Randstad France Jacques van den Broek November 21, 2012
disclaimer Certain statements in this document concern prognoses about the future financial condition, risks, investment plans and the results of operations of Randstad Holding and its operating companies as well as certain plans and objectives. Obviously, such prognoses involve risks and a degree of uncertainty since they concern future events and depend on circumstances that will apply then. Many factors may contribute to the actual results and developments differing from the prognoses made in this document. These factors include, but are not limited to, general economic conditions, a shortage on the job market, changes in the demand for (flexible) personnel, changes in legislation (particularly in relation to employment, staffing and tax laws), the role of industry regulators, future currency and interest fluctuations, our ability to identify relevant risks and mitigate their impact, the availability of credit on financially acceptable terms, the successful completion of company acquisitions and their subsequent integration, successful disposals of companies and the rate of technological developments. These prognoses therefore apply only on the date on which this document was compiled. Quarterly figures and underlying figures are unaudited. 2 November 21, 2012
agenda Randstad in France HR services market economic context and labor market trends strategic focus 3 November 21, 2012
Randstad in France a lot has happened since the merger rebranding campaign market share gains through inhouse services and focus on SME adaptability: field steering transfer to right delivery model focus on SME and perm solid footprint in professionals 4.000 3.750 3.500 3.250 3.000 2.750 2.500 2007 2008 2009 2010 2011 2012 L4Q revenue in M EBITA margin revenue split 5% 4% 3% 2% 1% 0% 2011: change in subsidies limited improvement in profitability review distribution network: creating larger offices adaptability in cost base limited Staffing Inhouse Professionals HR Solutions 4 November 21, 2012
Inhouse concept: large market potential 350 300 250 200 150 100 50 0 inhouse revenue in M 2007 2008 2009 2010 2011 2012 L4Q 150 125 100 75 50 25 0 inhouse locations 2007 2008 2009 2010 2011 2012 L4Q unique in France high growth over last 2 years: over 113 locations two focus areas: reduce dependency on large accounts in branches and focus on SME transfer improves profitability and increases market share 5 November 21, 2012
Professionals Expectra focused on IT, Finance, Engineering large offices with large teams use as best practice for staffing organization Appel Médical focused on Healthcare diversification of services and different segments implementation of field steering and best practices revenue split Healthcare IT Finance Engineering Other 6 November 21, 2012
staffing market France 2012 market : 19bn blue collar 27% construction 18% high skilled blue collars 18% transport logistics 14% office clerical 10% other 13% general staffing industry construction experts of industry logistics & retails tertiary staffing to remain largest segment, despite strong growth in professionals automotive relatively weak shift from blue collar to white collar large accounts important part of French market penetration rate ~2% blue collar > 5% white collar > 1% 7 November 21, 2012
French recruitment market: a long-term growth driver 704 M 65 +11% +60% 779 M +0,8% 105 138 +36% 785 M -30% staffing companies -38% +6% -4% 549 M 83-6,2% +21% 520 M 100 +18% +28% 611 M 128 HY1-1,4% 2012 recruitment companies 638 674 647-28% 466-10% 420 +15% 483 2006 2007 2008 2009 2010 2011 Source: Prisme, Acoss, APEC + Randstad estimates * Revenues from recruitment activities (temping excluded) staffing companies established a strong position in this new market adoption of large accounts and geographic coverage as key growth drivers recruitment process outsourcing expected to grow fast 8 November 21, 2012
economic context French economic environment companies need more flexibility in line with fluctuations in activity increase level of qualifications and skills, need for training public sector growing steadily, slower than expected recruitment market important growth driver changing context: new economic politics European Agency Work Directive: facilitating use of temporary work - opposition by French government to apply it new Finance Act, no major changes in subsidies government launched discussion between social partners on flexicurity 9 November 21, 2012
labor market trends: regional perspective changes in blue collar labor market changes in white collar labor market steady decline in blue collar employment flexibility remains very important for clients inhouse services as attractive service offering increase in white collar employment focus on SME and perm regional focus becomes more important: larger offices in larger cities 10 November 21, 2012
labor market trends: sector view 11 November 21, 2012
segment specific delivery models focus on SME and transferring large accounts to inhouse implementation field steering successful offices in smaller cities successful in their SME approach smaller offices in larger cities to migrate into larger offices transferring large accounts to inhouse to ensure focus on SME, also in large cities 12 November 21, 2012
creating larger offices: a benchmark using best practices from other countries and professionals 8,0 7,0 6,0 Field FTE per branch 5,0 4,0 3,0 France Germany Belux 2,0 1,0-2008 2009 2010 2011 2012 larger offices drive productivity improvements and focus on market segments, like SME proven success in regions and in our professionals business 13 November 21, 2012
strategic focus strong concepts focus on specialization / expert centers develop and grow Inhouse services best people retain talent and management development continuous development of management tools such as business game excellence in execution field steering for professionals focus on SME and perm larger branches superior brands increase top of mind awareness ongoing PR events sharing our expertise: shaping the world of work 14 November 21, 2012
example of our efforts in public relations Le Figaro - May 7, 2012 15 November 21, 2012