Slide 1: 1st quarter results 2012
1st quarter results 2012 Q1 2012: revenue holding up revenue up 12% and diluted earnings per share up 3% Robert-Jan van de Kraats, CFO Randstad Holding nv April 26, 2012
Slide 2: Disclaimer & definitions
disclaimer & definitions Certain statements in this document concern prognoses about the future financial condition, risks, investment plans and the results of operations of Randstad Holding and its operating companies as well as certain plans and objectives. Obviously, such prognoses involve risks
Slide 3: Agenda
agenda • performance • financial results & outlook • Q&A 3 April 26, 2012 first quarter results 2012
Slide 4: Performance
performance 4 April 26, 2012 first quarter results 2012
Slide 5: Diverging trends continue
diverging trends continue quarterly market growth (YoY) 40% • growth in European markets 30% has continued slowing down 20% 10% • North-America remains solid across 0% most segments -10% Q1 Q2 Q3 Q4 Q1 2011 2012 NL France Germany Belgium UK N-America • seasonal trends remained quarterly Randstad gro
Slide 6: Q1 2012: growth is holding up
Q1 2012: growth is holding up • revenue amounted to € 4,152 million (+0% YoY organically per wd) - organic growth per working day from 0% in January to +1% in March - North America from +6% in Q4 to +8% in Q1 - Europe from +3% in Q4 to -/- 3% in Q1 - Rest of the World from +4% in Q4 to +5% in Q1 • g
Slide 7: Q1 2012: financial key points
Q1 2012: financial key points • effective tax rate* amounted to 33% (Q1 11: 31%) - guidance full year 2012 unchanged : 29-32% • diluted EPS* up 3% to € 0.39 vs. € 0.38 in Q1 2011 • DSO improved by 1 day to 53 days • free cash flow amounted to € 58 million in Q1 vs. € 130 million LY - unwinding trade
Slide 8: North America: continued solid trends
North America: continued solid trends • organic revenue/wd +8% revenue & EBITA margin - continued strong growth US staffing & professionals 1000 5.0% - growth trend Canada softened 950 900 4.0% - perm up 16% organically 850 800 750 3.0% million € 700 • US staffing & inhouse up 6% 650 600 2.0% - acce
Slide 9: SFN integration well on track
SFN integration well on track - integration process is well on track integration process - physical integration staffing business started - integration professionals starts in Q3 2012 - integration costs Q1: € 6.4 million (total: € 18.9 million) annual synergies $40M - full amount of synergies expec
Slide 10: France: gaining market share
France: gaining market share • revenue down 5%/wd (Q4: +5%) revenue & EBITA margin - continues to gain market share 900 4.0% - staffing & professionals slowing down - automotive & manufacturing remain drivers in staffing 800 3.0% - continued strong growth in inhouse million € 700 2.0% • continued fo
Slide 11: The Netherlands: mixed picture
the Netherlands: mixed picture • revenue/wd down 2% (Q4: +3%) revenue & EBITA margin - Randstad continues to gain market share 800 7.5% - Tempo-Team gained market share in blue collar - revenue decline at Yacht stable at low single digit rate 750 6.5% million € 700 • public sector related business u
Slide 12: Germany: challenging environment
Germany: challenging environment • organic revenue up 3% p/wd (Q4: +8%) revenue & EBITA margin - significant price effect following changes in CLA 550 10.0% - volumes gradually slowing down, seasonal pattern less visible - growth inhouse still strong at +13% 500 8.0% - automotive and manufacturing m
Slide 13: Belgium: good performance
Belgium: good performance • revenue/wd -/-6% (Q4: -/-1%) revenue & EBITA margin - decline softening through the quarter, March at -/-3% 400 7.0% - inhouse down 8% against a strong comparison base 350 6.0% - solid performance in HRS 300 5.0% - professionals showed continued growth million € 250 4.0%
Slide 14: UK: some signs of improvement
UK: some signs of improvement • revenue/wd -/- 9% (Q4: -/- 7%) revenue & EBITA margin - decline eased throughout the quarter to -/- 5% in March 225 4.0% - public sector stable at -/- 16% vs. Q4 2011 3.0% 200 2.0% 1.0% • professionals gradually strengthening 175 million € 0.0% - good performance in f
Slide 15: Segment performance
segment performance Staffing in € million Q1 2012 Q1 2011 % organic • industrial segments main drivers revenue 2,563.0 2,400.1 -/- 4% • strong growth in North America EBITA 68.7 74.8 -/- 10% • gradual slowdown across Europe EBITA margin 2.7% 3.1% • addition of SFN with below average EBITA margin Inh
Slide 16: Revenue development per industry segment
revenue development per industry segment Segments USA Germany France Netherlands Manufacturing ++ o - o Automotive ++ o ++ - Food - + o o Transport o o o o Business services ++ o o o Financial services o - -- o IT services + ++ - - Public sector o + o + Health & social work ++ ++ o - 16 April 26, 20
Slide 17: Update legislative environment
