Slide 1: 1st quarter 2020 results
1st quarter 2020 results. resiliency amidst Covid-19; more challenging Q2 ahead. Jacques van den Broek, CEO Henry Schirmer, CFO Randstad N.V. 22 April 2020
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 13 Q&A 20 appendices 21 © Randstad 2020 | 4
Slide 5: Performance moving forward
performance moving forward. © Randstad 2020 | 5
Slide 6: Resiliency amidst Covid-19, more challenging Q2 ahead
resiliency amidst Covid-19, more challenging Q2 ahead. Covid-19 update key financials managing the cycle health and safety first organic growth -7% strong balance sheet seamless transition to WFH exit rate mid-March c. -30% instant cost measures ‘safely back to work’ alliance EBITA € 162m, 3.0% marg
Slide 7: North America and France
north america france later in the Covid-19 cycle. intensified economic lockdown. ● revenue down 3% (Q4: down 2%) ● revenue down 9% (Q4: +1%) ○ perm down 3% (Q4: down 1%) ○ perm down 10% (Q4: +4%) ● US Staffing & Inhouse revenue down 4% (Q4: down 5%) ● Staffing & Inhouse down 13% (Q4: down 2%) ● US P
Slide 8: The Netherlands and Germany
the netherlands germany resilient performance. challenging conditions remain. ● revenue down 14% (Q4: down 10%) ● revenue down 16% (Q4: down 15%) ○ perm down 23% (Q4: down 5%) ● Staffing & Inhouse down 19% (Q4: down 16%) ● Staffing & Inhouse down 17% (Q4: down 11%) ● Professionals down 7% (Q4: down
Slide 9: Belgium and Italy
belgium italy also impacted as of mid-March. significantly impacted by Covid-19. ● revenue down 8% (Q4: down 3%) ● revenue down 8% (Q4: down 1%) ○ Professionals down 4% (Q4: +10%) ○ perm down 10% (Q4: +20%) ● EBITA margin at 4.5% vs. 6.0% LY ● EBITA margin at 3.3% vs. 6.0% LY ○ diversified portfolio
Slide 10: Iberia and other European countries
iberia other european countries resilient profitability. widespread Covid-19 impact. ● spain revenue down 3% (Q4: +4%) ● UK revenue down 8% (Q4: down 2%) ● portugal revenue down 9% (Q4: down 6%) ● nordics down 8% (Q4: down 7%) ● EBITA margin at 4.4% vs. 5.0% LY ● switzerland down 2% (Q4: down 1%) ●
Slide 11: Rest of the world and global businesses
rest of the world global businesses growth largely continues. protecting profitability. ● japan growth +5% (Q4: +7%) ● global businesses down 10% (Q4: down 4%) ● australia & new zealand +3% (Q4: +3%) ● monster revenue slightly decelerating versus Q4 ○ progress on new technology platforms ● china dow
Slide 12: Covid-19 situation in Q2 so far
Covid-19 situation in Q2 so far country lockdowns intensified into April. country lockdowns intensified into Q2 government measures varying by country mild selective strict lockdown lockdown lockdown © Randstad 2020 | 12
Slide 13: Financial results & outlook
financial results & outlook. © Randstad 2020 | 13
Slide 14: Q1 2020 solid performance in uncertain conditions
Q1 2020 solid performance in uncertain conditions. Q1 performance Q1 key financials € million Q1 ’20 Q1 ’19 % org. revenue 5,414 5,718 (7)% gross profit 1,052 1,128 (9)% gross margin 19.4% 19.7% • organic revenue down 7.4% operating expenses* 890 901 (2)% opex % 16.4% 15.8% EBITA* 162 227 (29)% • EB
Slide 15: Q1 2020 gross margin already impacted by Covid-19
Q1 2020 gross margin already impacted by Covid-19. Q1 gross margin development YoY Q1 highlights • temp margin impacted by Covid-19: idle time, sickness • perm fees declined 10% YoY, -10bp impact on gross margin • HRS/other impact -20bp © Randstad 2020 | 15
Slide 16: Instant cost management amidst Covid-19
instant cost management amidst Covid-19. Q1 sequential opex bridge managing our cost base through the cycle • postponement of non-essential spending • cost optimization program of € 120m • furlough and other government schemes • employment protection and selective investments in digital initiatives
Slide 17: Expected financial impact of government schemes
expected financial impact of government schemes limited impact in Q1, most visible in Q2. various measures announced significant variation across countries • P&L: impacting gross profit and opex line • furlough schemes • social security compensation • for flex workers and/or own employees • balance
Slide 18: Strong balance sheet and countercyclical working capital
strong balance sheet and countercyclical working capital. broadly stable FCF YoY strong liquidity and solvency • solvency: leverage ratio pre IFRS 16 0.7x • cash dividend proposal 2019 withdrawn • Q1 FCF € -12m (vs. € -2m in Q1 2019) • excluding CICE receivable € 389m • favorable working capital mov
Slide 19: Conclusion and outlook: navigating through volatile times
conclusion and outlook: navigating through volatile times. covid-19 lockdown per country Q2 outlook • country lockdowns intensified into Q2 • aiming for recovery ratio of 50% over time • ‘safely back to work’ alliance mild selective strict lockdown lockdown lockdown © Randstad 2020 | 19
Slide 20: Questions & answers
questions & answers. © Randstad 2020 | 20
Slide 21: Appendices
appendices randstad. © Randstad 2020 | 21
Slide 22: Outlets by region
outlets by region. end of period Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 North America 1,136 1,153 1,152 1,123 1,138 France 649 640 635 631 628 the Netherlands 647 653 661 656 660 Germany 487 582 577 580 589 Belgium & Luxembourg 328 327 334 333 329 Italy 262 259 259 262 264 Iberia 388 382 376 375 37
Slide 23: Corporate staff by region
corporate staff by region. average Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 North America 5,880 5,830 5,660 5,600 5,680 France 4,610 4,690 4,640 4,580 4,540 the Netherlands 3,970 4,090 4,180 4,240 4,270 Germany 2,590 2,640 2,680 2,870 2,880 Belgium & Luxembourg 1,940 2,040 2,120 2,090 2,050 Italy 2,2
Slide 24: Staffing employees by region
staffing employees by region. average Q1 2020 Q1 2019 North America 92,000 93,400 France 78,300 83,300 the Netherlands 67,200 80,100 Germany 34,400 41,800 Belgium & Luxembourg 40,900 44,300 Italy 42,500 45,600 Iberia 57,500 63,700 Other European countries 52,800 60,700 Rest of the world 120,600 113,
Slide 25: eaese
eaese human forward WM