Randstad Nv · EURONEXT:RAND
Randstad Nv — Investor Day (November 2021)
112 slides from Randstad Nv's investor day presentation, Nov 17, 2021
Slide 1: Randstad Capital Markets Day
randstad capital markets day. 17 november 2021
Slide 2: Disclaimer
disclaimer. Certain statements in this document concern prognoses changes in the business mix, changes in legislation about the future financial condition, risks, investment (particularly in relation to employment, staffing and tax plans, and the results of operations of Randstad N.V. and laws), the
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 before
Slide 4: Program
program. market trends & strategy: Jacques van den Broek value creation: Henry Schirmer digitizing & IT: René Steenvoorden global businesses: Rebecca Henderson professionals: Karen Fichuk staffing & randstad culture: Chris Heutink Q&A closing remarks: Jacques van den Broek 4
Slide 5: Market trends & strategy
market trends & strategy. capital markets day 2021.
Slide 6: Market trends & strategy
market trends & strategy. • introduction • structural trends • randstad positioned for growth • differentiated through Tech and Touch Jacques van den Broek Randstad, CEO 6
Slide 7: Welcome to Randstad virtual CMD
welcome to Randstad virtual CMD Utrecht (NL) branch. 7
Slide 8: Why are we here today?
why are we here today? • demonstrated through the pandemic: our industry is more relevant than ever • traditional recruitment process is changing • attractive market with structural growth opportunities • Randstad is well positioned for further growth and creating sustainable value: • leveraging our
Slide 9: Structural trends
structural trends. capital markets day 2021. :
Slide 10: Acceleration of major labor market trends through COVID-19
acceleration of major labor market trends through COVID-19. randstad well positioned to continue to take advantage. change is the unprecedented new norm speed of technological progress a job for life? the role of work in people’s lives is a constant 10
Slide 11: Randstad positioned for growth
randstad positioned for growth. 11
Slide 12: Touch the work lives of 500 million people by 2030
touch the work lives - iWs “Aa of 500 million people worldwide by 2030. AC a y
Slide 13: Committed to sustainable value creation
committed to sustainable value creation. good jobs and reduced gender quality climate economic inequalities equality education action growth 13
Slide 14: A differentiated strategy
a differentiated strategy becoming the world’s most valued ‘work life partner’. touch the work lives of 500 million support as many people as possible in realizing their true potential people worldwide by 2030 throughout their working life further differentiate leverage global unlock the power priori
Slide 15: Randstad supports its clients and talent with a wide variety of services
randstad supports its clients and talent at all levels with a wide variety of services. manufacturing, logistics and managerial and administrative jobs professional roles temporary staffing professionals • temporary staffing & payrolling • interim assignments permanent • permanent placements • perma
Slide 16: Significant room for growth
significant room for growth long-term attractive market opportunities. global staffing global professionals market* market* market size (2020) € 213 billion € 142 billion CAGR (2009-2019) 5% 13% estimated global market share 7% 3% *source: SIA estimates. Professionals excluding SOW 16
Slide 17: Gig economy: new market emerging
well positioned to leverage structural trends gig economy: new market emerging. gig economy a major opportunity: ‘Gig staffing’ market estimated at € 61 billion in 2020* *EMEA 17
Slide 18: Create the most powerful talent engine in the world
create the most powerful talent engine in the world connect with talent and clients faster, on a larger scale and more personally than ever. strong player in the talent engine and capabilities & growing job board tech enabler for technology space Randstad for new markets and services 18
Slide 19: Differentiate through tech and touch
differentiate through tech and touch. 19
Slide 20: Strong concepts that span geographies and sectors
strong concepts that span geographies and sectors so that we can provide the right solutions for today’s needs. more tech more touch self-service MSP* Gig very large RPO* inhouse SOW* branch based branch platforms scale professionals based inhouse staffing staffing *MSP: Managed Service Provider RPO
Slide 21: Supporting winning sectors: agility for unprecedented demand
supporting winning sectors: agility for unprecedented demand for both clients and talent, speed is of the essence. client’s challenges talent’s challenges • need for a large amount of hiring • multiple job offers • tight labor markets • simple process • logistical challenge • fair package Randstad ha
Slide 22: Contract signing process flow
contract talent scheduled signing for 1 day schedule for contract signing interview with schedule talent recruiter for interview eligibility to work check automation randstad talent finds chat with applicant job opportunity talent registration capturing data throughout the funnel & automated reporti
Slide 23: Well positioned for further growth and sustainable value
randstad is well positioned for further growth and creating sustainable value. unrivalled breadth & scale and combining Tech and Touch to provide a differentiated offer. enable us to delight our #1 HR services provider outperforming talent, clients and in the world, spanning today employees the enti
Slide 24: Value creation
value creation. capital markets day 2021.
