2013 ANNU AL REPOR T 201 ANNUAL 3 REPORT

Transcription

1 2013 ANNUAL REPORT

2 Cover photo Henriët Veldkamp, Executive Secretary Corporate Projects, USG People Pedro Okken, Operational Manager, ASA

3 ANNUAL REPORT 2013 FORWARD-LOOKING STATEMENT This annual report contains certain forward-looking statements regarding the financial situation and results of USG People N.V., as well as a number of associated plans and objectives. Forward-looking statements by their nature can provide no guarantee for the future. As a result of various factors actual results may differ from current expectations. These factors may include changes in tax rates, mergers and acquisitions, economic developments and changes in labour legislation. The forward-looking statements in this annual report are current at the time the report was adopted and provide no guarantees for the future. The annual report is available in Dutch and English. In the event of ambiguities, the Dutch text shall prevail.

4 IN 2013 USG PEOPLE UNITED ITS OPERATIONS IN FOUR INTERNATIONAL STAR BRANDS: START PEOPLE, UNIQUE, SECRETARY PLUS AND USG PROFESSIONALS Each and every day around 90,000 people are employed via USG People at companies and institutions in continental Europe. This makes USG People one of the largest HR services providers in Europe, with its activities mainly focused on the Netherlands, Belgium, Germany and France. USG People achieved revenue of 2.3 billion euros in The current organisation, with its staff of around 6,000, originates from Unique Uitzendburo which was established in the Netherlands in USG People has been listed on the stock market since 1997 and the organisation has since grown through organic growth and acquisitions, including the acquisition of Start Holding in Netherlands in 2002 and Solvus Resource Group in Belgium in USG People s second home market (after the Netherlands) is Belgium, where the organisation has been active since USG People is the second largest HR services provider in the Dutch and Belgian markets in terms of revenue. In 2013 USG People united its operations in four international star brands: Start People, Unique, Secretary Plus and USG Professionals.

5 2013 FOCUS USG People sharpens its focus by divesting the general staffing activities in six countries and uniting its brands in four star brands: Start People, Unique, Secretary Plus and USG Professionals ACQUISITION OF ALLGEIER DL In 2008 USG People strengthens its position in Germany with the acquisition of Allgeier DL s staffing activities STOCK MARKET LISTING The acquisition of Goudsmit, a listed company, means that Unique International becomes listed on the Amsterdam stock exchange. This results not only in increased name awareness but also in the opportunity to invest more in the company s scale, services and efforts to create an international network THE BEGINNINGS On 11 December 1972 Alex Mulder founds Unique Uitzendburo. The company s first employees and candidates come up with the company name ACQUISITION OF SECRETARY PLUS In 2001 the specialist activities are expanded with the acquisition of Secretary Plus. That very same year Unique International changes its name to United Services Group ACQUISITION OF START In 2002 United Services Group acquires staffing organisation Start, expanding the group s general staffing activities in the Netherlands, Spain and Italy. In 2002 group revenue exceeds 1 billion ACQUISITION OF SOLVUS Belgian peer Solvus Resource Group is acquired in 2005, after which the combined entity operates under the current name of USG People N.V. USG PEOPLE 003

6 CREATED VALUE IN 2013 development in 2013 supervision financial reporting OUR RIGHT TO EXIST social relevance added value stakeholders OUR ROADMAP AND GOVERNANCE strategy corporate governance OUR BELIEF AND CULTURE mission and vision business principles INTRODUCTION AND GUIDE This is USG People s 2013 annual report. The report is structured differently this year as we take a first step towards a more integrated annual report. The purpose is to provide a better insight into the elements and aspects that drive value creation within our organisation, that justify our existence and that generate returns for our company s different stakeholders. While anyone interested is more than welcome to read the report, its primary target group is our stakeholders. For us, stakeholders are everyone associated with our organisation who contribute to its success and justify our existence. The report is divided into four parts: our right to exist, our belief and culture, our roadmap and governance, and the value we created in This report also contains condensed information about USG People s sustainability policy. Similar to last year, a separate sustainability report has been published alongside this annual report. As from next year we will incorporate the sustainability aspects of our operations into the annual report. This is the last time that we are publishing a printed version of the annual report. As from the 2014 financial year all annual reports will only be published online.

