Robert Half Inc. · NYSE:RHI
Robert Half — Investor Presentation (November 2024)
35 slides from Robert Half's investor presentation, November 2024
Slide 1: Investor Presentation
Investor Presentation M. Keith Waddell President and Chief Executive Officer Robert Half November 2024 © 2 0 2 4 R ob er t H al f I n c . A n E q u al O p p or t u n i t y E m p l o y e r M / F / D i s a b i l i t y / V e t e r a n s .
Slide 2: Disclaimer
Disclaimer Certain information contained in this presentation may be deemed forward-looking statements regarding events and financial trends that may affect the company’s future operating results or financial positions. Forward-looking statements are subject to risks and uncertainties that could cau
Slide 3: Company Snapshot Q3 2024
ROBERT HALF INVESTOR PRESENTATION Company Snapshot Q3 2024 Service Revenues: Robert Half $1.47 Billion and Protiviti Net Income: $65 Million NYSE symbol: RHI Global locations: 375+ Return on Invested Capital: Headquarters: Menlo Park, Calif. Full-time internal staff*: 15,000 17.7% Years of industry
Slide 4: Commitment to Our Values
ROBERT HALF INVESTOR PRESENTATION Commitment to Our Values INTEGRITY INCLUSION INNOVATION COMMITMENT TO SUCCESS We put ethics first and We foster a culture of We adapt, evolve and do the right thing in all belonging where invest to deliver new We empower our situations. everyone can connect, ideas a
Slide 5: The Most Respected Name in Our Industry
ROBERT HALF INVESTOR PRESENTATION The Most Respected Name in Our Industry All referenced trademarks are the property of their respective owners. 5 Barron’s and Forbes award logos are reprinted with permission of Barron’s and Forbes. From Fortune, © 2024 FORTUNE Media IP Limited. All rights reserved.
Slide 6: Employee Engagement
ROBERT HALF INVESTOR PRESENTATION Employee Engagement 92% of employees feel Robert Half is a Great Place to Work Belgium France United States Germany Canada Netherlands Switzerland Greater China Hong Kong United Kingdom Japan Singapore Brazil Chile Australia New Zealand 6 © 2 0 2 4 R ob er t H al f
Slide 7: Our History and Expansion
ROBERT HALF INVESTOR PRESENTATION Our History and Expansion 1948 1986 1987-2001 2002 Today Originated as Acquired Acquired Robert Half Launched Protiviti, Offer full spectrum Robert Half Robert Half franchisees; expanded delivering internal audit, of talent solutions Personnel Agency Franchisor from
Slide 8: Talent Solutions Revenue Mix
ROBERT HALF INVESTOR PRESENTATION Talent Solutions Revenue Mix • Largest portion of international Talent Solutions from Continental Europe • Germany and Belgium produce largest European revenues Germany 5% Continental Europe 12% 24% 76% Belgium 4% France 2% Other 1% International United States Asia-
Slide 9: Revenue Mix by Segment
ROBERT HALF INVESTOR PRESENTATION Revenue Mix by Segment Q3 2024 Global Revenues Permanent Placement Talent Protiviti Contract Talent Solutions* Solutions 8% 35% 57% Administrative and Finance and Technology Accounting Customer Support 21% 19% 74% Q3 2024 Contract Talent Solutions Mix * Service reve
Slide 10: Return on Invested Capital
ROBERT HALF INVESTOR PRESENTATION Return on Invested Capital Q3 2024 Versus 20-Year Average 26.1% 17.7% Superior ROIC is rooted in our ability to generate industry- leading profitability on a judiciously employed capital base, including growth achieved primarily by organic means. 20-Year Average* Q3
Slide 11: Business Strategy
ROBERT HALF INVESTOR PRESENTATION Business Strategy Value proposition: Only full-time jobs require full-time staff. • Clients value specialization in professional segments. • Middle-market talent solutions accounts are smaller, less price-sensitive; clients are demanding; quality is key. • Protiviti
Slide 12: Balanced Suite of Consulting Solutions Driving Protiviti Growth
ROBERT HALF INVESTOR PRESENTATION Balanced Suite of Consulting Solutions Driving Protiviti Growth Growing suite of consulting solutions Blended Protiviti/ Internal Talent Solutions Audit and Technology Regulatory Business Risk and Performance Financial Consulting Compliance Improvement Advisory 12 ©
Slide 13: Full Spectrum of Talent Solutions and Consulting Solutions
ROBERT HALF INVESTOR PRESENTATION Full Spectrum of Talent Solutions and Consulting Solutions Project Management Traditional Staffing Specialized Talent Solutions and Project Skills and Deliverables Finance and Finance and Accounting – Marketing Management Accounting – Protiviti Permanent and Creativ
Slide 14: Unique Client-Driven Delivery Model
ROBERT HALF INVESTOR PRESENTATION Unique Client-Driven Delivery Model We offer a uniquely flexible talent pool and deep consulting capability through our talent solutions and Protiviti brands. Talent Solutions Blended Consulting Talent solutions competitors lack We provide world-class Global and reg
Slide 15: Focus on Higher-Skilled Positions
ROBERT HALF INVESTOR PRESENTATION Focus on Higher-Skilled Positions Our strategic focus on Higher bill rates and gross margins higher-skilled positions is steadily increasing and carries many advantages: Longer assignment lengths Increased client openness to remote talent More full-time engagement p
Slide 16: Our Competitive Strengths
Q3 2024 INVESTOR PRESENTATION Our Competitive Strengths Increase revenue and market share by leveraging the power of our: • People • Industry-leading Brand • Unique Business Model • Best-in-Class Technology and Innovation 16 © 2 0 2 4 R ob er t H al f I n c . A n E q u al O p p or t u n i t y E m p
Slide 17: Marketing and Digital Strategy
ROBERT HALF INVESTOR PRESENTATION Marketing and Digital Strategy Most-recognized brand in the industry Traditional media for broad brand awareness Supported by over $1 billion in advertising over the last 25 years • Radio • Locally directed advertising and PR • World-class customer and candidate pro
Slide 18: Financial Performance
ROBERT HALF INVESTOR PRESENTATION Financial Performance Revenues of $1.47 Billion for Q3 2024 18 © 2 0 2 4 R ob er t H al f I n c . A n E q u al O p p or t u n i t y E m p l o y e r M / F / D i s a b i l i t y / V e t e r a n s .
