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SEARCH PARTY GROUP LTD LEVEL 5, 79 COMMONWEALTH ST. SURRY HILLS NSW 2010 SEARCHPARTY.COM | ACN 139 977 772 ASX Announcement ASX code: SP1 October 17, 2016 Presentation for investor conferences The Board of Search Party Group Ltd (ASX:SP1) (Search Party or the Company) is pleased to provide to the market the investor presentation which MD Ben Hutt will present at investor conferences in Australia this week. Schedule 1. TechKnow Conference o Tuesday 18 th October 12.25pm Grand Hyatt Melbourne o Thursday 20 th October 2.45pm Radisson Blu Sydney o Friday 21 st October 9.20am Hilton Brisbane 2. Australian Microcap Conference o Wednesday 19 th October 12.45 Sofitel Melbourne Investors are welcome to attend and should contact the conference organisers to register. About Search Party Search Party Group Ltd (ASX:SP1) is a recruitment services marketplace that connects employers and recruiters to make hiring faster, easier and more effective. Search Party has offices in Sydney, London and Toronto. It also owns employer branding site, JobAdvisor. For more information, visit searchparty.com and jobadvisor.org. For personal use only

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Page 1: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

SEARCH PARTY GROUP LTD LEVEL 5, 79 COMMONWEALTH ST. SURRY HILLS NSW 2010

SEARCHPARTY.COM | ACN 139 977 772

ASX Announcement ASX code: SP1 October 17, 2016

Presentation for investor conferences The Board of Search Party Group Ltd (ASX:SP1) (Search Party or the Company) is pleased to provide to the market the investor presentation which MD Ben Hutt will present at investor conferences in Australia this week. Schedule

1. TechKnow Conference o Tuesday 18th October 12.25pm Grand Hyatt Melbourne o Thursday 20th October 2.45pm Radisson Blu Sydney o Friday 21st October 9.20am Hilton Brisbane

2. Australian Microcap Conference

o Wednesday 19th October 12.45 Sofitel Melbourne Investors are welcome to attend and should contact the conference organisers to register. About Search Party Search Party Group Ltd (ASX:SP1) is a recruitment services marketplace that connects employers and recruiters to make hiring faster, easier and more effective. Search Party has offices in Sydney, London and Toronto. It also owns employer branding site, JobAdvisor. For more information, visit searchparty.com and jobadvisor.org.

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Page 2: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Investor OverviewOctober 2016

Search Party Group Ltd (ACN: 139 977 772)

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Page 3: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

DisclaimerThis presentation contains “forward-looking statements.” These can be identified by words such as “may”, “should”, “anticipate”, “believe”, “intend”, “estimate”, and “expect”. Statements which are not based on historic or current facts may be forward-looking statements.

Forward looking statements are based on: a) Assumptions regarding the Company’s financial position, business strategies, plans and objectives of management for future operations and development

and the environment in which the Company will operate; and b) Current view, expectations and beliefs as at the date they are expressed and which are subject to various risks and uncertainties.

Actual results, performance or achievements of the Company could be materially different from those expressed in, or implied by, these forward-looking statements. The forward-looking statements contained within the presentation are not guarantees or assurances of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to differ materially from those expressed or implied by forward-looking statements. For example, the factors that are likely to affect the results of the Company include general economic conditions in Australia and globally; competition in the markets in which the Company does and will operate; weather and climate conditions; and the inherent regulatory risks in the businesses of the Company. The forward-looking statements contained in this presentation should not be taken as implying that the assumptions on which the projections have been prepared are correct or exhaustive. The Company disclaims any responsibility for the accuracy or completeness of any forward-looking statement. The Company disclaims any responsibility to update or revise any forward-looking statements to reflect any change in the Company’s financial condition, status or affairs or any change in the events, conditions or circumstances on which a statement is based, except as required by law. The projections or forecasts included in this presentation have not been audited, examined or otherwise reviewed by the independent auditors of the Company. You must not place undue reliance on these forward-looking statements.

All market share information in this presentation is based on management estimated based on internally available information unless otherwise indicated.

