Sthree Plc · LSE:STEM
Sthree — Investor Day (March 2010)
114 slides from Sthree's investor day presentation, Mar 23, 2010
Slide 1: SThree Investor Day 23rd March 2010
SThree Investor Day 23rd March 2010 Investor Day 2010 www.SThree.com SThree plc 1
Slide 2: Agenda
Agenda Investor Day 2010 • Introduction & Overview Russell Clements • Key Risks & Mitigation Alex Smith • Market Selection Criteria Justin Hughes • Case Study – Germany Nye Bidwell • Case Study – Singapore/Oil & Gas Stuart Clark • IT As A Strategic Differentiator David Timoney • Apollo/MIS Walkthrou
Slide 3: Globalising The Business: Introduction & Overview
Globalising The Business Introduction & Overview Investor Day 2010 Russell Clements - CEO www.SThree.com SThree plc 3
Slide 4: The SThree Strategy
The SThree Strategy Investor Day 2010 Further international t expansion s p ec Co e ntin r t &r u e th appo e r a rd, r ew Development of Commitment to gy, e r new staffing the UK business n s of e Mu sectors u e l t i-br r val and o u app with Drive operational ro a i ne ch In l efficiencies / impr
Slide 5: Global Expansion – The Story So Far
Global Expansion – The Story So Far Investor Day 2010 • International expansion began 1998 in Brussels • 27 overseas offices – 21 Europe and 6 ROW • 2009 55% gross profit generated outside of the UK • At Q1 2010 circa 700 sales staff overseas (58% of total) with 100 overseas sales vacancies approved
Slide 6: Methodology – The Criteria Used To Target Locations
Methodology – The Criteria Used To Investor Day 2010 Target Locations Availability of Medium term Economic size* Economic growth* GDP per capita* niche markets ** attractiveness Measure GDP Measure GDP growth Measure GDP per capita Measure number of Measure SThree niche A qualitative review by Units
Slide 7: SThree – A Transformed Business
SThree – A Transformed Business Investor Day 2010 2009 2008 2007 31% 41% 47% 53% 59% 69% UK, ICT Gross Profit Other Geographical & sector diversification has radically reshaped the SThree business over a relatively short timeframe Source: SThree Accounts www.SThree.com SThree plc 7
Slide 8: Commitment To International Expansion, Even In Challenging Conditions
Commitment To International Expansion, Investor Day 2010 Even In Challenging Conditions Hamburg (FS Group) Marseille (FS Group) Dusseldorf (Progressive/ Singapore (Progressive) Huxley) Frankfurt (Real/ Progressive) Stuttgart (FSGroup) 2009 office openings www.SThree.com SThree plc 8
Slide 9: 2010 Actual & Planned Office Openings
2010 Actual & Planned Office Openings Investor Day 2010 Perth (Progressive) Qatar (Pathway) Munich (FS Group) Antwerp (FS Group) Dusseldorf (Prog / Huxley) Melbourne (Progressive) San Francisco Houston (Progressive) (Real Resourcing) Zurich (Huxley / Progressive) Delhi (Huxley) Key Opened Agreed/rea
Slide 10: Globalising The Business – Indicative Future Profile
Globalising The Business – Indicative Investor Day 2010 Future Profile 2009 Indicative Future Profile 6% 23% 30% 45% 49% 47% UK Europe ROW The significance of non-UK/non-European markets is expected to increase Source: SThree Internal Analysis www.SThree.com SThree plc 10
Slide 11: Changing The Shape Of The Business – UK & Europe
Changing The Shape Of The Business Investor Day 2010 – UK & Europe 2009 Indicative Future Profile Net herland s UK & Ireland UK & Ireland 17% Russia & East ern Euro p e 4 7% 34 % 2% Ot hers 2% Net herland s B elg ium 11% 8% B elg ium France 8% 8% France 10 % Others – includes Switzerland, Norway, Ge
Slide 12: Changing The Shape Of The Business – ROW
Changing The Shape Of The Business Investor Day 2010 – ROW 2009 Indicative Future Profile M iddle East & A f rica M idd le East 18 % Far East 2 2% 23 % Far East 3 1% Sout h A merica 2% India 6% Nort h A merica Nort h A merica 28 % A ust ralia A ust ralia 34% 17% 19% The significance of the Americas
