experience of our shareholders.
• Share price hurdle – with the introduction of graduated
vesting, it was necessary for the Board to set both Threshold
and Stretch share price hurdles. For the FY2021 WSP, the
Board decided that the Threshold share price hurdle would be
based on the 15-year average growth in the ASX All Ordinaries
Index (being 3.3%) – applied on a Compound Annual Growth
Rate (CAGR) basis to SEEK’s 60-day Volume Weighted
Average Price (VWAP) to 30 June 2020 (being $18.61) –
resulting in a Threshold hurdle of $20.51. This was consistent
with the methodology previously used to set the 100% vesting
price. As noted above, at the Threshold share price hurdle,
50% vesting occurs. For the FY2021 WSP, the Board set the
Stretch share price hurdle based on a more challenging target
of 6.0% CAGR, resulting in a hurdle of $22.16 at which 100%
vesting occurs.
With the continuation of graduated vesting, for the FY2022
WSP, the Board has determined that:
• The 15-year average growth in the ASX All Ordinaries Index
(being 3.8%) will be applied on a CAGR basis to SEEK’s
60-day VWAP to 30 June 2021 (being $30.76) to set the
Threshold share price hurdle of $34.40 at which 50%
vesting will occur;
• A 6.0% CAGR target will be applied to set the Stretch share
price hurdle of $36.64 at which 100% vesting will occur; and
• Between $34.40 and $36.64, pro-rata vesting on a straight-
line basis will apply.
• Share price input into fair value – the share price input
into the external fair valuation of the WSP undertaken for
allocation purposes changed from a 1 July spot price to a 60-
day VWAP up to and including 30 June. This change reduces
the potential impact of share price volatility that originates
from using a spot price, aligns with the 60-day VWAP period
used for calculating the number of shares allocated under
the EEP and mirrors the VWAP periods used with the WSP for
purposes of setting and testing the share price hurdle.
Given the positive feedback received from investors in relation to
these changes, the Board has decided to retain the current WSP
design for the FY2022 award.
SEEK Limited Annual Report 2021
25
Remuneration
Report
Introduction and contents
This Remuneration Report (Report) sets out SEEK’s Executive remuneration framework, as well as the remuneration arrangements
for the Key Management Personnel (KMP) of SEEK for the year ended 30 June 2021. References to Executives in this Report are to
both Executive KMP and other Non-KMP Executives who report to the CEO.
The Report has been prepared and audited based on the requirements of the Corporations Act 2001 and its Regulations.
Section
1 Key Management Personnel
2 FY2021 executive remuneration outcomes and alignment with SEEK’s performance
3 Executive remuneration framework, contractual terms and FY2021 statutory remuneration
4 Remuneration governance framework and related policies
5 Non-Executive Director fees
6 Other KMP disclosures
Page
25
27
29
36
37
38
1. Key Management Personnel
The KMP roles covered in this report are SEEK’s Non-Executive Directors, Chief Executive Officer (CEO) and Co-Founder, Group Chief
Operating Officer and Asia Pacific & Americas CEO (Group COO and AP&A CEO) and Group Chief Financial Officer (CFO). Each of the
KMP held their position for the whole of FY2021, unless stated otherwise.
Name
Position
Changes during FY2021
Non-Executive Directors
G B Goldsmith
Non-Executive Chairman
J A Fahey
L M Jasper
Non-Executive Director
Non-Executive Director
L J Kristjanson
Non-Executive Director
Appointed 9 October 2020
M H Wachtel
V M Wallace
Executive KMP
A R Bassat
I M Narev
G I Roberts
Non-Executive Director
Non-Executive Director
CEO and Co-Founder
Stepped down as CEO 30 June 2021
Group COO and AP&A CEO
Group CFO
Retired 30 June 2021
Since the end of the reporting period:
• Effective 1 July 2021, Andrew Bassat transitioned to a new role as Executive Chairman and CEO of the Manager of the SEEK
Growth Fund and was appointed a Non-Executive Director of SEEK Limited;
• Effective 1 July 2021, Ian Narev was appointed Managing Director and CEO of SEEK (MD and CEO); and
• Kate Koch joined SEEK on 10 June 2021 and commenced a period of handover from Geoff Roberts prior to his retirement date.
She was officially appointed CFO and KMP effective 1 July 2021.
Remuneration Report 26
1.1 Executive KMP changes and remuneration arrangements
New appointments
New MD and CEO
Ian Narev was appointed as MD and CEO effective 1 July
2021 and his Total Remuneration Opportunity (TRO) was
disclosed in SEEK’s ASX announcement that same day. Ian’s
contractual TRO is provided for transparency:
New CFO
Kate Koch joined SEEK on 10 June 2021 and commenced a
period of handover prior to the retirement of Geoff Roberts on
30 June 2021. Kate was officially appointed as CFO and KMP
effective 1 July 2021. Her contractual TRO is provided for
transparency:
42%
21%
37%
50%
25%
25%
Base Salary and
Superannuation
Executive Equity Plan
Equity Right
Wealth Sharing Plan
Options and Rights(1)
Base Salary and
Superannuation
Executive Equity Plan
Equity Right(1)
Wealth Sharing Plan
Options/Rights(1), (2)
$1,900,000
$950,000
$1,653,000
$753,425
$376,712
$376,712
Total Remuneration Opportunity
$4,503,000
Total Remuneration Opportunity
$1,506,849
(1) The first year Kate is eligible to participate in the Executive Equity Plan and Wealth Sharing
Plan is FY2022.
(2) The value of Wealth Sharing Plan Options/Rights represents the fair value opportunity for
FY2022. There is a choice to receive the award as Options and/or Rights.
(1) The value of Wealth Sharing Plan Options and Rights represents the fair value opportunity
for FY2022, with 50% to be awarded as Options and 50% to be awarded as Rights.
Ian’s Base Salary and Superannuation as well as his Equity
Right remained at the same level and have not changed since
he joined SEEK on 29 April 2019. The Board determined that in
stepping into the MD and CEO role, the increase to TRO would
be delivered entirely through the Wealth Sharing Plan (WSP),
ensuring the increase is aligned to the long-term interests of
shareholders.
At the 2021 Annual General Meeting (AGM) on 17 November
2021, shareholders will be asked to approve the grant of an
Equity Right and grant of WSP Options and Rights (50%/50%).
Departure arrangements
Former CEO and Co-Founder
Former CFO
Upon his retirement from SEEK on 30 June 2021, Geoff
Roberts was not provided with any termination payment
or payment in lieu of notice. All outstanding EEP and WSP
awards were treated in accordance with their plan rules and
pro-rated based on the portion of the respective vesting
period served to 30 June 2021. All WSP awards remaining
on-foot will be tested in accordance with the respective
vesting conditions in July 2022 (for the FY2020 WSP) and
July 2023 (for the FY2021 WSP).
Upon stepping down from the role of CEO, Andrew Bassat
was not provided with any termination payment or payment
in lieu of notice. All outstanding on-foot equity awards were
treated in accordance with the default provisions per the plan
rules and as approved by shareholders. Andrew’s outstanding
WSP awards were pro-rated based on the portion of the
respective vesting period served to 30 June 2021 and will be
tested in accordance with the respective vesting conditions
in July 2022 (for the FY2020 WSP) and July 2023 (for the
FY2021 WSP).
As Andrew was appointed a Non-Executive Director of
SEEK effective 1 July 2021, he will receive the standard
Non-Executive Director fee of $160,000, inclusive of
superannuation. All Non-Executive Directors of SEEK are
members of the Nomination Committee and no fees are
payable for membership of this Committee. Andrew will
not be a member of any other Board Committee. As a
Non-Executive Director, Andrew will not participate in any
future EEP or WSP awards.
SEEK Limited Annual Report 2021 2. FY2021 executive remuneration outcomes and alignment with SEEK’s performance
Outlined below is a summary of the FY2021 salary and equity plan vesting outcomes and the extent to which the equity plan outcomes
have been aligned with SEEK’s performance. Analysis is presented to show the benefit that Executives have effectively ‘realised’ through
the EEP and WSP versus the corresponding shareholder returns delivered from FY2013 to FY2021. This aims to demonstrate the strong
correlation between rewards delivered to Executives and SEEK shareholder returns over this period.
Executive Remuneration Outcomes
Component
Base Salary and Superannuation
FY2021 Executive Equity Plan
FY2019 Wealth Sharing Plan
27
Overall FY2021
salary/equity plan
vesting outcomes
Reflecting the impact of COVID-19, investor
feedback and public sentiment regarding
the quantum of executive remuneration,
no salary or fee increases were awarded to
Executives (including the CEO) or directors
during FY2021.
Further details regarding the remuneration
of Ian Narev and Kate Koch upon
appointment as MD and CEO and CFO
respectively are provided in section 1.1 of
this Report.
At the end of the Qualifying Period, the
Equity Right granted to each Executive
vested in accordance with the terms
of the plan. As a result, following the
release of SEEK’s FY2021 financial
results, the following number of
Deferred Shares will be allocated to
each Executive KMP:
A R Bassat – 67,520
I M Narev – 51,047
G I Roberts – 31,467
The allocated Deferred Shares are
subject to a further one-year disposal
restriction from 1 July 2021 to 30 June
2022 – during which the value of
each Executive’s EEP award remains
unrealised and variable based on SEEK’s
share price.
As Executives are subject to the SEEK
Share Trading Policy, in practice, the
shares will not be available to trade until
one trading day following the release of
SEEK’s FY2022 financial results.
Under the FY2019 WSP, Executives were
given the choice to receive Options, Rights
or a 50/50 combination of Options and
Rights, with all electing to receive Rights.
The FY2019 WSP award was tested
following the end of the vesting period
on 30 June 2021. In accordance with the
plan terms, a 60-day Volume Weighted
Average Price (VWAP) up to and
including 30 June 2021 was used for
testing purposes.
The 60-day VWAP was $30.76 which was
above the share price hurdle of $24.39.
As a result, the FY2019 WSP vested on
1 July 2021 and remains subject to an
exercise restriction period until 30 June
2022 – meaning the value of each
Executive’s WSP award also remains
unrealised and variable based on SEEK’s
share price.
Once exercised, the following number
of shares will be allocated to each
Executive KMP:
A R Bassat – 129,676
I M Narev – n/a. Not employed at the
time of offer
G I Roberts – 58,959
Further details have been provided in
section 6.3 of this Report.
Note, the FY2021 EEP and FY2019 WSP outcomes are shown above as the end of the relevant qualifying/vesting periods for these awards are 30 June 2021with vesting on 1 July 2021. Details of the FY2020
EEP and FY2018 WSP awards that vested and lapsed on 1 July 2020 were provided in the FY2020 Remuneration Report and in section 6 of this Report.
One of the guiding principles for executive remuneration is to align reward with SEEK’s strategic intent and the shareholder experience,
encouraging Executives to think and act like owners. The following analysis compares the previous equity outcomes ‘realised’ by Executives
with the corresponding shareholder returns delivered since FY2013, when the EEP and WSP were introduced. Given the value of the EEP to an
Executive is a direct function of SEEK’s share price, there is clear alignment between the benefit received by Executives and growth in SEEK’s
Total Shareholder Returns (TSR) over each annual award period. Similarly, when viewing the seven WSP awards tested to date in totality, as was
intended by the Board, there is clear alignment between the overall benefit received by Executives and SEEK’s TSR growth over the nine-year
period from 1 July 2012.
Link between SEEK’s performance with equity outcomes
SEEK vs ASX 200 TSR since 1 July 2012
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500
400
300
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100
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Jul 12
ASX 200
TSR
156%
11% p.a.
SEEK
TSR
510%
22% p.a.
Share Price
403%
20% p.a.
SEEK’s TSR growth of 510% since 1 July 2012,
when the WSP was first introduced, significantly
exceeds the ASX 200 index growth of 156%
over the same period. During this time, the SEEK
share price also increased from $6.53 to $32.86.
Assuming an Executive received all seven WSP
awards granted since 1 July 2012, the combination
of five having vested and two having lapsed
has led to the benefit received by an Executive
being correlated to but less than the TSR growth
experienced by SEEK shareholders. This is an
outcome which the Board considers to be fair
and reasonable from the perspective of Executive
reward and shareholder alignment.
Jul 13
Jul 14
Jul 15
Jul 16
Jul 17
Jul 18
Jul 19
Jul 20
Jul 21
SEEK
ASX 200
Remuneration Report
28
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180
160
140
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100
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60
40
20
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SEEK vs ASX 200 TSR over WSP award periods(1)
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FY13-FY15
FY14-FY16
FY15-FY17
FY16-FY18
FY17-FY19
FY18-FY20
FY19-FY21
SEEK
ASX 200
(1) Vested awards were measured over a four-year period, being the three-year performance period as shown above and an additional one-year exercise restriction period, to reflect the
earliest time at which Executives can realise any benefit from the relevant WSP award. Lapsed awards were measured over their three-year performance period only to reflect the time
at which the lapsing occurred.
Understanding that for some investors relative rather than absolute TSR performance is a key benchmark, the above confirms that in each of the
WSP award periods for each vested award and the FY2018 lapsed award, SEEK has significantly outperformed the ASX 200 index. For each WSP
award period, vesting only occurred when the SEEK TSR outperformed the ASX200 TSR. Ensuring SEEK has the right leadership team in place has
been instrumental to the Company’s outperformance of the Australian market throughout the increasing globalisation of the business, whilst facing
local and global competitive threats and new disruptive business models.
2.1 SEEK’s five-year financial performance
The following table sets out information about the SEEK’s earnings and movements in shareholder wealth for the past five financial
years up to and including FY2021.
Share price at year end ($)
Weighted 12-month average share price ($)
Cumulative Total Shareholder Return (TSR) - Indexed (%)(1)
Total dividend (cents per share)
Sales revenue (excluding significant items) ($m)(2)
EBITDA (excluding significant items) ($m)(2)
NPAT (excluding significant items and SEEK Investments ESVs)
attributable to SEEK ($m)(2)
Basic EPS (excluding significant items and SEEK Investments ESVs)
(cents)(2)
FY2017
FY2018
FY2019
FY2020
FY2021
16.91
15.76
114.68
44.0
1,040.9
375.8
220.8
63.5
21.81
18.73
151.63
46.0
1,299.5
431.2
212.1
60.5
21.16
19.13
150.64
46.0
1,537.3
455.0
207.5
59.1
21.89
19.76
159.03
13.0
1,577.4
410.6
139.3
39.6
33.14
25.68
242.36
20.0
1,591.1
473.6
147.1
41.7
(1) Cumulative TSR includes dividends and share price appreciation and is indexed from 1 July 2016 (1 July 2016 = 100.00).
(2) SEEK’s financial performance for FY2021 is reflective of the aggregate results from both continuing and discontinued operations. SEEK NPAT excludes significant items and the results from
ESVs as removal of items that are once-off in nature and the impact from results generated from scaling the ESVs portfolio, provides a more representative view of the underlying operational
performance of SEEK. A change in accounting policy means that comparative information for FY2020 EBITDA, NPAT and Basic EPS differs from the corresponding table for the year ended
30 June 2020 (refer to Note 29 Changes in accounting policies in the Financial Statements).
SEEK Limited Annual Report 2021
3. Executive remuneration framework, contractual terms and FY2021 statutory remuneration
3.1 Executive remuneration framework snapshot
SEEK’s success as a global, people-centric business relies on the Company’s ability to attract, motivate, and retain world-class talent and ap-
propriately reward them for the behaviours and actions which result in sustainable, long-term shareholder wealth creation, rather than those
focused on short-term gains. SEEK’s Executive remuneration framework for FY2022 remains the same as outlined for FY2021.
Guiding Principles for Executive Remuneration
29
Aligns reward with SEEK’s
strategic intent and the
shareholder experience,
encouraging Executives to
think and act as owners
Is sufficiently competitive
and flexible to attract and
retain world-class talent
in the face of increasing
competition
Balances the need to be
competitive with being fair,
reasonable, and appropriately
reflective of SEEK’s culture and
the external environment
Is simple, easy to explain
and delivers transparent
remuneration outcomes that
make sense internally and to
SEEK shareholders
These principles are reviewed on a regular basis to ensure they remain fit for purpose and are used by the Remuneration Committee in its
annual assessment of the effectiveness of SEEK’s remuneration strategy and framework.
Objectives
The main objective of SEEK’s executive remuneration framework is to ensure close alignment between Executive reward and long-
term shareholder returns. With SEEK’s short-term business results closely tied to the broader economy, the equity components, which
represent a significant proportion of an Executive’s Total Remuneration Opportunity are designed to ‘see through’ the ups and down of
the economic cycle; and encourage Executives to make bold decisions and take actions focused on creating sustainable results over the
long-term, leading to wealth creation for SEEK shareholders.
Executive Remuneration Framework
Component
Base Salary and Superannuation
Executive Equity Plan
Wealth Sharing Plan
Purpose and how
we achieve this
% of Total
Remuneration
Opportunity for
FY2022
Guaranteed Pay
Equity - Variable in Value
Base Salaries are set at a level that
results in Executives’ Total Remuneration
Opportunity being positioned between
the 50th and 80th percentiles of local
companies of comparable size
Annual grant of ‘locked-up’ equity
that is variable in value as the share
price moves; this means that from
Day 1 there is ongoing alignment with
SEEK shareholders
Refer section 3.2 for SEEK’s FY2021 benchmarking
approach and section 3.3 for the link to principles
Refer section 3.4 for the link to principles and
summary of the FY2021 EEP Offer details
Performance Based Equity
(long-term equity component)
Annual grant of ‘at-risk’ equity that is
designed to reward for absolute share
price growth throughout the economic
cycle, in alignment with long-term
shareholder returns
Refer section 3.5 for the link to principles and
summary of the FY2021 WSP Offer details
MD and CEO-42%
CFO-50%
Other Execs-
50-60%
MD and CEO-21%
CFO-25%
Other Execs-
20-25%
MD and CEO-37%
CFO-25%
Other Execs-
20-25%
Delivery
mechanism
Base Salary plus Superannuation
One Equity Right that converts into
an agreed number of SEEK shares
Choice of Options and/or Rights that
may be converted into SEEK shares.
The FY2022 WSP award for the MD
and CEO will be delivered as 50%
Options and 50% Rights.
Timeframe before
reward is realised
Immediate
Two years
Four years
Base Salary and
Superannuation
Equity Right
Value is variable based on
SEEK share price over the
Qualifying Period
Disposal
Restriction
Wealth Sharing Plan
Options/Rights
Vesting subject to SEEK
share price performance
over the Vesting Period
Exercise
Restriction
1 Year
1 Year
+1 Year
3 Years
+1 Year
Remuneration Report 30
3.2 SEEK’s approach to determining remuneration
Notwithstanding the impact of COVID-19 on the Australian economy, there continues to be an aggressive pursuit of talent with the
skills and specific experience of SEEK’s senior leaders. Recognising the critical need to attract, retain and motivate the talent that
SEEK needs to succeed, the Board’s objective is to position Executives’ TRO within a target range of the 50th to 80th percentiles of a
primary benchmarking comparator group comprising 20 similarly sized ASX-listed companies.
FY2021 benchmarking approach
The Executive remuneration structure, including the significant weighting towards equity, is guided by SEEK’s remuneration objectives
which support SEEK’s focus on building a sustainable business over the long-term (see section 3.1). The quantum of Executive
remuneration is guided by several inputs, one of which being external benchmarking. Other inputs include the competitive landscape
for Executive talent, internal relativities and the individual’s experience and performance. During FY2021, the Board engaged Ernst &
Young to benchmark the quantum of TRO for Executive remuneration with the aim of identifying the competitive positioning of SEEK.
Consistent with prior years, three ASX-listed size-based comparator groups were used:
Primary comparator group
Secondary data sources
For consistency with prior years and reflecting proxy advisor feedback that
a smaller, more targeted comparator group is generally preferred, SEEK’s
FY2021 primary comparator group comprised 20 ASX-listed companies: 10
companies immediately either side of SEEK based on 12-month average
market capitalisation to 28 February 2021 of $7,811m.
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Auckland Int. Airport Limited
Mirvac Group
Origin Energy Limited
Evolution Mining Limited
Stockland
Lendlease Group
GPT Group
Aurizon Holdings Limited
Spark NZ Limited
Wisetech Global Limited
SEEK
Medibank Private Limited
Tabcorp Holdings Limited
Coca-Cola Amatil Limited
Qantas Airways Limited
CIMIC Group Limited
Treasury Wine Estates Limited
Computershare Limited
AusNet Services
BlueScope Steel Limited
Orica Limited
Two additional comparator groups supplemented the FY2021
benchmarking analysis to provide a more complete view of
Executive remuneration, reflecting common ASX-listed company
benchmarking approaches:
i. ASX-listed companies within the range of 50% to 200% of SEEK’s
market capitalisation based on a 12-month average market
capitalisation to 28 February 2021; and
ii. ASX-listed companies with international operations within the range
of 50% to 200% of SEEK’s market capitalisation based on a 12-month
average market capitalisation to 28 February 2021.
Application of benchmarking data
Executives’ TROs are determined by the Board with reference to:
i. The market positioning of each Executive’s TRO against the
primary comparator group;
ii. Individual performance, role scope and complexity, and internal
relativities amongst the Executives; and
iii. Availability of similar skills and experience in the domestic and
international marketplace.
Based on the FY2021 benchmarking outcomes, the Board determined to increase Ian Narev’s TRO upon appointment as the MD and
CEO effective 1 July 2021. The increase was delivered entirely through WSP Options and Rights, aligning Ian’s remuneration to the
market median of the primary comparator group. See section 1.1 for further detail.
For the CFO and other Executives, the Board is satisfied that the TRO for each individual is positioned appropriately against the
primary comparator group. Despite an increasing requirement for the scope of senior roles to expand across multiple geographies,
the majority of Executives are based locally and as such, it is appropriate to anchor remuneration primarily to the Australian market.
However, given the significant global footprint of SEEK and the associated demands, the ongoing monitoring of market positioning
against multi-national and global technology companies will continue to be a focus.
3.3 Base Salary and Superannuation
Provision of a competitive Base Salary that appropriately reflects the opportunities and challenges faced by Executives and the
expectation of high performance at all times and in all conditions, allows the focus to be on the job at hand. Together with the Equity
Rights and WSP Options/Rights, Executives have the confidence they will be fairly and well remunerated for their efforts throughout
the business cycle, without this being excessive.
Superannuation at SEEK is uncapped, with any amount earned over either the general concessional contributions cap or maximum
superannuation contributions base paid as cash and included within ‘cash salary’.
Executives are also eligible for cover under the SEEK salary continuance insurance policy available to all permanent employees, as
well as on-site car parking.
SEEK Limited Annual Report 2021
31
3.4 Equity Rights
Equity Rights ensure alignment with shareholders and emphasise the focus on sustainable, long-term shareholder wealth creation.
The provision of Equity Rights rather than a traditional STI, encourages Executives to think and act as owners and to channel their
actions to sustainably grow the business, rather than focus on short-term financial targets which may not be aligned with SEEK’s
long-term objectives.
The key features of the EEP are as follows:
• Equity Rights vest, subject to continued employment, after a one-year Qualifying Period. Shares allocated are subject to a further
one-year Disposal Restriction Period (in total, a two-year ‘lock-up’ period);
• The number of shares to be allocated is determined based on a VWAP for the 60 trading days leading up to the start of the
Qualifying Period (up to and including 30 June); and
• The actual value of each Equity Right is variable during the Qualifying and Disposal Restriction Periods based on the SEEK share
price at a given point in time. This means that Executives are always exposed to the same SEEK share price movements, up and
down, as shareholders.
Terms and duration
The terms of the FY2021 Equity Rights award are set out below. There were no design changes from the prior financial year and
no changes for FY2022.
Equity Rights
Objective
Ensuring Executives hold substantial equity in SEEK to create shareholder alignment and exposure to movements in SEEK’s
share price for the duration of the award.
Effective Date
1 July 2020
Grant date
Executives: 2 November 2020
CEO: 25 November 2020
Closing share price at
1 July 2020
$21.80
Qualifying Period
1 July 2020 to 30 June 2021
Lapsing condition
Equity Rights generally lapse where the Executive ceases employment before the end of the Qualifying Period. In other
circumstances, being good leaver events, the Executive’s Equity Right will remain on foot and the number of shares
that will be received will be adjusted to take into account the Executive’s service period. The Board retains discretion to
determine a different treatment if considered appropriate in the circumstances.
Vesting and allocation
methodology
Vesting is determined following the end of the Qualifying Period with the number of shares allocated to an Executive
determined by dividing the Executive’s FY2021 EEP award opportunity by the 60-day SEEK VWAP up to and including
30 June 2020, being $18.61.
Exercise price
$nil
Disposal Restriction
Period
Dividend and voting
entitlements
1 July 2021 to 30 June 2022
During the Disposal Restriction Period, the shares allocated following vesting of an Equity Right are referred to as
‘Deferred Shares’.
Executives are entitled to retain their Deferred Shares if employment ceases during the Disposal Restriction Period,
subject to the original restriction terms and compliance with post-employment obligations.
Executives are entitled to dividends on, and can exercise the voting rights attached to, Deferred Shares.
Change of control
The Board has discretion to determine an appropriate treatment for unvested Equity Rights and/or Deferred Shares.
Malus and clawback
Equity Rights and/or Deferred Shares may lapse or be forfeited, at the discretion of the Board, in certain circumstances
which include fraudulent behaviour or gross misconduct, material breach of contractual obligations or where equity
awards have vested as a result of a material misstatement in the financial statements.
Remuneration Report 32
3.5 Wealth Sharing Plan Options/Rights
Equity awards granted under the SEEK WSP represent the at-risk, long-term equity component of remuneration. The WSP is
designed to align Executive reward with long-term shareholder returns and support bold decision making to enhance SEEK’s
prospects, in all conditions and in all business cycles. The plan supports the retention of Executives and operates as a true ‘wealth
sharing’ arrangement, whereby reward is received only when shareholders have also done well over the same period.
The key features of the FY2021 WSP were as follows:
• Executives were offered the choice to receive a grant of Options and/or Rights. The number of awards granted to each Executive
is dependent on this choice: fewer Rights are offered compared to Options, reflecting the lower allocation value of an Option due
to the payment of an exercise price. The CEO, and Group COO and AP&A CEO, and several other participants elected to receive
their FY2021 WSP award as 50% Options and 50% Rights, while the remaining participants chose to receive 100% Rights. These
different elections demonstrate to the Board that choice is valued and worth retaining as it allows individuals to receive the award
that best aligns with their risk profile and personal circumstances. For FY2022, the newly appointed MD and CEO will receive his
WSP award as 50% Options and 50% Rights.
• Graduated vesting was introduced for the FY2021 WSP which replaced the previous cliff vesting approach. Vesting of Options and
Rights is subject to continued employment and achievement of the Threshold share price hurdle (Threshold Price). The Threshold
Price requires the SEEK share price to outperform the historical average of the Australian market applied on a Compound Annual
Growth Rate (CAGR) basis for vesting to occur. If the Threshold Price is not met, no vesting occurs and all Options and Rights
lapse. The Threshold Price also serves as the exercise price for Options.
•
If the Threshold Price is met, the actual number of Options and Rights that vest will be determined based on the graduated vesting
schedule. Full vesting occurs at the Stretch share price hurdle (Stretch Price) with pro-rata vesting between Threshold Price and
Stretch Price. Upfront disclosure of the Threshold Price and Stretch Price enable both Executives and shareholders to easily
monitor actual performance against hurdles at any time during the vesting period.
• While the plan has the potential to result in substantial reward for Executives, the requirement for absolute share price growth ensures
a clear link to the value created for shareholders over the vesting period. While the share price performance hurdle is a purely capital
hurdle, which excludes dividends, shareholders receive the benefit of any dividends paid to them in addition to any capital returns. In
other words, any reward delivered to Executives under this plan is closely aligned with the experience of SEEK’s shareholders.
• Awards have a three-year vesting period followed by a one-year exercise restriction. This means that even after awards have
vested, the value that may be realised by Executives remains subject to movements in the SEEK share price. Exposure to a
further year of share price variability means that if SEEK’s share price decreases following achievement of the share price hurdle,
Executives will experience the same downside as shareholders (and vice versa).
SEEK Limited Annual Report 2021 3.5 Wealth Sharing Plan Options/Rights continued
Terms and duration
The terms of the FY2021 Wealth Sharing Plan award (including the design changes introduced for FY2021) are set out below. There
were no design changes from the prior financial year and no changes for FY2022.
33
Objective
Effective Date
Grant date
Vesting period
Testing date
Wealth Sharing Plan Options/Rights
Ensuring Executives focus on sustainable absolute increases in shareholder value over the long-term.
1 July 2020
CEO: 25 November 2020
Executives: 2 November 2020
1 July 2020 to 30 June 2023
30 June 2023
Exercise restriction period
1 July 2023 to 30 June 2024
Exercise period
Expiry date
Fair value at Effective Date
(allocation value)(1)
Fair value at grant date
(accounting value)(1)
1 July 2024 to 30 June 2025
30 June 2025
Option: $2.90; Right: $8.78
CEO: Option: $7.69 and Right: $19.09 at 25 November 2020
Executives: Option: $4.26 and Right: $11.96 at 2 November 2020
Closing share price at grant
date(2)
CEO: $26.18 at 25 November 2020
Executives: $21.33 at 2 November 2020
Exercise price
Option: $20.51; Right: $nil
Performance conditions
Lapsing condition
Vesting will only occur if the Testing Date Price achieves the Threshold Price, and once met the proportion of
the award that vests is dependent on the extent of achievement against the Stretch Price. The Testing Date
Price is the 60-day SEEK VWAP up to and including 30 June 2023.
Threshold Price is $20.51 calculated by applying the CAGR of ASX All Ordinaries Index15-year average growth
(3.30% for FY2021) to the 60-day SEEK VWAP up to and including 30 June 2020 ($18.61 for FY2021), over the
three-year vesting period.
Calculation: (1+0.033)^3-year period x $18.61 = $20.51
Stretch Price is $22.16 calculated by applying a CAGR of 6.00% to SEEK’s VWAP for the 60 trading days up to
and including 30 June 2020, over the three-year vesting period.
Calculation: (1+0.060)^3 year period x $18.61 = $22.16
Options/Rights will lapse, subject to Board discretion, where the Executive ceases employment before the
testing date as a result of summary dismissal, or less than one year has elapsed between the Effective Date
and the date of cessation.
In other circumstances, the Executive’s Options/Rights will be pro-rated based on service period and remain
on foot, subject to their original terms, unless the Board determines otherwise.
Vesting schedule
If the Threshold Price is met, the actual number of Options and Rights that vest will be determined based on
the graduated vesting schedule per below and no re-testing will occur.
If the Testing Date Price is
Less than the Threshold Price
At the Threshold Price ($20.51, 3.30% CAGR)
Proportion of award that vests
0%
50%
Between Threshold Price and Stretch Price
Pro-rata vesting on a straight-line basis
At or above the Stretch Price ($22.16, 6.00% CAGR)
100%
Prior to the FY2021 award, cliff vesting rather than the above graduated vesting applied. Options/Rights
vested where the share price hurdle, calculated based the methodology referenced above for the Threshold
Price, was achieved.
The number of Options/Rights granted to an Executive was determined by dividing the Executive’s FY2021
WSP award opportunity by the fair value of the Options/Rights as at the Effective Date.
For the FY2021 award, the fair value was based on a 60-day VWAP up to an and including 30 June 2020 and
was determined independently by Ernst & Young using a Monte-Carlo simulation model, which takes into
consideration factors such as the performance hurdle, probability of the hurdle being achieved, share price
volatility, expected life of the award, dividend yield and risk-free rate.
Allocation methodology
Change of control
Malus and clawback
The Board has discretion to determine an appropriate treatment for unvested and/or vested, but unexercised Options/
Rights.
Unvested and vested, but unexercised Options/Rights may lapse or be forfeited, at the discretion of the
Board, in certain circumstances which include fraudulent behaviour or gross misconduct, material breach
of contractual obligations or where equity awards have vested as a result of a material misstatement in the
financial statements.
(1) A fair value per Option/Right was determined based on the 60-day VWAP up to but excluding the Effective Date, 1 July 2020 for purposes of calculating the number of Options/Rights to be
allocated to the CEO and other Executives.
(2) WSP Options/Rights were granted to Executives on 2 November 2020; and to the CEO on 25 November 2020 following shareholder approval of the CEO’s FY2021 WSP award at SEEK’s
2020 AGM. The closing share prices and fair values at grant date therefore reflect SEEK’s share price and the fair value per Option/Right as at the respective grant dates. The fair values at
grant date are the values attributed to the CEO and Executives’ FY2021 WSP Options/Rights for accounting purposes, as shown in section 6.3.
Remuneration Report 34
Value of the CEO’s FY2021 Wealth Sharing Plan award
The Board acknowledges that some shareholders and proxy advisors have a preference to convert the fair value of the CEO’s WSP award
into an equivalent face value amount. The CEO elected to receive his FY2021 WSP award as 50% Options and 50% Rights. While the
Options component is difficult to translate into a face value equivalent as Options have an exercise price attached, for transparency, a
conversion of the Rights component is provided below.
Andrew Bassat
71,558
$628,279
$1,331,694
Number of Rights
Fair value of Rights
Face value of Rights
The CEO’s FY2021 WSP award was equal to 25% of his TRO. Following shareholder approval at SEEK’s 2020 AGM, this resulted
in 216,649 Options being granted at a fair value for allocation purposes of $2.90 (determined by Ernst & Young at the start of the
performance period, 1 July 2020) and 71,558 Rights being granted at a fair value of $8.78. The equivalent face value of the WSP Rights,
based on SEEK’s 60-day VWAP up to and including 30 June 2020, was $18.61.
The difference between the fair and face value of WSP Rights reflects the degree of difficulty associated with achieving full vesting
under the plan: a combination of SEEK having a share price performance hurdle that requires absolute share price growth over the
vesting period irrespective of any external conditions; and the graduated vesting approach. The fair value also takes into account
dividends foregone during the vesting period.
3.6 Executive performance evaluations
SEEK’s leaders are held to a high standard of performance in relation to their behaviours and outcomes expected of them. The
performance of each Executive including the CEO is assessed annually, with quality feedback conversations conducted on an
ongoing basis throughout the year. The CEO’s performance assessment is conducted by the Board, followed by a one-on-one
discussion between the Chairman and the CEO, which considers the operational and financial results achieved, management of
principal risks, demonstrated leadership behaviours and the culture fostered within the organisation. Executives’ performance is
assessed by the CEO and presented to the Board for discussion and review. Discussions about CEO and Executive performance
also occurs at Board and Committee meetings on a regular basis throughout the year.
Performance assessments for all SEEK employees are undertaken primarily against SEEK’s performance framework, referred to as
‘This is SEEK’. The framework considers both the individual and collective outcomes achieved, along with how well each individual
has demonstrated the SEEK values and attributes when achieving these. For the CEO, Executives and other senior leaders, other
inputs into their performance assessment include formal ‘360 degree’ feedback and the results and insights from engagement
surveys.
3.7 Executive contractual terms
Executives’ remuneration and other key employment terms are formalised in individual employee agreements. Each of these
agreements provides for Base Salary and Superannuation, the Equity Right and WSP Options/Rights. Executives’ TROs are
reviewed on an annual basis.
The table below outlines contractual arrangements for the CEO and Executives.
Individual
Contract term Notice period - employer
Notice period - employee
Post-employment restraints
CEO and other
Executives
Ongoing
Six months
Six months
12-month non-competition period across
all markets in which SEEK operates
Prior to the appointment of an Executive, SEEK undertakes references and background checks to validate the candidate’s
experience and character.
SEEK has the option to terminate employment with a payment in lieu of notice. Any payment in lieu of notice is not to exceed
average annual base salary as defined by the Corporations Act 2001. SEEK may terminate employment immediately for cause, in
which case the Executive is not entitled to any payment in lieu of notice.
.
SEEK Limited Annual Report 2021 n
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Remuneration Report
36
4. Remuneration governance framework and related policies
SEEK’s remuneration governance framework and related policies ensure that integrity of the remuneration strategy is upheld, and the
desired outcomes are delivered. The diagram below illustrates SEEK’s remuneration governance framework, key roles of the Board
and Remuneration Committee (Committee) and related policies.
Board
Reviews, challenges and as appropriate, approves the Committee’s recommendations
Assesses performance of the CEO and approves CEO remuneration
Remuneration Committee
Comprised entirely of independent Non-Executive Directors:
Graham Goldsmith (Chairman), Leigh Jasper, Linda Kristjanson (from 9 October 2020), Vanessa Wallace
Non-Executive Directors who are not Committee members attend Committee meetings by
invitation, ensuring decisions are not made in isolation
Reviews and makes
recommendations to the Board
on remuneration quantum
and structure for the CEO and
Executives, and Non-Executive
Director fees
Ensures the SEEK
remuneration approach aligns
with and supports SEEK’s
purpose, values, strategic
objectives and risk appetite
Ensures remuneration is
sufficiently competitive and
flexible to attract and retain
appropriately qualified,
experienced Executives
Malus and clawback: Should the circumstances require(1), makes recommendations to the Board to
apply malus or clawback for unvested and/or vested but restricted or unexercised equity awards for
Executives per the SEEK Equity Plan rules
Independent
remuneration advisors
Engaged from time to time to provide
relevant information or an external
perspective to assist with Committee
decision making(2)
Engaged by the Committee,
independent of management, where
a recommendation is provided. For
FY2021, no recommendation was
made by a remuneration consultant as
defined in the Corporations Act 2001.
Ernst & Young was engaged to provide
Executive benchmarking data to inform
the Committee of current market
positioning (see section 3.2) and to
provide market practice and insights to
support SEEK’s WSP review
Management
Regularly reports to the
Committee and provides
information on issues
that may impact their
decisions
Attends meetings
by invitation, but do
not participate in
decisions regarding
their own remuneration
arrangements
Related Policies
SEEK Share Trading Policy – Restricts dealing in SEEK securities by directors, Executives, other senior leaders and selected
SEEK employees (Designated Persons) and prohibits Designated Persons from entering into arrangements which have the
effect of limiting the economic risk related to an unvested or vested but restricted equity awarded under a SEEK employee
incentive scheme. All KMP, Executives and certain other senior leaders are also restricted from entering into margin loans in
respect to SEEK’s securities, unless approved by the Chairman. No margin loans were entered into by KMP during FY2021
and none are currently on foot. The Share Trading Policy can be found on the Corporate Governance page in the Investors
section of SEEK’s website at https://www.seek.com.au/about/investors/corporate-governance.
SEEK Minimum Shareholding Policy – Promotes the alignment of interests of Executives and Non-Executive Directors
with the interests of shareholders. The relevant amount of SEEK equity required to be held under the policy and the time
to comply is as follows:
Category
CEO
Executives
Non-Executive Director
Annual base salary and
superannuation or annual fee
Acquisition timeframe for
new appointees
Equity included to meet requirement
200%
100%
100%
Over 3 years
Shares, vested WSP Options/Rights
and unvested Equity Rights
Over 5 years, 20% each year
until requirement achieved
Shares (including shares held by a
controlled entity or beneficially)
In FY2021, the CEO, Executives and Non-Executive Directors met or are on track to meet, their minimum shareholding requirements as
outlined above.
(1) Circumstances include instances of fraudulent behaviour or gross misconduct, material breach of contractual obligations or where equity awards have vested as a result of a
misstatement in the financial statements.
Information sought includes market movements, trends, and regulatory developments to assist the Board to determine the right approach for SEEK.
(2)
SEEK Limited Annual Report 2021
37
5. Non-Executive Director fees
SEEK’s Non-Executive Director fees aim to appropriately recognise the time, contribution, and expertise of each director. The following
sections set out how SEEK’s director fees are determined and details the actual Non-Executive Director fees paid in FY2021.
5.1 Non-Executive Director fee policy
The following table outlines SEEK’s Non-Executive Director fee policy and terms:
Aggregate Non-Executive
Director fee limit
Non-Executive Director fees are determined within a yearly aggregate directors’ fee limit.
The current aggregate fee limit of $1,800,000 per annum was approved by shareholders at the 2016 AGM.
Non-Executive Director
fee reviews
Non-Executive Director fees and payments are reviewed annually by the Committee, and approved by the Board, to
ensure fees are appropriately positioned in the market to attract and retain high calibre Non-Executive Directors.
In FY2021 Board and Committee fees remained unchanged for the second consecutive year from their FY2019 levels
considering the business challenges arising from COVID-19.
Non-Executive Director
fees FY2022
In FY2021, independent remuneration consultants (Ernst & Young) provided the Remuneration Committee with a
comparative benchmarking analysis on director fees. The analysis highlighted SEEK’s fees had generally fallen below
market rates relative to the primary comparator group due to SEEK’s modest increases in fees since 2016 (when the
last review was conducted by Ernst & Young) compared to SEEK’s growth in market capitalisation over the same period.
Based on this analysis, the Board determined increases to director fees effective 1 July 2021 as set out below.
Chairman of the Board(1)
Non-Executive Directors
Additional fees are paid for the following roles:
Chairman of the Audit and Risk Management Committee
Member of the Audit and Risk Management Committee
Chairman of the Remuneration Committee(1)
Member of the Remuneration Committee
Member of the Nomination Committee(1)
FY2021
$410,000
$154,000
FY2022
$424,000
$160,000
Increase
3.4%
3.9%
$38,000
$19,500
$31,000
$15,500
$0
$39,500
$19,500
$32,000
$16,000
$0
3.9%
0%
3.2%
3.2%
n/a
Superannuation
The fees set out above include superannuation payments in accordance with relevant statutory requirements.
Any superannuation amount earned over the general concessional contributions cap is paid as cash and included
within ‘cash salary’.
Non-Executive Director
shareholding requirement
All Non-Executive Directors are required to hold SEEK shares equivalent to one year of their annual base director fee.
Refer to section 4 for further detail.
Performance-based
remuneration
Non-Executive Directors do not receive share options or rights or any performance-based remuneration.
(1) No Remuneration Committee Chair, or other Committee, fees are payable to the Chairman of the Board.
Remuneration Report 38
5.2 Non-Executive Director fees
Details of the actual fees paid to each Non-Executive Director of SEEK Limited for FY2021 and FY2020 are set out in the following
table. The total Non-Executive Director fees paid for FY2021 were $1,263,272, which is below the current annual aggregate fee limit of
$1,800,000.
G B Goldsmith
J A Fahey
L M Jasper
L J Kristjanson(2)
M H Wachtel
V M Wallace
Former Non-Executive Director
D I Bradley(3)
Total
Short-term benefits
SEEK Limited
director fees
$
384,339
386,211
158,448
158,448
154,795
154,795
122,571
-
175,342
175,342
172,603
172,603
-
116,096
1,168,098
1,163,495
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
Non-monetary
benefits(1)
$
5,792
5,815
-
-
-
-
-
-
-
-
-
-
-
-
5,792
5,815
Post-employment
benefits
Superannuation
$
25,661
23,789
15,052
15,052
14,705
14,705
909
-
16,658
16,658
16,397
16,397
Total
$
415,792
415,815
173,500
173,500
169,500
169,500
123,480
-
192,000
192,000
189,000
189,000
-
11,029
-
127,125
89,382 1,263,272
1,266,940
97,630
(1) Non-monetary benefits relate to car parking benefits.
(2) Linda Kristjanson was appointed as a Non-Executive Director and a member of the Remuneration Committee effective 9 October 2020.
