Robert Walters PLC · LSE:RWA
Robert Walters — Investor Day (2019)
79 slides from Robert Walters's investor day presentation, Sep 5, 2019
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Slide 2: Presenters
ASIA PACIFIC Toby Fowlston, CEO Asia Pacific EMEA and AMERICAS Antoine Morgaut, CEO EMEA and Americas RESOURCE SOLUTIONS Oliver Harris, CEO Resource Solutions INNOVATION Faye Walshe, Group Innovation Director 2 © Robert Walters plc
Slide 3: Mission: leading global specialist professional recruitment group
Mission: to be the leading global specialist professional recruitment group Specialist professional Clerical recruitment Recruitment process recruitment Europe outsourcing 3 © Robert Walters plc
Slide 4: Robert Walters Group purpose, principles and strategy
Purpose Powering people and organisations to fulfil their unique potential Principles Innovation, teamwork, integrity and passion – these principles Robert are the foundation stones of the activity of all staff worldwide Walters Group Strategy The Group’s strategy for growth is centred on organic in
Slide 5: Group leadership
ROBERT WALTERS ALAN BANNATYNE Chief Executive Chief Financial Officer Officer 34 * 17 * TOBY FOWLSTON ANTOINE MORGAUT OLIVER HARRIS CEO CEO CEO Asia Pacific EMEA and Americas Resource Solutions 20 * 20 * 21 * *denotes length of tenure 5 © Robert Walters plc
Slide 6: Net fee income by region
UK – 28% of Group NFI APAC – 37% of Group NFI 23% 22% 31% London 2014: 84% Japan 2014: 26% Regions 2014: 16% Australia 2014: 29% Hong Kong 2014: 12% 6% Singapore 2014: 11% New Zealand 2014: 7% 77% Other 2014: 15% 8% 21% 12% Europe – 27% of Group NFI Other International – 8% of Group NFI 6% 2% 2% 2%
Slide 7: Net fee income by discipline
4% 4% 4% 33% Commerce 4% IT Banking 4% Sales and Marketing HR Engineering 5% Support Other Legal Procurement 10% 13% 19% 7 © Robert Walters plc
Slide 8: £m © Robert Walters plc
450 400 350 300 250 £m 200 150 100 50 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 8 © Robert Walters plc
Slide 9: © Robert Walters plc
5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2012 2013 2014 2015 2016 2017 2018 2019 9 © Robert Walters plc
Slide 10: Peer comparison
25% 22% 20% 15% 12% 10% 10% 10% 5% 0% Hays Page Group Sthree Robert Walters 10 © Robert Walters plc
Slide 11: Dividend per share in pence
16.0 14.0 12.0 10.0 Pence 8.0 6.0 4.0 2.0 0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 11 © Robert Walters plc
Slide 12: Peer comparison by region
US average Asia average Europe average Page Group Hays UK average Robert Walters SThree Staffline 12 © Robert Walters plc
Slide 13: 2018 Highlights
2018 HIGHLIGHTS ROBERT WALTERS GROUP 2018 HIGHLIGHTS hs WALTERS La er ROBERT WALTERS people RESOURCESOLUTIONS
Slide 14: Asia Pacific
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Slide 15: Toby Fowlston career timeline
Joined Managing Robert Director Managing Walters Director London & Director London London Guildford SEA 1997 1999 2003 2005 2011 2012 2013 2015 2019 Qualified Manager Managing Managing CEO Solicitor Banking Director Director Asia London Permanent Singapore Pacific London 15 © Robert Walters plc
Slide 16: Asia Pacific leadership
TOBY FOWLSTON CEO Asia Pacific 20* JAMES MATTHEW NICHOLSON JEREMY ERIC MARY KIMBERLYN LU GERRIT BENNETT MONTY SUJANANI ROB BRYSON MD, Australia & SAMPSON Country Manager, Country Manager, BOUCKAERT MD, Greater China Country Manager, MD, Singapore New Zealand MD, Northeast Asia Indonesia Malaysia MD,
Slide 17: Asia Pacific recruitment
Asia Pacific Permanent/contract 24% recruitment Contract ▪ Net fee income: £36.4m (2018: £32.6m) 2018: 24% 76% Permanent 2018: 76% Locations: Australia New Zealand China Philippines Hong Kong South Korea India Singapore Indonesia Taiwan Japan Thailand Malaysia Vietnam Recruitment net fee income by d
Slide 18: Current market trends and key market strengths
Current Market Trends ▪ Strong financial services growth and demand for regulatory, compliance and risk professionals in Australia ▪ Thriving technology and transformation market across the region ▪ Investment in public sector has driven both permanent and contract hiring activity in Wellington ▪ He