Slide 13: Indicative Future Footprint
Indicative Future Footprint Investor Day 2010 Americas UK & Ireland Europe Middle East AsiaPac New York Boston London Düsseldorf Marseille Dubai Hong Kong Shanghai San Francisco Atlanta Manchester Hamburg Antwerp Abu Dhabi Singapore Tokyo Washington Calgary Birmingham Frankfurt Luxembourg Bahrain Sy
Slide 14: Globalising The Business - Summary
Globalising The Business - Summary Investor Day 2010 • Our default assumption is for our growth to be entirely organic • We are not opposed to considering bolt-on acquisitions in certain geographies • Cash is not a limiting factor but earnings dilution must be a consideration • Developing and maximi
Slide 15: Globalising The Business – Summary
Globalising The Business – Summary Investor Day 2010 • Opportunities exist in both mature and immature staffing markets • Greater sectoral diversity creates geographical opportunities and vice versa • Globalising the business drives increasing complexity • Development of world class support/planning
Slide 16: Key Risks & Their Mitigation
Globalising the Business Key Risks & Their Mitigation Investor Day 2010 Alex Smith - CFO www.SThree.com SThree plc 16
Slide 17: Key Risks To The Globalisation Strategy
Key Risks To The Globalisation Strategy Investor Day 2010 • New venture selection • New venture execution • The complexity of supporting a globalising business www.SThree.com SThree plc 17
Slide 18: The Strategic Planning & Implementation Cycle
The Strategic Planning & Implementation Investor Day 2010 Cycle Strategic planning Research and planning Evaluation of new ventures Implementation www.SThree.com SThree plc 18
Slide 19: Strategic Planning: Understanding Our Mix Of Ventures
Strategic Planning Investor Day 2010 Understanding Our Mix Of Ventures Ventures are grouped under the following categories of operational risk Complex ventures operationally; will definitely require external resources Ventures in virgin territory; in some cases external resources may aide us I n Ven
Slide 20: What We Did In 2009 & Plan To Do In 2010
What We Did In 2009 & Plan To Do In Investor Day 2010 2010 Qatar (RSG/Progressive) Singapore (Progressive) Delhi (Huxley) Zurich (Progressive/Huxley) San Francisco (RSG) Houston (Progressive) Increasing Risk Stuttgart (FSG) Perth (Progressive) Marseille (FSG) Antwerp (FSG) Dusseldorf (Huxley/Prog) M
Slide 21: Research & Planning Of New Ventures
Research & Planning Of New Ventures Investor Day 2010 • Stage One: Scoping of business opportunity - Business justification of venture (strategic alignment / opportunistic) - Preliminary investigation by the Strategic Implementation Group • Stage Two: Research and preparation of business plan - Prim
Slide 22: Implementation
Implementation Investor Day 2010 • Implementation is with the Strategic Implementation Group (“SIG”) • Close working between front office and SIG to agree implementation plan • Regular meetings until project go-live and project sign-off • In most cases de-risk investment by running virtually • Post
Slide 23: Implementation
Implementation Investor Day 2010 • Strategic Implementation Group made up of representatives from: – Business Services – Legal – HR – IT – Administration & Property – Finance – Company Secretarial – Tax & Treasury • SIG Workflow consists of: – Legal Entity set-up – Trading Style set-up – Marketing &
Slide 24: Evaluation
Evaluation Investor Day 2010 Post implementation reviews - After each go live - Commercial reviews after 6, 12 & 18 months then BAU Strategic Planning - Iterative annual cycle - Impact on the strategy of emerging market trends - Factbased approach to drive insights - Where do we make £? - How does a
Slide 25: Strategic Assets For Growth
