Slide 1: Preliminary Results for the Year Ended 30 June 2024
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2024 #CreateTomorrowTogether
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This presentation contains certain statements that number of risks, uncertainties and assumptions constitute a recommendation regarding the shares are neither reported financial results nor other and actual results or events may differ materially of the Company or any invitation
Slide 3: Agenda
AGENDA 1 OPERATIONAL & STRATEGIC REVIEW Dirk Hahn, Chief Executive 2 FINANCIAL REVIEW James Hilton, Chief Financial Officer 3 CURRENT TRADING James Hilton, Chief Financial Officer 4 STRATEGY UPDATE Dirk Hahn, Chief Executive 5 Q&A 3
Slide 4: Operational & Strategic Review
1. OPERATIONAL & STRATEGIC REVIEW Dirk Hahn Chief Executive
Slide 5: Challenging market conditions through FY24 led to lower fees and profit
INCREASINGLY CHALLENGING MARKET CONDITIONS THROUGH FY24 LED TO LOWER FEES AND PROFIT Fees Profit Cash • Group fees down 12% to £1,113.6m • Group operating profit‡ down 46% • Strong cash conversion** of 107% to £105.1m (down 43% WDA*) • Activity slowed through FY24, with H1 • Year-end net cash of £56
Slide 6: Decisive actions taken, c.£60m annualised cost saves delivered
DECISIVE ACTIONS TAKEN, WITH c.£60M* IN ANNUALISED COST SAVES DELIVERED IN FY24. ONGOING ACTIONS TO DELIVER A FURTHER c.£30M BY FY27 Back-office efficiency & Consultant capacity Operations overhead cost management • Consultant headcount down 18% • Detailed analysis by business line • Accelerated & o
Slide 7: Germany – Financial overview
H2 PERFORMANCE IMPACTED BY TOUGH ECONOMIC CONDITIONS AND CLIENT COST CONTROLS Germany – Financial overview Actual LFL FY24 share Year to 30 June 2024 2023 growth growth of Group Net fees down 7%; operating profit‡ down 27% WDA* (down 31% reported) £ Net fees £351.8m £382.0m (8)% (7)% 32% £ Operating
Slide 8: UK & Ireland – Financial overview
MARKETS SLOWED THROUGH THE YEAR, PARTICULARLY IN PERM, SIGNIFICANTLY IMPACTING PROFITS UK & Ireland – Financial overview Actual LFL FY24 share Net fees down 15%; operating profit‡ down 78% Year to 30 June 2024 2023 growth growth of Group • Activity and fees slowed through H1 as market conditions bec
Slide 9: Australia & New Zealand – Financial overview
MARKETS SLOWED SHARPLY THROUGH FY24. SIGNIFICANT ACTIONS TAKEN TO ALIGN CAPACITY TO MARKET CONDITIONS Australia & New Zealand – Financial overview Actual LFL FY24 share Year to 30 June 2024 2023 growth growth of Group Net fees down 20%; operating profit‡ down 61% £ Net fees £139.7m £188.4m (26)% (20
Slide 10: Rest of World – Financial overview
EMEA SLOWED THROUGH THE YEAR, NEGATIVELY IMPACTING OPERATING PROFIT. STABILITY AND IMPROVED PROFITABILITY IN H2 IN CHINA AND THE USA Rest of World (RoW) – Financial overview Actual LFL FY24 share Year to 30 June 2024 2023 growth growth of Group Net fees down 11%; operating profit‡ down 46% Temp fees
Slide 11: Financial Review
2. FINANCIAL REVIEW James Hilton Chief Financial Officer
Slide 12: Operating profit down 46%, strong balance sheet and cash generation
OPERATING PROFIT‡ DOWN 46%, STRONG BALANCE SHEET AND CASH GENERATION ‡ ‡ Net fees Operating profit Cash Conversion ** FY20 £996.2m FY20 £135.0m FY20 183% FY21 £918.1m FY21 £95.1m FY21 138% FY22 £1,189.4m FY22 £210.1m FY22 87% FY23 £1,294.6m FY23 £197.0m FY23 101% FY24 £1,113.6m FY24 £105.1m FY24 107