update legislative environment country state of play equal pay additional info Belgium transposition AWD no change: equal pay from 1. broadening reasons pending day 1 for use (steppingstone) 2. public sector to be opened Italy transposition AWD no change: equal pay from 1. lifting reasons for use co
Slide 18: Income statement Q1 2012
income statement Q1 2012 € million Q1 2012 Q1 2011 % change % organic Revenue 4,152 3,700 12% 1% gross profit 748 671 12% -1% gross margin 18.0% 18.1% operating expenses* 638 562 14% 0% opex as % of revenue 15.4% 15.2% EBITA* 110 109 2% -3% EBITA margin* 2.7% 2.9% reported EBITA 104 109 amortization
Slide 19: Gross margin Q1 2012
gross margin Q1 2012 YoY gross margin development 19% + 0.2% -/- 0.3% 18% 18.1% 18.0% 17% Q1 2011 SFN Group price/mix perm placements HRS/others Q1 2012 • SFN contributes 20 bps to Q1 2011 • temp margin affected by ongoing changes in business mix and margin effects in Germany, NL and UK • perm fees
Slide 20: Selected balance sheet items
selected balance sheet items € million March 31, 2012 March 31, 2011 trade and other receivables 2,941 2,701 less: trade and other payables 2,291 2,185 operating working capital* 650 516 cash & cash equivalents 355 280 less: current borrowings 39 95 less: non-current borrowings 1,528 931 net debt 1,
Slide 21: Consolidated cash flow statement
consolidated cash flow statement € million Q1 2012 Q1 2011 EBITDA 124 129 usage of OWC -/- 29 -/- 2 income taxes (paid)/received -/- 17 23 provisions and other -/- 8 -/- 5 net additions in PPE and software -/- 12 -/- 15 financial receivables/dividend associates - - free cash flow 58 130 € million Q1
Slide 22: Outlook
outlook • growth per working day from 0% in January to +1% in March • seasonal patterns remain visible across most countries • growth in North America accelerated; decline in Europe • operating expenses expected to be slightly up in Q2 vs. Q1 • field steering ensures adaptability and drives producti
Slide 23: Randstad
™- randstad Staffing | Professionals | Search & Selection | HR Solutions | Inhouse Services SA
Slide 24: Appendices
™- randstad Staffing | Professionals | Search & Selection | HR Solutions | Inhouse Services appendices
Slide 25: Drivers effective tax rate
drivers effective tax rate effective tax rate* was up to 33% (vs. 31% in Q1 2011) - change in geographical mix: high growth in countries with above average tax rates - as our results improve, the relative effect of the tax planning measures decreases - full year 2012 guidance unchanged: 29%-32% driv
Slide 26: Debt facilities & repayment schedule existing facility
debt facilities & repayment schedule existing facility repayment schedule net cash March 31st, 2012 1800 1600 135 135 term 1400 1200 revolver € x million 1000 800 ~1,258 1,255 600 400 200 316 135 0 • covenant; net debt/EBITDA* of max. 3.5 - at the end of Q1 2012 the net debt/EBITDA ratio was 1.7 • s
Slide 27: Financing: fixed vs. floating interest rates
financing: fixed vs. floating interest rates 10 year historical interest rates comparison 1M vs 5Y 6% 5% 4% average fixed rate = 3.5% 3% average floating rate = 2.5% 2% 1% 0% March 2002 March 2012 1M Float 5Y Fixed • we use floating interest rates as a natural hedge - spread above Euribor of 50-115
Slide 28: Revenue split Q1 2012
revenue split Q1 2012 geographical area revenue categories N-America France 9% 5% 23% NL 21% 5% Germany 5% 62% Belgium/Lux. 8% 17% 18% UK 11% Iberia 16% ROE ROW staffing inhouse professionals 28 April 26, 2012 first quarter results 2012
Slide 29: EBITA breakdown by geography
EBITA breakdown by geography Q1 2012 Q1 2011 N-America 2% 2% N-America 4% 4% 4% 1% 5% 3% France France 2% 9% 19% NL 11% NL 13% Germany 12% Germany 12% Belgium/Lux. Belgium/Lux. 17% UK UK 21% 32% Iberia Iberia 31% ROE ROE ROW ROW 29 April 26, 2012 first quarter results 2012
Slide 30: Outlets by country
outlets* by country end of period Q1 2012 Q4 2011 Q3 2011 Q2 2011 Q1 2011 North America 1,074 1,089 1,090 485 487 France 862 882 896 889 896 the Netherlands 696 717 734 739 746 Germany 557 554 555 530 516 Belgium/Lux 350 359 363 367 367 United Kingdom 246 255 283 275 278 Iberia 273 277 278 272 268 O
Slide 31: Corporate employees by country
corporate employees by country average Q1 2012 Q4 2011 Q3 2011 Q2 2011 Q1 2011 North America 6,440 6,450 4,310 3,070 3,010 France 3,960 4,010 4,000 3,910 3,870 the Netherlands 4,870 5,150 5,220 5,170 5,190 Germany 2,940 3,020 3,020 2,940 2,880 Belgium/Lux. 2,030 2,120 2,180 2,110 2,080 United Kingdo
Slide 32: Staffing employees by country
staffing employees by country averages Q1 2012 Q1 2011 North America 104,200 55,200 France 80,700 86,100 the Netherlands 81,400 86,100 Germany 50,300 52,700 Belgium/Lux. 40,100 42,900 United Kingdom 21,700 24,700 Iberia 43,900 47,500 Other Europe 34,900 37,000 Rest of world 109,900 104,500 total 567