Slide 1: 2024 Half-Year Results
2024 Half-Year Results Thursday 1 August 2024 Global Talent Solutions
Slide 2: Key messages
Key messages 1 Market conditions impacted H1 financial performance: volume driven, whilst average fees remain strong - underlining value of service to clients 2 2024 is not a lost year: taking right actions for clients, candidates and stakeholders in managing cost base and pursuing operational excel
Slide 3: Group financial summary
Group financial summary • 14%* reduction in group NFI, £m unless otherwise stated 1H24 1H23 % Chg % CC reflective of global hiring markets Chg Net fee income 166.1 202.3 (18%) (14%)* • FX impact from Sterling Operating costs (165.9) (191.1) (13%) (9%)* strengthening (1H24: £1 = ¥192, 1H23: Operating
Slide 4: Group trading review: Asia-Pacific & Europe
Group trading review: Asia-Pacific & Europe Asia-Pacific NFI mix (SPR1) Asia-Pacific total H1 2024 1,894 headcount Asia-Pacific1 1,632 14% 27% • NFI down 10%* in both perm and temp - volume driven, average fees stable • Japan strong (+2%*), Greater China (-8%*) more 72% resilient whilst ANZ (-21%*)
Slide 5: Group trading review: UK & Rest of World
Group trading review: UK & Rest of World UK NFI mix (SPR1) UK1 H1 2024 UK total headcount 986 26% 902 8% • NFI down 20% - volume driven, average fees up driven by mix • Momentum in London (-16%) improved across the 74% half, regions (-25%) softer 1H23 1H24 NB UK headcount includes central corporate
Slide 6: Group trading review: Recruitment outsourcing
Group trading review: Recruitment outsourcing Recruitment outsourcing Recruitment outsourcing NFI mix by geography H1 2024 • NFI down 23%* - driven by lower volume hiring requirements 17% 25% • Workforce Consultancy continues to perform strongly 1 Recruitment process outsourcing: 2% volume perm hiri
Slide 7: Group operating costs: tightly managed
Group operating costs: tightly managed Group headcount Q3 2022 – Q2 2024 Group operating cost bridge 18% reduction H1 2023 – H1 2024 £m 4,403 4,267 4,356 4,280 4,200 3,980 3,812 3,625 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 • Period end headcount down 15% year-on-year, and down 18% since peak • Head
Slide 8: Group cash flow: net cash position remains strong
Group cash flow: net cash position remains strong Group cashflow H1 2024 £m • Trading performance drives lower operating cash flows • £9m working capital outflow, reflecting usual H1 working capital cycle • Lower capex – reduced spend on office estate • Balance sheet remains strong with period end n
Slide 9: Current conditions: re-based relative to peak, but stabilising
Current conditions: re-based relative to peak, but stabilising …whilst candidates’ inclination to move jobs has also Labour demand has fallen relative to peak… fallen relative to peak… UK job vacancies (re-based) US total (non-farm) job ‘quits’ rate 3m ending Jan 2020 = 100 Source: Job Openings and
Slide 10: Doing the basics brilliantly: specialist professional recruitment
Doing the basics brilliantly: specialist professional recruitment 1 Job qualification: assessing client motivation Candidate assessment and commitment: e.g. increasing visibility earlier of client and candidate 2 expectations on time in office v. remote 3 Staying close to clients and candidates: qua
Slide 11: Medium-term plan: disciplined entrepreneurialism
Medium-term plan: disciplined entrepreneurialism 1 People: differentiating on the quality of our service Geographical penetration: scaling within existing markets 2 3 Tech-enabled fee earner productivity and people efficiency 4 Winning as one Robert Walters Robert Walters plc - 2024 Half-Year Result
Slide 12: People: differentiating on the quality of our service
People: differentiating on the quality of our service Experienced senior team with recent key Accelerating people leadership… additions… CEO – Recruitment 12 Chief Customer Officer 20 ACE: authenticity, care, entrepreneurial 1 mindset Chief People Officer 8 Chief Technology & 6 Transformation Office
Slide 13: Geographical penetration: scaling within our existing markets
