Randstad Nv · EURONEXT:RAND
Randstad Nv — Shareholder Meeting (March 2011)
38 slides from Randstad Nv's shareholder meeting presentation, Mar 31, 2011
Slide 1: Annual general meeting of shareholders 2011
annual general meeting of shareholders 2011 executive board & supervisory board Randstad Holding nv March 31, 2011
Slide 2: Disclaimer & definitions
disclaimer & definitions Certain statements in this document comprise forecasts on Randstad Holding’s future financial condition and results from operations and certain plans and goals. By their nature, such forecasts generate risk and uncertainty because they concern events in the future and depend
Slide 3: Agenda
agenda 1 opening 2 a report of the executive board and preceding advice of the supervisory board for the financial year 2010 b proposal to adopt the 2010 financial statements c explanation of policy on reserves and dividends d proposal to determine the dividend over the financial year 2010 3 a disch
Slide 4: 2a. Report of the executive board: strategy and operational performance
2a. report of the executive board and preceding advice of the supervisory board for the financial year 2010 strategy and operational performance Ben Noteboom CEO and chairman of the executive board 4 March 31, 2011 annual general meeting of shareholders 2011
Slide 5: €272 billion market
€ 272 billion market executive search: € 8 billion revenue (top-level head hunting) professionals & recruitment: € 70 billion Randstad € 2.6 billion revenue staffing: € 194 billion Randstad € 11.6 billion revenue Randstad; € 14.2 billion revenue in 2010 Structural growth market 5% global market shar
Slide 6: Growth drivers & strategy, targets
growth drivers & strategy strong concepts need for flexibility best people demographics excellent execution deregulation superior brands clients looking for total offering - EBITA margin of 5 to 6% through the cycle, not below 4% in normal downturn targets - mid-term EBITA margins of 4 to 5% for inh
Slide 7: Strong market trends persist
strong market trends persist quarterly market growth (YoY) • market growth on average strong despite more difficult comparables • continued high growth in industrial segments 2008 2009 2010 • steady improvement in lagging markets such as NL quarterly Randstad growth* (YoY) and UK • administrative an
Slide 8: FY 2010: good performance in a strong year
FY 2010: good performance in a strong year • strong growth trend during the year - from a growth rate* of -1% in Q1 to +17% in Q4 - market share gains in almost all regions - gap with the market in France closed in September and outperforming in Q4 - NL behind market • implementation of professional
Slide 9: Revenue split 2010, France leading
revenue split 2010, France leading geographical area sectors NL France 7% 20% Germany 13% 18% Belgium/Lux. 5% 14% 68% UK 6% 22% Iberia 6% ROE 9% 12% N-America ROW staffing inhouse professionals 9 March 31, 2011 annual general meeting of shareholders 2011
Slide 10: EBITA breakdown by geography spread significantly improved
EBITA breakdown by geography spread significantly improved 2010 2009 NL 2% 11% 6% -1% NL 4% France 3% 2% 34% France Germany 3% 1% Germany Belgium/Lux. 15% 11% Belgium/Lux. UK UK 55% Iberia Iberia ROE 14% 19% ROE N-America 16% N-America 3% ROW ROW 10 March 31, 2011 annual general meeting of sharehold
Slide 11: Execution of the field steering concept
execution of the field steering concept Randstad excl. FujiStaff 40% 160 outlets FTE 30% 140 revenue 20% 120 GP/FTE 10% 100 0% 80 -10% 60 -20% 40 -30% 20 -40% - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (YoY growth) 2009 2010 (index productivity) Q1 2009 = 100 • field steering enables us to quickly adapt capacity whe
Slide 12: 2a. Report of the executive board: financial information
2a. report of the executive board and preceding advice of the supervisory board for the financial year 2010 financial information Robert-Jan van de Kraats CFO and vice-chairman of the executive board 12 March 31, 2011 annual general meeting of shareholders 2011
Slide 13: FY 2010: good performance in a strong year
FY 2010: good performance in a strong year • classical recovery pattern resulting in strong revenue growth • strong operating leverage - gross profit up 7% organically - OPEX up 1% organically - 80% incremental conversion • moving average DSO improved by 3 days to 55 days • strong cash generation: F
Slide 14: Randstad revenue development through the year
Randstad revenue development* through the year early movers in the recovery 50% Germany 40% • early moving regions confirm 30% US Professionals classical pattern of the recovery 20% US Staffing and 10% Inhouse • time gap narrowed Services 0% -10% • solid growth throughout the year -20% -30% Oct Dec
Slide 15: Income statement FY 2010
income statement FY 2010 € million FY 2010 FY 2009 % change % organic revenue 14,179 12,400 14% 12% gross profit 2,659 2,414 10% 7% gross margin 18.8% 19.5% operating expenses* 2149 2098 2% 1% opex as % of revenue 15.2% 16.9% underlying EBITA 510 316 61% 39% underlying EBITA margin 3.6% 2.5% one-off
Slide 16: Geographic performance 2010
geographic performance 2010 revenue EBITA margin € million 2010 2009 organic growth 2010 2009 the Netherlands 2,827 2,963 -4% 6.4% 6.8% France 3,067 2,692 15% 2.9% 0.4% Germany 1,729 1,321 31% 6.2% 4.2% Belgium/Lux 1,328 1,191 11% 4.7% 4.4% United Kingdom 802 753 3% 0.8% 0.8% Iberia 861 796 8% 2.1%
Slide 17: Consolidated balance sheet
consolidated balance sheet € million December 31, 2010 December 31, 2009 property, plant & equipment 156 151 intangible assets 3,162 3,158 deferred tax assets 520 465 financial assets & associates 76 83 current assets 3,125 2,601 total equity 2,852 2,493 non-current liabilities 1,689 1,865 current l
Slide 18: Consolidated cash flow statement
