Slide 1: 4th quarter & FY 2020 results
4th quarter & FY 2020 results. Randstad delivers solid and competitive performance in an exceptional 2020. Jacques van den Broek, CEO Henry Schirmer, CFO Randstad N.V. 9 February 2021
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 2021 | 4
Slide 5: Performance moving forward
performance moving forward. © Randstad 2021 | 5
Slide 6: Q4 and FY 2020: significant recovery, solid performance
Q4 and FY 2020: significant recovery, solid performance. FY 2020 Q4 key financials resilience & agility achievements broad based recovery organic growth -3.6% diversified portfolio paying off successful #newways program EBITA € 264m, 4.6% margin strong operational agility strong FCF: € 1,132m recove
Slide 7: North America returned to growth; France market outperformance
north america france returned to growth. market outperformance. ● revenue up 1% (Q3: down 10%) ● revenue down 7% (Q3: down 16%) ○ perm down 21% (Q3: down 33%) ○ perm down 10% (Q3: down 20%) ● US Staffing & Inhouse revenue up 7% (Q3: down 9%) ● Staffing & Inhouse down 6% (Q3: down 14%) ● US Professio
Slide 8: The Netherlands strong social responsibility; Germany industrial sectors continued recovery
the netherlands germany strong social responsibility. industrial sectors continued recovery. ● revenue down 6% (Q3: down 17%) ● revenue down 5% (Q3: down 21%) ○ perm down 25% (Q3: down 43%) ● Staffing & Inhouse down 4% (Q3: down 23%) ● Staffing & Inhouse down 7% (Q3: down 19%) ● Professionals down 1
Slide 9: Belgium strengthening market leadership; Italy full recovery at strong margins
belgium italy strengthening market leadership. full recovery at strong margins. ● revenue down 3% (Q3: down 12%) ● revenue stable (Q3: down 10%) ○ Staffing & Inhouse down 3% (Q3: down 15%) ● perm down 12% (Q3: down 24%) ● EBITA margin at 7.1% vs. 6.4% LY ○ diversified portfolio contributing ● EBITA
Slide 10: Iberia strong recovery continued; other European countries
iberia other european countries strong recovery continued. broad based recovery. ● spain revenue down 5% (Q3: down 16%) ● UK revenue down 14% (Q3: down 23%) ● portugal revenue down 3% (Q3: down 13%) ● nordics down 13% (Q3: down 15%) ● EBITA margin at 5.0% vs. 5.9% LY ● switzerland down 1% (Q3: down
Slide 11: Rest of the world solid performance; global businesses
rest of the world global businesses solid performance. reskilling initiatives paying off. ● japan down 4% (Q3: down 3%) ● global businesses down 7% (Q3: down 17%) ● australia & new zealand down 5% (Q3: down 5%) ● monster revenue down 26% (Q3: down 29%) ● india up 1% (Q3: up 5%) ● sourceright down 2%
Slide 12: Financial results & outlook
financial results & outlook. © Randstad 2021 | 12
Slide 13: Q4 2020 continued improving momentum
Q4 2020 continued improving momentum. Q4 performance Q4 key financials € million Q4 ’20 Q4 ’19 % org. revenue 5,693 5,995 (4)% gross profit 1,108 1,201 (6)% gross margin 19.5% 20.0% • organic revenue down 4%, improving operating expenses* 844 909 (4)% momentum throughout the quarter opex % 14.8% 15.
Slide 14: Q4 2020 gross margin impacted by mix, stable pricing
Q4 2020 gross margin impacted by mix, stable pricing. Q4 gross margin development YoY Q4 highlights • temp margin down 10bp YoY, impacted by mix related effects, pricing climate stable • perm fees declined 19% YoY, -30bp mix impact on gross margin • HRS/other -10bp YoY, impacted by mix effects © Ran
Slide 15: Utilizing the flexibility of our cost base
utilizing the flexibility of our cost base. Q4 sequential opex bridge tapping into the flexibility of the cost base • good momentum for accelerating investments in growth and digitalization • cost optimization program of € 120m on track • safeguarding future fit investments © Randstad 2021 | 15
Slide 16: Strong FCF generation in FY 2020
strong FCF generation in FY 2020. Q4 2020 free cash flow sound balance sheet • net cash € 333m excluding lease liabilities (incl. CICE sale in Q3 2020) • Q4 FCF € 120m (vs. € 424m in Q4 2019) • leverage ratio excl. IFRS 16: -0.4 (Q4 • reflects investments in working capital 2019: 0.7) driven by topl
Slide 17: Conclusion and outlook: gearing up for growth
conclusion and outlook: gearing up for growth. Q1 2021 outlook January activity momentum vs Q4 NAM • volumes in January are reaching last year’s FR pre-pandemic levels, with continued improved NL momentum GER • gross margin expected to be modestly lower BEL sequentially due to seasonality IBE • oper
Slide 18: Questions & answers
questions & answers. © Randstad 2021 | 18
Slide 19: Appendices
appendices randstad. © Randstad 2021 | 19
Slide 20: Outlets by region
outlets by region. end of period Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 North America 1,158 1,130 1,106 1,136 1,153 France 642 643 643 649 640 the Netherlands 583 603 603 647 653 Germany 493 487 489 487 582 Belgium & Luxembourg 321 329 325 328 327 Italy 263 263 262 262 259 Iberia 379 384 388 388 38
Slide 21: Corporate staff by region
corporate staff by region. average Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 North America 5,860 5,660 5,680 5,880 5,830 France 4,290 4,090 3,460 4,610 4,690 the Netherlands 3,580 3,640 3,740 3,970 4,090 Germany 2,510 2,140 2,170 2,590 2,640 Belgium & Luxembourg 1,940 1,820 1,460 1,940 2,040 Italy 2,1
Slide 22: Staffing employees by region
staffing employees by region. average Q4 2020 Q4 2019 North America 98,000 97,900 France 79,700 84,800 the Netherlands 69,500 75,200 Germany 34,900 37,800 Belgium & Luxembourg 42,400 46,500 Italy 45,600 53,800 Iberia 58,500 65,400 Other European countries 63,100 61,800 Rest of the world 125,800 120,
Slide 23: eaese
eaese human forward WM