Robert Half Inc. · NYSE:RHI
Robert Half — Investor Presentation (May 2020)
36 slides from Robert Half's investor presentation, May 20, 2020
Slide 1: Investor Presentation
Investor Presentation May 20, 2020
Slide 2: 72 Years of Changing Lives and Helping Companies Succeed
72 Years of Changing Lives and Helping Companies Succeed 1948 1986 1987-2001 2002 Today Originated as Acquired Expanded Launched Offer full spectrum Robert Half business from globally; Protiviti of staffing and Personnel Bob Half introduced consulting Agency specialized solutions brands 2 © 2020 Rob
Slide 3: Local Capabilities, Global Reach
Local Capabilities, The Most Respected Name Global Reach in Staffing and Consulting North America South America Europe Middle East Asia-Pacific 3 © 2020 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 4: U.S. Accounts for More Than Three-Quarters of Staffing Revenue
U.S. Accounts for More Than Three-Quarters of Staffing Revenue Staffing Revenue Mix — Global 22% 78% International United States U.S. staffing operations benefited from unprecedented labor shortages, especially in our specialty areas. Q1 2020 Staffing Revenues 4 © 2020 Robert Half International Inc.
Slide 5: Majority of International Staffing Revenues from Continental Europe
Majority of International Staffing Revenues from Continental Europe Staffing Revenue Mix — International Other 1% United Kingdom 2% Asia-Pacific 3% Continental Europe 12% 22% 78% International United States Canada 4% Q1 2020 Staffing Revenues 5 © 2020 Robert Half International Inc. An Equal Opportun
Slide 6: Germany and Belgium Largest European Markets
Germany and Belgium Largest European Markets Staffing Revenue Mix — Continental Europe Germany 5% Belgium 4% 12% France 2% Continental Other 1% Europe Q1 2020 Staffing Revenues 6 © 2020 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 7: Overall Revenue Mix ― Business Segment
Overall Revenue Mix ― Business Segment Q1 2020 Global Revenue Robert Half Management 12% Resources Robert Half Technology 12% 20% 72% OfficeTeam 16% Protiviti Temporary and Consultant Accountemps 32% Staffing 8% Permanent Placement Q1 2020 Segment Mix 7 © 2020 Robert Half International Inc. An Equal
Slide 8: Full Spectrum of Staffing and Consulting Services
Full Spectrum of Staffing and Consulting Services Specialized Project Project Management Staffing Skills and Deliverables Recruiting 8 © 2020 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 9: Newer Service Offerings = Growing Share of Revenue
Newer Service Offerings = Growing Share of Revenue Annual Revenues (in Billions) $7.0 Other Services Robert Half F&A/Accountemps $6.1B $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 9 © 2020 Robert Half Inte
Slide 10: Cash Flow History
Cash Flow History Operating Cash Flow (in Millions) $600.0 $519.6M $500.0 $400.0 $300.0 $200.0 $100.0 $0.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 10 © 2020 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Ve
Slide 11: Return on Invested Capital
Return on Invested Capital Q1 2020 Versus 20-Year Average 40.0% 31.6% 30.0% Superior ROIC is rooted in 23.1% our ability to generate 20.0% industry-leading profitability on a judiciously employed capital base, including 10.0% growth achieved primarily by organic means. 0.0% 20-Year Average* Q1 2020
Slide 12: Business Strategy
Business Strategy • Value proposition: Only full-time jobs require full-time staff. • Clients value specialization in professional segments. • Middle-market staffing accounts are smaller, less price-sensitive; clients are demanding; quality is key. • Protiviti provides consulting, project management
