Slide 1: Full Year Results 2024
Full Year Results 2024 Presentation for the Full Year ended 30 November 2024 Timo Lehne, CEO Andrew Beach, CFO s|three®
Slide 2: We are SThree. The global STEM-specialist talent partner
We are SThree. The global STEM-specialist talent partner. We are unique.
Slide 3: Our unique model underpins our success driven by global megatrends
STHREE INVESTOR PRESENTATION Our unique model underpins our success driven by global megatrends Flexible talent STEM Net Fees by skill’ Net Fees by service! @ Technology @ Employed Contractor (ECM) @ Life Sciences @ Independent Contractor Engineering @ Total Contract @ Other Permanent Digitalisation
Slide 4: Highlights: in-line performance and good strategic progress
STHREE INVESTOR PRESENTATION Highlights: in-line performance and good strategic progress Robust performance Good results in tough market conditions underpinned by unique focus on STEM and Flexible Talent Platform on track Significant advancement of the Technology Improvement Programme and further op
Slide 5: Strategic advancement throughout the extended cycle
STHREE INVESTOR PRESENTATION Strategic advancement throughout the extended cycle EU Economic Sentiment and Employment Expectations’ Geopolitical . uncertainty Status quo bias High inflation Cost of living eayeor 2 years 2 years >3 years and interest rates Economic Sentiment Indicator (ES!) Employmen
Slide 6: Positioned for structural growth opportunities with clear market drivers
STHREE INVESTOR PRESENTATION Positioned for structural growth opportunities with clear market drivers Industry forecasts for 2025 to 2030! ¢ . ee Trend Insight' © s|three® Tech — Over 50% net growth anticipated Largest adoption = in specific technology-related roles? skill vertical — Over 5 million
Slide 7: Financial review
Financial review
Slide 8: Third highest performance on record despite macro-economic headwinds
FINANCIAL REVIEW Third highest performance on record despite macro-economic headwinds Performance remains well above pre-pandemic levels in FY19 Net Fees Operating profit and OPCR Fy24. Fy24. by2s Post-Covid —FY25 18.2% Fy22 Fy22 18.0% Fy21 Fy21 £60.8m BIA Covid FY20 FY20 £31.3m Bea FY19 Pre - Covid
Slide 9: Strategic focus on STEM and flexible talent drives our performance
FINANCIAL REVIEW Strategic focus on STEM and flexible talent drives our performance SThree vs UK-listed staffers' - Net Fees (indexed to 100) 133% 61% CY Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec SThree 2019? CY20 CY20 CY20 CY20 Cy21 CY21 CY21 CY21 CY22 CY22 CY2
Slide 10: Operating profit reflects tight management of discretionary costs
FINANCIAL REVIEW Operating profit reflects tight management of discretionary costs A I LFL PY YEE onan Movement! Contract Net Fees £310.6m £343.5m -10% -7% Permanent Net Fees £58.5m £75.2m -22% 18% Net Fees £369.1m £418.8m -12% -9% Operating profit £66.2m £76.4m 13% -9% Conversion ratio* 17.9% 18.2%
Slide 11: A diversified business, positioned in key growth markets and skills
FINANCIAL REVIEW A diversified business, positioned in key growth markets and skills Resilience in Engineering driven by clean energy business Regions @ DACH @ Netherlands & Spain © Rest of Europe @ uUsA @ Middle East & Asia Note t: Skill ‘Other’ includes Banking & Finance Note 2: All % movements pr
Slide 12: Employed contractor model continues to provide platform for future growth
FINANCIAL REVIEW Employed contractor model continues to provide platform for future growth ECM share of Net Fees up 16%pts since FY19 FY19 (pre-pandemic) 74% Contract Note: Employed contractor model (ECM) where a skilled specialist is legally employed by SThree typically on a back-to-back contract w
Slide 13: Contractor Order Book continues to provide sector-leading visibility
