Slide 1: Capital Markets Day 2023
Slide 2: Partner for talent
01 partner for talent. sander van ‘t noordende
Slide 3: Key takeaways
key takeaways. "to be the world’s most equitable and specialized talent company" strongest partner a new growth specialization outstanding foundation for talent algorithm team partner for talent | 3
Slide 4: Strongest foundation
strongest foundation. • to know • adaptability universal compounding values • • to serve to trust + DNA • • scale investment capacity • growth • clients industry conversion satisfied • talents + leading performance • • cash • employees • TSR partner for talent | 4
Slide 5: The world of work is changing rapidly
the world of work is changing rapidly. talent clients looking digital, data scarcity. for more support. AI, cloud. partner for talent | 5
Slide 6: The world's most equitable and specialized talent company
the world’s most equitable and specialized talent company. partner for talent | 6
Slide 7: Operational, professional, digital, enterprise
operational professional digital enterprise 7
Slide 8: Our partner for talent strategy is built on 5 pillars
our partner for talent 5 strategy is built on 5 pillars. best team 4 randstad talent platform 3 delivery excellence 2 talent and equity at the heart 1 growth through specialization partner for talent | 8
Slide 9: An outstanding leadership team
an outstanding leadership team. sander van 't jorge vazquez myriam beatove jesus echevarria miriam van martin de weerdt noordende chief financial moreale chief talent & client der heijden chief information chief executive officer chief human delivery officer chief marketing officer officer resources
Slide 10: Key takeaways
key takeaways. "to be the world’s most equitable and specialized talent company" strongest partner outstanding a new growth specialization algorithm foundation for talent team partner for talent | 10
Slide 11: Our agenda
our agenda. 01. partner for talent 02. growth through specialization break 03. talent and client delivery 04. randstad talent platform and best team 05. new growth algorithm 06. Q&A our agenda | 11
Slide 12: Growth through specialization
02 growth through specialization. dominique hermans
Slide 13: Our specialization framework
our specialization framework. light industrial operational accounting customer experience RPO skilled trades finance management cloud computing and MSP HR & legal management infrastructure supervision career transition engineering, design, R&D sales & marketing data & analytics workforce advisory ma
Slide 14: 6 high growth job segments for our key markets
6 high growth job segments for our key markets. + 8% + 20% 66 50 + 13% + 25% + 11% + 6% 13 18 12 1 skilled trades logistics & IT support & biotech & life 1 & engineering 2 e-commerce 3 finance 4 healthcare 5 professionals 6 sciences jobs industry jobs jobs jobs industry operational professional digi
Slide 15: Broadening our services towards an end-to-end service portfolio
broadening our services towards an end-to-end service portfolio. workforce career skilling coaching advisory transition TAM 2022 €1bn €155bn €2bn €2.4bn estimated randstad analysis 2022 data growth through specialization | 15
Slide 16: Drive performance and execute strategy
drive performance and execute strategy. execute strategy partner for talent drive performance growth through specialization | 16
Slide 17: Growth through specialization
growth through specialization. dominique herman nijns kajetan slonina marc-etienne venu lambu michael smith hermans julien chief executive chief executive chief executive chief executive chief executive chief executive northern europe southern europe, asia pacific north america randstad digital rand
Slide 18: Southern Europe, UK & Latin America
southern europe, uk & latin america. herman nijns – regional chief executive key financials € ~1,040m € ~355m GP GP operational professional talent client 258,000 90,000 8.6 8.3 FY 2022, # talent and clients and engagement scores
Slide 19: Asia Pacific
asia pacific. kajetan slonina – regional chief executive key financials € ~250m € ~180m GP GP operational professional talent client 112,000 28,000 8.3 7.0 FY 2022, # talent and clients and engagement scores
Slide 20: North America
north america. marc-etienne julien – regional chief executive key financials € 696m € 152m GP GP operational professional talent client 75,000 26,000 8.3 7.9 FY 2022, # talent and clients and engagement scores
Slide 21: Accelerating roll-out of our digital marketplace
accelerating roll-out of our digital marketplace. randstad benefits • talent loyalty and utilization gains • increased revenue per client • higher productivity talent benefits client benefits • skills & geo-based job matching • access via app or desktop • 24/7 access • 24/7 access • ability to rate
Slide 22: Northern Europe
northern europe. dominique hermans – regional chief executive key financials € ~1,200m € ~300m GP GP operational professional talent client 187,000 45,000 7.9 7.5 FY 2022, # talent and clients and engagement scores 22
Slide 23: Randstad Digital
randstad digital. venu lambu
Slide 24: Randstad Digital is well positioned to capture growth
randstad digital is well positioned to capture growth. 25,000+ 20+ 4 5 engineers & markets operated customer experience global talent centers: digital experts by randstad cloud & infrastructure bangalore, hyderabad worldwide digital data & analytics romania, portugal, digital & product canada engine
Slide 25: Digital transformation is a massive opportunity for Randstad
digital transformation is a "massive" opportunity for randstad. 9 out of 10 AI growth $2-4 trillion $3 trillion c-level and senior is pushing companies annually from in EBITDA to be execs have pursued 1+ to get their data and generative AI is generated from large digital cloud infrastructure in clou
Slide 26: Talent is a critical challenge for digital transformation
talent is a critical challenge for digital transformation. are unable to of enterprises are not source/train talent on able to realize value next-gen technologies of tech investments believe situation is critical have insufficient in-house talent to achieve digital product success *everest 2023 repo
Slide 27: Randstad Digital is positioned as a digital enablement partner
randstad digital is positioned as a digital enablement partner. talent services global talent centers managed solutions growth through specialization | 27
Slide 28: Generate talent at scale
generate talent at scale. randstad digital academy cloud data & analytics digital & product engineering customer experience © Randstad | 28
