Scot Melland Chairman, President & CEO€¦ · This press release contains forward-looking...

Scot MellandChairman, President & CEO

Look to Dice for Your Staffing SolutionsForward Looking StatementThis press release contains forward-looking statements. You should not place undue reliance on those

statements because they are subject to numerous uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Forward-

looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These statements often include words such as “may,”

“will,”

“should,”

“believe,”

“expect,”

“anticipate,”

“intend,”

“plan,”

“estimate”

or similar expressions, including without limitation statements under the heading “Management's Discussion and Analysis of Financial Condition and Results of Operations.”

These statements are based on assumptions that we have made in

light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors include, but are not limited to, competition from existing and future competitors in the highly competitive developing market in which we operate, failure to adapt our business model to keep pace with rapid changes in the recruiting and career services business, failure to maintain and develop our reputation and brand recognition, failure to increase or maintain the number of customers who purchase recruitment packages, cyclicality or downturns in the economy or industries we serve, the failure to attract qualified professionals to our websites or grow the number of qualified professionals who use our websites, the failure to successfully identify or integrate acquisitions, U.S. and foreign government regulation of the Internet and taxation, our ability to borrow funds under our revolving credit facility or refinance our indebtedness and restrictions on our current and future operations under our credit facility. These factors and others are discussed in more

detail in the Company’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2010, under the headings “Risk Factors,”

“Forward-Looking Statements”

and “Management's Discussion and Analysis of Financial Condition and Results of Operations.”

You should keep in mind that any forward-looking statement made by us herein, or elsewhere, speaks only as of the date on which we make it. New risks and uncertainties come up from time to time, and it is impossible for us to predict these events or how they may affect us. We have no

obligation to update any forward-looking statements after the date hereof, except as required by federal securities laws. All statements contained in this presentation are made only as of the date of this presentation.

This presentation includes certain "Non-GAAP financial information." A reconciliation of such information to the most directly comparable GAAP data can be found in the Company’s most recent earnings release.

Look to Dice for Your Staffing SolutionsDice Holdings: Leading Specialty Career Sites

Global OnlineCompany withVertical Focus

TargetedRecruitment

Focused on Large, Diverse

Market

Traffic Rankingfor Key Dice

Brands

#1$4.3B

Look to Dice for Your Staffing SolutionsKey Brands

63%

2Q 2011Revenue

Contribution

26%

9%

Technology & Clearance

Finance

Energy

U.S.

U.K. Base 18 Global Markets

U.S. & Dubai Bases

Look to Dice for Your Staffing Solutions

$104.4

$143.9$155.0

$67.0

$110.0

$129.0

$180.0

$21.5

$77.0

$37.7

$62.5 $68.0

$49.6 $52.1

$0 .0

$2 0 .0

$4 0 .0

$6 0 .0

$8 0 .0

$10 0 .0

$12 0 .0

$14 0 .0

$16 0 .0

$18 0 .0

2 0 0 5PF 2 0 0 6 PF 2 0 0 7 2 0 0 8 2 0 0 9 2 0 10 2 0 11E

($mm)

Note: Includes eFinancialCareers pre-acquisition; not adjusted for Energy acquisitions.

Consistently Deliver Strong Profitability

Margin % 32% 36% 44% 45% 45% 40% 43%

Adjusted EBITDARevenues

Look to Dice for Your Staffing SolutionsToday’s Agenda

Thoughts on U.S. Labor Market

Solid Financial Model

Vertical Advantage & Market Dynamics

Growth Strategy

Look to Dice for Your Staffing Solutions18 Months of Private Sector Job Growth

Monthly Change in U.S. Private Sector Employment

-900

-450

0

450

900

Jan-

00

Jan-

02

Jan-

04

Jan-

06

Jan-

08

Jan-

10

Source: Bureau of Labor Statistics

(in thousands)

Look to Dice for Your Staffing SolutionsNot All Sectors are Created Equal

-600

-400

-200

0

200

400

600

800

(in thousands)

Source: Bureau of Labor Statistics

Change in Payrolls by Sector(January 2010 –

August 2011)

Professional andBusiness Services

Education and H

ealth Services

Trade, TransportationAnd U

tilities

Leisure andH

ospitality

Manufacturing

Other Services

Mining & Logging

Information

Financial Activities

Construction

Governm

ent

Look to Dice for Your Staffing SolutionsCompanies Expect to Hire More in 2H 2011

•

1,017 Companies Responded

•

Variety of Industries

•

Semi-Annual Survey May 18-24, 2011

Nearly Half (49%) noted Local Talent Shortages

DHX Hiring Survey 51% of U.S. Companies Expect to Hire MoreProfessionals in 2H of 2011 vs. 1H 2011

41% said Salaries for New Hires are Rising


44%41%

22%19%

14%

52%

0%

20%

40%

60%

2006 2007 2008 2009 2010 2011

More Difficult to Fill Positions in 2011

Source: 2011 Manpower Talent Shortage Survey Results released May 19, 2011, with more than 1,300 U.S. companies responding.

