J.P. Morgan Ultimate Services Investor Conference November 10, 2015

Transcription

1 J.P. Morgan Ultimate Services Investor Conference November 10, 2015 Max Messmer Chairman and CEO Keith Waddell Vice Chairman, President and CFO

2 Company Background Originated in 1948 as boutique financial recruitment firm In 1986, acquired the business from Bob Half; it had just two employees Built corporate infrastructure, bought back franchises and opened new offices worldwide; launched new professional staffing divisions Robert Half became the largest staffing firm specializing in accounting and finance positions, and the premier name in professional staffing In 2002, entered the risk consulting and internal audit business through formation of Protiviti 2

3 Awards and Recognition FORTUNE WORLD S MOST ADMIRED COMPANIES Most Admired Companies ( ) Barron s 400 Index Responsible Investment Index ( ) TITLE GOES HERE Protiviti a Best Company to Work For (2015) Best Places to Work lists around the world 3

4 Global Operations More than 400 offices in 20 countries worldwide North America Europe Middle East Asia-Pacific Canada United States South America Brazil Chile Austria Belgium France Germany Italy Luxembourg Netherlands Switzerland United Kingdom UAE Australia China India Japan New Zealand Singapore 4

5 Robert Half Revenue Mix By Geography International 20% 80% United States Q Staffing Revenues 5

6 Robert Half Revenue Mix International Percentage of Global Staffing Revenues Continental Europe 10% United Kingdom 4% Canada 3% Asia-Pacific 3% 20% 80% International United States Q Staffing Revenues 6

7 Robert Half Revenue Mix Continental Europe Percentage of Global Staffing Revenues Germany 4% Belgium 3% 10% France 2% Other 1% Continental Europe Q Staffing Revenues 7

8 Robert Half Revenue Mix Business Segments 2014 Global Revenue $4.7 Billion Temporary and Consulting Permanent Placement 9% 76% 15% Risk Consulting and Internal Audit Q

9 Our Brands Recruiting Specialized Staffing Project Skills Project Management and Deliverables 9

10 Business Strategy Value proposition: Only full-time jobs require full-time staff Clients value specialization in professional segments Middle-market accounts are smaller, less pricesensitive; clients are demanding, quality is key Internal staff possess specialized skills Protiviti provides consulting, project management, co-sourcing and outsourcing capabilities 10

11 Accounting Staffing Demand U.S. job growth for financial analysts, accountants and auditors expected to outpace national average between 2012 and 2022 * Bookkeeping, accounting and auditing among top 15 occupations with highest projected job growth between 2012 and 2022 * Low unemployment in many roles ** Financial managers: 1.3% Accountants and auditors: 2.0% Financial analysts: 3.2% 11 *BLS Occupational Outlook Handbook, Edition **U.S. Bureau of Labor Statistics, Q3 2015

12 Technology Staffing Opportunity IT staffing market is 3-4 times larger than accounting staffing Low unemployment for IT positions * Computer network architects: 1.9% Computer and information systems managers: 2.5% Software developers, applications and systems software: 2.7% New application development demand at middle-market companies Growing need for customized software, websites, mobile and social media 12 *U.S. Bureau of Labor Statistics, Q3 2015

13 Unique Robert Half/Protiviti Delivery Model Staffing Blended Consulting We provide world-class consulting and specialized staffing, under one roof, at an attractive price Global and regional consulting firms that compete with Protiviti lack the flexible resource capabilities of our staffing operations Staffing competitors lack in-house access to Big 4 consulting methodologies like those of Protiviti 13

14 Marketing Approach Positioned as quality leader through advertising and PR activities Traditional media for broad brand awareness Radio (including Pandora) Locally directed advertising and events Digital media for specific target audiences Search paid and natural Digital advertising and retargeting /direct marketing Social media 14

15 Marketing Approach Robert Half website Gateway to expanded digital interaction Localized microsites Mobile friendly Dynamic content Optimized for natural search rankings 15

16 20-Year Revenue History Compounded Annual Growth 20 years ended 12/31/ % $4.7B Other Services Robert Half F&A/ Accountemps 16

17 20-Year Cash Flow From Operations Compounded Annual Growth 20 years ended 12/31/ % $340.7M 17

18 Return on Equity (20-Year Average & Q3 2015) 38.3% 24.9% 20-Year Average* Q *Through Dec. 31, 2014

19 Recent Operating Performance 22 consecutive quarters of double-digit net income and EPS percentage growth on year-over-year basis Secular shift to temporary jobs Macroeconomic improvement 19

20 Temporary and Consulting Revenue ($ in Billions) (2001 Q3 2015) 9 mos $2.3 $2.2 $2.6 $3.1 $3.6 $3.6 $2.5 $2.6 $3.1 $3.3 $3.4 $ % growth y/y (same-day, constant-currency) $2.72 $2.92 $1.8 $ mos mos