(3) Denise Bradley ceased to be a Non-Executive Director effective 20 March 2020.
Effective 1 July 2021, Andrew Bassat was appointed as a Non-Executive Director and will receive the associated fee from this time.
He will not be a member of a Board Committee other than the Nomination Committee, and hence will not receive any Committee Fees.
6. Other KMP disclosures
6.1 Ordinary shareholdings – SEEK Limited
The number of ordinary shares in SEEK Limited held during FY2021 by each KMP, including their personally related parties, is set out
below. No shares were granted during the reporting period as compensation.
FY2021 - SEEK Limited shares
Non-Executive Directors
G B Goldsmith
J A Fahey
L M Jasper
L J Kristjanson(2)
M H Wachtel
V M Wallace
Executive KMP
A R Bassat
I M Narev
G I Roberts
Balance at
the start of
the year
Received
during the year
on exercise of
WSP Rights
Received
during the year
on exercise of
ongoing Equity
Rights(1)
Purchase
of shares
Sale of
shares
Other
changes
during
the year
Balance at
the end of
the year
50,000
8,888
68,133
-
4,000
17,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,137
-
-
-
-
-
-
-
-
14,756,293
68,179
189,021
182,126
-
88,603
63,303
47,858
29,501
-
-
-
-
-
(161,043)
-
-
-
-
-
-
-
-
-
50,000
8,888
68,133
1,137
4,000
17,000
15,001,722
116,037
146,082
(1) Relates to the FY2020 EEP award which vested following the end of the Qualifying Period on 30 June 2020. The shares allocated during FY2021 remained subject to a disposal restriction until 1 July 2021.
(2) Linda Kristjanson commenced as a Non-Executive Director on 9 October 2020. The nil balance reported as at the start of the financial year reflects that she did not hold SEEK shares as at the date of
appointment.
SEEK Limited Annual Report 2021 39
6.2 Other equity holdings
The number of Options and Rights over Ordinary shares in SEEK Limited held during FY2021 by each Executive KMP (as a result of
Equity Rights grants or awards made under the WSP), including their personally related parties, are set out below.
Balance at the
start of the
year
Granted
during the
year as
compensation
Exercised
during
the year
Forfeited
during the
year
Balance at
the end of the
year
Vested and
exercisable at
the end of the
year
Vested and
unexercisable
at the end of
the year
Unvested at
the end of the
year
554,336
206,187
297,008
71,558
54,100
66,697
(182,126)
-
(88,603)
(243,147)
-
(150,018)
200,621
260,287
125,084
243,520
720,121
216,649
163,793
1
1
1
1
1
1
-
-
(1)
(1)
(1)
(225,503)
-
234,666
883,914
-
-
-
1
1
1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
200,621
260,287
125,084
234,666
883,914
1
1
1
FY2021
WSP Rights(1)
A R Bassat
I M Narev
G I Roberts
WSP Options(1)
A R Bassat
I M Narev
Equity Rights
A R Bassat
I M Narev
G I Roberts
(1) For FY2021, Andrew Bassat and Ian Narev elected to receive their WSP award as 50% WSP Options and 50% WSP Rights.
6.3 Equity grants on foot during FY2021
The required statutory disclosures of equity grants for SEEK’s KMP are set out below.
Executive KMP
A R Bassat(2)
I M Narev
G I Roberts
Vesting period
Grant date
1 Jul 2016 - 30 Jun 2019 (3)
1 Jul 2017 - 30 Jun 2020 (4)
1 Jul 2018 - 30 Jun 2019 (5)
1 Jul 2018 - 30 Jun 2021 (6)
1 Jul 2019 - 30 Jun 2020 (7)
1 Jul 2019 - 30 Jun 2022 (8)
1 Jul 2019 - 30 Jun 2022 (8)
1 Jul 2020 - 30 Jun 2021 (9)
1 Jul 2020 - 30 Jun 2023 (8)
1 Jul 2020 - 30 Jun 2023 (8)
1 Jul 2018 - 30 June 2019 (5)
29 Apr 2019 - 28 Apr 2020 (10)
29 Apr 2019 - 28 Apr 2022 (10)
29 Apr 2019 - 28 Apr 2022 (10)
1 Jul 2019 - 30 Jun 2020 (7)
1 Jul 2019 - 30 Jun 2022 (8)
1 Jul 2019 - 30 Jun 2022 (8)
1 Jul 2020 - 30 Jun 2021 (9)
1 Jul 2020 - 30 Jun 2023 (8)
1 Jul 2020 - 30 Jun 2023 (8)
1 Jul 2016 - 30 Jun 2019 (3)
1 Jul 2017 - 30 Jun 2020 (4)
1 Jul 2018 - 30 Jun 2019 (5)
1 Jul 2018 - 30 Jun 2021 (6)
1 Jul 2019 - 30 Jun 2020 (7)
1 Jul 2019 - 30 Jun 2022 (8)
1 Jul 2020 - 30 Jun 2021 (9)
1 Jul 2020 - 30 Jun 2023 (8)
19 Dec 2016
4 Dec 2017
6 Dec 2018
6 Dec 2018
29 Nov 2019
29 Nov 2019
29 Nov 2019
25 Nov 2020
25 Nov 2020
25 Nov 2020
11 Jun 2019
11 Jun 2019
11 Jun 2019
11 Jun 2019
23 Sep 2019
23 Sep 2019
23 Sep 2019
2 Nov 2020
2 Nov 2020
2 Nov 2020
3 Oct 2016
17 Oct 2017
16 Oct 2018
16 Oct 2018
23 Sep 2019
23 Sep 2019
2 Nov 2020
2 Nov 2020
# of
options
and rights
granted
Fair value of
options and
rights at grant
date(1)
Exercise
price
Vested
%
Vested
#
Forfeited /
lapsed %
182,126
171,941
1
129,676
1
243,520
70,593
1
216,649
71,558
1
1
536,013
152,817
1
184,108
53,370
1
163,793
54,100
88,603
83,648
1
58,959
1
65,798
1
66,697
$0.00
$0.00
$0.00
$0.00
$0.00
$23.18
$0.00
$0.00
$20.51
$0.00
$0.00
$0.00
$20.95
$0.00
$0.00
$23.18
$0.00
$0.00
$20.51
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$994,408
$1,547,469
$1,256,565
$510,923
$1,256,565
$869,366
$849,940
$1,256,565
$1,666,031
$1,366,042
$164,422
$1,066,667
$1,801,004
$1,671,818
$950,000
$533,913
$531,565
$950,000
$697,758
$647,036
$571,489
$714,354
$571,320
$364,367
$585,603
$655,348
$585,603
$797,696
100%
-
100%
100%
100%
n/a
n/a
100%
n/a
n/a
100%
100%
n/a
n/a
100%
n/a
n/a
100%
n/a
n/a
100%
-
100%
100%
100%
n/a
100%
n/a
182,126
-
1
129,676
1
n/a
n/a
1
n/a
n/a
1
1
n/a
n/a
1
n/a
n/a
1
n/a
n/a
88,603
-
1
58,959
1
n/a
1
n/a
0%
100%
0%
0%
0%
33%
33%
0%
67%
67%
0%
0%
n/a
n/a
0%
n/a
n/a
0%
n/a
n/a
0%
100%
0%
0%
0%
33%
0%
67%
(1) For Equity Rights, fair value is the allocated value of the Equity Right. For WSP Options/Rights, fair value is the accounting fair value at grant.
(2) For Andrew Bassat, equity grants were made subsequent to obtaining shareholder approval at the relevant AGM per ASX Listing Rule 10.14.
(3) The FY2017 WSP award vested in full during FY2020 and these rights were exercised during FY2021, following the exercise restriction period that ended on 30 June 2020.
(4) The FY2018 WSP award lapsed during FY2021. Lapsing occurred following the testing date of 30 June 2020 as the share price hurdle of $19.79 had not been achieved.
(5) The FY2019 Equity Right vested in full during FY2020 (with restrictions lifted on resulting shares in FY2021).
(6) The FY2019 WSP award vested during FY2022. Vesting occurred following the testing date of 30 June 2021 as the share price hurdle of $24.39 had been achieved.
(7) The FY2020 Equity Right vested in full during FY2021 (with restrictions lifted on resulting shares in FY2022).
(8) As per prior year WSP awards, if the share price hurdle for the FY2020 and FY2021 award is met and the awards subsequently vest, vested awards will be subject to a one-year exercise restriction period.
Participants will then have a one-year exercise period within which to exercise their vested awards, including WSP Options which require payment of an exercise price.
(9) The FY2021 Equity Right vested in full during FY2022 (with restrictions lifting on resulting shares in FY2023).
(10) During FY2019, Ian Narev received a one-off sign-on equity award comprising one Equity Right with an allocation value of $1,066,667 which vested in FY2020, 152,817 WSP Rights with an allocation value of $6.98
per Right and 536,013 WSP Options with an allocation value of $1.99 and an exercise price of $20.95 per Option. Vesting of the WSP Rights and Options is subject to achievement of a three-year share price hurdle.
Remuneration Report
40
6.4 Shares under option
Unissued Ordinary shares of SEEK Limited under option at the date of this Report are as follows:
Date granted
CEO Options/Rights
6 December 2018
29 November 2019
29 November 2019
25 November 2020
25 November 2020
Other Options/Rights
16 October 2018
11 June 2019
11 June 2019
23 September 2019
23 September 2019
6 March 2020
2 November 2020
2 November 2020
12 March 2021
Total shares under option(2)
Expiry date
Exercise price(1)
Number of shares
under option
1 July 2023
1 July 2024
1 July 2024
1 July 2025
1 July 2025
1 July 2023
28 April 2024
28 April 2024
1 July 2024
1 July 2024
1 July 2024
1 July 2025
1 July 2025
1 July 2025
$0.00
$23.18
$0.00
$20.51
$0.00
$0.00
$20.95
$0.00
$23.18
$0.00
$0.00
$20.51
$0.00
$20.51
129,676
162,450
47,092
72,216
23,853
340,523
536,013
152,817
211,392
396,607
28,313
220,858
525,857
14,612
2,862,279
(1) Unlike Options, Rights do not have an Exercise Price.
(2) Balance excludes Equity Rights and Performance Rights which vested on 1 July 2021. Corresponding fulfilment of these shares will occur by early September 2021.
6.5 Shares or options over shares in subsidiaries
KMP do not hold any shares or options over shares in any subsidiaries of SEEK.
6.6 Loans to KMP
There were no loans to KMP during FY2021 (FY2020: $nil).
6.7 Other transactions with KMP
Some of the Non-Executive Directors hold directorships or positions in other companies or organisations. From time to time, SEEK
may provide or receive services from these companies or organisations on arm’s length terms. None of the Non-Executive Directors
were, or are, involved in any procurement or Board decision-making regarding the companies or organisations with which they have
an association. There were no other transactions with KMP during FY2021.
This Directors’ Report is made in accordance with a resolution of the directors.
Graham Goldsmith
Chairman
Melbourne
24 August 2021
SEEK Limited Annual Report 2021 AUDITOR’S INDEPENDENCE DECLARATION
41
Auditor’s Independence Declaration
As lead auditor for the audit of SEEK Limited for the year ended 30 June 2021, I declare that to the
best of my knowledge and belief, there have been:
(a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
(b) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of SEEK Limited and the entities it controlled during the period.
Chris Dodd
Partner
PricewaterhouseCoopers
Melbourne
24 August 2021
PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
Auditor’s Independence Declaration
42
Message from the
Chief Executive
I am pleased to introduce SEEK’s 2021 Sustainability Report.
Since its inception, SEEK has been guided by its purpose: to help people live more fulfilling
and productive working lives and to help organisations succeed. We strive always to think
and act with long-term goals in mind.
Like all businesses we aspire to attract, motivate and develop great people. Our history
shows us that if we focus first on our people, they will create distinctive value for our
customers. That will in turn translate into long-term returns for our shareholders.
Thinking long-term also requires us to consider our impact on the communities in which
we operate, and to identify areas where we can apply our capabilities for broader public
good. We want to achieve, and hold ourselves accountable for, positive outcomes for all
our stakeholders.
The past year has been dominated by the continuing challenges associated with the
COVID-19 pandemic. In all countries in which we operate, our priority is keeping our
people physically and emotionally safe. Our first actions following the onset of the
pandemic concentrated on understanding and following health advice relating to the way
our people work, and assuring our permanent employees there would be no COVID-19
related job cuts, even in the early days of the pandemic when revenue more than halved.
We also identified ways we could support our customers and took appropriate action.
Despite a much stronger than expected economic recovery late in FY2021, particularly in
Australia, we are still dealing with the impact of the pandemic daily, especially in some of
our Asian and Latin American businesses.
Whilst COVID-19 was the dominant theme of the year, we were still able to progress a
number of other important initiatives. Most notably, we:
• Clarified and made practical SEEK’s commitment to fair hiring on SEEK’s employment
platforms through our focus on candidate safety and responsible job advertising,
particularly in South East Asia.
• Accelerated and broadened the scope of our program to assess modern slavery
beyond SEEK’s supply chains by examining the risks to candidates responding to job
ads on SEEK’s employment platforms.
• Continued to learn about, and implement, leading practices for mitigating key artificial
intelligence ethics and bias risks when connecting millions of candidates with job
opportunities on SEEK’s employment platforms.
• Committed to identify, disclose and manage climate-related risks in line with the
Recommendations of the Task Force on Climate-related Financial Disclosures.
Initiatives that focus on long-term wellbeing by definition take time. In all of the above
areas, whilst we have made tangible progress and built momentum, a great deal of hard
work lies ahead. Over the next year, goals that we have set ourselves include:
•
Increasing awareness by SEEK’s hirers, candidates and employees in South East Asia
about candidate safety and responsible job advertising.
• Taking measurable steps to improve gender balance in SEEK’s hiring outcomes.
• Finalising and implementing a detailed emissions reductions strategy addressing
SEEK’s global carbon emissions.
• Deepening our relationships with Aboriginal and Torres Strait Islander communities
throughout Australia to enable us to proactively support those communities in relation
to our products and services, our supply chain and our general business practices.
We look forward to reporting on our progress on these initiatives during the year and
specifically in next year’s report.
Ian Narev
Chief Executive Officer
SEEK Limited Annual Report 2021 SUSTAINABILITY
REPORT
Reporting topics
43
46
47
49
50
52
55
56
58
62
63
65
66
67
69
71
Social
Customers
• Data trust and data privacy
• Use of data
• Business resilience
• Cybersecurity
• Customer experience
Community
• Social impact
• Social contribution
Employees
• Our people
• Workplace health and safety
• Diversity and inclusion
Environment
• Responding to climate change
• Energy and emissions
• Task Force on Climate-related
Financial Disclosures
Governance
• Protecting human rights and
labour standards
• Promoting responsible and
ethical business practices
ESG accountability and oversight
The Board through the Audit and Risk Management
Committee is responsible for oversight and management of
non-financial risks, including ESG risks. All directors receive
the Audit and Risk Management Committee papers and
generally attend the meetings which are then reported the
Board. The Board devotes considerable time to material ESG
risks and also receives periodic updates on emerging ESG
matters relevant to SEEK. The Board approves internal Risk
Appetite Statements and SEEK’s ‘Principal risks’ disclosure
and, after consideration of stakeholder expectations,
approves the ESG reporting topics and subsequently
this Report.
The Chief Financial Officer is accountable for sustainability
reporting supported by senior management working in
key areas of ESG risk, as well as employees with specialist
ESG skills.
Reporting what matters
Sustainability reporting is increasingly in focus as investors,
potential employees and customers look at how a company
performs well beyond its financial statements. During the year
there has been continued interest from investors in SEEK’s
performance in key environmental, social and governance
(“ESG”) areas, particularly the response to climate change.
SEEK’s sustainability reporting describes performance and
initiatives across key non-financial risks. Through increased
transparency the aim is to further build trust with investors,
customers and the community about how SEEK manages its
ESG risks and opportunities.
The topics covered in this report are the ESG risks that could
impact SEEK’s ability to sustain future financial performance,
deliver the long-term strategy and have the positive impact
embodied in SEEK’s Purpose.
Topic selection was guided by a materiality assessment
and informed by stakeholders, both internal and external,
combining feedback from investors, SEEK leaders and
subject matter experts. Selection of reporting topics involved
close consideration of the external environment, the ASX
Corporate Governance Principles and Recommendations, the
Sustainability Accounting Standards Board (SASB) materiality
map and the Group Reporting Initiative (GRI) Standards.
Topic weighting was informed by a self-assessment of the
impact of the ESG topics on SEEK’s customers, employees
and investors.
Report scope and boundary
SEEK was founded in 1997 and is headquartered in
Melbourne, Australia. Since then, growth through the
acquisition of online employment marketplaces in South
East Asia and Hong Kong (“SEEK Asia”) and Latin America
has expanded SEEK’s global footprint.
This report addresses the business activities of SEEK
Limited (“SEEK”) which are material ESG topics.
SEEK’s ESG approach is evolving across the global
footprint. This report describes the global approach where
it is applied across SEEK, particularly in the areas of
“Governance” and “Environment”. “Social” topics relating
to product, technology and customer reflect the approach
in Australia and New Zealand (“SEEK ANZ”). This is
transitioning from a localised to a unified approach. The
current focus, called Market Unification, is to leverage
the SEEK ANZ product and technology capability to drive
efficiencies and growth for SEEK Asia. Management
of related ESG risks is being unified to the SEEK ANZ
standard which is the standard described in this report.
Investments by SEEK that are not under its operational
control do not form part of the disclosures.
Sustainability Report 44
United Nations Sustainable Development Goals
SEEK supports the United Nations Sustainable Development Goals
(SDGs), a blueprint to achieve a better and more sustainable future for
all. SEEK contributes to the goals that are most relevant to its business
strategy and operations.
SEEK’s Purpose:
To help people live more fulfilling and productive
working lives and help organisations succeed.
SEEK’s Belief:
Having a positive impact on society.
SEEK’s Approach:
Responsible and ethical business practices.
Goal
SDG Target
SEEK’s contribution towards the Target
8.5
8.7
5.5
By 2030, achieve full and productive
employment and decent work for all
women and men, including for young
people and persons with disabilities, and
equal pay for work of equal value
As a leader in online employment marketplaces, SEEK delivers access
to employment opportunities to millions of people. Economic growth is
positively associated with job creation.
SEEK provides its employees with meaningful work and equal access to
opportunities leading to high employee engagement. SEEK is committed
to an inclusive culture which values diversity of thought, opinion and
background.
Take immediate and effective measures
to eradicate forced labour, end modern
slavery and human trafficking and secure
the prohibition and elimination of the
worst forms of child labour, including
recruitment and use of child soldiers, and
by 2025 end child labour in all its forms
SEEK is committed to doing what it can to ensure that its employment
platforms do not enable or facilitate unfair or unethical hiring
practices or modern slavery of any kind. SEEK is working to ensure
candidate interactions with the platforms result in safe and fair
employment outcomes.
SEEK is increasing its focus on supply chain integrity and social
procurement, including environmental and human rights considerations.
Ensure women’s full and effective
participation and equal opportunities for
leadership at all levels of decision-making
in political, economic and public life
SEEK recognises that achieving diversity in all forms is important for an
innovative and high performing business. SEEK has a specific focus on
gender balance given the significant under-representation of women in
professional roles in the technology industry.
13.1
Strengthen resilience and adaptive
capacity to climate-related hazards and
natural disasters in all countries
SEEK is committed to supporting the transition to a lower-carbon
economy. This is demonstrated through a commitment to achieving
carbon neutrality across global operations including the development of
an emissions reduction strategy targeting net-zero by 2030.
17.17
Encourage and promote effective
public, public-private and civil
society partnerships, building on the
experience and resourcing strategies of
partnerships
SEEK believes in working collaboratively to support the communities in
which it operates. SEEK invests to connect volunteers to opportunities
with not-for-profit organisations, works with charity partners to provide
financial and in-kind support and is a long-term sponsor of LBGTIQA+
community events.
SEEK Limited Annual Report 2021 45
Stakeholder expectations and engagement
Stakeholders provide valuable insights into how SEEK is performing in delivering on its Purpose and inform SEEK’s approach to the
management of sustainability issues and reporting.
Stakeholder
ESG expectations of SEEK
How SEEK engages on ESG matters
Customers
• candidates
• hirers
• Employment services that enhance productive working lives
• Safe and reliable access to online services
• Open communication and remedying of mistakes
• Protection of Personally Identifiable Information (PII)
• Reasonable cost for services
• Clear explanation on the SEEK employment platforms for candidates
about their data, privacy and online security
• Corporate reporting including the Sustainability Report
• Fair pricing and flexible contracts for customers
Employees
• Meaningful employment including fair pay, career
opportunities and training
• Safe working environment
• Diversity and inclusion
• Observe anti-discrimination and other employment laws
Internal engagement surveys
Induction and ongoing training
• Regular communications including All-Staff meetings
•
•
• Code of Conduct and other employee policies
• Talent attraction and retention strategy
Shareholders
•
Information about material non-financial risks and key ESG
topics to inform decision making
• Response to climate change risk
• Sound corporate governance practices
• Annual corporate reporting including the Sustainability Report and
Corporate Governance Statement
• Annual General Meeting
•
Investor relations program
• Participation in investor surveys
• Continuous disclosure to the ASX supplemented by the SEEK
Company website
Community
• Responsible business conduct
• Compliance with the law
• Payment of corporate taxes
• Responsible environmental performance
• Sustainability Report
• Corporate Governance Statement
• Tax Transparency Report
Government and
regulators
• Compliance with the law
• Engagement with regulators on relevant proposals
• Payment of corporate taxes
• Engagement with governments on policy development in the
employment and technology sectors
• Governance disclosures in the Sustainability Report
• Tax Transparency Report
Partners, suppliers
and financiers
• Conduct business fairly, ethically and lawfully
• Communicate openly and honestly
• Responsible supply chains
• As above
• Supplier Code of Conduct
This report for the year ended 30 June 2021 has been approved by the Board and is current as at 9 September 2021.
Looking to future reports
Evolving community expectations of environmental, social and governance standards for businesses will inform our approach to
sustainability. In this context SEEK continually improves its sustainability performance and reporting.
Current foundations
On the horizon
•
Increasing transparency for stakeholders on
sustainability issues
• Broader assessment of sustainability impacts across SEEK’s
global businesses
• Reporting topics based on materiality
• Updated ESG materiality assessment to reflect SEEK’s
• Climate risk disclosures aligned with the Task
force on Climate Related Financial Disclosures
(TCFD) reporting framework
• Greenhouse gas inventory for SEEK ANZ
business strategy
• Progress reports on SEEK’s response to climate change
• Enhanced metrics and relevant targets for material ESG risks
• External verification of sustainability disclosures
Sustainability Report 46
Data trust
When customers provide their
information, they trust SEEK to protect
their privacy and to use their data
ethically and for their benefit.
Data and insights form the foundation for SEEK’s products
and services. As candidates share more information about
themselves, SEEK is better placed to provide the most relevant
career and education insights to help them to fulfil their career
aspirations. For hirers, the breadth and depth of data that SEEK
captures improves the efficiency and effectiveness of hiring.
Protecting data privacy
Providing information is an essential part of the job search
process and helps candidates to stand out to employers.
When candidates provide their personal information to
SEEK, they expect their data will remain secure and be
used appropriately. SEEK is committed to meeting these
expectations and complying with privacy legislation.
SEEK aims to be transparent about how candidate information
is collected, used and protected and how candidates can
manage their personal information when using SEEK.
SEEK’s platforms display Privacy Statements explaining how
personal information is collected and used and how privacy
is protected. On the SEEK jobs website this is supported
by a concise plain language section titled ‘My Privacy’. For
questions or concerns about privacy of personal information,
SEEK provides customers with a dedicated contact point.
Candidates create their SEEK Profile by submitting their
personal information directly to the SEEK platform. Candidates
have control over the data they submit with access to edit or
delete their SEEK Profile at any time online. Candidates can
control the visibility of their SEEK Profile to hirers on SEEK’s
Talent Search platform and whether they are approachable for
job opportunities. They can also unsubscribe from receiving
job recommendations and career advice at any time.
Information about candidates’ job seeking intentions is also
collected by SEEK through analysis of their interactions with
the SEEK website or app. Some data collected provides career
and recruitment insights for SEEK based on how candidates
use the SEEK employment platforms. This is also used to
improve platform performance or make business decisions.
Data used in this way it is always aggregated and anonymised.
SEEK invests heavily to protect candidate, hirer and student
personal information and SEEK’s networks and applications
from unauthorised access. This involves a combination
of technical solutions, cybersecurity controls and internal
processes.
SEEK Profile
To use the services on SEEK’s employment platforms
candidates provide their details, including employment
and educational history and preferred employment
location. This is used to create a candidate’s SEEK Profile
which provides access to customised tools, services
and resources to assist them in finding a job. Candidates
can edit their SEEK Profile at any time. SEEK utilises
the candidate information in the SEEK Profile to meet
candidate and hirer needs such as:
• Enabling candidates to apply for a role on the platform
using their SEEK Profile, providing hirers with relevant
and structured data
• Enabling hirers to proactively search for and connect
with candidates
•
Making job recommendations to candidates
• Enabling candidates to stand out to hirers with
structured claims about their experience and verified
credentials from Certsy
SEEK has a Data Classification Policy and Data Sharing Standard
which together establish robust processes governing sharing
of data internally and outside of SEEK. Online training for
all employees was made available during FY2021 to ensure
understanding of their responsibilities to support SEEK’s data
principles. Awareness training on changes to privacy law in New
Zealand was provided to relevant employees during FY2021.
Procedures are in place for external data processing and storage,
in particular for Personally Identifiable Information (PII). This is
data which could reasonably be used to establish the identity of
an individual to whom the data belongs. Prior to entering into any
arrangement with a third party that involves sharing any PII, the
terms of that arrangement are reviewed by the legal and security
teams and a data handling and security assessment of the third
party is undertaken.
SEEK has not received any substantiated complaints regarding
customer privacy or encountered any notifiable data breach
under the Privacy Act 1988 (Cth) during the reporting period.
SEEK Limited Annual Report 2021 Use of data
47
Leveraging data and artificial technology
improves outcomes for candidates and
hirers. In evolving this capability SEEK
takes an ethical and risk-based approach
with a focus on user trust.
Data and technology, including the use of artificial intelligence,
assist hirers and candidates by improving transparency and
efficiency in the recruitment process. ‘Talent Search’ is an
example, enabling hirers to access and search for SEEK Profiles
and connect with candidates using data from candidate profiles
and search algorithms to identify candidates who may not
otherwise have applied for their role.
Artificial intelligence
SEEK’s platforms connect millions of candidates with job
opportunities. Leveraging the data from these interactions
through innovation and artificial intelligence capability is critical to
enabling SEEK to match candidates quickly with all the relevant
job opportunities.
To ensure they discover the right opportunities, candidates
provide SEEK with information about their experience,
qualifications and preferences, and hirers provide SEEK with
information about their job opportunities and requirements. SEEK
also collects and analyses data about candidates’ and hirers’
interactions with the platform to better understand job seeking
and recruitment preferences. These are used in products and
artificial intelligence algorithms to understand the intent of the
candidate and the hirer and to enable them to connect with all the
relevant job opportunities in less time.
Experience has shown that data and artificial intelligence can
materially reduce cost and effort for candidate and hirers. SEEK
recognises that this brings risks and opportunities. If not carefully
managed, potential exists for artificial intelligence to introduce and
embed discriminatory bias in human behaviour. Conversely using
data and artificial intelligence to augment the human process
of recruitment can reduce bias and create fairer outcomes. Bias
is reduced through the focus on structured requirements and
capabilities, as well as the option to remove potential signals of
human bias in selection decisions from datasets and predictions.
Ensuring responsible and ethical use of artificial intelligence
is critical. SEEK’s approach is based on clear principles and
standards that go beyond legal obligations. The artificial
intelligence ethics principles state that artificial intelligence
services should be beneficial to society, fair in the outcomes they
deliver, transparent and defendable to the public and reliable.
SEEK’s governance approach ensures that all artificial intelligence
services align with the principles before they are deployed to
production. The Ethical Artificial Intelligence Framework and
governance process are externally audited via SEEK’s existing
audit process.
Sustainability Report 48
Smarter Search
Search technology is constantly evolving. As it does,
consumers have higher expectations about the
relevance of search results returned to them.
SEEK’s search engine ‘Smarter Search’ has improved
the relevance of search results to help candidates
find the right opportunities faster. Smarter Search was
launched in early 2019 across SEEK ANZ and was
a major contributor to a 20 per cent increase in job
applications per candidate session. Smarter Search
has been designed as a scalable global platform. Roll
out across SEEK Asia was completed in FY2021.
Future outlook
Expectations for data privacy motivate the business to
further develop and mature controls. Continued focus
on data governance reflects the importance of customer
trust, particularly when using data for commercial
benefit. SEEK’s Ethical Artificial Intelligence Framework
helps to mitigate key artificial intelligence ethics and
bias risks. This is a complex and dynamic space, and
SEEK will continue to refine its approach as consumer
expectations and industry scrutiny increases.
The Smarter Search algorithms learn which jobs
have higher relevance for candidates by applying
artificial intelligence and candidate preference to
improve accuracy and continually learn new patterns
and trends. Search results are personalised to
show the most relevant new ads for the candidate
regardless of when they last searched or when a
specific ad was posted.
Smarter Search also responds to and learns from
the candidate’s interactions to offer personalised
recommendations for job opportunities. Artificial
intelligence enables SEEK to surface the most relevant
roles for a candidate even where titles vary for similar
jobs (such as ‘early childhood’ and ‘kindergarten’
teacher) or where similar titles apply to jobs across
industries (‘project manager’ or ‘architect’ in the
construction and information technology industries).
SEEK’s search engine aims to make all job
opportunities available to a candidate without
exclusion. The job search is smarter because it
delivers the most relevant results first to satisfy the
candidate’s intent.
SEEK Limited Annual Report 2021 Business resilience
49
SEEK’s critical services deliver job advertisements
to millions of people. Customers expect these
services to be reliably available. To meet this
expectation SEEK’s systems, infrastructure and
processes are managed for resilience.
Business resilience is a priority for SEEK. Managing resilience
across systems, infrastructure and processes is a key aspect
of SEEK’s Risk Management Framework.
The SEEK Business Continuity Plan was established in line
with the requirements of ISO 22301. Four broad business
continuity scenarios cover loss of technology, building, staff
and critical third parties and operate in conjunction with SEEK’s
Crisis Management Plan. Critical technologies, business
processes and third-party systems are identified for recovery
in the event of disruption. The disaster recovery program
ensures that systems and data services remain available or are
recoverable in the case of a disaster or systems failure. This is
accomplished through building a robust technical environment,
creating and testing disaster recovery plans and developing
back-up and restoration capabilities which are tested regularly.
As the COVID-19 threat emerged, SEEK enacted its Business
Continuity Plan. From mid-March 2020, business critical
processes and systems were successfully maintained in a fully
remote working environment until a hybrid model of remote
and office-based working was established in early 2021.
The framework for business continuity is overseen by the
Chief Risk Officer and reviewed periodically by the Audit and
Risk Management Committee. Business continuity testing
and audits are conducted to identify areas for improvement.
In FY2021 the Crisis Management Plan was tested through
a cybersecurity crisis exercise affecting SEEK ANZ and
SEEK Asia and involved the Executive Leadership Team. This
simulated scenario informed valuable improvements to the
Crisis Management Plan.
Future outlook
• Strengthening incident and problem management
capacity to improve resiliency and prevent
system failures.
• Formalising employee and external communications
plans in the event of a crisis to ensure continuity.
Sustainability Report 50
Cybersecurity
As the operator of online employment
marketplaces with large scale data
from customers, SEEK significantly
invests in security across people,
processes and technology.
SEEK performs targeted internal and external penetration
testing and simulated hacking, referred to as red teaming
engagements, to build upon defence capabilities. This is
augmented by continuous monitoring of SEEK’s internet
facing systems that scan for configuration weaknesses or
newly discoverable vulnerabilities. SEEK participates in threat
intelligence sharing services with private organisations and
government agencies. The security researcher community is
encouraged to legally attack and report security vulnerabilities
in SEEK’s systems and products through the ongoing public
Bug Bounty program. This allows public researchers to test
applications for security weaknesses and be rewarded based
on the severity of the issues found.
SEEK’s infrastructure operates using cloud services leveraging
Amazon Web Services (AWS) infrastructure and physical data
centres in Australia, the United States and Singapore. These
facilities are physically secure, geographically separated,
Tier III, and ISO 27001 compliant. SEEK’s AWS production
environments leverage a continuous security monitoring and
threat detection capability.
The cybersecurity control environment is a key aspect of
SEEK’s Risk Management Framework. The Board, through the
Audit and Risk Management Committee, is regularly briefed on
the state of cybersecurity controls at SEEK.
seekurity
Management of SEEK’s cybersecurity risks is a major priority
for everyone at SEEK. This is done by staying at the forefront
of emerging cyber threats and understanding everyone’s role in
the safekeeping of customer data, business data and systems.
Cyber safe practices and policies are an important part of
upholding the trust of customers.
SEEK has adopted an approach leveraging multiple frameworks
to address cybersecurity, focused on implementing a layered
defence-in-depth security program across people, process and
technology. This is assessed against ISO27001 standards,
aligned to the National Institute of Standards and Technology
(NIST) Cybersecurity Framework and supported by the SEEK
Information Security Policy.
Cybersecurity is managed by an experienced security team
led by the Chief Information Security Officer. In a competitive
market for cybersecurity skills and talent, SEEK has recruited
and retained high quality cybersecurity talent with membership
and influence in a number of multi-company and industry
security forums. As a technology company, SEEK has an
internal cybersecurity talent pipeline and is able to integrate its
employees as part of defensive cyber control capabilities.
SEEK leverages an external managed security operations
centre to augment internal staff capabilities and provide an
additional layer of defence for 24x7 security alert monitoring
and response. This service includes regular threat hunting
to proactively search for any signs that would require a
further investigation or analysis. During FY2021, SEEK further
enhanced detection and response capabilities and increased
automated responses to security events through security
orchestration and automation.
SEEK’s security program applies a risk-based approach
to tackling current and emerging cybersecurity threats
and vulnerabilities. The Security team regularly assesses
cybersecurity controls based on changes to the threat
landscape by identifying and investigating cybersecurity
themed incidents and breaches affecting other organisations.
SEEK monitors its third-party providers, such as cloud service
providers, for incidents by receiving and responding to alerts.
SEEK Limited Annual Report 2021 51
Continuing the evolution of customer
safeguards, during FY2021 SEEK began
implementing multi-factor authentication
(MFA) for hirer accounts providing an
additional layer of protection during login.
SEEK’s cybersecurity strategy is
enabled by security awareness
initiatives for all employees including:
Hackers Mind: Training to
understand how attackers may
execute a targeted attack
Security On-Boarding: For new
SEEK users
Phishing: Periodic simulated
targeting of SEEK users to build
alertness to real-world attacks
Password Manager: Good
password hygiene at work
and in life using the corporate
password manager
Security Scorecard: SEEK users
receive a monthly personalised
report linked to their cyber
safety performance
Future outlook
SEEK will continue to invest in its cybersecurity
capabilities against the backdrop of acceleration of
cloud services and enablement of business initiatives
such as Marketplace Unification. A strategic focus
is continuing to build on data analytics and machine
learning capabilities to inform the view of emerging
threats and trends.
Sustainability Report Customers interacting with SEEK’s
employment platforms expect their job
searching experience to be efficient,
safe and secure. SEEK’s success relies
on the delivery of meaningful services
and positive interactions for these
customers.
SEEK has systems and processes in place to ensure hirers
and job ads are legal, accurate and legitimate. A dedicated
team screens the SEEK ANZ employment platforms to detect
suspicious job advertisements and hirers, and immediately
removes them. Every job advertisement posted by a first
time hirer is manually reviewed to ensure legitimacy and to
verify that a genuine, paid employment opportunity exists. To
protect and warn candidates, simulated candidate profiles are
used to apply for fraudulent job ads to build understanding of
fraudulent activity.
Information is also provided to candidates on protecting
themselves online from fraudulent job advertisements,
phishing, trojans, scams and spam. Advice on safe job
searching is provided on the home page of the SEEK website
and updated as employment scams and other threats
emerge. SEEK liaises with Scamwatch, part of the Australian
Competition and Consumer Commission, to identify and warn
the public about job and employment scams. Candidates are
encouraged to use SEEK’s free platform Certsy rather than
provide sensitive personal documents with job applications.
52
Customer experience
Candidate security and online fraud
SEEK is committed to ensuring that all job advertisements
on the SEEK employment platforms are for legitimate job
opportunities and to making job searching safe and secure.
A key condition of advertising on SEEK is that the employment
opportunity is in respect of a genuine, paid employment
opportunity that is current at the time of posting.
Employment platforms are subject to potential fraud by
external parties, for example job advertisements that ask
candidates for personal and financial information or recruit for
illegal activities such as money laundering. Malicious cyber
activity targeting individuals and organisations across Australia
and New Zealand increased from early 2020 with COVID-19
themed scams and phishing emails.
Safe job searching in Asia
SEEK operates employment platforms in South East
Asia and Hong Kong under the brands JobsDB and
Jobstreet. These platforms operate in six countries
including the Philippines, Indonesia, Thailand and
Malaysia where there are increased inherent risks
to candidates when job searching. Candidates may
encounter fraudulent job ads, expectations to pay
for jobs and deceptive recruitment including the risk
of modern slavery.
SEEK strives to ensure that its employment
platforms do not enable or facilitate unfair or
unethical hiring practices or modern slavery of any
kind. A strategy was initiated during FY2021 to build
candidate trust at scale, with a particular focus on
South East Asia. Continued investment in candidate
safety will ensure that SEEK’s global employment
platforms are recognised as the most trusted and
legitimate. SEEK will continue to leverage technology
and improve its systems to drive safe and fair
employment outcomes for candidates interacting
with the platforms. SEEK has a long-term vision for
an end to unethical hiring practices and modern
slavery in the regions in which it operates.
SEEK Limited Annual Report 2021 53
Certsy
Hirers usually verify work credentials as a pre-hiring background
check, but find it useful to have verified information earlier in the
hiring process. Candidates want to stand out when applying for
jobs, but they worry about the online security and privacy risks
of sharing sensitive documents with each job application.
Certsy was created by SEEK as a secure and free way for
candidates to demonstrate they hold the credentials to meet
a job’s requirements. As a ‘career passport’, Certsy enables
candidates to securely upload evidence for verification
and then share only the verified result – not their sensitive
documents – with hirers on SEEK’s Australian employment
platforms. Verified results are visible to hirers through the
candidate’s SEEK Profile and can be easily re-used by the
candidate in multiple applications.
In FY2021, Certsy increased its range of verified credentials
to five and launched three online assessments for common
software and business skills including Excel Basics. Certsy
also further improved its user experience, data security and
privacy. Over one million candidates have now used Certsy to
add verified credentials to their SEEK Profile.
Certsy can verify candidates’:
Right to Work in Australia
Australian Driver’s Licence
Working with Children Check
Recent Police Check
AHPRA (Australian Health Practitioner
Regulation Agency) Registration
Certsy is also an accredited provider of Australian nationally
coordinated criminal history checks, also known as national
police checks.
Customer centred product development
Customers are at the core of SEEK’s product strategy. To
improve the customer experience, SEEK identifies the most
important needs of customers and any underserviced needs.
SEEK has identified that the most important needs of
candidates are to know that a job is genuine and still
available and to hear back about their application. To meet
these expectations, SEEK has a strong focus on candidate
security and online fraud. To help candidates understand
more about the progress of their application, SEEK has
introduced ‘candidate notifications’. When a hirer is managing
applications within the SEEK platform, this signals to the
candidate that the hirer has opened an application or deemed
the candidate not suitable.
Hirers need to quickly identify the best candidate for the role,
easily review candidate information and ensure the job ad
is seen by a large number of potential candidates. To meet
these customer needs, SEEK has developed products such as
SEEK Profile and Talent Search and uses artificial intelligence
techniques to surface suitable candidates.
SEEK sources feedback, insights and data from customers to
tailor improvements to services. In FY2021, SEEK invested in
an external “voice of the customer” platform to centralise and
improve the collection and analysis of data. With these deeper
insights SEEK is able to improve the customer experience.
As a result of the continued evolution of customer-centered
services, SEEK ANZ continues to be a market leader. SEEK
will be first choice for nearly half of the Australian workforce
intending to look for a new job in the next 12 months and
SEEK is the number one place to go for future jobseekers in
New Zealand.
Inclusive Design Principles
SEEK strives to make online job searching accessible
and welcoming for candidates, regardless of ability
and background.
• Accessibility for visually impaired customers is
front of mind when designing SEEK websites,
applications and products
• Diversity is represented and celebrated in
illustrations, photos and language
• SEEK websites, applications and products are
designed for varying levels of online experience to
support less tech savvy people
Sustainability Report 54
Customer satisfaction
SEEK uses the Net Promoter Score (NPS) and a range of
other metrics to understand customer satisfaction. NPS is
a common loyalty metric that measures the propensity to
recommend an organisation or brand to others.
SEEK undertakes research amongst Australians that have
changed or started a new job in the previous 12 months, or
who intend to change jobs in the next 12 months. The NPS for
candidates is 15 points higher than SEEK’s nearest competitor
and nearly 7 out of 10 candidates who found their job on SEEK
would go to SEEK first to find their next job.
To understand hirer satisfaction, SEEK asks employers to
reflect on their last two hiring occasions. SEEK experienced
record job advertisements in March and April 2021 followed
by continued high levels of advertisements for the remainder
of FY2021. Hirer satisfaction was impacted by low numbers of
applications per advertisement caused by the reduced labour
supply and cautious candidate sentiment following
a turbulent year.
Customer support
SEEK offers multiple channels for customer support and
concerns. Customer service teams are located locally in
Australia and New Zealand. To ensure that candidates’ and
hirers’ enquiries are fully addressed, customer service teams
take a customer-first approach and targets are focused on
first time resolution for queries via phone, email or live chat.
This year customers relied on support from SEEK to help
them navigate the volatility of employment markets caused
by the unique impacts of COVID-19. Time spent with
candidates on calls increased significantly as they sought
advice and guidance. Customer service teams were upskilled
to provide well-being support during interactions with
vulnerable candidates. SEEK developed a referral relationship
with Beyond Blue to help those in need of additional support.
Hirers, many with reduced internal recruitment capacity,
turned to SEEK for technical help such as writing job ads and
sourcing talent. To further support hirers, SEEK dedicates
a support team to help optimise their investment in SEEK
products. This team worked with over 2,000 businesses
in a variety of ways including group seminars, customised
business workshops and 1:1 sessions. A video content hub
was created providing hirers with easy and any time access
to information.
SEEK extended its support of ANZ hirers impacted by
COVID-19 into FY2021. Businesses and recruitment agencies
experienced variable hiring activity as states and territories
recovered at different rates from the low point in April
2020. Support shifted from extending pre-paid products
to crediting job advertisements no longer required due to
snap lockdowns. Financial relief to hirers in ANZ was worth
approximately $2 million in addition to relief provided in late
FY2020 of approximately $12 million.
Helping hirers affected by extreme climate events
Increasing shocks caused by extreme climate and natural
events have affected labour markets across Australia
and New Zealand. Building on the experience of helping
hirers through the Australian bushfires in summer 2019-
2020, SEEK has established principles about the impact
of such events on the community and businesses.