7 005 INDEX OVERVIEW & STRATEGY CEO S PREFACE KEY FIGURES SOCIAL RELEVANCE OF OUR WORK OUR ADDED VALUE STAKEHOLDERS MISSION AND VISION BUSINESS PRINCIPLES STRATEGY CORPORATE GOVERNANCE FINANCIAL CALENDAR HIGHLIGHTS REPORTS EXECUTIVE BOARD MEMBERS PROFILES REPORT OF THE EXECUTIVE BOARD developments in our relevance to society development of our added value risk section results by segment development of financial results our financiers summary of strategic execution outlook SUPERVISORY BOARD MEMBERS PROFILES REPORT OF THE SUPERVISORY BOARD PRINCIPLE FEATURES OF THE REMUNERATION REPORT FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS 085 consolidated income statement 085 consolidated statement of comprehensive income 086 consolidated balance sheet as at 31 december 087 consolidated statement of change in shareholders' equity 088 consolidated statement of cash flows 089 notes to the consolidated financial statements 090 COMPANY FINANCIAL STATEMENTS 148 company income statement 148 company balance sheet at 31 december (before profit appropriation) 148 notes to the company income statement and balance sheet 149 OTHER DATA events after the balance sheet date 156 provisions in the articles of association regarding profit appropriation 156 profit appropriation 157 independent auditor s report 158 ADDITIONAL INFORMATION ten-year overview 162 financial glossary 164 colophon INDEX 005

8 WE LAID A NEW FOUNDATION FOR THE FUTURE, A FUTURE IN WHICH USG PEOPLE CAN GROW SUSTAINABLY

9 CEO S PREFACE In 2013 we got our organisation on track for the next stage in our development by increasing the focus in our positioning, both geographically and with respect to the services we offer. The positioning of our activities is more focused. The management and organisational structures are more effective, the links and cooperation between our brands have been intensified; and our services have become more distinct. We laid a new foundation for the future, a future in which USG People can grow sustainably. In 2013 we made changes to our organisation, in line with our 2011 strategic revision. The geographic scope of our general staffing activities has been scaled back from nine to three countries. The general staffing activities in the other six countries were sold in the first half of the year. The position of the activities is now much more focused, allowing us to use our resources more effectively to continue to grow our added value in regions where we are well-positioned. Dear stakeholders and all others interested, 2013 was not a strong year from a macro-economic perspective. There was barely any economic growth and the confidence of businesses and consumers alike was low, particularly in the first half of the year. Slowly but surely the picture improved in the course of the year. Our markets also gradually improved, which impacted our revenue favourably. The improvements first became visible at a few operating companies in the second quarter of the year. The signs became stronger and a trend of gradual recovery emerged across the board in the summer months. The turning point to growth came in the final quarter of the year. Revenue from our ongoing activities was 2.3 billion for the year and we achieved underlying EBITA of 66.5 million. In 2013 USG Professionals was launched as an overriding international brand for our high-quality HR solutions with highly qualified professionals. Our strategy is aimed at expanding the Professionals division, focusing on market segments in which we provide significant added value and can create sufficient scope. In 2013 we adjusted our positioning accordingly. The services provided by USG Energy no longer fit in the strategic scope of USG Professionals and that is why we divested it in The mix of profiles in the candidate networks of USG Professionals was also adjusted in Now that these changes have been made, USG Professionals is ready to take the step to expand and grow in select, promising market segments. OVERVIEW & STRATEGY 007

10 The start of Project United marked the final leg of the strategic transition in The project aims to strengthen competitiveness by intensifying cooperation between our brands. The brand portfolio was clustered in four star brands: Start People, Unique, Secretary Plus and USG Professionals. This makes the positioning of the brands clearer and more distinct. Each of the star brands provides distinct services in a select market segment. That way the brands can align their organisation and services optimally with the trends in their specific market segment and further grow specialist added value for their stakeholders. An important element of the United project is the simplification of the organisation. Great strides were made in this respect in The Executive Board and the corporate organisation were modified further and the senior management of the operating companies was scaled back. The project will be completed in OUR ORGANISATION IS STREAMLINED AND FOCUSED, WITH PROPOSITIONS IN FUNDAMENTALLY PROMISING MARKETS. WE ARE NOW FOCUSED ON FURTHER GROWING AND DEVELOPING OUR ADDED VALUE IN THESE MARKETS In 2013 underlying costs were reduced throughout the entire organisation. The combination of a sharper focus and a lower cost level improves the commercial effectiveness of our organisation. Throughout the year we invested in new solutions for our customers, for instance with the acquisition of Adver-Online and the implementation of Unique HROffice. These investments have development potential for our services in the entire organisation. Furthermore, in 2013 we launched a number of new initiatives within the framework of SR. In the Netherlands, for example, we launched a plan of action together with Dutch social security benefits organisation UWV aimed at helping job seekers over 55 re-enter the job force. In 2013 USG People started to participate in the internationally acclaimed Great Place to Work study. The outcome of this study is the starting point from which we want to continue to grow our organisation in specific areas of the development of our human capital was a year in which we laid a new foundation for the future. USG People can now grow in another way not only larger but also mainly stronger. Our organisation is streamlined and focused, with propositions in fundamentally promising markets. We are now focused on further growing and developing our added value in these markets. The economic cycle has a large impact on demand for our services. Once the pace of economic growth picks up, USG People will be able to benefit from the increased potential of the adjusted organisation in the near future. The organisational changes implemented in the past year have demanded a great deal of effort and an extremely flexible attitude from all our colleagues. At the same time we unfortunately had to say goodbye to many valued colleagues as a result of divestments and restructurings. I would like to thank everyone for their ongoing commitment and their contribution to the results we achieved in the past year. The dedication and professionalism of all our employees reinforce my faith in the beautiful and successful future of USG People that lies ahead. Rob Zandbergen, Chief Executive Officer 26 February 2014

