Q3 2020: recovery continues, resilient and competitive performance.

highlights

• Q3 2020 organic growth: -13.1%

• Q3 2020 underlying EBITA: € 199m

• Q3 2020 EBITA margin: 3.9%

• significant recovery of revenue decline across the group; resilient operating performance in North America and Rest of world.

• gross margin 18.9%, down 120bp YoY by mix effects; temp margin down 30bp (Q2: down 60bp), stable pricing climate.

• EBITA margin of 3.9%; recovery ratio of 53% utilizing the flexibility of our cost base.

• global market leadership strengthened by resilient and diversified portfolio; #newways initiative driving competitive growth.

• robust Q3 free cash flow (incl. CICE sale) € 494m

• September organic sales growth down 11%; volumes in early October indicate further positive momentum.

'The third quarter has been a memorable one in many ways,' says CEO Jacques van den Broek. 'We continue to live in very challenging times given COVID-19, with as key priority the health and safety of our employees, candidates, clients and other stakeholders. Randstad feels a strong social responsibility: we ensured the safe and healthy return to the workplace of 140,000 people losing their jobs since the start of the global health crisis.

Our Q3 results again demonstrate the strong operational agility of our highly experienced management teams, while underpinning the resilience of our diversified portfolio and free cash flow generation. Trading conditions gradually recovered during Q3 in most of our geographies and positive momentum continued in the first weeks of October. At the same time, visibility remains limited with ongoing macroeconomic uncertainty and recent signs of partial lockdowns again. I would like to thank all my Randstad colleagues globally for their continued commitment, flexibility and attention to each other and dedication to the business.

In these unprecedented times we also celebrated our 60th anniversary last month. 60 years ago, our founder Frits Goldschmeding started our company in Amsterdam, which has since grown to become the largest HR services provider in the world. We believe that Randstad is in an excellent position to further strengthen its global market leadership, fueled by our growth initiative #newways. With this position comes responsibility, so we remain committed to finding jobs for as many talents as possible in the coming months, with or without reskilling, in the same or in different jobs.'

video

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David Tailleur - Director Investor Relations

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Steven Vriesendorp - Investor Relations Officer

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Robin den Hoed - a.i. Media Relations Manager

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about Randstad

Randstad is the global leader in the HR services industry. We support people and organizations in realizing their true potential by combining the power of today's technology with our passion for people. We call it Human Forward. In 2019, we helped more than two million candidates find a meaningful job with our 280,000 clients. Furthermore, we trained more than 350,000 people. Randstad is active in 38 markets around the world and has top 3 positions in almost half of these. In 2019, Randstad had on average 38,280 corporate employees and generated revenue of € 23.7 billion. Randstad was founded in 1960 and is headquartered in Diemen, the Netherlands. Randstad N.V. is listed on the NYSE Euronext (symbol: RAND.AS). For more information, seewww.randstad.com.