Strategic Assets For Growth Investor Day 2010 Global back office Global front office platform platform (SAP) (Siebel CRM) Support Services Global Global scalable processes infrastructure Leverage these investments to support globalisation www.SThree.com SThree plc 25
Slide 26: Support Services Transformation
Support Services Transformation Investor Day 2010 Magellan • A programme to complement our growth strategy, sponsored by the Board • A structured assessment conducted with the Hackett Group • Leverage strategic assets to further differentiate ourselves from competition • Move towards an operating mo
Slide 27: Conclusion
Conclusion Investor Day 2010 New venture selection process New venture execution process } EFFECTIVE SThree has key strategic assets to enable growth already in place. These will be fully leveraged through Project Magellan. www.SThree.com SThree plc 27
Slide 28: Market Selection Criteria
Market Selection Criteria Justin Hughes – March 2010 Investor Day 2010 www.SThree.com SThree plc 28
Slide 29: Agenda
Agenda Investor Day 2010 • My SThree Profile • The Senior Management Repositioning • Methodology – Criteria For Target Locations • Germany & Asia Pacific – Key Drivers of Growth • Leadership Selection For New Projects www.SThree.com SThree plc 29
Slide 30: SThree Profile – Justin Hughes
SThree Profile – Justin Hughes Investor Day 2010 1969 Born Cardiff 1990 Graduated BA Hons Economics 1995 Trainee Consultant Progressive London 1996 Consultant Progressive London 1997 Manager Progressive London 1999 Regional Sales Director Progressive Contract 2000 Sales Director Progressive Contract
Slide 31: Evolving The Senior Management Structure
Globalising The Business – Evolving The Investor Day 2010 Senior Management Structure www.SThree.com SThree plc 31
Slide 32: Repositioning Of The Group Managing Director Roles
Repositioning Of The Group Managing Investor Day 2010 Director Roles • More appropriate to a globalising business • Allows the strengths of the brand model to continue – Front office inter brand competition – Multiple routes to market – Brand sector specialisation • Allows us to marry the above with
Slide 33: Methodology – The Criteria Used To Target Locations
Methodology – The Criteria Used To Investor Day 2010 Target Locations Availability of Medium term Economic size* Economic growth* GDP per capita* niche markets ** attractiveness Measure GDP Measure GDP growth Measure GDP per capita Measure number of Measure SThree niche A qualitative review by Units
Slide 34: Two Types Of Market – Defined By Candidate Mobility
Two Types Of Market – Defined By Investor Day 2010 Candidate Mobility Global Driver For Candidate Demand Key Locations Or Regions Candidate Sectors • Industry is highly specialised and experienced technical skill is in New York, Chicago, London, Edinburgh, Banking relative short supply. Paris, Frank
Slide 35: Leadership Selection
Leadership Selection Investor Day 2010 • Identify managers with high potential – Track record of performance – Evidence of competencies – Values • Development experience – Contract and Permanent – Diverse sectors – Working in conjunction with the business infrastructure – Multiple regions – Multiple
Slide 36: Germany – A Case Study
Germany – A Case Study Nye Bidwell – March 2010 Investor Day 2010 www.SThree.com SThree plc 36
Slide 37: Agenda
Agenda Investor Day 2010 • SThree Profile – Nye Bidwell • The German Market • Maximising the Opportunity • Summary www.SThree.com SThree plc 37
Slide 38: SThree Profile – Nye Bidwell
SThree Profile – Nye Bidwell Investor Day 2010 1976 Born Arbroath, NE Scotland 1999 Graduated European Studies and French 1999 Consultant & TL Progressive International Contract - London 2001 Manager Progressive Germany Permanent - London 2004 Manager Progressive Germany Permanent - Munich 2007 Dire
Slide 39: The German Market
Investor Day 2010 The German Market www.SThree.com SThree plc 39
Slide 40: Germany – The Ideal Market?
