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CAUTIONARY STATEMENT
This presentation contains certain statements that are neither reported financial results nor other historical information. The informationcontained in this presentation is not audited, is for personal use and informational purposes only and is not intended for distribution to, or useby, any person or entity in any jurisdiction in any country where such distribution or use would be contrary to law or regulation, or which wouldsubject any member of the Hays Group to any registration requirement. No representation or warranty, express or implied, is or will be madein relation to the accuracy, fairness or completeness of the information or opinions made in this presentation.
Statements in this presentation reflect the knowledge and information available at the time of its preparation. Certain statements included orincorporated by reference within this presentation may constitute “forward-looking statements” in respect of the Group’s operations,performance, prospects and/or financial condition. By their nature, forward-looking statements involve a number of risks, uncertainties andassumptions and actual results or events may differ materially from those expressed or implied by those statements. Accordingly, noassurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement.Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends oractivities will continue in the future. No responsibility or obligation is accepted to update or revise any forward-looking statement resulting fromnew information, future events or otherwise. Nothing in this presentation should be construed as a profit forecast.
This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares in theCompany, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract orcommitment or investment decision relating thereto, nor does it constitute a recommendation regarding the shares of the Company or anyinvitation or inducement to engage in investment activity under section 21 of the Financial Services and Markets Act 2000. Past performancecannot be relied upon as a guide to future performance. Liability arising from anything in this presentation shall be governed by English Law,and neither the Company nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise)for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.Nothing in this presentation shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.
2
AGENDA
OPERATING REVIEW ALISTAIR COX, CHIEF EXECUTIVE
FINANCIAL REVIEW PAUL VENABLES, FINANCE DIRECTOR
CURRENT TRADING PAUL VENABLES, FINANCE DIRECTOR
STRATEGY UPDATE ALISTAIR COX, CHIEF EXECUTIVE
APPENDICES
1
2
3
4
5
3
2017 HAS BEEN A MILESTONE YEAR WITH RECORD INTERNAT IONAL FINANCIAL PERFORMANCE & FIRST SPECIAL DIVIDEND
Sector-leading financial efficiency
Maximising financial performance
Further building diversification
� Profits above £200m for the first time since 2008, at £211.5m� All time record levels of International net fees an d profits� France the first of our Future Material Profit Driv ers to deliver over £10m
� Maintained sector leading 22% Conversion Rate*� Built our strongest balance sheet: closing net cash of £112m � Propose increase to full-year core dividend of 11% to 3.22p/share or £46.7m � Propose payment of our first special dividend of 4. 25p/share or £61.6m
Our focus remains on… We have delivered…
* Conversion Rate is the conversion of net fees into operating profit.
� 75% of net fees and 80% of operating profit generat ed outside of UK� Temp & Contracting now c.60% of Group net fees� Non-UK consultant headcount up 16% (Germany +24%; A ustralia +15%)
5
Net Fees £230.9m +9%
Op Profit £69.3m +10%
Conversion rate 30.0% 150bp
Consultants** 1,336 10%
ACCELERATION OF GROWTH IN AUSTRALIA; ASIA MIXED BUT STABLE OVERALL
Australia & NZ (net fees: £180.7m; operating profit : £62.8m)� Further strong net fee growth +11%*, with Temp (66% of net
fees) +13%* and Perm +8%� Broad-based growth across all Australian states and most
specialisms. Net fees in New Zealand down 4%*� Standout performances from Australia IT +23%* and C&P
+13%*, with public sector +11%* and private sector +14%*� Rapid investment in headcount to support growth, up 12%
Asia (net fees: £50.2m; operating profit: £6.5m)� Subdued, but overall stable with net fees flat*� Strong growth in China and Hong Kong, both up 15%*� Japan (7)%* and Singapore (24)%* in part due to tough
trading conditions in banking-focused markets� Targeted investment in consultant headcount, up 7% overall
Headline APAC net fees
LFL* growth Year to 30 June 2017
* LFL (‘like-for-like’) growth represents organic growth at constant currency. Conversion rate represents percentage movement versus prior year. ** Consultant numbers represent closing numbers, and percentage changes are 30 June 2017 closing number versus 30 June 2016 closing number.
APAC
1011
£146m£210m
£242mFY 17£176mFY 16
FY 15 £179m
45%Perm
55%Temp
24%of netfees
6
£231m
Germany (net fees: £230.3m)� Record net fees and operating profits. Net fee growth of 14%*,
operating profit up 9%* to £80.5m
� Strong 13%* growth in Temp/Contracting, driven by IT (+15%*) and Engineering (+14%*). Excellent 27%* growth in Perm
� Within other specialisms, A&F +14%*, Life Sciences +23%*� Further aggressive headcount investment, up 24% y-o-y to
over 1,500 consultants
Rest of the division (net fees: £240.5m)
� Strong broad-based growth driven by Continental Europe, where 11 countries grew by over 10%*
� Further operating profit improvement, including 34%* operating profit increase in France to over £10m
� Americas solid, including US +7%* and Canada +5%*
RECORD PERFORMANCE IN GERMANY, STRONG BROAD-BASED GROWTH IN REST OF THE DIVISION
Headline CE&RoW net fees
* LFL (‘like-for-like’) growth represents organic growth at constant currency. Conversion rate represents percentage movement versus prior year. ** Consultant numbers represent closing numbers, and percentage changes are 30 June 2017 closing number versus 30 June 2016 closing number.
