Randstad Nv · EURONEXT:RAND
Randstad Nv — Q4 2024 Earnings Presentation
22 slides from Randstad Nv's earnings presentation, Feb 12, 2025
Slide 1: 4th quarter results 2024
12th of february 2025 4th quarter results 2024. adaptability and strategic progress for a stronger randstad. 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: Adaptability and strategic progress for a stronger Randstad
adaptability and strategic progress for a stronger randstad. summary key financials Q4 2024 ● adaptability ● revenue € 6.1 BN at -5.5% ● sound strategic progress ● underlying gross margin 18.8% ● position a stronger Randstad ● underlying EBITA € 200M, 3.3% margin © randstad 6
Slide 7: Partner for talent
partner for talent. growth through specialization delivery excellence randstad talent platform © randstad 7
Slide 8: North America: further stabilization
north america: further stabilization. organic revenue growth YoY, last two quarters* ● us: decline rates easing, digital marketplace well received ○ operational: stabilized compared to Q3 ○ digital: sequential improvement ● canada: ongoing tough environment EBITA margin (underlying)** * YoY organic
Slide 9: Northern Europe: sequential improvement
northern europe: sequential improvement. organic revenue growth YoY, last two quarters* ● netherlands: tough manufacturing environment, solid adaptability ● germany: further stabilization and cost adjustments ● belgium: sound sequential improvement, well diversified portfolio EBITA margin (underlyin
Slide 10: Southern Europe, UK & LatAm: mixed trends
southern europe, uk & latam: mixed trends. organic revenue growth YoY, last two quarters* ● france: slowing market, focus on adaptability ● italy: automotive slowing, randstad talent platform live ● iberia: continued strong performance in spain, portugal subdued ● other countries: uk remains weak, l
Slide 11: Asia Pacific: stabilizing, continued strong adaptability
asia pacific: stabilizing, continued strong adaptability. organic revenue growth YoY, last two quarters* ● japan: strong profitability, investments continuing in digital ● australia & new zealand: challenging market ● india: double-digit growth EBITA margin (underlying)** * YoY organic change is mea
Slide 12: Financial results & outlook
02 financial results & outlook. © randstad 12
Slide 13: Q4 2024: adapting the portfolio and reducing the cost base
Q4 2024: adapting the portfolio and reducing the cost base performance key highlights € million Q4 ’24 Q4 ’23 % org. revenue 6,084 6,183 -5.5% ● organic revenue down 5.5% YoY gross profit 1,144 1,281 -12% ○ operational: -/- 4% at € 4.0 BN gross margin* 18.8% 20.7% operating expenses* 944 1,016 -5% ○
Slide 14: Gross margin: mostly impacted by mix and idle time
gross margin: mostly impacted by mix and idle time. Q4 gross margin development YoY key highlights • temp margin -130 bp YoY • adverse impact of geo and business mix • idle time related costs • perm fees -30 bp YoY • HRS/other -30 bp YoY driven by Monster divestment, partly offset by RPO and other H
Slide 15: Costs: continued structural and operational actions taken
costs: continued structural and operational actions taken. Q4 sequential opex bridge (€m) key highlights • opex down 1% QoQ, down 5% YoY • # FTEs down 1% QoQ, down 4% YoY • FY recovery ratio 38% • adapting the portfolio and reducing the cost base © randstad 15
Slide 16: Free cash flow and balance sheet
free cash flow and balance sheet. Q4 free cash flow balance sheet • net debt € 1,280m excl. lease liabilities • Q4 FCF € 87m (Q4 2023: € 291m) • leverage ratio excl. lease liabilities: 1.6x • DSO 54.6, up 1.3 days vs Q4 2023 • regular cash dividend proposal of € 1.62 • ROIC: 8.9% (Q4 2023: 14.6%) pe
Slide 17: Outlook: balancing growth, costs & investments
outlook: balancing growth, costs & investments. Q1 2025 outlook momentum • 0.8 working day less • the development of volumes in 2025 indicates further stabilization • gross margin is expected to be modestly higher sequentially • January in line with Q4 2024 trends • operating expenses are expected t
Slide 18: Questions & answers
03 questions & answers.
Slide 19: Appendices
04 appendices. © randstad 19
Slide 20: Corporate staff by geography
corporate staff by geography. average Q4 2024 Q4 2023* North America 6,520 8,280 the Netherlands 3,850 4,220 Germany 2,220 2,620 Belgium & Luxembourg 2,150 2,270 Other Northern Europe countries 2,530 2,980 Northern Europe 10,760 12,090 France 4,570 4,960 Italy 3,460 3,170 Iberia 2,940 2,670 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 Q4 2024 Q4 2023 * North America 69,900 75,400 the Netherlands 50,500 54,700 Germany 24,800 29,000 Belgium & Luxembourg 38,300 37,700 Other Northern Europe countries 33,100 40,700 Northern Europe 146,600 162,000 France 71,400 78,3
Slide 22: Partner for talent
partner for talent. VM randstad partner for talent.