Robert Walters Plc · LSE:RWA
Robert Walters — H1 2023 Earnings Presentation
36 slides from Robert Walters's earnings presentation, Aug 1, 2023
Slide 1: Half-yearly results
Half-yearly results Robert Walters Plc 1 August 2023
Slide 2: About us: Our strategy
Half-yearly 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 l
Slide 3: Financial review
Half-yearly results Financial review 3
Slide 4: Group financial and operational summary
Half-yearly results Group financial and operational summary Group performance Candidate and client confidence yet to show signs of sustained improvement Net fee income down 4% (5%*) to £202.3m (2022: £210.5m) Operating profit down 60% (57%*) to £11.2m (2022: £27.7m) Profit before taxation do
Slide 5: Consolidated Group income statement and financial review
Half-yearly results Consolidated Group income statement and financial review 6 months to 6 months to % Change 12 months to £ % Change 30 June 2023 30 June 2022 (constant currency*) 31 Dec 2022 Revenue1 548.3m 538.6m 2% 1% 1,099.6m Net fee income2 202.3m 210.5m (4%) (5%) 428.2m Operating profit 11.2m
Slide 6: Summary of Group balance sheet
Half-yearly results Summary of Group balance sheet As at As at As at £m 30 June 2023 30 June 2022 31 Dec 2022 Goodwill 8.0 8.1 8.1 Tangible assets and computer software 38.6 29.2 35.5 Right-of-use assets 71.9 61.2 71.6 118.5 98.5 115.2 Receivables 202.2 236.8 221.4 Payables and provisions (158.8) (1
Slide 7: Summary of cash flow
Half-yearly results Summary of cash flow 6 months to 6 months to 12 months to £m 30 June 2023 30 June 2022 31 Dec 2022 Operating profit 11.2 27.7 58.2 Depreciation, amortisation and impairment 11.9 10.7 22.1 Share-based payments and other non-cash items 2.2 1.6 2.5 Unrealised foreign exchange (gain)
Slide 8: Regional analysis (net fee income)
Half-yearly results Regional analysis (net fee income) 6 months to 30 June 2023 6 months to 30 June 2022 16% 18% UK (£32.3m) UK (£38.0m) 43% 45% Asia Pacific Asia Pacific (£87.2m) (£93.7m) 33% Europe (£66.5m) 29% Europe (£61.1m) 8% 8% Rest of World Rest of World (£16.3m) (£17.7m) 8
Slide 9: Net fee income by geography (H1 2023 v H1 2022)
Half-yearly results Net fee income by geography (H1 2023 v H1 2022) 8% Asia Pacific 30% UK 23% 77% (43% of Group NFI) 10% (16% of Group NFI) Japan 30% 2022: 30% London 77% 2022: 79% Other 24% 2022: 24% 10% Regions 23% 2022: 21% Australia 18% 2022: 19% Hong Kong 10% 2022: 10% New Zealand 10% 2022: 9%
Slide 10: Net fee income by discipline (H1 2023 v H1 2022)
Half-yearly results Net fee income by discipline (H1 2023 v H1 2022) 3% 2% 4% 35% 5% Commerce Finance 35% 2022: 33% IT 19% 2022: 21% Banking Finance 11% 2022: 13% 5% Sales and Marketing 10% 2022: 9% Legal 6% 2022: 6% Support 5% 2022: 4% HR 5% 2022: 4% 6% Engineering & Construction 4% 2022: 4% Procur
Slide 11: Headcount
Half-yearly results Headcount 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2019 2020 2021 2022 Q1 2023 Q2 2023 11
Slide 12: Track record of growth
Half-yearly results Track record of growth Net fee income 2008 - 2023 450,000 400,000 350,000 300,000 250,000 FY £000’s 200,000 H1 150,000 100,000 50,000 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Operating profit 2008 - 2023 70,000 60,000 50,000 40,000 £000’s
Slide 13: Operations review
Half-yearly results Operations review 13
Slide 14: Operational management team
Half-yearly results Operational management team 23* CEO Toby Fowlston CEO 10* CEO 16* RW & WP RS Gerrit Bouckaert Norma Gillespie CEO 18* CEO 14* MD 2* Benelux, FR, Iberia, LATAM US DE, CHE Rob Vermaak Marco Laveda Kristin Thomas 15* CEO 17* MD 24* CEO SEA NEA EMEA Jeremy Sampson Kristen Buckheit Ki
Slide 15: Asia Pacific (43% of net fee income)
Half-yearly results Asia Pacific (43% of net fee income) Asia Pacific Permanent/contract 27% recruitment Contract Net fee income: £87.2m (2022: £93.7m) 2022: 23% Operating profit: £8.6m (2022: £16.2m) 73% Permanent 2022: 77% Locations: Australia New Zealand Hong Kong Philippines India Singapore
Slide 16: Asia Pacific: Japan and South Korea
Half-yearly results Asia Pacific Japan and South Korea Japan The Group’s most profitable business – market leader in bilingual professional recruitment Remains a structural shortage of bilingual professionals across all disciplines. 1.3 jobs per professional in Tokyo Net fee income declined 2%
Slide 17: Asia Pacific: Australia and New Zealand
Half-yearly results Asia Pacific Australia and New Zealand Australia Region’s second largest business Ripple effect of Mainland China economic drag and inflationary pressure has impacted market confidence Contract rates outpacing permanent salary growth Activity levels strongest across legal
Slide 18: Asia Pacific: Greater China and South-East Asia
Half-yearly 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 yet to bounce-back from turn-of-the-year Covid disruption Signif
Slide 19: Europe (33% of net fee income)
