Slide 1: 1st quarter 2019 results
1st quarter 2019 results sales growth stabilizing; gross and EBITA margin progression YoY Jacques van den Broek, CEO Henry Schirmer, CFO Randstad N.V. 24 April 2019
Slide 2: disclaimer
disclaimer. Certain statements in this document concern prognoses about the business mix, changes in legislation (particularly in relation to future financial condition, risks, investment plans and the results of employment, Staffing and tax laws), the role of industry operations of Randstad N.V. an
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 2019 | 4
Slide 5: performance moving forward
performance moving forward. © Randstad 2019 | 5
Slide 6: Q1 2019 revenue growth stabilizing, margins up YoY
Q1 2019 revenue growth stabilizing, margins up YoY. key financials* growth drivers digital strategy strong focus on pricing, organic growth +0.5% market share gains supported by digital tools gross margin expansion ROW up 10% global roll-out workforce scheduling and youplan EBITA € 227m, 4.0% margin
Slide 7: North America and France
north america france sound EBITA margin expansion. back at market growth. ● revenue up 2% (Q4: +3%) ● revenue flat (Q4: down 4%) ○ perm up 9% (Q4: +15%) ● US Staffing & Inhouse, revenue up 3% (Q4: +5%) ● Staffing & Inhouse down 3% (Q4: down 7%) ● US Professionals, revenue up 2% (Q4: flat) ● Professi
Slide 8: The Netherlands and Germany
the netherlands germany ahead of market. challenging market conditions. ● revenue at +1% (Q4: +3%) ● revenue down 10% (Q4: down 7%) ○ perm up 20% (Q4: down 14%) ● Staffing & Inhouse down 13% (Q4: down 12%) ● combined Staffing & Inhouse businesses flat (Q4: +1%) ● Professionals down 1% (Q4: +7%) ● Pr
Slide 9: Belgium and Italy
belgium italy continued market outperformance. growth back in positive territory. ● revenue up 1% (Q4: flat) ● revenue up 1% (Q4: down 1%) ○ market outperformance ○ strong perm growth at +29% (Q4: +28%) ○ positive impact data-led ‘Customer Delight’ ● EBITA margin at 6.0% vs. 5.9% LY ● EBITA margin a
Slide 10: Iberia and other European countries
iberia other european countries spain returning to growth. mixed trends. ● spain revenue up 3% (Q4: down 3%) ● UK revenue growth up by 3% (Q4: +5%) ○ strong pricing discipline ● nordics down 10% (Q4: down 4%) ● portugal revenue down 6% (Q4: down 9%) ● switzerland growth up 2% (Q4: +6%) ● EBITA margi
Slide 11: Rest of the world and global businesses
rest of the world global businesses double-digit growth, strong conversion. improved growth and profitability. ● japan growth up 5% (Q4: +6%) ● global businesses up 4% (Q4: 0%) ● australia & new zealand grew 5% (Q4: +10%) ● sourceright global double-digit revenue growth ○ strong performance in EMEA
Slide 12: financial results & outlook
financial results & outlook. © Randstad 2019 | 12
Slide 13: Q1 2019 strong operational performance
Q1 2019 strong operational performance. Q1 performance Q1 key financials € million Q1 ’19 Q1 ’18 % org. revenue 5,718 5,683 0% • revenue up 0.5% gross profit 1,128 1,114 1% gross margin 19.7% 19.6% • EBITA margin 4.0% (Q1 2018: 3.9%) operating expenses* 901 892 (1)% opex % 15.8% 15.7% • agile opex s
Slide 14: Q1 2019 improved pricing drives gross margin up
Q1 2019 improved pricing drives gross margin up. Q1 gross margin development YoY Q1 highlights • temp margin impact +10bp • perm fees grew 5% YoY organically, adding 10bp • HRS/other impact -10bp © Randstad 2019 | 14
Slide 15: Agile cost management in Q1 2019
agile cost management in Q1 2019. Q1 sequential opex bridge Q1 cost management • organic opex increased 1% vs. Q4, down 1% YoY • on track to deliver cost savings program • flexible cost base and tight steering continues to pay off © Randstad 2019 | 15
Slide 16: Increasing free cash flow, sound FY 2019 outlook
increasing free cash flow, sound FY 2019 outlook. improved free cash flow YoY strong balance sheet • net debt € 1,640m (down € 86m vs. LY) including lease liabilities due to IFRS 16 • Q1 FCF € -2m (+ € 23m vs. Q1 2018) • leverage ratio pre IFRS 16: 0.8 (Q1 2018: • positive impact French subsidy chan
Slide 17: Conclusion and outlook: continuous tight steering
conclusion and outlook: continuous tight steering. Q1 conclusion and outlook March trend in line with Q1 NAM FR • stabilizing competitive revenue growth NL GER • gross margin up, driven by pricing BEL IBE • agile opex management, EBITA margin up IT 10bp YoY RoE low single-digit growth/decline RoW mi
Slide 18: questions & answers
questions & answers. © Randstad 2019 | 18
Slide 19: appendices
appendices randstad. © Randstad 2019 | 19
Slide 20: outlets by region
outlets by region. end of period Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 North America 1,138 1,142 1,119 1,090 1,091 France 628 625 645 657 663 the Netherlands 660 658 664 665 648 Germany 589 601 601 595 588 Belgium & Luxembourg 329 326 322 325 323 Italy 264 265 264 266 269 Iberia 377 371 369 365 36
Slide 21: corporate staff by region
corporate staff by region. average Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 North America 5,680 5,840 5,840 5,720 5,660 France 4,540 4,540 4,590 4,500 4,410 the Netherlands 4,270 4,370 4,380 4,360 4,350 Germany 2,880 3,080 3,180 3,120 3,020 Belgium & Luxembourg 2,050 2,130 2,230 2,130 2,100 Italy 2,2
Slide 22: staffing employees by region
staffing employees by region. average Q1 2019 Q1 2018 North America 93,400 97,300 France 83,300 84,000 the Netherlands 80,100 80,900 Germany 41,800 47,200 Belgium & Luxembourg 44,300 42,900 Italy 45,600 48,000 Iberia 63,700 66,600 Other European countries 60,700 64,000 Rest of the world 113,100 109,
Slide 23: eaese
eaese human forward WM