Hays Plc · LSE:HAS
Hays — H1 FY2022 Earnings Presentation
148 slides from Hays's earnings presentation, Feb 25, 2022
Slide 1: Navigating the New World of Work
NAVIGATING THE NEW WORLD OF WORK HALF-YEAR RESULTS For the six months ended 31 December 2021
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This presentation contains certain statements that are neither reported financial results nor other historical information. The information contained in this presentation is not audited, is for personal use and informational purposes only and is not intended for distribution to,
Slide 3: Agenda
AGENDA 1 OPERATING REVIEW ALISTAIR COX, CHIEF EXECUTIVE 2 FINANCIAL REVIEW PAUL VENABLES, FINANCE DIRECTOR 3 CURRENT TRADING PAUL VENABLES, FINANCE DIRECTOR 4 STRATEGY UPDATE ALISTAIR COX, CHIEF EXECUTIVE APPENDICES 3
Slide 4: Operating Review
OPERATING REVIEW ALISTAIR COX CHIEF EXECUTIVE
Slide 5: Our strategy is delivering for all our stakeholders
OUR STRATEGY IS DELIVERING FOR ALL OUR STAKEHOLDERS Over 150,000 talented people placed in new jobs in H1 FY22 OUR PURPOSE Extensive engagement with Hays online learning & development platforms Strong client and candidate confidence Increased global job churn and shortened time to hire OUR M
Slide 6: Record fees, significant investment and another upgrade to FY22 profit expectations
NET FEES +39% to £565.3m OP PROFIT +327% to £101.6m EPS +444% to 4.08p NET CASH* -38% to £236.9m RECORD FEES, SIGNIFICANT INVESTMENT AND GOOD NEW YEAR ‘RETURN TO WORK’ DRIVES ANOTHER UPGRADE TO FY22 PROFIT EXPECTATIONS Our focus remains on… Key developments in H1 FY22 Record fees, up 39%. 21 count
Slide 7: ANZ: strong growth, led by Perm
ANZ net fees (£m) H1 20 94.8 STRONG GROWTH, LED BY PERM. MOMENTUM IMPROVED H1 21 74.4 FOLLOWING LIFTING OF LOCKDOWN RESTRICTIONS H1 22 95.7 Net fees up 33%, operating profit up 60% Business confidence improved through the half year Perm fees up 86%; Temp up 14%. Private sector up 41%; Public sec
Slide 8: Germany: record contractor numbers drive fee and profit growth
Germany net fees (£m) RECORD CONTRACTOR NUMBERS HELP DRIVE H1 20 H1 21 110.5 144.9 EXCELLENT FEE AND PROFIT GROWTH H1 22 143.6 Net fees up 38%, operating profit up 317% Business confidence is high, with clients increasingly investing in new, and extending existing, projects Contracting (57% of f
Slide 9: UK&I: fees and profit improved through the half
UK&I net fees (£m) FEES AND PROFIT IMPROVED THROUGH THE HALF, H1 20 H1 21 92.4 126.7 PARTICULARLY IN PERM H1 22 127.8 Net fees up 39%, operating profit up £19.2m YoY Strong activity levels drove good sequential fee growth Perm fees up 69%; Temp up 21% Private sector fees up 52%; Public sector
Slide 10: Rest of World: record fees in 20 countries
RoW net fees (£m) RECORD FEES IN 20 COUNTRIES AND STRONG PROFIT H1 20 H1 21 145.5 186.7 GROWTH H1 22 198.2 Overall: Fees up 43%, operating profit up £21.3m LfL Perm up 55%, Temp up 23%. 20 country records Operating profit of £21.1m represented strong sequential profit growth of £8.7m, or 70%, vs
Slide 11: Operational Summary
OPERATIONAL SUMMARY Record fees driving strong profit recovery. Good Perm & Temp momentum through the half year Strong market conditions in all regions, driven by high levels of client & candidate confidence, shortening time to hire, skill shortages and wage inflation Significant headcount inv
Slide 12: Financial Review
2. FINANCIAL REVIEW PAUL VENABLES FINANCE DIRECTOR
Slide 13: Record fees, with excellent performance in Perm and Temp
RECORD FEES, WITH EXCELLENT PERFORMANCE IN PERM AND TEMP H1 FY22 net fee review Group net fee growth* ‒ Temp vs Perm 67% 65% 61% Strong activity and GROUP trading in all major Temp markets, including record 41% 39% 37% quarterly fees in Q2 Perm High levels of client and 24% 26% 22% candidate con
Slide 14: Record LFL fees and strong profit recovery
RECORD* LFL FEES AND STRONG PROFIT RECOVERY, COMBINED WITH A STRONG CASH POSITION Net fees Operating profit Net cash*** H1 18 £525.8m H1 18 £116.5m H1 18 £34.5m H1 19 £568.0m H1 19 £124.1m H1 19 £32.5m H1 20 £553.1m H1 20 £100.1m H1 20 £13.2m H1 21 £422.8m H1 21 £25.1m H1 21 £379.5m H1 22 £565.3m H1
Slide 15: Strong profit and earnings growth
Basic EPS (p) STRONG PROFIT AND EARNINGS GROWTH H1 20 4.60 H1 21 0.75 H1 22 4.08 Income Statement Six months ended 31 December 2021 2020 Reported LFL* £m £m growth growth Turnover 3,067.0 2,755.2 11% 15% Net fees 565.3 422.8 34% 39% Operating profit 101.6 25.1 305% 327% Net finance charge (3.9) (4.0
Slide 16: Consistently strong performance in all divisions
CONSISTENTLY STRONG PERFORMANCE IN ALL DIVISIONS Australia & NZ (17% of net fees) LfL growth Germany (25% of net fees) LfL growth Net Fees £95.7m 33% Net Fees £143.6m 38% Op Profit £26.0m 60% Op Profit £36.3m 317% Momentum improved as restrictions eased in October Contracting delivered a record
Slide 17: Excellent Perm and Temp performance
Split of net fees EXCELLENT PERM AND TEMP PERFORMANCE, INCLUDING H1 20 58% Temp H1 21 62% Temp GROWTH IN AVERAGE PERM FEE AND TEMP MARGIN H1 22 56% Temp Review of Group Permanent and Temporary Businesses* Permanent placement business Temporary placement business 62% net fee increase 25% net fee incr
Slide 18: Profit growth driven by record fees and productivity
