Slide 1: 4th quarter results 2023
13th of February 2024 4th quarter results 2023. FY 2023: resilient performance, strong free cash flow. Sander van ‘t Noordende, CEO Jorge Vazquez, CFO
Slide 2: Disclaimer
disclaimer. Certain statements in this document concern prognoses about the changes in the business mix, changes in legislation (particularly future financial condition, risks, investment plans, and the results in relation to employment, staffing and tax laws), the role of of operations of Randstad
Slide 3: Definitions
definitions. EBITA: operating profit before amortization and impairment acquisition-related intangible assets and goodwill, integration costs and one-offs. organic growth is measured excluding the impact of currency effects, acquisitions, disposals and reclassifications. diluted EPS is measured befo
Slide 4: Agenda
agenda. performance 5 financial results & outlook 12 Q&A 18 appendix 19 © randstad 4
Slide 5: Performance
01 performance. 0''0'1¢ yO © randstad | 5
Slide 6: Q4 2023: resilient performance, strong free cash flow
Q4 2023: resilient performance, strong free cash flow. summary key financials focus challenging markets continued revenue -8.6% YoY continued adaptability good adaptability across portfolio gross margin 20.7% indirect cost focus strong free cash flow EBITA € 265m, 4.3% margin partner for talent reso
Slide 7: North America: continued challenging market conditions
north america: continued challenging market conditions. organic revenue growth YoY, last two quarters* ● us: continued soft demand ● canada: decline slightly decelerated ● profitability: focused opex steering EBITA margin (underlying)** * YoY organic change is measured excluding the impact of curren
Slide 8: Northern Europe: challenging business environment, strong adaptability
northern europe: challenging business environment, strong adaptability. organic revenue growth YoY, last two quarters* ● netherlands: good profitability & adaptability ● germany: softened demand, profitability impacted by perm and sickness rate EBITA margin (underlying)** ● belgium: sound margin pro
Slide 9: Southern Europe, UK & LatAm: modest declines, excellent cost control
southern europe, uk & latam: modest declines, excellent cost control, strong profitability. organic revenue growth YoY, last two quarters* ● france: growth in professionals continued, disciplined cost control ● italy: perm up 9%, excellent profitability ● spain: staffing / inhouse flat, professional
Slide 10: Asia Pacific: mixed growth trends, good adaptability
asia pacific: mixed growth trends, good adaptability. organic revenue growth YoY, last two quarters* ● japan: continued solid growth ● australia & new zealand: softened demand ● india: resilience, focus on quality of EBITA margin (underlying)** portfolio * YoY organic change is measured excluding th
Slide 11: Global businesses: challenging economic conditions continued
global businesses: challenging economic conditions continued. organic revenue growth YoY, last two quarters* ● enterprise solutions: RPO business continued to detract; continued growth in outplacement ● monster: affected by challenging macro environment EBITA margin (underlying)** * YoY organic chan
Slide 12: Financial results & outlook
02 financial results & outlook. © randstad 12
Slide 13: Q4 2023: continue to perform
Q4 2023: continue to perform. performance key highlights € million Q4 ’23 Q4 ’22 % org. revenue 6,183 7,007 -9% ● organic revenue down 8.6% YoY gross profit 1,281 1,457 -8% ● robust gross margin 20.7%, -10 bp YoY gross margin 20.7% 20.8% operating expenses* 1,016 1,093 -4% ● EBITA € 265m, solid EBIT
Slide 14: Gross margin stable: temp margin offsetting fee business
gross margin stable: temp margin offsetting fee business. Q4 gross margin development YoY key highlights • temp margin +50 bp YoY • perm fees -40 bp YoY • HRS/other -20 bp YoY, mainly reflecting decline in RPO, growth in outplacement © randstad 14
Slide 15: Continued field steering & adaptability
continued field steering & adaptability. Q4 sequential opex bridge (€m) key highlights • opex broadly flat QoQ, down 4% YoY • # FTEs down 4% QoQ, down 11% YoY • Q4 recovery ratio 33% • FY 23 recovery ratio 48% © randstad 15
Slide 16: Solid free cash flow & sound balance sheet
solid free cash flow & sound balance sheet. Q4 free cash flow balance sheet • Q4 FCF € 291m (Q4 2022: € 294m) • net debt € 306m excl. lease liabilities • FY FCF: € 883m (FY 2022: € 739m) • leverage ratio excl. lease liabilities: 0.3 • DSO 53.3, up 0.1 days vs Q4 2022 • Randstad received an issuer cr
Slide 17: Outlook: continued focus on adaptability
outlook: continued focus on adaptability. Q1 2024 outlook momentum in January • gross margin is expected to be modestly • January organic revenue growth in line lower sequentially due to seasonality with Q4 2023 trends • operating expenses are expected to be • operational adaptability & agility marg
Slide 18: Shareholder return proposal
shareholder return proposal. capital allocation • Regular cash dividend of € 2.28 per ordinary share and an additional cash dividend of € 1.27 per ordinary share, ~ € 632m • update on SBB of € 400m: • third tranche completed (€ 242m completed; € 158m outstanding) • fourth tranche starting 13th of Fe
Slide 19: Questions & answers
03 questions & answers.
Slide 20: Appendices
04 appendices. © randstad 20
Slide 21: Outlets by region
outlets by region. end of period Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 North America 1,108 1,120 1,070 1,176 1,193 the Netherlands 597 645 678 608 612 Germany 502 522 525 533 516 Belgium & Luxembourg 294 300 308 329 331 Other Northern Europe countries 310 313 310 322 325 Northern Europe 1,703 1,73
Slide 22: Corporate staff by region
corporate staff by region. average Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 North America 6,250 6,440 6,460 6,780 7,150 the Netherlands 3,700 3,780 3,910 4,030 4,110 Germany 2,400 2,450 2,630 2,740 2,860 Belgium & Luxembourg 2,210 2,220 2,230 2,250 2,380 Other Northern Europe countries 2,290 2,330 2,
Slide 23: Number of employees working on a temporary basis by region
number of employees working on a temporary basis by region. average Q4 2023 Q4 2022 North America 70,900 88,000 the Netherlands 54,700 67,300 Germany 29,000 38,900 Belgium & Luxembourg 39,300 43,000 Other Northern Europe countries 40,900 41,600 Northern Europe 163,700 190,900 France 78,200 85,100 It
Slide 24: Partner for talent
partner for talent. VM randstad