Slide 19: Growth opportunities
Growth Opportunities ▪ Continued focus on margin enhancement and developing SME market in Australia ▪ Recovery of the mining sector in Australia ▪ Booming technology and transformation sectors ▪ Infrastructure and engineering government investment Industry Award Winners: British & Irish Industry Awa
Slide 20: Current market trends and key market strengths
Current Market Trends ▪ Strong demand for bilingual professionals with international experience ▪ Increasing number of international businesses setting up R&D centres in Taiwan ▪ Mainland China is now one of the leading global investors in digital technologies and e-commerce ▪ US-China trade war Key
Slide 21: Growth opportunities
Growth Opportunities ▪ Strong demand for professionals with the technical expertise to help companies implement digitalisation projects ▪ Shenzhen fast developing as a major tech hub for Chinese businesses – strong demand for skills in emerging technologies such as machine learning and AI (Internet
Slide 22: Current market trends and key market strengths
Current Market Trends ▪ Acute bilingual professional talent shortage across all sectors and disciplines allowing further margin enhancement ▪ 20 – 25% salary inflation for hard to fill roles commonplace ▪ Skill shortages across specialised roles such as technology, digital, engineering, sales and ma
Slide 23: Growth opportunities
Growth Opportunities ▪ Demand strong from both MNCs and increasingly Japanese businesses looking to expand internationally – increased need for bilingual professionals ▪ Some softening of visa restrictions in Japan to aid inward talent flow ▪ Increased participation of women in the workforce in Japa
Slide 24: Current market trends and key market strengths
Current Market trends ▪ Digitalisation and transformation a major theme across the region – e.g. the success of four tech unicorns in Indonesia (GoJek, Traveloka, Tokopedia, Bukalapak) ▪ Greater injection of foreign investment, in particular from China, into the region ▪ Increased need for local tal
Slide 25: Growth opportunities
Growth Opportunities ▪ Booming technology and digital sectors as companies transform their digital operations and e-commerce activity grows ▪ War for talent and strong wage inflation for hard-to-source skills (circa 20 – 30%) ▪ Expansion into the Eastern Economic Corridor in Thailand due to strong i
Slide 26: Q&A
| © Robert Walters ple ROBERT WALTERS es
Slide 27: EMEA and Americas
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Slide 28: Antoine Morgaut career timeline
Managing Director Managing Director CEO CEO France Europe Europe & South America EMEA & Americas 1999 2005 2007 2009 2010 2016 2019 28 © Robert Walters plc
Slide 29: EMEA and Americas leadership
ANTOINE MORGAUT CEO EMEA & Americas 19 * CHRIS HICKEY KEVIN GIBSON ROB VERMAAK MARCO LAVEDA NICK DUNNETT LOUISE SIMON CEO CEO RMD MD MD CAMPBELL BROMWELL UKMEA LATAM Benelux Iberia Germany & MD MD Switzerland Ireland North America 20* 22* 9* 18* 16* 14* 15* *denotes length of tenure 29 © Robert Walt
Slide 30: Europe
Europe | © Robert Walters ple ROBERT WALTERS es
Slide 31: Europe recruitment
Europe Permanent/contract/interim 22% recruitment Interim ▪ Net fee income: £26.2m (2018: £24.2m) 2018: 21% 52% Permanent 2018: 55% Locations: Benelux France 26% Germany Contract Ireland 2018: 24% Portugal Spain Switzerland Recruitment net fee income by discipline 6% 12% Commerce Finance 2018: 58% 5
Slide 32: Current market trends and key market strengths
Current Market Trends ▪ Europe’s economy continued to expand but at a slower rate ▪ “Gilets Jaunes” chaos in France and political uncertainty across Europe affected decision making ▪ Benelux and Germany – extremely candidate driven markets at all levels of seniority Key Market Strengths ▪ Good geogr
Slide 33: Growth opportunities
