Slide 1: 3rd quarter results 2022
3rd quarter results 2022. strong performance, continued margin expansion. Sander van ‘t Noordende, CEO Henry Schirmer, CFO 25 October 2022 | Randstad N.V.
Slide 2: Disclaimer
disclaimer. Certain statements in this document concern prognoses about the changes in the business mix, changes in legislation (particularly future financial condition, risks, investment plans, and the results in relation to employment, staffing and tax laws), the role of of operations of Randstad
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 2022 | 4
Slide 5: Performance
performance. © Randstad 2022 | 5
Slide 6: Q3 2022: strong performance, continued margin expansion
Q3 2022: strong performance, continued margin expansion. highlights Q3 key financials focus & adaptability solid demand & talent scarcity revenue +6.8% YoY Specialization, Equity, Digital broad-based growth gross margin 21.0%, +110bp YoY new Executive Leadership Team acquisition of the Finite Group
Slide 7: North America and France
north america france continued strong performance. outperforming market, solid profitability. ● revenue up 6% (Q2: up 10%) ● revenue up 9% (Q2: up 7%) ○ perm up 15% (Q2: up 46%) ○ perm up 12% (Q2: up 20%) ● US Staffing & Inhouse revenue up 4% (Q2: up 8%) ● Staffing & Inhouse up 5% (Q2: up 5%) ● US P
Slide 8: The Netherlands and Germany
the netherlands germany solid performance. good growth, improving profitability. ● revenue stable (Q2: up 1%) ● revenue up 5% (Q2: up 4%) ○ perm up 53% YoY (Q2: up 65%) ○ perm up 41% YoY (Q2: up 52%) ● Staffing & Inhouse down 3% (Q2: down 1%) ● Staffing & Inhouse up 5% (Q2: up 4%) ● Professionals up
Slide 9: Italy and Belgium
italy belgium continued excellent performance. resilient quarter. ● revenue stable (Q2: up 4%) ● revenue up 9% (Q2: up 20%) ○ perm up 29% (Q2: up 50%) ● Staffing & Inhouse stable (Q2: up 6%) ● EBITA margin at 6.5% vs. 5.9% LY ● EBITA margin at 5.1% vs. 5.7% LY © Randstad 2022 | | 9
Slide 10: Iberia and other European countries
iberia other european countries continued strong performance. solid quarter, good growth. ● spain revenue up 8% (Q2: up 15%) ● UK revenue up 3% (Q2: up 5%) ○ perm up 48% (Q2: up 69%) ● nordics up 12% (Q2: up 14%) ● portugal revenue up 10% (Q2: up 9%) ● switzerland up 5% (Q2: up 10%) ● EBITA margin a
Slide 11: Rest of the world and global businesses
rest of the world global businesses strong profitable growth. continued strength in sourceright. ● japan up 9% (Q2: up 11%) ● global businesses up 17% (Q2: up 25%) ● australia & new zealand up 12% (Q2: up 16%) ● monster revenue down 4% (Q2: up 1%) ● india up 18% (Q2: up 16%) ● sourceright up 21% (Q2
Slide 12: Financial results & outlook
financial results & outlook. © Randstad 2022 | 12
Slide 13: Strong performance, continued margin expansion
strong performance, continued margin expansion. Q3 performance Q3 key financials € million Q3 ’22 Q3 ’21 % org. revenue 7,054 6,275 7% gross profit 1,481 1,251 11% • organic revenue up 7% YoY gross margin 21.0% 19.9% • inhouse +15% YoY, professionals +12% YoY operating expenses* 1,145 953 12% • perm
Slide 14: Continued gross margin expansion driven by business mix and pricing discipline
continued gross margin expansion driven by business mix and pricing discipline. Q3 gross margin development YoY Q3 highlights • temp margin + 10bp YoY • perm fees increased +23% YoY, +40bp impact on gross margin • HRS/other +60bp YoY, reflecting continued strong growth in RPO © Randstad 2022 | 14
Slide 15: Operational adaptability & flexibility
operational adaptability & flexibility. Q3 sequential opex bridge disciplined cost management • opex as % of revenue down by 50bp QoQ to 16.2% • personnel expenses -3% sequentially • Sept exit rate FTE below Q3 • L4Q ICR 23% © Randstad 2022 | 15
Slide 16: Strong balance sheet
strong balance sheet. Q3 free cash flow strong balance sheet • Q3 FCF € 257m (vs. € 297m in Q3 2021) • net debt € 74m excl. lease liabilities • DSO 52.5, up 0.9 days vs Q3 2021 • leverage ratio excl. lease liabilities: 0.1 • ROIC: 18.6% (Q3 2021: 16.1%) • acquisition of the Finite Group finalized ©
Slide 17: Outlook
outlook. employees working Q4 2022 outlook on temporary basis • gross margin and operating expenses both • in Q3, ~1% lower YoY, stable expected to be broadly in line sequentially. month-on-month trend • adverse 1.2 working day impact in Q4 2022. • in early October, marginally lower YoY. © Randstad
Slide 18: Questions & answers
questions & answers. © Randstad 2022 | 18
Slide 19: Appendices
appendices randstad. © Randstad 2022 | 19
Slide 20: Outlets by region
outlets by region. end of period Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 North America 1,216 1,235 1,211 1,208 1,201 France 653 648 643 645 645 the Netherlands 621 619 625 618 599 Germany 521 526 524 563 579 Italy 280 275 274 274 273 Belgium & Luxembourg 337 353 347 333 326 Iberia 384 387 388 380 38
Slide 21: Corporate staff by region
corporate staff by region. average Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 North America 7,230 7,090 6,940 6,890 6,820 France 4,940 4,800 4,670 4,620 4,540 the Netherlands 4,180 4,150 4,140 4,100 4,000 Germany 2,940 2,950 2,950 3,010 2,950 Italy 3,050 2,940 2,790 2,660 2,550 Belgium & Luxembourg 2,4
Slide 22: Number of employees working on a temporary basis by region
number of employees working on a temporary basis by region. average Q3 2022 Q3 2021 North America 90,100 89,700 France 87,500 85,100 the Netherlands 63,200 71,800 Germany 37,400 39,200 Italy 59,400 56,200 Belgium & Luxembourg 45,700 48,000 Iberia 63,300 63,600 Other European countries 58,000 65,300
Slide 23: Randstad - human forward
randstad human forward. VM