11 KEY FIGURES 2012 In thousands of euros unless otherwise stated 2013 RESTATED 1) Revenue 2,270,031 2,441,954 EBITA 26,870 62,858 Operating income 41, ,206 Operating cash flow 26,186 29,037 Net income -26, ,179 Dividend 11,268 9,566 Equity attributable to equity holders of the company 458, ,924 Investments in property, plant and equipment 3,775 6,437 Investments in intangible assets 14,117 13,135 Stock market value at year-end 779, ,723 Total number of shares issued at year-end 80,483,677 79,715,875 Average number of employees (FTE) - indirect personnel 5,057 5,329 - direct personnel 54,705 58,023 Number of branches RATIOS EXPRESSED AS PERCENTAGES EBITA / revenue 1.2% 2.6% Operating income / revenue 1.8% -4.5% Net income / revenue -1.1% -7.8% Equity / total assets 38.5% 36.4% PER SHARE IN EUROS (based on average number of shares outstanding) Net income Operating cash flow Dividend Shareholders' equity 2) Share price at year-end Highest share price Lowest share price ) The divestment of the General Staffing activities and changes to IAS 19 Employee benefits resulted in a restatement of the 2012 figures 2) Based on the number of shares outstanding as at 31 December OVERVIEW & STRATEGY 009

12 SOCIAL RELEVANCE OF OUR WORK USG People helps make the supply of and demand for labour more accessible in society and aligns the two better. We interpret this task in a broader and broader sense. The result is that we contribute to healthy dynamics in the job market, thus improving the functioning of society and our economy. A better functioning job market means that more people can take part, leading to more widespread and higher participation. Providing professional support, helping develop talent, strengthening the innovative qualities of employees and developing and innovating staffing organisations for employers. This too helps minimise friction in the job market and increase opportunities for younger and older people and vulnerable groups in the job market. This is how we aim to improve the wellbeing of society at large. HIGHER CHANCE OF SUCCESS FOR ORGANISATIONS We provide companies large and small with professional assistance on many HR and job market-related issues they face. This enables them to use their staff, knowledge and capacity in a more flexible way and, in doing so, lower their risks. We help companies strengthen the innovative capabilities of their staff organisation and at the same time help develop and identify talent. Applying our services helps us contribute to a better functioning job market and therefore a better functioning economy. This is how USG People fulfils the role of motor oil in a job market that does not always run smoothly and how we help improve prosperity within society. USG People has a large and exceptional network of diverse talents seeking a suitable job or new challenge. Employers can use this network to meet their needs and organise their staff effectively, sustainably and in different ways. This enables organisations to align their staff better with actual needs. Using the right solution helps companies organise their staff in a permanent or flexible way that meets their needs. This increases their operational versatility which allows them to respond better to opportunities in the market. At the same time it reduces the risks associated with inflexible staffing organisations and ineffective labour relations. The availability of qualified people at the right time for the right job strengthens competitiveness and ultimately increases companies chances for success. MORE PEOPLE AT WORK USG People provides job seekers with a large network of potential employers. As a partner USG People helps people realise their professional ambitions and shape their careers. The extensive network of clients and the development opportunities to which USG People has access offer attractive opportunities for people to reach their full potential. USG People uses its years of expertise to help people utilise their strengths and develop their talent. This provides them with versatile and sustainable opportunities to find a satisfying job, build a successful career and develop their social status. EVERYONE AT WORK USG People is focused on people. Helping more people find a job is not limited to people who can be placed relatively easily. USG People is also increasingly helping more vulnerable people and those with fewer opportunities in the job market. This category includes people with a limitation, younger and older people, the long-term unemployed and other people who are further removed from the job market. SUSTAINABLE DEPLOYMENT Focusing on sustainable deployment is necessary to be able to provide as many people as possible with access to the job market, but also to keep people who are employed as competent and

13 better connection between labour supply and demand strong competitiveness more supply and demand for work more prosperity for people and organisations better functioning economy involved as possible. Sustainable deployment means investing in healthy, flexible, involved and competent employees who can continue to make a contribution to society, both within and outside the company. We make this a priority and also urge our clients to embrace inclusive business practice. Our policy and specific cases can be found in our sustainability report. This is how USG People contributes to both social and economic prosperity. OVERVIEW & STRATEGY 011

