Slide 1: 1st quarter 2018 results
1st quarter 2018 results sound revenue growth continues. Jacques van den Broek, CEO Henry Schirmer, CFO Randstad N.V. 24 April 2018
Slide 2: disclaimer & definitions
disclaimer & definitions. Certain statements in this document concern prognoses about the future financial condition, risks, investment plans and the results of operations of Randstad N.V. and its operating companies, as well as certain plans and objectives. Obviously, such prognoses involve risks a
Slide 3: agenda
agenda. performance 4 financial results & outlook 17 q&a 24 appendices 25 © randstad | 3
Slide 4: performance moving forward
performance moving forward. © randstad | 4
Slide 5: Q1 2018: sound revenue growth continues
Q1 2018: sound revenue growth continues. revenue of € 5,683 million topline grew 9% in Europe gross margin 19.6% organic growth 7.4% 1% in North America and 11% pricing climate stable in Rest of the world gross profit up 4.5% perm fees up 13% underlying EBITA of € 217 million; organic opex up 2% (Q4
Slide 6: Q1 2018: sound revenue growth continues
Q1 2018: sound revenue growth continues. € million Q1 ’18 Q1 ’17 % org. LQ4 ’18 LQ4 ’17 % org. revenue 5,683 5,557 7% 23,399 21,539 9% gross profit 1,114 1,134 4% 4,688 4,202 7% gross margin 19.6% 20.4% 20.0% 19.5% operating expenses* 897 925 2% 3,615 3,216 4% opex % 15.8% 16.7% 15.4% 14.9% EBITA* 2
Slide 7: regional split: robust growth continues in Europe and RoW
regional split: robust growth continues in Europe and RoW. YoY Randstad organic revenue growth development 20% 10% 0% -10% Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017 Q1 2018 Group Europe North America Rest of the world • Europe grew 9% (vs. +11% in Q4) • North America grew 1% (v
Slide 8: north america
north america further margin progression. historical organic growth 8% 2% revenue up 1% (Q4: +1%) 6% • perm up 8% (Q4: up 5%) 1% 4% US Staffing & Inhouse, revenue growth 2% (Q4: +1%) EBITA % 2% 0% organic growth % US Professionals, revenue down 3% (Q4: down 1%) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 201
Slide 9: the Netherlands
the netherlands accelerating topline. historical organic growth 8% 8% revenue at +5% (Q4: +3%) 6% 6% • strong focus on client profitability 4% • SME growth of 13% 4% 2% EBITA % combined Staffing & Inhouse businesses 2% 0% organic growth % • up 4% (Q4: +2%) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Pro
Slide 10: france
france EBITA margin up, despite CICE. historical organic growth 8% 16% revenue at +10% (Q4: +12%) 6% 12% • Staffing & Inhouse at +10% (Q4: +11%) 4% 8% • Professionals up 13% (Q4: +18%) 2% 4% • perm grew 38%, continuing to be fueled by tech (Q4: EBITA % +37%) 0% 0% organic growth % Q1 2017 Q2 2017 Q3
Slide 11: germany
germany impacted by several incidentals. historical organic growth 6% 12% revenue +7% (Q4: +10%) 4% 8% • impacted by equal treatment, strikes and high sickness • perm: growth of 14% 2% 4% EBITA % Staffing/Inhouse +6% (Q4: +10%) 0% 0% organic growth % Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Professio
Slide 12: belgium
belgium robust conversion of topline. historical organic growth 8% 16% revenue +9% (Q4: +10%) 6% 12% • Staffing/Inhouse up 9% (Q4: +9%) 4% 8% 2% 4% EBITA margin at 6.0% vs. 5.7% LY EBITA % 0% 0% organic growth % Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 performance annually 1.500 8% 1.400 6% 1.300 4%
Slide 13: italy
italy strong conversion of high sales growth. historical organic growth 8% 30% Italy revenue +19% (Q4: +26%) 6% 20% • strong focus on client profitability 4% • perm: growth of 63% 10% 2% EBITA % EBITA margin at 5.7%, vs. 5.0% LY 0% 0% organic growth % Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 performa
Slide 14: iberia
iberia strong operational leverage. historical organic growth 6% 16% Iberia revenue up 11% (Q4: +15%) 5% 12% • Staffing/Inhouse up 11% (Q4: +15%) 3% 8% 2% Spain 4% EBITA % • revenue growth up 13% (Q4: +16%) 0% 0% organic growth % • perm up 13% (Q4: +16%) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Portu
