Investor Presentation … · Look to Dice for Your Staffing Solutions This press release contains...

Investor PresentationSan Francisco, CADecember 1, 2011

Look to Dice for Your Staffing SolutionsToday

Thoughts on the Labor Markets, Recruiting Market and Our Growth Strategy

The Customer/Industry Perspective

The Customer Pitch

Financial Discussion

Q&A

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

64%

3Q 2011Revenue

Contribution

25%

9%

Technology & Clearance

Finance

Energy

U.S.

U.K. Base 18 Global Markets

U.S. & Dubai Bases

Look to Dice for Your Staffing Solutions

Post JobsSearch Resumes

AdvertiseNetwork

Recruiters & HR Vertical Focus

High ValueAudience

Pay-off

Strong ROI

Vertical Focus Leads to Superior Results

Efficient Reach

Fast Response


$104.4

$143.9$155.0

$67.0

$110.0

$129.0

$179.3

$21.5

$77.6

$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)

Consistently Delivering Strong Profitability

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

Adjusted EBITDARevenues

Note: 2005/2006 proforma for eFinancialCareers acquisition; not adjusted for Energy acquisitions.


LABOR MARKETS

Look to Dice for Your Staffing SolutionsLabor Markets Not Great, but 20 Months of 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)


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 Increasing for Professionals

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


-100% +100%0%

Change in Dice Job Postings(Yr/Yr)

Tech Recruiting Strong Across Many Markets

Silicon Valley+19% yr/yr

New York+5% yr/yr

Atlanta+35% yr/yr

Note: Based on percentage change in Dice.com job postings by state measured at November 1, 2011

Portland+47% yr/yr

Washington+5% yr/yr

Boston+27% yr/yr

Los Angeles+12% yr/yr

Chicago+21% yr/yr

Look to Dice for Your Staffing SolutionsFinancial Services Recruiting Slowed

eFinancialCareers Job Postings

0

2,000

4,000

6,000

8,000

10,000

12,000S

ep-0

8

Nov

-08

Jan-

09

Mar

-09

May

-09

Jul-0

9

Sep

-09

Nov

-09

Jan-

10

Mar

-10

May

-10

Jul-1

0

Sep

-10

Nov

-10

Jan-

11

Mar

-11

May

-11

Jul-1

1

Sep

-11

Nov

-11

Note: eFinancialCareers job postings by region measured 1st business day of the month.

UK Continental Europe & Middle East Asia Pacific US

Look to Dice for Your Staffing SolutionsStrong Hiring in Oil & Gas

Change in U.S. Oil & Gas Employment

-60,000

-40,000

-20,000

0

20,000

40,000

60,00020

00

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

Note: Bureau of Labor Statistics combined categories of oil and gas extraction and support activities for oil and gas operations.


ONLINE RECRUITING MARKET


InternationalNorth AmericaNotes: Dice Estimates;International does not include Africa, Middle East.

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

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/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


($mm)

Doubling the Company (2010-2014)

$129.0

$179.3

$258.0

$0.0

$100.0

$200.0

$300.0

2010 2011E 2014 Goal

Revenues

• Customer Growth

• Energy Vertical

• Geographic Expansion

Key Drivers

40-45%Margins

Look to Dice for Your Staffing SolutionsLeading Position = Adding Customers

Dice.com Recruitment Package CustomersNet Change – End of Period

1,100

-1,100

-1,700

1,100 1,250

-2,000

-1,000

0

1,000

2,00020

07

2008

2009

2010

9MO

2011

Source: Dice Holdings Earnings Press Releases


Average Monthly Revenue per Dice.com Recruitment Package Customer

Source: Dice Holdings Earnings Press Releases

Leading Position = Higher Service Levels

$936

$808$859

Q1

2006

Q3

2006

Q1

2007

Q3

2007

Q1

2008

Q3

2008

Q1

2009

Q3

2009

Q1

2010

Q3

2010

Q1

2011

Q3

2011

$0

$850

~~

$950

$750

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 2014 Target

$24

$18

$6

$12

UK

($ mm)

Finance Revenues

2010 Growth

EMEAAPAC NA

2011E Growth


Expand Sales & Marketing outside North America

Increase Ad Inventory

Rigzone Growth Initiatives

Enhance & Expand Data Services

Produce More Recruitment Events

Look to Dice for Your Staffing SolutionsGlobalizing Rigzone

2011 Branding & Careers Mix

66%

15%

Note: Dice Holdings Energy segment sales by originating region (in dollars.)

