Robert Half Inc. · NYSE:RHI
Robert Half — Investor Presentation (May 2022)
39 slides from Robert Half's investor presentation, May 20, 2022
Slide 1: Investor Presentation
Investor Presentation May 20, 2022
Slide 2: Disclaimer
Disclaimer Certain information contained in this presentation may be deemed forward-looking statements regarding events and financial trends that may affect the company’s future operating results or financial positions. Forward-looking statements are subject to risks and uncertainties that could cau
Slide 3: Company Snapshot Q1 2022
Company Snapshot Q1 2022 Service Revenues: $1.8 Billion Net Income: $168 Million NYSE symbol: Headquarters: Full-time RHI Menlo Park, internal staff*: Return on Calif. 14,600 Invested Capital: 47.5% * As of Dec. 31, 2021. Includes approximately 5,700 employees engaged directly in Protiviti operation
Slide 4: Local Capabilities, Global Reach
Local Capabilities, Global Reach North America Asia-Pacific South America Middle East Europe 4 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 5: The Most Respected Name in Talent Solutions and Consulting
The Most Respected Name in Talent Solutions and Consulting All referenced trademarks are the property of their respective owners. Barron’s and Forbes award logos are reprinted with permission of Barron’s and Forbes. From FORTUNE, ©2022 FORTUNE Media IP Limited. All rights reserved. Used under licens
Slide 6: 74 Years of Changing Lives and Helping Companies Succeed
74 Years of Changing Lives and Helping Companies Succeed 1948 1986 1987-2001 2002 Today Originated as Acquired Expanded Launched Offer full spectrum Robert Half business from globally; Protiviti of talent solutions Personnel Bob Half introduced and consulting Agency specialized solutions brands 6 ©
Slide 7: U.S. Accounts for More Than Three-Quarters of Talent Solutions Revenues
U.S. Accounts for More Than Three-Quarters of Talent Solutions Revenues Talent Solutions Revenue Mix — Global 22% 78% International United States Q1 2022 Talent Solutions Revenues 7 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 8: Majority of International Talent Solutions Revenues from Continental Europe
Majority of International Talent Solutions Revenues from Continental Europe Talent Solutions Revenue Mix — International Other 1% United Kingdom 2% Asia-Pacific 4% Continental Europe 10% 22% 78% International United States Canada 5% Q1 2022 Talent Solutions Revenues 8 © 2022 Robert Half Internationa
Slide 9: Germany and Belgium Largest European Markets
Germany and Belgium Largest European Markets Talent Solutions Revenue Mix — Continental Europe Germany 4% Belgium 4% 10% Continental France 1% Other 1% Europe Q1 2022 Talent Solutions Revenues 9 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 10: Revenue Mix by Reportable Segment
Revenue Mix by Reportable Segment Q1 2022 Global Revenues 64% 26% Contract Talent Protiviti Solutions 10% Permanent Placement 10 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 11: Revenue Mix by Functional Specialization
Revenue Mix by Functional Specialization Q1 2022 Global Revenues 18% Technology 25% Administrative and Customer Support Contract Talent Solutions* 69% Finance and Accounting Q1 2022 Contract Talent Solutions Mix * Service revenues for contract talent solutions add to more than 100% because they incl
Slide 12: Return on Invested Capital
Return on Invested Capital Q1 2022 Versus 20-Year Average 50.0% 47.5% Superior ROIC is rooted in 40.0% our ability to generate industry-leading profitability 30.0% on a judiciously employed 24.0% capital base, including 20.0% growth achieved primarily by organic means. 10.0% 0.0% 20-Year Average* Q1
Slide 13: Business Strategy
Business Strategy • Value proposition: Only full-time jobs require full-time staff. • Clients value specialization in professional segments. • Middle-market talent solutions accounts are smaller, less price-sensitive; clients are demanding; quality is key. • Protiviti provides consulting, project ma
