Robert Half Inc. · NYSE:RHI
Robert Half — Investor Presentation (November 2023)
37 slides from Robert Half's investor presentation, Nov 15, 2023
Slide 1: Investor Presentation
Investor Presentation M. Keith Waddell President and Chief Executive Officer Robert Half November 2023 © 2023 Robert Half Inc. An Equal Opportunit y Employer M/F/Disability/Vet erans.
Slide 2: Disclaimer
Disclaimer Certain information contained in this presentation may be deemed forward-looking statements regarding events and financial trends that may affect the company’s future operating results or financial positions. Forward-looking statements are subject to risks and uncertainties that could cau
Slide 3: Company Snapshot Q3 2023
Q3 2023 INVESTOR PRESENTATION Company Snapshot NYSE symbol: Q3 2023 RHI Service Revenues: $1.56 Billion Headquarters: Menlo Park, Calif. Net Income: $96 Million Full-time internal staff*: Return on Invested Capital: 15,200 23.9% * As of September 30, 2023. Includes approximately 7,100 employees enga
Slide 4: Local Capabilities, Global Reach
Q3 2023 INVESTOR PRESENTATION Local Capabilities, Global Reach Robert Half 319 office locations 19 countries Protiviti 89 office locations* 29 countries* Robert Half and Protiviti* *Includes Member Firms, which are independent legal entities operating under the Protiviti name 4 © 2023 Robert Half In
Slide 5: The Most Respected Name in Talent Solutions and Consulting
Q3 2023 INVESTOR PRESENTATION The Most Respected Name in Talent Solutions and Consulting All referenced trademarks are the property of their respective owners. Barron’s and Forbes award logos are reprinted with permission of Barron’s and Forbes. From FORTUNE, ©2023 FORTUNE Media IP Limited. All righ
Slide 6: 75 Years of Changing Lives and Helping Companies Succeed
Q3 2023 INVESTOR PRESENTATION 75 Years of Changing Lives and Helping Companies Succeed 1948 1986 1987-2001 2002 Today Originated as Acquired Expanded globally; Launched Offer full spectrum Robert Half business from introduced Protiviti of talent solutions Personnel Agency Bob Half specialized brands
Slide 7: U.S. Accounts for Almost 80% of Talent Solutions Revenues
Q3 2023 INVESTOR PRESENTATION U.S. Accounts for Almost 80% of Talent Solutions Revenues Talent Solutions Revenue Mix — Global International United States 24% 76% Q3 2023 Talent Solutions Revenues 7 © 2023 Robert Half Inc. An Equal Opportunit y Employer M/F/Disability/Vet erans.
Slide 8: Largest Portion of International Talent Solutions Revenues from Continental Europe
Q3 2023 INVESTOR PRESENTATION Largest Portion of International Talent Solutions Revenues from Continental Europe Talent Solutions Revenue Mix — International Continental Europe 11% International United States Asia-Pacific 4% 24% 76% Canada 4% United Kingdom 3% Other 2% Q3 2023 Talent Solutions Reven
Slide 9: Germany and Belgium Produce Largest European Revenues
Q3 2023 INVESTOR PRESENTATION Germany and Belgium Produce Largest European Revenues Talent Solutions Revenue Mix — Continental Europe Germany 5% Continental Europe Belgium 4% 11% France 1% Other 1% Q3 2023 Talent Solutions Revenues 9 © 2023 Robert Half Inc. An Equal Opportunit y Employer M/F/Disabil
Slide 10: Revenue Mix by Segment
Q3 2023 INVESTOR PRESENTATION Revenue Mix by Segment Q3 2023 Global Revenues Permanent Placement Talent Solutions Protiviti 9% 31% Contract Talent Solutions 60% 10 © 2023 Robert Half Inc. An Equal Opportunit y Employer M/F/Disability/Vet erans.
