Slide 1: 1st quarter 2022 results
1st quarter 2022 results. Q1 2022: broad-based revenue growth and strong margin expansion. Sander van ‘t Noordende, CEO Henry Schirmer, CFO Randstad N.V. 26 April 2022
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 2022 | 4
Slide 5: Performance moving forward
performance moving forward. © Randstad 2022 | 5
Slide 6: Q1 2022: broad-based revenue growth & strong margin expansion
Q1 2022: broad-based revenue growth & strong margin expansion. highlights Q1 key financials adaptability continued market-leading growth revenue +15% YoY unprecedented macro environment record high perm & RPO gross margin 20.5%, +130bp YoY strategic talent partner value based pricing EBITA € 286m, 4
Slide 7: North America and France
north america france strong EBITA margin progression. continued market outperformance. ● revenue up 13% (Q4: up 14%) ● revenue up 12% (Q4: up 10%) ○ perm up 87% (Q4: up 87%) ○ perm up 18% (Q4: up 13%) ● US Staffing & Inhouse revenue up 9% (Q4: up 11%) ● Staffing & Inhouse up 11% (Q4: up 9%) ● US Pro
Slide 8: The Netherlands and Germany
the netherlands germany sound growth and profitability. mixed trends. ● revenue up 13% YoY (Q4: up 16%) ● revenue up 12% (Q4: up 15%) ○ perm up 55% YoY (Q4: up 58%) ● Staffing & Inhouse up 15% (Q4: up 20%) ● Staffing & Inhouse up 14% (Q4: up 15%) ● Professionals down 1% (Q4: down 7%) ● Professionals
Slide 9: Italy and Belgium
italy belgium profitable growth continues. robust performance. ● revenue up 12% (Q4: up 7%) ● revenue up 26% (Q4: up 32%) ○ Staffing & Inhouse up 13% (Q4: up 10%) ● perm up 73% (Q4: up 77%) ● EBITA margin at 4.8% vs. 4.4% LY ● EBITA margin at 7.5% vs. 5.2% LY © Randstad 2022 | | 9
Slide 10: Iberia and other European countries
iberia other european countries continued solid performance. mixed picture. ● spain revenue up 23% (Q4: up 23%) ● UK revenue up 19% (Q4: up 36%) ○ acquisition of Avanzo ● nordics up 19% (Q4: up 20%) ● portugal revenue stable (Q4: down 7%) ● switzerland up 16% (Q4: down 1%) ● EBITA margin at 4.8% vs.
Slide 11: Rest of the world and global businesses
rest of the world global businesses solid growth and profitability. continued strong growth in RPO. ● japan up 13% (Q4: up 13%) ● global businesses up 30% (Q4: up 36%) ● australia & new zealand up 23% (Q4: up 35%) ● monster revenue up 9% (Q4: up 12%) ● india up 14% (Q4: up 21%) ● sourceright up 40%
Slide 12: Financial results & outlook
financial results & outlook. © Randstad 2022 | 12
Slide 13: Broad-based revenue growth and strong margin expansion
broad-based revenue growth and strong margin expansion. Q1 performance Q1 key financials € million Q1 ’22 Q1 ’21 % org. revenue 6,621 5,528 15% gross profit 1,360 1,060 22% • organic revenue up 15% YoY gross margin 20.5% 19.2% operating expenses* 1,074 858 21% • perm revenue +63% YoY, RPO +125% YoY
Slide 14: Q1 2022: strong gross margin expansion to 20.5%
Q1 2022: strong gross margin expansion to 20.5%, +130bp YoY Q1 gross margin development YoY Q1 highlights • temp margin + 10bp YoY • perm fees increased +63% YoY, +60bp impact on gross margin • HRS/other +60bp YoY, reflecting continued strong growth in RPO © Randstad 2022 | 14
Slide 15: Ongoing field steering
ongoing field steering. Q1 sequential opex bridge supporting growth and investments • sequential opex up organically • mainly driven by accelerated growth in RPO • continued investments in IT © Randstad 2022 | 15
Slide 16: Strong FCF generation in the first quarter
strong FCF generation in the first quarter. Q1 free cash flow sound balance sheet • Q1 FCF € 133m (vs. € 4m in Q1 2021) • ROIC: 21.6% (Q1 2021: 12.9%) • strong YoY improvement in EBITDA • net cash € 240m excl. lease liabilities • DSO 51.8, 0.8 days improvement vs Q1 2021 • leverage ratio excl. lease
Slide 17: Continued current momentum amidst macroeconomic uncertainty
continued current momentum amidst macroeconomic uncertainty. Q2 2022 outlook activity momentum • gross margin and operating expenses • volume in early April indicate a positive expected to be broadly in line sequentially continuation of current trend • steering for an ICR of 25% to 30% • strong clie
Slide 18: Questions & answers
questions & answers. © Randstad 2022 | 18
Slide 19: Appendices
appendices randstad. © Randstad 2022 | 19
Slide 20: Outlets by region
outlets by region. end of period Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 North America 1,211 1,208 1,201 1,189 1,189 France 643 645 645 641 648 the Netherlands 625 618 599 599 591 Germany 524 563 579 565 522 Italy 274 274 273 272 270 Belgium & Luxembourg 347 333 326 328 321 Iberia 388 380 381 389 38
Slide 21: Corporate staff by region
corporate staff by region. average Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 North America 6,940 6,890 6,820 6,410 6,010 France 4,670 4,620 4,540 4,370 4,310 the Netherlands 4,140 4,100 4,000 3,810 3,650 Germany 2,950 3,010 2,950 2,820 2,670 Italy 2,790 2,660 2,550 2,440 2,290 Belgium & Luxembourg 2,3
Slide 22: Staffing employees by region
staffing employees by region. average Q1 2022 Q1 2021 North America 95,800 92,200 France 87,000 76,900 the Netherlands 73,100 65,200 Germany 39,100 34,200 Italy 58,900 46,500 Belgium & Luxembourg 43,100 37,400 Iberia 61,300 54,200 Other European countries 64,900 58,300 Rest of the world 138,200 129,
Slide 23: eaese
eaese human forward WM