Growth Opportunities ▪ Germany ▪ France temp & perm ▪ Benelux – continued expansion in line with market growth ▪ Rapid growth in Spain ▪ Expansion of Walters People across Europe ▪ Increased focus on interim management 33 © Robert Walters plc
Slide 34: Focus Germany
FOCUS GERMANY OPENED IN 2010 Current Market Trends ▪ Uncertain economic forecast (US-China trade war) ▪ Immature recruitment market but developing ▪ Distinct regional markets – at present we only cover 3 regions Key Market Strengths ▪ Strong reputation and perceived as a premium brand. Business cu
Slide 35: Focus Spain
FOCUS SPAIN OPENED IN 2009 Current Market Trends ▪ High growth economy ▪ Educated, specialist workforce and light touch labour regulations. Competitive ▪ Political environment is volatile due to Catalonia question and elections Key Market Strengths ▪ Three years of consecutive quarterly growth ▪ I
Slide 36: United Kingdom
United Kingdom 36 © Robert Walters plc
Slide 37: UK recruitment
UK Permanent/contract recruitment 34% ▪ Net fee income: £27.7m (2018: £25.2m) Contract 2018: 38% 66% Permanent 2018: 62% Locations: Birmingham Bracknell London Leeds Manchester Milton Keynes Recruitment net fee St Albans income by discipline 4% 14% Commerce Finance 2018: 47% Average Tenure Banking F
Slide 38: United Kingdom market trends and strengths
UNITED KINGDOM OPENED IN 1985 Current Market Trends ▪ Uncertainty around Brexit has undoubtedly had an effect on general client sentiment, particularly in London ▪ Candidate confidence across most industries is relatively subdued due to continued Brexit uncertainty ▪ Tech market continues to grow
Slide 39: United Kingdom growth opportunities
UNITED KINGDOM GROWTH OPPORTUNITIES ▪ Temp and interim ▪ Technology recruitment ▪ Post Brexit stabilisation Footprint Bracknell, Birmingham, London, Leeds, Manchester, Milton Keynes and St Albans 39 © Robert Walters plc
Slide 40: Other International
Other International 40 © Robert Walters plc
Slide 41: Other International recruitment
Other International Permanent/contract recruitment ▪ Net fee income: £8.3m (2018: £6.5m) 100% Permanent 2018: 100% Locations: Brazil Chile Canada Middle East South Africa USA Recruitment net fee 1% income by discipline 19% 22% Commerce Finance 2018: 24% Average Tenure Banking Finance 2018: 38% Sales
Slide 42: North America
NORTH AMERICA OPENED IN 1994 Current Market Trends ▪ California: Tech firms continue to grow rapidly – an incredibly dynamic and competitive hiring market ▪ Candidate driven. Strong competition for qualified talent Growth Opportunities ▪ Cement our position as a leader in the tech market in San Fr
Slide 43: LATAM
LATAM OPENED IN 2010 Current Market Trends ▪ New Brazilian government has generated business expectation but reforms are pending and we have seen no material upside yet ▪ Latam economy is expected to strengthen somewhat this year, due to improved sentiment and flexible monetary policy Growth Oppor
Slide 44: Q&A
| © Robert Walters ple ROBERT WALTERS es
Slide 45: Resource Solutions
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Slide 46: Oliver Harris career timeline
Team Leader Managing Director Banking Operations Financial Services CEO Contract Contract Resource Solutions London London 1998 2000 2001 2004 2008 2010 Trainee Recruitment Manager Managing Director Consultant Finance & Accountancy Contract division London Contract UK & South Africa London 46 © Robe
Slide 47: Client value add and recruitment channels
Value Add: ▪ Workforce Planning Clients ▪ Role sign-off ▪ Market Insights ▪ Variety of tools Non-Agency Channels Agency Internal Referral Direct ▪ Incremental recruitment income ▪ Wholly separate recruitment database ▪ Defending the supply channels of the Group ▪ Close working relationship between R
Slide 48: Non-agency channels: internal referral
Non-Agency Channels Agency Internal Referral Direct ▪ VIP concierge service facilitating movement within a company ▪ Helping clients retain and grow their talent 48 © Robert Walters plc
Slide 49: Non-agency channels: direct