FINANCIAL REVIEW Contractor Order Book' continues to provides sector-leading visibility Reflecting prolonged soft new-placement activity partially offset by robust Contract extensions -10% Nov 2022 Nov 2023 Note t: Contractor Order Book represents value of Net Fees until contractual end dates, assum
Slide 14: Strong extensions continue to underpin Contract performance
FINANCIAL REVIEW Strong extensions continue to underpin Contract performance Contract Net Fees down 7% YoY' Contract length Pricing holding up Salaries continue increasing to rise Average Contract length Contract margin Average Contract salary {o} 54 weeks 21.7% £104k up 11% vs Fy23 flat vs Fy23' up
Slide 15: Productivity remains 29% above pre-pandemic levels
FINANCIAL REVIEW Productivity remains 29% above pre-pandemic levels Year-on-year reflective of disciplined headcount investment Productivity Productivity reflects * prolonged challenging macro- -4% economic environment (o) impacting new placement activity, especially in ws Fy2025 Technology and Life
Slide 16: Technology Improvement Programme on track
FINANCIAL REVIEW Technology Improvement Programme on track Update to phasing of expenditure, remaining within budget Total expenditure £30m - £35m £6m - £11m £10m £9m FY24 FY23 £3m- £5m Underlying OP (pre-TIP) £68.8m £80.2m Underlying OPCR 18.6% 19.2% £7m TIP Opex £2.6m £3.8m Reported OP (post-TIP)
Slide 17: Operating profit impacted by Net Fees partially offset by lower costs
FINANCIAL REVIEW Operating profit impacted by Net Fees partially offset by lower costs Operating Contract Permanent People Technology Other Operating profit FY23 Net Fees Net Fees costs improvement operating profit FY24 programme costs STHREE.COM 17 a
Slide 18: Net cash returning towards normalised levels
FINANCIAL REVIEW Net cash returning towards normalised levels Cash position down 16% since FY23 year end Net iner Net othe ons (£4.7m) Net cash Operating Non-cash Working Tax/bank Nov 2023 profit items capital interest income Lease principal/capex Shares, dividends and FX Net cash Nov 2024 STHREE.CO
Slide 19: Strong balance sheet supports disciplined capital allocation
FINANCIAL REVIEW Strong balance sheet supports disciplined capital allocation Share buyback £20m programme initiated and sustainable, through-the-cycle dividend maintained _ al i _al _aal EPS 3/7.4p FY23: 42.4p -8% vs FY2023 DPS 14.5p FY23: 16.6p 14% vs FY2023 Dividend cover 2.6X FY23: 2.6x Aligns w
Slide 20: Key financial takeaways
FINANCIAL REVIEW Key financial takeaways In-line performance, well-positioned to deliver our future ambitions J Resilient Net Fee Profits reflect tight Sector leading visibility of Robust balance sheet to fund performance whilst management of costs whilst future Net Fees our future ambitions challen
Slide 21: Strategic progress and outlook
Strategic progress and outlook
Slide 22: Our strategic pillars
STRATEGIC PROGRESS AND OUTLOOK Our strategic pillars Our Platform Our People Our Position To be a leader in the markets Create a world class Find, develop and retain Leverage our position at the we choose to serve operational platform great people centre of STEM to deliver through data, technology s
Slide 23: Places: Highly focused on driving scale in 11 of the best STEM markets
STRATEGIC PROGRESS AND OUTLOOK Places: Highly focused on driving scale in 11 of the best STEM markets Global STEM Market £108bn HE tops markets HE other markets Middle East & Asia wr] USA Total addressable market: £44bn Total addressable market: £33bn Total addressable market: © £10bn SThree market
Slide 24: Platform: Technology Improvement Programme
STRATEGIC PROGRESS AND OUTLOOK Platform: Technology Improvement Programme Delivering the future of STEM staffing through insight, innovation and operational excellence Market-leading, Offers scale at data driven insights Single coherent Difficult to replicate incremental cost technology platform Sys
