Sthree Plc · LSE:STEM
Sthree — Investor Day (November 2017)
128 slides from Sthree's investor day presentation, Nov 15, 2017
Slide 1: SThree Capital Markets Day
SThree Capital Markets Day 15 November 2017
Slide 2: Forward-looking statement
Forward-looking statement The following presentation, including any printed or electronic copy of these slides, the talks given by the presenters, the information communicated during any delivery of the presentation and any question and answer session and any document or material distributed at or i
Slide 3: Agenda
Agenda Review of progress since June 2014 Capital Markets Day Gary Elden, CEO Purpose, Vision & Strategy Gary Elden, CEO Customers & Markets Dave Rees, CEO Continental Europe Financial overview Alex Smith, CFO People overview Natasha Clarke, CPO Q&A and break Deep Dive – regions and sectors USA Germ
Slide 4: Review of progress since June 2014 Capital Markets Day
Review of progress since June 2014 Capital Markets Day Gary Elden, CEO 4
Slide 5: SThree Growth – 5-point Plan: Regional growth opportunities
Capital Markets Day 2014 SThree Growth – 5-point Plan 1. Regional growth opportunities 2. Sectors 3. Contract 4. Organic growth / M&A 5. Infrastructure 5
Slide 6: Progress since Capital Markets Day 2014 – Region
Progress since Capital Markets Day 2014 – Region 9% 10% 6% 31% 24% 20% 11% 23% 22% 2013 2018 2017 % of GP % of GP % of GP 18% 25% 13% 18% 28% 5% 3% 28% 6% UK&I Benelux France DACH USA APAC & ME DACH planned to grow share 2017 share USA planned to grow share 2017 share to 28% by 2018 28% to 22% by 20
Slide 7: SThree Growth – 5-point Plan: Sectors
Capital Markets Day 2014 SThree Growth – 5-point Plan 1. Regional growth opportunities 2. Sectors 3. Contract 4. Organic growth / M&A 5. Infrastructure 7
Slide 8: Progress since Capital Markets Day 2014 – Sectors
Progress since Capital Markets Day 2014 – Sectors 3% 1% 2% 15% 20% 43% 32% 21% 44% 12% 2013 10% 2018 2017 % of GP % of GP 9% % of GP 12% 12% 9% 25% 15% 15% IT Banking & Finance Energy Engineering Life Sciences Other Energy planned to grow share to 25% by 2018 2017 share 9% Notes • 2017 based on Q3 Y
Slide 9: SThree Growth – 5-point Plan: Contract
Capital Markets Day 2014 SThree Growth – 5-point Plan 1. Regional growth opportunities 2. Sectors 3. Contract 4. Organic growth / M&A 5. Infrastructure 9
Slide 10: Progress since Capital Markets Day 2014 – Contract
Progress since Capital Markets Day 2014 – Contract 56% 35% 29% 65% 71% 2013 2018 2017 % of GP % of GP % of GP 44% Perm Contract Contract planned 2018: 65% Contract now 71% of Group ECM accounts for only 20% Notes • 2017 based on Q3 YTD performance 10
Slide 11: SThree Growth – 5-point Plan: Infrastructure
Capital Markets Day 2014 SThree Growth – 5-point Plan 1. Regional growth opportunities 2. Sectors 3. Contract 4. Organic growth / M&A 5. Infrastructure 11
Slide 12: Progress since Capital Markets Day 2014 – Infrastructure
Progress since Capital Markets Day 2014 – Infrastructure 2014 Today 12
Slide 13: Purpose, Vision and Strategy
Purpose, Vision and Strategy Gary Elden, CEO 10
Slide 14: Our goals today
Our goals today 1. 2. 3. Spell out our Provide a financial Show progress strategy outlook to 2022 and potential in a few key regions 4. 5. 6. Deep dive on one Update you on Introduce you to some of sector our Innovation and our leaders and next- opportunity M&A activity generation talent 14
Slide 15: Our purpose
Our purpose: “We bring skilled people together to build the future” 15
Slide 16: Our vision
Our vision: To be the #1 STEM talent provider in the best STEM markets 16
Slide 17: Our operating principles
Our operating principles: 17
Slide 18: Our 5-year strategy to deliver this vision
Our 5-year strategy to deliver this vision Grow and extend Focus on Contract, drive Build infrastructure regions, sectors Permanent profitability for leveraged growth and services Find, retain and Develop and sustain Generate incremental develop great people great customer revenues through relations