CE&RoW
1011
£168m£220m
£267mH1 13 £140m£134m£133mFY 15
FY 16FY 17
£314m£363m
LFL* growth Year to 30 June 2017
38%Perm
62%Temp
49%of netfees
Net Fees £470.8m +12%
Op Profit £100.7m +7%
Conversion rate 21.4% (30)bp
Consultants** 3,600 19%
7
£471m
Net Fees £252.9m (7%)
Op Profit £41.5m (21%)
Conversion rate 16.4% (280)bp
Consultants** 1,948 (4%)
TOUGH BUT SEQUENTIALLY STABLE; EXITING THE YEARWITH MODEST SIGNS OF IMPROVEMENT IN PRIVATE SECTOR
Headline UK&I net fees
* LFL (‘like-for-like’) growth represents organic growth at constant currency. Conversion rate represents percentage movement versus prior year. ** Consultant numbers represent closing numbers, and percentage changes are 30 June 2017 closing number versus 30 June 2016 closing number.
UK & IRELAND
1011
12
£244m£242m
£225m
Net fees down 7%* in challenging trading conditions
� Temp net fees down 8%*, Perm down 6%*
� UK regional business more resilient than London. Scotland & NI (1)%, South West & Wales (4)%. Ireland +14%*
� Early action in FY16 to reduce costs; headcount down a further 4% in FY17 to best defend financial performance
Private sector net fees down 5%*: 74% of UK&I net f ees
� Post-Referendum step-down in Perm, quickly stabilised and exited the year with modest underlying growth
� Overall for the year: A&F (3)%*, C&P (3)%*, IT (12)%*
Public sector net fees down 13%*: 26% of UK&I net f ees
� Tough market conditions throughout the year
� Education (12)%*, C&P (10)%*, IT (21)%*
FY 17 £253m£272m£272m
FY 16FY 15
LFL* growth Year to 30 June 2017
44%Perm
56%Temp
27%of net fees
8
2018 ASPIRATIONS: WE REMAIN ON TRACK AFTER 4 YEARS
Other Countries (£m) Operating Profit*
25 35 45
ASSUMED 5YR NET FEE CAGR: +8% to +12%
* Nothing in this presentation should be construed as a profit forecast. There is no certainty over timing or probability of achieving these objectives and they are dependent on a variety of assumptions and factors both Hays specific and otherwise. The 2018 Operating Profit ranges are after Group central cost allocation but before allocation of CERoW & Asia Pac divisional overheads (assumed to be £15m per annum) and assume constant rates of exchange as of 30 September 2013. All reported profit numbers are shown on a headline basis.
FY18 ORIGINAL FX
FY 2013
FY 2017 41
Australia & NZ (£m) Operating Profit*
ASSUMED 5YR NET FEE CAGR: +1% to +5%
FY 2013
FY 2017 6364
FY18 ORIGINAL FX 60 70 80
UK & Ireland (£m) Operating Profit*
45 60 75
ASSUMED 5YR NET FEE CAGR: +5% to +9%
FY 2013
FY18 OBJECTIVE
FY 2017 42
Germany (£m) Operating Profit*
ASSUMED 5YR NET FEE CAGR: +7% to +12%
FY 2013
FY 2017FY18 ORIGINAL FX
8158
85 100 115
6
12
9
GOOD OVERALL GROUP FINANCIAL PERFORMANCENet fees Operating profit**
£125.5m
£140.3m£724.9m
£719.0m
Basic earnings per share
5.14p
6.13p
8.48p
9.66p
7.44p
Net fees £954.6m
6% increase*
EPS9.66p
14% increase
Operating profit £211.5m
1% increase*
* LFL (‘like-for-like’) growth is organic growth at constant currency.** Continuing operations only.
£164.1m
£181.0m
FY 13
FY 14
FY 15
FY 16 £810.3m
£764.2m
11
FY 13
FY 14
FY 15
FY 16
FY 14
FY 15
FY 16
FY 17
FY 13
PROPOSED INCREASE IN FULL-YEAR CORE DIVIDEND OF 11% TO 3.22p, WITH 3.0X COVER, AND FIRST SPECIAL DIVIDEND OF 4.25p
FY 17 £954.6m FY 17 £211.5m
GOOD GROUP FINANCIAL PERFORMANCE
Income statement**
Year ended 30 June 2017£m
2016£m
Actual growth
LFL* growth
Turnover 5,081.0 4,231.4 20% 8%
Net fees 954.6 810.3 18% 6%
Operating profit 211.5 181.0 17% 1%
Net finance cost (6.9) (8.0)
Profit before tax 204.6 173.0 18%
Tax (65.5) (51.9)
Profit after tax 139.1 121.1 15%
* LFL (‘like-for-like’) growth is organic growth at constant currency. ** Continuing operations only.
EXCHANGE RATE MOVEMENTS INCREASED NET FEES AND OPER ATING PROFIT BY £93.7 MILLION AND £28.9 MILLION RESPECTIVELY
12
£181.0m
£28.9m£6.1m £(11.1)m
UK&IAPAC CEROWFY16EBIT
£6.6m
OPERATING PROFIT OVER £200M FOR THE FIRST TIME SINCE 2008:DRIVEN BY EXCHANGE RATE GAINS AND INTERNATIONAL PRO FIT GROWTH
FY17EBIT
£211.5m
INTERNATIONAL PROFIT GROWTH
13
£’m
150
250
FX IMPACT
INTERNATIONAL PROFIT GROWTH MORE THAN OFFSETS UK DE CLINE
Net Fees £470.8m 12%*
Op Profit £100.7m 7%*
� Record performance in Germany with net fees up 14%* to £230.3m
� Rest of division grew 11%*, with 8 countries growing by over 20%*, and delivered 5%* increase in trading profit
STRONG GROWTH IN INTERNATIONAL BUSINESS OFFSETS UK DECLINE
Asia Pacific
Performance by region
Continental Europe & RoW
24%of netfees
49% of netfees
Net Fees £230.9m 9%*
Op Profit £69.3m 10%*
� 11%* growth in Australia & NZ led by strong temp/contracting up 13%*; operating profit up 14%*
� Asia subdued, with flat* net fees and operating profit (18)%* as banking markets remained tough
United Kingdom & Ireland
27% of netfees
Net Fees £252.9m (7)%*
Op Profit £41.5m (21)%*
� Trading conditions tough but sequentially stable since Nov. ’16. Net fees (7)%*, primarily in H1, and operating profit (21)%*
� Exited the year with modest underlying growth in private sector
14* LFL (‘like-for-like’) growth is organic growth at constant currency.
