Slide 1: 2nd quarter results 2024
23rd of july 2024 2nd quarter results 2024. Q2 2024: adaptability and strategic progress. sander van ‘t noordende, CEO jorge vazquez, CFO
Slide 2: Disclaimer
disclaimer. Certain statements in this document concern prognoses flexible personnel), achievement of cost savings, changes about the future financial condition, risks, investment in the business mix, changes in legislation (particularly in plans, and the results of operations of Randstad N.V. and r
Slide 3: Definitions
definitions. organic growth: externally reported income statement line items (revenue, gross profit, operating expenses and EBITA) adjusted for the impact of changes in foreign currency ("FX"), the effect of hyperinflation and excluding the impact of acquisitions and disposals. EBITA: operating prof
Slide 4: Agenda
agenda. performance 5 financial results & outlook 12 Q&A 18 appendix 19 © randstad 4
Slide 5: Performance
01 performance. 0''0'1¢ yO © randstad | 5
Slide 6: Q2 2024: adaptability and strategic progress
Q2 2024: adaptability and strategic progress. summary key financials ● strong increase in commercial activities ● revenue € 6.1 BN at -7.5% ● stabilizing revenue ● gross margin 19.8% ● balancing growth, costs & investments ● underlying EBITA € 181M, 3.0% margin © randstad 6
Slide 7: Partner for talent
partner for talent. specialization in action digital marketplaces 1000 FTEs in talent and delivery centers © randstad 7
Slide 8: North America: challenging market conditions remain
north america: challenging market conditions remain. organic revenue growth YoY, last two quarters* ● us: solid adaptability, continue to transform ○ operational talent solutions: signs of recovery ○ digital: remains soft ● canada: tough conditions remain EBITA margin (underlying)** * YoY organic ch
Slide 9: Northern Europe: macroeconomic headwinds, diverging trends
northern europe: macroeconomic headwinds, diverging trends. organic revenue growth YoY, last two quarters* ● netherlands: market volumes subdued, strong adaptability ● germany: streamlining operations, ongoing tough environment with less hours worked per EW and elevated sickness. No signs of recover
Slide 10: Southern Europe, UK & LatAm: positioning for growth
southern europe, uk & latam: positioning for growth. organic revenue growth YoY, last two quarters* ● france: uncertain macroeconomic environment, solid adaptability ● italy: accelerating growth, adding field capacity ● iberia: positive momentum in spain, investing in growth ● other countries: EBITA
Slide 11: Asia Pacific: mixed growth trends, solid adaptability
asia pacific: mixed growth trends, solid adaptability. organic revenue growth YoY, last two quarters* ● japan: strong profitability, adding field capacity in growth pockets ● australia & new zealand: tough conditions remain ● india: gearing up for further growth EBITA margin (underlying)** * YoY org
Slide 12: Financial results & outlook
02 financial results & outlook. © randstad 12
Slide 13: Q2 2024: continued adaptability
Q2 2024: continued adaptability. performance key highlights € million Q2 ’24 Q2 ’23 % org. revenue 6,085 6,465 -7.5% ● organic revenue down -7.5% YoY gross profit 1,203 1,341 -12% gross margin 19.8% 20.7% ○ operational: -/- 6% at € 4.0 BN operating expenses* 1,022 1,070 -5% opex % 16.8% 16.6% ○ prof
Slide 14: Gross margin: impacted by geographical and business mix
gross margin: impacted by geographical and business mix. Q2 gross margin development YoY key highlights • temp margin -40 bp YoY • adverse impact of geographical and business mix • elevated sickness in Northern Europe • perm fees -30 bp YoY • HRS/other -20 bp YoY © randstad 14
Slide 15: Costs: solid adaptability while protecting growth investments
costs: solid adaptability while protecting growth investments. Q2 sequential opex bridge (€m) key highlights • opex flat QoQ, down 5% YoY • # FTEs broadly stable QoQ, down 5% YoY • LQ4 recovery ratio 44% • focus on indirect cost © randstad 15
Slide 16: Sound balance sheet
sound balance sheet. Q2 free cash flow balance sheet • Q2 FCF € 16m (Q2 2023: € 126m) • net debt € 991m excl. lease liabilities • DSO 53.8, up 0.5 days vs Q2 2023 • leverage ratio excl. lease liabilities: 1.0 • ROIC: 11.7% (Q2 2023: 17.6%) • SBB program completed • Monster to combine © randstad 16
Slide 17: Outlook: balancing growth, costs & investments
outlook: balancing growth, costs & investments. Q3 2024 outlook momentum • easier comparison base • the first weeks of July see stable volumes as compared to Q2 • additional 1.1 working day • positioning for growth, managing • gross margin is expected to be modestly selective investments with contin
Slide 18: Questions & answers
questions WV) a oO = W) Cc 40) oa)
Slide 19: Appendices
04 appendices. © randstad 19
Slide 20: Corporate staff by geography
corporate staff by geography. average Q2 2024 Q2 2023 North America 7,580 8,910 the Netherlands 3,950 4,400 Germany 2,450 2,850 Belgium & Luxembourg 2,170 2,290 Other Northern Europe countries 2,800 3,060 Northern Europe 11,380 12,600 France 4,820 4,860 Italy 3,370 3,070 Iberia 2,840 2,420 Other SE
Slide 21: Number of employees working on a temporary basis by geography
number of employees working on a temporary basis by geography. average Q2 2024 Q2 2023 * North America 67,700 78,900 the Netherlands 49,200 56,200 Germany 26,000 32,800 Belgium & Luxembourg 37,300 39,500 Other Northern Europe countries 28,700 33,700 Northern Europe 141,200 162,200 France 78,500 84,6
Slide 22: Partner for talent
partner for talent. VM randstad