Slide 29: Key clients are selecting Randstad Digital for digital transformation
key clients are selecting randstad digital for digital transformation. global automobile healthcare & life sciences financial services manufacturer customer experience cloud digital & product 100+ talent data & analytics engineering 300+ talent 200+ talent growth through specialization | 29
Slide 30: Randstad Enterprise
randstad enterprise. michael smith
Slide 31: Randstad Enterprise is talent-led & enterprise focused
randstad enterprise is talent-led & enterprise focused. representing the world’s largest brands 100+ brands | €5bn delivering strategic talent solutions growth through specialization | 31
Slide 32: Clients are facing significant talent related challenges
clients are facing significant talent related challenges. 1 scalable hiring models implementing diverse 2 employment solutions 3 talent intelligence
Slide 33: Randstad Enterprise is positioned as an end-to-end partner for talent
randstad enterprise is positioned as an end-to-end partner for talent. talent advisory talent talent intelligence DE&I talent development acquisition talent marketing talent transition DE&I talent technology growth through specialization | 33
Slide 34: Clients and industry analysts recognize our leadership
clients and industry analysts recognize our leadership. "as the client base increasingly looks to strategic support rather than just local placement or high-volume rostering, we think randstad has the strongest portfolio, positioning, and momentum." "randstad is the only organization with a leading
Slide 35: Randstad Enterprise generates significant value
randstad enterprise generates significant value. growth attractive the world’s and resilience margins best brands 41 diamond accounts value add services retaining and and solutions drive working with over our margin 50% of the fortune 500 companies growth through specialization | 35
Slide 36: Talent & client delivery
03 talent & client delivery. jesus echevarria 36
Slide 37: Increasing talent expectations
increasing talent expectations. belonging learning flexibility career experience purpose
Slide 38: Set new equity standards for our industry
set new equity standards for our industry. • global and diverse talent • new norm • equity is an opportunity • equity by design • social impact talent & client delivery | 38
Slide 39: Partner for talent
• job opportunities partner for talent. • professional growth capitalizing on our strong position • skilling • access to talent talent & client delivery | 39
Slide 40: Randstad: partner for talent
randstad: partner for talent. 2,083,000 30,000 talents registered talent placed in 2022 every day 663,000 individuals payrolled 75,000,000 every week talents on our website 343,000 10,000 individuals placed in people hired permanent positions every day FY 2022 talent & client delivery | 40
Slide 41: Client delivery is pivotal
client delivery is pivotal. • by specialization • industry knowledge • at scale • on time • right quality
Slide 42: Delivery value creation
delivery value creation. • talent and client satisfaction • consistent unique • efficient competitive • scalable advantage • risk management • innovation
Slide 43: Omnichannel go to market
omnichannel go to market. strategic accounts branch digital sales matching delivery branch in-house center digital talent branch talent center digital validation talent & client delivery | 43
Slide 44: Omnichannel go to market
omnichannel go to market. strategic accounts branch digital sales matching branch in-house digital talent branch talent center digital validation talent & client delivery | 44
Slide 45: Omnichannel go to market
omnichannel go to market. strategic accounts branch digital sales matching branch in-house digital talent branch talent center digital validation talent & client delivery | 45
Slide 46: Specialized sourcing through talent centers
specialized sourcing through talent centers. spain: operational japan: operational & professional • 5% fulfillment uplift • 25% productivity gain • increase 10% talent utilization • 60% reduction in time to fill • >50% colleagues with a disability talent & client delivery | 46
Slide 47: Customized delivery solutions for the best client experience
customized delivery solutions for the best client experience. spain: professional netherlands: professional banking government • 1749 different locations • one dedicated team • 100% fulfillment • client satisfaction >8 • 70% productivity uplift • 30% productivity uplift talent & client delivery | 47
Slide 48: Exceed client expectations
exceed client expectations. quantity database & search quality & match validation process speed from order-driven to forecast-driven
Slide 49: Global talent & delivery centers
global talent & delivery centers. key locations: • canada • brazil • portugal • czech republic • hungary • romania • india (3) productivity gains 25-50% talent & client delivery | 49
Slide 50: Digital marketplaces driving 1 billion euro in revenues
digital marketplaces driving 1 billion euro in revenues. operational professional education operational retail united states australia france • over 30,000 workers by 2023 • 1,000,000 shifts in 2023 • 25,000 talent across 1,400 locations • increased talent utilization • 90% full digital matching • m
Slide 51: Talent & equity and delivery excellence benefits
talent & equity and delivery excellence benefits. • talent & client satisfaction • reliable @scale @speed • cost effectiveness
Slide 52: Randstad talent platform and best team
04 randstad talent platform and best team. martin de weerdt myriam beatove moreale 52
Slide 53: An amazing engine
an amazing engine. • 75 million talents on our websites • 100,000 clients on our portals • multiple digital marketplaces • flawless execution every day • a reputation for delivery FY 2022
Slide 54: Randstad talent platform
randstad talent platform. • best online and offline experience • for all specializations • next level productivity • innovation at pace and scale • drive economies of scale • right-sourcing
Slide 55: Driving specialization and talent & client engagement
driving specialization and talent & client engagement. front office talent engagement client engagement common services & integration mid office standard where possible, randstad where needed based on best-in-class technologies and partners randstad talent platform and best team | 55
Slide 56: Implementing with care
implementing with care. focus on free up keep the bring the value capacity business people to invest running along randstad talent platform and best team | 56
Slide 57: Let's talk best team
let’s talk best team.