Slide 25: Platform: Technology Improvement Programme - proof points
STRATEGIC PROGRESS AND OUTLOOK Platform: Technology Improvement Programme Starting to see proof points Cost efficiencies to date Change in Contract placements per head since H1 2023! zem US +8% for junior sales cohorts? in both USA and Germany, 4,400 new placements despite the tougher and contract e
Slide 26: People: Uniting our global teams
STRATEGIC PROGRESS AND OUTLOOK People: Uniting our global teams Progress Enhanced processes and employee value proposition New initiatives to support diversity and reduction of in year consultant churn Roll-out of change programme with focus on upskilling Ensuring teams are prepared and engaged thro
Slide 27: Position: A clearer value proposition for our customers
STRATEGIC PROGRESS AND OUTLOOK Position: A clearer value proposition for our customers Progress Strengthened our go-to- market channels Brand websites and other go- to-market channels enhanced Customer-centric approach Client segmentation advanced and deeper penetration of top client cohort Thought
Slide 28: Results against our 5-year ambitions
STRATEGIC PROGRESS AND OUTLOOK Results against our 5-year ambitions @ Market share of STEM Latest position: / Conversion ratio %3 To grow Group market share/ 8% To deliver a sustainable . 1 7 9% fo) operating profit conversion e ° Net Fees faster than peer ratio of 21%+ Net Fee growth achieved fo gr
Slide 29: Well-placed to build on our position as a leader in STEM
STRATEGIC PROGRESS AND OUTLOOK Well-placed to build on our position as a leader in STEM Our focus on STEM and We are investing in technology FY24 performance in line, Group well-positioned for Contract provides resilience driving further efficiencies, but challenging conditions sustained growth when
Slide 30: Q&A
Q&A
Slide 31: Appendix
Appendix
Slide 32: Financial calendar
APPENDIX Financial calendar 2025 18 March FY25 Qi Trading Update 29 April AGM 24 June FY25 Half Year Trading Update 29 July FY25 Half Year Results 16 September FY25 Q3 Trading Update 16 December FY25 Full Year Trading Update 2026 27 January FY25 Full Year Results STHREE.COM 32 a
Slide 33: Introduction to SThree plc
Introduction to SThree ple
Slide 34: We are SThree. The only global specialist talent partner focused on STEM
INTRODUCTION TO STHREE We are SThree. The only global specialist talent partner focused on roles in STEM. We are unique. Science Technology Engineering Mathematics Our Purpose Our Vision Bringing skilled people To be the #1 STEM talent together to build provider in the best the future STEM markets S
Slide 35: We are global: delivering STEM talent in the most important STEM markets
INTRODUCTION TO STHREE We are global: delivering STEM talent in the most important STEM markets guided by our market investment model Global footprint HE top 5 markets! HL other markets USA 22% pe) 35% Netherlands inc. Spain 21% Rest of Europe 17% Middle Serene & Asia 5% Bea Note t: Top 5 markets, b
Slide 36: Our specialist brands are market leaders with clear propositions
INTRODUCTION TO STHREE Our specialist brands are market leaders with clear propositions real Global leader in the provision of pharmaceuticals, medical devices and biotechnology recruitment COMPUTERFUTURES One of the most dynamic and highly regarded specialist IT recruitment companies in the world H
Slide 37: Our three recruitment services meet our clients' complex needs
INTRODUCTION TO STHREE Our three recruitment services meet our clients increasingly complex needs Independent Employed Permanent ermane Contractors Contractors + Placements to permanent positions * Self-employed contractors * Contractors employed by SThree for fixed term * Revenue recognised at plac
Slide 38: Our unique model underpins our success driven by global megatrends