This presentation is not intended to (nor does it) constitute financial advice or an offer, invitation or recommendation by or on behalf of the Company, its subsidiaries, or any other person to subscribe for, purchase or otherwise deal in any securities in the Company, nor is it intended to be used for the purpose of or in connection with financial advice, offers, invitations or recommendations to subscribe for, purchase or otherwise deal in any securities. This presentation has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information in this presentation and the Company’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange having regard to their own objectives, financial situation and needs and seek such legal, financial and/or taxation advice as they deem necessary or appropriate to their jurisdiction.

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Page 4: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Now for something completely different…

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Page 5: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Businesses like us

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Page 6: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Online retail

In any vertical many compete, one dominates

Holiday rentals

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Marketplaces: slow to start, get big fast

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Page 8: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Valuation multiples driven by stage of life

Founded Annual Revenue (2015) Market Cap

1994

1995

2008

2009

$107Bn

$8.6Bn

$900M

$1.5Bn

$24Bn

$35Bn

$359Bn

$68Bn

Age

22yrs

21yrs

8yrs

7yrs

Multiple

27X

4.1X

3.4X

45X

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Page 9: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Marketplaces help grow industries

Online retail Holiday rentals

Est. 1995

$300bn$5bn

2016 Global IndustryRevenue Est. 2008

$170bn$66bn

2019 Global IndustryRevenue

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Page 10: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

“What you’re going to see over the next five years will be more billion - dollar marketplaces built

than over the past 20 years combined.”

– Simon Rothman (Greylock Partners), 2014.

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Page 11: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

# People % Workforce

AU

UK

CA

US

6M

15M

5M

130M

70%

60%

50%

50%

# SMEs

2.1M

5.4M

1.1M

5.7M

# Jobs p.a.

1M

3M

1.2M

26M

Potential $1 trillion

Recruitment Industry $456bn

Online$9bn(3%)

Why a marketplace in recruitment?

Total 156M 60%14M 31M

Making it real: SMEs are the bulk of the opportunity

NOW

SOON

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Page 12: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Some alternative models

Job Boards Social Recruitment New Breed Agency Referral Platforms

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Page 13: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Search Party:

Fast, affordable hiring for all businesses, everywhere…

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Page 14: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

How it works

Employers

Post a job, set a fee and shortlist recruiter

represented candidates.

Recruiters

Screen for skills and culture match and

suggest candidates.

Candidates

Review culture, sit interviews and get hired.

Search Party

Manages all payments and earns 20% of the

recruitment fee.

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Page 15: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

All three stakeholders win

Job SeekerLearn about companies they want to work for

EmployerShowcase their culture to attract the right people

Job Seekers

Employers Recruiters

Job SeekerGet recruiter representation & find a new job

RecruiterSource candidates for clients

EmployerFill roles fast

RecruiterPlace candidates in roles

We earn 20% of the recruitment fee

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Page 16: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Broad range of roles in focus

Skilled/white collar White collar management

Executive(head hunting)

Unskilled labour

Search Party

Focus Industries include: IT & media, sales & marketing, accountancy & finance, and healthcare.

$ $$$

FOCUS In Scope

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Page 17: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Broad range of fees being paid

0

10

20

30

40

50

60

70

1-2000 2001-4000 4001-6000 6001-8000 8001-10000 10001-12000 12000+

Num

bero

fPlacemen

ts

$GrossPlacementFee

PlacementFeesEarnedQ3-2016(AUD)

Total UK Australia Canada Other

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Page 18: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

9 million+ professional candidates globally. More than 30 countries with 10,000+

Candidates

Employers

Recruiters

CandidatesRecruitersEmployers

250,000+192771

Canada

CandidatesRecruitersEmployers

1,000,000+470

2,236

Australia

CandidatesRecruitersEmployers

7,000,000+729

3,756

UK

US & Other

CandidatesRecruitersEmployers

250,000+159615

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Page 19: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Our Competitive Advantage

