Heidrick & Struggles International
Heidrick & Struggles International — Investor Day (December 2024)
68 slides from Heidrick & Struggles International's investor day presentation, Dec 3, 2024
Slide 1: Investor Day December 3, 2024
Exhibit 99.1 Investor Day DECEMBER 3, 2024
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This presentation contains forward-looking statements within the meaning of the federal securities laws, including statements regarding guidance for the fourth quarter of 2024. The forward-looking statements are based on current expectations
Slide 3: Run of Show
Run of Show Time Topic Speaker, Title 08:30 – 08:32 Welcome Suzanne Rosenberg - VP, Investor Relations 08:32 – 08:45 Section 1 Tom Monahan – Chief Executive Officer 08:45 – 09:00 Section 2 Tom Murray – President 09:00 – 09:30 Section 3 Jenni Hibbert - Global Managing Partner, Go-to-market and Region
Slide 4: Why Heidrick?
Why Heidrick? We serve a We have We meet these We are Our business has large and assembled a needs through increasingly intrinsically growing market world class team competitive and linking these attractive financial powered by and unique differentiated service lines characteristics critical client
Slide 5: Why Heidrick?
Why Heidrick? We serve a We have We meet these We are Our business has large and assembled a needs through increasingly intrinsically growing market world class team competitive and linking these attractive financial powered by and unique differentiated service lines characteristics critical client
Slide 6: A unique platform built to address only the highest value human capital decisions
A unique platform built to address only the highest value human capital decisions D E C I S I O N S A B O U T L E A D E R S A R E T H E S I N G L E G R E AT E S T L E V E R TO D R I V E Where you have a good executive, C O R P O R AT E P E R F O R M A N C E you have a good company.” Peter Drucker Ou
Slide 7: Case study: partnering through pivotal strategy & leadership change
Case study: partnering through pivotal strategy & leadership change Client Actions over four years Results Leading global professional services • Leadership Team Benchmarking 1. Successful transition of power firm with over $30B in annual & Board/Governance to new CEO and formation of new revenues a
Slide 8: Illustrating the power of leadership solutions focused on client outcomes
Illustrating the power of leadership solutions focused on client outcomes DIFFERENTIATED DEEP DURABLE • Working at the very top • Multiple talent solutions • Multi-year partnership • Tailored leadership • Multi-region support • Critical time of change framework • Global H&S team • Go-to search partn
Slide 9: Urgent pressure on clients from the supply and demand side
Urgent pressure on clients from the supply and demand side THE CHANGING NATURE OF THE RAPID EVOLUTION OF ORGANIZATIONS AND STRATEGY LEADERSHIP AND CRITICAL TALENT • Transforming work around digital and AI based • Aging populations in most major markets creating workflows scarcity — and new career dy
Slide 10: Leadership, talent and culture are now enterprise level risks
Leadership, talent and culture are now enterprise level risks We seek to promote a diverse and inclusive . . . to build our speak- up culture.. . .Our Future Skills curriculum helps provides skills that will help to enable employees and HSBC to be successful in the future. We develop succession plan
Slide 11: Meeting the needs of a vast and growing market
Meeting the needs of a vast and growing market Size of Relevant Markets ($b) 4 Where we play today Total market 3 1 CAGR (%) 6.8% 9.8% 3.5% $120 3 $42 2 $17 Global Executive Search Total Addressable Market Human Capital Support & Advice Sources: 1 Based on 10-year historical growth of global executi
Slide 12: Why Heidrick?
