Robert Walters PLC · LSE:RWA
Robert Walters — FY2017 Earnings Presentation
30 slides from Robert Walters's earnings presentation, Mar 1, 2018
Slide 1: Full Year Results
FULL YEAR RESULTS Robert Walters plc 01 March 2018 # AUSTRALIA ・ BELGIUM ・ BRAZIL ・ CANADA ・ CHINA ・ FRANCE ・ GERMANY ・ HONG KONG ・ INDIA ・ INDONESIA IRELAND ・ JAPAN ・ LUXEMBOURG ・ MALAYSIA ・ NETHERLANDS ・ NEW ZEALAND ・ PHILIPPINES ・ PORTUGAL ・ SINGAPORE SOUTH AFRICA ・ SOUTH KOREA ・ SPAIN ・ SWITZERL
Slide 2: Agenda
GROUP OVERVIEW & HIGHLIGHTS Robert Walters, Chief Executive Officer FINANCIAL REVIEW Alan Bannatyne, Chief Financial Officer AGENDA OPERATIONS REVIEW Giles Daubeney, Deputy Chief Executive Officer THE FUTURE Robert Walters, Chief Executive Officer # © Robert Walters plc
Slide 3: Group Vision, Brands and Services
GROUP VISION, BRANDS AND SERVICES Vision: to be the leading global specialist professional recruitment group ROBERT WALTERS GROUP SPECIALIST CLERICAL RECRUITMENT PROFESSIONAL RECRUITMENT PROCESS RECRUITMENT EUROPE OUTSOURCING 3 © Robert Walters plc
Slide 4: Employer Brand
EMPLOYER BRAND 4 © Robert Walters plc
Slide 5: Group Highlights
GROUP HIGHLIGHTS § Record Group performance • Net fee income up 24% (20%*) to £345.2m (2016: £278.3m) • Operating profit up 60% (54%*) to £41.9m (2016: £26.2m) • Profit before taxation up 44% (50%*) to £40.6m (2016: £28.1m) • All regions grew both net fee income and operating profit • 71% of net fee
Slide 6: Financial Review
FINANCIAL REVIEW — ROBERT WALTERS De
Slide 7: Financial Review
FINANCIAL REVIEW 12 MONTHS TO 12 MONTHS TO % CHANGE % CHANGE £ 31 DEC 2017 31 DEC 2016 (CONSTANT CURRENCY*) REVENUE 1.2bn 998.5m 17% 14% GROSS PROFIT (NET FEE INCOME) 345.2m 278.3m 24% 20% OPERATING PROFIT 41.9m 26.2m 60% 54% PROFIT BEFORE TAXATION 40.6m 28.1m 44% 50% § Basic earnings per share incr
Slide 8: Consolidated Group Income Statement
CONSOLIDATED GROUP INCOME STATEMENT 12 MONTHS TO 12 MONTHS TO £M 31 DECEMBER 2017 31 DECEMBER 2016 REVENUE 1 1,165.8 998.5 NET FEE INCOME 2 345.2 278.3 OPERATING PROFIT 41.9 26.2 INTEREST AND FOREIGN EXCHANGE (1.3) 1.9 PROFIT BEFORE TAXATION 40.6 28.1 TAXATION (11.3) (8.2) PROFIT FOR THE YEAR 29.3 1
Slide 9: Summary of Group Balance Sheet
SUMMARY OF GROUP BALANCE SHEET AS AT AS AT £M 31 DECEMBER 2017 31 DECEMBER 2016 GOODWILL 8.1 8.1 TANGIBLE ASSETS & COMPUTER SOFTWARE 12.9 11.5 21.0 19.6 RECEIVABLES 227.6 236.5 PAYABLES & PROVISIONS (164.1) (181.4) 63.5 55.1 CURRENT AND DEFERRED TAX 6.2 4.7 NET CASH 31.1 22.5 NET ASSETS 121.8 101.9
Slide 10: Summary of Group Cashflow
SUMMARY OF GROUP CASHFLOW 12 MONTHS TO 12 MONTHS TO £M 31 DECEMBER 2017 31 DECEMBER 2016 OPERATING PROFIT 41.9 26.2 DEPRECIATION & AMORTISATION 4.7 4.2 SHARE-BASED PAYMENTS & OTHER NON-CASH ITEMS 6.0 5.3 WORKING CAPITAL MOVEMENTS (9.6) 1.5 CASH GENERATED BY OPERATING ACTIVITIES 43.0 37.2 TAXATION PA
Slide 11: Regional Analysis
REGIONAL ANALYSIS Net Fee Income 12 months to 31 Dec 2017 12 months to 31 Dec 2016 40% 42% Asia Pacific Asia Pacific (£136.6m) (£117.6m) 29% 31% UK UK (£100.9m) (£86.7m) 8% 23% 5% 22% Other International Other International Europe Europe (£27.1m) (£14.0m) (£60.1m) (£80.6m) 11 © Robert Walters plc
Slide 12: Track Record of Growth
TRACK RECORD OF GROWTH Net Fee Income 2013 - 2017 Profit Before Taxation 2013 - 2017 400,000 45,000 350,000 40,000 300,000 35,000 250,000 30,000 £000's £000's 25,000 200,000 20,000 150,000 15,000 100,000 10,000 50,000 5,000 0 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Operating Profit 2013
Slide 13: Operations Review
OPERATIONS REVIEW — ROBERT WALTERS De
Slide 14: Management Team
MANAGEMENT TEAM § Established and experienced senior management team § On-going commitment to grow management from within § International career opportunities Giles Daubeney Deputy Chief Executive Officer (30)* David Swan Toby James Matthew Chris Hickey Antoine Simon Kurt Kraeger Martin Fox Oliver H
Slide 15: Asia Pacific (40% of net fee income)