14 OUR ADDED VALUE USG People adds value in areas where the interests of employers, employees and society at large meet. We achieve this added value by making employers and employees more mutually accessible and by creating ties between the groups. We provide a wide range of solutions for creating well-balanced staffing relationships and organisations, focused on aspects including development, diversity and sustainability. USG People has an efficient infrastructure and large networks of organisations and candidates in numerous branches and areas of expertise. Throughout the years we have acquired extensive and thorough knowledge in the field of in the recruitment, selection and organisation of staff and we offer this knowledge to our clients and candidates to find the best solutions needed to create a staff organisation that meets their ever-changing needs in every respect. ACCESSIBILITY USG People s organisation guarantees easy access for both its employees and clients. USG People is an organisation of professionals. Experts who are familiar with the relevant trends and developments in the job market which they know in detail. They have modern technology at their disposal which helps them recruit, select and coach the right candidates through channels including the internet and social media. The branches of Start People, Unique, Secretary Plus and USG Professionals provide an excellent location from which to maintain personal contacts with candidates, which in our society increasingly takes place using the internet, telephone and social media. The branches serve as meeting places where knowledge and experience is exchanged between professionals, but also between the USG People star brands and the candidates. This connectedness makes it possible to share and apply best practices on a wide scale, thus ensuring that knowledge is kept up to date, in constant development and within the organisation. In doing so USG People is able to offer its candidates attractive opportunities to shape their careers and develop further under good conditions. Our operating companies have access to a wide and comprehensive network of candidates and organisations. Through these networks we provide companies with access to a rich wealth of human resources in a wide array of specialist areas, while providing candidates with access to attractive job opportunities. SELECTION USG People helps its clients by selecting the right candidates for assignments and vacancies. We have the capacity, expertise and resources to make matches in a wide variety of aspects and in different areas of expertise. These matches range from large volumes to extremely specialist individual placements. Selecting and matching takes place based on professional and personal considerations. But we also help our clients achieve the best possible balance in their staff base in respect of diversity, sustainable deployment, placing people further removed from the job market, and job-learning placements. SOLUTIONS USG People offers its clients a wide array of solutions for them to effectively structure their staffing organisation. These solutions include recruitment and selection, services relating to HR consultancy and management, staffing, deployment, outsourcing, payrolling, MSP, RPO, HRO, project sourcing, outplacement, career support and training. USG People s operating companies have extensive knowledge on how to create a well-functioning staffing organisation. They provide their expertise on various specific aspects, know the pros and cons of the different types

15 EMPLOYEES BRANDS TECHNOLOGY accessibility selection solutions NETWORK OF FLEX WORKERS reliable partner career support permanent job flexible job labour conditions development learning sustainable deployment hr expertise assessment selection and matching tools recruitment process online hr solutions hr consultancy hr management temping & secondment outsourcing payrolling MSP, RPO, HRO career support permanent placement CLIENT NETWORK solutions selection accessibility BRANCHES SHARED SERVICE CENTERS of contracts available, and are familiar with the possibilities and limitations of applicable laws and regulations. This helps our clients compose the most effective staffing base as possible within their own scope and needs, one that meets the highest demands in the field of quality and flexibility. This decreases and lowers the risks and costs associated with ineffectiveness and inflexibility. OVERVIEW & STRATEGY 013

16 revenue employees branches countries market segment strategy 1,354 direct 61, indirect 2,708 the Netherlands Belgium France General Staffing operational excellence Local brands ASA Call-IT USG Restart Vakcollege revenue employees branches countries market segment strategy 682 direct 22, indirect 1,662 Local brands Creyf s Technicum Express Medical Receptel the Netherlands Belgium Germany Specialist Staffing SMEs and specialist placements at large organisations product leadership

17 revenue 151 employees direct 1,875 indirect STAR BRANDS IN EUROPE branches 38 countries the Netherlands Belgium France Germany Austria Switzerland Luxembourg market segment Professionals Highly educated profiles in 7 specialist areas: engineering ICT legal finance HR science and marketing communication and sales strategy customer intimacy Start People Unique Secretary Plus USG Professionals revenue employees branches countries market segment strategy 67 direct 1, indirect 218 the Netherlands Belgium France Germany Austria Switzerland Italy Specialist Staffing High-value, innovative management support thought leadership OVERVIEW & STRATEGY 015

18 STAKEHOLDERS USG People aims to strike a good balance between the possibly divergent objectives of the company s various stakeholders, and well-balanced value creation in the short and long term. The board promotes the interests of all the company s stakeholders, as well as the interests of the general public. The basic principle in this respect is value creation for all stakeholders that is both economically sustainable and socially responsible. USG People organises stakeholder dialogue on a regular basis, to discuss a wide array of topics and developments in the job market with a diverse group of stakeholders. This dialogue ensures that USG People is able to respond even quicker and more effectively to needs and developments from the different stakeholders and if necessary adjust its business model accordingly. USG People is convinced that maintaining good relations with all the company s stakeholders is crucial as it means that all stakeholders can benefit from their involvement with our organisation in a fair way. The main USG People stakeholders are our employees, our business partners (clients, flex workers, suppliers, government), our financiers (shareholders, bond holders, banks) society and the environment. OUR FINANCIERS SOCIETY AND THE ENVIRONMENT OUR EMPLOYEES OUR BUSINESS PARTNERS

