Slide 1: 4th quarter & FY 2019 results
4th quarter & FY 2019 results. FY 2019: record high FCF and cash dividend, EBITA margin protected. Jacques van den Broek, CEO Henry Schirmer, CFO Randstad N.V. 11 February 2020
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 2020 | 4
Slide 5: Performance moving forward
performance moving forward. © Randstad 2020 | 5
Slide 6: Q4 and FY 2019: performing today, preparing for tomorrow
Q4 and FY 2019: performing today, preparing for tomorrow. FY 2019 Q4 key financials* growth drivers achievements resilient portfolio paying off organic growth -2.8% ROW up 9% EBITA margin protection gross margin +20bp YoY successful digital progress record high FCF: € 915m EBITA € 292m, 4.9% margin
Slide 7: North America and France
north america france industrial slowdown, profs growing. ahead of market at strong margins. ● revenue down 2% (Q3: down 1%) ● revenue up 1% (Q3: down 1%) ○ perm down 1% (Q3: +4%) ○ perm up 4% (Q3: +4%) ● US Staffing & Inhouse revenue down 5% (Q3: down 4%) ● Staffing & Inhouse down 2% (Q3: down 4%) ●
Slide 8: The Netherlands and Germany
the netherlands germany sound margin in challenging conditions. industrial weakness persists. ● revenue down 10% (Q3: down 5%) ● revenue down 15% (Q3: down 14%) ○ perm down 5% (Q3: down 18%) ● Staffing & Inhouse down 16% (Q3: down 17%) ● Staffing & Inhouse down 11% (Q3: down 6%) ● Professionals down
Slide 9: Belgium and Italy
belgium italy robust profitability. ahead of market. ● revenue down 3% (Q3: down 4%) ● revenue down 1% (Q3: down 2%) ○ impacted by automotive weakness ○ market outperformance ○ Professionals up 10% ○ sound perm growth at 20% (Q3: +21%) ● EBITA margin at 6.4% vs. 5.7% LY ● EBITA margin at 6.7% vs. 6.
Slide 10: Iberia and other European countries
iberia other european countries back to revenue growth. mixed trends. ● spain revenue up 4% (Q3: +1%) ● UK revenue down 2% (Q3: down 2%) ○ strong pricing discipline ● nordics down 7% (Q3: down 7%) ● portugal revenue down 6% (Q3: down 8%) ● switzerland down 1% (Q3: stable) ● EBITA margin at 5.9% vs.
Slide 11: Rest of the world and global businesses
rest of the world global businesses sound growth continues. improved profitability. ● japan growth up 7% (Q3: +8%) ● global businesses down 4% (Q3: down 1%) ● australia & new zealand up 3% (Q3: down 1%) ● monster stable revenue decline versus Q3 ○ progress on new technology platforms ● china up 24%
Slide 12: Financial results & outlook
financial results & outlook. © Randstad 2020 | 12
Slide 13: Q4 2019 solid performance in uncertain conditions
Q4 2019 solid performance in uncertain conditions. Q4 performance Q4 key financials € million Q4 ’19 Q4 ’18 % org. revenue 5,995 6,101 (3)% gross profit 1,201 1,207 (2)% gross margin 20.0% 19.8% • organic revenue down 2.8% operating expenses* 909 891 1% opex % 15.2% 14.6% EBITA* 292 316 (10)% • EBIT
Slide 14: Q4 2019 continued sound pricing drives gross margin
Q4 2019 continued sound pricing drives gross margin. Q4 gross margin development YoY Q4 highlights • temp margin impact +40bp • perm fees declined 5% YoY, no impact on gross margin • HRS/other impact -20bp © Randstad 2020 | 14
Slide 15: Balanced cost management in Q4 and FY 2019
balanced cost management in Q4 and FY 2019. Q4 sequential opex bridge Q4 cost management • organic opex up 1% YoY, personnel expenses -2% YoY • selective investments in growth areas, digital/IT spend up • cost optimization program of € 120m in progress © Randstad 2020 | 15
Slide 16: Record high FCF generation in FY 2019
record high FCF generation in FY 2019. improved FY free cash flow YoY strong balance sheet • net debt € 1,377m (down € 263m vs. LY) • Q4 FCF € 424m (vs. € 442m in Q4 2018) including lease liabilities (IFRS 16) • strong working capital inflow, confirming • leverage ratio pre IFRS 16: 0.7 (Q4 2018: th
Slide 17: Conclusion and outlook: navigating through uncertain times
conclusion and outlook: navigating through uncertain times. conclusion and outlook January 2020 trend slightly below Q4 NAM FR • market share gains and EBITA margin NL protected GER BEL • record high FCF and cash dividend IBE IT • strategy progressing well RoE low single-digit growth/decline RoW mid
Slide 18: Questions & answers
questions & answers. © Randstad 2020 | 18
Slide 19: Appendices
appendices randstad. © Randstad 2020 | 19
Slide 20: Outlets by region
outlets by region. end of period Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 North America 1,153 1,152 1,123 1,138 1,142 France 640 635 631 628 625 the Netherlands 653 661 656 660 658 Germany 582 577 580 589 601 Belgium & Luxembourg 327 334 333 329 326 Italy 259 259 262 264 265 Iberia 382 376 375 377 37
Slide 21: Corporate staff by region
corporate staff by region. average Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 North America 5,830 5,660 5,600 5,680 5,840 France 4,690 4,640 4,580 4,540 4,540 the Netherlands 4,090 4,180 4,240 4,270 4,370 Germany 2,640 2,680 2,870 2,880 3,080 Belgium & Luxembourg 2,040 2,120 2,090 2,050 2,130 Italy 2,2
Slide 22: Staffing employees by region
staffing employees by region. average Q4 2019 Q4 2018 North America 97,900 105,100 France 84,800 87,800 the Netherlands 75,200 85,400 Germany 37,800 43,600 Belgium & Luxembourg 46,500 49,700 Italy 53,800 54,900 Iberia 65,400 67,700 Other European countries 61,800 65,900 Rest of the world 120,800 112
Slide 23: eaese
eaese human forward WM