Slide 14: Market Opportunity — Talent Solutions Services
Market Opportunity — Talent Solutions Services Customers experience excellence, whether online, through our traditional services, or a blend of the two. 2020 global staffing industry revenues: $483B USD* Blended talent solutions and consulting solutions with Protiviti make us unique in SMBs (majorit
Slide 15: Expansion of Service Offerings Driving Protiviti Growth
Expansion of Service Offerings Driving Protiviti Growth Growing suite of consulting solutions Internal Audit Business and Technology Risk and Performance Financial Consulting Compliance Improvement Advisory Protiviti/talent solutions blended solutions 15 © 2022 Robert Half International Inc. An Equa
Slide 16: Full Spectrum of Talent Solutions and Consulting Solutions
Full Spectrum of Talent Solutions and Consulting Solutions Management Protiviti Marketing & Resources Finance & Creative Accounting – Technology Contract Talent Legal Administrative & Finance & Customer Support Accounting – Permanent Placement Specialized Project Project Management Talent Solutions
Slide 17: Full Complement of Talent Solutions and Consulting Solutions
Full Complement of Talent Solutions and Consulting Solutions We offer a uniquely flexible talent pool and deep consulting capability through our talent solutions and Protiviti brands. Talent Solutions Blended Consulting We provide world-class Global and regional Talent solutions consulting and consu
Slide 18: Marketing Approach
Marketing Approach Positioned as Traditional media for Digital media for specific quality leader broad brand awareness target audiences through advertising • Radio • Search — paid and organic and PR activities • Locally directed advertising • Digital advertising and retargeting and programs • Email/
Slide 19: Robert Half Digital Strategy
Robert Half Digital Strategy Winning the Digital Race World-class digital customer experience, both online and mobile. Data science, artificial intelligence and machine learning power our digital customer experience. Robert Half Direct hiring platform gives clients self-service access to our proprie
Slide 20: Robert Half Digital Strategy
Robert Half Digital Strategy Use proprietary data for competitive advantage Provide AI-based match recommendations to our clients and candidates Augment staff productivity and efficiency with global CRM platform and cloud solutions Blend of high-tech and high-touch 20 © 2022 Robert Half Internationa
Slide 21: Hiring Remains Labor Intensive
Hiring Remains Labor Intensive Robert Half puts equal emphasis on digital innovation and personalized service. In-demand Candidate Legal compliance candidates availability is significant have multiple is fluid and (e.g., wage and hour, offers/counteroffers. ever-changing. payroll taxes, I-9). 21 © 2
Slide 22: Financial Performance
Financial Performance 22
Slide 23: Revenues of $1.8B for Q1 2022
$1.8B Revenues of for Q1 2022 23 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 24: Revenue History (2001 – Q1 2022)
Revenue History (2001 – Q1 2022) Quarterly Global Revenues (in Billions) $1.95 $1.85 1.81 1.77 $1.75 1.71 $1.65 1.58 1.55 1.54 $1.55 1.52 1.481.47 1.51 1.461.47 $1.45 1.40 1.40 1.341.34 1.35 $1.35 1.311.311.30 1.32 1.31 1.30 1.29 1.27 1.27 1.221.231.23 $1.25 1.18 1.221.22 1.21 1.19 1.16 1.17 1.15 $1
Slide 25: Robert Half Enterprise Results
Robert Half Enterprise Results Year-Over-Year Revenue Growth (As Adjusted*) 50% 43% 43% 40% 40% 39% 36% 34% 31% 31% 30% 25% 23% 22% 22% 21% 20% 20% 20% 17% 17% 16% 17%18% 17% 16% 15% 16%15% 12% 14% 13%15% 13% 12% 11% 11% 11% 8% 10% 9% 8% 10% 10% 10% 10% 7% 9% 6% 5% 5%6% 5% 6%5% 4%3% 5% 4% 3% 3% 2% 1
Slide 26: Talent Solutions Divisions — U.S. vs. International
Talent Solutions Divisions — U.S. vs. International Year-Over-Year Revenue Growth (As Adjusted*) ‒ ‒ U.S. 50% 44% — International: Restated in Constant Currency 40% 40% 36% 37% 38% 32% 31%31% 30% 34% 28% 34% 28% 27% 31% 30% 27% 25% 24% 21% 21% 25% 24% 27% 27% 26% 28% 23% 22% 21% 22% 22% 23% 22% 22%