5%

4%

1%6%

1%

Look to Dice for Your Staffing SolutionsDice Holdings Market Expansion

eFC International eFC North America EnergyCurrent Dice Holdings


($mm)

Doubling the Company (2010-2014)

$129.0

$179.3

$258.0

$0.0

$100.0

$200.0

$300.0

2010 2011E 2014 Goal

Revenues

• Customer Growth

• Energy Vertical

• Geographic Expansion

Key Drivers

40-45%Margins

Joe WilkieSales Manager, National Accounts

Look to Dice for Your Staffing SolutionsCustomer Panel

Rafael Palacios Torrech Hewlett Packard

Jeff Mitchell Mitchell Group

Ryan Christoi KRT Marketing

Jeff Winter Gravity People

Email Questions to [email protected]

Mike DurneySVP, Finance & CFO


$35.1

$0.0

$20.0

$40.0

$60.0

9MO 2010 9MO 2011

3Q 2011 Results: Strong Growth, Increasing Profitability

Revenue

$91.1

$131.8

$0.0

$30.0

$60.0

$90.0

$120.0

$150.0

9MO 2010 9MO 2011

($mm)

Margin % 39% 42%

($mm) ($mm)

Adjusted EBITDA Free Cash Flow

$31.2

$0.0

$20.0

$40.0

$60.0

9MO 2010 9MO 2011

+36% +52%+33%

$55.6

1Q 2Q

$50.2

3Q


$179.3

$129.0

$110.0

$67.0

$155.0$143.9

$104.4

$52.1$49.6

$68.0$62.5

$37.7

$77.6

$21.5

$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

Note: 2005/2006 proforma for eFinancialCareers acquisition; not adjusted for Energy acquisitions.

Record Revenues and EBITDA in 2011

($mm)

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

Actual/Estimated Revenues Actual/Estimated Adjusted EBITDA


$0.0

$40.0

$80.0

$120.0

2007 2008 2009 2010 2011E

($mm)

Key Brands Drive Strong Performance

Revenues by Segment

Energy OtherFinanceTech & Clearance


($mm)

$0.0

$6.0

$12.0

$18.0

2009 2010 2011E

$9.7 $10.2

$15.6

EBITDA Margin % 45% 51% 45%

1Q 2Q 3Q 4Q 4QE

64%

Pro-Forma Energy Revenues

Terrific Growth and More Opportunity

Look to Dice for Your Staffing SolutionsEnergy: Sources of Revenue

YTD 2010 YTD 2011

CareersOtherAdvertising

Data

Events

56%

19%

10%

9%

5%

Note: Does not foot due to rounding.


CASH FLOW & PRIORITIES FOR USE


$0.0

$20.0

$40.0

$60.0

2006 2007 2008 2009 2010 9 MO 2011

Quarterly Free Cash Flow

Strong Free Cash Flow

1Q 2Q 3Q 4Q

$52.1

$38.1

$50.2

$19.8

$42.4

$50.2


Acquisitions

Cash Priorities

Share Repurchase

Investing for Organic Growth


Other Verticals

Growth through Acquisitions

Highly Paid

Skill/Experience Specificity

Difficult/Costly to Recruit

Part of a “Community”

High Velocity of Change


International

Growth through Acquisitions

Opens New Markets

Use Content Sites to Expand Career

Content/Information, Services/Tools

Services Create Deeper Relationships

Drives Recurring Use for Communities

Expands Vertical Expertise

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

Mike DurneySVP, Finance & CFO

Scot MellandChairman, President & CEO

Q&A

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