contents

Randstad continues to deliver market-leading growth, revenue 3% above 2019. financial performance

4 core data

  1. invested capital
  2. cash flow summary

performance

9 performance by geography

other information half-year report

15 key financials

interim financial statements

2

Randstad continues to deliver market- leadinggrowth,revenue3%above2019.

group revenue above Q2 2019 level, utilizing full strength of portfolio. perm +91% YoY, +1% vs. '19

global market leadership and competitive growth supported by diversified portfolio; inhouse and professionals above 2019 levels.

Q2 2021 gross margin of 19.5%, up 80bp YoY due to mix effects; perm 50bp and temp 30bp positive impact YoY.

continued market share gains in the US and France.

Q2 2021 organic growth

38.2%

Q2 2021 underlying EBITA

€ 260m

Q2 2021 EBITA margin

4.3%

Q2 2021 EBITA margin up 280bp YoY. Accelerated investments in FTEs and digital initiatives, building capacity to drive profitable growth.

volume trends in early July indicate continued positive momentum.

"Positive momentum continued across all our geographies into the second quarter of 2021 and we delivered strong Group performance," says CEO Jacques van den Broek. "Group revenue surpassed 2019 levels and we achieved solid profitability whilst continuing to invest in new growth opportunities. As a result, we welcomed more than 2,400 new colleagues to our global workforce. We are also continuing to roll out our global technology transformation, with Monster showing positive YoY momentum, and are excited to provide a better experience to both talent and employers using the combination of Randstad and Monster capabilities in the future.

As markets begin to recover, pre-pandemic trends such as talent scarcity are also returning. By providing in-depth data, technology and integrated services, we are playing an essential role for our clients by helping them to achieve a total talent management strategy. At the same time, the pandemic continues to touch the lives of many and the wellbeing and health of our employees is our highest priority. This quarter, in particular, I am proud of the active role we played in the pandemic humanitarian response in India. I would also like to thank all our global colleagues for the support they have shown. Based on the strength of our performance in the first half we are optimistic for the remainder of 2021, although we are still exercising caution while pandemic-related instabilities and limited visibility remain. We look forward to sharing an update of our strategy at our Capital Markets Day in November 2021."

3

financial performance.

core data

Q2

Q2

yoy

in millions of €, unless otherwise indicated - underlying

2021

2020

change

% org.

Revenue

6,078

4,437

37%

38%

Gross profit

1,183

830

43%

45%

Operating expenses

923

763

21%

24%

EBITA, underlying1

260

67

288%

314%

Integration costs and one-offs

(10)

(33)

EBITA

250

34

635%

Amortization and impairment of intangible assets2

(11)

(103)

Operating profit

239

(69)

Net finance costs

(5)

(11)

Share of profit of associates

1

1

Income before taxes

235

(79)

397%

Taxes on income

(59)

22

Net income

176

(57)

409%

Adj. net income for holders of ordinary shares3

190

63

202%

Free cash flow

78

530

(85)%

Net debt

436

896

(51)%

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

0.4

0.8

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

(0.2)

0.3

DSO (Days Sales Outstanding), moving average

52.1

53.0

Margins (in % of revenue)

Gross margin

19.5%

18.7%

Operating expenses margin

15.2%

17.2%

EBITA margin, underlying

4.3%

1.5%

Share data

Basic earnings per ordinary share (in €)

0.95

(0.33)

388%

Diluted earnings per ordinary share, underlying (in €)3

1.03

0.34

203%

  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 26.
  4. Leverage ratio including IFRS 16.
  5. Leverage ratio excluding IFRS 16, based on best estimates.

4

revenue

Organic revenue per working day grew by 38.2% in Q2 2021 resulting in revenue of € 6,078 million (Q1 2021: up 6.4%). Reported revenue was up 37.0% YoY, of which working days had a positive effect of 0.9% while FX had a negative effect of 2.1%.

In North America, revenue per working day was up 23% (Q1 2021: up 5%). Growth in the US was up 21% (Q1 2021: up

5%), while Canada was up 50% YoY (Q1 2021: up 7%). In Europe, revenue per working day grew by 46% (Q1 2021: up

6%). Revenue in France was up 63% (Q1 2021: up 4%), while the Netherlands was up 37% (Q1 2021: up 9%). Germany

was up 46% (Q1 2021: up 5%), while sales growth in Belgium was up 37% (Q1 2021: up 1%). Revenue in Italy was up 64%

(Q1 2021: up 20%), while revenue in Iberia was up 45% (Q1 2021: down 2%). In the 'Rest of the world' region, revenue

was up by 20% (Q1 2021: up 11%); Japan increased by 5% (Q1 2021: up 4%), while Australia & New Zealand rose by 33%

(Q1 2021: up 15%).

Perm fees increased by 91% (Q1 2021: down 5%), with Europe up 103% (Q1 2021: down 5%) and North America up 116%

(Q1 2021: down 7%). In the 'Rest of the world' region, perm fees increased by 42% (Q1 2021: down 2%). Perm fees made up 11.3% of gross profit.

gross profit

In Q2 2021, gross profit amounted to € 1,183 million. Organic growth was up 44.9% (Q1 2021: up 5.9%). Currency effects had a negative € 27 million impact on gross profit compared to Q2 2020.

year-on-year gross margin development (%)

21%

20%

0.5%

0.0%

19.5%

19%

0.3%

18.7%

18%

17%

Q2 2020

Temp

Perm placements

HRS/other

Q2 2021

Gross margin was 19.5% in the quarter, 80bp above Q2 2020 (as shown in the graph above). Temporary staffinghad a 30bp positive impact on gross margin (Q1 2021: neutral impact), with underlying pricing climate stable. Permanent placements had a 50bp positive impact, while HRS/other had no impact.

operating expenses

On an organic basis, operating expenses increased by € 63 million sequentially to € 923 million. This includes selective investments in growth and digital initiatives. Compared to last year, operating expenses were up 24% organically (Q1 2021: stable), while currency effects had a € 22 million positive impact.

5

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Randstad Holding NV published this content on 27 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2021 08:29:04 UTC.