Robert Walters PLC · LSE:RWA
Robert Walters — H1 2017 Earnings Presentation
35 slides from Robert Walters's earnings presentation, Jul 26, 2017
Slide 1: Half-Year Results
HALF-YEAR RESULTS Robert Walters plc 26 July 2017
Slide 2: Agenda
STRATEGY & GROUP HIGHLIGHTS Robert Walters, Chief Executive Officer FINANCIAL REVIEW Alan Bannatyne, Chief Financial Officer AGENDA OPERATIONS REVIEW Giles Daubeney, Deputy Chief Executive Officer OUTLOOK Robert Walters, Chief Executive RobertRobert Walters plc Walters plc 2 Half-year results Full y
Slide 3: Group brands and services
Group brands and services ROBERT WALTERS GROUP SPECIALIST JUNIOR CLERICAL RECRUITMENT PROFESSIONAL RECRUITMENT PROCESS RECRUITMENT EUROPE OUTSOURCING RobertRobert Walters plc Walters plc 3 Half-year results Full year results 26 July 2017 Year ended 31 December 2015
Slide 4: Group strategy
Group strategy TO BE THE LEADING SPECIALIST GLOBAL RECRUITMENT SOLUTIONS PROVIDER Recruitment discipline diversification Recruitment process outsourcing International expansion RobertRobert Walters plc Walters plc 4 Half-year results Full year results 26 July 2017 Year ended 31 December 2015
Slide 5: Innovation
Innovation RobertRobert Walters plc Walters plc 5 Half-year results Full year results 26 July 2017 Year ended 31 December 2015
Slide 6: Awards and CSR
Awards and CSR Awards CSR RobertRobert Walters plc Walters plc 6 Half-year results Full year results 26 July 2017 Year ended 31 December 2015
Slide 7: Group Highlights
GROUP HIGHLIGHTS
Slide 8: Group highlights
Group highlights ▪ Record Group performance ▪ Net fee income up 28% (18%*) to £164.5m (2016: £128.1m) ▪ Operating profit up 62% (44%*) to £16.2m (2016: £10.1m) ▪ Profit before taxation up 39% (46%*) to £15.6m (2016: £11.2m) ▪ All of the Group’s regions delivered increases in both net fee income and
Slide 9: Financial Review
FINANCIAL REVIEW
Slide 10: Financial review
Financial review % CHANGE £M H1 2017 H1 2016 % CHANGE (CONSTANT CURRENCY*) REVENUE 562.7 451.4 25% 17% GROSS PROFIT (NET FEE INCOME) 164.5 128.1 28% 18% OPERATING PROFIT 16.2 10.1 62% 44% PROFIT BEFORE TAXATION 15.6 11.2 39% 46% ▪ Basic earnings per share increased by 54% to 16.3p (2016: 10.6p) ▪ In
Slide 11: Consolidated Group Income Statement
Consolidated Group Income Statement 6 MONTHS TO 6 MONTHS TO 12 MONTHS TO £M 30 JUNE 2017 30 JUNE 2016 31 DECEMBER 2016 REVENUE 1 562.7 451.4 998.5 NET FEE INCOME 2 164.5 128.1 278.3 OPERATING PROFIT 16.2 10.1 26.2 INTEREST AND FOREIGN EXCHANGE (0.6) 1.1 1.9 PROFIT BEFORE TAXATION 15.6 11.2 28.1 TAXA
Slide 12: Summary of Group Balance Sheet
Summary of Group Balance Sheet AS AT AS AT AS AT £M 30 JUNE 2017 30 JUNE 2016 31 DECEMBER 2016 GOODWILL 8.0 8.0 8.1 TANGIBLE ASSETS & COMPUTER SOFTWARE 13.1 11.5 11.5 21.1 19.5 19.6 RECEIVABLES 251.6 226.3 236.1 PAYABLES & PROVISIONS (192.7) (166.1) (181.0) 58.9 60.2 55.1 CURRENT AND DEFERRED TAX 4.
