Hays Plc · LSE:HAS
Hays — Investor Day (April 2022)
84 slides from Hays's investor day presentation, Apr 28, 2022
Slide 1: Navigating the New World of Work – Investor Day 2022
NAVIGATING THE NEW WORLD OF WORK INVESTOR DAY 2022 INVESTOR DAY 2828April April2022 2022
Slide 2: Hays' Future at the Heart of the World of Work
NAVIGATING THE NEW WORLD OF Alistair Cox WORK Chief Executive Alistair joined Hays as Chief Executive in 2007. After an early career in Engineering, he graduated from Stanford Business School in 1991 and joined McKinsey, before moving to Lafarge initially as Group Strategy Director and latterly as R
Slide 3: Hays sits at the heart of a dramatically changed work ecosystem
HAYS SITS AT THE HEART OF A DRAMATICALLY CHANGED WORK ECOSYSTEM, CHANGES WHICH PLAY DIRECTLY TO OUR STRENGTHS Chronic skill shortages and Significant new demand in high job churn related HR Services Enhanced ESG and Rapid new job category creation ED&I requirements Demands for flexible working and A
Slide 4: Today's Agenda
TODAY’S AGENDA 1 HAYS’ FUTURE AT THE HEART OF THE WORLD OF WORK Alistair Cox – Chief Executive STRATEGY IN ACTION CASE STUDIES i) Differentiating via great customer service Steve Weston – Chief Customer Officer ii) Structural growth opportunities in the enterprise client market Matt Dickason – Globa
Slide 5: The world of work has significantly changed post-pandemic
THE WORLD OF WORK HAS SIGNIFICANTLY CHANGED POST-PANDEMIC, WITH CLIENTS AND CANDIDATES FACING NEW CHALLENGES AND OPPORTUNITIES Covid has accelerated the megatrends which are shaping the world of work Business Skill Employee Demographic Societal challenges shortages demands challenges demands Greater
Slide 6: The new world of work benefits Hays in five major areas
THE NEW WORLD OF WORK BENEFITS HAYS IN FIVE MAJOR AREAS Skill shortages We have the deepest and broadest talent networks New job creation Particularly in Greater job churn structurally growing HAYS BENEFITS BY Helped by faster hiring sectors decisions SOLVING CLIENTS’ TALENT PROBLEMS Wage inflation
Slide 7: How & why Hays will win in the new world of work
HOW & WHY HAYS WILL WIN IN THE NEW WORLD OF WORK We recruit for all professional Unrivalled global network serving Highly scalable model, expertly 1 Delivery capability all employment types serving all client sizes skillsets, including the fastest growing talent markets globally Millions of deep, pe
Slide 8: Our clients' changing needs
OUR ENHANCED CAPABILITIES WILL DRIVE INCREMENTAL PROFIT GROWTH AS WE MEET OUR CLIENTS’ CHANGING NEEDS We are increasingly moving into partnership-based, stickier services – which will drive incremental profits Project Services HR Services Preferred MSP/RPO supplier ‘Spot’ arrangements recruitment OU
Slide 9: Growth through build-buy-partner
OUR GROWTH WILL LEVERAGE OUR EXISTING INFRASTRUCTURE, SUPPORTED BY A MIXTURE OF BUILD-BUY-PARTNER Our ambitious growth plans require: We will deliver this by: More leaders and capacity BUILD • Seeding and growing our own organic businesses • Broaden expertise via increased sub-specialisms e.g. withi
Slide 10: Our iconic brand is evolving to support our growth
OUR ICONIC BRAND IS EVOLVING TO SUPPORT OUR GROWTH Our brand has served us very well...but today we are much more than a recruiting business. We are helping thousands of organisations and millions of candidates prepare for their future. POSITIONING HAYS AS A LEADING HR SERVICES PARTNER, SOLVING THE
Slide 11: Conclusion: our investment case
CONCLUSION: OUR COMPELLING INVESTMENT CASE DESIGNED TO DELIVER EXCELLENT RETURNS TO SHAREHOLDERS We face many structural market opportunities presented by the new world of work Our markets are Stickier, more vast and offer We are market We have the financial diverse and higher We have the margin rev