Why Heidrick? We serve a We have We meet these We are Our business has large and assembled a needs through increasingly intrinsically growing market world class team competitive and linking these attractive financial powered by and unique differentiated service lines characteristics critical client
Slide 13: Heidrick & Struggles is an international, premier provider of leadership advisory services
Heidrick & Struggles is an international, premier provider of leadership advisory services 1953 2,000+ 500+ 100+ FOUNDED EMPLOYEES ADVISORS MARKETS by Gardner Heidrick building and leading served and John Struggles client relationships in Chicago 13
Slide 14: Our leadership advisory approach
Our leadership advisory approach TODAY FUTURE Our approach is a blend of search, consulting, and critical talent services to help our clients meet the challenges inherent in leadership risk. We determine the leadership they have and the leadership they need and close the gap between the two. THE L E
Slide 15: Blue chip client list confers authority and revenue stability
Blue chip client list confers authority and revenue stability 70 OF THE 72% 52% TOP 100 61 68% 38% OF THE TOP 100 39 63% 84% OF THE TOP 50 22 46% OF THE 68% TOP 25 Statistics on this slide are based on confirmed engagement data from Jan 2019-June 2021 15
Slide 16: Geographical coverage
Geographical coverage 16
Slide 17: Case study: global reference
Case study: global reference Client Action Result F500 multinational financial services Worked in partnership with the • Provided key sponsors with institution and part of the Dow Jones confidence that we are identifying internal team to create a program Industrial Average index and developing a str
Slide 18: Depth across all scale industry verticals
Depth across all scale industry verticals Billings by Industry, Sept 2024 YTD Financial Services Industrial Global Technology Consumer Healthcare & Social & Services Markets Life Sciences Impact 25% 22% 19% 16% 15% 3% 18
Slide 19: Case study: blurring industry boundaries
Case study: blurring industry boundaries Client Action Result $100B equipment manufacturer, • Assembled cross-industry team • Placed the Head of Business software provider, and services leader from Industrial, Global Technology Transformation, coming from a in the Industrials sector & Services and C
Slide 20: Deep expertise in all roles and organizations
Deep expertise in all roles and organizations Our Practice Expertise Chief Executive Non-Exec Director • CEO & Board of Directors Officer • Digital, AI, & Technology Officers • Financial Officers Corporate Corporate Staff • Human Resources Officers Operating • Legal, Risk, Compliance & Government Af
Slide 21: Case study: keying on success drivers for a C-Level hire
Case study: keying on success drivers for a C-Level hire Client Action Result A high growth real-world data and AI • Leveraging a relationship through • Successfully completed the Chief business focused on the healthcare the Healthcare & Life Sciences Commercial Officer search sector. practice, Heid
Slide 22: Supporting the work with differentiated technology and proprietary data
Supporting the work with differentiated technology and proprietary data Heidrick Leadership Framework: A unique leadership model that defines the essential attributes of high performing 1 executives and their ability to mobilize, execute and transform. Core to our executive profiles, assessment meth
Slide 23: Demo: enabling Heidrick Search through AI
Demo: enabling Heidrick Search through AI 23
Slide 24: Which we also use to differentiate ourselves in the market
Which we also use to differentiate ourselves in the market 24
Slide 25: Why Heidrick?
Why Heidrick? We serve a We have We meet these We are Our business has large and assembled a needs through increasingly intrinsically growing market world class team competitive and linking these attractive financial powered by and unique differentiated service lines characteristics critical client
Slide 26: Strong solution areas against key client needs
Strong solution areas against key client needs Heidrick & Struggles is the only global leadership advisory firm to focus exclusively on the full HEIDRICK SEARCH spectrum of executive and high-end talent solutions. HEIDRICK HEIDRICK LEADERSHIP ASSESSMENT CRITICAL TALENT ON-DEMAND CONSULTING INTERIM L
Slide 27: Heidrick Search: a well-honed process for delivering great client outcomes
Heidrick Search: a well-honed process for delivering great client outcomes TIMELINE AND KEY ELEMENTS OF A SEARCH Entire Potential Candidate Universe Guided by agreed upon “Long List” Candidates “Short List” • Key criteria Interested & qualified as Interested & Finalist(s) potential targets qualified
Slide 28: Heidrick Search: attacking white space areas
Heidrick Search: attacking white space areas By Industry & Function Cybersecurity Health Tech Consumer Tech AI, Data & Analytics Industrial Tech Crypto & Digital Asset 28
Slide 29: Case study: immediate expertise in a new industry
