Empresaria Group Plc · LSE:EMR
Empresaria — Investor Day (October 2022)
49 slides from Empresaria's investor day presentation, October 2022
Slide 1: Capital Markets Day
Capital Markets Day October 2022
Slide 2: Cautionary Note
Cautionary Note The information contained in this presentation is not audited, is for personal use and informational purposes only and is not intended for distribution to, or use by, any person or entity in any jurisdiction in any country where such distribution or use would be contrary to law or re
Slide 3: Welcome
Welcome Capital Markets Day | October 2022 3
Slide 4: Executive Directors
Executive Directors Rhona Driggs Tim Anderson Chief Executive Officer Chief Financial Officer Rhona was appointed as Chief Executive Officer in June 2019, having Tim has over 20 years’ post qualified experience working for listed and joined the Group as Chief Operating Officer in November 2018. Rhon
Slide 5: Regional Leadership
Regional Leadership Garrick Cooper Rafael Moyano Julie Smith Amit Somaiya President, North America Regional CEO, APAC Regional CEO, UK & Europe CEO, Offshore Services Garrick Cooper joined the group Rafael Moyano joined the Group Julie Smith joined the Group in Amit co-founded the Group’s as Preside
Slide 6: Welcome to Capital Markets Day
Welcome to The recruitment landscape Capital Markets Day About Empresaria Our roadmap to Our progess £20m Our ambition Key pillars for growth
Slide 7: The recruitment landscape
The recruitment landscape Significant factors impacting our industry: Global macroeconomic Significant skill shortages uncertainty Staffing industry revenue over US $600 billion. 7
Slide 8: Talent wars: why businesses have to battle to hire the best
"55% of UK organisations facing skills shortages as battle for talent intensifies" "Talent wars: why Virgin Media (7th September 2022) businesses have to battle "Not even inflation can kill the job boom" to hire the best" Forbes (19th September 2022) Financial Times (25th September 2022) "It's Time
Slide 9: The recruitment landscape
The recruitment landscape Significant factors impacting our industry: Global macroeconomic Increased digitalisation creating Significant skill shortages uncertainty new roles Demand from clients for Demand from Increased demand for different workforce Wage inflation candidates for flexibility offsho
Slide 10: About Empresaria
About Empresaria
Slide 11: Our purpose
Our purpose We are driven by our powerful purpose to: Positively impact the lives of people, while delivering exceptional talent to our clients globally. 11
Slide 12: A global diversified staffing group
A global diversified staffing group • Global specialist staffing Group founded in 1996 • More than 3,000 employees operating from 19 countries, including the 4 largest staffing markets (US, Japan, UK & Germany) • Structured as four regions – UK & Europe, APAC, Americas, Offshore Services • Six diver
Slide 13: Our geographical reach
Empresaria Our geographical reach Offshore Services (India & the Philippines) ‘4% Offshore Services 13
Slide 14: Recent Awards
Recent Awards Awarded 3rd place in the Top 100 Recognised on SIA’s 2022 list of LMA Singapore awarded the Monroe won Best Executive Staffing Companies to Work For Fastest-Growing US Staffing Firms Human Capital Partnership Search Firm in Thailand Monroe Vietnam won Leading Rhona Driggs recognised on
Slide 15: Offshore Services
Offshore Services • We provide a range of outsourcing services to clients from our three offshore hubs - two in India and one in the Philippines • We service clients primarily based in the UK and US • Our clients operate in the staffing sector across a range of disciplines including healthcare, IT,
Slide 16: Our progress to date
Our progress to date
Slide 17: Our strategic objectives
Our strategic objectives Build scale in key markets and sectors Increase diversity of profits by sector, market and service Increase productivity and efficiency Targeted investment in growth 17
Slide 18: Our transformation
Our transformation 2018 2022 Collection of disparate specialist A cohesive Group with a common brands with disconnected operational purpose, strategy, values and autonomy and Group functions technology platform with centralisation focussing only on financial planning of key functions and sharing of
Slide 19: Our transformation
