Slide 1: Half-yearly results
Half-yearly results Robert Walters plc 30 July 2020
Slide 2: About us: Our strategy and mission
Half-yearly results About us Our strategy The Group’s strategy for growth is centred on organic international expansion and discipline diversification, ensuring a balanced footprint covering mature and developing markets. International expansion Driving growth through expansion into new geographic l
Slide 3: About us: Our brands
Half-yearly results About us Our brands Specialist professional Specialist staffing Recruitment process recruitment outsourcing Robert Walters recruits specialists Walters People specialises in Resource Solutions is a market for permanent, contract and interim temporary/contract and junior leader in
Slide 4: Navigating the pandemic safely and profitably
Half-yearly results Navigating the pandemic safely and profitably Our pre-Covid investment in technology and innovation coupled with prudent cost management has enabled the Group to remain profitable and increase market share during this unprecedented period Technology and Innovation Pre-pandemic,
Slide 5: Brand-building and market share
Half-yearly results Brand-building and market share Providing value added commentary, thought leadership, best practice guides, webinars and digital events to keep key stakeholders informed on market and recruitment trends through this period of crisis: 5
Slide 6: Financial review
Half-yearly results Financial review 6
Slide 7: Group and regional financial summary
Half-yearly results Group and regional financial summary Group performance Net fee income down 23% (down 23%*) to £158.5m (2019: £204.9m) Operating profit down 81% (down 83%*) to £4.2m (2019: £22.5m) Profit before taxation down 79% (down 81%*) to £4.3m (2019: £20.9m) 77% (2019: 74%) of net f
Slide 8: Financial review
Half-yearly results Financial review £ H1 2020 H1 2019 % Change % Change (constant currency*) Revenue 496.4m 634.5m (22%) (21%) Gross profit (net fee income) 158.5m 204.9m (23%) (23%) Operating profit 4.2m 22.5m (81%) (83%) Profit before taxation 4.3m 20.9m (79%) (81%) Basic earnings per share dec
Slide 9: Consolidated Group income statement
Half-yearly results Consolidated Group income statement 6 months to 6 months to 12 months to £m 30 June 2020 30 June 2019 31 Dec 2019 Revenue1 496.4 634.5 1,216.1 Net fee income2 158.5 204.9 405.5 Operating profit 4.2 22.5 51.2 Interest and foreign exchange 0.1 (1.6) (3.8) Profit before taxation 4.3
Slide 10: Summary of Group balance sheet
Half-yearly results Summary of Group balance sheet As at As at As at £m 30 June 2020 30 June 2019 31 Dec 2019 Goodwill 8.1 8.1 8.1 Tangible assets and computer software 17.5 15.4 16.7 Right of use asset 69.0 80.3 72.9 94.6 103.8 97.7 Receivables1 172.5 266.9 209.7 Payables and provisions1 (154.2) (1
Slide 11: Summary of cash flow
Half-yearly results Summary of cash flow 6 months to 6 months to 12 months to £m 30 June 2020 30 June 2019 31 Dec 2019 Operating profit 4.2 22.5 51.2 Depreciation and amortisation 11.4 10.7 21.8 Share-based payments and other non-cash items 2.9 2.7 5.6 Unrealised foreign exchange gains/(losses) 3.5
Slide 12: Regional analysis (net fee income)
Half-yearly results Regional analysis (net fee income) 6 months to 30 June 2020 6 months to 30 June 2019 23% 26% UK (£36.3m) UK (£52.9m) 40% 39% Asia Pacific Asia Pacific (£63.9m) (£80.5m) 28% 26% 9% Europe (£44.5m) 9% Europe (£54.0m) Other International Other International (£13.8m) (£17.5m) 12
Slide 13: Net fee income by geography (H1 2020 v H1 2016)
Half-yearly results Net fee income by geography (H1 2020 v H1 2016) Asia Pacific 22% 20% UK 80% (40% of Group NFI) (23% of Group NFI) 20% Australia 2016: 24% London 2016: 86% Hong Kong 2016: 11% Regions 2016: 14% Japan 2016: 28% 7% 10% New Zealand 2016: 6% Singapore 2016: 10% Other 2016: 21% 6% 35%
Slide 14: Net fee income by discipline (H1 2020 v H1 2016)
Half-yearly results Net fee income by discipline (H1 2020 v H1 2016) 4% 4% 1% 4% Commerce Finance 2016: 34% 36% 4% IT 2016: 17% Banking Finance 2016: 16% Sales and Marketing 2016: 11% 4% HR 2016: 3% Engineering and Construction 2016: 5% Support 2016: 5% Other 2016: 1% Legal 2016: 4% Procurement 2016
Slide 15: Headcount H1 2020 – H1 2016
Half-yearly results Headcount H1 2020 – H1 2016 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 H1 2016 H1 2017 H1 2018 H1 2019 H1 2020 15
Slide 16: Track record of growth
Half-yearly results Track record of growth Net Fee Income H1 2016 - 2020 Profit Before Taxation H1 2016 - 2020 250,000 25,000 200,000 20,000 150,000 15,000 £000's £000's 100,000 10,000 50,000 5,000 0 0 H1 2016 H1 2017 H1 2018 H1 2019 H1 2020 H1 2016 H1 2017 H1 2018 H1 2019 H1 2020 Operating Profit H
Slide 17: Operations review
Half-yearly results Operations review 17
Slide 18: Operational management team
