Hays Plc · LSE:HAS
Hays — H1 FY2020 Earnings Presentation
73 slides from Hays's earnings presentation, Feb 20, 2020
Slide 1: Half Year Results
HALF YEAR RESULTS Six months ended 31 December 2019
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This presentation contains certain statements that are neither reported financial results nor other historical information. The information contained in this presentation is not audited, is for personal use and informational purposes only and is not intended for distribution to,
Slide 3: Agenda
AGENDA 1 OPERATING REVIEW ALISTAIR COX, CHIEF EXECUTIVE 2 FINANCIAL REVIEW PAUL VENABLES, FINANCE DIRECTOR 3 CURRENT TRADING PAUL VENABLES, FINANCE DIRECTOR 4 STRATEGY UPDATE ALISTAIR COX, CHIEF EXECUTIVE APPENDICES 3
Slide 4: Operating Review
OPERATING REVIEW ALISTAIR COX CHIEF EXECUTIVE 4
Slide 5: H1 Trading Impacted by Tough Markets, Investments and Specific Events
NET FEES -2% to £553.1m H1 TRADING IMPACTED BY TOUGH MARKETS, OP PROFIT -18% to £100.1m INVESTMENTS IN KEY AREAS AND SPECIFIC EVENTS EPS -22% to 4.60p CORE DPS Maintained at 1.11p Our focus remains on… We have delivered… Balancing ▪ Net fees down 2%, with tough conditions in most of our major market
Slide 6: Australia & New Zealand: Subdued Business Confidence
ANZ net fees (£m) H1 18 99.8 SUBDUED BUSINESS CONFIDENCE CONTINUED TO H1 19 101.5 IMPACT PERM MARKET. RESILIENT TEMP PERFORMANCE H1 20 94.8 AUSTRALIA & NEW ZEALAND Net fees down 4%, operating profit down 14% 69% Temp ▪ Resilient performance in Temp (69% of ANZ fees), 31% down 2%. Subdued business co
Slide 7: Germany: Tough Conditions, Greater Client Cost Control
Germany net fees (£m) £133m H1 18 134.8 TOUGH CONDITIONS WITH REDUCED BUSINESS H1 19 153.7 £134m CONFIDENCE AND GREATER CLIENT COST CONTROL H1 20 144.9 GERMANY Net fees down 5%, operating profit down 20% 83% Temp ▪ Temp & Contracting declined 5%, Perm down 3% 17% Perm ▪ T&C impacted by a 2% reductio
Slide 8: UK & Ireland: Trading Impacted by Uncertainties
UK&I net fees (£m) H1 18 127.5 TRADING IMPACTED BY UNCERTAINTIES & REDUCED H1 19 131.7 PRIVATE SECTOR CONFIDENCE PRE-ELECTION H1 20 126.7 UK & IRELAND Net fees down 4%, operating profit down 21% 58% Temp ▪ Temp net fees down 1%, Perm down 8% 42% Perm ▪ Good performance in Public sector, up 8% ▪ Toug
Slide 9: Rest of World: Good Growth in USA, China Slowed
RoW net fees (£m) H1 18 163.7 GOOD GROWTH IN THE USA. CHINA SLOWED THROUGH H1 19 181.1 THE HALF. EMEA FLAT, HIT BY STRIKES IN FRANCE H1 20 186.7 REST OF WORLD EMEA ex-Germany (58% of division net fees) 32% Temp ▪ Flat net fees, including 0% in France, after a sharp 68% slowdown in December, due to g
Slide 10: Global Slowdown Will Delay Achievement of 2022 Aspirations
MATERIAL SLOWDOWN IN GLOBAL ECONOMIC GROWTH WILL DELAY ACHIEVEMENT OF OUR 2022 ASPIRATIONS Australia & NZ (£m) Operating Profit* Germany (£m) Operating Profit* FY17 63 63 FY17 81 81 FY18 34 35 69 FY18 41 45 86 FY19 34 32 66 FY19 47 44 91 H1 20 29 H1 20 37 FY22 OBJECTIVE 75 90 105 FY22 OBJECTIVE 135
Slide 11: Financial Review
2. FINANCIAL REVIEW PAUL VENABLES FINANCE DIRECTOR
Slide 12: H1 Trading Impacted by Tough Market Conditions