PROFIT GROWTH DRIVEN BY RECORD FEES AND EXCELLENT CONSULTANT PRODUCTIVITY, DESPITE SIGNIFICANT INVESTMENT H1 FY22 operating profit bridge (£m) 158.3 ~ Cost-related ~ (69.1) (4.0) (2.6) (4.8) 101.6 25.1 (1.3) H1 FY21 FX 39% LFL fee Increase in SGI Travel & Other costs** H1 FY22 operating increase sta
Slide 19: FX translation sensitivities
THE AUSTRALIAN DOLLAR AND EURO REMAIN SIGNIFICANT FX TRANSLATION SENSITIVITIES FOR THE GROUP Key FX rates and sensitivities Six months ended 31 December 2021 Average Closing Australian dollar 1.8635 1.8628 Euro 1.1742 1.1902 Impact of a one cent change per annum Net fees Op profit Australian dollar
Slide 20: Half-year conversion rate increased to 18.0%
HALF-YEAR CONVERSION RATE* INCREASED TO 18.0%. BALANCED APPROACH OF DRIVING PROFITABILITY AND INVESTING FOR GROWTH Conversion Rate* FY19 FY20 H1 21 H2 21 FY21 H1 22 Good 41% drop-through** of fee growth into profit ANZ 33.5% 28.3% 22.6% 26.8% 24.8% 27.2% growth Germany 30.5% 20.5% 8.3% 16.5% 12.8% 2
Slide 21: ETR returned to normal level
‘ETR’ RETURNED TO NORMAL LEVEL AND IS DRIVEN BY GEOGRAPHICAL PROFIT MIX PLUS UTILISATION OF TAX LOSSES IN CERTAIN COUNTRIES Finance charge and taxation Six months ended 31 December 2021 2020 £m £m Finance charge Net interest charge on debt* (0.4) (0.5) Other interest payable - (0.1) IFRS 16 interest
Slide 22: Good cash performance, working capital rebuild
Cash from operations* (£m) GOOD CASH PERFORMANCE, WITH WORKING CAPITAL H1 20 65.2 REBUILD IN LINE WITH EXPECTATIONS H1 21 64.6 H1 22 39.3 Operating profit to free cash flow conversion (£m) H1 FY22 uses of cash flow Cash from operations* £39.3m Pensions £8.6m (H1 21: £64.6m) Capex £9.9m 40.9 Purchase
Slide 23: Strong cash position despite £170m dividends paid
Free cash flow* (£m) STRONG CASH POSITION DESPITE £170M DIVIDENDS H1 20 32.6 PAID AND TEMP BOOK REBUILD H1 21 43.9 H1 22 27.3 Closing net cash (£m) 410.6 379.5 NET CASH POSITION 366.2 H1 FY22 ended with net cash of £236.9m 236.9 £210 MILLION BANK FACILITY £210m facility in place to November 2024
Slide 24: A very strong balance sheet
A VERY STRONG BALANCE SHEET Balance sheet analysis 31 Dec 30 Jun £m 2021 2021 RETIREMENT BENEFITS Goodwill & intangibles 242.6 244.7 Increase in surplus is mainly due to changes in assumptions around scheme demographics, higher asset values, and Property, plant & equipment 26.6 27.4 company contri
Slide 25: Highly cash generative business model, clear cash flow priorities
HIGHLY CASH GENERATIVE BUSINESS MODEL, WITH CLEAR CASH FLOW PRIORITIES We are highly cash generative and our strategy is predominantly based on organic growth BUSINESS Our clear priority is to fund organic Group investments and development MODEL We have a clear track record of paying surplus c
Slide 26: Pandemic actions strengthen business and long-term profitability
OUR ACTIONS SINCE THE START OF THE PANDEMIC HAVE STRENGTHENED OUR BUSINESS AND WILL INCREASE OUR LONGER-TERM PROFITABILITY Potential cost-savings Expected RAG Timeframe vs pre-pandemic levels Development saving p.a. status Not extending some leases, consolidating and reducing our overall Property c.
Slide 27: Financial Summary
FINANCIAL SUMMARY RECORD NET FEES OF £565.3M, UP 39%, WITH 21 COUNTRY RECORDS Strong rebound in client and candidate confidence, with September and November delivering record fee performances Underlying Temp margin increased by 80bps* – the first increase since FY15. Average Perm fee increased b
Slide 28: Current Trading
3. CURRENT TRADING PAUL VENABLES FINANCE DIRECTOR
Slide 29: Strong market conditions; upgraded FY22 operating profit expectations
STRONG MARKET CONDITIONS. OUR NEW YEAR ‘RETURN TO WORK’ HAS BEEN GOOD OVERALL. UPGRADED FY22 OPERATING PROFIT EXPECTATIONS Current trading conditions and outlook by region Conditions in Perm are strong. We saw a two week slower ‘return to work’ than normal in our Temp and Australia Contracting bus
Slide 30: Strategy
4. STRATEGY ALISTAIR COX CHIEF EXECUTIVE
Slide 31: Investor Day will highlight Hays positioned for new world of work
OUR INVESTOR DAY ON 28TH APRIL WILL HIGHLIGHT HOW HAYS IS IDEALLY POSITIONED TO CAPITALISE ON THE NEW WORLD OF WORK Accelerating Wage inflation, job Evolving HR MARKET recruitment churn & skill services & customer DYNAMICS megatrends shortages needs HAYS Leading market positions, cutting-edge system
Slide 32: Strategic Growth Initiatives: excellent progress
STRATEGIC GROWTH INITIATIVES: EXCELLENT PROGRESS IN THE MOST IN-DEMAND RECRUITMENT SECTORS OF THE FUTURE SGI investment: FY21: £15m; FY22 c.£20m, with c.£8m in H1 Am ericas, STRUCTURALLY ATTRACTIVE MARKETS Asia, 9% 11% Investment in Technology, Life Sciences, Engineering, Enterprise clients & the
Slide 33: Record fees in Hays Technology
RECORD FEES IN HAYS TECHNOLOGY, 15% AHEAD OF PRE-PANDEMIC LEVELS. ANNUALISED FEE RUN-RATE NOW OVER £300M* Tech fees** by division (£m) H1 FY22 Tech fees** YoY Tech fees** FY10-22 148 300 Growth 50% 50% 129 YoY: 35% 46% 250 110 2-yr: 15% 39% 225 34% 199 241 229 183 Asia 163 133 Americas 22% 125 110 E
Slide 34: Conclusion
CONCLUSION We have delivered Our significant Our efficiency Our cash-generative record fees and the investments are delivers strong profit model, strong fastest profit growth capitalising on the drop-through from recovery in trading, in our history strong market, and in fees and we see a financial s
Slide 35: Appendix 1
APPENDIX 1 H1 FY22 Results supporting materials
Slide 36: Like-for-like summary
