Slide 1: Full-year results
Full-year results Robert Walters Plc 02 March 2021
Slide 2: Our strategy and mission
Full-year results About us Our strategy The Group’s strategy for growth is centred on organic international expansion and discipline diversification, ensuring a balanced footprint covering mature and developing markets. International expansion Driving growth through expansion into new geographic loc
Slide 3: Our brands
Full-year results About us Our brands Specialist professional Specialist staffing Recruitment process recruitment outsourcing Robert Walters recruits specialists Walters People specialises in Resource Solutions is a market for permanent, contract and interim temporary/contract and junior leader in r
Slide 4: Navigating the pandemic safely and profitably
Full-year results Navigating the pandemic safely and profitably Our pre-Covid investment in technology and innovation coupled with prudent cost management has enabled the Group to remain profitable during this unprecedented period Technology and Innovation ▪ Pre-pandemic, all front office staff were
Slide 5: Communication – honest, transparent and real-time
Full-year results Navigating the pandemic safely and profitably Communication – honest, transparent and real-time Highlights ▪ Weekly global Operating Board meetings ▪ Frequent all-hands video updates and Q&As across regions and functions ▪ Workplace from Facebook in place globally since 2018 ▪ Regu
Slide 6: Brand-building and market share
Full-year results Brand-building and market share Providing value-added commentary, thought leadership, best practice guides, webinars, podcasts and digital events to keep key stakeholders informed on market and recruitment trends through this period of crisis: Launch of our new podcasts 25 42.5k+ 1
Slide 7: Financial review
Full-year results Financial review 7
Slide 8: Group highlights
Full-year results Group highlights Group performance ▪ Net fee income down 25% (26%*) to £302.4m (2019: £405.5m) ▪ Operating profit down 71% (71%*) to £14.8m (2019: £51.2m) ▪ Profit before taxation down 75% (down 75%*) to £12.1m (2019: £47.4m) ▪ 78% (2019: 76%) of net fee income generated from inter
Slide 9: Consolidated income statement and financial review
Full-year results Consolidated income statement and financial review 12 months to 12 months to % Change £ % Change 31 Dec 2020 31 Dec 2019 (constant currency*) Revenue1 938.4m 1.22bn (23%) (23%) Gross profit (net fee income)2 302.4m 405.5m (25%) (26%) Operating profit 14.8m 51.2m (71%) (71%) Interes
Slide 10: Summary of Group balance sheet
Full-year results Summary of Group balance sheet As at As at £m 31 Dec 2020 31 Dec 2019 Goodwill 8.0 8.0 Tangible assets and computer software 19.3 16.8 Right of use asset 59.5 72.9 86.8 97.7 Receivables 153.0 209.7 Payables and provisions (173.8) (164.5) Lease liabilities (63.8) (75.5) 2.2 67.4 Cur
Slide 11: Summary of cash flow
Full-year results Summary of cash flow 12 months to 12 months to £m 31 Dec 2020 31 Dec 2019 Operating profit 14.8 51.2 Depreciation and amortisation and impairment 25.5 21.8 Share-based payments and other non-cash items 2.2 5.6 Unrealised foreign exchange gains/(losses) 1.2 (1.3) Working capital mov
Slide 12: Regional analysis (net fee income)
Full-year results Regional analysis (net fee income) 12 months to 31 Dec 2020 12 months to 31 Dec 2019 22% 24% UK UK (£66.9m) (£m) UK (£98.4m) 41% 41% Asia Pacific Asia Pacific (£124.1m) (£164.6m) 28% 27% 9% Europe (£85.7m) 8% Europe (£108.7m) Other International Other International (£25.7m) (£33.8m
Slide 13: Net fee income by geography
Full-year results Net fee income by geography Asia Pacific 6% 34% UK 81% (41% of Group NFI) 8% (22% of Group NFI) 19% Japan 2019: 33% London 2019: 75% 9% Other 2019: 21% Regions 2019: 25% Australia 2019: 20% Hong Kong 2019: 11% New Zealand 2019: 7% Singapore 2019: 8% 20% 23% Europe 6% Other Internat
Slide 14: Net fee income by discipline
Full-year results Net fee income by discipline 4% 4% 4% Commerce Finance 2019: 34% IT 2019: 19% 36% Banking Finance 2019: 13% 4% Sales and Marketing 2019: 11% HR 2019: 5% 3% Engineering and Construction 2019: 5% Support 2019: 5% Legal 2019: 4% Procurement 2019: 4% 11% 11% 23% 14
Slide 15: Track record of growth
Full-year results Track record of growth Net fee income 2007 - 2020 450,000 400,000 350,000 300,000 £000's 250,000 200,000 150,000 100,000 50,000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Operating Profit 2007 - 2020 60,000 50,000 40,000 £000's 30,000 20,000 10,000 0 20
Slide 16: Track record of growth: dividends and EPS
Full-year results Track record of growth Dividend Payments 2007 - 2020 18.00 16.00 14.00 12.00 Pences 10.00 8.00 6.00 4.00 2.00 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Earnings per share 2007 - 2020 60.00 50.00 40.00 Pences 30.00 20.00 10.00 0.00 2007 2008 2009 201
Slide 17: Operations review
Full-year results Operations review 17
Slide 18: Operational management team
Full-year results Operational management team 36* 19* Robert Walters Alan Bannatyne Group CEO Chief Financial Officer 21* 14* Toby Fowlston Norma Gillespie CEO, RW & WP CEO, RS 21* 16* 12* 18* 12* 22* 1* Chris Hickey Rob Vermaak Marco Laveda James Dave Barr Kristen Pete CEO, UKI, CEO Benelux, CEO, I
Slide 19: Asia Pacific
Full-year results Asia Pacific (41% of net fee income) Asia Pacific Permanent/contract 31% ▪ Net fee income: £124.1m (2019: £164.6m) recruitment Contract 2019: 23% ▪ Operating profit: £8.4m (2019: £22.8m) 69% Permanent 2019: 77% Locations: Australia New Zealand Hong Kong Philippines India Singapore
