Robert Half Inc. · NYSE:RHI
Robert Half — Investor Presentation (November 2022)
37 slides from Robert Half's investor presentation, Nov 17, 2022
Slide 1: Investor Slides
Investor Slides M. Keith Waddell November 17, 2022 President and CEO Robert Half
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 2022
Company Snapshot Q3 2022 Service Revenues: $1.8 Billion Net Income: $166 Million NYSE symbol: Headquarters: Full-time RHI Menlo Park, internal staff*: Return on Calif. 14,600 Invested Capital: 44.9% * As of Dec. 31, 2021. Includes approximately 5,700 employees engaged directly in Protiviti operation
Slide 4: Local Capabilities, Global Reach
Local Capabilities, Global Reach North America Asia-Pacific South America Middle East Europe 4 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 5: The Most Respected Name in Talent Solutions and Consulting
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, ©2022 FORTUNE Media IP Limited. All rights reserved. Used under licens
Slide 6: 74 Years of Changing Lives and Helping Companies Succeed
74 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 talent solutions Personnel Bob Half introduced and consulting Agency specialized solutions brands 6 ©
Slide 7: U.S. Accounts for Almost 80% of Talent Solutions Revenues
U.S. Accounts for Almost 80% of Talent Solutions Revenues Talent Solutions Revenue Mix — Global 21% 79% International United States Q3 2022 Talent Solutions Revenues 7 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 8: Largest Portion of International Talent Solutions Revenues From Continental Europe
Largest Portion of International Talent Solutions Revenues From Continental Europe Talent Solutions Revenue Mix — International Continental Europe 9% Asia-Pacific 4% 21% 79% International United States Canada 4% United Kingdom 2% Other 2% Q3 2022 Talent Solutions Revenues 8 © 2022 Robert Half Intern
Slide 9: Germany and Belgium Produce Largest European Revenues
Germany and Belgium Produce Largest European Revenues Talent Solutions Revenue Mix — Continental Europe Germany 4% Belgium 3% 9% Continental France 1% Other 1% Europe Q3 2022 Talent Solutions Revenues 9 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 10: Revenue Mix by Segment
Revenue Mix by Segment Q3 2022 Global Revenues 62% 28% Contract Talent Protiviti Solutions 10% Permanent Placement 10 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 11: Revenue Mix by Functional Specialization
Revenue Mix by Functional Specialization Q3 2022 Global Revenues 19% Technology 22% Administrative and Customer Support Contract Talent Solutions* 71% Finance and Accounting Q3 2022 Contract Talent Solutions Mix * Service revenues for contract talent solutions add to more than 100% because they incl
Slide 12: Business Strategy
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 provides consulting, project ma
Slide 13: Structural Shift to Remote/Hybrid Talent Models
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 13 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disabil
Slide 14: Balanced Suite of Consulting Solutions Driving Protiviti Growth
Balanced Suite of Consulting Solutions Driving Protiviti Growth Our suite of consulting solutions Internal Audit Business and Technology Risk and Performance Financial Consulting Compliance Improvement Advisory 14 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Vet
Slide 15: Full Spectrum of Talent Solutions and Consulting Solutions
Full Spectrum of Talent Solutions and Consulting Solutions Management Protiviti Marketing Resources Finance and Creative and Accounting – Technology Contract Talent Legal Administrative and Finance and Customer Support Accounting – Permanent Placement Specialized Project Project Management Talent So
Slide 16: Full Complement of Talent Solutions and Consulting Solutions
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 consulting and specialized talent solutions, under one
Slide 17: 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 18: Robert Half Digital Strategy
Robert Half Digital Strategy Winning the Digital Race • World-class customer and candidate experience, both online and through award-winning mobile app • Data science, artificial intelligence and machine learning power our digital experiences • Integrated with traditional recruiter capabilities Blen
Slide 19: Financial Performance
Financial Performance 19
Slide 20: Revenues of $1.8B for Q3 2022
$1.8B Revenues of for Q3 2022 20 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 21: Revenue History (2001 – Q3 2022)
Revenue History (2001 – Q3 2022) Quarterly Global Revenues (in Billions) $1.95 1.86 1.83 $1.85 1.81 1.77 $1.75 1.71 $1.65 1.58 1.55 1.54 $1.55 1.52 1.481.47 1.51 1.461.47 $1.45 1.40 1.40 1.341.34 1.35 $1.35 1.311.311.30 1.32 1.31 1.30 1.29 1.27 1.27 1.221.231.23 $1.25 1.18 1.221.22 1.21 1.19 1.16 1.
Slide 22: Contract Talent Solutions Revenue History (2001 – Q3 2022)
Contract Talent Solutions Revenue History (2001 – Q3 2022) Quarterly Global Revenues (in Billions)* $1.25 1.17 1.16 1.14 $1.15 1.10 1.12 1.11 1.12 1.091.081.091.08 1.09 1.07 1.05 $1.05 1.001.011.01 1.03 1.02 1.001.00 1.02 0.98 0.99 0.98 0.97 0.97 0.95 0.96 0.95 0.95 0.94 $0.95 0.90 0.93 0.91 0.91 0.
