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Annual results 2000 Randstad Holding nv February/March 2001.

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Presentation on theme: "Annual results 2000 Randstad Holding nv February/March 2001."— Presentation transcript:

1 Annual results 2000 Randstad Holding nv February/March 2001

2 Topics  Randstad: partner for flexibility and employability  The Randstad agenda  The year 2000  Key figures and financial report  Strategy  Outlook and prospects

3 Randstad: Partner for flexibility and employability  Mission: Randstad seeks to be among the world leaders in linking the supply of and demand for workers  Active in Europe and North America  Market leader in the Netherlands, Belgium, Germany and the U.S. Southeast  Ca. 245,000 staffing employees (daily avg.)  15,700 Corporate staff (year-end)  2,042 Branches and 426 in-house locations (year-end)

4 The Randstad agenda  Internationalization  Segmentation  Information and communication technology  Cost control  Accountability

5 2000: Operations  Internationalization 212 total new branches 134 branches through acquisitions Segmentation divisional structure

6 Randstad Group Randstad Holding Shared Service Centers Professionals staffing Mass-customized staffing Large scale staffing Europe & North America

7 2000: Operations  Information and communication technology integrated ICT approach new business models Hedson and newmonday.com websites in Europe and North America  Accountability value-based management  Cost control far-reaching measures

8 2000: Various market developments  Leveling off in regions important to Randstad  Disappointing and strongly changing ICT market  Rapid market growth in other regions  Investment program maintained  Results under pressure  Measures in November 2000

9 The Netherlands Germany Belgium * France Spain United Kingdom Switzerland Italy Denmark North America * Belgium including Luxembourg ** Autonomous growth in brackets *** Market share Spain, including FY Umano Market growth 0% 15% 12% 20% 15% 9% 6% 200% 20% 5.5% Revenue growth ** -2.6% (-2.5)% 13.4% 7.1% 40.3% (26.0%) 217.5% (44.5%) 17.2% 5.4% 2,515.9% 28.3% 2.1% (1.0%) Market share *** +/- +/- - + + + - + + - Development Randstad in Europe and North America 2000 Growth in local currency, revenues from temporary staffing and secondment only Market position *** 1 1 1 6 2 - 5 5-10 4 7

10 EUR mln Net revenues Operating result as % revenues Income after tax Net income Earnings per ordinary share from operations Earnings per ordinary share 2000 6,168.1 250.6 4.1% 151.8 207.2 1.24 1.72  10.8 -17.6 -26.7 0.1 -27.9 0.0 1999 5,565.5 304.3 5.5% 207.0 1.72 Key financial data 2000

11 EUR mln Net revenues Gross profit as % revenues Operating result (EBIT) as % revenues Financial income and expenses, net Taxes Result non-consolidated participations Income from ordinary operations after tax Extraordinary result after tax Net income Earnings per ordinary share from operations Earnings per ordinary share 2000 6,168.1 1,482.8 24.0 250.6 4.1 -20.5 -67.2 -11.1 151.8 55.4 207.2 1.24 1.72   10.8 13.3 -17.6 -26.7 -27.9 0.0 1999 5,565.4 1,308.7 23.5 304.3 5.5 -10.6 -86.7 207.0 1.72 Income statement data

12 EUR mln Net revenues Gross profit as % revenues Operating result (EBIT) as % revenues 2000 3,216.7 753.6 23.4 147.8 4.6  % 10.4 14.8 -1.4 1999 2,913.3 656.3 22.5 149.9 5.1 Key data Randstad Europe

13 2000 1,590.0 383.1 24.1 49.0 3.1  % 18.1 18.1 -42.5 1999 1,346.6 324.5 24.1 85.2 6.3 Key data Randstad North America EUR mln Net revenues Gross profit as % revenues Operating result (EBIT) as % revenues

14 2000 282.4 82.6 29.2 -10.7 -3.8  % -1.4 -13.8 -159.4 1999 286.4 95.8 33.4 18.0 6.3 Key data YACHT EUR mln Net revenues Gross profit as % revenues Operating result (EBIT) as % revenues

