FY2017 IR Presentation · 2017-08-16 · FY2017 IR Presentation Zhaopin Limited August 2017 . This presentation contains forward-looking statements made under the “safe harbor”

FY2017 IR Presentation Zhaopin Limited

August 2017

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 focused 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

What Our Market Opportunities Are

47

161

193

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)

2017e 2019e (2)

140

Penetration

rate: 29%

(1)

FY2017

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)

128.9 144.5

161.3 178.5

193.1

2015 2016 2017e 2018e 2019e

5

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 June 30,

2017;

(3) Zhaopin’s number of registered users as of June 30, 2017;

(4) Source: Zhaopin survey.

Large and Growing Employer Market

0.61

5.4

7.7

Zhaopin's number of unique customers

Number of online employers in China

Under-penetrated and Growing Employer(1) Base

Penetration

rate: 11%

(2)

2017e 2019e FY2017

Zhaopin unique customers vs. China online employers

(in millions)

Number of SMEs in China(1)

68.9 76.1

83.2 89.9 96.4

2015 2016 2017e 2018e 2019e

Number of Online Employers in China(1)

3.3 4.3

5.4 6.6

7.7

2015 2016 2017e 2018e 2019e

(in millions)

(in millions)

6 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 2017.

(1)

How We Are Capturing These Opportunities

Sales and Marketing Network to Support Growth

Sales Force of ~3,600

2 Call

Centers

5 Key

Industries

33

Regional Offices

Covering >250 Cities

Actively promote Zhaopin’s self-service platform and use of “Zhaopin Currency”.

8

= =

=

+ TMT

+ Finance

+ Real Estate/ Construction

+ Education/ Training

+ Consumer/ Retail

Main Industry Sectors(1)

ꔷ Top 5 industries with highest recruiting demand in China

ꔷ Diversified customer portfolio to de-risk our business

Note: (1) According to company data of the quarter ended June 30, 2017.

9

New Business Initiatives and Service Lines

RPO provides one-stop recruiting professional

service.

Recruitment Process Outsourcing

NET offers a new means of

identifying talent irrespective of a

graduate's academic credentials, not taking

into account the prestige of his or her

university.

National Employability Test

Note:

Source: company data.

(1) Online car share service that recently acquired Uber China.

Focus on high-end job seekers with

RMB100K+ annual salary (~RMB200K for tier-

1 cities)

Highpin.cn

A training program for fresh-graduate

employees.

Training program

A new student loan program launched with

insurance agencies.

Student Loan

Actively Assessing M&A Opportunities

10

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

Key Financial and Operational Metrics

* All quarterly financial numbers are unaudited.

11.0%

89.0%

Online recruitment services revenue

Other Services Revenue

• Other services revenue

decreased primarily due

to decline in campus

recruitment services

revenue, as a result of

strong competition.

Key Financial Highlights for Q4 FY17

12

Notes:

(1) Total revenue and margins refer to the quarter ended June 30, 2017.

(2) Cash position as of June 30, 2017.

(3) All margins are calculated as a % of net revenue.

Total Revenue

+

RMB486.7mn +19.8% YoY

Online Revenue

+

RMB433.1mn +23.4% YoY

Cash Position

RMB2.8bn +20.8%

vs. 30-June-2016

Deferred Revenue

RMB890.1mn +24.9%

vs. 30-June-2016 Gross

Margin

93%

Operating Margin

15% Net Cash per ADS

US$6.82, +18.8% vs. 30-June-2016

Q4 FY17 Revenue Breakdown

Revenue Growth Underpinned by Growth in Unique Customers

222 257 335

418

510

613

384 454

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Q4 FY16 Q4 FY17

3,114 2,991 2,633 2,556 2,565 2,624

915 954


821.5 908.9 1,079.8

1,289.9 1,542.9

1,914.7

406.1 486.7


Total Revenue (RMB millions) (‘000)

692.8 769.1

882.5 1,069.4

1,307.6

1,608.8

350.9 433.1


Online Recruitment Services Revenue

(RMB millions)

Average Revenue per Customer (ARPU)

(RMB)

No. of Unique Customers

13

Cash Balance, Deferred Revenue and Cash Flow

14 Note: (1) Including restricted cash and cash equivalent, time deposits and restricted time deposits.

330.0 390.7

488.7 603.2

712.7

890.1

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

Deferred Revenue (As of fiscal year-end or quarter-end)

(RMB millions)

617.8

944.9

1,536.7

1,910.1

2,289.2

2,764.7

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

(As of fiscal year-end or quarter-end)

(RMB millions)

Cash Balance(1)

54

103 75

92 75

164

79

133

45

151

101 131

62

198 169

139

Q1 F

Y14

Q2 F

Y14

Q3 F

Y14

Q4 F

Y14

Q1 F

Y15

Q2 F

Y15

Q3 F

Y15

Q4 F

Y15

Q1 F

Y16

Q2 F

Y16

Q3 F

Y16

Q4 F

Y16

Q1 F

Y17

Q2 F

Y17

Q3 F

Y17

Q4 F

Y17

Operating cash flow (RMB millions)

Operating Cash Flow (Unaudited)