% of U.S. Companies Reporting Difficulty in Filling Positions





Growth Strategy


Post JobsSearch Resumes

AdvertiseNetwork

Recruiters & HR Vertical Focus

High ValueAudience

Efficient Reach

Pay-off

Strong ROI

Vertical Focus Leads to Superior Results

Look to Dice for Your Staffing SolutionsDHX’s Leading Career Communities

Notes: Internal Reports; Unique Visitors for energy combines Rigzone & WorldwideWorker.

~2 millionUnique Visitors

per month

1/3rd

of U.S.

Tech Pros

~1 millionUnique Visitors

per month

#1Financial

CareerCommunity

~625KUnique Visitors

per month

Oil & GasContentLeader


InternationalNorth AmericaNotes: Dice Estimates;International does not include Africa, Middle East; 2010 growth rate reflects actual not rounded

Estimate of Global Online Recruiting Market(in billions)

Online Recruitment Advertising Growing

$1.7 $2.1

$1.5 $1.7$2.2

$1.8

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

2009 2010 2011

$3.2$3.5

23%$4.3


0

200

400

600

Apr

-01

Oct

-01

Apr

-02

Oct

-02

Apr

-03

Oct

-03

Apr

-04

Oct

-04

Apr

-05

Oct

-05

Apr

-06

Oct

-06

Apr

-07

Oct

-07

Apr

-08

Oct

-08

Apr

-09

Oct

-09

Apr

-10

Oct

-10

Apr

-11

Source: Bureau of Labor Statistics JOLTS Report

(in thousands)

Professional and Business ServicesNumber of Quits

Turnover Drives Recruitment Activity

Avg.

Look to Dice for Your Staffing SolutionsTech & Finance are Tighter Labor Markets

Unemployment Rates

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11

OverallFinancialTechnology

Source: Bureau of Labor Statistics; overall unemployment rate is

seasonally adjusted –

Technology and Finance are not seasonally adjusted


-60%

-40%

-20%

0%

20%

40%

60%

Sep-

09

Dec

-09

Mar

-10

Jun-

10

Sep-

10

Dec

-10

Mar

-11

Jun-

11

Sep-

11

Source: Dice.com

Note: Yr/Yr Change in job postings measured at first business day of month as published in Dice Report and eFinancialCareers

Insights

Recruiting Activity Up Significantly

-60%

-40%

-20%

0%

20%

40%

60%

Sep-

09

Dec

-09

Mar

-10

Jun-

10

Sep-

10

Dec

-10

Mar

-11

Jun-

11

Sep-

11

Technology Financial Services

Source: eFinancialCareers.com

Year/Year Change in Job Postings

Look to Dice for Your Staffing SolutionsTraditional Generalists Losing Share

Online Recruiting LeadersN.A. Quarterly Revenue Index

Sources: Company Reports; 3Q, 4Q 2010 and 1Q, 2Q 2011 excludes estimated HotJobs Revenues from Monster N.A. Revenues

Tech & Clearance Revenues Monster N.A. Revenues CareerBuilder N.A. Network Revenues

020406080

100120140160180

1Q 2

006

2Q 2

006

3Q 2

006

4Q 2

006

1Q 2

007

2Q 2

007

3Q 2

007

4Q 2

007

1Q 2

008

2Q 2

008

3Q 2

008

4Q 2

008

1Q 2

009

2Q 2

009

3Q 2

009

4Q 2

009

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

`

170

103

69

Look to Dice for Your Staffing SolutionsCompetitive Landscape Changing

Estimate of Online Recruiting Market

$4.3

bn

InternationalNorth America

Likely Share Shifts

•

Traditional Generalists

Sources: Dice Estimates and Company Reports

•

Dice/Specialists

•

LinkedIn/Social

2011 Growth

+23%

Look to Dice for Your Staffing SolutionsCompeting with LinkedIn: Many Customers Use Both

LinkedInAdvantages

•

Large General Database

•

Perception of “Passive” Candidates

•

1-1 Connectivity across Users

•

Mid-Senior Level Sourcing

•

Vertical Focus/Targeted Audiences

•

“Career-Minded”

Users with Complete Profiles

•

1-1 Connectivity with Talent Networks/Forums

•

Fast, Efficient Candidate Contact/Response

DHX Career SitesAdvantages





Growth Strategy

Look to Dice for Your Staffing SolutionsStrong Growth in Core Verticals

Key Drivers

•

Customer Growth

•

Energy Vertical

•

Geographic Expansion

Source: Dice Holdings Earnings Press Releases

Revenues

40%

$129.0

$180.0

$0.0

$40.0

$80.0

$120.0

$160.0

$200.0

2010 2011E

($mm)