INTRODUCTION TO STHREE Our unique model underpins our success driven by global megatrends Flexible talent Net Fees by service! STEM Net Fees by skill! @ Technology @ Employed Contractor (ECM) @ Life Sciences > Engineering @ Other @ Independent Contractor @ Total Contract | Permanent Digitalisation D
Slide 39: Employed contractor model continues to provide platform for future growth
INTRODUCTION TO STHREE Employed contractor model continues to provide platform for future growth ECM share of Net Fees up 16%pts since FY19 FY19 (pre-pandemic) FY23 74% 82% Contract Contract Note: Employed contractor model (ECM) where a skilled specialist is legally employed by SThree typically on a
Slide 40: Strategic focus on global STEM and flexible talent drives outperformance
INTRODUCTION TO STHREE Strategic focus on global STEM and flexible talent drives outperformance SThree vs UK-listed staffers — Net Fees (indexed to 100) 133% Resilient business model demonstrates higher quality throughout the cycle + Shallower drop during the pandemic + Less volatility through perio
Slide 41: Platform: Technology Improvement Programme
INTRODUCTION TO STHREE Platform: Technology Improvement Programme Delivering the future of STEM staffing through insight, innovation and operational excellence Market-leading, Offers scale at data driven insights Single coherent Difficult to replicate incremental cost technology platform Systemised
Slide 42: Platform: Technology Improvement Programme - proof points
INTRODUCTION TO STHREE Platform: Technology Improvement Programme Starting to see proof points Cost efficiencies to date Change in Contract placements per head £2m since H1 2023! Annualised in US +8% 4,400 new placements for junior sales cohorts? in both and contract extensions with USA and Germany,
Slide 43: Well-placed to build on our position as a leader in STEM
INTRODUCTION TO STHREE Well-placed to build on our position as a leader in STEM and continue to deliver for our stakeholders A, Excellent visibility of Global megatrends drive Investing in state-of-the- Out-performance repeatable fees through an increasing demand art technology to drive sustained th
Slide 44: Business overview
Business overview
Slide 45: Driven by flexible talent
riven by ible talent
Slide 46: Group performance
BUSINESS OVERVIEW Group performance Net Fees down 9% underpinned by our STEM and Contract focus Revenue £1,492.9m down 8% vs FY23 Average total headcount 2,649 FTE down 6% vs FY23 Net Fees £369.1m down 9% vs FY23 f \ VV Average eNPS? 40 Note t: All % movements on constant currency Note 2: FY24 avera
Slide 47: Resilient Net Fee performance driven by our strategic focus on Contract
BUSINESS OVERVIEW. Resilient Net Fee performance driven by our strategic focus on Contract Contract business now represents 84% of Group Net Fees FY24 vs FY23 Contract Net Fees as % of Contract revenue 21.7% 2023: 21.7% 2019 (pre-pandemic): 20.3% Contract -7% Permanent -18% Permanent Net Fees as % o
Slide 48: Group performance
BUSINESS OVERVIEW. Group performance Net Fees down 9% YoY despite the prolonged challenging backdrop and against a strong prior year performance Region mix Service mix Skills mix Contractor Order Book -10% vs 2023 Net Fees (£m) @ DAcH @ Netherlands & Spain @ Contract @ Perm @ Technology @ Life Scien
Slide 49: Regional and skill split
BUSINESS OVERVIEW. Regional and skill split Resilient performance across our regions and skills despite persistent macro-economic headwinds Net Fees YoY Technology Life Engineering Other Total Sciences DACH A3% 15% -4% -32% 12% USA -31% -20% +5% -30% 12% Rest of Europe -9% 15% +3% -39% 12% Netherlan
Slide 50: Cost base analysis
BUSINESS OVERVIEW. Cost base analysis Cost base Payroll costs @ Payroll ©) Advertising @ Other @ Sales @ Other business functions @ Property @ IT & Professional STHREE.COM 50 a
Slide 51: Foreign exchange impact
