Robert Walters Plc · LSE:RWA
Robert Walters — FY2021 Earnings Presentation
40 slides from Robert Walters's earnings presentation, Mar 8, 2022
Slide 1: Full-year results
Full-year results Robert Walters Plc 08 March 2022
Slide 2: Our strategy and mission
Full-year results About us Our strategy The Group’s strategy for growth is centred on organic international expansion and discipline diversification, ensuring a balanced footprint covering mature and developing markets. International expansion Driving growth through expansion into new geographic loc
Slide 3: Our brands
Full-year results About us Our brands Specialist professional Specialist staffing Recruitment process recruitment outsourcing Robert Walters recruits specialists Walters People is the staffing specialist Resource Solutions is a market for permanent, contract and interim for tomorrow’s working world
Slide 4: Financial review
Full-year results Financial review 4
Slide 5: Group highlights
Full-year results Group highlights Group performance Net fee income up 17% (21%*) to £353.6m (2020: £302.4m) Operating profit up 265% (285%*) to £54.1m (2020: £14.8m) Profit before taxation up 315% (339%*) to £50.2m (2020: £12.1m) Consultant productivity increased by 20% year-on-year Group
Slide 6: Consolidated income statement and financial review
Full-year results Consolidated income statement and financial review 12 months to 12 months to % Change £ % Change 31 Dec 2021 31 Dec 2020 (constant currency*) Revenue1 970.7m 938.4m 3% 6% Gross profit (net fee income)2 353.6m 302.4m 17% 21% Operating profit 54.1m 14.8m 265% 285% Interest and foreig
Slide 7: Summary of Group balance sheet
Full-year results Summary of Group balance sheet As at As at £m 31 Dec 2021 31 Dec 2020 Goodwill 8.1 8.0 Tangible assets and computer software 25.6 19.3 Right-of-use asset 62.6 59.5 96.3 86.8 Receivables 190.4 153.0 Payables and provisions (176.7) (173.8) Lease liabilities (66.4) (63.8) 43.6 2.2 Cur
Slide 8: Summary of cash flow
Full-year results Summary of cash flow 12 months to 12 months to £m 31 Dec 2021 31 Dec 2020 Operating profit 54.1 14.8 Depreciation and amortisation and impairment 20.2 25.5 Share-based payments and other non-cash items 2.3 2.2 Unrealised foreign exchange (loss) gain (0.3) 1.2 Working capital moveme
Slide 9: Regional analysis (net fee income)
Full-year results Regional analysis (net fee income) 12 months to 31 Dec 2021 12 months to 31 Dec 2020 19% 22% UK (£68.7m) UK (£66.9m) 47% 41% Asia Pacific Asia Pacific (£164.2m) (£124.1m) 27% 28% 7% Europe (£95.3m) 9% Europe (£85.7m) Other International Other International (£25.4m) (£25.7m) 9
Slide 10: Net fee income by geography
Full-year results Net fee income by geography Asia Pacific 6% UK 79% (47% of Group NFI) 9% 32% (19% of Group NFI) 21% Japan 2020: 34% London 2020: 81% Australia 2020: 20% Regions 2020: 19% Greater China 2020: 16% 15% Other 2020: 16% New Zealand 2020: 8% Singapore 2020: 6% 18% 20% Europe 6% Other Int
Slide 11: Net fee income by discipline
Full-year results Net fee income by discipline 3% 3% 3% 4% Commerce Finance 2020: 36% IT 2020: 23% 33% Sales and Marketing 2020: 11% 5% Banking Finance 2020: 11% Legal 2020: 4% Engineering and Construction 2020: 4% Support 2020: 4% 6% Procurement 2020: 4% HR 2020: 3% Other 2020: 0% 11% 11% 21% 11
Slide 12: Track record of growth
Full-year results Track record of growth Net fee income 2007 - 2021 450,000 400,000 350,000 300,000 250,000 £000's 200,000 150,000 100,000 50,000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Operating Profit 2007 - 2021 60,000 50,000 40,000 £000's 30,000 20,000 10,000
Slide 13: Track record of growth: dividends and EPS
Full-year results Track record of growth Dividend Payments 2007 - 2021 25.00 20.00 15.00 Pences 10.00 5.00 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Earnings per share 2007 - 2021 60.00 50.00 40.00 Pences 30.00 20.00 10.00 0.00 2007 2008 2009 2010 2011 2012 2013
Slide 14: Operations review
Full-year results Operations review 14
Slide 15: Operational management team