H1 TRADING IMPACTED BY TOUGH MARKET CONDITIONS, SPECIFIC EXTERNAL EVENTS IN DECEMBER AND INVESTMENTS IN KEY AREAS Net fees Operating profit Core interim dividend H1 16 £396.9m H1 16 £86.3m H1 16 0.91p H1 17 £465.5m H1 17 £100.1m H1 17 0.96p H1 18 £525.8m H1 18 £116.5m H1 18 1.06p H1 19 £568.0m H1 19
Slide 13: Income Statement
H1 TRADING IMPACTED BY TOUGH MARKET CONDITIONS, SPECIFIC EXTERNAL EVENTS IN DECEMBER AND INVESTMENTS IN KEY AREAS Income Statement Six months ended 31 December 2019 2018 Reported LFL* £m £m growth growth Turnover 3,104.7 3,035.4 2% 3% Net Fees 553.1 568.0 (3)% (2)% Operating Profit 100.1 124.1 (19)%
Slide 14: Material Slowdown in Net Fee Trends Over Last 18 Months
SIGNIFICANT WEAKENING IN GLOBAL ECONOMIC CONDITIONS HAS LED TO MATERIAL SLOWDOWN IN NET FEE TRENDS OVER LAST 18 MONTHS ▪ Macroeconomic conditions continued to weaken, especially in Germany Group net fee growth* ▪ Reduced business confidence led to increased client focus on cost control 13% 14% 10% 1
Slide 15: Divisional Performance Summary
H1 TRADING IMPACTED BY TOUGH MARKET CONDITIONS, SPECIFIC EXTERNAL EVENTS IN DECEMBER AND INVESTMENTS IN KEY AREAS Australia & NZ (17% of net fees) Germany (26% of net fees) Net Fees £94.8m (4)% Net Fees £144.9m (5)% Op Profit £28.5m (14)% Op Profit £37.0m (20)% ▪ Subdued business confidence continue
Slide 16: H1 FY20 Operating Profit Bridge
H1 FY20 OPERATING PROFIT BRIDGE 125 ~ Cost-related ~ (1.4) 120 (11.9) 115 110 (5.0) 105 (4.1) 124.1 100 (2.0) (4.6) 5.0 95 90 100.1 85 80 H1 FY19 FX 2% LFL fee IT headcount Property & IT / cyber Pay and other Cost- H1 FY20 operating decline investment depreciation investment cost increases savings*
Slide 17: Temp Slightly More Resilient Than Perm
Split of net fees TEMP SLIGHTLY MORE RESILIENT THAN PERM H1 18 58% Temp H1 19 58% Temp H1 20 58% Temp Review of Group Permanent and Temporary Businesses* Permanent placement business Temporary placement business (3)% net fee decline (2)% net fee decline (10)% volume decrease (1)% volume decrease 7%
Slide 18: Australian Dollar and Euro FX Translation Sensitivities
THE AUSTRALIAN DOLLAR AND EURO REMAIN SIGNIFICANT FX TRANSLATION SENSITIVITIES FOR THE GROUP Key FX rates and sensitivities Six months ended 31 December 2019 Average Closing Australian $ 1.8414 1.8902 Euro € 1.1361 1.1839 Impact of a one cent change per annum Net fees Op profit Australian $ +/- £1.0
Slide 19: Conversion Rate Reduction
CONVERSION RATE* REDUCTION EQUALLY SPLIT BETWEEN LFL FEE REDUCTION AND INVESTMENT IN KEY AREAS Conversion Rate* H1 FY20 H1 FY19 Overall Group conversion rate decreased 370bps to 18.1% Australia & New Reduction due to weak Private sector market impacting Perm, 30.1% 33.6% Zealand exacerbated by bushf
Slide 20: IFRS 16 Impact on Income Statement and Balance Sheet
IFRS 16 IMPACT ON THE INCOME STATEMENT AND BALANCE SHEET Income Statement (£m) H1 FY20 Balance sheet (£m) H1 FY20 FY20 opening balance Operating lease charge 24.1 Assets Depreciation on right-of-use asset (23.3) Right-of-use assets 218.7 238.1 Impact on Operating profit 0.8 Liabilities Interest on l
Slide 21: Increase in Finance Charge Due to IFRS 16
INCREASE IN FINANCE CHARGE DUE TO IFRS 16 NON-CASH CHARGE Finance charge and taxation Six months ended 31 December 2019 2018 £m £m Finance charge Net interest charge on debt (0.7) (1.1) IFRS 16 interest on lease liabilities (non-cash) (2.8) - IAS 19 pension charge (non-cash) (0.9) (0.3) PPF levy (0.