Slide 25: Value creation
value creation. • market leading growth • best performance today and tomorrow • financial objectives re-confirmed • transparent capital allocation policy Henry Schirmer Randstad, CFO 25
Slide 26: Value creation today and tomorrow
value creation today and tomorrow. market-leading transforming with counter cyclical nature growth speed & impact of cash flows (€ m) where 1200 1,131 1,094 smart technology 900 751 812 +5%* vs. Q3’19 600 300 627 692 and smart 2018 2019 2020 record revenue, people meet EBITA FCF excl. CICE improving
Slide 27: Best in class topline performance
best in class topline performance. revenue in € bn quarterly organic revenue growth YoY 25 40% 19 30% 21% 20% 13 10% 12% 6 0% 9% -10% 2007 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 peer 1 peer 2 randstad peer 1 peer 2 randstad 27
Slide 28: Future fit investments supported by productivity
future fit investments supported by productivity. incremental productivity gains to fund investments into transformational digital capabilities investments 28
Slide 29: Sustained market outperformance, differentiated winning concepts
sustained market outperformance, differentiated winning concepts. inhouse growing resilient opportunity • inhouse growth above • high client retention • geographical expansion group average (’09 -’19 CAGR 15%) • highest resiliency through • very large inhouse covid-19 • cross-selling • new locations
Slide 30: The right to win, powered by data
the right to win, powered by data. data driven sales valuable insights into talent pools list of prospects prioritised for US median job radius increase in consultants in a defined territory miles from Q1 2019 to Q3 2021 tech manufacturing office & logistics 5x 1.2x 1.03x 30
Slide 31: Field steering 2.0
field steering 2.0. commercial creating capacity for tech empowering intensity profitable growth touch > 75% of additional FTEs in geos 40 % with EBITA above group average 16 FTE growth* chatbot 12 8 4 +7% • developed a pre-screening and scheduling chatbot 2019 2020 2021 • over 200,000 placements in
Slide 32: Building towards structurally improved profitability
building towards structurally improved profitability. credit risk analytics field productivity #newways - cost connect through Covid period 60+ overdues business leaders 51% IT indirect procurement 19 T&E immediate L4Q ICR accomodation actions fleet 24 marketing future- proofing down 430 bp* initiat
Slide 33: Utilizing powerful insight engines to win with clients and talent
utilizing powerful insight engines to win with clients and talent. ability to pass through wage inflation* mix management geo investments sector revenue per hour increase -> conce o n pt ve rs i con sustained wage increase per hour → market best in class profitability outperformance *Q3 2019 to Q3 2
Slide 34: Sound and resilient cash flow conversion
sound and resilient cash flow conversion. 55.# 1.500 53.9 54.# 1,131 1,094 1.125 55.5 812 52.9 751 53.# 750 692 627 in € m days 375 52.# 51.6 51.# 2018 2019 2020 2018 2019 2020 L4Q Q3 2021 EBITA FCF excluding CICE DSO 34
Slide 35: Long-term financial objectives re-confirmed
creating sustainable long-term value for all our stakeholders long-term financial objectives re-confirmed. clear growth focused on EBITA margin of strong focus on maintain a leader, drive organic growth, 5% to 6% over ROIC, optimize sound financial continuous and complemented time Economic Value pos
Slide 36: Transparent capital allocation policy
transparent capital allocation policy. 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 buybac
Slide 37: Capital allocation principle
capital allocation principle. invest into invest into selectively invest attractive market-leading winning, digital into M&A dividend growth capabilities ● accelerating portfolio strategy ● strengthening market position ● EVA accretive <3 years maintain discipline | EVA principles leading | balancin
Slide 38: Digitizing & IT
olfeliuy4iare & IT. capital markets day 2021. 98
Slide 39: Digitizing & IT
digitizing & IT. • enable our strategy • digitize all our processes • balance tech & touch René Steenvoorden Randstad, Chief Digital Officer 39
Slide 40: A differentiated strategy