Full-year results Operational management team 37* 20* Robert Walters Alan Bannatyne Group CEO Chief Financial Officer 22* 15* Toby Fowlston Norma Gillespie CEO, RW & WP CEO, RS 22* 17* 13* 19* 13* 23* 1* Chris Hickey Rob Vermaak Marco Laveda James Dave Barr Kristen Kristin CEO, UKI, CEO, Benelux, CE
Slide 16: Asia Pacific (47% of net fee income)
Full-year results Asia Pacific (47% of net fee income) Asia Pacific Permanent/contract 26% Net fee income: £164.2m (2020: £124.1m) recruitment Contract 2020: 31% Operating profit: £36.5m (2020: £8.4m) 74% Permanent 2020: 69% Locations: Australia New Zealand Hong Kong Philippines India Singapore
Slide 17: Japan and South Korea
Full-year results Asia Pacific Japan and South Korea Japan The Group’s most profitable business – clear market leader in bilingual professional recruitment Record year. Operating profit increased by 138%* year-on-year despite several Covid ‘States of Emergency’ being declared throughout the year
Slide 18: Australia and New Zealand
Full-year results Asia Pacific Australia and New Zealand Australia Region’s second largest and second most profitable business Net fee income increased by 33%* and operating profit by 423%* year-on-year Acute talent and skills shortages across technology, financial services, sales, legal and b
Slide 19: Greater China and South East Asia
Full-year results Asia Pacific Greater China and South East Asia Unrivalled footprint – including some of the world’s fastest growing emerging recruitment markets. Strong platform for long-term growth Greater China Hong Kong bounced back well from socio-economic and Covid impacted 2020. Net fee in
Slide 20: Europe (27% of net fee income)
Full-year results Europe (27% of net fee income) Europe Permanent/contract/interim 21% Net fee income: £95.3m (2020: £85.7m) recruitment Interim 2020: 23% Operating profit: £13.7m (2020: £4.7m) 56% Permanent 2020: 50% Locations: Benelux France 23% Contract Germany 2020: 27% Ireland Poland Portug
Slide 21: Europe
Full-year results Europe Strong performance across region. Six out of eight markets more than doubled operating profit year-on-year Blend of permanent, contract and interim recruitment solutions continues to be a key competitive advantage allowing us to service diverse client requirements Mark
Slide 22: UK (19% of net fee income)
Full-year results UK (19% of net fee income) UK Permanent/contract Net fee income: £68.7m (2020: £66.9m) recruitment 24% Contract 2020: 36% Operating profit: £3.3m (2020: £1.3m) 76% Permanent 2020: 64% Locations: Birmingham Bracknell London Manchester Milton Keynes St Albans Recruitment net fee
Slide 23: UK
Full-year results UK Broad based growth – permanent and contract across London and the regions Both a release of pent-up candidate and client demand from 2020 and a more general increase in both candidate and client confidence All disciplines bounced back strongly after a tough 2020 with comme
Slide 24: Other International (7% of net fee income)
Full-year results Other International (7% of net fee income) Other International Permanent/contract Net fee income: £25.4m (2020: £25.7m) recruitment Operating profit: £0.6m (2020: £0.4m) 100% Permanent 2020: 100% Locations: Brazil Canada Chile Mexico Middle East South Africa US Recruitment net
Slide 25: Americas, South Africa, Middle East
Full-year results Other International Americas South Africa New business in Chile continues to perform well, Business delivered a solid performance despite despite Covid, growing net fee income by over 70%* significant Covid waves during the period year-on-year Expect pipeline of qualified can
Slide 26: Core product propositions
Full-year results Resource Solutions Core product propositions RPO (Recruitment Process Non-permanent workforce Advisory Outsourcing) solutions Delivering the functionality of an in-house Helping our clients build a balanced, Our consulting services are delivered recruitment team. Our services are d
Slide 27: Resource Solutions
Full-year results Resource Solutions UK business saw a single-digit decline in net fee income due to the lag effect of clients re-hiring on-site teams following a prolonged period of restructures and hiring freezes Activity levels increased in the second half and we expect this to continue throu
