Slide 1: 2nd quarter results 2022: record revenue & continued margin expansion
2nd quarter results 2022. record revenue & continued margin expansion. Sander van ‘t Noordende, CEO Henry Schirmer, CFO 26 July 2022 | Randstad N.V.
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 2022 | 4
Slide 5: Performance
performance. © Randstad 2022 | 5
Slide 6: Q2 2022: record revenue & strong margin expansion
Q2 2022: record revenue & strong margin expansion. highlights Q2 key financials focus & adaptability strong demand & talent scarcity revenue +9.1% YoY unique market dynamics continued portfolio diversification gross margin 21.2%, +170bp YoY strategic talent partner and targeted investments EBITA € 3
Slide 7: North America strong performance; France
north america france strong performance. solid quarter, led by business mix. ● revenue up 10% (Q1: up 13%) ● revenue up 7% (Q1: up 12%) ○ perm up 46% (Q1: up 87%) ○ perm up 20% (Q1: up 18%) ● US Staffing & Inhouse revenue up 8% (Q1: up 9%) ● Staffing & Inhouse up 5% (Q1: up 11%) ● US Professionals r
Slide 8: The Netherlands resilient performance; Germany
the netherlands germany resilient performance. modest growth, improving margin. ● revenue up 1% YoY (Q1: up 13%) ● revenue up 4% (Q1: up 12%) ○ perm up 65% YoY (Q1: up 55%) ○ perm up 52% YoY (Q1: up 83%) ● Staffing & Inhouse down 1% (Q1: up 14%) ● Staffing & Inhouse up 4% (Q1: up 15%) ● Professional
Slide 9: Italy another excellent quarter; Belgium
italy belgium another excellent quarter. solid performance. ● revenue up 4% (Q1: up 12%) ● revenue up 20% (Q1: up 26%) ○ Staffing & Inhouse up 6% (Q1: up 13%) ● perm up 50% (Q1: up 73%) ● EBITA margin at 4.6% vs. 5.5% LY ● EBITA margin at 6.8% vs. 6.3% LY © Randstad 2022 | | 9
Slide 10: Iberia continued excellent performance; Other European countries
iberia other european countries continued excellent performance. good growth, improving profitability. ● spain revenue up 15% (Q1: up 23%) ● UK revenue up 5% (Q1: up 19%) ○ perm up 69% (Q1: up 71%) ● nordics up 14% (Q1: up 19%) ● portugal revenue up 9% (Q1: stable) ● switzerland up 10% (Q1: up 16%)
Slide 11: Rest of the world strong growth and profitability; Global businesses
rest of the world global businesses strong growth and profitability. another record quarter in RPO. ● japan up 11% (Q1: up 13%) ● global businesses up 25% (Q1: up 30%) ● australia & new zealand up 16% (Q1: up 23%) ● monster revenue up 1% (Q1: up 9%) ● india up 16% (Q1: up 14%) ● sourceright up 32% (
Slide 12: Financial results & outlook
financial results & outlook. © Randstad 2022 | 12
Slide 13: Record revenue and strong margin expansion
record revenue and strong margin expansion. Q2 performance Q2 key financials € million Q2 ’22 Q2 ’21 % org. revenue 6,886 6,078 9% gross profit 1,457 1,183 17% • organic revenue up 9% YoY gross margin 21.2% 19.5% operating expenses* 1,149 923 18% • perm revenue +38% YoY, RPO +108% YoY opex % 16.7% 1
Slide 14: Strong gross margin expansion driven by business mix and pricing discipline
strong gross margin expansion driven by business mix and pricing discipline. Q2 gross margin development YoY Q2 highlights • temp margin + 40bp YoY • perm fees increased +38% YoY, +40bp impact on gross margin • HRS/other +90bp YoY, reflecting continued strong growth in RPO © Randstad 2022 | 14
Slide 15: Targeted investments in growth areas, operational flexibility
targeted investments in growth areas, operational flexibility. Q2 sequential opex bridge supporting growth and investments • focused field steering • targeted investments in perm, RPO and professionals • operational adaptability & flexibility © Randstad 2022 | 15
Slide 16: Strong balance sheet
strong balance sheet. Q2 free cash flow strong balance sheet • Q2 FCF € 55m (vs. € 78m in Q2 2021) • net debt € 147m excl. lease liabilities • DSO 52.1, stable vs Q2 2021 • leverage ratio excl. lease liabilities: 0.1 • ROIC: 19.2% (Q2 2021: 14.0%) • refinanced multicurrency RCF of € 1.75 bn © Randst
Slide 17: Conclusion and outlook
conclusion and outlook. Q3 2022 outlook activity momentum • gross margin and operating expenses both • demand for talent was strong in Q2 expected to be broadly in line sequentially • similar trend in early July, with the number • adverse 0.3 working day impact in Q3 2022 of employees placed on a te
Slide 18: Questions & answers
questions & answers. © Randstad 2022 | 18
Slide 19: Appendices
appendices randstad. © Randstad 2022 | 19
Slide 20: Outlets by region
outlets by region. end of period Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 North America 1,235 1,211 1,208 1,201 1,189 France 648 643 645 645 641 the Netherlands 619 625 618 599 599 Germany 526 524 563 579 565 Italy 275 274 274 273 272 Belgium & Luxembourg 353 347 333 326 328 Iberia 387 388 380 381 38
Slide 21: Corporate staff by region
corporate staff by region. average Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 North America 7,090 6,940 6,890 6,820 6,410 France 4,800 4,670 4,620 4,540 4,370 the Netherlands 4,150 4,140 4,100 4,000 3,810 Germany 2,950 2,950 3,010 2,950 2,820 Italy 2,940 2,790 2,660 2,550 2,440 Belgium & Luxembourg 2,4
Slide 22: Number of employees working on a temporary basis by region
number of employees working on a temporary basis by region. average Q2 2022 Q2 2021 North America 90,700 89,000 France 89,400 86,400 the Netherlands 71,900 76,400 Germany 38,600 38,700 Italy 60,500 52,700 Belgium & Luxembourg 44,100 43,400 Iberia 60,300 58,300 Other European countries 59,500 64,000
Slide 23: Randstad: human forward
randstad human forward. VM