a differentiated strategy becoming the world’s most valued ‘work life partner’. touch the work lives of 500 million support as many people as possible in realizing their true potential people worldwide by 2030 throughout their working life further differentiate leverage global unlock the power priori
Slide 41: We digitize and harmonize all our processes across 38 countries
we digitize and harmonize all our processes and implement them across our 38 countries. unlock future value improve existing processes build a solid foundation 41
Slide 42: Solid digital foundations
solid digital foundations. 42
Slide 43: We started with the design of a digital architecture
we started with the design of a digital architecture. digital solutions data management global IT services digital architecture 43
Slide 44: We strongly believe in a microservices architecture
we strongly believe in a microservices architecture parsing example. parsing services million million 44
Slide 45: The global IT services are enabled via cloud
the global IT services are enabled via cloud. digital solutions data management global IT services digital architecture 45
Slide 46: Data helps us steer our activities and build relationships
data helps us steer our activities and build relationships. 46
Slide 47: More talent connecting through online channels
more talent connecting through online channels. million 47
Slide 48: Data is a key differentiator in the Randstad strategy
data is a key differentiator in the randstad strategy. better constant view understanding of the world needs and of work at large ambitions talent and clients short & long-term today 21 of our 38 countries are connected to our global data ocean 48
Slide 49: Improve existing processes
improve existing processes. 49
Slide 50: Pre-screening and scheduling chatbot with over 200,000 placements in the US
we developed a pre-screening and scheduling chatbot that resulted in over 200,000 placements in the US. CE opportunities CE started CE finished customer chatbot passed screening scheduler tried satisfaction rated 4.5 interviews scheduled client subs +17% out of 5 placements 0 1M 2M 3M *CE stands for
Slide 51: Platform to manage the pool of available talent
we provide colleagues and clients with a platform to manage the pool of available talent and fulfill planning requirements. live in 23 countries 6,000 active clients >500,000 shifts planned p/w 51
Slide 52: Randstad Relevate
randstad relevate. the talent technology suite from Randstad 52
Slide 53: Unlock future value
unlock future value. capital markets day 2071. sa
Slide 54: RIF at the forefront of future of work
RIF at the forefront of future of work on top of major innovations impacting our industry. * * HRTech Randstad Innovation Fund * process * informatio skills at a glance EdTech * * • 22 portfolio investments * opportunitie searching for work career • +25 follow-on, 10 exits support • +350 deals revie
Slide 55: Aligned data collection helps us quickly spot trends
aligned data collection helps us to quickly spot trends that help clients to be more successful. 55
Slide 56: Helping talent make better, actionable career decisions
we help talent make better, actionable career decisions by guiding them to jobs with a bright market outlook. 56
Slide 57: Digital solutions can use the same market data
digital solutions can use the randstad same market data digital solutions labor market data lake API’s security machine learning skills extraction data validation job taxonomy data integration data governance data cleansing data procurement data enrichment data storage data translations cloud platfo
Slide 58: AI and ethics to rule out unconscious bias
we invest in our ability to use AI and ethics to rule out unconscious bias and ensure diversity, equity and inclusion in the workplace. • human forward • human oversight • transparency & explainability • fairness & inclusivity by design • privacy and security • accountability 58
Slide 59: Integrated way of working is key for success
integrated way of working is key for success. 59
Slide 60: See our tech in action
see our tech in action take a look at our selected demonstrations after the Q&A session. randstad gig economy: AI conversation market insights employee engine compliance 60
Slide 61: Global businesses
global businesses. capital markets day 2021.