Slide 28: Powering people and organisations to fulfil their unique potential
Full-year results ESG Our strategy is based upon three strategic pillars which align to ESG and are underpinned by our purpose Protecting the planet Powering people potential Responsible business ENVIRONMENT SOCIAL GOVERNANCE The Group has been offsetting the Helped over 43,500 candidates and ov
Slide 29: Timeline to 2030 - our commitments to act
Full-year results ESG Timeline to 2030 - our commitments to act: We have committed to reducing our global carbon emissions by 30% per head by the end of 2030*. Ambition of targets will be kept under constant review Appointed Sillion, a market leading ESG consultancy, as the Group’s ESG strategic
Slide 30: ESG Awards and Accreditations
Full-year results ESG Awards and Accreditations We were named as a finalist in the ESG Reporting Awards 2021 We were awarded Highly Commended in the global Reuters alongside major brands such as NatWest Group, RWE and Philip Responsible Business Awards Product or Service Innovation Morris Internatio
Slide 31: Developing our People
Full-year results Developing our People 288 74 786 70 Leadership, coaching & Languages spoken by our Internal promotions across Nationalities represented training sessions delivered employees the Group in 2021 across the Group 55% female Awards Head of Learning & Development We have appointed Louise
Slide 32: Equality, Diversity & Inclusion
Full-year results Equality, Diversity & Inclusion Working in partnership to achieve our goals In 2021, the Group appointed Vercida Consulting, leading inclusion management experts, as its global ED&I strategic partner, to support us in driving forward our ED&I change agenda. This year we delivered a
Slide 33: Telling our ESG story
Full-year results Telling our ESG story We partnered with She Codes to create the Our three businesses shared content We leveraged key environmental first-ever International Women’s Day celebrating LGBTQ+ Pride and hosted a awareness days to showcase our long- Coding Challenge, encouraging women to
Slide 34: Protecting our culture and ensuring wellbeing through communication
Full-year results Protecting our culture and ensuring wellbeing through communication Communication – honest, transparent, two-way and real-time Highlights Frequent all-hands video updates and Q&As across regions and functions Workplace from Meta in place globally since 2018 Global Employee En
Slide 35: Brand-building and market share
Full-year results Brand-building and market share Providing value-added commentary, thought leadership, best practice guides, webinars, podcasts and digital events to keep key stakeholders informed on market and recruitment trends to help our candidates and clients navigate the ‘new normal’: Podcast
Slide 36: Technology & Transformation
Full-year results Technology & Transformation As a business with innovation embedded at its core, being at the cutting edge of technological change has paid dividends in terms of our readiness to face the continued and unique challenges presented to us whilst realising strong commercial benefits Mad
Slide 37: Innovation
Full-year results Innovation Recognised Thought Digital Engagement Advisory Services Leaders With ever growing changes to how we Expansion The ongoing success of Advisory services communicate, our teams have responded by delivering bite-size media solutions for The planned expansion of our Advisory
Slide 38: Supporting the communities where we work
Full-year results Corporate Responsibility Supporting the communities where we work 38
Slide 39: Our recent awards
Full-year results Awards Our recent awards UK SEA Group Resource Solutions Middle East France Japan South Korea 39
Slide 40: Outlook
Full-year results Outlook “The jobs market is strong, wage inflation is increasing everywhere and candidate and client confidence is high. We are however mindful of the macro-economic and political uncertainties that do exist. To date, early 2022 trading is in line with Board expectations.” 40