Slide 1: 3rd quarter results 2024
22nd of october 2024 3rd quarter results 2024. operational discipline and strategic progress sander van ‘t noordende, CEO jorge vazquez, CFO
Slide 2: Disclaimer
disclaimer. Certain statements in this document concern prognoses flexible personnel), achievement of cost savings, changes about the future financial condition, risks, investment in the business mix, changes in legislation (particularly in plans, and the results of operations of Randstad N.V. and r
Slide 3: Definitions
definitions. organic growth: externally reported income statement line items (revenue, gross profit, operating expenses and EBITA) adjusted for the impact of changes in foreign currency ("FX"), the effect of hyperinflation and excluding the impact of acquisitions and disposals. EBITA: operating prof
Slide 4: Agenda
agenda. performance 6 financial results & outlook 13 Q&A 19 appendix 20 © randstad 4
Slide 5: In memoriam of our founder, Frits Goldschmeding
in memoriam of our founder, frits goldschm vi 1933-2024 ‘=
Slide 6: Performance
01 performance. 0''0'1¢ yO © randstad | 6
Slide 7: Q3 2024: operational discipline and strategic progress
Q3 2024: operational discipline and strategic progress. summary key financials ● stabilization across markets ● revenue € 6.0 BN at -5.9% ● operational discipline ● gross margin 19.5% ● Partner for Talent execution ● underlying EBITA € 196M, 3.3% margin © randstad 7
Slide 8: Partner for talent
partner for talent. growth through specialization digital marketplaces Zorgwerk © randstad 8
Slide 9: North America: sequential improvement
north america: sequential improvement. organic revenue growth YoY, last two quarters* ● us: sequential improvement, transformation well underway ○ operational talent solutions: further signs of recovery ○ digital: continues to be subdued ● canada: persisting challenging conditions EBITA margin (unde
Slide 10: Northern Europe: diverging trends
northern europe: diverging trends. organic revenue growth YoY, last two quarters* ● netherlands: stabilizing market, adverse automotive impact ● germany: difficult conditions persisted, unchanged momentum ● belgium: tougher comparison, continued strong adaptability EBITA margin (underlying)** ● othe
Slide 11: Southern Europe, UK & LatAm: encouraging markets
southern europe, uk & latam: encouraging markets. organic revenue growth YoY, last two quarters* ● france: macroeconomic and political challenges weighing on recovery ● italy: investing in further growth ● iberia: double digit growth in Spain, solid profitability ● other countries: EBITA margin (und
Slide 12: Asia Pacific: mixed growth, sound adaptability
asia pacific: mixed growth, sound adaptability. organic revenue growth YoY, last two quarters* ● japan: strong profitability, continued investments ● australia & new zealand: tough conditions remain ● india: solid growth EBITA margin (underlying)** * YoY organic change is measured excluding the impa
Slide 13: Financial results & outlook
02 financial results & outlook. © randstad 13
Slide 14: Q3 2024: operational discipline
Q3 2024: operational discipline. performance key highlights € million Q3 ’24 Q3 ’23 % org. revenue 6,015 6,260 -5.9% ● organic revenue down -5.9% YoY gross profit 1,172 1,293 -10% gross margin* 19.5% 20.6% ○ operational: -/- 4% at € 4.0 BN operating expenses* 976 1,020 -3% opex %* 16.2% 16.3% ○ prof
Slide 15: Gross margin: impacted by mix and idle time
gross margin: impacted by mix and idle time. Q3 gross margin development YoY key highlights • temp margin -60 bp YoY • adverse impact of geographical and business mix • idle time related costs • perm fees -30 bp YoY • HRS/other -20 bp YoY driven by Monster’s disposal, underlying flat. © randstad 15
Slide 16: Costs: balancing growth, costs & investments
costs: balancing growth, costs & investments Q3 sequential opex bridge (€m) key highlights • opex down 3% QoQ, down 3% YoY • # FTEs sequentially stable (excl. Monster), down 4% YoY • LQ4 recovery ratio 37% © randstad 16
Slide 17: Solid free cash flow and sound balance sheet
solid free cash flow and sound balance sheet. Q3 free cash flow balance sheet • net debt € 804m excl. lease liabilities • Q3 FCF € 258m (Q3 2023: € 297m) • leverage ratio excl. lease liabilities: 0.9 • DSO 54.1, up 0.7 days vs Q3 2023 • Monster and CB merger completed • ROIC: 10.9% (Q3 2023: 16.3%)
Slide 18: Outlook: balancing growth, costs & investments
outlook: balancing growth, costs & investments. Q4 2024 outlook momentum • easier comparison base • the first weeks of October see stable volumes as compared to Q3 • additional 1.1 working day • continued operational discipline • gross margin is expected to be underlying slightly higher sequentially
Slide 19: Questions & answers
03 = a = 5 Pe + questions & answers.
Slide 20: Appendices
04 appendices. © randstad 20
Slide 21: Corporate staff by geography
corporate staff by geography. average Q3 2024 Q3 2023 North America 7,250 8,560 the Netherlands 3,870 4,280 Germany 2,380 2,660 Belgium & Luxembourg 2,170 2,290 Other Northern Europe countries 2,810 3,020 Northern Europe 11,230 12,250 France 4,750 4,880 Italy 3,450 3,090 Iberia 2,910 2,560 Other SE
Slide 22: Number of employees working on a temporary basis by geography
number of employees working on a temporary basis by geography. average Q3 2024 Q3 2023 * North America 70,000 77,700 the Netherlands 47,200 51,100 Germany 26,200 29,700 Belgium & Luxembourg 37,100 38,100 Other Northern Europe countries 28,600 35,700 Northern Europe 139,100 154,600 France 74,700 80,5
Slide 23: Partner for talent
partner for talent. VM randstad