Hays Plc · LSE:HAS
Hays — Investor Day (November 2017)
89 slides from Hays's investor day presentation, Nov 9, 2017
Slide 1: Hays Investor Day 2017
HAYS INVESTOR DAY 2017 THE ULTIMATE PEOPLE BUSINESS 9 November 2017
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This presentation contains certain statements that are neither reported financial results nor other historical information. The information contained in this presentation is not audited, is for personal use and informational purposes only and is not intended for distribution to,
Slide 3: Introduction & Objectives
INTRODUCTION & OBJECTIVES ALISTAIR COX CHIEF EXECUTIVE
Slide 4: Today's Agenda
TODAY’S AGENDA 1 PROGRESS TO DATE AND NEXT PHASE OF GROWTH 12:45 – 14:00 2 ENHANCING AND EVOLVING OUR GLOBAL BUSINESS 14:15 – 15:40 3 BREAKOUTS 16:00 – 17:30 4 WRAP UP & DRINKS RECEPTION 17:30 – 18:30 4
Slide 5: We Have a Clear and Compelling Investment Case
WE HAVE A CLEAR AND COMPELLING INVESTMENT CASE 1 2 3 4 THE BREADTH OF OUR BALANCED OUR ABILITY OUR POTENTIAL OUR BUSINESS EXPOSURE TO TO DELIVER TO GENERATE MODEL ACROSS BOTH MATURE & SUPERIOR SIGNIFICANT GEOGRAPHY, STRUCTURAL FINANCIAL CASHFLOW & SECTOR & GROWTH PERFORMANCE DIVIDENDS CONTRACT TYPE
Slide 6: We Want You to Leave Today With a Clear Understanding Of
WE WANT YOU TO LEAVE TODAY WITH A CLEAR UNDERSTANDING OF: 1 THE SIGNIFICANT OPERATIONAL & STRATEGIC PROGRESS WE HAVE MADE SINCE 2013 2 THE STRENGTH OF OUR MODEL AND ITS RELEVANCE IN AN EVOLVING MARKET 3 HOW WE BALANCE BUSINESS EFFECTIVENESS WITH INNOVATION AND EVOLUTION OUR SIGNIFICANT FUTURE GROWTH
Slide 7: Progress to Date and Next Phase of Growth
PROGRESS TO DATE AND NEXT PHASE OF GROWTH ALISTAIR COX CHIEF EXECUTIVE
Slide 8: Clear, Well-Established Strategic Priorities to Deliver Long-Term Aims
WE HAVE CLEAR, WELL-ESTABLISHED STRATEGIC PRIORITIES TO DELIVER OUR LONG-TERM AIMS MATERIALLY INCREASE & DIVERSIFY GROUP PROFITS GENERATE, BUILD CRITICAL REINVEST & MASS & DIVERSITY DISTRIBUTE ACROSS OUR MEANINGFUL CASH GLOBAL PLATFORM RETURNS INVEST IN PEOPLE, TECHNOLOGY, COLLABORATIONS & INNOVATIO
Slide 9: On Track With Original 5-Year Profit Aspirations
WE ARE ON TRACK WITH OUR ORIGINAL 5-YEAR PROFIT ASPIRATIONS Group Operating Profits (£) £300m £250m +£30m £211m £200m +£17m +£24m +£15m 2018 RANGE £125m OF EBIT ASPIRATIONS CAGR 14% FY13 FY14 FY15 FY16 FY17 FY17 ON TRACK AGAINST OUR GOALS 9
Slide 10: Rapidly Diversified Earnings Into International Markets
WE HAVE RAPIDLY DIVERSIFIED OUR EARNINGS INTO INTERNATIONAL MARKETS Group Operating Profits by geography 100% 100% 46% INT’L 54% UK 80% INT’L 20% UK 0% 0% FY08 FY17 10
Slide 11: Increased Resilience to Market Shocks
THIS HAS INCREASED OUR RESILIENCE TO MARKET SHOCKS 2014: POST-GERMAN JUNE 2017: ELECTION, REGULATORY SNAP UK GENERAL UNCERTAINTY ELECTION JUNE 2016: OPERATING PROFIT (£) 2013/14: UK VOTE TO LEAVE CONVERSION RATE AUSTRALIA MINING THE EU SLOWDOWN 211m 181m 164m 140m 22.3% 22.2% 125m 21.5% 19.4% 17.5%
Slide 12: Delivered via Targeted Investment Into Key Priorities