Slide 19: Reasons for confidence - the external opportunity
Reasons for confidence - the external opportunity Key megatrends that create positive long-term momentum, particularly for the STEM sector Supply Demand Gig economy Skill shortages Connected cities and Energy mix People want to Demographic shifts and devices Provision is being work flexibly increasi
Slide 20: Reasons for confidence – our competitive strengths
Reasons for confidence – our competitive strengths Contract Portfolio of • More predictable Systems and STEM brands • Knowledge of complex technology, deployed flexibly regulations increasing unified back office barriers to entry Entrepreneurial culture Geographic and sector – “intrapreneurs” Innova
Slide 21: Our multi-brand approach
Our multi-brand approach F) COMPUTERFUTURES progressive” Huxley ) real |_| . . . | = 7 orgtel J 2) fe) ra y. newington@) international (9) Global Enterprise Partners 7) Black H YO E N 24 s|threé’
Slide 22: Our multi-brand approach
(29) Global Enterprise Partners Black 22 s|threé’
Slide 23: Reasons for confidence – our competitive strengths
Reasons for confidence – our competitive strengths Contract Portfolio of • More predictable Systems and STEM brands • Knowledge of complex technology, deployed flexibly regulations increasing unified back office barriers to entry Entrepreneurial culture Geographic and sector – “intrapreneurs” Innova
Slide 24: Customers and Markets
Customers and Markets Dave Rees, CEO Continental Europe 19
Slide 25: Top recruitment markets for staffing revenue
Global recruitment market Top 15 recruitment markets for staffing revenue Staffing Industry Analysts 2016 25
Slide 26: Global recruitment market – Our locations
Global recruitment market Our locations Staffing Industry Analysts 2016 26
Slide 27: Geographical Mix
Geographical Mix 2% 2% 9% 6% 10% 56% 31% 20% 5% 11% 23% 2008 2013 2017 18% 28% 25% 25% 18% 5% 6% UK&I Benelux France DACH USA APAC & ME Notes • 2017 based on Q3 YTD performance 27
Slide 28: Our vision
Our vision: To be the #1 STEM talent provider in the best STEM markets 28
Slide 29: Global STEM Growth
Global STEM Growth High demand versus supply AI will have created more Global connection jobs than it has destroyed within the next three years. High fees and margins AI will push 1.8 million out of work by 2020 but end up Client engagement creating over 2.3 million new roles. Resilient to global tr
Slide 30: Contract in the world
Contract in the world UK&I 78% Contract DACH 63% Contract USA 68% Contract France APAC & MENA 78% Contract Benelux 53% Contract 81% Contract 30
Slide 31: Contract focus
Contract focus Complexity Strong internal Huge growth potential and Regulation knowledge – highly scalable creates barriers Drives key MSP and Need for flexibility client penetration 31
Slide 32: Contract Models – the development since 2012
Contract Models – the development since 2012 Freelancer Model Employed Contract Model (ECM) • Seasoned contractor • Rolled out model in USA, DACH, Holland, • Business to business relationships France, Belgium, APAC • Dominant model in UK and Europe • Significant additional growth platform for Contin
Slide 33: Strategic case for Permanent
Strategic case for Permanent Why? Outcomes • Cash generative • Average salaries £58k* • Candidate becomes customer • Average Fees up +4% YoY* • Future Contractor pipeline • Permanent productivity up 6% • Meets client needs YoY* How? • Focus on key growth markets • Focus on niche markets with higher
Slide 34: Disciplined client segmentation
Disciplined client segmentation Direct Key Business Accounts MSPs • Client segmentation model • Different delivery model for client segments • People plan for each delivery model 34
Slide 35: Key clients
Key clients PHILIPS alaman SIEMENS Medtronic th NovARTIS @Shell HSBC <> & MSD = FohncnGohmon Schlumberger FedEx. KELYOCG = ING Ba —- MCapgemnini Agile1 * Heinekeri LLOYDS BANK an COVANCE > ye. eaetd vob HS ospira Carrefour 25 s|three’
Slide 36: Delivery to the MSPs