19 organisation-wide - business principles - onboarding - leadership development & talent management - performance management & succession management - talent retention - recruitment senior en middle management integrated programme structure for advancement and succession of senior and middle management OUR EMPLOYEES The success of USG People depends on the know-how, vitality and performance of our employees. USG People is about people. After all, the efforts and competencies of the individual employees as well as the connection between employees and the way that they work together, determine to large extent results, development and the growth of the business. It is in this belief that we constantly invest in being a good employer and learning, development, attrition, vitality and health play a large role in this. The Great Place to Work survey measures numerous aspects related to this. Investments in the field of learning and development are focused on training, talent management, management development and succession planning. USG People offers its employees a stimulating work environment and facilitates their development. This provides employees at all units and layers of the organisation with possibilities to develop their talent. Our human resources policy and processes are aimed at facilitating this as best as possible. SENIOR MANAGEMENT USG People applies a centralised HR policy to senior management throughout the organisation. Organisation-wide frameworks are in place at a tactical and organisational level, frameworks with regard to USG People s business principles and job-specific competencies, performance management and potential analyses that together are the basis for assessing employee potential and specifying learning and talent management opportunities, if desirable focused on a specific brand. OVERVIEW & STRATEGY 017

20 RECRUITMENT USG People s business principles and job-specific competencies serve as a guideline when recruiting new employees. USG People hires employees with the right skills and competencies who are a good fit in our culture. USG People aims to hire employees not only for a certain position but also for a career in our company. ONBOARDING It is a known fact that involved, passionate and motivated employees perform considerably better than those who are not. All new employees follow an onboarding programme focused largely on our ambitions, strategy, values and culture, the corporate policy of USG People and the brand-specific demands placed on the employee. LEADERSHIP AND TALENT MANAGEMENT USG People aims to achieve a leadership style based on trust and responsibility with scope for personal leadership, whereby the strategy is put into practice and leads to results. Performance management and potential analyses form the basis of USG People s leadership and talent programmes. USG People s talent development programmes are focused not only on strengthening the leadership but also on promoting personal development in the position and career. USG People implements an integrated programme approach for the development of senior and middle management in order to promote the advancement to key positions in senior management. USG People works closely with the Vlerick Business School in Antwerp on this management development programme. PERFORMANCE MANAGEMENT Each USG People employee participates in the performance management process according to a standard cycle. Specific competencies are defined for each position. Targets are subsequently set in consultation with the employee both with respect to competency development and business results. The results are then assessed and weighed at the end of the cycle. This weighting is a main source of input for the talent review process and is the basis of variable remuneration. TALENT RETENTION USG People has set up its talent review process in such a way that at least 80% of the senior management vacancies will ultimately be able to be filled from within the company s own talent pool. OUR BUSINESS PARTNERS USG People considers its business partners to be 'partners in development'. They contribute to our development and USG People contributes to their development. Our most involved business partners are our clients, our flex workers (in the widest sense, i.e. including self-employed people with no staff), our suppliers, our co-suppliers and different government institutions. In its relations with these partners USG People aims to achieve high-quality services while focusing on working together. CLIENTS In helping our clients arrange their human resources better, USG People provides the following benefits: access to a large network of candidates; recruitment and selection tools to help find the right candidate for vacancies; flexibility in the staff base, making the organisation more versatile; reduced risks by removing or lowering capacity problems; lower costs by adopting an efficient HR organisation; advice on diversifying the workplace and devising solutions to achieve an inclusive organisation, focusing on Social Return On Investment (SROI) and people further removed from the job market; vital and sustainably employable flex workers. USG People provides its clients with a wide range of solutions to set up their HR organisation effectively, for example in the field of: recruitment and selection HR advisory and management placement, deployment outsourcing payrolling MSP, RPO, HRO project sourcing outplacement career advice and support training FLEX WORKERS USG People provides flex workers with a link to the job market. As a partner we help people achieve their professional ambitions and shape their careers. We offer flex workers attractive opportunities to shape their careers under good conditions and to further their professional development. Our extensive network of clients and the development opportunities which USG People has access to offer attractive opportunities for people to achieve their full potential. USG People uses its years of expertise to help people do what they do best and develop their talent. This provides them

