Slide 1: 1st quarter results 2024
23rd of april 2024 1st quarter results 2024. Q1 2024: continued adaptability in challenging market sander van ‘t noordende, CEO jorge vazquez, CFO
Slide 2: Disclaimer
disclaimer. Certain statements in this document concern prognoses flexible personnel), achievement of cost savings, changes about the future financial condition, risks, investment in the business mix, changes in legislation (particularly in plans, and the results of operations of Randstad N.V. and r
Slide 3: Definitions
definitions. organic growth: externally reported income statement line items (revenue, gross profit, operating expenses and EBITA) adjusted for the impact of changes in foreign currency ("FX"), the effect of hyperinflation and excluding the impact of acquisitions and disposals. EBITA: operating prof
Slide 4: Agenda
agenda. performance 5 financial results & outlook 12 Q&A 18 appendix 19 © randstad 4
Slide 5: Performance
01 performance. 0''0'1¢ yO © randstad | 5
Slide 6: Q1 2024: continued adaptability in challenging market
Q1 2024: continued adaptability in challenging market. summary key financials ● challenging markets ● revenue € 5.9BN at -7.8% ● continued adaptability ● gross margin 20.2% ● focused growth ● EBITA € 177M, 3.0% margin © randstad 6
Slide 7: Partner for talent
partner for talent. 90% of business aligned by specialization in Q2 € 2BN run rate through digital marketplaces in Q2 Randstad talent platform go live in the Netherlands © randstad 7
Slide 8: North America: challenging conditions continued
north america: challenging conditions continued. organic revenue growth YoY, last two quarters* ● us: decline rates easing, largest transformational activities executed ● canada: decline bottoming ● profitability: continue to transform, cost initiatives in flight EBITA margin (underlying)** * YoY or
Slide 9: Northern Europe: persistent headwinds
northern europe: persistent headwinds. organic revenue growth YoY, last two quarters* ● netherlands: challenging market, solid adaptability ● germany: tough environment, continued impact of sickness, no signs of recovery yet, refocusing the business ● belgium: solid improvement throughout the EBITA
Slide 10: Southern Europe, UK & LatAm: positive momentum
southern europe, uk & latam: positive momentum organic revenue growth YoY, last two quarters* ● france: challenging start of the year, professionals continued to grow ● italy: positive momentum throughout the quarter, adding field capacity ● iberia: back to growth, driven by spain ● other countries:
Slide 11: Asia Pacific: mixed growth trends, good adaptability
asia pacific: mixed growth trends, good adaptability organic revenue growth YoY, last two quarters* ● japan: continued growth driven by professionals, strong profitability ● australia & new zealand: slow start of the year ● india: return to growth EBITA margin (underlying)** * YoY organic change is
Slide 12: Financial results & outlook
02 financial results & outlook. © randstad 12
Slide 13: Q1 2024: continued adaptability
Q1 2024: continued adaptability. performance key highlights € million Q1 ’24 Q1 ’23 % org. revenue 5,938 6,518 -7.8% ● organic revenue down -7.8% YoY gross profit 1,199 1,368 -11% gross margin 20.2% 21.0% ○ operational: -/- 7% at € 3.8BN operating expenses* 1,022 1,102 -7% opex % 17.2% 16.9% ○ profe
Slide 14: Gross margin: impacted by services mix
gross margin: impacted by services mix. Q1 gross margin development YoY key highlights • temp margin -10 bp YoY • perm fees -30 bp YoY • HRS/other -40 bp YoY © randstad 14
Slide 15: Costs: continued field steering
costs: continued field steering Q1 sequential opex bridge (€m) key highlights • opex down 1% QoQ, down 7% YoY • # FTEs broadly in line with Q4, down 8% YoY • number of outlets reduced by 153 to 4,726 • Q1 recovery ratio 47% © randstad 15
Slide 16: Sound balance sheet
sound balance sheet. Q1 free cash flow balance sheet • Q1 FCF -/- € 42m (Q1 2023: € 169m) • net debt € 437m excl. lease liabilities • DSO 53.7, up 0.7 days vs Q1 2023 • leverage ratio excl. lease liabilities: 0.4 • ROIC: 14.2% (Q1 2023: 19.7%) • SBB fifth tranche: € 83m remaining © randstad 16
Slide 17: Outlook: remain cautious
outlook: remain cautious. Q2 2024 outlook momentum • gross margin is expected to be broadly in • April volumes sequentially stable from line sequentially March • operating expenses are expected to be • positioning for growth, guided by field modestly higher sequentially steering • positive 0.6 worki
Slide 18: Questions & answers
03 questions & answers.
Slide 19: Appendices
04 appendices. © randstad 19
Slide 20: Corporate staff by geography
corporate staff by geography. average Q1 2024 Q1 2023 North America 7,880 9,730 the Netherlands 4,020 4,510 Germany 2,500 2,970 Belgium & Luxembourg 2,180 2,300 Other Northern Europe countries 2,890 3,180 Northern Europe 11,590 12,960 France 4,900 4,890 Italy 3,250 3,110 Iberia 2,820 2,410 Other SE
Slide 21: Number of employees working on a temporary basis by geography
number of employees working on a temporary basis by geography. average Q1 2024 Q1 2023 * North America 69,600 82,000 the Netherlands 50,400 58,200 Germany 26,000 34,700 Belgium & Luxembourg 35,100 35,300 Other Northern Europe countries 27,100 32,200 Northern Europe 138,600 160,400 France 74,100 80,5
Slide 22: Partner for talent
partner for talent. VM randstad