For personal use only - ASX · 2016. 8. 17. · The occurrence of events in the future are subject to risks, ... India 3 QA For personal use only. 5 Ben Hutt CEO & Managing Director

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Global Employment Marketplace – introduction & update 16 August 2016

Search Party Group Ltd (ACN: 139 977 772)

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2 Search Party Business Overview – August 2016

Disclaimer

This Presentation is not a prospectus nor an offer for securities in any jurisdiction nor a securities recommendation. The information in this Presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions in connection with any acquisition of securities, investors should rely on their own examination of the assets and consult their own legal, business and/or financial advisors. The information contained in this presentationhas been prepared in good faith by Search Party Group Ltd, however no representation or warranty expressed or implied is made as to the accuracy, correctness, completeness or adequacy of any statements, estimates, opinions or other information contained in the Presentation.

To the maximum extent permitted by law, Search Party Group Ltd, its directors, employees and agents disclaim all or any loss or damage which may be suffered by any person through the use or reliance on anything contained in or omitted in this Presentation. Certain information in this Presentation refers to the intentions of Search Party Group Ltd, but these are not intended to be forecasts, forward looking statements or statements about future matters for the purpose of the Corporations Act or any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and other factorsthat may cause Search Party Group Ltd’s actual results, performance or achievements to differ from those referred to in this Presentation. Accordingly, Search Party Group Ltd, its directors, officers, employees and agents do not give any assurance orguarantee that the occurrence of the events referred to in the Presentation will actually occur as contemplated.F

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Business Introduction

Search Party is a global recruitment marketplace designed to make hiring great people quick, easy, and affordable for businesses of all sizes.

Search Party connects employers, recruiters and their candidates in a single online platform.

Hiring through Search Party is significantly faster, easier, and cheaper than traditional recruitment methods.

Search Party provides cutting edge technology and a new business model for recruiters to evolve and grow profitably using their candidate network. We earn 20% of the recruitment fee when someone gets hired.

The purpose of this presentation is to outline what we do, how we do it, and how the business has performed in the last 6 months.

Search Party Business Overview – August 2016

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Major shareholders (ordinary shares)

Substantial stakeholders

AIMLI Pty Ltd (Associated with Josh Rogers) 18%

TFLT Pty Ltd (Associated with Chairman) 12%

Ben Hutt (CEO) 6%

Corporate Snapshot

$0.10 at prospectus price

387 m

A$ 38.7m

A$ 5.9m (+$1.3m R&D expected)

A$ 0.5m (indicative value)

Share price

# ordinary shares

Market cap

Cash as at 30 June 2016

Surplus investments

SP1

17 August 2016

30 June 2016

ASX code

Expected Listing date

Year end

Top 20 shareholders at listing 67%

Directors, management 25%


Ordinary and fully paid shares 387m

Options $1.08 exercise price, July 2022 91,918

Options $0.25 exercise price, Dec 2016 6,500,000

Options $0.15 exercise price, Aug 2018 30,000,000

ESOP Options $0.10 exercise price 4,994,195

- vest 1/3 Aug ‘17, then monthly for two years

ESOP Performance rights, nil exercise, 1/6 vesting for 15,313,088

- Share price triggers @ $0.333, $0.408 and $0.666

- Mthly net revenue @ $0.5m, $1.0m and $1.5m

Capital structure

Locations and staffSydney 25 Head Office, Product, Engineering

Melbourne 4 Sales

Perth 1 NED

United Kingdom 8 Sales

Canada 5 Sales

USA 1 CCO

India 3 QA

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Ben HuttCEO & Managing Director

• Execution Focused International management consultant with 15 years global experience including 5 years at Macquarie Group

Jason ShepherdCFO

• Finance practitioner with 22 years in small cap tech, M&A, corporate/project finance, structured finance and capital markets

Leadership Team

Search Party Business Overview

Magda WalczakCCO

• ROI-focused tech marketer with 14 years global experience in both B2B and B2C including Google, PayPal and Atlassian

Stuart GatenbyCo-Founder & CTO

• Over 15 years web and start up experience in highly complex technical environments

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Trevor LoewensohnChairman

• Managing Director Alceon• Previously UBS, JP Morgan

Non Executive Directors

Search Party Business Overview

Paul BirdDirector

• Founder & CEO EP2 Payments• Founder & Director Homestar Finance• Previously PBL Media

Charles ThomasDirector

• Chairman and/or Non-exec director for several listed Australian businesses (SOC, AVZ)F

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Global recruitment currently $300bn*

Recruitment Industry$300bn*

Potential $1 trillion+

Only $9bn* of industry value online (only 3%!)

Very small proportion of Recruitment is transacted online.

Massive opportunity to grow the industry by reducing the cost and improving the customer outcomes for everyone (what marketplaces do!)

Staffing Industry AnalystsForbes

***

UK, Australia & Canada $100bn**

McKinsey, The social economy: Unlocking value & productivity through social technologies (2015)

***


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Our current focus is mid-level white collar roles

Search Party works across all role types.

Our focus is the largest portion of the workforce globally.

Currently mostly filled via job boards (slow and painful).

With Recruiter fees at approx. 10% of base salary we are getting real traction.