WE HAVE DELIVERED THIS VIA TARGETED INVESTMENT INTO KEY PRIORITIES 1 ORGANICALLY International headcount up 56% over 5 years BUILD GLOBAL Major expansion into Germany, now the largest business in the Group SCALE Significant organic investment into key European and Asian markets 2 SCALING Rap
Slide 13: The Shape of Our Business and Earnings Is Transformed
AS A RESULT, THE SHAPE OF OUR BUSINESS AND EARNINGS IS TRANSFORMED 2008 2013 2017 TOTAL CONSULTANT HEADCOUNT 6,038 5,173 6,884 NON-UK CONSULTANT HEADCOUNT 2,910 3,244 4,936 % OF GROUP IN STRUCTURAL GROWTH MARKETS 22% 44% 51% NET (DEBT) / CASH £(81)m £(105)m £112m
Slide 14: International Platform Larger and More Resilient
OUR INTERNATIONAL PLATFORM IS LARGER AND MORE RESILIENT THAN EVER BEFORE INT’L NET FEES £712m PERM INT’L NET FEES £497m CAGR £288m PERM 8% £210m TEMP & TEMP & CAGR CONTRACTING CONTRACTING 10% £424m £287m 2013 2017 UNDERPINNED BY GROWTH IN HIGH-QUALITY NON-PERM REVENUES 14
Slide 15: Over Half of Business in Structural Growth Markets
OVER HALF OF OUR BUSINESS TODAY IS IN THE WORLD’S BEST STRUCTURAL GROWTH MARKETS £955m NET FEES 2017 MATURE MARKETS £787m NET FEES MATURE MARKETS 49% OF GROUP 78% STRUCTURAL GROWTH OF GROUP MARKETS CAGR 51% STRUCTURAL GROWTH 12% OF GROUP MARKETS 22% OF GROUP 2008 2017 15
Slide 16: Future Profit Potential Driven by Structural Growth
FUTURE PROFIT POTENTIAL REMAINS SIGNIFICANT, DRIVEN BY STRUCTURAL GROWTH IN OUR EXISTING BUSINESSES £450m GERMANY £80m £375m OTHER AUS £38m £300m UK&I £27m £19m £211m MATURE, STRUCTURAL CYCLICAL GROWTH GROWTH MARKETS MARKETS MARKETS 52% OF GROUP 28% 72% of growth of growth 2017 EBIT 2022 EBIT
Slide 17: Focus for the Next Phase of Growth
TO DELIVER THIS NEXT PHASE OF GROWTH WE WILL BE FOCUSED ON: CONTINUED INVESTMENT TO DRIVE GROWTH & SCALE ACROSS OUR PLATFORM BUILDING EVEN GREATER DIVERSIFICATION & RESILIENCE INTO OUR EARNINGS INVESTING TO IMPROVE PRODUCTIVITY AND BUSINESS EFFICIENCY INNOVATING OUR MODEL TO BEST MEET EVOLVING CLIEN
Slide 18: Hays Track Record of Strong Performance
HAYS TRACK RECORD OF STRONG PERFORMANCE 2013-2017 PAUL VENABLES GROUP FINANCE DIRECTOR
Slide 19: Consistently Strong Profit Performance Despite Mixed Market
SINCE 2013 WE HAVE DELIVERED A CONSISTENTLY STRONG PROFIT PERFORMANCE DESPITE A MIXED MARKET BACKDROP Group Operating Profit (£m) DRIVEN BY THE STRENGTH AND BALANCE OF OUR BUSINESS MODEL… 211.5 Industry-leading levels of profitability Scale, balance and diversity across both 181.0 Contracting/Te
Slide 20: More Profit Than Major UK Listed Peers Combined
WE GENERATE MORE PROFIT THAN OUR …AND ARE THE MOST EFFICIENT MAJOR UK LISTED PEERS COMBINED… SPECIALIST RECRUITER Group Operating Profits (£m) Conversion rate % 25% 22.2% 20% 91 17.5% 16.6% 15% 16.4% 146 11.9% 697 10% 11.4% 10.3% 363 5% 4.6% 0% FY14 – FY17 FY14 – FY17 FY13 FY14 FY15 FY16 FY17 HAYS E
Slide 21: Five Pillars Underpinning Our Business Model
THERE ARE 5 PILLARS WHICH UNDERPIN THE STRENGTH OF A KEY OUR DRIVER OF BUSINESS PERFORMANCE BETWEEN 2013 – 2017 HAS MODEL BEEN OUR MULTI-FACETED MANAGEMENT OF THE BUSINESS AGGRESSIVE INVESTMENT IN STRUCTURAL Increased consultant headcount in Germany by GROWTH MARKETS c.560 people, or 60%, to over 1,