MarketplaceFirst-mover

& unique model

Data Science & Tech

Branding &Reviews

Deep experience & wisdom

Ben HuttCEO

Magda WalczakCCO

Jason ShepherdCFO

Stuart GatenbyCTO

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Page 20: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Major Shareholders (wisdom)

Ben HuttCEO & Managing Director

Execution focused entrepreneurMacquarie, PwC, others

Josh RogersConsultant

Marketplace specialistFounding investor Freelancer.com

Trevor LoewensohnChairman

Managing Director AlceonPreviously UBS, JP Morgan

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Business Performance

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Page 22: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Hiring demand growing

Jobs growing in core locations and in other countries

0

1000

2000

3000

4000

5000

6000

0

200

400

600

800

1000

1200

1400

1600

1800

Q4-2014 Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q2-2016 Q3-2016

#ofVacancie

s

NewVacanciesUK Australia Canada Other Cumulative

New Jobs

Fee Agreed

Interviews

Recruitment Funnel

Placements

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Value on platform growing significantly

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

Q4-2014 Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q2-2016 Q3-2016

UniqueFeesAccepted(AUD$)UKFeesAccepted(AUD) AustralianFeesAccepted(AUD) CanadianFeesAccepted(AUD)

OtherFeesAccepted(AUD) Cumulative

More than $4m in fees agreed in Q3

New Jobs

Fee Agreed

Interviews

Recruitment Funnel

Placements

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Page 24: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Interviews building well

Conversion from interview to placement 1 in 4 (and improving)

New Jobs

Fee Agreed

Interviews

Recruitment Funnel

Placements

0

500

1000

1500

2000

2500

3000

3500

0

100

200

300

400

500

600

700

800

900

Q4-2014 Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q2-2016 Q3-2016

#ofInterviews

QuarterlyInterviewsConfirmedUK Australia Canada Other Cumulative

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0

50

100

150

200

250

300

350

400

450

500

0

20

40

60

80

100

120

140

160

Q4-2014 Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q2-2016 Q3-2016

#ofPlacements

QuarterlyPlacementsUK Australia Canada Other Cumulative

Placements up 34% on Q2

Placements occurring outside our core markets, ready to grow

New Jobs

Fee Agreed

Interviews

Recruitment Funnel

Placements

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Page 26: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Revenue building fast

53% compound quarterly growth in revenue

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

Q4-2014 Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q2-2016 Q3-2016

QuarterlyGrossRevenueUnitedKingdom Australia Canada Cumulative

New Jobs

Fee Agreed

Interviews

Recruitment Funnel

Placements

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Page 27: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Overview against market KPIs

* Search Party earns ~ 20% of this gross revenue transaction few net revenue

Users signed up Total 30 June ‘16 Total 31 Sept ‘16 Quarterly Growth %

New Employer Users 5 960 7 378 23.8%

New Recruiter Companies 1 284 1 550 20.7%

Metric Q2 CY’16 Q3 CY’16 Quarter on Quarter Growth %

Jobs Posted 1 119 1 615 +44.3%

Value of Fees Posted / Offered $3.52M $5.91M 68%

Number of Jobs with a Fee Agreed 836 874 +4.5%

Value of Jobs with a Fee Agreed $2.53M $3.95M +56.4%

Average Fee Agreed ($) $3 026 $4 519 50%

Interviews Confirmed 664 828 24.7%

Placements Confirmed 101 135 +34%

Gross Revenue (Recruitment Fees Billed) $314 000 $460 000 +47%

Net Revenue* $63 000 $92 000 +47%

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Page 28: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Share price and recent capital

$1.9m @10c

$7.7m @10c

$4m @10c

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Page 29: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Recent share price

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Page 30: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Placements per month

150

250

500

5,000

When

Mar ‘17

Jun ‘17

Dec ‘17

2019/20

Run-rate AnnualisedNet Revenue

$4.50m

$2.25m

$1.35m

$45m

Online$9bn(3%)

Milestones looking forward

10,0002020/21 $90m

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Page 31: ASX Announcement Presentation for investor conferences · PDF filePresentation for investor conferences. ... It also owns employer branding site, JobAdvisor ... visit searchparty.com

Onwards…

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