Robert Half Inc. · NYSE:RHI
Robert Half — Robert Half International — J.P. Morgan Ultimate Services Investor Conference 2012
37 slides from Robert Half's conference presentation, November 2012
Slide 1: J.P. Morgan Ultimate Services Investor Conference
J.P. Morgan Ultimate Services Investor Conference Max Messmer, Chairman and CEO Keith Waddell, Vice Chairman, President and CFO © 2012 © 2012 Robert Robert Half Half International International Inc. An Inc.Equal An Equal Opportunity Opportunity Employer. Employer. 1
Slide 2: Company Background
Company Background First and largest staffing firm specializing in accounting and finance positions Founded in 1948 as franchised business In 1986, acquired franchisor with no company operations and began process of acquiring all franchises Opened offices worldwide and launched new professio
Slide 3: Accolades
Accolades #1 in Staffing Industry on FORTUNE® magazine’s “World’s Most Admired Companies” list (March 19, 2012) 2011 Staffing Innovator Award (Staffing Industry Analysts) Listed on FTSE4Good Responsible Investment Index (2008‒2012) Frequently appear on “Best Places to Work” lists worldwide ©
Slide 4: Global Operations
Global Operations More than 400 offices in 22 countries worldwide North America Europe Middle East Asia-Pacific Canada Austria UAE Australia United States Belgium China Czech Republic India South America France Japan Brazil Germany New Zealand Chile Italy Singapore Luxembourg South Korea Netherlands
Slide 5: RHI Global Revenue Mix
RHI Global Revenue Mix 2000 2005 Q3 2012 United States International © 2012 Robert Half International Inc. An Equal Opportunity Employer. 5
Slide 6: RHI International Revenue Mix Q3 2012
RHI International Revenue Mix Q3 2012 Percentage of Global Staffing Revenues 13% Europe 27% 6% Canada 4% Asia-Pac 4% International U.K. © 2012 Robert Half International Inc. An Equal Opportunity Employer. 6
Slide 7: RHI Europe Revenue Mix Q3 2012
RHI Europe Revenue Mix Q3 2012 Percentage of Global Staffing Revenues Germany 5% Europe Belgium 4% 13% France 3% Other 1% © 2012 Robert Half International Inc. An Equal Opportunity Employer. 7
Slide 8: Our Brands
Our Brands Project Management & Deliverables Project Skills Recruiting Specialized Staffing © 2012 Robert Half International Inc. An Equal Opportunity Employer. 8
Slide 9: RHI Business-Segment Revenue Mix
RHI Business-Segment Revenue Mix Q3 2012 Permanent Placement Protiviti Temporary and Consulting © 2012 Robert Half International Inc. An Equal Opportunity Employer. 9
Slide 10: Business Strategy
Business Strategy Value proposition: Only full-time jobs require full-time staff Clients value specialization in professional segments Middle-market accounts are smaller, less price sensitive; clients are demanding, quality is key Internal staff must possess specialized skills Protiviti pr
Slide 11: Unique Client-Driven Delivery Model
Unique Client-Driven Delivery Model Staffing Blended Consulting Global and regional consulting firms that compete with Protiviti lack the flexible resource capabilities of our staffing operations Staffing competitors lack in-house access to consulting methodologies like those of Protiviti We p
Slide 12: 20-Year Revenue History
20-Year Revenue History Compounded Annual Growth 20 years ended 12/31/11 15.6% $3.8B © 2012 Robert Half International Inc. An Equal Opportunity Employer. 12
Slide 13: 20-Year Cash Flow From Operations
20-Year Cash Flow From Operations Compounded Annual Growth 20 years ended 12/31/11 14.3% $256.3M © 2012 Robert Half International Inc. An Equal Opportunity Employer. 13
Slide 14: Return on Equity
Return on Equity 20-Year Average* 17.4% 10-Year Average* 18.3% 5-Year Average* 25.8% *Through Dec. 31, 2011 © 2012 Robert Half International Inc. An Equal Opportunity Employer. 14
Slide 15: Marketing Approach
Marketing Approach Positioned as quality leader through advertising and PR activities National, local email marketing Job board relationships Thought leadership: published content, white papers and salary guides Direct mail, premium brochures and collateral National radio and print advertising Local
Slide 16: Alliances at a Glance
Alliances at a Glance © 2012 Robert Half International Inc. An Equal Opportunity Employer. 16
Slide 17: Social Media: Temporary and Consulting Divisions
Social Media Temporary and Consulting Divisions Our recruiters have extensive networks for candidate referrals and client development Very few companies want to recruit or manage their own temporary employee pools Clients concerned about co-employment and legal risks (benefit plans, insurance, etc.)