LIKE-FOR-LIKE SUMMARY Six months ended 31 December 2021 2020 FX impact Organic 2021 LFL* £m £m £m £m growth Net fees Australia & New Zealand 74.4 (2.2) 23.5 95.7 33% Germany 110.5 (6.4) 39.5 143.6 38% United Kingdom & Ireland 92.4 (0.2) 35.6 127.8 39% Rest of World 145.5 (7.0) 59.7 198.2 43% Group 4
Slide 37: Full-year and half-year growth analysis by division
Half-yearly net fee growth progression (YoY) H2 20 H1 21 H2 21 H1 22 H2 20 H1 21 H2 21 H1 22 H2 20 H1 21 H2 21 H1 22 H2 20 H1 21 H2 21 43% H1 22 18% 39% 38% 14% 33% 10% 6% FULL-YEAR AND HALF-YEAR -18% -18% -22% -21% -23% -25% -26% GROWTH ANALYSIS BY DIVISION -27% ANZ Germany UK&I ROW Net fee growth*
Slide 38: A prioritised pipeline of opportunities to rebuild profitability
A PRIORITISED PIPELINE OF OPPORTUNITIES TO REBUILD PROFITABILITY FUTURE MATERIAL MEANINGFUL CORE PROFIT DRIVERS CONTRIBUTORS NETWORK PROFIT £20m+ £10m+ £5m+ CRITICAL DRIVERS TARGET TARGET TARGET CHINA POLAND SWITZERLAND 16 AUSTRIA GERMANY SPAIN OTHER MALAYSIA HAYS AUSTRALIA FRANCE USA NEW ZEALAND CO
Slide 39: Rest of World performance by country
REST OF WORLD PERFORMANCE BY COUNTRY / MARKET Country/market H1 FY22 Net fee # of # of Rest of World net fees (ranked by net fees) Net fees growth offices consultants £m (LFL*) France 31.8 35% 20 505 USA 30.8 57% 12 491 Other** France China 18.5 52% 6 269 Benelux 16.4 27% 11 220 Switzerland 14.1 24%
Slide 40: Technical specialisms add to balance and resilience
TECHNICAL SPECIALISMS ADD TO OUR BALANCE AND RELATIVE RESILIENCE Attributes of Technical* vs In H1 FY22, Technical specialisms represented c.65% Group Professional** net fees net fees Investment-led hires 1. rather than purely candidate-driven 49% 52% 54% 55% 58% 60% 60% 60% 61% 62% 62% 62% 63% 64%
Slide 41: Continued investment in scale and diversity across global platform
CONTINUED INVESTMENT IN BUILDING FURTHER SCALE AND DIVERSITY ACROSS OUR GLOBAL PLATFORM Temp & Contracting Temp/Contractor business as % of H1 FY22 net fees CLEAR STRUCTURAL CANADA NETHERLANDS 1. GROWTH 26% POLAND OPPORTUNITIES 61% 29% SWITZERLAND RELATIVE RESILIENCE 2. TO THE CYCLE 78% 66 FRANCE %
Slide 42: Consultant headcount
CONSULTANT HEADCOUNT Number of consultants As at 31 As at Change As at Change Dec 30 Jun since Jun 31 Dec since Dec 2021 2021 2021 2020 2020 Australia & New Zealand 1,054 945 12% 818 29% Germany 1,745 1,620 8% 1,557 12% United Kingdom & Ireland 1,958 1,759 11% 1,589 23% Rest of World 3,509 2,866 22%
Slide 43: Office network
OFFICE NETWORK Number of offices 31 December Opened/ 30 June 2021 (Closed)* 2021 Australia & New Zealand 40 (1) 41 Germany 25 - 25 United Kingdom & Ireland 88 (1) 89 Rest of World 101 - 101 Group 254 (2) 256 43 * Offices opened is shown net of closed and merged offices.
Slide 44: Trading days in major markets
TRADING DAYS IN MAJOR MARKETS Australia Germany UK Number of trading days H1 H2 Year H1 H2 Year H1 H2 Year Year ended 30 June 2021 129 123 252 130 122 252 129 124 253 Year ending 30 June 2022 129 123 252 131 123 254 129 123 252 Year ending 30 June 2023 129 123 252 128 123 251 129 124 253 44
Slide 45: Appendix 2
APPENDIX 2 The Hays business model & strategy for growth
Slide 46: Pandemic accelerated recruitment megatrends
THE PANDEMIC HAS EVOLVED AND ACCELERATED RECRUITMENT MEGATRENDS. OUR STRATEGY IS DESIGNED TO CAPITALISE ON THEM ORGANISATIONS CANDIDATES & SKILL SHORTAGES JOBS ARE INCREASINGLY COMPANIES ARE ARE MAGNIFIED IN CHANGING, SKILLS NEED EXPERT HELP SEEKING NEW TECHNOLOGY & ARE SHORT TO FIND THE WAYS OF WOR
Slide 47: The data dilemma
THE DATA DILEMMA: DRIVING MORE VALUE FROM DATA THAN HR TEAMS AND COMPETITORS Access to more and better data Convert data effectively into insights Drive real actions from insight CLICK LIKE TWEET REVIEW DOWNLOAD VIEW MILLIONS DATA SHARE OF NEW QUALITY & DATA POINTS INSIGHTS COMMENT COMPLIANCE EACH D
Slide 48: Clear, well-established strategic priorities
WE HAVE CLEAR, WELL-ESTABLISHED STRATEGIC PRIORITIES TO DELIVER OUR LONG-TERM AIMS MATERIALLY INCREASE & DIVERSIFY GROUP PROFITS BUILD CRITICAL GENERATE, MASS & DIVERSITY REINVEST & ACROSS OUR DISTRIBUTE GLOBAL PLATFORM MEANINGFUL CASH INVEST IN PEOPLE, TECHNOLOGY, COLLABORATIONS & INNOVATION 48
Slide 49: Strength of our model
THE STRENGTH OF OUR MODEL IS KEY TO DELIVERING FOR CLIENTS AND DRIVING FINANCIAL PERFORMANCE THROUGH THE CYCLE Unrivalled … the best …delivers …a … and scale, people, the best relatively leverages balance and sector- solutions for resilient the Group to diversity… leading clients & financial economi
Slide 50: Leading global expert in professional and skilled recruitment
HAYS IS A LEADING GLOBAL EXPERT IN QUALIFIED, PROFESSIONAL AND SKILLED RECRUITMENT EXECUTIVE SEARCH (head-hunting) PROFESSIONAL RECRUITMENT (mostly white collar) Contingent fee model Focus on high-skilled roles Clear structural growth markets GENERALISTS (mostly blue collar) 50
Slide 51: A proven track record of organic growth
A PROVEN TRACK RECORD OF ORGANIC GROWTH New country & specialism entries Key: Organic Acquisition 33 COUNTRIES / MARKETS 20 SPECIALISMS Pre 1990 UK Australia Ireland A&F C&P Technology Early 1990s Banking Fin Services Office Pros Late 1990s Czech Rep. France New Zealand Contact Ce. Education 2000 Be
Slide 52: Purpose, values and UN Sustainability Goals
PURPOSE, VALUES & UNITED NATIONS SUSTAINABILITY GOALS (UNSDGs) We benefit society by helping people succeed and enabling organisations to PURPOSE thrive - creating opportunities and improving lives. Passionate VALUES Expert Ambitious Insightful Innovative about people Hays endorses three UNSDGs (#5,
