Randstad N : continued strong momentum; record FY revenue of € 24.6bn, up 20% YoY.

4th

quarter results

2021.

human forward.

contents

continued strong momentum; record FY revenue of € 24.6bn, up 20% YoY.

financial performance

4 core data

1. invested capital
2. cash flow summary

performance

9 performance by geography

other information

interim financial statements

2

continued strong momentum; record FY revenue of € 24.6bn, up 20% YoY.

FY 2021 proposed total cash dividend per share

€ 5.00

Q4 2021 organic growth

16.3%

Q4 2021 EBITA margin

5.0%

group revenue up 12% vs Q4 2019, underpinned by strength of portfolio; perm revenue +69% YoY, RPO +153% YoY.

market-leading growth, continued outperformance in the majority of our markets.

ROIC of 16.8%, up 640bp YoY, reflecting strong improvement in EBITA and efficient working capital management.

acquisition of Hudson Benelux, market leader in high-value HR consulting and retained recruitment.

Q4 2021 gross margin of 20.4%, up 90bp YoY;

Q4 2021 EBITA margin up 40bp YoY; Full year ICR of 44%.

January organic revenue growth YoY broadly in line with Q4 2021; continuing positive momentum.

"We can look back on 2021 and be proud of what we have accomplished. Our positive momentum continued, allowing us to finish the year with record revenue, up 20% YoY and 5% ahead of 2019," says CEO Jacques van den Broek. "As a result of our continued organic investments through #newways, we saw growth outperformance at unprecedented levels and generated a strong return on invested capital of 16.8% for the year. We delivered strong sector and regional performances across our portfolio, with market outperformance in the majority of our markets and significant growth in Perm and RPO. Talent scarcity and mismatches in the labor market remain the biggest challenges for our clients and we see that the traditional recruitment process is changing. However, by combining our advancing digital capabilities, with our data and passion for people, we continue to be able to meet demand and find the right talent for our clients at pace. We will continue to focus on seeing the possible in people, empowering them to realize their full potential. This year, we welcomed thousands of new colleagues - both virtually and more recently back in our branches - and I would like to thank them, and all our colleagues around the world for their enthusiasm, commitment and dedication which resulted in our strong performance. Although we must still exercise caution while pandemic-related instabilities and limited visibility remain, we come out of 2021 in a strong position with demonstrable ongoing momentum across our portfolio. In line with our existing capital allocation policy, we propose to our shareholders a total cash dividend of € 5.00 per ordinary share for 2021, which consists of a regular dividend of € 2.19 per ordinary share, and a special cash dividend of € 2.81 per ordinary share."

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financial performance.

core data

in millions of €, unless otherwise indicated -	Q4	Q4	yoy		fy	fy	yoy
underlying	2021	2020	change	% org.	2021	2020	change	% org.
Revenue	6,754	5,693	19%	16%	24,635	20,718	19%	20%
Gross profit	1,379	1,108	24%	21%	4,873	3,970	23%	24%
Operating expenses	1,044	844	24%	20%	3,778	3,278	15%	16%
EBITA, underlying1	335	264	27%	25%	1,095	692	58%	60%
Integration costs and one-offs	(11)	(32)			(9)	(113)
EBITA	324	232	40%		1,086	579	88%
Amortization and impairment of intangible
assets2	(15)	(17)			(53)	(195)
Operating profit	309	215			1,033	384
Net finance costs	(5)	2			(16)	(24)
Share of profit of associates	-	1			1	4
Income before taxes	304	218	39%		1,018	364	180%
Taxes on income	(64)	(10)			(250)	(60)
Net income	240	208	15%		768	304	153%
Adj. net income for holders of ordinary shares3	258	167	54%		806	470	71%
Free cash flow	211	120	76%		590	1,132	(48)%
Net debt	415	255	63%		415	255	63%
Leverage ratio (net debt/12-month EBITDA)4	0.3	0.3			0.3	0.3
Leverage ratio (net debt/12-month EBITDA)
excluding IFRS 165	(0.1)	(0.4)			(0.1)	(0.4)
DSO (Days Sales Outstanding), moving
average	51.6	52.9			51.6	52.9
Margins (in % of revenue)
Gross margin	20.4%	19.5%			19.8%	19.2%
Operating expenses margin	15.4%	14.8%			15.3%	15.8%
EBITA margin, underlying	5.0%	4.6%			4.4%	3.3%
Share data
Basic earnings per ordinary share (in €)	1.30	1.12	16%		4.13	1.62	155%
Diluted earnings per ordinary share,
underlying (in €)3	1.39	0.90	54%		4.35	2.55	71%

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 25.
4. Leverage ratio including IFRS 16.
5. Leverage ratio excluding IFRS 16, based on best estimates.

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revenue

Organic revenue per working day grew by 16.3% YoY in Q4 2021 resulting in revenue of € 6,754 million (Q3 2021: up 20.7%). Reported revenue was up 18.6% YoY, of which working days had a positive impact of 0.1% effect while FX had a positive effect of 1.7%. M&A contributed 0.5%

In North America, revenue per working day was up 14% (Q3 2021: up 17%). Growth in the US was up 12% (Q3 2021: up

16%), while Canada was up 28% YoY (Q3 2021: up 28%). In Europe, revenue per working day grew by 15% (Q3 2021: up

21%). Revenue in France was up 10% (Q3 2021: up 12%), while the Netherlands was up 16% (Q3 2021: up 24%). Germany

was up 15% (Q3 2021: up 27%), while sales growth in Belgium was up 7% (Q3 2021: up 14%). Revenue in Italy was up 32%

(Q3 2021: up 34%), while revenue in Iberia was up 15% (Q3 2021: up 22%). In the 'Rest of the world' region, revenue was

up by 20% (Q3 2021: up 21%); Japan increased by 13% (Q3 2021: up 10%), while Australia & New Zealand rose by 35%

(Q3 2021: up 35%).

Perm fees increased by 69% YoY (Q3 2021: up 74%), with Europe up 52% YoY (Q3 2021: up 56%) and North America up

87% YoY (Q3 2021: up 95%). In the 'Rest of the world' region, perm fees increased by 88% (Q3 2021: up 88%). Perm fees made up 11.1% of gross profit.

gross profit

In Q4 2021, gross profit amounted to € 1,379 million. Organic growth was 20.9% YoY (Q3 2021: up 28.0%). Currency effects had a positive € 20 million impact on gross profit compared to Q4 2020.

year-on-year gross margin development (%)

21%

0.6%

20.4%

20%	0.6%
19.5%	(0.3)%

19%

18%

17%

Q4 2020

Temp

Perm placements

HRS/other

Q4 2021

Gross margin was 20.4% in the quarter, 90bp above Q4 2020 (as shown in the graph above). Temporary staffinghad a 30bp negative impact on gross margin (Q3 2021: 20bp positive impact), with underlying pricing climate stable. Permanent placements had a 60bp positive impact, while HRS/other had a 60bp positive impact.

operating expenses

On an organic basis, operating expenses increased by € 71 million sequentially to €1,044 million. This includes selective investments in growth and digital initiatives. Compared to last year, operating expenses were up 20% organically (Q3 2021: up 22%), while currency effects had a € 18 million negative impact.

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