Investor Relations Presentation - Amazon S3FY14.pdf · Investor Relations Presentation ... CIA...

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Investor Relations Presentation Zhaopin Limited August 20, 2014 0

Transcript of Investor Relations Presentation - Amazon S3FY14.pdf · Investor Relations Presentation ... CIA...

Page 1: Investor Relations Presentation - Amazon S3FY14.pdf · Investor Relations Presentation ... CIA world Factbook and ... * Reported net profits for FY13 Q3 and Q4 included withholding

Investor Relations

Presentation

Zhaopin Limited

August 20, 2014

0

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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 1995.

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.

Safe Harbor Statement and Disclaimer

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Executive Summary Page 3

Business Overview Page 4-5

Investment Highlights Page 6-10

Key Financials and Operational Metrics Page11-16

Growth Strategy Page17-19

Table of Contents

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Executive Summary

FY14 Results Highlight

• Accelerated growth: total revenues ~19% yoy growth, net income

~20% yoy growth

• Solid profitability: gross margin at ~91%, net margin at ~18%

• Strong cash position: RMB1.5bn in cash, ~63% yoy growth

Key Drivers of Result

• Number of unique customers grew to 335,168 for FY14, representing

~30% yoy growth

• Continued penetration into low tier cities and expansion of SME base

• Market leadership in job seeker traffic (i.e. average daily unique

visitors)

Operational Update

• Opened 5 new sales offices in high growth Tier 2/3 cities

• Successful IPO in June 2014

• Acquisition of Jobs DB China Investments Ltd. and its affiliates

(“CJOL”) in June 2014 assisted in establishing a leadership position in

Shenzhen and southern China

Gross

Profit

+21% yoyTotal

Revenues

+19% yoyNet

Income

+20% yoy

3* Our consolidated results in FY13 and FY14 include the financial results of CJOL as if our acquisition of the company had taken place since the inception of common control of both

companies by SEEK Ltd..

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Overview of Zhaopin’s business and marketplace

Zhaopin engages white-collar users through their career lifecycle

Enter and graduation from college

cdc.zhaopin.com

Change job

White collar

recruitment

Career advancement

www.highpin.cn

Skills and personality assessmentAssessment and

testing services

Continuous educationVocational learning

and training

Complementary service offerings across the entire life cycle of our users

Jobseekers EmployersBest search and

matching experience

Core onlinerecruitment platform

4

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Zhaopin30%

Player 225%

Others45%

2.2 2.0

0.6

Zhaopin Player 2 Player 3

Zhaopin – China’s leading career platform

Source: iResearch Public Data, iResearch Survey

Note:

1) Simple average number of daily unique visitors each month in FY2014.

2) Average of monthly visits per user throughout FY2014.

3) According to iResearch Survey for CY2013.

4) As of June 30, 2014, including CJOL data.

5) For the fiscal year ended June 30, 2014., including CJOL data.

Zhaopin is a leading career platform in China which connects users with relevant job opportunities throughout their career lifecycle

Average daily unique visitors(1)

(in millions)

A large user and employer platform

Unique customers(5):

335,168Job postings(5):

18.1mn

Registered users(4):

89.5mnCompleted resumes(4):

66.5mn

Average monthly visits per user(2)

10.2

5.6

1.5

Zhaopin Player 2 Player 3

“Most frequently used job-search website in China” (3)

5

(frequency)

Source: Company data.

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Key Investment Highlights

Nationwide sales and customer services network & large and diversified customer base

3

Evolving career platform exposed to a large and growing addressable market

1

Backed by a leading strategic investor and new IPO investors

4

Market leading career platform and highly recognized brand

2

6

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74

104

151

2013 2017EZhaopin's (stand-alone) registered users

Number of online job seekers in China

Zhaopin is underpenetrated and exposed to a large, growing

market opportunity across job seekers and employers

Zhaopin registered users vs. China online job seekers Zhaopin unique employers vs. China online employers

1

(in millions) (in millions)

Source: Company data and iResearch Survey

Notes:

(1) # of online job seekers in China.

(2) # of online employers in China.