Slide 13: EPS down 53%: income statement
Basic EPS‡ (p) FY22 9.22 EPS‡ DOWN 53%. DRIVEN BY LOWER PROFITS, A HIGHER NET FINANCE FY23 8.59 CHARGE AND HIGHER TAX RATE FY24 4.03 Income Statement Year ended 30 June 2024 2023 Reported LFL* £m £m growth growth Turnover 6,949.1 7,583.3 (8)% (6)% Net fees 1,113.6 1,294.6 (14)% (12)% Operating profi
Slide 14: Fee decline driven by lower volumes and reduced Germany working hours
Drivers of FY24 fee growth (£m) FEE DECLINE DRIVEN BY LOWER VOLUMES AND REDUCED GERMANY WORKING HOURS IN H2 Review of Group Permanent and Temporary businesses* Permanent placement business Temporary placement business (17)% Net fee decrease (8)% Net fee decrease (25)% Volume decrease (7)% Volume dec
Slide 15: Decisive action to manage cost base through the year
DECISIVE ACTION TO MANAGE COST BASE THROUGH THE YEAR FY24 operating profit‡ bridge (£m) Actions taken to reduce our cost base Payroll (4.2) i) Consultant headcount reduced by 18% versus prior year and by 12% in H2. Non-consultant headcount reduced by 9% in FY24. Total headcount reductions of c.1,900
Slide 16: Underlying cost base reduced by c.£5m per period
UNDERLYING COST BASE REDUCED BY c.£5M PER PERIOD (c.£60M ANNUALISED), WITH FURTHER EFFICIENCY PROGRAMMES ONGOING Per period cost bridge (£m) Ongoing back-office efficiency programmes ongoing to target additional c.£30m per annum cost save by FY27 16
Slide 17: Exceptional cost of £80.0 million
EXCEPTIONAL COST OF £80.0 MILLION; OF WHICH £37.8 MILLION IS NON-CASH Year ended 30 June 2024 Operating Profit Profit/(loss) (£m) Net fees Tax EPS profit before tax after tax FY24 Pre-exceptional 1,113.6 105.1 94.7 (30.7) 64.0 4.03 Restructuring costs - (42.2) (42.2) 7.7 (34.5) (2.17) Intangible imp
Slide 18: Conversion rate of 9.4%, or 9.7% on WDA basis
CONVERSION RATE* OF 9.4%, OR 9.7% ON WDA** BASIS Conversion rate* FY23 H1 24 H2 24 FY24 Comments Conversion rate* of 20.1% on a WDA** basis; actions taken in H2 to restructure business Germany 26.2% 21.9% 16.4% 19.3% and reduce cost base We have acted decisively to reduce our cost base through headc
Slide 19: Finance charge and effective tax rate
HIGHER INTEREST CHARGE DRIVEN PRIMARILY BY NON-CASH ITEMS AND EFFECTIVE TAX RATE‡ (ETR) of 32.4% Finance charge and taxation Year ended 30 June 2024 2023 Finance charge £m £m IFRS 16 interest on lease liabilities (non-cash) (5.0) (4.2) Net interest charge on debt* (4.0) (1.7) IAS 19 pension charge (
Slide 20: Strong cash performance, with 107% cash conversion
Cash from operations* (£m) FY22 182.9 FY23 199.3 STRONG CASH PERFORMANCE, WITH 107% FY24 112.3 CASH CONVERSION Operating profit‡ to free cash flow bridge (FY24, £m) Uses of cash flow (FY24) Cash from operations* £112.3m (FY23: £199.3m) 107% cash conversion (FY23: 101%) Pensions £18.2m Capex £23.4m (
Slide 21: Debtor days and cash position
DEBTOR DAYS UP YoY, DUE TO GEOGRAPHIC MIX AND RESILIENCE IN ENTERPRISE CLIENTS, BUT REMAIN BELOW FY19. BAD DEBT AND OVERDUE AGEING AT HISTORIC LOW LEVELS Debtor days (Days Sales Outstanding) Cash position overview Closing net cash (£m) 39 NET CASH POSITION 410.6 FY24 ended with net cash of £56.8m 36