Slide 23: Permanent Placement Talent Solutions Revenue History (2001 – Q3 2022)
Permanent Placement Talent Solutions Revenue History (2001 – Q3 2022) Quarterly Global Revenues (in Millions) $225 200 $200 187 182 $175 156 158 $150 141 144 135 135 130 132 128 126 126 121 $125 115 118 116 113 120 113 113 111 112 112 111 111 108 106 105 103 102 102 104 99 97 98 $100 88 87 89 90 88
Slide 24: Protiviti Revenue History (Q2 2002 – Q3 2022)
Protiviti Revenue History (Q2 2002 – Q3 2022) Quarterly Global Revenues (in Millions) $550 511 501 497 495 $500 472 459 $450 397 $400 362 $350 321 305 299 294 $300 273 284 263 253 252 $250 234 217 214 209 208 202 199 201 195 196 197 $200 182 187 168 171 164 152 151 151 142 142 141 139 139 142 134 $1
Slide 25: Robert Half Enterprise Results
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% 21% 20% 20% 20% 20% 17% 17% 16% 17%18% 17% 16% 15% 16%15% 12% 14% 13%15% 13% 12% 11% 11% 10% 11% 8% 10% 9% 8% 10% 10% 10% 10% 7% 9% 6% 5% 5%6% 5% 6%5% 4%3% 5% 4% 3%
Slide 26: Talent Solutions Divisions — U.S. vs. International
Talent Solutions Divisions — U.S. vs. International Year-Over-Year Revenue Growth (As Adjusted*) ‒ ‒ U.S. 50% 44% — International: Restated in Constant Currency 40% 40% 36% 37% 38% 31%31% 34% 32% 34% 30% 28% 28% 27% 31% 28% 30% 27% 25% 25% 24% 21%21% 24% 27% 27% 26% 25% 23% 22% 21% 22% 22% 23% 22% 2
Slide 27: Contract Talent Solutions vs. Permanent Placement Talent Solutions
Contract Talent Solutions vs. Permanent Placement Talent Solutions Year-Over-Year Revenue Growth (As Adjusted*) 115% ‒ ‒ Contract Talent Solutions — Permanent Placement Talent Solutions 95% 78% 74% 75% 69% 59% 59% 67% 62% 55% 55% 48% 57% 55% 44% 43% 41% 40% 37% 33% 34% 28% 35% 31% 35% 23% 29% 25% 32
Slide 28: Contract Talent Solutions Segment Income Margin
Contract Talent Solutions Segment Income Margin* 20-Year History 12.0% 11.2% 11.0% 10.0% 10.2% 9.8% 10.2% 9.8% 9.8% 10.0% 9.5% 9.6% 9.3% 9.3% 8.9% 8.9% 9.0% 8.3% 8.0% 6.9% 6.9% 6.8% 7.0% 6.0% 5.0% 4.2% 4.2% 4.0% 2.7% 3.0% 2.2% 2.0% 1.0% 0.0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201
Slide 29: Permanent Placement Talent Solutions Segment Income Margin
Permanent Placement Talent Solutions Segment Income Margin* 20-Year History 25.0% 23.0% 22.2% 20.3% 19.9% 20.2% 21.0% 19.4% 19.1% 18.7% 18.7% 19.0% 17.7% 17.7% 16.7% 17.0% 15.6% 15.7% 15.0% 14.1% 12.5% 13.0% 11.7% 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
Slide 30: Protiviti Segment Income Margin
Protiviti Segment Income Margin* Inception to Date 20.0% 17.9% 18.1% 18.0% 16.5% 16.0% 14.0% 13.4% 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
Slide 31: Cash Flow History
Cash Flow History Operating Cash Flow (in Millions) 9 months ended Sept. 30 $600.0 $600.0 $481.5 $500.0 $500.0 $458.3 $400.0 $400.0 $300.0 $300.0 $200.0 $200.0 $100.0 $100.0 $0.0 $0.0 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2021 2022 31 © 2022 Robert Half International Inc. An Equal O
Slide 32: Strong Balance Sheet
Strong Balance Sheet As of Sept. 30, 2022 $2.9B Total assets $593M Cash Zero Debt 32
Slide 33: Substantially All Free Cash Flow Returned to Shareholders
Substantially All Free Cash Flow Returned to Shareholders (in Millions) YTD 5 Years Dividends $142 36% $752 37% Share Repurchases $258 64% $1,257 63% Total $400 100% $2,009 100% Amounts shown are through September 30, 2022 33 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Di
Slide 34: Quarterly Dividend Increased Annually Since Inception
Quarterly Dividend Increased Annually Since Inception $0.06 Q2 2004 $0.43 Q3 2022 11.4% Compound Annual Growth Rate* * CAGR percentage calculated with record date of August 25, 2022 34 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 35: Share Count Reduction as of Q3 2022
Share Count Reduction as of Q3 2022 3 Years 5 Years 10 Years Shares Repurchased 7.3M 15.6M 30.5M Share Count Reduction 6.3% 12.5% 21.9% 35 © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
Slide 36: Return on Invested Capital
Return on Invested Capital Q3 2022 Versus 20-Year Average 50.0% 44.9% Superior ROIC is rooted in 40.0% our ability to generate industry-leading profitability 30.0% on a judiciously employed 24.8% capital base, including 20.0% growth achieved primarily by organic means. 10.0% 0.0% 20-Year Average* Q3
Slide 37: © 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
© 2022 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.