2nd quarter results 2023.

human forward.

contents

Q2 2023: resilient performance, strong adaptability.

financial performance

4 core data

  1. invested capital
  2. cash flow summary

performance

9 performance by segment

other information half-year report

17 key financials

interim financial statements

2

Q2 2023: resilient performance, strong adaptability.

Q2 2023 organic growth

-5.1%

Q2 2023 underlying EBITA

€ 271m

Q2 2023 EBITA margin

4.2%

gross profit -7% YoY; perm -16% & RPO -24% YoY, combined c. 18% of gross profit.

revenue growth in asia pacific and latam, mixed trendsineurope,declinein north america.

robust gross margin of 20.7%, -50bp YoY, reflecting mix & pricing.

announced acquisition of Grupo CTC, a leading multi-services outsourcing company in Spain.

solid EBITA margin, strong adaptability: opex down 4% QoQ down 6% YoY.

inearlyJuly,trendsbroadly in line with Q2 2023.

Sander van 't Noordende, CEO of Randstad, commented: "We delivered a solid set of results in the second quarter amid challenging conditions across our markets. We have seen performance levels below the record results achieved in the same period last year. I am pleased with how our teams have responded to the current operating environment. We continue to benefit from our strong market position, our deep customer relationships and our commitment to our talent. These factors, along with our disciplined management, have contributed to an underlying EBITA of € 271m, resilient EBITA margin performance of 4.2% and strong free cash flow.

Our robust balance sheet enables us to continue our strategy of disciplined investments to strengthen our offer and we were delighted to announce the acquisition of Grupo CTC earlier this month. We are excited by the opportunities in Spain and Portugal and I would like to take this opportunity to welcome our new colleagues to Randstad.

The market trends we experienced in the second quarter have continued in early July, with talent scarcity and wage inflation persisting. We remain confident in our ability to adapt our operations based on our field steering model, to provide the best possible service to our customers and talent, and to capture the growth opportunities available to us.

Finally, we are looking forward to welcoming Dimitra Manis to our Supervisory Board, pending shareholder approval."

3

financial performance.

core data

in millions of €, unless otherwise indicated - underlying

Q2

Q2

yoy

% org.

2023

2022

change

Revenue

6,465

6,886

(6)%

(5)%

Gross profit

1,341

1,457

(8)%

(7)%

Operating expenses

1,070

1,149

(7)%

(6)%

EBITA, underlying1

271

308

(12)%

(12)%

Integration costs and one-offs

(54)

(43)

EBITA

217

265

(18)%

Amortization and impairment of intangible assets2

(11)

(5)

Operating profit

206

260

Net finance (costs) / income

(17)

3

Share of profit of associates

-

1

Income before taxes

189

264

(28)%

Taxes on income

(52)

(68)

Net income

137

196

(30)%

Adj. net income for holders of ordinary shares3

185

230

(20)%

Free cash flow

126

55

129%

Net debt

1,208

746

62%

Leverage ratio (net debt/12-month EBITDA)4

0.8

0.5

Leverage ratio (net debt/12-month EBITDA) excluding IFRS 165

0.5

0.1

DSO (Days Sales Outstanding), moving average

53.3

52.1

Margins (in % of revenue)

Gross margin

20.7%

21.2%

Operating expenses margin

16.6%

16.7%

EBITA margin, underlying

4.2%

4.5%

Share data

Basic earnings per ordinary share (in €)

0.74

1.06

(30)%

Diluted earnings per ordinary share, underlying (in €)6

1.01

1.25

(19)%

  1. EBITA adjusted for integration costs and one-offs.
  2. Amortization and impairment of acquisition-related intangible assets and goodwill.
  3. Before amortization and impairment of acquisition-related intangible assets and goodwill, integration costs and one-offs. See table 'Earnings per share' on page 24.
  4. Leverage ratio including IFRS 16.
  5. Leverage ratio excluding IFRS 16, based on best estimates.
  6. Before amortization and impairment of acquisition-related intangible assets and goodwill, integration costs and one-offs. See table 'Earnings per share' on page 29.

4

revenue

Organic revenue per working day declined by 5.1% YoY in Q2 2023 resulting in revenue of € 6,465 million (Q1 2023: down 4.2%). Reported revenue was down 6.1% YoY, of which working days had a negative impact of 0.8% while FX had a negative effect of 1.4%. M&A positively contributed 1.2%.

In North America, revenue per working day was down 14% (Q1 2023: down 10%). Revenue in the US was down 13% (Q1

2023: down 11%), while Canada was down 15% YoY (Q1 2023: down 7%). In Northern Europe, revenue per working day

was down by 6% (Q1 2023: down 6%). Revenue in the Netherlands was down 9% (Q1 2023: down 11%), while Germany

was down 4% (Q1 2023: up 1%). Revenue in Belgium was down 8% (Q1 2023: down 8%). In Southern Europe, UK and

Latin America, revenue was down 1% (Q1 2023: down 2%). Revenue in France was up 2% (Q1 2023: down 1%) and in Italy

revenue was down 5% (Q1 2023: down 3%). Revenue in Iberia was down 3% (Q1 2023: down 6%). In the Asia Pacific

region, revenue was up by 5% (Q1 2023: up 4%); Japan increased by 7% (Q1 2023: up 3%), while Australia & New Zealand

rose by 3% (Q1 2023: up 5%). Global Businesses revenue was down 6% YoY organically (Q1 2023: up 2%). Enterprise

solutions revenue decreased by 5% YoY (Q1 2023: up 5%), as the decline in RPO was partially offset by growth from

outplacement and career mobility services. Monster revenue was down 14% YoY (Q1 2023: down 14%).

Perm fees decreased by 16% YoY (Q1 2023: down 8%). Perm fees in Northern Europe was up 1% YoY (Q1 2023: up 17%) and Southern Europe, UK and Latin America was down 7% (Q1 2023 up 2%). North American perm fees was down 36% YoY (Q1 2023: down 22%). In the Asia Pacific region, perm fees decreased by 5% (Q1 2023: down 18%). Perm fees made up 11.7% of gross profit.

gross profit

In Q2 2023, gross profit amounted to € 1,341 million, down 6.6% YoY organically (Q1 2023: down 2.1%). Currency effects had a negative € 26 million impact on gross profit compared to Q2 2022.

year-on-year gross margin development (%)

22%

21%

20%

19%

18%

17%

21.2%

0.1%

-0.25%

-0.35%

20.7%

Q2 2022

Temp

Perm placements

HRS/other

Q2 2023

Gross margin was 20.7% in the quarter, 50bp below Q2 2022 (as shown in the graph above). Temporary placements had a 10bp positive impact on gross margin (Q1 2022: 40bp positive impact). Permanent placements had a 25bp negative impact, while HRS/other had a 35bp negative impact.

operating expenses

On an organic basis, operating expenses decreased by € 25 million sequentially to € 1,070 million. Compared to last year, operating expenses were down 6% organically (Q1 2023: up 1%), while currency effects had a € 20 million positive impact.

5

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Randstad Holding NV published this content on 19 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 September 2023 19:04:09 UTC.