Slide 1: 1st quarter results 2011
1st quarter results 2011 strong start of the year; revenue up 22% and EBITA up 44% Robert-Jan van de Kraats, CFO Randstad Holding nv April 28, 2011
Slide 2: Disclaimer & definitions
disclaimer & definitions Certain statements in this document comprise forecasts on Randstad Holding’s future financial condition and results from operations and certain plans and goals. By their nature, such forecasts generate risk and uncertainty because they concern events in the future and depend
Slide 3: Agenda
agenda • performance • financial results & outlook • Q&A 3 April 28, 2011 first quarter results 2011
Slide 4: Performance
performance 4 April 28, 2011 first quarter results 2011
Slide 5: Strong market trends persist
strong market trends persist quarterly market growth (YoY) 40% • market growth on average 30% strong, despite more difficult 20% 10% comparables 0% -10% • continued high growth in -20% -30% industrial segments -40% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 • public sector segment NL & UK NL France G
Slide 6: Q1 2011: strong start of the year
Q1 2011: strong start of the year • revenue amounted to € 3,700 million (+15% YoY organically per wd) - organic growth per working day reached 15% in March - inhouse still very strong at +41% vs. +51% in previous quarter - growth in staffing up to +16% vs. +15% in Q4 2010 - professionals from +4% to
Slide 7: Q1 2011: strong start of the year (continued)
Q1 2011: strong start of the year (continued) • EBITA reached € 109 million vs. € 75 million in Q1 2010 - EBITA margin amounted to 2.9% vs. 2.5% in Q1 2010 • developments regarding earthquake/tsunami in Japan: - all our internal staff were safe, one flexworker unaccounted for - all outlets have been
Slide 8: The Netherlands: Randstad back at market
the Netherlands: Randstad back at market • organic revenue 7% (Q4: +4%) revenue & EBITA margin - Randstad back at market in a competitive environment 800 7.5% - Tempo-Team somewhat behind - revenue decline at Yacht stable at single digit rate 750 6.5% million € 700 • exposure public sector significa
Slide 9: France: continued outperformance
France: continued outperformance • organic revenue +22% in Q1 2011 (Q4: +21%) revenue & EBITA margin - outperforming the market 900 4.0% - growth broad based; manufacturing main driver - permanent placement up 25% (YoY) vs. 18% in Q4 2010 800 3.0% - growth professionals segment strenghtened 2.0% mil
Slide 10: Germany: strong performance
Germany: strong performance • organic revenue +29% in Q1 2011 (Q4: +32%) revenue & EBITA margin - continued strong growth trend despite tougher 500 10.0% comparables (Q1 2010: +10%) - performance in line with staffing market 450 8.0% - more favorable mix in Randstad & Tempo-Team 400 6.0% million € •
Slide 11: Belgium: solid performance
Belgium: solid performance • organic revenue +20% in Q1 2011 (Q4: +17%) revenue & EBITA margin - outperformance of staffing market 400 7.0% - industrial segment main driver 350 6.0% - administrative segment strengthening 300 5.0% million € 250 • EBITA margin to 4.2% vs. 2.9% LY 200 4.0% - strong inc
Slide 12: UK: mixed picture
UK: mixed picture • organic revenue +4% in Q1 2011 (Q4: +9%) revenue & EBITA margin - private sector +22% vs. public sector -27% 250 5.0% - healthcare, education & staffing affected by 4.0% 225 reduction public sector spending 3.0% 200 2.0% million € 175 • inhouse continued to gain market share 1.0%
Slide 13: North America: fifth consecutive quarter growth
North America: fifth consecutive quarter growth • organic revenue +19% in Q1 2011 (Q4: +21%) revenue & EBITA margin - US grew in line with market 500 5.0% - Canada outperformed in staffing and professionals 4.0% 450 • US staffing remained strong at +21% 400 3.0% million € - improved mix: administrat
Slide 14: Segment performance
segment performance Staffing in € million Q1 2011 Q1 2010* % organic • driven by industrial clients revenue 2,400.1 2,004.9 16% • predominantly led by early movers EBITA 74.8 49.4 49% • administrative segments strengthen EBITA margin 3.1% 2.5% • strong leverage Inhouse in € million Q1 2011 Q1 2010 %
Slide 15: Revenue development per industry segment
revenue development per industry segment Segments USA Germany France Netherlands Manufacturing + ++ ++ ++ Automotive o ++ ++ ++ Food + o + o Transport + + + ++ Business services ++ + + + Financial services ++ ++ ++ o IT services ++ + ++ + Public sector -- o - -- Health & social work ++ ++ o - 15 Apr
Slide 16: Professionals organic growth accelerator
professionals organic growth accelerator rebranding • rebranding campaign launched in several countries in 2010 • around 70% of professionals business under Randstad brand after rebranding in US • Randstad “look and feel” implemented in all remaining brands professionals concept • best practices for
Slide 17: Financial results & outlook
financial results & outlook 17 April 28, 2011 first quarter results 2011
