Slide 1: 1st quarter 2021 results
1st quarter 2021 results. Randstad delivers a strong set of results in the first quarter of 2021. Jacques van den Broek, CEO Henry Schirmer, CFO Randstad N.V. 21 April 2021
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 13 Q&A 19 appendices 20 © Randstad 2021 | 4
Slide 5: Performance moving forward
performance moving forward. © Randstad 2021 | 5
Slide 6: Q1 2021: strong start to the year
Q1 2021: strong start to the year. highlights Q1 key financials resilience & agility continued market recovery organic growth 6.4% YoY diversified portfolio paying off market share gains EBITA € 202m, 3.7% margin net addition ~1,000 FTE approaching ‘19 activity levels L4Q recovery ratio 51% producti
Slide 7: Approaching 2019 activity levels
approaching 2019 activity levels. weekly temp volume evolution week 1 - week 15 January February March April © Randstad 2021 | 7
Slide 8: North America and France
north america france continued growth momentum. market outperformance. ● revenue up 5% (Q4: up 1%) ● revenue up 4% (Q4: down 7%) ○ perm down 7% (Q4: down 21%) ○ perm up 3% (Q4: down 10%) ● US Staffing & Inhouse revenue up 12% (Q4: up 7%) ● Staffing & Inhouse up 7% (Q4: down 6%) ● US Professionals re
Slide 9: The Netherlands and Germany
the netherlands germany recovery well underway. return to growth. ● revenue up 9% (Q4: down 6%) ● revenue up 5% (Q4: down 5%) ○ perm down 21% (Q4: down 25%) ● Staffing & Inhouse up 9% (Q4: down 4%) ● Staffing & Inhouse up 11% (Q4: down 7%) ● Professionals down 18% (Q4: down 11%) ● Professionals up 1
Slide 10: Belgium and Italy
belgium italy strengthening market leadership. accelerating growth. ● revenue up 1% (Q4: down 3%) ● revenue up 20% (Q4: flat) ○ Staffing & Inhouse stable (Q4: down 3%) ● perm up 19% (Q4: down 12%) ● EBITA margin at 4.4% vs. 4.5% LY ○ diversified portfolio contributing ● EBITA margin at 5.2% vs. 3.3%
Slide 11: Iberia and other European countries
iberia other european countries solid profitability. returning to growth. ● spain revenue down 2% (Q4: down 5%) ● UK revenue up 11% (Q4: down 14%) ● portugal revenue down 2% (Q4: down 3%) ● nordics down 4% (Q4: down 13%) ● EBITA margin at 4.4% vs. 4.4% LY ● switzerland down 14% (Q4: down 1%) ● polan
Slide 12: Rest of the world and global businesses
rest of the world global businesses firing on all cylinders. career transition initiatives paying off. ● japan up 4% (Q4: down 4%) ● global businesses up 4% (Q4: down 7%) ● australia & new zealand up 15% (Q4: down 5%) ● monster revenue down 21% (Q4: down 26%) ● india up 8% (Q4: up 1%) ● sourceright
Slide 13: Financial results & outlook
financial results & outlook. © Randstad 2021 | 13
Slide 14: Q1 2021: a strong set of results
Q1 2021: a strong set of results. Q1 performance Q1 key financials € million Q1 ’21 Q1 ’20 % org. revenue 5,528 5,414 6% gross profit 1,060 1,052 6% gross margin 19.2% 19.4% • organic revenue up 6% YoY, improving operating expenses* 858 890 0% momentum throughout the quarter opex % 15.5% 16.4% EBITA
Slide 15: Q1 2021 gross margin impacted by mix, stable pricing
Q1 2021 gross margin impacted by mix, stable pricing. Q1 gross margin development YoY Q1 highlights • temp margin stable YoY with pricing climate stable • perm fees declined 5% YoY, -10bp mix impact on gross margin • HRS/other -10bp YoY, impacted by mix effects © Randstad 2021 | 15
Slide 16: Gearing up for growth
gearing up for growth. Q1 sequential opex bridge tapping into the flexibility of the cost base • organic opex stable YoY, personnel expenses +7% sequentially (net addition of 980 FTE) • continued momentum for accelerating investments in growth and digitalization • cost optimization program of € 120m
Slide 17: Sound balance sheet
sound balance sheet. Q1 2021 free cash flow sound balance sheet • net cash € 387m excluding lease liabilities • Q1 FCF € 4m (vs. € -12m in Q1 2020) • leverage ratio excl. IFRS 16: -0.5 • Q1 underlying EBITDA ~€ 50m up YoY; operating working capital ~€ 50m down YoY • regular dividend of € 1.62 per sh
Slide 18: Conclusion and outlook: gearing up for growth
conclusion and outlook: gearing up for growth. Q1 conclusion and outlook activity momentum • gross margin expected to be slightly higher sequentially due to seasonality • activity momentum compared to 2019 • operating expenses expected to be up low to improved through the quarter mid single digit se
Slide 19: Questions & answers
questions & answers. © Randstad 2021 | 19
Slide 20: Appendices
appendices randstad. © Randstad 2021 | 20
Slide 21: Outlets by region
outlets by region. end of period Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 North America 1,156 1,158 1,130 1,106 1,136 France 648 642 643 643 649 the Netherlands 591 583 603 603 647 Germany 522 493 487 489 487 Belgium & Luxembourg 321 321 329 325 328 Italy 270 263 263 262 262 Iberia 384 379 384 388 38
Slide 22: Corporate staff by region
corporate staff by region. average Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 North America 6,010 5,860 5,660 5,680 5,880 France 4,310 4,290 4,090 3,460 4,610 the Netherlands 3,650 3,580 3,640 3,740 3,970 Germany 2,670 2,510 2,140 2,170 2,590 Belgium & Luxembourg 1,940 1,940 1,820 1,460 1,940 Italy 2,2
Slide 23: Staffing employees by region
staffing employees by region. average Q1 2021 Q1 2020 North America 92,200 92,000 France 76,900 78,300 the Netherlands 65,200 67,200 Germany 34,200 34,400 Belgium & Luxembourg 37,400 40,900 Italy 46,500 42,500 Iberia 54,200 57,500 Other European countries 58,300 52,800 Rest of the world 129,800 120,
Slide 24: eaese
eaese human forward WM