Slide 22: 22% Decrease in Earnings Per Share
Basic EPS (p) H1 18 5.39 22% DECREASE IN EARNINGS PER SHARE H1 19 5.86 H1 20 4.60 Basic earnings per share (EPS) Six months ended 31 December 2019 2018 Change Basic earnings £67.4m £85.2m (21)% Weighted average number of shares* 1,464m 1,455m 1% Basic earnings per share 4.60p 5.86p (22)% Shares in i
Slide 23: Good Underlying Cash Performance
Cash from operations (£m) H1 18 74.1 GOOD UNDERLYING CASH PERFORMANCE H1 19 78.5 H1 20 65.2 Operating profit to free cash flow conversion (£m) H1 uses of cash flow Cash from operations** £65.2m Net capex £15.0m (H1 19: £78.5m) Pensions £8.1m Special dividend £79.7m 100.1 35.1 (45.9) Core dividend £4
Slide 24: Strong Cash Position Despite Special and Final Dividends
Free cash flow (£m)* H1 18 39.5 STRONG CASH POSITION, DESPITE £122M OF H1 19 44.7 SPECIAL AND FINAL DIVIDENDS PAID IN THE HALF H1 20 32.6 Closing net cash (£m) 129.7 122.9 NET CASH POSITION ▪ H1 20 ended with net cash of £13.2m, after paying 111.6 £121.6m cash dividends £210 MILLION BANK FACILITY EX
Slide 25: A Strong Balance Sheet
A STRONG BALANCE SHEET Balance sheet analysis 31 Dec 30 Jun £m 2019 2019 IFRS 16 Goodwill & intangibles 263.0 265.6 ▪ Effective from 1 July 2019 applying the modified Property, plant & equipment retrospective approach, recognising a Right-of-Use asset 31.7 33.0 and corresponding lease liability Righ
Slide 26: Interim Dividend Maintained at 1.11p
INTERIM DIVIDEND MAINTAINED AT 1.11p FREE CASH ▪ Fund Group investments and development FLOW ▪ Maintain a strong balance sheet PRIORITIES ▪ Deliver a core dividend which is sustainable, progressive and appropriate CORE ▪ Target core dividend cover of 2.0x to 3.0x Group EPS DIVIDEND ▪ Interim dividen
Slide 27: Financial Summary
FINANCIAL SUMMARY NET FEES DECLINED 2% ▪ Tough conditions in most key markets, with net fees in ANZ, Germany and UK&I declining ▪ Slowdown due to a combination of greater economic and political uncertainty globally combined with three specific external events, which weighed on the Group’s largest bu
Slide 28: Current Trading
3. CURRENT TRADING PAUL VENABLES FINANCE DIRECTOR
Slide 29: Current Trading and Return to Work Levels by Region
RETURN TO WORK HAS BEEN c.2% BELOW PRIOR YEAR IN AUSTRALIA, GERMANY AND UK. TOO EARLY TO QUANTIFY CORONAVIRUS IMPACT Current trading conditions and Return To Work (RTW) levels by region ▪ Overall trading remains subdued. Temp & Contracting RTW to date has been c.3% slower on average than ANZ prior y
Slide 30: Strategy
4. STRATEGY ALISTAIR COX CHIEF EXECUTIVE
Slide 31: Group Cash-Generative and Well-Positioned for Long-Term Growth
H1 FEES & PROFIT LOWER. GROUP REMAINS HIGHLY CASH-GENERATIVE AND WELL-POSITIONED FOR LONG-TERM GROWTH AND DEVELOPMENT ASPIRATION TO GENERATE, INVEST IN PEOPLE & BUILD CRITICAL MATERIALLY REINVEST & TECHNOLOGY, MASS AND SCALE INCREASE AND DISTRIBUTE RESPOND TO ACROSS OUR DIVERSIFY GROUP MEANINGFUL CH
Slide 32: A Prioritised Pipeline of Opportunities to Build Scale
A PRIORITISED PIPELINE OF OPPORTUNITIES TO BUILD SCALE FUTURE MATERIAL MEANINGFUL CORE PROFIT DRIVERS CONTRIBUTORS NETWORK PROFIT £20m+ £10m+ £5m+ CRITICAL DRIVERS TARGET TARGET TARGET CHINA AUSTRIA BELGIUM 16 NEW ZEALAND GERMANY SWITZERLAND OTHER MALAYSIA HAYS AUSTRALIA FRANCE SPAIN POLAND COUNTRIE
Slide 33: Strong Structural Growth in Global IT Specialism