Slide 53: Acting responsibly is embedded in our strategic priorities
ACTING RESPONSIBLY IS EMBEDDED IN OUR STRATEGIC PRIORITIES MATERIALLY GENERATE, INVEST IN BUILD CRITICAL INCREASE AND REINVEST AND 2021 PEOPLE & MASS & DIVERSIFY DISTRIBUTE ACHIEVEMENTS TECHNOLOGY DIVERSITY PROFITS CASH STAKEHOLDERS We take huge pride in Hays’ culture, career paths and reputation fo
Slide 54: Worldwide platform and leadership in core markets
OUR WORLDWIDE PLATFORM PROVIDES A PIPELINE OF FUTURE GROWTH OPPORTUNITIES & LEADERSHIP IN ALL CORE MARKETS Hays’ market positioning* Market Leader Top 3 position Top 5 position Other TOP 3 Australia (#1) Malaysia Belgium New Zealand (#1) Brazil Poland (#1) France Portugal (#1) Germany (#1) Russia Gr
Slide 55: Strategic focus on building scale in key markets
OUR STRATEGIC FOCUS IS ON BUILDING SCALE IN KEY MARKETS HAYS MARKETS HAYS SPECIALISMS 2021 2021 33 20 11 10 2002 2002 Market leaders in seven countries Leading market positions across including: UK, Australia, Germany professional and technical areas Top-3 market position in a further 13 Lon
Slide 56: Breadth and depth of platform
MARKET-LEADING BREADTH AND DEPTH OF PLATFORM 20 SPECIALISMS 33 COUNTRIES New Zealand Luxembourg Netherlands Czech Rep. Switzerland Singapore Colombia Germany Denmark Romania Malaysia Australia Hungary Portugal Sweden Belgium Canada Mexico France Austria Poland Russia Ireland Japan China Spain Brazil
Slide 57: Five pillars of the business model
BALANCE, SCALE AND DIVERSIFICATION ARE WHAT SETS THE HAYS THERE ARE BUSINESS 5 PILLARS MODEL WHICH APART AND UNDERPIN DRIVES THE OUTPERFORMANCE LONG-TERM STRENGTH OF OUR BUSINESS MODEL Exposure to structural growth and more mature areas 1. BALANCE Long-established across technical, white-collar
Slide 58: A balanced portfolio
A BALANCED PORTFOLIO H1 FY22 net fees by type* Public sector Public Top 50 ~15% ANZ 17% Recruitment Recruitment 16% sector Technology 25% contracts ~25% 15% contracts Rest of World Perm Professional 39% ~25% 31% Perm 44% 42% Germany 25% A&F 14% Office Sup. 8% C&P 11% Engineering 9% 40,000 UK&I 23% E
Slide 59: Balanced business model: structural and cyclical markets
BALANCED BUSINESS MODEL: WELL-DIVERSIFIED IN STRUCTURAL AND CYCLICAL MARKETS Net fees by market maturity* (percentages in table show % of Group net fees in H1 FY22) ESTABLISHED: DEVELOPING: >70% penetration 30-70% penetration 28% of Group net fees 26% of Group net fees 42% LFL net fee growth 35% LFL
Slide 60: Balanced business model: Temp/Contractor and Perm
BALANCED BUSINESS MODEL: SECTOR-LEADING EXPOSURE TO KEY TEMP/CONTRACTOR MARKETS, PERM-GEARED IN HIGH GROWTH AREAS H1 FY22 net fees by geography and contract type Temp Perm 17% 37% 45% 68% 83% 63% 55% 32% ANZ - 17% Germany - 25% UK&I - 23% RoW - 35% PROPORTION OF GROUP NET FEES 60
Slide 61: Appendix 3
APPENDIX 3 Divisional profiles and historical data
Slide 62: Financial archive – net fees, operating profit & headcount
FINANCIAL ARCHIVE – NET FEES, OPERATING PROFIT & HEADCOUNT ‡ Excludes exceptional items. 62
Slide 63: ANZ represents 17% of Group net fees
ANZ REPRESENTS 17% OF GROUP NET FEES, WITH AUSTRALIA REPRESENTING 92% OF DIVISIONAL NET FEES Six months ended 31 December 2021 Net fees by specialism Net fees by region Net fees: £95.7m Operating profit: £26.0m 18% 13% 22% 26% Conversion rate: 27.2% 8% Countries: 2 4% 15% Consultants: 1,054 4% 9% Of
Slide 64: Historical profile of Hays ANZ
HISTORICAL PROFILE OF HAYS AUSTRALIA & NEW ZEALAND ‡ Excludes exceptional items. 64 Note: Historical net fees and historical operating profit shown on a headline basis. For local currency data, please see slide 71.
Slide 65: Germany represents 25% of Group net fees
GERMANY REPRESENTS 25% OF GROUP NET FEES AND 36% OF GROUP PROFIT Six months ended 31 December 2021 Net fees by specialism Net fees by contract type Net fees: £143.6m 5% 4% Operating profit: £36.3m 5% 17% Conversion rate: 25.3% 6% Consultants: 1,745 39% Offices: 25 16% 57% 26% Private : Public sector
Slide 66: Historical profile of Hays Germany
HISTORICAL PROFILE OF HAYS GERMANY ‡ Excludes exceptional items. 66 Note: Historical net fees and historical operating profit shown on a headline basis. For local currency data, please see slide 71.
Slide 67: UK & Ireland represents 23% of Group net fees
UK & IRELAND REPRESENTS 23% OF GROUP NET FEES, WITH THE UK REPRESENTING 95% OF DIVISIONAL NET FEES Six months ended 31 December 2021 Net fees by specialism Net fees by region Net fees: £127.8m Operating profit: £18.2m 7% Conversion rate: 14.2% 19% 8% 25% Consultants: 1,958 33% 12% Offices: 88 4% 17%
Slide 68: Historical profile of Hays UK & Ireland
HISTORICAL PROFILE OF HAYS UK & IRELAND ‡ Excludes exceptional items. 68 Note: Historical net fees and historical operating profit shown on a headline basis.
Slide 69: Rest of World represents 35% of Group net fees
REST OF WORLD REPRESENTS 35% OF GROUP NET FEES, WITH FRANCE OUR LARGEST RoW MARKET Six months ended 31 December 2021 Net fees by specialism Net fees by market Net fees: £198.2m Operating profit: £21.1m 16% Conversion rate: 10.6% 24% 26% 24% Countries: 28 Consultants: 3,509 16% Offices: 101 5% 4% 6%
Slide 70: Historical profile of Rest of World
HISTORICAL PROFILE OF REST OF WORLD ‡ Excludes exceptional items. 70 Note: Historical net fees and historical operating profit shown on a headline basis.