Slide 22: A strong balance sheet
A STRONG BALANCE SHEET Balance sheet analysis RETIREMENT BENEFITS 30 Jun 30 Jun £m 2024 2023 • Defined Benefit surplus of £19.4 million, versus a surplus of £25.7 million at June 23. The decrease in surplus was driven by lower expected returns from assets and a decrease in Goodwill & intangibles 220
Slide 23: Highly cash generative business model, clear cash flow priorities
HIGHLY CASH GENERATIVE BUSINESS MODEL, WITH CLEAR CASH FLOW PRIORITIES • Invest in headcount, training, systems Net capital expenditure was £23.4m with Fund Group investment and brand to support organic growth continued investments in technology and development • Assess potential M&A opportunities w
Slide 24: Financial summary
FINANCIAL SUMMARY Fees Profits Cash Net fees down 12% to £1,113.6m Operating profit‡ down 46% to £105.1m Strong cash generation; full-year • Group fees down 12%, as activity slowed • Down 43% WDA* impacted by tough dividend unchanged through the year conditions in key markets • Cash conversion** of
Slide 25: Current Trading
3. CURRENT TRADING James Hilton Chief Financial Officer
Slide 26: Near-term market conditions remain challenging, in line with expectations
NEAR-TERM MARKET CONDITIONS REMAIN CHALLENGING, BUT IN LINE WITH OUR EXPECTATIONS Current trading conditions and outlook July and August to date have been in line with our expectations. As normal, September is our largest trading month of the quarter, and it is currently too early to assess trends.
Slide 27: Strategy
4. STRATEGY Dirk Hahn Chief Executive
Slide 28: Future Hays: building the global leader in recruitment & workforce solutions
FUTURE HAYS BUILDING THE GLOBAL LEADER IN RECRUITMENT & WORKFORCE SOLUTIONS Delivering greater resilience & highly profitable growth through increased focus and enhanced operational rigour Why What How To reduce our overall reliance We will return to, and then Stronger market positions on the econom
Slide 29: Our five key strategic levers
OUR FIVE KEY STRATEGIC LEVERS 1. Enhancing our 2. Greater focus 3. Increased 4. Building 5. Increasing leading positions on higher skilled, focus on resilient stronger proportion of in the most in- higher paid and growing end relationships non-Perm demand job roles markets with our fees in our categ
Slide 30: Driving operational rigour globally
DRIVING OPERATIONAL RIGOUR GLOBALLY Key countries Focus countries Other decisive actions Germany • Management de-layering • Ensuring we have appropriate and • Implement the right operating scalable delivery models models in each business • Back-office efficiency - USA, Japan • Closing sub-scale busi
Slide 31: Conclusion: decisive actions to improve medium-term profitability
CONCLUSION: DECISIVE ACTIONS TAKEN TO SIGNIFICANTLY IMPROVE MEDIUM- TERM PROFITABILITY, AND INCREASE OUR RESILIENCE 1) Sharp focus on the most 2) Detailed business-line 3) Determined to deliver high attractive & skill-short markets analysis, enhanced operational drop through of incremental fees worl
Slide 32: Appendix 1: FY24 results supporting materials
APPENDIX 1 FY24 Results supporting materials #CreateTomorrowTogether
Slide 33: Like-for-like summary
