Slide 1: 4th quarter results 2022
4th quarter results 2022. outstanding year, revenue of € 27.6bn and underlying EBITA of € 1.3bn. Sander van ‘t Noordende, CEO Henry Schirmer, CFO 14 February 2023 | Randstad N.V.
Slide 2: Disclaimer
disclaimer. Certain statements in this document concern prognoses about the changes in the business mix, changes in legislation (particularly future financial condition, risks, investment plans, and the results in relation to employment, staffing and tax laws), the role of of operations of Randstad
Slide 3: Definitions
definitions. EBITA: operating profit before amortization and impairment acquisition-related intangible assets and goodwill, integration costs and one-offs. organic growth is measured excluding the impact of currency effects, acquisitions, disposals and reclassifications. diluted EPS is measured befo
Slide 4: Agenda
agenda. performance 5 financial results & outlook 12 Q&A 18 appendices 19 © Randstad 2023 | 4
Slide 5: Performance
performance. © Randstad 2023 | 5
Slide 6: Outstanding performance in 2022
outstanding performance in 2022. highlights Q4 key financials focus solid fourth quarter revenue +2.4% YoY partner for talent robust level of demand gross margin 20.8%, +40bp YoY new ELT effective Jan 1, 2023 shareholder return proposal EBITA € 364m, 5.2% margin “perform & progress” © Randstad 2023
Slide 7: North America and France
north america france good profitability. strong growth in professionals & perm. ● revenue down 5% (Q3: up 6%) ● revenue up 4% (Q3: up 9%) ○ perm down 12% (Q3: up 15%) ○ perm up 20% (Q3: up 12%) ● US Staffing & Inhouse revenue down 10% (Q3: up 4%) ● Staffing & Inhouse down 1% (Q3: up 5%) ● US Profess
Slide 8: The Netherlands and Italy
the netherlands italy solid profitable growth. continued excellent performance. ● revenue up 2% (Q3: stable) ● revenue up 4% (Q3: up 9%) ○ perm up 30% YoY (Q3: up 53%) ○ perm up 11% (Q3: up 29%) ● Staffing & Inhouse down 2% (Q3: down 3%) ● EBITA margin at 8.0% vs. 6.6% LY ● Professionals up 21% (Q3:
Slide 9: Germany and Belgium
germany belgium continued growth, improving profitability. challenging business environment. ● revenue up 9% (Q3: up 5%) ● revenue down 2% (Q3: stable) ○ perm up 40% YoY (Q3: up 41%) ● Staffing & Inhouse down 5% (Q3: stable) ● Staffing & Inhouse up 9% (Q3: up 5%) ● EBITA margin at 4.2% vs. 6.5% LY ●
Slide 10: Iberia and Other European countries
iberia other european countries robust performance. improving profitability. ● spain revenue down 4% (Q3: up 8%) ● UK revenue up 6% (Q3: up 3%) ○ perm up 8% (Q3: up 48%) ● nordics up 6% (Q3: up 12%) ● portugal revenue up 6% (Q3: up 10%) ● switzerland up 1% (Q3: up 5%) ● EBITA margin at 6.5% vs. 5.9%
Slide 11: Rest of the world and Global businesses
rest of the world global businesses strong growth and solid profitability solid growth of sourceright. ● japan up 11% (Q3: up 9%) ● global businesses up 5% (Q3: up 17%) ● australia & new zealand up 8% (Q3: up 12%) ● monster revenue down 12% (Q3: down 4%) ● india up 15% (Q3: up 18%) ● sourceright up
Slide 12: Financial results & outlook
financial results & outlook. © Randstad 2023 | 12
Slide 13: Solid performance with strong profitability in the fourth quarter
solid performance with strong profitability in the fourth quarter outstanding performance in 2022. Q4 performance Q4 key financials € million Q4 ’22 Q4 ’21 % org. revenue 7,007 6,754 2% gross profit 1,457 1,379 3% • organic revenue up 2% YoY gross margin 20.8% 20.4% • inhouse +6% YoY, professionals
Slide 14: Continued gross margin expansion driven by business mix and pricing discipline
continued gross margin expansion driven by business mix and pricing discipline. Q4 gross margin development YoY Q4 highlights • temp margin + 15bp YoY • perm fees increased +1% YoY, +15bp impact on gross margin • HRS/other +10bp YoY, reflecting continued strong growth in RPO © Randstad 2023 | 14
Slide 15: Operational adaptability & flexibility
operational adaptability & flexibility. Q4 sequential opex bridge disciplined cost management • opex as % of revenue down by 60bp QoQ to 15.6% • personnel expenses -2% sequentially • net reduction of 910 FTE, excl. M&A • Dec exit rate FTE below Q4 © Randstad 2023 | 15
Slide 16: FY: strong free cash flow & robust balance sheet
FY: strong free cash flow & robust balance sheet. Q4 free cash flow strong balance sheet • Q4 FCF € 294m (Q4 2021: € 211m) • net debt € 272m excl. lease liabilities • FY FCF: € 739m (FY 2021: € 590m) • leverage ratio excl. lease liabilities: 0.2 • DSO 52.9, up 1.3 days vs Q4 2021 • shareholder retur
Slide 17: Outlook
outlook. Q1 2023 outlook momentum • gross margin and operating expenses both • Client activity moderated in the fourth expected to be broadly in line sequentially. quarter, and this trend has continued into the start of 2023 amidst macro economic • positive 0.3 working day impact in Q1 2023. uncerta
Slide 18: Questions & answers
questions & answers. © Randstad 2023 | 18
Slide 19: Appendices
appendices randstad. © Randstad 2023 | 19
Slide 20: Outlets by region
outlets by region. end of period Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 North America 1,193 1,216 1,235 1,211 1,208 France 666 653 648 643 645 the Netherlands 613 621 619 625 618 Germany 516 521 526 524 563 Italy 283 280 275 274 274 Belgium & Luxembourg 331 337 353 347 333 Iberia 373 384 387 388 38
Slide 21: Corporate staff by region
corporate staff by region. average Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 North America 7,150 7,230 7,090 6,940 6,890 France 4,910 4,940 4,800 4,670 4,620 the Netherlands 4,110 4,180 4,150 4,140 4,100 Germany 2,860 2,940 2,950 2,950 3,010 Italy 3,140 3,050 2,940 2,790 2,660 Belgium & Luxembourg 2,3
Slide 22: Number of employees working on a temporary basis by region
number of employees working on a temporary basis by region. average Q4 2022 Q4 2021 North America 88,000 100,700 France 85,100 88,100 the Netherlands 67,300 74,400 Germany 38,900 40,800 Italy 59,300 59,800 Belgium & Luxembourg 43,000 47,700 Iberia 62,300 65,300 Other European countries 62,000 66,100
Slide 23: Randstad: human forward
randstad human forward. VM