Slide 22: 2018 Aspirations: On Track After Years of Shocks
2018 ASPIRATIONS: ON TRACK AFTER 4 YEARS UK & Ireland (£m) Operating Profit* Australia & NZ (£m) Operating Profit* UK&I Vote to leave the EU FY 2013 6 FY 2013 64 Two general elections FY 2017 63 Hung parliament/political instability FY 2017 42 FY18 OBJECTIVE 45 60 75 FY18 ORIGINAL FX 60 70 80
Slide 23: A Track Record of Material Cash Generation
A TRACK RECORD OF MATERIAL CASH GENERATION FY14 - FY17 Operating Profit to free cash flow conversion Uses of cash flow OPERATING CASH FLOW £742m Capex £60m Veredus £36m £129m Acq. Pensions £57m £697m £(84)m Dividend £156m £510m £(213)m £(19)m Eliminated net debt/built net cash £217m Other £(16)m OPE
Slide 24: The Next Phase of Hays Performance
THE NEXT PHASE OF HAYS PERFORMANCE 2018-2022 PAUL VENABLES GROUP FINANCE DIRECTOR
Slide 25: Well Positioned to Deliver Further Material Profit Growth
WELL POSITIONED TO DELIVER FURTHER MATERIAL PROFIT GROWTH Industry-leading Temp/Contracting business alongside a c.£400m net fee BALANCED CONTRACT TYPE Perm business EXPOSURE Perfectly positioned for current economic conditions EXPOSURE TO BOTH MATURE c.£500m of our FY17 net fees generated in
Slide 26: A Prioritised Pipeline of Opportunities to Build Scale
A PRIORITISED PIPELINE OF OPPORTUNITIES TO BUILD SCALE MEANINGFUL FUTURE MATERIAL PROFIT DRIVERS CORE PROFIT CONTRIBUTORS NETWORK DRIVERS CRITICAL £20m+ £10m+ £5m+ TARGET TARGET TARGET SWITZERLAND NEW ZEALAND BELGIUM POLAND 17 GERMANY JAPAN NETHERLANDS OTHER HAYS AUSTRALIA FRANCE COUNTRIES SPAIN CHI
Slide 27: Plan Assumes Continuation of Current Global Economic Backdrop
OUR PLAN ASSUMES THE CONTINUATION OF THE CURRENT GLOBAL ECONOMIC BACKDROP WE EXPECT TO BE OPERATING IN A WORLD WHERE GDP GROWTH REMAINS SUPPORTIVE, WITH DIFFERENCES BETWEEN REGIONAL GROWTH RATES WE ANTICIPATE REGULAR MINOR BUT MANAGEABLE ECONOMIC AND POLITICAL SHOCKS AND ASSUME NO SIGNIFICANT DOWNTU
Slide 28: External Forecasts Support Assumption of Modest Growth
EXTERNAL FORECASTS SUPPORT OUR ASSUMPTION OF MODEST OVERALL GROWTH ACROSS ADVANCED ECONOMIES GDP growth forecasts (% per annum) Key observations 2016A 2017F 2022F OVERALL GLOBAL GROWTH IS CHINA 6.7 6.8 5.8 FORECAST TO BROADLY FRANCE 1.2 1.6 1.8 REMAIN AT CURRENT LEVELS RUSSIA -0.2 1.8 1.5 AUSTRALIA
Slide 29: 2022 Aspirations Range From £300m to £450m
OUR 2022 ASPIRATIONS RANGE FROM £300M TO £450M WITH A MID-POINT CASE OF £375M Germany (£m) Operating Profit* Australia & NZ (£m) Operating Profit* FY 2017 81 FY 2017 63 FY22 OBJECTIVE 135 160 185 FY22 OBJECTIVE 75 90 105 LOWER MID UPPER ASSUMED 5YR NET FEE CAGR: +10% to +16% ASSUMED 5YR NET FEE CAGR
Slide 30: Disciplined Approach to Cash Generation and Uses of Free Cash Flow
WE MAINTAIN A DISCIPLINED APPROACH TO CASH GENERATION WITH CLEAR PRIORITIES FOR THE USES OF FREE CASH FLOW Our priorities for uses of free cash flow Our specific objectives Invest in headcount, training, systems and brand to support FUND GROUP INVESTMENT organic growth AND DEVELOPMENT Assess pot
Slide 31: Potential for Material Returns to Shareholders