BUSINESS OVERVIEW. Foreign exchange impact Year ended Year ended YoY exchange 30 Nov 2024 30 Nov 2023 rate movement Average Closing Average Closing Average Closing EUR€ 118 1.20 115 116 -2.5% -3.8% USD $ 1.28 1.27 1.24 1.26 -3.1% -0.9% Year ended Year ended 30 Nov 2024 30 Nov 2023 Net Fees Operating
Slide 52: Historical Net Fees and contract margin
BUSINESS OVERVIEW Historical Net Fees and contract margin Net Fees £321.1m £338.0m £308.6m £355.7m £430.6m £418.8m £369.1m @ Permanent £232.1m £251.4m @ Contract FY18 FY19 FY20 FY21 FY22 FY23 FY24 Contract margin % FY18 FY19 FY20 FY21 FY22 FY23 FY24 J Note t: 2019,2020 and 2021 presented on an adjus
Slide 53: Historical operating profit and conversion ratio
BUSINESS OVERVIEW. Historical operating profit and conversion ratio Adjusted operating profit FY18 FY19 FY20 FY21 Adjusted conversion ratio % FY18 FY19 FY20 FY21 Note t: 2019,2020 and 2021 presented on an adjusted continuing operations basis excluding discontinued operations in Australia FY22 FY22 F
Slide 54: Effective tax rate bridge
BUSINESS OVERVIEW Effective tax rate bridge 0.5% ETR FY23 State aid case Other ETRFY24 provision release STHREE.COM 54 a
Slide 55: Earnings per share bridge
BUSINESS OVERVIEW Earnings per share bridge EPS FY23 Decrease in profits Change in ETR, EPS FY24 change in number of shares STHREE.COM 55 a
Slide 56: ESG: empowering a sustainable future through STEM
BUSINESS OVERVIEW. ESG: empowering a sustainable future through STEM Results against our 5-year ESG ambitions SBTi validated near term and 6B Positively impact 150,000 lives (BB Double the share of our long-term targets to be Net Zero global clean energy business by 2050 announced e fo) 163,028 live
Slide 57: City consensus
BUSINESS OVERVIEW. City consensus As at 17 December 2024 Consensus Low High FY24 £369.0m £369.0m £369.1m Net Fees FY25 £333.2m £330.0m £337.7m FY26 £346.4m £337.0m £356.2m FY24 £66.1m £63.2m £67.2m PBT FY25 £26.9m £24.8m £34.8m FY26 £35.2m, £30.0m £47.3m FY24 35.4p 34.2p 36.3p Basic EPS FY25 14.7p 1
Slide 58: Shareholder analysis
BUSINESS OVERVIEW. Shareholder analysis As at 31 December 2024 Rank Fund Manager Holdings % 1 Kempen Capital Management 17,352,339 12.81% 2 JO Hambro Capital Management 10,817,182 7.99% 3 JPMorgan Asset Management 8,748,732 6.46% 4 Allianz Global Investors 6,835,365 5.05% 5 BlackRock 6,797,526 5.02%
Slide 59: BeESsessesessres
BeESsessesessres TLL LLL dd ddd ddd ddddbdddddddddddddddbbiddddddaddddde eel Track: o-ary_segumnt_ioten(intid_ 8 ay fleet time) tae,t ohne = @.sagpaste. 200 a ac (Chague saguant = ec cost agua” ga, pagmetal IDS { , ween eapicegueecsbar- aa char* ert) esto It = @MeneurceBeactap./ni(ext); ASSERT(AE lo
Slide 60: DACH
BUSINESS OVERVIEW DACH Net Fees declined 12% YoY with Contract down 6% i Revenue Net Fees Service mix Skills mix £456.1m £127.5m down 11% vs FY2023 down 12% vs FY2023 @ Contract @ Permanent @ Technology @ Life Sciences > Engineering @ Other Average total headcount 811 FTE nee FY23 £148.9m Fy22 £148.
Slide 61: DACH
BUSINESS OVERVIEW. DACH 35% of group Net Fees Contractor Order Book Nov 2022 Note t: All variances at constant currency unless otherwise stated Note 2: Contractor order book represents value of Net Fees until contractual end dates, assuming all contracted hours are worked Note 3: Comparative contrac
Slide 62: USA
Slide 63: USA
BUSINESS OVERVIEW. USA Net Fees declined 12% YoY with Contract down 11% Revenue Net Fees Service mix Skills mix £299.2m £82.0m down 6% vs FY2023 down 12% vs FY2023 @ Contract @ Permanent @ Technology @ Life Sciences © Engineering @ Other Average total headcount 411 FTE Net Fees (Em) down 13% vs FY20
Slide 64: USA
BUSINESS OVERVIEW. USA 22% of group Net Fees Contractor Order Book + USA saw Net Fees decline 12% YoY with trading partly reflecting uncertainty throughout the year relating to the US election at the end of Qa. + Contract, which represents 90% of Net Fees, was down 11% YoY driven by Life Sciences, d