These principles predict the support hirers may require
in future events enabling responsive decision making.
The introduction of variable pricing and flexible customer
contracts provide SEEK with mechanisms to respond to
hirer’s needs quickly in difficult times.
SEEK Limited Annual Report 2021 Social impact
55
Employment markets have been variable
and volatile. SEEK has helped people and
organisations to navigate changes to
working lives.
Hiring advice and market insights
This year organisations were faced with unique and difficult
employment decisions. Many hiring teams were working on
smaller budgets and the speed of hiring was impacted by the
unpredictable external environment. SEEK’s Hiring Advice and
Market Insights portals provided hirers with reliable information
to help them adapt recruitment strategies and make the hiring
process more efficient. Content provided tips on how recruiters
could equip themselves for change, how to onboard new
employees remotely and how to make team members feel
valued and included when workforces are remote and dispersed.
The Hiring Advice and Market Insights portal attracted 700,000
visits in FY2021, of which 54% were first time visits.
Employment insights and career advice
The events of the past year led many people to reassess their
career and working life. Whether looking for a career change or
focusing on job security, SEEK’s rich data and insights helped
candidates make important career and employment decisions.
SEEK’s Career Advice portal supports candidates through the
career journey by providing tailored advice and career options.
Content is curated to help the candidate achieve their goal
including practical tips or resume writing, interviewing, remote
working, in demand jobs, and workplace wellbeing. Career Advice
attracted over 18 million visits in FY2021, of which 51% were first
time visits.
Engaging with Indigenous communities
During FY2021, SEEK established cross-business working
groups with mandates to engage broadly with external
Aboriginal and Torres Strait Islander stakeholders in
three areas:
•
•
•
tailoring SEEK’s products and services to better meet the
needs of Indigenous customers, especially job-seekers
finding opportunities for Indigenous owned and
managed businesses in SEEK’s supply chain
appropriately acknowledging and respecting the
custodianship of the traditional owners of each SEEK
location, in particular the new headquarters in Cremorne
Each of these working groups reports directly to the Chief
Executive. These working groups will deliver tangible
outcomes during FY2022, which will be included in the next
Sustainability Report.
Education improving employability
Education helps people live more fulfilling and productive
working lives. Through technology and innovation, accessibility
to quality education at scale continues to improve. With
face-to-face training and education impacted by COVID-19,
people turned to online platforms to up-skill and re-skill to meet
changes in labour markets.
SEEK Learning, on the SEEK employment platform in
Australia, is freely available to help individuals find the right
course to progress their career. SEEK Learning surfaces the
career outcomes for each course, such as potential roles, job
satisfaction levels, most common salary and how many jobs
are available on the SEEK employment platform. In FY2021
SEEK Learning worked with providers to meet the increased
demand for short courses and connected 280,000 individuals
with education providers.
Understanding transferrable skills
Understanding transferrable skills is a key factor in helping
candidates make effective career decisions. SEEK uses data
driven insights to provide information on in-demand industries
and roles, necessary skills for those roles and the salaries
on offer. Recognising that the most basic skills can lead to a
new and exciting opportunity, SEEK introduced a new skills
explorer feature. In FY2021 the skills explorer helped over
337,000 unique candidates understand their skills, evaluate
opportunities to further develop their skills and to uncover new
career and job opportunities.
Careers through business ownership
For many, a fulfilling and productive working life means buying
or selling a business. SEEK Business helps people pursue
careers in business ownership by matching them with relevant
businesses for sale. In FY2021, SEEK Business generated
177,000 connections to sellers, a 33% increase from the
previous year. This signals a continuing increase in demand
for career pathways in business ownership.
Sustainability Report 56
Social contribution
Drawing on the experience of the successful SEEK
employment platform, SEEK Volunteer is a free online
volunteer platform connecting people to volunteer
opportunities that enrich their communities, lives and
careers. SEEK also supports its charity partners and
employee volunteering.
SEEK Volunteer
For 21 years, SEEK has invested in SEEK Volunteer leveraging
its expertise and technology platforms to connect people with
volunteer opportunities in Australia and New Zealand. SEEK
Volunteer replicates SEEK’s approach to online privacy and
continual efforts to make searching for a volunteer opportunity
safe and secure.
The impacts of COVID-19 on volunteering were widespread,
affecting the operations of three quarters of volunteer
programs in Australia during FY2021. The number of volunteer
opportunities available on SEEK Volunteer was 50% less than
previous years for the majority of FY2021 due to the lengthy
COVID-19 lockdowns, particularly in Melbourne.
As a result, there was a 15% decline in the number of people who
applied for a volunteer opportunity through SEEK Volunteer. This
was despite an increase in remote and online volunteering, with
10% of total volunteer opportunities in Australia and 4% in New
Zealand available remotely during FY2021.
In 2017, SEEK Volunteer developed a volunteer recruitment
portal for the NSW Government. Leveraging SEEK Volunteer’s
technology, experience and existing relationships with
community organisations, the portal launched with over 2,000
opportunities. Since launching, 34,000 individuals have applied
for a volunteer opportunity.
Individuals who applied for a
volunteer opportunity
Registered not-for-profit
organisations offering volunteering
Volunteer opportunities listed
as at 30 June
2021
2020
2019
143,383
169,178
130,256
Combined Australia and New Zealand numbers, excluding NSW Government portal numbers
12,258
11,410
10,127
9,392
6,497
12,910
Employee volunteering
SEEK encourages individual employees and teams to volunteer
by providing employees with an annual day of volunteer leave.
An additional five days of personal flexi-leave available annually
to employees may also be used for volunteering. In FY2021,
SEEK employees recorded 133 hours of volunteering in the
community, significantly less than in prior years. This was
the result of the extended COVID-19 lockdowns in Melbourne
which limited access to volunteering opportunities.
A group of SEEK employees volunteered their strategy and
finance skills to help Courage to Care. Delivering “active
bystander” training in schools, Courage to Care, through its
Upstander Program, encourages children to take positive
action to combat discrimination. The volunteers assessed
potential new markets and presented a business case.
SEEK employee volunteers contributed significant value to
Courage to Care’s future business.
SEEK Limited Annual Report 2021 57
Small Change workplace giving
With some charities experiencing an unprecedented
demand for their services, yet unable to implement
traditional fundraising campaigns due to COVID-19
restrictions, workplace giving is more important than
ever. ‘Small Change’ is SEEK’s workplace giving program
which delivers funding to ten charity partners. Employees
participate through pre-tax donations deducted directly
from their pay which SEEK matches dollar for dollar
uncapped. Small Change operates on an ‘opt-in’ basis for
all employees, with over half of SEEK’s full and part time
workforce participating in the program.
Given the unprecedented fundraising challenges of FY2021,
SEEK provided $30,000 in additional direct financial support
shared equally between its ten charity partners.
STREAT
STREAT is a social enterprise that provides disadvantaged
young people with the life skills, work experience and
training to start a career in the hospitality or horticulture
industries. As one of SEEK’s Small Change charity
partners, SEEK works with STREAT to create value beyond
matched workplace giving donations.
In FY2021, SEEK held a virtual ‘Cooking Show’ to connect
employees who were working from home due to COVID-19
restrictions. As part of this event, SEEK made a short film
to showcase STREAT. SEEK also promoted to employees
a virtual workshop “Building a workforce of Allies –
Gender and Sexual Diversity in the workplace” run by
STREAT’s co-founder to help employees gain the skills and
confidence to become an ally for LBGTQIA+ peers, friends
and family members.
SEEK’s Small Change charity partners
• Alannah and Madelaine Foundation
• Australian Wildlife Conservancy
• CanTeen
• Cathy Freeman Foundation
• Lifeline
• Lort Smith Animal Hospital
• Starlight Children’s Foundation
• STREAT
• The Big Issue
• The Smith Family
Sustainability Report 58
Our People
SEEK’s purpose driven and
value-based culture
This is SEEK is the codification of SEEK’s culture. It comprises
SEEK’s purpose and vision, as well as identifying beliefs and
attributes that define the traits that SEEK looks for in its best
people. This is SEEK is constantly referred to in day-to-day
activities, and guides behaviours, decisions and actions.
It is also an important point of reference for recruitment,
development, performance management and reward.
Recently announced corporate structure changes of SEEK
create an opportunity to review and update This is SEEK,
which will be done during FY2022. SEEK expects the essence
to remain the same.
SEEK Purpose
We help people live more fulfilling and productive working
lives and help organisations succeed.
SEEK Vision
Being the best in the world in online employment by:
• Matching more people with job opportunities than any other
organisation in each market in which we operate;
• Being the most trusted partner for advice on, and access to,
relevant career related education.
SEEK Beliefs I At SEEK we believe in...
• Having a positive impact on society
• Focusing on business fundamentals and customer
outcomes rather than short-term financials
• Always striving, challenging and remaining
productively paranoid
SEEK’s culture is on based on trust,
accountability and passion to achieve
the company purpose which is critical
to SEEK’s long term success.
Inherent in This is SEEK is a culture of trust, innovation,
empowerment and collaboration, which manifests in
various ways. This can be seen in everyday examples such
as the use of the OKR framework, while innovation and
collaboration are encouraged in bi-annual Hackathons.
OKR framework
SEEK has continued to embed the Objectives and Key Results
“OKR” framework through FY2021, using it to define and
measure the critical priorities for the business. The objectives
capture inspirational business goals, while key results
define measurable and quantifiable outcomes to deliver on
the objectives.
The OKR framework provides clarity and alignment for teams
at the organisational level, to ensure everyone understands
the collective company goals and can work towards their
achievement together.
• Doing the right thing for SEEK, not what is popular or easy
Hackathons
• Doing the right amount of thinking upfront
• Persevering through obstacles to get it done
• Creating a community where individuals are valued
SEEK Attributes I Our best people…
• Are passionate about SEEK and our customers
• Show great judgement and decision making ability
• Know their stuff – professional skills (for everyone) and
leadership skills (for leaders)
• Deliver outcomes for SEEK
SEEK’s bi-annual three-day Hackathons provide employees
with opportunities to collaborate cross-functionally, through
developing and testing ideas for products, customer
solutions or internal innovations. Products developed
during Hackathons are often immediately deployed on the
platforms, and in other cases developed subsequently into
major product releases.
The December 2020 Hackathon was run jointly across ANZ
and SEEK Asia and, due to COVID-19, was adapted to be
completely virtual.
SEEK Limited Annual Report 2021
59
Attraction and retention
This is SEEK continues to play a central role in building a
high-performance culture and attracting and retaining
talent within the highly competitive technology industry.
The company has a robust recruitment process and the This
is SEEK framework forms a core part of how potential new
employees are evaluated.
In the second half of FY2021, SEEK was faced with a
candidate-short market. Job ads on SEEK’s Australian and
New Zealand employment platforms were at historically
high levels and candidate applications per role were lower
compared to the same period prior to the pandemic.
This dynamic, coupled with the inability to source talent
internationally due to immigration constraints, created
a highly competitive market for technology talent. SEEK
responded by compressing hiring processes and fast-tracking
high calibre talent, where possible. SEEK will continue to
identify opportunities in response to market challenges to
ensure SEEK hires the best candidates.
SEEK retained over 90% of ANZ based permanent employees
in FY2021. This is well above industry norms and reflects
SEEK’s continued dedication to a people-first culture and an
inclusive work environment.
During FY2021, providing certainty for people at SEEK during a
period of significant ambiguity was a high priority. Consistent
with SEEK’s commitment to long-term business goals, there
were no redundancy programs and no reductions were made
to salaries or working hours for permanent staff. Employee
feedback indicated that the reassurance about job security
provided by management was viewed as highly valuable.
In April 2021, SEEK received the highest
award in the Australia Financial Review
BOSS Magazine’s Best Places to Work
program, along with the best employer
award within the industry.
SEEK was named overall winner for Best Place to Work
in Australasia and also Best Place to Work within the
technology industry.
These awards recognised SEEK for the outstanding
culture, work practices and environment which have
been built over many years and which enable people
to do their best work. This recognition was positive for
SEEK’s recruitment brand and was also appreciated
internally. SEEK continues to work to sustain and
improve its culture.
Workforce profile
SEEK’s ANZ workforce grew 11% during FY2021. The
majority of employees were employed permanently, with
9% employed on either a fixed- term or casual basis.
Across the employee population, 11% of employees had
a part time working arrangement.
SEEK ANZ workforce*
30 June 2021
30 June 2020
Permanent employees
1,030
Fixed term
Casual
Total
941
74
5
96
2
1,128
1,020
* Excludes subsidiaries which are operated as independent businesses
To enable SEEK to scale for growth, a contingent workforce
was maintained to provide flexibility to meet business
requirements. This contingent workforce provided skills
and capability in areas which were critical for specific
projects or for peak periods in operating the business.
In addition to the ANZ business, SEEK operates
employment platforms in South East Asia, Hong Kong,
Brazil and Mexico; which exist under different brands
within these markets.
SEEK’s global workforce
30 June 2021
30 June 2020
Asia (JobsDB & JobStreet)
1,103
1,084
Brazil (Catho)
Mexico (OCC)
724
307
783
283
Total
2,134
2,150
Sustainability Report 60
Career and talent development
Regular This Is SEEK performance conversations ensure every
employee knows how they are performing. Performance is
measured against agreed outcomes specific to an individual’s
role and the SEEK Attributes, which outline performance
expectations from a behavioural perspective.
In FY2021 there was continued focus on career development
at SEEK. Building on the work previously done with employees,
SEEK continued to focus on strengthening leader capability,
ensuring they have the tools, resources and skills to support
their team members to navigate their careers. There also
continues to be bespoke learning and development initiatives,
covering topics such as Gallup strengths, coaching and leading
through change.
For the top 80 leaders across SEEK, the bi-annual talent and
succession management cycle for executive and senior leaders
continued in FY2021. This provided a strong understanding of
SEEK’s leadership profile, and enabled proactive management of
the highest potential employees and associated key person risk.
Employee satisfaction and engagement
SEEK maintains its focus on strong employee engagement.
Measurement continues to include one full engagement survey
and one check-in survey during the year. This enables a six-
monthly sense check of engagement and progress for identified
focus areas, whilst allowing a year between full surveys to
action and assess more meaningful changes.
The full year survey was conducted in October 2020 and the
overall engagement score remained strong, consistent with
previous years. Whilst there were many changes in FY2021
due to COVID-19, the engagement survey indicated that people
believed that SEEK prioritised their safety and demonstrated
genuine care for their wellbeing.
A check-in survey was conducted in April 2021 which also
measured employee engagement, with a slightly lower result
than October. This was indicative of the amount of activity and
change as SEEK embarks on the Market Unification project and
a range of other corporate activity, as well as the way people
were feeling after the challenges of the past year.
Employee benefits
Employees are engaged on independent contracts for
predominately professional roles. Remuneration is competitive
to attract and retain high performing talent, and in most cases
is above external market medians. When deciding on salary,
there are several factors that SEEK considers, including external
market rates, internal relativity, minimum requirements and
hours worked. An internal review was conducted in FY2021
to ensure payroll compliance requirements for award-covered
employees in ANZ.
A range of benefits is provided to employees, based on what
they value most. Financial benefits for permanent employees
comprise an annual profit share opportunity, an employee
share purchase plan, salary continuance insurance and travel
insurance for both personal and business travel. Employees
are also paid statutory superannuation to the superannuation
or pension fund of their choice, with discounted premiums
available for life and disability insurance via the default
superannuation fund.
Alongside this, the work environment at SEEK continues to
be flexible and people are encouraged to come forward and
discuss their personal needs to achieve the best balance for
their own personal life and work commitments. A range of
generous leave provisions is available, as well as programs and
initiatives to support physical and mental wellbeing. Employees
and their families also have access to various offers related to
health insurance, fitness and food, travel and accommodation.
SEEK Limited Annual Report 2021 61
Workplace and flexibility
SEEK is committed to creating a flexible work environment
that considers the needs of the individual, the leader, the
team and the organisation. Flexibility is important in helping
employees balance work with caring responsibilities,
community involvement and personal development, and
allows individuals to meet their personal lifestyle needs. With
the significant challenges created by the pandemic, this was
especially important for people during FY2021.
Flexibility options include ad hoc flexibility, allowing
employees to vary their work schedule from time to time
through informal arrangements, and formal flexibility
arrangements between an employee and their leader. Part-
time work arrangements are accommodated where this
aligns to an individual’s request and the requirements of the
business. A range of virtual collaboration tools is available to
facilitate remote working and to support team harmony and
cohesion. In response to the pandemic, SEEK also updated
workplace flexibility guidelines to extend the definition of
carer’s leave, providing coverage for employees to provide
remote education and home childcare.
As SEEK ANZ offices re-opened after COVID-19 lockdowns
in accordance with government guidelines, employees
were encouraged to work and collaborate at SEEK offices,
in accordance with individual team arrangements. A hybrid
working model has been adopted, with employees combining
office-based work and working from home. To support
employees working from home, SEEK provided a one-off
reimbursement allowance to employees to provide for home
office equipment which has now become a permanent
offering for all new joiners.
SEEK provides ‘Personal Flexi-Leave’ of five days paid leave
per year in addition to other leave entitlements, to attend to
any personal matters during the working week. Employees
are also provided with up to six weeks paid carer’s leave, in
addition to the statutory entitlement.
SEEK offers 14 weeks paid parental leave for the primary
carer and two weeks paid partner leave. Employees can
take parental leave up to 18 months after their child is born,
encouraging each parent to be with the child as primary
carer. Enabling parents with the option to alternate the role
of primary carer after 12 months has been beneficial in
supporting the parent who was initially the nominated primary
carer to transition back to work. Specialist coaching services
are provided by SEEK to support the employee and manager
with the transition prior to leave, during leave and when
returning to the workplace.
SEEK’s approach has driven greater gender balance in the
taking of paid parental leave. During FY2021, 87 employees
were on parental leave as the primary carer, comprising 68%
females and 32% males. This is a 5% increase on the number
of male employees who took parental leave as the primary
carer during the previous financial year. In addition,
31 employees took paid partner leave during FY2021.
Workplace behaviours
Workplace Behaviour Guidelines sit alongside SEEK’s Code of
Conduct for employees and, together with This is SEEK, clearly
outline the behavioural expectations for employees. Ensuring the
standards of behaviour are well articulated and well understood
upholds and strengthens SEEK’s workplace culture and supports
the ongoing success of the business.
Expected workplace behaviours are included as part of induction
for new employees, during which they learn about This is SEEK
and the business and meet senior leaders. To further build
understanding, employees are required to complete mandatory
online training modules on commencement at SEEK, and then
every two years. The modules comprise Anti-Bribery and Anti-
Corruption, Data Sharing, Equal Employment Opportunity and
Workplace Health and Safety with completion rates monitored.
Senior leaders at SEEK are expected to be role models and
to take appropriate action when the expected standards of
behaviour are not upheld. People are encouraged to provide
direct and open feedback in the moment, whilst formal grievance
channels also exist within SEEK to ensure confidentiality and
sensitivity when required.
Collective agreements and freedom
of association
Collective agreements are not customary in the industry in which
SEEK operates, as employees are engaged under individual
contracts in predominantly professional roles. SEEK employees
are not restricted in their entitlement to freedom of association.
Of the 87 employees on
parental leave and due to
return to work in FY2021,
only three resigned, which
was a return rate of 96%
Sustainability Report 62
Workplace health and safety
SEEK continues to maintain a strong
focus on health and safety initiatives.
Safety performance
SEEK continued its commitment to ensuring the health and
safety of its employees, contractors and external visitors and
conducted business in accordance with all workplace health
and safety laws, standards and codes of practice. When
compared to FY2020, whilst the annual number of incidents
was similar in FY2021, the nature of the incidents that
occurred required significantly more time away from work,
resulting in an increase in total lost time injuries. There was
also an increase in Workcover claims year to year, however
a total of four claims recorded in FY2021 was not significant
in proportion to SEEK’s overall ANZ workforce. Throughout
the year, SEEK continued to focus on a wide range of health
and safety initiatives to provide a safe and productive
work environment.
Lost time injury frequency rate*
(per million hours worked)
Lost time injury incident rate
(per 100 employees)
Number of Workcover claims
*Where the following day could not be worked due to injury
FY2021
FY2020
1.8
0.35
4
0.5
0.1
1
The Wellbeing at SEEK program supports employees to
actively foster their health and wellbeing through a range of
initiatives including:
• SEEKer Support program, which enables employees to
access professional counselling services via an employee
assistance program provider or a counsellor of their choice.
• Annual Wellbeing Week, involving speakers, webinars,
curated resources, online learning and special offers is
focused on building everyday habits to positively influence
wellbeing.
• Leader resources and workshops, including a guide for
leaders on support for mental health and wellbeing in
teams.
• Virtual presentations by an external psychologist to support
emotional and mental health through COVID-19.
• Ongoing wellbeing webinars for all employees covering
mental wellbeing topics and an updated content portal with
wellbeing and mental health resources.
Managing the impact of COVID-19
As the pandemic evolves, the health and wellbeing of employees
remains a high priority and at the forefront of decision making.
In FY2021, the business sought professional advice of relevant
health authorities and observed high standards of care for
employees. SEEK closed offices and mandated working from
home in response to government restrictions and communicated
extensively with employees across multiple channels as restrictions
on offices were updated. When it was possible for the offices
to remain open, social distancing measures were implemented,
employee attendance was monitored and the workplace was
cleaned and sanitised regularly. Employees have engaged in minimal
business travel since the beginning of the pandemic, which has only
occurred where necessary for business operations and in adherence
with government restrictions.
Support initiatives are available as employees navigate hybrid
working and repeated office closures. SEEK’s focus has been to
provide support and reassurance for people, treat people with
respect and communicate management decisions that impacted
people early and with clarity. Support continues as employees adapt
to SEEK’s hybrid working model.
As employees grappled with high levels of work activity and the
personal challenges due to the pandemic, SEEK announced the
SEEK Switch Off Day for 2 July 2021. The purpose of this was to
provide a day of paid leave for employees across the company to
simultaneously disconnect from work to focus on rest and recovery.
SEEK Limited Annual Report 2021 Diversity and inclusion
63
SEEK is committed to providing equal
opportunities to employees and
maintaining an inclusive culture, which
values diversity of thought, opinion and
background.
SEEK strives to foster an environment that recognises and
respects the qualities that are unique to individuals such as
gender, language, ethnicity, age, religion, disability and sexual
orientation. Having a diverse workforce of people leads to
greater diversity of thought, a better workplace and better
business outcomes for SEEK’s customers.
SEEK has an overarching focus on fostering an inclusive
workforce and aims to create a culture where everyone feels
they can belong. Initiatives under the banner of workplace
inclusion include:
• SEEK’s sponsorship of Midsumma, Melbourne’s
premier LGBTIQA+ community event, for the seventh
consecutive year.
• delivery of cultural awareness sessions to support the
unification of APAC teams.
•
research into the concept of belonging, providing insight
into employees’ experience of belonging and inclusion in
the workplace.
SEEK’s Wellbeing, Diversity and Inclusion Strategy outlines
the objectives and priority areas of focus, which include
gender diversity, workplace inclusion and employee
wellbeing. SEEK’s Diversity and Inclusion Policy is available
on the Corporate Governance page in the Investors section
of the Company’s website.
Female representation at SEEK
There has been a positive shift in female representation for
executives and the total workforce since FY2020. The increase
in female representation on the Executive Leadership Team
reflects one additional male executive and one additional
female executive hired in FY2021. Following corporate structure
changes which came into effect on 1 July 2021, the female direct
reports to the CEO now represent 57%. The slight changes at the
Senior Manager level and the workforce metrics more broadly
were partly reflective of a lower female voluntary attrition rate.
Female Representation %
30 June 2021
30 June 2020
Group Executives of SEEK Limited -
direct reports to the CEO
Senior managers*
Workforce - all employees
25%
22%
47%
17%
23%
45%
* This is defined based on job title, level and seniority attributed to role, as per information captured in
SEEK’s HR Information System.
International Women’s Day
SEEK celebrated International Women’s
Day with a keynote speaker sharing her
experiences as a migrant from a culturally
diverse background. Her professional insights
and expertise in inclusive workplace practices
resonated strongly with the virtual audience.
Sustainability Report 64
Gender diversity — working towards a
balanced workforce
SEEK recognises that achieving diversity, in all its forms, is
important for an innovative and high performing business.
SEEK has a particular focus on the attraction, development
and retention of women within the organisation, due to the
significant under representation of female talent in professional
roles in the technology industry.
Engaging women in technology
The Women in Technology Steering Committee seeks
to attract female talent to SEEK, grow their careers and
support more women to have careers in the technology
industry. The Steering Committee is comprised of senior
technology leaders and representatives from SEEK’s
Women in Technology community.
Achieving gender balance in hiring
The focus in FY2021 was on the following key initiatives:
Hiring decisions take into consideration suitability for the role
and gender representation within teams.
SEEK places great importance on gender representation
throughout the recruitment process. In FY2021, continued
focus on gender diversity in hiring practices resulted in a 5%
increase in overall female new hires into the organisation.
Achieving gender balance in hiring outcomes is particularly
challenging for technology roles, due to under representation
of female candidates in the market. A proactive focus to attract
and foster a compelling work environment for women resulted
in a 3% increase since FY2020 in the number of female hires in
technology roles, including the leader of the technology function,
SEEK’s most senior technology executive.
Female new hires, as a %
of total new hires
Gender pay equity
FY2021
FY2020
49%
44%
Principles of gender pay equity are proactively upheld.
SEEK is committed to ensuring gender pay equity across all
levels for comparable roles. In Australia and New Zealand, there
are robust processes to ensure equitable pay outcomes are
achieved for similar roles, irrespective of gender. These include:
• Transparency of remuneration policies and practices
• Education workshops for leaders about the potential for
gender bias in recruitment
• Utilising both internal and external remuneration data when
hiring external talent
Each year SEEK undertakes detailed analysis of individual
pay outcomes and identifies any potential gender pay gaps
across the ANZ business during the salary review period.
Although no salary review was completed for FY2021 due to
the impact of COVID-19 on SEEK’s business, SEEK undertook
pay parity analysis to identify any gender pay gaps. While some
differences were identified based on role type and level within
the organisation, there was no indication of systemic issues
in relation to gender. Where some differences were identified
between the average salary of males and females, this gap was
largely attributable to higher representation of male employees
in higher paying technical or senior roles, rather than inequities in
pay on a like-for-like basis.
SEEK remains committed to increasing the representation of
women in technology roles and increasing female participation
in senior roles, as outlined in the sections above. Overall, SEEK is
confident that through education of leaders and by monitoring
pay decisions during the critical points in the lifecycle of an
employee, any risk of gender pay inequity in decision making
remains low.
• A pilot on inclusive ways of working involving the
Neuro Leadership Institute and SEEK’s Artificial
Intelligence and Platform Services team; and
• An employee-led project focused on career
progression and increasing representation of
women in leadership roles. The discovery phase
was completed and solutions are being designed for
piloting in FY2022.
Increasing female participation in senior roles
The third Females at SEEK Thrive (FAST) program,
which commenced in FY2020, was completed in
FY2021 with a cohort of 26 women employees. The
FAST program continues to be an important step to
increasing female participation within senior roles by
investing in high performing women employees and
fostering their individual career progression. SEEK is
currently preparing for the next FAST intake in FY2022.
Improving the talent pipeline through long-term
investment in female talent
SEEK’s Graduate Program was expanded in FY2021
from technology positions to also include opportunities
in strategy and operations. SEEK launched a scholarship
for Women in Strategy aimed at promoting equal
opportunities by providing successful applicants with
exposure to career opportunities and support with
their further studies. Five females and four males were
extended offers across the graduate program streams.
The high proportion of female offers reflects SEEK’s
campaign strategy of strong female representation
within the candidate pool and an equitable gender split
at assessment days.
CAMP SEEK
Camp SEEK is an initiative to address the shortage of
female talent within the technology industry, by sparking
the interest of young women to choose a future career in
technology. The aim of Camp SEEK is to introduce year
9 and 10 girls and non-binary young people to the varied
careers within the technology industry and inspire them
to take up future study and career choices in STEM.
In September 2020, SEEK held its sixth consecutive
Camp SEEK. Due to COVID-19 restrictions, this was
hosted virtually for the first time. SEEK partnered
with The Smith Family to engage with students from
underprivileged backgrounds and encourage them to
participate in Camp SEEK.
SEEK Limited Annual Report 2021 ENVIRONMENT
Through measuring and striving to minimise
energy use and emissions, SEEK aims to
reduce its impact on climate change.
65
Responding to climate change
SEEK’s carbon commitments
Bushfires, floods and other extreme weather events
are physical reminders of the effects of climate change.
Beyond these immediate impacts, climate change
is increasingly impacting the economy by shaping
investment flows, policy, and employee and consumer
behaviour.
SEEK supports the objective of the Paris Agreement to
transition to a net zero emissions economy, keeping global
warming below pre-industrial levels. As an online business,
SEEK is an energy taker with a relatively low emissions
profile compared with most ASX listed companies.
Regardless, as a responsive and responsible business,
SEEK takes accountability for its impact on climate change
and its role in the transition to the low carbon economy.
SEEK supports the Recommendations of the Task Force
on Climate-related Financial Disclosures (TCFD) and
is committed to enhancing its disclosures in line with
the TCFD recommendations. This report details SEEK’s
approach to identifying and managing its climate-related
risks and opportunities, including a TCFD implementation
roadmap on page 68.
Minimising environmental impact
SEEK’s offices are managed with a commitment to
minimising waste and energy use. The new headquarters
in Melbourne is located close to major public transport
hubs, while ‘end of trip’ facilities encourage and facilitate
bike commuting. SEEK continues to widely implement
technologies to connect SEEK offices, partners and service
providers which assists with reducing business travel.
With the aim of minimising waste, SEEK has a program
for the disposal of electronic hardware that can no longer
be deployed within the business. Once cleansed of data,
hardware is either offered to employees at market value
or provided to a charity for use within their organisation.
Hardware which is not in a useable condition is securely
disposed through certified e-waste providers.
SEEK’s carbon offset program
SEEK has pre-purchased carbon offsets that will be
retired to achieve SEEK’s carbon neutral commitments.
The blend of carbon offsets predominantly comprises
high-impact land based projects, including biodiversity
conservation in Australia and forestry habitat protection
in Indonesia.
1. Achieve carbon neutrality for SEEK ANZ for FY2021
under Climate Active in FY2022. This will include
offsetting the scope 3 emissions related to the fit-out
of the new Melbourne headquarters.
2. Formalise an emissions reduction strategy for SEEK
in FY2022.
3. Achieve carbon neutrality for SEEK’s global footprint
for FY2022 under Climate Active in FY2023. This
reflects SEEK’s commitment to measuring its global
emissions in order to comprehensively address
emissions reduction.
SEEK’s carbon targets
SEEK has the following targets, which it will further refine in
FY2022 as it formalises its emissions reduction strategy:
• Pathway to achieve net zero across all scope emissions
by 2030
• Develop a science-aligned target by 2025
Data centres
SEEK predominantly stores its data in cloud-based platforms
and also at dedicated external data centres in Australia, the
United States and Singapore. Cloud-based data storage
uses fewer servers and less power resulting in lower carbon
emissions compared with data centres. During FY2021 SEEK
further increased the proportion of cloud-based data storage
to approximately 90%.
Cloud and external data centres help mitigate SEEK’s
business continuity risks by providing the excess capacity
necessary to ensure agreed power, temperature and
humidity levels are met, even during an energy outage or
heatwave. Atmospheric controlling and powering at these
data centres is a significant use of energy attributed to SEEK.
Where possible, SEEK selects data centres that are pro-
active in reducing energy consumption and dependence on
non- renewable energy sources. SEEK utilises NEXTDC’s
M1 data centre in Melbourne, which has a 5 star NABERS
rating for energy efficiency with a 400kW solar rooftop array.
NEXTDC’s operations are certified carbon neutral under
the Climate Active program and have a low Power Usage
Effectiveness (PUE) rating of 1.35 where the ideal ratio is
1.00 and the industry average is 1.70.
Sustainability Report 66
Energy and emissions
Notes
SEEK measures and discloses the energy consumption and
greenhouse gas emissions associated with its activities in
Australia and New Zealand.
Greenhouse gas emissions by scope
SEEK Australia and New Zealand operations
• COVID-19 restrictions were the primary driver behind multiple material
year on year variances including working from home emissions
(+359%), business travel (-94%) and purchased electricity (-40%).
• Scope 1 emissions are direct emissions from operations that are
owned or controlled by the reporting entity. SEEK does not have
operational control over any activities that result in material scope
1 emissions.
• Scope 2 emissions are indirect emissions from the purchased
(tonnes CO2-equivalent)
FY2021
FY2020
electricity consumed by the reporting entity.
Scope 1 - direct emissions
0
0
Scope 2 - electricity-related emissions
687
1,141
Scope 3 - indirect emissions
5,245
6,329
Total emissions
5,932
7,470
Scope 3 - indirect emissions
(Melbourne headquarters fit-out)
7,550
0
Total emissions
13,482
7,470
Energy consumption
SEEK Australia and New Zealand operations
(GJ)
FY2021
FY2020
Electricity (offices)
2,701
4,231
Energy (via purchased services)
11,859
24,704
• Scope 3 emissions are indirect emissions (not included in scope 2)
that occur in the value chain of the reporting entity including both
upstream and downstream emissions where relevant to SEEK’s
operations. SEEK’s Scope 3 emissions include: emissions associated
with employees working from home (“WFH”), base-building services
(electricity and natural gas), waste generated in activities, purchased
goods and services (primarily international and local data services
and office supplies), employee commuting, business travel (flights
and vehicles), embodied carbon in capital goods (IT equipment) and
the new Melbourne headquarters fit-out, and full fuel cycle emissions
for fossil fuels and electricity consumed.
• Table includes SEEK Limited subsidiaries OES, JobAdder
and Sidekicker.
• Energy (via purchased services) includes business travel (flights and
vehicles), base-building services (electricity and natural gas) and
purchased data services.
• The corporate reporting protocol adopted by SEEK is the World
Business Council for Sustainable Development Greenhouse Gas
Protocol based on the company’s operational control of its sites.
Reference has also been made to Australia’s Climate Active Standard
for Organisations.
• The methodology (energy and emission factors) used for estimating
Scope 1, 2 and 3 emission sources is from Australia’s National
Greenhouse Accounts (NGA) unless otherwise specified. Working
from home emissions were determined using Climate Active’s
certified calculator.
Total energy consumption
14,560
28,935
• The SEEK Group falls below the threshold for National Greenhouse
and Energy Reporting (NGER) mandatory annual reporting.
Figure 1
SEEK ANZ key emission sources
FY21 Total t CO2 -e
FY20 Total t CO2 -e
e
-
2
O
C
t
3000
2000
1000
0
WFH emissions
Leased premises
Data services
Waste generated
in operations
Electricity
purchased
Business travel
Emission sources
The Melbourne headquarters of SEEK relocated to a purpose-built office in the Melbourne suburb of Cremorne in August 2021. The office
fit-out during FY2021 contributed 7,550 tonnes of CO2-equivalent which includes the embodied emissions of workspace fixtures and
fittings, office furniture, materials and technology. This emission source is not represented in figure 1.
SEEK Limited Annual Report 2021
67
Task Force on Climate-related Financial Disclosures
In line with the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), this
report provides information about SEEK’s approach to managing its climate-related risks and opportunities,
including a TCFD implementation roadmap.
Governance
Risk management
SEEK’s Board is responsible for overseeing SEEK’s social,
governance and environmental responsibilities, including
climate change. Climate change is currently considered an
emerging risk for SEEK, and will receive continued assessment
by the Board. The Board ensures that SEEK has appropriate
risk management strategies and internal controls in place.
The Audit and Risk Management Committee supports the
Board by monitoring SEEK’s risk management against the Risk
Management Framework and reviewing the Group’s key risks,
controls and mitigation measures to deal with identified risks.
This year SEEK has committed to the TCFD recommendations,
engaged an external consultant to run several workshops
on climate related content involving executives and senior
leaders and assigned an executive to act as climate change
champion and the key communicator to the Board on climate
related issues.
Looking forward, SEEK will:
• Continue to include climate change as a regular item on
Board meeting agendas
• Assign internal responsibilities for managing climate change
within the organisation
• Appoint experienced professionals to support the Board and
management in implementing SEEK’s climate strategy.
Strategy
In FY2021, SEEK further explored the impact of climate change
on the business, which resulted in the identification of key
risks and opportunities that may impact SEEK over the short,
medium and long-term.
SEEK’s current climate change strategy is to support the
transition to a low carbon economy through:
• Assessing and managing the risks arising from climate
change and future carbon constraints relevant to
the business
• Collaborating with industry, investors and other stakeholders
to share knowledge and build capacity
• Management of SEEK’s carbon footprint
SEEK will engage with climate experts and perform climate
scenario analysis to better understand how exposures to
climate change impacts will evolve over time under different
emission scenarios. SEEK’s climate change strategy will evolve
in response to emerging potential impacts of climate change
on business operations.
SEEK considers climate change and its impacts within the
existing risk management strategy and framework. SEEK
is committed to reducing emissions and responding to
stakeholder concerns when considering the risks of climate
change. As a result, SEEK remains in communication with its
key stakeholders to ensure that it is alert and responsive to
their expectations.
In FY2022, the focus will be on embedding climate considerate
decision making across the business and addressing the
specific key risks and opportunities that SEEK has identified.
This will be achieved through:
• Launch of an internal communications plan that encourages
employees to engage with emissions reduction activities and
build further capability to understand and manage climate
related risks and exposures
• Review of relevant policies and procedures, particularly
relating to business travel
• Further exploration of the short, medium and long-term
impacts of climate change on the business.
Identifying climate risks and opportunities
Key climate-related risks, including physical risks and transition
risks, were identified in FY2021 for SEEK’s global operations
through the following process:
1: Risk and opportunity identification
• Internal strategy and risk assessments
• Review of industry specific global standards and best
practice reports
• Research into industry and peer activity
2: Executive interviews — Gathered perspectives and insights
from cross-divisional management and executive business
functions
3: Prioritisation and validation — A team of executives and
senior leaders leveraged their knowledge of SEEK and its
business context to identify key areas of climate-related risk
and opportunity with the greatest potential financial impact
over the short, medium and long-term.
Sustainability Report
68
SEEK has identified the following climate related risks and opportunities.
RISKS
Operations
Operations may be disrupted by business continuity failure of cloud service
providers or data infrastructure due to extreme heat or unreliable supply
of electricity. SEEK facilities and employee homes may be impacted
by similar physical constraints disrupting productivity and impacting
employee satisfaction.
SEEK’s employment platforms may lack sufficient exposure to relevant
hirers and candidates to meet the demand shift to green jobs impacting
market share and revenues.
Employees
The health and safety of employees may be impacted when working from
home or at SEEK’s offices, and commuting to and from offices, due to extreme
temperatures and weather events such as severe storms and flooding.
SEEK’s climate response may not align with employee values on climate
change or support employee retention and attraction affecting employee
loyalty and SEEK’s ability to attract key talent.
Stakeholders
Investors may respond negatively to companies that demonstrate
insufficient climate responsiveness impacting access to capital and
reputation.
OPPORTUNITIES
Operations
SEEK is positioned to take proactive steps to reduce carbon emissions and
move swiftly towards carbon neutrality.
SEEK’s employment platforms may aid the efficient shift to green jobs
increasing market share and revenues.
What happens next?
SEEK’s TCFD Implementation Roadmap
Action
SEEK’s climate commitments
SEEK is committed to deliver on three carbon
commitments in relation to its relevant scope 1, 2 and
3 emissions.
1. Achieve carbon neutrality for SEEK ANZ for FY2021
under Climate Active in FY2022.
SEEK aims first to reduce carbon emissions then
offset the remaining unavoidable emissions to achieve
carbon neutrality. Where SEEK offsets its emissions,
it is committed to purchasing offset units that are
deemed eligible under Australia’s governing standard,
Climate Active, with a focus on higher impact land-
based projects.
2. Formalise an emissions reduction strategy for SEEK
in FY2022.
This fundamental step to reduce SEEK’s emissions will
provide a clearer perspective on the targets to support
the global warming objectives of the Paris Agreement.
SEEK has the following initial targets which it will further
refine through the emissions reduction strategy:
• Pathway to achieve net zero across all scope
emissions by 2030
• Develop a science-aligned target by 2025
3. Achieve carbon neutrality for SEEK’s global footprint
for FY2022 under Climate Active in FY2023.
This reflects SEEK’s commitment to measuring its
global emissions in order to comprehensively address
emissions reduction.
Governance:
Disclose the organisation’s governance around
climate-related risks and opportunities
• Assign internal responsibilities and engage resources to support the Board and management
to implement SEEK’s climate strategy
• Develop an internal communications plan on SEEK’s climate change position and strategy
• Develop an assurance program for sustainability and climate change related data
Strategy:
Disclose the actual and potential impacts of
climate-related risks and opportunities on the
organisation’s businesses, strategy and financial
planning where such information is material
• Develop an emissions reduction strategy across scope 1, 2 and 3 emission sources
• Achieve carbon neutrality for SEEK ANZ then SEEK’s global operations under Climate Active
• Perform climate scenario analysis
• Monitor potential climate impacts and integrate into risk management
Risk management:
Disclose how the organisation identifies, assesses
and manages climate-related risks
• Develop and implement actions to address priority risks and opportunities
•
Integrate climate change into relevant SEEK policies and procedures
• Develop an assurance program for sustainability and climate change related data
Metrics & targets:
Disclose the metrics and targets used to assess
and manage relevant climate-related risks and
opportunities where such information is material
• Disclose scope 1, 2 and 3 greenhouse gas emissions for SEEK ‘s global operations
• Develop and disclose metrics for performance against targets to address climate-related
risks and opportunities
• Monitor and report progress against established climate-related targets
SEEK Limited Annual Report 2021 GOVERNANCE
SEEK is committed to conducting business
in an honest, ethical and accountable way.
69
Protecting human rights and
labour standards
Modern slavery
SEEK is opposed to slavery in all forms.
SEEK’s employment platforms in Australia and New Zealand
advertised the largest pool of unique job advertisements for
over 200,000 unique hirers during FY2021, and many more
across SEEK’s Asian and Latin American businesses. SEEK
acknowledges its role and responsibility to safeguard against the
risk of modern slavery in advertising job opportunities that could
be deceptive recruiting for forced or bonded labour including
human trafficking. SEEK applies significant resources to ensure
that all job advertisements on the employment platforms
are for legitimate job opportunities and removes any which
are suspicious.
In November 2020 SEEK issued a Modern Slavery Statement
covering SEEK and OES which is also a reporting entity. This
is available on the Australian Government Modern Slavery
Statements Register and on the SEEK corporate website. The
Statement explains the actions that SEEK has taken to assess
and address potential modern slavery risks related to SEEK’s
operations and supply chains during FY2020. No instances
of modern slavery were identified during the due diligence
assessments of modern slavery risk on SEEK’s employment
platforms and supply chains.
During FY2021 SEEK re-assessed the inherent risks that jobs
advertised on employment platforms across SEEK may be
linked to modern slavery practices. This assessment resulted
in analysis of the employment platforms JobStreet Indonesia
and JobsDB Thailand. Outcomes of the risk assessment will
be reported in the FY2021 SEEK Modern Slavery Statement,
together with the actions to assess and address modern slavery
risks in SEEK’s supply chains.
