Sthree Plc · LSE:STEM
Sthree — Investor Presentation (November 2022)
24 slides from Sthree's investor presentation, Nov 15, 2022
Slide 1: Investor briefing: Our path to growth
Investor briefing 15 November 2022 ‘Our path to growth’ Timo Lehne, CEO Andrew Beach, CFO s|three®
Slide 2: Forward-looking statements
This presentation contains forward looking statements that are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the countries and sectors in which SThree operates. These risk factors and variables could cause actual
Slide 3: We are SThree. The global STEM-specialist talent partner
We are SThree. The global STEM-specialist talent partner. We are unique. Our purpose Our vision Bringing skilled people To be the #1 STEM talent together to build provider in the best the future STEM markets STHREE.COM 3 a
Slide 4: Our unique model underpins our success
Our unique model underpins our success Science Technology Engineering Mathematics SThree — where the world comes for flexible STEM talent STHREE.COM
Slide 5: Our unique model underpins our success
Our unique model underpins our success Flexible Talent STEM 77% Contract @ Employed Contractor (ECM) @ Independent Contractor @ Life Sciences @ Technology > Engineering @ Total Contract @ Banking and Finance © Permanent Uniquely positioned to capitalise on structural STEM growth trends J Note 1: Bus
Slide 6: Our ambitions for FY 2024
Our ambitions for FY 2024 »* Market share of STEM Conversion ratio (CR%2) To grow Group To deliver a sustainable operating To be an employer of choice in the To reduce our carbon footprint on market share profit conversion ratio Professional Services sector the path to Net Zero Faster than 21%+ Uppe
Slide 7: Achieving our growth ambitions for FY 2024
Achieving our growth ambitions for FY 2024 Market share of STEM Conversion ratio (CR%) To grow Group To deliver a sustainable operating market share profit conversion ratio Faster than 21%+ \ Peer Group / NS . uf STHREE.COM 7 a
Slide 8: How we will achieve our ambitions
How we will achieve our ambitions @ Seize the market opportunity (2) Discipline and focus @) Technology improvement programme Driving sustainable improvements in performance STHREE.COM 8 a
Slide 9: How we will achieve our ambitions: Seize the market opportunity
How we will achieve our ambitions Seize the market opportunity STHREE.COM 9 a
Slide 10: Market-leading positions in the most important STEM markets
Market-leading positions in the most important STEM markets Global SThree’s top five markets Market share in STEM market’ addressable share of our top five markets global market >£100bn c./5% C.2% Substantial opportunity in highly fragmented markets Note: Global staffing revenue within STEM (IT, eng
Slide 11: Helping to solve the toughest challenges of our time
Helping to solve the toughest challenges of our time eS 1@® Digitalisation Decarbonisation Research-led Demographic Shifting attitudes Healthcare changes to work Global megatrends drive an increasing demand for STEM skills STHREE.COM n a
Slide 12: Helping to solve the toughest challenges: Digitalisation
Helping to solve the toughest challenges of our time: Digitalisation Digitalisation is enabling businesses to become more sustainable and resilient Direct digital transformation New digital jobs required investment, 2022-24! globally by 2025 $6.3tn 149m Source: IDC Source: Microsoft Global digital t
Slide 13: Helping to solve the toughest challenges: Decarbonisation
Clean energy investment in 2022 $1.4tn Source: IEA New ‘green’ energy jobs required globally by 20302 +30m Source: IEA Note‘: Growth in annual clean energy investment required by 2030 to achieve IEA’s Net Zero Scenario Note 2: 14 milion jobs created in global energy supply, and further 16 million in
Slide 14: Helping to solve the toughest challenges: Research-led healthcare
Helping to solve the toughest challenges of our time: Research-led healthcare Lasting shift in life sciences R&D accelerating collaboration and innovation, driving shorter timelines and stronger ROI Five-year growth in Biotech Growth in global pharma sector investment! R&D spend by 20282 +94% +48% S
Slide 15: Helping to solve the toughest challenges: Demographic changes
Helping to solve the toughest challenges of our time: Demographic changes Global aging population leading to skill shortages particularly in STEM wal Global population aged 60 years or over by 2030 1in6 Source: WHO Growth of US STEM occupations to 2031! x2.2 Source: US Bureau of Labor Statistics Sho
Slide 16: Helping to solve the toughest challenges: Shifting attitudes to work
Share of US workforce that identify as independent workers, 2022 36% Source: McKinsey & Co Share of executives believe freelancers likely to replace full-time employees in 5yrs' 62% Source: SIA/Ceridian Note: Share of global executives polled think that freelancers, or gig workers will ‘substantiall
Slide 17: SThree — delivering essential STEM expertise
Helping to solve the toughest challenges of our time SThree — delivering essential STEM expertise STHREE.COM
Slide 18: 'Flexible Talent' — the future of the workforce
‘Flexible Talent’ — the future of the workforce Disciplined focus on contract Differentiated positioning Strong growth driving visibility * Particularly suited to STEM staffing Contractor order book * More predictable and visible earnings ° +35% * Higher lifetime value and profitability 77 % we * Hi
Slide 19: Strategic focus on STEM and flexible talent drives outperformance
Strategic focus on STEM and flexible talent drives outperformance SThree vs UK-listed staffers - Net Fees (indexed to 100) * Shallower drop during the pandemic * Less volatility through periods of market disruption + First to recover to pre-pandemic performance * ECM largest growth driver CY 2019 Ju
Slide 20: How we will achieve our ambitions: Discipline and focus
How we will achieve our ambitions Discipline and focus STHREE.COM 20 a
Slide 21: Market invest model — drives focused decision-making
Market invest model — drives focused decision-making Focus on geographies and STEM skill verticals in high-value disciplines that will drive the best returns Futur. i i uture Financial returns market growth opportunities qharket Prioritia, ‘We know where to play, and play where we win’ STHREE.COM 21
Slide 22: Uniquely positioned to win in a changing world
Uniquely positioned to win in a changing world Unique model with significant market growth potential Global megatrends drive an increasing demand for STEM skills Well-positioned to capitalise on these structural growth drivers High quality and resilient business delivering outperformance A clear str
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Slide 24: Thank you
Thank you Q4 Trading Update 14 Dec 2022 FY 2022 Results 30 Jan 2023