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1st Quarter FY2016
IR Presentation Zhaopin Limited
Nov 2015
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
1
Who We Are
Zhaopin is a Leading Career Development Platform in China
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
3 Market
Leadership Strategic
Expansion Product
Innovation Mobile
Dominance Inorganic Growth
Growth Pillars
13.6
Average monthly visits per user(5)
4
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, 2015. 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;
Our Strong Market Position and Track Record of Growth
25%
Job placement rate(1)
104.8mn
Registered users(2)
321,654
Unique customers(3)
2.4mn
Average daily unique visitors(4)
Highest growth in revenues and no. of
unique customers
#1
#1
#1
#1
#1 #1
What Our Market Opportunities Are
33
127
151
Zhaopin's active registered users
Zhaopin's registered users
Number of online job seekers in China
Under-penetrated and Growing User(1) Base
Multiplier effect of the number of placements as a result of increase in job changes per user
(3)
2015e 2017e (2)
105
Penetration
rate: 26%
(1)
Highly Underpenetrated Job Seeker Market
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)
115.3 126.8
138.6 150.6
161.2
2014 2015e 2016e 2017e 2018e
6
Zhaopin registered users vs. China online job seekers
(in millions)
(in millions)
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
Large and Growing Employer Market
0.42
2.9
3.9
Zhaopin's number of unique customers
Number of online employers in China
Under-penetrated and Growing Employer (1) Base
Penetration
rate: 14%
(2)
2015e 2017e
Zhaopin unique customers vs. China online employers
(in millions)
Number of SMEs in China(1)
62.8 68.1 72.7 78.4 84.5
2014 2015e 2016e 2017e 2018e
Number of Online Employers in China(1)
2.5 2.9
3.4 3.9
4.4
2014 2015e 2016e 2017e 2018e
(in millions)
(in millions)
7 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;
(1)
8
Deepen Our Penetration in Recruitment Value Chain
Highpin.cn
• High-end
recruitment
platform
• Social+
e-commerce+
pay for
performance
More R&D initiatives in the pipeline…
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
Average HR budget/ job vacancy: 1 month‘s salary(1) ~¥1000
Basic cost:
Internal time cost of HR staff
What Employers Need
What We Can Offer
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.
• Increase recruitment efficiency for HR staff • Significant monetization potential for Zhaopin
Campus recruitment and assessment services
Basic service offerings: eg.
~¥30/ job posting
~¥20-40/ resume
Low penetration at the stage
How We Are Capturing These Opportunities
Competitive Advantages vs. Other Players
No. of Unique Customers(2) (in ‘000)
265 272 292
315 322 284 279 288 301 296
93% 98% 101%
105% 109%
Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16
Zhaopin Player 2
Zhaopin/ Player 2
92 94 97 101 105
82 84 87 91 94
113% 112% 112% 111% 112%
Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16
Zhaopin Player 2
Zhaopin/ Player 2
No. of Registered Users(2) (in millions)
10
High-end niche recruitment websites
General websites which offer recruitment
as part of their services
TMT vertical recruitment websites
Professional networking websites
Full-scale recruiting business model
Zhaopin vs. vertical players
Vertical players
Zhaopin is the market leader(1) on both job seeker side and employer side
Zhaopin/ Player 2 in Monthly Visits per User and Daily
Unique Visitors(3)
YoY Growth in No. of Quarterly Unique Customers(2)
28% 30%
24%
29%
21% 19% 18%
11% 7%
4%
Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16
Zhaopin Player 2
Notes:
Traffic of Player 2 (51job) does not include the traffic of the subsidiary that it acquired in 2015.
(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, 2015. 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.
177% 167% 178% 201% 207%
109% 108% 111% 111% 122%
Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16
Monthly visits per user
Daily unique visitors
Highly productive nation-wide sales network
Strong Sales and Marketing Capability to Support Growth
~3,150 Sales Force
2 Call
Centers
5 Key
Industries
33
Regional Offices
Covering >200 Cities
Actively promote Zhaopin’s self-service platform and use of “Zhaopin Currency”.
11
= =
=
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, 2015.