Slide 20: Japan and South Korea
Full-year results Asia Pacific Japan and South Korea Japan ▪ The Group’s most profitable business – clear market-leader in bilingual professional recruitment ▪ Volatile 12 months ▪ Record Q1 performance. Q2 impacted by Covid and ‘State of Emergency’ ▪ Recovery in Q3 and early Q4 but Covid resurgence
Slide 21: South East Asia and Greater China
Full-year results Asia Pacific South East Asia and Greater China ▪ Unrivalled footprint – including some of the world’s fastest growing emerging recruitment markets. Strong platform for long-term growth Greater China ▪ Hong Kong significantly impacted by double hit of political unrest and Covid ▪ Ne
Slide 22: Australia and New Zealand
Full-year results Asia Pacific Australia and New Zealand Australia ▪ Solid performance with Adelaide, Perth and Sydney activity levels holding up relatively well ▪ Prolonged and strict lockdown in Victoria (Melbourne) impacted 2020 performance – net fee income declined 38%* year-on-year ▪ Technology
Slide 23: Europe
Full-year results Europe (28% of net fee income) Europe Permanent/contract/interim 23% ▪ Net fee income: £85.7m (2019: £108.7m) recruitment Interim 2019: 21% ▪ Operating profit: £4.7m (2019: £15.4m) 50% Permanent 2019: 52% Locations: Benelux Czech Republic 27% Contract France 2019: 27% Germany Irela
Slide 24: Europe
Full-year results Europe Europe ▪ Solid performance across region ▪ Blend of permanent, contract and interim recruitment solutions continues to be a key competitive advantage allowing us to service varying client requirements ▪ Standout performance across Benelux despite challenging backdrop ▪ Nethe
Slide 25: UK
Full-year results UK (22% of net fee income) UK Permanent/contract ▪ Net fee income: £66.9m (2019: £98.4m) recruitment 36% Contract 2019: 35% ▪ Operating profit: £1.3m (2019: £11.7m) 64% Permanent 2019: 65% Locations: Birmingham Bracknell London Manchester Milton Keynes St Albans Recruitment net fee
Slide 26: UK
Full-year results UK UK ▪ Positive signs of both client and candidate confidence in January and February post Brexit hurdle clearance and General Election ▪ Recruitment activity ground largely to a halt mid-March with lockdown announcement but activity levels sequentially improved from Q2 onwards as
Slide 27: Other International
Full-year results Other International (9% of net fee income) Other International Permanent/contract ▪ Net fee income: £25.7m (2019: £33.8m) recruitment ▪ Operating profit: £0.4m (2019: £1.3m) 100% Permanent 2019: 100% Locations: Brazil Canada Chile Mexico Middle East South Africa USA Recruitment net
Slide 28: Other International: Americas, South Africa, Middle East
Full-year results Other International Americas South Africa ▪ New business in Chile continues to perform well, ▪ Troubled political and economic landscape exacerbated despite Covid, growing net fee income by 15%* by Covid-19 impact ▪ Strong first-half performance in North America but activity levels
Slide 29: Resource Solutions: Core product propositions
Full-year results Resource Solutions Core product propositions RPO Non-permanent workforce Advisory From full RPO to modular and project RPO, solutions Helping our clients build a balanced, Our consulting services are delivered our services are designed with client and with deep speciality and groun
Slide 30: Resource Solutions
Full-year results Resource Solutions Resource Solutions ▪ Net fee income negatively impacted across our international footprint ▪ Pandemic-driven hiring freezes or significant reductions in hiring volumes but less pronounced in Asia Pacific ▪ Headcount reduced in line with client demand ▪ Nick Dunne
Slide 31: Technology & Transformation: Driving efficiency with Microsoft
Full-year results Technology & Transformation As a business with innovation embedded at its core, being at the cutting edge of technological change has paid dividends in terms of our readiness to face the unique challenges presented to us in 2020 Driving efficiency with Microsoft A seamless, secure
Slide 32: Innovation
Full-year results Innovation Innovation Trends Events Digital Agility Advisory Services Launch Innovation and creativity were at the Digital agility displayed by our people: Responding to client demand, we heart of a new virtual events strategy pivoting to home-working and embracing launched our Inn
Slide 33: Our Corporate Responsibility Strategy
Full-year results Corporate Responsibility Our Corporate Responsibility Strategy Our Corporate Responsibility strategy is based upon three strategic pillars which align to ESG and are underpinned by our purpose. Protecting the planet Powering people potential Responsible business ENVIRONMENT SOCIAL
Slide 34: Developing our people
Full-year results Corporate Responsibility Developing our people 230+ 78 498 65 Leadership coaching Languages spoken by our Internal promotions across Nationalities represented sessions delivered employees the Group in 2020 across the Group F279 : M219 2 shortlists for Talent Development 5 employer
Slide 35: Supporting the communities where we work
Full-year results Corporate Responsibility Supporting the communities where we work 35
Slide 36: Our recent awards
Full-year results Awards Our recent awards UK Group Resource Solutions Runner up Middle East Australia France Japan South Korea 36
Slide 37: Outlook
Full-year results Outlook “With new or extended lockdowns still occurring across much of the world, market conditions remain challenging and visibility is limited. Early 2021 trading is in line with market expectations.” 37