Slide 58: We have the best team in the industry
we have the best team in the industry. 46,000 employees 84% of employees find engagement strong work meaningful above true at randstad over 50% benchmark culture of employees are female we know, we present in serve, we trust entrepreneurial, 39 markets pragmatic, fast, agile FY 2022 randstad talent
Slide 59: External recognition
external recognition. randstad talent platform and best team | 59
Slide 60: AI at Randstad: massive opportunity
AI at randstad: massive opportunity. early adopter scaling LLM at speed yet responsibly
Slide 61: New growth algorithm
05 new growth algorithm jorge vazquez
Slide 62: Strongest foundation
strongest foundation. CAGR CAGR 6% 9% revenue (€) EBITA (€) 2013 2022 2013 2022 CAGR gross profit (€) 8% free cash flow (€) CAGR 11% 2013 2022 2013 2022 (*) excluding CICE new growth algorithm | 62
Slide 63: Positioned to benefit from recovery
positioned to benefit from recovery. PMI manufacturing index EU US randstad quarterly organic revenue growth 2014 2018 2022 * trading economics, 2023 new growth algorithm | 63
Slide 64: New growth algorithm for Randstad
new growth algorithm for randstad. accelerate growth invest to grow expand conversion new growth algorithm | 64
Slide 65: Specializations as growth platforms
specializations as growth platforms. revenue in 2022** ~€19bn ~€4bn ~€2.6bn* ~€1bn gross profit in 2022** ~€3bn ~€1bn ~€0.6bn* ~€0.7bn conversion mid to high mid to high mid to high rate in 2022 mid 10s% 20s% 20s% 20s%* *digital: randstad technologies, ausy new growth algorithm | 65 **excluding mons
Slide 66: Accelerate growth
accelerate growth. specialization high growth segments expand service portfolio addressable market ~€ 320bn* ~€ 220bn* ~€ 1.2tn** ~€ 250bn**** ~GDP ~8% ~7% ~14% CAGR L6Y GDP GDP+ ~8-10%*** >10% growth outlook client access (41 diamond clients, total clients 233,000) * Staffing Industry Analysts (SIA
Slide 67: Expand conversion
expand conversion. delivery excellence free up capacity portfolio evolution ● field steering ● dynamic pricing ● talent and delivery centers ● talent and delivery centers ● digital marketplaces ● digital marketplaces ● functional ● IT ● accommodation ● general ● dynamic pricing ● global delivery cen
Slide 68: Invest to grow
invest to grow. organic growth: field capacity M&A by specialization strong focus on ROIC and digital capabilities 300 200 100 0 2013 2017 2022 2013 2017 2022 GP 12m FTE 12m EVA (€m) period average (4y) adaptability through field steering | maintain capital allocation discipline new growth algorithm
Slide 69: Strong and resilient cash flow
strong and resilient cash flow. accelerate growth expand conversion resilient cash flow generation ~GDP++ underlying EBITA margin 5% to 6% ~GDP 2022 future 2022 future 2022 future revenue (€) EBITA free cash flow *future means through the cycle and indicative only new growth algorithm | 69
Slide 70: Randstad capital allocation policy
randstad capital allocation policy. organic growth investments ordinary cash dividend payout 40–50% of adj. net income floor cash dividend of €1.62 per share* M&A when leverage ratio < 1.0** -> optional additional returns to shareholders special cash dividend share buybacks *barring (i) seriously ad
Slide 71: Growth algorithm for Randstad
growth algorithm for randstad. step up in growth accelerate growth • four specializations sound • high growth segments financial • expand service portfolio position invest to grow • prioritize organic growth • randstad talent platform • M&A return to • ordinary cash dividend shareholders 5-6% • opti
Slide 72: Partner for talent
partner for talent. alm randstad
Slide 73: Thank you