GOOD GROWTH IN TEMP FEES, SOLID IN PERM
Permanent placement business
£393.9m(41% of net fees)
Temporary placement business
£560.7m(59% of net fees)
* Growth rates and margin change are for the year ended 30 June 2017 versus year ended 30 June 2016, on a like-for-like basis which is organic growth at constant currency.
Review of Group Permanent and Temporary Businesses*
** The underlying Temp gross margin is calculated as Temp net fees divided by Temp gross revenue and relates solely to Temp placements in which Hays generates net fees and specifically excludes transactions in which Hays acts as agent on behalf of workers supplied by third party agencies and arrangements where the Company provides major payrolling services.
49% Temp52% Temp
Split of net fees
FY 16FY 15
58% Temp
58% Temp
FY 17
� 8% volume increase driven primarily by Germany and Australia
� Mix/hours worked increased 1%
� Underlying Temp margin** down 30bps, primarily due to mix and a reduction in Temp margin in our Australia and UK markets
� Volumes increased by 4% as strong increases in CE&RoW offset decreases in the UK&I
� Average Perm fee broadly flat
7% net fee growth
8% volume increase
1% increase in mix/hours
(30) bps underlying margin decrease**
4% net fee growth
4% volume increase
0% average Perm fee increase
15
59% Temp
THE AUSTRALIAN DOLLAR AND EURO REMAIN SIGNIFICANT F X TRANSLATION SENSITIVITIES FOR THE GROUP
Year ended 30 June 2017 Average Closing
Australian $ 1.6836 1.6952
Euro € 1.1642 1.1406
Impact of a one cent change per annum Net fees Op pr ofit
Australian $ +/- £1.0m +/- £0.4m
Euro € +/- £3.2m +/- £1.1m
Key FX rates and sensitivities
� FX rates at 29 August 2017: £1 / AUD1.6327; £1 / €1.0764
� Retranslating the Group’s full year operating profit at current exchange rates would increase the actual result by c.£12m from £211.5m to c.£223m
16
WE HAVE MAINTAINED OUR SECTOR-LEADING CONVERSION RA TE*
1717
EXPECT CONVERSION RATE TO RETURN TO GROWTH IN FY18 & BEYOND
Conversion Rate* FY17 FY16
APAC 30.0% 28.5%
CE&RoW 21.4% 21.7%
UK&I 16.4% 19.2%
GROUP 22.2% 22.3%
* Represents the conversion of net fees into operating profit.
� OVERALL GROUP CONVERSION RATE BROADLY FLAT AT 22.2%
� INCREASE IN APAC DRIVEN BY ACCELERATING GROWTH AND STRONG LEVERAGE IN AUSTRALIA
� MODEST DECLINE IN CE & RoW DUE TO SIGNIFICANT HEADCOUNT INVESTMENT AND 3 LESS WORKING DAYS IN GERMANY
� REDUCTION IN UK PARTIALLY MITIGATED BY EARLY PROACTIVE ACTION IN FY16 TO REDUCE COST BASE
� We expect the net finance charge for the year ending 30 June 2018 to be c.£5 million
18
Taxation
Underlying effective tax rate 32.0% 30.0%
INCREASE IN ‘ETR’ TO 32.0% DRIVEN BY HIGHER INTERNA TIONAL PROFITS VERSUS LOWER UK PROFITS Finance charge and taxation
Year ended 30 June 2017£m
2016£m
Finance charge
Net interest charge on debt (2.1) (2.9)
Interest unwind of discount on Acquisition Liability (non-cash) (1.1) (0.9)
IAS 19 pension charge (non-cash) (2.4) (3.9)
PPF levy (0.5) (0.3)
Other interest payable (0.8) -
Net finance charge (6.9) (8.0)
� Higher profitability in Germany and Australia increases the Group effective tax rate to 32.0%.
� ETR for FY18 will be driven by the mix of profits. We currently expect the rate to be 31.5%.
14% INCREASE IN EARNINGS PER SHARE
Basic earnings per share (EPS)
* Number of shares used for basic EPS calculation purposes excludes shares held in Treasury.
Year ended 30 June 2017 2016 Change
Basic earnings £139.1m £121.1m 15%
Weighted average number of shares* 1,440.7m 1,428.4m
Basic earnings per share 9.66p 8.48p 14%
Memo
Shares in issue* at 30 June 2017 and 29 August 2017 1,443m
Basic EPS
1110
125.19p**
3.25p**H1 12 7.72pH2 12H1 13
5.19p5.47pFY 17 9.66p
7.44p8.48pFY 16
FY 15
19
STRONG UNDERLYING CASH PERFORMANCE
£211.5m
£33.7m
£(28.2)m
£(68.2)m £(1.9)m
£146.9m
Operating profit to free cash flow conversion Uses of cash flow
Operating profit
Non-cash items
Working capital
Taxpaid
Interestpaid
Free cash flow
Operating cash flow £217.0m (FY16: £159.3m)
Cash from operations
H1 13 £162.2m
Capex guidance for FY18 is c. £20m and depreciation & amortisation guidance is c. £19mUS$18.5m payment in FY18 for remaining 20% equity i n Veredus Corp.