(3) Zhaopin‟s number of registered users as of December 31, 2013.(Zhaopin standalone data)

(4) Zhaopin‟s number of unique employers for the 12 months ended December 31, 2013. (Zhaopin standalone data)

Multiplier effect on the

number of placements as

a result of increase in job

changes per user

Under-penetrated and growing user(1)

base … …and employer base(2)

0.27

2.0

3.9

2013 2017E

Zhaopin's (stand-alone) number of unique customers

Number of online employers in China

(4)

Penetration

=71.3%

Penetration

=13.5%

(3)

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Jul 2013 1st 2nd 7th

Aug 2013 1st 2nd 7th

Sep 2013 1st 2nd 7th

Oct 2013 1st 2nd 5th

Nov 2013 1st 2nd 5th

Dec 2013 1st 2nd 5th

Jan 2014 1st 2nd 6th

Feb 2014 1st 2nd 7th

Mar 2014 1st 2nd 8th

Apr 2014 1st 2nd 7th

May 2014 1st 2nd 7th

Jun 2014 1st 2nd 7th

Market leader focused on recruitment and career

related services

Players that focus exclusively on

recruitment and career-related services

High-end niche recruitment websites

Does not provide full suite of recruitment and

career-related services

Professional networking websites

Student-focused niche websites

General websites which offer recruitment as

part of their services

2

Source: iResearch Public Data.

0

500

1,000

1,500

2,000

2,500

3,000

Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13

Zhaopin 51 job China HR

Based on job seeker metrics, Zhaopin is consistently the

market leader focused on recruitment and career-related

services

Ranking by average daily unique visitors

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Extensive nationwide network leading to a strong and

diversified customer base

Our nationwide sales footprint enables us to develop business relationships with customers in targeted local markets and

industry verticals

Cities with online coverage only

Cities with online and newspaper

City with online and centralized call center

Regions covered by centralized call center

Shanghai

Chongqing

Chengdu

Changsha

Wuhan

Xian

Fuzhou

Xiamen

ShenzhenGuangzhou

Hangzhou

SuzhouHefei

Zhengzhou

DalianShijiazhuang Tianjin

Beijing

JinanQingdao

ShenyangMore than 2,100

sales and account managementrepresentatives in 33 regional offices nationwide

Taiyuan

Haerbin

Nanjing

Kunming

Ningbo

Wuxi

ChangchunJilin

Nanchang

Guiyang

3

Real estate

Automotive

Consumer /

retail

Technology

Financial

services

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Strong shareholder support from SEEK & other new

shareholders

SEEK is a global online employment business

Largest global online employment marketplace by earnings

and market cap

Operations in 14 countries

Strong growth track record (FY10 to FY14)

−Revenue CAGR = 34%

−EBITDA CAGR = 50%

Total shareholder returns (“TSR”) at c.7 times S&P/ASX

200(1) since SEEK’s IPO in April 2005

Source: Seek public filings, Seek website, CIA world Factbook and Internet World Stats

Note:

1) Total shareholder returns include dividends and share price appreciation to 18 August, 2014

4

New Shareholders since the IPO

Apax Partners came in as the Concurrent Private

Placement investor

Other new shareholders include leading institutional

investors across U.S., Europe, Asia and Australia

markets

Zhaopin is currently covered by Credit Suisse & UBS

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14.1%58.4%

108.2%78.8%

298.6%

776.7%

1 year TSR 5 year TSR Since SEEK's IPO(19 April 2005)

S&P/ASX 200 SEEK

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772.9 866.9

1,057.7

FY2012 FY2013 FY2014

Online recruitment

services 81.7%

Campus recruitment

services 8.8%

Assessment services

5.1%

Other HR related

services4.4%

821.5

908.9

1,079.8

FY2012 FY2013 FY2014

Accelerated growth in total revenues and net revenues in FY14

at 18.8% yoy and 22.0% yoy respectively

Total revenues FY2014 revenue breakdown

(RMB million)

Net revenues

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(RMB million)

Source: Company data.

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Online recruitment services revenues Number of unique customers and ARPU

(RMB million) (Average Revenue per Customer ("ARPU") in RMB)

692.8

769.1

882.5

FY2012 FY2013 FY2014

222

257

335

FY2012 FY2013 FY2014

No. of unique customers („000)

3,114 2,991

2,633

FY2012 FY2013 FY2014

ARPU

Accelerated online revenues growth at 14.7% yoy, mainly

driven by strong customer volume growth

• Faster growth in online recruitment services revenues primarily driven by strong growth in customer volume, which is a

reflection of our strategic focus on growing expansion of SME base and further penetrating in lower tier cities.

• ARPU decline mainly due to change in customer mix as we acquired more SMEs who typically purchased introductory, lower-

priced products.12

Source: Company data.