Slide 71: Local currency – net fees and operating profit
LOCAL CURRENCY – NET FEES AND OPERATING PROFIT ‡ Excludes exceptional items. 71
Slide 72: Financial archive – quarterly net fee growth
FINANCIAL ARCHIVE – QUARTERLY NET FEE GROWTH % Australia & New Zealand % Germany 38% 39% 37% 34% 31% 28% 23% 16% 19% 16% 13% 15% 15% 12% 13% 14% 12% 14% 7% 8% 16% 6% 3% 15% 2% 0% (3%) (2%) (7%) (9%) (7%) (13%) (5%) (10%) (19%) (20%) (28%) (26%) (33%) (31%) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 73: Financial archive – quarterly net fee & headcount growth
FINANCIAL ARCHIVE – QUARTERLY NET FEE & HEADCOUNT GROWTH % Temp % Perm 67% 65% 61% 24% 26% 22% 20% 12% 11% 9% 11% 8% 9% 13% 15% 11% 11% 9% 7% 6% 8% 5% 7% 7% 0% 0% 0% 0% (3%) (7%) (6%) (5%) (13%) (10%) (13%) (26%) (25%) (26%) (44%) (35%) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 74: Further Information
FURTHER INFORMATION DAVID PHILLIPS HEAD OF INVESTOR RELATIONS & ESG CHARLES CHALKLY INVESTOR RELATIONS & ESG MANAGER [email protected] +44 (0)333 010 7122 For more information about the Group: haysplc.com/investors or @haysplcIR
Slide 75: Navigating the New World of Work
NAVIGATING THE NEW WORLD OF WORK HALF-YEAR RESULTS For the six months ended 31 December 2021
Slide 76: Cautionary Statement
CAUTIONARY STATEMENT This presentation contains certain statements that are neither reported financial results nor other historical information. The information contained in this presentation is not audited, is for personal use and informational purposes only and is not intended for distribution to,
Slide 77: Agenda
AGENDA 1 OPERATING REVIEW ALISTAIR COX, CHIEF EXECUTIVE 2 FINANCIAL REVIEW PAUL VENABLES, FINANCE DIRECTOR 3 CURRENT TRADING PAUL VENABLES, FINANCE DIRECTOR 4 STRATEGY UPDATE ALISTAIR COX, CHIEF EXECUTIVE APPENDICES 3
Slide 78: Operating Review
OPERATING REVIEW ALISTAIR COX CHIEF EXECUTIVE
Slide 79: Our strategy is delivering for all our stakeholders
OUR STRATEGY IS DELIVERING FOR ALL OUR STAKEHOLDERS Over 150,000 talented people placed in new jobs in H1 FY22 OUR PURPOSE Extensive engagement with Hays online learning & development platforms Strong client and candidate confidence Increased global job churn and shortened time to hire OUR M
Slide 80: Record fees, significant investment and another upgrade to FY22 profit expectations
NET FEES +39% to £565.3m OP PROFIT +327% to £101.6m EPS +444% to 4.08p NET CASH* -38% to £236.9m RECORD FEES, SIGNIFICANT INVESTMENT AND GOOD NEW YEAR ‘RETURN TO WORK’ DRIVES ANOTHER UPGRADE TO FY22 PROFIT EXPECTATIONS Our focus remains on… Key developments in H1 FY22 Record fees, up 39%. 21 count
Slide 81: ANZ: strong growth, led by Perm
ANZ net fees (£m) H1 20 94.8 STRONG GROWTH, LED BY PERM. MOMENTUM IMPROVED H1 21 74.4 FOLLOWING LIFTING OF LOCKDOWN RESTRICTIONS H1 22 95.7 Net fees up 33%, operating profit up 60% Business confidence improved through the half year Perm fees up 86%; Temp up 14%. Private sector up 41%; Public sec
Slide 82: Germany: record contractor numbers drive fee and profit growth
Germany net fees (£m) RECORD CONTRACTOR NUMBERS HELP DRIVE H1 20 H1 21 110.5 144.9 EXCELLENT FEE AND PROFIT GROWTH H1 22 143.6 Net fees up 38%, operating profit up 317% Business confidence is high, with clients increasingly investing in new, and extending existing, projects Contracting (57% of f
Slide 83: UK&I: fees and profit improved through the half
UK&I net fees (£m) FEES AND PROFIT IMPROVED THROUGH THE HALF, H1 20 H1 21 92.4 126.7 PARTICULARLY IN PERM H1 22 127.8 Net fees up 39%, operating profit up £19.2m YoY Strong activity levels drove good sequential fee growth Perm fees up 69%; Temp up 21% Private sector fees up 52%; Public sector
Slide 84: Rest of World: record fees in 20 countries
RoW net fees (£m) RECORD FEES IN 20 COUNTRIES AND STRONG PROFIT H1 20 H1 21 145.5 186.7 GROWTH H1 22 198.2 Overall: Fees up 43%, operating profit up £21.3m LfL Perm up 55%, Temp up 23%. 20 country records Operating profit of £21.1m represented strong sequential profit growth of £8.7m, or 70%, vs
Slide 85: Operational Summary
OPERATIONAL SUMMARY Record fees driving strong profit recovery. Good Perm & Temp momentum through the half year Strong market conditions in all regions, driven by high levels of client & candidate confidence, shortening time to hire, skill shortages and wage inflation Significant headcount inv
Slide 86: Financial Review
2. FINANCIAL REVIEW PAUL VENABLES FINANCE DIRECTOR
Slide 87: Record fees, with excellent performance in Perm and Temp
RECORD FEES, WITH EXCELLENT PERFORMANCE IN PERM AND TEMP H1 FY22 net fee review Group net fee growth* ‒ Temp vs Perm 67% 65% 61% Strong activity and GROUP trading in all major Temp markets, including record 41% 39% 37% quarterly fees in Q2 Perm High levels of client and 24% 26% 22% candidate con
Slide 88: Record LFL fees and strong profit recovery
RECORD* LFL FEES AND STRONG PROFIT RECOVERY, COMBINED WITH A STRONG CASH POSITION Net fees Operating profit Net cash*** H1 18 £525.8m H1 18 £116.5m H1 18 £34.5m H1 19 £568.0m H1 19 £124.1m H1 19 £32.5m H1 20 £553.1m H1 20 £100.1m H1 20 £13.2m H1 21 £422.8m H1 21 £25.1m H1 21 £379.5m H1 22 £565.3m H1
Slide 89: Strong profit and earnings growth
Basic EPS (p) STRONG PROFIT AND EARNINGS GROWTH H1 20 4.60 H1 21 0.75 H1 22 4.08 Income Statement Six months ended 31 December 2021 2020 Reported LFL* £m £m growth growth Turnover 3,067.0 2,755.2 11% 15% Net fees 565.3 422.8 34% 39% Operating profit 101.6 25.1 305% 327% Net finance charge (3.9) (4.0
Slide 90: Consistently strong performance in all divisions
CONSISTENTLY STRONG PERFORMANCE IN ALL DIVISIONS Australia & NZ (17% of net fees) LfL growth Germany (25% of net fees) LfL growth Net Fees £95.7m 33% Net Fees £143.6m 38% Op Profit £26.0m 60% Op Profit £36.3m 317% Momentum improved as restrictions eased in October Contracting delivered a record
Slide 91: Excellent Perm and Temp performance
