Slide 1: Full-year results
Full-year results Robert Walters Plc 10 March 2023
Slide 2: Our brands
Full-year results About us Our brands Specialist professional Specialist staffing Recruitment process recruitment outsourcing Robert Walters recruits specialists Walters People is the staffing specialist Resource Solutions is a market for permanent, contract and interim for tomorrow’s working world
Slide 3: Our strategy and mission
Full-year 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 loca
Slide 4: Strategy in action
Full-year results Strategy in action New country New teams 1 3 49 New offices in (Italy) existing regions opened in 2022 (Austin, Bilbao, Berlin) (Technology recruitment teams now in every business globally) 4
Slide 5: Financial review
Full-year results Financial review 5
Slide 6: Group performance
Full-year results Group performance Net fee income up 21% (20%*) to £428.2m (2021: £353.6m) Operating profit up 8% (9%*) to £58.2m (2021: £54.1m) Profit before taxation up 11% (12%*) to £55.6m (2021: £50.2m) H1 - Fierce competition for talent and significant wage inflation (circa 15-20%) H
Slide 7: Consolidated income statement and financial review
Full-year results Consolidated income statement and financial review 12 months to 12 months to % Change £ % Change 31 Dec 2022 31 Dec 2021 (constant currency*) Revenue1 1,099.6m 970.7m 13% 12% Gross profit (net fee income)2 428.2m 353.6m 21% 20% Operating profit 58.2m 54.1m 8% 9% Interest and foreig
Slide 8: Summary of Group balance sheet
Full-year results Summary of Group balance sheet As at As at £m 31 Dec 2022 31 Dec 2021 Goodwill 8.1 8.1 Tangible assets and computer software 35.5 25.6 Right-of-use asset 71.6 62.6 115.2 96.3 Receivables 221.4 190.4 Payables and provisions (182.5) (176.7) Lease liabilities (76.4) (66.4) 77.7 43.6 C
Slide 9: Summary of cash flow
Full-year results Summary of cash flow 12 months to 12 months to £m 31 Dec 2022 31 Dec 2021 Operating profit 58.2 54.1 Depreciation, amortisation and impairment 22.1 20.2 Share-based payments and other non-cash items 2.5 2.3 Unrealised foreign exchange loss (gain) 3.8 (0.3) Working capital movements
Slide 10: Regional analysis (net fee income)
Full-year results Regional analysis (net fee income) 12 months to 31 Dec 2022 12 months to 31 Dec 2021 17% 19% UK (£74.0m) UK (£68.7m) 46% 47% Asia Pacific Asia Pacific (£193.8m) (£164.2m) 29% 27% 8% Europe (£124.1m) 7% Europe (£95.3m) Other International Other International (£25.4m) (£36.3m) 10
Slide 11: Net fee income by geography
Full-year results Net fee income by geography Asia Pacific 8% UK 80% (46% of Group NFI) 10% 29% (17% of Group NFI) 20% Japan 2021: 32% London 2021: 79% Greater China 2021: 18% Regions 2021: 21% Australia 2021: 20% Other 2021: 15% 14% New Zealand 2021: 9% Singapore 2021: 6% 19% 20% Europe 7% Other In
Slide 12: Net fee income by discipline
Full-year results Net fee income by discipline 3% 3% 4% 4% 34% Commerce Finance 2021: 33% Technology 2021: 21% 4% Banking Finance 2021: 11% Sales and Marketing 2021: 11% Legal 2021: 6% HR 2021: 3% 6% Engineering & Construction 2021: 5% Support 2021: 4% Procurement 2021: 3% Other 2021: 3% 9% 12% 21%
Slide 13: Track record of growth
Full-year results Track record of growth Net fee income 2007 - 2022 450,000 400,000 350,000 300,000 250,000 £000's 200,000 150,000 100,000 50,000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Operating Profit 2007 - 2022 70,000 60,000 50,000 40,000 £000's 30,000 2
Slide 14: Track record of growth: dividends and EPS
Full-year results Track record of growth Dividend Payments 2007 – 2022 (progressive policy) 25.00 20.00 15.00 Pences 10.00 5.00 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Earnings per share 2007 - 2022 60.00 50.00 40.00 Pences 30.00 20.00 10.00 0.00 2007 200
Slide 15: Operations review
Full-year results Operations review 15
Slide 16: Operational management team
Full-year results Operational management team 38* 21* Robert Walters Alan Bannatyne Group CEO Chief Financial Officer 23* 16* Toby Fowlston Norma Gillespie CEO, RW & WP CEO, RS 23* 18* 14* 13* 8* 24* 2* Chris Hickey Rob Vermaak Marco Laveda Shay Peters Hazel Kristen Kristin CEO, UKI, CEO, Benelux, C
Slide 17: Asia Pacific (46% of net fee income)
Full-year results Asia Pacific (46% of net fee income) Asia Pacific Permanent/contract 24% Net fee income: £193.8m (2021: £164.2m) recruitment Contract 2021: 26% Operating profit: £37.5m (2021: £36.5m) 76% Permanent 2021: 74% Locations: Australia New Zealand Hong Kong Philippines India Singapore
Slide 18: Asia Pacific: Japan and South Korea
Full-year results Asia Pacific Japan and South Korea Japan The Group’s most profitable business – clear market leader in bilingual professional recruitment Record year. Net fee income increased by 16%* and operating profit by 6%* Market conditions impacted by disruption of trade with China. In
Slide 19: Asia Pacific: Australia and New Zealand
Full-year results Asia Pacific Australia and New Zealand Australia Region’s second largest business. Net fee income increased by 9%* and operating profit by 4%* year-on-year Ripple effect of China slowdown in addition to strong inflationary pressure impacted market confidence especially in the s
Slide 20: Asia Pacific: Greater China and South-East Asia
Full-year results Asia Pacific Greater China and South-East Asia Unrivalled footprint – including some of the world’s fastest growing emerging recruitment markets. Strong platform for long- term growth Greater China Mainland China significantly impacted by Covid-related lockdowns and disruption
Slide 21: Europe (29% of net fee income)
Full-year results Europe (29% of net fee income) Europe Permanent/contract/interim 23% Net fee income: £124.1m (2021: £95.3m) recruitment Interim 2021: 21% Operating profit: £17.6m (2021: £13.7m) 55% Permanent 2021: 56% Locations: Belgium France Germany 22% Contract Ireland 2021: 23% Italy Nethe