(1)
+ TMT
+ Finance
+ Real Estate
+ Professional Services/ Training
+ Consumer/ Retail
Main Industries Sectors
ꔷ Top 5 industries with highest recruiting demand in China
ꔷ Diversified customer portfolio to de-risk our business
Product vision: Good to Use + Simple to Use + Fun to Use
Focus on Delivering Value to Users
Recent Product Innovation
Priority Listing Olive Branch
(Invite to apply) Quick Feedback Easy Hire
Zhaopin Virtual Currency
Premium charged for
higher search results,
generating better
recruiting results for
employers.
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.
A PC and mobile-
based product that
allows employers to
provide instant
feedback to job
applicants once the
application has been
submitted.
A mobile-based
product that provides
employers with a user-
friendly platform to
track applications to
their job postings and
offer quick feedback
through WeChat
anytime anywhere.
Virtual currency for
corporate HR staff to
purchase various
products and services
on Zhaopin’s self-
service platform.
12
Past Now
Job applications Confirmed interviews
Uncertainty Certainty
Advertisement-based Transaction-based
Product roadmap: Matching → Stickiness → Monetization → Eco-system
Re-defining Recruiting Success for the Industry
Great Monetization Opportunities
>4 million confirmed
interviews sent through
Zhaopin’s platform
during Q1 FY16
Source: company data
13
14
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
• 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.
Highpin.cn
A new student loan program launched with
insurance agencies, risk-free for Zhaopin.
Student Loan
RPO provides one-stop recruiting professional
service.
Recruitment Process Outsourcing
A training program for fresh-graduate
employees.
Training program
NET offers an independent means of
identifying talent irrespective of a
graduate's academic credentials, including the
prestige of his or her university.
National Employability Test
Capture the Fast Growing Mobile Audience
Mobile Growth (YoY)(1)
231% 227% 240%
364%
Daily page
views
Daily unique
visitors
Daily
Applications
Completed
resumes
Mobile as % of Total Internet Traffic
Daily page views Daily unique visitors
Daily applications New completed resumes
33%
65%
22%
36%
15%
35%
29%
7%
15
• 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 closed-
loop transaction platform of
Zhaopin
Note:
(1) Q1 FY16 compared to Q1 FY15;
(2) Source: company data
Seek inorganic growth opportunities to accelerate growth
Actively Assessing M&A Opportunities
16
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
Identify and match job
seeker needs at various
stages in their career
lifecycle through
personalized services.
Leveraging Big Data to Accelerate Expansion
Database of 105mn
registered users &
33mn active users
Evolve our service offerings to deliver more value, opening up large opportunities across the human capital management industry 17
Leverage Zhaopin’s big
data pool to establish
virtual assets for users.
Eg. creditability, reputation.
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.
Key Financial and Operational Metrics
* All quarterly financial numbers are unaudited.
10.5%
89.5% Online recruitment services revenue
Other services revenue
Key Financial Highlights for Q1 FY16
19
Notes:
(1) Total revenues and margins refer to the quarter ended Sep 30, 2015.
(2) Cash position as of Sep 30, 2015.
(3) All margins are calculated as a % of net revenue.
Total Revenues
RMB349.5mn, +19% YoY
Strong Cash Position
RMB2.0bn
Gross Margin
94%
Operating Margin
22%
Net Margin
21%
Net Cash per ADS
US$4.95
Robust Top-Line Growth
222 257
335
418
265
322
FY2012 FY2013 FY2014 FY2015 Q1 FY15 Q1 FY16
3,114 2,991 2,633 2,556
954 972
FY2012 FY2013 FY2014 FY2015 Q1 FY15 Q1FY16
821.5 908.9
1,079.8
1,289.9
293.5 349.5
FY2012 FY2013 FY2014 FY2015 Q1 FY15 Q1 FY16
Total Revenues
(RMB millions) (‘000)
692.8 769.1 882.5
1,069.4
252.8 312.7
FY2012 FY2013 FY2014 FY2015 Q1 FY15 Q1 FY16
Online Recruitment Services Revenues
(RMB millions)
Average Revenue per Customer (ARPU)
(RMB)
No. of Unique Customers
20
Strong Cash Generation
Strong cash balance and opportunities to re-invest
and grow the business
Technology and product –
personnel and development
costs for new product or
service offerings, and
Marketing – offline or online
advertising, and
Strengthen sales force
Explore M&A opportunities
21 (1) Including restricted cash, time deposits and restricted time deposits.