Slide 62: Global businesses
global businesses. • Monster: global talent engine • Randstad Enterprise Group • strategic rationale proof points • client case studies Rebecca Henderson member of Randstad Executive Board 62
Slide 63: A differentiated strategy
a differentiated strategy becoming the world’s most valued 'work life partner'. touch the work lives of 500 million support as many people as possible in realizing their true potential people worldwide by 2030 throughout their working life further differentiate leverage global unlock the power priori
Slide 64: Create the most powerful talent engine in the world
create the most powerful talent engine in the world connect with talent and clients faster, on a larger scale and more personally than ever. strong player in the talent engine and capabilities & growing job board tech enabler for technology space Randstad for new markets and services 64
Slide 65: Monster: strong player in the growing job board space
exponentially more conversations in the world of work. strong player in the growing job board space. • $28 bn global market, growth rate 10%+ • Monster growth in Q3 2021 • transformation complete by end of 2022 • cost structure in place to scale profitably • KPIs gaining momentum 65
Slide 66: Talent engine and tech enabler for Randstad
exponentially more conversations in the world of work. talent engine and tech enabler for randstad. • driving Randstad fill rates • sharing Randstad talent with Monster • talent centric journeys • data-driven architecture with ML/AI • latest technology in the market 66
Slide 67: Capabilities & technology for new markets and services
exponentially more conversations in the world of work. capabilities & technology for new markets and services. • developing Randstad branded job boards in key markets based on Monster tech and expertise • digital staffing foundation deployable to multiple markets • enable experimentation and scale u
Slide 68: Randstad Enterprise Group
randstad enterprise group. 68
Slide 69: Unlocking full portfolio growth and share of customer wallet
unlocking full portfolio growth and thus increasing our relevance & influence. creating a distinct talent advise on stronghold in delivering workforce advantage talent, provide opportunity to expand by orchestrating MSP, SOW, • new business models: co-creation, RPO, Mobility strategic value, tech &
Slide 70: Randstad Enterprise Group accelerates client development
Randstad Enterprise Group accelerates client development top 10 accounts show stronger service adoption and higher growth 1 +100% 2 +54% 3 12 x 6 +50% 4 +37% 5 +29% 6 +29% 7 +28% countries concepts 8 +20% 9 +12% average per client 10 +9% concept opportunities 2015 increase until 2021 70
Slide 71: Client case study: FMCG company with Randstad Sourceright
client case study transformation of an FMCG company with Randstad Sourceright. 71
Slide 72: Transforming contingent talent for a global FMCG
transforming contingent talent for a $35B global FMCG contractors represent 30% of the talent population and a global spend of $750M+. MSP SOW $750M $340M spend spend driving customer value share of customer wallet orchestrate employment types • leverage tech & touch model with global data & service
Slide 73: Client case study: talent mobility with Randstad Risesmart
client case study talent mobility management with Randstad Risesmart. 73
Slide 74: Powering an inclusive future for all Cisco talent mobility
powering an inclusive future for all Cisco talent mobility. ● always-on talent mobility across the employee lifecycle 100+ 96% countries covered satisfaction ● coaching "for all" across the enterprise 75% 71% ● building a sustainable and landed a gained agile workforce through new role confidence in
Slide 75: Professionals
professionals. capital markets day 2021.
Slide 76: Professionals
professionals. • creating value through our portfolio • global professionals • North America • US IT Karen Fichuk member of Randstad Executive Board 76
Slide 77: A differentiated strategy
a differentiated strategy becoming the world’s most valued ‘work life partner’. touch the work lives of 500 million support as many people as possible in realizing their true potential people worldwide by 2030 throughout their working life further differentiate leverage global unlock the power priori
Slide 78: Professionals: a long-term attractive growing market
professionals: a long-term attractive growing market. growing industry demand randstad professionals revenue trend professionals account for 2009 – 2020 (in €bn)* 2009 – 2020 (in €bn) >20% of Randstad revenue in 2020; present in 30 180 6 geographies. 157 5.2 4.7 % 150 142 5 professionals market grow
Slide 79: Breadth & scale of our professionals expertise
breadth & scale of our professionals expertise. IT/engineering F&A sales/marketing healthcare education 79
Slide 80: 40,000 professionals delivering technical expertise
breadth & scale of our professionals expertise. 40,000 professionals delivering technical expertise 80
Slide 81: Global IT solutions: Ausy case study
global IT solutions: Ausy case study. multi-country partnership with Renault. ‘AUSY is supporting us for 4 years now through a multi- country solution and had major contributions for the release of our technologically advanced Clio5 and Megane-e products. The expertise and global delivery capabiliti
Slide 82: Client testimonial from North America
client testimonial from North America a multi-national apparel company. ‘We were challenged with hiring 80% of our software engineering team and 100% of our Test automation (SDET) and manual testing team within 2 months. Randstad delivered. They really went above and beyond to ensure quality of cand
Slide 83: Expanding our presence in North America
expanding our presence in North America. market size: randstad professionals € 141bn* revenue by market • North America/US is the North largest professionals market America for randstad 38% 39% • 4% market share in US IT; 61% significant growth opportunities NAM professionals NAM staffing *source: S
Slide 84: US IT professionals growth ambitions