Slide 12: Differentiating via great customer service
NAVIGATING THE NEW WORLD OF WORK Steve Weston Chief Customer Officer Steve joined Hays in January 2008 as Chief Information Officer and sits on the Executive Board. After working in DIFFERENTIATING INVESTOR DAY VIA GREAT Manufacturing and Financial Services, Steve moved into IT CUSTOMER SERVICE serv
Slide 13: Clients and candidates now require a partnering relationship
OUR CLIENTS & CANDIDATES NOW REQUIRE A PARTNERING RELATIONSHIP THAT CAN PROVIDE DEEP INSIGHTS & VALUE Transactional delivery partner Leadership partners A partner who drives my thinking forward in ways I could not have done alone A partner with deep expertise and best practice of today – and tomorro
Slide 14: Long-standing investment in data provides the platform for insights
OUR LONG-STANDING COMMITMENT & INVESTMENT IN DATA PROVIDES THE PLATFORM WE LEVERAGE TO GENERATE INSIGHTS FOR OUR CUSTOMERS Access to more and better data Convert data effectively into insights Drive real actions from insight CLICK LIKE TWEET REVIEW DOWNLOAD MILLIONS VIEW DATA OF NEW DATA POINTS QUAL
Slide 15: Talent Networks are a major competitive advantage
OUR TALENT NETWORKS ARE A MAJOR COMPETITIVE ADVANTAGE AND OFFER UNIQUE INSIGHTS & SOLUTIONS TO OUR CLIENTS Knowledge through scale Real-time data at a consultant’s fingertips giving them and their clients insights into the market as it stands today. Salaries, availability of candidates and jobs, lev
Slide 16: Evolution from databases to data-led Talent Networks
WE HAVE MADE A POWERFUL EVOLUTION FROM DATABASES TO DATA-LED TALENT NETWORKS & COMMUNITIES Knowledge through scale 2.7m Our Talent Networks are the Candidates in Talent ecosystem we’ve built to Networks dynamically and efficiently deliver the right candidates to our clients and the right opportuniti
Slide 17: Enriching Talent Networks via continuous engagement
WE ENRICH OUR TALENT NETWORKS VIA CONTINUOUS ENGAGEMENT, BUILDING LIFELONG PARTNERSHIPS WITH CANDIDATES Deep understanding Technical skills Our partnerships have enabled us to understand and respond to the needs of our candidates, offering them learning pathways with curated, on-demand Soft skills l
Slide 18: Redefining great customer service in our industry
WE ARE REDEFINING GREAT CUSTOMER SERVICE IN OUR INDUSTRY Customer insights at the heart of our vision Knowledge Deep Meaningful through scale understanding innovation Challenging and supporting business decisions with knowledge, expertise, data and insights. Talent networks, Researching and Industry
Slide 19: Structural growth opportunities in the enterprise client market
Matthew Dickason Global MD, Talent Solutions NAVIGATING Matt is the Global MD of our Talent Solutions business and sits on our Executive Board. He joined Hays in 2005, and has previously held positions as a Business Director in the UK and THE NEW Chief Operating Officer for Asia Pacific. Prior to jo
Slide 20: c.40% of Group fees are from enterprise clients
c.40% OF GROUP FEES ARE FROM ENTERPRISE CLIENTS WHERE WE BILL >£250K ANNUALLY WITHIN THIS, LONG-TERM OUTSOURCE CONTRACTS ARE c.£200M OF FEES What we mean by enterprise clients • >40% of Group net fees are from clients who spend over £250k per annum with Hays. This represents our top 400 clients • We
Slide 21: The global enterprise market is vast, with outsourced solutions growing at twice the market rate
THE GLOBAL ENTERPRISE MARKET IS VAST, WITH OUTSOURCED SOLUTIONS GROWING AT TWICE THE MARKET RATE Talent supply mismatch Value-added advisory services Demand Higher staff turnover for more Insights to inform strategy Wage inflation evolved services Consistency and visibility Increased focus on ESG No