Slide 11: Revenue Mix by Segment
Q3 2023 INVESTOR PRESENTATION Revenue Mix by Segment Q3 2023 Global Revenues Administrative and Technology Customer Support 21% 18% Contract Talent Solutions* Finance and Accounting 72% Q3 2023 Contract Talent Solutions Mix * Service revenues for contract talent solutions add to more than 100% becau
Slide 12: Return on Invested Capital
Q3 2023 INVESTOR PRESENTATION Return on Invested Capital Q3 2023 Versus 20-Year Average 24.5% 23.9% Superior ROIC is rooted in our ability to generate industry-leading profitability on a judiciously employed capital base, including growth achieved primarily by organic means. 20-Year Average* Q3 2023
Slide 13: Business Strategy
Q3 2023 INVESTOR PRESENTATION Business Strategy Value proposition: Only full-time jobs require full-time staff. • Clients value specialization in professional segments. • Middle-market talent solutions accounts are smaller, less price-sensitive; clients are demanding; quality is key. • Protiviti pro
Slide 14: Structural Shift to Remote/Hybrid Talent Models
Q3 2023 INVESTOR PRESENTATION Structural Shift to Remote/Hybrid Talent Models Increases competitive advantage through: • Brand strength and awareness • Global candidate database • Local candidate relationships • Proven AI-based matching technology 14 © 2023 Robert Half Inc. An Equal Opportunit y Emp
Slide 15: Balanced Suite of Consulting Solutions Driving Protiviti Growth
Q3 2023 INVESTOR PRESENTATION Balanced Suite of Consulting Solutions Driving Protiviti Growth Growing suite of consulting solutions Blended Protiviti/ Internal Talent Solutions Audit and Technology Risk and Business Performance Financial Consulting Compliance Improvement Advisory 15 © 2023 Robert Ha
Slide 16: Full Spectrum of Talent Solutions and Consulting Solutions
Q3 2023 INVESTOR PRESENTATION Full Spectrum of Talent Solutions and Consulting Solutions Specialized Talent Project Management Traditional Staffing Project Skills Solutions and Deliverables Finance and Finance and Accounting – Marketing Management Accounting – Protiviti Permanent and Creative Resour
Slide 17: Full Complement of Talent Solutions and Consulting Solutions
Q3 2023 INVESTOR PRESENTATION Full Complement of Talent Solutions and Consulting Solutions We offer a uniquely flexible talent pool and deep consulting capability through our talent solutions and Protiviti brands. Talent Solutions Blended Consulting We provide world-class Global and regional Talent
Slide 18: Marketing Approach
Q3 2023 INVESTOR PRESENTATION Marketing Approach Positioning Awareness Digital Media Positioned as quality leader through • Traditional media for broad • Specific target audiences advertising and PR activities band awareness • Search – paid and organic • Radio • Digital advertising and • Locally dir
Slide 19: Robert Half Digital Strategy
Q3 2023 INVESTOR PRESENTATION Robert Half Digital Strategy Winning the Digital Race • World-class customer and candidate experience, both online and through our award-winning mobile app • Data science, artificial intelligence and machine learning power our digital experiences • Integrated with tradi
Slide 20: Financial Performance
Financial Performance 20 © 2023 Robert Half Inc. An Equal Opportunit y Employer M/F/Disability/Vet erans.
Slide 21: Revenues of $1.56 Billion for Q3 2023
Q3 2023 INVESTOR PRESENTATION Revenues of $1.56 Billion for Q3 2023 21 © 2023 Robert Half Inc. An Equal Opportunit y Employer M/F/Disability/Vet erans.
Slide 22: Revenue History (2001 – Q3 2023)
Q3 2023 INVESTOR PRESENTATION Revenue History (2001 – Q3 2023) Quarterly Global Revenues (in Billions) $1.95 1.86 1.83 $1.85 1.81 1.77 $1.75 1.71 1.73 1.72 1.64 $1.65 1.58 1.55 1.56 1.54 $1.55 1.48 1.52 1.51 1.46 1.47 1.47 $1.45 1.40 1.40 1.34 1.34 1.35 $1.35 1.31 1.31 1.30 1.29 1.31 1.32 1.30 1.27
Slide 23: Contract Talent Solutions Revenue History (2001 – Q3 2023)
Q3 2023 INVESTOR PRESENTATION Contract Talent Solutions Revenue History (2001 – Q3 2023) Quarterly Global Revenues (in Billions) $1.25 1.17 1.16 1.14 $1.15 1.12 1.11 1.12 1.10 1.09 1.08 1.09 1.08 1.09 1.07 1.07 1.07 1.05 $1.05 1.01 1.01 1.03 1.02 1.02 1.00 1.00 1.00 1.00 0.99 0.98 0.98 0.97 0.97 0.9
Slide 24: Permanent Placement Talent Solutions Revenue History (2001 – Q3 2023)
