US Professionals
Daniel J. Foley, President
Analyst & Investor days 2011 December 2, 2011
Analyst & Investor Days 2
disclaimer Certain statements in this document concern prognoses about the future financial condition,
risks, investment plans and the results of operations of Randstad Holding and its operating companies as well as certain plans and objectives. Obviously, such prognoses involve risks and a degree of uncertainty since they concern future events and depend on circumstances that will apply then. Many factors may contribute to the actual results and developments differing from the prognoses made in this document. These factors include, but are not limited to, general economic conditions, a shortage on the job market, changes in the demand for (flexible) personnel, changes in legislation (particularly in relation to employment, staffing and tax laws), the role of industry regulators, future currency and interest fluctuations, our ability to identify relevant risks and mitigate their impact, the availability of credit on financially acceptable terms, the successful completion of company acquisitions and their subsequent integration, successful disposals of companies and the rate of technological developments. These prognoses therefore apply only on the date on which this document was compiled. Quarterly figures and underlying figures are unaudited.
December 2, 2011
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agenda
• US Professional market and position
• Randstad US Professionals
• SFN Group update and impact
• HR Solutions
US Professional market and position
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US Professional market trends
• Continued penetration of MSP/VMS/RPO as a business solution for large staffing buyers (nationally & globally)
• Increasing consolidation of competitors in the market place. • Customers desire to bundle different segments of staffing both nationally
and globally • Especially in MSP and RPO
• Vendor lists increasingly becoming harder to make • An organization’s value proposition must be greater than its competitors
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Professional Services Revenues LTM: $ 1,809M Share of group: 39%
HRS (incl. RPO/MSP) Revenues LTM: $ 412M Share of group: 9%
number 2 player in IT segment number 3 in Finance & Accounting Tatum specialty business IT Solutions capabilities
leader in RPO enhanced platform for growth in MSP
HRS 10%
52%
39% HRS9%
Combination Randstad/SFN Group
Revenues LTM: $ 4,649M
Professionals
Staffing & Inhouse
comparable service offerings enhanced geographic coverage reinforcement market leadership in Canada
9%
* revenues are indicative last 12 months to 31 March 2011 and are based on US GAAP
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the combination of Randstad and SFN creates the #3 in US providing scope for further growth
US market position
IT, 65%
F&A, 18%
Pharma; 4%
Healthcare; 2%
Engineering; 4% Other; 6%
Randstad US Professionals
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Professionals’ operating company structure
• Information Technology
• Randstad Technologies
• B2B Workforce
• Technisource
• Engineering
• Randstad Engineering
• Accounting/Finance
• Randstad F&A
• Mergis Group
• Human Resources
• Randstad HR
• Healthcare (Nursing/Physicians)
• Randstad Healthcare
• Life Sciences
• Randstad Pharma
• Executive
•Tatum
• Headquartered in Massachusetts
• Randstad Managed Services
• SourceRight
• Master Service Provider (MSP)
• RPO
• Payrolling
• HR Consulting
• Outplacement
Randstad Professionals Randstad HR Solutions
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Enterprise Solutions
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Geographic coverage US Professionals
With SFN, approximately 2500 employees in the US • Over 200 branch locations
strong performance maintained throughout 2011 Q3 marked our 7th consecutive quarter of double digit growth
December 1, 2011 Analyst & Investor days 2011 10
IT continued to lead the way
Accelerated growth in Engineering and Healthcare, while MSP further strengthened
Finance somewhat under pressure
Performance of SFN Professionals in line with expectations
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011
Note: organic growth Randstad US Professionals
• Leverage the scale and assets of the Randstad enterprise • Customers, both domestic and global
• Expand market share / wallet share with client base across all segments of US enterprise
• Expanded use of Enterprise Solutions
• Leverage brand opportunities
• Develop best-in-class ROS • Use of field steering / business analytics to drive the business and manage investments
efficiently
• Move up the value chain
• IT, Technisource (solutions), B2B, Tatum, Pharma (solutions)
• Increase/leverage perm opportunities
• Leverage technology for efficiency, back-end and front-end
• Margin expansion through pricing and business mix
• Leverage SG&A costs across “new” enterprise
• Leverage SME opportunities through cross selling of OpCos
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US Professionals: strategic initiatives (1)
• Develop leading positions in largest markets • IT
• Finance & Accounting
• Pharma
• Engineering
• RPO / MSP
• Develop a best-in-class recruiting organization • Enhanced use of social media
• LinkedIn, Facebook, etc.
