1 st Quarter FY2016 IR Presentation

Transcription

1 1 st Quarter FY2016 IR Presentation Zhaopin Limited Nov 2015

2 Safe Harbor Statement and Disclaimer This presentation contains forward-looking statements made under the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes, estimates, confident and similar statements. Zhaopin may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in presentations and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Zhaopin s beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Zhaopin s goals and strategies; its future business development, financial condition and results of operations; its ability to retain and grow its user and customer base for its online career platform; the growth of, and trends in, the markets for its services in China; the demand for and market acceptance of its brand and services; competition in its industry in China; its ability to maintain the network infrastructure necessary to operate its website and mobile applications; relevant government policies and regulations relating to the corporate structure, business and industry; and its ability to protect its users' information and adequately address privacy concerns. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this presentation is current as of the date of the presentation, and Zhaopin does not undertake any obligation to update such information, except as required under applicable law. 1

3 Who We Are Zhaopin is a Leading Career Development Platform in China

4 Who We Are A leading career development platform in China, focusing on the needs of job seekers throughout their entire career lifecycle Graduation Skills and Personality Assessment Job Changes Education & HR Training Career Advancement Campus Recruitment Assessment services White-collar recruitment Vocational training High-end recruitment platform Growth Pillars Market Leadership Strategic Expansion Product Innovation Mobile Dominance Inorganic Growth 3

5 Our Strong Market Position and Track Record of Growth 25% #1 Job placement rate (1) 104.8mn #1 321,654 #1 Registered users (2) Unique customers (3) 2.4mn #1 Average daily unique visitors (4) 13.6 Average monthly visits per user (5) #1 Highest growth in revenues and no. of unique customers #1 Notes: All the rankings are measured among major players that exclusively focus on recruitment and career related services during white-collar job seekers career lifecycle. (1) Source: survey conducted by third party in 2014; (2) Source: company data, registered users as of Sep 30, 2015; (3) Source: company data, unique customers for the quarter ended Sep 30, A unique customer refers to a customer that purchases the respective company s online recruitment services during each period; (4) Source: company data, average daily unique visitors for the quarter ended Sep 30, 2015; (5) Source: iresearch, average monthly visits per user for the quarter ended Sep 30, 2015; 4

6 What Our Market Opportunities Are

7 Highly Underpenetrated Job Seeker Market Under-penetrated and Growing User (1) Base Zhaopin registered users vs. China online job seekers (in millions) Penetration rate: 26% Multiplier effect of the number of placements as a result of increase in job changes per user Frequency of Changing Jobs (4) Post-1970s: every 4-5 years Post-1980s: every 2-3 years Post-1990s: every 1.5 years Online Job Seekers in China (1) (in millions) e 2017e (2) Zhaopin's active registered users Zhaopin's registered users (3) (1) Number of online job seekers in China e 2016e 2017e 2018e Notes: (1) Source: iresearch reports; (2) Number of active registered users refer to the number of Zhaopin's registered users who logged on to the website during the past 12 months ended September 30,2015; (3) Zhaopin s number of registered users as of September 30, 2015; (4) Source: Zhaopin survey 6

8 Large and Growing Employer Market Under-penetrated and Growing Employer (1) Base Zhaopin unique customers vs. China online employers (in millions) Number of SMEs in China (1) (in millions) Penetration rate: 14% e 2016e 2017e 2018e Number of Online Employers in China (1) (in millions) e 2017e Zhaopin's number of unique customers Number of online employers in China (1) (2) e 2016e 2017e 2018e Notes: (1) Source: iresearch reports; online employers refer to companies in China that use Internet to conduct business. (2) Zhaopin s number of unique customers for fiscal year 2015; 7

9 Deepen Our Penetration in Recruitment Value Chain What Employers Need Average HR budget/ job vacancy: Basic cost: 1 month s salary (1) ~ 1000 Internal time cost of HR staff What We Can Offer Basic service offerings: eg. ~ 30/ job posting ~ 20-40/ resume Low penetration at the stage Campus recruitment and assessment services Value-added service Priority listing Olive Branch Easy Hire Quick Feedback RPO Recruitment Process Outsourcing Pay for per recommendation Deep vertical expertise to deliver precise matching results Highpin.cn High-end recruitment platform Social+ e-commerce+ pay for performance More R&D initiatives in the pipeline Increase recruitment efficiency for HR staff Significant monetization potential for Zhaopin Note: (1) Source: Zhaopin survey conducted in 2014, which showed the average HR budget for filling a job vacancy is about 1 month of its salary. 8