50

98

62 84

61

156

71

130

39

143

96

124

54

187 167

132 Q

1 F

Y14

Q2 F

Y14

Q3 F

Y14

Q4 F

Y14

Q1 F

Y15

Q2 F

Y15

Q3 F

Y15

Q4 F

Y15

Q1 F

Y16

Q2 F

Y16

Q3 F

Y16

Q4 F

Y16

Q1 F

Y17

Q2 F

Y17

Q3 F

Y17

Q4 F

Y17

Free cash flow (RMB millions)

Free Cash Flow (Unaudited)

109 138 128 131 133 165 156 160 171 201 210 195 207 247 267 263

47% 49% 49%

47% 46% 49% 50%

48% 50% 50%

56%

49% 49% 49%

55% 54%

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

as % of net revenues

15

Sales and Marketing Expenses and Margin (Unaudited)

(RMB millions)

165 194 185 192 200 228 216 225 246 287 274 271 300 344 373 377

71% 69%

70% 69% 69%

68% 69%

68%

71% 71% 73%

68%

71%

68%

76% 78%

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


Operating Expenses and Margin (Unaudited)

(RMB millions)

56 56 56 61 67 63 60 65 74 86 64 76 94 97 106 114

24%

20% 21% 22% 23%

19% 19% 19% 22% 21%

17% 19%

22% 19%

22% 24%

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


General and Administrative Expenses and Margin (Unaudited)

(RMB millions)

217 250 238 258 268 300 279 308 322 356 340 368 385 431 425 451

93%

88%

90%

93% 93%

89% 89%

93% 94%

88% 91% 92% 91%

85% 87%

93%

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

as % of net 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.

Profitability and Margin May Vary Due to Re-investment to Sustain Future Growth

16

62 59 63 74 77 78 69 86 82 73 59 98 87 88 51 76

26%

21%

24%

26% 27%

23% 22%

26% 24%

18% 16%

24%

21%

18%

10%

16%

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


Non-GAAP Operating Income and Margin (Unaudited)

(RMB millions)

Profitability and Margin May Vary Due to Re-investment to Sustain Future Growth (Cont.)

52 56 53 67 68 72 63 83 77 69 66 96 84 87 52 75

22% 20% 20%

24% 24% 21%

20%

25%

22%

17% 18%

24%

20%

17%

11%

15%



Operating Profit and Margin (Unaudited)

(RMB millions)

Notes:



17

57 44 53 63 68 68 64 76 76 66 55 92 83 76 46 58

25%

16%

20% 23% 24%

20% 20% 23% 22%

16% 15%

23% 20%

15%

9% 12%



Non-GAAP Net Profit and Margin (Unaudited)

(RMB millions)

Profitability and Margin May Vary Due to Re-investment to Sustain Future Growth (Cont.)

47 41 43 56 60 62 58 73 71 62 62 90 81 (5) 47 57

20%

14% 17%

20% 21% 18% 19%

22% 21%

15% 17%

22%

19%

-1.0%

10% 12%



82/16%(2)

54/11%(3)

66/14%(4)

Net Profit and Margin (Unaudited)

(RMB millions)

(1)

Notes:



(1) 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 Q1 FY15 would have been

RMB65 million and 22%, respectively.

(2) Net Loss for Q2 FY17 was RMB5.2 million, due to the accrual of RMB86.9 million withholding income tax in relation to undistributed earnings within Zhaopin’s PRC subsidiaries,

because Zhaopin’s intention to reinvest all of its profits indefinitely is no longer certain. Excluding this withholding income tax expense, net income for Q2 FY17 would have been

RMB81.7 million.

(3) Withholding income tax for Q3 FY17 caused by undistributed earnings from Zhaopin’s PRC subsidiaries in China was RMB7.3 million, because Zhaopin’s intention to reinvest all of its

profits indefinitely is no longer certain. Excluding this withholding income tax expense, net income for Q3 FY17 would have been RMB54.2 million.

(4) Withholding income tax for Q4 FY17 caused by undistributed earnings from Zhaopin’s PRC subsidiaries in China was RMB8.8 million, because Zhaopin’s intention to reinvest all of its

profits indefinitely is no longer certain. Excluding this withholding income tax expense, net income for Q4 FY17 would have been RMB65.9 million.

Key Operational Metrics

18

1.4

1.8 2.2

2.3

2.7

3.3

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

No. of Completed Resumes

41.3

57.1 66.5

73.9 83.6

94.1

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

56.6

76.9 89.5

100.8

120.0

140.0

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

No. of Registered Users (As of fiscal year-end or quarter-end)

(in millions)

7.6 11.0

18.1

25.6

36.9

49.3

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

No. of New Job Postings (in millions)

Average Daily Unique Visitors

(in millions)

(As of fiscal year-end or quarter-end)

(in millions)

Source: company data.

Check Out What’s New About Zhaopin

1. Twitter account: https://twitter.com/Zhaopin_com 2. Scan for ZPIN IR official account on WeChat!

19

Documents

FY2017 IR Presentation · 2017-08-16 · FY2017 IR Presentation Zhaopin Limited August 2017 . This presentation contains forward-looking statements made under the “safe harbor”