£78.1m £97.3m£159.3mFY 16
FY 17
FY 15 £189.8m
£217.0m
Increased net cash £74.8m
Capex £21.4m
Pensions £14.8m
20
Dividend £42.6m
Other £(6.7)m
£m30 June
201730 June
2016
Goodwill & intangibles 241.9 242.0
Property, plant & equipment 24.0 19.8
Net deferred tax 23.3 23.9
Net working capital* 231.7 190.6
Derivative financial instruments - 6.6
Tax liabilities (23.5) (27.1)
Retirement benefit obligations (0.2) (14.3)
Acquisition Liabilities (13.6) (11.2)
Other provisions & liabilities (8.8) (9.3)
474.8 421.0
Net cash/(debt) 111.6 36.8
Net assets 586.4 457.8
STRONGEST BALANCE SHEET
Balance sheet analysis
* Movement in net working capital in the balance sheet is calculated at closing exchange rates. For cash flow purposes, the movement in working capital is calculated at average exchange rates.
� Good underlying working capital management with debtor days at 39 (FY16: 37 days)
� Increase primarily due to expansion of Temp/Contracting business in Germany and Australia
NET WORKING CAPITAL
� Decrease primarily due to an increase in asset values together with company contributions offset by a change in financial assumptions (decrease in discount rate and increase in inflation rate).
RETIREMENT BENEFITS
21
22
FURTHER MATERIAL INCREASE IN CASH POSITION
** Covenant ratios are shown on a pro-forma basis for 12 months ended 30 June 2017.
Closing net cash/(net debt) £m
Free cash flow*
H1 13 £111.8m
£52.7m£62.2m
* Free cash flow is defined as cash flow before dividends, additional pension contributions, capital expenditure, acquisitions and exceptional items.
FY 17 £146.9m
FY 15FY 16 £114.0m
£141.0m
Jun 15Jun 12 Jun 17Jun 13 Jun 14
(132.9)
36.8
(30.7)
(105.2)
NET DEBT ELIMINATED IN FY16� FY17 ended with net cash of £111.6m
£210M BANK FACILITY IN PLACE� expires April 2020
EBITDA / INTEREST RATIO: 65X**� debt covenant: > 4.0
NET DEBT / EBITDA RATIO: N/A� debt covenant: < 2.5
(62.7)
22
Jun 16
111.6
TOTAL DIVIDEND PAYOUT OF £108.3M FOLLOWING FIRST SP ECIAL DIVIDEND OF £61.6M
� Target core dividend cover of 2.0x to 3.0x Group EP S� Increase of 11% in full year core dividend to 3.22p per share� Cash cost of proposed FY17 core dividend £46.7m, co ver of 3.0x
EXCESS CASH RETURNS POLICY
FREE CASH FLOW PRIORITIES
CORE DIVIDEND POLICY
� Maintain a net cash position of c.£50m� Assuming a positive outlook, any free cash flow gen erated over
and above this position will be distributed to shar eholders via special dividends, or other appropriate methods, an nually
� First special dividend of 4.25p per share, in line with policy
� Fund Group investment and development� Maintain a strong balance sheet� Deliver a core dividend which is sustainable, progr essive and
appropriate
23
The final dividend and special dividend will be pai d, subject to shareholder approval, on 17 November 2017 to shareholders on the register on 6 October 2017
24* LFL (‘like-for-like’) growth is organic growth at constant currency.
FINANCIAL SUMMARY
RECORD LEVELS OF INTERNATIONAL PROFIT
� Strong 10%* profit growth in APAC driven by excellent profit growth in Australia � 7%* profit growth in CE&RoW, as we continued to invest to drive further growth; decline
in UK profit partially mitigated by early cost base adjustments� Maintained sector-leading conversion rate of 22.2%
STRONG UNDERLYING CASH PERFORMANCE; FIRST SPECIAL D IVIDEND� 103% conversion of operating profit to operating cash flow� Year-end net cash position of £111.6m� Core dividend increased by 11% to 3.22p, first special dividend of £61.6m
GOOD, BROAD-BASED NET FEE GROWTH
� Strong 12%* growth in CE&RoW, record net fee performance in Germany, up 14%* � Australia growth accelerated to 13%*; UK (7)% but broadly stable since November ‘16
24
SUPPORTIVE CONDITIONS IN VAST MAJORITY OF INTERNATI ONAL MARKETS; UK REMAINS STABLE
Current trading conditions by region
APAC
UK&I
CE & RoW
� Conditions remain subdued, but broadly sequentially stable� Continuation of early signs of modest improvement in privat e sector markets� Public sector remains tough
� Strong activity levels in Australia across all stat es and most specialisms� Growth in Asia is good
� Growth remains strong overall, despite tough compar ators� Strong growth in Germany and across the rest of Eur ope� More mixed conditions in the Americas
26In FY18 our Germany business will have 3 fewer working days compared to FY17, all of which relate to H1. We estimate that this will have a negative impact on profit of c.£4 million.