3/31/08

9,150

Peak

8,050

6/30/1112/31/09

5,900

Bottom

Benefitting from Customer Recovery…

Dice.com Recruitment Package Customers

Actual GoalSource: Dice Holdings Earnings Press Releases

Presenter

Presentation Notes

In three quarters, we are a third of the way back to peak. At the base level of service, annualized that would mean approximately


$900$867

$921

$853 $849 $853$859 $854$836

$815 $808 $815 $825 $839

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q1

2009

Q2

2009

Q3

2009

Q4

2009

Q1

2010

Q2

2010

Q3

2010

Q4

2010

Q1

2011

Q2

2011

Average Monthly Revenue per Dice.com Recruitment Package Customer

… and Higher Service Levels

$0

$850

~~

Source: Dice Holdings Earnings Press Releases

…and Slightly Higher Pricing

$950

Presenter

Presentation Notes

Seeing more upticks in service levels than anticipated In addition, have recently increased the price point on the entry-level 1-month package from $895 to $995 Likewise, have successfully rolled back some promotions on the annual contracts. To achieve a higher monthly revenue per customer.

Look to Dice for Your Staffing SolutionsDice.com’s Market Opportunity

Large Direct Hiring & Major Staffing, Recruiting &

Consulting Firms

Small-to-Mid Staffing, Recruiting & Consulting Firms

Small-to-Mid Direct Hiring Companies

% of Revenue

46%

16%

38%

Best Prospects

9,000

2,000

23,000

Look to Dice for Your Staffing SolutionsGrowing eFinancialCareers

2009 Revenues 2014 Target

$24

$18

$6

$12

UK

($ mm)

eFinancialCareers Revenues

2010 Incremental Revenues

EMEAAPAC NA


NYMEX Light Sweet Crude Front Month Future (1/2000-8/2011)

Demand for Oil & Gas (and Oil Price) Drives Employment

Infrastructure Investments will Require Talent

Approx. 20,000 Oil & Gas entities in the U.S. (~600 current customers )

Alternative Energy Initiatives should Add to Turnover

Large Opportunity in Energy Recruiting

Look to Dice for Your Staffing SolutionsMarket Expansion

eFC

International eFC

North America EnergyCurrent Dice Holdings





Growth Strategy


$21.3

$0.0

$10.0

$20.0

$30.0

$40.0

1H 2010 1H 2011

2Q 2011 Results: Strong Growth, Increasing Profitability

Revenue

$0.0

$30.0

$60.0

$90.0

1H 2010 1H 2011

($mm)

Margin % 37% 41%

($mm) ($mm)

Adjusted EBITDA Free Cash Flow

$19.6

$0.0

$10.0

$20.0

$30.0

$40.0

1H 2010 1H 2011

+50%

+63% +115%

$34.4

1Q 2Q

$34.7

$85.0

$56.7

Look to Dice for Your Staffing SolutionsHigh Margins, Flexible Financial Model

-

~75% of Revenues under contract at the start of a quarter

-

>80% under Annual Contract

-

Matching Marketing Spend to Activity Levels

-

Leverage in Cost of Revenues and G&A

-

40-45% Adjusted EBITDA margin long-term target

-

Low Cap-Ex-

Contracts Generally Paid in Advance

Predictable Revenues

Free Cash Flow

Discretionary Expenses

High Margins


$0.0

$20.0

$40.0

$60.0

2006 2007 2008 2009 2010 6 MO 2011

Quarterly Free Cash Flow

Strong Free Cash Flow

1Q 2Q 3Q 4Q

$52.1

$38.1

$50.2

$19.8

$42.4

$34.7

(in millions)

Look to Dice for Your Staffing SolutionsBusiness Outlook

2011E

Total Revenue

Margin

EBITDA

$ 34.3

2010

$ 13.9

40% 43%

$ 20.0

$ 46.5

Note: 3Q 2011and 2011 estimated financial performance as detailed in Q2 2011 Earnings press release, dated July 26, 2011

Yr/Yr Growth 35%

Yr/Yr Growth 44%

2010 2011E

40%

$ 52.1

$ 129.0

43%

$ 180.0

$ 77.0

40%

48%

2010-2014 CAGR ~20% with 40-45% EBITDA Margins

Third Quarter Full Year

Look to Dice for Your Staffing SolutionsDice Holdings Highlights

Vertical Focus = Strong Competitive Advantage

Small Share of Large Global Market

Sizeable Growth Opportunities for Technology, Finance and Energy Verticals

Excellent Margins coupled with Strong Cash Generation

Scot MellandChairman, President & CEO

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