3rd Quarter FY2016
IR Presentation Zhaopin Limited
May 2016
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
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 Mar 31, 2016;
(3) Source: company data, unique customers for the quarter ended Mar 31, 2016; a “unique customer” refers to a customer that purchases our online recruitment services during a
specified period. We make adjustments for multiple purchases by the same customer to avoid double counting. Each customer is assigned a unique identification number in our
information management system. Affiliates and branches of a given customer may, under certain circumstances, be counted as separate unique customers;
(4) Source: company data, average daily unique visitors for the quarter ended Mar 31, 2016;
(5) Source: iResearch, average monthly visits per user for the quarter ended Mar 31, 2016.
Our Strong Market Leading Position and Track Record of Growth
11.0
Average monthly visits per user(5)
25%
Job placement rate(1)
115.3mn
Registered users(2)
352,379
Unique customers(3)
2.9mn
Average daily unique visitors(4)
Highest growth in revenue and no. of unique customers
#1
#1
#1
#1
#1 #1
What Our Market Opportunities Are
40
139
161
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)
2016e 2018e (2)
115
Penetration
rate: 29%
(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 2015 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 Mar 31, 2016;
(3) Zhaopin’s number of registered users as of Mar 31, 2016;
(4) Source: Zhaopin survey
Large and Growing Employer Market
0.42
3.4
4.4
Zhaopin's number of unique customers
Number of online employers in China
Under-penetrated and Growing Employer(1) Base
Penetration
rate: 12%
(2)
2016e 2018e
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 2015 2016e 2017e 2018e
Number of Online Employers in China(1)
2.5 2.9
3.4 3.9
4.4
2014 2015 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
Zhaopin’s value-added services
• Priority listing
• Olive Branch
• Easy Hire
• Quick Feedback
Customers’ willingness
to pay
Actual cost 5%-10% 90%-95%
Untapped budget
What Employers Need
What We Can Offer
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
Purchase services from other venders
Spent on Zhaopin’s services
~¥30/ job posting
~¥20-40/ resume
download
Low take rate
at the stage
Campus recruitment
service
Assessment service
Education & training service
Recruitment process
outsourcing
Highpin.cn
How We Are Capturing These Opportunities
Competitive Advantages vs. Other Players
No. of Unique Customers(2) (in ‘000)
292 315 322 329 352
288 301 296 287 302
101% 105% 109% 115% 117%
Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16
Zhaopin Player 2
Zhaopin/ Player 2
97 101 105 110 115
87 91 94 96 100
112% 111% 112% 115% 115%
Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 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 offers full suite of services vs. vertical and niche players
Vertical players
Zhaopin’s market leadership(1) is leading to faster growth of jobseekers and employers
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% 21% 21% 19% 18%
11% 7%
4% 3% 5%
Q1
FY15
Q2
FY15
Q3
FY15
Q4
FY15
Q1
FY16
Q2
FY16
Q3
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 March 31, 2016, the number of
registered users as of March 31, 2016 and the number of unique customers for the three months ended March 31, 2016. 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%
186%
153%
109% 108% 111% 111% 122% 125% 120%
Q1
FY15
Q2
FY15
Q3
FY15
Q4
FY15
Q1
FY16
Q2
FY16
Q3
FY16
Monthly visits per user
Daily unique visitors
Highly productive nation-wide sales network
Strong Sales and Marketing Capabilities to Support Growth
Sales Force of ~3,220
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
= =
=
+ TMT
+ Finance
+ Real Estate
+ Education/ Training
+ Automobile
Main Industry Sectors
ꔷ Top 5 industries with highest recruiting demand in China
ꔷ Diversified customer portfolio to de-risk our business
R&D Force of ~130
Product vision: Good to Use + Simple to Use + Fun to Use
Focus on Delivering Value to Users (1/2)
Recent Product Innovation (1/2)
12
Priority Listing Quick Feedback Easy Hire Zhaopin Virtual
Currency
Premium charged for
higher search results,
generating better
recruiting results for
employers.
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.
Olive Branch (Invite job seekers to apply)
Direct Interview Scheduling (Request interviews with 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.
Direct Interview Scheduling is a mobile-based app that
allows job seekers to skip the application process and
directly request an interview. By removing a step in the
process, interview conversion rates more than double for jobseekers.
