Robert Half Inc. · NYSE:RHI
Robert Half — Investor Presentation (June 2023)
38 slides from Robert Half's investor presentation, June 2023
Slide 1: Investor Presentation June 2023
Investor Presentation June 2023
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 2023
Company Snapshot Q1 2023 Service Revenues: $1.7 Billion Net Income: $122 Million NYSE symbol: Headquarters: Full-time RHI Menlo Park, internal staff*: Return on Calif. 16,300 Invested Capital: 30.8% * As of Dec. 31, 2022. Includes approximately 7,000 employees engaged directly in Protiviti operation
Slide 4: Local Capabilities, Global Reach
Local Capabilities, Global Reach North America Asia-Pacific Europe South America Middle East 4 © 2023 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. Disclaimer: From FORTUNE, ©2023 FORTUNE Media IP Limited. All rights reserved. Used
Slide 6: 75 Years of Changing Lives and Helping Companies Succeed
75 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 Almost 80% of Talent Solutions Revenues
U.S. Accounts for Almost 80% of Talent Solutions Revenues Talent Solutions Revenue Mix — Global 23% 77% International United States Q1 2023 Talent Solutions Revenues 7 © 2023 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 8: Largest Portion of International Talent Solutions Revenues from Continental Europe
Largest Portion of International Talent Solutions Revenues from Continental Europe Talent Solutions Revenue Mix — International Continental Europe 11% Asia-Pacific 3% 23% 77% International United States Canada 5% United Kingdom 2% Other 2% Q1 2023 Talent Solutions Revenues 8 © 2023 Robert Half Inter
Slide 9: Germany and Belgium Produce Largest European Revenues
Germany and Belgium Produce Largest European Revenues Talent Solutions Revenue Mix — Continental Europe Germany 5% Belgium 4% 11% France 1% Continental Other 1% Europe Q1 2023 Talent Solutions Revenues 9 © 2023 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 10: Revenue Mix by Segment
Revenue Mix by Segment Q1 2023 Global Revenues 29% Protiviti 9% Permanent Placement Talent Solutions 62% Contract Talent Solutions 10 © 2023 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 2023 Global Revenues 18% Technology 21% Administrative and Customer Support Contract Talent Solutions* 73% Finance and Accounting Q1 2023 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 2023 Versus 20-Year Average 40.0% 30.8% Superior ROIC is rooted in 30.0% our ability to generate 24.5% industry-leading profitability on a judiciously employed 20.0% capital base, including growth achieved primarily by organic means. 10.0% 0.0% 20-Year Average* Q1 2023
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: Structural Shift to Remote/Hybrid Talent Models
Structural Shift to Remote/Hybrid Talent Models Increases competitive advantage through: • Brand strength and awareness • Global candidate database • Local candidate relationships • Proven AI-based matching technology 14 © 2023 Robert Half International Inc. An Equal Opportunity Employer M/F/Disabil
Slide 15: Balanced Suite of Consulting Solutions Driving Protiviti Growth
Balanced Suite of Consulting Solutions Driving Protiviti Growth Growing suite of consulting solutions Internal Audit Protiviti/talent Business and Technology Risk and solutions Financial Consulting Compliance Performance Improvement Advisory 15 © 2023 Robert Half International Inc. An Equal Opportun
Slide 16: Full Spectrum of Talent Solutions and Consulting Solutions
Full Spectrum of Talent Solutions and Consulting Solutions Finance and Finance and Marketing & Management Protiviti Accounting – Accounting – Creative Resources Permanent Contract Talent Placement Administrative & Legal Technology Customer Support Specialized Project Project Management Talent Soluti
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 consulting Talent solutions competito
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 customer and candidate experience, both online and through award-winning mobile app • Data science, artificial intelligence and machine learning power our digital experiences • Integrated with traditional recruiter choices Blend of
Slide 20: Financial Performance
Financial Performance 20
Slide 21: Revenues of $1.7B for Q1 2023
$1.7B Revenues of for Q1 2023 21 © 2023 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 22: Revenue History (2001 – Q1 2023)
Revenue History (2001 – Q1 2023) Quarterly Global Revenues (in Billions) $1.95 1.86 1.83 $1.85 1.81 1.77 1.73 $1.75 1.71 1.72 $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.
Slide 23: Contract Talent Solutions Revenue (Net) History
Contract Talent Solutions Revenue (Net) History (2001 – Q1 2023) Quarterly Global Revenues (in Billions) $1.25 1.17 1.16 1.14 $1.15 1.10 1.12 1.11 1.12 1.091.081.091.08 1.09 1.07 1.07 1.05 1.07 $1.05 1.001.011.01 1.03 1.02 1.001.00 1.02 0.98 0.99 0.98 0.97 0.97 0.95 0.96 0.95 0.95 0.94 $0.95 0.90 0.