Germany – The Ideal Market? Investor Day 2010 • Largest population in Europe (82m) • 4th largest economy in the world • Underdeveloped staffing market • Well educated technically orientated workforce (c. 35% scientists/technicians) • Stable business environment (lowest DSOs) • Positive cultural/beha
Slide 41: The German Market Has Now Reached Critical Mass
It Has Taken Longer Than Some Expected, But the German Market Has Now Reached Investor Day 2010 Critical Mass f n e ss o re awa es d i date nc r eas M i Can p tion or e o ncy ca age n did wi ate th ag sr en eg c ie is t s er Greater number of candidates placed through agencies Clients have increasin
Slide 42: An Underdeveloped Recruitment Market
An Underdeveloped Recruitment Market Investor Day 2010 Value of the employment services market in 2008, $US billions 60 49.6 bn 50 40 30 20.9 bn 20 10 0 UK Germany Population Population 82 61.4 million million Lower level temporary/contract placement services dominated the Germany employment service
Slide 43: The German Staffing Market
The German Staffing Market Investor Day 2010 SPECIALIST HIGHER AVERAGE FEE LOWER GENERALIST AVERAGE FEE www.SThree.com SThree plc 43
Slide 44: The Fourth Largest Economy In The World
The Fourth Largest Economy In The World Investor Day 2010 2008 GDP, millions of current USD USA 14,441,425 Japan 4,910,692 China 4,327,448 Ge rmany 3,673,105 France 2,886,951 UK 2,680,000 Italy 2,313,893 Russia 1,676,586 Spain 1,601,964 Brazil 1,572,839 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000
Slide 45: German Economy Heavily Impacted By The Recession
German Economy Heavily Impacted By The Recession, But On The Way To Investor Day 2010 Steady Recovery 2005 – 2009, quarter on previous year quarter GDP growth, select countries 4.0 Actual Forecast 3.0 2.0 1.0 0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 -1.0 Germany -2.0 Japan United Kingdom -3.
Slide 46: German GDP Breakdown By Sector
German GDP Breakdown By Sector Investor Day 2010 Agriculture 1% Industry & Manufacturing 30% Services & Finance 69% Germany has a surprisingly large services sector. Industry and manufacturing specialise in high value, highly engineered products Source: Official Statistics www.SThree.com SThree plc
Slide 47: Germany – A Decentralised Country
Germany – A Decentralised Country Investor Day 2010 Germany Population: 82 million Hamburg Düsseldorf (NRW) Population: 1.8 million Population: 18 million GDP: €90 billion GDP: €541 billion IT, Engineering, IT, Engineering, Accountancy Accountancy Berlin Frankfurt (Hessen) Population: 3.7 million Po
Slide 48: Germany – Current SThree Presence
Germany – Current SThree Presence Investor Day 2010 Germany Düsseldorf (NRW) Population: 82 million Hamburg Frankfurt (Hessen) Munich (Bavaria) Stuttgart (BW) Source: GT&I; latest figures www.SThree.com SThree plc 48
Slide 49: Maximising The Opportunity
Investor Day 2010 Maximising The Opportunity Reichstag dome www.SThree.com SThree plc 49
Slide 50: A Decade Of History & Investment In Germany
SThree – A Decade Of History & Investor Day 2010 Investment In Germany SThree now has 11 offices 4th SThree brand enters German market Office = Brand physical presence in location 3rd SThree brand enters German market 2nd SThree brand Business enters German Established post market liberalisation of
Slide 51: German Market By Sector & Brand
German Market By Sector & Brand Investor Day 2010 Pharma/Life Banking & IT Accountancy Engineering Sciences Finance www.SThree.com SThree plc 51
Slide 52: Germany – A Broad Portfolio Of Clients
Germany – A Broad Portfolio Of Clients Investor Day 2010 Pharma/Life Banking & IT Accountancy Engineering Sciences Finance Large Medium Small www.SThree.com SThree plc 52
Slide 53: Strong Growth In 2009 Despite Economic Backdrop
Despite Economic Backdrop, SThree Investor Day 2010 Achieved Strong Growth In 2009 Runners at Period End Perm Placements +21.8% +17.6% 1,400 1,318 500 436 450 1,121 1,200 400 358 1,000 350 300 800 250 600 200 150 400 100 200 50 0 0 GERMANY GERMANY 2008 2009 2008 2009 Both Permanent and Contract saw
Slide 54: Some Trade Off Between Volume & Value
Some Trade Off Between Volume & Value Investor Day 2010 GPDR - Constant Currency Perm Placement Fee - Consultant Headcount Constant Currency -4.4% +19.7% -10.3% 120.0 188 107.2 14,000 12,809 102.5 200 11,484 100.0 12,000 157 150 80.0 10,000 8,000 60.0 100 6,000 40.0 4,000 50 20.0 2,000 0 0 0.0 GERMA
Slide 55: How Do Our German KPIs Compare With SThree Average?