Slide 22: Increased outsourcing of the market
INCREASED OUTSOURCING OF THE MARKET – PROVIDING OPPORTUNITY TO TAKE MARKET SHARE AND SUPPLY BROADER HR SERVICES Americas market Outsourced contingent* HR Services Market** spend distribution 32% Global Staffing Market 2026 Formalisation ‘74% in our strategic markets’ $110bn of global 58% Global MSP
Slide 23: Ten years building the leading specialist global enterprise business
WE HAVE SPENT TEN YEARS BUILDING THE LEADING SPECIALIST GLOBAL ENTERPRISE BUSINESS AND ARE UNIQUELY PLACED TO GROW We internationalised our Talent Solutions business in 2016 and Sources of new Global RPO/MSP net fees (£m) have doubled the number of long-term outsource customers outsource contracts 2
Slide 24: Global & diverse partnerships: customer success
GLOBAL & DIVERSE PARTNERSHIPS CUSTOMER SUCCESS “ combined strengths to deliver efficiency and transparency. “ We trust in their expertise and our “ Hays has been a long-term partner of CBA…their understanding of our “ organisation and values, their flexible, collaborative approach, and their ability
Slide 25: Expanded HR Services driving deeper partnerships
INCREASED DEMAND & CAPABILITY IN EXPANDED HR SERVICES DRIVING DEEPER & BROADER PARTNERSHIPS Hays’ HR Services offerings Equity, Diversity & Inclusion Assessment & Development EVP & Employer Brand People Process Technology Analytics & Insight Change Management Early Careers Skill & Reskill Tech Advic
Slide 26: Enterprise client strategy in Germany
BRINGING OUR ENTERPRISE CLIENT STRATEGY TO LIFE HOW WE INCREASED CUSTOMER SATISFACTION, MARKET SHARE AND FEES IN GERMANY Office Centralised approach Shared service centre Hamburg Innovation Berlin C-level engagement Hanover Münster Essen Dortmund Düsseldorf Leipzig Dresden Cologne Bonn Frankfurt Gre
Slide 27: Deepening customer partnerships
WE HAVE BUILT THE LEADING GLOBAL ENTERPRISE BUSINESS AND ASPIRE TO DOUBLE OUR OUTSOURCED SCALE OVER FIVE YEARS Opportunity Scalable & flexible Goal Structured recruitment Resilient services that address Investment in Take market share larger client people capability, Through change and and double th
Slide 28: Delivering £500m & beyond in Technology fees
James Milligan NAVIGATING Global Head of Technology THE NEW James joined Hays in 2000 and is the Global Head of Hays Technology recruitment. Having previously been Head of Technology for the UK&I and EMEA, he is responsible WORLD OF for the strategic development of Hays’ Technology businesses global
Slide 29: The global tech market is vast and growing faster than the job market
THE GLOBAL TECH MARKET IS VAST, HAS BEEN GROWING 4X FASTER THAN THE BROADER JOB MARKET OVER 20 YEARS & IS EXPECTED TO GROW STRONGLY IN THE FUTURE Global market revenue* US Employment growth versus 2000 (indexed to 100) Global Technology jobs (m) WE ARE A GLOBAL LEADER IN A MARKET THAT HAS VIRTUALLY
Slide 30: Diverse, scalable model with Technology fees growing at nearly twice market rate
WE HAVE A DIVERSE & HIGHLY SCALABLE MODEL AND HAVE GROWN OUR TECHNOLOGY FEES AT NEARLY TWICE THE MARKET RATE Hays Technology net fees* (£m) Hays Technology net fee CAGR** by sub-region FY15-22 Group CAGR: 9.2% Overall market: c.5%*** ON-TRACK TO DELIVER £500M IN TECHNOLOGY FEES BY FY27 * Net fees an
Slide 31: Highly diversified market with massive talent demand
THE MARKET IS HIGHLY DIVERSIFIED, WITH MASSIVE TALENT DEMAND, PARTICULARLY IN KEY HIGH-GROWTH TECHNOLOGIES Size of talent pool versus expected job vacancy growth SKILL SHORTAGES ARE EXPECTED TO INTENSIFY WITH VACANCIES SET TO GROW SIGNIFICANTLY OVER THE NEXT 5 YEARS Source: LinkedIn, Allied Market R
