Slide 1: 2nd quarter results 2023
2nd quarter results 2023. Q2 2023: resilient performance, strong adaptability. Sander van ‘t Noordende, CEO Jorge Vazquez, CFO 25 july 2023 | Randstad N.V.
Slide 2: Disclaimer
disclaimer. Certain statements in this document concern prognoses about the changes in the business mix, changes in legislation (particularly future financial condition, risks, investment plans, and the results in relation to employment, staffing and tax laws), the role of of operations of Randstad
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 appendix. 19 © Randstad 2023 | 4
Slide 5: Performance
performance. © Randstad 2023 5
Slide 6: Q2 2023: resilient performance, strong adaptability
Q2 2023: resilient performance, strong adaptability. summary key financials focus continued challenging conditions revenue -5.1% YoY announced acquisition of Grupo CTC strong adaptability across markets gross margin 20.7% equity, specialization, digital highly diversified portfolio EBITA € 271m, 4.2
Slide 7: North America: tough economic conditions continued, sound margin protection
north america: tough economic conditions continued, sound margin protection. organic revenue growth YoY, last two quarters* ● us staffing & inhouse: continued softening demand across sectors ● us professionals: demand softened, tough economic conditions ● canada: similar trends as in the US ● profit
Slide 8: Northern Europe: mixed growth trends, resilient performance
northern europe: mixed growth trends, resilient performance. organic revenue growth YoY, last two quarters* ● NL: good profitability & adaptability; staffing & inhouse still impacted by covid-related business ● germany: diversifying and improving profitability ● belgium: adjusting to challenging con
Slide 9: Southern Europe, UK & LatAm: mixed growth trends, good profitability & adaptability
southern europe, uk & latam: mixed growth trends, good profitability & adaptability. organic revenue growth YoY, last two quarters* ● france: growth in professionals offset decline in staffing & inhouse and perm; disciplined cost control ● italy: excellent profitability, focus on growth ● spain: con
Slide 10: Asia Pacific: continued growth and solid profitability
asia pacific: continued growth and solid profitability. organic revenue growth YoY, last two quarters* ● japan: solid growth ● australia & new zealand: steady performance ● india: strong growth, focus on quality of portfolio EBITA margin (underlying)** * YoY organic change is measured excluding the
Slide 11: Global businesses: challenging economic conditions, continued adaptation
global businesses: challenging economic conditions, continued adaptation. organic revenue growth YoY, last two quarters* ● enterprise solutions: RPO business impacted by economic slowdown compared to a record prior year performance; strong adaptability; growth in outplacement ● monster: demand impac
Slide 12: Financial results & outlook
financial results & outlook. © Randstad 2023 | 12
Slide 13: Q2 2023: resilient performance, strong adaptability
Q2 2023: resilient performance, strong adaptability. Q2 performance Q2 key financials € million Q2 ’23 Q2 ’22 % org. revenue 6,465 6,886 -5% gross profit 1,341 1,457 -7% gross margin 20.7% 21.2% • organic revenue down 5.1% YoY operating expenses* 1,070 1,149 -6% • growth in asia pacific and latam op
Slide 14: Gross margin impacted by mix and pricing
gross margin impacted by mix and pricing. Q2 gross margin development YoY Q2 highlights • temp margin + 10bp YoY • perm fees -25 bp YoY • HRS/other -35 bp YoY, mainly reflecting decline in RPO, growth in outplacement © Randstad 2023 | 14
Slide 15: Strong adaptability
strong adaptability. Q2 sequential opex bridge ongoing field steering • opex down 4% QoQ (down 6% YoY) • personnel expenses down 4% QoQ • net reduction of 1,390 FTE • H1 recovery ratio 48% © Randstad 2023 | 15
Slide 16: Solid free cash flow & sound balance sheet
solid free cash flow & sound balance sheet. Q2 free cash flow sound balance sheet • Q2 FCF € 126m (up € 71m YoY) • net debt € 616m excl. lease liabilities • working capital impacted by timing of • leverage ratio excl. lease liabilities: 0.5 payments • update on SBB of € 400m: • first tranche complet
Slide 17: Outlook: continued focus on adaptability
outlook: continued focus on adaptability. Q3 2023 outlook momentum early July • gross margin expected to be slightly lower QoQ • trends similar to Q2 2023 • operating expenses expected to be slightly • continued challenging conditions lower QoQ • the YoY growth rate of employees • negative 1.0 worki
Slide 18: Questions & answers
questions & answers. © Randstad 2023 | 18
Slide 19: Appendices
appendices randstad. © Randstad 2023 | 19
Slide 20: Outlets by region
outlets by region. end of period Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 North America 1,070 1,176 1,193 1,216 1,235 the Netherlands 608 609 613 621 619 Germany 525 533 516 521 526 Belgium & Luxembourg 308 329 331 337 353 Other Northern Europe countries 310 322 325 326 331 Northern Europe 1,751 1,79
Slide 21: Corporate staff by region
corporate staff by region. average Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 North America 6,460 6,780 7,150 7,230 7,090 the Netherlands 3,910 4,030 4,110 4,180 4,150 Germany 2,630 2,740 2,860 2,940 2,950 Belgium & Luxembourg 2,230 2,250 2,380 2,450 2,420 Other Northern Europe countries 2,360 2,440 2,
Slide 22: Number of employees working on a temporary basis by region
number of employees working on a temporary basis by region. average Q2 2023 Q2 2022 North America 71,200 90,700 the Netherlands 56,200 71,900 Germany 32,800 38,600 Belgium & Luxembourg 38,300 44,100 Other Northern Europe countries 33,800 36,400 Northern Europe 161,100 191,000 France 84,600 89,400 It
Slide 23: Randstad: human forward
randstad human forward. VM