Split of net fees EXCELLENT PERM AND TEMP PERFORMANCE, INCLUDING H1 20 58% Temp H1 21 62% Temp GROWTH IN AVERAGE PERM FEE AND TEMP MARGIN H1 22 56% Temp Review of Group Permanent and Temporary Businesses* Permanent placement business Temporary placement business 62% net fee increase 25% net fee incr
Slide 92: Profit growth driven by record fees and productivity
PROFIT GROWTH DRIVEN BY RECORD FEES AND EXCELLENT CONSULTANT PRODUCTIVITY, DESPITE SIGNIFICANT INVESTMENT H1 FY22 operating profit bridge (£m) 158.3 ~ Cost-related ~ (69.1) (4.0) (2.6) (4.8) 101.6 25.1 (1.3) H1 FY21 FX 39% LFL fee Increase in SGI Travel & Other costs** H1 FY22 operating increase sta
Slide 93: FX translation sensitivities
THE AUSTRALIAN DOLLAR AND EURO REMAIN SIGNIFICANT FX TRANSLATION SENSITIVITIES FOR THE GROUP Key FX rates and sensitivities Six months ended 31 December 2021 Average Closing Australian dollar 1.8635 1.8628 Euro 1.1742 1.1902 Impact of a one cent change per annum Net fees Op profit Australian dollar
Slide 94: Half-year conversion rate increased to 18.0%
HALF-YEAR CONVERSION RATE* INCREASED TO 18.0%. BALANCED APPROACH OF DRIVING PROFITABILITY AND INVESTING FOR GROWTH Conversion Rate* FY19 FY20 H1 21 H2 21 FY21 H1 22 Good 41% drop-through** of fee growth into profit ANZ 33.5% 28.3% 22.6% 26.8% 24.8% 27.2% growth Germany 30.5% 20.5% 8.3% 16.5% 12.8% 2
Slide 95: ETR returned to normal level
‘ETR’ RETURNED TO NORMAL LEVEL AND IS DRIVEN BY GEOGRAPHICAL PROFIT MIX PLUS UTILISATION OF TAX LOSSES IN CERTAIN COUNTRIES Finance charge and taxation Six months ended 31 December 2021 2020 £m £m Finance charge Net interest charge on debt* (0.4) (0.5) Other interest payable - (0.1) IFRS 16 interest
Slide 96: Good cash performance, working capital rebuild
Cash from operations* (£m) GOOD CASH PERFORMANCE, WITH WORKING CAPITAL H1 20 65.2 REBUILD IN LINE WITH EXPECTATIONS H1 21 64.6 H1 22 39.3 Operating profit to free cash flow conversion (£m) H1 FY22 uses of cash flow Cash from operations* £39.3m Pensions £8.6m (H1 21: £64.6m) Capex £9.9m 40.9 Purchase
Slide 97: Strong cash position despite £170m dividends paid
Free cash flow* (£m) STRONG CASH POSITION DESPITE £170M DIVIDENDS H1 20 32.6 PAID AND TEMP BOOK REBUILD H1 21 43.9 H1 22 27.3 Closing net cash (£m) 410.6 379.5 NET CASH POSITION 366.2 H1 FY22 ended with net cash of £236.9m 236.9 £210 MILLION BANK FACILITY £210m facility in place to November 2024
Slide 98: A very strong balance sheet
A VERY STRONG BALANCE SHEET Balance sheet analysis 31 Dec 30 Jun £m 2021 2021 RETIREMENT BENEFITS Goodwill & intangibles 242.6 244.7 Increase in surplus is mainly due to changes in assumptions around scheme demographics, higher asset values, and Property, plant & equipment 26.6 27.4 company contri
Slide 99: Highly cash generative business model, clear cash flow priorities
HIGHLY CASH GENERATIVE BUSINESS MODEL, WITH CLEAR CASH FLOW PRIORITIES We are highly cash generative and our strategy is predominantly based on organic growth BUSINESS Our clear priority is to fund organic Group investments and development MODEL We have a clear track record of paying surplus c
Slide 100: Pandemic actions strengthen business and long-term profitability
OUR ACTIONS SINCE THE START OF THE PANDEMIC HAVE STRENGTHENED OUR BUSINESS AND WILL INCREASE OUR LONGER-TERM PROFITABILITY Potential cost-savings Expected RAG Timeframe vs pre-pandemic levels Development saving p.a. status Not extending some leases, consolidating and reducing our overall Property c.
Slide 101: Financial Summary
FINANCIAL SUMMARY RECORD NET FEES OF £565.3M, UP 39%, WITH 21 COUNTRY RECORDS Strong rebound in client and candidate confidence, with September and November delivering record fee performances Underlying Temp margin increased by 80bps* – the first increase since FY15. Average Perm fee increased b
Slide 102: Current Trading
3. CURRENT TRADING PAUL VENABLES FINANCE DIRECTOR
Slide 103: Strong market conditions; upgraded FY22 operating profit expectations
STRONG MARKET CONDITIONS. OUR NEW YEAR ‘RETURN TO WORK’ HAS BEEN GOOD OVERALL. UPGRADED FY22 OPERATING PROFIT EXPECTATIONS Current trading conditions and outlook by region Conditions in Perm are strong. We saw a two week slower ‘return to work’ than normal in our Temp and Australia Contracting bus
Slide 104: Strategy
4. STRATEGY ALISTAIR COX CHIEF EXECUTIVE
Slide 105: Investor Day will highlight Hays positioned for new world of work
OUR INVESTOR DAY ON 28TH APRIL WILL HIGHLIGHT HOW HAYS IS IDEALLY POSITIONED TO CAPITALISE ON THE NEW WORLD OF WORK Accelerating Wage inflation, job Evolving HR MARKET recruitment churn & skill services & customer DYNAMICS megatrends shortages needs HAYS Leading market positions, cutting-edge system
Slide 106: Strategic Growth Initiatives: excellent progress
STRATEGIC GROWTH INITIATIVES: EXCELLENT PROGRESS IN THE MOST IN-DEMAND RECRUITMENT SECTORS OF THE FUTURE SGI investment: FY21: £15m; FY22 c.£20m, with c.£8m in H1 Am ericas, STRUCTURALLY ATTRACTIVE MARKETS Asia, 9% 11% Investment in Technology, Life Sciences, Engineering, Enterprise clients & the
Slide 107: Record fees in Hays Technology
RECORD FEES IN HAYS TECHNOLOGY, 15% AHEAD OF PRE-PANDEMIC LEVELS. ANNUALISED FEE RUN-RATE NOW OVER £300M* Tech fees** by division (£m) H1 FY22 Tech fees** YoY Tech fees** FY10-22 148 300 Growth 50% 50% 129 YoY: 35% 46% 250 110 2-yr: 15% 39% 225 34% 199 241 229 183 Asia 163 133 Americas 22% 125 110 E
Slide 108: Conclusion
CONCLUSION We have delivered Our significant Our efficiency Our cash-generative record fees and the investments are delivers strong profit model, strong fastest profit growth capitalising on the drop-through from recovery in trading, in our history strong market, and in fees and we see a financial s
Slide 109: Appendix 1
APPENDIX 1 H1 FY22 Results supporting materials
Slide 110: Like-for-like summary
LIKE-FOR-LIKE SUMMARY Six months ended 31 December 2021 2020 FX impact Organic 2021 LFL* £m £m £m £m growth Net fees Australia & New Zealand 74.4 (2.2) 23.5 95.7 33% Germany 110.5 (6.4) 39.5 143.6 38% United Kingdom & Ireland 92.4 (0.2) 35.6 127.8 39% Rest of World 145.5 (7.0) 59.7 198.2 43% Group 4
