Robert Walters Plc · LSE:RWA
Robert Walters — H1 2021 Earnings Presentation
39 slides from Robert Walters's earnings presentation, Jul 27, 2021
Slide 1: Half-yearly results
Half-yearly results Robert Walters Plc 27 July 2021
Slide 2: Our strategy and mission
Half-yearly results About us Our strategy The Group’s strategy for growth is centred on organic international expansion and discipline diversification, ensuring a balanced footprint covering mature and developing markets. International expansion Driving growth through expansion into new geographic l
Slide 3: Our brands
Half-yearly results About us Our brands Specialist professional Specialist Recruitment process recruitment staffing outsourcing Robert Walters recruits specialists Walters People specialises in Resource Solutions is a market for permanent, contract and interim temporary/contract and junior leader in
Slide 4: Financial review
Half-yearly results Financial review 4
Slide 5: Group highlights, performance and regional analysis
Half-yearly results Group highlights Group performance Net fee income up 5% (up 8%*) to £166.2m (2020: £158.5m) Operating profit up 478% (up 507%*) to £24.1m (2020: £4.2m) Profit before taxation up 414% (up 443%*) to £22.1m (2020: £4.3m) 79% (2020: 77%) of net fee income generated from inter
Slide 6: Consolidated Group income statement and financial review
Half-yearly results Consolidated Group income statement and financial review 6 months to 6 months to % Change 12 months to £ % Change 30 June 2021 30 June 2020 (constant currency*) 31 Dec 2020 Revenue1 468.2m 496.4m (6%) (5%) 938.4m Net fee income2 166.2m 158.5m 5% 8% 302.4m Operating profit 24.1m 4
Slide 7: Summary of Group balance sheet
Half-yearly results Summary of Group balance sheet As at As at As at £m 30 June 2021 30 June 2020 31 Dec 2020 Goodwill 8.1 8.1 8.0 Tangible assets and computer software 20.1 17.5 19.3 Right-of-use assets 59.9 69.0 59.5 88.1 94.6 86.8 Receivables 161.3 172.5 153.0 Payables and provisions (145.4) (154
Slide 8: Summary of cash flow
Half-yearly results Summary of cash flow 6 months to 6 months to 12 months to £m 30 June 2021 30 June 2020 31 Dec 2020 Operating profit 24.1 4.2 14.8 Depreciation and amortisation 11.1 11.4 25.5 Share-based payments and other non-cash items 1.4 2.9 2.2 Unrealised foreign exchange (gain) loss (1.8) 3
Slide 9: Regional analysis (net fee income)
Half-yearly results Regional analysis (net fee income) 6 months to 30 June 2021 6 months to 30 June 2020 21% 23% UK (£36.3m) UK (£35.2m) 45% 40% Asia Pacific Asia Pacific (£73.7m) (£63.9m) 27% 28% 7% Europe (£45.2m) 9% Europe (£44.5m) Other International Other International (£12.1m) (£13.8m) 9
Slide 10: Net fee income by geography (H1 2021 v H1 2017)
Half-yearly results Net fee income by geography (H1 2021 v H1 2017) Asia Pacific 20% UK 16% 84% (45% of Group NFI) 26% (21% of Group NFI) Japan 32% 2017: 27% London 84% 2017: 85% Other 26% 2017: 22% Regions 16% 2017: 15% Australia 20% 2017: 24% 8% Hong Kong 8% 2017: 12% 6% New Zealand 8% 2017: 6% Si
Slide 11: Net fee income by discipline (H1 2021 v H1 2017)
Half-yearly results Net fee income by discipline (H1 2021 v H1 2017) 2% 4% 5% 2% 34% Commerce Finance 34% 2017: 34% IT 20% 2017: 15% 4% Banking Finance 11% 2017: 16% Sales and Marketing 10% 2017: 9% Engineering and Construction 5% 2017: 5% 5% Legal 5% 2017: 4% Procurement 4% 2017: 4% Support 4% 2017
Slide 12: Headcount H1 2017 – H1 2021
Half-yearly results Headcount H1 2017 – H1 2021 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 H1 2017 H1 2018 H1 2019 H1 2020 H1 2021 12
Slide 13: Track record of growth
Half-yearly results Track record of growth Net fee income 2007 - 2021 450,000 400,000 350,000 300,000 250,000 FY £000's 200,000 H1 150,000 100,000 50,000 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Operating profit 2007 - 2021 60,000 50,000 40,000 30,000 £000's FY 20