Case study: immediate expertise in a new industry Client Action Result Leading global automotive supplier • Created expansive market Select placements: of technology and services mappings to provide a holistic • SVP High Performance Compute operating in over 60 countries. view of best athletes and d
Slide 30: Heidrick Search: driving productivity
Heidrick Search: driving productivity ACC EL E RATE THE P ROD U CTI V I TY RA MP S U STA I N P ROD U C TI V I TY G AI N S OF NE W S E A RC H CO N S U LTA NT S OF S EN I OR S E AR CH CON S U LTAN TS • Better predictive criteria • Engage, retain and motivate highest performers • Mentoring and developm
Slide 31: Heidrick On-Demand: critical talent for critical moments
Heidrick On-Demand: critical talent for critical moments CORPORATE PERFORMANCE HIGHLY DRIVING PERFORMANCE BY DEPENDENT ON “ONE-TIME” EFFORTS SUPPLYING ESSENTIAL SKILLS FOR MISSION-CRITICAL EFFORTS Value to client: TRANSFORMATION & CHANGE • Rapidly access talent vital to key projects and outcomes De-
Slide 32: Case Study: impact of critical talent
Case Study: impact of critical talent Client Action Result A F250 Retailer The transformation office generated over § Built out a TMO to lead the deployment of the transformation plan $200M in cash enabling successful emergence from bankruptcy and the § Identified and rapidly deployed 6 to creation
Slide 33: Heidrick On-Demand: interim
Heidrick On-Demand: interim L EA D E RS HI P L I Q U I D I TY S OLV I N G U RG E N T CL I E N T NE E D S D U RI N G TI ME S OF TR AN S I TI ON, A N D BR I D G I N G TO S EA RC H I MPACT C RI S I S , OP P ORTU N I TY Value to client Key characteristics • Swiftly mobilize key talent for “roles that ca
Slide 34: Case study: delivering immediate performance inflection
Case study: delivering immediate performance inflection Client Action Result Global electronics manufacturing services • Evaluation of the current situation • Backlog reduced within 6 weeks, +10% (EMS) provider, specialized in electronics increase in sales • Work out pain points manufacturing and gr
Slide 35: Heidrick On-Demand: opportunity to grow
Heidrick On-Demand: opportunity to grow Build-up of interim Better attachment Partnering with client executive offering to Search transformations • Continue to build out Interim • Continue to find new • Continue to find synergies offering in the US married with pockets of demand in with our leading
Slide 36: Heidrick Consulting: assessment and talent intelligence
Heidrick Consulting: assessment and talent intelligence WHAT WE DO RE S U LTS I N HI G HE R B U S I N E S S P ER F ORM A N C E Shared IP and data Value to the client: • Objective, science-backed insight led data that reflects our unique knowledge of the capabilities that lead to executive success an
Slide 37: Case study: impact of assessment
Case study: impact of assessment Client Action Result Providing tailored Assessment for F500 global biopharma company. • Completed assessments for 100 Development solutions by business leaders across 46 countries in 4 area to increase employee self- months awareness and inform succession • Provided
Slide 38: Heidrick Consulting: leadership solutions
Heidrick Consulting: leadership solutions E V ERY L E AD E R W E PL AC E HA S A L EA D I N G P OS I TI ON I N P ER F ORM A N C E M A NDATE E S S EN TI A L C L I EN T WO RK • Leaders face challenges aligning teams and organizations Value to client against mission, purpose, and outcomes • Human-capita
Slide 39: Case study: impact of culture/performance
Case study: impact of culture/performance Client Action Result Global semiconductor company • ELT Alignment and Ownership • Revenue has been up year over year since engaging Heidrick • Articulated New Culture, Values, and Behaviors • With an intentional focus on a balanced scorecard of financial and
Slide 40: Heidrick Consulting: opportunity to grow
Heidrick Consulting: opportunity to grow Improve linkages to Scale our delivery search in three key Digitize footprint in the U.S. ways • Increase “attach” rate of • 60-70% of our current • With two solutions now live on assessment solutions as part of consulting capacity is the Navigator platform,
Slide 41: Demo: digital assessment
Demo: digital assessment 41
Slide 42: Each solution area naturally links to the others through client work
Each solution area naturally links to the others through client work Benefits: Allows us to support further Gives us a relationship with HEIDRICK Heidrick Search development of the team, close the C-Suite and insight into key gaps, and understand the Heidrick On-Demand SEARCH their agenda longer-ter
Slide 43: Leveraging our digital investment for growth and productivity
Leveraging our digital investment for growth and productivity Key use cases: Key use cases: - Talent strategy - Development planning - Succession and - Internal hiring and mobility scenario planning Future Products and Use Cases Digital Assessment Leadership Intelligence Navigator Platform: AI Power
Slide 44: Demo: Navigator
) Demo: Navigator iG G t Heidrick Navigator BY HEIDRICK & STRUGGLES
Slide 45: Why Heidrick?