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Strong growth in campus, assessment and other human

resources related services

Campus recruitment services Assessment services

Other human resources related services

(RMB million)(RMB million)

(RMB million)

58.8 67.3

94.8

FY2012 FY2013 FY2014

17.0

32.7

55.4

FY2012 FY2013 FY2014

53.0

39.7

47.1

FY2012 FY2013 FY2014

13

Source: Company data.

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Robust profitability achieved despite strategic focus on market

share and re-investment

Operating expenses (unaudited)

Operating profit and margin (unaudited)

(RMB million)

(RMB million)

(RMB million)

* Reported net profits for FY13 Q3 and Q4 included withholding taxes associated with cash dividends by a subsidiary to Zhaopin Ltd. in an amount of RMB12.5 million and RMB 9.9 million respectively.

Excluding such taxes, the net profits and net margins would be RMB 35.8m and 16.8% for FY13 Q3 and RMB47.5m and 20.4% for FY13 Q4, respectively.

1

Net profit and margin (unaudited)

(RMB million)

1

Gross profit and margin (unaudited)

185.8202.2 194.8

215.5 216.7

249.5237.9

258.393.5%

91.0% 91.3%92.7% 93.0%

88.4%

90.3%

92.6%

FY13 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY14 Q1 FY14 Q2 FY14 Q3 FY14 Q4

131.6150.6 151.6 156.1

165.2194.0 184.5 191.7

66.2%67.8%

71.0%67.2%

70.8% 68.7% 70.0% 68.7%

FY13 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY14 Q1 FY14 Q2 FY14 Q3 FY14 Q4

54.2 51.6

43.3

59.451.5

55.5 53.3

66.5

27.3%

23.2%20.3%

25.5%22.1%

19.7% 20.2%23.9%

FY13 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY14 Q1 FY14 Q2 FY14 Q3 FY14 Q4

49.645.2

23.3

37.6

47.240.5 43.4

55.5

25.0%20.3%

10.9%

16.2%20.2%

14.4%16.5%

19.9%

FY13 Q1 FY13 Q2FY13 Q3*FY13 Q4*FY14 Q1 FY14 Q2 FY14 Q3 FY14 Q4

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Source: Company data. All quarterly margins are calculated as a % of quarterly net revenue.

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617.8

944.9

1,536.7

FY2012 FY2013 FY2014

Growing deferred revenue balance provides high transparency

on revenue and growing cash balance positions Zhaopin for

investment opportunities

Deferred revenue

(RMB million)

Cash balance*

(As of fiscal year-end, RMB million)

330.0

390.7

488.7

FY2012 FY2013 FY2014

* Including restricted cash, time deposits and restricted time deposits.

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Source: Company data.

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Healthy growth in key operating metrics*

No. of Registered Users No. of Completed Resumes

No. of Job Postings

(in million)

56.6

76.9 89.5

FY2012 FY2013 FY2014

7.6 11.0

18.1

FY2012 FY2013 FY2014

41.3

57.1 66.5

FY2012 FY2013 FY2014

Average Daily Unique Visitors

(in million)

1.4 1.8

2.1

FY2012 FY2013 FY2014

* Includes CJOL‟s metrics for the four months ended June 30, 2013 and for the fiscal year ended and as of June 30, 2014, when both Zhaopin Ltd. and CJOL were under common control

of SEEK16

(As of fiscal year-end, in million) (As of fiscal year-end, in million)

Source: Company data.

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Our vision and strategy going forward

Our vision is to connect the largest number of users with

career opportunities throughout their career lifecycle

Attract and retain more users and customers through branding and

enhanced user experience

Leverage our core platform to expand into adjacent product offerings

Continue to pursue our mobile strategies

Pursue strategic investment and acquisition opportunities

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Continue to strengthen our core online recruiting business

1 2

3 4

Geographic expansion

Expand to areas outside of tier-

one and tier-two cities to over

100 cities

Cooperation with local

government

SME customer base growth

Increase the number of SMEs with

products like Zhilian iPin

Design special product package for

SMEs like YiPin

Customer retention and loyalty

Further build brand loyalty and

increase repeat usage of our

website by providing key account

services

Customer lifecycle engagement

("Moment of Truth")

Targeted industries penetration

Acquire new customers from key

industry verticals where we are

already well established, such as real

estate, finance, high-tech, and

automotive

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White-collar Higher endWhite-collarCollege

Learning

Recruiting

Assessment

Leverage our core platform to expand into adjacent product

offerings

智 联 培 训

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