300 30% Global IT fees £m (LHS) 257.8 250 IT as % of fees (RHS) 231.4 25% 204.5 200 185.1 20% 164.2 STRONG STRUCTURAL GROWTH IN OUR GLOBAL 150 117.9 122.9 130.4 15% 101.6 IT SPECIALISM, ACCELERATING IN FY17-FY19 100 10% 50 5% 0 0% IT specialism net fee CAGR FY11 FY13 FY15 FY17 FY19 30% FY10-FY16 27%
Slide 34: Confident in Our Strategy
CONFIDENT IN OUR STRATEGY Headlines ▪ Tough half with pace of fee decline accelerating and impacted by specific external events ▪ Business remains highly cash-generative ▪ Strongest management team throughout the business that we have ever had ▪ Priority is getting the correct balance between invest
Slide 35: Appendix 1: H1 FY20 Results Supporting Materials
APPENDIX 1 H1 FY20 Results supporting materials
Slide 36: Potential Returns to Shareholders from 5-Year Aspirations
POTENTIAL FOR MATERIAL RETURNS TO SHAREHOLDERS BASED ON ACHIEVING OUR 5-YEAR ASPIRATIONS TO JUNE 2022* £m KEY ASSUMPTIONS: FY22 OPERATING PROFIT 300 375 450 1. Average working capital outflow of FREE CASH FLOW 861 944 1042 £50m per annum in mid-point case USES OF FREE CASH FLOW 2. No M&A spend built
Slide 37: Like-for-Like Summary
LIKE-FOR-LIKE SUMMARY Six months ended 31 December 2018 FX impact Organic 2019 LFL* £m £m £m £m growth Net fees Australia & New Zealand 101.5 (2.8) (3.9) 94.8 (4)% Germany 153.7 (1.6) (7.2) 144.9 (5)% United Kingdom & Ireland 131.7 (0.1) (4.9) 126.7 (4)% Rest of World 181.1 1.5 4.1 186.7 2% Group 56
Slide 38: Growth Analysis by Division
H1 FY20, FY19, H2 FY19 AND H1 FY19: GROWTH ANALYSIS BY DIVISION Net fee growth (LFL*) versus same period last year Q1 19 Q2 19 H1 19 Q3 19 Q4 19 H2 19 FY19 Q1 20 Q2 20 H1 20 Australia & New Zealand 7% 8% 7% 3% (3)% 0% 4% (2)% (7)% (4)% Germany 13% 15% 14% 6% 2% 4% 9% 0% (9)% (5)% United Kingdom & Ir
Slide 39: Rest of World Performance by Country
REST OF WORLD PERFORMANCE BY COUNTRY / MARKET Country/Region H1 20 Net Net fee # of # of Rest of World net fees (ranked by net fees) fees growth offices consultants £m (LFL*) France 32.9 0% 20 446 USA 24.5 12% 12 285 Other** France Benelux 18.5 (4%) 12 238 China 17.3 0% 6 242 Switzerland 12.2 5% 4 1
Slide 40: Technical Specialisms Add Balance and Resilience
TECHNICAL SPECIALISMS ADD TO OUR BALANCE AND RELATIVE RESILIENCE Attributes of Technical* vs Technical specialisms now represent >60% Group net fees Professional** net fees (CAGR FY11-19: c.9% vs c.5% Professional) Investment-led hires 1. rather than purely candidate-driven 42% 40% 40% 40% 39% 38% 3
Slide 41: Continued Investment in Scale and Diversity Across Global Platform
CONTINUED INVESTMENT IN BUILDING FURTHER SCALE AND DIVERSITY ACROSS OUR GLOBAL PLATFORM Temp & Contracting Temp/Contractor business as % of H1 20 net fees CLEAR STRUCTURAL CANADA NETHERLANDS POLAND 1. GROWTH 33% OPPORTUNITIES 73% 25% SWITZERLAND RELATIVE RESILIENCE 2. TO THE CYCLE 76% 66 FRANCE % BE
Slide 42: Consultant Headcount
CONSULTANT HEADCOUNT Change in headcount As at As at Change As at Change 31 Dec 30 Jun since Jun 31 Dec since Dec 2019 2019 2019 2018 2018 Australia & New Zealand 1,006 1,008 0% 1,069 (6)% Germany 1,759 1,801 (2)% 1,824 (4)% United Kingdom & Ireland 1,991 1,960 2% 1,967 1% Rest of World 3,091 3,013
Slide 43: Office Network
OFFICE NETWORK Number of offices 30 June Opened/ 31 December 2019 (Closed)* 2019 Australia & New Zealand 41 1 42 Germany 24 1 25 United Kingdom & Ireland 96 (1) 95 Rest of World 104 - 104 Group 265 1 266 43 * Offices opened is shown net of closed and merged offices.