Slide 14: Track record of growth: dividends and EPS
Half-yearly results Track record of growth Dividend payments 2007 - 2021 18.00 16.00 14.00 12.00 Pences 10.00 FY 8.00 H1 6.00 4.00 2.00 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Earnings per share 2007 - 2021 60.00 50.00 40.00 30.00 Pences FY 20.00 H1 10.00 - (10.0
Slide 15: Operations review
Half-yearly results Operations review 15
Slide 16: Operational management team
Half-yearly results Operational management team 36* 19* Robert Walters Alan Bannatyne Group CEO Chief Financial Officer 21* 14* Toby Fowlston Norma Gillespie CEO, RW & WP CEO, RS 21* 16* 12* 18* 12* 22* 1* Chris Hickey Rob Vermaak Marco Laveda James Dave Barr Kristen Pete CEO, UKI, CEO Benelux, CEO,
Slide 17: Our philosophy
Half-yearly results Our philosophy Philosophy Specialist professional recruitment is a relationship business #StopTappingStartTalking Technology as an enabler to free up consultants to focus on relationship building Drive candidate and client referrals based on quality of service Staff attract
Slide 18: Asia Pacific (45% of net fee income)
Half-yearly results Asia Pacific (45% of net fee income) Asia Pacific Permanent/contract 25% Net fee income: £73.7m (2020: £63.9m) recruitment Contract 2020: 30% Operating profit: £14.0m (2020: £2.9m) 75% Permanent 2020: 70% Locations: Australia New Zealand Hong Kong Philippines India Singapore
Slide 19: Japan and South Korea
Half-yearly results Asia Pacific Japan and South Korea Japan The Group’s most profitable business Strong performance with net fee income increasing 18%* year-on-year despite a backdrop of multiple state of emergency declarations during the period Acute shortage of bilingual professionals acros
Slide 20: South East Asia and Greater China
Half-yearly results Asia Pacific South East Asia and Greater China Unrivalled footprint – including some of the world’s fastest growing, emerging recruitment markets Greater China Strong recovery in Mainland China with net fee income up 90%* year-on-year Vacancy numbers at a record high. Indus
Slide 21: Australia and New Zealand
Half-yearly results Asia Pacific Australia and New Zealand Strong government action has enabled both markets to keep infection levels relatively low. A block on immigration has created an acute talent shortage resulting in fierce competition and wage inflation Australia Strong net fee income (11%*
Slide 22: Europe (27% of net fee income)
Half-yearly results Europe (27% of net fee income) Europe Permanent/contract 21% Net fee income: £45.2m (2020: £44.5m) recruitment Interim 2020: 24% Operating profit: £6.2m (2020: £1.5m) 58% Permanent 2020: 48% Locations: Benelux Czech Republic 21% Contract France 2020: 28% Germany Ireland Portu
Slide 23: Europe
Half-yearly results Europe Europe Breadth of permanent, contract and interim recruitment solutions provides a competitive advantage which continues to enable us to service the full range of client requirements Permanent recruitment bounced back strongly across all markets as the first half progr
Slide 24: UK (21% of net fee income)
Half-yearly results UK (21% of net fee income) UK Permanent/contract Net fee income: £35.2m (2020: £36.3m) recruitment 24% Contract 2020: 38% Operating profit: £3.3m (2020: £0.0m) 76% Locations: Permanent Birmingham 2020: 62% Bracknell London Manchester Milton Keynes St Albans Recruitment net fe
Slide 25: UK
Half-yearly results UK UK Significant acceleration in market confidence and vacancy growth through the second quarter in parallel to the easing of lockdown restrictions Organisations have moved from no hiring or just replacement hiring to a hiring-for-growth mentality Demand has surged across
Slide 26: Other International (7% of net fee income)
