StepStone Expanding Market Positions Ralf Baumann CEO StepStone 11 th December 2013
Agenda StepStone s market positions Drivers of our market place Candidate delivery Direct search in online recruitment 2
Leading online jobboard 94% of sales 90%+ revenue from #1 positions 1,200+ employees 24 countries, #1 in 19 ~1% of sales 3 ~5% of sales StepStone Totaljobs Group Saongroup (closing Nov 14) YOURCAREERGROUP (closing Jan 14)
Totaljobs Group Totaljobs Group contributes significantly to StepStone s growth after successful integration Successfully replaced corporate/ admin IT systems Steady growth and increased profitability Future focus on direct customers 4
YOURCAREERGROUP Stepstone strengthens German market position with acquisition of YOURCAREERGROUP Number of listings (in thousands) Highlights Generalist portals StepS 40.1 Monster CareerB 14.7 31.3 Leading job board in the hotel/restaurant/catering sector in Germany, Switzerland and Austria HOTELC 12.2 Specialist portal No customer overlap with StepStone Xing meinestadt.de JobSc Stell Jobware 8.6 6.1 5.1 4.7 4.2 Good fit with caterer.com and catererglobal.com (part of TJG) 500,000 unique visitors per month Transaction effective as of January 1 st, 2014 Source: anzeigendaten.de, monthly average Jan-Sep 2013. meinestadt.de: N of paid listings. 5
Saongroup StepStone broadens international footprint with acquisition of Saongroup Company profile Highlights Strong portfolio of online job boards in 16 countries in Europe, Africa, Central America #1 positions in Ireland, Northern Ireland, South Africa (accounting for 80%+ sales) No geographic overlap in core countries StepStone continues its growth strategy Acquisition of 100% (excluding Saon China & Saon Myanmar) Headquartered in Dublin, Ireland; founded in 1999, > 300 employees (group) 6
StepStone Group s Portfolio StepStone Group a portfolio of market leaders Germany UK, Ireland #1 Belgium South Africa #1 #1 #1 Other countries Europe: Austria, France, Denmark, Sweden, Netherlands Central America: El Salvador, Panama, Guatemala, Honduras, Costa Rica, Jamaica, Cayman, Trinidad Africa: Mauritius, Kenya 7
Revenue Growth Benchmarks H1-2013 StepStone maintains organic growth above most market peers +5% H1-2013 YoY US + Americas -5% to +15% Europe -40% to -5% APAC -10% to +10% 8 Note: StepStone Group pro-forma adjusted for FX-differences; excludes recent acquisitions (YOURCAREERGROUP, Saongroup) Source: WARC, FDIM, Company Reports
Drivers of our market place StepStone serves and optimises the market place technology Customer Job and Career Seekers Users demand Large number of qualified jobs/listings Large number of active recruiters on the direct search platform Jobboard Best in class matching technology Usable on all platforms (PC, Mobile) Companies demand Candidate delivery 9
StepStone s focus areas Passive candidates Twitter Xing Social Media LinkedIn Facebook Employer Mobile branding Active candidates 10
StepStone s core deliverable Delivery of quality candidates! 11
StepStone Candidate Delivery StepStone.de s lead over competitors is widening Applications per job ad in 2012 Applications per job ad in 2013 13.6 15.6 Competitor 7.1 x 1.9 Competitor 6.0 x 2.6 Competitor 6.7 x 2.0 Competitor 5.1 x 3.1 Competitor 3.0 x 4.6 Competitor 3.3 x 4.7 Competitor 1.8 x 7.5 Competitor 2.2 x 7.1 Source: TNS 2012, n=746; poll period: April-June 2012; survey of 80,299 recruiters who inserted job ads during this period; TNS 2013: n=4,169 12
Website Conversion Marketing attracts user s to the site, conversion mechanisms ensure users are channelled to the right listings Unique Users Index X = X = Visits per Unique Index Visits Index Listing Views per Visit Index Listing Views Index Drive more users to the site Users return more often Website receives more visits Users view more listings Listings receive more views 160 140 +17% 120 100 CAGR +3% 100 +4% 102 108 +8% 100 +9% 113 118 80 2011 2012 2013 2011 2012 2013 2011 2012 2013 2011 2012 2013 2011 2012 2013 Source: Site Catalyst (StepStone), based on Aug-YTD values 13
StepStone s product portfolio StepStone is able to sell a complete online recruitment product suite Job Ads Employer Branding Direct Search Standard, Individual, Plus Banner Advertising DirectSearch Database International Job Advertising Newsletter & Job Agent DirectSearch Direct Mail Company Portrait DirectSearch Mobile App StepStone FOLLOW AD DirectPush (Keyshots) 1 to many Selected target group 1 to 1 14
Importance of direct search Importance of direct search in recruitment varies across countries with almost no changes over time Germany ~5% US 35% Direct search currently accounts for less than 5% of StepStone s revenue 15
StepStone Direct Search StepStone s new direct search products Old Search Interface New Search Interface Mobile App The new StepStone Direct Search Database offers a very simple and intuitive usability approach right from the first moment. Entered terms are anticipated by the engine and automatic suggestions are extremely helpful to identify well suited talent quickly. It s a great solution, which allows us to expand the recruitment process to a wider audience and leverage the true potential of our Active Sourcing teams. For us, the Direct Search Database means more satisfaction among our colleagues and higher success rates in hiring Martin Moll, HR Senior Recruitment Consultant EMEA, SAP AG 16
StepStone s opportunities Capitalising on strong market positions superior candidate delivery economic growth improved direct search products 17