Slide 44: Trading Days in Major Markets
TRADING DAYS IN MAJOR MARKETS Australia Germany UK Number of trading days H1 H2 Year H1 H2 Year H1 H2 Year Year ended 30 June 2018 127 124 251 125 123 248 127 125 252 Year ended 30 June 2019 128 123 251 127 122 249 128 124 252 Year ending 30 June 2020 129 124 253 128 122 250 129 125 254 44
Slide 45: Appendix 2: Business Model & Strategy for Growth
APPENDIX 2 The Hays business model & strategy for growth
Slide 46: The Data Dilemma
THE DATA DILEMMA: DRIVING MORE VALUE FROM DATA THAN HR TEAMS AND COMPETITORS Access to more and better data Convert data effectively into insights Drive real actions from insight CLICK LIKE TWEET REVIEW DOWNLOAD VIEW MILLIONS DATA SHARE OF NEW QUALITY & DATA POINTS INSIGHTS COMMENT COMPLIANCE EACH D
Slide 47: Clear, Well-Established Strategic Priorities
WE HAVE CLEAR, WELL-ESTABLISHED STRATEGIC PRIORITIES TO DELIVER OUR LONG-TERM AIMS MATERIALLY INCREASE & DIVERSIFY GROUP PROFITS GENERATE, BUILD CRITICAL REINVEST & MASS & DIVERSITY DISTRIBUTE ACROSS OUR MEANINGFUL CASH GLOBAL PLATFORM RETURNS INVEST IN PEOPLE, TECHNOLOGY, COLLABORATIONS & INNOVATIO
Slide 48: Strength of Our Model Through the Cycle
THE STRENGTH OF OUR MODEL IS KEY TO DELIVERING FOR CLIENTS AND DRIVING FINANCIAL PERFORMANCE THROUGH THE CYCLE Unrivalled … the best …delivers … a resilient … and scale, people, the best financial leverages balance and sector- solutions for performance the Group to diversity… leading clients & in to
Slide 49: Leading Global Expert in Professional and Skilled Recruitment
HAYS IS A LEADING GLOBAL EXPERT IN QUALIFIED, PROFESSIONAL AND SKILLED RECRUITMENT EXECUTIVE SEARCH (head-hunting) PROFESSIONAL RECRUITMENT (mostly white collar) ▪ Contingent fee model ▪ Focus on high-skilled roles ▪ Clear structural growth markets GENERALISTS (mostly blue collar) 49
Slide 50: A Proven Track Record of Organic Growth
A PROVEN TRACK RECORD OF ORGANIC GROWTH New country & specialism entries Key: Organic Acquisition 33 COUNTRIES / MARKETS 20 SPECIALISMS Pre 1990 UK Australia Ireland A&F C&P IT Early 1990s Banking Fin Services Office Pros Late 1990s Czech Rep. France New Zealand Contact Ce. Education 2000 Belgium Po
Slide 51: Acting Responsibly Embedded in Strategic Priorities
ACTING RESPONSIBLY IS EMBEDDED IN OUR STRATEGIC PRIORITIES MATERIALLY GENERATE, INVEST IN BUILD CRITICAL INCREASE AND PEOPLE & MASS & REINVEST AND FY19 DIVERSIFY DISTRIBUTE ACHIEVEMENTS TECHNOLOGY DIVERSITY PROFITS CASH RETURNS STAKEHOLDERS We take huge pride in Hays’ culture, career paths and reput
Slide 52: Worldwide Platform and Market Positions
OUR WORLDWIDE PLATFORM PROVIDES A PIPELINE OF FUTURE GROWTH OPPORTUNITIES & LEADERSHIP IN ALL CORE MARKETS Hays market positioning* Market Leader Top 3 position Top 5 position Other TOP 3 Australia (#1) Malaysia Belgium New Zealand (#1) Brazil Poland (#1) France Portugal (#1) Germany (#1) Russia Chi
Slide 53: Strategic Focus on Building Scale in Key Markets
OUR STRATEGIC FOCUS IS ON BUILDING SCALE IN KEY MARKETS HAYS MARKETS HAYS SPECIALISMS 2019 2019 33 20 11 10 2002 2002 ▪ Market leaders in seven countries ▪ Leading market positions across including: UK, Australia, Germany professional and technical areas ▪ Top-3 market position in a further 13 ▪ Lon
