randstad france

Southern European Insight Day

Barcelona May 2015

Randstad France

Randstad France: an integral part of the employment market

May 2015 2 Randstad France - analyst update Barcelona 2015

staffing

integration

training life at work

skills assessments

perm

• Revenue €2.7 billion

• 750 branches

• 3,600 corporate staff

• 1.8 million contracts

• 58,000 temporary workers each

day

• 21,000 perm recruitments in 2014

• 50,000 clients

2

France overview

May 2015 3

• Estimated threshold for staffing job creation: GDP growth > 1.5%

• 150,000 new applicants per year on the market

Randstad France - analyst update Barcelona 2015

overview of labour market

May 2015 4

Active Population – 56.5%

Type of contracts

Unemployment


the French staffing market

May 2015 5 Randstad France - analyst update Barcelona 2015

• Yet to recover pre-crisis volumes (2007) • 2013 was the second-worst year (after 2009) in recent history • Penetration rate around 2.5% • Current alternative: short-term contracts (x2 in 10 yrs, from 6m to 12m contracts),

even if over-taxed

competitive landscape: the market remains concentrated

May 2015 6

Market share – 2013 (% sales)

Top 5 actors = 79,4% market share


Randstad 2014: ongoing development of business concepts

May 2015 7

• continue to merge branches into large platforms

• manage CICE as price policy and market share losses • renewed focus on Field Steering

• specific focus & outperformance in Perm

• management changes in Q4 2014

• Inhouse still above competition: Staffing mkt flat, Inhouse +14%


regulatory environment and outlook

May 2015 8

• 2014: second year of CICE: concept of tax credit

• “Competitiveness Pact”: additional subsidies, based on low salaries and family tax

• End of 2014: Roll-out of ”CDI-TT”. Weak start (IT, growth market). 20,000 contract commitment made by the industry over 3 years

• In 2017, shift of CICE into sustainable decrease in social charges


Randstad France business mix

May 2015 9

Drivers for change: •Niche segmentation on Professionals •Field steering to focus on SME, despite the huge growth of Inhouse. • Increase of GM after Inhouse transfer (fees) •Acceptance of sharing small part of subsidies to regain market share. •Digitalisation of full process / Virtual branch to serve unusual staffing clients

Revenue mix


Inhouse business model success

10 May 2015 Randstad France - analyst update Barcelona 2015

Inhouse concept and innovation

One of the main blocks of our mid-term strategy Very strong revenue growth in last 2 years. We currently have over 136 inhouse locations Flagship of our differentiation strategy Two focus areas : • reduce network dependency of large accounts, by redeployment on SME segment

• a typical transfer improves profitability of accounts and doubles the market share after 4 months

Continuation of rapid growth, to strengthen our position. Competitors need time to acquire a similar service


Inhouse = 84% of “onsite” branches

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270 actual sites

#450 prospects

9 « competitors »

178 onsite agencies : 150 RIS (84% market share), 17 Adecco Onsite, 11 Inside by Adequat

92 implants : 50 Adecco Onsite, 20 Manpower Onsite, 10 Inside by Adequat

May 2015 Randstad France - analyst update Barcelona 2015

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Randstad Inhouse launched in 2000 - and still growing


The innovation challenge Applying digital technologies to maintain differentiation through innovation: virtual branches, large upstairs branches, extranet, …


15

Randstad candidate path

Contact with facebook, twitter…

t & registration

Job offer

Competencies

talk

matching

Back Office

Independance

Loyalty

Test on line

visioconf with consultant

Assessment

Mobile app & portail

digital document with portal

planning management app Satisfaction & recommendation


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Randstad client path

digital document, timesheet, …

Steering order status

spection ssional social network

Address needs with candidates preselection

Internet tools

Order

Back Office

Loyalty

Client page on portal Order on line

End of job steering and dashboard client satisfaction measure and candidate

assessment


Summary

● The French economy is gradually recovering, with net job creation a real prospect

● Favourable government subsidies, tax credits and social charge reductions helping to support margins

● Randstad France well-positioned to grow in strategic business lines (Perm, Inhouse) and to improve productivity in higher-margin SME business

● Randstad France carefully balancing profit maximisation vs market share: we are now back in line with market

● Focus on innovation to drive improvements in productivity and client satisfaction


randstad france

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