28
WE HAVE CLEAR, WELL ESTABLISHED STRATEGIC PRIORITIE S TO DELIVER OUR LONG-TERM AIMS
GENERATE, REINVEST & DISTRIBUTE
MEANINGFUL CASH RETURNS
BUILD CRITICAL MASS & DIVERSITY
ACROSS OUR GLOBAL PLATFORM
MATERIALLY INCREASE &
DIVERSIFY GROUP PROFITS
INVEST IN PEOPLE, TECHNOLOGY,
COLLABORATIONS & INNOVATION
29
INVESTOR DAY 2017: 9 NOVEMBER, LONDON 12:00pm – 6:00 pm
AT OUR INVESTOR DAY, WE WILL DEMONSTRATE OUR KEY AR EAS OF FOCUS & DETAIL OUR ASPIRATIONS FOR OUR FUTURE POTEN TIAL
We will specifically detail:• Our aspiration to deliver further material increase s in earnings over the next 5 years• Our strategies and areas of focus to deliver those aspirations• The potential cash generation implications of deliv ering on those aspirations
We will clearly demonstrate:• The key success factors that we focus on to drive o ur business • How we are responding to the evolving needs of clie nts and candidates• How we are utilising data, technology and innovatio n to preserve and enhance our
core business• The detail of where our future growth will be deliv ered, including doubling our
German profits over 5 years
Attendees will have the opportunity to:• Meet and interact with over 20 senior Hays operator s from around the world• See demos of a range of the tools and systems we ha ve in place in our business
Year ended 30 June 2017£m
2016£m
LFL growth*
Germany 80.5 63.2 9%
Rest of CE&RoW (23 countries) 35.6 28.3 5%
CE&RoW Central Costs (15.4) (12.8) 15%
CE&RoW Operating Profit 100.7 78.7 7%
FURTHER PROGRESS IN CE&RoW (EX-GERMANY) PROFITABILI TY
* LFL (‘like-for-like’) growth represents organic growth at constant currency.
Operating profit split in Continental Europe & RoW – HEADLINE
� Germany delivered operating profit LFL growth of 9%* despite significant investment in headcount and the negative impact of three less working days in the year. Excellent conversion rate of 35%
� A good performance elsewhere in CE&RoW where market conditions were strong and we invested in headcount while controlling our cost base
33
LIKE-FOR-LIKE SUMMARY
* LFL (‘like-for-like’) growth is organic growth at constant currency.
Year ended 30 June 2016£m
FX impact£m
Organic£m
2017£m
LFL* growth
Net fees
Asia Pacific 176.1 36.5 18.3 230.9 9%
Continental Europe & RoW 362.5 56.1 52.2 470.8 12%
United Kingdom & Ireland 271.7 1.1 (19.9) 252.9 (7%)
810.3 93.7 50.6 954.6 6%
Operating profit
Asia Pacific 50.2 13.0 6.1 69.3 10%
Continental Europe & RoW 78.7 15.4 6.6 100.7 7%
United Kingdom & Ireland 52.1 0.5 (11.1) 41.5 (21%)
181.0 28.9 1.6 211.5 1%
34
H2 FY17 v H1 FY17: ANALYSIS BY DIVISION
* LFL (‘like-for-like’) growth is organic growth at constant currency.Note: H1 17 is the period from 1 July 2016 to 31 December 2016. H2 17 is the period from 1 January 2017 to 30 June 2017.
Net fee growth (LFL*) versus same period last year
Q1 17 Q2 17 H1 17 Q3 17 Q4 17 H2 17 FY 17
Asia Pacific 5% 7% 6% 12% 11% 11% 9%
Continental Europe & RoW 13% 8% 10% 18% 11% 15% 12%
United Kingdom & Ireland (10%) (10%) (10%) (4)% (5)% (4)% (7%)
Operating profit growth (LFL*)versus same period last year
Asia Pacific 12% 8% 10%
Continental Europe & RoW 6% 8% 7%
United Kingdom & Ireland (29%) (14)% (21%)
Conversion rate (%)*operating profit as % of net fees
Asia Pacific 29.8% 30.2% 30.0%
Continental Europe & RoW 21.4% 21.4% 21.4%
United Kingdom & Ireland 14.4% 18.4% 16.4%
35
Relative size Country / sub region(ranked by net fees)
Net Fees Net fee growth(LFL*)
# of offices # of consultants
Germany £230.3m 14% 19 1,503
France £55.4m 16% 17 365
Benelux £34.8m 9% 10 253
USA £32.2m 7% 12 200
Switzerland £21.2m - 4 105
Canada £17.2m 5% 8 138
Other** (16 countries) £79.7m 14% 32 1,036
102 3,600
CONTINENTAL EUROPE & ROW PERFORMANCE BY COUNTRY
* Percentages represent LFL (‘like-for-like’) growth which is organic growth at constant currency for 12m ended 30 June 2017 versus 12m ended 30 June 2016. ** Other represents financial results for remaining CE&RoW countries.Note: Pie charts represent net fees by country / sub region. 36
CONSULTANT HEADCOUNT
Change in headcount As at June2017
As at Dec
2016
Changesince
Dec 2016
As at June2016
Changesince
June 2016
Asia Pacific 1,336 1,270 5% 1,210 10%
Continental Europe & RoW 3,600 3,358 7% 3,034 19%
United Kingdom & Ireland 1,948 1,978 (2%) 2,024 (4%)
Group 6,884 6,606 4% 6,268 10%
37
OFFICE NETWORK
* Offices opened is shown net of closed and merged offices.