Slide 18: Social Media: Permanent Placement Divisions
Social Media Permanent Placement Divisions Our perm recruiters also have extensive networks and use social media platforms as tools to aid in candidate identification Candidate identification only a small portion of full placement process Long lead time involved to convert passive candidate into a n
Slide 19: Social Media: Permanent Placement Divisions
Social Media Permanent Placement Divisions Majority of our candidates still come from referrals, RHI databases and other traditional sources RHI recruiters have proprietary candidate insights through testing, client feedback, human interaction Social media success is not a zero-sum game with recruit
Slide 20: Long-Term Operating Performance Following each of the prior 10 recessions
Long-Term Operating Performance Following each of the prior 10 recessions in our company’s 64-year history, RHI emerged stronger than ever © 2012 Robert Half International Inc. An Equal Opportunity Employer. 20
Slide 21: U.S. Temporary Jobs
U.S. Temporary Jobs (As percentage of total jobs created) Prior U.S. Recovery vs. Current Recovery 13.2% 6.5% Sept 2003 - Mar 2006 Mar 2010 - Sept 2012 Source: BLS and Deutsche Bank © 2012 Robert Half International Inc. An Equal Opportunity Employer. 21
Slide 22: Recovery Comparisons: U.S. Temp Billings vs. Previous Peak
Recovery Comparisons U.S. Temp Billings vs. Previous Peak 110 100 May 2005 Indexed monthly billings per day 90 87.38% September 2012 80 87.12% 70 60 50 *Index is based on monthly billings per day vs. trough billings per day in current 40 TempIndex Temp Index –- Prior Cycle Recession- – PeakPeak in N
Slide 23: Recovery Comparisons: U.S. Temp Billings vs. Previous Trough
Recovery Comparisons 160 August 2005 U.S. Temp Billings vs. Previous Trough 155.72% September 2012 150 152.56% Indexed monthly billings per day 140 130 120 Temp TempIndex Index-–Prior PriorRecession- Cycle Trough in July – Trough 2002 in July 2002 Temp Index -–Current Most Recent Cycle- Recession 11
Slide 24: Recovery Comparisons: U.S. Perm Billings vs. Previous Peak
Recovery Comparisons U.S. Perm Billings vs. Previous Peak 110 Perm Perm Index Index -–Prior PriorRecession- Cycle – Peak 100 Peak in November in November 2000 2000 Perm Index Perm Index –- Current Recession - Most Recent Peak Cycle in March – Peak in2008 March 2008 90 Indexed monthly billings per da
Slide 25: Recovery Comparisons: U.S. Perm Billings vs. Previous Trough
Recovery Comparisons 280 U.S. Perm Billings vs. Previous Trough 260 August 2005 246.37% 240 September 2012 Indexed monthly billings per day 220 234.93% 200 180 160 140 Perm Perm Index Index-–Prior PriorRecession- Cycle – Trough in July 2002 Trough in July 2002 120 Perm Perm Index Index -–Current Rec
Slide 26: Recovery Comparisons
Recovery Comparisons U.S. Staffing Revenues Unemployment Rate (thousands) Q3 2012 $673,424 7.8% Q2 2006 $684,572 4.6% © 2012 Robert Half International Inc. An Equal Opportunity Employer. 26
Slide 27: Temp Gross Margin % (2000‒Q3 2012)
Temp Gross Margin % (2000‒Q3 2012) 37.1% 37.2% 37.0% 36.6% 36.7% 36.5% 36.2% 36.0% 35.8% 35.6% 35.6% 35.2% 34.9% 34.1% 34.1% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1 12 Q2 12 Q3 12 © 2012 Robert Half International Inc. An Equal Opportunity Employer. 27
Slide 28: Staffing SGA % (2000‒Q3 2012)
Staffing SGA % (2000‒Q3 2012) 36.9% 36.1% 34.9% 34.8% 33.6% 33.7% 33.3% 32.8% 32.5% 32.4% 32.4%* 32.3% 32.0% 31.9% 31.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1 12 Q2 12 Q3 12 *Excludes litigation settlement © 2012 Robert Half International Inc. An Equal Opportunity Employer.
Slide 29: Staffing Operating Income % (2000‒Q3 2012)
Staffing Operating Income % (2000‒Q3 2012) 11.0% 11.2% 11.2% 10.3% 10.1% 9.7%* 9.7% 9.0% 7.9% 7.3% 7.3% 4.5% 3.7% 2.2% 2.2% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1 12 Q2 12 Q3 12 *Excludes litigation settlement © 2012 Robert Half International Inc. An Equal Opportunity Employe
Slide 30: Strong Financial Position
Strong Financial Position As of 09/30/2012 Cash $289 million Total assets $1.4 billion Virtually no debt © 2012 Robert Half International Inc. An Equal Opportunity Employer. 30
Slide 31: Cash Returned to Shareholders
Cash Returned to Shareholders ($ Millions) 1 Year* 5 Years* Dividends $80 $363 Share Repurchases 142 948 Total $222 $1,311 Free Cash Flow $193** $1,171** *Through Dec. 31, 2011 **Cash flow from operations net of cash used for investing activities © 2012 Robert Half International Inc. An Equal Opport
Slide 32: Robert Half Quarterly Dividend History Since Inception
Robert Half Quarterly Dividend History Since Inception © 2012 Robert Half International Inc. An Equal Opportunity Employer. 32
Slide 33: Share Count Reduction
Share Count Reduction (Millions) Shares Outstanding 2006 167.8 2007 158.1 2008 150.9 2009 148.6 2010 146.2 2011 142.1 5-Year Reduction 25.7 % Reduction 15% © 2012 Robert Half International Inc. An Equal Opportunity Employer. 33
Slide 34: Market Opportunity—Staffing Services
Market Opportunity—Staffing Services Annual global revenues for staffing industry approximately $300B USD • Professional segments less developed • High potential in IT staffing as well as accounting, other skilled specialties: IT staffing market is 3-4 times larger than accounting Employment service
Slide 35: Market Opportunity—Protiviti
Market Opportunity—Protiviti Solid base of recurring internal audit and financial controls demand Growing suite of consulting services • Technology privacy, security and controls • Financial services industry Protiviti/staffing blended solutions © 2012 Robert Half International Inc. An Equal Opportu
Slide 36: Summary
Summary High demand for professional staffing; skill shortages High number of U.S. job openings in professional/ business services (BLS JOLTS report, Nov. 6, 2012) Growth in temporary jobs during this recovery has outpaced prior U.S. recovery © 2012 Robert Half International Inc. An Equal Oppo
Slide 37: Thank You
Thank You © 2012 © 2012 Robert Robert Half Half International International Inc. An Inc.Equal An Equal Opportunity Opportunity Employer. Employer. 37
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