Fair hiring
The fair hiring initiative reflects SEEK’s commitment to consider
the risks to candidate working lives when engaging with SEEK’s
employment marketplaces. These risks arise, particularly in
South East Asia, when job ads are placed that might:
• Expose candidates to illegitimate or illegal jobs, for example
fraud or migration scams
• Unlawfully charge or not disclose candidate placement fees
so that the worker pays for a job
• Discriminate against or disadvantage some candidates
The fair hiring initiative involves close examination of SEEK’s
processes and systems through the lens of these risks to
identify platform weaknesses and vulnerabilities that could
be exploited by unscrupulous actors. This has identified
various existing controls across SEEK Asia that address these
vulnerabilities. These will be strengthened through leveraging
SEEK ANZ product and technology capability as part of the
move to a single platform through Market Unification.
SEEK Asia is working to provide candidates with clarity and
awareness of their rights and warnings about known unfair
hiring practices, particularly affecting migrant, manual and
domestic workers. The aspiration is for candidate interactions
with SEEK’s employment platforms to result in safe and fair
employment outcomes.
Contingent labour platforms
SEEK Growth Fund has investments in tech-enabled
marketplaces including Jobandtalent in Europe and Latin
America, Sidekicker in Australia and New Zealand and Florence
in the United Kingdom. These are leading on-demand temp
staffing platforms that service large and growing contingent
labour markets. SEEK’s approach is primarily to invest where
the staffing platform manager is the “employer of record”,
retaining responsibility to ensure wage compliance, including
applicable wage rates, and payment of superannuation and tax.
Sustainability Report 70
Responsible procurement
SEEK believes that third party spend must be
well-governed, transparent and reflect SEEK’s
ethical and social responsibilities. Accordingly,
the objective of SEEK’s procurement function is
to ‘help SEEKers move quickly, maximise value
and balance risk’ when engaging third parties.
As a technology business, SEEK’s principal
categories of spend are technology, marketing
and business services. These categories
frequently involve inherent commercial, data
protection, security and business continuity
risks and, accordingly are subject to SEEK’s
Procurement Policy and underpinned by SEEK’s
digital purchasing platform, Coupa. Inherent
risk factors and total value drive a series
of automated approvals and due diligence
workflows to ensure that relevant risks, such
as information security and legal, are subject to
review by risk experts. Together these systems,
policies and processes promote a healthy
control environment.
SEEK’s procurement team has continued to
increase the maturity of spend and procurement
practices during FY2021, including:
• On-boarding of new and legacy suppliers
to SEEK’s Supplier Code of Conduct and
tracking acceptance.
• Monitoring SEEK’s payment of invoices
from small and medium businesses which
represents approximately 15% of the spend
by SEEK ANZ. SEEK pays the vast majority of
these invoices within 30 days and promotes
timely payment in accordance with the
new Payment Times Reporting Act 2020
(Commonwealth).
• An internal risk management forum to
proactively escalate key risks associated
with engaging, managing and off-boarding
third parties.
Looking ahead, SEEK will increase its focus on
supply chain integrity, including environmental
and human rights considerations, and indigenous
and social procurement.
The SEEK Modern Slavery Statement 2020
explains the actions that SEEK has taken to
assess and address potential modern slavery
risks related to the supply chains during FY2020.
In FY2021 SEEK continued to expand and
enhance its due diligence and risk assessment
activities throughout the supply chain and
established a formal working group to monitor
progress and share practices. Outcomes
will be reported in the FY2021 SEEK Modern
Slavery Statement.
SEEK Limited Annual Report 2021 71
Promoting responsible and ethical
business practices
SEEK is committed to conducting business in an honest,
ethical and accountable way. Through This is SEEK, the
Company’s Purpose and Vision are aligned with a clearly
defined set of Beliefs and Attributes. Together, these reflect
SEEK’s values, codify its culture and reinforce the desired
behaviours and ways of working at SEEK. This is SEEK is
described on page 58.
Code of conduct
SEEK’s Code of Conduct for Employees establishes a standard
of performance, behaviour, professionalism and integrity for
employees, contractors and directors with respect to their
conduct. Workplace Behaviour Guidelines sit alongside the
Code of Conduct and, together with This is SEEK, set out the
standards of expected behaviour for employees.
Whistleblower protection
The Whistleblower Protection Policy covers all SEEK businesses
and complies with the whistleblower legal regime in Australia.
The policy encourages employees and stakeholders to
report concerns of wrongdoing, and explains how to speak
up, what protections a person who reports wrongdoing will
receive and SEEK’s processes for dealing with reports of
wrongdoing. Independent channels for whistleblower reports are
available, including through Deloitte Halo in Australia and New
Zealand. This enables SEEK to protect the confidentiality of a
whistleblower report and the reporter’s identity.
Despite awareness-raising about the availability of whistleblower
channels, low numbers of whistleblower reports have been
received across SEEK, particularly during the COVID-19 office
closures in 2020 and 2021. The Board, through the Audit and
Risk Management Committee, receives regular updates on any
matters reported through SEEK’s whistleblower channels.
Anti-bribery and corruption
Competition and consumer law compliance
Competition laws are designed to promote and maintain
market competition by regulating anti-competitive conduct.
Consumer laws set general standards of business conduct and
prohibit unfair trading. SEEK participates lawfully and ethically
in all market competitive activities and observes consumer
protection laws.
SEEK is committed to conducting business in compliance with anti-
bribery and anti-corruption laws in all countries in which it operates.
SEEK’s legal team is responsible for advising, monitoring and
reporting on competition and consumer law compliance.
The SEEK Anti-Bribery and Anti-Corruption Policy sets out SEEK’s
requirements in relation to interactions with officials and third
parties, and is supplemented by the SEEK Gifts and Entertainment
Policy. Awareness and understanding of the policy requirements
are promoted through mandatory employee training across SEEK.
Reporting of suspected breaches of the policy is encouraged,
including through the whistleblower channels. Compliance officers
have been appointed across the SEEK businesses. Any material
violation of the policy would be reported to the Board through the
Audit and Risk Management Committee.
Insider trading prohibitions
The purpose of the Share Trading Policy is to ensure that officers
and employees of SEEK have a clear understanding of insider
trading laws and the rules that apply to them and to their associates
in relation to dealing in SEEK securities.
Under the Share Trading Policy, officers and employees are
prohibited from dealing in SEEK securities if they are in possession
of inside information. Additional dealing restrictions apply to
directors, executives and other SEEK employees who may be
exposed to inside information. These people are not permitted to
deal in SEEK securities during defined blackout periods and must
obtain clearance to deal at other times.
Taxation transparency
SEEK releases an annual Tax Transparency Report detailing the tax
strategy, governance and tax contributions made during the year to
global revenue authorities, including the Australian Taxation Office.
The information is provided on a voluntary basis in accordance with
the recommendations and guidelines contained in the Voluntary Tax
Transparency Code released by the Australian Government.
More on Governance
Each year SEEK prepares a Corporate Governance
Statement which is released to the Australian Securities
Exchange and appears on the following pages. This is also
available on the SEEK Company website in the Corporate
Governance section, alongside Board charters and key
policies that underpin SEEK’s corporate governance
practices.
Sustainability Report 72
SEEK Limited Annual Report 2021 Corporate Governance Statement
73
CORPORATE GOVERNANCE
STATEMENT
The Board of SEEK considers that high standards of corporate governance are a cornerstone
to creating long-term and sustainable shareholder value, ensuring that the workplace is fair,
equitable and respectful of its employees, and protecting the interests of other stakeholders.
The Board is committed to fulfilling its corporate governance responsibilities in the best
interests of SEEK and its stakeholders.
This statement describes the principal governance arrangements which operated across SEEK Limited (‘SEEK’)
during FY2021 to ensure effective decision-making and accountability. The fourth edition of the ASX Corporate
Governance Principles and Recommendations (‘ASX Recommendations’) has been fully reflected in SEEK’s governance
throughout FY2021.
This Corporate Governance Statement has been approved by the Board and is current as at 9 September 2021.
Corporate governance policies and charters
SEEK maintains a Corporate Governance section on its website making available the governance policies, Code of Conduct
and the Board and Committee charters referred to in this statement. This is located in the Investors section and can be
accessed at https://www.seek.com.au/about/investors/corporate-governance/
Board of Directors
Director
Position and independence
Graham Goldsmith
Chairman since January 2019
Independent Non-Executive Director
Appointment as director
October 2012
Ian Narev
Managing Director and Chief Executive Officer
July 2021
Andrew Bassat
Non-Executive Director (not independent)
Executive director from September
1997- June 2021
Non-Executive Director from July 2021
Julie Fahey
Leigh Jasper
Linda Kristjanson
Michael Wachtel
Vanessa Wallace
Independent Non-Executive Director
Independent Non-Executive Director
Independent Non-Executive Director
Independent Non-Executive Director
Independent Non-Executive Director
July 2014
April 2019
October 2020
September 2018
March 2017
74
SEEK Limited Annual Report 2021
Board structure
Board
Delegation
Reporting &
accountability
Board
committees
Nomination
Committee
Audit and Risk
Management
Committee
Remuneration
Committee
• External auditor
• Internal audit
• Risk management
framework
• Chief Risk
Officer
CEO
n
o
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t
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D
l
&
g
n
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o
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R
y
t
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a
t
n
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Executives
Role of Board
The Board is accountable to shareholders for the performance of SEEK. The Board meets regularly to set strategy, monitor risk
and review SEEK’s performance and progress against its strategic direction and business plans. It approves and monitors capital
management including major capital expenditure, acquisitions and divestments. The Board also ensures SEEK has in place appropriate
internal controls, corporate reporting systems and risk management. The Board is responsible for the evaluation of the performance of
the CEO, establishment and review of his or her remuneration and ensuring succession plans for key executive roles are in place.
The Board operates in accordance with the SEEK Board Charter which sets out the functions reserved for the Board and its key
responsibilities. The Board reviews the Board Charter periodically to ensure it remains consistent with the Board’s objectives.
The Board Charter delegates authority to the CEO for the management of SEEK, subject to established financial and other limitations.
The CEO has overall responsibility for the operational, financial and business performance of SEEK and manages the organisation.
In accordance with its Charter, the Board has established standards encouraging responsible and ethical behaviour for all SEEK
employees, officers and directors, including the Code of Conduct, Whistleblower Protection Policy and Anti-Bribery and Anti-
Corruption Policy.
This is SEEK is SEEK’s culture statement, which aligns SEEK’s Purpose and Vision with a clearly defined set of Beliefs and Attributes.
A summary can be found in the Sustainability Report.
Chairman
Graham Goldsmith became Chairman in January 2019 having served for six years on the Board and as Chairman of the Audit and
Risk Management Committee. He is an independent director and devotes significant time to his chairmanship. The Board Charter
describes his responsibilities which involve working closely with the CEO as the primary link between the Board and management.
He leads the Board in discharging its responsibilities and is supported by the Company Secretary in ensuring effective Board
governance and meetings.
Company Secretary
The Company Secretary until 30 June 2021 was Lynne Jensen, followed by Rachel Agnew from 1 July 2021. The Company Secretary
is accountable directly to the Board, through the Chairman, on all matters to do with corporate governance and the proper functioning
of the Board. Each director has access to advice and support of the Company Secretary.
Corporate Governance Statement
75
Board committees
The Board has established three standing committees which provide efficient and effective mechanisms to focus on key areas of Board
responsibility. On occasion the Board has also established ad hoc committees to provide specific oversight of time-critical matters.
During FY2021, the Board established an ad hoc Independent Board Committee comprised of Graham Goldsmith, Michael Wachtel and
Vanessa Wallace, to advise and make recommendations to the Board in relation to the review of the separation of SEEK’s investment
business1. The Committee was delegated authority by the Board and considered such matters as appointment of advisors, the
commercial negotiations and terms, continuous disclosure, dealing with conflicts of interest and related party considerations.
Committee
Membership
Key roles and responsibilities
Audit and Risk
Management
Committee
Michael Wachtel (Chairman)
Julie Fahey
Graham Goldsmith
Vanessa Wallace
The Committee supports the Board by:
•
reviewing and recommending the statutory financial reports;
• making recommendations in relation to SEEK’s accounting and
financial controls;
•
•
•
•
•
recommending the appointment of the external auditor and assessing
the provision of non-audit services and external auditor independence;
reviewing the internal audit plan, reporting on significant findings,
management’s actions to remediate findings and the adequacy of
SEEK’s processes for managing risk;
reviewing and recommending the Risk Management Framework
and Risk Appetite Statements, monitoring SEEK’s risk management
against the Risk Management Framework and overseeing the
insurance program;
reviewing SEEK’s key risks (including environmental, social and
governance risks) and controls and mitigation measures to deal with
those risks; and
receiving periodic reports from management on the operation of the
Whistleblower Protection Policy and Anti-Bribery and Anti-Corruption Policy.
Remuneration
Committee
Graham Goldsmith (Chairman)
Leigh Jasper
Linda Kristjanson (from
October 2020)
Vanessa Wallace
The Committee supports the Board by reviewing and recommending:
• SEEK’s remuneration strategy, framework and design;
• allocation of the pool of non-executive director fees;
•
the remuneration structure, outcomes and termination arrangements
for the CEO and the Executive Leadership Team;
Nomination
Committee
Graham Goldsmith (Chairman)
All other Non-Executive
Directors
•
the design of equity-based plans; and
• SEEK’s Diversity and Inclusion Policy, gender pay equity, diversity
measurable objectives and annual progress against these objectives.
The Committee supports the Board by:
•
reviewing the size and composition of the Board and its Committees;
•
reviewing director succession and recommending the selection and
appointment of new directors and retirement and re-election;
• developing and implementing the process for evaluating Board,
Committee, Chairman of the Board and individual director
performance; and
• ensuring there is a director induction program and professional
development for the Board.
Committee composition
• Members are independent non-executive directors, except for the Nomination Committee, where all non-executive directors
including Andrew Bassat are members.
• Minimum of three members.
• Chaired by an independent non-executive director. The Audit and Risk Management Committee Chairman may not be the
Chairman of the Board.
• The relevant financial qualifications and experience of the members of the Audit and Risk Management Committee are set out on
in the Directors’ Report in the FY2021 Appendix 4E and Statutory Accounts.
The number of times each Committee met during the reporting period and the individual attendances of the members at those
meetings is set out in the Directors’ Report.
1 As announced by SEEK on 11 August 2021, the SEEK Growth Fund, which is a newly formed unit trust, was established and will be seeded with Online Education Services and the majority of SEEK’s Early
Stage Ventures. SEEK has also committed A$200 million of capital to the Fund. SEEK will own a c84.5% interest in the Fund, which will be managed by an independent management company (SEEK
Investments), led by Andrew Bassat.
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SEEK Limited Annual Report 2021
Board composition
In determining the composition of the Board, the directors consider the size of the Board by reference to the Constitution and Board
Charter, the needs of SEEK for director skills and experience, orderly succession planning and diversity.
As at the date of this report, the Board comprises seven non-executive directors and a managing director. Six of the seven non-
executive directors of SEEK are independent, and all non-executive directors regularly confer as a group without management
present. From 1 July 2021, Ian Narev (as Managing Director and CEO) and Andrew Bassat (as the former Managing Director and
CEO) are the only directors not considered independent.
Board skills matrix
The skills and experience of SEEK’s non-executive directors reflect SEEK’s strategy and principal activities globally. In assessing its skills
and experience mix and identifying any gaps in its collective skills, the Board applies a skills matrix. The results of the most recent survey
assessing the Board’s collective skills and experience is shown in the matrix below. The criteria each individual non-executive director
meets to be considered to have the skill is a rating of ‘experienced or competent’ or ‘expert or significant operational experience’.
Board renewal will continue to appoint directors, through vacancy or as additional Board members, to assist the Board to take into
account any desired skills or experience, and address existing and emerging business and governance issues relevant to SEEK’s
operations, markets and strategy.
Number of non-executive
directors with these skills
1
2
3
4
5
6
7
Skill area
Description
Information
technology/Digital
Technology industry, digital platform, e-commerce,
technology strategy, technology infrastructure, information
monetisation, digital disruption
Education and
employment
Customer and
marketing
Executive/Senior
management
leadership
Listed company
governance
Higher education, online education, education policy,
employment policy, recruitment and employment related
industries
Key relationships with customer base and industry
participants; customer marketing strategies, consumer
marketing, business development
Senior executive level role in an organisation of similar scale
Non-executive directorship or CEO of a listed company,
related shareholder and investor relationships and
corporate governance
Financial acumen and
risk management
Assessment of financial performance of significant businesses,
financial accounting and reporting, audit, oversight of risk
management and internal controls
Business mergers and
acquisitions
Mergers and acquisitions and business integration
Corporate finance
Capital management; debt and equity raising
Global perspective
Exposure to or responsibility for international operations or
global markets
Strategy and
innovation
Developing strategic business objectives, execution of strategy,
business transformation, driving long term change and growth
Board diversity
SEEK is committed to an inclusive culture that
values diversity. This is reflected in the Board’s
considerations on its composition which extends
beyond ensuring the directors bring the right skills
and experience for SEEK’s current business and
emerging challenges. Diversity of background
and experiences brings different perspectives and
thought which enhances decision-making.
The Board reflects gender
balance, a broad tenure and age
range, and diverse educational
and geographic backgrounds.
Measurable objectives
The SEEK Board intends to maintain the level of
female directors above 30%.
The measurable objectives established by the Board
pursuant to SEEK’s Diversity and Inclusion Policy
for achieving gender diversity in the composition of
senior executives and the workforce generally and
its progress towards achieving those objectives is
described in the ‘Diversity and inclusion’ section of the
Sustainability Report on pages 63 and 64, together
with the respective proportions of women and men in
executive and senior manager positions and across
the whole workforce.
Corporate Governance Statement
77
37.5%
Female directors of
SEEK Limited
47-66 years
Age range of directors
63%
Directors have obtained
higher education
qualifications outside
Australia
0.2 to
8.9 years
Range of tenure of SEEK’s
non-executive directors
3.8 years
Average tenure of SEEK’s
non-executive directors*
*Andrew Bassat’s tenure as a non-executive director is calculated from 1 July 2021.
78
SEEK Limited Annual Report 2021
Appointment of new directors
The Nomination Committee performs Board succession planning.
To fill vacancies or where a need for an additional Director has
been identified, the Nomination Committee will identify suitable
candidates to bring specific skills to complement the existing Board.
Where appropriate, external search consultants may be engaged
to assist.
The Nomination Committee will assess a candidate against a
range of criteria including experience, professional qualifications,
personal qualities and cultural fit with the Board and SEEK. It also
considers the candidate’s other significant time commitments, if
any, to ensure that the candidate will have capacity to fulfil his or her
responsibilities as a director of SEEK.
Where a candidate is recommended by the Nomination Committee,
the Company Secretary initiates detailed checks into the candidate’s
background and experience. Before the Board resolves to appoint
the candidate as a director, an independence assessment is also
conducted using the detailed analysis which is applied annually in
respect of each non-executive director.
A newly appointed director will stand for election at the annual
general meeting (‘AGM’) following their appointment, as required
under the Constitution. The notice of meeting will contain a
detailed biography, including other directorships and significant
commitments, and any other material information relevant to a
shareholder’s decision whether to elect the director.
A new director is provided an induction program and materials
designed to introduce the director to all aspects of SEEK’s business
and strategy. This will include meetings with the Chairman and the
other directors, the CEO and senior management to gain insight into
the business. The induction program also incorporates information
tailored to the director’s Committee work, knowledge, experience
and particular area of expertise.
Directors’ responsibilities and obligations
Written agreement with each director
Upon appointment each director is provided with a letter of
appointment which details the terms of their directorship and the
Board’s expectations. The letter of appointment is with the director
personally, and places specific obligations on the director in terms
of time commitment, independence, disclosure of material interests
and potential conflicts of interest and minimum shareholdings in
SEEK. It also requires the director to consult with the Chairman
before accepting any appointment which may affect a director’s
ability to meet the time commitment to SEEK.
Independence
The Board requires that non-executive directors bring views
and judgement to Board deliberations which are independent
of management or any substantial shareholder and free from
interests, positions or other relationships which could interfere
with the exercise of independent judgement. The Board’s
approach to the assessment of independence is set out in its
Director Independence Guidelines, and is also informed by the
ASX Recommendations, the Corporations Act 2001 (Cth) and the
Australian Accounting Standards.
Each year the Board considers and assesses each non-executive
director’s independence in light of the director’s positions,
relationships and interests and the materiality guidelines set out
in the Director Independence Guidelines. The Board requires non-
executive directors to provide relevant information to enable it to
make the assessment.
The Board has reviewed the positions and relationships of all the
non-executive directors in office as at the date of this statement.
The Board has determined that, except for Andrew Bassat, each of
the non-executive directors is independent and free of any interest,
position or relationship that could materially interfere with their
capacity for independent judgement and to act in the best interests
of SEEK as a whole. The Board considers that whilst Andrew Bassat
is not considered an independent director, his extensive knowledge
of the SEEK business, and his skills and experience in the markets
in which SEEK operates will be extremely valuable to retain on the
SEEK Board.
The Board also noted that some non-executive directors are
involved in other companies or professional firms which may
from time to time have immaterial dealings with SEEK, including
as customers of SEEK’s jobs websites. Details of offices held by
directors with other listed companies are in the Directors’ Report on
page 18 and 19.
Retirement and re-election
Under the Constitution, directors cannot hold office without re-
election for more than three years or past the third AGM after their
appointment, whichever is longer. In addition, the Constitution
provides that any director appointed by the Board holds office until
the next AGM when they are eligible for election. Andrew Bassat will
stand for election and Graham Goldsmith and Michael Wachtel will
stand for re-election at the 2021 AGM.
If no director is in a position requiring them to stand for election or
re-election in the normal rotation, then one director must retire and
stand for re-election at the AGM, as selected under the rules of the
Constitution. In the notice of meeting security holders are provided
with all material information relevant to their decision on whether or
not to re-elect a director.
Ian Narev is exempt from retirement and re-election while he holds
the position of Managing Director.
Minimum shareholding requirements for Directors
To align the Board experience with that of shareholders, the Board
has adopted a minimum shareholding policy which is described in
the Remuneration Report on page 36.
Arrangements with SEEK Growth
A policy has been put in place to identify and manage any potential
conflicts of interest arising as a result of Andrew Bassat’s dual role
as a non-executive director of SEEK and his involvement in the
SEEK Growth Fund as a director of the trustee and manager of and
investor in the Fund.
Directors’ development and support
Professional development
In addition to the induction program for new directors, there is a
program of presentations and briefings on matters impacting
the strategy and operations of SEEK.
Directors are also provided with legal compliance training on
matters such as continuous disclosure and anti-bribery and
anti- corruption and briefings on key changes to laws and
accounting standards affecting SEEK. Periodically a review is
undertaken to assess whether further professional development
is required for directors to assist them to maintain the skills and
knowledge necessary to perform their roles effectively. To assist
directors in better understanding SEEK’s international, strategic
and operational objectives, the Board and individual directors
visit various overseas operations of SEEK from time to time. For
FY2021, due to COVID restrictions, there has been no such travel,
however director and Board visits will resume when it is safe and
possible to do so.
Corporate Governance Statement
79
considerations, SEEK’s financial position and organisational
culture. SEEK’s approach to risk management is to identify
and minimise the potential for loss and implement appropriate
controls, whilst also maximising strategic opportunities
for growth.
SEEK monitors its exposure to all risks to the business including
operational, financial and non-financial risks. SEEK’s Principal
Risks are described on pages 16 and 17. The Sustainability
Report outlines SEEK’s approach to environmental, social and
governance risks.
The Audit and Risk Management Committee monitors
SEEK’s management of risk against the Risk Management
Framework, including whether it is operating within the risk
appetite set by the Board. The Committee reviewed the Risk
Management Framework during FY2021. Risk reporting
across SEEK is aggregated for reporting to the Audit and Risk
Management Committee.
The Audit and Risk Management Committee approves the
Internal Audit Plan and receives regular reporting on internal
audit findings and the status of management actions with a
focus on findings rated high.
SEEK’s Risk and Assurance function incorporates the internal
audit function and is responsible for delivering assurance
projects including internal audits. Assurance projects may be
undertaken internally by members of the Risk and Assurance
function or in conjunction with external service providers. The
Chief Risk Officer reports to the CFO and has unfettered access
to the Chairman of the Board and to the Chairman of the Audit
and Risk Management Committee and attends all meetings of
the Audit and Risk Management Committee.
ESG Accountability & Oversight
The Board through the Audit and Risk Management Committee
is responsible for oversight and management of non-financial
risks, including ESG risks. All directors generally attend the Audit
& Risk Management Committee meetings and have access to
the papers, and meeting reports are provided to the Board. In
addition, the Board receives periodic updates on and considers
ESG matters relevant to SEEK. The Board approves SEEK’s Risk
Appetite Statements and Principal risks and, after consideration
of stakeholder expectations, approves the ESG reporting topics
and the Sustainability Report.
Access to Information
In addition to comprehensive Board papers and briefings at
Board meetings, directors are able to access the CEO and
management to request relevant information.
Directors receive access to all Committee papers and the
minutes of each Committee meeting. In addition, the Chairman
of each Committee provides an update at the following Board
meeting on the activities of the Committee. All directors
have a standing invitation to, and generally do, attend any
Committee meeting.
Independent professional advice
Directors are entitled to seek independent professional advice
at SEEK’s expense relating to their role as a director of SEEK,
subject to prior written approval by the Chairman.
Board performance evaluation
The Board reviews its performance each year, including
assessing the operation of the Board, Committees and individual
directors as well as Board reporting and processes. The aim
of the Board performance review is to ensure that individual
directors and the Board as a whole work effectively in meeting
the responsibilities described in the Board Charter.
The Board performance evaluations are led by the Chairman.
In FY2021, the Chairman sought structured feedback from each
non-executive director and the CEO on the operation of the
Board, Committees and individual non-executive directors.
The Board undertakes externally facilitated performance reviews
periodically, with the aim to conduct such reviews in every third
year. These reviews incorporate feedback from executives and
other stakeholders beyond the Board. The Board conducted
an externally facilitated performance review in FY2018. The
scheduled FY2021 externally facilitated review has been deferred
to FY2022. The Board considered that there would be more
value obtained from an externally facilitated review next year,
given the recent change of CEO and Managing Director, internal
reorganisation within the business and the separation of SEEK’s
investment business.
Risk management and assurance
The Board views effective risk management as essential to
achieving its operational and strategic objectives.
The Board has overall responsibility for SEEK’s risk management
and has established the Risk Management Framework which it
reviews annually to satisfy itself that it continues to be sound.
Through SEEK’s Risk Appetite Statements, the Board determines
SEEK’s appetite for risk after taking into account SEEK’s strategic
objectives and other factors including regulatory and legal
requirements, stakeholder expectations (including shareholders
and customers), environmental, social and governance
Remuneration of Directors and Executives
The following matters are discussed in detail in the Remuneration Report.
• Executives’ contractual arrangements and remuneration
• Prohibitions on executives hedging equity based
structure for FY2021
remuneration contained in the Share Trading Policy
• Executive performance evaluations
• Non-Executive Director remuneration policy and
• Malus and clawback policies
• Minimum shareholding requirements
structure for FY2021
• Checks undertaken on Executives prior to appointment
80
SEEK Limited Annual Report 2021
Corporate reporting and assurance
SEEK has in place processes to verify the integrity of corporate
reporting. The Audit and Risk Management Committee provides
the Board with independent oversight of the corporate reporting
processes. Its membership includes accounting and financial
experts. The Committee reviews the financial reports and the
related representations provided by management. It meets with
the external auditor to discuss the financial reports including
without management present. The Committee recommends
to the Board the appointment of the external auditor and the
matters associated with the external auditor including rotation
of the audit engagement partner, fees for audit and non-audit
services and the scope of the external audit.
The CEO and CFO have for FY2021 assured the Board that the
annual declaration provided in accordance with section 295A of
the Corporations Act 2001 (Cth) and the equivalent declaration
at half year are founded on a sound system of risk management
and internal controls which is operating effectively.
SEEK has in place processes to verify the integrity of any
unaudited periodic corporate report it releases to the market to
satisfy itself that the report is materially accurate and balanced.
The unaudited corporate reports include this Corporate
Governance Statement, the Sustainability Report and the
Tax Transparency Report. These are prepared by the relevant
subject matter experts and content sign-off is provided by
responsible senior management. The CFO reviews each report
in full prior to review and approval by the Board. All material
quantitative and qualitative statements are supported with
verifiable evidence, and certain elements receive independent
verification, such as the energy consumption and emissions
data in the Sustainability Report. Under its Charter, the Audit
and Risk Management Committee provides the Board with
independent oversight of this process.
Market disclosure
SEEK is committed to accurate, balanced and timely disclosure
to ensure the efficient operation of the securities market and is
committed to promoting stakeholder and investor confidence
through its continuous disclosure practices. The Continuous
Disclosure Policy aims to ensure that the management and
delivery of price sensitive information by SEEK complies with
SEEK’s continuous disclosure obligations under the ASX Listing
Rules and the Corporations Act 2001 (Cth).
The Continuous Disclosure Policy sets out SEEK’s legal
obligations, provides guidance for the identification of material
information that may require disclosure to the market and sets
out the roles and responsibilities of SEEK personnel.
The Board has ultimate responsibility for ensuring that SEEK
complies with its continuous disclosure obligations and is
responsible for implementing and overseeing compliance with
the Continuous Disclosure Policy. The Board has delegated
certain responsibilities relating to SEEK’s continuous disclosure
obligations to a Disclosure Committee which comprises the
CEO, CFO and Company Secretary. The Disclosure Committee
is responsible for considering potentially price sensitive
information, determining whether it requires disclosure and
approving the form of that disclosure, other than on certain
matters reserved to the Board for approval.
The Board receives copies of all market releases immediately
after they are released to the market. Significant market
releases are considered and approved by the Board prior
to release to the market. When SEEK gives an investor or
analyst presentation, this is released to the market ahead of
the presentation.
Shareholders and stakeholder engagement
SEEK is committed to transparency and openness in its
communication with its shareholders. It works to keep
shareholders fully informed regarding developments and
important information affecting SEEK.
The channel for shareholders to access information about SEEK
is the ‘About SEEK’ section of the SEEK website which provides
information about SEEK generally and includes:
• a dedicated area for Investors including a Corporate
Governance section;
• ASX announcements, including the AGM Notice of Meeting,
Chairman’s address, CEO’s presentation and voting results;
•
•
•
reports and presentations including the Annual Report, the
Sustainability Report, the Tax Transparency Report, financial
results and accompanying presentations to the market;
information about key dates, the share price and dividends;
links to and contact details for SEEK’s share registry,
Computershare; and
• contact details for enquiries by shareholders, analysts
and media.
Shareholders may send and receive communications with
SEEK and Computershare electronically. Investors and other
stakeholders may sign up on the SEEK website to receive news
and investor updates by email. SEEK is committed to dealing with
shareholder queries in a respectful and timely manner whenever
they are received by the Company.
The AGM is a key opportunity for shareholders to hear the CEO
and Chairman provide updates on SEEK’s performance, ask
questions of the Board, and to express a view and vote on a poll
on the various matters of SEEK business. Shareholders may also
ask questions of the external auditor during the meeting. SEEK
encourages its shareholders to attend its AGM.
SEEK has an active investor engagement program in Australia
that includes scheduled briefings following half-yearly and
annual results reporting and during the AGM period. Other ad
hoc briefings are held throughout the year with institutional
investors, private investors, analysts and the media. These
briefings and presentations provide an opportunity for two- way
communication between SEEK and these stakeholders. SEEK
ensures provision of equal access to material information by
observing the following:
• all discussions with investors and analysts are conducted by
or with the sanction of the CEO or the CFO, and are limited to
explanation of previously disclosed material;
• where information is likely to be price sensitive then, in line
with its legal obligations and Continuous Disclosure Policy,
SEEK immediately discloses the information to the market;
• all SEEK investor and analyst presentations are released to the
market prior to delivery; and
• meetings with analysts to discuss financial results are not held
between 1 January and the release of the half-year results, or
between 1 July and the release of the full-year results.
FINANCIAL REPORT
Financial Statements
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Financial instruments and fair value measurement
Segment information
Notes to the Financial Statements
Performance
Note 1
Note 2 Discontinued operations
Note 3 Revenue
Note 4 Other income and expenses
Earnings per share
Note 5
Note 6
Income tax
Financing and risk management
Note 7 Net debt
Note 8 Notes to the cash flow statement
Note 9
Note 10 Financial risk management
Assets and liabilities
Note 11 Trade and other receivables
Note 12 Intangible assets
Note 13 Trade and other payables
Note 14 Leases
Note 15 Provisions
Equity
Note 16 Share capital
Note 17 Reserves
Note 18 Dividends
Group structure
Note 19 Interests in controlled entities
Note 20 Interests in equity accounted investments
Note 21 Parent entity financial information
Unrecognised items
Note 22 Commitments for expenditure
Note 23 Contingent liabilities
Note 24 Events occurring after balance sheet date
Other information
Note 25 Share-based payments
Note 26 Related party transactions
Note 27 Remuneration of auditors
Note 28 Other significant accounting policies
Note 29 Changes in accounting policies
81
Page
82
83
84
85
86
87
91
96
97
98
100
104
107
109
112
118
119
124
124
127
128
129
130
131
132
134
135
136
136
137
141
142
143
144
Basis of preparation
SEEK Limited is a for-profit entity for the purpose of preparing
financial statements.
These financial statements:
• are general purpose financial statements;
• are for the consolidated entity consisting of SEEK Limited and
its controlled entities;
• have been prepared in accordance with Australian Accounting
Standards (AASBs) and Interpretations issued by the Australian
Accounting Standards Board and the Corporations Act 2001;
• comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board;
• have been prepared on a historical cost basis except for
the revaluation of financial assets and liabilities (including
derivative instruments) measured at fair value through profit
and loss; and
• are presented in Australian dollars with all values rounded to
the nearest hundred thousand dollars, or in certain cases, the
nearest dollar, in accordance with the Australian Securities and
Investments Commission Corporations Instrument 2016/191.
Accounting policies adopted are consistent with those of the
previous financial year, with the exception of the areas described
in Note 29 Changes in accounting policies.
The Directors have included information in this report that they
deem to be material and relevant to the understanding of the
financial statements. Disclosure may be considered material and
relevant if the dollar amount is significant due to size or nature, or
the information is important to understand:
• SEEK’s current year results;
•
impact of significant changes in SEEK’s business; or
• aspects of SEEK’s operations that are important to
future performance.
In accordance with accounting standards, where appropriate,
the Primary Financial Statements and Notes to the financial
statements have been presented for continuing operations only,
including restatement of prior year numbers, as a result of the
Zhaopin disposal and the pending divestment of the SEEK Growth
Fund disposal group. Additionally, the Consolidated Balance Sheet
includes the presentation of assets held for sale and liabilities
directly associated with those assets held for sale of the SEEK
Growth Fund disposal group. Refer to Note 1 Segment information
and Note 2 Discontinued operations for the detail of these two
transactions, an understanding of which is critical for users of
the Financial Report in order to understand the overall financial
performance and position of SEEK for the financial year ended
30 June 2021.
The financial statements have been prepared on a going concern
basis. The Directors have made this assessment on the basis that
SEEK has sufficient liquidity, undrawn borrowing facilities and an
active and ongoing capital management strategy which enables it
to meet its obligations and pay its debts as and when they fall due.
The Basis of preparation forms part of the Notes to the financial
statements.
Financial Report 82
Consolidated Income Statement
for the year ended 30 June 2021
Revenue
Other income
Operating expenses
Direct cost of services
Employee benefits expenses
Marketing related expenses
Technology, product and development expenses
Operations and administration expenses
Depreciation and amortisation expenses
Finance costs
Transaction costs
Total operating expenses
Impairment loss
Share of results of equity accounted investments
Profit/(loss) before income tax expense
Income tax expense
Profit/(loss) from continuing operations
Profit from discontinued operations
Profit/(loss) for the year
Profit/(loss) is attributable to owners of SEEK Limited:
From continuing operations
From discontinued operations
Profit/(loss) is attributable to non-controlling interest:
From continuing operations
From discontinued operations
Notes
3
4(a)
4(b)
12(a)(iii)
20(b)
6(a)
2
2
5
5
5
5
2021
$m
760.3
3.0
(4.4)
(275.0)
(50.3)
(55.0)
(65.2)
(83.9)
(48.1)
(0.3)
(582.2)
(46.9)
4.1
138.3
(33.8)
104.5
669.4
773.9
104.9
647.3
752.2
(0.4)
22.1
21.7
Cents
29.7
29.6
Cents
213.0
211.6
Restated
2020
$m
650.6
13.6
(4.4)
(234.6)
(57.0)
(46.1)
(76.0)
(76.7)
(58.2)
(1.7)
(554.7)
(203.1)
(8.8)
(102.4)
(20.9)
(123.3)
31.1
(92.2)
(121.2)
8.1
(113.1)
(2.1)
23.0
20.9
Cents
(34.3)
(34.2)
Cents
(32.1)
(33.0)
Earnings/(loss) per share for profit from continuing operations attributable to the owners of SEEK Limited:
Basic earnings per share
Diluted earnings per share
Earnings/(loss) per share attributable to the owners of SEEK Limited:
Basic earnings per share
Diluted earnings per share
The above Consolidated Income Statement has been restated for discontinued operations (refer to Note 2 Discontinued operations)
and a change in accounting policy (refer to Note 29 Changes in accounting policies), and should be read in conjunction with the
accompanying notes.
SEEK Limited Annual Report 2021 Consolidated Statement of Comprehensive Income
for the year ended 30 June 2021
Profit/(loss) for the year
Other comprehensive income/(loss)
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign controlled entities
Exchange differences on translation of foreign equity accounted investments
Share of reserves movement of equity accounted investments
Losses on cash flow hedges
Losses on net investment hedges
Reserves recycled on disposal of subsidiaries
Reserves recycled on disposal of equity accounted investments
Income tax recognised in other comprehensive income
From continuing operations
Exchange differences on translation of foreign controlled entities
Exchange differences on translation of foreign equity accounted investments
Share of reserves movement of equity accounted investments
Gain/(loss) on net investment hedges
Gain on cost of hedging reserve
Recycling of foreign currency translation reserve
Recycling of net investment hedge reserve
From discontinued operations
Items that will not be reclassified to profit or loss:
Change in equity instruments held at fair value
From continuing operations
Gain/(loss) on fair value hedges
Change in equity instruments held at fair value
Income tax recognised on equity instruments held at fair value
From discontinued operations
Other comprehensive income/(loss) for the year
From continuing operations
From discontinued operations
83
Notes
2021
$m
773.9
Restated
2020
$m
(92.2)
6(b)
(62.3)
14.3
0.1
(0.6)
(2.2)
0.2
(0.3)
0.2
(50.6)
8.0
(2.0)
(4.5)
0.8
1.2
(82.6)
99.5
20.4
(0.8)
(0.8)
2.5
90.0
(32.7)
59.8
(51.4)
80.2
(49.9)
(3.0)
2.7
(5.1)
(9.5)
-
-
2.4
(62.4)
(20.8)
(8.0)
3.0
(22.8)
-
-
-
(48.6)
1.2
1.2
(0.9)
22.0
-
21.1
(61.2)
(27.5)
Total comprehensive income/(loss) for the year
802.7
(180.9)
Total comprehensive income/(loss) for the year attributable to:
Owners of SEEK Limited
Non-controlling interests
Total comprehensive income/(loss) for the year attributable to owners of SEEK Limited:
From continuing operations
From discontinued operations
776.6
26.1
802.7
53.5
723.1
776.6
(194.4)
13.5
(180.9)
(182.2)
(12.2)
(194.4)
The above Consolidated Statement of Comprehensive Income has been restated for discontinued operations (refer to Note 2
Discontinued operations) and a change in accounting policy (refer to Note 29 Changes in accounting policies), and should be read in
conjunction with the accompanying notes.
Financial Report 84
Consolidated Balance Sheet
as at 30 June 2021
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Current tax assets
Total current assets from continuing operations
Assets held for sale
Total current assets
Non-current assets
Investments accounted for using the equity method
Plant and equipment
Intangible assets
Right-of-use assets
Other receivables
Other financial assets
Deferred tax assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Borrowings
Unearned income
Lease liabilities
Other financial liabilities
Current tax liabilities
Provisions
Total current liabilities from continuing operations
Liabilities directly associated with the assets held for sale
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Other financial liabilities
Deferred tax liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Foreign currency translation reserve
Hedging reserves
Other reserves
Retained profits
Non-controlling interests
Total equity
Notes
7(a)
11
9(b)
6(a)(iii)
2(c)(iii)
20(b)
12
14(a)(i)
11
9(b)
6(c)(i)
13
7(b)
14(a)(ii)
9(b)
6(a)(iii)
15
2(c)(iii)
7(b)
14(a)(ii)
9(b)
6(c)(i)
15
16
17(a)
17(b)
2021
$m
491.8
771.1
4.3
6.3
1,273.5
1,064.5
2,338.0
562.4
67.3
1,380.0
192.9
-
11.2
48.8
2,262.6
4,600.6
831.1
77.3
129.9
17.1
60.6
69.5
29.5
1,215.0
69.1
1,284.1
1,029.9
188.1
0.9
158.0
20.9
1,397.8
2,681.9
Restated
2020
$m
604.8
151.6
57.6
3.2
817.2
-
817.2
268.3
35.5
2,538.8
55.5
114.9
436.4
62.2
3,511.6
4,328.8
307.3
143.4
350.9
28.0
70.0
25.2
36.5
961.3
-
961.3
1,797.6
36.0
3.1
127.5
27.5
1,991.7
2,953.0
1,918.7
1,375.8
269.2
(73.6)
(55.7)
147.8
1,546.6
84.4
1,918.7
269.2
60.8
(158.0)
16.1
886.7
301.0
1,375.8
The above Consolidated Balance Sheet has been restated for a change in accounting policy (refer to Note 29 Changes in accounting
policies), and should be read in conjunction with the accompanying notes.