consolidated cash flow statement € million 2010 2009 cash flow from operations before OWC 463 434 release (usage) of OWC -/- 94 309 additions of PPE and software -/- 61 -/- 48 financial receivables 1 2 held-to-maturity investments -/- 6 -/- 9 disposals of PPE 5 10 free cash flow 309 698 € million 20
Slide 19: Leverage ratio within target range
leverage ratio within target range net debt & leverage ratio development 1200 3 net debt (€ m) leverage ratio (rhs) 1100 2.5 1000 2 900 strategic target 1.5 800 1 700 600 0.5 500 0 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 • net debt & leverage ratio significantly reduced in 2010 based on solid profit
Slide 20: Sustainability at the core of our business
sustainability at the core of our business 1 since 1960 Randstad has been playing a key role in society: • finding suitable jobs for our candidates and providing flexibilty and agility to our clients • assisting candidates to find a job who didn’t have one before • temporary work serves as a steppin
Slide 21: Sustainability at the core of our business
sustainability at the core of our business 2 we constantly pursue improvement of our reporting on sustainability • strong enlargement of country- and FTE coverage in recent years • reporting based on a subset of GRI indicators which are relevant for HR Services • gradual improvement on quantitative
Slide 22: 2c. Explanation of policy on reserves and dividends
2c. explanation of policy 1 on reserves and dividends • aiming at consistent dividend growth through the cycle • aiming at a floor in the dividend of € 1.25 objective • if earnings capacity and the financing policy allow for it • flexible pay out ratio • indicative range: minimum pay out 30% - maxim
Slide 23: 2c. Explanation of policy on reserves and dividends
2c. explanation of policy on reserves and dividends proposal to pay dividend of € 0.284 per cumulative preferred share B (2009 € 0.284) • relatively low amount (€ 7.2 million) • cumulative character 23 March 31, 2011 annual general meeting of shareholders 2011
Slide 24: Executive board remuneration
executive board remuneration • remuneration policy approved by AGM in 2007 • no changes despite different profile of Randstad • no increase base salaries executive board since 1 January 2008 • 2010 benchmark review Towers Watson • 10% base salary increase in line with remuneration policy & based on
Slide 25: Q&A
Q&A 25 March 31, 2011 annual general meeting of shareholders 2011
Slide 26: 2b. Proposal to adopt the 2010 financial statements
2b. proposal to adopt the 2010 financial statements 26 March 31, 2011 annual general meeting of shareholders 2011
Slide 27: 2d. Proposal to determine the dividend over the financial year 2010
2d. proposal to determine the dividend over the financial year 2010 dividend proposal: • € 1.18 on ordinary shares (2009: € 0.00) • € 0.284 on cumulative preferred shares (2009: € 0.284) 27 March 31, 2011 annual general meeting of shareholders 2011
Slide 28: 3a. Discharge of liability of the executive board
3a. discharge of liability of the members of the executive board for the management 28 March 31, 2011 annual general meeting of shareholders 2011
Slide 29: 3b. Discharge of liability of the supervisory board
3b. discharge of liability of the members of the supervisory board for the supervision of the management 29 March 31, 2011 annual general meeting of shareholders 2011
Slide 30: 4a. Proposal to reappoint Mr. Fröhlich to the supervisory board
4a. proposal to reappoint Mr. Fröhlich as member of the supervisory board • German nationality • member of the board since 2003 • chairman since 2004 • reappointment for a period of 4 years (2015) • third and last term of 4 years 30 March 31, 2011 annual general meeting of shareholders 2011
Slide 31: 4b. Proposal to appoint Mr. Winter to the supervisory board
4b. proposal to appoint Mr. Winter as member of the supervisory board • Dutch nationality • nominated on behalf of Randstad Beheer • appointment for a period of 4 years (2015) • first term of 4 years 31 March 31, 2011 annual general meeting of shareholders 2011
Slide 32: 5a. Authority of the executive board to issue shares
5a. proposal to extend the authority of the executive board to issue shares background: • valid for a period of 18 months (September 30, 2012) • approval by the supervisory board • actual yearly allocation of performance shares and options not more than 1% • yearly maximum authorisation of 3% of the
Slide 33: 5b. Authority to restrict or exclude pre-emptive rights
5b. proposal to extend the authority of the executive board to restrict or exclude the pre-emptive right to any issue of shares background: • valid for a period of 18 months (September 30, 2012) • approval by the supervisory board • yearly maximum authorisation of 3% of the issued capital in the for
Slide 34: 6. Reappoint PricewaterhouseCoopers as external auditor
6. proposal to reappoint PricewaterhouseCoopers as external auditor for the financial years 2011 and 2012 34 March 31, 2011 annual general meeting of shareholders 2011
Slide 35: 7. Proposal to amend the articles of association
7. proposal to amend the articles of association of Randstad Holding nv • full proposal on corporate website • EC directive on shareholders’ rights amendments: • formal changes with regard to (notice of) AGM • threshold of 3% to put items on the AGM agenda: - continuous open dialogue with shareholde
Slide 36: 8. Remuneration supervisory board
8. remuneration supervisory board • remuneration approved by AGM in 2007 • fixed annual payment • no changes despite different profile of Randstad • 2010 benchmark Towers Watson • proposal to increase committee fees • attendance fee: € 1,500 per meeting (only for cross border travel) remuneration su
Slide 37: 9. Any other business
9. any other business 37 March 31, 2011 annual general meeting of shareholders 2011
Slide 38: 10. Closing
10. closing 38 March 31, 2011 annual general meeting of shareholders 2011