How Do Our German KPIs Compare With Investor Day 2010 SThree Average? Permanent Average Fees – Constant Currency GPDR - Constant Currency 2009 Consultant Headcount Growth 110 102.5 10,757 11,484 12,000 100 40 90 79.5 10,000 30 80 19.7% 70 20 8,000 SThree 60 10 Average 6,000 50 0 40 Germany 4,000 -10
Slide 56: Germany Has Increasing Significance for SThree's GP
Germany Has Increasing Significance for Investor Day 2010 SThree’s GP Percentage of Total SThree Group GP 30 25 20% 20 % 16% 15 10% 10 6% 5 0 2007 2008 2009 2010 YTD Source: SThree Accounts www.SThree.com SThree plc 56
Slide 57: Three Phases of SThree's Development in Germany
Three Phases of SThree’s Development Investor Day 2010 in the German Market Increasing profitability Staff (inter and intra brand) Establish business Contract & Permanent Branch network Single location New sectors Single sector Sector experience Single discipline Regional expansion (copy & paste) Op
Slide 58: 90% of SThree's Staff In Germany Are German
90% of SThree’s Staff In Germany Are Investor Day 2010 German www.SThree.com SThree plc 58
Slide 59: How Big Might the German Market Be For SThree?
How Big Might the German Market Be For Investor Day 2010 SThree? c. 1000 staff 50 1000 900 40 800 c. 700 staff 700 Staff Headcount 30 600 No. of Offices c. 500 staff 500 20 17 400 offices c. 300 14 staff 12 offices 11 300 offices 10 c. 200 offices offices offices 10 200 100 0 0 2009 2010(e) 2011(e)
Slide 60: Challenges
Challenges Investor Day 2010 • China's threat to German engineering • Ageing population (also opportunity) • Taxation of freelancers (but we are agnostic) • German business culture • Staff retention/motivation www.SThree.com SThree plc 60
Slide 61: Summary
Summary Investor Day 2010 • Large economy with big SME bias • Strong structural growth • Attractive population/demographic profile • Well established business with mature, German staff • A substantial investment over time, now reaping rewards • Both SThree and the market have reached a tipping point
Slide 62: Singapore / Oil & Gas – A Case Study
Singapore / Oil & Gas – A Case Study Stuart Clark – Senior Regional Manager – March 2010 Investor Day 2010 www.SThree.com SThree plc 62
Slide 63: Agenda
Agenda Investor Day 2010 • My SThree Profile • Why Singapore? • The Oil & Gas Opportunity • Growth Plans & Summary www.SThree.com SThree plc 63
Slide 64: SThree Profile – Stuart Clark
SThree Profile – Stuart Clark Investor Day 2010 • Marketing Degree & Post Graduate certificate in IT Strathclyde University • Joined May 2002 – Scotland Progressive IT Permanent • Top biller on Scotland IT Contract • 2005 – Promoted to Manager of Scotland IT Contract • 2006/07 – Started Scotland Oil
Slide 65: Why Singapore?