Slide 13: Full Complement of Staffing and Consulting Solutions
Full Complement of Staffing and Consulting Solutions We offer a uniquely flexible talent pool and deep consulting capability through our staffing and Protiviti brands. Staffing Blended Consulting We provide world- Global and regional Staffing competitors lack class consulting and consulting firms th
Slide 14: Marketing Approach
Marketing Approach Positioned as Traditional media for Digital media for specific quality leader broad brand awareness target audiences through advertising • Radio • Search — paid and organic and PR activities • Locally directed advertising • Digital advertising and retargeting and programs • Email/
Slide 15: Robert Half Digital Strategy
Robert Half Digital Strategy Winning the Digital Race World-class digital customer experience, both online and mobile Data science, artificial intelligence and machine learning power our digital customer experience Robert Half Direct hiring platform gives clients self-service access to our proprieta
Slide 16: Robert Half Digital Strategy
Robert Half Digital Strategy Use proprietary data for competitive advantage Provide AI-based match recommendations to our clients and candidates Augment staff productivity and efficiency with global CRM platform and cloud solutions Blend of high-tech and high-touch 16 © 2020 Robert Half Internationa
Slide 17: Hiring Remains Labor Intensive
Hiring Remains Labor Intensive Robert Half puts equal emphasis on digital innovation and personalized service. In-demand Candidate Legal compliance candidates availability is significant have multiple is fluid and (e.g., wage and hour, offers/counteroffers. ever-changing. payroll taxes, I-9). 17 © 2
Slide 18: Financial Performance
Financial Performance 18
Slide 19: Record Revenues of $6.1B in 2019
Record Revenues of $6.1B in 2019 19 © 2020 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 20: Revenue History (2000 – Q1 2020)
Revenue History (2000 – Q1 2020) Quarterly Global Revenues (in Billions) $1.65 1.55 1.54 $1.55 1.52 1.51 1.48 1.47 1.46 1.47 $1.45 1.40 1.34 1.34 1.35 $1.35 1.31 1.311.30 1.29 1.31 1.32 1.27 1.27 $1.25 1.22 1.231.23 1.22 1.22 1.21 1.18 1.16 1.17 1.15 $1.15 1.10 1.08 1.08 1.06 1.06 1.08 1.031.03 1.02
Slide 21: Robert Half Enterprise Results
Robert Half Enterprise Results Year-Over-Year Revenue Growth (As Adjusted*) 50% 43% 39% 40% 36% 34% 34% 31% 30% 27% 27% 23% 25% 22% 22% 21% 18% 20% 20% 20% 17% 17% 16% 17% 17% 17% 16% 16% 15% 15% 15% 13% 13% 12% 14% 12% 11% 11% 11% 10% 9% 10% 10% 10% 10% 8% 8% 7% 9% 5% 6% 5% 6% 5% 6% 4% 5% 3% 2% 4%3
Slide 22: Staffing Divisions – U.S. vs. International
Staffing Divisions – U.S. vs. International Year-Over-Year Revenue Growth (As Adjusted*) 50% ‒ ‒ U.S. 37% 44% — International: Restated in Constant Currency 40% 35% 36% 36% 33% 28% 31%31% 30% 28% 28% 27% 30% 23% 26% 27% 24% 25% 25% 21% 24% 27% 27% 26% 21% 23% 22% 21% 22% 22% 23% 22% 22% 20% 20% 20%
Slide 23: Temporary vs. Permanent Placement
Temporary vs. Permanent Placement Year-Over-Year Revenue Growth (As Adjusted*) 81% ‒ ‒ Temporary Staffing 75% 67% 62% — Permanent Placement 59% 55% 58% 55% 55% 58% 48% 57% 59% 50% 41% 40% 44% 37% 35% 34% 32% 31% 32% 35% 24% 28% 29% 29% 33% 28% 25% 25% 24% 23% 23% 21% 29% 23% 20% 19% 27% 16% 19% 14%
Slide 24: Temporary and Consulting Staffing Revenues