Delivery to the MSPs Companies spend circa circa 30% of global $430bn annually spend via MSPs $130bn $115bn Client Recruitment company MSP company 36
Slide 37: Unique STEM market opportunity
MSP Customers Unique STEM market opportunity Huge size and scope Unique market position Disciplined approach Complements existing business 37
Slide 38: Develop and sustain great customer relationships
Develop and sustain great customer relationships 38
Slide 39: Develop and sustain great customer relationships
Develop and sustain great customer relationships Key outcomes: Increased client spend • ‘Early warning’ on Key Accounts • World class NPS scores in key Improved retention regions • Culture of continuous improvement Improved systems 39
Slide 40: Criteria for success
Criteria for success We focus on markets with these characteristics: Strong Additional STEM Contract Permanent trends market opportunity Scale Price 40
Slide 41: Where we will invest
Where we will invest Key large territories Germany USA Key medium territories UK The Netherlands Key opportunities France Japan Key sectors IT Life Sciences Engineering/Energy All fit the attractive market status for us 41
Slide 42: Financial Overview
Financial Overview Alex Smith, CFO 42
Slide 43: SThree: performance 2013 - 2017
SThree: performance 2013 - 2017 43
Slide 44: Performance since 2014 Capital Markets Day
Performance since 2014 Capital Markets Day 2013 Continued remix towards contract 2017 Sales Headcount up +5% CAGR 44% 29% 2013 2017 56% 71% Gross profit up +8%* CAGR Cont Perm Operating Profit up 2.1x by 2017 Record number of runners since 2013 4.3% pts improvement in Operating Profit Conversion Rat
Slide 45: SThree: the plan to 2022
SThree: the plan to 2022 s three’
Slide 46: Economic outlook
Economic outlook Stable and reasonably consistent economic environment Country 2016A 2017F 2018F 2022F United Kingdom 1.8 1.7 1.5 1.7 Stable GDP growth Ireland 5.1 4.1 3.4 2.8 Germany 1.9 2.1 1.8 1.2 Continued Economic uncertainty in UK with orderly exit from the EU Netherlands 2.2 3.1 2.6 1.8 Belgi
Slide 47: 5-year plan to 2022
5-year plan to 2022 Operating Profit aspirations range from £60m to £100m 2017 Consensus Low Medium High Gross Profit £283m £330m £400m £435m +3% CAGR +7% CAGR +9% CAGR Operating Profit £43m £60m £85m £100m +7% CAGR +15% CAGR +18% CAGR Conversion Ratio % 15% 18% 21% 23% Average Sales Headcount +2% C
Slide 48: Key growth drivers
Key growth drivers Consultant Headcount Germany USA Contract Experience Fees Volumes Consultant Economic attractiveness Salaries Fees Productivity Supply / Demand Imbalance Salaries Fees Infrastructure Offices IT platforms Support Services Portfolio Review Further opportunities New product lines / i
Slide 49: Sales Headcount by Region – 2022 medium case
Sales Headcount by Region – 2022 medium case 1% CAGR 11% CAGR 7% CAGR 12% CAGR 1% CAGR 1,200 1,000 GROUP HC CAGR of 7% 800 600 400 200 2017 0 2022 UK&I DACH BENELUX & FR USA APAC & ME Notes • 2017 Headcount at period end is management estimate 49
Slide 50: Regional Gross Profit analysis
Regional Gross Profit analysis 6% 2% 9% 14% 20% 11% 31% 23% 27% 19% 2013 2017 18% 2022 25% 5% 18% 28% 5% 33% 6% UK&I Benelux France DACH USA APAC & ME Further shift towards USA and DACH Notes • 2017 based on Q3 YTD performance • 2022 based on management estimate 50
Slide 51: Sector Gross Profit analysis
Sector Gross Profit analysis 2% 1% 15% 44% 21% 44% 43% 22% 12% 2013 9% 2017 2022 11% 12% 9% 10% 18% 15% 12% ICT Banking Energy Engineering Life Sciences Other Notes • 2017 based on Q3 YTD performance 51 • 2022 based on management estimate
Slide 52: Banking business well positioned with >80% non-UK&I
Banking business well positioned with >80% non-UK&I Diversified global business UK 15% 18% Belgium Netherlands 4% Luxembourg 2017 5% France 2017 6% 34% DACH 7% USA 11% APAC & ME CE 33% of Banking Notes • 2017 based on Q3 YTD performance 52
Slide 53: Possible Brexit scenarios for our Banking business