LIKE-FOR-LIKE SUMMARY 2023 FX impact Organic 2024 LFL* Year ended 30 June £m £m £m £m growth Net fees Germany 382.0 (4.6) (25.6) 351.8 (7)% United Kingdom & Ireland 266.1 (0.2) (40.2) 225.7 (15)% Australia & New Zealand 188.4 (12.8) (35.9) 139.7 (20)% Rest of World 458.1 (11.1) (50.6) 396.4 (11)% Gr
Slide 34: Full-year and half-year growth analysis and conversion rate by division
FULL-YEAR AND HALF-YEAR GROWTH ANALYSIS AND CONVERSION RATE BY DIVISION Net fee growth* Q1 23 Q2 23 H1 23 Q3 23 Q4 23 H2 23 FY23 Q1 24 Q2 24 H1 24 Q3 24 Q4 24 H2 24 FY24 versus same period last year Germany 26% 22% 24% 23% 11% 14% 19% 7% 0% 3% (13)% (17)% (16)% (7)% United Kingdom & Ireland 11% 4% 7
Slide 35: Rest of World performance by country/market
REST OF WORLD PERFORMANCE BY COUNTRY/MARKET Net fee Consultant Rest of World net fees Country/Region Focus/Emerging Net fees (£m) No. of offices growth* Headcount France Focus 76.7 (6)% 20 488 USA Focus 47.8 (19)% 10 266 Switzerland Focus 36.6 (8)% 4 155 Benelux Emerging 34.1 (6)% 9 189 France Other
Slide 36: FX translation sensitivities
THE AUSTRALIAN DOLLAR AND EURO REMAIN SIGNIFICANT FX TRANSLATION SENSITIVITIES FOR THE GROUP Key FX rates and sensitivities Year ended 30 June 2024 Average Closing Euro (€) 1.1644 1.1798 Australian dollar ($) 1.9213 1.8935 Impact of a one cent change per annum Net fees Op profit Euro (€) +/- £4.6m +
Slide 37: Consultant headcount and office network
CONSULTANT HEADCOUNT AND OFFICE NETWORK Consultants Offices Half-on-half Year-on-year As at 30 As at 31 Change since As at 30 Change since As at 30 As at 30 Change since Jun 2024 Dec 2023 Dec 2023 Jun 2023 Jun 2023 Jun 2024 Jun 2023 Jun 2023 Germany 1,858 2,055 (10)% 2,044 (9)% 26 26 - United Kingdo
Slide 38: Trading days in major markets
TRADING DAYS IN MAJOR MARKETS Germany UK Australia Number of trading days H1 H2 Year H1 H2 Year H1 H2 Year Year ending 30 June 2023 128 123 251 129 124 253 129 123 252 Year ending 30 June 2024 126 123 249 127 125 252 128 125 253 Year ending 30 June 2025* 128 121 249 127 124 251 130 123 253 * Due to
Slide 39: Balanced business model: Temp and Perm exposure
BALANCED BUSINESS MODEL: SECTOR-LEADING EXPOSURE TO KEY TEMP/CONTRACTOR MARKETS, PERM-GEARED IN HIGH GROWTH AREAS FY24 net fees by geography and contract type 18% 35% 43% 61% 82% 65% 57% 39% Germany - 32% UK&I - 20% ANZ - 13% RoW - 35% Temp Perm PROPORTION OF GROUP NET FEES 39
Slide 40: Appendix 2: Our strategy, business model and investment case
APPENDIX 2 Our strategy, business model and investment case
Slide 41: A balanced portfolio
A BALANCED PORTFOLIO FY24 net fees by type* Public sector Full Technology 25% 17% outsourced 20% Germany 32% Professional 35% Perm 41% A&F 15% PSL 30% UK&I 20% Engineering 11% C&P 10% Private sector ANZ 13% 83% Multiple Office Support 5% Life Sciences 5% Technical 65% placements 30% Temp 59% RoW 35%
Slide 42: Technical specialisms add to our balance and resilience
TECHNICAL SPECIALISMS ADD TO OUR BALANCE AND RELATIVE RESILIENCE Attributes of Technical* vs Professional** net fees In FY24, Technical specialisms represented c.65% Group net fees Investment-led hires rather than 1. purely candidate-driven 49% 52% 54% 55% 58% 60% 60% 60% 61% 62% 62% 62% 63% 64% 63%
Slide 43: Worldwide platform and market positioning