Slide 32: Five strategies underpin £500m Technology fees by FY27
FIVE INTER-RELATED STRATEGIES UNDERPIN OUR ASPIRATION TO DELIVER £500M IN TECHNOLOGY FEES BY FY27 PILLAR 1 PILLAR 2 PILLAR 3 PILLAR 4 PILLAR 5 Grow fees in our Invest to expand Expand into new, Win new clients Grow our core Tech sub- Hays’ Tech structurally and deepen our Technology specialisms, cap
Slide 33: Opportunity to build on market-leading position in core technologies
PILLAR 1 PILLAR 2 PILLAR 3 PILLAR 4 PILLAR 5 OPPORTUNITY TO BUILD ON OUR MARKET-LEADING POSITION IN CORE TECHNOLOGIES, AND RAPIDLY ROLL OUT NEW HIGH-GROWTH BUSINESSES AND PROJECT SERVICES Sub-specialism coverage by geography Core Scaling Greenfield 2022 2027e Switzerland Switzerland Countries Countr
Slide 34: Case study 1: leading cyber security recruitment business
PILLAR 3 CASE STUDY 1: WE HAVE BUILT A LEADING CYBER SECURITY RECRUITMENT BUSINESS IN THE USA AND ARE RAPIDLY ROLLING THIS OUT GLOBALLY Global Cyber market overview Hays Cyber net fees (£m) Forecast 2027 total global c.$300bn spend in Cyber (2022-27 CAGR: 14.5%) USA Global 1.1m Current cyber 4.2m se
Slide 35: Case study 2: Salesforce market growth opportunities
PILLAR 3 CASE STUDY 2: WE SEE MAJOR GROWTH OPPORTUNITIES IN THE GLOBAL SALESFORCE MARKET Global Salesforce market overview Hays Salesforce net fees (£m) Forecast 2027 total global c.$850bn spend in Salesforce (2022-27 CAGR: 17.2%) USA Global 1.7m Salesforce 5.8m workforce i.e. workforce people peopl
Slide 36: Pipeline of existing and future high-growth technology businesses
PILLAR 3 A PIPELINE OF EXISTING & FUTURE HIGH-GROWTH TECHNOLOGY BUSINESSES, EACH WITH THE POTENTIAL TO BECOME MAJOR MARKETS Robotic process Data science Cloud Metaverse automation/AI By 2026, the demand for North America owns 40% of 30,000+ live jobs on The Metaverse market in skilled and knowledgea
Slide 37: Building global client relationships via Technology services
PILLAR 4 PILLAR 5 SIGNIFICANT OPPORTUNITIES TO BUILD GLOBAL CLIENT RELATIONSHIPS BY GROWING OUR TECHNOLOGY SERVICES Our strategy is to become more embedded with a greater number of clients by providing increasingly diverse value-added services… Project & Service delivery Talent creation via reskilli
Slide 38: Case study 3: Project Services in Technology
PILLAR 5 CASE STUDY 3: MOVING UP THE VALUE CHAIN – PROJECT SERVICES IN TECHNOLOGY Hays’ Project Services strategy Hays Technology Project Services net fees (£m) Global Technology Project Revenue: c.$400bn Services market (2022-27 CAGR: c.9%) Hays’ target project size Revenue: $1-5m Hays’ initial tar
Slide 39: Talent Networks are a major and growing competitive advantage
HAYS TALENT NETWORKS ARE A MAJOR & GROWING COMPETITIVE ADVANTAGE ACCESS TO TALENT WILL BE THE DEFINING FEATURE OF THE NEXT FIVE YEARS Infrastructure Integrated network of offices, hubs, nearshore and offshore capability Brand We have established Hays Technology as the leading global brand Scale Leve
Slide 40: Clear strategy to fees of £500 million by FY27
OUR CLEAR STRATEGY PUTS US FIRMLY ON THE PATH TO FEES OF £500 MILLION BY FY27 WITH LIMITLESS GROWTH POTENTIAL BEYOND Aspiration for progress of Hays Technology fees (£m) Hays’ advantages Deepest and most engaged Talent Networks Diverse client base, across size, contract type and market Market expert
Slide 41: Doubling our profit in Germany
Dirk Hahn NAVIGATING CEO, Germany & EMEA THE NEW Dirk began his career at Ascena in 1997, which was acquired by Hays in 2003. Dirk joined the Hays Germany Board as COO in 2008, and the Group’s Executive Board in 2018. WORLD OF He was appointed CEO of Hays in the DACH and Nordics region in 2020, and
