Slide 1: 1st quarter 2017 results
1st quarter 2017 results Sound organic growth continues Jacques van den Broek, CEO Robert Jan van de Kraats, CFO Randstad Holding nv April 25, 2017
Slide 2: disclaimer & definitions
disclaimer & definitions Certain statements in this document concern prognoses about the future financial condition, risks, investment plans and the results of operations of Randstad Holding and its operating companies, as well as certain plans and objectives. Obviously, such prognoses involve risks
Slide 3: agenda
agenda performance financial results & outlook Q&A appendices
Slide 4: performance
performance 4 April 25, 2017 Q1 2017 Results
Slide 5: Q1 2017: sound organic growth continues
Q1 2017: sound organic growth continues Revenue of € 5,557 million; Topline grew 8% in Perm growth accelerating organic growth 6.4%; Europe, 1% in North to 11% (Q4 2016: +4%), gross profit up 6.4% America and 9% in Rest of driven by all regions; NAM the world 6% (Q4 2016: down 3%) Gross margin 20.4%
Slide 6: Q1 17: sound organic growth continues
Q1 17: sound organic growth continues € million Q1 ’17 Q1 ’16 % Org. L4Q ‘17 L4Q ‘16 % Org. revenue 5,557 4,702 6% 21,539 19,489 5% gross profit 1,134 865 6% 4,203 3,645 4% gross margin 20.4% 18.4% 19.5% 18.7% operating expenses* 925 697 7% 3,216 2,767 4% opex % 16.7% 14.8% 14.9% 14.2% EBITA* 209 16
Slide 7: regional split: strong momentum in Europe
regional split: strong momentum in Europe YoY Randstad organic growth development 15% 5% -5% -15% Group Europe North America Rest of the world Europe grew 8% (vs. +8% in Q4) North America grew 1% (vs. +1% Q4) Rest of the world increased 9% (vs. +10% in Q4) Group grew 6% (vs. +7% in Q4) 7 April 25, 2
Slide 8: North America: topline picking up slightly
North America: topline picking up slightly North America – historical organic growth 8% 3% revenue up 1% (Q4: +1%) 6% - Like-for-like Q1 growth is 1% above Q4 2% 4% - Perm up 6% (Q4: down 3%) 1% 2% 0% 0% US Staffing & Inhouse, revenue growth Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 2% (Q4: +2%) EBITA
Slide 9: the Netherlands: solid EBITA margin performance
the Netherlands: solid EBITA margin performance the Netherlands - historical organic growth 8% 10% revenue at +1% (Q4: +2%) 6% 8% - pricing pressure continues 6% 4% - SME growth outpacing large accounts 4% 2% 2% 0% 0% perm up 45% (Q4: +13%) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 EBITA % organic gro
Slide 10: France: robust growth continues
France: robust growth continues France - historical organic growth 8% 12% 10% 6% 8% revenue up 9% YoY (Q4: +10%) 4% 6% 4% - combined Staffing & Inhouse at +8% YoY 2% 2% - Professionals accelerated 17% (Q4: +17%) 0% 0% Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 - perm grew 37%, fueled by tech (Q4: +21%)
Slide 11: Germany: focus on SME paying off
Germany: focus on SME paying off Germany - historical organic growth 8% 12% 10% revenue +9% YoY (Q4: +10%) 6% 8% - SME continues to outpace large clients 4% 6% 4% 2% 2% Staffing/Inhouse +8%, Professionals 0% 0% +11% Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 EBITA % organic growth % EBITA margin at 4.1
Slide 12: Belgium: topline growth acceleration
Belgium: topline growth acceleration Belgium - historical organic growth 10% 10% revenue +10% (Q4: +5%) 8% 8% - Staffing/Inhouse up 10% (Q4: +5%) 6% 6% - Professionals up 11% (Q4: +10%) 4% 4% 2% 2% 0% 0% EBITA margin at 5.7% vs. 5.6% LY -2% Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 -2% -4% EBITA % org
Slide 13: Iberia: strong growth on higher margins
Iberia: strong growth on higher margins Iberia - historical organic growth 12% 12% 10% 10% Iberia revenue up 8% (Q4: +10%) 8% 8% 6% 6% 4% 4% Spain 2% 2% 0% 0% - revenue growth 9% (Q4: +12%) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 - Staffing/Inhouse up 9% EBITA margin organic growth % - perm up 24% (
Slide 14: Italy: high revenue growth continues
Italy: high revenue growth continues Italy - historical organic growth 8% 30% EBITA % organic growth % 6% 20% Italy revenue +23% (Q4: +26%) 4% - Obiettivo Lavoro performing well 10% 2% - Strong growth driven by Inhouse: +46% 0% 0% EBITA margin at 5.0% vs. 4.8% LY Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2
Slide 15: Other European countries