Slide 54: Market-Leading Breadth and Depth of Platform
MARKET-LEADING BREADTH AND DEPTH OF PLATFORM 20 SPECIALISMS 33 COUNTRIES New Zealand Luxembourg Netherlands Czech Rep. Switzerland Singapore Colombia Germany Denmark Romania Australia Malaysia Hungary Portugal Belgium Sweden Canada Mexico Poland Austria France Russia Ireland Japan China Spain Brazil
Slide 55: Five Pillars Underpinning the Business Model
BALANCE, SCALE AND DIVERSIFICATION ARE WHAT SETS THE HAYS THERE ARE BUSINESS 5 PILLARS MODEL WHICH APART AND UNDERPIN DRIVES THE STRENGTH OF OUTPERFORMANCE OUR BUSINESS MODEL ▪ Exposure to structural growth and more mature areas 1. BALANCE ▪ Long-established across technical, white-collar specialism
Slide 56: A Balanced Portfolio
A BALANCED PORTFOLIO H1 FY20 net fees by type* Top 40 Office Support 7% PublicPublic sector Recruitment 16% 15% ANZ 17% Recruitment sector Engineering 9% contracts ~25% contracts 15% Rest of World Other** Perm ~25% 31% 32% Perm 42%42% C&P 13% Germany 26% A&F 15% Office Sup. 8% United Kingdom & Irela
Slide 57: Diversified in Structural and Cyclical Markets
BALANCED BUSINESS MODEL: WELL DIVERSIFIED IN STRUCTURAL AND CYCLICAL MARKETS Net fees by market maturity* (percentages in table show % of Group net fees in H1 FY20) ESTABLISHED: DEVELOPING: >70% penetration 30-70% penetration 27% of Group net fees 26% of Group net fees (1)% LFL net fee growth UK & I
Slide 58: Portfolio of Sectors Delivers Diversification Benefits
BALANCED BUSINESS MODEL: PORTFOLIO OF SECTORS DELIVERS DIVERSIFICATION BENEFITS STRONG: GROWTH TOUGH: DECLINE <0%* >10%* 6% Banking Construction & Property Sales & Marketing Resources & Mining Healthcare Accountancy & Finance Net fees H1 20 35% Candidate shortages Tough conditions £553.1m Clients in
Slide 59: Exposure to Temp/Contractor Markets, Perm-Geared in High Growth Areas
BALANCED BUSINESS MODEL: SECTOR-LEADING EXPOSURE TO KEY TEMP/CONTRACTOR MARKETS, PERM-GEARED IN HIGH GROWTH AREAS H1 20 Net Fees by geography and contract type Temp Perm 17% 31% 42% 68% 83% 69% 58% 32% ANZ - 17% Germany - 26% UK&I - 23% RoW - 34% PROPORTION OF GROUP NET FEES 59
Slide 60: Appendix 3: Divisional Profiles and Historical Data
APPENDIX 3 Divisional profiles and historical data
Slide 61: Financial Archive – Net Fees, Operating Profit & Headcount
FINANCIAL ARCHIVE – NET FEES, OPERATING PROFIT & HEADCOUNT £ Net fees by division (£m) % Operating profit‡ by division (£m) 1,130 249 1,073 243 955 212 42 41 810 339 368 164 181 27 734 719 725 764 114 126 140 15 47 49 672 291 128 22 42 1 7 558 163 196 230 4 6 52 142 168 177 258 264 81 26 46 253 52 8
Slide 62: ANZ Represents 17% of Group Net Fees
ANZ REPRESENTS 17% OF GROUP NET FEES, WITH AUSTRALIA REPRESENTING 94% OF DIVISIONAL NET FEES Six months ended 31 December 19 Net fees by specialism Net fees by region Net fees: £94.8m Operating profit: £28.5m 14% 19% 22% Conversion rate: 30.1% 28% 6% Countries: 2 4% Consultants: 1,006 4% 8% Offices:
Slide 63: Historical Profile of Hays Australia & New Zealand
HISTORICAL PROFILE OF HAYS AUSTRALIA & NEW ZEALAND Historical headline net fees (£m) Historical headline operating profit ‡ (£m) 210 87 199 199 81 182 179 181 72 69 66 163 64 63 60 135 138 139 134 129 49 45 44 44 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY08 FY09 FY10 FY11 FY12 FY