21 with versatile and sustainable opportunities for a satisfying job, successful career and developing their social status. USG People is focused on people. Helping more people find a job is not limited to people who can be placed relatively easily. USG People is also increasingly helping more vulnerable people and those with fewer opportunities in the job market. This category includes people with a limitation, younger and older people, the long-term unemployed and other people who are further removed from the job market. HISTORY OF ISSUES ORDINARY SHARES 2002: acquisition of Start 43 million 2005: acquisition of Solvus Resource Group 230 million 2010: post-acquisition of Allgeier 86 million CONVERTIBLE BOND : acquisition of Solvus Resource Group 115 million SUPPLIERS The products and services that are provided by our suppliers are resources that we use in our business activities and in the services we provide to our clients and candidates. The constant development of these products and services also contributes to the possibilities for USG People to further develop its organisation and services. A basic condition in relations with suppliers is that there is a good balance between quality, competitive pricing and sustainable product development. USG People s policy for suppliers is a policy in which partners should contribute to added value, continuity and the sustainability of our services. Open and honest communication about social and environmental aspects is important, while keeping an eye on the chain behind the product or service. Environmental aspects are about looking at the impact of the product, service or activity on the environment. Social aspects are about labour conditions and SROI. OTHER STAKEHOLDERS The government, unions and industry organisations are to a certain extent also stakeholders in USG People. These authorities influence the frameworks within the job market, each with its own interests. A well-functioning job market is in the interest of all these organisations. As an employer and an HR services provider USG People aims to be closely involved with these interest groups to also be able to perform its motor oil function with these stakeholders. OUR FINANCIERS To reimburse shareholders for their capital investment USG People aims to achieve a return that reflects their investment risk. USG People is committed to transparent communication towards investors, and always aims to provide a clear and up-todate picture of developments in the company. This helps investors make founded projections for expected risks and returns. Shareholder returns are visible in the form of a company dividend and through the development of the share price on the stock exchange. The latter is partly determined by investor supply and demand, which in turn is sometimes determined by market sentiments which USG People does not directly influence, such as global economic conditions. USG People is focused on maintaining continuity and the company s performance which determine value development in the longer term. In financial terms USG People aims to grow revenue and profit. In the short term this growth is influenced by the economic cycle during which periods of economic growth can alternate with periods of contraction. That is why growth objectives need to be considered as averages over the duration of the entire cycle. The strategic objective for profitability from 2014 is for EBITA to average 6% of revenue during the cycle. The aspired results also offer a framework for the expected returns on investment for our shareholders, striking a good balance with the benefits for the other USG People stakeholders. The targeted results provide scope for a consistent dividend distribution along with investments in further development and growth. The financial resources of USG People are provided by investors and financial institutions. USG People s shares have been listed on the stock exchange since 1997, giving the company not only financing from banks but also access to the capital market. This access to the capital market has increased USG People s possibilities to achieve its growth ambitions. By investing in the organic growth of the organisation and in acquisitions, USG People has grown into one of the main HR services providers in Europe. Since it became listed on the stock exchange USG People has only launched issues on the capital market to finance large acquisitions. OVERVIEW & STRATEGY 019

22 Development of dividend in euros optional dividend cash dividend stock dividend USG People invests a great deal of time in its relationship with shareholders and banks. These groups have to understand our business, believe in our vision for the future and strategy and above all have faith in our leadership. The longstanding relationship with our banks is a good example of our aim to build up successful, sustainable relationships with our stakeholders. Such sustainable relationships contribute to stability in the continuity of our financing, also in times when economic conditions are less favourable. To provide a good insight into the state of affairs and to increase faith in our company, USG People communicates clearly and regularly about market developments, operational and financial results and strategic progress. The board attaches a great deal of importance to being transparent to financiers and accessible to investors while at the same time paying a lot of attention to its relationships with investors and shareholders. also means dealing carefully with the natural resources we borrow. We take responsibility as much as we can because we realise that ecology is the basis of the economy and not the other way around. USG People fulfils an explicit, important role in society through its core activities. A well-functioning job market is a basic ingredient for economic and social prosperity. The focus of USG People s SR policy is on the factor people. It goes without saying that the company also pays due attention to how it deals with the environment. USG People has structured its SR policy around five spearheads: 1. being a good employer; 2. sound business practice; 3. diversity; 4. corporate citizenship; 5. environmental impact. Meetings and roadshows are organised to provide clear and proactive communication to investors, analysts and the financial media. Every quarter the publication of earnings is accompanied by a presentation for analysts and the media. The publications and presentations are also made available on the USG People website. The board members and representatives also take part in conferences and roadshows for investors and conference calls and meetings are held to maintain contact with shareholders. SOCIETY AND THE ENVIRONMENT As a company USG People is a part of a larger entity the society in which we live and the environment, the core of our existence. A well-functioning society is very important to organisations, and this USG People shapes being a good employer in a broad way. It wants to be an attractive and innovative employer for its direct and indirect employees. An employer that is accessible and that wants employees to do what they do best. A partner that tries to make all its employees sustainably employable. To do so we offer direct and indirect employees the facilities, conditions and support they need to excel. We define sound business practice as the creation of value with a sustainable balance for all stakeholders. Our employees must be able to develop in good working conditions. Financiers should achieve an attractive return on investment and our services should provide added value to our business partners. Furthermore we must act in a responsible and sustainable way in society and the environment in which we live.