Other European countries overall revenue growth at 5% UK - organic revenue growth down by 4% (Q4: down 3%) Switzerland - growth at 21% (Q4: +23%) Poland - growth at 9% (Q4: +14%) Nordics - growth at 4% (Q4: down 1%) - Proffice integration continues to be on track EBITA margin at 2.6% vs. 2.2% LY 15
Slide 16: Rest of the world
Rest of the world overall revenue growth up 9% (Q4: +10%) Japan, growth up 7% YoY (Q4: +5%) - perm grew 28% (Q4: +8%) - Careo continues to perform well China growing 17% (Q4: +28%) Australia & New Zealand grew 12% (Q4:+12%) overall Asia, growth at 6% (Q4: +6%) Latin America, up 12% (Q4: +20%) EBITA
Slide 17: M&A activity fits our strategic agenda
M&A activity fits our strategic agenda aim to be top 3 in local strengthen Professionals accelerate progress towards EVA staffing market staffing business digital strategy after 3 years underway in line ahead ahead underway underway underway 17 April 25, 2017 Q1 2017 Results
Slide 18: financial results & outlook
financial results & outlook 18 April 25, 2017 Q1 2017 Results
Slide 19: income statement Q1 2017
income statement Q1 2017 € million Q1 ’17 Q1 ’16 % L4Q ’17 L4Q ’16 % Org. Org. revenue 5,557 4,702 6% 21,539 19,489 5% gross profit 1,134 865 6% 4,203 3,645 4% gross margin 20.4% 18.4% 19.5% 18.7% operating expenses* 925 697 7% 3,216 2,767 4% opex margin 16.7% 14.8% 14.9% 14.2% EBITA* 209 169 16% 98
Slide 20: performance by revenue category
performance by revenue category Staffing Q1 2017 Q1 2016 *% Professionals in Q1 2017 Q1 2016 *% in € M organic €M organic revenue 2,886 2,560 4% revenue 1,178 989 3% EBITA 116 96 18% EBITA 63 47 8% EBITA margin 4.0% 3.7% EBITA margin 5.3% 4.8% Inhouse Q1 2017 Q1 2016 *% Global Q1 2017 Q1 2016 *% Ser
Slide 21: Q1 2017 gross margin bridge
Q1 2017 gross margin bridge temp margin -/- 30bp impact perm fees grew 11% YoY organically HRS/others added 230bps, including the effect of Monster 21 April 25, 2017 Q1 2017 Results
Slide 22: Q1 2017 operating expenses bridge
Q1 2017 operating expenses bridge OPEX increased € 9M organically (sequentially) Unfavorable sequential FX impact € 6M M&A relates to acquisition of Monster, Ausy, and BMC 22 April 25, 2017 Q1 2017 Results
Slide 23: net debt at € 1,129M
net debt at € 1,129M leverage ratio at 1.1 € million Q1 2017 Q1 2016 goodwill and acquisition-related intangible assets 3,693 2,736 operating working capital (OWC) 752 633 net tax assets 449 498 all other assets and liabilities* 121 13 invested capital 5,016 3,880 total equity 3,887 3,584 net debt 1
Slide 24: Q1 2017 free cash flow
Q1 2017 free cash flow € million Q1 ’17 Q1 ’16 L4Q ’17 L4Q ’16 EBITDA 212 182 997 918 change in OWC 4 -/- 28 -/- 138 -/- 91 income taxes -/- 49 -/- 54 -/- 155 -/- 123 provisions & employee benefit obl. -/- 1 -/- 7 6 -/- 39 net capital expenditures -/- 21 -/- 14 -/- 101 -/- 64 other items -/- 26 -/-
Slide 25: outlook
outlook organic revenue growth was 6.4% in Q1 Geo Exit Rate -March exit rate and volumes in early April indicate a continuation of Q1 trend NAM gross margin in Q2 is expected to be slightly up NL sequentially driven by seasonality FR for Q2 we expect a moderate increase in underlying GER operating e
Slide 26: appendices
appendices April 25, 2017 Q1 2017 Results
Slide 27: outlets* by region
outlets* by region end of period Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 North America 1,094 1,149 1,134 1,135 1,129 the Netherlands 650 640 655 649 661 France 678 682 680 681 700 Germany 563 557 565 558 546 Belgium & Luxembourg 317 310 308 303 310 Iberia 349 339 339 332 331 Italy 290 313 311 201 19
Slide 28: corporate staff by region
corporate staff by region average Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 North America 5,740 6,660 6,530 6,490 6,440 the Netherlands 4,160 4,290 4,380 4,320 4,270 France 3,790 3,650 3,580 3,530 3,500 Germany 2,640 2,710 2,700 2,640 2,600 Belgium & Luxembourg 1,950 1,990 2,010 1,900 1,840 Iberia 1,9
Slide 29: staffing employees by region
staffing employees by region average Q1 2017 *Q1 2016 North America 98,100 104,100 the Netherlands 80,700 76,200 France 79,400 71,100 Germany 46,800 43,100 Belgium & Luxembourg 40,100 36,200 Iberia 62,800 58,100 Italy 41,200 19,700 Other European countries* 63,400 60,600 Rest of the world 110,900 10