POTENTIAL FOR MATERIAL RETURNS TO SHAREHOLDERS BASED ON ACHIEVING OUR 5 YEAR ASPIRATIONS £’m KEY ASSUMPTIONS: OPERATING PROFIT 300 375 450 1. Average working capital outflow of FREE CASH FLOW 861 944 1042 £50m per annum in mid-point case USES OF FREE CASH FLOW 2. No M&A spend built into the profit o
Slide 32: Strong Performance 2014–2017, Potential for 2018–2022
STRONG PERFORMANCE IN 2014 – 2017, WITH SIGNIFICANT POTENTIAL FOR FURTHER STRONG PERFORMANCE IN 2018-2022 STRONG BUSINESS MODEL AND OPERATIONAL MANAGEMENT GLOBALLY DELIVERED A CONSISTENTLY STRONG PROFIT PERFORMANCE IN FY14 - FY17 PERFECTLY POSITIONED TO DELIVER FURTHER MATERIAL PROFIT GROWTH SET OUT
Slide 33: Delivering the Next Phase of Growth Panel Discussion
DELIVERING THE NEXT PHASE OF GROWTH PANEL DISCUSSION KLAUS BREITSCHOPF CEO DACH, NORDICS & RUSSIA JOHN FARAGUNA PRESIDENT HAYS AMERICAS NIGEL HEAP MD UKI & EMEA (EX-GERMANY) NICK DELIGIANNIS MD AUSTRALIA & NEW ZEALAND
Slide 34: Questions & Answers
QUESTIONS & et a ANSWERS \h
Slide 35: Future Shape and Direction of the World of Work
FUTURE SHAPE AND DIRECTION OF THE WORLD OF WORK ALISTAIR COX CHIEF EXECUTIVE
Slide 36: Four Mega Trends in Our Industry
WE IDENTIFY FOUR MEGA TRENDS IN OUR INDUSTRY 1 2 3 4 MORE AND SKILLS STRUCTURAL THE EMERGENCE VARIED WAYS OF SHORTAGES & MARKET OF NEW AND BUILDING A BUSINESS’ GROWTH & EVOLVING CAREER DEMAND FOR EVOLVING CLIENT TECHNOLOGIES FLEXIBILITY DEMANDS
Slide 37: Managing & Evolving Our Core Business
MANAGING & EVOLVING OUR CORE BUSINESS NIGEL HEAP MD, UK&I AND EMEA (EX-GERMANY)
Slide 38: Scope and Scale of Our Business Has Never Been Greater
THE SCOPE AND SCALE OF OUR BUSINESS HAS NEVER BEEN GREATER FY17 STATISTICS 70,000 PERM PLACEMENTS 250 GLOBAL OFFICES 240,000 TEMP ASSIGNMENTS 6,884 CONSULTANTS 10 million CVs RECEIVED >550,000 CANDIDATE INTERVIEWS 17 million CANDIDATE PROFILES 33 COUNTRY BUSINESSES WORLDWIDE WE FILL OVER 1,000 JOBS
Slide 39: Complexity Has Increased Dramatically Over Time
AND THE COMPLEXITY HAS INCREASED DRAMATICALLY OVER TIME INFORMATION AND DATA OVERLOAD INCREASED, MORE COMPLEX COMPLIANCE AND REGULATION FUNDAMENTAL CHANGES IN THE NATURE OF CLIENT INTERACTION CANDIDATES DEMAND FOR MOBILE ACCESS TO JOBS MARKET MARGIN PRESSURES IN MORE MATURE MARKETS MANAGING RAPID EX
Slide 40: KPIs Focused on Maximising Productivity
KPIs FOCUSED ON MAXIMISING THE PRODUCTIVITY OF OUR BUSINESS PERM TEMP NET FEES PER 4-WEEK PERIOD CONVERSION RATE PERM JOBS REGISTERED TEMP ROLES REGISTERED INTERVIEW NUMBERS TEMPS PAID / WEEK NUMBER OF PERMS PLACED TEMPS PAID / CONSULTANT AVERAGE PERM FEE UNDERLYING TEMP MARGIN
Slide 41: Improving Productivity Delivers Significant Financial Upside
IMPROVING PRODUCTIVITY DELIVERS SIGNIFICANT FINANCIAL UPSIDE AVERAGE GROUP NET FEES PER CONSULTANT IMPACT OF A FURTHER 5% IMPROVEMENT FEES CONSULTANT HEADCOUNT FY17 6,627 £955m £144k +5% c.85% FY13* 5,196 £713m* £137k* +£7k +£48m +£41m CHANGE +28% +34% +5% FEES/ TOTAL NET DROP OPERATING CONSULTANT F
Slide 42: Panel Discussion - Key Operators
PANEL DISCUSSION - KEY OPERATORS CHRIS DOTTIE TINA LING PAM LINDSAY-DUNN Managing Director, Spain Managing Director, France Regional MD, North UK Joined Hays: 1996 Joined Hays: 1988 Joined Hays: 1995