Investor Day 2010 Why Singapore? www.SThree.com SThree plc 65
Slide 66: Singapore – A World Class Economy
Singapore – A World Class Economy Investor Day 2010 • High GDP capita, comparable to western standards – Singapore average was $35,495 in 2009, UK was $35,728 • Exceptionally strong economy – fell into recession because of globalised economy, however 7% growth is predicted for 2010 • A global tradin
Slide 67: Wealthy By Any Standards…
Wealthy By Any Standards… Investor Day 2010 GDP per capita USD Source: IMF 2009 www.SThree.com SThree plc 67
Slide 68: Singapore – The Sharp Bounce Back From Recession
Singapore – The Sharp Bounce Back Investor Day 2010 From Recession GDP growth Singapore, actual and forecast 10% 8% 6% 4% 2% 0% 2006 2007 2008 2009 2010 2011 -2% -4% Source: UBS estimate www.SThree.com SThree plc 68
Slide 69: Confidence Is Growing Within Singapore & Across Asia
Confidence Is Growing Within Singapore Investor Day 2010 & Across Asia • According to the HSBC Small Business Confidence Monitor, business confidence across Asia has returned to pre global financial crisis levels. The survey is based on the outlook of SMEs on areas including economic growth, investm
Slide 70: Singapore Is A Major Regional & Global Banking Centre
Singapore Is A Major Regional & Global Investor Day 2010 Banking Centre Global financial centres Global Financial Centres Index (GFCI) rating Top 10 Asia is catching up March September 2010 2009 ranking ranking London =1 (1) New York =1 (2) Hong Kong 3 (3) Singapore 4 (4) Tokyo 5 (7) Chicago 6 (8) Z
Slide 71: Singapore – A Diverse Economy
Singapore – A Diverse Economy Investor Day 2010 GDP breakdown by industry Other Services Hotels & Restaurants Industries Financial Services2% 10% Ow nership of 13% Dw ellings 4% Inf ormation & Communications 4% Manuf acturing 23% Business Services 13% Construction 5% Transport & Storage Utilities 9%
Slide 72: Singapore – An Ideal Business Environment
Singapore – An Ideal Business Investor Day 2010 Environment • Business friendly environment – Ranked 1 for ease of doing business, 4 for starting a business, 1 for employing workers (World Bank) • Highly educated and mobile workforce – 36% of total workforce are ex-pats, rising to 50% of the service
Slide 73: The Gateway To Asia
The Gateway To Asia Investor Day 2010 www.SThree.com SThree plc 73
Slide 74: Malaysia & Thailand – Recovering Faster Than The Rest Of The World
Malaysia & Thailand – Pushed Into Recession But Recovering Faster Than Investor Day 2010 The Rest Of The World 8 M alays ia Thailand UK Euro are a 6 World 4 % GDP Growth 2 0 2006 2007 2008 2009 2010 2011 -2 -4 -6 www.SThree.com SThree plc 74
Slide 75: Indonesia & Vietnam – Continuing Strong Growth
Indonesia & Vietnam – Riding Out The Global Downturn & Continuing Strong Investor Day 2010 Growth GDP growth, actual and forecast constant prices 9 Indonesia Vietnam 8 7 6 % GDP Growth 5 4 3 2 1 0 2006 2007 2008 2009 2010 2011 Source: UBS Source: IMF, World Economic Outlook October 2009 www.SThree.c
Slide 76: IT & Banking – Our Markets Show Strong Growth
IT & Banking – Our Markets Show Investor Day 2010 Strong Growth IT – a fast growing sector with immediate wins IT spending is projected to grow faster in 2010, building on momentum from a pick-up in consumer spending in the second half of last year. The market is forecast by BMI to increase from US$
Slide 77: Pharma & Accountancy – Lucrative
Pharma & Accountancy – Lucrative Investor Day 2010 Pharma – a rapidly growing market Singapore is a major pharmaceutical manufacturing hub. Pharmaceutical spending will increase from US$568mn in 2008 to US$753mn in 2019. Pharmaceuticals now account for more than 16% of the country’s manufacturing pr
Slide 78: Singapore – Competitor/Comparator Pyramid
Singapore – Competitor/Comparator Investor Day 2010 Pyramid SPECIALIST HIGHER AVERAGE FEE LOWER GENERALIST AVERAGE FEE www.SThree.com SThree plc 78
Slide 79: Business Comparison
Business Comparison Investor Day 2010 IT- Non IT Split 2009 SThree Singapore NON IT IT 28% 29% IT NON IT 72% 71% Perm – Contract Split 2009 SThree Singapore Contract Perm 4% 42% Contract 58% Perm 96% Source: SThree Accounts www.SThree.com SThree plc 79
Slide 80: Sector Diversification Leads To Global Opportunities
Sector Diversification Leads To Global Investor Day 2010 Opportunities The Glasgow/Singapore Example SINGAPORE IT SCOTLAND SCOTLAND SE ASIA SE ASIA SINGAPORE IT Oil & Gas Oil & Gas Oil & Gas Banking Virtual Office Based Glasgow Based Glasgow Based Glasgow Based Singapore SINGAPORE Accountancy PHASE