21 Temporary and Consulting Gross Margin % (2001 Q3 2015) 36.6% 36.0% 36.5% 37.0% 37.2% 36.7% 36.0% 35.6% 36.2% 36.6% 36.5% 37.2% 34.9% 35.2% 34.1% 34.1% mos mos

22 Temporary and Consulting Conversions % (2000 Q3 2015) 5.1% 4.0% 4.0% 4.1% 4.0% 2.8% 3.0% 3.6% 3.5% 2.5% 2.9% 2.9% 2.9% 3.1% 3.3% 2.1% mos

23 Temporary and Consulting SG&A % (2001 Q3 2015) 32.9% 32.7% 28.9% 29.0% 29.8% 29.9% 27.0% 26.9% 27.0% 27.1% 28.3% 27.7% 27.3% 26.8% 26.8% 26.9% mos mos

24 Temporary and Consulting Operating Income % (2001 Q3 2015) 7.6% 6.9% 9.5% 10.0% 10.2% 9.6% 6.9% 8.3% 8.9% 9.8% 9.7% 10.3% 4.2% 4.2% 2.7% 2.2% mos mos

25 Permanent Placement Revenue ($ in Millions) (2001 Q3 2015) $336 $444 $427 $302 $334 $348 $395 9 mos % growth y/y (same-day, constant-currency) $298 $320 $189 $219 $182 $221 $136 $100 $ mos mos

26 Permanent Placement Revenue Mix (2000 Q3 2015) 10.8% 10.5% 9.4% 9.7% 9.0% 9.1% 9.4% 9.7% 9.9% 7.7% 7.7% 6.9% 7.9% 5.4% 5.1% 5.8% mos

27 Permanent Placement SG&A % (2001 Q3 2015) 106.8% 103.7% 89.2% 97.3% 87.5% 79.7% 77.8% 80.6% 85.8% 92.0% 88.2% 83.3% 84.3% 80.1% 79.4% 78.7% mos mos

28 Permanent Placement Operating Income % (2001 Q3 2015) 20.3% 22.2% 19.4% 19.9% 20.5% 21.1% 16.7% 15.6% 10.8% 12.5% 14.1% 11.7% 7.9% 2.7% mos % -6.8% mos

29 Protiviti Revenue ($ in Millions) (2004 Q3 2015) $624 9 mos % growth y/y (same-day, constant-currency) $352 $479 $543 $552 $547 $384 $386 $424 $453 $528 $453 $ mos mos

30 Protiviti Gross Margin % (2004 Q3 2015) 37.8% 39.8% 36.6% 31.6% 28.3% 20.8% 25.2% 26.8% 25.9% 29.3% 29.4% 28.9% 30.6% mos mos

31 Protiviti SG&A % 2004 Q % 21.6% 25.5% 27.8% 26.9% 28.9% 28.1% 25.6% 23.5% 21.2% 19.7% 20.3% 18.1% mos mos

32 Protiviti Operating Income % 2004 Q % 18.1% 11.2% 8.1% 9.7% 8.6% 12.5% 3.8% 1.3% 1.2% 2.4% mos. -2.8% % 9 mos

33 Strong Financial Position As of 09/30/15 Cash Total assets Virtually no debt $252 million $1.7 billion 33

34 Cash Returned to Shareholders ($ Millions) 1 Year 5 Years Dividends $98 38% $428 40% Share Repurchases % % Total $ % $1, % Free Cash Flow $252* $1,009* 34 Amounts shown are through Dec. 31, 2014 *Cash flow from operations net of cash used for investing activities

35 Robert Half Quarterly Dividend History Since Inception Compound Annual Growth Rate 11.1% $0.18 $0.20 $0.10 $0.11 $0.12 $0.13 $0.14 $0.15 $0.16 $0.06 $0.07 $ May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Feb May Aug Nov Feb May Aug Nov

36 Share Count Reduction 12/31/2014 Shares (millions) % 3 years % 5 years % 10 years % 31 36

37 Market Opportunity Staffing Services *BLS JOLTS report, Oct **BLS Employment Projections Annual global revenues for staffing industry approximately $400B USD Highest number of U.S. job openings in professional/business services * Employment services among the 10 U.S. industries expected to add the most jobs through 2022 ** Long-term demographics war for talent, retiring baby boomers Temp penetration rate at all-time high and growing We work with less than 10 percent of target prospects 37

38 Market Opportunity Protiviti Solid base of recurring internal audit and financial controls demand PCAOB audit inspections Growing suite of consulting services Financial services regulatory risk and compliance Technology privacy, security and controls Protiviti/staffing blended solutions 38

39 Thank You