• International recruiting capabilities
• Segmented recruiting
• Low cost delivery
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US Professionals: strategic initiatives (2)
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US Professionals: rebranding
• Rebrand externally launched October 1st • NYTimes.com, CareerBuilder.com, Boston.com, and SHRM.com homepage takeovers
• Radio advertising in Boston, DC, and Atlanta
• LinkedIn advertising
• Google search advertising
• In the first four weeks, from October 3 – 30, our online banner ads were viewed almost 70 MILLION times, with search advertising bringing an additional 2.2 MILLION views
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US Professionals: rebranding and new head office
• Professionals’ headquarters nearing completion • Technologies group already occupying new space in Woburn, MA
Excellent brand visibility on I-93
SFN integration update
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SFN integration update
• Top structure announced and retained • Karen Macleod, Tatum
• Brendan Courtney, Mergis
• Rebecca Callahan, SourceRight
• Andy Speers, Technisource (Solutions)
• Systems of choice identified and communicated • Customer visits in full swing • Many functional lines mapped to new organization
• HR, Marketing, IT, Strategic Accounts, Finance
• Integration plans developed and communicated • Merge Technisource staffing into Randstad Technologies
• Break out solutions business as stand-alone
• Move Mergis’ engineering business to Randstad Engineering
• Merge Mergis into Randstad Finance & Accounting
• Move Todays Office to General Staffing
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SFN integration update
• Merge SourceRight and Randstad Managed Services (RMS) • SourceRight to focus on RPO
• RMS to focus on MSP
• For Back Office functions, those most likely to be impacted by integration synergies, there has been 0 attrition in weeks 45 and 46, and only 3 people total in weeks 43 and 44 • For the Professionals field organizations, attrition has held steady at rates observed before
the merger was announced – there has been no upward impact
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Impact of SFN on Randstad US, Professionals
• Gain significant scale and complementary business lines in key segments • IT, #2
• Finance and accounting, #3
• RPO, #1
• Added scale in engineering, legal, and sales & marketing • Gain a specialty business in Tatum
• Provides halo effect and entry point into SME market
• Significant capabilities in IT solutions space with Technisource
• Added leverage in our perm capabilities
• Significant leverage in SFN’s strategic accounts
• Market leader in RPO • One of the fastest-growing segments in US staffing market
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HR Solutions
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Why MSP is important to Randstad
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• Full spectrum contingent labor management globally • Includes professional, commercial and light industrial temporary, project/SOW,
independent contractor populations
• Continued expansion of Randstad brand penetration • Building of better communication mechanisms for increased overall wallet share
• Technology and data are optimized • Relevant functionality is utilized; translation of data results in strategic action planning
• Managed with predictive indicators • Construction of trending/ hiring/ identification of improvement actions in advance of poor
performance
• Blending of MSP and RPO concepts • Inclusion of 3rd party direct placement firms, temp-to-hire concepts and point RPO
solutions
• A path toward the “front door” of work • Generating results based on the proper classification of work product through a single
entry point
• Strategic decision-making around workforce mix • Building an integrated variable v. fixed talent strategy
Combined MSP Industry Leadership
• Strength of Solutions • #1 in MSP: by numbers of clients
• Top 3 in MSP: by spend under management, Randstad and SourceRight
• Top 3 on Outsourced Service Contracts: by total spend
• Top 2 in MSP-Master Supplier: by total spend
• Top 3 in Hybrid MSP: encompassing vendor-neutral and master supplier models
• #1 in Healthcare: MSP by spend for healthcare, clinical, scientific skill groups
• Top 5 in IT and Engineering: MSP for spend by skill group
• Regional Presence • US and Canada: Top Tier (#1 by client count, #3 by spend under management)
• Europe: Leading player (#2 in Western Europe, #1 in Eastern Europe)
• #1 in Argentina, Belgium, Luxembourg, Netherlands, Spain, Poland and Portugal (spend under management)
• Top Tier: Denmark, France, Switzerland, Sweden, Denmark, UK
* Data from SIA VMS/MSP Landscape Report
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RPO business overview
• Business Highlights • Market Leader
• Double Digit CAGR Revenue / Profit
• Industry Recognitions
• Market Offerings • Full End to End Outsourcing
• Selective Outsourcing
• Project Based Solutions
• RPO One
• Recruiter on Demand (ROD)
• Delivery Infrastructure • 700+ Dedicated Resources
• 2 Major Ops Centers (Seattle/Atlanta)
• Virtual Resource Model
• Offshore Footprint (Philippine Partner)
• Operate 7 ATS Platforms (Client Driven)
• Recruitment Analytics Platform
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2011 Data (Annualized)
Category E2E Hires Facilitated Estimate Total
Accounting/Fin 8,000 600 8,600
Admin/Ops 5,500 10,300 15,800
Cust Service 1,100 5,700 6,800
Engineering/IT 13,900 5,000 18,900
Sales & Mktg 2,700 7,900 10,600
Grand Total 31,200 29,500 60,700
SourceRight market leader
Market Recognition Industry Awards Customer Satisfaction Rankings
HRO Today 2010 RPO Baker’s Dozen
Ranked #1 Enterprise RPO
HRO Today 2010 RPO Baker’s Dozen
Ranked #1 Service Quality (3 years in a row)
HRO Today 2011 MSP Baker’s Dozen
Ranked 2 years in a row
Staffing Industry Analysts Customer Loyalty
Top Performer MSP – Supplier Category
2011 IAOP Ranking
Best 10 Sub-List Leaders in Revenue Growth
2010 VMS / MSP Landscape
Ranked #3 MSP Outsourced Service Contract Spend Solutions
Everest Research Institute
Ranked in RPO Leader Category
NelsonHall
Ranked #3 RPO North America
Human Resources Outsourcing Association (HROA)
Human Resources Outsourcing Association (HROA)
HRO Today Magazine
Rebecca Callahan, SourceRight President –2010 HRO Superstar
RPO Innovation of the Year- Reporting & Analytics Platform
HROA RPO Service of the Year- Relationship with Large Financial Services Client
Top Provider Payroll & ICC
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