Half-yearly results Other International (7% of net fee income) Other International Permanent/contract Net fee income: £12.1m (2020: £13.8m) recruitment Operating profit: £0.6m (2020: operating loss of £0.2m) 100% Permanent 2020: 100% Locations: Brazil Canada Chile Mexico Middle East South Africa
Slide 27: Other International
Half-yearly results Other International Americas South Africa US market buoyed in second quarter – rapid vaccine Net fee income and operating profit growth but roll-out and ending of restrictions in New York and economic and social/political (incl. Covid) backdrop is California extremely volatil
Slide 28: Resource Solutions: Core product propositions
Half-yearly results Resource Solutions Core product propositions RPO Non-permanent workforce Advisory From full RPO to modular and project RPO, solutions Helping our clients build a balanced, Our consulting services are delivered our services are designed with client and with deep speciality and gro
Slide 29: Resource Solutions
Half-yearly results Resource Solutions Activity levels more muted relative to core recruitment business due to lag effect of organisations rebuilding recruitment teams as cycle turns positive Successfully secured a number of new contract renewals and extensions with existing clients across all r
Slide 30: Technology & Transformation: Driving efficiency with Microsoft, Project Zenith
Half-yearly results Technology & Transformation As a business with innovation embedded at its core, being at the cutting edge of technological change has paid dividends in terms of our readiness to face the continued and unique challenges presented to us. Driving efficiency with Microsoft Project Ze
Slide 31: Innovation
Half-yearly results Innovation Thought Leadership During H1, the Innovation team Recruitment Inclusivity Audit presented at events including the Following the successful launch of Advisory prestigious D&I Leaders Summit, Services in H2 2020, many clients have now Recruitment Leaders 100, Gallagher H
Slide 32: Progressing our ESG strategy
Half-yearly results Progressing our ESG strategy We were named as a finalist in the The Group achieved an AA rating in ESG Reporting Awards 2021 alongside the MSCI ESG Ratings assessment major brand such as NatWest Group, which positions us as an ESG leader in RWE and Philip Morris International. ou
Slide 33: Telling our ESG story
Half-yearly results Telling our ESG story We partnered with She Codes to create the Our three businesses shared content We leveraged key environmental first-ever International Women’s Day celebrating LGBTQ+ Pride and hosted a awareness days to showcase our long- Coding Challenge, encouraging women t
Slide 34: Developing our people
Half-yearly results Corporate responsibility Developing our people Figures as at 30 June 2021 200+ 81 475 60 Leadership coaching Languages spoken by our Internal promotions across Nationalities represented sessions delivered employees the Group in H1 2021 across the Group F274 : M201 Snapshot of rec
Slide 35: Supporting the communities where we work
Half-yearly results Corporate responsibility Supporting the communities where we work 35
Slide 36: Brand-building and market share
Half-yearly results Brand-building and market share Our global Salary Survey went digital in 2021. It continues to provide the We launched our first latest job market insights, global Robert Walters advice and salary trends to Group newsletter, our clients and candidates Powering People, which aroun
Slide 37: A snapshot of our recent awards
Half-yearly results Awards A snapshot of our recent awards UK Group Resource Solutions Finalist Middle East Australia France Japan South Korea 37
Slide 38: The future
Half-yearly results The future 38
Slide 39: Outlook
Half-yearly results Outlook “Trading is comfortably ahead of current market expectations for the full year, and we enter the second half of the year with cautious optimism and confidence that we will continue to take advantage of market opportunities as they arise.” 39