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
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Q4 FY16 Q4 FY17
821.5 908.9 1,079.8
1,289.9 1,542.9
1,914.7
406.1 486.7
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Q4 FY16 Q4 FY17
Total Revenue (RMB millions) (‘000)
692.8 769.1
882.5 1,069.4
1,307.6
1,608.8
350.9 433.1
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Q4 FY16 Q4 FY17
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
as % of net revenues
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
as % of net revenues
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
as % of net revenues
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%
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
Operating Profit and Margin (Unaudited)
(RMB millions)
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.
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%
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
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%
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
82/16%(2)
54/11%(3)
66/14%(4)
Net Profit and Margin (Unaudited)
(RMB millions)
(1)
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) 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!
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