Slide 1: 2nd quarter 2020 results
2nd quarter 2020 results. resilient and competitive performance amidst Covid-19. Jacques van den Broek, CEO Henry Schirmer, CFO Randstad N.V. 21 July 2020
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 12 Q&A 18 appendices 19 © Randstad 2020 | 4
Slide 5: Performance moving forward
performance moving forward. © Randstad 2020 | 5
Slide 6: Resilient and competitive performance amidst Covid-19
resilient and competitive performance amidst covid-19. COVID-19 update managing the cycle Q2 key financials health and safety first resilient & diverse portfolio organic growth -25% seamless transition to WFH agile cost management EBITA € 67m, RR 42% returning 90k people to work digital field steeri
Slide 7: North America and France
north america france sound margin protection. recovering through the quarter. ● revenue down 18% (Q1: down 3%) ● revenue down 41% (Q1: down 9%) ○ perm down 49% (Q1: down 3%) ○ perm down 52% (Q1: down 10%) ● US Staffing & Inhouse revenue down 23% (Q1: down 4%) ● Staffing & Inhouse down 46% (Q1: down
Slide 8: The Netherlands and Germany
the netherlands germany diversified portfolio contributing. challenging conditions remain. ● revenue down 24% (Q1: down 14%) ● revenue down 31% (Q1: down 16%) ○ perm down 51% (Q1: down 23%) ● Staffing & Inhouse down 37% (Q1: down 19%) ● Staffing & Inhouse down 28% (Q1: down 17%) ● Professionals down
Slide 9: Belgium and Italy
belgium italy diversified portfolio paying off. improving through the quarter. ● revenue down 29% (Q1: down 8%) ● revenue down 30% (Q1: down 8%) ○ Professionals down 9% (Q1: down 4%) ○ perm down 52% (Q1: down 10%) ● EBITA margin at 2.7% vs. 5.7% LY ● EBITA margin at 3.5% vs. 6.6% LY ○ diversified po
Slide 10: Iberia and Other European countries
iberia other european countries resilient through covid-19. mixed trends. ● spain revenue down 37% (Q1: down 3%) ● UK revenue down 31% (Q1: down 8%) ● portugal revenue down 25% (Q1: down 9%) ● nordics down 21% (Q1: down 8%) ● EBITA margin at 1.3% vs. 5.4% LY ● switzerland down 5% (Q1: down 2%) ● pol
Slide 11: Rest of the world and Global businesses
rest of the world global businesses highly resilient performance. reskilling initiatives paying off. ● japan growth down 2% (Q1: +5%) ● global businesses down 25% (Q1: down 10%) ● australia & new zealand down 6% (Q1: +3%) ● monster revenue down 31% (Q1: down 20%) ● india up 9% (Q1: +16%) ● sourcerig
Slide 12: Financial results & outlook
financial results & outlook. © Randstad 2020 | 12
Slide 13: Q2 2020 solid performance in challenging conditions
Q2 2020 solid performance in challenging conditions. Q2 performance Q2 key financials € million Q2 ’20 Q2 ’19 % org. revenue 4,437 5,957 (25)% gross profit 830 1,193 (30)% • organic revenue down 25%, improving gross margin 18.7% 20.0% momentum throughout the quarter operating expenses* 763 916 (17)%
Slide 14: Q2 2020 gross margin impacted by Covid-19
Q2 2020 gross margin impacted by covid-19. Q2 gross margin development YoY Q2 highlights • temp margin -60bp YoY, impacted by COVID-19 and idle time • perm fees declined 47% YoY, -70bp mix impact on gross margin • HRS/other neutral impact © Randstad 2020 | 14
Slide 15: Agile cost management amidst Covid-19
agile cost management amidst covid-19. Q2 sequential opex bridge tapping into the flexibility of the cost base • radical focus on growth and capital protection • cost optimization program of € 120m • government employment protection schemes • safeguarding future fit investments © Randstad 2020 | 15
Slide 16: Strong balance sheet and countercyclical working capital
strong balance sheet and countercyclical working capital. strong FCF generation in Q2 2020 sound balance sheet • Q2 FCF € 530m (vs. € 25m in Q2 2019) • net debt € 282m excluding lease liabilities • favorable working capital movement • leverage ratio pre IFRS 16: 0.3 (Q2 2019: offsetting lower EBITA
Slide 17: Conclusion and outlook: navigating through volatile times
conclusion and outlook: navigating through volatile times. Q2 conclusion and outlook June/July activity momentum vs Q2 NAM FR • June exit rate -21%, positive momentum NL continues into early July GER BEL • expected Q3 recovery ratio of 30-40% IBE IT • well-positioned to capture future growth RoE opp
Slide 18: Questions & answers
questions & answers. © Randstad 2020 | 18
Slide 19: Appendices
appendices randstad. © Randstad 2020 | 19
Slide 20: Outlets by region
outlets by region. end of period Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 North America 1,106 1,136 1,153 1,152 1,123 France 643 649 640 635 631 the Netherlands 603 647 653 661 656 Germany 489 487 582 577 580 Belgium & Luxembourg 325 328 327 334 333 Italy 262 262 259 259 262 Iberia 388 388 382 376 37
Slide 21: Corporate staff by region
corporate staff by region. average Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 North America 5,680 5,880 5,830 5,660 5,600 France 3,460 4,610 4,690 4,640 4,580 the Netherlands 3,740 3,970 4,090 4,180 4,240 Germany 2,170 2,590 2,640 2,680 2,870 Belgium & Luxembourg 1,460 1,940 2,040 2,120 2,090 Italy 1,7
Slide 22: Staffing employees by region
staffing employees by region. average Q2 2020 Q2 2019 North America 72,600 94,200 France 56,800 90,800 the Netherlands 55,800 81,400 Germany 25,400 41,700 Belgium & Luxembourg 28,600 46,800 Italy 36,200 49,400 Iberia 43,100 64,200 Other European countries 49,200 57,300 Rest of the world 118,000 115,
Slide 23: eaese
eaese human forward WM