Product vision: Good to Use + Simple to Use + Fun to Use
Focus on Delivering Value to Users (2/2)
Recent Product Innovation (2/2)
13
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
~7 million confirmed
interviews sent through
Zhaopin’s platform
during Q3 FY16
Source: company data
14
15
Further Deepen Our Relationships with A Complementary Suite of Service Offerings
• Positioning: focus on high-end job
seekers with RMB100K+ annual salary
(~RMB200K for tier-1 cities)
• ~260,000 job vacancies provided
• ~63,000 real-name registered
headhunters
• 11.5mn top talents’ CVs and 4.8mn 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.
Student Loan
RPO provides one-stop recruiting professional
service.
Recruitment Process Outsourcing
A training program for fresh-graduate
employees.
Training program
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
Source: company data
16
Highpin’s Revolutionary Dispatch Business Model
1.Corporate HRs post job vacancies
to Highpin Dispatch platform
2. Job vacancies automatically
dispatched to suitable individual
headhunters using Highpin’s
proprietary matching algorithm
3. Headhunters recommend CVs to HRs
4. HRs download interested CVs
and pay a fee
Capture Rapidly Growing Mobile Audience
Mobile Growth(1)
261% 267% 242%
336%
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%
75%
22%
52%
15%
42%
39%
7%
17
• 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 Zhaopin’s
closed-loop transaction
platform
Notes:
Source: company data
(1) Q3 FY16 divided by Q3 FY15
Identify and match job
seeker needs at various
stages in their career
lifecycle through
personalized services.
Leveraging Big Data to Accelerate Expansion
Database of 115mn
registered users &
40mn active users
Evolve our service offerings to deliver more value, opening up large opportunities across the human capital management industry 18
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.
Seek inorganic growth opportunities to accelerate growth
Actively Assessing M&A Opportunities
19
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.
14.4%
85.6%
Online recruitment services revenue
Other Services Revenue
• Lower contribution
from other services
compared to previous
quarter due to decline of
campus recruitment
services as a result of
decreasing demand and
intensified competition
Key Financial Highlights for Q3 FY16
21
Notes:
(1) Total revenue and margins refer to the quarter ended Mar 31, 2016.
(2) Cash position as of Mar 31, 2016.
(3) All margins are calculated as a % of net revenue.
Total Revenue
RMB378.1mn, +19% YoY
Strong Cash Position
RMB2.1bn
Gross Margin
91%
Operating Margin
18%
Net Margin
17%
Net Cash per ADS
US$5.49
Q3 FY16 Revenue Breakdown
Continuing to Generate Strong Revenue Growth Underpinned by Growth in Unique Customers
222 257
335
418
292
352
FY2012 FY2013 FY2014 FY2015 Q3 FY15 Q3 FY16
3,114 2,991 2,633 2,556
898 919
FY2012 FY2013 FY2014 FY2015 Q3 FY15 Q3 FY16
821.5 908.9
1,079.8
1,289.9
317.5 378.1
FY2012 FY2013 FY2014 FY2015 Q3 FY15 Q3 FY16
Total Revenue
(RMB millions) (‘000)
692.8 769.1 882.5
1,069.4
261.7 323.8
FY2012 FY2013 FY2014 FY2015 Q3 FY15 Q3 FY16
Online Recruitment Services Revenue
(RMB millions)
Average Revenue per Customer (ARPU)
(RMB)
No. of Unique Customers
22
High Cash Generation and Strong Visibility on Forward Revenue
Strong cash balance and opportunities to re-invest
and grow the business
Technology and product –
personnel and development
costs for new products or
service offerings
Marketing – offline or online
advertising
Strengthen sales force
Explore M&A opportunities
23 (1) Including restricted cash and cash equivalent, time deposits and restricted time deposits.