Slide 43: A Proactive and Open-Minded Approach to Innovation and Technology
A PROACTIVE AND OPEN-MINDED APPROACH TO INNOVATION AND TECHNOLOGY STEVE WESTON GROUP CHIEF INFORMATION OFFICER
Slide 44: Approachability, Connectivity, Efficiency
APPROACHABILITY CONNECTIVITY EFFICIENCY
Slide 45: We Are a Data-Driven Business
WE ARE A DATA-DRIVEN BUSINESS 222 million HITS ON HAYS WEBSITES 10 million CVs RECEIVED PER YEAR 800,000 LIVE CANDIDATES PER QUARTER 33 million USER SESSIONS 2 million LINKEDIN FOLLOWERS >11 million JOB APPLICATIONS 17 million CANDIDATE PROFILES THIS VOLUME OF DATA DEMANDS SOPHISTICATED TOOLS & SYST
Slide 46: Approach Driven by Focus on Core Value Proposition
OUR APPROACH IS DRIVEN BY A FOCUS ON OUR CORE VALUE PROPOSITION APPROACHABILITY CONNECTIVITY EFFICIENCY 1 2 3 MAXIMISE OPERATIONAL DELIVER THE BEST DIGITALLY-ENABLED EFFECTIVENESS CUSTOMER SERVICE CONSULTANTS THE BEST CANDIDATES TO CLIENTS, FASTER THAN ANYONE ELSE
Slide 47: TALENT VIEWER SOCIAL
TALENT SOCIAL VIEWER POST CONNECTIVITY MACHINE LEARNING REF DATA EXCHANGE SCIENCE AI WiP SYSTEM ALGORITHMS SALES PLANNER
Slide 48: Ability to Be Nimble and Respond Quickly
OUR ABILITY TO BE NIMBLE AND RESPOND QUICKLY IS KEY TO OUR APPROACH 1 WEEK DIGITAL CUSTOMER ENGAGEMENT 2 WEEKS MACHINE LEARNING AND AI FEATURES 4 WEEKS DIGITAL COMPLIANCE PRODUCTS 6 WEEKS OPERATIONAL SYSTEMS
Slide 49: Our Future Approach Will Remain Focused on Human Touch
OUR FUTURE APPROACH WILL REMAIN FOCUSED HIGH FOCUSED ON ART + SCIENCE ENHANCING OUR CORE OFFERING IN THE HIGHLY Higher skill / SKILLED/HIGHER higher margin MARGIN SEGMENT OF VALUE OF THE MARKET HUMAN TOUCH PROCESS, VOLUME & SPEED Skills are in short supply Client demand is high Lower skill / low
Slide 50: Marketing a New Recruitment Model
MARKETING A NEW RECRUITMENT MODEL SHOLTO DOUGLAS-HOME CHIEF MARKETING OFFICER
Slide 51: Key Milestones in Traditional Advertise & Apply Recruitment
HAYS seiner" KEY MILESTONES IN THE TRADITIONAL ‘ADVERTISE & APPLY’ WORLD OF RECRUITMENT PRE-INTERNET @>y¢@ WAVE1: JOB BOARDS 19™ CENTURY ~ 1990s 1990s Job advertising for professional positions Job advertising and the initial application process is primarily promoted via print media. moves online, b
Slide 52: Advertise & Apply Versus Find & Engage
HAY: SPECIALIST UNSKILLED Recruiting experts worldwide ADVERTISE & APPLY JOB IS FOUND: Candidates search for opportunities and apply to job ads, indicating their interest and approachability. Recruiters rely on the quantity and quality of applications, with in-house candidate databases (e.g. Hays’ O
Slide 53: Career Advice, Industry Commentary, Thought Leadership
CAREER INDUSTRY THOUGHT ADVICE COMMENTARY LEADERSHIP
Slide 54: The Power of Hays Content
THE POWER OF HAYS CONTENT 2 MILLION LINKEDIN FOLLOWERS 2 TIMES MORE LIKELY TO APPLY FOR A HAYS JOB THAN NON-HAYS FOLLOWERS 700 VIEWPOINT BLOGS & 2 MILLION PAGE VIEWS
Slide 55: Global Brand Exposure
GLOBAL BRAND EXPOSURE OFFICIAL STRATEGIC PARTNER – CONTINUOUS RECRUITMENT CONFEDERATION OF INVESTMENT IN PARTNER – BRITISH INDUSTRY BUILDING GLOBAL MANCHESTER CITY BRAND AWARENESS