Slide 24: Contract Talent Solutions Revenue Gross History
Contract Talent Solutions Revenue Gross* History (Q1 2018 – Q1 2023) Quarterly Global Revenues (in Billions) $1.45 $1.35 1.30 1.30 1.28 1.27 $1.25 1.23 1.21 1.19 1.16 1.16 1.13 1.14 1.14 $1.15 1.09 1.12 1.12 1.12 1.12 $1.05 0.99 0.94 $0.95 0.84 $0.85 0.79 $0.75 $0.65 $0.55 $0.45 $0.35 $0.25 1Q'18 2Q
Slide 25: Permanent Placement Talent Solutions Revenue History
Permanent Placement Talent Solutions Revenue History (2001 – Q1 2023) Quarterly Global Revenues (in Millions) $225 200 $200 187 182 $175 156 158 156157 $150 141 144 135 135 130 132 128 126 126 121 $125 115 118 116 113 120 113 113 111 112 112 111 111 108 106 105 103 102 102 104 99 97 98 $100 88 87 89
Slide 26: Protiviti Revenue History
Protiviti Revenue History (Q2 2002 – Q1 2023) Quarterly Global Revenues (in Millions) $550 511 501 497 499 495 494 $500 472 459 $450 397 $400 362 $350 321 305 299 294 $300 273 284 263 253 252 $250 234 217 214 209 208 202 199 201 195 196 197 $200 182 187 168 171 164 152 151 151 142 142 141 139 139 14
Slide 27: 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% 20% 17% 17% 16% 17%18% 17% 16% 15% 16%15% 12% 14% 13%15% 13% 12% 11% 11% 10% 11% 8% 10% 9% 8% 10% 10% 10% 10% 7% 9% 6% 5% 5%6% 5% 6%5% 4%3% 5% 4% 3%
Slide 28: 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% 31%31% 34% 32% 34% 30% 28% 28% 27% 31% 28% 30% 27% 25% 25% 24% 21%21% 24% 27% 27% 26% 25% 23% 22% 21% 22% 22% 23% 22% 2
Slide 29: 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% 43% 41% 40% 37% 33% 34% 28% 35% 31% 35% 23% 29% 25% 32
Slide 30: Contract Talent Solutions Segment Income Margin
Contract Talent Solutions Segment Income Margin* 20-Year History 12.0% 10.9% 11.0% 10.0% 10.2% 9.8% 10.2% 9.8% 9.8% 10.0% 9.5% 9.6% 9.3% 9.3% 8.9% 8.9% 9.0% 8.3% 8.0% 6.9% 6.9% 6.8% 7.0% 6.0% 5.0% 4.2% 4.2% 4.0% 3.0% 2.2% 2.0% 1.0% 0.0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 201
Slide 31: Permanent Placement Talent Solutions Segment Income Margin
Permanent Placement Talent Solutions Segment Income Margin* 20-Year History 25.0% 23.0% 22.2% 21.0% 20.3% 19.9% 20.2% 19.4% 19.1% 18.7% 19.0% 17.7% 17.7% 17.6% 16.7% 17.0% 15.6% 15.7% 15.0% 14.1% 12.5% 13.0% 11.7% 11.0% 9.0% 7.9% 7.8% 7.0% 5.0% 2.7% 3.0% 1.0% -1.0% -3.0% -5.0% -3.8% -7.0% -9.0% 2003
Slide 32: Protiviti Segment Income Margin
Protiviti Segment Income Margin* Inception to Date 20.0% 17.9% 18.1% 18.0% 16.5% 16.0% 13.7% 14.0% 12.9% 12.3% 12.0% 11.2% 11.3% 10.0% 10.3% 9.7% 9.7% 10.0% 8.1% 8.0% 6.0% 3.8% 4.0% 2.4% 2.0% 1.3% 1.2% 0.0% -2.0% -4.0% -2.8% -6.0% -8.0% -8.0% -10.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 33: Cash Flow History
Cash Flow History Operating Cash Flow (in Millions) $700.0 $600.0 $500.0 $400.0 $300.0 $200.0 $100.0 $0.0 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 33 © 2023 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 34: Strong Balance Sheet
Strong Balance Sheet As of March 31, 2023 $2.9B Total assets $548M Cash Zero Debt 34
Slide 35: Substantially All Free Cash Flow Returned to Shareholders
Substantially All Free Cash Flow Returned to Shareholders (in Millions) YTD 5 Years Dividends $54 59% $716 43% Share Repurchases $38 41% $946 57% Total $92 100% $1,662 100% Amounts shown are through March 31, 2023 35 © 2023 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/
Slide 36: Quarterly Dividend Increased Annually Since Inception
Quarterly Dividend Increased Annually Since Inception $0.06 Q2 2004 $0.48 Q1 2023 11.7% Compound Annual Growth Rate* * CAGR percentage calculated with record date of Feb. 24, 2023 36 © 2023 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 37: Share Count Reduction as of Q1 2023
Share Count Reduction as of Q1 2023 3 Years 5 Years 10 Years Shares Repurchased 6.7M 15.8M 31.3M Share Count Reduction 5.9% 12.8% 22.6% 37 © 2023 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 38: © 2023 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
© 2023 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.