Slide 65: Rest of Europe
/ ~ Rest of Europe ~
Slide 66: Rest of Europe
BUSINESS OVERVIEW Rest of Europe Net Fees declined 12% YoY with Contract down 11% Revenue Net Fees Service mix Skills mix £353.2m £61.5m down 11% vs FY2023 down 12% vs FY2023 @ Contract @ Permanent @ Technology Life Sciences © Engineering @ Other Average total headcount 4 41 FT E Net Fees (£m) FY22
Slide 67: Rest of Europe
BUSINESS OVERVIEW. Rest of Europe 17% of Group Net Fees Contractor Order Book Nov 2022 Note t: All variances at constant curreney unless otherwise stated Nov 2023 Nov 2024 Belgium Note 2: Contractor order book represents value of Net Fees until contractual end dates, assuming all contracted hours ar
Slide 68: Netherlands & Spain
Slide 69: Netherlands & Spain
BUSINESS OVERVIEW Netherlands & Spain Net Fees down 2% YoY with Contract down 2% Revenue Net Fees Service mix Skills mix £3435.6m £78.5m down 4% vs FY2023 down 2% vs FY2023 @ Contract @ Permanent @ Technology Life Sciences © Engineering @ Other Average total headcount 411 FTE Net Fees (£m) down 3% v
Slide 70: Netherlands & Spain
BUSINESS OVERVIEW. Netherlands & Spain 21% of Group Net Fees Contractor Order Book Nov 2022 Note t: All variances at constant currency unless otherwise stated Note 2: Contractor order book represents value of Net Fees until contractual end dates, assuming all contracted hours are worked Note 3: Comp
Slide 71: Middle East & Asia
Slide 72: Middle East & Asia
BUSINESS OVERVIEW. Middle East & Asia Net Fees up 4% Revenue £40.9m up 3% vs FY2023 Average total headcount 202 FTE up 9% vs FY2023 Note t: All variances at constant currency unless otherwise stated Net Fees £19.7m up 4% vs FY2023 Note 2: Skill Other’ includes Banking & Finance which was previously
Slide 73: Middle East & Asia
BUSINESS OVERVIEW. Middle East & Asia 5% of Group Net Fees Contractor Order Book Nov 2022 Nov 2023 Note t: All variances at constant currency unless otherwise stated Note 2: Contractor order book represents value of Net Fees until contractual end dates, assuming all contracted hours are worked Note
Slide 74: Nar | lg
Nar | lg Wi ~ Sy RY, A” 9% Mb
Slide 75: Very strong balance sheet
BUSINESS OVERVIEW. Very strong balance sheet Backed by substantial undrawn debt facilities 30 Nov 2024 30 Nov 2023 Net working capital Intangible assets £12.1m £7.1m Permanent £21.3m Property, plant & equipment £9.7m £4.4m Contract £145.4m TEaetingeni £166.7m e4a.om Net lease liabilities (€3.3m) (£2
Slide 76: Cashflow statement
BUSINESS OVERVIEW. Cashflow statement! 30 Nov 2024 30 Nov 20232 Operating profit £66.2m £76.4m Non-cash items £20.2m £20.9m Working capital (£26.6m) (£10.4m) ‘ash flow £59.8m Tax (£23.0m) (£19.5m) Capex (£13.2m) (£8.2m) Bank interest / Lease principal payments (E11.6m) (£12.7m) LTIPS / Tracker share
Slide 77: Free cash flow
BUSINESS OVERVIEW Free cash flow FY 2024 (£26.6m) Urasey free cash (£23.0m) (£11.6m) (£13.5m) Net decrease it Operating profit Non-cash items Working capital Operating cash flow Tax paid Bank interest / Free cash flow Lease principal payments 90% 2023: 114% 38% 2028:72% Operating cash flow Free cash
Slide 78: Banking facility
BUSINESS OVERVIEW. Banking facility Net cash £70m as at 30 November 2024 Total facility £50m RCF + £5m overdraft + £30m accordion Drawn facility £0.1m Interest rate SONIA + 1.2% - 1.8% Covenants: Interest cover 4:1 EBITDA / interest Covenants: Leverage ratio 3:1 Net debt / EBITDA Term £50m RCF expir
Slide 79: Disclaimer
Disclaimer Certain information in this presentation contain forward-looking statements. By their nature, these statements involve a number of risks, uncertainties, or assumptions that could cause actual results or events to differ materially from those expressed or implied. Forward-looking statement
Slide 80: SThree
s|three®