Slide 13: Summary of Group Cash Flow
Summary of Group Cash Flow 6 MONTHS TO 6 MONTHS TO 12 MONTHS TO £M 30 JUNE 2017 30 JUNE 2016 31 DECEMBER 2016 OPERATING PROFIT 16.2 10.1 26.2 DEPRECIATION & AMORTISATION 2.2 2.0 4.2 SHARE-BASED PAYMENTS & OTHER NON-CASH ITEMS 2.8 2.4 5.3 WORKING CAPITAL MOVEMENTS (3.7) (5.5) 1.5 CASH GENERATED BY OP
Slide 14: Regional analysis – net fee income
Regional analysis – net fee income 6 months to 30 June 2017 6 months to 30 June 2016 29% UK 41% 31% 42% (£48.3m) Asia Pacific Asia Pacific UK (£67.4m) (£40.2m) (£54.0m) 23% 23% Europe Europe (£38.0m) 7% (£28.2m) 4% Other Other International International (£10.9m) (£5.6m) RobertRobert Walters plc Wal
Slide 15: Track record of secular growth
Track record of secular growth 180 160 140 120 Net fee 100 income £m 80 60 40 20 0 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 RobertRobert Walters plc Walters plc 15 Half-year results Full year resul
Slide 16: Interim dividends with % movements
Interim dividends with % movements 3.0 25% 2.5 20% 2.0 15% 1.5 10% 1.0 5% 0.5 0.0 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Interim Dividend % Movement RobertRobert Walters plc Walters plc 16 Half-year results Full year results 26 July 2017 Year ended 31 December 2015
Slide 17: Operations Review
OPERATIONS REVIEW
Slide 18: Asia Pacific
ASIA PACIFIC
Slide 19: Asia Pacific (41% of net fee income)
Asia Pacific (41% of net fee income) ▪ Net fee income: £67.4m (2016: £54.0m) Permanent/contract recruitment split ▪ Operating profit: £7.7m (2016: £6.4m) 24% Locations: Contract (2016: 22%) Australia Philippines China Singapore Hong Kong South Korea 76% India Taiwan Permanent Indonesia Thailand (201
Slide 20: Asia Pacific – Japan, Australia & New Zealand
Asia Pacific Japan ▪ Record first half performance ▪ Demand for bilingual professionals remains strong across all skillsets ▪ Increased demand from: ▪ Multinational corporates ▪ Japanese firms attempting to globalise Australia & New Zealand ▪ Australia ▪ Growth strongest across Queensland and South
Slide 21: Asia Pacific – Asia ex. Japan
Asia Pacific Asia ex. Japan ▪ Strong performance across both established and emerging recruitment markets ▪ Hong Kong, Korea, Indonesia, Thailand and Vietnam all delivered record results ▪ Demand for bilingual professionals continues to be strong across all our fast-growing, Balik Kampung campaign t
Slide 22: UK
UK
Slide 23: UK (29% of net fee income)
UK (29% of net fee income) ▪ Net fee income: £48.3m (2016: £40.2m) Permanent/contract recruitment split ▪ Operating profit: £4.0m (2016: £1.8m) 39% Contract Locations: (2016: 40%) Birmingham Guildford London 61% Manchester Permanent Milton Keynes (2016: 60%) St Albans Average tenure Recruitment net
Slide 24: UK
UK ▪ Economic and political environment continues to be volatile ▪ Client and candidate confidence has improved since the low point of June 2016 ▪ London & South East • Significant improvement in financial services hiring • Commerce finance and technology disciplines have performed well • Increased
Slide 25: Europe
EUROPE
Slide 26: Europe (23% of net fee income)
Europe (23% of net fee income) ▪ Net fee income: £38.0m (2016: £28.2m) Permanent/contract/interim recruitment split ▪ Operating profit: £4.4m (2016: £2.1m) 24% Contract Locations: (2016: 26%) Benelux France Germany 57% Ireland Permanent Portugal (2016: 55%) Spain 19% Switzerland Interim (2016:19%) A
Slide 27: Europe
Europe ▪ Strong growth across permanent, contract and interim recruitment activity ▪ France, the region’s largest business, had a record first half • Notable increase in permanent recruitment activity • New regional office opened in Toulouse last year has started well ▪ Netherlands and Belgium both
Slide 28: Other International
OTHER INTERNATIONAL
Slide 29: Other International (7% of net fee income)
Other International (7% of net fee income) ▪ Net fee income: £10.9m (2016: £5.6m) Permanent/contract recruitment split ▪ Operating profit: £0.1m (2016: loss of £0.2m) 100% Permanent Locations: (2016: 100%) Brazil Canada Middle East South Africa USA Average tenure Recruitment net fee income by discip
Slide 30: Other International
Other International ▪ Mixed performance across North America • San Francisco continued to see good levels of demand especially across the technology and digital space • Financial services subdued in New York • New office in Canada (Toronto) shows early signs of promise ▪ Brazil High-profile market c
Slide 31: Resource Solutions
RESOURCE SOLUTIONS
Slide 32: Resource Solutions – the model
Resource Solutions – the model *The Recruitment Process Outsourcing (RPO) market is projected to grow by 15.4% per annum until 2019 (Source: Nelson Hall) RobertRobert Walters plc Walters plc 32 Half-year results Full year results 26 July 2017 Year ended 31 December 2015
Slide 33: Resource Solutions
Resource Solutions ▪ Strong net fee income growth across the UK, Europe, US and Asia ▪ Significant investment in new client win implementations particularly in Asia ▪ Multi-country RPO and Total Talent Acquisition services in high demand ▪ Clients across 50 countries. Headcount now circa 1,200 ▪ Fou
Slide 34: Outlook
OUTLOOK
Slide 35: Outlook
Outlook “We enter the second half of the year with confidence that the Group’s platform for growth is strong and that we are well positioned to further capitalise on market opportunities as they arise.” RobertRobert Walters plc Walters plc 35 Half-year results Full year results 26 July 2017 Year end