Slide 56: Data Science Models Predict Candidate Interest
HAYS weiner" SIGNALS OF ACTIVITY & INTERESTS ENHANCED CANDIDATE PROFILES PERSONAL RELATIONSHIPS LIKELIHOOD TO MOVE FIT TO CAREER AMBITIONS TRUSTED ADVISOR DATA SCIENCE MODELS COMBINE A RANGE OF SIGNALS & INPUTS INTO A SINGLE SCORE TO PREDICT A CANDIDATE’S LIKELY INTEREST IN A ROLE
Slide 57: Scale of Marketing Engagement
THE SCALE OF MARKETING ENGAGEMENT 13 MILLION INTERACTIONS EVERY MONTH 290,000 NEW CLIENT CONTACTS 820,000 NEW CANDIDATE CONTACTS
Slide 58: Contracting as a Future Key Driver for Growth
CONTRACTING AS A FUTURE KEY DRIVER FOR GROWTH CHRISTOPH NIEWERTH HAYS GERMANY CHIEF OPERATING OFFICER
Slide 59: Contracting Is a Highly Attractive Market for Hays
CONTRACTING IS A HIGHLY ATTRACTIVE MARKET FOR HAYS 1 4 CLEAR STRUCTURAL GREATER EARNINGS GROWTH RESILIENCE EXISTING HAYS SIGNIFICANT EXPERTISE BARRIERS TO ENTRY 2 3
Slide 60: Clear Structural Growth Driven by Clients & Candidates
CLEAR STRUCTURAL GROWTH: DRIVEN BY CLIENTS & CANDIDATES CORPORATE DRIVERS CANDIDATE DRIVERS INCLUDE… INCLUDE… Drive to embed more flexibility into their Cultural changes in perceptions of skilled employee cost base flexible work Legislative changes Contracting becoming the “new perm” in many
Slide 61: Built Scale and Expertise in This Market Over Many Years
WE HAVE BUILT SCALE AND EXPERTISE IN THIS MARKET OVER MANY YEARS German Temp & Contracting Temp/Contractor business as % of net fees CANADA 87% OF GERMAN 32% NETHERLANDS NET FEES 68% SWITZERLAND BEST-PRACTICE 80% 12,000 TEMPS & CONTRACTORS FRANCE BELGIUM 66 % EXPERTISE 32% 55% JAPAN 22% 11% NET FEE
Slide 62: A Market With Significant Barriers to Entry
A MARKET WITH SIGNIFICANT BARRIERS TO ENTRY EFFICIENT, SCALABLE BACK OFFICE SYSTEMS (PAYROLLING ETC.) COMPLIANCE AS A BACKGROUND CHECKING DIFFERENTIATOR PROCESSES ABILITY TO DELIVER DEEP SECTOR / LOCAL AT SPEED & SCALE MARKET EXPERTISE LOCAL CANDIDATE ATTRACTION NETWORKS / DATABASES
Slide 63: A High Value, More Resilient Source of Earnings
A HIGH VALUE, MORE RESILIENT SOURCE OF EARNINGS LONG-TERM NATURE OF TYPICAL DURATION OF 6-9 MONTHS ASSIGNMENTS HIGH RELATIVE PAY OF ROLES AVERAGE ANNUAL SALARY OF £100K + DEMAND FOR FLEXIBLE SKILLS SUPPORTS HIGH RELATIVE AVERAGE MARGIN IN TECHNICAL SPECIALISMS MORE DEFENSIBLE, HARDER TO REPLICATE, M
Slide 64: Positioning Hays as the Ultimate People Business
POSITIONING HAYS AS THE ULTIMATE PEOPLE BUSINESS SANDRA HENKE GROUP HEAD OF PEOPLE & CULTURE
Slide 65: Ability to Hire, Develop and Engage the Best People Is Key
OUR ABILITY TO HIRE, DEVELOP AND ENGAGE THE BEST PEOPLE IN OUR INDUSTRY IS KEY TO OUR SUCCESS MATERIALLY INCREASE & DIVERSIFY GROUP PROFITS GENERATE, BUILD CRITICAL REINVEST & MASS & DIVERSITY DISTRIBUTE ACROSS OUR MEANINGFUL CASH GLOBAL PLATFORM RETURNS INVEST IN PEOPLE, TECHNOLOGY, COLLABORATIONS
Slide 66: We Are the Ultimate People Business
WE ARE THE ULTIMATE PEOPLE BUSINESS UNIQUE PARTNERSHIPS SECTOR-LEADING A WORLD CLASS TECHNOLOGY BRAND TOOLS THE BEST PEOPLE UNRIVALLED GLOBALLY SCALE, BALANCE INTEGRATED & DIVERSITY DATABASE SURGICAL, TARGETED INVESTMENT