Slide 15: other european countries
other european countries overall revenue up 11% (Q4: up 12%). UK • organic revenue growth up by 7% (Q4: up 11%) Nordics • growth up 11% (Q4: up 13%) Switzerland • growth up 22% (Q4: up 20%) Poland • growth up 7% (Q4: up 9%) EBITA margin at 2.6%, stable vs. LY © randstad | 15
Slide 16: rest of the world
rest of the world overall revenue up 11% (Q4: +10%). Japan • growth up 11% YoY (Q4: +9%) • significant increase in EBITA margin Australia & • grew 6% (Q4: +8%) New Zealand Asia • overall Asia, growth at 8% (Q4: +6%) • China up 5% (Q4: down 10%) Latin America • up 32% (Q4: +27%) EBITA margin at 2.8%
Slide 17: financial results & outlook
financial results & outlook. © randstad | 17
Slide 18: income statement Q1 2018
income statement Q1 2018. € million Q1 ’18 Q1 ’17 % org. L4Q ’18 L4Q ’17 % org. revenue 5,683 5,557 7% 23,399 21,539 9% gross profit 1,114 1,134 4% 4,688 4,202 7% gross margin 19.6% 20.4% 20.0% 19.5% operating expenses* 897 925 2% 3,615 3,216 4% opex margin 15.8% 16.7% 15.4% 14.9% EBITA* 217 209 7%
Slide 19: Q1 2018 gross margin bridge: underlying pricing stable
Q1 2018 gross margin bridge: underlying pricing stable. • temp margin down 30bp: adverse impact of working days, higher sickness rate, mix effects and changes in CICE in France • perm fees grew 13% YoY organically, adding 10bp • HRS/others declined 60bp, driven primarily by Monster and FX • pricing
Slide 20: Q1 2018 OPEX: tight cost control
Q1 2018 OPEX: tight cost control. • OPEX increased by € 15M organically (sequentially) • organic OPEX growth YoY 2% (Q4 2017: 5%) • favorable FX impact YoY of € 53M © randstad | 20
Slide 21: net debt at €1,059M
net debt at € 1,059M leverage ratio at 0.9 € million Q1 2018 Q1 2017 goodwill and acquisition-related intangible assets 3,406 3,693 operating working capital (OWC) 1,006 752 net tax assets 381 449 all other assets and liabilities* 76 122 invested capital 4,869 5,016 total equity 3,810 3,887 net debt
Slide 22: Q1 2018 free cash flow
Q1 2018 free cash flow. € million Q1 2018 Q1 2017 L4Q ’18 L4Q ’17 EBITDA 226 212 1,095 997 change in OWC -/- 126 4 -/- 305 -/- 138 income taxes -/- 78 -/- 49 -/- 215 -/- 155 provisions & employee benefit obl. -/- 1 -/- 1 8 6 net capital expenditures -/- 21 -/- 20 -/- 97 -/- 101 other items -/- 25 -/
Slide 23: outlook
outlook. • organic revenue growth was 7.4% in Q1. geo exit rate • in March 2018, revenue grew at a similar pace. The NAM development of volumes in early April broadly indicates a NL continuation of the Q1 growth rate. There will be an FR adverse 2.9% comparison base in Q2. GER • Q2 2018 gross margin
Slide 24: questions & answers
questions & answers. © randstad | 24
Slide 25: appendices
appendices randstad. © randstad | 25
Slide 26: outlets by region
outlets by region. end of period Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 North America 1,091 1,111 1,099 1,087 1,094 the Netherlands 648 650 627 660 650 France 663 669 673 670 678 Germany 588 582 579 565 563 Belgium & Luxembourg 323 317 315 319 317 Italy 269 275 281 286 290 Iberia 360 354 349 352 34
Slide 27: corporate staff by region
corporate staff by region. average Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 North America 5,660 5,690 5,700 5,750 5,740 the Netherlands 4,350 4,310 4,310 4,210 4,160 France 4,410 4,390 4,240 4,140 3,790 Germany 3,020 2,820 2,760 2,720 2,640 Belgium & Luxembourg 2,100 2,130 2,160 2,030 1,950 Italy 2,1
Slide 28: staffing employees by region
staffing employees by region. average Q1 2018 Q1 2017 North America 97,300 98,100 the Netherlands 80,900 80,700 France 84,000 79,400 Germany 47,200 46,800 Belgium & Luxembourg 42,900 40,100 Italy 48,000 41,200 Iberia 66,600 62,800 Other European countries 64,000 63,400 Rest of the world 109,000 110,
Slide 29: eaese
eaese human forward. MW