Possible Brexit scenarios for our Banking business • Banking Executive responsible for Brexit • Opportunities as well as risks • Continental Europe vs UK 2017 • 30%* higher lifetime value of a contract (“LTV”) • 2x GP day rate (“GPDR”) • Margin c. 10% points higher • Average Permanent Fee CE vs UK 5
Slide 54: Proposed relocation of London based Global Support Services
Proposed relocation of London based Global Support Services £2m 250 roles* proposed for relocation (Other) • Property • Professional fees Simple Payback of 2.5 – 3 years £11m (Other) • Dual Running £4m - £5m £1m benefit in 2018, £4m-£5m annualised • Redundancy • 15% - 25% • Recruitment wage savings
Slide 55: Contract – the financial case
Contract – the financial case Seasoned Contractors – avg. salary circa £100k Underpins robust commitment to dividend Resilient in uncertain markets and strong as Greater barriers to entry – cash and compliance markets improve More predictable and visible earnings Higher lifetime value 52% 56% 67% 71
Slide 56: Contract Lifetime Value (“LTV”)
Contract Lifetime Value (“LTV”) INITIAL CONTRACT 1st EXTENSION 2nd EXTENSION Contractor £9,000 GP £5,000 GP £3,700 GP Contractor Starts Finishes 20 weeks 10 weeks 8 weeks Contract Placement Contract Consultants • Run for an average of 38 weeks are more productive • GP of circa £18k • Doing 37% more
Slide 57: The Results – Contract GP doubled since 2013
The Results – Contract GP doubled since 2013 Period End Sales Headcount Gross Profit 1,600 £240m 1,400 £200m 1,200 1,000 £160m 800 £120m 600 £80m 400 200 £40m 0 £0m 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 USA HC CAGR +30% USA GP CAGR +38%* DACH HC CAGR +21% DACH GP CAGR +19%* Netherlands H
Slide 58: A clear and disciplined approach to cash generation
A clear and disciplined approach to cash generation Our priorities for uses of free cash flow Our objectives Fund Group Investment and Support organic growth by investing in: Development • Sales headcount • Contract runner growth • Systems and marketing • Innovation Maintain a strong balance sheet •
Slide 59: Under Medium Case scenario of the 5-year plan to 2022
Under Medium Case scenario of the 5-year plan to 2022, we will: Significantly increase the ü Increased exposure ü Increased investment to contract market in Continental Europe quality of earnings and USA Significantly increase the ü Gross profit increasing ü Double Operating profit by +7% CAGR profi
Slide 60: People
People Natasha Clarke, Chief People Officer 60
Slide 61: Our purpose, vision and operating principles
Our purpose We bring skilled people together to build the future Our vision To be the #1 STEM talent provider in the best STEM markets Our operating principles Build trust Care then act Be clear then aim high 61
Slide 62: Clear Employee Value Proposition
Clear Employee Value Proposition A CAREER WITH A CAREER WITH PURPOSE NO LIMITS We want you to be proud of the work you do, You have control over your own future, with and understand the impact that your actions the freedom to progress within your role and and behaviours have on our customers. maximi
Slide 63: People strategy
People strategy Global talent pools Flexible career paths Aligned reward, recognition and progression Continuous development Celebrate difference Retention 10% improvement year on year 63
Slide 64: Supporting women in the workplace
Supporting women in the workplace Women in STEM • 23% of core STEM jobs in the Identify – female leaders UK held by women • 10% of applicants for A level • 10% promoted in first 4 months Computer Science are female • Gender Pay Gap below • Banking UK females 30% more UK average: 13% vs 18% likely to
Slide 65: Quarterly e-NPS survey
Quarterly e-NPS survey Ensure we keep Evaluate our finger on the motivation and pulse engagement Drive and measure Aligns with interventions that customer address key issues mechanism 65
Slide 66: People awards and recognition
People awards and recognition 66
Slide 67: Q&A
Q&A 67 s three
Slide 68: USA
USA Morgan Kavanagh, Managing Director USA 68
Slide 69: Ambition in the U.S.