Skilled/white collar White collarmanagement

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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Hiring happens quickly and easily

Shortlist

Employers shortlist recruiter represented candidates online and set recruitment fees

Screen

Candidates arepre-screened and suggested by connected recruiters

Interview

Employers interview and hire the best

Pay

Search Party manages all payments and earns 20% of the recruitment fee


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Candidates

Employers

RecruitersCandidatesRecruitersEmployers

254,507153

480

Canada

CandidatesRecruitersEmployers

1,007,7273191511

Australia

CandidatesRecruitersEmployers

6,944,916461

2,237

UK

Planned launch Q2/3 FY17

US


More than 16 million CVs = 8.5m unique professional candidates globallyF

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• JobAdvisor is a platform that helps employers tell their story in an open, transparent and honest way.

• Collecting feedback from employees creates ‘social proof’ which employers leverage to improve their ability to hire through all recruitment channels.

• Will be launched in the UK Aug/Sep ‘16 with thousands of UK businesses.

Search Party Business Overview – August 2016 11

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Job SeekerGet recruiter representation & find a new job

RecruiterSource candidates for clients

Job SeekerLearn about companies they want to work for

EmployerShowcase their culture to attract the right people

EmployerUse multiple recruiters to fill roles with best people

RecruiterFree, highly qualified business opportunities

Job Seekers

Employers Recruiters


Search Party ecosystem transforms hiring Employers, Recruiters & Job Seekers F

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13 Search Party Business Overview – August 2016

Overview against market KPIs

Metric Q1 CY‘16 Q2 CY’16 Qtr on QtrGrowth

CQGR* Current Focus

New employer users 1,307 1,315 - +31% Low

New recruiter companies 216 187 -13% +24% Low

CVs Updated / Uploaded n/a 1m n/a n/a Low

Total unique roles with a fee agreed 564 836 +48% +45% High

Value of unique roles with fee agreed $2.05m $2.53m +23% +29% High

Interviews confirmed 536 664 +24% +47% High

Placements confirmed 73 101 +38% +50% High

Gross Payment Volume (recruitment fees billed)** $215k $314k +45% +37% High

Efficiency – placements per 100 “shortlists” 1.05 2.87 +173% n/a High

*CQGR = compound quarterly growth rate since Q4 2014**Search Party earns ~20% of this GPV as transaction fee revenue

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Core drivers of growth next 12 months

Product Innovation

• Platform enhancements & payment automation

• Deep learning, chat-bots, natural language search & other R&D activities

• Mobile

• Candidate build-out

JobAdvisor

• Launch UK August 2016

• Expand seeding strategy to include other geographies early 2017

Plug-ins

• Develop key partners in related verticals

• Implement API Marketplace framework

New Geographies

• Develop capital and operational partners to support expansion to USA, HK, Singapore, Ireland

Our focus is on growing volume and efficiency, which will be achieved by a portfolio of activities


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Detailed Metrics

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Employer UsersQuarterly Sign-ups

• Marketing focus on quality, not quantity, demand gen spend flat and constrained.

• 1,315 Employer User Signups in Q2-2016

• 31% Compound Quarterly Growth Rate since Q4-2014

• 5,960 Employer Users from 4,758 Employer Companies in total since Q4-2014

Quarterly Update— 30 June 2016

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Marketingtacticseffective,asqualityofsignupandconversiontorevenuemuchhigherinmostrecentquarterthanprevious

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Recruitment CompaniesQuarterly sign-ups

• No marketing to Recruiters

• 187 Recruiter Company Signups in Q2-2016


• 1279 Recruiter Users from 788 Recruiter Companies in total since Q4-2014 0

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Weknowwhatwedoisfundamentallyattractivetorecruiters.Focusonincreasingengagementandactivityofcurrentrecruiters,notnewones.

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Roles with Agreed FeesQuarterly

• 836 Roles With Agreed Fees between recruiters and employers in Q2-2016


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#ofRoles



Significantincreaseinquantityandvalueofrolesfromnewandrepeatcustomers.Demonstratesemployerandrecruiterengagement

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Value of unique fees agreed (Rec <> Emp)Quarterly

• Employers offering fees recruiters are happy to work

• $2,525,502 in unique fees agreed between employers and recruiters in Q2-2016 vs. $2,049,432 in Q1-2016 (23% growth)

• If 100% of these roles placed, our Gross Payment Volume would be $2.5m for the quarter.



~3XimprovementineffectivenessfromJan– Jun‘16showswe’reontherighttracktoconvertingrevenueopportunity

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

UKFeesAccepted(AUD) AustralianFeesAccepted(AUD)

CanadianFeesAccepted(AUD) Cumulative

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Interviews ConfirmedQuarterly

• Interviews lead to hires and show good candidates being presented

• 664 Interviews Confirmed in Q2-2016 vs. 536 Interviews Confirmed in Q1-2016 (24% growth)


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InterviewsConfirmedUK Australia Canada Other Cumulative


Conversionfrominterviewtoplacement1in4(andimproving)For

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PlacementsQuarterly

• 101 Placements in Q2-2016 vs. 73 Placements in Q1-2016 (38% growth)


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#ofPlacements



Theengineisworking,customersengaged,nowit’saboutvolumeandvalueofthroughput

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Gross Payment Volume (GPV)Quarterly (AUD)

• This is the value of payments invoiced. We earn 20% of this as our fee.

• $314,419 GPV in Q2-2016 vs. $214,996 GPV in Q1-2016 (46% growth)


• Q1 dip due to initiatives focused on low touch transactional roles $-

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~AUD$1minrecruitmentfeesprocessed,growingsignificantlywithfocusonvolumeandvalueofroles

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Documents

For personal use only - ASX · 2016. 8. 17. · The occurrence of events in the future are subject to risks, ... India 3 QA For personal use only. 5 Ben Hutt CEO & Managing Director