Slide 64: Germany Represents 26% of Group Net Fees
GERMANY REPRESENTS 26% OF GROUP NET FEES AND 37% OF GROUP PROFIT Six months ended 31 December 19 Net fees by specialism Net fees by contract type Net fees: £144.9m 0% Operating profit: £37.0m 5% 5% 17% Conversion rate: 25.5% 5% Consultants: 1,759 41% Offices: 25 15% 55% 28% Private : Public sector 2
Slide 65: Historical Profile of Hays Germany
HISTORICAL PROFILE OF HAYS GERMANY Historical headline net fees (£m) Historical headline operating profit ‡ (£m) 300 91 276 86 81 230 62 60 63 175 58 164 158 52 150 136 38 36 106 88 80 24 26 63 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 F
Slide 66: UK & Ireland Represents 23% of Group Net Fees
UK & IRELAND REPRESENTS 23% OF GROUP NET FEES AND 19% OF GROUP PROFIT Six months ended 31 December 19 Net fees by specialism Net fees by region Net fees: £126.7m Operating profit‡: £19.0m 8% Conversion rate: 15.0% 25% 21% 8% Consultants: 1,991 33% Offices: 95 12% 7% Temp : Perm 19% 7% 17% 58% 58% 42
Slide 67: Historical Profile of Hays UK & Ireland
HISTORICAL PROFILE OF HAYS UK & IRELAND Historical headline net fees (£m) Historical headline operating profit ‡ (£m) 453 137 331 272 272 258 264 244 242 246 253 225 222 64 52 47 49 46 42 26 11 6 4 (7) FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY1
Slide 68: Rest of World Represents 34% of Group Net Fees
REST OF WORLD REPRESENTS 34% OF GROUP NET FEES, WITH FRANCE OUR LARGEST RoW MARKET Net fees by specialism Six months ended 31 December 19 Net fees by specialism Net fees by market Net fees: £186.7m Net fees by country Operating profit: £15.6m Conversion rate: 8.4% 20% 18% 26% 24% Countries: 28 Consu
Slide 69: Historical Profile of Rest of World
HISTORICAL PROFILE OF REST OF WORLD Historical headline net fees (£m) Historical headline operating profit ‡ (£m) 339 368 41 42 291 230 27 196 22 168 177 163 15 142 12 108 117 105 7 (2) (6) 1 (4) (3) FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Slide 70: Local Currency – Net Fees and Operating Profit
LOCAL CURRENCY – NET FEES AND OPERATING PROFIT Australia & New Zealand Australia & New Zealand Historical net fees (AUDm) Historical operating profit‡ (AUDm) 365 359 182 347 323 293 293 305 274 263 273 130 134 245 116 120 120 232 106 98 88 90 80 83 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 F
Slide 71: Financial Archive – Quarterly Net Fee Growth
FINANCIAL ARCHIVE – QUARTERLY NET FEE GROWTH % Australia & New Zealand % Germany 23% 23% 19% 15% 16% 16%16% 15% 14% 14% 14% 12%13% 12% 12% 13% 11% 10% 15% 7% 8% 6% 5% 6% 7% 3% 3% 7% 2% 0% 5% 0% (3%) (2%) (7%) (9%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 72: Financial Archive – Quarterly Net Fee & Headcount Growth
FINANCIAL ARCHIVE – QUARTERLY NET FEE & HEADCOUNT GROWTH % Temp % Perm 20% 15% 12% 11% 11% 13% 10% 9% 8% 7% 8% 8% 9% 8% 7% 8% 7% 6% 11% 11% 5% 5% 9% 2% 7% 7% 6% 2% 3% 0% 0% 1% 0% 0% (3%) (6%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 73: Further Information
FURTHER INFORMATION DAVID PHILLIPS HEAD OF INVESTOR RELATIONS CHARLES CHALKLY INVESTOR RELATIONS MANAGER IR@hays.com +44 203 978 3173 For more information about the Group: haysplc.com/investors or @haysplcIR