Slide 1: 4th quarter & FY 2021 results
4th quarter & FY 2021 results. continued strong momentum; record FY revenue of € 24.6bn, up 20% YoY. Jacques van den Broek, CEO Henry Schirmer, CFO Randstad N.V. 15 February 2022
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 appendices 19 © Randstad 2022 | 4
Slide 5: Performance moving forward
performance moving forward. © Randstad 2022 | 5
Slide 6: Q4 2021: record revenue and EBITA
Q4 2021: record revenue and EBITA. highlights Q4 key financials diversified portfolio market-leading growth revenue +16% YoY, +12% vs. ‘19 RPO +153% YoY; Monster +12% YoY broadbased outperformance gross margin 20.4% FY ICR of 44% perm +69% YoY EBITA € 335m, 5.0% margin further capacity to drive prof
Slide 7: North America continued outperformance; France profitable outperformance
north america france continued outperformance. profitable outperformance. ● revenue up 14% YoY (vs. Q4 ‘19: up 14%) ● revenue up 10% YoY (vs. Q4 ‘19: up 2%) ○ record growth perm up 87% YoY (vs. Q4 ‘19: up 48%) ○ perm up 13% YoY (vs. Q4 ‘19: up 2%) ● US Staffing & Inhouse revenue up 11% YoY ● Staffin
Slide 8: The Netherlands strong performance; Germany continued positive momentum
the netherlands germany strong performance ahead of market. continued positive momentum. ● revenue up 16% YoY (vs. Q4 ‘19: up 9%) ● revenue up 15% YoY (vs. Q4 ‘19: up 9%) ○ perm up 58% YoY (vs. Q4 ‘19: up 18%) ● Staffing & Inhouse up 20% YoY ● Staffing & Inhouse up 15% YoY ● Professionals down 7% Yo
Slide 9: Italy exceptional growth trajectory; Belgium diversified portfolio mix
italy belgium exceptional growth trajectory. diversified portfolio mix. ● revenue up 7% YoY (vs. Q4 ‘19: up 4%) ● revenue up 32% YoY (vs. Q4 ‘19: up 32%) ○ Staffing & Inhouse up 10% YoY ● perm up 77% YoY (vs. Q4 ‘19: up 56%) ● acquisition of Hudson Benelux ● EBITA margin at 6.6% vs. 7.1% LY ● EBITA
Slide 10: Iberia activity levels at all time high; other European countries
iberia other european countries activity levels reaching all time high. building momentum. ● spain revenue up 23% YoY (vs. Q4 ‘19: up 17%) ● UK revenue up 36% YoY (vs. Q4 ‘19: up 17%) ● portugal revenue down 7% YoY (vs. Q4 ‘19: down 11%) ● nordics up 20% YoY (vs. Q4 ‘19: up 4%) ● EBITA margin at 5.9
Slide 11: Rest of the world; global businesses
rest of the world global businesses continued to fire on all cylinders. accelerated growth in RPO. ● japan up 13% YoY (vs. Q4 ‘19: up 8%) ● global businesses up 36% YoY (vs. Q4 ‘19: up 26%) ● australia & new zealand up 35% YoY (vs. Q4 ‘19: up 29%) ● monster revenue up 12% YoY (vs. Q4 ‘19: down 18%)
Slide 12: Financial results & outlook
financial results & outlook. © Randstad 2022 | 12
Slide 13: Q4 2021: record revenue and EBITA
Q4 2021: record revenue and EBITA. Q4 performance Q4 key financials € million Q4 ’21 Q4 ’20 % org. revenue 6,754 5,693 16% gross profit 1,379 1,108 21% • organic revenue up 16% YoY, group gross margin 20.4% 19.5% revenue 12% above 2019 level operating expenses* 1,044 844 20% opex % 15.4% 14.8% EBITA
Slide 14: Q4 2021: strong gross margin expansion to 20.4%
Q4 2021: strong gross margin expansion to 20.4%, up 90bp YoY Q4 gross margin development YoY Q4 highlights • temp margin -/- 30bp YoY, primarily due to mix • perm fees increased +69% YoY (+36% vs. Q4 2019) +60bp impact on gross margin • HRS/other +60bp YoY, reflecting accelerated growth in RPO © Ran
Slide 15: Investing for profitable growth
investing for profitable growth. Q4 sequential opex bridge supporting growth and investments • sequential opex up organically • mainly driven by accelerated growth in RPO and staffing • continued investments in digitalization © Randstad 2022 | 15
Slide 16: Dividend proposal underpinned by robust balance sheet
dividend proposal underpinned by robust balance sheet. Q4 2021 free cash flow sound balance sheet • ROIC: 16.8% (Q4 2020: 10.4%) • Q4 FCF € 211m (vs. € 120m in Q4 2020) • net cash € 179m excl. lease liabilities; leverage ratio excl. lease liabilities: -0.1 • strong YoY improvement in EBITDA • total
Slide 17: Conclusion and outlook: continued positive momentum
conclusion and outlook: continued positive momentum. Q1 2022 outlook activity momentum • gross margin expected to be modestly lower • January organic revenue growth YoY was sequentially due to seasonality. broadly in line with Q4 2021. • operating expenses expected to be modestly • continued positiv
Slide 18: Questions & answers
questions & answers. © Randstad 2022 | 18
Slide 19: Appendices
appendices randstad. © Randstad 2022 | 19
Slide 20: Outlets by region
outlets by region. end of period Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 North America 1,208 1,199 1,204 1,156 1,158 France 645 645 641 648 642 the Netherlands 618 599 599 591 583 Germany 563 579 565 522 493 Italy 274 273 272 270 263 Belgium & Luxembourg 333 326 328 321 321 Iberia 380 381 389 384 37
Slide 21: Corporate staff by region
corporate staff by region. average Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 North America 6,890 6,820 6,410 6,010 5,860 France 4,620 4,540 4,370 4,310 4,290 the Netherlands 4,100 4,000 3,810 3,650 3,580 Germany 3,010 2,950 2,820 2,670 2,510 Italy 2,660 2,550 2,440 2,290 2,140 Belgium & Luxembourg 2,2
Slide 22: Staffing employees by region
staffing employees by region. average Q4 2021 Q4 2020 North America 100,700 98,000 France 88,100 79,700 the Netherlands 74,400 69,500 Germany 40,800 34,900 Italy 59,800 45,600 Belgium & Luxembourg 47,700 42,400 Iberia 65,300 58,500 Other European countries 66,100 63,100 Rest of the world 140,100 125
Slide 23: eaese
eaese human forward WM