SEEK Limited Annual Report 2021
85
Consolidated Statement of Changes in Equity
for the year ended 30 June 2021
Notes
29(a)
Balance as at 1 July 2019
Impact of change in accounting policy
Adjusted balance at 1 July 2019
Loss for the year from continuing
operations
Profit for the year from discontinued
operations
Other comprehensive (loss)/income for
the year from continuing operations
Other comprehensive (loss)/income for
the year from discontinued operations
Total comprehensive (loss)/income for the year
Transactions with owners:
Dividends provided for or paid
Employee share options scheme
Tax associated with employee share
schemes
Share of reserve movement of equity
accounted investments
Balance at 30 June 2020
18
6(b)
Profit/(loss) for the year from continuing
operations
Profit for the year from discontinued
operations
Other comprehensive loss for the year
from continuing operations
Other comprehensive (loss)/income for
the year from discontinued operations
Total comprehensive (loss)/income for the year
18
6(b)
20(b)
Transactions with owners:
Dividends provided for or paid
Employee share options scheme
Tax associated with employee share
schemes
Share of reserve movement of equity
accounted investments
Acquisition of subsidiaries
Change in ownership of subsidiaries and
equity accounted investments
Disposal of interest in Zhaopin
Reserves reclassified to retained earnings
on disposal of Zhaopin
Reserves reclassified to retained
earnings on disposal of equity accounted
investments
Utilisation of put option reserve
Transfer of reserves
Balance at 30 June 2021
Attributable to equity holders of the parent
Foreign
currency
translation
reserve
$m
Hedging
reserves
$m
Other
reserves
$m
Retained
profits
$m
127.6
-
127.6
(120.3)
-
(120.3)
(10.6)
-
(10.6)
1,127.3
(6.3)
1,121.0
Share
capital
$m
269.2
-
269.2
Non-
controlling
interests
$m
293.4
-
293.4
Total
$m
1,393.2
(6.3)
1,386.9
Total
equity
$m
1,686.6
(6.3)
1,680.3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(121.2)
(121.2)
(2.1)
(123.3)
8.1
8.1
23.0
31.1
(49.2)
(13.1)
1.3
-
(61.0)
(0.2)
(61.2)
(17.6)
(66.8)
(24.6)
(37.7)
21.9
23.2
-
(113.1)
(20.3)
(194.4)
(7.2)
13.5
(27.5)
(180.9)
-
-
-
-
-
-
-
9.7
(0.6)
(123.2)
-
(123.2)
9.7
(7.4)
1.5
(130.6)
11.2
2.4
1.8
-
1.8
-
269.2
-
60.8
-
(158.0)
(5.6)
16.1
(0.4)
886.7
(6.0)
1,074.8
-
301.0
(6.0)
1,375.8
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
104.9
104.9
(0.4)
104.5
647.3
647.3
22.1
669.4
(48.0)
(2.6)
(0.8)
-
(51.4)
-
(51.4)
(86.4)
(134.4)
104.9
102.3
57.3
56.5
-
752.2
75.8
776.6
4.4
26.1
80.2
802.7
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22.4
4.4
1.8
-
(2.7)
-
(70.6)
-
2.1
-
-
-
-
(70.6)
22.4
6.5
1.8
-
(2.7)
-
-
2.7
-
-
8.4
(70.6)
25.1
6.5
1.8
8.4
8.5
(253.7)
5.8
(253.7)
31.6
(23.0)
8.6
(8.6)
-
-
-
-
269.2
-
-
-
(73.6)
-
-
-
(55.7)
1.5
16.9
(0.7)
147.8
(1.5)
-
0.7
1,546.6
-
16.9
-
1,834.3
-
-
-
84.4
-
16.9
-
1,918.7
The above Consolidated Statement of Changes in Equity has been restated for discontinued operations (refer to Note 2 Discontinued
operations) and a change in accounting policy (refer to Note 29 Changes in accounting policies), and should be read in conjunction
with the accompanying notes.
Financial Report 86
Consolidated Statement of Cash Flows
for the year ended 30 June 2021
Cash flows from operating activities
Receipts from customers (inclusive of goods and services tax)
Payments to suppliers and employees (inclusive of goods and services tax)
Interest received
Interest paid
Transaction costs
Income taxes paid
Net cash inflow from operating activities attributable to continuing operations
Cash inflow from operating activities attributable to discontinued operations
Net cash inflow from operating activities
Cash flows from investing activities
Proceeds from disposal of interest in Zhaopin, net of cash disposed
Proceeds from disposal of Zhaopin, to be paid out
Payments for acquisition of subsidiary, net of cash acquired
Payments for interests in equity accounted investments
Proceeds from disposal of equity accounted investments
Dividends and distributions received from equity accounted investments
Payments for investment in financial assets
Payments for intangible assets
Payments for plant and equipment
Payments for convertible loans
Net cash inflow/(outflow) from investing activities attributable to continuing operations
Cash outflow from investing activities attributable to discontinued operations
Net cash inflow/(outflow) from investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayments of borrowings
Transaction costs on establishment of debt facilities
Settlement of share options in subsidiaries
Dividends paid to members of the parent
Payments for additional interest in subsidiary
Payments of lease liabilities
Net payment for other financing arrangements
Net cash (outflow)/inflow from financing activities attributable to continuing operations
Cash inflow/(outflow) from financing activities attributable to discontinued operations
Net cash (outflow)/inflow from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the year
Less cash and cash equivalents at the end of the year transferred to assets held for sale
Cash and cash equivalents at the end of the year attributable to continuing operations
Notes
6(a)(iii)
2(a)
2(b)(ii)
2(b)(iv)
2(a)
2(a)
2(c)(iii)
2021
$m
742.5
(428.9)
313.6
2.5
(47.3)
(2.0)
(42.7)
224.1
122.4
346.5
124.1
308.7
(1.2)
-
6.1
1.0
-
(83.7)
(54.2)
(0.4)
300.4
(191.3)
109.1
230.2
(631.0)
(1.0)
-
(116.4)
(14.2)
(7.1)
(29.5)
(569.0)
46.4
(522.6)
(67.0)
604.8
(12.4)
525.4
(33.6)
491.8
Restated
2020
$m
709.7
(459.4)
250.3
4.1
(47.2)
(1.0)
(38.2)
168.0
132.0
300.0
-
-
(4.0)
(4.0)
-
-
(3.3)
(85.7)
(7.1)
(1.2)
(105.3)
(151.3)
(256.6)
486.8
(185.1)
(4.6)
(6.5)
(47.8)
-
(9.7)
(30.8)
202.3
(10.1)
192.2
235.6
382.9
(13.7)
604.8
-
604.8
The above Consolidated Statement of Cash Flows has been restated for discontinued operations (refer to Note 2 Discontinued
operations) and a change in accounting policy (refer to Note 29 Changes in accounting policies), and should be read in conjunction
with the accompanying notes.
SEEK Limited Annual Report 2021 87
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2021
Performance
1. Segment information
Accounting Policy
Operating segments, which have not been aggregated, are reported in a manner consistent with the internal reporting
provided to the Chief Operating Decision Maker (CODM). The CODM, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Chief Executive Officer.
Segment EBITDA is the measure utilised by the CODM to measure the businesses’ profitability. Segment EBITDA
is earnings before interest, tax, depreciation and amortisation and excludes share of results of equity accounted
investments, amortisation of share-based payments and long-term incentives, gains/losses on investing activities,
and other non-operating gains/losses.
Change to operating segments
A change has been made to SEEK’s operating segments in FY2021 as a result of the transactions outlined below.
Zhaopin
On 23 February 2021, SEEK announced that it had entered into an agreement to sell down its controlling interest in Zhaopin. As a
result, Zhaopin was deconsolidated from SEEK from 1 May 2021 and is reported as a discontinued operation for the year. Refer to
Note 2 Discontinued operations for further information.
SEEK has retained a 23.5% equity accounted investment in Zhaopin effective from 1 May 2021, and has also retained its 61.1%
controlling interest in Zhaopin Ltd (the holding entity for the Zhaopin operations) as at 30 June 2021. The combined results of these
interests have been reported within continuing operations, with no comparative information for these operations. Refer to Note 2
Discontinued operations (specifically section (b)(iv)) for further details on balances held in Zhaopin Ltd.
SEEK Growth Fund
On 11 August 2021, SEEK announced the creation of SEEK Growth Fund (the Fund), following the completion of a strategic review
that had been announced in February 2021. SEEK’s current holdings in Online Education Services (OES) and 14 Early Stage Ventures
(ESVs) will be transferred to the Fund as seed assets in exchange for units in the Fund. The combined results of OES and the ESVs
that will be transferred to the Fund have been presented as a discontinued operation in FY2021 (referred to as ‘SEEK Growth Fund’),
with associated assets and related liabilities of the disposal group deemed to be held for sale at 30 June 2021.
The presentation of assets and associated liabilities that will be transferred to the Fund as held for sale, and recognition of the results
of the disposal group as a discontinued operation, as at 30 June 2021, requires judgement. The key factor in determining these
presentations is SEEK’s intention and advanced stage of planning for deconsolidation of the Fund in the future, and for the Fund to
run autonomously despite SEEK holding a majority financial interest.
Financial Report 88
1. Segment information continued
The operating segments of the continuing operations are as described below.
SEEK
Asia Pacific
& Americas
(AP&A)
Portfolio
Investments(1)
Corporate
Costs
ANZ
SEEK Asia
Brasil Online
OCC
AP&A Other
Zhaopin
ESVs
Operating segment
Nature of operations
Primary source of revenue
Geographical location
ANZ
SEEK Asia
Online employment marketplace services
Job advertising
Australia and New Zealand
Online employment marketplace services
Job advertising
Brasil Online
Online employment marketplace services
OCC
AP&A Other
Zhaopin(2)
ESVs(3)
Online employment marketplace services
A portfolio of early stage investments that
complement and/or have synergies with the AP&A
operating businesses
Online employment marketplace services and
provision of other offline services
A portfolio of early stage investments which are
managed as standalone entities
Candidate services and job
advertising
Job advertising
Various
Seven countries across
South East Asia
Brazil
Mexico
Various
Job and banner advertising
China
Various
Various
(1) Portfolio Investments refers to the legacy SEEK Investments segment, and in FY2021 comprises the continuing operations of Zhaopin (for which there is no comparative) and results from a small
portfolio of ESVs that will not be transferred to SEEK Growth Fund.
(2) SEEK has retained a 23.5% equity accounted investment in Zhaopin, as well as its 61.1% controlling interest in the holding company Zhaopin Limited. This has been reported within
continuing operations.
(3) SEEK continues to manage a small portfolio of ESVs that will not be transferred to SEEK Growth Fund. The results of these portfolio investments have been reported within continuing operations.
SEEK Limited Annual Report 2021 .
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SEEK Limited Annual Report 2021
91
(b) Geographical information
The following table analyses sales revenue and non-current assets (excluding deferred tax assets and financial assets) based on
geographical location.
Sales revenue is allocated to a country based on the geographical location of the customers.
Non-current assets are allocated to a country based on the geographical location of the asset. Intangible assets that relate only
to one country have been allocated to that country. Intangible assets acquired as part of the JobsDB and JobStreet acquisitions
(goodwill, brands and other intangible assets) relate to several countries and have been shown as “South East Asia” as they cannot
practically be split between the individual country locations. This is consistent with the approach for impairment testing (refer to
Note 12 Intangible assets).
Australia
China
South East Asia
Brazil
New Zealand
Mexico
United Kingdom and Europe
Rest of the world
Total for continuing operations
Sales revenue
Segment assets(2)
2021
$m
509.1
-
146.1
30.4
54.0
20.7
-
-
760.3
Restated
2020(1)
$m
360.1
-
163.7
53.5
42.7
27.4
2.0
1.2
650.6
2021
$m
458.2
-
1,131.5
8.1
5.7
35.9
-
0.8
1,640.2
2020(3)
$m
583.0
740.5
1,225.1
37.8
6.1
35.1
1.9
0.3
2,629.8
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
(2) Segment assets include plant and equipment, intangible assets and right-of-use assets.
(3) See Note 29 Changes in accounting policies - SEEK revised its accounting policy regarding upfront configuration costs incurred in implementing cloud computing arrangements. Comparative
information has been restated to account for the impact of the change retrospectively.
2. Discontinued operations
(a) Summary of discontinued operations
As outlined in Note 1 Segment information, SEEK has two discontinued operations for the year ended 30 June 2021, being the
disposal of Zhaopin, and the recognition of a disposal group for the assets that will be transfered to SEEK Growth Fund. This
section aggregates the key results for FY2021 from those two operations, with more detailed information provided on the individual
transactions in sections (b) and (c) of this Note, respectively.
2021
Financial performance of discontinued operations
Profit/(Loss) from discontinued operations after gain on sale after income tax
Profit/(Loss) from discontinued operations, attributable to owners of SEEK Limited
Zhaopin
$m
SEEK Growth
Fund
$m
675.6
657.4
(6.2)
(10.1)
Total
$m
669.4
647.3
Other comprehensive income, attributable to owners of SEEK Limited
19.5
56.3
75.8
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
Cash flows of discontinued operations
Net cash inflow from operating activities
Net cash outflow from investing activities incurred in the ordinary course of business
Net cash inflow from financing activities
186.2
184.8
88.1
(22.6)
42.8
(2.9)
(2.8)
183.3
182.0
34.3
(168.7)
3.6
122.4
(191.3)
46.4
Financial Report
92
2. Discontinued operations continued
(b) Zhaopin
On 23 February 2021, SEEK announced that it had entered into an agreement to sell down its controlling interest in Zhaopin. The
decision to reduce SEEK’s ownership interest is a continuation of SEEK’s portfolio management strategy and to create the right
structure to support Zhaopin’s long-term growth aspirations.
Effective from 1 May 2021, SEEK has retained a 23.5% equity accounted investment in Zhaopin, as well as retaining its 61.1%
controlling interest in the holding company, Zhaopin Limited. This has been reported within continuing operations.
(i) Financial performance
The financial performance presented is for the ten months ended 30 April 2021 and the year ended 30 June 2020 for the operations
of Zhaopin, including the holding company.
Sales revenue
Other income
Operating expenses
Profit from discontinued operation before income tax
Income tax expense
Profit from discontinued operation after income tax
Gain on sale from discontinued operation, after income tax
Profit from discontinued operation after gain on sale after income tax
Non-controlling interests
Profit from discontinued operation, attributable to owners of SEEK Limited
Exchange differences on translation of discontinued operation
Reclassification of foreign currency translation reserve on discontinued operation
Gains/(losses) on net investment hedges of discontinued operation
Reclassification of net investment hedge reserve of discontinued operation
Other comprehensive income from discontinued operation, attributable to owners of SEEK Limited
30 Apr 2021
$m
30 Jun 2020
$m
577.1
12.6
(530.3)
59.4
(12.7)
46.7
628.9
675.6
(18.2)
657.4
3.0
(86.3)
1.0
101.8
19.5
749.6
19.5
(698.9)
70.2
(15.7)
54.5
-
54.5
(21.0)
33.5
(20.8)
-
(21.8)
-
(42.6)
Earnings per share from profit from discontinued operation, attributable to the owners of SEEK
Limited
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
186.2
184.8
9.5
8.3
(ii) Cash flow of discontinued operation
The cash flow information presented is for the ten months ended 30 April 2021 and the year ended 30 June 2020.
Net cash inflow from operating activities
Net cash inflow/(outflow) from investing activities
Net cash flows incurred in the ordinary course of business
Proceeds from disposal of Zhaopin, net of cash disposed
Net cash inflow from financing activities
Net increase in cash generated by the discontinued operation
30 Apr 2021
$m
30 Jun 2020
$m
88.1
109.4
(22.6)
124.1
42.8
232.4
(33.9)
-
27.8
103.3
SEEK Limited Annual Report 2021 (iii) Assets and liabilities of discontinued operation at date of sale
The carrying amounts of assets and liabilities at the date of disposal (30 April 2021) were as follows:
Cash and cash equivalents
Trade and other receivables
Plant and equipment
Intangible assets
Right-of-use assets
Other financial assets
Deferred tax assets
Total assets
Trade and other payables
Borrowings
Unearned income
Lease liabilities
Current tax liabilities
Deferred tax liabilities
Total liabilities
Net assets
Less non-controlling interest
Carrying amount of net assets sold
(iv) Details of consideration
Consideration received or receivable
Cash received
Cash receivable
Fair value of retained equity accounted investment
Total disposal consideration
Carrying amount of net assets sold (net of non-controlling interest)
Transaction costs
Gain on sale before income tax and reclassification of reserves
Recycling of foreign currency translation reserve
Recycling of net investment hedge reserve
Income tax expense
Gain on sale after income tax and reclassification of reserves
Fair value of retained equity accounted investment
Percentage retained of net assets of subsidiary
Indicative gain on retained equity accounted investment
93
30 Apr 2021
$m
313.5
36.4
9.7
682.1
21.3
230.3
30.8
1,324.1
268.9
74.7
238.4
23.8
1.9
43.3
651.0
673.1
(253.7)
419.4
Notes
30 Apr 2021
$m
20
20
497.7
198.6
521.1
1,217.4
(419.4)
(14.5)
783.5
86.3
(101.8)
(139.1)
628.9
521.1
(158.1)
363.0
There are gross funds flows which are expected to occur after 30 June 2021, relating to both SEEK’s share and the non-controlling
interests’ share of the Zhaopin disposal, through Zhaopin Ltd (SEEK’s holding entity for the Zhaopin continuing operations). These are
recognised in SEEK’s Consolidated Balance Sheet (with impacts on the Consolidated Statement of Cash Flows also) at 30 June 2021 as
outlined below:
• Cash and cash equivalents: $308.7m of cash proceeds were received shortly before year end but not yet distributed, to settle amounts
owing to both the non-controlling interests and to third parties for transaction costs;
• Trade and other receivables: $671.6m of proceeds from investors (net of taxes) is an outstanding receivable (refer to Note 11 Trade and
other receivables);
• Trade and other payables: $(719.3)m is payable to non-controlling interests and third parties for transaction costs (refer to Note 13
Trade and other payables);
• Bank borrowings: $(77.3)m of transaction proceeds will be used to settle the remaining pre-transaction debt in Zhaopin Limited (refer to
Note 7 Net debt).
As a result of the above, SEEK’s remaining share of proceeds from the net distribution outstanding is $183.7m.
Financial Report 94
2. Discontinued operations continued
Following distribution of all consideration in respect of the transaction, there is the potential that SEEK may receive further ‘special
dividends’ from Zhaopin over a period of time, in priority to other shareholders. The dividends are dependent on the satisfaction of
a number of conditions in the future. As at 30 June 2021, the likelihood of a future dividend was deemed to be sufficiently uncertain
and as a result no receivable has been recognised.
(c) SEEK Growth Fund
(i) Financial performance
On 11 August 2021, SEEK announced the creation of SEEK Growth Fund, following the completion of a strategic review that had been
announced in February 2021. SEEK’s current holdings in OES and 14 ESVs will be transferred to the Fund as seed assets in exchange
for units in the Fund. The combined results of OES and the ESVs that will be transferred to the Fund have been presented as a
discontinued operation for the year (referred to as ‘SEEK Growth Fund’), with associated assets and related liabilities of the disposal
group deemed to be held for sale at year end.
The financial performance presented is for the year ended 30 June 2020 and the year ended 30 June 2021:
Sales revenue
Other income
Operating expenses
Share of results of equity accounted investments
Profit/(loss) from discontinued operation before income tax
Income tax expense
Loss from discontinued operation after income tax
Non-controlling interests
Loss from discontinued operation, attributable to owners of SEEK Limited
Exchange differences on translation of foreign controlled entities
Exchange differences on translation of foreign equity accounted investments
Share of reserve movements of equity accounted investments
Loss on net investment hedges
Gain/(loss) on fair value hedges
Gain/(loss) on cost of hedging
Changes in fair value of equity instruments
Income tax recognised on equity instruments held at fair value
Foreign currency translation reserve recycled on disposal of equity accounted investment
Net investment hedge reserve recycled on disposal of equity accounted investment
Other comprehensive income from discontinued operation, attributable to owners of SEEK Limited
Earnings per share from profit from discontinued operations attributable to the owners of SEEK
Limited
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
30 Jun 2021
$m
30 Jun 2020
$m
253.7
66.4
(234.2)
(8.7)
77.2
(83.4)
(6.2)
(3.9)
(10.1)
(0.2)
(2.0)
(4.5)
0.8
2.5
1.2
90.0
(32.7)
3.6
(2.4)
56.3
(2.9)
(2.8)
177.2
2.6
(164.8)
(31.1)
(16.1)
(7.3)
(23.4)
(2.0)
(25.4)
0.1
(8.0)
3.0
(1.9)
(0.9)
-
22.0
-
-
-
14.3
(7.2)
(7.0)
(ii) Cash flow of discontinued operation
The cash flow information presented is for the year ended 30 June 2021 and the year ended 30 June 2020:
Net cash inflow from operating activities
Net cash outflow from investing activities
Net cash inflow/(outflow) from financing activities
Net decrease in cash generated by the held for sale group
30 Jun 2021
$m
30 Jun 2020
$m
34.3
(168.7)
3.6
(130.8)
22.5
(117.4)
(37.9)
(132.8)
SEEK Limited Annual Report 2021 95
(iii) Assets and associated liabilities of discontinued operation presented as held for sale
The carrying amounts of assets held for sale and liabilities directly associated with the assets held for sale at 30 June 2021 are as
follows:
Cash and cash equivalents
Trade and other receivables
Other financial assets(1)
Investments accounted for using the equity method
Deferred tax assets
Plant and equipment
Intangible assets
Right-of-use assets
Total assets held for sale
Trade and other payables
Borrowings
Unearned income
Lease liabilities
Deferred tax liabilities
Provisions
Total liabilities directly associated with the assets held for sale
30 Jun 2021
$m
33.6
31.1
324.4
295.5
7.0
1.9
368.8
2.2
1,064.5
34.9
5.2
4.6
2.5
1.8
20.1
69.1
(1) Other financial assets consists of equity instruments held at fair value through other comprehensive income and convertible loans.
On disposal of SEEK Growth Fund, there are accumulated balances, such as foreign currency translation, hedging and investment
revaluation reserves recorded within other comprehensive income which will be reclassified to earnings. The balance to be
reclassified will be determined on the date of disposal.
Financial Report 96
3. Revenue
Accounting Policy
Recognition criteria
Revenue is measured at the fair value of the consideration received or receivable and is shown net of sales taxes (such as GST and VAT) and
amounts collected on behalf of third parties.
SEEK recognises revenue when the contract has been identified, it is probable that the entity will collect the consideration to which it is
entitled and specific criteria have been met as described below for the material classes of revenue.
Class of revenue
Online employment marketplaces
Job advertisements
CV search/download
CV online
Education
Provision of education services to students
Business process outsourcing
HR agent services
Labour outsourcing services
Labour dispatch services
Recognition criteria
over the period in which the advertisements are placed. If it is expected that the
customer will not use all the services they are entitled to, the excess is recognised in
the same pattern as for the services that the customer does use.
over the period in which the searches/downloads occur. If it is expected that the
customer will not use all the services they are entitled to, the excess is recognised in
the same pattern as for the services that the customer does use.
over the period in which the jobseeker can access the services.
over the period in which the student studies a particular unit. For Higher Education it is
typically four months. For Vocational Education (VET), the length of time to complete
units can vary so an estimate is made.
when the service is provided to the customer. Revenue is recognised on a net basis as
the business operates as the agent under the terms and conditions of the contractual
arrangement.
when the service is provided to the customer. Revenue is recognised on a gross
basis as the business operates as the principal under the terms and conditions of the
contractual arrangement.
when the service is provided to the customer. Revenue was recognised on a gross
basis when the business operated as the principal under the terms and conditions of
contractual arrangements.
Commencing from Q3 FY2020, the standardised contractual terms and conditions
were revised for new contracts. The revisions to the contract provide a refined scope
of services with the customer now bearing any potential employment risks associated
with the contract. Upon transition to the new agreement, the business operates as an
agent and revenue is recognised on a net basis.
Other sales revenue
Campus recruitment services
Provision of training services
when the service is provided to the customer.
when the service is provided to the customer.
Allocation of transaction price to services in a bundled contract
Where a contract identifies multiple services (performance obligations) that can be used independently of one another, the consideration is
allocated between them on the basis of their relative standalone selling prices. This is usually the price at which the service is sold separately.
Contract costs
Costs incurred in the acquisition of contracts, predominantly sales commissions, are considered to be recoverable.
Applying the practical expedient in paragraph 94 of AASB 15 Revenue from Contracts with Customers, SEEK recognises the incremental
costs of obtaining contracts as an expense when incurred because the amortisation period of the assets that SEEK otherwise would have
recognised is one year or less.
Variable consideration
Certain education contracts include variable amounts of consideration dependent on the occurrence or non-occurrence of future events.
SEEK estimates the amount of revenue to be recognised based on historical and forecast information. The estimated amount is included in
the transaction price to the extent it is highly probable that a change in the revenue estimation would not result in a significant reversal of the
cumulative revenue recognised.
SEEK Limited Annual Report 2021 Online employment marketplaces
Education
Other sales revenue
Total sales revenue from continuing operations
97
2021
$m
755.9
3.1
1.3
760.3
Restated
2020(1)
$m
642.8
5.1
2.7
650.6
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
Sales revenue recognised during the financial year ended 30 June 2021 includes $130.3m (2020: $149.3m) that was included in the
opening balance of unearned income at the beginning of the corresponding period.
At 30 June 2021, SEEK is party to contracts with customers for services that have not yet been delivered (or fully delivered) at that
date. Some amounts have already been invoiced to the customer in line with the terms of the contract, and are therefore recognised
within unearned income, whereas other amounts are yet to be invoiced.
SEEK has chosen to apply the practical expedient in paragraph 121 of AASB 15 Revenue from Contracts with Customers and therefore
has not disclosed information about contracts that are expected to be completed in one year or less. Of the contracts with a duration
of more than one year, SEEK expects to recognise future revenue of $0.2m (2020: $0.8m).
SEEK has provided further customer relief in response to COVID-19 by its investment in hirer support packages including reducing
minimum contracted commitments, extending contract lives and providing credits for job advertisements no longer required from
hirers who are in financial hardship.
4. Other income and expenses
(a) Other income
Government grants (i)
Interest income
Total other income from continuing operations
2021
$m
1.7
1.3
3.0
Restated
2020(1)
$m
8.4
5.2
13.6
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
(i) Government grants
In FY2021, SEEK has recognised subsidy payments from South East Asia $1.7m (2020: $0.2m). This government support is due to
the ongoing economic impacts of COVID-19.
During the year, SEEK voluntarily repaid $9.8m of COVID-19 subsidies received from the Australian and New Zealand governments.
In accordance with AASB 120 Accounting for Government Grants and Disclosure of Government Grants, SEEK has elected to present
government grants received in FY2021 as other income.
Financial Report 98
4. Other income and expenses continued
(b) Finance costs
Interest expense
Interest expense on lease liabilities
Borrowing costs written off
Other finance charges paid/payable
Total finance costs from continuing operations
Notes
14(b)
2021
$m
43.9
3.5
-
0.7
48.1
Restated
2020(1)
$m
55.4
1.2
0.9
0.7
58.2
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
(c) Other gains/(losses)
Profit/(loss) before income tax expense includes net gains on foreign exchange movements of $10.9m (2020: $2.7m gain), which are
classified as ‘Operations and administration’ costs in the Consolidated Income Statement.
5. Earnings per share
Accounting Policy
Diluted Earnings Per Share (EPS) reflects the following adjustments:
•
•
the impact on profit if the subsidiaries’ outstanding employee options were fully exercised, resulting in SEEK’s
ownership being diluted; and
the effect of employee options and rights in SEEK Limited, calculated by comparing the number of shares that would
be issued if all options/rights were exercised with the number of shares the Company could hypothetically buy back on
market using the exercise price (the dilutive impact being the difference between the two). Employee options and rights
are only treated as dilutive when their conversion to ordinary shares would decrease EPS or increase the loss per share.
Basic earnings per share
From continuing operations
From discontinued operations(2)
Diluted earnings per share
From continuing operations
From discontinued operations(2)
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
(2) Excluding the gain on sale related to Zhaopin, both the basic and dilulted earnings per share from discontinued operations would be 5.2 cents.
2021
Cents
29.7
183.3
213.0
29.6
182.0
211.6
Restated
2020(1)
Cents
(34.3)
2.2
(32.1)
(34.2)
1.2
(33.0)
SEEK Limited Annual Report 2021 (a) Reconciliation of earnings used in calculating EPS
Profit attributable to owners of SEEK Limited (for basic EPS)
From continuing operations
From discontinued operations
Potential dilutive adjustment for subsidiary option plans
From continuing operations
From discontinued operations
Adjusted profit attributable to owners of SEEK Limited (for diluted EPS)
From continuing operations
From discontinued operations
99
Restated
2020(1)(2)
$m
(121.2)
8.1
(113.1)
0.4
(3.6)
(3.2)
(120.8)
4.5
(116.3)
2021
$m
104.9
647.3
752.2
0.2
0.3
0.5
105.1
647.6
752.7
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
(2) See Note 29 Changes in accounting policies - SEEK revised its accounting policy regarding upfront configuration costs incurred in implementing cloud computing arrangements. Comparative
information has been restated to account for the impact of the change retrospectively.
(b) Weighted average number of shares
Weighted average number of shares used as denominator in calculating basic EPS
Weighted average of potential dilutive ordinary shares:
- WSP Options
- WSP Rights
- Equity Rights and Performance Rights
Weighted average number of shares used as the denominator in calculating diluted EPS
2021
number
2020
number
353,102,683
352,082,752
166,666
1,843,404
533,882
355,646,635
-
-
-
352,082,752
In the prior year, the weighted average of potential ordinary shares excludes Wealth Sharing Plan (WSP) Options which had an
exercise price that was higher than the average share price for the period. Therefore, these Options are considered potentially
antidilutive and have been excluded from the earnings per share calculation.
Also in the prior year, the conversion of Rights would decrease the loss per share for the financial year ended 30 June 2020, and
therefore the impact of these were excluded from the diluted earnings per share calculation.
Financial Report 100
6. Income tax
Critical accounting estimates and assumptions
Uncertain tax positions
Research and development incentive
SEEK applies its current understanding of the tax law to estimate
tax liabilities where the ultimate tax position is uncertain. When the
tax position is ultimately determined or tax laws change, the actual
tax liability may differ from this current estimate.
The research and development incentive available to SEEK is
estimated in the accounts because a full assessment of the
position cannot be made by the reporting date. It is the policy of
SEEK to only bring to account the preliminary portion of expenses
that is reasonably expected to be claimable at reporting date.
Accounting Policy
Each entity in SEEK uses the tax laws in place or those that have
been substantively enacted at reporting date in the relevant
jurisdiction to calculate income tax. For deferred income tax, the
entity also considers whether these laws are expected to be in
place when the related asset is realised or the liability is settled.
Deferred tax assets and liabilities are recognised on all deductible
and taxable temporary differences respectively, except for:
•
the initial recognition of goodwill;
• any undistributed profits of the Company’s subsidiaries,
associates or joint ventures where either the distribution of
those profits would not give rise to a tax liability or the directors
consider they have the ability to control the timing of the
reversal of the temporary differences and it is probable that the
temporary difference will not reverse in the foreseeable future;
and
•
the initial recognition of an asset or liability in a transaction that
is not a business combination and at the time of the transaction
affects neither accounting profit nor taxable profit or loss.
Deferred tax assets:
• are recognised only to the extent that it is probable that there
are sufficient future taxable profits to recover these assets. This
assessment is reviewed at each reporting date;
• are offset against deferred tax liabilities in the same tax
jurisdiction, when there is a legally enforceable right to do so
and they relate to taxes levied by the same taxation authority;
and
• acquired as part of a business combination, but not satisfying
the criteria for separate recognition at that date, would be
recognised subsequently if new information about facts and
circumstances changed. If the changed circumstances existed
at the acquisition date, it would be treated as a reduction to
goodwill (as long as it does not exceed goodwill), otherwise
through profit or loss.
SEEK Limited and its wholly-owned Australian subsidiaries
formed an Australian income tax consolidated group in 2004.
These entities have tax sharing and tax funding agreements in
place. Refer to Note 21 Parent entity financial information for
further information.
Adoption of Voluntary Tax Transparency Code
On 3 May 2016, the Australian Treasurer released a Voluntary Tax
Transparency Code (the Voluntary Code). The Voluntary Code
recommends additional tax information be publicly disclosed to
help educate the public about the corporate sector’s compliance
with Australia’s tax laws. SEEK fully supports and signed up to
this Voluntary Code from FY2016. Accordingly, the income tax
disclosures in this note include the recommended additional
disclosures under Part A of the Voluntary Code.
SEEK’s latest Tax Transparency Report can be found on the Reports
& Presentations page in the Investors section of the Company’s
website at https://www.seek.com.au/about/investors/reports-
presentations.
SEEK Limited Annual Report 2021 (a) Income tax expense
Current tax
Deferred tax
(Over)/under provision in prior years (current tax)
Under/(over) provision in prior years (deferred tax)
Income tax expense in the Consolidated Income Statement
Deferred income tax expense included in income tax expense comprises:
Increase in deferred tax assets
Decrease in deferred tax liabilities
6(a)(i)
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
(i) Reconciliation of income tax expense
Profit/(loss) before income tax expense
Continuing operations
Income tax calculated @ 30% (2020: 30%)
Increase/(decrease) in income tax expense due to:
Impairment loss
Post-tax share of results of equity accounted investments
Financing, transaction and legal costs
Research and development incentive
Overseas tax rate differential
(Over)/under provision in prior years
Other
Income tax expense in the Consolidated Income Statement
(a)
(b)
(c)
(d)
(e)
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
101
Restated
2020(1)
$m
32.1
(11.6)
0.6
(0.2)
20.9
(6.6)
(5.2)
(11.8)
Restated
2020(1)
$m
(102.4)
(30.7)
57.5
2.6
1.0
(3.3)
(8.4)
0.4
1.8
20.9
2021
$m
57.1
(22.1)
(1.7)
0.5
33.8
(14.7)
(6.9)
(21.6)
2021
$m
138.3
41.5
4.2
(1.2)
0.4
(3.1)
(7.1)
(1.2)
0.3
33.8
Explanation of key items:
(a)
(b)
(c)
(d)
(e)
Non-deductible accounting impairment loss with respect to WorkAbroad (an investment held within SEEK Asia) (see Note 12 Intangible
assets, specifically section (a) Impairment).
SEEK’s share of equity accounted investments’ results is taken up net of equity accounted investments’ tax expense.
Non-deductible financing, transaction and legal costs throughout SEEK.
Research and development incentives utilised throughout SEEK.
SEEK’s international profits are taxed at local rates which vary from the Australian corporate tax rate. This includes utilisation of Malaysia’s
Principal Hub Incentive by JobStreet.com Shared Services Sdn. Bhd.
(ii) Effective tax rate
Profit/(loss) before income tax expense
Add: Impairment loss
(Subtract)/add: Post-tax share of results of equity accounted investments
(A) Adjusted profit before income tax expense(3)
(B) Income tax expense(4)
Effective tax rate (B/A)
SEEK
Australian operations(2)
2021
$m
138.3
14.1
(4.1)
148.3
33.8
22.8%
Restated
2020(1)
$m
(102.4)
203.1
8.8
109.5
20.9
19.1%
2021
$m
158.1
-
1.3
159.4
39.9
25.0%
Restated
2020(1)
$m
41.8
-
15.8
57.6
15.9
27.6%
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
(2) Excludes intra-group dividends within SEEK.
(3)
Impairment loss and post-tax share of results from SEEK’s equity accounted investments have been excluded from the effective tax rate calculation to better reflect SEEK’s taxable profit.
(4) Does not include Australian income tax expense of $48.5m relating to the Zhaopin disposal (see Note 2 Discontinued operations). If included, the SEEK Australian operations effective tax rate
would be 55.5% (calculated as $88.4m / $159.4m).
Financial Report
102
6. Income tax continued
(iii) Reconciliation of income tax expense to net current tax liabilities
Income tax expense in the Consolidated Income Statement
Add:
Deferred tax assets credited to income
Deferred tax liabilities credited to income
Current tax included in income tax expense
Add/(subtract):
Net restated opening balance carried forward
Tax payments made to tax authorities
Current tax recognised directly in equity
Australian current income tax expense relating to the Zhaopin disposal
Foreign exchange
Other
Net current tax liabilities
Net current tax liabilities comprises:
Current tax assets in the Consolidated Balance Sheet
Current tax liabilities in the Consolidated Balance Sheet
Net current tax liabilities
2021
$m
33.8
14.7
6.9
55.4
5.1
(42.7)
(2.1)
48.5
(0.2)
(0.8)
63.2
(6.3)
69.5
63.2
Restated
2020(1)
$m
20.9
6.6
5.2
32.7
14.2
(38.2)
(2.4)
-
1.6
(2.8)
5.1
(3.2)
8.3
5.1
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
(b) Amounts recognised directly in equity
Tax relating to certain taxable or deductible items are recognised in other comprehensive income or directly in equity rather than
through the Consolidated Income Statement.
Relating to items recognised in other comprehensive income:
Deferred tax credited directly to foreign currency translation reserve
Deferred tax credited directly to cash flow hedge reserve
Total tax recognised in other comprehensive income
Relating to items recognised directly in equity:
Deferred tax credited directly to retained profits
Deferred tax credited/(debited) directly to share-based payment reserve
Current tax credited directly to retained profits on issuance of new shares
Total tax recognised directly in equity
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
2021
$m
-
0.2
0.2
3.5
4.4
2.1
10.0
Restated
2020(1)
$m
0.9
1.5
2.4
0.8
(0.6)
2.4
2.6
SEEK Limited Annual Report 2021 (c) Deferred taxes
(i) Deferred tax balances
Deferred tax balances in the Consolidated Balance Sheet comprise temporary differences attributable to the following items:
As at 30 June
Share-based payments
Provisions and accruals
Employee benefits
Unrealised foreign exchange
Research and development incentive
Tax losses recognised
Property, plant and equipment(1)
Cash flow hedge
Other
Deferred tax assets
Intangible assets
Withholding tax on undistributed profits
Future interest in the SEEK Growth Fund(2)
Other
Deferred tax liabilities
Net deferred tax liabilities
2021
$m
12.6
5.7
15.7
4.6
(27.0)
15.4
13.4
5.5
2.9
48.8
36.1
15.1
107.9
(1.1)
158.0
109.2
103
2020
$m
7.0
28.5
11.0
9.5
(24.9)
11.2
9.6
5.3
5.0
62.2
86.6
35.0
-
5.9
127.5
65.3
(1) See Note 29 Changes in accounting policies - SEEK revised its accounting policy regarding upfront configuration costs incurred in implementing cloud computing arrangements. Comparative
information has been restated to account for the impact of the change retrospectively.
(2) A deferred tax liability is required to be recognised with respect to the potential future income tax liability that would arise if SEEK disposed of its interest in the SEEK Growth Fund (see Note 2
Discontinued Operations, specifically section (c) for more information).
Certain deferred tax liability balances are shown as part of deferred tax assets, as they originate in the same jurisdiction as, and can
be offset against, other deferred tax assets.
(ii) Deferred taxes credited to income
For the year ended 30 June
Share-based payments
Provisions and accruals
Employee benefits
Unrealised foreign exchange
Research and development incentive
Tax losses recognised
Property, plant and equipment
Other
Deferred tax assets
Intangible assets
Withholding tax on undistributed profits
Other
Deferred tax liabilities
Net deferred tax credited to income
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
2021
$m
(1.1)
(1.3)
(6.8)
4.9
2.2
(5.4)
(8.9)
1.7
(14.7)
(7.0)
0.2
(0.1)
(6.9)
Restated
2020(1)
$m
0.4
(1.5)
1.7
(6.0)
-
(1.7)
(2.3)
2.8
(6.6)
(4.3)
(0.4)
(0.5)
(5.2)
(21.6)
(11.8)
Financial Report
104
6. Income tax continued
(iii) Deferred tax movements
For the year ended 30 June
Opening net deferred tax liabilities(1)
Credited to income(1)
Credited to other comprehensive income and equity
Exchange differences
Transfer to discontinued operations
Closing net deferred tax liabilities
2021
$m
65.3
(21.6)
(8.1)
(2.0)
75.6
109.2
2020
$m
89.8
(17.6)
(3.0)
(3.9)
-
65.3
(1) See Note 29 Changes in accounting policies - SEEK revised its accounting policy regarding upfront configuration costs incurred in implementing cloud computing arrangements. Comparative
information has been restated to account for the impact of the change retrospectively.
Financing and risk management
7. Net debt
Accounting Policy
Borrowings are initially recognised net of transaction costs
incurred. Fees paid on the establishment of loan facilities are
recognised as transaction costs where it is probable that some
or all the facility will be drawn down. The fee is deferred until the
drawdown occurs and is amortised on a straight-line basis over the
entire life of the facility. Transaction costs include the discount on
the July 2020 issuance of Capital Markets Debt, that is amortised
to the first date on which SEEK has the right to repay the debt.
Borrowings are classified as current liabilities unless the Group has
the right to defer settlement of the liability for at least 12 months
after the reporting period.
Cash and cash equivalents include cash on hand, deposits held at
call with financial institutions, and other short-term, highly liquid
investments with original maturities of three months or less that
are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
(a) Cash and cash equivalents
Cash and short-term deposits held in certain Asian countries (including China) are subject to local exchange control regulations
which place restrictions on exporting capital from these countries other than through normal dividends. These balances at 30 June
are disclosed as ‘cash not freely converted’, representing cash that cannot be freely converted into other currencies for transfer
throughout SEEK.
Cash freely converted
Cash not freely converted
Short-term deposits
Total cash and cash equivalents
(b) Borrowings
Bank loans - unsecured
Bank loans - secured
Capital markets debt - unsecured
Less: transaction costs capitalised
Total borrowings
SEEK had access to $536.3m in undrawn facilities at 30 June 2021 (2020: $322.5m).
2021
$m
475.4
0.3
16.1
491.8
2020
$m
532.4
8.5
63.9
604.8
Current
Non-current
2021
$m
-
77.3
-
-
77.3
2020
$m
59.8
83.6
-
-
143.4
2021
$m
813.2
-
225.0
(8.3)
1,029.9
2020
$m
1,156.7
323.3
325.0
(7.4)
1,797.6
SEEK Limited Annual Report 2021
105
(c) Net debt
SEEK’s net cash/(debt) position is defined as Borrowings, offset by:
• Cash and cash equivalents - Note 7(a)
• Short-term investments - Note 9 (b)
• Funds on deposit for entrusted loan facilities - Note 7(e)
Year ended 30 June 2021
Facility limit
Borrowings
$m
Note 7(b)
Cash (i)
$m
Note 7(a)
Short-term
investments
$m
Note 9(b)
Funds on
deposit
$m
Note 7(e)
Net cash/
(debt)
$m
SEEK Limited A$ bank debt
SEEK Limited US$ bank debt
SEEK Limited A$ Subordinated Floating Rate Notes
SEEK Limited Borrower Group(1)
A$612.5m
US$552.5m
A$225.0m
(345.0)
(468.2)
(225.0)
(1,038.2)
174.8
Zhaopin Limited (ii)
US$58.0m
(77.3)
317.0
SEEK
Less: transaction costs capitalised
Per Consolidated Balance Sheet
A$1,651.8m
491.8
(1,115.5)
8.3
(1,107.2)
Consolidated net interest cover: EBITDA(2) / Net interest
Consolidated net leverage ratio: Net debt / EBITDA(2)
0.1
-
0.1
-
-
-
(863.3)
239.7
(623.6)
7.2
1.9
(1) Borrower Group EBITDA for the year ended 30 June 2021 inclusive of cash dividends from excluded entities of $137.7m (2020: $41.3m) was $458.6m (2020: $310.3m).
(2) EBITDA is defined and reconciled to consolidated profit before income tax expense for total continuing operations in Note 1 Segment information.
(i) Cash
As at 30 June 2020, SEEK reported cash held in Jobadder, OES and Sidekicker as ‘Other’ cash. As at 30 June 2021, cash balances
held in JobAdder have been included in the cash balance held by the SEEK Limited Borrower Group for the first time, following
an increase in ownership. Cash balances held in OES and Sidekicker have been transferred to assets held for sale, and therefore
continue to be excluded from the cash balances held by the SEEK Limited Borrower Group.