Slide 22: Europe
Full-year results Europe Strong performance across region. Seven out of nine markets delivered record performances Blend of permanent, contract and interim recruitment solutions continues to be a key competitive advantage allowing us to service diverse client requirements irrespective of market
Slide 23: UK (17% of net fee income)
Full-year results UK (17% of net fee income) UK Permanent/contract Net fee income: £74.0m (2021: £68.7m) recruitment 23% Contract 2021: 24% Operating profit: £3.4m (2021: £3.3m) 77% Permanent 2021: 76% Locations: Birmingham Bracknell Liverpool London Manchester Milton Keynes St Albans Recruitmen
Slide 24: UK
Full-year results UK Solid and broad-based growth – permanent and contract across London and the regions Job flow remained largely positive throughout the year despite some softening in the second half While concerns about recession do remain, the underlying job market sentiment is on the whol
Slide 25: Other International (8% of net fee income)
Full-year results Other International (8% of net fee income) Other International Permanent/contract Net fee income: £36.3m (2021: £25.4m) recruitment Operating loss: £0.3m (2021: profit £0.6m) 100% Permanent 2021: 100% Locations: Brazil Canada Chile Mexico Middle East South Africa US Recruitment
Slide 26: Other International: Americas, South Africa, Middle East
Full-year results Other International Americas South Africa US business significantly impacted by mass tech sector Pipeline of qualified candidates moving from SA to the layoffs UK continues to grow as a result of open border policies Impact not limited to West Coast – spread into financial po
Slide 27: Resource Solutions: Core service propositions
Full-year results Resource Solutions Core service propositions RPO (Recruitment Process Non-permanent workforce Advisory Outsourcing) solutions Delivering the functionality of an in-house Helping our clients build a balanced, Our consulting services are delivered recruitment team. Our services are d
Slide 28: Resource Solutions
Full-year results Resource Solutions Net fee income in the UK declined by 6% year-on-year with placement rates impacted in the first half of the year by candidate shortages and delays in the time taken to onboard new hires Business remained resilient with performance improving as the year progre
Slide 29: Technology & Transformation
Full-year 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 whilst realising strong commercial benefits Mad
Slide 30: Innovation
Full-year results Innovation Innovation Driven Consultancy in Innovation Accelerator: ED&I CV of the Future Back in 2021, the Group took the unique opportunity to purchase the source code of an innovative CV formatting and marketplace technology. 20 Throughout 2022, the team successfully developed a
Slide 31: ESG: Our new targets
Full-year results ESG: Our new targets Working with Sillion, a leading ESG consultancy, we have set robust ESG targets which align to the UN’s Sustainable Development Goals (SDG’s) Engaging our workforce Enhancing our ED&I Responding to a sustainable initiatives world of work Employee engagement • 8
Slide 32: ESG: Our new targets
Full-year results ESG: Our new targets Reducing our environmental Supporting our communities Being a responsible business impact • Reach net zero across Scope 1 and 2 • £500k raised through Global Charity • Executive remuneration to be linked GHG emissions by 2040 Day fundraising over the next three
Slide 33: ESG: Awards and Accreditations
Full-year results ESG: Awards and Accreditations We have been accepted as a participant of the United Nations In 2022, the Group was once again listed as a constituent member Global Compact, the largest corporate sustainability initiative in of the FTSE4Good index for the fourteenth consecutive year
Slide 34: Outlook
Full-year results Outlook “The global macro-economic backdrop became increasingly uncertain as 2022 progressed and this uncertainty has tipped over into the early months of 2023. “Whilst it’s too early to tell whether this is a short-lived correction or a more prolonged economic slowdown, we have su
Slide 35: Appendix
Full-year results Appendix 35
Slide 36: ED&I global webinars
Full-year results ED&I global webinars Over 1,000 How do inclusive leaders think and act? Transforming yourself into an registrations inclusive leader across 2 webinars How to remove bias from the recruitment process and increase diverse hiring Social media plan promoting the live webinars and webin
Slide 37: ESG communications
Full-year results ESG communications 72.6k impressions 5.6k video views 900+ employees We recognised key ESG days on social including International Day of Charity, World Environment Day and World Day to Combat Desertification and Drought, and hosted two internal webinars for employees to share our E
Slide 38: UK New Artist of the Year Award 2022
Full-year results Robert Walters Group UK New Artist of the Year Award 2022 1,348 entries (44% increase on 2021) 1.3M social media impressions Best Arts and Culture Programme 676k video views 15k clicks Best Collaboration on a Single Event 38
Slide 39: Supporting our communities
Full-year results Supporting our communities £151.5k raised for local charities around the world, including: 39
Slide 40: Brand-building and market share
Full-year results Brand-building and market share Providing value-added commentary, thought leadership, best practice guides, webinars, podcasts and digital events to keep key stakeholders informed on market and recruitment trends Podcasts 88 110,016 117 10,169 E-guides E-guide Webinars and Live & o
Slide 41: Awards
Full-year results Awards UK Greater China Netherlands Middle East Resource Solutions UK’s Top 25 Companies for Senior Leadership Japan South Korea Australia Group Switzerland 41