Number of offices 30 June 2016
Opened/(Closed)*
30 June 2017
Asia Pacific 49 1 50
Continental Europe & RoW 103 (1) 102
United Kingdom & Ireland 100 (2) 98
Total 252 (2) 250
38
TRADING DAYS
Number of trading days* H1 H2 Year H1 H2 Year
Year ended 30 June 2016 129 125 254 131 123 254
Year ended 30 June 2017 128 125 253 128 123 251
Year ending 30 June 2018 127 125 252 125 123 248
* UK and Germany only. 39
UK Germany
THE SCALE AND SCOPE OF OUR BUSINESS IS UNIQUE
LINKEDIN FOLLOWERS
HITS ON HAYS WEBSITES 1.8 million27 million
CV’S RECEIVEDINTERVIEWS PER MONTH7 million 45,000
PERM PLACEMENTS70,000TEMP ASSIGNMENTS240,000
WORLDWIDE IN FY17 WE FILLED OVER 1,000 JOBS EVERY W ORKING DAY
FY17 STATISTICS
40
HAYS IS A LEADING GLOBAL EXPERT IN QUALIFIED, PROFE SSIONAL AND SKILLED RECRUITMENT
GENERALIST RECRUITMENT (mostly blue collar)
EXECUTIVE SEARCH (head hunting)
PROFESSIONAL RECRUITMENT (mostly white collar)
� Contingent fee model� Focus on high-skilled roles� Clear structural growth markets
42
A PROVEN TRACK RECORD OF ORGANIC GROWTH
New country & specialism entries
33 COUNTRIES 20 SPECIALISMS
Pre 1990
Early 1990s
Late 1990s
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Brazil
China, HK
Organic Acquisition
A&F C&P
FranceCzech Re.
Netherlands
Portugal
Canada
Belgium
Germany Switzerland
Spain
Austria
Sweden Poland
Australia
N.Zealand
Singapore
Italy UAELuxembourg
UK
Key:
Legal
Banking Fin Services
EducationContact Ce.
Engineering
HR
Sales & Ma.
Executive
Retail
Healthcare
Purchasing
IT
Japan Life Sciences
Energy O&G
Hungary Denmark
Ireland
India Russia
Mining
Mexico USA
Colombia
Chile Malaysia
Office Pros
Telecoms
43
Top 3 position Top 5 positionMarket Leader Other
OUR WORLDWIDE PLATFORM PROVIDES A PIPELINE OF FUTUR E GROWTH OPPORTUNITIES & LEADERSHIP IN ALL CORE MARKETS
Australia (#1)BelgiumBrazilFranceGermany (#1)Hong KongHungaryIreland (#1)ItalyJapan (#1)
MalaysiaNew Zealand (#1)Poland (#1)Portugal (#1)RussiaSingaporeSpainSwedenSwitzerlandUK (#1)
AustriaCanadaChileChinaColombiaCzech Rep
DenmarkLuxembourgMexicoNetherlandsUAE
Hays market positioning*
TOP 3
TOP 5
* Market position is based on Hays estimates. List of countries only includes those with top 5 market positions and excludes newly opened countries.
The largest international specialist recruitment bu siness in the world
44
OUR STRATEGIC FOCUS IS ON BUILDING SCALE IN KEY MAR KETS
� Market leaders in 8 countries including: UK, Australia, Germany
� Additionally, top 3 market position in 12 countries
� Opened in 5 new countries since 2010: US, Mexico, Colombia, Chile, Malaysia
� Leading market positions across professional and technical areas
� Long established market presence across all key specialist areas
� Balance of specialisms leveraged to different stages of the economic cycle
HAYS COUNTRIES HAYS SPECIALISMS
33
2002
2017
11
20
2002
2017
10
45
MARKET LEADING BREADTH AND DEPTH OF PLATFORMDivisional operating review
UK
Irel
and
Aus
tral
ia
New
Zea
land
Hon
g K
ong
Chi
na
Sin
gapo
re
Japa
n
Mal
aysi
a
Ger
man
y
Fra
nce
Bel
gium
Net
herla
nds
Luxe
mbo
urg
Spa
in
Por
tuga
l
Cze
ch R
ep
Hun
gary
Sw
itzer
land
Aus
tria
Sw
eden
Den
mar
k
Pol
and
UA
E
Italy
Bra
zil
Indi
a
Rus
sia
Mex
ico
Col
ombi
a
Chi
le
Can
ada
US
A
Accountancy & FinanceConstruction & PropertyInformation TechnologyLife SciencesSales & MarketingBanking & Capital MarketsContact CentresEducationEngineering & ManufacturingExecutiveFinancial ServicesHealth & Social CareHuman ResourcesLegalOffice ProfessionalsEnergy, Oil & GasPurchasingRetailResources & MiningTelecoms
TotalOffices* 94 4 34 4 1 4 1 4 2 19 17 7 2 1 5 2 1 1 4 1 1 1 6 1 4 3 1 2 1 1 1 8 12 250
33 COUNTRIES20 SPECIALISMS
* Office numbers as at June 2017. 46
… and leverages the Group to economic improvement
THE STRENGTH OF OUR MODEL IS KEY TO DELIVERING FOR CLIENTS AND DRIVING FINANCIAL PERFORMANCE THROUGH THE CYCLE
… a resilient financial performance in tougher economic times…
…delivers the best solutions for clients & candidates…
… the best people, sector leading technologyand a world class brand…
Unrivalled scale, balance and diversity…
47
� Exposure to structural growth and more mature areas
� Long-established across technical, white-collar spe cialisms
� Unmatched breadth and scale of operations globally
� Global connectedness of operations is key
� 33 countries around the world, up from 11 in 2002
� Rapid start-up phase now largely completed
� 20 specialist areas across professional / technical skills
� Focus on building scale in key specialisms in core markets
� Temporary / Contracting / Permanent
� Rolling out IT Contractor model to selected markets
THERE ARE 5 PILLARS WHICH UNDERPIN THE STRENGTH OF OUR BUSINESS MODEL
1. BALANCE
2. SCALE
3. GEOGRAPHIC DIVERSIFICATION
4. SECTORAL DIVERSIFICATION
5. CONTRACT FORM DIVERSIFICATION
BALANCE, SCALE AND DIVERSIFICATION ARE WHAT SETS TH E HAYS BUSINESS MODEL APART AND DRIVES OUTPERFORMANCE
48
LEVERAGING OUR BEST-IN-CLASS TECHNOLOGY PLATFORM AN D BRAND
OPERATIONAL EFFECTIVENESS
BEST CUSTOMER SERVICE
DIGITALLY-ENABLED CONSULTANTS
1
2
3
OP
ER
ATIO
NA
L E
FF
EC
TIV
EN
ES
S
THE BEST CANDIDATES TO CLIENTS, FASTER THAN ANYONE ELSE
CROSS SYSTEM AWARENESS
SEARCH CAPABILITIES
GLOBAL DIGITAL PLATFORM
OPERATIONAL INTELLIGENCE
MANAGEMENT INFORMATION
AUTOMATED ATS VMS INTERFACES
DIGITAL CV PARSING
AUTOMATIC JOB BOARD
POSTINGS
Global Database
Internally integrated & externally connected
Delivering outcomes to drive growth
49
A BALANCED PORTFOLIO
Net Fees by type*
* Indicative purposes only based on information for the 12 months ended June 2017.