(ii) Zhaopin Limited
Bank borrowings: $77.3m of transaction proceeds will be used to settle the remaining pre-transaction debt in Zhaopin Limited (refer
to Note 2 Discontinued operations). Cash and cash equivalents: $308.7m of cash proceeds were received shortly before year end but
not yet distributed, to settle amounts owing to both the non-controlling interests and to third parties for transaction costs (refer to
Note 2 Discontinued operations).
Year ended 30 June 2020
SEEK Limited A$ bank debt
SEEK Limited US$ bank debt
SEEK Limited A$ Floating Rate Notes
SEEK Limited A$ Subordinated Floating Rate Notes
SEEK Limited Borrower Group
Zhaopin Limited
Zhaopin Limited
Other
SEEK
Less: transaction costs capitalised
Per Consolidated Balance Sheet
Facility limit
A$612.5m
US$552.5m
A$175.0m
A$150.0m
RMB309.9m
US$322.5m
A$2,270.9m
Borrowings
$m
Note 7(b)
Cash
$m
Note 7(a)
Short-term
investments
$m
Note 9(b)
Funds on
deposit
$m
Note 7(e)
Net cash/
(debt)
$m
(467.5)
(689.2)
(175.0)
(150.0)
(1,481.7)
(59.8)
(406.9)
(466.7)
-
(1,948.4)
7.4
(1,941.0)
337.7
0.1
-
(1,143.9)
245.8
21.3
604.8
-
0.1
0.2
442.8
-
221.9
21.4
442.8
(900.6)
Consolidated net interest cover: EBITDA / Net interest
Consolidated net leverage ratio: Net debt / EBITDA
7.0
2.2
Financial Report 106
7. Net debt continued
(d) Financing and credit facilities
The overall funding structure of SEEK includes bank loans and capital markets debt funding as follows:
Facility Type
Maturity
Drawn
Undrawn
2021
$m
2020
$m
2021
$m
2020
$m
Total
2021
$m
2020
$m
SEEK Limited - Non-current
Bank facilities - unsecured (i)
Tranche A (Revolving)
Tranche B (Revolving)
Tranche C (Revolving)
Tranche D (Term Loan)
Tranche E (Term Loan)
Capital Markets Debt (ii)
A$ Floating Rate Notes
A$ Subordinated Floating Rate Notes
Zhaopin Limited - Current
Bank facilities - secured (iii)
Loan Facility
Revolving Credit Facility
Nov 2022
Nov 2023
Nov 2024
Nov 2023
Nov 2024
A$300.5m
A$44.5m
US$51.0m
US$100.0m
US$200.0m
A$362.5m
A$105.0m
US$175.3m
US$100.0m
US$200.0m
A$62.0m
A$205.5m
US$201.5m
-
-
-
A$145.0m
US$77.2m
-
-
A$362.5m
A$250.0m
US$252.5m
US$100.0m
US$200.0m
A$362.5m
A$250.0m
US$252.5m
US$100.0m
US$200.0m
Apr 2022
Jun 2026
-
A$225.0m
A$175.0m
A$150.0m
Dec 2021
Dec 2021
US$55.0m
US$3.0m
US$70.0m
-
-
-
-
-
-
-
-
A$225.0m
A$175.0m
A$150.0m
-
US$40.0m
US55.0m
US$3.0m
US$70.0m
US$40.0m
(i) Bank facilities - unsecured
As at 30 June 2021 A$813.2m principal had been drawn down against the facility, comprising A$345.0m and US$351.0m (30 June
2020: A$1,156.7m, comprising A$467.5m and US$475.3m). The SEEK Limited Borrower Group includes SEEK Limited and all
subsidiaries in which its ownership is at least 90%.
(ii) Capital Markets Debt
A Guaranteed Euro Medium Term Note (EMTN) Programme was originally established in March 2017 with a programme limit of
EUR 1 billion. Under the programme the Group may from time to time issue notes denominated in any currency, with funds raised
under the programme to be used for general corporate purposes. In December 2019, the Group issued A$150.0m of A$ Subordinated
Floating Rate Notes with a maturity date of June 2026 and a first optional redemption date of June 2023. The Group initiated
a redemption of the April 2022 A$175.0m Floating Rate Notes in June 2020, that completed in July 2020 and was funded from
available cash balances. The Group also completed an A$75.0m “tap” issuance of the June 2026 A$ Subordinated Floating Rate
Notes in July 2020, increasing the total outstanding to A$225.0m. These notes are unsecured and subordinate to SEEK’s existing
unsecured bank debt.
(iii) Bank facilities - secured
The facilities held in Zhaopin Limited are supported by funds on deposit that are no longer on the Consolidated Balance Sheet due
to the disposal of Zhaopin, and are non-recourse to the SEEK Limited Borrower Group. Zhaopin Limited has undrawn facilities of
US$37.0m available but these are not expected to be drawn upon.
(e) Funds on deposit for entrusted loan facilities
The following table shows the Zhaopin funds on deposit to support entrusted loan facilities:
Opening funds on deposit as at 1 July 2020
Cash movement on deposits to support entrused loan facilities
Movement in interest received/receivable
Movement in foreign exchange
Disposal of Zhaopin (i)
Closing funds on deposit as at 30 June 2021
(i) Disposal of Zhaopin
Other financial assets
- Note 9(b)
Other receivables
- Note 11
Current Non-current
$m
$m
Current Non-current
$m
$m
43.3
(39.8)
(4.1)
0.6
-
-
237.2
(233.1) -
(0.9)
(3.2)
-
-
47.4
(46.4)
(0.4)
(0.6)
-
-
114.9
2.9
(0.2)
(2.5)
(115.1)
-
Total
$m
442.8
(316.4)
(5.6)
(5.7)
(115.1)
-
As at 30 June 2021 there were no funds on deposit for entrusted facilities following the deconsolidation of Zhaopin during the period.
SEEK Limited Annual Report 2021 107
8. Notes to the cash flow statement
(a) Reconciliation of profit for the year to net cash inflow from operating activities
The table below shows the reconciliation of profit after tax to operating cash flow. Operating cash flow is, broadly speaking, the net
cash amount of receipts from our customers and payments to our suppliers. The difference between profit and operating cash flow
is generally due to:
•
items included in profit which have no cash impact (e.g. depreciation, amortisation, share of results from equity accounted
investments and impairment);
•
items included in profit which are not related to operations (e.g. fair value changes in financial assets);
• payments/receipts being made in the current financial year in relation to previous or future financial years (e.g. opening balances
on debtor/creditor accounts); and
•
foreign exchange movements which cause operating assets and liabilities balances to fluctuate.
Profit/(loss) for the year(1)
Non-cash items
Impairment loss
Depreciation and amortisation(1)
Share of results of equity accounted investments
Share-based payments expense
Aggregated tax amounts arising in the reporting period recognised directly in equity
Net (gain)/loss on derivative instruments at fair value through profit and loss
Other
Non-operating items
Gain on sale of discontinued operation
Fair value gain on financial asset
Write-off of borrowing costs
Change in operating assets and liabilities:
(Increase)/decrease in trade and other receivables
(Increase)/decrease in current tax assets
(Increase)/decrease in deferred tax assets(1)
Increase/(decrease) in trade and other payables
Increase/(decrease) in unearned income
Increase/(decrease) in current tax liabilities
Increase/(decrease) in provisions
Increase/(decrease) in deferred tax liabilities
Exchange gains on translation of foreign operations
Net cash inflow from operating activities
2021
$m
773.9
46.9
133.3
4.6
21.1
(6.5)
(31.7)
11.9
(628.9)
(65.3)
-
(90.8)
(3.1)
(24.4)
115.6
22.1
46.2
6.5
(6.7)
21.8
346.5
2020
$m
(92.2)
203.1
131.7
39.9
17.2
(1.8)
14.8
5.5
-
-
1.0
44.0
0.4
(13.4)
3.6
(50.2)
(5.8)
2.9
(11.1)
10.4
300.0
(1) See Note 29 Changes in accounting policies - SEEK revised its accounting policy regarding upfront configuration costs incurred in implementing cloud computing arrangements. Comparative
information has been restated to account for the impact of the change retrospectively.
Financial Report 108
8. Notes to the cash flow statement continued
(b) Changes in assets/liabilities arising from financing activities
This disclosure, which is a requirement of AASB 107 Statement of Cash Flows, allows users to understand changes in the balance of
certain liabilities such as borrowings. It also includes certain assets where cash flows have been, or will be, included in cash flows
from financing activities. The disclosure identifies changes from cash flows as well as non-cash changes such as acquisitions and
exchange differences.
Trade
and other
receivables
Funds on
deposit for
entrusted
loan
facilities
$m
151.5
15.4
(2.9)
-
-
-
-
(1.7)
162.3
Movement
type
Cash
Non-cash
Non-cash
Non-cash
Non-cash
Non-cash
Non-cash
Other financial assets
Borrowings
Other financial liabilities
Funds on
deposit for
entrusted
loan
facilities
$m
Short-term
investments
$m
Derivative
assets
$m
Total
Borrowings
$m
Put option
$m
Derivative
liabilities
$m
0.1
0.1
-
-
-
-
-
-
0.2
314.7
(33.6)
2.7
-
-
-
-
(3.3)
280.5
8.3
-
-
-
3.6
(6.2)
-
-
5.7
1,599.7
19.2
33.5
322.0
-
-
10.6
4.5
1.0
3.2
1,941.0
-
-
-
-
-
-
-
19.2
(15.0)
-
-
26.6
4.1
-
-
49.2
Cash
-
-
-
-
(401.8)
(14.2)
15.0
Cash
Non-cash
Non-cash
Non-cash
Non-cash
Non-cash
Non-cash
Non-cash
Non-cash
(43.5)
(0.6)
-
-
-
-
(115.1)
-
(3.1)
-
-
-
-
-
-
-
-
(0.1)
-
0.1
(272.9)
(5.0)
-
-
-
-
-
-
(2.6)
-
-
-
-
(1.5)
-
-
-
-
-
4.2
(258.9)
-
5.7
(34.4)
(31.3)
-
(74.7)
-
(38.4)
1,107.2
-
-
-
-
-
(2.8)
-
-
-
2.2
-
-
-
(10.3)
(0.5)
-
-
-
-
53.4
2020
Opening balance
Net cash flows from financing
activities
Interest received/receivable
Amortisation
Fair value through OCI
Fair value through profit and loss
Write-off borrowing costs
Foreign exchange movements
Closing balance
2021
Net cash flows from financing
activities - continuing operations
Net cash flows from financing
activities - discontinued operations
Interest received/receivable
Amortisation
Fair value through OCI
Fair value through profit and loss
Put option liability
Disposal of interest in subsidiary
Transfer to assets held for sale
Foreign exchange movements
Closing balance
SEEK Limited Annual Report 2021 109
9. Financial instruments and fair value measurement
Accounting Policy
Derivatives are initially recognised at fair value on the date the contract is entered into and are subsequently remeasured to their fair value at
each reporting period.
(i) Derivatives that qualify for hedge accounting
Hedge effectiveness is determined at the establishment of the hedge relationship. This relates to the extent that the hedging instrument (derivative)
offsets the changes in value of the hedged item (asset, liability or future transaction that is being hedged). It is measured through periodic
prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and the hedging instrument.
SEEK uses the hypothetical derivative method and the critical terms match method to assess effectiveness of its hedge arrangements.
SEEK designates certain derivatives as either:
Cash flow hedge
Risk that is being hedged
The risk of uncertain cash flows attributable to a particular risk associated with an asset, liability or
future transaction.
Treatment of gains or
losses
The effective portion of changes in the fair value is recognised in other comprehensive income and
accumulated in reserves in equity.
Treatment if the hedge
relationship finishes
The gain or loss relating to the ineffective portion is recognised immediately in profit or loss within
'operations and administration expenses’.
The hedge relationship will end when the hedging instrument expires or is sold or terminated, or when it no
longer meets the criteria for hedge accounting, or when the hedged risk occurs.
Gains and losses accumulated in equity remain in equity until the hedged item affects profit or loss. At this
time, the accumulated gain or loss is reclassified to profit or loss within:
•
•
‘finance costs’ for interest rate derivatives hedging variable rate borrowings; and
‘operations and administration expenses’ for other derivative instruments, where the underlying exposure
is not related to funding the Company.
When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in
equity is immediately reclassified to profit or loss.
The risk of changes in the fair value of a financial asset, liability or unrecognised firm commitment.
Where the hedged item is an equity instrument for which an election has been made to present changes in
fair value in other comprehensive income, the effective portion of changes in the fair value of the hedging
instrument is recognised in other comprehensive income and accumulated in reserves in equity, otherwise it
is recognised in profit or loss.
The gain or loss relating to the ineffective portion is recognised immediately in profit or loss within ‘operations
and administration expenses’. Where the hedged item is an equity instrument for which an election has been
made to present changes in fair value in other comprehensive income, the ineffective portion shall remain in
other comprehensive income.
The hedge relationship will end when the hedging instrument expires or is sold or terminated, or when it no
longer meets the criteria for hedge accounting, or when the hedged item is disposed of.
Gains and losses accumulated in equity remain in equity until the hedged item affects profit or loss. If the
hedged item is an equity instrument for which an election has been made to present changes in fair value in
other comprehensive income, those amounts shall remain in other comprehensive income.
The risk of changes in foreign currency when net assets of a foreign operation are translated from their
functional currency to Australian dollars.
Fair value hedge
Risk that is being hedged
Treatment of gains or
losses
Treatment if the hedge
relationship finishes
Net investment hedge
Risk that is being hedged
Treatment of gains or
losses
The effective portion of changes in the fair value is recognised in other comprehensive income and
accumulated in reserves in equity.
The gain or loss relating to the ineffective portion is recognised immediately in profit or loss within ‘operations
and administration expenses’.
Treatment if the hedge
relationship finishes
The hedge relationship will end when the hedging instrument expires or is sold or terminated, or when it no
longer meets the criteria for hedge accounting, or when the hedged item is disposed of.
Gains and losses accumulated in equity remain in equity until the foreign operation ceases to be
consolidated. At this time, the accumulated gain or loss is recognised in profit or loss as part of the gain or
loss on disposal.
(ii) Derivatives that do not qualify for hedge accounting
Derivatives are only used for economic hedging purposes and not as speculative investments. However, certain derivative instruments do
not qualify for hedge accounting or are not designated for hedge accounting. Changes in the fair value of any derivative instrument that
does not qualify or is not designated for hedge accounting are recognised immediately in profit or loss and are included in ‘operations and
administration expenses’ or ‘finance costs’.
Financial Report 110
9. Financial instruments and fair value measurement continued
This note provides information about SEEK's financial instruments, including:
(a) Valuation methodology of financial instruments;
(b) Composition of financial instruments held by SEEK; and
(c) Derivative financial instruments.
(a) Valuation methodology of financial instruments
For financial instruments measured and carried at fair value, SEEK uses the following fair value measurement hierarchy:
Level 1: fair value is calculated using quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly (as prices) or indirectly (derived from prices); and
Level 3: fair value is estimated using inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
(b) Composition of SEEK's financial instruments
Financial instruments
Cash and cash equivalents
Trade and other receivables
Funds on deposit for entrusted loan facilities
Other financial assets
Trade and other payables
Lease liabilities
Borrowings
Other financial liabilities
Valuation method
Notes
Amortised cost
Amortised cost
Amortised cost
Various
Amortised cost
Amortised cost
Amortised cost
Various
7(a)
11
7(e)
9(b)
13
14(a)(ii)
7(b)
9(b)
Current
Non-current
2021
$m
491.8
750.0
-
4.3
(831.1)
(17.1)
(77.3)
(60.6)
2020
$m
604.8
46.6
47.4
57.6
(307.3)
(28.0)
(143.4)
(70.0)
2021
$m
-
-
-
11.2
-
(188.1)
(1,029.9)
(0.9)
2020
$m
-
-
114.9
436.4
-
(36.0)
(1,797.6)
(3.1)
Further information regarding SEEK's other financial assets and liabilities is provided below.
Current
Non-current
Hierarchy
level
Notes
2021
$m
Other financial assets
Financial assets held at amortised cost
Funds on deposit for entrusted loan facilities
Short-term investments
Security deposits
Financial assets at fair value through profit and loss
(FVPL)
Investment in equity instruments
Convertible loans
Derivative financial instruments
Financial assets at fair value through other
comprehensive income (FVOCI)
Investment in equity instruments
Investment in equity instruments
Derivative financial instruments
Total other financial assets
Other financial liabilities
Financial liabilities at fair value through profit and
loss (FVPL)
Derivative financial instruments
Put option
Contingent consideration
Financial liabilities at fair value through other
comprehensive income (FVOCI)
Derivative financial instruments
Total other financial liabilities
n/a
n/a
n/a
Level 3
Level 3
Level 2
Level 2
Level 3
Level 2
Hierarchy
level
Level 2
Level 3
Level 3
9(b)(i)
9(b)(ii)
9(c)
9(b)(i)
9(b)(i)
9(c)
Notes
9(c)
9(b)(iii)
Level 2
9(c)
2020
$m
43.3
0.2
-
-
8.4
1.3
-
-
4.4
57.6
2021
$m
-
-
0.9
-
-
-
-
10.3
-
11.2
2020
$m
237.2
-
1.4
113.6
1.2
-
82.0
1.0
-
436.4
-
0.1
-
-
-
1.3
-
-
2.9
4.3
Current
Non-current
2021
$m
2020
$m
2021
$m
2020
$m
(9.0)
(2.2)
(5.0)
(44.4)
(60.6)
(10.0)
(19.2)
(1.6)
(39.2)
(70.0)
-
-
(0.9)
-
(0.9)
-
-
(3.1)
-
(3.1)
SEEK Limited Annual Report 2021 111
Other financial assets and liabilities held by SEEK as at 30 June 2021 are carried at an amount which closely approximates their fair
value.
SEEK's exposure to various risks associated with financial instruments is discussed in Note 10 Financial risk management.
(i) Investment in equity instruments
As part of its overall investment strategy, SEEK holds various investments in equity instruments that do not meet the requirements of
either consolidation or equity accounting, and which are not held for the purposes of trading. They are therefore held at fair value.
The following table shows the summary of changes in the fair value of SEEK's investment in equity instruments:
Opening fair value 1 July 2019
Additions
Change in equity instruments held at fair value
Foreign exchange movements
Closing fair value as at 30 June 2020
Additions
Transfer from equity accounted investments
Disposal of interest in Zhaopin
Change in equity instruments held at fair value
Foreign exchange movements
Transfer to assets held for sale
Closing fair value as at 30 June 2021
(ii) Convertible loans
FVPL
$m
102.2
12.6
-
(1.2)
113.6
2.8
-
(113.9)
-
(2.5)
-
-
FVOCI
$m
56.5
3.3
23.2
-
83.0
4.0
139.8
-
89.2
-
(305.7)
10.3
Total
$m
158.7
15.9
23.2
(1.2)
196.6
6.8
139.8
(113.9)
89.2
(2.5)
(305.7)
10.3
In the current year, all convertible loans have either been converted or transferred to liabilities directly associated with the assets held
for sale, resulting in a $nil balance. In prior years, SEEK has extended convertible loans to certain ESVs. These loans were interest-
bearing and subject to various terms and conditions.
(iii) Put option
A put option has been recognised relating to the remaining shares held by non-controlling interests in JobAdder. Movements in the
estimated exercise value of this put option are recognised in the Consolidated Income Statement.
During the period, a portion of non-controlling interests exercised the put option and SEEK acquired a further 36.2% interest in
JobAdder for cash consideration of $14.2m.
(c) Derivative financial instruments
SEEK is party to derivative financial instruments (forward foreign exchange contracts, options and swaps) in the normal
course of business in order to hedge exposure to fluctuations in interest and foreign exchange rates in accordance with SEEK's
treasury policies.
Derivatives are only used for economic hedging purposes and not as speculative instruments. SEEK has the following
derivative instruments:
Current assets
Current liabilities
Derivative instrument
Derivatives designated as cash flow hedges
Forward foreign exchange contracts and options
Interest rate options and swaptions contracts
Interest rate swap contracts
Derivatives designated as net investment hedges
Forward foreign exchange contracts
Foreign exchange options
Cross currency interest rate swap contracts
Derivatives designated as fair value hedges
Cross currency interest rate swap contracts
Derivatives not designated as hedges
Forward foreign exchange contracts and options
Cross currency interest rate swap contracts
Interest rate options and swap contracts
Total derivative financial instruments
2021
$m
2020
$m
-
-
-
-
-
-
2.9
0.2
1.1
-
4.2
0.2
-
-
0.9
-
3.3
-
1.3
-
-
5.7
2021
$m
-
(5.7)
(12.7)
-
(16.7)
(9.3)
2020
$m
-
(2.5)
(0.4)
-
(23.3)
(13.0)
-
-
(9.0)
-
-
(53.4)
(6.8)
(1.7)
(1.5)
(49.2)
Financial Report 112
10. Financial risk management
SEEK maintains a capital structure to ensure sufficient liquidity and support to fund business operations, maintain shareholder and
market confidence, provide strong stakeholder returns, and position the business for future growth.
SEEK’s ongoing capital management approach is characterised by:
• Rolling cash flow forecast analyses and detailed budgeting processes which, combined with continual development of
relationships with banks and investors, is directed at providing a sound financial positioning for SEEK’s operations and financial
management activities;
• A capital structure that provides adequate funding for SEEK’s potential acquisition and investment strategies in order to build
future growth in shareholder value; and
•
Investment criteria that consider earnings accretion and risk adjusted rate of return requirements based on overall strategic goals.
SEEK’s financial risk management is carried out by a central treasury department (SEEK Treasury) under policies approved by
the Board of Directors. SEEK Treasury identifies, evaluates and hedges financial risks in close cooperation with SEEK’s operating
units. The Board provides written principles for overall risk management, as well as policies covering specific areas, such as use of
derivative financial instruments and investment of excess liquidity.
Exposure to risks
SEEK’s capital structure, global operations and the nature of the business activities result in exposure to operational risks and a
number of financial risks including:
Risk
Exposure arising from
Management
Foreign exchange risk - the risk that fluctuations in
foreign exchange rates may impact SEEK results
Interest rate risk – the risk that fluctuations in interest
rates may impact SEEK results
Liquidity risk – the risk that SEEK might encounter
difficulty in settling its debts or otherwise meeting its
obligations related to financial liabilities
Translation risk - the risk of
unfavourable foreign exchange
movements in the translation of
the profits, assets and liabilities of
overseas subsidiaries operating in
functional currencies other than
Australian dollars
Transaction risk - the risk that
unfavourable foreign exchange
movements may have an adverse
impact on future cash flows
which are committed to in foreign
currencies
Long-term borrowings at variable
interest rates
Creating a natural hedge by matching debt with
underlying local currency earnings and investments
Where a natural hedge is not possible, creating
synthetic debt (via cross currency interest rate swaps)
to hedge some underlying earnings and balance
sheet exposures
When international cash inflows and outflows are
certain, use forward foreign exchange contracts or
options to hedge inflows/outflows
Where appropriate, adopt interest rate swaps or
options to fix some interest rates
Borrowings and other liabilities
Availability of cash, and committed and uncommitted
borrowing facilities
Credit risk – the risk that default by a counterparty
(debtor or creditor) could impact SEEK’s financial
position and results
Cash and cash equivalents, and
derivative financial instruments
Use of financial institutions with an investment
grade rating
Trade receivables
Credit limits and credit checks
A summary of SEEK's derivative financial instruments and its application of hedge accounting is outlined in Note 9 Financial
instruments and fair value measurement.
SEEK Limited Annual Report 2021 113
SEEK also manages the foreign currency exposure on USD debt
which is not designated as a net investment hedge and other
foreign currency exposures that are revalued to profit and loss,
by entering foreign exchange forward and option contracts.
At 30 June 2021, there is a net liability on these derivatives of
$8.8m (2020: net liability $5.5m).
Material exposures and sensitivities
As noted above, SEEK has significant offshore operations. In
addition to the revenue and earnings for these operations as set
out in Note 1 Segment information and other related disclosures,
there are also significant assets which are subject to foreign
exchange fluctuations, as set out in Note 12 Intangible assets,
Note 19 Interests in controlled entities and Note 20 Interest
in equity accounted investments. The method for translating
SEEK’s offshore results, assets and liabilities is described in Note
28 Other significant accounting policies.
A sensitivity analysis has been performed over possible
movements in relevant foreign currencies against the underlying
functional currencies in the short-term subsequent to 30 June
2021. Utilising a range of +5% to -5%, the analysis showed that
the impact to the profit and loss would be less than $1.0m for
each of the common currency pairings.
At 30 June 2021, SEEK’s largest exposure to foreign currency
exchange risk is in regards to the USD denominated borrowings.
This is the largest exposure that SEEK has in relation to a
foreign currency denominated asset or liability as it is repayable
in USD but held by an Australian entity which operates in
Australian dollars.
At 30 June 2021, the amount of USD borrowings drawn down
on SEEK Limited’s USD bank debt was US$351.0m (2020:
US$475.3m). US$265.0m of this loan has been designated as
a net investment hedge with a further US$35.0m designated
as a fair value hedge for accounting purposes and therefore
movements are taken directly to equity, rather than impacting
profit or loss. The remaining US$51.0m of this loan has been
economically hedged by cross currency interest rate swap
contracts, forward foreign exchange contracts and USD
denominated assets.
(a) Foreign exchange risk
SEEK operates internationally and is therefore exposed to foreign
exchange risk arising from various currencies, predominantly
the US Dollar (USD), Chinese Renminbi (RMB), Hong Kong
Dollar (HKD), Malaysian Ringgit (MYR), Philippine Peso (PHP),
Singapore Dollar (SGD), Brazilian Real (BRL) and Mexican Peso
(MXN).
As a result of this international presence, SEEK is exposed to
both translation and transaction risk.
Risk management policy
SEEK’s foreign exchange risk management policy is to hedge
up to 100% of anticipated significant cash flows in foreign
currencies (for example for one-off significant transactions)
for up to a six month period using external forward currency
contracts. The derivative instruments used for hedging these
types of exposures are forward foreign exchange contracts
and purchased net forward exchange option contracts. The
forward foreign exchange contracts taken up by SEEK are
regularly reassessed.
If funding of equity in foreign subsidiaries is material, SEEK
Treasury will attempt to match the asset with borrowings in the
currency of that subsidiary to form a natural hedge to protect the
balance sheet. Where a natural hedge is not possible, synthetic
debt may be created using a cross currency interest rate swap.
Whilst SEEK’s reported profits are subject to foreign exchange
translation risk, the current policy is not to specifically hedge
reported profits on the basis that:
•
there can be significant cost associated with hedging some
currencies, particularly in ‘emerging markets’ where SEEK has
significant exposures;
• profits do not always align with cash flow, and to the extent
that there is a mismatch between profits and cash flow,
hedging can create mismatches; and
•
the level of balance sheet (translation) and cash flow
(transaction) hedging undertaken already provides a degree of
protection against profit and loss translation risk.
Material arrangements in place at reporting date
SEEK has foreign exchange options in hedging relationships
against the USD denominated portion of SEEK’s syndicated
facility intended to limit the cost of making the repayments.
SEEK has foreign exchange options, forwards and cross
currency swaps in hedging relationships to hedge SEEK's RMB,
SGD, EUR and GBP net investments. At 30 June 2021, there is a
net liability on the foreign exchange options of $16.7m (2020: net
liability of $23.3m). Cross currency interest rate swap contracts
have a net liability of $6.4m (2020: net liability of $9.7m).
Financial Report 114
10. Financial risk management continued
(b) Interest rate risk
SEEK’s main interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose SEEK to cash flow
interest rate risk.
Risk management policy
To protect part of its borrowings from exposure to fluctuations in interest rates, SEEK's Treasury policy prescribes the use of interest
rate swaps and options.
Material arrangements in place at reporting date
SEEK has entered into interest rate swaps and options under which it receives or pays interest at variable and fixed rates. As shown
in the table below, swaps and options in place at 30 June 2021 cover approximately 14% (2020: 26%) of the variable loan principal
outstanding on the SEEK's loan facility.
2021
2020
AUD denominated borrowings
Bank loans - principal
Subordinated note
Senior Euro Medium Term Note
Less amounts covered by interest rate swaps
USD denominated borrowings
Bank loan - principal
Entrusted loan facilities
Less amounts covered by interest rate swaps or options
RMB denominated borrowings
Loan facility(1)
Less amounts covered by interest rate swaps
Total SEEK borrowings
Total borrowings
Less amounts covered by interest rate swaps
Weighted
average
interest rate
%
2.4%
4.3%
-
1.5%
2.7%
1.7%
2.5%
3.8%
n/a
2.7%
1.7%
Weighted
average
interest rate
%
2.5%
4.5%
3.1%
1.9%
3.6%
3.2%
2.6%
3.9%
n/a
3.2%
2.0%
$m
345.0
225.0
-
(126.3)
443.7
468.2
77.3
(33.3)
512.2
-
-
-
1,115.5
(159.6)
955.9
$m
467.5
150.0
175.0
(435.0)
357.5
689.2
406.9
(72.5)
1,023.6
59.8
-
59.8
1,948.4
(507.5)
1,440.9
(1) As at 30 June 2021 there were no RMB facilities following the deconsolidation of Zhaopin during the period.
As at 30 June 2021, SEEK has a net liability on its interest rate swaps, swaptions and options of $18.4m (2020: net liability $4.4m).
Material exposures and sensitivities
The weighted average interest rate for the year ended 30 June 2021 was 2.7% (2020: 3.2%). If the weighted average interest rate had
been 10% higher or 10% lower, interest expense would increase/decrease by $4.4m.
While SEEK’s bank accounts are predominantly interest bearing accounts, funds that are in excess of short-term liquidity
requirements are generally invested in short-term deposits. Where excess funds are significantly in excess of short-term
requirements, they are then applied to reduce the syndicated loan facility balance. Given this, at 30 June 2021, there is not a material
interest rate risk relating to SEEK’s cash balances.
SEEK Limited Annual Report 2021 115
(c) Liquidity risk
Prudent liquidity risk management requires maintaining sufficient cash and ensuring that all term deposits can be converted to funds at call.
Risk management policy
Due to the dynamic nature of the underlying businesses, SEEK Treasury aims to maintain flexibility in funding by keeping the cash
reserves of the business accessible. SEEK maintains borrowing facilities to enable SEEK to borrow funds when necessary. For details
of these facilities, refer to Note 7 Net debt.
Material arrangements in place at reporting date
At 30 June 2021, SEEK had access to borrowing facilities totalling $77.3m expiring within one year and $1,574.5m expiring beyond
one year (2020: $147.2m expiring within one year and $2,123.7m expiring beyond one year). The table below outlines the level of
drawn and undrawn debt at the balance sheet date.
Floating rate
Expiring within one year
Expiring beyond one year
Drawn
2021
$m
77.3
1,038.2
1,115.5
2020
$m
143.4
1,805.0
1,948.4
Undrawn
2021
$m
-
536.3
536.3
2020
$m
3.8
318.7
322.5
Total
2021
$m
77.3
1,574.5
1,651.8
2020
$m
147.2
2,123.7
2,270.9
Subject to continuing to meet certain financial covenants, certain revolving bank loan facilities may be drawn down at any time.
SEEK is not subject to externally imposed capital requirements, other than the contractual banking covenants and obligations. SEEK
obtained certain temporary amendments to its key covenant limits in its senior syndicated debt facility that applied until April 2021.
SEEK has complied with all bank lending requirements during the year and at the date of this report.
Material exposures
The below graph outlines the contractual undiscounted maturities of SEEK's borrowing portfolio as at 30 June 2021 and prior to the
redemption and new issue activities set out in Note 7 Net debt:
m
$
700
600
500
400
300
200
100
0
Less than 1 year
1–2 years
2–3 years
3–4 years
>4 years
SEEK Limited - bank debt
SEEK Limited - EMTN
Zhaopin
SEEK Limited - undrawn
Financial Report 116
10. Financial risk management continued
Maturities of financial liabilities
The table below analyses SEEK's financial liabilities into relevant maturity groupings based on their contractual undiscounted
maturities for:
(a) all non-derivative financial liabilities, and
(b) net and gross settled derivative financial instruments.
Contractual maturities of financial
liabilities
Less than 6
months
$m
Between
6 and 12
months
$m
Between 1
and 2 years
$m
Between 2
and 5 years Over 5 years
$m
$m
Total
contractual
(inflows)/
outflows
$m
Carrying
amount
(assets)/
liabilities
$m
-
8.8
-
-
9.9
18.7
2.5
0.4
-
-
(166.8)
172.9
9.0
Between
6 and 12
months
$m
-
13.3
8.7
-
21.8
43.8
At 30 June 2021
Non-derivatives
Trade and other payables
Lease liabilities
Put option
Contingent consideration
Borrowings
Total non-derivatives
Derivatives
Net settled
Interest rate swaps
Gross settled
Interest rate derivatives
Forward foreign exchange
contracts/options
- (inflow)
- outflow
Cross currency interest rate swaps
- (inflow)
- outflow
Total derivatives
831.1
8.5
2.2
5.0
87.4
934.2
2.5
0.4
(142.5)
145.6
(1.0)
1.7
6.7
Contractual maturities of financial
liabilities
Less than 6
months
$m
At 30 June 2020
Non-derivatives
Trade and other payables
Lease liabilities
Put option
Contingent consideration
Borrowings
Total non-derivatives
Derivatives
Net settled
Interest rate swaps
Gross settled
Forward foreign exchange
contracts/options
- (inflow)
- outflow
Cross currency interest rate swaps
- (inflow)
- outflow
Total derivatives
-
18.9
-
0.9
318.5
338.3
4.2
0.6
-
-
134.3
(136.5)
2.6
-
49.0
-
-
774.2
823.2
-
174.6
-
-
-
174.6
831.1
259.8
2.2
5.9
1,190.0
2,289.0
831.1
205.2
2.2
5.9
1,115.5
2,159.9
4.3
-
-
-
-
-
4.3
-
-
-
-
-
-
-
13.5
15.7
1.4
1.4
(142.5)
145.6
(33.5)
38.1
22.6
25.7
10.6
53.4
Total
contractual
(inflows)/
outflows
$m
Carrying
amount
(assets)/
liabilities
$m
Between 1
and 2 years
$m
Between 2
and 5 years Over 5 years
$m
$m
307.3
14.8
10.5
1.6
166.8
501.0
-
20.8
-
1.9
217.8
240.5
-
18.9
-
1.2
1,530.1
1,550.2
-
-
-
-
155.7
155.7
307.3
67.8
19.2
4.7
2,092.2
2,491.2
307.3
64.0
19.2
4.7
1,948.4
2,343.6
(14.5)
0.8
9.0
5.4
(320.2)
324.8
(1.5)
2.2
(9.2)
(18.7)
18.6
(90.7)
92.8
2.8
-
-
(80.9)
86.5
14.6
-
-
(111.7)
120.3
14.0
-
-
-
-
-
-
0.7
1.2
(338.9)
343.4
(284.8)
301.8
22.2
30.2
17.8
49.2
SEEK Limited Annual Report 2021 117
(d) Credit risk
SEEK’s exposure to credit risk arises from the potential default of SEEK’s trade and other receivables as well as the institutions in
which SEEK’s cash and cash equivalents are deposited, and with whom derivative instruments are traded, with a maximum exposure
equal to the carrying amounts of these assets.
Risk management policy
Credit risk in relation to trade and other receivables is managed in the following ways:
• The provision of credit is covered by a risk assessment process for all customers (e.g. appropriate credit history, credit limits, past
experience); and
• Concentrations of credit risk are minimised by undertaking transactions with a large number of customers.
Credit risk arising from the deposit of SEEK's cash and cash equivalents is managed under SEEK’s treasury policy which only
authorises dealings with financial institutions that have an investment grade rating.
Material exposures
Cash and cash equivalents at 30 June 2021 were $491.8m (2020: $604.8m). All amounts are invested with financial institutions that
have an investment grade rating.
Trade receivables at 30 June 2021 were $76.5m (2020: $52.2m). SEEK does not hold any credit derivatives or collateral to offset its
credit exposure. Due to the short term nature of these receivables, their carrying amount is assumed to approximate their fair value.
The exposure to credit risk is relatively low due to the credit terms provided and the large and diverse customer base.
Net trade receivables
During the year, a total expense of $1.7m (2020: $3.7m) was recognised in the Consolidated Income Statement in relation to the
provision for doubtful debts and credit notes.
The following table shows the ageing of SEEK’s net trade receivables at 30 June.
Not past due
Past due less than 30 days
Past due 30 - 60 days
Past due 61 - 90 days
Past due 91 - 120 days
Past due 120+ days
Closing balance
2021
$m
48.0
15.1
5.8
1.4
1.0
0.8
72.1
2020
$m
29.7
7.7
3.0
2.1
3.0
1.1
46.6
Financial Report 118
Assets and liabilities
11. Trade and other receivables
Critical accounting estimates and assumptions
Expected credit losses (ECLs)
The assessment of the correlation between historical observed
default rates, forecast economic conditions and ECLs is an
estimate. The amount of ECLs is sensitive to changes in
circumstances and of forecast economic conditions.
SEEK’s historical credit loss experience and forecast of economic
conditions may also not be representative of customer’s actual
default in the future.
Accounting Policy
Trade receivables are recognised initially at the amount stated on
the invoice and subsequently at the amount considered receivable
from the customer (amortised cost using the effective interest
method), less a provision for expected credit losses. These
receivables are interest-free and are generally due for settlement
within 30 days.
SEEK has applied a provision matrix to capture the ECLs for trade
receivables for different customer segments, based on days past
due. The ECL calculation is performed at each reporting period,
with historical credit loss experience adjusted for forward-looking
information that is anticipated to impact the ability of customers to
settle their balances. Information on SEEK’s credits risk exposure
and ageing of trade receivables is disclosed in Note 10 (d).
Amounts recognised as revenue, which are not yet able to be
invoiced to the customer, are recognised in the Consolidated
Balance Sheet as contract assets.
Once the amount is unconditionally payable by the customer,
it is invoiced and reclassified from contracts assets to trade
receivables.
The creation or release of the provision for doubtful debts has
been included in ‘operations and administration’ expenses in the
Consolidated Income Statement and the creation or the release of
the credit note provision has been included within sales revenue.
Amounts charged to the provision are generally written off when
there is no expectation of recovering additional cash.
Trade receivables
Less: loss allowance
Net trade receivables
Contract assets
Other receivables (i)
Funds on deposit for entrusted loan facilities
Prepayments
Total trade and other receivables
Current
Non-current
Notes
7(e)
2021
$m
76.5
(4.4)
72.1
0.1
677.9
-
21.0
771.1
2020
$m
52.2
(5.6)
46.6
8.0
17.2
47.4
32.4
151.6
2021
$m
-
-
-
-
-
-
-
-
2020
$m
-
-
-
-
-
114.9
-
114.9
(i) Other receivable
The other receivables balance includes proceeds owing from investors (net of taxes) as a result of the Zhaopin disposal, with a
related balance in other payables (refer to Note 2 Discontinued operations and Note 13 Trade and other payables).
SEEK Limited Annual Report 2021 119
12. Intangible assets
Critical accounting estimates and assumptions
Management has determined that some of the intangible assets
(brands and licences) recognised as part of business combinations
have indefinite useful lives. This means that the value of these assets
do not reduce over time and therefore they are not amortised. These
assets have no legal or contractual expiry date and are integral to
future revenue generation. Management intends to continue to
promote, maintain and defend the brands and licences to the extent
necessary to maintain their values for the foreseeable future.
Management assesses the useful lives of SEEK’s intangible assets
at the end of each reporting period. If an intangible asset is no longer
considered to have an indefinite useful life, this change is accounted
for prospectively.
Configuration and customisation in cloud computing arrangements
Some customisation and configuration activities undertaken in
implementing cloud computing arrangements entail the development
of software code that enhances or modifies, or creates additional
capacity to, existing on-premise systems. Judgement is applied in
determining whether the benefits from these costs meet the definition
of and recognition criteria for an intangible asset in AASB 138
Intangible Assets.
Cost that do not result in intangible assets are expensed as incurred,
unless they are paid to the suppliers of the cloud computing
arrangement to significantly customise the cloud-based software
for SEEK, in which case the costs are recorded as a prepayment
for services and amortised over the expected renewable term of
the arrangement.
Accounting Policy
Intangible assets are non-physical assets held by SEEK in order to generate revenue and profit. These assets include goodwill, brands and
licences, software and website development and work in progress. They are recognised either at the cost SEEK has paid for them or at
their fair value if they are acquired as part of a business combination. They are amortised over their expected useful life unless they are
considered to have an indefinite useful life.
Type of intangible asset
Valuation method
Amortisation method
Estimated
useful life
Goodwill
Brands and licences
Customer relationships
Software and website
development
Initially measured at cost. The
excess of consideration paid and
the amount of any non-controlling
interest in a business combination
over the fair value of the net
identifiable assets acquired is
recognised as goodwill
Initially at cost, or fair value if
acquired as part of a business
combination
Not amortised, reviewed for impairment at least
annually
n/a
Finite life brands, straight-line. Indefinite life
brands not amortised, reviewed for impairment
at least annually
Specific to
circumstances
Initially at fair value at date of
business combination
Initially at cost, or fair value if
acquired as part of a business
combination, and subsequently at
cost less accumulated amortisation
Straight-line
Straight-line
1 to 5 years
3 to 5 years
Work in progress
Cost
Not amortised as not ready for use
n/a
(i) Goodwill
Goodwill relates to the portion of amounts paid to acquire other entities which cannot be identified as separate assets but instead
represents expected future economic benefits. Goodwill on acquisition of subsidiaries is included in intangible assets whilst goodwill on
acquisitions of associates and joint ventures is included in the carrying amount of the investment. Gains and losses on the disposal of an
entity include the carrying amount of goodwill relating to the entity sold.
(ii) Software and website development
Costs incurred in acquiring, developing and implementing new websites or software are recognised as intangible assets only when it is
probable that future economic benefits associated with the item will flow to SEEK and the cost of the item can be measured reliably. The
expenditure capitalised comprises all directly attributable costs, including costs of materials, services, licences and direct labour.
(iii) Work in progress
Work in progress (WIP) represents intangible assets of other classes not yet put into use. These assets are transferred to another class of
assets, normally software and website development, on the date of completion.
Financial Report 120
12. Intangible assets continued
Accounting policy continued
(iv) Cloud computing arrangements
The Group has a number of cloud computing arrangements that provide it with the right to access the cloud-based software over a contracted
period. Costs incurred to configure or customise, and the ongoing fees to obtain access to such software, are recognised as operating
expenses when the services are received.
Some additional costs are incurred for the development of software code that enhances or modifies, or creates additional capability to existing
systems and meets the definition of and recognition criteria for an intangible asset, as a software and website development asset. Please refer
to Note 29 Changes in accounting policies for the impact of the change from this new policy.