Slide 67: Recognised as Employer of Choice for Best Talent
INCREASINGLY BEING RECOGNISED AS THE EMPLOYER OF CHOICE FOR THE BEST TALENT AROUND THE WORLD
Slide 68: Focus on Diversity & Inclusion
A FOCUS ON DIVERSITY & INCLUSION IS INCREASINGLY IMPORTANT TO OUR OWN EMPLOYEES, OUR CLIENTS AND CANDIDATES THOUGHT LEADERSHIP PARTNERSHIPS & HAYS LEADING WOMEN NETWORKS
Slide 69: Smarter and More Sophisticated in How We Hire
WE HAVE BECOME SMARTER AND MORE SOPHISTICATED IN HOW WE HIRE TO SOURCE THE BEST TALENT BEST-IN-CLASS TARGETED SOCIAL ONLINE CANDIDATE AND DIGITAL MEDIA ATTRACTION TOOLS CAMPAIGNS >150K APPLICATIONS WORLDWIDE/YEAR THOROUGH ASSESSMENT AND SELECTION MODEL INTERNAL RECRUITING SUPPORTED BY ‘HAYS TEAMS IN
Slide 70: Training & Development at All Levels Is Vital
TRAINING & DEVELOPMENT AT ALL LEVELS IS VITAL AND EMBEDDED INTO OUR BUSINESS AS A KEY ENABLER FOR GROWTH SUPPORTED TECHNOLOGY/SYSTEMS SALES (NON-PERISHABLE) AND ENABLED BY (EVOLVING) MANAGEMENT TRAINING FAST TRACK PROGRAMMES LEADERSHIP TRAINING SUCCESSION PLANNING SECURING THE FUTURE
Slide 71: Questions & Answers
QUESTIONS & ANSWERS
Slide 72: Breakout Sessions
BREAKOUT SESSIONS 1 2 3 LEVERAGING OUR PLANS TO BUILDING CRITICAL INNOVATION AND DOUBLE OUR MASS IN NON-PERM COLLABORATIONS GERMAN BUSINESS RECRUITMENT TO DRIVE FURTHER MARKETS GROWTH BREAKOUT AREA 1 BREAKOUT AREA 2 BREAKOUT AREA 3 (DOWNSTAIRS) (UPSTAIRS) (UPSTAIRS)
Slide 73: Wrap Up & Key Takeaways
WRAP UP & KEY TAKEAWAYS ALISTAIR COX CHIEF EXECUTIVE
Slide 74: We Have a Clear and Compelling Investment Case
WE HAVE A CLEAR AND COMPELLING INVESTMENT CASE THE BREADTH OF OUR OUR BALANCED OUR ABILITY TO OUR POTENTIAL TO BUSINESS MODEL EXPOSURE TO BOTH DELIVER SUPERIOR GENERATE ACROSS GEOGRAPHY, MATURE & FINANCIAL SIGNIFICANT SECTOR & CONTRACT STRUCTURAL GROWTH PERFORMANCE CASHFLOW & TYPE MARKETS THROUGH TH
Slide 75: Breakout 1: Leveraging Innovation and Collaborations
BREAKOUT 1 LEVERAGING INNOVATION AND COLLABORATIONS TO DRIVE FURTHER GROWTH
Slide 76: HAYS nc million
HAYS nc 222 million hits on Hays websites 33 million 11+ million user sessions job applications per year lin =) 800k 10 million aa x aa live candidates per quarter CVs received per year ar 2) <\ SALES a 17 million 2 million a candidate profiles LinkedIn followers te [ere |G | ORACLE THIS VOLUME OF D
Slide 77: Breakout 2: Our Plans to Double Our German Business
BREAKOUT 2 OUR PLANS TO DOUBLE OUR GERMAN BUSINESS
Slide 78: Hays Germany: Our Journey So Far
HAY: GERMANY worldwide OUR JOURNEY SO FAR Recruiting experts NAYS GERMANY NET FEES BY SPECIALISM B20 a 98% pa 500 " eee SW ee 2 Egirsering 30% ) siemens 16,200 300,000 2003 Hays pic buys Ascena AG €22m Net Fees €5m Operating Profit 1995 Founding of Forts (later renamed Ascena AG) GED Yuen. dpae+> in
Slide 79: Hays Germany: The Next Phase of Growth
Recruiting experts worldwide HAY: GERMANY THE NEXT PHASE OF GROWTH Our ultimate ambition is to be the undisputed market leader in the German specialist recruitment market. To get there, we have identified six key strategic priorities: NEXT PHASE OF GROWTH STRONG MARKET POSITION + Widest portfolio of
