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November 20, 2014 Capital Markets Day 2014 2

program

Thursday November 20, 2014

Subject

13:00 Randstad Group Strategy Jacques van den Broek, CEO

13:45 Financial Strategy Robert Jan van de Kraats, CFO

14:30 Coffee break

15:00 Profitable growth in The Netherlands Chris Heutink, Executive Board member

15:40 Winning in US Staffing Traci Fiatte, President, Randstad General Staffing USA

16:20 How does Technology affect our business? Reiant Mulder, Operations Director

16:50 Randstad Innovation Fund Ilonka Jankovich & Paul Jacquin, Managing Partners

17:20 Wrap-up Jacques van den Broek, CEO

17:30 Drinks and appetizers

18:30 End of event

Capital Markets Day

Capital Markets Day London Randstad Holding nv November 20, 2014

Jacques van den Broek, CEO

Capital Markets Day 2014 November 20, 2014

disclaimer & definitions

4

Certain statements in this document concern prognoses about the future financial condition, risks, investment plans, productivity and the results of operations of Randstad Holding and its operating companies as well as certain trends, 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, achievement of cost savings, changes in the business mix, 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.

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EBITA: operating profit before amortization and impairment acquisition-related intangible assets and goodwill, badwill, integration costs and one-offs.

organic growth is measured excluding the impact of currency effects, acquisitions, disposals and reclassifications.

diluted EPS is measured before amortization and impairment acquisition-related intangible assets and goodwill, badwill, integration costs and one-offs.

November 20, 2014

Capital Markets Day 2014 5

agenda

evolution our strategy Total Talent Architecture (TTA) business segments Activity-Based Field Steering (ABFS) conclusion


Randstad: 10 year evolution diversified portfolio and track record of improving profitability

Staffing & HRS, exc. Perm

Inhouse

Professionals

Perm Staffing

Staf + HRS IH Profs Staf + HRS IH Profs

2003 2013

GP of € 1.1 Bln

GP of € 3.0 Bln

EBITA of 2.3% EBITA of 3.5%, higher by 50%

6


we review trends constantly and manage on actuals, driving sustainable business improvements

freelancer solutions

our services offering has evolved accordingly

7


structural changes the world is undergoing fundamental structural shifts

8

(de)regulation • combat union/government strategy to limit flexibility

by introduction limitations and conditions

globalization/demographics • increasing skills mismatches and migration flows • clients looking for fewer suppliers within and across

countries • industry shortages & surpluses differ per sector and

profile type

flexibility • more labor market flexibility is needed to enhance

competitiveness and adapt to change: invest in work security


our strategy Randstad core values: to know, serve and trust, striving for perfection and the simultaneous promotion of all interests

9


strategic roadmap driven by best people, strong concepts, excellent execution and superior brands

10

shape the world of work • optimal workforces for

clients • the best jobs for

candidates

grow to 5-6% EBITA • profitable growth • improve margin • increase productivity

HR technology • being the most agile integrator of

technology & services in our industry

Randstad innovation fund • capturing trends & future

business in HR technology

M&A, seamless fit integrations • strategic fit • value creation • manageability

Total Talent Architecture, World Class Customer Experience • creating quantifiable business impact addressing the entire

workforce of our clients

Activity-based Field Steering • driving commercial excellence;

brand strength, leads and conversion

World League People, at the right place, at the right time • optimized organization structure • high performance culture & people engagement • continuous process improvement

Org

TTA

Tech

ABFS

M&A

today

goals

Capital Markets Day 2014 11

Total Talent Architecture (TTA)

Capital Markets Day


TTA: creating quantifiable business impact across the entire workforce

12

“We know you, we know your company, we know your sector and we can help you become a better company with a better output of your people with more efficient HR processes. We’ve compared you against the benchmarks. We can show you where we did it, would it be interesting to talk further with us on this?”

TTA is the way to execute our ambition

define issues

identify stakeholders

assemble facts & figures

translate into

compelling messages

turn into bold

statements

create action plan

problem solution proof

13 November 20, 2014 Capital Markets Day 2014


roadmap to business impact

14

ad-hoc

preferred suppliers

total cost of ownership

engagement models

total talent architecture • strategic planning • includes all workforces • holistic approach • global & local optimization • applied innovations • aims for industry leadership

• MSP • RPO • SSC • process

improvement • aims to add value

• transparency • longer term view • process efficiencies • aims to lower total costs • consolidated

• compliance • aims to control and save costs • diversified

• single categories • aims to meet local needs

degree of business impact

degree of agility and sustainability

bottom line impact top line and bottom line impact


TTA: connecting our business

15

Staffing In house

MSP & RPO

Profs non- tech

Profs tech

Total Talent Architecture

Opco MD

EB

Marketing, HR, BCD - concept specific

Support SSC (Finance, IT, Legal, Facilities etc.)