Slide 81: The Oil & Gas Opportunity
Investor Day 2010 The Oil & Gas Opportunity www.SThree.com SThree plc 81
Slide 82: Oil – Plummeting Prices Because Of The Recession, But Recovery Underway
Oil – Plummeting Prices Because Of The Investor Day 2010 Recession, But Recovery Underway WTI crude oil front month futures, 2005-present Source: Financial Times, Bloomberg www.SThree.com SThree plc 82
Slide 83: The Futures Market Predicting Steady Growth
The Futures Market Predicting Steady Investor Day 2010 Growth www.SThree.com SThree plc 83
Slide 84: Long-term Demand For Energy To Increase Globally
Long-term Demand For Energy To Investor Day 2010 Increase Globally • Global energy demand is likely to grow 40% by 2030 (International Energy Agency) • Demand will fluctuate mirroring the economic climate (i.e. oil prices fell sharply during the recession) – but growing demand from the BRIC countrie
Slide 85: A Regional Centre For Oil & Gas
A Regional Centre For Oil & Gas Investor Day 2010 • Despite not having any oil or gas fields, Singapore is a key supplier of oil and gas equipment and services to the world • Singapore is one of the world’s top three export refining centres • Singapore is the world’s third largest oil and oil produc
Slide 86: Further Opportunities In SE Asia
Further Opportunities In SE Asia Investor Day 2010 • Indonesia – The largest oil producer in SE Asia. 6 oil and gas upstream projects and facilities, (US$908.9 million), are expected to commence soon • Malaysia – The 27th largest oil producer in the world, ranked above Australia. Numerous projects i
Slide 87: Great Opportunities In Oil & Gas Recruitment
Great Opportunities In Oil & Gas Investor Day 2010 Recruitment • Severe skills shortage – 38% shortage of engineers and geoscientists and a c. 28% shortage of instrumentation and electrical workers by 2009. Deloitte estimates that in reality the skills shortage is much worse • The skills shortage is
Slide 88: A Selection Of Our Clients
A Selection Of Our Clients Investor Day 2010 www.SThree.com SThree plc 88
Slide 89: Growth Plans In Singapore
Growth Plans In Singapore Investor Day 2010 • Highly experienced team now based in Singapore • Further specialisation within Energy, IT and Banking • Diversification into new sectors already covered by SThree – Pharmaceuticals, Accountancy, Legal, Supply Chain and Logistics • Doubling of Headcount b
Slide 90: Oil & Gas – Our Plans For Growth
Oil & Gas – Our Plans For Growth Investor Day 2010 • A global presence, in all key strategic locations: From Houston to Saudi to Rio to Moscow. We intend to be in all the key oil and gas centres globally • Covering more segments of the market: To date we have focussed on upstream, going forward we w
Slide 91: Oil & Gas – Indicative Future Footprint
Oil & Gas – Indicative Future Footprint Investor Day 2010 Current locations 2010 2011 2012 2013 London Qatar Saudi Arabia Brazil South Africa Amsterdam USA Malaysia Bahrain Glasgow Indonesia Norway Singapore Canada Russia Perth Abu Dhabi www.SThree.com SThree plc 91
Slide 92: Conclusions
Conclusions Investor Day 2010 • Singapore offers SThree a diverse range of opportunities – We have already built up a strong presence in Oil & Gas, Banking and IT in just over a year of trading in country • Singapore offers us a gateway to South-East Asia – Indonesia & Vietnam have been identified a
Slide 93: IT As A Strategic Differentiator
IT As A Strategic Differentiator David Timoney – Information Services Director – March 2010 Investor Day 2010 www.SThree.com SThree plc 93
Slide 94: Agenda
Agenda Investor Day 2010 • Introduction – All about me, all about SThree • We don’t sell people – What is the value of information to a recruitment business? • Everything changes, everything stays the same – The impact of technology and new media on recruitment • The SThree difference – What do we d
Slide 95: Introduction
Introduction Investor Day 2010 • David Timoney – SThree Director of Information Services • 1984 to 1997: Chevron UK – Oil & gas, exploration & production, EMEA – High-tech earth sciences + global corporate IT – Early adopter: Web technology & business process reengineering • 1997 to today: SThree Pl
Slide 96: Introduction