Notes
Goodwill
$m
Brands and
licences
$m
Customer
relationships
$m
Software
and website
development
$m
Work in
progress
$m
2020
Cost
Opening balance at 1 July 2019(1)
Additions(1)
Acquisition of subsidiaries
Disposals
Exchange differences
Transfers
Closing balance at 30 June 2020(1)
Amortisation(1)
Opening balance at 1 July 2019
Amortisation charge
Disposals
Impairment loss
Exchange differences
Closing balance at 30 June 2020(1)
Carrying value at 30 June 2020(1)
2021
Cost
Opening balance at 1 July 2020 (1)
Additions
Acquisition of subsidiaries
Disposals
Disposal of Zhaopin
Exchange differences
Transfers
Transfer to assets held for sale
Closing balance at 30 June 2021
Amortisation
Opening balance at 1 July 2020 (1)
Amortisation charge
Disposals
Disposal of Zhaopin
Impairment loss
Exchange differences
Transfer to assets held for sale
Closing balance at 30 June 2021
Carrying value at 30 June 2021
2,312.9
-
0.6
-
(77.6)
-
2,235.9
(192.0)
-
-
(129.0)
45.4
(275.6)
376.4
-
-
-
(17.7)
-
358.7
(3.8)
(0.6)
-
(11.4)
0.1
(15.7)
1,960.3
343.0
2,235.9
-
11.0
-
(508.6)
(73.3)
-
(352.8)
1,312.2
(275.6)
-
-
-
(12.7)
(6.3)
-
(294.6)
1,017.6
358.7
-
-
-
(146.6)
(11.6)
-
-
200.5
(15.7)
-
-
2.6
(27.1)
-
-
(40.2)
160.3
99.4
-
-
-
(1.2)
-
98.2
(83.7)
(7.1)
-
-
1.2
(89.6)
8.6
98.2
-
2.5
-
(11.0)
(3.0)
-
(33.3)
53.4
(89.6)
(7.3)
-
11.0
-
3.1
29.4
(53.4)
-
389.8
6.7
-
(1.2)
(7.7)
92.1
479.7
(218.2)
(80.0)
0.7
-
5.7
(291.8)
187.9
479.7
4.4
-
(2.2)
(95.1)
(2.2)
78.6
(25.7)
437.5
(291.8)
(83.5)
2.2
66.4
(3.9)
2.4
14.9
(293.3)
144.2
2(b)
2(c)
2(b)
12(a)(iii)
2(c)
Total
$m
3,208.1
109.8
0.6
(1.2)
(105.8)
-
3,211.5
(497.7)
(87.7)
0.7
(140.4)
52.4
(672.7)
29.6
103.1
-
-
(1.6)
(92.1)
39.0
-
-
-
-
-
-
39.0
2,538.8
39.0
101.7
-
-
(0.8)
(2.1)
(78.6)
(1.3)
57.9
-
-
-
-
-
-
-
-
57.9
3,211.5
106.1
13.5
(2.2)
(762.1)
(92.2)
-
(413.1)
2,061.5
(672.7)
(90.8)
2.2
80.0
(43.7)
(0.8)
44.3
(681.5)
1,380.0
(1) See Note 29 Changes in accounting policies - SEEK revised its accounting policy regarding upfront configuration costs incurred in implementing cloud computing arrangements. Comparative
information has been restated to account for the impact of the retrospectively.
SEEK Limited Annual Report 2021 121
(a) Impairment
Critical accounting estimates and assumptions
Goodwill and intangible assets with indefinite useful lives are
allocated to a cash-generating unit (CGU) or group of CGUs
and tested annually for impairment.
The recoverable amounts of the CGU or group of CGUs is based
on the higher of its value-in-use (expected future cash flows from
operating the asset/CGU) and fair value less costs of disposal
(expected net proceeds if the asset/CGU were sold). These
calculations are performed based on cash flow projections and
other supplementary information which, given their forward
looking nature, require the adoption of assumptions and estimates.
Impairment is recognised where the recoverable amount of an
asset or CGU has fallen below the carrying amount.
For certain CGUs, the determination of recoverable amount
requires the estimation and discounting of future cashflows.
These estimates include establishing forecasts of future
financial performance, terminal value growth rates and post-tax
discount rates.
Each of these assumptions and estimates is based on a ‘best
estimate’ at the time of performing the valuation and therefore, any
changes to expected future financial performance, discount rates
or terminal growth rates can alter the recoverable amount of a CGU
or group of CGUs.
(i) Cash-generating units
Goodwill and other intangible assets are allocated to CGUs for the purpose of impairment testing.
Asia Pacific & Americas
SEEK Australia (i)
SEEK New Zealand
SEEK Asia (ii)
WorkAbroad (iii)
Brasil Online
OCC
Jora
GradConnection (i)
SEEK Investments
Zhaopin (iv)
OES (v)
JobAdder
Sidekicker (v)
Total intangibles assets from continuing operations
Assets held for sale
SEEK Growth Fund disposal group (v)
2021
2020
Intangible
assets with
indefinite useful
lives
$m
1.4
-
136.2
-
-
17.7
-
n/a
n/a
n/a
5.0
n/a
160.3
Goodwill
14.7
5.7
974.4
-
-
9.1
1.1
n/a
n/a
n/a
12.6
n/a
1,017.6
Intangible
assets with
indefinite useful
lives
$m
-
-
146.9
n/a
25.7
16.8
-
1.4
147.2
-
5.0
-
343.0
Goodwill
$m
-
5.7
1,055.4
n/a
-
8.6
1.1
14.7
520.4
336.1
12.6
5.7
1,960.3
352.8
-
n/a
n/a
(i) SEEK Australia
In 2019, SEEK acquired a 100% interest in GradConnection Holdings Pty Ltd (together with its consolidated subsidiaries,
‘GradConnection’) an Australian graduate recruitment job platform. The intention was for GradConnection to operate independently
post acquisition and gradually integrate with the SEEK Australia platform over time. Given the degree of post-acquisition integration
achieved as at 30 June 2021, management determined that GradConnection’s cash flows were no longer largely independent of the
cash flows of the SEEK Australia CGU. As such, GradConnection’s goodwill and intangible assets with indefinite useful lives were
assessed for impairment as part of the SEEK Australia CGU for the year ended 30 June 2021.
Financial Report 122
12. Intangible assets continued
(ii) SEEK Asia
SEEK Asia is a leading provider of online employment marketplaces operating across seven countries throughout South East Asia
and Hong Kong. The goodwill and intangible assets with indefinite useful lives relating to SEEK Asia are a significant component
of the Consolidated Balance Sheet. The goodwill for this business is attributable to the strong market position it holds and the high
growth potential in these emerging markets.
For the purpose of impairment testing, goodwill and intangible asset balances are assessed on the following basis:
• Goodwill is tested across the group of CGUs that comprise SEEK Asia as the goodwill balance contributes to the generation of
cash flows across the whole business; and
• The JobsDB and JobStreet brands are tested across the group of CGUs that comprise SEEK Asia as a high level of integration
has been achieved in the period post acquisition of JobStreet in November 2014, with management having exercised its ability to
direct cash flows from one brand to the other.
(iii) WorkAbroad
In 2016, SEEK Asia acquired a 100% interest in an online employment marketplace, WorkAbroad. WorkAbroad is a Philippines based
job site that specialises in placing Filipino candidates in overseas roles. The results of the operations of WorkAbroad are included
within the SEEK Asia operating segment.
In FY2020, the carrying amount of goodwill and intangible assets with indefinite useful lives in WorkAbroad were assessed for
impairment as part of the SEEK Asia CGU. In FY2021, management reassessed the composition of the SEEK Asia CGU with
reference to the Platform Unification program of work where JobStreet and JobsDB businesses are being brought onto the ANZ
technology platform. Whilst the operations of JobStreet and JobsDB will continue to be highly integrated once Platform Unification is
complete, WorkAbroad is expected to operate more independently. As such, management identified WorkAbroad as a separate CGU
for the purposes of its impairment assessment as at 30 June 2021.
(iv) Zhaopin
Following the disposal and deconsolidation of Zhaopin in FY2021, SEEK no longer recognises any goodwill or intangible assets with
indefinite useful lives relating to this business as at 30 June 2021 (refer to Note 2 Discontinued Operations).
(v) SEEK Growth Fund disposal group
As at 30 June 2021, OES and Sidekicker formed part of the SEEK Growth Fund disposal group and were classified as Discontinued
Operations, (refer to Note 2 Discontinued Operations). In accordance with AASB 5 Non-current Assets Held for Sale and Discontinued
Operations, management tested the goodwill in OES and Sidekicker for impairment with reference to the disposal group as a whole,
the net assets for which are recognised at the lower of carrying value or fair value.
(ii) Impairment testing and key assumptions
Key assumptions
Management determines the carrying value of certain CGUs/Groups of CGUs based on discounted future cash flow projections
which include estimates relating to: revenue, operating costs, capital expenditure, working capital, leases and tax, in addition to the
terminal growth rate and discount rates noted in the table below. Cash flow forecasts include next year’s budgeted results, with the
remaining years based on judgement and management’s best estimates with reference to key structural and market factors, and
have been derived under a consistent approach to the prior year impairment assessment, utilising past experience, external data and
internal analysis. The key structural and market factors considered in relation to the online employment businesses comprise labour
market growth, rising internet penetration, continued structural migration of advertising expenditure from print to online channels and
GDP growth. Management also anticipates growth from market penetration and continued evolution of products and services.
CGU / Group of CGUs
Valuation method
SEEK Australia (i)
Fair value less costs of disposal
SEEK New Zealand
Fair value less costs of disposal
SEEK Asia
Fair value less costs of disposal
WorkAbroad
Fair value less costs of disposal
Brasil Online
Fair value less costs of disposal
OCC
Fair value less costs of disposal
Fair value less costs of disposal
JobAdder (ii)
SEEK Growth Fund disposal group (iii) Fair value less costs of disposal
Years of cash
flow projection
Terminal growth rate %
Post-tax discount rate %
2021
2020
2021
2020
n/a
5
10
10
10
10
n/a
n/a
n/a
1.8
2.4
2.4
3.5
3.0
n/a
n/a
n/a
1.8
2.4
n/a
3.5
3.0
n/a
n/a
n/a
9.5
11.5
11.5
16.0
13.5
n/a
n/a
n/a
9.5
11.5
n/a
16.0
13.5
n/a
n/a
SEEK Limited Annual Report 2021 123
(i) SEEK Australia
As at at 30 June 2021, the recoverable amount of SEEK Australia has been determined based on a ‘sum-of-the-parts’ approach with
reference to SEEK’s market capitalisation and reported net debt, adjusted for the aggregate recoverable amount of all other assets/
CGU’s.
(ii) JobAdder
As at 30 June 2021, the recoverable amount of JobAdder has been determined based on market based multiples and consideration
of previous transactions in which SEEK has increased its ownership interest.
(iii) SEEK Growth Fund disposal group
In determining the estimated recoverable amount for the SEEK Growth Fund disposal group, management referenced an
independently assessed fair value of the seed assets that will be transferred from SEEK to the Fund of $1,215.0m. This valuation has
subsequently been used by external parties in determining their level of subscription in the Fund as part of the Fund’s first capital
raise which is expected to be completed in September 2021.
(iii) Impairment losses recognised during the year
For the financial year ended 30 June 2021, SEEK recognised a total non-cash impairment loss of $43.7m (2020: $203.1m) in relation
to Brasil Online and WorkAbroad. A further non-cash impairment of $3.2m was recognised on SEEK’s lease portfolio (refer to Note
14 Leases for more information).
The total impairment loss of $46.9m recognised in the Consolidated Income Statement is before the unwind of deferred tax
liabilities relating to impaired brand, software and website intangibles in Brasil Online ($10.1m) and impaired right-of-use assets in
SEEK Australia ($1.0m).
Year ended 30 June 2021
Goodwill
Brands and licences
Software and website
Leases
Total impairment loss (per Consolidated Income Statement)
Unwind of deferred tax liabilities
Net impairment charge (post-tax)
Corporate
Costs
$m
WorkAbroad
(i)
$m
Brasil
Online (ii)
$m
Notes
14(a)(i)
-
-
-
3.2
3.2
(1.0)
2.2
12.7
1.4
-
-
14.1
-
14.1
-
25.7
3.9
-
29.6
(10.1)
19.5
Total
$m
12.7
27.1
3.9
3.2
46.9
(11.1)
35.8
(i) WorkAbroad
As part of management’s impairment testing for the year ended 30 June 2021, the carrying amount of the goodwill and other
indefinite life intangible assets in WorkAbroad were compared to the recoverable amount using a fair value less cost of disposal
(FVLCD) discounted cash flow (DCF) model. Due to ongoing COVID-19 restrictions, which have limited the ability for candidates to
travel and work overseas, Workabroad’s financial performance and outlook has declined significantly versus previous expectations.
As a result, management determined that the carrying amount of WorkAbroad is no longer recoverable and an impairment charge
(post-tax) of $14.1m was recognised as at 30 June 2021. This impairment charge is included within the results of the SEEK Asia
operating segment.
(ii) Brasil Online
In FY2020, a net impairment loss of $96.8m was recorded in relation to Brasil Online with the business severely impacted by
COVID-19. During FY2021, the significant impacts of COVID-19 have continued resulting in depressed economic and employment
conditions. Despite this, SEEK remains committed to the business and the execution of the new business model.
The remaining carrying amount of indefinite life intangible assets in Brasil Online are tested across the aggregate Brasil Online CGU,
as they contribute to the generation of cash flows across the whole of the business. As part of management’s impairment testing
for the year ended 30 June 2021, these carrying amounts were compared to the recoverable amount using a FVLCD DCF model.
As a result of the combination of weak economic and employment conditions, and the early stages of the current business model
transformation, management has determined that the carrying value exceeded the recoverable amount. Management has also
written down the value of software and website intangibles. An aggregate impairment charge (post-tax) of $19.5m was recognised
as at 30 June 2021.
Financial Report 124
13. Trade and other payables
Trade payables
Accruals
Dividend payable (i)
GST and other value added taxes payable
Other payables (ii)
Total trade and other payables
2021
$m
8.6
102.7
-
6.6
713.2
831.1
2020
$m
16.4
221.7
45.8
5.5
17.9
307.3
(i) Dividend payable
In the prior year, on 6 April 2020, SEEK announced that it had deferred payment of the 2020 interim dividend until 23 July 2020.
(ii) Other payables
The other payables balance includes consideration owing to the non-controlling interest, transaction costs payable to third parties,
and taxes, as a result of the Zhaopin disposal, with a related balance in other receivables (refer to Note 2 Discontinued operations and
Note 11 Trade and other receivables). These payables are expected to be settled following the receipt of proceeds.
14. Leases
Critical accounting estimates and assumptions
Incremental borrowing rate (IBR)
Lease payments are discounted using the IBR, being the rate of
interest that SEEK ‘would have to pay’ to borrow over a similar
term, with a similar security, the funds necessary to obtain an asset
of similar value to the right-of-use asset in a similar economic
environment. The IBR therefore requires estimation, and SEEK
uses a build-up approach that starts with a risk-free interest
rate adjusted for credit risk for leases held by SEEK, and makes
adjustments specific to the lease (i.e Term, country, currency and
security).
Extension and termination options
SEEK has several lease contracts that include extension and
termination options. SEEK determines the lease term as the non-
cancellable term of the lease, together with any periods covered
by an option to extend the lease if it is reasonably certain to be
exercised (or not terminated), at the commencement date of
the lease. Significant judgement is required in determining if it is
reasonably certain that the extension options will be exercised or
not. After the commencement date, SEEK reassesses the lease
term if there is a significant event or change in circumstances
that is within its control and affects its ability to exercise or not to
exercise the option to renew or to terminate.
SEEK Limited Annual Report 2021 125
Accounting Policy
At inception of a contract, SEEK assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
SEEK separates the lease and non-lease components of the contract and accounts for these separately. The consideration in the contract is
then allocated to each component on the basis of their relative stand-alone prices.
Leases as a lessee
SEEK recognises a right-of-use asset and a lease liability at the commencement date of the lease. The asset is initially measured at cost,
which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, an
estimate of make-good costs, and initial direct costs incurred, less any lease incentives received.
Subsequently, the asset is depreciated using the straight-line method from commencement date to the earlier of the end of its useful life
and the lease term.
Periodically, the asset is reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
Lease liabilities include the net present value of the following lease payments:
• Fixed payments (including in-substance fixed payments), less any lease incentives receivable; and
• Variable lease payments that are based on an index or rate, initially measured using the index or rate as at the commencement date.
Subsequently, the lease liability is increased by the interest cost on the lease liability and decreased by lease payments made. It is
remeasured when there is a change in future lease payments arising from a change in an index or rate or a change in the assessment of
whether renewal or termination options contained within the contract are reasonably certain to be exercised. When the lease liability is
remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset. Any excess is recorded in the
Consolidated Income Statement.
Lease payments are allocated between principal and finance cost. The finance cost is recorded in the Consolidated Income Statement over
the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
SEEK does not recognise right-of-use assets and lease liabilities for low-value assets (<$5,000). These leases are recognised as incurred
and treated as an expense in the Consolidated Income Statement.
(a) Amounts recognised in the Consolidated Balance sheet
(i) Right-of-use assets
SEEK leases various offices under non-cancellable agreements which primarily expire within one to five years. The leases have
varying terms, escalation clauses and renewal rights. On renewal, the terms of the lease are negotiated. The following movements in
the right-of-use asset have been recorded to 30 June:
Balance recognised on date of transition to AASB 16
Opening balance
Additions to right-of-use assets(1)
Disposals of right-of-use assets
Depreciation charge for the year - continuing operations
Depreciation charge for the year - discontinued operations
Disposal of interest in subsidiary
Impairment of right-of-use assets(2)
Transfer to assets held for sale
Foreign exchange movements
Total right-of-use assets
Property leases
2021
$m
-
55.5
206.2
(13.8)
(14.3)
(13.3)
(21.5)
(3.2)
(2.2)
(0.5)
192.9
2020
$m
56.7
-
30.7
(3.6)
(9.1)
(17.4)
-
-
-
(1.8)
55.5
(1) The additions to right-of-use assets in current year largely relates to the lease signed for SEEK’s new global headquarters in Melbourne. SEEK has also incurred $49.9m in fit out costs in relation to
this lease, which are classified within WIP in the plant and equipment balance at 30 June 2021.
(2)
Impairment expense of $3.2m has been recognised as a result of an agreement to sub-lease of a portion of an office for an amount less than the rent being paid to the head lessor.
Financial Report 126
14. Leases continued
(ii) Lease liabilities
Current
Non-current
Total lease liabilities
Extension options
2021
$m
17.1
188.1
205.2
2020
$m
28.0
36.0
64.0
As at 30 June 2021, potential future undiscounted cash outflows of $236.9m (2020: $6.5m) have not been included in the lease
liability because it is not reasonably certain that the leases will be extended (or not terminated).
SEEK reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant changes in
circumstances within its control. During the current financial year, the financial effect of revising lease terms to reflect the effect of
exercising extension and termination options was an increase in recognised lease liabilities and right-of-use assets of $3.4m (2020:
$13.4m).
(b) Amounts recognised in the Consolidated Income Statement
The following amounts relating to leases were recognised in the Consolidated Income Statement during the year ended 30 June:
Depreciation - right-of-use assets
Interest expense on lease liabilities - (in 'finance costs')
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
2021
$m
14.3
3.5
Restated
2020(1)
$m
9.1
1.2
Impact of COVID-19
SEEK has adopted the practical expedient in paragraph 46A of AASB 16 Leases and elected not to account for any rent concessions
granted as a result of the COVID-19 pandemic as a lease modification. The amount recognised in profit or loss due to changes in
lease payments arising from such concessions was $0.1m (2020: $0.9m).
(c) Amounts recognised in the Consolidated Statement of Cash Flows
The following amounts relating to cash outflows for leases were recognised in the Consolidated Statement of Cash Flows during the
year ended 30 June:
Interest expense on lease liabilities - (in 'operating activities')
Principal elements of lease liabilities - (in 'financing activities')
Total cash outflow for lease liabilities
2021
$m
3.5
7.0
10.5
Restated
2020(1)
$m
1.2
9.7
10.9
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
The future cash outflows relating to leases that have not yet commenced are disclosed in Note 22 Commitments for expenditure.
SEEK Limited Annual Report 2021 127
15. Provisions
Critical accounting estimates and assumptions
Following the guidance in AASB 3 Business Combinations, SEEK
has recognised a provision for contingent liabilities acquired in
various business combinations. At acquisition, the provisions
were measured at the fair value of the contingent liabilities, which
reflected the range of possible outcomes across the portfolio of
contingent liabilities and is adjusted for risk.
The carrying amount of the provision has been reassessed in each
subsequent reporting period.
The settlement of these contingent liabilities is uncertain and the
difference between the settlement amounts and the amounts
provided for may be material.
Accounting Policy
Provisions are recognised when:
• SEEK has a present legal or constructive obligation as a result
of past events;
•
it is probable that an outflow of resources (usually cash or other
assets) will be required to settle the obligation; and
•
the amount can be reliably estimated.
Where there are a number of similar obligations, the likelihood
that an outflow will be required in settlement is determined by
considering those similar obligations together. A provision is
recognised in aggregate even if the likelihood of an outflow with
respect to any one item is small.
Provisions are measured at the present value of management’s
best estimate of the expenditure required to settle the present
obligation at the end of the reporting period.
Employee benefits provision
Other provisions
Total provisions
The movement in other provisions during the financial year is set out below:
Balance at 1 July 2020
Additional provision recognised in the year
Credited to the Consolidated Income Statement
Utilisation during the year
Effect of movement in foreign exchange
Transfer to liabilities directly associated with assets held for sale
Balance at 30 June 2021
Current
Non-current
Make good
provision
$m
2.7
0.1
(0.1)
(0.4)
(0.1)
-
2.2
2.0
0.2
Current
Non-current
2021
$m
26.5
3.0
29.5
2020
$m
27.1
9.4
36.5
Acquired
contingent
liabilities
$m
Tax cases
provision (i)
$m
6.5
-
(2.8)
-
(0.1)
(0.6)
3.0
1.0
2.0
7.2
0.7
-
(0.7)
-
-
7.2
-
7.2
2021
$m
10.7
10.2
20.9
Other
$m
4.6
4.4
-
(6.3)
-
(1.9)
0.8
-
0.8
2020
$m
15.9
11.6
27.5
Total
$m
21.0
5.2
(2.9)
(7.4)
(0.2)
(2.5)
13.2
3.0
10.2
(i) Tax cases provision
Brasil Online is subject to a number of tax infraction notices from Brazilian tax authorities. These tax infractions are either open,
subject to legal proceedings, or under appeal. Based on advice from leading Brazilian external legal counsel, Brasil Online has
estimated the most likely amounts payable including penalties and interest and has recognised this amount as a provision.
Unrecognised contingent liabilities relating to uncertain tax positions applicable to Brasil Online are discussed further in Note 23
Contingent liabilities.
Financial Report 128
Equity
16. Share capital
Movement of shares on issue
No. of Shares
No. of Shares
No. of Shares
Ordinary shares
(excluding
Treasury shares) Treasury shares
Total Share capital
Balance at 30 June 2019
Issue of shares to satisfy future rights exercises
Exercise of rights
Release of restricted shares
Balance at 30 June 2020
Issue of shares to satisfy future rights exercises
Exercise of rights
Release of restricted shares
Balance at 30 June 2021
350,731,425
-
662,215
389,832
351,783,472
-
369,573
450,825
352,603,870
1,279,457
1,019,308
(662,215)
(389,832)
1,246,718
540,000
(369,573)
(450,825)
966,320
352,010,882
1,019,308
-
-
353,030,190
540,000
-
-
353,570,190
$m
269.2
-
-
-
269.2
-
-
-
269.2
Ordinary shares have no par value and entitle the holder to participate in dividends and the proceeds on winding up of the Company
in proportion to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll
each share is entitled to one vote.
Treasury shares are shares in the Company that are held by the Employee Share Trust for the purpose of future allocation to
employees under the SEEK Equity Plan, and shares held by the Employee Share Trust that have been allocated to employees but are
subject to a disposal restriction.
SEEK Limited Annual Report 2021 17. Reserves
Nature and purpose of reserves
Cash flow hedge reserve
The Cash flow hedge reserve is used to record gains or losses on a
hedging instrument in a cash flow hedge that is recognised directly
in equity, as described in Note 9 Financial instruments and fair value
measurement.
Net investment hedge reserve
The Net investment hedge reserve is used to record gains or losses
on a hedging instrument in a net investment hedge that is recognised
directly in equity, as described in Note 9 Financial instruments and fair
value measurement.
Fair value hedge reserve
The Fair value hedge reserve is used to record gains or losses on a
hedging instrument in a fair value hedge that is recognised directly
in equity, as described in Note 9 Financial instruments and fair value
measurement.
Cost of hedging reserve
The Cost of hedging reserve is used to record gains or losses on the
forward element of a hedging instrument where the cost of hedging
approach is applied.
Share-based payments reserve
The Share-based payments reserve is used to recognise the grant
date fair value of shares issued to employees.
(a) Hedging reserves
Cash flow hedge reserve
Net investment hedge reserve (i)
Fair value hedge reserve
Cost of hedging reserve
Total hedging reserve
129
Put option reserve
This reserve relates to a put option over the remaining shares held
by a non-controlling interest in JobAdder. SEEK has recognised
a financial liability for the estimated exercise value of that
option, as described in Note 9 Financial instruments and fair
value measurement.
Equity instruments revaluation reserve
The Equity instruments revaluation reserve is used to record changes
in the fair value of investments in equity instruments that are not held
for trading, for which SEEK elected, at initial recognition, to present
gains and losses in other comprehensive income.
Transactions with non-controlling interests reserve
This reserve is used to record differences arising as a result of
transactions with a non-controlling interest that do not result in a loss
of control. Upon disposal of interests in that entity this reserve would
be transferred to retained earnings.
Transfers under common control reserve
The Transfers under common control reserve is used to record the
net impact on the equity attributable to the shareholders of SEEK
in the event of a transfer of an entity under common control. Upon
disposal of all interests in that entity this reserve would be transferred
to retained earnings.
Foreign currency translation reserve
Exchange differences arising on the translation of foreign controlled
entities and associates are recognised in the Foreign currency
translation reserve, as described in Note 28 Other significant
accounting policies.
2021
$m
(11.5)
(46.3)
1.7
0.4
(55.7)
2020
$m
(11.1)
(145.2)
(0.8)
(0.9)
(158.0)
SEEK’s approach to hedging is described in Note 9 Financial instruments and fair value measurement.
(i) Net investment hedge reserve
The movement of $98.9m (2020: $33.2m) in the Net investment hedge reserve for the year was mainly due to reserves recycled
through other comprehensive income on disposal of its interest in Zhaopin. Please refer to Note 2 Discontinued operations for
further information.
Financial Report 130
17. Reserves continued
(b) Other reserves
Share-based payments reserve
Put option reserve (i)
Equity instruments revaluation reserve (ii)
Transactions with non-controlling interests reserve (iii)
Transfers under common control reserve
Other reserves
Total other reserves
(i) Put option reserve
2021
$m
121.9
(1.4)
78.0
(50.4)
-
(0.3)
147.8
2020
$m
110.8
(18.3)
21.4
(93.2)
(4.6)
-
16.1
SEEK acquired a further 36.2% interest in JobAdder, resulting in a partial utilisation of the Put option reserve and a related movement
in the Transactions with non-controlling interest reserve.
(ii) Equity instruments revaluation reserve
The movement of $56.6m in the Equity instruments revaluation reserve is primarily due to changes in the fair value of financial assets
at fair value through other comprehensive income (FVOCI).
(iii) Transactions with non-controlling interest reserve
During the period SEEK disposed of its interest in Zhaopin resulting in a transfer from the Transaction with non-controlling interest
reserve to retained earnings.
18. Dividends
2020
2019 final dividend
2020 interim dividend(1)
Total dividends provided for or paid for the year ending 30 June 2020
2021
2021 dividend(2)
Total dividend paid for the year ending 30 June 2021
Payment
date
Amount per
share
Franked
amount per
share Total dividend
3 October 2019
23 July 2020
22.0 cents
13.0 cents
22.0 cents
13.0 cents
24 May 2021
20.0 cents
20.0 cents
$77.4m
$45.8m
$123.2m
$70.6m
$70.6m
Dividends determined by the Board of the Company after the financial year (to be paid out of retained profits at 30 June 2021):
2021 final dividend
5 October 2021
20.0 cents
20.0 cents
$70.7m
(1) On 6th April 2020, SEEK announced that it had deferred payment of the 2020 interim dividend until 23 July 2020.
(2) SEEK did not pay a 2021 interim dividend, due to the macroeconomic challenges across its key markets arising from COVID-19. Instead, the Board determined that SEEK would pay a dividend as
per the details above, following signing and completion of the Zhaopin transaction.
The balance of the franking account of the SEEK Australian income tax consolidated group, adjusted for franking credits that will arise
from the payment of its current tax liability, is $111.1m at 30 June 2021 (2020: $48.0m) based on a tax rate of 30% (2020: 30%).
The dividend payment on 5 October 2021 will be fully franked using this balance, and will reduce the franking credits available by $30.3m
for the SEEK Australian income tax consolidated group.
SEEK Limited Annual Report 2021 131
Group structure
19. Interests in controlled entities
(a) Material subsidiaries
Critical accounting estimates and assumptions
SEEK has fully consolidated a number of entities in the SEEK Asia group despite not holding the majority of equity. A list of these entities is
shown below in section (b).
Unless otherwise stated, the following subsidiaries have share capital consisting solely of ordinary shares that are held by SEEK, and
the proportion of ownership interests held equals the voting rights of SEEK.
Name of entity
SEEK (NZ) Limited
SEEK Learning Pty Ltd
Country of
incorporation
New Zealand
Australia
SEEKAsia Ltd(1) (together with its consolidated subsidiaries, ‘SEEK Asia’)
Cayman Islands
Jobs DB Hong Kong Limited
Jobs DB Singapore Pte Limited
Jobs DB Malaysia Sdn. Bhd.
Jobs DB Recruitment (Thailand) Limited
PT. Jobs DB Indonesia
Jobs DB Philippines Inc.
SEEK Asia Investments Pte. Ltd.
JobStreet.com Pte Ltd
JobStreet.com Shared Services Sdn. Bhd.
JobStreet.com Philippines, Inc
PT. JobStreet Indonesia
JobStreet Company Limited
Catho Online, Ltda (together with its parent and other subsidiaries, ‘Brasil Online’)
Online Career Center Mexico, S.A.P.I de CV (OCC)
Zhaopin Limited(2)
Job Adder Operations Pty Ltd
Hong Kong
Singapore
Malaysia
Thailand
Indonesia
Philippines
Singapore
Singapore
Malaysia
Philippines
Indonesia
Vietnam
Brazil
Mexico
Cayman Islands
Australia
Equity holding
2021
%
Equity holding
2020
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
98.2
61.1
96.2
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
98.2
61.1
60
(1) Certain entities in these groups are fully consolidated despite not holding the majority of equity. See section (b) for further details.
(2) The operations of Zhaopin were deconsolidated from SEEK from 1 May 2021 (see Note 2 Discontinued operations). At 30 June 2021, SEEK retains a 61.1% interest in the parent, Zhaopin Limited,
which holds the 23.5% interest in the Zhaopin equity accounted investment, with the results of each of these included in continuing operations. The non-controlling interest related to Zhaopin has
also been derecognised to reflect SEEK’s economic interest in its operations, and therefore no summarised financial information relating to this has been disclosed.
(b) Entities fully consolidated despite not holding majority of equity
SEEK has fully consolidated a number of entities in the SEEK Asia group despite not holding the majority of equity or direct ownership
interest. Through existing contractual agreements, SEEK is able to exercise effective control over the financial and operating policies
of these businesses and receive substantially all of the economic benefits and returns
SEEK Asia entities
88 Karat Sdn. Bhd.
Agensi Pekerjaan JS Staffing Services Sdn. Bhd.
Jobs DB Assets (Thailand) Ltd
Agensi Pekerjaan JobStreet.com Sdn. Bhd.
Financial Report 132
19. Interests in controlled entities continued
(c) Transactions with non-controlling interests
On 1 May 2021, SEEK disposed of 37.6% of the equity of Zhaopin (the Zhaopin discontinued operation), retaining a 23.5% equity
accounted investment, as well as a 61.1% interest in the holding company, Zhaopin Limited (together referred to as the Zhaopin
continuing operations). Please refer to Note 2(b) for details of this disposal during the period.
During the period, the Group acquired a further 36.2% interest in JobAdder for cash consideration of $14.2m.
(d) Summarised financial information for subsidiaries with non-controlling interests
As at 30 June 2021, the carrying amount of non-controlling interests from continuing operations was $1.0m (2020: $5.4m). Loss
from continuing operations allocated to non-controlling interests for the year ended 30 June 2021 was $0.5m (2020: $2.1m).
The closing balances of non-controlling interests no longer represent a material balance to SEEK’s continuing operations and
accordingly, no summarised financial information has been presented.
20. Interests in equity accounted investments
Critical accounting estimates and assumptions
SEEK’s investment in its associates are reviewed for impairment on an annual basis or when events or circumstances indicate that the
carrying amount of the investment may not be recoverable. As required by current Accounting Standards, SEEK has evaluated, among
other factors, the financial health of and business outlook of its associates and has assessed the carrying value of its investments against
current estimated fair value.
(a) Interests in associates
Set out below is the additional information about some of SEEK’s material interests in associates as at 30 June 2021.
Name of entity
Principal activity
Country of
Incorporation
Beijing Wangpin Consulting
Co. Ltd (Zhaopin)(1)
Online job/education platform in China
China
Ownership interest
Nature of
relationship
Associate
2021
%
23.5
2020
%
n/a
BDJOBS.com Limited
(BDjobs)
Online employment focused business that helps
job seekers manage their career more efficiently,
including job search, training and assessment
(1) This represents the continuing operations of SEEK’s retained equity accounted investment in Zhaopin.
Bangladesh
Associate
35.0
35.0
SEEK Limited Annual Report 2021
(b) Movement in carrying amount of equity accounted investments
The carrying amount of equity accounted investments has changed as follows for the year ended 30 June 2021:
For the year ended 30 June 2021
Carrying amount at 1 July 2020
Acquisition of interest
Disposal of interest and/or transfer to equity instruments
Fair value of equity accounted investment retained upon disposal of subsidiary
Share of results - continuing operations
Share of results - discontinued operations
Share of other comprehensive income - continuing operations
Share of other comprehensive income - discontinued operations
Dividends received or declared
Share of movement in other reserves
Transfer to assets held for sale
Carrying amount at 30 June 2021
SEEK Investments
AP&A
Zhaopin
$m
Other
$m
Sub-total
$m
Other
$m
-
-
-
521.1
5.6
-
15.4
-
-
-
-
542.1
261.3
143.0
(73.2)
-
(0.4)
(8.7)
(1.0)
(6.5)
(0.3)
1.7
(295.6)
20.3
261.3
143.0
(73.2)
521.1
5.2
(8.7)
14.4
(6.5)
(0.3)
1.7
(295.6)
562.4
7.0
-
(6.0)
-
(1.1)
-
-
-
-
0.1
-
-
(c) Summarised financial information for equity accounted investments
Summarised financial information has been presented for continuing operations only.
133
Total
$m
268.3
143.0
(79.2)
521.1
4.1
(8.7)
14.4
(6.5)
(0.3)
1.8
(295.6)
562.4
For the year ended 30 June 2021
Summarised balance sheet (100%)
Current assets
Non-current assets
Current liabilities
Non-current liabilities
NCI share of net assets
Net assets
SEEK interest
SEEK's share of net assets
Goodwill
Carrying amount
Summarised statement of comprehensive income (100%)
Gross revenue
Interest income
Depreciation and amortisation
Other operating costs
Interest expense
Income tax expense
Non-controlling interest
Profit/(loss) for the period
Other comprehensive income
Total comprehensive income/(loss)
SEEK Investments
AP&A
Zhaopin
$m
Other
$m
Sub-total
$m
Other
$m
Total
$m
432.5
283.3
(611.7)
(12.5)
(3.4)
88.2
20.7
521.4
542.1
132.7
0.5
(6.1)
(99.3)
-
(3.7)
(0.2)
23.9
-
23.9
18.6
1.4
(4.5)
(0.1)
-
15.4
3.1
17.2
20.3
7.5
0.2
(0.1)
(13.3)
(0.2)
(0.3)
-
(6.2)
0.9
(5.3)
451.1
284.7
(616.2)
(12.6)
(3.4)
103.6
23.8
538.6
562.4
140.2
0.7
(6.2)
(112.6)
(0.2)
(4.0)
(0.2)
17.7
0.9
18.6
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
451.1
284.7
(616.2)
(12.6)
(3.4)
103.6
23.8
538.6
562.4
140.2
0.7
(6.2)
(112.6)
(0.2)
(4.0)
(0.2)
17.7
0.9
18.6
Financial Report 134
21. Parent entity financial information
Accounting Policy
The financial information for the parent entity, SEEK Limited, has
been prepared on the same basis as the consolidated financial
statements, except as set out below.
(i) Investments in subsidiaries, associates and joint
venture entities
Investments in subsidiaries, associates and joint venture entities
are accounted for at cost in the financial statements of SEEK
Limited. Dividends received from associates are recognised in the
parent entity’s profit or loss when its right to receive the dividend is
established, rather than being deducted from the carrying amount
of these investments.
(ii) Income tax consolidation legislation
SEEK Limited and its wholly-owned Australian subsidiaries have
elected to form an Australian income tax consolidated group.
The entities in the arrangement each account for their own current
and deferred tax amounts. These tax amounts are measured as
if each entity in the arrangement continues to be a standalone
taxpayer in its own right.
In addition to its own current and deferred tax amounts, SEEK
Limited also recognises the current tax assets/liabilities and the
deferred tax assets arising from unused tax losses and unused tax
credits assumed from the other entities in the arrangement. As a
result, the entities in the Australian income tax consolidated group
have entered into a tax funding agreement under which they:
•
fully compensate SEEK Limited for any current tax liabilities
assumed; and
• are compensated by SEEK Limited for any current tax assets
and deferred tax assets relating to unused tax losses or unused
tax credits that are assumed by SEEK Limited under the
Australian income tax consolidation legislation.
The funding amounts are determined by reference to the amounts
recognised in each entity’s financial statements. Assets or liabilities
arising under the tax funding agreement are recognised as current
amounts receivable from or payable to SEEK Limited.
(iii) Financial guarantees
Where SEEK Limited has provided financial guarantees in relation
to loans and payables of subsidiaries for no compensation, the fair
values of these guarantees are accounted for as contributions and
recognised as part of the cost of the investment.
(a) Summary financial information
The individual financial statements for the parent entity, SEEK Limited, show the following aggregate amounts:
Balance sheet
Current assets
Total assets(2)
Current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Cash flow hedge reserve
Put option reserve
Share-based payments reserve
Retained earnings(2)
Total equity
Profit for the year(2)
Total comprehensive income(2)
2021
$m
115.5
2,274.9
(262.1)
(1,473.9)
801.0
Restated
2020(1)
$m
252.6
2,405.6
(222.2)
(1,700.9)
704.7
269.2
269.2
(11.5)
-
118.7
424.6
801.0
124.2
164.7
(11.1)
(18.3)
96.1
368.8
704.7
217.5
226.9
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
(2) See Note 29 Changes in accounting policies - SEEK revised its accounting policy regarding upfront configuration costs incurred in implementing cloud computing arrangements. Comparative
information has been restated to account for the impact of the retrospectively.
SEEK Limited Annual Report 2021 135
(b) Significant transactions during the financial year
As disclosed in Note 14 Leases, SEEK recognised an impairment of $3.2m against right-of-use assets at 30 June 2021 as a result of
an agreement to sub-lease a portion of an office for an amount less that the rent being paid to the lessor.
(c) Guarantees entered into by the parent entity
The parent entity and certain subsidiaries have given unsecured guarantees in respect of the syndicated loan facility of A$612.5m
and US$552.5m. As at 30 June 2021, A$813.2m principal had been drawn down against the facility, comprising A$345.0m and
US$351.0m (2020: $1,156.7m, comprising A$467.5m and US$475.3m). Refer to Note 7 Net debt.
The parent entity and certain subsidiaries have also given unsecured guarantees in respect of any debt issued under the EMTN
Programme by Jobstreet.com Pte Ltd (Singapore) and Job DB Hong Kong Limited. As at 30 June 2021, no such debt has been issued.
The parent entity has provided an unsecured guarantee in repect of a working capital facility to Lend Me A Hand Pty Ltd, a subsidiary of
the Sidekicker Group.
The parent entity is also the guarantor in respect of a number of subsidiaries’ operating leases.
(d) Contingent liabilities of the parent entity
The parent entity did not have any contingent liabilities as at 30 June 2021 (2020: nil).
(e) Contractual commitments
Other commitments for the payment of IT and professional services, car parks under long-term contracts in existence totalled $1.9m
(2020: $3.2m).
Unrecognised Items
22. Commitments for expenditure
Within one year
Later than one year but not later than five years
More than five years
Total
2021
$m
6.0
1.8
-
7.8
2020
$m
4.3
2.2
0.1
6.6
SEEK has commitments for the payment of IT and professional services, and car parks under long-term contracts in existence at the
reporting date but not recognised as liabilities payable.
Financial Report 136
23. Contingent liabilities
Unrecognised contingent liabilities represent the possible (but not probable) cash outflow in excess of any provision. They do not
represent management’s expectation of likely outflow and are not recognised on the balance sheet.
Uncertain tax positions
As mentioned in Note 15 Provisions, Brasil Online is subject to a number of tax infraction notices from Brazilian tax authorities.
Based on advice from leading Brazilian external legal counsel, Brasil Online has estimated the most likely amounts payable including
penalties and interest and has recognised this amount as a provision.
For tax infraction notices where it is not probable that an outflow of resources will be required, a provision has not been raised.
Unrecognised contingent liabilities at 30 June 2021 amounted to BRL 145.1m (A$38.8m) (2020: BRL 148.9m (A$39.8m)) including
penalties and interest.
Other matters
From time to time, SEEK is subject to legal claims. The majority of these are subsequently proven to be without merit and resolved
with no cash outflow. At 30 June 2021, in addition to the provisions recognised in Note 15 Provisions, SEEK has unrecognised
contingent liabilities of $3.6m (2020: $2.2m) which relate to labour and civil cases in Brasil Online.
24. Events occurring after balance sheet date
(a) SEEK Growth Fund
On 11 August 2021, SEEK announced the creation of SEEK Growth Fund following the completion of a strategic review. SEEK’s
current holdings in OES and 14 ESVs will be transferred to the Fund as seed assets in exchange for units in the Fund, based on an
independently assessed fair value of A$1,2150.m. A management company will be formed to manage the Fund, led by Andrew
Bassat and a team of investment professionals from SEEK. The Fund will operate autonomously from SEEK, with greater access to
third party capital, allowing it to focus on being an investor and business builder, enabling SEEK to focus on growth opportunities in
AP&A whilst retaining its economic exposure to the investment portfolio.
On 6 August 2021, SEEK acquired a 26.3% undiluted interest in Hireup Holdings Pty Ltd (Hireup), a provider of online disability support
services which connects workers with participants, and a 38.4% undiluted interest in MyTutorWeb Limited (MyTutor), a UK based
online tutoring marketplace. SEEK will subsequently sell its interests in Hireup and MyTutor to the Fund.
(b) Remittance of proceeds from the sale of Zhaopin to SEEK’s co-investors
In June 2021, Zhaopin Limited, the holding entity for the Zhaopin operations, received AUD$308.7m of proceeds related to the
disposal of Zhaopin. These proceeds had not been distributed to shareholders at balance date and the amount is recorded in Cash
and cash equivalents at 30 June 2021.