23 In the context of diversity USG People takes into account all aspects of the way people differ from each other. This is a broad definition because USG People believes that people cannot be defined based on just one trait. It is important to USG People to see all the different aspects of a person. This includes both visible aspects, such as gender and ethnicity, and less visible aspects, such as ways of working and character traits. USG People is expressly focused on social involvement, i.e. the way that we give back to communities and society as a whole. USG People wants to contribute to a fair society, for example by making its staff, facilities and resources available without any personal or corporate gain. USG People mainly does this by focusing on areas in which it can make a difference: sharing its knowledge about the labour market, using its network more widely and promoting inclusiveness in the workplace. Everybody should be able to do their bit. It goes without saying that USG People is focused on people, but the company also pays attention to the environment, our habitat. Our branches use office space and we travel mainly by road. This results in CO 2 emissions. We believe it is our responsibility to take measures to reduce these emissions to a minimum. USG PEOPLE IS EXPRESSLY FOCUSED ON SOCIAL INVOLVEMENT, I.E. THE WAY THAT WE GIVE BACK TO COMMUNITIES AND SOCIETY AS A WHOLE OVERVIEW & STRATEGY 021

24 OUR SPECIALISATIONS LEND THEMSELVES WELL TO FURTHER DEVELOPMENT AND GROWTH MISSION AND VISION MISSION People make all the difference, each with their own unique talent and passion. It is our mission to help people find the job that suits them best while at the same time providing our clients with the best possible employees. As a partner in employment we are the link to the job market for an ever-growing number of people and organisations. We use the expertise we have gained over the years to offer a multitude of opportunities for employment, learning and careers. We use our know-how to help our clients connect with the best candidates which, in turn, allows them to operate as effectively as possible in the market with well-qualified employees. The market is constantly changing under the influence of economic developments, on the one hand, and the availability of qualified employees, on the other. We believe in talented people who can make a difference when they are employed in the right place. It is this combination that enables us to attract the best candidates and connect them to the right jobs. VISION Our aim is to hold a leading position in the markets we have selected. USG People s core activities provide a robust basis and unique starting point to support this objective. Our specialisations lend themselves well to further development and growth, both organic and through acquisitions. Using our know-how we expand on our leading positions in these specific markets and niche markets and create added value for all our stakeholders. Innovation and new ways of working help our organisation continue to develop and make it more sustainable.

25 BUSINESS PRINCIPLES INVOLVEMENT Involvement is a fundamental aspect of USG People s operations in various respects. Its value can largely be found in the employees, i.e. our human capital. Bringing these people together creates a maximum level of knowledge and expertise in our organisation, one of the most defining value drivers in the services we provide. The business principles form the core of the culture and identity that USG People pursues in fulfilling its mission and vision. USG People believes strongly in its segmented market approach and operates in the conviction that the responsibility it gives to its operating companies enables them to develop and grow successfully. The business principles form the shared values that are expressed throughout the organisation in our day-to-day activities. COMMITMENT TO RESULTS The creation of value at USG People is largely determined by its employees. They are the engine behind the results which the organisation achieves for all of its stakeholders. For USG People, having a result-oriented culture is the basis for good returns and continuity. Being committed to results is a key characteristic of our business as competition is fierce and a great deal is expected of everyone s individual performance. The commitment to results of our employees helps our clients succeed. Our daily focus is on our clients and we think in terms of opportunities and possibilities. Our starting point is that there is always room for improvement. Providing service is always our top priority with the needs of our clients being the primary consideration. Pro-activity, responsibility and drive therefore play an important part in our employees development, allowing us to create a winning mentality and foster dedication and focus in our work. PASSION The right match results in passionate employees and passionate employees find the right matches. The passion of our own employees shows clients and candidates that USG People makes the right matches between the ambitions and competencies of our candidates and the jobs offered by our clients this is an essential part of the services we provide. We are enterprising, hard-working professionals who are passionate about what we do. Passion is the energy that propels us. Passionate people dare to break down existing boundaries and put forth their ideas and proposals with conviction and enthusiasm. People who can back up and defend their ideas and choices, resulting in successful relationships with clients and candidates. This is the essence of the USG People culture. USG People s services are the motor oil in the job market. The essence of our existence is to bring together supply and demand in the job market in the best possible way this starts with building relationships with clients and candidates. PROFESSIONALISM Ensuring our employees have specific knowledge and expertise and can use it effectively is another defining factor that sets our services apart. Our employees set high standards for themselves and each other. Having a high level of specific knowledge and focusing on quality are major drivers within USG People. The organisation has a great capacity for learning and is able to adapt and implement new things quickly. This enables USG People to apply knowledge and insights directly to our own practice and this benefits the services we provide to our clients. USG People aims to apply new ways of working with efficient organisational structures. In such an environment the professionalism of employees is a precondition to be able to be a leader and to ensure the proper functioning of the organisation, with faith in the effectiveness of our employees. PROGRESS USG People aims to constantly increase its added value. The services sector is a sector in which innovation and technological applications also play a growing role in the ability of the sector to set itself apart. Applying new technologies contributes to the development of our added value and makes us more competitive. The drive of our employees to progress promotes and facilitates this development throughout the entire organisation. We believe that everything can be better, more effective and efficient. That is why our corporate culture is aimed at innovation and creativity. A culture of dialogue, experimenting and constant improvement. USG People is an organisation that is constantly looking for the best way to serve its clients, identifying opportunities to innovate and coming up with possibilities for new products and services. OVERVIEW & STRATEGY 023