OUR WORLDWIDE PLATFORM PROVIDES A PIPELINE OF FUTURE GROWTH OPPORTUNITIES AND LEADERSHIP IN ALL CORE MARKETS Hays’ market positioning* Market Leader Top 3 position Top 5 position Other TOP 3 Australia Malaysia Belgium New Zealand Brazil Poland France Portugal Germany Singapore Greater China Spain Hu
Slide 44: Appendix 3
HAYS version APPENDIX 3 NX
Slide 45: Financial archive – net fees, operating profit and consultant headcount
FINANCIAL ARCHIVE – NET FEES, OPERATING PROFIT AND CONSULTANT HEADCOUNT £ Net fees by division (£m) £ Operating profit‡ by division (£m) 1,295 249 1,189 243 1,130 1,114 1,073 212 42 210 996 41 197 955 458 918 417 181 27 368 40 810 339 396 66 135 36 291 340 22 69 312 188 63 17 52 32 105 230 199 196 4
Slide 46: Germany profile
Snapshot - #1 market position* GERMANY PROFILE – 32% OF GROUP NET FEES AND - Structurally developing market 65% OF GROUP PROFIT - Sectoral diversification Net fees by specialism (FY24) £ Historical headline net fees (£m) £ Historical headline operating profit‡ (£m) 382 10% 352 314 100 4% 300 91 4% 2
Slide 47: UK & Ireland profile
Snapshot - #1 market position* UK & IRELAND PROFILE – 20% OF GROUP NET FEES AND - Diverse sector exposure 6% OF GROUP PROFIT - Nationwide coverage Net fees by specialism (FY24) £ Historical headline net fees (£m) £ Historical headline operating profit‡ (£m) 52 47 49 272 272 264 263 266 46 20% 246 25
Slide 48: Australia & New Zealand profile
Snapshot - #1 market position* AUSTRALIA & NEW ZEALAND PROFILE – 13% OF GROUP NET FEES, - Diverse sector experience WITH AUSTRALIA REPRESENTING 92% OF DIVISIONAL NET FEES - Geographical diversification Net fees by specialism (FY24) £ Historical headline net fees (£m) £ Historical headline operating
Slide 49: Rest of World profile
Snapshot - Structural growth opportunities REST OF WORLD PROFILE – REPRESENTS 35% OF GROUP - Diverse sector exposure NET FEES, WITH FRANCE OUR LARGEST RoW MARKET - Geographical diversification Net fees by specialism (FY24) £ Historical headline net fees (£m) £ Historical headline operating profit‡ (
Slide 50: Financial archive: net fees and operating profit (local currency)
FINANCIAL ARCHIVE NET FEES AND OPERATING PROFIT (LOCAL CURRENCY) $ Australia & New Zealand - Historical net fees (AUDm) $ Australia & New Zealand - Historical operating profit (AUDm) ‡ 347 359 359 337 134 323 321 293 305 120 120 288 116 274 263 273 268 106 232 245 98 95 88 90 91 80 83 72 58 22 FY10
Slide 51: Financial archive: quarterly net fee growth
FINANCIAL ARCHIVE QUARTERLY NET FEE GROWTH % Germany % UK & Ireland 38% 39% 37% 32% 29% 48% 26% 45% 22% 23% 13% 15% 33% 11% 29% 6% 7% 22% 2% 0% 0% 11% (9%) (13%) 3% 3% 3% 4% (5%) (17%) (2%) (4%) (4%) (7%) (2%) (10%) (7%) (14%) (11%) (20%) (20%) (17%)(16%)(17%) (33%) (31%) (34%) (42%) Q1 Q2 Q3 Q4 Q1
Slide 52: Financial archive: quarterly net fee and consultant growth
FINANCIAL ARCHIVE QUARTERLY NET FEE AND CONSULTANT GROWTH % Temp Fees % Perm Fees 67% 65% 61% 48% 24% 26% 22% 21% 16% 14% 31% 16% 8% 9% 5% 9% 11% 11% 9% 7% 7% 4% 0% 0% 0% 0% 0% (2%) (5%) (6%) (12%)(12%) (10%) (9%) (3%) (15%)(17%)(18%) (5%) (7%) (20%) (13%) (26%) (13%) (35%) (26%) (25%) (44%) Q1 Q2 Q
Slide 53: Further information
FURTHER INFORMATION David Phillips Head of Investor Relations & ESG Rob Maguire Investor Relations & ESG Manager ir@hays.com +44 (0)333 010 7122 For more information about the Group: haysplc.com/investors