Slide 1: Investor Presentation
Investor Presentation August 2023
Slide 2: Forward-looking statements
Within this presentation, we make “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to expectations concerning matters that are not historical facts. Suc
Slide 3: Company Overview
Company Overview. ▪ Nasdaq Ticker: RGP ▪ Global footprint across North America, Europe and Asia Pacific ▪ Big Four heritage, brought agility to professional services in the late 90s ▪ Premier global consulting firm powering clients’ operational needs and change initiatives ▪ Compelling professional
Slide 4: © 2023 Resources Connection, Inc
© 2023 Resources Connection, Inc 4
Slide 5: Investment Highlights
Investment Highlights. ▪ Emerging leader in a rapidly shifting employment paradigm and “Project Economy” positioned for significant and sustained growth ▪ Secular macro trends driving both supply and demand curves at unprecedented rates strongly favor RGP’s business model ▪ Fast-growing digital tran
Slide 6: By the Numbers
By the Numbers. 2,000 2,000 4,100 clients MSAs globally $776M borderless employees (Billable consultants* and management personnel) * Not all are full-time equivalents FY23 Revenue 87% 77% 4-Year average of Fortune 100 of Fortune 500 consultant tenure 40.4% FY23 80% retention rate of Gross Margin 32
Slide 7: Our Business Model is Organically Diverse and Inclusive
Our Business Model is Organically Diverse and Inclusive. Racially/Ethnically Diverse or Women 68% 100% 40% of our US of our of our employees* executive directors *As of May 31, 2023 leadership team Paradigm for Parity Coalition Company © 2023 Resources Connection, Inc 7
Slide 8: We have been Working this Way Since '99
We have been Working this Way Since ’99. In a world where the talent market is tighter than ever and the pace of change is at an all-time high, 71% RGP is positioned to win. Human capital and We have entered a new employment paradigm. C-suite leaders plan Knowledge workers are going gig and projects
Slide 9: Enabling Agility for The Project Economy
Enabling Agility for The Project Economy. We support project needs Run this Place Change this place Operational Needs Transformational Needs • Supporting clients’ operational needs • Leading and supporting complex change initiatives and filling gaps to help clients maintain with a Sleeves Up ethos o
Slide 10: Expert Project Consulting Bolstered by High-End On-Demand Talent
Expert Project Consulting Bolstered by High-End On-Demand Talent. Project Consulting On-Demand Talent 62% of Revenue * 34% of Revenue * We partner with you to deliver value and impact, Tapping into our agile talent pool, we mobilize the right bringing our depth of experience and “sleeves up” resourc
Slide 11: Our Portfolio of Brands
Our Portfolio of Brands. A global consulting firm focused on project execution with experienced and diverse talent Digitally obsessed, human-centered problem solvers transforming business for the modern world Digital platform that matches mid-level Finance & Accounting professionals with project wor
Slide 12: HUGO: The Future of Professional Staffing
Digital Engagement. Key Differentiators. Paradigm Platform Designed to challenge the status quo, through delightful design coupled with empowering The Future of transparency and control. Professional Staffing. Our first-to-market self-service digital Empowering and Rewarding staffing platform is des
Slide 13: Enterprise Growth Drivers
Brand Clarity + Bring clarity and focus to our brand architecture and brand positioning to own Amplification the opportunity around project execution Continue to grow and expand strategic Enterprise Go-To-Market account and industry programs, improve pricing, digitize and optimize the Operations Gro
Slide 14: Financial Overview
Financial Overview. Revenue Growth Gross Margin (GM) EBITDA Performance Resilient revenue trend in FY23, Industry-leading GM of 40.4% in FY23 Adjusted EBITDA Margin* of 12.9% in despite softening in the FY23 macroeconomic environment Maintaining strong bill-pay ratio in a highly tight labor market F
Slide 15: Financial Highlights
Financial Highlights. Results of Operations ($ in thousands) FY2020 FY2021 FY2022 FY2023 Revenue $ 703,353 $ 629,516 $ 805,018 $775,643 Revenue Growth Rate (3.5%) (10.5%) 27.9% (3.6%) Gross Margin 39.2% 38.3% 39.3% 40.4% Adjusted SG&A Percentage (1) 30.7% 30.2% 26.6% 27.5% Adjusted EBITDA (2) $ 59,8
Slide 16: Financial Highlights: Balance Sheet
Financial Highlights. Balance Sheet ($ in thousands) FY2020 FY2021 FY2022 FY2023 Cash $ 95,624 $ 74,391 $ 104,224 $116,784 Current Assets $ 230,999 $ 235,265 $ 308,541 $264,066 Total Assets $ 529,181 $ 520,644 $ 581,473 $531,999 Current Liabilities $ 94,901 $ 100,906 $ 124,322 $97,084 Long-term Debt
Slide 17: Strong Cash Flow Generation
Strong Cash Flow Generation. ($ in millions) FY2021 FY2022 FY2023 $100 180% 162% Normalized Free Cash Flow *(in Millions) Cash from $90 160% Normalized Free Cash Flow Conversion* operating activities $ 39.9 $ 49.4 $ 81.6 $77 $80 140% $71 Less: Capital expenditures $ (3.8) $ (3.0) $ (2.0) $70 120% (F
Slide 18: Capital Allocation Framework
Investment in Growth Strategically allocate capital to organic investments and targeted M&A that drive long- Capital term value for our stockholders. Allocation Framework. Debt Repayment Strong free cash flow supports borrowing capacity RGP generates strong operating cash flow and allocates capital
Slide 19: Focused on Creating and Unlocking Stockholder Value
Focused on Creating and Unlocking Stockholder Value. RGP delivers competitive returns to its stockholders. 3% Industry Leading Dividend Yield $70M Share Repurchases* $89M Dividends* 10 Years Consistent Dividend Return *over the last 5 years Note: share count as of 6/18/2023 is 33,672,931 © 2023 Reso
Slide 20: Thank You
RGP Dare to Work Differently~ Thank You
Slide 21: Appendix
| Appendix
Slide 22: Reconciliations of non-GAAP measures
Reconciliations of non-GAAP measures. © 2023 Resources Connection, Inc 22
Slide 23: Reconciliations of non-GAAP measures
Reconciliations of non-GAAP measures. © 2023 Resources Connection, Inc 23
Slide 24: Reconciliations of non-GAAP measures
Reconciliations of non-GAAP measures. © 2023 Resources Connection, Inc 24