Slide 1: 2nd quarter 2019 results
2nd quarter 2019 results solid performance in uncertain macroeconomic conditions Jacques van den Broek, CEO Henry Schirmer, CFO Randstad N.V. 23 July 2019
Slide 2: Disclaimer
disclaimer. Certain statements in this document concern prognoses about the business mix, changes in legislation (particularly in relation to future financial condition, risks, investment plans and the results of employment, Staffing and tax laws), the role of industry operations of Randstad N.V. an
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 2019 | 4
Slide 5: Performance moving forward
performance moving forward. © Randstad 2019 | 5
Slide 6: Q2 2019 European conditions challenging, robust gross margin
Q2 2019 European conditions challenging, robust gross margin. key financials* growth drivers IT/digital strategy organic growth -1.7% market share gains digital strategy progressing gross margin expansion ROW up 10% global cloud migration EBITA € 277m, 4.7% margin bolt-on M&A in Professionals front-
Slide 7: North America and France
north america france sound EBITA margin expansion. strong focus on client profitability. ● revenue up 1% (Q1: +2%) ● revenue down 2% (Q1: flat) ○ perm up 6% (Q1: flat) ○ perm up 7% (Q1: +9%) ● US Staffing & Inhouse revenue stable (Q1: +3%) ● Staffing & Inhouse down 5% (Q1: down 3%) ● US Professional
Slide 8: The Netherlands and Germany
the netherlands germany gaining share in slowing market. challenging market conditions. ● revenue down 3% (Q1: +1%) ● revenue down 15% (Q1: down 10%) ○ perm up 2% (Q1: +20%) ● Staffing & Inhouse down 19% (Q1: down 13%) ● Staffing & Inhouse down 4% (Q1: flat) ● Professionals down 4% (Q1: down 1%) ● P
Slide 9: Belgium and Italy
belgium italy slowing market trend. strong margin conversion. ● revenue down 4% (Q1: up 1%) ● revenue stable (Q1: up 1%) ○ impacted by automotive weakness ○ market outperformance ○ sound perm growth at +11% (Q1: +29%) ● EBITA margin at 5.7% vs. 7.0% LY ● EBITA margin at 6.6% vs. 6.2% LY © Randstad 2
Slide 10: Iberia and other European countries
iberia other european countries profitable growth continues. mixed trends. ● spain revenue up 3% (Q1: +3%) ● UK revenue stable (Q1: +3%) ○ strong pricing discipline and execution ● nordics down 7% (Q1: down 10%) ● portugal revenue down 3% (Q1: down 6%) ● switzerland growth up 1% (Q1: +2%) ● EBITA ma
Slide 11: Rest of the world and global businesses
rest of the world global businesses double-digit growth, sound conversion. strategic investments. ● japan growth up 9% (Q1: +5%) ● global businesses down 2% (Q1: +4%) ● australia & new zealand grew 2% (Q1: +5%) ● sourceright global solid revenue growth ○ integrated data and technology approach ● ind
Slide 12: Financial results & outlook
financial results & outlook. © Randstad 2019 | 12
Slide 13: Q2 2019 solid operational performance
Q2 2019 solid operational performance. Q2 performance Q2 key financials € million Q2 ’19 Q2 ’18 % org. revenue 5,957 6,022 (2)% gross profit 1,193 1,191 (1)% gross margin 20.0% 19.8% • revenue down 1.7% operating expenses* 916 903 0% opex % 15.4% 15.0% EBITA* 277 288 (5)% • EBITA margin 4.7% (Q2 201
Slide 14: Q2 2019 continued sound pricing drives gross margin
Q2 2019 continued sound pricing drives gross margin. Q2 gross margin development YoY Q2 highlights • temp margin impact +10bp • perm fees grew 2% YoY organically, adding 10bp • HRS/other impact stable © Randstad 2019 | 14
Slide 15: Balanced cost management in Q2 2019
balanced cost management in Q2 2019. Q2 sequential opex bridge Q2 cost management • organic opex stable YoY • selective investments in growth areas, marketing/IT spend up • on track to deliver cost savings program © Randstad 2019 | 15
Slide 16: Sound FY 2019 free cash flow outlook
sound FY 2019 free cash flow outlook. improved free cash flow YoY strong balance sheet • net debt € 2,026m (down € 143m vs. LY) • Q2 FCF € 25m (+ € 35m vs. Q2 2018) including lease liabilities due to IFRS 16 • working capital and taxes paid impacted by • leverage ratio pre IFRS 16: 1.2 (Q2 2018: tim
Slide 17: Conclusion and outlook: continuous tight steering
conclusion and outlook: continuous tight steering. Q2 conclusion and outlook June exit rate NAM FR • June trend in line with Q2 NL GER • Q3 2019 gross margin slightly lower BEL sequentially given seasonality IBE IT • Q3 2019 operating expenses slightly lower RoE sequentially low single-digit growth/
Slide 18: Questions & answers
questions & answers. © Randstad 2019 | 18
Slide 19: Appendices
appendices randstad. © Randstad 2019 | 19
Slide 20: Outlets by region
outlets by region. end of period Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 North America 1,123 1,138 1,142 1,119 1,090 France 631 628 625 645 657 the Netherlands 656 660 658 664 665 Germany 580 589 601 601 595 Belgium & Luxembourg 333 329 326 322 325 Italy 262 264 265 264 266 Iberia 375 377 371 369 36
Slide 21: Corporate staff by region
corporate staff by region. average Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 North America 5,600 5,680 5,840 5,840 5,720 France 4,580 4,540 4,540 4,590 4,500 the Netherlands 4,240 4,270 4,370 4,380 4,360 Germany 2,870 2,880 3,080 3,180 3,120 Belgium & Luxembourg 2,090 2,050 2,130 2,230 2,130 Italy 2,2
Slide 22: Staffing employees by region
staffing employees by region. average Q2 2019 Q2 2018 North America 94,200 98,900 France 90,800 91,000 the Netherlands 81,400 87,200 Germany 41,700 48,800 Belgium & Luxembourg 46,800 48,100 Italy 49,400 48,400 Iberia 64,200 68,700 Other European countries 57,300 63,600 Rest of the world 115,700 110,
Slide 23: eaese
eaese human forward WM