Robert Half Inc. · NYSE:RHI
Robert Half — Investor Presentation (May 2021)
37 slides from Robert Half's investor presentation, May 20, 2021
Slide 1: Investor Presentation
Investor Presentation May 20, 2021
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
Company Snapshot 2020 Service Revenues: $5.1 Billion Net Income: $306 Million NYSE symbol: Headquarters: Full-time internal RHI Menlo Park, staff in 2020*: Return on Calif. 13,000 Invested Capital: 26% * Includes approximately 5,000 employees engaged directly in Protiviti operations 3 © 2021 Robert
Slide 4: Local Capabilities, Global Reach
Local Capabilities, The Most Respected Name Global Reach in Staffing and Consulting North America South America Europe Middle East Asia-Pacific 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.
Slide 5: 73 Years of Changing Lives and Helping Companies Succeed
73 Years of Changing Lives and Helping Companies Succeed 1948 1986 1987-2001 2002 Today Originated as Acquired Expanded Launched Offer full spectrum Robert Half business from globally; Protiviti of staffing and Personnel Bob Half introduced consulting Agency specialized solutions brands 5 © 2021 Rob
Slide 6: U.S. Accounts for More Than Three-Quarters of Staffing Revenues
U.S. Accounts for More Than Three-Quarters of Staffing Revenues Staffing Revenue Mix — Global 24% 76% International United States Q1 2021 Staffing Revenues 6 © 2021 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 7: Majority of International Staffing Revenues from Continental Europe
Majority of International Staffing Revenues from Continental Europe Staffing Revenue Mix — International Other 1% United Kingdom 2% Asia-Pacific 4% Continental Europe 13% 24% 76% International United States Canada 4% Q1 2021 Staffing Revenues 7 © 2021 Robert Half International Inc. An Equal Opportun
Slide 8: Germany and Belgium Largest European Markets
Germany and Belgium Largest European Markets Staffing Revenue Mix — Continental Europe Germany 6% Belgium 4% 13% Continental France 2% Other 1% Europe Q1 2021 Staffing Revenues 8 © 2021 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 9: Overall Revenue Mix ― Business Segment
Overall Revenue Mix ― Business Segment Q1 2021 Global Revenues Accountemps 30% OfficeTeam 16% 28% 64% Protiviti Robert Half Management Temporary and 13% Resources Consultant Staffing* Robert Half Technology 12% 8% Permanent Placement Q1 2021 Segment Mix * Service revenues for Accountemps, OfficeTeam
Slide 10: Return on Invested Capital
Return on Invested Capital Q1 2021 Versus 20-Year Average 40.0% 36.8% 30.0% Superior ROIC is rooted in 22.8% our ability to generate 20.0% industry-leading profitability on a judiciously employed capital base, including 10.0% growth achieved primarily by organic means. 0.0% 20-Year Average* Q1 2021
Slide 11: Business Strategy
Business Strategy • Value proposition: Only full-time jobs require full-time staff. • Clients value specialization in professional segments. • Middle-market staffing accounts are smaller, less price-sensitive; clients are demanding; quality is key. • Protiviti provides consulting, project management
Slide 12: Market Opportunity — Staffing Services
Market Opportunity — Staffing Services Customers experience excellence, whether online, through our traditional Annual global services, or a blend of the two. staffing industry revenues: nearly $500B USD* Blended staffing and consulting solutions with Protiviti make us unique in our industry. SMBs (
Slide 13: Expansion of Service Offerings Driving Protiviti Growth
