Randstad Nv · EURONEXT:RAND
Randstad Nv — Investor Day (December 2019)
45 slides from Randstad Nv's investor day presentation, December 2019
Slide 1: Randstad analyst seminar
randstad analyst seminar. London, December 2019
Slide 2: Agenda
agenda. differentiating strategy - Jacques van den Broek (CEO) 09:00 - 09.30 creating capacity for competitive growth - Henry Schirmer (CFO) 09:30 - 10:00 Q&A 10:00 - 10:30 end webcast session & break enterprise workshop - Rebecca Henderson (Board member) and Tania de Decker (MD) 10:45 - 11:15 Q&A 1
Slide 3: Differentiating strategy
differentiating strategy. Jacques van den Broek, CEO analyst seminar London, December 2019
Slide 4: Looking back: analyst breakfast October 2018
looking back: analyst breakfast October 2018 digital strategy in full swing. • tech is easy, change is hard • the workforce scheduling journey • data driven sales • talent engagement • enterprise © Randstad 2019 | 4
Slide 5: Our ultimate goal
our ultimate goal by 2030, we will touch the work lives of 500 million people worldwide. our mission our purpose shaping the world of work we support people and organizations in realizing their true potential. our positioning our core values Human Forward: a trusted • to know, to serve, to trust hum
Slide 6: Our ultimate goal
our ultimate goal by 2030, we will touch the work lives of 500 million people worldwide. we are future • long-term value for all our stakeholders • clear growth leader ‘consistently above market’ proofing Randstad • superior valuation (multiple) • strong focus on ROIC © Randstad 2019 | 6
Slide 7: Our ultimate goal
our ultimate goal by 2030, we will touch the work lives of 500 million people worldwide. our Human Forward promises 1. transparency Clients get insight into how their HR needs are being met and talents know where they stand in their job search. 2. guidance Clients have an HR partner throughout the b
Slide 8: Our ultimate goal
our ultimate goal by 2030, we will touch the work lives of 500 million people worldwide. our Human Forward promises our winning capabilities 1. transparency our 38,000 employees are rewriting the industry across Clients get insight into how their HR needs are being the world... met and talents know
Slide 9: Our ultimate goal
our ultimate goal by 2030, we will touch the work lives of 500 million people worldwide. our Human Forward promises our winning capabilities our strategic priorities 1. transparency our 38,000 employees are rewriting the industry across To realize our ultimate goal we need to accelerate, Clients get
Slide 10: Creating focus through our strategic priorities
creating focus through our strategic priorities. To realize our ultimate goal we need to accelerate, scale, innovate, be more proactive and make more matches. reposition our be recognized as a grow faster in Innovation Fund Top 100 Brand North America and Japan drive enterprise create largest talent
Slide 11: Larger ecosystem wheel of working life
larger ecosystem wheel of working life. HRTech process information skills Working life is a journey. EdTech We want to make the journey easier, more transparent, more career rewarding and more fulfilling. opportunities searching for a job support By touching people’s working life, we bring human for
Slide 12: Creating focus through our strategic priorities
creating focus through our strategic priorities. To realize our ultimate goal we need to accelerate, scale, innovate, be more proactive and make more matches. reposition our be recognized as a grow faster in Innovation Fund Top 100 Brand North America and Japan drive enterprise create largest talent
Slide 13: What is our future state?
what is our future state? big tech large multinationals traditional HR services providers 10x 15x 20x 25x valuation multiple © Randstad 2019 | 13
Slide 14: Digital strategy in full swing
digital strategy in full swing. © Randstad 2019 | 14
Slide 15: Tech is easy, change is hard
tech is easy, change is hard. drive strengthen learn business digital how to results foundation change © Randstad 2019 | 15
Slide 16: How we change the way to engage with talent and clients at scale
how we change the way to engage with talent and clients at scale. talent & client user interface matching data collection engagement © Randstad 2019 | 16
Slide 17: Tech as a differentiator: higher barriers to entry
tech as a differentiator: higher barriers to entry, favouring big players in a fragmented market where scale and proximity matter. contingent workforce tech touch tech touch self-service platforms integrated talent management tech touch tech touch perm digital platforms talent engagement SME clients
Slide 18: Tech as a differentiator: higher barriers to entry
tech as a differentiator: higher barriers to entry, favouring big players in a fragmented market where scale and proximity matter. contingent workforce tech touch tech touch data driven sales WFS/Youplan Enterprise tech touch tech touch perm talent engagement SME clients large © Randstad 2019 | 18
Slide 19: 2019 facts digital initiatives - metrics that matter
2019 facts digital initiatives - metrics that matter data driven sales workforce scheduling: Inhouse workforce scheduling: Youplan 25% more visits 15% pool churn 812 locations customer delight value based pricing web platform performance 8+ NPS 30bp higher GM YoY Q3 2019 11% more applications YoY ©
Slide 20: Key competitive differentiators
key competitive differentiators. differentiating long-term strategy financial highlights • clear strategic priorities, monetizing ● € 120 million cost savings identified data towards clients and talents by 2021 • digital transformation progressing ● trading conditions in October and well November ar
Slide 21: Creating capacity for competitive growth
creating capacity for competitive growth. Henry Schirmer, CFO analyst seminar London, December 2019
Slide 22: Our world - a major growth opportunity