** Major specialisms within Other include: Banking Related (7%), Life Sciences (5%), Sales & Marketing (4%) and Education (3%).
Spot~75%
Recruitment contracts
~25%
Public sector15%
Private sector85%
Top 40~15%
30,000 customers
~85%
Other**33%
Accountancy & Finance
15%
Construction & Property
15%
IT21%
Temp59%
Perm41%
APAC24%
CE&RoW49%
UK&I27%
Office Sup. 7%
Engineering 9%
50
HK, Singapore (2%)
* Market penetration represents the percentage of skilled and professional recruitment that is outsourced, based on Hays’ management estimates.
Net fees by market maturity* (percentages in table show % of Group net fees in FY17)
ESTABLISHED:>70% penetration30% of Group net fees(6)% LFL net fee growth
DEVELOPING:>30-70% penetration
28% of Group net fees+12% LFL net fee growth
EMBRYONIC: <10% penetration5% of Group net fees+8% LFL net fee growth
EMERGING:10-30% penetration37% of Group net fees
+12% LFL net fee growth
UK & Ireland (27%)
Australia & NZ (19%) France, Netherlands,
Canada (9%)
Japan, China, Malaysia (3%)
Latin America, Russia, India (2%)
Germany (24%)
Other CE&RoW (11%)
BALANCED BUSINESS MODEL: WELL DIVERSIFIED IN STRUCTURAL AND CYCLICAL MARKETS
USA (3%)
51
39%
51%
10%
Net fees FY17
£954.6m
Information TechnologyEngineering
Sales & Marketing
Candidate shortagesClients investing
Continued investmentDrive growth
STRONG: GROWTH >10%* TOUGH: DECLINE <0%*
BankingUK Education
Oil & Gas
Short term challengesLong term opportunity
Defend market position Reduce costs
SOLID / GOOD:GROWTH 0-10%*
Accountancy& FinanceConstruction
& PropertyLife Sciences
Mixed conditions but opportunities
available
Selective investmentMaintain position
* Represents LFL (‘like-for-like’) growth rates in the 12 months to 30 June 2017. Listed specialisms are examples only and are not exhaustive.
BALANCED BUSINESS MODEL: SECTOR DIVERSITY EXPOSES U S TO GROWTH OPPORTUNITIES AND PROTECTS OUR BUSINESS
52
Asia
Hays FY17 Net Fees by geography
0% 100%Group net fees
Temp Perm
Rest of CE&RoW UK & Ireland Australia & New Zealand Germany
86%
61%44% 34%
13%
87%
66%56%
39%
14%
BALANCED BUSINESS MODEL: SECTOR-LEADING EXPOSURE TO KEY TEMP/CONTRACTOR MARKETS, PERM-GEARED IN HIGH GROWTH AREAS
53
#1 market position*
Net fees by specialism
Perm : Temp
Private : Public sector
Net fees by countryNet fees: £230.9m
Operating profit: £69.3m
Conversion rate: 30.0%
Countries: 7
Consultants: 1,336
Offices: 50
Note: Private:Public sector and Temp:Perm split is based on net fees for 12 months ended 30 June 2017.* Market position is based on Hays estimates.
Diverse sector exposure Asia structural opportunity
Net fees by specialism Net fees by country
ASIA PACIFIC REPRESENTS 24% OF GROUP NET FEES WITH AUSTRALIA REPRESENTING 72% OF DIVISIONAL NET FEES
45%%
55%
74% 26%
22%
13%
12%10%
10%
6%4%
23%
Const. & Property Account. & FinanceIT Office SupportBanking Sales & MarketingHR Other
72%
8%
6%5%
Australia JapanNew Zealand ChinaHong Kong (4%) Singapore (3%)Malaysia (2%)
55
Net fees: £470.8m
Operating profit: £100.7m
Conversion rate: 21.4%
Countries: 24
Consultants: 3,600
Offices: 102
Note: Private:Public sector and Temp:Perm split is based on net fees for 12 months ended 30 June 2017.