Slide 80: Breakout 3: Building Critical Mass in Non-Perm Recruitment Markets
BREAKOUT 3 BUILDING CRITICAL MASS IN NON-PERM RECRUITMENT MARKETS
Slide 81: Building Critical Mass in Non-Perm Recruitment Markets
HAYS trie NON-PERM BUSINESS OUR GLOBAL BUSINESS BUILDING CRITICAL MASS IN NON-PERM RECRUITMENT MARKETS GROUP NET FEES FY17 NON-PERM IS THE LARGEST OPPORTUNITY WE SEE TO DRIVE GROWTHIN OUR BUSINESS GROUP NON-PERM NET FEES FY17 m Germany OTHER MARKETS 36% © Australia UK 25% Other January 204 > merck *
Slide 82: Non-Perm Business: Canada
HAYS nc" NON-PERM BUSINESS CANADA ESTABLISHED TEMP/CONTRACTOR MARKET WITH SIGNIFICANT PENETRATION C$6 BILLION Sen Canada specialist Non-Perm flares cz revenue) in 2017 60,000 Temps/eantractors a PIN pU FP ECIAUS ff CANADA | __ HAYS CANADA MARKET TEMP/CONTRACTIN TEMP/CONTRACTING re MARKET \ BY INDUST
Slide 83: Hays Talent Solutions: Managed Service Programme
HAYS trie HAYS TALENT SOLUTIONS MANAGED SERVICE PROGRAMME (MSP) The management of the sourcing, engagement and administration of ‘non permanent’ resources. 1 CORPORATE AS AN ESTABLISHED AND COMPLEMENTARY BUSINESS 47% mEngineoring® Design 9% 14% mFinanceé Accounting 7% 9% mClinical a HAYS TALENT HAYS
Slide 84: Profile of Hays Australia & New Zealand
PROFILE OF HAYS AUSTRALIA & NEW ZEALAND Year ended 30 June 2017 19% GROUP NET FEES TEMP 66% PERM 34% 911 CONSULTANTS £181m £63m 35% NET FEES EBIT CONV. RATE 38 OFFICES Net fees by specialism Net fees by region Q’land Banking Construction Acc. & Office Mining* Res & IT Other NSW Victoria ACT WA Other
Slide 85: Historic Profile of Hays Australia & New Zealand
HISTORIC PROFILE OF HAYS AUSTRALIA & NEW ZEALAND Historic headline net fees (£M) Historic headline operating profit (£M) 210 182 179 181 81 87 163 72 135 129 138 139 134 60 64 63 49 45 44 44 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY consul
Slide 86: Profile of Hays Germany
PROFILE OF HAYS GERMANY Year ended 30 June 2017 24% GROUP NET FEES TEMP 87% PERM 13% 1,503 CONSULTANTS £230m £81m 35% NET FEES EBIT CONV. RATE 19 OFFICES Net fees by specialism Net fees by contract type Acc. & IT Engineering Finance Other Contracting Temp Perm 42% 30% 11% 17% 62% 25% 13% Note: All d
Slide 87: Historic Profile of Hays Germany
HISTORIC PROFILE OF HAYS GERMANY Historic headline net fees (£M) Historic headline operating profit (£M) 230 81 164 175 62 60 63 150 158 58 136 52 106 36 38 88 80 26 63 24 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY consultant headcount Hist
Slide 88: Historic Profile of Hays UK & Ireland
HISTORIC PROFILE OF HAYS UK & IRELAND £ Historic headline net fees (£M) £ Historic headline operating profit (£M) 453 137 331 244 242 225 246 272 272 253 222 64 46 52 42 26 11 4 (7) 6 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY consultant he
Slide 89: Local Currency - Hays Net Fees and Operating Profit
LOCAL CURRENCY – HAYS NET FEES AND OPERATING PROFIT Australia & New Zealand Australia & New Zealand Historic net fees (AUDm) Historic operating profit (AUDm) 365 182 323 305 293 293 274 245 263 273 134 232 130 116 98 90 106 88 80 83 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY08 FY09 FY10 FY