Our transformation 2018 2022 Collection of siloed disparate brands Common strategy and values Lack of overarching operational plan Aligned into 6 sectors & 4 regions with regional leadership No Group identity – internally or to clients Group identity with specialised brands Lack of organic growth –
Slide 20: A stronger, proven balance sheet
A stronger, proven balance sheet Strong cash flow, with net debt reducing A proven balance sheet • In the event of a downturn working capital unwinds £m and net debt reduces Adjusted net debt* – 30 June 2017 (22.3) • Illustrated during H1 2020: Acquisitions (re 2016 acquisitions/2018 Peru investment
Slide 21: The roadmap to £20m
The roadmap to £20m
Slide 22: Our three key pillars for growth
Our three key pillars for growth No. 1 No. 2 No.3 Accelerated growth in Diversifying our client Continued growth in high potential sectors offering through Offshore Services Empresaria Solutions 22
Slide 23: Roadmap to £20m operating profit
Roadmap to £20m operating profit £10m +£1m +£4m 2022 forecast Accelerated growth in adjusted high potential sectors operating profit Growth in Commercial less increase in central/regional overheads 23
Slide 24: Accelerated growth in high potential sectors
1 | Accelerated growth in high potential sectors 24
Slide 25: Accelerated growth in high potential sectors
1 | Accelerated growth in high potential sectors Capitalising on demand and opportunity in core sectors: • IT and Professional demand driven by job churn, wage inflation and skills shortages • Healthcare continues to grow as the population ages and is resilient to market conditions • Temporary IT an
Slide 26: Professional
1 | Professional Opportunity: • We have operations in the four largest global staffing markets - US, Japan, UK and Germany but do not deliver Professional in three of these. Our existing clients have demand for Professional recruitment which we are currently unable to meet. Key priority for expansio
Slide 27: How we will be successful
1 | How we will be successful Our Professional blueprint for new launches: Consistent approach in terms of services and skills Global branding strategy Leveraging our existing client base Utilise the Group’s Professional expertise, regional sales capability and Offshore Services Delivery through our
Slide 28: Healthcare in the US
1 | Healthcare in the US Healthcare growth projected to continue: • Number of US job openings in healthcare and social assistance at record levels, roughly double what they were prior to the pandemic • Increase in job openings has far exceeded the number of hires • Nurse practitioners to grow 52% by
Slide 29: Our expanded capabilities
1 | Our expanded capabilities How we adapted our US Healthcare business and expanded our service offering to meet growing demand 2019 2022 Primarily focused on: Continued growth of existing services: Specialty Pharmacy Specialty Pharmacy, Allied Health and Local Allied Health Long-Term Care Local Lo
Slide 30: How we will be successful
1 | How we will be successful Proven ability to deliver Demonstrated expertise in staffing behind MSPs Powered by our offshore services we can scale and respond quickly to large volume demand With increased demand for healthcare staff and our expanded client base, we will continue to grow and take m
Slide 31: IT Sector revenue & job growth
1 | IT Sector revenue & job growth We currently have IT operations in the three largest Temporary IT staffing markets: US, UK & Japan. Tech sector roles have experienced continued growth over the past 10 years and are predicated to grow through to 2030 • In the US, IT employment has increased by Tem
Slide 32: Our global IT opportunity
1 | Our global IT opportunity We will focus on building scale in the markets we are in and deepen our expertise in key sectors APAC UK & Europe US • Focused IT desks kicked off • Grow UK client base, focus to • Add new speciality areas early 2022 date has been on EU • Invest in scaling dedicated • 2
Slide 33: How we will be successful
1 | How we will be successful Leverage our existing client base New client acquisition through regional sales capability Leverage our global candidate database Scale our IT delivery utilising our proven Offshore Services expertise in this sector Replicate our existing expertise in delivering IT serv
Slide 34: Roadmap to £20m operating profit