Slide 18: Q1 2011: financial key points
Q1 2011: financial key points • EBITA up 44% to € 109 million • effective tax rate* amounted to 31% - in line with guidance for 2011 between 29-32% • diluted EPS* up 36% to € 0.38 vs € 0.28 in Q1 2010 • moving average DSO improved by 2.5 days to 54 days (YoY) and by 0.5 day compared to previous quar
Slide 19: Income statement Q1 2011
income statement Q1 2011 € million Q1 2011 Q1 2010 % change % organic revenue 3,700 3,039 22% 17% gross profit 671 575 17% 12% gross margin 18.1% 18.9% operating expenses 562 500 12% 8% opex as % of revenue 15.2% 16.4% underlying EBITA 109 75 44% 40% underlying EBITA margin 2.9% 2.5% reported EBITA
Slide 20: Gross margin Q1 2011
gross margin Q1 2011 gross margin development 19.5 19 -/- 0.4 18.5 -/- 0.2 18.9 -/- 0.2 18 18.1 17.5 Q1 2010 temp margin French perm fees HRS/other Q1 2011 subsidies • some price pressure on temp margins in some regions • mix shift due to strong inhouse growth – slower growth professionals • impact
Slide 21: Drivers effective tax rate
drivers effective tax rate effective tax rate* was up to 31% in line with guidance (vs. 29% in 2010) - change in geographical mix: high growth in countries with above average tax rates - as our results improve, the relative effect of the tax planning measures decreases driver effective* cash tax exp
Slide 22: Selected balance sheet items
selected balance sheet items € million March 31, 2011 March 31, 2010 trade and other receivables 2,701 2,308 trade and other payables -/-2,185 -/-1,843 operating working capital* 516 465 cash & cash equivalents 280 392 current borrowings -/-95 -/-121 non-current borrowings -/-931 -/- 1,267 net debt
Slide 23: Consolidated cash flow statement
consolidated cash flow statement € million Q1 2011 Q1 2010 cash flow from operations before OWC 147 108 usage of OWC -/- 2 -/- 57 additions of PPE and software -/- 17 -/- 12 financial receivables - - disposals of PPE 2 1 free cash flow 130 39 € million Q1 2011 free cash flow 130 net (acquisition)/ d
Slide 24: Outlook
outlook • organic growth per working day was 15% in March • trends continued into April • comparison base more challenging in Q2 (organic growth p/wd: April – June 2010 ∆ + 4%) • continued focus on field steering • dividend payment of € 209 million in April 24 April 28, 2011 first quarter results 20
Slide 25: Q&A
™r- randstad Staffing | Professionals | Search & Selection | HR Solutions | Inhouse Services Q&A
Slide 26: Appendices
™r- randstad Staffing | Professionals | Search & Selection | HR Solutions | Inhouse Services appendices
Slide 27: Debt facilities & repayment schedule
debt facilities & repayment schedule repayment schedule (excluding current borrowings) 1400 cash March 2011 term revolver 1200 1000 € x million 800 600 135 400 556 200 280 105 135 0 • covenant; net debt/EBITDA* of max. 3.5 - at the end of Q1 2011 the net debt/EBITDA ratio was 1.2 • syndicated facili
Slide 28: Financing: fixed vs. floating interest rates
financing: fixed vs. floating interest rates 10 year historical interest rates comparison 1M vs 5Y 6% 5% 4% average fixed rate = 3.6% 3% average floating rate = 2.6% 2% 1% 0% March 2001 March 2011 1M Float 5Y Fixed • we use floating interest rates as a natural hedge - spread above Euribor of 50-115
Slide 29: Revenue split Q1 2011
revenue split Q1 2011 geographical area sectors NL France 9% 19% Germany 13% 19% Belgium/Lux. 6% 65% UK 20% 16% 6% Iberia 6% ROE 9% 12% N-America ROW staffing inhouse professionals 29 April 28, 2011 first quarter results 2011
Slide 30: EBITA breakdown by geography spread significantly improved
EBITA breakdown by geography spread significantly improved Q1 2011 Q1 2010 NL NL 1% 1% 3% 7% France 4% France 9% Germany Germany 5% 3% 4% 32% 2% Belgium/Lux. Belgium/Lux. 10% 46% UK UK 12% Iberia Iberia 18% 13% ROE ROE 21% 9% N-America N-America ROW ROW 30 April 28, 2011 first quarter results 2011
Slide 31: Outlets by country
outlets* by country end of period Q1 2011 Q4 2010 Q3 2010 Q2 2010 Q1 2010 the Netherlands 746 733 739 725 726 France 896 905 896 928 966 Germany 516 503 475 450 433 Belgium/Lux 367 374 387 388 392 United Kingdom 278 289 297 300 289 Iberia 268 257 266 264 261 Other Europe 322 316 351 346 340 North Am
Slide 32: Corporate employees by country
corporate employees by country average Q1 2011 Q4 2010 Q3 2010 Q2 2010 Q1 2010 the Netherlands 5,190 5,280 5,300 5,210 5,260 France 3,870 3,920 3,940 3,870 3,870 Germany 2,880 2,890 2,740 2,430 2,370 Belgium/Lux. 2,080 2,130 2,150 2,030 2,020 United Kingdom 1,990 2,060 2,050 2,040 2,040 Iberia 1,450
Slide 33: Staffing employees by country
staffing employees by country averages Q1 2011 Q1 2010 the Netherlands 86,100 79,700 France 86,100 73,800 Germany 52,700 42,300 Belgium/Lux. 42,900 37,500 United Kingdom 24,700 23,100 Iberia 47,500 46,700 Other Europe 37,000 28,600 North America 55,200 47,900 Rest of world 104,500 82,500 total 536,7