Slide 1: 3rd quarter 2019 results
3rd quarter 2019 results. sound margin performance and excellent cash conversion Jacques van den Broek, CEO Henry Schirmer, CFO Randstad N.V. 22 October 2019
Slide 2: Disclaimer
disclaimer. Certain statements in this document concern prognoses about the business mix, changes in legislation (particularly in relation to future financial condition, risks, investment plans and the results of employment, Staffing and tax laws), the role of industry operations of Randstad N.V. an
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 12 Q&A 18 appendices 19 © Randstad 2019 | 4
Slide 5: Performance moving forward
performance moving forward. © Randstad 2019 | 5
Slide 6: Q3 2019 robust margins in uncertain macro environment
Q3 2019 robust margins in uncertain macro environment. key financials* highlights IT/digital strategy organic growth -2.5% market share gains digital strategy progressing gross margin +30bp YoY ROW up 7%, Profs up 2% appointment CDO in EB EBITA € 298m, 5.0% margin FCF € 468m high customer adoption W
Slide 7: North America and France
north america france industrial slowdown, profs growing. ahead of market at strong margins. ● revenue down 1% (Q2: +1%) ● revenue down 1% (Q2: down 2%) ○ perm up 4% (Q2: +6%) ○ perm up 4% (Q2: +7%) ● US Staffing & Inhouse revenue down 4% (Q2: flat) ● Staffing & Inhouse down 4% (Q2: down 5%) ● US Pro
Slide 8: The Netherlands and Germany
the netherlands germany impacted by automotive slowdown. ongoing challenging conditions. ● revenue down 5% (Q2: down 3%) ● revenue down 14% (Q2: down 15%) ○ perm down 18% (Q2: +2%) ● Staffing & Inhouse down 17% (Q2: down 19%) ● Staffing & Inhouse down 6% (Q2: down 4%) ● Professionals down 6% (Q2: do
Slide 9: Belgium and Italy
belgium italy robust profitability. ahead of market. ● revenue down 4% (Q2: down 4%) ● revenue down 2% (Q2: stable) ○ impacted by automotive weakness ○ market outperformance ○ sound perm growth at 21% (Q2: +11%) ● EBITA margin at 6.2% vs. 6.1% LY ○ diversified portfolio paying off ● EBITA margin at
Slide 10: Iberia and other European countries
iberia other european countries profitable growth continues. mixed trends. ● spain revenue up 1% (Q2: +3%) ● UK revenue down 2% (Q2: stable) ○ strong pricing discipline and execution ● nordics down 7% (Q2: down 7%) ● portugal revenue down 8% (Q2: down 3%) ● switzerland growth stable (Q2: +1%) ● EBIT
Slide 11: Rest of the world and global businesses
rest of the world global businesses sound growth and profitability. strategic investments. ● japan growth up 8% (Q2: +9%) ● global businesses down 1% (Q2: down 2%) ● australia & new zealand down 1% (Q2: +2%) ● monster stable revenue decline versus Q2 ○ restructuring announced ● india up 19% (Q2: +19
Slide 12: Financial results & outlook
financial results & outlook. © Randstad 2019 | 12
Slide 13: Q3 2019 sound operational performance
Q3 2019 sound operational performance. Q3 performance Q3 key financials € million Q3 ’19 Q3 ’18 % org. revenue 6,006 6,006 (2)% gross profit 1,204 1,191 (2)% gross margin 20.1% 19.8% • organic revenue down 2.5% operating expenses* 906 886 1% opex % 15.1% 14.8% EBITA* 298 305 (4)% • EBITA margin 5.0%
Slide 14: Q3 2019 continued sound pricing drives gross margin
Q3 2019 continued sound pricing drives gross margin. Q3 gross margin development YoY Q3 highlights • temp margin impact + 30bp • perm fees declined 1% YoY, no impact on gross margin • HRS/other impact stable © Randstad 2019 | 14
Slide 15: Balanced cost management in Q3 2019
balanced cost management in Q3 2019. Q3 sequential opex bridge Q3 cost management • organic opex up 1% YoY, personnel expenses -1% YoY • selective investments in growth areas, digital/IT spend up • on track to deliver cost savings program © Randstad 2019 | 15
Slide 16: Strong FCF generation in Q3 2019
strong FCF generation in Q3 2019. improved free cash flow YoY strong balance sheet • net debt € 1,595m (down € 479m vs. LY) • Q3 FCF € 468m (+ € 248m vs. Q3 2018) including lease liabilities due to IFRS 16 • strong working capital inflow, confirming • leverage ratio pre IFRS 16: 0.8 (Q3 2018: the co
Slide 17: Conclusion and outlook: navigating through uncertain times
conclusion and outlook: navigating through uncertain times. Q3 conclusion and outlook September exit rate NAM FR • September trend in line with Q3 NL GER • Q4 2019 gross margin slightly lower BEL sequentially, up YoY IBE IT • Q4 2019 operating expenses broadly RoE stable sequentially low single-digi
Slide 18: Questions & answers
questions & answers. © Randstad 2019 | 18
Slide 19: Appendices
appendices randstad. © Randstad 2019 | 19
Slide 20: Outlets by region
outlets by region. end of period Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 North America 1,152 1,123 1,138 1,142 1,119 France 635 631 628 625 645 the Netherlands 661 656 660 658 664 Germany 577 580 589 601 601 Belgium & Luxembourg 334 333 329 326 322 Italy 259 262 264 265 264 Iberia 376 375 377 371 36
Slide 21: Corporate staff by region
corporate staff by region. average Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 North America 5,660 5,600 5,680 5,840 5,840 France 4,640 4,580 4,540 4,540 4,590 the Netherlands 4,180 4,240 4,270 4,370 4,380 Germany 2,680 2,870 2,880 3,080 3,180 Belgium & Luxembourg 2,120 2,090 2,050 2,130 2,230 Italy 2,2
Slide 22: Staffing employees by region
staffing employees by region. average Q3 2019 Q3 2018 North America 93,000 99,700 France 89,800 86,000 the Netherlands 74,600 81,700 Germany 39,800 47,500 Belgium & Luxembourg 49,800 51,900 Italy 50,400 51,100 Iberia 66,700 71,700 Other European countries 59,600 65,000 Rest of the world 118,900 109,
Slide 23: eaese
eaese human forward WM