Ambition in the U.S. • Be the Top 25 largest staffing To become a major player company in the US (1) in the US specialist staffing sector • Be a Top 10 pure-play STEM staffing company in the US To double GP • Grow operating profit faster than over 5 years gross profit Notes (1) Based on Staffing Ind
Slide 70: U.S. Staffing Market Size
U.S. Staffing Market Size 2018E Growth U.S. Staffing Market Growth USA $137 3% $145.1 $140.7 $136.8 Japan $133.3 $57 7% $124.8 $118.2 U.K. $44 0% Germany $28 7% 2013 2014 2015 2016 2017E 2018P France $25 11% Netherlands $20 5% • The market is estimated to continue its growth trajectory in 2018 Austr
Slide 71: U.S. STEM opportunity
U.S. STEM opportunity IT • Market size: $30bn in 2017 (largest) • 4% estimated market growth in 2018 • Outside of Top10, 1% market share or less Place & Search Engineering and Energy 13% • Market size: $8bn in 2017 (3rd largest) (1) • 3% estimated market growth in 2018 • Outside of Top11, 1% market
Slide 72: Secular shift to contingent workforce
Secular shift to contingent workforce • Growth of freelancers • Temporary penetration • Increasing complexity compared to the overall rates are at record and risk around workforce is accelerating levels regulatory at a rate of 3x environment Number of people freelancing 57.3M 55M 53.7M 53M 2014 2015
Slide 73: Track Record in the U.S.
Track Record in the U.S. Period end Sales Headcount Total Gross Profit 14% ICT 32% Banking & Finance PERMANENT 46% 2017 23% Energy 2017 CONTRACT Engineering 68% 1% 16% Life Sciences Notes • *in constant currency • 2017 Gross Profit based on consensus • 2017 mixes based on Q3 YTD • 2017 headcount bas
Slide 74: Contract and Perm focus
Contract and Perm focus • Continue steady balance towards 29% Contract Perm 32% • Ongoing growth in both • 5-Yr Headcount CAGR: 11% Perm and Contract 68% disciplines 71% Contract • Separate Perm and • 5-Yr Headcount CAGR: 14% Contract leadership and Contract Headcount Perm Headcount org structure *O
Slide 75: Infrastructure and Regional Emphasis
Infrastructure and Regional Emphasis • Hub & Spoke model Minneapolis Chicago Boston • Balance headcount away from high-cost New York locations • Maximise office Opening 2018 Wash. D.C. utilisation San Francisco San Diego Austin Houston 75
Slide 76: Find, retain and develop great talent
Find, retain and develop great talent • Retention to drive productivity and growth • Organic growth driven by meritocratic and entrepreneurial career path • Management tenure and capability 76
Slide 77: Customers & Services
Customers & Services Customers Services MSP alliance strategy Investment in infrastructure to support • MSP capability embedded in every accelerated growth in employed (“W2”) brand and nationally coordinated contractor volume • Acquire and penetrate MSP programs 67% CAGR • Cost-effective delivery fo
Slide 78: Germany
Germany Timo Lehne, Managing Director 78
Slide 79: Ambition in Germany
Ambition in Germany To become the largest STEM specialty • Consolidate Top 5 position into recruitment agency ’go to’ STEM brand To double GP • Maximise global reach and delivery over 5 years Notes (1) Based on gross profit 79
Slide 80: The opportunity
The opportunity Demand side Structural growth • Low unemployment roles filled via agencies • Shrinking workforce Recruitment • Growing economy sector revenue in Germany 80% 2007: €16.4bn Supply side 2014: €25.6bn • +90% recruitment 2021: €39.3bn sector revenue over 20% the past 10 years • Significan
Slide 81: The size of the IT opportunity
The size of the IT opportunity 2016 key IT recruitment players IT Freelance 2015 to 2017 Market grew c. 10% % Growth € Turnover - we grew 25%+ SThree +27% Hays 985m Etengo +25% GULP 356m Fastest growing large recruiter GULP +19% Allgeier 121m Hays +16% SThree 108m Top itservice +6% Etengo 92m Solcom
Slide 82: Potential based on our Dutch business
Potential based on our Dutch business • Circa 1,800 freelancers • GDP of $771bn • Potential of circa 8,000 freelancers = quadruple our existing business • GDP of $3,433bn 82
Slide 83: Track record Germany
Track record Germany Period end Sales Headcount Total Gross Profit ICT 20% Banking & Finance 37% PERMANENT Energy 2017 2017 14% 56% Engineering 63% CONTRACT 4% 6% Life Sciences Other Notes • *in constant currency • 2017 Gross Profit based on consensus • 2017 mixes based on Q3 YTD • 2017 headcount ba
Slide 84: Regions, sectors and services
Regions, sectors and services Full STEM Continued growth Extremely fragmented opportunity of Permanent marketplace v Permanent market No. 1 professional Multi-brand model was €4bn in 2016 staffing company, deployed broadly with <1% of total Permanent market 84
Slide 85: Accelerate Contract growth among Freelancers