Slide 42: Excellent organic growth track record in Germany
EXCELLENT ORGANIC GROWTH TRACK RECORD IN A STRUCTURALLY GROWING MARKET FY22 WILL BE A RECORD FEE PERFORMANCE, WITH ALL-TIME RECORD CONTRACTOR VOLUMES 42
Slide 43: Track record of diversifying our business
A SUCCESSFUL TRACK RECORD OF DIVERSIFYING OUR BUSINESS Net fees (€m) Technology Accountancy & Finance Engineering Other specialisms 43
Slide 44: Leading positions across all contract types
LEADING POSITIONS ACROSS ALL CONTRACT TYPES IN A STRUCTURALLY GROWING MARKET Permanent (14% of fees) Temporary (25% of fees) Contracting (61% of fees) FY22E fees c.€50m c.€90m c.€220m German market size c.34m Perm employees 800k-900k temporary workers c.1.4m freelancers Hays market focus 250,000-300
Slide 45: Clear leader in the large contracting market
A CLEAR LEADER IN THE LARGE & RAPIDLY GROWING CONTRACTING MARKET Germany contracting revenue (2021, €m) Germany market overview 932 Hays is as big as the Estimated German Contracting €20 billion next five competitors market annual revenue: combined Germany contracting market growth forecasts 357 For
Slide 46: Clear strategy for growth
WE HAVE A CLEAR STRATEGY FOR GROWTH Building on our track record of strong fee and profit growth Our restructure in FY19 established a dedicated Enterprise division, focused on winning new clients and leveraging Enterprise clients our existing strategic client base SME market Our regional structure
Slide 47: Material and varied growth opportunities
MATERIAL AND VARIED GROWTH OPPORTUNITIES Selected industries Market opportunity Banking Cyber and digitalisation driving structural growth; sector consolidation driving change projects IT Service companies Powerful outsourcing trends in Technology Life Sciences Lifestyle, ageing population and the p
Slide 48: Leading brand and candidate experience attract talent
OUR LEADING BRAND & EXCELLENT CANDIDATE EXPERIENCE DRIVES THE ATTRACTION OF BEST-IN-CLASS TALENT Candidates are the key resource… …and we have many ways to attract talent • Our strong brand means we source Strong brand >1,500 high quality candidates each • The Hays website is the most visited websit
Slide 49: Conclusion: aspire to double profits by FY27
CONCLUSION: WE ASPIRE TO DOUBLE OUR PROFITS BY FY27 Hays Germany is the market-leading, highly profitable, tech-enabled, white-collar recruitment business Highly scalable Most experienced Addressing the sweet We are broadening business model Brand reputation management team spots of the market, our
Slide 50: Significant opportunities in ANZ
NAVIGATING THE NEW WORLD OF WORK Nick Deligiannis MD, Australia & New Zealand Nick joined Hays in 1993 and has held a variety of consulting and management roles across the business, including Director in Victoria, South Australia, Tasmania and the Northern Territory. In 2004, Nick was appointed to H
Slide 51: Clear leaders in an attractive recruitment market
WE ARE CLEAR LEADERS IN AN ATTRACTIVE RECRUITMENT MARKET & ECONOMY Australian market overview Hays ANZ – H1 FY22 overview Estimated Australian staffing market Conversion Rate c.27% Market-leading profitability annual revenue: AUD $29 billion Consultants 1,101 c.3x our closest competitor Fragmented m
Slide 52: Post-pandemic fee recovery on track for second-highest year
THE SHARP POST-PANDEMIC FEE RECOVERY PUTS US ON TRACK FOR OUR SECOND- HIGHEST YEAR EVER Net fees (AUD, $m) Key advantages Success drivers Unrivalled scale and leading • Experienced management brand team, with strong track record of delivering growth Geographical coverage • Focus on high productivity
Slide 53: Leveraging skill-short market and strong client base