Non-Agency Channels Agency Internal Referral Direct ▪ Social advertising ▪ Promotional events ▪ Reward schemes 49 © Robert Walters plc
Slide 50: Sourcing tools
Non-Agency Channels Agency Internal Referral Direct ▪ Sourcing tools include: 50 © Robert Walters plc
Slide 51: Non-agency channels
Non-Agency Channels Agency Internal Referral Direct Underpinned by 51 © Robert Walters plc
Slide 52: Global service centres and on-site locations
PRAGUE GLOBAL SERVICE Resource Solutions On-site Locations Opened 2018 CENTRE MANCHESTER Australia Netherlands China New Zealand Czech Republic Philippines France Singapore Germany South Africa Hong Kong South Korea SHENZHEN Opening May Hungary Switzerland 2019 India Taiwan Indonesia Thailand Irelan
Slide 53: New client wins by sector
Insurance and Pharmaceutical and Technology Financial Services Professional Services Media and Leisure Business Services Manufacturing New Client 53 © Robert Walters plc
Slide 54: Resource Solutions leadership
OLIVER HARRIS CEO *Average tenure: 10.5 years 20* SIMON DAVID NORMA ED SNOW CHRIS BRADBERRY BARR GILLESPIE Global Head of CARTWRIGHT MD, EMEA & US MD, APAC MD, Enterprise Business Global Director, Accounts Transformation Operational Infrastructure 7* 18* 11* 16* 1* *denotes length of tenure 54 © Rob
Slide 55: Growth drivers: Total Talent and RPO market
▪ Global RPO market forecast to grow by 11.8% per annum through to 2021* ▪ Organic growth with existing clients: ▪ Internationally e.g: ▪ Schroders (Luxembourg) ▪ Man Group (US) ▪ MUFG (Hong Kong) ▪ Honeywell (Sub-Saharan Africa) ▪ New products and services such as: ▪ Statement of Work (SOW) ▪ IR35
Slide 56: Employee engagement survey and awards
2019 Employee Engagement Survey Recent Awards Awards Top 10 ▪ 90% of employees willing to go the extra mile for Pre-Employment Resource Solutions Screening Consulting/Services ▪ 89% of employees feel Resource Solutions Companies 2019 promotes diverse hiring and can be their authentic self at work ▪
Slide 57: Q&A
| © Robert Walters ple ROBERT WALTERS es
Slide 58: Innovation
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Slide 59: Innovation strategy and key trends
• LinkedIn Talent Insights ▪ Innovation strategy Data & Analytics • RS Heatmaps ▪ Key industry trends • Power BI ▪ Focus on successful trials and implementations across the Group Diversity & Video • Video My Job Ads • Adify AI • Arya & GDPR Update • Interview Scheduling Automation & • Dot The Bot Ch
Slide 60: Technology as an enabler, not a threat
“ At Robert Walters we see technology as an enabler, not a threat. Our test & trial strategy ensures that we are evaluating innovative new technology and determining whether it delivers productivity enhancements to our recruiters before we decide to talk credibly about it to our clients. ” 60 © Robe
Slide 61: Industry Trends
Industry Trends © Robert Walters plc
Slide 62: Waves of change: recruitment market consolidation 2016-2018
Waves of change Radical consolidation in the recruitment market 2016 – 2018 July 2016 2017 2018 June Nov May May Google Hire Google Jobs Search 62 © Robert Walters plc
Slide 63: Consolidation 2018-2019
Consolidation 2018 – 2019 “New Work” July 2018 2019 Oct Dec April ▪ +AI into Google Hire ▪ Talent Solutions: Job Search, Commute Search & Profile Search + 61% 63 © Robert Walters plc
Slide 64: Explosion in start-ups seeking funding
Explosion in start-ups seeking funding Trend: ▪ Some start-ups feel like features, rather than fully fledged businesses ▪ Acquired, pivot or disappear 185+ 64 © Robert Walters plc
Slide 65: Innovation team purpose
“We track consumer trends and identify early changes in the recruitment market as the impact hits.” Team Purpose: ▪ Monitor consumer trends which shape recruitment landscape ▪ Consult to our clients ▪ Seek out innovative recruitment technology for trial ▪ Challenge our existing processes and service
Slide 66: Mega Trends in Recruitment events