Regions, sectors and services Accelerate Contract Strengthen Employed Contractor Model (AÜG) growth among • AÜG an additional 56% on top of Freelancers Freelancers • Potential for over 1,000 runners at similar share to Freelance 85
Slide 86: Infrastructure for growth
Infrastructure for growth Hamburg Strong home-grown management Berlin Major German cities Dusseldorf Opportunity to scale by following Frankfurt customers Operational model Stuttgart Munich 86
Slide 87: Find, retain and develop great talent
Find, retain and develop great talent • Substantial investment in compelling employer proposition • Improved productivity over medium term 87
Slide 88: Develop and sustain strong customer relationships
Develop and sustain strong customer relationships MSP strategy Scalable infrastructure Flexible deployment for Key Accounts of the multi-brand model 88
Slide 89: Netherlands
Netherlands Kurt Schreurs, Managing Director, Benelux & France 89
Slide 90: Ambition in Netherlands
Ambition in Netherlands To continue to dominate the STEM Contract space • Plan to consolidate market leadership To double GP • Maximise global reach and delivery over 5 years Notes (1) Based on gross profit 90
Slide 91: Netherlands market opportunity
Netherlands market opportunity Strong economic Strong business Shortage of outlook and consumer STEM profiles confidence v Labour law creates Unemployment momentum for at a 10-year low Contract (4.3%) 91
Slide 92: Track record Netherlands
Track record Netherlands Period end Sales Headcount Total Gross Profit ICT 10% 14% 7% Banking & Finance Solid contract Compound Annual 7% Growth Rate from 2013 to 2017 2017 Energy 2017 PERMANENT • Period End Headcount up 21% 11% 59% Engineering CONTRACT 6% Life Sciences • Contract Gross profit up 18
Slide 93: Contract and Services
Contract and Services Multibrand Significant IT Additional competitive Contract flexible model opportunity services 93
Slide 94: Infrastructure for growth
Infrastructure for growth Groningen Multibrand competitive model Amsterdam Amsterdam hub Utrecht Rotterdam Regional teams to service key opportunities Eindhoven 94
Slide 95: Find, retain and develop great talent
Find, retain and develop great talent Strong Dutch High Employer leadership retention of choice 95
Slide 96: Develop and sustain strong customer relationships
Develop and sustain strong customer relationships Global companies with local decisions 96
Slide 97: Life Sciences
Life Sciences Tom Way, European Head of Life Sciences 97
Slide 98: Ambition in Life Sciences
Ambition in Life Sciences To be #1 in Life Sciences recruitment • Leadership through Purpose To double GP • Maximise global reach and delivery over 5 years Notes (1) Based on gross profit 98
Slide 99: Purpose drives strategy
Purpose drives strategy Getting closer to Adding Revenue the customers value generation is directly attributable #inspiredbyyou 99
Slide 100: Market opportunity
Market opportunity Global healthcare % of GDP spent Skill shortages spend expected to on healthcare reach $8.7 trn rising slightly globally by 2020 International clients Shift to digital 100
Slide 101: Life Sciences is a key sector
Life Sciences is a key sector Life Sciences our second largest sector after ICT, generates 21% of Group Gross Profit Present in all major regions 4% 11% UK&I 2017* Continental Europe 2017* 48% 37% Americas APAC & MENA Note 2017* is Q3 YTD Life Sciences % of Group Gross profit 101
Slide 102: Our global capabilities
Our global capabilities i USA Executive Search Medical Writing HEOR Pharmacovigilance Engineering Clinical Operations Quality Assurance Regulatory Affairs iT Biometrics. Clinical Development Medical Directors Regulatory Affairs HEOR Biometrics } UK & Ireland Executive Search Sales & Marketing/BD Bio
Slide 103: Regions, sectors and services
Regions, sectors and services Strategic shift Permanent in favour a valuable of Contract component Additional Expand spectrum geographic of roles opportunities in USA 103
Slide 104: Global client opportunities
Global client opportunities 104
Slide 105: Innovation
Innovation Gary Elden, CEO 105
Slide 106: Future proofing the business
Future proofing the business Innovative approach Minimise expense Who are the to meet our and risk through competition and customers evolving governance and what do they do demands support structures differently? v Future revenue How M&A can streams complement both the core and tech businesses 106
Slide 107: Innovating the Core
Innovating the Core Circa £15m over the last 3 years Focus on: • Leveraging benefit of single database • Improving consultant productivity and retention • Ongoing improvements to core offering • New revenue streams where suitable 107
Slide 108: Future proofing the business