Why Heidrick? We serve a We have We meet these We are Our business has large and assembled a needs through increasingly intrinsically growing market world class team competitive and linking these attractive financial powered by and unique differentiated service lines characteristics critical client
Slide 46: Growing our impact and scale in the era of who and how
Growing our impact and scale in the era of who and how C RE ATI N G U NR I VAL E D VALU E F OR C LI E N TS D I F F E RE N TI ATED D E EP D U RA BL E Secure C-Suite & Embed in Client Create Continuous Board Primacy Transformations Engagement By 2030, H&S aims to grow 1,000 differentiated, deep, and d
Slide 47: Larger clients become more consistent users
Larger clients become more consistent users. . . Annual Usage (2022-2023) 100% 90% 80% 79% 70% 72% 60% 62% 50% 50% 40% 30% 20% 10% 0% $250K Clients $500K Clients $1M Clients $3M Clients *Annual Usage = percentage of clients that used H&S solutions (billings) in both years 47
Slide 48: Multi-service clients become even stickier
. . . and multi-service clients become even stickier Annual Usage (2022-2023) Annual Usage (2022-2023) 100% All Clients Multi Solution-Area Clients 90% 100% 90% 80% 80% 70% 84% 79% 77% 70% 67% 60% 72% 72% 60% 50% 62% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% One Solution Multiple Soutions $500K
Slide 49: Growing our impact and scale in the era of who and how
Growing our impact and scale in the era of who and how CREATING UNRIVALED VALUE FOR CLIENTS DIFFERENTIATED DEEP DURABLE Secure C-Suite & Embed in Client Create Continuous Board Primacy Transformations Engagement By 2030, H&S aims to grow 1,000 differentiated, deep, and durable RELENTLESS FOCUS ON A
Slide 50: The power of the high ground
The power of the high ground C-Level and board placements give us Also give us clear insight into the ability to partner on a leader’s leadership agendas and mandates agenda • Fuels thought leadership • Take rapid action on priorities (HOD) • Drives new use cases and new solutions • Assess and level
Slide 51: How Heidrick supports new executive appointments
How Heidrick supports new executive appointments We work closely with clients to create a transformation roadmap to deliver strategy and a culture to accelerate client outcomes. 1 I G N I TE 2 RE V I E W 3 L AU N CH 4 A CC E LE RATE 5 S U S TAI N • Stakeholder meetings • Assessment for • Talent mapp
Slide 52: Growing our impact and scale in the era of who and how
Growing our impact and scale in the era of who and how C RE ATI N G U NR I VAL E D VALU E F OR C LI E N TS D I F F E RE N TI ATED D E EP D U RA BL E Secure C-Suite & Embed in Client Create Continuous Board Primacy Transformations Engagement By 2030, H&S aims to grow 1,000 differentiated, deep, and d
Slide 53: We focus on human aspects of complex business challenges
We focus on human aspects of complex business challenges MERGERS, NEW EXECUTIVE COST OUT/ BUSINESS ACQUISITIONS AND APPOINTMENT REORGANIZATION TRANSFORMATION SPINOUTS/CARVEOUTS How new CEOs can Why simplicity is the key to Transforming with agility, Navigating top talent integrate quickly and accele
Slide 54: Example: transformation
Example: transformation HOW WE SUPPORT CLIENTS DURING CARVE-OUTS H& S CA PA BI L I TY K EY C L I E N T Q U E STI O NS What is our ideal fit-for-purpose… G O V E R N A N C E • Board Buildout & Advisory to Steward the Organization • Governance Model? A N D • Org Assessment, Benchmarking, & Advisory to
Slide 55: Growing our impact and scale in the era of who and how
Growing our impact and scale in the era of who and how C RE ATI N G U NR I VAL E D VALU E F OR C LI E N TS D I F F E RE N TI ATED D E EP D U RA BL E Secure C-Suite & Embed in Client Create Continuous Board Primacy Transformations Engagement By 2030, H&S aims to grow 1,000 differentiated, deep, and d
Slide 56: Leadership and succession moving from event to always on
Leadership and succession moving from “event” to “always on” FROM TO • Engaging leadership and board in sporadic • Sustained engagement and events transparency • Reacting to sudden leadership gaps • Anticipating and modeling scenarios • Separate “tracks” for strategy and talent • Tight links between
Slide 57: How Heidrick supports talent pipeline & succession planning
How Heidrick supports talent pipeline & succession planning We work closely with clients to create a transformation roadmap to deliver strategy and a culture to accelerate client outcomes. 1 I G N I TE 2 RE V I E W 3 L AU N CH 4 A CC E LE RATE 5 S U S TAI N • Strategic priorities • Assess talent and
Slide 58: Why Heidrick?