US IT professionals growth ambitions: organic growth supplemented by bolt-on acquisitions. US temporary staffing market size ($ bn): IT segment* 40 35.4 IT professionals business expansion 31.0 32.3 30.8 33.5 27.5 28.6 29.9 24.2 25.7 30 $ 34bn 20 IT staffing in • producer investments 2021 • enterpri
Slide 85: North America headwinds and tailwinds: government
North America headwinds and tailwinds, with labor at the center. government • enhanced federal unemployment benefits ended in September • infrastructure bill passed, a scaled back version of ‘Build Back Better’ plan 85
Slide 86: North America headwinds and tailwinds: talent scarcity
North America headwinds and tailwinds, with labor at the center. talent scarcity • openings hit record high 10.9 million this summer • labor force participation rates slowly improving • employers responding with pay rate increases, flexibility, sign on/retention bonuses, benefits 86
Slide 87: External evaluation from The Everest Group
external evaluation from The Everest Group 2021 analysis of US contingent workforce providers. ‘Randstad is a market leader’ ‘IT professionals specializing in application development, enterprise infrastructure, and data services’ ‘...deeply embedded its staffing services with technology and data and
Slide 88: US IT Professionals: how we win
US IT Professionals: how we win. • specific expertise • deep customer relationships • innovation/technology • talent driven strategy 88
Slide 89: What does our IT talent say about Randstad
what does our IT talent say about randstad. transparent care about me saw my potential Dale Anderson Anonymous Josh van Hulst D A A Very transparent about the The recruiter that I dealt with and its Many times when I could not find process and was never account manager were absolutely work on my own
Slide 90: How we win: our people
how we win: our people. • we trust in technology • 7 out of 10 internal employees said they would do it (join Randstad) all over again • we recognize effort and results • most importantly, we have fun! • we give back, all over the world • recognized as a leader in equity, diversity & inclusion 90
Slide 91: Staffing & Randstad culture
staffing & randstad culture. 91
Slide 92: Staffing & Randstad culture
staffing & randstad culture. • introduction • staffing: a long-term attractive market • a differentiated talent strategy • build on our strong foundation Chris Heutink member of Randstad Executive Board 92
Slide 93: The best job in the world
the best job! in the world under of Randstad
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Slide 96: Concept development
ss concept development managing director group busin che going.on, s0 we have so search passive tabor van with a toewars cleaner, We believe, uke sarsats, pootersionals who wee enxpboyed else < iaecte where, by building up networks. These talents onset visit a beasich office, but search their ‘And t
Slide 97: Staffing: long-term attractive growing market
staffing: long-term attractive growing market we are the global leader and have room to grow exponentially. growing staffing industry demand randstad revenue trend 2009 – 2020 (in €bn)* 2009 – 2020 (in €bn) delivering the right talent, 5% 300 GR 20 6% right quantity at the right CA R ’19 AG 17 time
Slide 98: Staffing a long-term attractive market
staffing a long-term attractive market. 98
Slide 99: Staffing is the core of what we do
staffing is the core of what we do and it continues to be a long-term attractive market. dynamic and attractive in the long-run. benefiting from trends. we at Randstad, the global staffing leader, • increasing demand for flexibility: a job for life is a are well-placed to further expand our thing of
Slide 100: Serving customers on all levels increases share of wallet
serving our customers on all levels increases our share of wallet from transaction services to long-term value creation. sustained need for matching portfolio agility and flexibility. advise on concepts. stronghold in delivering we are evolving from workforce talent, provide opportunity human capita
Slide 101: The sustained need for touch in a world of transition
the sustained need for touch in a world of transition is present we are getting faster and better at enabling personalization at scale. digitization of staffing our omnichannel strategy offers randstad a starting point improves our services. to evolve by adapting an automated business model. • omni
Slide 102: A differentiating talent sourcing strategy
a differentiating talent sourcing strategy a unique & personalized lifelong relationship with our talent. • talent currently needs a separate partner at every step of their journey. randstad the role of work in perfectly solves this need people’s lives is a constant. • employ tech and touch services
Slide 103: The role of work in people's lives is a constant
the role of work in people's lives is a constant how the data gives us the insight. why you are open to making a change at this time? : daughte curity higher employer. graduate professional techni se management worked nding customer char gain wanting re workforce _ degree ical location market belie
Slide 104: Building on our strong foundation
building on our strong foundation. 104
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3,000 oe new ine
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Slide 109: Know more, trust more, serve more
re knowmore know more st more trustmore trustm serve more servemore se
Slide 110: Thank you
thank you
Slide 111: Why are we here today?
why are we here today? • demonstrated through the pandemic: our industry is more relevant than ever • traditional recruitment process is changing • attractive market with structural growth opportunities • Randstad is well positioned for further growth and creating sustainable value: • leveraging our
Slide 112: Have a look at our presentations & technology demonstrations
have a look at our presentations & technology demonstrations. randstad gig economy: AI talent deep-dive market employee conversation sourcing presentation insights compliance engine strategy 112