Q3 2023 INVESTOR PRESENTATION Permanent Placement Talent Solutions Revenue History (2001 – Q3 2023) Quarterly Global Revenues (in Billions) $225 200 $200 187 182 $175 156 158 156 157 149 $150 141 144 140 135 135 132 130 128 126 126 $125 115 118 116 121 120 113 113 113 111 112 112 111 111 108 106 105
Slide 25: Protiviti Revenue History (Q2 2002 – Q3 2023)
Q3 2023 INVESTOR PRESENTATION Protiviti Revenue History (Q2 2002 – Q3 2023) Quarterly Global Revenues (in Billions) $550 511 501 499 495 497 494 491 $500 481 472 459 $450 397 $400 362 $350 321 305 299 294 284 $300 273 263 253 252 $250 234 217 214 209 208 202 199 201 195 196 197 $200 182 187 168 171
Slide 26: Robert Half Enterprise Results
Q3 2023 INVESTOR PRESENTATION Robert Half Enterprise Results Year-Over-Year Revenue Growth (As Adjusted*) 50% 43% 43% 40% 40% 39% 36% 34% 31% 31% 30% 25% 23% 22% 22% 20% 21% 20% 20% 20% 18% 17% 17% 17% 16% 17% 16% 15% 16% 15% 14% 15% 12% 13% 13% 12% 11% 11% 11% 9% 10% 8% 10% 10% 10% 10% 10% 8% 7% 9%
Slide 27: Talent Solutions Divisions – U.S. vs. International
Q3 2023 INVESTOR PRESENTATION Talent Solutions Divisions – U.S. vs. International Year-Over-Year Revenue Growth (As Adjusted*) ‒ ‒ U.S. — International: Restated in Constant Currency 50% 44% 40% 40% 36% 37% 38% 34% 32% 34% 31% 31% 30% 28% 28% 27% 31% 28% 30% 27% 25% 21% 25% 27% 27% 26% 25% 24% 21% 2
Slide 28: Contract Talent Solutions vs. Permanent Placement Talent Solutions
Q3 2023 INVESTOR PRESENTATION Contract Talent Solutions vs. Permanent Placement Talent Solutions Year-Over-Year Revenue Growth (As Adjusted*) ‒ ‒ Contract Talent Solutions — Permanent Placement Talent Solutions 115% 95% 78% 74% 75% 69% 59% 59% 67% 62% 55% 55% 48% 57% 55% 44% 43% 41% 40% 37% 33% 34%
Slide 29: Contract Talent Solutions Segment Income Margin
Q3 2023 INVESTOR PRESENTATION Contract Talent Solutions Segment Income Margin* 20-Year History 9 months ended 12.0% 12.0% 11.2% 10.9% 11.0% 10.2% 10.2% 10.5% 10.0% 9.8% 9.8% 9.8% 10.0% 9.5% 9.6% 9.3% 9.3% 8.9% 8.9% 9.0% 9.0% 8.3% 8.0% 8.0% 7.5% 6.9% 6.9% 6.8% 7.0% 6.0% 6.0% 5.0% 4.5% 4.2% 4.2% 4.0%
Slide 30: Permanent Placement Talent Solutions Segment Income Margin
Q3 2023 INVESTOR PRESENTATION Permanent Placement Talent Solutions Segment Income Margin* 20-Year History 9 months ended 25.0% 25.0% 23.0% 22.2% 22.5% 21.0% 20.3% 19.9% 20.2% 19.4% 20.0% 18.7% 19.1% 18.7% 19.0% 17.7% 17.7% 17.6% 16.7% 17.5% 17.0% 15.6% 15.7% 14.5% 14.1% 15.0% 15.0% 12.5% 13.0% 11.7%
Slide 31: Protiviti Segment Income Margin
Q3 2023 INVESTOR PRESENTATION Protiviti Segment Income Margin* 2004 to Date 20.0% 17.9% 18.1% 18.0% 16.5% 16.0% 13.7% 15.0% 9 months ended 14.0% 12.9% 13.4% 12.3% 13.5% 12.0% 11.2% 11.3% 12.0% 10.0% 10.3% 9.7% 9.7% 10.5% 10.0% 9.2% 8.1% 9.0% 8.0% 7.5% 6.0% 6.0% 3.8% 4.5% 4.0% 2.4% 3.0% 2.0% 1.3% 1.2
Slide 32: Cash Flow History
Q3 2023 INVESTOR PRESENTATION Cash Flow History Operating Cash Flow (in Millions) $700.0 9 months ended $600.0 $600.0 $522.2 $481.5 $500.0 $500.0 $400.0 $400.0 $300.0 $300.0 $200.0 $200.0 $100.0 $100.0 $0.0 $0.0 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Sep 30, Sep 30, 2022 2023 32 © 20
Slide 33: Strong Balance Sheet
Q3 2023 INVESTOR PRESENTATION Strong Balance Sheet As of September 30, 2023 $3.0B $729M Zero Total assets Cash Debt 33 © 2023 Robert Half Inc. An Equal Opportunit y Employer M/F/Disability/Vet erans.
Slide 34: Substantially All Free Cash Flow Returned to Shareholders
Q3 2023 INVESTOR PRESENTATION Substantially All Free Cash Flow Returned to Shareholders (in Millions) YTD 5 Years Dividends $155 47% $851 41% Share Repurchases $175 53% $1,218 59% Total $330 100% $2,069 100% Amounts shown are through September 30, 2023 34 © 2023 Robert Half Inc. An Equal Opportunit
Slide 35: Quarterly Dividend Increased Annually Since Inception
Q3 2023 INVESTOR PRESENTATION Quarterly Dividend Increased Annually Since Inception $0.06 Q2 2004 $0.48 11.4% Q3 2023 Compound Annual Growth Rate* * CAGR percentage calculated with declaration date of July 31, 2023 35 © 2023 Robert Half Inc. An Equal Opportunit y Employer M/F/Disability/Vet erans.
Slide 36: Share Count Reduction as of Q3 2023
Q3 2023 INVESTOR PRESENTATION Share Count Reduction as of Q3 2023 3 Years 5 Years 10 Years Shares Repurchased 7.5M 15.6M 31.4M Share Count Reduction 6.7% 12.9% 22.9% 36 © 2023 Robert Half Inc. An Equal Opportunit y Employer M/F/Disability/Vet erans.
Slide 37: © 2023 Robert Half Inc. An Equal Opportunit y Employer M/F/Disability/Vet erans.
37 © 2023 Robert Half Inc. An Equal Opportunit y Employer M/F/Disability/Vet erans.