Slide 111: Full-year and half-year growth analysis by division
Half-yearly net fee growth progression (YoY) H2 20 H1 21 H2 21 H1 22 H2 20 H1 21 H2 21 H1 22 H2 20 H1 21 H2 21 H1 22 H2 20 H1 21 H2 21 43% H1 22 18% 39% 38% 14% 33% 10% 6% FULL-YEAR AND HALF-YEAR -18% -18% -22% -21% -23% -25% -26% GROWTH ANALYSIS BY DIVISION -27% ANZ Germany UK&I ROW Net fee growth*
Slide 112: A prioritised pipeline of opportunities to rebuild profitability
A PRIORITISED PIPELINE OF OPPORTUNITIES TO REBUILD PROFITABILITY FUTURE MATERIAL MEANINGFUL CORE PROFIT DRIVERS CONTRIBUTORS NETWORK PROFIT £20m+ £10m+ £5m+ CRITICAL DRIVERS TARGET TARGET TARGET CHINA POLAND SWITZERLAND 16 AUSTRIA GERMANY SPAIN OTHER MALAYSIA HAYS AUSTRALIA FRANCE USA NEW ZEALAND CO
Slide 113: Rest of World performance by country
REST OF WORLD PERFORMANCE BY COUNTRY / MARKET Country/market H1 FY22 Net fee # of # of Rest of World net fees (ranked by net fees) Net fees growth offices consultants £m (LFL*) France 31.8 35% 20 505 USA 30.8 57% 12 491 Other** France China 18.5 52% 6 269 Benelux 16.4 27% 11 220 Switzerland 14.1 24%
Slide 114: Technical specialisms add to balance and resilience
TECHNICAL SPECIALISMS ADD TO OUR BALANCE AND RELATIVE RESILIENCE Attributes of Technical* vs In H1 FY22, Technical specialisms represented c.65% Group Professional** net fees net fees Investment-led hires 1. rather than purely candidate-driven 49% 52% 54% 55% 58% 60% 60% 60% 61% 62% 62% 62% 63% 64%
Slide 115: Continued investment in scale and diversity across global platform
CONTINUED INVESTMENT IN BUILDING FURTHER SCALE AND DIVERSITY ACROSS OUR GLOBAL PLATFORM Temp & Contracting Temp/Contractor business as % of H1 FY22 net fees CLEAR STRUCTURAL CANADA NETHERLANDS 1. GROWTH 26% POLAND OPPORTUNITIES 61% 29% SWITZERLAND RELATIVE RESILIENCE 2. TO THE CYCLE 78% 66 FRANCE %
Slide 116: Consultant headcount
CONSULTANT HEADCOUNT Number of consultants As at 31 As at Change As at Change Dec 30 Jun since Jun 31 Dec since Dec 2021 2021 2021 2020 2020 Australia & New Zealand 1,054 945 12% 818 29% Germany 1,745 1,620 8% 1,557 12% United Kingdom & Ireland 1,958 1,759 11% 1,589 23% Rest of World 3,509 2,866 22%
Slide 117: Office network
OFFICE NETWORK Number of offices 31 December Opened/ 30 June 2021 (Closed)* 2021 Australia & New Zealand 40 (1) 41 Germany 25 - 25 United Kingdom & Ireland 88 (1) 89 Rest of World 101 - 101 Group 254 (2) 256 43 * Offices opened is shown net of closed and merged offices.
Slide 118: Trading days in major markets
TRADING DAYS IN MAJOR MARKETS Australia Germany UK Number of trading days H1 H2 Year H1 H2 Year H1 H2 Year Year ended 30 June 2021 129 123 252 130 122 252 129 124 253 Year ending 30 June 2022 129 123 252 131 123 254 129 123 252 Year ending 30 June 2023 129 123 252 128 123 251 129 124 253 44
Slide 119: Appendix 2
APPENDIX 2 The Hays business model & strategy for growth
Slide 120: Pandemic accelerated recruitment megatrends
THE PANDEMIC HAS EVOLVED AND ACCELERATED RECRUITMENT MEGATRENDS. OUR STRATEGY IS DESIGNED TO CAPITALISE ON THEM ORGANISATIONS CANDIDATES & SKILL SHORTAGES JOBS ARE INCREASINGLY COMPANIES ARE ARE MAGNIFIED IN CHANGING, SKILLS NEED EXPERT HELP SEEKING NEW TECHNOLOGY & ARE SHORT TO FIND THE WAYS OF WOR
Slide 121: The data dilemma
THE DATA DILEMMA: DRIVING MORE VALUE FROM DATA THAN HR TEAMS AND COMPETITORS Access to more and better data Convert data effectively into insights Drive real actions from insight CLICK LIKE TWEET REVIEW DOWNLOAD VIEW MILLIONS DATA SHARE OF NEW QUALITY & DATA POINTS INSIGHTS COMMENT COMPLIANCE EACH D
Slide 122: Clear, well-established strategic priorities
WE HAVE CLEAR, WELL-ESTABLISHED STRATEGIC PRIORITIES TO DELIVER OUR LONG-TERM AIMS MATERIALLY INCREASE & DIVERSIFY GROUP PROFITS BUILD CRITICAL GENERATE, MASS & DIVERSITY REINVEST & ACROSS OUR DISTRIBUTE GLOBAL PLATFORM MEANINGFUL CASH INVEST IN PEOPLE, TECHNOLOGY, COLLABORATIONS & INNOVATION 48
Slide 123: Strength of our model
THE STRENGTH OF OUR MODEL IS KEY TO DELIVERING FOR CLIENTS AND DRIVING FINANCIAL PERFORMANCE THROUGH THE CYCLE Unrivalled … the best …delivers …a … and scale, people, the best relatively leverages balance and sector- solutions for resilient the Group to diversity… leading clients & financial economi
Slide 124: Leading global expert in professional and skilled recruitment
HAYS IS A LEADING GLOBAL EXPERT IN QUALIFIED, PROFESSIONAL AND SKILLED RECRUITMENT EXECUTIVE SEARCH (head-hunting) PROFESSIONAL RECRUITMENT (mostly white collar) Contingent fee model Focus on high-skilled roles Clear structural growth markets GENERALISTS (mostly blue collar) 50
Slide 125: A proven track record of organic growth
A PROVEN TRACK RECORD OF ORGANIC GROWTH New country & specialism entries Key: Organic Acquisition 33 COUNTRIES / MARKETS 20 SPECIALISMS Pre 1990 UK Australia Ireland A&F C&P Technology Early 1990s Banking Fin Services Office Pros Late 1990s Czech Rep. France New Zealand Contact Ce. Education 2000 Be
Slide 126: Purpose, values and UN Sustainability Goals
PURPOSE, VALUES & UNITED NATIONS SUSTAINABILITY GOALS (UNSDGs) We benefit society by helping people succeed and enabling organisations to PURPOSE thrive - creating opportunities and improving lives. Passionate VALUES Expert Ambitious Insightful Innovative about people Hays endorses three UNSDGs (#5,
Slide 127: Acting responsibly is embedded in our strategic priorities
ACTING RESPONSIBLY IS EMBEDDED IN OUR STRATEGIC PRIORITIES MATERIALLY GENERATE, INVEST IN BUILD CRITICAL INCREASE AND REINVEST AND 2021 PEOPLE & MASS & DIVERSIFY DISTRIBUTE ACHIEVEMENTS TECHNOLOGY DIVERSITY PROFITS CASH STAKEHOLDERS We take huge pride in Hays’ culture, career paths and reputation fo
Slide 128: Worldwide platform and leadership in core markets