Expansion of Service Offerings Driving Protiviti Growth Growing suite of consulting services Financial Technology Operations, services — privacy, data, regulatory security and analytics, risk and controls governance Protiviti/staffing compliance blended solutions Solid base of recurring internal aud
Slide 14: Full Spectrum of Staffing and Consulting Services
Full Spectrum of Staffing and Consulting Services Specialized Project Project Management Staffing Skills and Deliverables Recruiting 14 © 2021 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 15: Full Complement of Staffing and Consulting Solutions
Full Complement of Staffing and Consulting Solutions We offer a uniquely flexible talent pool and deep consulting capability through our staffing and Protiviti brands. Staffing Blended Consulting We provide world- Global and regional Staffing competitors lack class consulting and consulting firms th
Slide 16: Marketing Approach
Marketing Approach Positioned as Traditional media for Digital media for specific quality leader broad brand awareness target audiences through advertising • Radio • Search — paid and organic and PR activities • Locally directed advertising • Digital advertising and retargeting and programs • Email/
Slide 17: Robert Half Digital Strategy
Robert Half Digital Strategy Winning the Digital Race World-class digital customer experience, both online and mobile. Data science, artificial intelligence and machine learning power our digital customer experience. Robert Half Direct hiring platform gives clients self-service access to our proprie
Slide 18: Robert Half Digital Strategy
Robert Half Digital Strategy Use proprietary data for competitive advantage Provide AI-based match recommendations to our clients and candidates Augment staff productivity and efficiency with global CRM platform and cloud solutions Blend of high-tech and high-touch 18 © 2021 Robert Half Internationa
Slide 19: Hiring Remains Labor Intensive
Hiring Remains Labor Intensive Robert Half puts equal emphasis on digital innovation and personalized service. In-demand Candidate Legal compliance candidates availability is significant have multiple is fluid and (e.g., wage and hour, offers/counteroffers. ever-changing. payroll taxes, I-9). 19 © 2
Slide 20: Financial Performance
Financial Performance 20
Slide 21: Revenues of $5.1B in 2020
Revenues of $5.1B in 2020 21 © 2021 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 22: Revenue History (2000 – Q1 2021)
Revenue History (2000 – Q1 2021) Quarterly Global Revenues (in Billions) $1.65 1.55 1.54 $1.55 1.52 1.51 1.48 1.47 1.461.47 $1.45 1.40 1.40 1.341.34 1.35 $1.35 1.311.311.30 1.29 1.31 1.32 1.30 1.27 1.27 $1.25 1.221.231.23 1.221.22 1.21 1.19 1.18 1.16 1.17 1.15 $1.15 1.10 1.11 1.081.08 1.06 1.061.08
Slide 23: Robert Half Enterprise Results
Robert Half Enterprise Results Year-Over-Year Revenue Growth (As Adjusted*) 50% 43% 39% 40% 36% 34% 34% 31% 30% 27% 27% 25% 23% 22% 22% 21% 18% 20% 20% 20% 17% 17% 16% 17% 17% 17% 16% 16% 15% 15% 15% 13% 13% 12% 14% 12% 11% 11% 11% 10% 9% 10% 10% 10% 10% 8% 8% 7% 9% 6% 6% 5% 6% 5% 5% 5% 3% 2% 4%3%3%
Slide 24: Staffing Divisions — U.S. vs. International
Staffing Divisions — U.S. vs. International Year-Over-Year Revenue Growth (As Adjusted*) 50% ‒ ‒ U.S. 44% — International: Restated in Constant Currency 40% 36% 36% 31%31% 30% 28% 28% 27% 30% 26% 27% 24% 25% 21% 25% 24% 27% 27% 26% 23% 21% 22% 21% 22% 22% 23% 22% 22% 20% 20% 20% 23% 20% 19% 19% 18%1
Slide 25: Temporary and Consultant vs. Permanent Placement Staffing