Half-yearly results Europe (33% of net fee income) Europe Permanent/contract 24% Net fee income: £66.5m (2022: £61.1m) recruitment Interim 2022: 23% Operating profit: £4.3m (2022: £7.3m) 56% Permanent 2022: 57% Locations: Belgium France Germany 20% Ireland Contract 2022: 20% Italy Netherlands Po
Slide 20: Europe
Half-yearly results Europe Resilient performance across region. Eight out of nine markets delivered increases in net fee income Blend of permanent, contract and interim recruitment solutions continues to be a key competitive advantage allowing us to service diverse client requirements irrespecti
Slide 21: UK (16% of net fee income)
Half-yearly results UK (16% of net fee income) UK Permanent/contract Net fee income: £32.3m (2022: £38.0m) recruitment 25% Contract 2022: 21% Operating profit: £0.1m (2022: £3.6m) 75% Locations: Permanent Birmingham 2022: 79% Bracknell Liverpool London Manchester Milton Keynes St Albans Recruitm
Slide 22: UK
Half-yearly results UK High inflation and high interest economic environment significantly impacted both candidate and client confidence during the first half Permanent recruitment most adversely impacted Job flow in contract has returned as clients seek more flexible solutions to their hiring
Slide 23: Rest of World (8% of net fee income)
Half-yearly results Rest of World (8% of net fee income) Rest of World Permanent/contract Net fee income: £16.3m (2022: £17.7m) recruitment Operating loss: £1.8m (2022: operating profit of £0.6m) 100% Permanent 2022: 100% Locations: Brazil Canada Chile Mexico Middle East South Africa USA Recruit
Slide 24: Rest of World: Americas, Africa, Middle East
Half-yearly results Rest of World Americas Africa Record net fee income across our newer businesses in Pipeline of qualified candidates moving from SA to the Mexico and Chile UK continues to grow but also noticeable trend of more Digital transformation, sustainability, BD/sales roles in financ
Slide 25: Resource Solutions: Core service propositions
Half-yearly 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
Slide 26: Resource Solutions
Half-yearly results Resource Solutions Net fee income declined year-on-year as client hiring volumes were impacted by more challenging market conditions and lower confidence Financial services clients particularly negatively impacted A number of new client wins and extensions secured during th
Slide 27: Cross selling our consultancy and advisory offering
Half-yearly results Resource Solutions & Robert Walters Cross selling our consultancy and advisory offering Recruitment Inclusivity Audit launched in H1 to Robert Walters Recognition clients in the UK&I, US and Japan. Collaborative approach to cross- selling consultancy to existing and new clients
Slide 28: Creating one global Market Intelligence function
Half-yearly results Market Intelligence Creating one global Market Intelligence function Amalgamated the RW and RS Market Intelligence teams into a single team Significant increase in sharing of best practice, economies of scale and capacity Solution coverage markedly increased Strong sales
Slide 29: Bringing our stories narrative to life
Half-yearly results New Robert Walters brand now live in 10 countries Bringing our stories narrative to life 29
Slide 30: Technology, Transformation & Innovation
Half-yearly results Technology, Transformation & Innovation 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 commercia
Slide 31: ESG strategy: progress update
Half-yearly results ESG strategy: progress update In March 2023 we published our ESG targets all of which align to the UN’s Sustainable Development Goals (SDGs). Engaging our workforce Enhancing our ED&I initiatives Responding to a sustainable • Won ‘Product Innovation of the Year’ at the 2023 world
Slide 32: ESG strategy: progress update
Half-yearly results ESG strategy: progress update Reducing our environmental Supporting our communities Being a responsible business impact • Partnered with The Change Foundation on the launch of On Drive – a women’s leadership programme using the power of • Joined the UN Global Compact in January •
Slide 33: ESG: Awards and Accreditations
Half-yearly results ESG: Awards and Accreditations We were accepted as a participant of the United Nations In 2023, the Group was once again listed as a constituent member Global Compact, the largest corporate sustainability initiative in of the FTSE4Good index for the fifteenth consecutive year the
Slide 34: Supporting our communities
Half-yearly results ESG strategy activation Supporting our communities 34
Slide 35: Awards: H1 2023
Half-yearly results Awards: H1 2023 UK Germany Resource Solutions Australia New Zealand Group South Korea 35
Slide 36: Outlook
Half-yearly results Outlook “In the face of current trading pressures, we intend to protect the Group’s strategic core, focus on consultant productivity and sensibly manage our cost base whilst continuing to prudently invest in attracting and developing our people and our global infrastructure for t