LEVERAGING A SKILL-SHORT MARKET AND STRONG CLIENT BASE TO DRIVE PROFITABLE GROWTH Driving Temp margin and Capitalising on our unrivalled Multi-channel delivery Driving Perm growth volume growth client base models Benefitting from: Fuelled by: Characterised by: Structured to: • Increased job churn an
Slide 54: Targeted investment in structural growth markets
TARGETED INVESTMENT IN STRUCTURAL GROWTH MARKETS Selected Headcount Net fee growth specialisms growth Market context Focus areas (% Hays ANZ Versus pre- H1 FY22 fees H1 FY22) H1 FY22 Covid levels (YoY) • Software Development • Demand driven by digitalisation across large • Data & Advanced Analytics
Slide 55: Hays ANZ: aspiring to AUD $500m by FY27
HAYS ANZ: SIGNIFICANT AMBITIONS – ASPIRING TO DELIVER RECORD FEES IN FY23 & AUD $500M BY FY27 Very confident we can get On track in FY22 to deliver our We have an ambitious beyond prior fee peaks, 2nd best year of net fees, and accelerating growth mindset to driven by structurally are aspiring to hi
Slide 56: Significant opportunities in UK&I
NAVIGATING THE NEW WORLD OF WORK Simon Winfield MD, UK & Ireland Simon joined Hays in 2006, having commenced his recruitment career in 1993. He ran our businesses in Western SIGNIFICANT INVESTOR DAYOPPORTUNITIES Australia and Northern Territory, before relocating to the UK in IN UK&I 2014 where he w
Slide 57: Leaders in an attractive, skill-short recruitment market
WE ARE LEADERS IN AN ATTRACTIVE, SKILL-SHORT RECRUITMENT MARKET UK&I market overview Hays UK&I – H1 FY22 overview Estimated UK staffing market annual Conversion Rate 14% Market-leading profit levels revenue: £38 billion c.1.5x the next largest specialist competitor (Q3 Consultants 2,036 FY22) Fragme
Slide 58: Strong post-pandemic rebound in fees and profit
STRONG POST-PANDEMIC REBOUND, WITH PERIODIC FEES & PROFIT NOW BACK TO POST- GFC PEAK LEVELS Net fees (£m) Key advantages Success drivers Unrivalled scale and leading • Net fees and profit periodic brand run-rate now back to post- GFC peak levels Geographical coverage • Productivity at its highest Ma
Slide 59: Key strategic priorities
KEY STRATEGIC PRIORITIES Accelerated investment in Broaden our range of State-of-the-art technology Putting People & Culture at structural growth markets products and services and tools the heart of the business Fuelled by: Driven by: Characterised by: Anchored by: • Increased sub-specialism • Scale
Slide 60: Targeted investment in structural growth markets
TARGETED INVESTMENT IN STRUCTURAL GROWTH MARKETS Selected Headcount Net fee growth specialisms growth Market context Focus areas (% Hays UK&I H1 FY22 Versus pre- H1 FY22 fees H1 FY22) (YoY) Covid levels (YoY) • Ten sub-specialisms, including Salesforce, • Huge skill shortages across traditional tech
Slide 61: Hays UK&I: strategy levers for long-term growth
HAYS UK&I: OUR STRATEGY HAS MANY LEVERS TO DELIVER LONG-TERM GROWTH Reinforce Our people & our market Exciting new Drive Remapped Scaling culture leadership in markets increased customer products and Skills acquisition; core sectors Technology, consultant journey services enhanced Green economy, pro
Slide 62: Capitalising on opportunities through our people
NAVIGATING THE NEW WORLD OF WORK Sandra Henke Group Head of People & Culture Sandra is Global Head of People and Culture at Hays PLC CAPITALISING INVESTOR DAY ON and is a member of the global Executive board. She firmly OPPORTUNITIES THROUGH believes people are at the heart of the business, and over
Slide 63: World of work changing at unprecedented pace
THE WORLD OF WORK IS CHANGING AT AN UNPRECEDENTED PACE CREATING MORE OPPORTUNITIES THAN EVER BEFORE Building the right capacity and developing the right capability We are building enhanced skillsets We are committed to and nurturing our Our customers have being a true leadership culture to deliver:
Slide 64: Enabling our people to deliver market solutions
ENABLING OUR PEOPLE TO DELIVER MARKET SOLUTIONS TO OUR CUSTOMERS 1 2 3 Enhancing our Putting ED&I at the Evolving our Employee leadership capability centre of our culture Value Proposition (EVP) 64
Slide 65: Investing in our leadership capability
1. Enhancing our leadership capability WE INVEST IN OUR LEADERSHIP CAPABILITY – ENABLING THEM TO DRIVE TODAY’S BUSINESS AND BUILD THE BUSINESSES OF TOMORROW Our focus areas have helped to evolve leadership quality and behaviours Skills, mindsets and behaviours Impact More shared and inclusive leader
Slide 66: Leadership programme equipping current and future leaders
1. Enhancing our leadership capability OUR LEADERSHIP PROGRAMME HAS BEEN TRANSFORMATIONAL IN EQUIPPING OUR CURRENT & FUTURE LEADERS WITH THE SKILLS NEEDED TO DRIVE CHANGE International Leadership & Management Programme (ILMP) Senior Leadership 120 550 1000+ 800+ Business Future “Thinking “Leading &
Slide 67: Equity, Diversity & Inclusion: unleashing the potential of all our talent
2. Putting ED&I at the centre of our culture EQUITY, DIVERSITY & INCLUSION UNLEASHING THE POTENTIAL OF ALL OUR TALENT Our commitment EXAMPLES OF ED&I IN ACTION • Established global gender targets - 50% of top 550 roles Gender Targets Advisory Group (GTAG) driving women in senior leadership workstrea
Slide 68: Enhancing our compelling Employee Value Proposition
3. Evolving our Employee Value Proposition (EVP) ENHANCING OUR COMPELLING EMPLOYEE VALUE PROPOSITION We are proud of the culture we have nurtured and The strength of our EVP has been identified and developed, and how it frames the success of our business recognised externally as well as internally “
Slide 69: Hiring capability driven by strength of our EVP
3. Evolving our Employee Value Proposition (EVP) THE STRENGTH OF OUR HIRING CAPABILITY IS DRIVEN BY THE STRENGTH OF OUR EVP We purposefully recruit our talent from three distinct sources Entry level Experienced joiners Alumni Our strong and unique culture – our ‘Hays Spirit’ – is the cornerstone of
Slide 70: Purpose and core values underpin commitment to ESG
OUR PURPOSE & CORE VALUES UNDERPIN OUR DEEP COMMITMENT TO ESG, & SUPPORTS OUR CULTURE Hays demonstrates its commitment to being a purpose-led organisation… e Hays Net zero Social ED&I value Training Helps journey At least one Our ED&I promise Our commitment to Putting back into the Hays MyLearning v
Slide 71: Strong employee engagement scores
OUR ACTIONS ARE REFLECTED IN OUR STRONG EMPLOYEE ENGAGEMENT SCORES Employee “People of all engagement (%) backgrounds have an equal opportunity to succeed at Hays” (%) “Hays has a positive “Hays supports impact on society” flexible working (%) practices” (%) “I can see that Hays is 80% “I would reco
Slide 72: Conclusion: enabling the organisation through people and culture
CONCLUSION: ENABLING THE ORGANISATION THROUGH OUR PEOPLE & OUR CULTURE Our people and culture strategy centres around putting customers at the heart Increased Strong social Valuable diverse World-class training leadership Market-leading purpose and inclusive and career capability tools, technology c
Slide 73: Financial aspirations to FY27
NAVIGATING THE NEW WORLD OF WORK James Hilton Group Finance Director (Designate) Before joining Hays in 2008, James qualified as a Chartered Accountant with KPMG and spent three years at Dresdner Kleinwort in their Corporate Finance division. His career at Hays has included the following positions:
Slide 74: Financial aspirations: objectives for today