Mega Trends in Recruitment ▪ Madrid 26 Sept ▪ Barcelona 27 Sept 2018 ▪ Singapore 21 Nov ▪ Jakarta 22 Nov ▪ Kuala Lumpur 23 Nov ▪ Paris 10 Dec ▪ Shanghai 11 Jun ▪ Taipei 12 Jun ▪ Hong Kong 13 Jun 2019 ▪ Dusseldorf 25 Jun ▪ Frankfurt 26 Jun ▪ Amsterdam 27 Jun ▪ Sydney, Melbourne Oct ▪ Auckland, Wellin
Slide 67: Innovation delivered: successful trials and implementations
Innovation Delivered: Successful trials & implementations Workforce: Data & Diversity & Automation & AI Mobility & Analytics Video Ads ChatBots Social © Robert Walters plc
Slide 68: RS Heatmaps
RS HEATMAPS ▪ Resource Solutions’ unique market mapping capability draws from a number of credible sources of information to produce bespoke heat maps within a client’s specific location or job function. ▪ RS Heatmaps provide clients’ hiring community with real-time data to support and shape their s
Slide 69: LinkedIn Talent Insights
▪ Talent Pool Reports ▪ Geographic spread of talent/demand/ finding hidden gems ▪ Company Reports ▪ Workforce distribution/where is talent being lost gained/attrition alerts ▪ Rolled out to all global RW consultants with videos, events and training ▪ Company research & BD ▪ Inform client recruiting
Slide 70: Power BI reporting and analytics
▪ Increasing recruiter productivity with real-time reporting and analytics suite ▪ Strategic vision: moving from static data and visibility to predictive analytics to guide future activity 70 © Robert Walters plc
Slide 71: Video My Job
▪ Australia-based VideoMyJob enables us to bring jobs to life and challenge assumptions ▪ Videos are authentic and can be produced in minutes ▪ Video Job Ads are a great way to challenge assumptions about your vacancy ▪ Rolled out across multiple regions ▪ Great results and engagement 71 © Robert Wa
Slide 72: Adify job ad analysis
▪ Thousands of ads (clients and RS & RW) analysed through our bespoke tool, leading to more gender balanced long and shortlists ▪ Measures: ▪ Readability ▪ Sentiment ▪ Tone ▪ Mobile appeal ▪ Gender appeal ▪ Clients positively reviewing our ability to change the gender make up of shortlists 72 © Robe
Slide 73: Arya AI sourcing platform
▪ AI sourcing platform which automates the early recruitment process ▪ 12 month trial proved Arya could read job specs and accurately source in multiple geographic locations ▪ Leading the way in GDPR compliance for us and for our clients ▪ CRITICAL VALUE: Learning at pace, handling data responsibly.
Slide 74: Interview scheduling automation
▪ Online interview scheduling tool which connects to candidates’ calendars to facilitate 24/7 booking and improved CX ▪ Recruiters’ time was saved by the removal of the “back and forth” communications with candidates ▪ Over circa 60 interviews ▪ 4.5hrs recruiter time saved ▪ 3 hrs co-ordinator time
Slide 75: Dot the Bot
▪ Meet Dot the Bot our new contractor query bot ▪ Programmed to answer Contractor questions in over 100 different categories ▪ CX gains: Improving immediacy of contractor care ▪ Productivity wins: Free up our co-ordinators time to field more complex queries ▪ Next Steps: Measuring Operational Model
Slide 76: Impress.ai chatbot screening
▪ Impress.ai is a chatbot-led product which enables automated screening interviews and is able to engage with applicants intelligently through an AI-powered chatbot. Uses machine learning software ▪ The proof of value trial at Barclays in India commenced on 25th March 2019 ▪ Frictionless application
Slide 77: Workplace by Facebook rollout
▪ Global roll out of Workplace by Facebook ▪ 77% uptake within the first week ▪ 150 Groups set up ▪ Country News & Updates Groups ▪ Resources Groups ▪ Global training and L&D Groups ▪ Social Groups ▪ Wellbeing, Charitable & CSR Groups ▪ Transformed our ability to communicate visually and made us a m
Slide 78: New Ways of Working
▪ New Ways of Working launched across 24 countries over last 18 months. ▪ Live for over circa 1500 RW staff ▪ Productivity gains: ▪ Updating notes on database while on the move ▪ Speed of response to client and candidate queries ▪ Higher-tech client presentations ▪ #LifeAfterWow shows how passionate
Slide 79: Q&A
| © Robert Walters ple ROBERT WALTERS es