On 5 July 2021, the amount was remitted to SEEK’s co-investors in Zhaopin.
SEEK Limited Annual Report 2021 137
Other information
25. Share-based payments
Critical accounting estimates and assumptions
Calculating the fair value
SEEK estimates the fair value of its share-based payment
arrangements at grant date, with the assistance of independent
consultants, using the Monte-Carlo simulation or similar option
pricing models to value options and rights. The estimations include
any market performance conditions and the impact of non-vesting
conditions.
Accounting Policy
The cost of share-based payments is recognised by expensing the
fair value of options or rights granted, over the period during which
the employees become unconditionally entitled to these benefits.
The impact of any service conditions and non-market vesting
conditions is excluded from the estimation of fair value, and
instead included in assumptions about the number of options that
are expected to vest. These assumptions are reviewed at the end of
each reporting period.
Where the plan will be settled by:
•
issuing equity, the corresponding entry is an increase in the
share -based payment reserve; and
• a payment in cash, the corresponding entry is a liability.
(a) Types of share-based payments
• SEEK Limited: Share-based benefits are provided to SEEK Limited Executives and certain employees via Performance Rights,
Equity Rights, Restricted Rights and/or Wealth Sharing Plan Options/Rights.
• OCC: The options are held over the ordinary share capital of Online Career Centre Mexico, S.A.P.I de CV.
• JobAdder: The options are held over the ordinary share capital of JobAdder Operations Pty Ltd.
If the options granted by OCC or JobAdder were to be exercised and satisfied by issuing new shares, SEEK’s interest in the respective
businesses would be diluted.
(b) Financial impact of share-based payment transactions
The table below summarises the share-based payment expense recognised during the year as part of the employee benefits:
2021
2020(1)
AP&A
ESVs
Corporate
Costs
$m
9.7
0.2
0.8
1.0
11.7
$m
-
0.3
-
-
0.3
$m
7.9
-
-
0.7
8.6
Total
$m
17.6
0.5
0.8
1.7
20.6
AP&A
$m
8.4
-
0.4
0.6
9.4
Corporate
Costs
$m
4.9
-
-
0.5
5.4
ESVs
$m
-
-
-
-
-
Total
$m
13.3
-
0.4
1.1
14.8
SEEK Limited options and rights
Subsidiary plans
Cash-settled share-based payments
Other associated costs
Total share-based payments expense
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
Financial Report 138
25. Share-based payments continued
(c) Options and rights - SEEK Limited
SEEK Limited Executives and selected senior level employees receive one Equity Right or one Performance Right as part of their
Total Remuneration Opportunity each year. Equity Rights and Performance Rights vest and convert into a number of shares
following the end of the financial year based on a pre-determined allocation price which references the SEEK Limited share price.
For Performance Rights, vesting is also linked to the performance of the individual over the relevant financial year. Shares allocated
are subject to a 12-month disposal restriction following vesting.
A limited number of senior level employees may receive a one-off grant of Restricted Rights. Vesting of Restricted Rights is subject
to the performance of the individual and continued employment over the vesting period. Upon vesting, each Restricted Right
converts into one share and the resulting shares are not subject to a disposal restriction period.
SEEK Limited Executives and a small number of selected senior level employees also receive Wealth Sharing Plan Options and/
or Rights at their election. Vesting of Wealth Sharing Plan Options and Rights is subject to the achievement of a three year share
price hurdle performance condition. Vested Wealth Sharing Plan Options and Rights are subject to a 12-month exercise restriction,
following which they can be exercised (Rights at nil cost; Options upon payment of an exercise price equivalent to the share price
hurdle) and convert into an equivalent number of shares.
2021
Grant date
Expiry
date
(years)
Exercise
price
Opening
balance
Granted
during the
year
Exercised
during the
year
Lapsed
during the
year
Forfeited
during the
year
Closing
balance
Vested and
exercisable
at 30 June
Number of options or rights
Wealth Sharing Plan Options
11 June 2019
Sep 2019 - Nov 2019
2 November 2020
25 November 2020
12 March 2021
Total
Wealth Sharing Plan Rights
Oct 2016 - Dec 2016
Oct 2017 - Dec 2017
Oct 2018 - Jun 2019
Sep 2019 - Mar 2020
2 November 2020
25 November 2020
Total
Restricted Rights
25 February 2021
25 February 2021
Total
Equity Rights
Oct 2019 - Mar 2020
2 November 2020
25 November 2020
Total
Performance Rights
Oct 2019 - Apr 2020
2 November 2020
25 February 2021
12 March 2021
Total
Total All Plans
5
5
5
5
5
5
5
5
5
5
5
1
2
2
2
2
2
2
2
2
$20.95
$23.18
$20.51
$20.51
$20.51
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
536,013
468,216
-
-
-
1,004,229
369,082
598,107
627,325
546,112
-
-
2,140,626
-
-
-
7
-
-
7
-
-
234,651
216,649
14,612
465,912
-
-
-
-
579,999
71,558
651,557
3,094
3,094
6,188
-
7
1
8
-
-
-
-
-
-
-
-
-
-
-
-
-
(94,374)
(13,793)
(144,433)
-
(252,600)
536,013
373,842
220,858
72,216
14,612
1,217,541
(369,082)
-
-
-
-
-
(369,082)
-
(598,107)
-
-
-
-
(598,107)
-
-
(4,309)
(74,100)
(54,142)
(47,705)
(180,256)
-
-
623,016
472,012
525,857
23,853
1,644,738
-
-
-
(7)
-
-
(7)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,094
3,094
6,188
-
7
1
8
69
-
-
-
69
3,144,931
-
66
2
2
70
1,123,735
(69)
-
-
-
(69)
(369,158)
-
-
-
-
-
(598,107)
-
(5)
-
-
(5)
(432,861)
-
61
2
2
65
2,868,540
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
SEEK Limited Annual Report 2021 139
2020
Grant date
Expiry
date
(years)
Exercise
price
Opening
balance
Granted
during the
year
Exercised
during the
year
Lapsed
during the
year
Forfeited
during the
year
Closing
balance
Vested and
exercisable
at 30 June
Number of options or rights
Wealth Sharing Plan Options
11 June 2019
Sep 2019 - Nov 2019
Total
5
5
$20.95
$23.18
536,013
-
536,013
-
468,216
468,216
-
-
-
Wealth Sharing Plan Rights
Oct 2015 - May 2016
Oct 2016 - Dec 2016
Oct 2017 - Dec 2017
Oct 2018 - Jun 2019
Sept 2019 - Mar 2020
Total
Equity Rights
Oct 2018 - Jun 2019
Oct 2019 - Mar 2020
Total
Performance Rights
Oct 2018 - Jun 2019
Oct 2019 - Apr 2020
Total
Total All Plans
5
5
5
5
5
2
2
2
2
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
488,034
543,263
616,292
691,182
-
2,338,771
-
-
-
-
555,100
555,100
(488,034)
(174,181)
-
-
-
(662,215)
9
-
9
-
7
7
(9)
-
(9)
58
-
58
2,874,851
-
73
73
1,023,396
(58)
-
(58)
(662,282)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
536,013
468,216
1,004,229
-
-
(18,185)
(63,857)
(8,988)
(91,030)
-
369,082
598,107
627,325
546,112
2,140,626
-
-
-
-
7
7
-
(4)
(4)
(91,034)
-
69
69
3,144,931
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The following table summarises the weighted average exercise price for the SEEK Limited plans:
:
2021 - SEEK Limited
Opening
balance
Granted
during the
year
Exercised
during the
year
Lapsed during
the year
Forfeited
during the
year
Closing
balance
Vested and
exercisable
at 30 June
Weighted average exercise price
$7.02
$8.50
2020 - SEEK Limited
Weighted average exercise price
$3.91
$10.61
-
-
-
$12.55
$9.14
-
-
$7.02
-
-
The weighted average share price at the date of exercise of options exercised during the year ended 30 June 2021 was $27.94 (2020:
$19.39).
The weighted average remaining contractual life of share options outstanding at the end of the year was 3.1 years (2020: 3.1 years)
Financial Report 140
25. Share-based payments continued
The following table shows the inputs for Wealth Sharing Plan Rights and Options granted during the year:
Grant date
2021
2 November 2020
25 November 2020
12 March 2021
2020
23 September 2019
29 November 2019
6 March 2020
Expected
price volatility
of the
company's
shares
Share
price at
grant date
Expected
dividend yield
Expiry date
30 June 2025
30 June 2025
30 June 2025
$21.33
$26.18
$27.25
30 June 2024
30 June 2024
30 June 2024
$21.69
$23.19
$20.31
29%
29%
29%
25%
25%
25%
1.2%
0.9%
1.0%
1.7%
1.7%
1.7%
Risk-free interest rate
Rights
Options
0.17%
0.17%
n/a
0.21%
0.22%
0.39%
Rights
Options
0.74%
0.67%
0.38%
0.76%
0.69%
n/a
(d) Share option plans - OCC
The table below summarises the movements in options over shares of Online Career Centre Mexico, S.A.P.I de CV.
2021 - OCC
Number of options
Grant date
Schemes issued prior to FY2014
12 May 2014
Balance at 30 June 2021
Weighted average exercise price
2020 - OCC
Schemes issued prior to FY2014
12 May 2014
Balance at 30 June 2020
Weighted average exercise price
Expiry
date
(years)
Exercise
price
(US$)
10 $145.00
10 $145.00
Opening
balance
6,460
2,951
9,411
$124.44
6,460
2,951
9,411
$124.44
-
-
n/a
-
-
n/a
-
-
n/a
-
-
n/a
Granted
during the
year
Exercised
during the
year
Lapsed
during the
year
Vested and
exercisable
at balance
date
2,038
-
2,038
$144.56
Closing
balance
2,038
-
2,038
$144.56
(4,422)
(2,951)
(7,373)
$118.88
-
-
n/a
6,460
2,951
9,411
$124.44
6,460
2,951
9,411
$124.44
The weighted average remaining contractual life of share options outstanding at the end of the year was 1.0 years (2020: 1.9 years).
(e) Share option plans - JobAdder
The table below summarises the movements in options over shares of JobAdder Operations Pty Ltd.
2021 - JobAdder
Number of options
Grant date
1 July 2020
Balance at 30 June 2021
Weighted average exercise price
Expiry
date
(years)
Exercise
price
(AUD$)
Opening
balance
Granted
during the
year
Exercised
during the
year
4 $1,208.50
-
-
n/a
521
521
$1,208.50
-
-
n/a
Expired/
lapsed
during the
year
-
n/a
Closing
balance
521
521
$1,208.50
Vested and
exercisable
at balance
date
-
-
n/a
The weighted average remaining contractual life of share options outstanding at the end of the year was 3.0 years.
SEEK Limited Annual Report 2021 141
26. Related party transactions
SEEK has identified the parties it considers to be related and the transactions conducted with those parties. Other than those
disclosed below, no other related party transactions have been identified.
(a) Transactions with equity accounted investments
Dividends and distributions received from equity accounted investments
Convertible loans advanced to equity accounted investments (i)
Convertible loans repaid or converted to equity
Revenue generated from equity accounted investments
Interest expense from equity accounted investments
Interest income from equity accounted investments
2021
$
447,473
439,629
1,641,794
1,546,840
-
131,219
Restated
2020(1)
$
610,380
1,141,579
10,074,862
970,380
78,213
15,744
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
(i) Convertible loans advanced to equity accounted investments
Convertible loans have been advanced to certain equity accounted investments in SEEK. These loans are interest-bearing and, if
converted, would convert to additional equity interests in existing investments.
(b) Amounts outstanding from equity accounted investments
Amounts receivable from equity accounted investments
Provision for doubtful debts related to amounts receivable from equity accounted investments
Amounts payable to equity accounted investments
(1) See Note 2 Discontinued operations - comparative information has been restated due to the discontinued operations of Zhaopin and SEEK Growth Fund.
(c) Transactions with key management personnel
Short-term employee benefits
Post-employment benefits
Share-based employee benefits
Other long-term benefits
2021
$
1,489,033
61,374
1,123,618
Restated
2020(1)
$
1,803,848
-
1,380,722
2021
$
6,715,370
164,382
7,114,111
499,847
14,493,710
2020
$
6,600,930
172,630
6,277,142
278,383
13,329,085
(d) Transactions with Director related parties
Some of the Non-Executive Directors hold directorships or positions in other companies or organisations. From time to time, SEEK
may provide or receive services from these companies or organisations on arm’s length terms. None of the Non-Executive Directors
were, or are, involved in any procurement or Board decision-making regarding the companies or organisations with which they have
an association.
Financial Report 142
27. Remuneration of auditors
During the year the following fees were paid or payable for services provided by the Auditor, its related practices and non-related
audit firms:
Audit services
Audit services
PricewaterhouseCoopers Australia
Network firms of PricewaterhouseCoopers Australia
Total remuneration for audit services
Non-audit services
Other assurance services
PricewaterhouseCoopers Australia
Total remuneration for other assurance services
Taxation services
PricewaterhouseCoopers Australia - compliance services
Network firms of PricewaterhouseCoopers Australia - compliance services
Network firms of PricewaterhouseCoopers Australia - due diligence services
Total remuneration for taxation services
Other services(1)
PricewaterhouseCoopers Australia
Network firms of PricewaterhouseCoopers Australia
Total remuneration for other services
Total remuneration for non-audit services
2021
$
2020
$
1,709,703
1,059,883
2,769,586
1,329,060
1,806,011
3,135,071
29,600
29,600
216,804
216,804
2,250
63,638
76,874
142,762
280,500
226,575
507,075
679,437
11,618
63,363
-
74,981
203,000
-
203,000
494,785
Total remuneration of Auditor
3,449,023
3,629,856
Non-PwC audit firms - services provided to Online Education Services Pty Ltd
Audit services
Other non-audit services
Total remuneration of non-PwC audit firms(2)
-
-
-
-
3,600
3,600
(1) Other services provided by PwC comprises mainly due diligence services.
(2) During the year the auditor of Online Education Services Pty Ltd was also engaged to provide non-audit services to other SEEK Group companies.
28. Other significant accounting policies
(a) Principles of consolidation
Subsidiaries are all entities (including structured entities) over which SEEK has control. SEEK controls an entity when SEEK
is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date on which control
is transferred to SEEK. They are deconsolidated from the date that control ceases.
Joint ventures are all entities over which SEEK has joint control with one or more other investors. Joint control exists only
when decisions about the relevant activities require the unanimous consent of the parties sharing control. Investments in joint
ventures are accounted for using the equity method of accounting, after initially being recognised at cost. Under the equity
method, the investment is shown in one line on the balance sheet, with SEEK’s share of post-acquisition profits or losses
recognised in profit or loss.
Associates are all entities over which SEEK has significant influence but not control or joint control, generally accompanying
a shareholding of between 20% and 50% of the voting rights. Investments in associates are also accounted for using the
equity method.
Accounting policies of subsidiaries, associates and joint ventures have been changed where necessary to ensure consistency
with the policies adopted by SEEK.
SEEK Limited Annual Report 2021 143
(b) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of SEEK’s entities are measured using the currency of the primary economic
environment in which the entity operates (the functional currency). The consolidated financial statements are presented in
Australian dollars, which is SEEK Limited’s functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rate on that day. Non-monetary
assets and liabilities are maintained at the exchange rate on the date of the transaction. Monetary assets and liabilities are
translated into the functional currency at the year end exchange rate.
Where there is a movement in the exchange rate between the date of the transaction and the date of settlement or the year end,
a foreign exchange gain or loss may arise. This is recognised in the Consolidated Income Statement (within finance costs),
unless the asset or liability is a qualifying cash flow hedge or net investment hedge, in which case it is deferred in equity.
(iii) Group companies
The results and financial position of all SEEK entities (none of which has the currency of a hyperinflationary economy) that have
a functional currency different from the presentation currency are translated into the presentation currency as follows:
• assets and liabilities for each balance sheet presented (including goodwill and other fair value adjustments arising on
acquisition) are translated at the closing rate at the date of that balance sheet;
•
income and expenses for each income statement and statement of comprehensive income are translated using monthly
average exchange rates; and
• all resulting exchange differences are recognised in other comprehensive income.
When a foreign operation is sold, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale.
(c) Goods and Services Tax (GST) and Value Added Tax (VAT)
Revenues, expenses and assets are recognised net of the amount of associated GST and VAT, unless the GST and VAT incurred
is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as
part of the expense.
Receivables and payables are stated inclusive of the amount of GST and VAT receivable or payable. The net amount of GST and
VAT recoverable from, or payable to, the taxation authority is included within ‘trade and other receivables’ or ‘trade and other
payables’ in the Consolidated Balance Sheet.
(d) Impairment of assets
Assets other than goodwill and intangible assets are tested for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying
amount exceeds its recoverable amount (which is the higher of the asset’s fair value less costs of disposal and value in use).
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).
(e) New and amended Accounting Standards and Interpretations
(i) New and amended Accounting Standards and Interpretations issued and effective
Refer to Note 29 Changes in accounting policies for the new Accounting Standards and Interpretations which became effective
from 1 July 2020 and the corresponding impact of those changes on SEEK’s financial results.
Apart from these changes, SEEK has not adopted any new or amended Accounting Standards and Interpretations this year that
have had a material impact on the Company.
(ii) Accounting Standards and Interpretations issued but not yet effective
A number of new accounting standards, amendments to standards and interpretations, have also been issued and will be applicable in
future periods. While these remain subject to ongoing assessment, no significant impacts on the financial statements of the Company
have been identified to date. These standards have not been applied in the preparation of these Financial Statements.
Financial Report 144
29. Changes in accounting policies
(a) Capitalisation of customisation and configuration costs incurred in implementing cloud
computing arrangements
During the year, the Group revised its accounting policy in relation to upfront configuration and customisation costs incurred
in implementing cloud computing arrangements, in response to the International Accounting Standards Board (IASB) agenda
decision clarifying its interpretation of AASB 138 Intangible Assets. The new accounting policy is presented in Note 12 Intangible
assets. Historical financial information has been restated to account for the impact of the change retrospectively.
(i) Consolidated Balance sheet as at 30 June 2020
Intangible assets
Deferred tax asset
Net assets
Retained profits
Total equity
(ii) Consolidated Balance sheet as at 30 June 2019
Intangible assets
Deferred tax asset
Net assets
Retained profits
Total equity
Published
$m
Adjustments
$m
2,550.0
58.7
1,383.5
894.4
1,383.5
(2.1)
0.7
(1.4)
(1.4)
(1.4)
Published
$m
Adjustments
$m
2,719.5
46.0
1,694.4
1,133.3
1,694.4
(9.1)
2.8
(6.3)
(6.3)
(6.3)
(iii) Consolidated Income Statement/ Statement of Comprehensive Income as at 30 June 2020
Total operating expenses
Loss before income tax expenses
Income tax expense
Loss for the year
(iv) Earnings per share at 30 June 2020
Published
$m
Adjustments
$m
(1,416.3)
(46.2)
(44.6)
(90.8)
(2.1)
(2.1)
0.7
(1.4)
Restated
$m
2,547.9
59.4
1,382.1
893.0
1,382.1
Restated
$m
2,710.4
48.8
1,688.1
1,127.0
1,688.1
Restated
$m
(1,418.4)
(48.3)
(43.9)
(92.2)
Basic earnings per share
Diluted earnings per share
(v) Consolidated Statement of Cash Flows as at 30 June 2020
Payments to suppliers and employees (inclusive of goods and services tax)
Net cash inflow from operating activities
Payment for intangible assets
Net cash outflow from investing activities
Published
$m
Adjustments
$m
(31.7)
(32.6)
(0.4)
(0.4)
Restated
$m
(32.1)
(33.0)
Published
$m
Adjustments
$m
(1,259.9)
304.3
(114.3)
(260.9)
(4.3)
(4.3)
4.3
4.3
Restated
$m
(1,264.2)
300.0
(110.0)
(256.6)
SEEK Limited Annual Report 2021 145
The financial statements have been prepared on the basis of accounting consistent with those applied in the 30 June 2020 Annual
Report, with the exception of the following new standards and amendments, which became effective from 1 July 2020:
• AASB 2018-7 Amendments to Australian Accounting Standards – Definition of Material (AASB 101 and AASB 108)
• AASB 2018-6 Amendments to Australian Accounting Standards – Definition of a Business (AASB 3)
• AASB 2019-3 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform (AASB 9, AASB 139 and
AASB 7)
• AASB 2019-5 Amendments to Australian Accounting Standards – Disclosure of the Effect of New IFRS Standards Not Yet issued in
Australia (AASB 1054)
• Conceptual Framework for Financial Reporting and AASB 2019-1 Amendments to Australian Accounting Standards – References to
the Conceptual Framework.
Apart from as disclosed below, amendments listed above did not have any impact on the amounts recognised in prior periods and
are not expected to significantly affect the current or future periods.
Interest Rate Benchmark Reform
A fundamental reform of major interest rate benchmarks is being undertaken globally, including the replacement of some interbank
offered rates (IBORs) with alternative nearly risk-free rates (referred to as ‘IBOR reform’). SEEK has exposures to IBORs on its
financial instruments that will be replaced or reformed as part of these marketwide initiatives. There is uncertainty over the timing
and the methods of transition in some jurisdictions that SEEK operates in. SEEK anticipates that IBOR reform will impact its risk
management and hedge accounting.
SEEK Treasury is managing SEEK’s IBOR transition plan. The greatest change will be amendments to the contractual terms of
SEEK’s syndicated debt facility, which contains AUD BBSW and USD LIBOR-referenced floating-rate debt, and the associated
interest rate swaps and corresponding update of hedge designations. SEEK expects that change to the interest rate benchmarks
will not result in any significant modification gains or losses. However, the changed reference rate may also affect other systems,
processes, risk and valuation models, as well as having tax and accounting implications.
Relief applied
SEEK has applied the following reliefs that were introduced by the amendments made to AASB 9 Financial Instruments in October
2019:
• When considering the ‘highly probable’ requirement, SEEK has assumed that the IBOR interest rates on which SEEK’s hedged debt
is based do not change as a result of IBOR reform.
•
In assessing whether the hedge is expected to be highly effective on a forward-looking basis, SEEK has assumed that the interest
rates on which the cash flows of the hedged debt and the interest rate swaps that hedge it are based are not altered by IBOR
reforms.
• SEEK has not recycled the cash flow hedge reserve relating to the period after the reforms are expected to take effect.
In calculating the change in fair value attributable to the hedged risk of floating-rate debt, SEEK has made the following assumptions
that reflect its current expectations:
• The floating-rate debt will move to the new IBOR rates during 2022 and the spread will be similar to the spread included in the
interest rate swap used as the hedging instrument.
• No other changes to the terms of the floating-rate debt are anticipated.
• SEEK has incorporated the uncertainty over when the floating-rate debt will move to the IBOR reform rates, the resulting
adjustment to the spread, and the other aspects of the reform that have not yet been finalised by adding an additional spread to
the discount rate used in the calculation.
No other changes were required to any of the amounts recognised in the current or prior period as a result of these amendments.
Financial Report 146
DIRECTORS’ DECLARATION
In the directors’ opinion:
a. the financial statements and notes set out on pages 81 to 145 are in accordance with the Corporations Act 2001, including:
i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements; and
ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its performance for the
financial year ended on that date; and
b. there are reasonable grounds to believe that SEEK Limited will be able to pay its debts as and when they become due and payable.
Page 81 confirms that the financial statements also comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board.
The directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section 295A of
the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
Graham Goldsmith
Chairman
Melbourne
24 August 2021
SEEK Limited Annual Report 2021 INDEPENDENT AUDITOR’S REPORT
147
Independent auditor’s report
To the members of SEEK Limited
Report on the audit of the financial report
Our opinion
In our opinion:
The accompanying financial report of SEEK Limited (the Company) and its controlled entities
(together the Group) is in accordance with the Corporations Act 2001, including:
(a) giving a true and fair view of the Group's financial position as at 30 June 2021 and of its
financial performance for the year then ended
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The Group financial report comprises:
•
•
•
•
•
•
•
the consolidated balance sheet as at 30 June 2021
the consolidated statement of comprehensive income for the year then ended
the consolidated statement of changes in equity for the year then ended
the consolidated statement of cash flows for the year then ended
the consolidated income statement for the year then ended
the notes to the consolidated financial statements, which include significant accounting policies
and other explanatory information
the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
Independent Auditor’s Report
148
Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial report as a whole, taking into account the geographic and management
structure of the Group, its accounting processes and controls and the industry in which it operates.
Materiality
•
For the purpose of our audit we used overall Group materiality of $9 million. This represents
approximately 5% of the Group’s continuing operations adjusted profit before tax, adjusted for significant
infrequently occurring items such as impairment charges.
• We applied this threshold, together with qualitative considerations, to determine the scope of our audit
and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements on
the financial report as a whole.
• We utilised a 5% threshold based on our professional judgement, noting it is within the range of commonly
acceptable thresholds. We chose Group continuing operations adjusted profit before tax because, in our
view, it is the benchmark against which the performance of the Group is most commonly measured and
best reflects the expected size and scale of the Group going forward.
Audit Scope
• Our audit focused on where the Group made subjective judgements; for example, significant accounting
estimates involving assumptions and inherently uncertain future events.
• Audits of the most financially significant operations being, SEEK Employment Australia, Zhaopin, SEEK
Asia and Online Education Services, were conducted.
•
•
Specified audit procedures over Brasil Online, OCC, Go1 and FutureLearn were conducted.
The audit of Zhaopin for the period up to disposal was performed by auditors operating under our
instruction (component auditors).
• Where audit work was performed by component auditors, we determined the level of involvement we
needed to have in their audit work to be able to conclude whether sufficient appropriate audit evidence had
been obtained as a basis for our opinion. This included active dialogue throughout the year through phone
calls, discussions and written instructions. We tailored our audit approach accordingly, considering factors
SEEK Limited Annual Report 2021
149
such as differing regulations, compliance and tax regimes and sovereign risks in relation to foreign
ownership.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report for the current period. The key audit matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. Further, any commentary on the outcomes of a
particular audit procedure is made in that context. We communicated the key audit matters to the
Audit and Risk Committee.
Key audit matter
Accounting for the partial disposal of
Zhaopin
(Refer to note 1 and 2 – segment information and
discontinued operations)
On 1 May, the Group disposed of 37.6% of its interests
in Zhaopin, reducing its previously held controlling
stake of 61.1% and retaining an interest of 23.5%.
Zhaopin has been presented in the financial report as
a discontinued operation up to the point of disposal.
The Group has recognised a gain on sale of $628.9m
which has been recorded in the Consolidated Income
Statement, within discontinued operations. At the
time of disposal, the Group’s retained interest in
Zhaopin of 23.5% has been recorded at fair value of
$521.1m as an equity accounted investment.
The partial disposal was a key audit matter because of
the transaction being non-routine and having
significant impact to the financial statements.
How our audit addressed the key audit
matter
We performed the following procedures amongst
others:
• Read the terms of the sale and purchase
agreements.
• Agreed the proceeds on sale to the bank
statement and completion documents.
• Assessed the carrying value of assets and
liabilities sold.
• With assistance from PwC tax specialists,
considered the Group’s assessment of the
taxation impact of the sale by evaluating the
appropriateness of tax liabilities on the gain.
• Evaluated the adequacy of the disclosures
made in the financial statements in
accordance with the requirements of
Australian Accounting Standards.
Classification of Assets held for sale and
discontinued operations for SEEK Growth
Fund disposal group
(Refer to note 2)
The investments expected to be subject to disposal
into SEEK Growth Fund have been classified as held
for sale. At this time the portfolio of assets are treated
as a disposal group and measured at their carrying
value. The financial results of these investments have
We performed the following procedures amongst
others:
• Read the relevant business plans and board
minutes to develop an understanding of the
Group’s future intentions and probabilities of
a disposal as at the date of assessment.
• Evaluated the Group’s assessment criteria of
classification as held for sale against the
applicable Australian Accounting Standards.
Independent Auditor’s Report
150
Key audit matter
been presented in the financial report as discontinued
operations for the year.
This was considered a key audit matter because of the
judgement required by the Group in determining the
appropriateness of classifying the disposal group as
held for sale. This assessment is complex due to the
plans and intentions of the Group to deconsolidate the
Fund in the future. There is judgement involved in
determining the passing of control from SEEK to the
Fund given the Fund is expected to run autonomously
and hold key decision making rights, despite retaining
the majority of financial interest in the Fund.
Valuation of goodwill and indefinite lived
intangible assets
(Refer to note 12 - intangible assets) $1,017.6m
Goodwill and $160.3m of indefinite lived intangible
assets
The year end Consolidated Balance Sheet includes
$1,017.6m of goodwill and $160.3m of indefinite lived
intangible assets that are subject to an annual
impairment assessment by the Group. During the
year, the Group recognised total impairment charges
of $43.7m in relation to indefinite lived intangible
assets.
The Group’s annual impairment assessment is
performed at the lowest level at which the Group
could allocate the goodwill of an asset which generates
cash flows that are largely independent of cash flows
from other assets, which is referred to as a cash
generating unit (CGU). The annual impairment
assessment is also carried out on indefinite lived
intangible assets.
The valuation models used by the Group to perform
the impairment assessment are based on cash flow
forecasts that use key assumptions including, revenue,
operating costs, capital expenditure assumptions,
discount rates and terminal growth rates. Future cash
flows are discounted using a post-tax discount rate
specific to the individual CGU. The cash flow forecast
How our audit addressed the key audit
matter
• Evaluated the adequacy of the disclosures
made in the financial statements in
accordance with the requirements of
Australian Accounting Standards.
We evaluated whether the allocation of the Group into
CGUs was consistent with our knowledge of the
Group’s operations and internal Group reporting.
For the significant CGUs of Brasil Online, OCC and
SEEK Asia, which are valued by the Group using fair
value less costs of disposal models (the models), our
audit procedures included, amongst others:
•
Testing the mathematical accuracy and
integrity of the calculations in the models.
• Considering the historical accuracy of the
Group’s forecasts by comparing the forecasts
used in the prior year models to the actual
performance.
• Assessing the forecasted cash flow growth
assumptions including considering historic
and current performance and the historic
growth performance of similar established
businesses within the SEEK portfolio.
•
Together with PwC valuation experts,
comparing the forecast terminal growth rates
(used to estimate future cash flows) and the
post-tax discount rates used in the models to
external market data.
• Comparing the Group’s valuations to external
data sources including broker reports.
SEEK Limited Annual Report 2021
151
Key audit matter
How our audit addressed the key audit
matter
has been derived from approved budgets and the
Group’s long term forecasting.
We considered the valuation of goodwill and
indefinite lived intangible assets to be a key audit
matter due to the size of the balances and because
subjective changes in key assumptions can have a
material impact on the valuation.
• Evaluating the reasonableness of disclosures
in the financial report in light of the
requirements of Australian Accounting
Standards. In particular, we considered the
adequacy of the disclosures made in note 12 to
the financial statements which explain that
there is significant estimation uncertainty in
relation to the valuation of goodwill and
indefinite lived intangible assets.
Our audit procedures over the valuation of, and
accounting for, investments in unlisted equity
instruments and equity accounted investments
included:
● Inspecting a sample of signed shareholder
agreements to develop an understanding of the
underlying terms, arrangements and the
appropriate accounting treatment.
● Assessing, for a sample of additions to new or
existing equity accounted investments during the
year, the Group's determination of whether it has
significant influence, joint control or control.
● For equity accounted investments, considering the
appropriateness of the Group’s impairment
assessment against the requirements of Australian
Accounting Standards.
● For investments in equity instruments,
considering the appropriateness of the Group's
valuation methodology against the requirements
of Australian Accounting Standards.
● Evaluating the reasonableness of disclosures in the
financial report in light of the requirements of
Australian Accounting Standards.
Valuation of, and accounting for, equity
accounted investments and equity
instruments
(Refer to note 2 – discontinued operations, note 9 -
financial instruments and fair value measurement
and note 20 - interests in equity accounted
investments)
As at 30 June 2021 the Consolidated Balance Sheet
includes investments accounted for under the equity
method amounting to $562.4m, and investments in
equity instruments amounting to $10.3m. Further to
this, the Consolidated Balance Sheet includes Assets
held for sale for SEEK Growth Fund disposal group.
This includes other financial assets of $324.4m which
are predominately made up of investment in equity
instruments and $295.5m of investments accounted
for under the equity method (see note 2(b)iii).
The Zhaopin partial disposal (see Key Audit Matter
above) has resulted in the recognition of an equity
accounted investment of $521.1m (see note 2(b)iv).
We considered the valuation of, and accounting for,
equity accounted investments and other unlisted
equity instruments a key audit matter due to the:
● Large number of investments held by the Group,
each with varying terms, which creates complexity
in determining the appropriate accounting
treatment.
● Subjectivity and judgement required by the Group
in determining the carrying value for equity
Independent Auditor’s Report
152
Key audit matter
How our audit addressed the key audit
matter
accounted investments and the fair value for
equity instruments.
Other information
The directors are responsible for the other information. The other information comprises the
information included in the annual report for the year ended 30 June 2021, but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
SEEK Limited Annual Report 2021
153
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of
our auditor's report.
Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in pages 23 to 40 of the directors’ report for the
year ended 30 June 2021.
In our opinion, the remuneration report of SEEK Limited for the year ended 30 June 2021 complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.
PricewaterhouseCoopers
Chris Dodd
Partner
Melbourne
24 August 2021
Independent Auditor’s Report
154
SHAREHOLDER
INFORMATION
The shareholder information set out below was applicable as at 10 September 2021.
A. Distribution of shareholders
Analysis of numbers of ordinary shareholders by size of holding:
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 +
Rounding
Total
Total holders
Shares
% of Issued
Capital
19,741
6,922
833
431
60
6,710,162
15,149,567
5,835,738
8,973,560
317,171,163
27,987
353,840,190
1.90
4.28
1.65
2.54
89.64
(0.01)
100.00
There were 412 holders of less than a marketable parcel of ordinary shares.
B. Twenty largest quoted equity security holders
The names of the twenty largest registered holders of quoted equity securities are listed below:
Name
HSBC Custody Nominees (Australia) Limited
JP Morgan Nominees Australia Pty Limited
Citicorp Nominees Pty Limited
National Nominees Limited
BNP Paribas Nominees Pty Ltd (Agency Lending DRP a/c)
Kiteford Pty Ltd (Andrew Bassat Family a/c)
BNP Paribas Noms Pty Ltd (DRP)
Mr Andrew Reuven Bassat
Australian Foundation Investment Company Limited
HSBC Custody Nominees (Australia) Limited (NT-Comnwlth Super Corp a/c)
BNP Paribas Nominees Pty Ltd Six Sis Ltd (DRP a/c)
Netwealth Investments Limited (Wrap Services a/c)
Citicorp Nominees Pty Limited (Colonial First State Inv a/c)
Mutual Trust Pty Ltd
Mr Roger William Allen
Netherlane Pty Ltd (Paul Bassat Family a/c)
BNP Paribas Noms (NZ) Ltd (DRP)
Pacific Custodians Pty Limited (SEK Plans Ctrl a/c)
BNP Paribas Nominees Pty Ltd Hub24 Custodial Serv Ltd (DRP a/c)
Pacific Custodians Pty Limited (Employee Share Tst a/c)
Top 20 holders of ordinary fully paid shares (total)
Other shareholders
Total
Unquoted equity securities
Options/rights issued to take up ordinary shares under SEEK’s equity plans:
Wealth Sharing Plan Rights
Wealth Sharing Plan Options
Restricted Rights (1)
(1) Restricted Rights are issued to Malaysian-based SEEK Equity Plan participants in lieu of Deferred Shares.
Ordinary Shares
Number Held
117,504,116
74,418,360
39,421,734
22,781,866
14,025,011
11,250,113
6,144,409
3,817,982
3,640,633
2,421,893
1,876,087
1,800,811
1,648,475
1,147,061
1,012,720
1,011,245
991,653
966,208
690,374
636,952
307,207,703
46,632,487
353,840,190
% of Issued
Capital
33.21
21.03
11.14
6.44
3.96
3.18
1.74
1.08
1.03
0.68
0.53
0.51
0.47
0.32
0.29
0.29
0.28
0.27
0.20
0.18
86.82
13.18
100.00
Number held
1,377,534
1,217,541
20,797
Number of
holders
32
7
6
SEEK Limited Annual Report 2021 Shareholder Information
155
C. Substantial Holders
Substantial holders in the company are set out below:
FIL Limited and FIL Investment Management (Australia) Limited
BlackRock Inc and subsidiaries
Pinnacle Investment Management Group Limited and subsidiaries
Number held(1)
25,709,706
21,321,645
18,104,437
% issued
capital
7.27
6.03
5.12
(1) Number of shares held by substantial shareholders is based on the most recent notifications lodged by substantial shareholders with the ASX.
D. Voting Rights
The voting rights attaching to each class of equity securities are set out below:
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Wealth Sharing Plan Options and Rights
No voting rights.
Restricted Rights
No voting rights.
Five Year Financial Summary 156
FIVE YEAR FINANCIAL SUMMARY
Operating Results
Sales revenue from continuing operations
ANZ
SEEK Asia
Brasil Online
OCC
SEEK Learning
AP&A Other
Zhaopin
Online Education Services
Early Stage Ventures
Sales revenue from discontinued operations
Zhaopin
SEEK Growth Fund
Total sales revenue
Segment EBITDA from continuing operations(2)
Segment EBITDA from discontinued operations(2)
Total Segment EBITDA(2)
Total Segment EBITDA to sales (%)
Share of results of equity accounted investments from continuing operations
Share of results of equity accounted investments from discontinued operations
Net profit after tax from continuing operations
Net profit after tax from discontinued operations
Total Net profit after tax (NPAT)
Non-controlling interests from continuing operations
Non-controlling interests from discontinued operations
Profit for the year attributable to owners of SEEK Limited from continuing operations
Profit for the year attributable to owners of SEEK Limited from discontinued operations
Total Profit for the year attributable to owners of SEEK Limited
2021
$m
2020(1)
$m
2019
$m
2018
$m
2017
$m
541.0
145.6
30.5
19.2
-
1.2
-
-
387.2
162.9
52.4
25.1
-
2.0
-
-
22.8
21.0
577.1
253.7
749.6
177.2
440.0
176.6
64.1
26.5
-
2.5
647.9
127.5
52.2
n/a
n/a
409.7
151.8
74.9
29.0
-
19.2
468.1
119.4
27.4
n/a
n/a
355.9
139.7
87.3
29.4
2.6
14.0
372.9
28.0
5.4
n/a
n/a
1,591.1
1,577.4
1,537.3
1,299.5
1,035.2
n/a
n/a
455.0
29.6%
(16.5)
n/a
n/a
n/a
198.4
n/a
n/a
431.2
33.2%
(6.2)
n/a
n/a
n/a
90.0
n/a
n/a
362.3
35.0%
4.3
n/a
n/a
n/a
362.0
(18.1)
(37.8)
(21.8)
332.0
141.6
473.6
29.8%
4.1
(8.7)
104.5
669.4
773.9
0.4
(22.1)
104.9
647.3
752.2
255.1
155.5
410.6
26.0%
(8.8)
(31.1)
(123.3)
31.1
(92.2)
2.1
(23.0)
(121.2)
8.1
n/a
n/a
n/a
(113.1)
180.3
Balance Sheet
Current assets(3)
Non-current assets
Total assets
Current liabilities(4)
Non-current liabilities
Total liabilities
Net assets
Equity
Gearing (debt/debt+equity)
2,338.0
2,262.6
4,600.6
1,284.1
1,397.8
2,681.9
1,918.7
1,918.7
36.6%
817.2
3,511.6
4,328.8
961.3
1,991.7
2,953.0
1,375.8
1,375.8
58.5%
693.2
3,557.0
4,250.2
904.6
1,651.2
2,555.8
1,694.4
1,694.4
48.6%
n/a
n/a
n/a
52.2
618.2
3,165.8
3,784.0
774.1
1,384.9
2,159.0
1,625.0
1,625.0
44.4%
n/a
n/a
n/a
340.2
841.9
2,841.1
3,683.0
550.0
1,093.1
1,643.1
2,039.9
2,039.9
32.2%
SEEK Limited Annual Report 2021 Shareholder Information
157
Per ordinary share
Dividends - interim (cents per share)
Dividends - other (cents per share)
Dividends - final (cents per share)
Dividends - total (cents per share)
Basic earnings from continuing operations (cents per share)
Basic earnings from discontinued operations (cents per share)
Total Basic earnings (cents per share)
Diluted earnings from continuing operations (cents per share)
Diluted earnings from discontinued operations (cents per share)
Total Diluted earnings (cents per share)
2021
2020(1)
-
20.0
20.0
40.0
29.7
183.3
213.0
29.6
182.0
211.6
13.0
-
-
13.0
(34.3)
2.2
(32.1)
(34.2)
1.2
(33.0)
2019
24.0
-
22.0
46.0
n/a
n/a
51.3
n/a
n/a
50.1
2018
24.0
-
22.0
46.0
n/a
n/a
14.9
n/a
n/a
13.8
2017
23.0
-
21.0
44.0
n/a
n/a
97.9
n/a
n/a
96.6
(1) Certain amounts reported for FY2020 have been restated for discontinued operations and a change in accounting policy. Refer to Note 2 Discontinued Operations and Note 29 Changes in
accounting policies, respectively, for detailed information.
(2) Segment EBITDA is earnings before interest, tax, depreciation and amortisation and excludes impairment charges, share-based payment expense, share of results of equity accounted
investments, gains/losses on investing activities and other non-operating gains/losses.
(3) At 30 June 2021, this amount includes assets deemed to be held for sale of $1,064.5m attributable to the SEEK Growth Fund disposal group. Refer to Note 2 Discontinued Operations for further
details of what comprises this amount.
(4) At 30 June 2021, this amount includes liabilities directly associated with the assets deemed to be held for sale of $69.1m attributable to the SEEK Growth Fund disposal group. Refer to Note 2
Discontinued Operations for further details of what comprises this amount.
Five Year Financial Summary 158158 SEEK Limited Annual Report 2021
OUR PURPOSE:
We help people
live more fulfilling
and productive
working lives and
help organisations
succeed.
SEEK Limited Annual Report 2021
Directors
Graham B Goldsmith
Chairman
Ian M Narev
Managing Director and
Chief Executive Officer
Andrew R Bassat
Julie A Fahey
Leigh M Jasper
Linda J Kristjanson
Michael H Wachtel
Vanessa M Wallace
Rachel Agnew
Secretary
Principal registered
office in Australia
60 Cremorne Street
Cremorne VIC 3121
AUSTRALIA
Ph: +61 3 8517 4100
Share register
Computershare Investor
Services Pty Ltd
452 Johnston Street
ABBOTSFORD VIC 3067
Ph: +61 3 9415 4000
Auditor
PricewaterhouseCoopers
2 Riverside Quay
SOUTHBANK VIC 3006
Stock exchange listing
SEEK Limited shares are
listed on the Australian
Securities Exchange
(Listing code: SEK)
Website
www.seek.com.au
ABN
46 080 075 314
Pacesetter Laser Recycled is 30% recycled and made from elemental
chlorine free bleached pulp sourced from sustainably managed sources.
It is manufactured by an ISO certified mill.
This Annual Report was printed in Australia by an organisation that is both
ISO14001 (Environmental) and ISO9001 (Quality) independently certified.
ABN 46 080 075 314
SEEK Limited Annual Report 2018
159
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