Slide 27: Contract Talent Solutions vs. Permanent Placement Talent Solutions
Contract Talent Solutions vs. Permanent Placement Talent Solutions Year-Over-Year Revenue Growth (As Adjusted*) 115% ‒ ‒ Contract Talent Solutions — Permanent Placement Talent Solutions 95% 78% 74% 75% 69% 59% 59% 67% 62% 55% 55% 48% 57% 55% 44% 41% 40% 37% 33% 34% 28% 35% 35% 23% 29% 25% 32% 29% 31
Slide 28: Contract Talent Solutions Revenues
Contract Talent Solutions Revenues (in Billions) $3.0 $5.0 3 months ended $4.3 $4.4 31.0% growth y/y (as adjusted) $4.0 $4.0 $4.0 $3.9 $4.0 $3.7 $3.6 $3.6 $3.5 $3.4 $3.3 $3.1 $3.1 $2.0 $3.0 $2.6 $2.6 $2.5 $2.3 $2.2 $1.2 $2.0 $1.8 $1.7 $1.0 $0.9 $1.0 $0.0 $0.0 2001 2002 2003 2004 2005 2006 2007 2008
Slide 29: Permanent Placement Talent Solutions Revenues
Permanent Placement Talent Solutions Revenues (in Millions) $600 $400 $570 3 months ended $512 $533 68.8% growth y/y (as adjusted) $500 $444 $439 $427 $421 $419 $300 $395 $400 $370 $348 $336 $334 $302 $300 $200 $187 $219 $221 $189 $182 $200 $112 $136 $100 $100 $95 $100 $0 $0 2001 2002 2003 2004 2005
Slide 30: Protiviti Revenues
Protiviti Revenues (in Millions) 3 months ended $2,000 $1,853 20.0% growth y/y $1,900 $800 (as adjusted) $1,800 $1,700 $1,600 $700 $1,500 $1,400 $1,262 $600 $1,300 $1,200 $1,129 $500 $472 $1,100 $958 $1,000 $397 $900 $804 $817 $400 $800 $743 $700 $624 $552 $300 $600 $543 $547 $528 $479 $453 $500 $42
Slide 31: Contract Talent Solutions Segment Income
Contract Talent Solutions Segment Income* 20-Year History 3 months ended 11.0% 10.0% 10.2% 9.8% 10.2% 9.8% 9.8% 12.0% 11.5% 10.0% 9.5% 9.6% 9.3% 9.3% 8.9% 8.9% 9.0% 10.5% 8.3% 8.0% 9.0% 8.5% 6.9% 6.9% 6.8% 7.0% 7.5% 6.0% 5.0% 6.0% 4.2% 4.2% 4.0% 4.5% 3.0% 2.7% 2.2% 3.0% 2.0% 1.5% 1.0% 0.0% 0.0% 2002
Slide 32: Permanent Placement Talent Solutions Segment Income
Permanent Placement Talent Solutions Segment Income* 20-Year History 3 months ended 25.0% 25.0% 23.0% 22.2% 23.0% 21.0% 20.3% 19.9% 20.2% 21.0% 20.0% 19.4% 19.1% 18.7% 19.0% 17.7% 17.7% 19.0% 16.7% 17.0% 15.6% 15.7% 17.0% 15.9% 15.0% 14.1% 15.0% 12.5% 13.0% 11.7% 13.0% 11.0% 11.0% 9.0% 7.9% 7.8% 9.0
Slide 33: Protiviti Segment Income
Protiviti Segment Income* Inception to Date 3 months ended 20.0% 20.0% 17.9% 18.1% 18.0% 16.5% 18.0% 16.0% 16.0% 14.4% 14.0% 12.9% 14.0% 12.3% 12.1% 12.0% 11.2% 11.3% 12.0% 9.7% 10.0% 10.3% 9.7% 10.0% 10.0% 8.1% 8.0% 8.0% 6.0% 6.0% 3.8% 4.0% 4.0% 2.4% 2.0% 1.3% 1.2% 2.0% 0.0% 0.0% -2.0% -2.0% -4.0%
Slide 34: Cash Flow History
Cash Flow History Operating Cash Flow (in Millions) 3 months ended $600.0 $100.0 $90.0 $500.0 $80.0 $68.1 $69.2 $70.0 $400.0 $60.0 $300.0 $50.0 $40.0 $200.0 $30.0 $20.0 $100.0 $10.0 $0.0 $0.0 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 3 mos. 3 mos. 2021 2022 34 © 2022 Robert Half Interna
Slide 35: Strong Balance Sheet
Strong Balance Sheet As of March 31, 2022 $3.0B Total assets $550M Cash Zero Debt 35
Slide 36: Significant Free Cash Flow Returned to Shareholders
Significant Free Cash Flow Returned to Shareholders (in Millions) YTD 5 Years Dividends $47 46% $656 38% Share Repurchases $55 54% $1,054 62% Total $102 100% $1,710 100% Amounts shown are through March 31, 2022 36 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Vet
Slide 37: Quarterly Dividend Increased Annually Since Inception
Quarterly Dividend Increased Annually Since Inception $0.06 Q2 2004 $0.43 Q1 2022 11.7% Compound Annual Growth Rate* * CAGR percentage calculated with record date of February 25, 2022 37 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 38: Share Count Reduction as of Q1 2022
Share Count Reduction as of Q1 2022 3 Years 5 Years 10 Years Shares Repurchased 7.4M 15.8M 27.8M Share Count Reduction 6.3% 12.5% 20.1% 38 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 39: © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
© 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.