FY2017 IR Presentation Zhaopin Limited August 2017
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 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. 1
Who We Are Zhaopin is a Leading Career Development Platform in China
Who We Are A leading career development platform in China focused on the needs of job seekers throughout their entire career lifecycle Skills and Education & Career Graduation Personality Job Changes HR Training Advancement Assessment White-collar High-end recruitment Campus Recruitment Assessment services Vocational training recruitment platform Growth Pillars Market Strategic Product Mobile Inorganic Leadership Expansion Innovation Dominance Growth 3
What Our Market Opportunities Are
Highly Underpenetrated Job Seeker Market Frequency of Changing Jobs (4) Under-penetrated and Growing User (1) Base Post-1970s: every 4-5 years Zhaopin registered users vs. China online job seekers Post-1980s: every 2-3 years (in millions) Multiplier effect of the number of Post-1990s: every 1.5 years placements as a result of increase in job changes per user Penetration Online Job Seekers in China (1) rate: 29% 193 161 (in millions) 140 193.1 178.5 161.3 144.5 128.9 47 FY2017 2017e 2019e (2) Zhaopin's active registered users (3) Zhaopin's registered users (1) 2015 2016 2017e 2018e 2019e Number of online job seekers in China 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 June 30, 2017; 5 (3) Zhaopin’s number of registered users as of June 30, 2017; (4) Source: Zhaopin survey.
Large and Growing Employer Market Number of SMEs in China (1) Under-penetrated and Growing Employer (1) Base (in millions) Zhaopin unique customers vs. China online employers 96.4 89.9 83.2 76.1 (in millions) 68.9 7.7 Penetration rate: 11% 2015 2016 2017e 2018e 2019e 5.4 Number of Online Employers in China (1) (in millions) 7.7 6.6 5.4 0.61 4.3 3.3 FY2017 2017e 2019e (2) Zhaopin's number of unique customers 2015 2016 2017e 2018e 2019e (1) Number of online employers in China Notes: 6 (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 2017.
How We Are Capturing These Opportunities
Sales and Marketing Network to Support Growth Main Industry Sectors (1) 33 2 5 + TMT Regional Call Key + Finance Offices Centers Industries + Real Estate/ Construction + Education/ Training Sales Force of ~3,600 Covering >250 Cities + Consumer/ Retail ꔷ Top 5 industries with Actively promote highest recruiting Zhaopin’s self- demand in China service platform and ꔷ Diversified customer use of “ Zhaopin = portfolio to de-risk Currency”. = our business = 8 Note: (1) According to company data of the quarter ended June 30, 2017.
New Business Initiatives and Service Lines National Employability Test Highpin.cn NET offers a new means of identifying talent irrespective of a Focus on high-end job seekers with graduate's academic credentials, not taking RMB100K+ annual salary (~RMB200K for tier- into account the prestige of his or her 1 cities) university. Recruitment Process Outsourcing RPO provides one-stop recruiting professional service. Training program A training program for fresh-graduate employees. Student Loan A new student loan program launched with insurance agencies. Note: 9 Source: company data. (1) Online car share service that recently acquired Uber China.
Actively Assessing M&A Opportunities M&A philosophy + Improve our competitive dynamics in targeted geographies + Help address the needs of our users + Find highly synergistic adjacent technologies or services which complement our core businesses + Add to EPS growth & cash generation + Carry acceptable risk 10
Key Financial and Operational Metrics * All quarterly financial numbers are unaudited.
Key Financial Highlights for Q4 FY17 Q4 FY17 Revenue Breakdown Total Online Revenue Revenue + + RMB486.7mn RMB433.1mn Other Services 89.0% +19.8% YoY +23.4% YoY Revenue 11.0% • Other services revenue Online decreased primarily due Cash Deferred to decline in campus recruitment services recruitment services Position Revenue revenue revenue, as a result of strong competition. RMB2.8bn RMB890.1mn +20.8% +24.9% vs. 30-June-2016 vs. 30-June-2016 Gross Operating Margin Margin Net Cash per ADS 93% 15% US$6.82, +18.8% vs. 30-June-2016 Notes: (1) Total revenue and margins refer to the quarter ended June 30, 2017. 12 (2) Cash position as of June 30, 2017. (3) All margins are calculated as a % of net revenue.
Revenue Growth Underpinned by Growth in Unique Customers Total Revenue No. of Unique Customers (RMB millions) (‘000) 613 1,914.7 510 454 1,542.9 418 384 1,289.9 335 821.5 908.9 1,079.8 257 222 486.7 406.1 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Q4 FY16 Q4 FY17 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Q4 FY16 Q4 FY17 Online Recruitment Services Revenue Average Revenue per Customer (ARPU) (RMB millions) (RMB) 1,608.8 3,114 2,991 2,633 2,624 2,565 2,556 1,307.6 1,069.4 882.5 692.8 769.1 915 954 433.1 350.9 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Q4 FY16 Q4 FY17 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Q4 FY16 Q4 FY17 13
Cash Balance, Deferred Revenue and Cash Flow Cash Balance (1) Operating Cash Flow (Unaudited) (As of fiscal year-end or quarter-end) (RMB millions) Operating cash flow (RMB millions) 198 2,764.7 169 164 151 2,289.2 139 133 131 1,910.1 103 101 75 92 75 79 1,536.7 62 54 45 944.9 617.8 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Free Cash Flow (Unaudited) Deferred Revenue (As of fiscal year-end or quarter-end) (RMB millions) Free cash flow (RMB millions) 187 167 156 143 890.1 132 130 124 98 712.7 96 84 603.2 71 62 61 54 488.7 50 39 390.7 330.0 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 14 Note: (1) Including restricted cash and cash equivalent, time deposits and restricted time deposits.
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