Geographical penetration: scaling within our existing markets Geographical penetration in action: Japan Scaling: using our know how Right leaders: instill a high- 1 performance culture 70+ teams Sustaining performance: good 2 succession planning Tokyo Country markets mix by number of fee Osaka earne
Slide 14: Fee earner productivity and people efficiency
Fee earner productivity and people efficiency Data-driven decision-making… Non-fee earners: best operating model Fee earner productivity1: Q2 2024 v. Q2 2022 86% 88% 81% 73% 70% 70% 60% Existing global service centre locations: Florida, USA Manchester, UK North-East ANZ Greater South-East Europe UK
Slide 15: Technology
Technology *Mock data for illustrative purposes only AI use case: job-advert writing • Ad drafting, social media posts, tailored • Went live in UK, Ireland and South Africa during outreach e-mails, language translation H1 • 60% of markets now on Zenith 25 minutes Average time saving seen v. non-AI e
Slide 16: Winning as one Robert Walters: the story so far
Winning as one Robert Walters: the story so far Client talent requirements and candidate One talent solutions business, three core service expectations are evolving rapidly… lines… Gen Z 1 Specialist professional recruitment: permanent and temporary • 23% of the workforce will be Gen Z in 2024 • 57%
Slide 17: Winning as one Robert Walters: our goal
Winning as one Robert Walters: our goal Broadly balanced fee income in UK, with recruitment fee earners well-placed to support Growing share of wallet… outsourcing offering… Client awareness of services offered UK total fee income mix June 2024 H1 2024 Source: Robert Walters ‘voice of client’ survey
Slide 18: Conclusion
Conclusion 1 Market conditions challenging, but 2024 not a lost year: actions taken to manage cost base and pursue operational excellence to serve clients, candidates and wider stakeholders High conviction in actions to further strengthen the business through 2 disciplined entrepreneurialism: people
Slide 19: Appendix
Appendix Robert Walters plc - 2024 Half-Year Results | 19
Slide 20: Guidance
Guidance 1 Current trading unchanged from 2Q24 update Group net fee income 202 £m £36m reduction in fee income, of Good progress made on H1 cost reduction – around two- 2 which c.£25m thirds of year-on-year fee income impact mitigated 166 mitigated through cost actions Further progress on cost reduc
Slide 21: Group net fee income summary
Group net fee income summary Group net fee income CC* Six months ended 30 June 2024 2023 Chg. Chg. £m unless otherwise stated Spec. professional recruitment 139.6 167.6 (17%) (12%) Of which permanent 91.8 112.9 (19%) (14%) Of which temporary 46.8 53.9 (13%) (9%) Perm % mix 66% 67% -1 pp n/a Temp % m
Slide 22: Asia-Pacific: H1 summary
Asia-Pacific: H1 summary Six months ended 30 June 2024 2023 Chg. CC* Chg. £m unless otherwise stated Net fee income 70.0 87.2 (20%) (13%) Specialist professional recruitment 63.3 77.1 (18%) (10%) Recruitment outsourcing 6.7 10.1 (33%) (30%) Spec. professional recruitment Perm % mix 72% 72% - n/a Spe
Slide 23: Europe: H1 summary
Europe: H1 summary Six months ended 30 June 2024 2023 Chg. CC* Chg. £m unless otherwise stated Net fee income 56.5 66.5 (15%) (13%) Specialist professional recruitment 56.0 65.7 (15%) (13%) Recruitment outsourcing 0.5 0.8 (44%) (45%) Spec. professional recruitment Perm % mix 53% 56% (3) pp Spec. pro
Slide 24: UK: H1 summary
UK: H1 summary Six months ended 30 June 2024 2023 Chg. £m unless otherwise stated Net fee income 26.3 32.3 (18%) Specialist professional recruitment 11.4 14.4 (20%) Recruitment outsourcing 14.9 17.9 (17%) Spec. professional recruitment Perm % mix 74% 75% (1) pp Spec. professional recruitment Temp %
Slide 25: Rest of World: H1 summary
Rest of World: H1 summary Six months ended 30 June 2024 2023 Chg. CC* Chg. £m unless otherwise stated Net fee income 13.3 16.3 (18%) (15%) Specialist professional recruitment 8.9 10.3 (14%) (9%) Recruitment outsourcing 4.4 6.0 (26%) (24%) Spec. professional recruitment Perm % mix 98% 100% (2) pp Spe