Temporary and Consulting Staffing Revenues (in Billions) $5.0 4.4 4.3 4.0 4.0 3.9 $4.0 3.7 3.6 3.6 3.4 3.3 3.1 3.1 $3.0 2.6 2.6 2.5 2.3 2.2 $2.0 1.8 1.7 $1.0 $0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 *Adjusted for the impact of different bill
Slide 25: Permanent Placement Revenues
Permanent Placement Revenues (in Millions) $600.0 533 512 $500.0 444 439 427 421 419 395 $400.0 348 336 334 302 $300.0 219 221 189 182 $200.0 136 100 95 $100.0 $0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 *Adjusted for the impact of different bi
Slide 26: Protiviti Revenues
Protiviti Revenues (in Millions) $1,200.0 1,129 $1,100.0 Protiviti crossed $1 billion revenue milestone $1,000.0 958 $900.0 804 817 $800.0 743 $700.0 624 $600.0 543 552 547 528 479 $500.0 453 424 384 386 $400.0 352 $300.0 $200.0 $100.0 $0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 27: Temporary and Consulting Staffing Operating Income
Temporary and Consulting Staffing Operating Income 20-Year History 11.0% 10.0% 10.2% 9.8% 10.2% 9.8% 10.0% 9.5% 9.5% 9.6% 9.3% 9.3% 8.9% 8.9% 9.0% 8.3% 8.0% 7.6% 6.9% 6.9% 7.0% 6.0% 5.0% 4.2% 4.2% 4.0% 3.0% 2.7% 2.2% 2.0% 1.0% 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201
Slide 28: Permanent Placement Operating Income
Permanent Placement Operating Income 20-Year History 25.3% 25.0% 23.0% 22.2% 21.0% 20.3% 19.9% 20.2% 19.4% 19.1% 19.0% 17.7% 17.7% 16.7% 17.0% 15.6% 15.7% 15.0% 14.1% 12.5% 13.0% 11.7% 10.8% 11.0% 9.0% 7.9% 7.0% 5.0% 2.7% 3.0% 1.0% -1.0% -3.0% -5.0% -3.8% -7.0% -6.8% -9.0% 2000 2001 2002 2003 2004 2
Slide 29: Protiviti Operating Income
Protiviti Operating Income Up 37% Year Over Year 20.0% 17.9% 18.1% 18.0% 16.0% 14.0% 12.9% 12.0% 11.2% 11.3% 10.0% 10.3% 9.7% 9.7% 10.0% 8.1% 8.0% 6.0% 3.8% 4.0% 2.4% 2.0% 1.3% 1.2% 0.0% -2.0% -4.0% -2.8% -6.0% -8.0% -8.0% -10.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 30: Strong Balance Sheet
Strong Balance Sheet As of 3/31/20 $2.3B Total assets $250M Cash Virtually zero debt 30
Slide 31: Virtually All Free Cash Flow Returned to Shareholders
Virtually All Free Cash Flow Returned to Shareholders (in Millions) 1 Year 5 Years Dividends $146 37% $625 34% Share Repurchases $250 63% $1,190 66% Total $396 100% $1,815 100% Free Cash Flow $417* $1,926* *Cash flow from operations net of cash used for investing activities. Amounts shown are throug
Slide 32: Quarterly Dividend Increased Annually Since Inception
Quarterly Dividend Increased Annually Since Inception $0.06 Q2 2004 $0.34 Q1 2020 11.6% Compound Annual Growth Rate* *CAGR percentage calculated with record date of Feb. 25, 2020 32 © 2020 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 33: Share Count Reduction as of 3/31/20
Share Count Reduction as of 3/31/20 3 years 5 years 10 years Shares repurchased 12.6M 20.4M 31.8M Share count reduction 9.9% 15.2% 21.8% 33 © 2020 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 34: Market Opportunity — Staffing Services
Market Opportunity — Staffing Services Annual global staffing industry Our personal and digital service offerings revenues exceed are competitive differentiators $400B USD SMBs (majority of our staffing clients) Blended staffing and consulting solutions represent vast, yet with Protiviti make us uni
Slide 35: Expansion of Service Offerings Driving Protiviti Growth
Expansion of Service Offerings Driving Protiviti Growth Solid base of recurring Growing suite of consulting services internal audit and financial controls Financial Technology Operations, services — privacy, data, regulatory security and analytics, risk and controls governance compliance Protiviti/s
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