Slide 19: Revenue History (Q3 2004 – Q3 2024)
ROBERT HALF INVESTOR PRESENTATION Revenue History (Q3 2004 – Q3 2024) Quarterly Global Revenues (in Billions) $1.95 $1.83 $1.85 $1.75 $1.71 $1.65 $1.55 $1.56 $1.55 $1.47 $1.47 $1.45 $1.34 $1.35 $1.31 $1.32 $1.25 $1.22 $1.19 $1.18 $1.16 $1.15 $1.08 $1.03 $1.05 $1.03 $0.99 $0.95 $0.87 $0.85 $0.82 $0.7
Slide 20: Contract Talent Solutions Revenue History
ROBERT HALF INVESTOR PRESENTATION Contract Talent Solutions Revenue History (Q3 2004 – Q3 2024) Quarterly Global Revenues (in Billions) $1.25 $1.15 $ 1.12 $ 1.14 $ 1.08 $ 1.05 $1.05 $ 1.02 $ 1.00 $ 1.00 $ 0.95 $0.95 $ 0.94 $ 0.93 $ 0.91 $ 0.85 $0.85 $ 0.83 $ 0.83 $ 0.80 $ 0.79 $ 0.78 $0.75 $ 0.68 $
Slide 21: Permanent Placement Talent Solutions Revenue History
ROBERT HALF INVESTOR PRESENTATION Permanent Placement Talent Solutions Revenue History (Q3 2004 – Q3 2024) Quarterly Global Revenues (in Millions) $225 $200 $182 $175 $156 $150 $140 $135 $130 $123 $125 $113 $111 $111 $108 $105 $102 $100 $88 $88 $87 $82 $79 $75 $57 $57 $50 $43 $36 $25 $0 3Q'04 3Q'05
Slide 22: Protiviti Revenue History
ROBERT HALF INVESTOR PRESENTATION Protiviti Revenue History (Q3 2004 – Q3 2024) Quarterly Global Revenues (in Millions) $550 $511 $511 $501 $500 $481 $450 $400 $350 $321 $299 $300 $253 $250 $217 $209 $202 $200 $168 $150 $142 $141 $139 $139 $128 $119 $111 $100 $97 $99 $100 $50 $0 3Q'04 3Q'05 3Q'06 3Q
Slide 23: Robert Half Enterprise Results
ROBERT HALF INVESTOR PRESENTATION Robert Half Enterprise Results Year-Over-Year Revenue Growth (As Adjusted*) 50% 43% 40% 39% 30% 22% 21% 20% 17% 12% 14% 13% 11% 11% 10% 10% 8% 5% 3% 2% 0% 0% -4% -10% -8% -14% -20% -24% -30% -36% -40% 3Q'04 3Q'05 3Q'06 3Q'07 3Q'08 3Q'09 3Q'10 3Q'11 3Q'12 3Q'13 3Q'14
Slide 24: Talent Solutions Divisions — U.S. vs. International
ROBERT HALF INVESTOR PRESENTATION Talent Solutions Divisions — U.S. vs. International Year-Over-Year Revenue Growth (As Adjusted*) ‒ ‒ U.S. — International: Restated in Constant Currency 50% 40% 40% 31% 34% 27% 30% 21% 27% 22% 20% 21% 19% 19% 18% 20% 15% 13% 15% 14% 11% 12% 10% 11% 13% 7% 10% 9% 7%
Slide 25: Contract vs. Permanent Placement Talent Solutions Growth
ROBERT HALF INVESTOR PRESENTATION Contract Talent Solutions vs. Permanent Placement Talent Solutions Year-Over-Year Revenue Growth (As Adjusted*) ‒‒ Contract Talent Solutions — Permanent Placement Talent Solutions 115% 95% 78% 75% 59% 55% 48% 55% 34% 33% 34% 35% 28% 19% 18% 24% 18% 16% 17% 20% 15% 1
Slide 26: Contract Talent Solutions Segment Income Margin
ROBERT HALF INVESTOR PRESENTATION Contract Talent Solutions Segment Income Margin* 20-Year History 12.0% 10.9% 11.0% 10.2% 10.2% 10.0% 10.0% 9.8% 9.8% 9.8% 9.5% 9.6% 9.3% 9.3% 8.9% 8.9% 9.0% 8.3% 8.0% 7.5% 6.9% 6.9% 6.8% 7.0% 6.0% 5.0% 4.4% 4.2% 4.2% 4.0% 3.0% 2.0% 1.0% 0.0% 2004 2005 2006 2007 2008
Slide 27: Permanent Placement Talent Solutions Segment Income Margin