ASIA PACIFIC (40% of net fee income) § Net fee income: £136.6m (2016: £117.6m) Permanent/contract recruitment split § Operating profit: £17.7m (2016: £14.7m) 25% Locations: Contract (2016: 25%) Australia Philippines China Singapore Hong Kong South Korea 75% India Taiwan Permanent Indonesia Thailand
Slide 16: Asia Pacific
ASIA PACIFIC Japan • Record results in both Tokyo and Osaka. Group’s most profitable country • Leading brand in this high growth and high margin market • Highly network driven – headhunt and referral dominated • Demand for bilingual professionals remains driven by multi-national corporates and globa
Slide 17: Asia Pacific
ASIA PACIFIC Asia ex. Japan § Growth broad-based across both established and emerging recruitment markets • All of the Group’s emerging markets delivered record performances • Indonesia, Vietnam and Thailand delivered the strongest growth • Demand for bilingual professionals across emerging markets
Slide 18: UK (29% of net fee income)
UK (29% of net fee income) § Net fee income: £100.9m (2016: £86.7m) Permanent/contract recruitment split § Operating profit: £11.8m (2016: £6.4m) 39% Contract Locations: (2016: 41%) Birmingham Guildford London Manchester 61% Milton Keynes Permanent St Albans (2016: 59%) Average tenure Recruitment ne
Slide 19: UK
UK § Economic and political backdrop continues to be uncertain § Client and candidate confidence remains generally cautious but pockets of confidence exist in growth sectors • London & South East • Activity levels highest in technology, legal, financial services and commerce finance • UK regions • G
Slide 20: Europe (23% of net fee income)
EUROPE (23% of net fee income) § Net fee income: £80.6m (2016: £60.1m) Permanent/contract/interim recruitment split § Operating profit: £11.3m (2016: £4.2m) 19% Interim (2016:19%) Locations: Benelux France Germany 55% Ireland Permanent Portugal (2016: 54%) 26% Contract Spain (2016: 27%) Switzerland
Slide 21: Europe
EUROPE § Outstanding performance across the whole region • Blend of permanent, contract and interim recruitment solutions is a key driver of growth § Belgium, Germany, Portugal, the Netherlands and Spain all delivered net fee income growth in excess of 20% continuing the strong performances we have
Slide 22: Other International (8% of net fee income)
OTHER INTERNATIONAL (8% of net fee income) § Net fee income: £27.1m (2016: £14.0m) Permanent/contract recruitment split § Operating profit: £1.1m (2016: £0.9m) 100% Locations: Permanent (2016: 100%) Brazil Canada Middle East South Africa USA Average tenure Recruitment net fee income by discipline 9%
Slide 23: Other International
OTHER INTERNATIONAL § North & South America • Demand still strong across the digital and tech space in San Francisco • Financial services remains relatively subdued in New York • Canada has started well and delivered a strong year one performance • Market conditions remain challenging in Brazil but
Slide 24: Resource Solutions
RESOURCE SOLUTIONS — ROBERT WALTERS De
Slide 25: Resource Solutions – The Model
RESOURCE SOLUTIONS – THE MODEL Market-leading recruitment process outsourcing business SOURCE OF FEE INCOME DIRECT ON-SITE PAYROLL RECRUITMENT STAFF PAYROLL *The Recruitment Process Outsourcing (RPO) market is forecast to grow by 15.4% per annum through to 2019 (Source: Nelson Hall). 25 © Robert Wal
Slide 26: Resource Solutions
RESOURCE SOLUTIONS § Strong net fee income growth across the UK, Europe, US and Asia § Multi-country RPO services in high demand. Clients across 60 countries. Headcount now over 1,500 § 44,000 permanent and temp placements. Over 16,000 temps under management § New client wins in retail, mobile, prop
Slide 27: Awards & CSR
AWARDS & CSR Awards CSR 27 © Robert Walters plc
Slide 28: The Future
THE FUTURE — ROBERT WALTERS De
Slide 29: An Ever-Changing World
AN EVER-CHANGING WORLD Tech/Idea POCs Delivered Pipeline 120 18 Talent Insights Career Coach Data Led Attraction & Offer & Application Assessment Interview Sourcing Engagement Onboarding 29 © Robert Walters plc
Slide 30: People Process Profit
PEOPLE PROCESS PROFIT 30 © Robert Walters plc