OUR WORLDWIDE PLATFORM PROVIDES A PIPELINE OF FUTURE GROWTH OPPORTUNITIES & LEADERSHIP IN ALL CORE MARKETS Hays’ market positioning* Market Leader Top 3 position Top 5 position Other TOP 3 Australia (#1) Malaysia Belgium New Zealand (#1) Brazil Poland (#1) France Portugal (#1) Germany (#1) Russia Gr
Slide 129: Strategic focus on building scale in key markets
OUR STRATEGIC FOCUS IS ON BUILDING SCALE IN KEY MARKETS HAYS MARKETS HAYS SPECIALISMS 2021 2021 33 20 11 10 2002 2002 Market leaders in seven countries Leading market positions across including: UK, Australia, Germany professional and technical areas Top-3 market position in a further 13 Lon
Slide 130: Breadth and depth of platform
MARKET-LEADING BREADTH AND DEPTH OF PLATFORM 20 SPECIALISMS 33 COUNTRIES New Zealand Luxembourg Netherlands Czech Rep. Switzerland Singapore Colombia Germany Denmark Romania Malaysia Australia Hungary Portugal Sweden Belgium Canada Mexico France Austria Poland Russia Ireland Japan China Spain Brazil
Slide 131: Five pillars of the business model
BALANCE, SCALE AND DIVERSIFICATION ARE WHAT SETS THE HAYS THERE ARE BUSINESS 5 PILLARS MODEL WHICH APART AND UNDERPIN DRIVES THE OUTPERFORMANCE LONG-TERM STRENGTH OF OUR BUSINESS MODEL Exposure to structural growth and more mature areas 1. BALANCE Long-established across technical, white-collar
Slide 132: A balanced portfolio
A BALANCED PORTFOLIO H1 FY22 net fees by type* Public sector Public Top 50 ~15% ANZ 17% Recruitment Recruitment 16% sector Technology 25% contracts ~25% 15% contracts Rest of World Perm Professional 39% ~25% 31% Perm 44% 42% Germany 25% A&F 14% Office Sup. 8% C&P 11% Engineering 9% 40,000 UK&I 23% E
Slide 133: Balanced business model: structural and cyclical markets
BALANCED BUSINESS MODEL: WELL-DIVERSIFIED IN STRUCTURAL AND CYCLICAL MARKETS Net fees by market maturity* (percentages in table show % of Group net fees in H1 FY22) ESTABLISHED: DEVELOPING: >70% penetration 30-70% penetration 28% of Group net fees 26% of Group net fees 42% LFL net fee growth 35% LFL
Slide 134: Balanced business model: Temp/Contractor and Perm
BALANCED BUSINESS MODEL: SECTOR-LEADING EXPOSURE TO KEY TEMP/CONTRACTOR MARKETS, PERM-GEARED IN HIGH GROWTH AREAS H1 FY22 net fees by geography and contract type Temp Perm 17% 37% 45% 68% 83% 63% 55% 32% ANZ - 17% Germany - 25% UK&I - 23% RoW - 35% PROPORTION OF GROUP NET FEES 60
Slide 135: Appendix 3
APPENDIX 3 Divisional profiles and historical data
Slide 136: Financial archive – net fees, operating profit & headcount
FINANCIAL ARCHIVE – NET FEES, OPERATING PROFIT & HEADCOUNT ‡ Excludes exceptional items. 62
Slide 137: ANZ represents 17% of Group net fees
ANZ REPRESENTS 17% OF GROUP NET FEES, WITH AUSTRALIA REPRESENTING 92% OF DIVISIONAL NET FEES Six months ended 31 December 2021 Net fees by specialism Net fees by region Net fees: £95.7m Operating profit: £26.0m 18% 13% 22% 26% Conversion rate: 27.2% 8% Countries: 2 4% 15% Consultants: 1,054 4% 9% Of
Slide 138: Historical profile of Hays ANZ
HISTORICAL PROFILE OF HAYS AUSTRALIA & NEW ZEALAND ‡ Excludes exceptional items. 64 Note: Historical net fees and historical operating profit shown on a headline basis. For local currency data, please see slide 71.
Slide 139: Germany represents 25% of Group net fees
GERMANY REPRESENTS 25% OF GROUP NET FEES AND 36% OF GROUP PROFIT Six months ended 31 December 2021 Net fees by specialism Net fees by contract type Net fees: £143.6m 5% 4% Operating profit: £36.3m 5% 17% Conversion rate: 25.3% 6% Consultants: 1,745 39% Offices: 25 16% 57% 26% Private : Public sector
Slide 140: Historical profile of Hays Germany
HISTORICAL PROFILE OF HAYS GERMANY ‡ Excludes exceptional items. 66 Note: Historical net fees and historical operating profit shown on a headline basis. For local currency data, please see slide 71.
Slide 141: UK & Ireland represents 23% of Group net fees
UK & IRELAND REPRESENTS 23% OF GROUP NET FEES, WITH THE UK REPRESENTING 95% OF DIVISIONAL NET FEES Six months ended 31 December 2021 Net fees by specialism Net fees by region Net fees: £127.8m Operating profit: £18.2m 7% Conversion rate: 14.2% 19% 8% 25% Consultants: 1,958 33% 12% Offices: 88 4% 17%
Slide 142: Historical profile of Hays UK & Ireland
HISTORICAL PROFILE OF HAYS UK & IRELAND ‡ Excludes exceptional items. 68 Note: Historical net fees and historical operating profit shown on a headline basis.
Slide 143: Rest of World represents 35% of Group net fees
REST OF WORLD REPRESENTS 35% OF GROUP NET FEES, WITH FRANCE OUR LARGEST RoW MARKET Six months ended 31 December 2021 Net fees by specialism Net fees by market Net fees: £198.2m Operating profit: £21.1m 16% Conversion rate: 10.6% 24% 26% 24% Countries: 28 Consultants: 3,509 16% Offices: 101 5% 4% 6%
Slide 144: Historical profile of Rest of World
HISTORICAL PROFILE OF REST OF WORLD ‡ Excludes exceptional items. 70 Note: Historical net fees and historical operating profit shown on a headline basis.
Slide 145: Local currency – net fees and operating profit
LOCAL CURRENCY – NET FEES AND OPERATING PROFIT ‡ Excludes exceptional items. 71
Slide 146: Financial archive – quarterly net fee growth
FINANCIAL ARCHIVE – QUARTERLY NET FEE GROWTH % Australia & New Zealand % Germany 38% 39% 37% 34% 31% 28% 23% 16% 19% 16% 13% 15% 15% 12% 13% 14% 12% 14% 7% 8% 16% 6% 3% 15% 2% 0% (3%) (2%) (7%) (9%) (7%) (13%) (5%) (10%) (19%) (20%) (28%) (26%) (33%) (31%) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 147: Financial archive – quarterly net fee & headcount growth
FINANCIAL ARCHIVE – QUARTERLY NET FEE & HEADCOUNT GROWTH % Temp % Perm 67% 65% 61% 24% 26% 22% 20% 12% 11% 9% 11% 8% 9% 13% 15% 11% 11% 9% 7% 6% 8% 5% 7% 7% 0% 0% 0% 0% (3%) (7%) (6%) (5%) (13%) (10%) (13%) (26%) (25%) (26%) (44%) (35%) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 148: Further Information
FURTHER INFORMATION DAVID PHILLIPS HEAD OF INVESTOR RELATIONS & ESG CHARLES CHALKLY INVESTOR RELATIONS & ESG MANAGER [email protected] +44 (0)333 010 7122 For more information about the Group: haysplc.com/investors or @haysplcIR