330.0 390.7
488.7
603.2 593.4
FY2012 FY2013 FY2014 FY2015 Q1 FY16
Deferred Revenues (As of fiscal year-end or quarter-end)
(RMB millions)
617.8
944.9
1,536.7
1,910.1 2,002.8
FY2012 FY2013 FY2014 FY2015 Q1 FY16
(As of fiscal year-end or quarter-end)
(RMB millions)
Cash Balance(1)
1
2
3
4
22
54 52 43
59 52
56 53
67 68 72 63
83 77
27%
23% 20%
26% 22%
20% 20% 24% 24%
21% 20%
25% 22%
Q1
FY13
Q2
FY13
Q3
FY13
Q4
FY13
Q1
FY14
Q2
FY14
Q3
FY14
Q4
FY14
Q1
FY15
Q2
FY15
Q3
FY15
Q4
FY15
Q1
FY16
as % of net revenues
Operating Profit and Margin (Unaudited)
(RMB millions)
132 151 152 156
165
194 185 192 200
228 216
225 246
66% 68% 71% 67% 71% 69% 70% 69% 69% 68% 69% 68% 71%
Q1
FY13
Q2
FY13
Q3
FY13
Q4
FY13
Q1
FY14
Q2
FY14
Q3
FY14
Q4
FY14
Q1
FY15
Q2
FY15
Q3
FY15
Q4
FY15
Q1
FY16
as % of new revenues
Operating Expenses (Unaudited)
(RMB millions)
50
45
23
38
47 41 43
56 60 62 58
73 71 25%
20%
11%
16%
20%
14% 17%
20% 21% 18% 19%
22% 21%
Q1
FY13
Q2
FY13
Q3
FY13
Q4
FY13
Q1
FY14
Q2
FY14
Q3
FY14
Q4
FY14
Q1
FY15
Q2
FY15
Q3
FY15
Q4
FY15
Q1
FY16
as % of new revenues
Net Profit and Margin (Unaudited)
(RMB millions)
186
202 195 216 217
250 238 258
268 300
279 308 322 94%
91% 91% 93% 93%
88%
90%
93% 93%
89% 89%
93% 94%
Q1
FY13
Q2
FY13
Q3
FY13
Q4
FY13
Q1
FY14
Q2
FY14
Q3
FY14
Q4
FY14
Q1
FY15
Q2
FY15
Q3
FY15
Q4
FY15
Q1
FY16
as % of new revenues (RMB millions)
Gross Profit and Margin (Unaudited)
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 FY13 and Q4 FY13 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 FY13 and RMB48 million and 20% for Q4 FY13, 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 FY15, 1Q would have been RMB65 million
and 22%, respectively.
(1) (1) (2)
Stable Profitability Despite Increased Investments to Support Business Expansion
Healthy Growth in Key Operational Metrics
23
1.4
1.8 2.2
2.3 2.1
2.4
FY2012 FY2013 FY2014 FY2015 Q1 FY15 Q1 FY16
No. of Completed Resumes
41.3
57.1 66.5
73.9 68.8 75.2
FY2012 FY2013 FY2014 FY2015 Q1 FY15 Q1 FY16
56.6
76.9 89.5
100.8 92.4
104.8
FY2012 FY2013 FY2014 FY2015 Q1 FY15 Q1 FY16
No. of Registered Users (As of fiscal year-end or quarter-end)
(in millions)
7.6
11.0
18.1
25.6
5.5 8.4
FY2012 FY2013 FY2014 FY2015 Q1 FY15 Q1 FY16
No. of New Job Postings (in millions)
Average Daily Unique Visitors
(in millions)
(As of fiscal year-end or quarter-end)
(in millions)
Contact
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Scan for ZPIN IR official account on WeChat!
24
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