Capital Markets Day 2014 November 20, 2014 Capital Markets Day 2014 16

business segments

Capital Markets Day


Staffing: adapting delivery models to customer needs

17

Revenue

4,2%4,0%

4,3%

4,7%

5,0%

3,8%3,7%

3,3%3,4%

4,0%

2,0%

2,5%

3,0%

3,5%

4,0%

4,5%

5,0%

2010 2011 2012 2013 L12M

Inhouse Staffing

EBITA%

0.7 0.9

1.5

1.9 1.9

1.3

2.0

2.6

3.1 3.2

3.5

5.4%

7.0%

9.1%

11.1% 11.0% 10.6%

14.1% 15.0%

17.9%

19.5%

20.8%

--

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 L12m0%

5%

10%

15%

20%

Inhouse Rev (€ B)

share of totalrevenue


Professionals: growth is picking up ABFS and people in place, ready to grow further

18

-80

-60

-40

-20

0

20

40

60

80

100

-10%

-5%

0%

5%

10%

Q1 14 Q2 14 Q3 14

EBITA Δ (RHS) GP Growth

Professionals in € M Q3 2014 Q3 2013 % organic*

revenue 877.3 837.9 4%

EBITA 47.9 39.3 23%

EBITA margin 5.5% 4.7%

growth led by Belgium, NL, Iberia, Poland and emerging markets improving profitability trend in main markets perm +12%


Professionals remains a big opportunity market will continue to grow structurally faster than staffing

19

2013 (€ bln) Total Staffing professionals

Market 310 215 95

Randstad 16.8 13.5 3.3

Market share 5.4% 6.3% 3.5%

Total global market

Global Clients ~25% of group sales

Staffing Professionals


Professionals: what is the way forward? getting our act together, structurally driving forward from here

Anglo Saxon markets: further expanding vertical strategy (IT, Finance, Engineering etc.)

management changes in US profs, UK and Australia happened

North Europe: vertical approach is being implemented

e.g., the Dutch professionals operation

Emerging/Embryonic markets: focus on growth/market share

China is the example where high growth (>50% in Q3) goes hand in hand with a good productivity. India should follow

20


Perm: fast growing, but a long way to go

Chin

a

UK

AUS

Gro

up

US

Staf

fing

0%10%20%30%40%50%60%70%80%90%

100%Perm as a % of GP

primarily established temp markets

embryonic/developing markets

21

Perm now makes up 10% of group GP (was ~12% in 2007)

Perm grew 15% in Q3 and continues to accelerate in Q4 in established markets we have the potential to double (predominantly across North Europe)


Sourceright strengthening in Europe with expertise in recruitment process outsourcing RPO, managed services programs MSP, blended workforce solutions, and payrolling & independent contractor solutions

22

more than a third of RPO deals signed in Europe are multi-country solutions (frequency increasing) – physical presence in 22 European countries (delivery capabilites in every country)

the RPO & MSP market will grow around 20% year on year (aim for above market growth by incorporating TTA)

Staffing

Sourceright

Professionals


MSP: spend under management up 35% EMEA is next after rapid adaptation in Anglo Saxon markets

23

201

2

201

3

201

4

L4Q

201

2

201

3

201

4

L4Q

201

2

201

3

201

4

L4Q

North America UK EMEA

Capital Markets Day 2014 November 20, 2014 Capital Markets Day 2014 24

Activity-Based Field Steering (ABFS)

Capital Markets Day


ABFS for all services

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Organizational Readiness ABFS alignment for all actual and future services

services


Headcount Productivity (distribution vs average)

Operational effectiveness (ratios)

Consultant Capacity (# of activities)

Activity-based field steering in place

Onboarding program

Role of Management Order Pipeline

(Customers, Orders, Candidates)

Revenue/GP Growth

Profitability (conversion ratio)

existing producer population

(individual producers per branch)

business performance

(vertical and branch level)

organizational readiness

(per vertical per country)

1 Is the organization ready to grow? 2 Is the business performance positive? 3 Do consultants follow the growth path?

ABFS is part of our growth readiness framework invest, manage, divest

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activity matrix – which actions to take?

coach closely on focus/conversion

well-performers, prepare for investment

further growth by driving activities increase activities at

tar

get

activ

ity le

vel

at target GP/FTE

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what has ABFS brought us so far?

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a cumulative 29% increase of the activity levels

50%70%90%

110%130%150%170%190%

wk2

0w

k21

wk2

2w

k23

wk2

4w

k25

wk2

6w

k27

wk2

8w

k29

wk3

0w

k31

wk3

2w

k33

wk3

4w

k35

wk3

6w

k37

wk3

8w

k39

wk4

0w

k41

wk4

2w

k43

May June July August September October

activities vs. last year

calls vs. LY visits vs. LY


what has ABFS brought us so far (II)?

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an improved productivity of our field staff

-8%-6%-4%-2%0%2%4%6%8%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2012 2013 2014

yoy

grow

th %

productivity trends(yoy growth for GP and PE field)

growth GP (normalized for wd) growth PE field


conclusion: where do we see structural growth opportunities and room for improvement?

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