ROBERT HALF INVESTOR PRESENTATION Permanent Placement Talent Solutions Segment Income Margin* 20-Year History 25.0% 23.0% 22.2% 21.0% 20.3% 19.9% 20.2% 19.4% 19.1% 18.7% 19.0% 17.7% 17.7% 17.6% 16.7% 17.0% 15.6% 15.7% 15.0% 14.1% 13.2% 12.5% 13.0% 11.7% 10.6% 11.0% 9.0% 7.9% 7.8% 7.0% 5.0% 3.0% 1.0%
Slide 28: Protiviti Segment Income Margin
ROBERT HALF INVESTOR PRESENTATION Protiviti Segment Income Margin* 20-Year History 20.0% 17.9% 18.1% 18.0% 16.5% 16.0% 13.7% 14.0% 12.9% 12.3% 12.0% 11.2% 11.3% 10.0% 10.3% 9.7% 9.7% 9.7% 10.0% 8.1% 7.7% 8.0% 6.0% 3.8% 4.0% 2.4% 2.0% 1.3% 1.2% 0.0% -2.0% -4.0% -2.8% -6.0% -8.0% -8.0% -10.0% 2004 200
Slide 29: Cash Flow History
ROBERT HALF INVESTOR PRESENTATION Cash Flow History Operating Cash Flow (in Millions) $700.0 $684 $637 $597 $603 $600.0 $572 $520 $500.0 $447 $453 $438 $442 $411 $400.0 $376 $341 $328 $309 $289 $300.0 $256 $240 $200.0 $176 $162 $100.0 $0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 30: Strong Balance Sheet
ROBERT HALF INVESTOR PRESENTATION Strong Balance Sheet As of September 30, 2024 Zero Debt $570M $3.0B Cash Total assets 30 © 2 0 2 4 R ob er t H al f I n c . A n E q u al O p p or t u n i t y E m p l o y e r M / F / D i s a b i l i t y / V e t e r a n s .
Slide 31: Investing in Our Future
ROBERT HALF INVESTOR PRESENTATION Investing in Our Future (in Millions) Capital Expenditures* YTD Q3 2024 5 Years Investing in technology and innovation: • Cloud computing $64.9 $381.5 modernization • AI capabilities • Mobile app • Global website *Capital expenditures include capitalized cloud compu
Slide 32: Substantially All Free Cash Flow Returned to Shareholders
ROBERT HALF INVESTOR PRESENTATION Substantially All Free Cash Flow Returned to Shareholders (in Millions) Q3 2024 5 Years Dividends $166 49% $888 45% Share $171 51% $1,081 55% Repurchases Totals $337 100% $1,969 100% Amounts shown are through September 30, 2024 32 © 2 0 2 4 R ob er t H al f I n c .
Slide 33: Quarterly Dividend Increased Annually Since Inception
ROBERT HALF INVESTOR PRESENTATION Quarterly Dividend Increased Annually Since Inception $0.06 Q2 2004 $0.53 11.3% Q3 2024 Compound Annual Growth Rate* * CAGR percentage calculated with declaration date of July 30, 2024. 33 © 2 0 2 4 R ob er t H al f I n c . A n E q u al O p p or t u n i t y E m p l
Slide 34: Share Count Reduction as of Q3 2024
ROBERT HALF INVESTOR PRESENTATION Share Count Reduction as of Q3 2024 3 Years 5 Years 10 Years Share Count Reduction 9.1M 13.5M 33.0M Share Count Reduction as a 8.2% 11.6% 24.4% % of total shares outstanding 34 © 2 0 2 4 R ob er t H al f I n c . A n E q u al O p p or t u n i t y E m p l o y e r M /
Slide 35: Investor Relations
Investor Relations investor.relations@roberthalf.com 650-234-6000 35 © 2 0 2 4 R ob er t H al f I n c . A n E q u al O p p or t u n i t y E m p l o y e r M / F / D i s a b i l i t y / V e t e r a n s .