Future proofing the business Innovative approach Minimise expense Who are the to meet our and risk through competition and customers evolving governance and what do they do demands support structures differently? v Future revenue How M&A can streams complement both the core and tech businesses 108
Slide 109: Innovation will support the business strategy
Innovation will support the business strategy Core / BAU innovation Evolving opportunities BAU Clear Consider business desired Buy, build Deliver and growth capabilities / strategy businesses or rent monetise Supporting innovation “Innovative across the business culture” 109
Slide 110: Disciplined governance
Disciplined governance SThree Board • Budget & strategic direction Innovation Investment Board • Portfolio oversight Innovation Project Boards • Operational oversight • Creative / shaping / pitching / challenging Innovation Team Meetings • Filtering and funnelling 110
Slide 111: Future proofing the business
Future proofing the business Innovative approach Minimise expense Who are the to meet our and risk through competition and customers evolving governance and what do they do demands support structures differently? v Future revenue How M&A can streams complement both the core and tech businesses 111
Slide 112: Competition
Competition HIRED GOOD&CO etoptal Uowork” vETTERY © The Dots Yunejune™ — Hpgyhat
Slide 113: New competitive landscape
New competitive landscape Talent Deck Hirestream Exec Search Job Board Contingency Direct match Hybrid & Consultancy Disruption (Google / Indeed) Disruption Hired / Upworks 113
Slide 114: Future proofing the business
Future proofing the business Innovative approach Minimise expense Who are the to meet our and risk through competition and customers evolving governance and what do they do demands support structures differently? v Future revenue How M&A can streams complement both the core and tech businesses 114
Slide 115: Future revenue streams - Buy
Future revenue streams - Buy A platform for professional shift-workers. Successful pilot. Currently being scaled up for UK roll-out. A messaging bot specifically designed for recruitment. Engage candidates without human intervention. Successful incubator. Started in MarTech, now building HRTech vert
Slide 116: Future revenue streams - Build
Future revenue streams - Build Talent Acquisition Platform focused on cultural fit and automated matching. Initial stages of growth. Has attracted blue-chip technology brands. Create and manage asynchronous video interviews. Being trialled internally with one of our core brands. Combines digital mar
Slide 117: Future proofing the business
Future proofing the business Innovative approach Minimise expense Who are the to meet our and risk through competition and customers evolving governance and what do they do demands support structures differently? v Future revenue How M&A can streams complement both the core and tech businesses 117
Slide 118: M&A
M&A Still adopting a cautious approach Access to new technologies and/or capabilities Accretive to financial plan 118
Slide 119: Our investment in Innovation
Our investment in Innovation Strong strategic Costs included Significant HRtec partners in the financial potential upside – assumptions not included in 5 year numbers v Utilise our global Monetise the over- External expertise infrastructure and commoditised STEM including two new database markets we
Slide 120: Talent Deck
Talent Deck 7 TALENTDECK
Slide 121: What is Talent Deck?
What is Talent Deck? Challenger to Servicing businesses Instantly matching traditional Job that do not use candidates and job Boards recruitment agencies opportunities v Algorithm matches Generate leads Test in UK then tech skills, desires through digital expand in 2018 and cultural marketing compat
Slide 122: Our mission
Our mission Zero time to find. 122
Slide 123: Why culture matters in Tech
Why culture matters in Tech 67% 53% of developers say that have left a job because culture is more the culture wasn’t right important today than five years ago 47% 42% decided against taking that left a job because a job because of the culture wasn’t right, company culture quit within a month 123
Slide 124: Our early adopters
Our early adopters <> TALENTDECK
Slide 125: Summary
Summary Gary Elden, CEO 125 s three
Slide 126: Recap of our goals for the day
Recap of our goals for the day 1. 2. 3. Spell out our Provide a Show progress strategy financial and potential in a outlook to 2022 few key regions 4. 5. 6. Deep dive on Update you on Introduce you to some one sector our Innovation of our leaders and opportunity and M&A activity next-generation tale
Slide 127: Reasons to believe in SThree
Reasons to believe in SThree Multi-brand STEM specialists Scalable within our current infrastructure Entrepreneurial and innovative Balanced portfolio Strong Contract position Well placed to meet changing customer needs 127
Slide 128: Q&A
Q&A 128 s three