Half-yearly results Operational management team 35* 18* Robert Walters Alan Bannatyne Chief Executive Chief Financial Officer Officer 21* 21* 20* Toby Fowlston Antoine Morgaut Nick Dunnett CEO, Asia Pacific CEO, EMEA and CEO, Resource Americas Solutions *Denotes length of tenure in years 18
Slide 19: Our philosophy
Half-yearly results Our philosophy Philosophy Specialist professional recruitment is a relationship business #StopTappingStartTalking Technology as an enabler to free up consultants to focus on relationship building Drive candidate and client referrals based on quality of service Staff attract
Slide 20: Asia Pacific (40% of net fee income)
Half-yearly results Asia Pacific (40% of net fee income) Asia Pacific Permanent/contract 30% Net fee income: £63.9m (2019: £80.5m) recruitment Contract 2019: 23% Operating profit: £2.9m (2019: £10.0m) 70% Permanent 2019: 77% Locations: Australia New Zealand Hong Kong Philippines India Singapore
Slide 21: Asia Pacific: Japan and South Korea
Half-yearly results Asia Pacific Japan and South Korea Japan The Group’s most profitable business Resilient performance with net fee income declining 13%* year-on-year Despite a number of ‘stay-at-home’ Government directives during the period many organisations continued to hire key talent dig
Slide 22: Asia Pacific: South East Asia and Greater China
Half-yearly results Asia Pacific South East Asia and Greater China Unrivalled footprint – including some of the world’s fastest growing, emerging recruitment markets Greater China Hong Kong significantly impacted by both Covid-19 and ongoing political and social unrest. Net fee income declined b
Slide 23: Asia Pacific: Australia and New Zealand
Half-yearly results Asia Pacific Australia and New Zealand Strong and early Government action to contain Covid-19 spread helped stabilise market confidence across both markets, although second lockdown currently in place in Victoria Australia Resilient performance with net fee income declining 19%
Slide 24: Europe (28% of net fee income)
Half-yearly results Europe (28% of net fee income) Europe Permanent/contract 24% Net fee income: £44.5m (2019: £54.0m) recruitment Interim 2019: 22% Operating profit: £1.5m (2019: £7.7m) 48% Permanent 2019: 52% Locations: Benelux Czech Republic 28% Contract France 2019: 26% Germany Ireland Portu
Slide 25: Europe
Half-yearly results Europe Europe Breadth of permanent, contract and interim recruitment solutions continues to be a competitive advantage and has enabled us to service the full range of client requirements The Netherlands and Belgium proved extremely resilient with net fee income declining just
Slide 26: UK (23% of net fee income)
Half-yearly results UK (23% of net fee income) UK Permanent/contract Net fee income: £36.3m (2019: £52.9m) recruitment 38% Contract 2019: 34% Operating profit: £0.0m (2019: £4.2m) 62% Locations: Permanent Birmingham 2019: 66% Bracknell London Manchester Milton Keynes St Albans Recruitment net fe
Slide 27: UK
Half-yearly results UK UK Candidate and client confidence was generally positive during first two months of the year following the General Election and formal EU exit Confidence levels fell with lockdown triggering hiring freezes as organisations implemented pandemic contingency plans Healthca
Slide 28: Other International (9% of net fee income)
Half-yearly results Other International (9% of net fee income) Other International Permanent/contract Net fee income: £13.8m (2019: £17.5m) recruitment Operating loss: £0.2m (2019: operating profit of £0.6m) 100% Permanent 2019: 100% Locations: Brazil Canada Chile Mexico Middle East South Africa
Slide 29: Other International: Americas, South Africa, Middle East
Half-yearly results Other International Americas South Africa US market bucked the trend during the first half Market conditions remain challenging growing net fee income by 3%* Our highly specialised approach particularly across technology (engineering, product management, design, Middle East
Slide 30: Resource Solutions
Half-yearly results Resource Solutions Resource Solutions Net fee income negatively impacted across our international footprint Hiring freezes across a number of large global and regional clients due to Covid-19 Sources Headcount reduced in line with client demand of Continued to diversify c
Slide 31: The future
Half-yearly results The future 31
Slide 32: Outlook
Half-yearly results Outlook “The Group has a strong brand, balance sheet and cash position and is led by an experienced management team that has steered the business successfully through a number of previous international crises. “We remain confident that we will emerge from this unprecedented perio
Slide 33: Global office locations
Australia ・ Belgium ・ Brazil ・ Canada ・ Chile ・ Czech Republic ・ France ・ Germany ・ Hong Kong ・ India ・ Indonesia ・ Ireland Japan ・ Luxembourg ・ Mainland China ・ Malaysia ・ Mexico ・ Netherlands ・ New Zealand ・ Philippines ・ Portugal ・ Singapore South Africa ・ South Korea ・ Spain ・ Switzerland ・ Taiw