330.0 390.7
488.7
603.2 674.7
FY2012 FY2013 FY2014 FY2015 Q3 FY16
Deferred Revenue (As of fiscal year-end or quarter-end)
(RMB millions)
617.8
944.9
1,536.7
1,910.1
2,131.9
FY2012 FY2013 FY2014 FY2015 Q3 FY16
(As of fiscal year-end or quarter-end)
(RMB millions)
Cash Balance(1)
1
2
3
4
Strong Cash Flow Thanks to the Scalability of Online-focused Business Model
54
103
75 92
75
164
79
133
45
151
101
Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16
Operating cash flow (RMB millions)
Operating Cash Flow (Unaudited)
50
98
62
84
61
156
71
130
39
143
96
Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16
Free cash flow (RMB millions)
Free Cash Flow (Unaudited)
24
109
138 128 131 133
165 156 160 171 201 210
47% 49% 49% 47% 46% 49% 50% 48% 50% 50%
56%
Q1
FY14
Q2
FY14
Q3
FY14
Q4
FY14
Q1
FY15
Q2
FY15
Q3
FY15
Q4
FY15
Q1
FY16
Q2
FY16
Q3
FY16
as % of net revenues
25
Sales and Marketing Expenses and Margin (Unaudited)
(RMB millions)
165
194 185 192 200
228 216 225
246
287 274
71% 69% 70% 69% 69% 68% 69% 68% 71% 71% 73%
Q1
FY14
Q2
FY14
Q3
FY14
Q4
FY14
Q1
FY15
Q2
FY15
Q3
FY15
Q4
FY15
Q1
FY16
Q2
FY16
Q3
FY16
as % of net revenues
Operating Expenses and Margin (Unaudited)
(RMB millions)
56
56 56 61
67 63 60 65 74 86
64
24%
20% 21% 22% 23%
19% 19% 19% 22% 21%
17%
Q1
FY14
Q2
FY14
Q3
FY14
Q4
FY14
Q1
FY15
Q2
FY15
Q3
FY15
Q4
FY15
Q1
FY16
Q2
FY16
Q3
FY16
as % of net revenues
General and Administrative Expenses and Margin (Unaudited)
(RMB millions)
217 250
238
258 268 300
279 308 322
356 340 93%
88%
90%
93% 93%
89% 89%
93% 94%
88%
91%
Q1
FY14
Q2
FY14
Q3
FY14
Q4
FY14
Q1
FY15
Q2
FY15
Q3
FY15
Q4
FY15
Q1
FY16
Q2
FY16
Q3
FY16
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.
Sustained Levels of Profitability Despite Re-investment to Sustain Future Growth
26
62 59 63
74 77 78 69
86 82 73
59
26%
21% 24%
26% 27% 23% 22%
26% 24%
18% 16%
Q1
FY14
Q2
FY14
Q3
FY14
Q4
FY14
Q1
FY15
Q2
FY15
Q3
FY15
Q4
FY15
Q1
FY16
Q2
FY16
Q3
FY16
as % of net revenues
Non-GAAP Operating Income and Margin (Unaudited)
(RMB millions)
57
44
53 63 68
68 64
76 76 66
55
25%
16%
20% 23% 24%
20% 20% 23% 22%
16% 15%
Q1
FY14
Q2
FY14
Q3
FY14
Q4
FY14
Q1
FY15
Q2
FY15
Q3
FY15
Q4
FY15
Q1
FY16
Q2
FY16
Q3
FY16
as % of net revenues
Non-GAAP Net 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.
(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.
Sustained Levels of Profitability Despite Re-investment to Sustain Future Growth(Cont.)
52 56 53
67 68 72 63
83 77
69 66
22% 20% 20%
24% 24% 21% 20%
25% 22%
17% 18%
Q1
FY14
Q2
FY14
Q3
FY14
Q4
FY14
Q1
FY15
Q2
FY15
Q3
FY15
Q4
FY15
Q1
FY16
Q2
FY16
Q3
FY16
as % of net revenues
Operating Profit and Margin (Unaudited)
(RMB millions)
47
41 43
56 60
62 58
73 71
62 62 20%
14% 17%
20% 21%
18% 19%
22% 21%
15% 17%
Q1
FY14
Q2
FY14
Q3
FY14
Q4
FY14
Q1
FY15
Q2
FY15
Q3
FY15
Q4
FY15
Q1
FY16
Q2
FY16
Q3
FY16
as % of net revenues
Net Profit and Margin (Unaudited)
(RMB millions)
(1)
Healthy Growth in Key Operational Metrics
27
1.4
1.8 2.2
2.3 2.2
2.9
FY2012 FY2013 FY2014 FY2015 Q3 FY15 Q3 FY16
No. of Completed Resumes
41.3
57.1 66.5
73.9 71.4 80.8
FY2012 FY2013 FY2014 FY2015 Q3 FY15 Q3 FY16
56.6
76.9 89.5
100.8 97.3
115.3
FY2012 FY2013 FY2014 FY2015 Q3 FY15 Q3 FY16
No. of Registered Users (As of fiscal year-end or quarter-end)
(in millions)
7.6
11.0
18.1
25.6
6.2 9.2
FY2012 FY2013 FY2014 FY2015 Q3 FY15 Q3 FY16
No. of New Job Postings (in millions)
Average Daily Unique Visitors
(in millions)
(As of fiscal year-end or quarter-end)
(in millions)
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