Temporary and Consultant vs. Permanent Placement Staffing Year-Over-Year Revenue Growth (As Adjusted*) ‒ ‒ Temporary and Consultant Staffing 75% 67% 62% — Permanent Placement 59% 55% 58% 55% 55% 48% 57% 59% 50% 41% 40% 44% 37% 35% 34% 32% 31% 32% 35% 28% 29% 29% 33% 28% 25% 25% 24% 23% 23% 21% 29% 2
Slide 26: Temporary and Consultant Staffing Revenues
Temporary and Consultant Staffing Revenues (in Billions) $5.0 $4.4 $4.3 $4.0 $4.0 $3.9 $4.0 $3.7 $3.6 $3.6 $3.5 $3.4 $3.3 $3.1 $3.1 $3.0 $2.6 $2.6 $2.5 $2.3 $2.2 $2.0 $1.8 $1.7 $1.0 $0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 26 © 2021 Rob
Slide 27: Permanent Placement Staffing Revenues
Permanent Placement Staffing Revenues (in Millions) $600 $533 $512 $500 $444 $439 $427 $421 $419 $395 $400 $370 $348 $336 $334 $302 $300 $219 $221 $189 $182 $200 $136 $100 $95 $100 $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 27 © 2021 Robert
Slide 28: Protiviti Revenues
Protiviti Revenues (in Millions) $1,400 $1,300 $1,262 $1,200 $1,129 $1,100 $1,000 $958 $900 $817 $804 $800 $743 $700 $624 $600 $543 $552 $547 $528 $479 $453 $500 $424 $384 $386 $400 $352 $300 $200 $100 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 28 © 2021
Slide 29: Temporary and Consultant Staffing Segment Income
Temporary and Consultant Staffing Segment Income* 21-Year History 11.0% 10.0% 10.2% 9.8% 10.2% 9.8% 10.0% 9.5% 9.5% 9.6% 9.3% 9.3% 8.9% 8.9% 9.0% 8.3% 8.0% 7.6% 6.9% 6.9% 6.8% 7.0% 6.0% 5.0% 4.2% 4.2% 4.0% 3.0% 2.7% 2.2% 2.0% 1.0% 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 30: Permanent Placement Segment Income
Permanent Placement Segment Income* 20-Year History 25.0% 23.0% 22.2% 21.0% 20.3% 19.9% 20.2% 19.4% 19.1% 19.0% 17.7% 17.7% 16.7% 17.0% 15.6% 15.7% 15.0% 14.1% 12.5% 13.0% 11.7% 10.8% 11.0% 9.0% 7.9% 7.8% 7.0% 5.0% 2.7% 3.0% 1.0% -1.0% -3.0% -5.0% -3.8% -7.0% -6.8% -9.0% 2001 2002 2003 2004 2005 200
Slide 31: Protiviti Segment Income
Protiviti Segment Income* Inception to Date 20.0% 17.9% 18.1% 18.0% 16.0% 14.0% 12.9% 12.3% 12.0% 11.2% 11.3% 10.0% 10.3% 9.7% 9.7% 10.0% 8.1% 8.0% 6.0% 3.8% 4.0% 2.4% 2.0% 1.3% 1.2% 0.0% -2.0% -4.0% -2.8% -6.0% -8.0% -8.0% -10.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 32: Cash Flow History
Cash Flow History Operating Cash Flow (in Millions) $596.5M $600.0 $500.0 $400.0 $300.0 $200.0 $100.0 $0.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 32 © 2021 Robert Half International Inc. An Equal Opportunity Employer M/F/Disabili
Slide 33: Strong Balance Sheet
Strong Balance Sheet As of March 31, 2021 $2.6B Total assets $498M Cash Virtually zero debt 33
Slide 34: Significant Free Cash Flow Returned to Shareholders
Significant Free Cash Flow Returned to Shareholders (in Millions) 1 Year 5 Years Dividends $156 53% $673 38% Share Repurchases $138 47% $1,100 62% Total $294 100% $1,773 100% Amounts shown are through Dec. 31, 2020 34 © 2021 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability
Slide 35: Quarterly Dividend Increased Annually Since Inception
Quarterly Dividend Increased Annually Since Inception $0.06 Q2 2004 $0.38 Q1 2021 11.5% Compound Annual Growth Rate* * CAGR percentage calculated with record date of May 25, 2021 35 © 2021 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 36: Share Count Reduction as of Q1 2021
Share Count Reduction as of Q1 2021 3 Years 5 Years 10 Years Shares Repurchased 10.4M 17.6M 31.6M Share Count Reduction 8.5% 13.6% 22.0% 36 © 2021 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 37: Robert Half
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