Slide 1: 3rd quarter 2018 results
rd 3 quarter 2018 results. further EBITA margin progression. Jacques van den Broek, CEO Henry Schirmer, CFO Randstad N.V. 23 October 2018
Slide 2: Disclaimer
disclaimer. Certain statements in this document concern prognoses about the business mix, changes in legislation (particularly in relation to future financial condition, risks, investment plans and the results of employment, Staffing and tax laws), the role of industry operations of Randstad N.V. an
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 appendices 19 © Randstad 2018 | 4
Slide 5: Performance moving forward
performance moving forward. © Randstad 2018 | 5
Slide 6: Q3 2018 further EBITA margin progression
Q3 2018 further EBITA margin progression. mixed growth, digital strategy in full growth drivers strong conversion swing organic growth 2.7% professionals up 6% EBITA € 299m perm up 13% EBITA margin 5.0% NAM and ROW accelerating © Randstad 2018 | 6
Slide 7: North America and the Netherlands
north america the netherlands US profs turning positive. closing the gap with market. ● revenue up 3% (Q2: +2%) ● revenue at +4% (Q2: +4%) ● US Staffing & Inhouse, revenue growth 5% (Q2: +5%) ● combined Staffing & Inhouse businesses up 2% (Q2: +2%) ● US Professionals, revenue up 1% (Q2: down 1%) ● P
Slide 8: France and Germany
france germany impacted by market slowdown. automotive weakness. ● revenue down 1% (Q2: +3%) ● revenue down 2% (Q2: +6%) ○ perm up 22% (Q2: +21%) ● Staffing & Inhouse down 4% (Q2: +6%) ● Staffing & Inhouse down 4% (Q2: +2%) ● Professionals up 7% (Q2: +7%) ● Professionals up 9% (Q2: +10%) ● EBITA mar
Slide 9: Belgium and Italy
belgium italy above market. resilient topline trends. ● revenue +3% (Q2: +7%) ● revenue +7% (Q2: +10%) ○ perm up 34% (Q2: +35%) ○ strong perm growth at +38% (Q2: +44%) ● EBITA margin at 5.9% vs. 6.1% LY ● EBITA margin at 5.8% vs. 5.9% LY © Randstad 2018 | 9
Slide 10: Iberia and other European countries
iberia other european countries strong conversion in spain. improving profitability. ● iberia revenue up 1% (Q2: +3%) ● UK revenue growth up by 3% (Q2: +7%) ● spain revenue growth up 3% (Q2: +4%) ● nordics growth up 1% (Q2: +4%) ● portugal revenue down 3% (Q2: down 1%) ● switzerland growth up 6% (Q2
Slide 11: Rest of the world and global businesses
rest of the world global businesses double-digit growth at good conversion. improved profitability. ● japan growth up 7% YoY (Q2: +9%) ● monster down 15% (Q2: down 16%) ○ increase randstad usage of talent engine ● australia & new zealand grew 14% (Q2: +7%) ○ working on new business models ○ financia
Slide 12: Financial results & outlook
financial results & outlook. © Randstad 2018 | 12
Slide 13: Q3 2018 delivering on operational leverage
Q3 2018 delivering on operational leverage. Q3 performance Q3 highlights € million Q3 ’18 Q3 ’17 % org. revenue 6,006 5,872 3% • solid revenue growth gross profit 1,191 1,178 2% gross margin 19.8% 20.1% • EBITA margin up 10bp YoY operating expenses* 892 891 1% opex % 14.9% 15.2% • agile opex steerin
Slide 14: Q3 2018 gross margin: underlying stable - impacted by mix
Q3 2018 gross margin: underlying stable - impacted by mix. Q3 gross margin development YoY Q3 highlights • temp margin down 20bp: mix/price -10bp, CICE -10bp • perm fees grew 13% YoY organically, adding 20bp • HRS/Monster impact -20bp, driven primarily by Monster © Randstad 2018 | 14
Slide 15: Agile cost management in Q3
agile cost management in Q3. Q3 sequential opex bridge Q3 cost management • organic opex decreased 2% vs. Q2 (+1% YoY) • productivity (GP/FTE) stable • on track to deliver cost savings program © Randstad 2018 | 15
Slide 16: Resilient free cash flow and balance sheet
resilient free cash flow and balance sheet. improved free cash flow YoY strong balance sheet • FCF € 220m (+24% vs. Q3 2017) • net debt € 1,419m • WC improvement € 35m YoY • special dividend € 126m paid in Q3 • DSO 54, up 1.5 days due to mix effects • leverage ratio 1.2 (Q3 2017: 1.4) © Randstad 201
Slide 17: Conclusion and outlook: driving for profitable growth
conclusion and outlook: driving for profitable growth. September and October trends Q3 conclusion and outlook in line with Q3 NAM NL FR • EBITA margin up, strong FCF conversion GER BEL • digital strategy well underway IBE IT • confirming FY 2018 EBITA margin outlook RoE low single-digit growth RoW m
Slide 18: Questions & answers
questions & answers. © Randstad 2018 | 18
Slide 19: Appendices
appendices randstad. © Randstad 2018 | 19
Slide 20: Outlets by region
outlets by region. end of period Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 North America 1,119 1,090 1,091 1,111 1,099 the Netherlands 664 665 648 650 627 France 645 657 663 669 673 Germany 601 595 588 582 579 Belgium & Luxembourg 322 325 323 317 315 Italy 264 266 269 275 281 Iberia 369 365 360 354 34
Slide 21: Corporate staff by region
corporate staff by region. average Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 North America 5,840 5,720 5,660 5,690 5,700 the Netherlands 4,380 4,360 4,350 4,310 4,310 France 4,590 4,500 4,410 4,390 4,240 Germany 3,180 3,120 3,020 2,820 2,760 Belgium & Luxembourg 2,230 2,130 2,100 2,130 2,160 Italy 2,2
Slide 22: Staffing employees by region
staffing employees by region. average Q3 2018 Q3 2017 North America 99,700 100,600 the Netherlands 81,700 78,900 France 86,000 87,400 Germany 47,500 50,600 Belgium & Luxembourg 51,900 50,400 Italy 51,100 49,100 Iberia 71,700 71,300 Other European countries 65,000 67,700 Rest of the world 109,600 111
Slide 23: eaese
eaese human forward WM