Slide 1: 3rd quarter 2021 results
3rd quarter 2021 results. randstad reports record Q3 revenue, up 21% YoY, further improving profitability. Jacques van den Broek, CEO Henry Schirmer, CFO Randstad N.V. 21 October 2021
Slide 2: Disclaimer
disclaimer. Certain statements in this document concern prognoses about the changes in the business mix, changes in legislation (particularly future financial condition, risks, investment plans, and the results in relation to employment, staffing and tax laws), the role of of operations of Randstad
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 13 Q&A 19 appendices 20 © Randstad 2021 | 4
Slide 5: Performance moving forward
performance moving forward. © Randstad 2021 | 5
Slide 6: Q3 2021: strong performance, further improving profitability
Q3 2021: strong performance, further improving profitability highlights Q3 key financials resilience & agility continued market-leading growth revenue +21% YoY, +5% vs. ‘19 field investments paying off utilizing full strength of portfolio gross margin 19.9% L4Q ICR of 51% further capacity to drive p
Slide 7: Trend in early October indicates continued positive momentum
trend in early October indicates continued positive momentum. weekly staffing employees evolution week 26 - week 41 July August September October © Randstad 2021 | 7
Slide 8: North America and France
north america france continued market outperformance. positive momentum. ● revenue up 17% YoY (vs. Q3 ‘19: up 5%) ● revenue up 12% YoY (vs. Q3 ‘19: down 3%) ○ perm up 95% YoY (vs. Q3 ‘19: up 30%) ○ perm up 20% YoY (vs. Q3 ‘19: down 3%) ● US Staffing & Inhouse revenue up 19% YoY ● Staffing & Inhouse
Slide 9: The Netherlands and Germany
the netherlands germany market outperformance. gradually improving. ● revenue up 24% YoY (vs. Q3 ‘19: up 2%) ● revenue up 27% YoY (vs. Q3 ‘19: up 1%) ○ perm up 61% YoY (vs. Q3 ‘19: down 8%) ● Staffing & Inhouse up 36% YoY ● Staffing & Inhouse up 25% YoY ● Professionals down 5% YoY ● Professionals up
Slide 10: Belgium and Italy
belgium italy strengthening market leadership. continued strong performance. ● revenue up 14% YoY (vs. Q3 ‘19: up 1%) ● revenue up 34% YoY (vs. Q3 ‘19: up 21%) ○ Staffing & Inhouse up 16% YoY ● perm up 86% YoY (vs. Q3 ‘19: up 42%) ● EBITA margin at 5.7% vs. 5.9% LY ○ diversified portfolio contributi
Slide 11: Iberia and other European countries
iberia other european countries spain now above 2019 levels. continued improvement. ● spain revenue up 30% YoY (vs. Q3 ‘19: up 9%) ● UK revenue up 57% YoY (vs. Q3 ‘19: up 20%) ● portugal revenue down 2% YoY (vs. Q3 ‘19: down 15%) ● nordics up 17% YoY (vs. Q3 ‘19: down 1%) ● EBITA margin at 6.1% vs.
Slide 12: Rest of the world and global businesses
rest of the world global businesses revenue 18% above 2019 levels. strong performance in RPO. ● japan up 10% YoY (vs. Q3 ‘19: up 7%) ● global businesses up 33% YoY (vs. Q3 ‘19: up 11%) ● australia & new zealand up 35% YoY (vs. Q3 ‘19: up 28%) ● monster revenue up 1% YoY (vs. Q3 ‘19: down 29%) ● indi
Slide 13: Financial results & outlook
financial results & outlook. © Randstad 2021 | 13
Slide 14: Q3 2021: further improving profitability
Q3 2021: further improving profitability. Q3 performance Q3 key financials € million Q3 ’21 Q3 ’20 % org. revenue 6,275 5,174 21% gross profit 1,251 980 28% gross margin 19.9% 18.9% operating expenses* 953 781 22% • organic revenue up 21% YoY, group opex % 15.2% 15.1% revenue 5% above 2019 level EBI
Slide 15: Q3 2021: gross margin strong at 19.9%
Q3 2021: gross margin strong at 19.9%. Q3 gross margin development YoY Q3 highlights • temp margin +20bp YoY, annualization of COVID-19 effects • perm fees increased 74% YoY (+15% vs. Q3 2019) +60bp impact on gross margin • HRS/other +20bp YoY © Randstad 2021 | 15
Slide 16: Investing for profitable growth
investing for profitable growth. Q3 sequential opex bridge focus on future fit investments • opex of € 953m, 15.2% of revenue (opex ratio sequentially stable) • continued investments in growth and digitalization • further capacity to drive profitable growth © Randstad 2021 | 16
Slide 17: Sound balance sheet
sound balance sheet. Q3 2021 free cash flow sound balance sheet • Q3 FCF € 297m (vs. € 494m in Q3 2020) • net cash € 346m, LR excl. IFRS 16: -0.3 • strong YoY improvement in EBITDA • DSO 51.6, down vs. 52.1 in Q2 2021 • more than offset by the sale of CICE in Q3 • acquisition of Cella Inc. 2020 © Ra
Slide 18: Conclusion and outlook: gearing up for growth
conclusion and outlook: gearing up for growth. Q4 conclusion and outlook activity momentum • gross margin and opex both expected to be • September organic sales growth up 6% vs broadly in line sequentially. 2019. • aiming for an incremental conversion ratio of • volumes in early October indicate 40-
Slide 19: Questions & answers
questions & answers. © Randstad 2021 | 19
Slide 20: Appendices
appendices randstad. © Randstad 2021 | 20
Slide 21: Outlets by region
outlets by region. end of period Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 North America 1,199 1,204 1,156 1,158 1,130 France 645 641 648 642 643 the Netherlands 599 599 591 583 603 Germany 579 565 522 493 487 Belgium & Luxembourg 326 328 321 321 329 Italy 273 272 270 263 263 Iberia 381 389 384 379 38
Slide 22: Corporate staff by region
corporate staff by region. average Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 North America 6,820 6,410 6,010 5,860 5,660 France 4,540 4,370 4,310 4,290 4,090 the Netherlands 4,000 3,810 3,650 3,580 3,640 Germany 2,950 2,820 2,670 2,510 2,140 Belgium & Luxembourg 2,140 2,030 1,940 1,940 1,820 Italy 2,5
Slide 23: Staffing employees by region
staffing employees by region. average Q3 2021 Q3 2020 North America 89,700 81,700 France 85,100 70,300 the Netherlands 71,800 59,300 Germany 39,200 29,900 Belgium & Luxembourg 48,000 43,700 Italy 56,200 42,900 Iberia 63,600 53,800 Other European countries 65,300 52,700 Rest of the world 134,300 120,
Slide 24: eaese
eaese human forward WM