Introduction Investor Day 2010 • 27,000 online adverts – Automation distributes across a network of jobboards and aggregators – Allows fine-grained management of quotas and thus ROI • 227,000 incoming CVs – Automation has reduced processing overhead from 45 to 2.5 FTE and improved turnaround from 3
Slide 97: The Value Of Information
The Value Of Information Investor Day 2010 • Recruitment is relationship management • Recruitment is episodic and promiscuous • Good recruitment depends on memory • Good recruitment depends on current insight • Good recruitment = good knowledge management • The foundation of knowledge is information
Slide 98: The Impact Of Technology & New Media
The Impact Of Technology & New Media Investor Day 2010 The big change over 25 years has been a massive increase in scale Increase in relationships for each recruitment episode is geometric: post fax email online search & apply networking High-tech (microfiche) Media awareness Get on the phones KPI F
Slide 99: The Impact Of Technology & New Media
The Impact Of Technology & New Media Investor Day 2010 • The IT crowd expect to use IT – There is pressure to be innovative and an early adopter • We recruit mid-20s graduates used to online paradigms – Need to get productive quickly, need to raise ability of all • We launched our own job board: The
Slide 100: The Impact Of Technology & New Media
The Impact Of Technology & New Media Investor Day 2010 • The impact of professional networking sites • New ways of doing the same things What do you use professional networking sites like Linkedin and Xing for? Get headhunted I don’t really use it – I joined because everyone else has Keep up to date
Slide 101: The Impact Of Technology & New Media
The Impact Of Technology & New Media Investor Day 2010 Which channels do you use most when job hunting? Targeting com panies and contactin g them directly/em ailin g CVs Personal networking via personal contacts Job Board s So cial netw orking si tes such a s Facebook Germany Professional n etworkin
Slide 102: The Impact Of Technology & New Media
The Impact Of Technology & New Media Investor Day 2010 • New media does not disintermediate – This is a 10 year old threat that never transpired (cf estate agency) – Candidate control is the hard work – Technology can’t do it, it’s a people thing – Media providers won’t do it, any more than employer
Slide 103: The Impact Of Technology & New Media
The Impact Of Technology & New Media Investor Day 2010 • The candidate is the campaign … www.SThree.com SThree plc 103
Slide 104: The SThree Difference
The SThree Difference Investor Day 2010 • Integrated sales system: Apollo – Siebel CRM + Siebel Marketing for relationship management – Bespoke candidate management: advertising, response-handling, search & selection, shortlisting, contact, CV distribution – We don’t have variety as the legacy of me
Slide 105: The SThree Difference
The SThree Difference Investor Day 2010 • Multi-brand, multi-sector, multi-geographic online presence – Our websites are transaction engines in a common framework • Common, global IT infrastructure – Citrix provides a small local footprint, global network, with seamless access to shared data – Our c
Slide 106: The SThree Advantage
The SThree Advantage Investor Day 2010 • We’re information management experts • We have a mature technology capability • We have a “go anywhere” infrastructure • We can easily extend to new sectors and geographies • We’re reaping the benefit of a decade of investment • We’re designed for growth www.
Slide 107: The Future Of Information Technology
The Future Of Information Technology Investor Day 2010 • A means to nurture relationships • A means to build knowledge about customers • A means to develop understanding of our business • Corporate memory, market foresight • IT is a strategic differentiator for SThree • The future is now www.SThree.
Slide 108: Demonstration Of Apollo & MIS
Demonstration Of Apollo & MIS Andy Hallett – Head of Business Systems & Process – March 2010 Investor Day 2010 www.SThree.com SThree plc 108
Slide 109: Notes
Notes Investor Day 2010 www.SThree.com SThree plc 109
Slide 110: Notes
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Slide 111: Notes
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Slide 112: Notes
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Slide 113: Notes
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Slide 114: Notes
Notes Investor Day 2010 www.SThree.com SThree plc 114