Slide 1: 3rd quarter results 2023
3rd quarter results 2023. Q3 2023: strong adaptability in a challenging environment. Sander van ‘t Noordende, CEO Jorge Vazquez, CFO
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: Q3 2023: strong adaptability in a challenging environment
Q3 2023: strong adaptability in a challenging environment. summary key financials focus continued challenging conditions revenue -7.3% YoY perform and progress strong adaptability across markets gross margin 20.6% Randstad Digital highly diversified portfolio EBITA € 273m, 4.4% margin CMD 2023 © Ran
Slide 7: North America: tough economic conditions continued, sound margin protection
north america: tough economic conditions continued, sound margin protection. organic revenue growth YoY, last two quarters* ● us: continued soft demand across sectors ● canada: similar trends as in the US ● profitability: focused opex steering EBITA margin (underlying)** * YoY organic change is meas
Slide 8: Northern Europe: mixed growth trends, sound profitability
northern europe: mixed growth trends, sound profitability. organic revenue growth YoY, last two quarters* ● NL: good profitability & adaptability ● germany: strong perm growth, improved profitability ● belgium: sound margin protection ● other NE countries: mixed results in challenging conditions EBI
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: growth in professionals partly offset decline in staffing & inhouse and perm; disciplined cost control ● italy: excellent profitability, focus on growth ● spa
Slide 10: Asia Pacific: modest growth and solid profitability
asia pacific: modest growth and solid profitability. organic revenue growth YoY, last two quarters* ● japan: solid growth ● australia & new zealand: softening demand ● india: solid growth, focus on quality of portfolio EBITA margin (underlying)** * YoY organic change is measured excluding the impact
Slide 11: Global businesses: challenging economic conditions, continued adaptation
global businesses: challenging economic conditions, continued adaptation. organic revenue growth YoY, last two quarters* ● enterprise solutions: RPO business impacted by economic slowdown; growth in outplacement ● monster: demand impacted by economic slowdown EBITA margin (underlying)** * YoY organi
Slide 12: Financial results & outlook
financial results & outlook. © Randstad 2023 | 12
Slide 13: Q3 2023: strong adaptability in a challenging environment
Q3 2023: strong adaptability in a challenging environment. performance key financials € million Q3 ’23 Q3 ’22 % org. revenue 6,260 7,054 -7% gross profit 1,293 1,481 -10% gross margin 20.6% 21.0% operating expenses* 1,020 1,145 -8% • organic revenue down 7.3% YoY opex % 16.3% 16.2% • Europe, APAC &
Slide 14: Gross margin impacted by mix and pricing
gross margin impacted by mix and pricing. Q3 gross margin development YoY highlights • temp margin +10bp YoY • perm fees -20 bp YoY • HRS/other -30 bp YoY, mainly reflecting decline in RPO, growth in outplacement © Randstad 2023 | 14
Slide 15: Strong adaptability
strong adaptability. Q3 sequential opex bridge (€m) ongoing field steering • opex down 4% QoQ (down 8% YoY) • personnel expenses down 5% QoQ • Q3 recovery ratio 61% © Randstad 2023 | 15
Slide 16: Solid free cash flow & sound balance sheet
solid free cash flow & sound balance sheet. Q3 free cash flow sound balance sheet • Q3 FCF € 297m (up € 40m YoY) • net debt € 419m excl. lease liabilities • countercyclical working capital • leverage ratio excl. lease liabilities: 0.3 • DSO 53.4, up 0.9 days vs Q3 2022 • update on SBB of € 400m: • s
Slide 17: Outlook: continued focus on value
outlook: continued focus on value. Q4 2023 outlook momentum early October • gross margin expected to be broadly in line QoQ • trends similar to Q3 2023 • operating expenses expected to be broadly in • continued challenging conditions line QoQ • the YoY growth rate of employees • negative 0.5 working
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 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 North America 1,120 1,070 1,176 1,193 1,216 the Netherlands 605 608 609 613 621 Germany 522 525 533 516 521 Belgium & Luxembourg 300 308 329 331 337 Other Northern Europe countries 313 310 322 325 326 Northern Europe 1,740 1,75
Slide 21: Corporate staff by region
corporate staff by region. average Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 North America 6,440 6,460 6,780 7,150 7,230 the Netherlands 3,780 3,910 4,030 4,110 4,180 Germany 2,450 2,630 2,740 2,860 2,940 Belgium & Luxembourg 2,220 2,230 2,250 2,380 2,450 Other Northern Europe countries 2,330 2,360 2,
Slide 22: Number of employees working on a temporary basis by region
number of employees working on a temporary basis by region. average Q3 2023 Q3 2022 North America 70,600 90,100 the Netherlands 51,000 63,200 Germany 29,700 37,400 Belgium & Luxembourg 40,900 45,700 Other Northern Europe countries 36,200 36,900 Northern Europe 157,800 183,300 France 80,500 87,500 It
Slide 23: Randstad - human forward
randstad human forward. VM