Why Heidrick? We serve a We have We meet these We are Our business has large and assembled a needs through increasingly intrinsically growing market world class team competitive and linking these attractive financial powered by and unique differentiated service lines characteristics critical client
Slide 59: Converting client impact into financial returns
Converting client impact into financial returns B E YO N D I M PAC T O N C L I E N T S , A N D O P P O RT U N I T I E S F O R O U R P E O P L E , H E I D R I C K ’ S M O D E L C R E AT E S AT T R AC T I V E , S U STA I N A B L E E CO N O M I C S • Resilience • Revenue diversified across geography, v
Slide 60: Resilient, diversified revenue profile
Resilient, diversified revenue profile Revenue by geography Billings by Revenue by solution September ‘24 YTD vertical September ‘24 YTD area September ‘24 YTD Americas Financial Services Heidrick Search EMEA Industrial Heidrick On-Demand APAC Global Technology and Services Heidrick Consulting Consu
Slide 61: Low revenue concentration
Low revenue concentration BILLINGS CLIENT (trailing 24 % DIVERSIFIED AND COUNT months $M's) BROAD MIX OF CLIENTS • In the past 2 years, only 2 clients have reached 1% of total revenue Top 5 $87 5% o Top 10 represent 8% of billings o Top 100 represent ¼ of billings • 399 unique clients have billed +$
Slide 62: Quarterly optics obscure consistent client behavior
Quarterly optics obscure consistent client behavior Quarterly Revenue Volatility, Q1 2014 to Q3 2024 WHILE CLIENTS MAY PAUSE OR ACCELERATE WORK… 43 • A multi-quarter view smooths this out considerably • Allowing us to plan for talent and cost structures, and • To stay focused on inevitable client re
Slide 63: Economic models creates all weather profit
Economic models creates “all weather” profit Variable cost structure creates durable profit The Company has reported consistent profitability since its 2019 2020 inception $726 • Excluding one-time items, Income before Tax has been positive each of the last $629 twenty years except 2009 $502 • This
Slide 64: Capital-light business model
Capital-light business model MODEST ONGOING CAPITAL NEEDS: • Capex averages between 1 and 2% of revenue • Client payment cycles and bonus timing gives rise to large, positive net working capital balance 64
Slide 65: Clear capital allocation priorities
Clear capital allocation priorities U S E O F C A S H P R I O R I T I Z AT I O N NEAR-TERM: • Still anticipating earnout completions for Atreus and B4Z acquisitions in ’26 LONGER-TERM: • Ample opportunity to invest in the business and return capital to shareholders 65
Slide 66: Multiple drivers of growth and profit
Multiple drivers of growth and profit T H R O U G H - CYC L E O R G A N I C LO N G -T E R M S O LU T I O N A R E A R E V E N U E G R O W T H E B I T DA M A R G I N TA R G E T R A N G E Heidrick Search 4-6% 24-26% Heidrick On-Demand 7-11% 7-9% Heidrick Consulting 8-12% 11-13% C U R R E N T % LT T H R
Slide 67: Opportunities for further acceleration of top and bottom line
Opportunities for further acceleration of top and bottom line OPPORTUNITIES FOR ABOVE-RANGE OPPORTUNITIES FOR ABOVE RANGE REVENU E PERFORMANCE MARGIN EXPANSION • Obviously, macroeconomic favorability • Faster growth enables us to better leverage shared corporate costs • Accelerated client demand for
Slide 68: Why Heidrick?
Why Heidrick? We serve a We have We meet these We are Our business has large and assembled a needs through increasingly intrinsically growing market world class team competitive and linking these attractive financial powered by and unique differentiated service lines characteristics critical client
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