FINANCIAL ASPIRATIONS: OBJECTIVES FOR TODAY Net fee growth to FY27 Conversion rate by FY27 Cash conversion Financial aspirations Explain how our Translate our FY22-27 Set out the actions we continuing dedicated Set out the financial strategic growth will take to drive our focus on cash will drive me
Slide 75: Growth ambitions for the next five years
WE HAVE SET OUT OUR GROWTH AMBITIONS FOR THE NEXT FIVE YEARS Our FY27 ambitions* Technology Germany UK&I ANZ Outsourced Solutions £500m+ Double profits £350m AUD $500m Double net fees to €200m** net fees net fees net fees to £400m WE SEE SIGNIFICANT STRUCTURAL OPPORTUNITIES FOR LONG-TERM GROWTH * Fo
Slide 76: Ambitions translate to net fee growth aspirations
ASSUMING A SUPPORTIVE ECONOMIC BACKDROP, OUR AMBITIONS TRANSLATE TO SIGNIFICANT NET FEE GROWTH ASPIRATIONS OVER THE NEXT FIVE YEARS FY15-22 net fee track record and FY22-FY27 net fee growth aspirations* GROUP NET FEE CAGR ASPIRATION OF 6-10% OVER THE FIVE YEARS TO FY27 * Historical net fees by speci
Slide 77: Aspirations based on a supportive economic backdrop
OUR ASPIRATIONS ARE BASED ON A SUPPORTIVE ECONOMIC BACKDROP Overall macro-economic assumptions GDP growth forecasts (% per annum) • We assume a benign economic backdrop, with GDP 2021A 2022F 2023F 2027F growth consistent with latest IMF forecasts Australia 4.7 4.2 2.5 2.6 • We anticipate regular min
Slide 78: Driving conversion rate back to and beyond pre-pandemic levels
DRIVING CONVERSION RATE BACK TO & BEYOND PRE-PANDEMIC LEVELS Drive consultant productivity Be a net winner from inflation Continued focus on cost management and back-office automation c.2,000 consultants 1. Leverage investment Wage inflation 1. Higher average perm fee Initiative Development Saving p
Slide 79: Excellent track record of cash generation through growth cycles
EXCELLENT TRACK RECORD OF CASH GENERATION THROUGH GROWTH CYCLES Five-year conversion of cumulative operating profit to free cash flow (FY15-19) • Disciplined approach to cash, with industry- leading DSOs at 35 days, which we expect to normalise to 36 days over the next two years • Forecast growth in
Slide 80: Significant cash generation and returns to shareholders
OUR FIVE-YEAR ASPIRATIONS HAVE POTENTIAL FOR SIGNIFICANT CASH GENERATION & RETURNS TO SHAREHOLDERS Our priorities for uses of free cash flow 1. Deliver substantial net fee growth Fund Group • Invest in headcount, training, systems and brand to investment & support organic growth development • Assess
Slide 81: Five-year ambition to grow business and generate shareholder value
OUR FIVE-YEAR AMBITION TO MATERIALLY GROW OUR BUSINESS AND GENERATE SIGNIFICANT SHAREHOLDER VALUE Net fee growth to FY27 Conversion rate by FY27 Cash conversion Delivering shareholder value Aspiration CAGR Aspiration range* Aspiration rate Aspiration to: Group: 22-25% 90%+ Double profits 6-10% Techn
Slide 82: Summary & Conclusions
NAVIGATING THE NEW WORLD OF Paul Venables WORK Group Finance Director A Chartered Accountant, Paul started his career at Deloitte. This was followed by 13 years at Exel plc, where he held several senior finance and operational roles, including Deputy Group FD and Executive Board member. Paul was app
Slide 83: Conclusions: Hays sits at the heart of thousands of organisations
CONCLUSIONS: HAYS SITS AT THE HEART OF THOUSANDS OF ORGANISATIONS, LARGE & SMALL, HELPING DELIVER THE SKILLED WORKFORCES OF TOMORROW We face many structural market opportunities presented by the new world of work Our markets are Stickier, more diverse vast and offer We are market We have the financi
Slide 84: Questions & Answers
NAVIGATING THE NEW WORLD OF WORK INVESTOR DAY QUESTIONS & ANSWERS 28 April 2022