Slide 1: 3rd quarter 2020 results
3rd quarter 2020 results. recovery continues, resilient and competitive performance. Jacques van den Broek, CEO Henry Schirmer, CFO Randstad N.V. 21 October 2020
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 appendices 19 © Randstad 2020 | 4
Slide 5: Performance moving forward
performance moving forward. © Randstad 2020 | 5
Slide 6: Recovery continues, resilient and competitive performance
recovery continues, resilient and competitive performance. highlights resilience & agility Q3 key financials significant topline recovery strong result in NAM & ROW organic growth -13.1% returning 140k people to work #newways growth initiative EBITA € 199m, RR 53% Randstad’s 60th anniversary acceler
Slide 7: North America and France
north america france very solid performance. rebounding through the quarter. ● revenue down 10% (Q2: down 18%) ● revenue down 16% (Q2: down 41%) ○ perm down 33% (Q2: down 49%) ○ perm down 20% (Q2: down 52%) ● US Staffing & Inhouse revenue down 9% (Q2: down 23%) ● Staffing & Inhouse down 14% (Q2: dow
Slide 8: The Netherlands and Germany
the netherlands germany sound profitability maintained. industrial sectors recovering. ● revenue down 17% (Q2: down 24%) ● revenue down 21% (Q2: down 31%) ○ perm down 43% (Q2: down 51%) ● Staffing & Inhouse down 23% (Q2: down 37%) ● Staffing & Inhouse down 19% (Q2: down 28%) ● Professionals down 14%
Slide 9: Belgium and Italy
belgium italy diversified market leadership. rapid recovery. ● revenue down 12% (Q2: down 29%) ● revenue down 10% (Q2: down 30%) ○ Professionals down 9% (Q2: down 9%) ○ perm down 24% (Q2: down 52%) ● EBITA margin at 5.9% vs. 6.2% LY ● EBITA margin at 5.4% vs. 5.9% LY ○ diversified portfolio contribu
Slide 10: Iberia and other European countries
iberia other european countries topline momentum improving. mixed trends. ● spain revenue down 16% (Q2: down 37%) ● UK revenue down 23% (Q2: down 31%) ● portugal revenue down 13% (Q2: down 25%) ● nordics down 15% (Q2: down 21%) ● EBITA margin at 4.3% vs. 5.7% LY ● switzerland down 4% (Q2: down 5%) ●
Slide 11: Rest of the world and global businesses
rest of the world global businesses highly resilient performance. reskilling initiatives paying off. ● japan down 3% (Q2: down 2%) ● global businesses down 17% (Q2: down 25%) ● australia & new zealand down 5% (Q2: down 6%) ● monster revenue down 29% (Q2: down 31%) ● india up 5% (Q2: up 9%) ● sourcer
Slide 12: Financial results & outlook
financial results & outlook. © Randstad 2020 | 12
Slide 13: Q3 2020 recovery continues, competitive performance
Q3 2020 recovery continues, competitive performance. Q3 performance Q3 key financials € million Q3 ’20 Q3 ’19 % org. revenue 5,174 6,006 (13)% gross profit 980 1,204 (18)% • organic revenue down 13%, improving gross margin 18.9% 20.1% momentum throughout the quarter operating expenses* 781 906 (12)%
Slide 14: Q3 2020 gross margin impacted by mix, stable pricing
Q3 2020 gross margin impacted by mix, stable pricing. Q3 gross margin development YoY Q3 highlights • temp margin -30bp YoY, impacted by COVID-19 and Inhouse recovery • perm fees declined 34% YoY, -60bp mix impact on gross margin • HRS/other -30bp YoY, impacted by mix effects and FX © Randstad 2020
Slide 15: Utilizing the flexibility of our cost base
utilizing the flexibility of our cost base. Q3 sequential opex bridge tapping into the flexibility of the cost base • radical focus on growth and resource allocation • cost optimization program of € 120m on track • government employment protection schemes unwinding • safeguarding future fit investme
Slide 16: Balance sheet further strengthened
balance sheet further strengthened. strong FCF generation in Q3 2020 sound balance sheet • Q3 FCF € 494m (vs. € 468m in Q3 2019) • strong liquidity and solvency • positive impact of CICE collection (€ 360m) • net cash € 212m excluding lease liabilities offsetting lower EBITA impact • leverage ratio
Slide 17: Conclusion and outlook: navigating through volatile times
conclusion and outlook: navigating through volatile times. September/October activity Q3 conclusion and outlook momentum vs Q3 NAM FR • September exit rate -11%, positive NL momentum continues into early October GER BEL • expected Q4 recovery ratio of 40-50% IBE IT • well-positioned to capture futur
Slide 18: Questions & answers
questions & answers. © Randstad 2020 | 18
Slide 19: Appendices
appendices randstad. © Randstad 2020 | 19
Slide 20: Outlets by region
outlets by region. end of period Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 North America 1,130 1,106 1,136 1,153 1,152 France 643 643 649 640 635 the Netherlands 603 603 647 653 661 Germany 487 489 487 582 577 Belgium & Luxembourg 329 325 328 327 334 Italy 263 262 262 259 259 Iberia 384 388 388 382 37
Slide 21: Corporate staff by region
corporate staff by region. average Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 North America 5,660 5,680 5,880 5,830 5,660 France 4,090 3,460 4,610 4,690 4,640 the Netherlands 3,640 3,740 3,970 4,090 4,180 Germany 2,140 2,170 2,590 2,640 2,680 Belgium & Luxembourg 1,820 1,460 1,940 2,040 2,120 Italy 1,9
Slide 22: Staffing employees by region
staffing employees by region. average Q3 2020 Q3 2019 North America 81,700 93,000 France 70,300 89,800 the Netherlands 59,300 74,600 Germany 29,900 39,800 Belgium & Luxembourg 43,700 49,800 Italy 42,900 50,400 Iberia 53,800 66,700 Other European countries 52,700 59,600 Rest of the world 120,300 118,
Slide 23: eaesle
eaesle human forward MW