Q1 2008 Results by hubeybrown


									25 April 2008

          Q1 2008 Results
          Presented by
          Tex Gunning    Chief Executive
          Frits Vervoort CFO
This presentation includes forward-looking statements that reflect our intentions, beliefs or
current expectations and projections about our future results of operations, financial
condition, liquidity, performance, prospects, growth, strategies, opportunities and the industry
in which we operate. Forward-looking statements include all matters that are not historical
fact. We have tried to identify these forward-looking statements by using words including
“may”, “will”, “should”, “expect”, “intend”, “estimate”, “project”, “believe”, “plan”, “seek”, “co
ntinue”, “appears” and similar expressions or their negative.
These forward-looking statements are subject to a number of risks, uncertainties, assumptions
and other factors that could cause our actual results of operations, financial
condition, liquidity, performance, prospects or opportunities, as well as those of the markets we
serve or intend to serve, to differ materially from those expressed in, or suggested by these
forward-looking statements. Important factors that could cause those differences include, but
are not limited to our financial position and our ability to implement our business strategy and
plans and objectives of management for future operations, our ability to develop, balance and
expand our business, our ability to implement our long-term growth strategy (including
through organic growth and acquisitions), our ability to make improvements to our capital
structure, industry and market trends and volumes, including the speed and strength at which
the staffing services industry and the sectors in which we operate, rebound from economic
slowdowns and recessions, the effects of regulation (including employment and tax
regulations), our ability to improve the efficiency of our operations and to reduce expenses in
our operating companies and their network of offices, litigation and our ability to take
advantage of new technologies.
In light of these risks, uncertainties, assumptions and other factors, the forward-looking events
described in this presentation might not occur. Additional risks that we may deem immaterial
or that are not presently known to us could also cause the forward-looking events discussed in
this presentation not to occur. Except as otherwise required by applicable law, we undertake
no obligation to update publicly or revise publicly any forward-looking statements, whether as a
result of new information, future events, changed circumstances or any other reason after the
date of this2presentation.
    Q1 2008 Highlights

    Organic sales up 5% to €2,038.9m
     • Sales growth of 7% on a per working day
     • 1.2 less business days due to timing of Easter

    Operating income up 6% to €77.9m
    (+4% organically)
     • Traditional +9%
     • Engineering/Technical +10%
     • Accounting/Finance +18%
     • Healthcare +18%

    Q1 2008 Highlights

    Currency effects decreased sales by 3%
    and operating income by 4%

    Permanent placement fees up 15%

    Net income up 5% to €46.9m

    EPS up 4% to €0.27

    Business Development

    Acquisition of Pareto Law, UK based
    graduate placement organisation

    Active organic growth
     • Expansion of operations in the Middle East,
       into Kuwait and Qatar
     • 102 new offices compared to Q1 2007
     • Total global network of 2,588 offices

    Q1 2008 Operating Summary

    France gross profit increase 8%
     • Operating income up 9%
     • Permanent placement grew by 57%

     • Accounting/finance, healthcare and
       engineering sectors all performing well

     • Particularly strong performance in
       automotive industry

    Q1 2008 Operating Summary

    UK gross profit increase 7%
     • Operating income down 3% but on a per
       working day basis up 3%
        - 6 days lost to our Education business mainly due to
          timing of Easter
     • Permanent placement fees increased 22%
     • Growth across professional/executive sectors
        - Engineering
        - Accounting/Finance
        - Healthcare
        - Interim Management
        - HR

    Q1 2008 Operating Summary

    Netherlands gross profit up 3%
     • Operating income up 28% helped by €2m one
       off gain mainly relating to the realisation of
       training subsidies relating to prior years

     • Improved operating income from
       professional/executive brands especially
       accounting/finance, IT, education and interim

     • Permanent placement fees up 20%

    Q1 2008 Operating Summary

    US gross profit down 5%
     • Operating income increase 2% and sales
       growth of 1%

     • Improved results in the IT and healthcare
       staffing sectors

     Q1 2008 Operating Summary

     Other markets

      • Australia/NZ gross profit increase 6%
        - Operating income decreased 17% following investments
          for growth and weakness in the financial sector
        - Confident of a return to positive improvement in
          operating income for the remainder of year

      • Good performances in Belgium, Luxembourg,
        Portugal, Norway, Turkey and Greece

      • Strong growth in Canadian IT market

      • Latin America and India experiencing strong
        operational growth

             Income Statement

Three months ending 31 March 2008

€ million
                      Q1 2008   Q1 2007     Increase   Organic
Sales                 2,038.9   1,939.7        5%       5%

Gross profit            396.8       373.7      6%       6%
  Gross margin          19.5%       19.3%

SG&A                    318.9       300.3      6%       7%

Operating income         77.9        73.4      6%        4%
  Operating margin       3.8%        3.8%

Interest                 -7.5        -8.7

Tax                     -23.4       -20.1

Net income              46.9        44.7       5%

Earnings per share      0.27        0.26       4%


     1 April 2008:   Launch of Public Offer
     17 April 2008: European Commision
     22 April 2008: Announcement of proposed
                    new structure in Benelux
     23 April 2008: Randstad shareholders
     Preparations for integration progressing
     and we are working side by side in a very
     positive spirit

     Management Outlook

     Uncertain economic environment in
     2008 with limited visibility

      • Year has got off to a satisfactory start in Q1

      • Despite uncertainty, we expect positive
        growth in Q2 as well

Any Questions?

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