our world - a major growth opportunity. global labor market global staffing market (€ 416bn) 2% 6% 6% 5% source: World Employment Confederation 2019 source: Staffing Industry Analysts 2018 © Randstad 2019 | 22
Slide 23: Our world - a major growth opportunity
our world - a major growth opportunity. global staffing market 2010 – 2018 (€ bn) structural growth drivers • globalization & urbanization R 5% CAG • technological progress & automation • demographics • changing nature of work • mobility source: Staffing Industry Analysts 2018 © Randstad 2019 | 23
Slide 24: Strong topline growth improving competitive position
strong topline growth improving competitive position. our road to leadership quality of results inhouse growth driver revenue in € bn * based on Bloomberg consensus © Randstad 2019 | 24
Slide 25: More resilient and profitable portfolio
more resilient and profitable portfolio translating into strong shareholder returns. gross profit diversification leading EBITA margin strong conversion colour indicates country weight in total GP © Randstad 2019 | 25
Slide 26: Resilient and growing FCF over the past 12 years
resilient and growing FCF over the past 12 years. © Randstad 2019 | 26
Slide 27: Transparent capital allocation strategy
transparent capital allocation strategy. organic growth investments cash dividend policy with payout 40 – 50% of earnings; floor cash dividend of € 1.62 per share bolt on M&A opportunities when leverage ratio < 1.0 -> optional additional cash returns to shareholders special cash dividend share buyba
Slide 28: Attractive shareholder returns
attractive shareholder returns. dividend per share © Randstad 2019 | 28
Slide 29: Creating a more resilient company
creating a more resilient company. active portfolio management fuel for growth dynamic resource allocation • diversified geographic portfolio • activity based field steering • balancing short/long term returns • more resilient portfolio by concept • flexibilizing the cost structure • securing strate
Slide 30: Creating a better connected Randstad
creating a better connected randstad. combine scale with speed and customer intimacy leveraging data to ... freeing up trapped resources from • drive field productivity • reduce duplication • create deeper talent pools • increase impact of innovation • improve value proposition, • lifting the floor
Slide 31: Creating capacity for future growth
creating capacity for future growth € 120 million opportunity by 2021. freeing up trapped resources shifting cost paradigms • addressing total cost base of € 3.6bn • utilizing benefit of one randstad PE Field • granular external/internal benchmarking • from closing the gap to creating competitive ad
Slide 32: Future proofing Randstad
future proofing randstad. leading principles simultaneous promotion of interest • securing strategic investments customers • create capacity for growth employees talents • drive profitability and FCF shareholders © Randstad 2019 | 32
Slide 33: Questions & answers
questions & answers. © Randstad 2019 | 33
Slide 34: Introducing Randstad Enterprise Group
bold introducing Randstad Enterprise Group. agile Rebecca Henderson, Board member Tania de Decker, MD analyst seminar London, December 2019 innovative
Slide 35: Enterprise customer buying has transformed
enterprise customer buying has transformed. 62% 75% down the purchase path would consider extending before they consider an existing contract if they engaging with sales received a compelling renewal proposal 13 influential customer contacts engaged in a buying process source: Gartner © 2019 Gartner
Slide 36: Enterprise together
enterprise together. We are redefining how enterprise organizations get work done to create a distinctive and lasting talent advantage. © Randstad 2019 | 3737
Slide 37: What does this mean for Randstad
what does this bold mean for randstad. • strengthening the entry point to C-suite enterprise buyers through the global leader in RPO and MSP - Randstad Sourceright • world-class global account management models and bringing best practices into our way of working across the group agile • strengthened
Slide 38: Key talent trends point to an increasingly integrated talent environment
key talent trends point to an increasingly integrated talent environment that we can lead in. 81% 2/3 86% 41% of human capital leaders say the talent gap is say their biggest competitors say they are facing scarcity say the work they do is widening and will create for talent are companies with in th
Slide 39: By investing in competitive differentiation
by investing in competitive differentiation. Workforce Talent Marketing MSP Direct Analytics Delivery Enterprise Acceleration Reskilling SOW Career readiness Talent Advisory © Randstad 2019 | 4040
Slide 40: Customer-centric segmentation model
we will engage customers with a customer-centric segmentation model. current revenue current service lines geographical scope & client stakeholder threshold & total potential delivered to client governance required engagement/organisational complexity © Randstad 2019 | 41
Slide 41: Vision: total talent delivery model
vision: total talent delivery model. work planning service request decision: talent advisor • short vs. long-term need? toolkit TA Randstad talent • skill or knowledge gap? Hiring • strategic or tactical need? Manager advisor permanent contingent integrated service lines technology stack LID PROF BP
Slide 42: The power of our collaboration
the power of our collaboration. diamond client one team | one voice | one experience ground breaking new executive connected solution delivery model model integrated with sponsorship & delivery model preparing Randstad our digital products for the future dedicated strong financial 5 year contract -
Slide 43: Questions & answers
questions & answers. © Randstad 2019 | 44
Slide 44: Closing remarks Jacques van den Broek
closing remarks Jacques van den Broek. © Randstad 2019 | 45
Slide 45: Randstad - human forward
randstad human forward. MW