Roadmap to £20m operating profit £10m +£1m +£4m +£1m 2022 forecast Accelerated growth in adjusted high potential sectors operating profit Growth in Commercial Growth in new services - less increase in Empresaria Solutions central/regional overheads 34
Slide 35: Diversifying our client offering through Empresaria Solutions
2 | Diversifying our client offering through Empresaria Solutions 35
Slide 36: Empresaria Solutions
2 | Empresaria Solutions What do our clients want? In response we are introducing Empresaria Solutions and a regional sales focus. Regional and global clients are looking for Empresaria Solutions will: staffing partners that can service them across multiple locations and multiple disciplines while p
Slide 37: Empresaria Solutions
2 | Empresaria Solutions Regional/Global Recruitment Statement of Work Payroll Solution Process Outsourcing Dedicated service for An ongoing or project based A clearly defined scope of Managing the payroll of a enterprise clients looking solution encompassing all work where we manage client’s contra
Slide 38: Early RPO success in APAC
2 | Early RPO success in APAC Proof of concept in APAC • A dedicated sales team created to drive regional sales and diversified solutions • Focused predominantly on the IT sector • RPO solutions developed aligned to clients needs • Project delivery via brands & local project manager “We [needed] to
Slide 39: How we will be successful
2 | How we will be successful Full launch of Empresaria Solutions service offering to external market (Q1 2023) Accompanied by aligned sales & marketing strategy to drive awareness and demand generation Build more strategic relationships and expand our service offerings to our existing clients Globa
Slide 40: Roadmap to £20m
Roadmap to £20m £10m +£1m +£4m +£1m +£4m 2022 forecast Accelerated growth in Continued growth in adjusted high potential sectors Offshore Services operating profit Growth in Commercial Growth in new services - less increase in Empresaria Solutions central/regional overheads 40
Slide 41: Continued growth in Offshore Services
3 | Continued growth in Offshore Services 41
Slide 42: Offshore Services market growth
3 | Offshore Services market growth The Business Process Management market in India is projected to grow at a CAGR of 12%. Within the staffing sector in both the UK & the US: Of those using, or intending to use, offshore services: 52% 44% 48% of 52% of recruitment recruitment Intend to increase thei
Slide 43: How we will be successful
3 | How we will be successful Scale Diversification Delivery Capabilities Expand client base across UK, US and Diversifying our service offering to Expanding our delivery capabilities Australia existing clients – expansion of back outside of India office offering and other services 43
Slide 44: Summary
Summary
Slide 45: Roadmap to £20m
Roadmap to £20m £10m +£1m +£4m +£1m +£4m £20m 2022 forecast Accelerated growth in Continued growth £20m adjusted adjusted high potential sectors in Offshore Services operating profit operating profit ambition Growth in Commercial Growth in new services - less increase in Empresaria Solutions central
Slide 46: Illustrative timeline
Illustrative timeline Timeline 1. Accelerated growth in high potential 20 sectors A. Professional launches in US and Japan B. Professional launches in Germany and expansion of Australia £m/pence C. Expansion of IT offering in Japan 10 2. Diversifying our client service offering D. Launch of Empresar
Slide 47: Our cash flow will fund growth
Our cash flow will fund growth • These plans are expected to be funded out of operating cash flows • Our operational cash flow will fund our roadmap including: • Opening new operations – funding for start-up losses, low capex requirement • Investment in growing capacity in Offshore Services • Workin
Slide 48: Closing comments
Closing comments We have assembled a highly talented leadership team who are committed to delivering on our ambition The transformation of the Group leaves us well positioned to accelerate our growth Our agility, diversification by geography and sector along with Offshore Services provides resilienc
Slide 49: Q&A
Q&A Rhona Driggs Chief Executive Officer Tim Anderson Chief Financial Officer Garrick Cooper Rafael Moyano Julie Smith Amit Somaiya President, North America Regional CEO, APAC Regional CEO, UK & Europe CEO, Offshore Services