Slide 1: 1st quarter results 2023
1st quarter results 2023. Q1 2023: resilient performance, adapting to challenging conditions. Sander van ‘t Noordende, CEO Jorge Vazquez, CFO 25 April 2023 | 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 appendix. 19 © Randstad 2023 | 4
Slide 5: Performance
performance. © Randstad 2023 5
Slide 6: Q1 2023: resilient performance, adapting to challenging conditions
Q1 2023: resilient performance, adapting to challenging conditions. summary key financials focus challenging macro conditions; revenue -4.2% YoY cost management operationally adapting sustained focus on pricing & gross margin 21.0%, +50bp YoY partner for talent diversified mix of services EBITA € 26
Slide 7: North America: adapting to a challenging environment
north america: adapting to a challenging environment. organic revenue growth YoY, last two quarters* ● us staffing & inhouse: continued softening demand in sectors such as manufacturing, transportation & distribution, along with other administrative (support) profiles ● us professionals: tough marke
Slide 8: Northern Europe: mixed growth trends, good profitability & adaptability
northern europe: mixed growth trends, good profitability & adaptability. organic revenue growth YoY, last two quarters* 9% ● NL: good profitability & adaptability; staffing & inhouse in particular impacted by covid-related business; steady perm business ● germany: solid quarter, improving profitabil
Slide 9: Southern Europe, UK & LatAm: mixed growth trends, good profitability
southern europe, uk & latam: mixed growth trends, good profitability & adaptability. organic revenue growth YoY, last two quarters* ● france: solid growth in perm and professionals, nearly offset decline in staffing & inhouse; good and disciplined cost control and adaptability ● italy: solid growth
Slide 10: Asia Pacific: continued growth and solid profitability
asia pacific: continued growth and solid profitability. organic revenue growth YoY, last two quarters* ● japan: solid growth ● australia & new zealand: steady performance ● india: strong growth, continued focus on quality of portfolio EBITA margin (underlying)** * YoY organic change is measured excl
Slide 11: Global businesses: robust demand for our enterprise solutions
global businesses: robust demand for our enterprise solutions. organic revenue growth YoY, last two quarters* ● enterprise solutions: robust RPO business, growing demand for outplacement ● monster: demand largely impacted by economic slowdown, continued adaptation -14% EBITA margin (underlying)** *
Slide 12: Financial results & outlook
financial results & outlook. © Randstad 2023 | 12
Slide 13: Q1 2023: resilient performance, adapting to challenging conditions
Q1 2023: resilient performance, adapting to challenging conditions. Q1 performance Q1 key financials € million Q1 ’23 Q1 ’22 % org. revenue 6,518 6,621 -4% gross profit 1,368 1,360 -2% gross margin 21.0% 20.5% • organic revenue down 4.2% YoY operating expenses* 1,102 1,074 1% • growth continued in a
Slide 14: Continued gross margin expansion driven by mix and pricing
continued gross margin expansion driven by mix and pricing. Q1 gross margin development YoY Q1 highlights • temp margin + 40bp YoY • perm fees -10bp YoY • HRS/other +20bp YoY, reflecting growing demand for outplacement © Randstad 2023 | 14
Slide 15: Operational adaptability provided by our field steering model
operational adaptability provided by our field steering model. Q1 sequential opex bridge disciplined cost management • opex up organically by € 25m QoQ • personnel expenses up 1% QoQ • net reduction of 1,840 FTE offset by wage inflation • March exit rate FTE below Q1 average • ongoing field steering
Slide 16: Solid free cash flow & sound balance sheet
solid free cash flow & sound balance sheet. Q1 free cash flow sound balance sheet • Q1 FCF € 169m (up € 36m YoY) • net debt € 145m excl. lease liabilities • counter cyclical movement of working capital • leverage ratio excl. lease liabilities: 0.1 more than offset decline in EBITA • update on SBB of
Slide 17: Outlook
outlook. Q2 2023 outlook momentum • gross margin and operating expenses both • in early April, trends broadly in line with expected to be broadly in line sequentially. Q1 2023 • the YoY growth rate of employees • we remain cautious & continue to work with working was in line with the Q1 2023 scenari
Slide 18: Questions & answers
questions & answers. © Randstad 2023 | 18
Slide 19: Appendices
appendices randstad. © Randstad 2023 | 19
Slide 20: Outlets by region
outlets by region. end of period Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 North America 1,176 1,193 1,216 1,235 1,211 the Netherlands 609 613 621 619 625 Germany 533 516 521 526 524 Belgium & Luxembourg 329 331 337 353 347 Other Northern Europe countries 322 325 326 331 324 Northern Europe 1,793 1,78
Slide 21: Corporate staff by region
corporate staff by region. average Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 North America 6,780 7,150 7,230 7,090 6,940 the Netherlands 4,030 4,110 4,180 4,150 4,140 Germany 2,740 2,860 2,940 2,950 2,950 Belgium & Luxembourg 2,250 2,380 2,450 2,420 2,380 Other Northern Europe countries 2,440 2,530 2,
Slide 22: Number of employees working on a temporary basis by region
number of employees working on a temporary basis by region. average Q1 2023 Q1 2022 North America 75,000 95,800 the Netherlands 58,200 73,100 Germany 34,700 39,100 Belgium & Luxembourg 37,300 43,100 Other Northern Europe countries 35,000 37,200 Northern Europe 165,200 192,500 France 80,500 87,000 It
Slide 23: Randstad: human forward
randstad human forward. VM