Structurally developing markets Focused on core specialisms Broad coverage
CONTINENTAL EUROPE & RoW REPRESENTS 49% OF GROUP NE T FEES AND 48% OF GROUP PROFITS
Temp : Perm
Private : Public sector
62% 38%
Net fees by specialism Net fees by countryNet fees by specialism Net fees by country
97% 3%
32%
19%13%
9%
7%
5%
15%
IT EngineeringAccount. & Finance Const. & PropertyLife Sciences Sales & Market ingOther
49%
12%
7%
7%
4%4%
17%
Germany France
Benelux USA
Switzerland Canada
Other
56
Net fees by specialism Net fees by regionNet fees: £252.9m
Operating profit: £41.5m
Conversion rate: 16.4%
Consultants: 1,948
Offices: 98
Note: Private:Public sector and Temp:Perm split is based on net fees for 12 months ended 30 June 2017.* Market position is based on Hays estimates.
#1 market position* Diverse sector exposure Nationwide coverage
UK & IRELAND REPRESENTS 27% OF GROUP NET FEES
Temp : Perm
Private : Public sector
56% 44%
74% 26%
22%
20%
11%10%
9%
8%
20%
Account. & Finance Const. & PropertyOffice Support EducationIT Banking & Fin. Serv.Other
34%
27%
17%
10%
8% 4%
London North & ScotlandMidlands & E.Anglia Home CountiesSouth West & Wales Ireland
57
PROFILE OF HAYS AUSTRALIA & NEW ZEALAND
TEMP 66% PERM 34%
19% GROUP NET FEES
911 CONSULTANTS
38 OFFICES
Net fees by specialism Net fees by region
Construction & Property
Acc. & Finance
Office Support IT Other
27% 14% 12% 10% 7% 26%
£181m £63m 35%
NSW Victoria WA
Q’la
nd Other
30% 23% 11% 9% 9% 18%
ACT
Note: All data is presented as of 30 June 2017. * Includes Oil & Gas and Energy.
NET FEES EBIT CONV. RATE
Year ended 30 June 2017
58
Ban
king
Res
&
Min
ing*
4%
HISTORIC PROFILE OF HAYS AUSTRALIA & NEW ZEALAND
134139138179
210182
129
FY16FY15FY14FY13FY12FY11FY08
FY consultant headcount Historic Conversion Rates
Historic headline net fees (£M) Historic headline operating profit (£M)
Note: Historic net fees and historic operating profit shown on a headline basis. For local currency data, please see slide 63. 59
181
FY17FY09 FY10
135163
44444564
8772
49
FY16FY15FY14FY13FY12FY11FY08
63
FY17FY09 FY10
6081
812773704722815706
FY16FY15FY14FY13FY12FY11FY08
911
FY17FY09 FY10
658
1,090
333233364038
FY16FY15FY14FY13FY12FY11FY08
35
FY17FY09 FY10
4450
84341
PROFILE OF HAYS GERMANY
TEMP 87% PERM 13%
24% GROUP NET FEES
1,503 CONSULTANTS
19 OFFICES
Net fees by specialism Net fees by contract type
Note: All data is presented as of 30 June 2017.
IT Engineering
42% 30% 11%
Contracting Temp Perm
62% 25% 13%
£230m £81m 35%NET FEES EBIT CONV. RATE
Year ended 30 June 2017
60
Other Acc. & Finance
17%
HISTORIC PROFILE OF HAYS GERMANY
FY consultant headcount Historic Conversion Rates
Historic headline net fees (£M) Historic headline operating profit (£M)
Note: Historic net fees and historic operating profit shown on a headline basis. For local currency data, please see slide 63. 61
175158164150106
80
FY16FY15FY14FY13FY12FY11FY08
230
FY17FY09 FY10
8863
136
1,2131,088944940
670479
FY16FY15FY14FY13FY12FY11FY08
1,503
FY17FY09 FY10
463452786
636062585238
26
FY16FY15FY14FY13FY12FY11FY08
81
FY17FY09 FY10
3624
363838383633
FY16FY15FY14FY13FY12FY11FY08
35
FY17FY09 FY10
4138 38
HISTORIC PROFILE OF HAYS UK & IRELAND
FY consultant headcount Historic Conversion Rates
Historic headline net fees (£M) Historic headline operating profit (£M)££
Note: Historic net fees and historic operating profit shown on a headline basis. 62
272272246222225242244
FY16FY15FY14FY13FY12FY11FY08
253
FY17FY09 FY10
331
453
2,0242,2032,1571,9292,1582,272
FY16FY15FY14FY13FY12FY11FY08
1,948
FY17FY09 FY10
2,315
3,128
1,934
524626
6(7)411
FY16FY15FY14FY13FY12FY11FY08
42
FY17FY09 FY10
64
137
191711
315
FY16FY15FY14FY13FY12FY11FY08
16
FY17FY09 FY10
1930
(3)
LOCAL CURRENCY – HAYS NET FEES AND OPERATING PROFIT Australia & New ZealandHistoric net fees (AUDm)
Australia & New ZealandHistoric operating profit (AUDm)
GermanyHistoric net fees (EURm)
GermanyHistoric operating profit (EURm)
63
273263245274323293
232
FY16FY15FY14FY13FY12FY11FY08
305
FY17FY09 FY10
293365
90838098
134116
88
FY16FY15FY14FY13FY12FY11FY08
106
FY17FY09 FY10
130
182
234208197182
12491
FY16FY15FY14FY13FY12FY11FY08
268
FY17FY09 FY10
10386
161
85797470
4430
FY16FY15FY14FY13FY12FY11FY08
94
FY17FY09 FY10
4233
62
FURTHER INFORMATION
HEAD OF INVESTOR RELATIONS DAVID [email protected]+44 207 391 6613
For more information about the Group: haysplc.com/investors or @haysplcIR