Slide 1: 4th-quarter & FY 2018 results
4th-quarter & FY 2018 results FY 2018: delivering EBITA margin progression. strong free cash flow, record cash dividend. Jacques van den Broek, CEO Henry Schirmer, CFO Randstad N.V. 12 February 2019
Slide 2: disclaimer
disclaimer. Certain statements in this document concern prognoses about the business mix, changes in legislation (particularly in relation to future financial condition, risks, investment plans and the results of employment, Staffing and tax laws), the role of industry operations of Randstad N.V. an
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 2019 | 4
Slide 5: performance moving forward
performance moving forward. © Randstad 2019 | 5
Slide 6: Q4 and FY 2018: sound operational execution
Q4 and FY 2018: sound operational execution. FY 2018 Q4 key financials growth drivers achievements resilient portfolio paying off organic growth 0.3% perm up 11% EBITA margin progression EBITA € 309m ROW up 12% strong cash conversion EBITA margin 5.1% digital progress © Randstad 2019 | 6
Slide 7: North America and France
north america france solid EBITA margin expansion. mixed picture. ● revenue up 3% (Q3: +3%) ● revenue down 4% (Q3: down 1%) ○ perm up 15% (Q3: +22%) ● US Staffing & Inhouse, revenue up 5% (Q3: +5%) ● Staffing & Inhouse down 7% (Q3: down 4%) ● US Professionals, revenue flat (Q3: +1%) ● Professionals
Slide 8: The Netherlands and Germany
the netherlands germany closing the gap with market. automotive weakness. ● revenue at +3% (Q3: +4%) ● revenue down 7% (Q3: down 2%) ● combined Staffing & Inhouse businesses up 1% (Q3: ● Staffing & Inhouse down 12% (Q3: down 4%) +2%) ● Professionals up 7% (Q3: +7%) ● Professionals up 13% (Q3: +15%)
Slide 9: Belgium and Italy
belgium italy continued market outperformance. EBITA margin up, growth slowing. ● revenue flat (Q3: +3%) ● revenue down 1% (Q3: +7%) ○ market outperformance ○ strong perm growth at +28% (Q3: +38%) ○ positive impact data-led ‘Customer Delight’ ● EBITA margin at 6.6% vs. 6.3% LY ● EBITA margin at 5.5%
Slide 10: Iberia and other European countries
iberia other european countries strong conversion in spain. mixed trends. ● spain revenue down 3% (Q3: +3%) ● UK revenue growth up by 5% (Q3: +3%) ○ strong pricing discipline ● nordics down 4% (Q3: +1%) ● portugal revenue down 9% (Q3: down 3%) ● switzerland growth up 6% (Q3: +6%) ● EBITA margin at 6
Slide 11: Rest of the world and global businesses
rest of the world global businesses double-digit growth at good conversion. improved profitability. ● japan growth up 6% (Q3: +7%) ● monster down 17% (Q3: down 15%) ○ increase randstad usage of talent engine ● australia & new zealand grew 10% (Q3: +14%) ○ progress on new technology platforms ● china
Slide 12: financial results & outlook
financial results & outlook. © Randstad 2019 | 12
Slide 13: Q4 2018 sound operational performance
Q4 2018 sound operational performance. Q4 performance Q4 key financials € million Q4 ’18 Q4 ’17 % org. revenue 6,101 5,978 0% gross profit 1,207 1,202 (2)% • stable revenue YoY gross margin 19.8% 20.1% operating expenses* 898 895 0% • EBITA margin 5.1% (Q4 2017: 5.1%) opex % 14.7% 15.0% EBITA* 309 3
Slide 14: Q4 2018 gross margin: impacted by CICE, underlying stable
Q4 2018 gross margin: impacted by CICE, underlying stable. Q4 gross margin development YoY Q4 key financials • temp margin impacted by CICE (around -25bp) • perm fees grew 11% YoY organically, adding 20bp • HRS/Monster impact -10bp, driven primarily by Monster © Randstad 2019 | 14
Slide 15: Agile cost management in Q4 and for full year 2018
agile cost management in Q4 and for full year 2018. Q4 sequential opex bridge Q4 cost management • organic opex stable versus Q3 and YoY (Q3: up 1% YoY) • on track to deliver cost savings program • flexible cost base and tight steering continues to pay off © Randstad 2019 | 15
Slide 16: Resilient free cash flow and balance sheet, record dividend
resilient free cash flow and balance sheet, record dividend. improved free cash flow YoY strong balance sheet • net debt € 985m (down € 41m vs. LY) • FY FCF € 627m (+7% vs. FY 2017) • leverage ratio 0.8 (Q4 2017: 0.9) • strong FY working capital improvement • dividend proposal of € 3.38 per share, •
Slide 17: Conclusion and outlook: sound operational execution
conclusion and outlook: sound operational execution. Q4 conclusion and outlook January trend in line with Q4 NAM FR NL • EBITA margin stable, strong FCF conversion GER BEL • record cash dividend of € 3.38 (+22% YoY) IBE IT • strategy progressing well RoE low single-digit growth RoW mid single-digit
Slide 18: questions & answers
questions & answers. © Randstad 2019 | 18
Slide 19: appendices
appendices randstad. © Randstad 2019 | 19
Slide 20: outlets by region
outlets by region. end of period Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 North America 1,142 1,119 1,090 1,091 1,111 France 625 645 657 663 669 the Netherlands 658 664 665 648 650 Germany 601 601 595 588 582 Belgium & Luxembourg 326 322 325 323 317 Italy 298 295 296 299 275 Iberia 371 369 365 360 35
Slide 21: corporate staff by region
corporate staff by region. average Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 North America 5,840 5,840 5,720 5,660 5,690 France 4,540 4,590 4,500 4,410 4,390 the Netherlands 4,370 4,380 4,360 4,350 4,310 Germany 3,080 3,180 3,120 3,020 2,820 Belgium & Luxembourg 2,130 2,230 2,130 2,100 2,130 Italy 2,2
Slide 22: staffing employees by region
staffing employees by region. average Q4 2018 Q4 2017 North America 105,100 105,300 France 87,800 91,700 the Netherlands 85,400 83,900 Germany 43,600 51,500 Belgium & Luxembourg 49,700 47,200 Italy 54,900 53,100 Iberia 67,700 71,200 Other European countries 65,900 69,600 Rest of the world 112,100 11
Slide 23: eaese
eaese human forward WM