15 EUR mln Net revenues Gross profit as % revenues Operating result (EBIT) as % revenues Operating result Capac (EBIT) as % revenues 2000 193.3 36.8 19.0 1.4 0.7 10.3 5.3  % 25.0 35.3 -83.7 30.2 1999 154.6 27.2 17.6 8.6 5.6 8.6 5.6 Key data Capac Inhouse Services/Hedson

16 2000 627.8 176.0 28.0 61.3 9.8  % -3.2 9.0 27.7 1999 648.8 161.5 24.9 48.0 7.4 Key data Tempo-Team/Otter-Westelaken Group EUR mln Net revenues Gross profit as % revenues Operating result (EBIT) as % revenues

17 2000 280.7 54.9 19.6 14.0 5.0  % 19.1 14.1 53.8 1999 235.6 48.1 20.4 9.1 3.9 Key data Randon/Lavold EUR mln Net revenues Gross profit as % revenues Operating result (EBIT) as % revenues * Sale Lavold early 2001

18 After profit appropriation, EUR mln Tangible fixed assets Operational working capital Operational capital employed Interest-bearing debt Cash Net debt Interest coverage Shareholders’ equity Key balance sheet data (year-end) 2000 253.4 489.1 742.5 591.8 53.6 538.2 14.9 301.4  % 28.1 113.8 74.1 73.2 -70.5 236.8 1999 197.8 228.8 426.6 341.7 181.9 159.8 33.0 331.0

19 Key cash flow data EUR mln Cash flow from operational activities Investments in and disposals of MFA Free cash flow before acquisitions Acquisitions Free cash flow Increased financing Reimbursement to financiers Exchange rate differences Net cash flow DSO 2000 -42.6 -108.4 -151.0 -236.5 -387.5 346.6 -108.9 27.4 -122.4 55  % -116.7 86.6 -176.7 -16.1 -5,598.5 188.8 47.0 426.9 376.3 14.6 1999 255.0 -58.1 196.9 -203.7 -6.8 120.0 -74.1 5.2 44.3 48

20 Strategy Goal: Creation of value for all stakeholders, through growth of revenues and profits, through which continuity over the long term is assured.  Autonomous growth and supplementary acquisitions  Geographic spread of revenues  Segmentation and focus  ICT  Multi-channel approach

21 Strategy: Growth plus supplementary acquisitions  Priority on rapid autonomous growth  Supplementary acquisitions to accelerate growth attaining more prominent market position

22 Strategy: Growth perspective The Netherlands United Kingdom France Belgium Spain Germany Italy European Union North America 5 - 7% 5-15% 35 - 43% 13 - 21% 15 - 19% 8 - 11% 4 - 7% 2 - 4% 3 - 5% Average combined growth, 1998-2010 Source: CIETT Randstad estimates

23 Source: CIETT 2000 Strategy: Market enlargement Self-employed Fixed term contracts Private employment agencies Spain Italy France The Netherlands Belgium Germany United Kingdom 52.4% 32.9% 25.0% 23.3% 22.7% 22.3% 18.5% 20.1 24.5 10.9 11.0 15.2 10.0 12.1 31.6 8.4 11.6 7.8 5.9 11.7 3.2 0.7 2.5 4.5 1.6 0.6 3.2 0.0

24 Strategy: Geographic spread of revenues 2,701.4 3,209.5 4,223.8 5,565.4 6,168.1 7 6 11 24 26 30 27 28 26 44 49 62 66 67

25 Strategy: Segmentation and focus Addressing the market through divisions Randstad YACHT Capac Inhouse Services/Hedson Addressing the market via formulas en labels Randstad formulas Tempo-Team SME YACHT ICT, Finance, Management, Technology

26 Strategy: ICT objectives  Amplifying efficiency and raising productivity  Possibility to realize innovative service concepts  Increase scope for personalized services through staff

27 Strategy: ICT projects  Infrastructure  Databases  Corporate data model & standards

28 Clients Needs & Personalities Attitude & behavior Employees Strategy : Multi-channel Service providers (Portal) Temping Secondment Recruitment Other services Data

29 Outlook and forecast Estimated revenue growth: 5-10% Result H1 2001 < H1 2000 Net effect measures clearly visible in H2 2001 2001: net income growth from ordinary operations > revenue growth

30 EUR Earnings per ordinary share from operations 2000 1.22  % -29 2001 1.35 Average analyst expectations 1999 1.72  % 11.2


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