10 How We Are Capturing These Opportunities

11 Competitive Advantages vs. Other Players Zhaopin is the market leader (1) on both job seeker side and employer side No. of Registered Users (2) (in millions) % 112% 112% 111% 112% No. of Unique Customers (2) (in 000) % 98% 101% 105% 109% Zhaopin vs. vertical players Full-scale recruiting business model Vertical players Q2 Q3 Q4 FY16 Zhaopin Player 2 Zhaopin/ Player 2 Zhaopin/ Player 2 in Monthly Visits per User and Daily Unique Visitors (3) Q2 Q3 Q4 FY16 Zhaopin Player 2 Zhaopin/ Player 2 YoY Growth in No. of Quarterly Unique Customers (2) General websites which offer recruitment as part of their services High-end niche recruitment websites 177% 167% 178% 109% 108% 111% 111% 201% 207% 122% Q2 Q3 Q4 FY16 Monthly visits per user Daily unique visitors 28% 30% 19% 18% 24% 11% 29% 7% 21% 4% Q2 Q3 Q4 FY16 Zhaopin Player 2 TMT vertical recruitment websites Professional networking websites Notes: Traffic of Player 2 (51job) does not include the traffic of the subsidiary that it acquired in (1) Zhaopin's website is the most popular career platform in China as measured by average daily unique visitors in each of the 12 months ended September 30, 2015, the number of registered users as of September 30, 2015 and the number of unique customers for the three months ended September 30, All the rankings are measured among players that exclusively focus on recruitment and career related services during a job seeker's career lifecycle; (2) Source: company data; (3) Source: iresearch. 10

12 Strong Sales and Marketing Capability to Support Growth 33 (1) 2 5 Main Industries Sectors + TMT Regional Offices Call Centers ~3,150 Sales Force Key Industries Covering >200 Cities + Finance + Real Estate + Professional Services/ Training + Consumer/ Retail Actively promote Zhaopin s selfservice platform and use of Zhaopin Currency. = = = ꔷ Top 5 industries with highest recruiting demand in China ꔷ Diversified customer portfolio to de-risk our business Notes: (1) The company closed a regional office of CJOL, while launched a new branch office in Dongguan, Guangdong Province for the quarter ended Sep 30, Highly productive nation-wide sales network 11

13 Focus on Delivering Value to Users Recent Product Innovation Priority Listing Premium charged for higher search results, generating better recruiting results for employers. Olive Branch (Invite to apply) Employers send Olive Branches to selected candidates allowing job seekers to instantly access the job application once accepted, and employers to access the job seeker s contact information. Quick Feedback A PC and mobilebased product that allows employers to provide instant feedback to job applicants once the application has been submitted. Easy Hire A mobile-based product that provides employers with a userfriendly platform to track applications to their job postings and offer quick feedback through WeChat anytime anywhere. Zhaopin Virtual Currency Virtual currency for corporate HR staff to purchase various products and services on Zhaopin s selfservice platform. Product vision: Good to Use + Simple to Use + Fun to Use 12

14 Re-defining Recruiting Success for the Industry Past Job applications Uncertainty Advertisement-based Now Confirmed interviews Certainty Transaction-based Great Monetization Opportunities >4 million confirmed interviews sent through Zhaopin s platform during FY16 Source: company data Product roadmap: Matching Stickiness Monetization Eco-system 13

15 Continue to Deepen Our Relationships by Providing A Complementary Suite of Service Offerings Positioning: focus on high-end job seekers with RMB100K+ annual salary (~RMB200K for tier-1 cities) 200,000 job vacancies provided Highpin.cn 60,000 real-name registered headhunters 10,000,000 top talents CVs and 4,000,000 3D CVs of candidates 70% of our job applications have a bachelor degree or above and 85% have more than 3 years of working experience. National Employability Test NET offers an independent means of identifying talent irrespective of a graduate's academic credentials, including the prestige of his or her university. Training program A training program for fresh-graduate employees. Recruitment Process Outsourcing RPO provides one-stop recruiting professional service. Student Loan A new student loan program launched with insurance agencies, risk-free for Zhaopin. 14

16 Capture the Fast Growing Mobile Audience Mobile Growth (YoY) (1) 231% 227% 240% Daily page views Daily unique visitors Daily Applications 364% Completed resumes Mobile as % of Total Internet Traffic 33% 22% 15% 7% Daily page views Daily applications Note: (1) FY16 compared to ; (2) Source: company data 65% 36% 35% 29% Daily unique visitors New completed resumes A large number of quick feedbacks are confirmed through mobile channel Mobile serves a crucial role for our strategy to redefine recruiting success for the industry Mobile plays an important role in building the closedloop transaction platform of Zhaopin 15

17 Actively Assessing M&A Opportunities M&A philosophy + Improve our competitive dynamics in certain geographies + Help address the needs of our users + Be highly synergistic adjacent technologies or services which complement our core businesses + Add to EPS growth & cash generation + Carry acceptable risk Seek inorganic growth opportunities to accelerate growth 16

