Slide 1: 2nd quarter 2021 results
2nd quarter 2021 results. Randstad continues to deliver market-leading growth, revenue 3% above 2019. Jacques van den Broek, CEO Henry Schirmer, CFO Randstad N.V. 27 July 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: Q2 2021: positive momentum continued into the 2nd quarter
Q2 2021: positive momentum continued into the 2nd quarter. highlights Q2 key financials resilience & agility continued market-leading growth revenue +38% YoY, +3% vs. ‘19 perm +91% YoY, +1% vs. ’19 diversified portfolio paying off gross margin 19.5% investments in FTEs and digital initiatives talent
Slide 7: North America and France
north america france continued market outperformance. competitive performance. ● revenue up 23% YoY (vs. Q2 ‘19: up 1%) ● revenue up 63% YoY (vs. Q2 ‘19: down 5%) ○ perm up 116% YoY (vs. Q2 ‘19: up 9%) ○ perm up 94% YoY (vs. Q2 ‘19: down 6%) ● US Staffing & Inhouse revenue up 33% YoY ● Staffing & In
Slide 8: The Netherlands and Germany
the netherlands germany strong performance. rebounding in all sectors. ● revenue up 37% YoY (vs. Q2 ‘19: up 4%) ● revenue up 46% YoY (vs. Q2 ‘19: stable) ○ perm up 50% YoY (vs. Q2 ‘19: down 26%) ● Staffing & Inhouse up 66% YoY ● Staffing & Inhouse up 44% YoY ● Professionals down 6% YoY ● Professiona
Slide 9: Belgium and Italy
belgium italy strengthening market leadership. very strong results. ● revenue up 37% YoY (vs. Q2 ‘19: down 3%) ● revenue up 64% YoY (vs. Q2 ‘19: up 15%) ○ Staffing & Inhouse up 38% YoY ● perm up 181% YoY (vs. Q2 ‘19: up 35%) ● EBITA margin at 5.5% vs. 2.7% LY ○ diversified portfolio contributing ● E
Slide 10: Iberia and Other European countries
iberia other european countries solid profitability maintained. improvement across the board. ● spain revenue up 59% YoY (vs. Q2 ‘19: down 1%) ● UK revenue up 64% YoY (vs. Q2 ‘19: up 12%) ● portugal revenue up 14% YoY (vs. Q2 ‘19: down 15%) ● nordics up 20% YoY (vs. Q2 ‘19: down 6%) ● EBITA margin a
Slide 11: Rest of the world and Global businesses
rest of the world global businesses revenue 16% above 2019 levels. strong performance by sourceright. ● japan up 5% YoY (vs. Q2 ‘19: up 3%) ● global businesses up 41% YoY (vs. Q2 ‘19: up 6%) ● australia & new zealand up 33% YoY (vs. Q2 ‘19: up 24%) ● monster revenue stable YoY (vs. Q2 ‘19: down 31%)
Slide 12: Financial results & outlook
financial results & outlook. © Randstad 2021 | 12
Slide 13: Q2 2021: another strong set of results
Q2 2021: another strong set of results. Q2 performance Q2 key financials € million Q2 ’21 Q2 ’20 % org. revenue 6,078 4,437 38% gross profit 1,183 830 45% • organic revenue up 38% YoY, group gross margin 19.5% 18.7% revenue 3% above 2019 level operating expenses* 923 763 24% opex % 15.2% 17.2% EBITA
Slide 14: Q2 2021 gross margin improving, stable pricing environment
Q2 2021 gross margin improving, stable pricing environment. Q2 gross margin development YoY Q2 highlights • temp margin +30bp YoY • perm fees increased 91% YoY, +50bp impact on gross margin • HRS/other broadly stable YoY © Randstad 2021 | 14
Slide 15: Investing for profitable growth
investing for profitable growth. Q2 sequential opex bridge focus on future fit investments • opex of €923m, 15.2% of revenue, down 30bp vs Q1 2021 • sequential net addition of 2,380 FTEs • continued momentum for accelerating investments in growth and digitalization © Randstad 2021 | 15
Slide 16: Sound balance sheet
sound balance sheet. Q2 2021 free cash flow sound balance sheet • Q2 FCF € 78m (vs. € 530m in Q2 2020) ● net cash € 160m excluding lease liabilities • strong YoY improvement in EBITDA • DSO 52.1, down vs. 52.6 in Q1 2021 • partially offset by the countercyclical • leverage ratio excl. IFRS 16: -0.2
Slide 17: Conclusion and outlook: gearing up for growth
conclusion and outlook: gearing up for growth. Q3 conclusion and outlook activity momentum • gross margin expected to be flat sequentially • operating expenses are expected to be • Q2 2021 organic revenue per working day slightly higher sequentially, reflecting the increased by 38.2% YoY and by 3% c
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 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 North America 1,204 1,156 1,158 1,130 1,106 France 641 648 642 643 643 the Netherlands 599 591 583 603 603 Germany 565 522 493 487 489 Belgium & Luxembourg 328 321 321 329 325 Italy 272 270 263 263 262 Iberia 389 384 379 384 38
Slide 21: Corporate staff by region
corporate staff by region. average Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 North America 6,410 6,010 5,860 5,660 5,680 France 4,370 4,310 4,290 4,090 3,460 the Netherlands 3,810 3,650 3,580 3,640 3,740 Germany 2,820 2,670 2,510 2,140 2,170 Belgium & Luxembourg 2,030 1,940 1,940 1,820 1,460 Italy 2,4
Slide 22: Staffing employees by region
staffing employees by region. average Q2 2021 Q2 2020 North America 89,000 72,600 France 86,400 56,800 the Netherlands 76,400 55,800 Germany 38,700 25,400 Belgium & Luxembourg 43,400 28,600 Italy 52,700 36,200 Iberia 58,300 43,100 Other European countries 64,000 49,200 Rest of the world 134,400 118,
Slide 23: eaese
eaese human forward WM