18 Leveraging Big Data to Accelerate Expansion Identify and match job seeker needs at various stages in their career lifecycle through personalized services. Leverage Zhaopin s big data pool to establish virtual assets for users. Eg. creditability, reputation. Database of 105mn registered users & 33mn active users Leverage data to create new marketing solutions for employers. Eg. precision marketing. Help HR staff make better decisions with our market and competition intelligence based on our proprietary data analysis. Our career-related data can be leveraged to re-shape the transaction value chain for other business categories. Evolve our service offerings to deliver more value, opening up large opportunities across the human capital management industry 17

19 Key Financial and Operational Metrics * All quarterly financial numbers are unaudited.

20 Key Financial Highlights for FY16 Total Revenues RMB349.5mn, +19% YoY Strong Cash Position RMB2.0bn 89.5% Online recruitment services revenue 10.5% Other services revenue Net Cash per ADS US$4.95 Gross Margin 94% Operating Margin 22% Net Margin 21% Notes: (1) Total revenues and margins refer to the quarter ended Sep 30, (2) Cash position as of Sep 30, (3) All margins are calculated as a % of net revenue. 19

21 Robust Top-Line Growth Total Revenues (RMB millions) ( 000) No. of Unique Customers , , FY2012 FY2013 FY2014 FY2015 FY16 FY2012 FY2013 FY2014 FY2015 FY16 Online Recruitment Services Revenues (RMB millions) Average Revenue per Customer (ARPU) (RMB) , ,114 2,991 2,633 2, FY2012 FY2013 FY2014 FY2015 FY16 FY2012 FY2013 FY2014 FY2015 FY16 20

22 Strong Cash Generation Cash Balance (1) (As of fiscal year-end or quarter-end) (RMB millions) 1, , ,002.8 Strong cash balance and opportunities to re-invest and grow the business Technology and product personnel and development FY2012 FY2013 FY2014 FY2015 FY16 Deferred Revenues (As of fiscal year-end or quarter-end) (RMB millions) 2 costs for new product or service offerings, and Marketing offline or online advertising, and Strengthen sales force 4 Explore M&A opportunities FY2012 FY2013 FY2014 FY2015 FY16 (1) Including restricted cash, time deposits and restricted time deposits. 21

23 Stable Profitability Despite Increased Investments to Support Business Expansion Gross Profit and Margin (Unaudited) (RMB millions) as % of new revenues 94% 93% 93% % 91% % 93% % % 88% 89% % 94% Operating Expenses (Unaudited) (RMB millions) as % of new revenues % 68% 71% 67% 71% 69% 70% 69% 69% 68% 69% 68% 71% Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Operating Profit and Margin (Unaudited) FY16 (RMB millions) as % of net revenues % 26% 23% 24% 22% 24% 25% 20% 20% 20% 21% 22% 20% Q2 25% 20% Q3 11% 23 Q4 16% 38 20% 47 Q2 Q % 17% Q4 56 as % of new revenues Q2 Net Profit and Margin (Unaudited) (RMB millions) Q % 21% 18% 19% Q4 FY % 21% Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 FY16 Q2 Q3 (1) (1) (2) Notes: All quarters refer to fiscal quarters. Zhaopin s fiscal year refers to the 12 months ended June 30. All quarter numbers refer to unaudited financial results. All quarterly margins and expenses percentage are calculated as a % of quarterly net revenue. (1) Reported net profits for Q3 and Q4 included withholding taxes associated with cash dividends by a subsidiary to Zhaopin Ltd. in an amount of RMB13 million and RMB10 million respectively. Excluding such taxes, the net profits and net margins would be RMB36 million and 17% for Q3 and RMB48 million and 20% for Q4, respectively. (2) Excluding the one-time tax expense of RMB5 million arising from the ownership change of a consolidated affiliated entity, our net profit and net margin for, 1Q would have been RMB65 million and 22%, respectively. Q4 Q2 Q3 Q4 Q2 Q3 Q4 FY16 22

24 Healthy Growth in Key Operational Metrics No. of Registered Users (As of fiscal year-end or quarter-end) (in millions) No. of Completed Resumes (As of fiscal year-end or quarter-end) (in millions) FY2012 FY2013 FY2014 FY2015 FY16 No. of New Job Postings (in millions) FY2012 FY2013 FY2014 FY2015 FY16 Average Daily Unique Visitors (in millions) FY2012 FY2013 FY2014 FY2015 FY16 FY2012 FY2013 FY2014 FY2015 FY16 23

25 Contact Check out what s new about Zhaopin. Scan for ZPIN IR official account on WeChat! 24