26 STRATEGY USG People aims to grow by further developing its strong business units and by investing in expanding promising concepts. The activities of USG People are grouped into four distinct brands Start People, Unique, Secretary Plus and USG Professionals each focused on a specific market segment. The positioning is concentrated in four core countries, markets that offer fundamentally good opportunities for growth and attractive returns. Secretary Plus and USG Professionals have also been rolled out outside of the core areas in a few countries with an attractive market for their services. The basic condition for the strategy is sustainability, healthy growth while maintaining continuity, and an attractive return for all stakeholders. STRATEGIC KEYSTONES STRENGTHEN EXISTING LEADING POSITIONS EXPAND HIGH-VALUE GENERATING CONCEPTS INCREASE EXPOSURE IN GROWTH MARKETS FOCUSED CAPITAL ALLOCATION GENERAL STAFFING Start People SPECIALIST STAFFING Unique Secretary Plus PROFESSIONALS USG Professionals distinct brands with effective business models tailored concepts competitive landscape DISTINCTIVE STAR BRAND BUSINESS MODELS USG People has structured its business models in a distinct way for all its brands. For each brand the organisation, network, expertise, applied technology and services offered are focused on providing added value in the specific market segment in which it operates. Start People aims to provide solutions with large volumes, mainly to large organisations. It offers solutions for organising flexible labour in a cost-effective way and maintains an extensive network of candidates with a wide composition of profiles and a client network spread across all sectors. As an HR business partner that is focused on clients in the SME segment, Unique also provides specialist office placements with large organisations. The composition of Unique s network of candidates is diverse and the services are provided in every sector. Secretary Plus and USG Professionals are geared towards specific profiles. Secretary Plus offers HR solutions to support management and USG Professionals is focused on providing solutions for highly-educated profiles in the specialist fields of engineering, finance, HR, ICT, legal, marketing & communication and science.

27 TAILORED OPERATIONAL CONCEPTS More and more job seekers initially come into contact with the USG People operating companies via the internet, resulting in a strong increase in the importance of good online facilities and the need for operational concepts to also evolve. The internet is gradually taking over certain roles from the traditional network of physical branches. These days an effective network consists of a combination of physical branches and an internet platform. USG People is responding to the increased importance of the internet in a very active way by constantly developing the functionality of the online platform to actively recruit candidates. STRENGTHENING COMPETITIVE POSITION By applying tailor-made operational concepts each of the brands is receiving a targeted and distinctive position in its market segment. USG People is constantly investing in development its position by adapting the quality and effectiveness of its organisation and processes, e.g. by using new technology. These investments strengthen the competitive position of our organisation. Large steps have been taken in recent years which have improved the quality of the operations in important areas, on the one hand, and structurally lowered the level of operating expenses, on the other. LOCATION FACTORS GEOGRAPHIC POSITIONING USG People is the second largest HR services provider in the Netherlands and Belgium. All four USG People star brands are among the leading players in their market segment in these countries. USG People has a strong footprint in the neighbouring countries of France and Germany where the company provides its services to clients and candidates throughout the countries. USG People is active with its Start People and USG Professionals brands in France and with Unique, Secretary Plus and USG Professionals in Germany. The positioning in these four core countries forms a promising basis with sufficient scale and healthy growth and profit potential. The activities of Secretary Plus and USG Professionals are also located in Italy, Luxembourg, Austria and Switzerland. The countries offer good prospects for added value from the concepts provided by these brands. Competitive landscape The competitive landscape in each of the countries in which USG People operates differs. In the Netherlands, Belgium and France the top 3 players have a considerable market share, whereas the market in Germany is more fragmented. In the Netherlands and Belgium USG People has the second largest market share. In France and Germany USG People is a top 10 player with a market share of a few percent. The core countries in which USG People operates are characterised by the presence of both the global top 3 players and many small local players. In recent years there was an increase in number of self-employed people with no staff who are also active in the market as flexible workers. These countries are also characterised by the emergence of staffing services offered via the internet and social media, as well as services containing elements of HR services. In the past few years the number of HR services providers in our markets has risen, resulting in growth in the size of the total flexible staffing market. The entry of new, small local players has boosted the market share of this category. A larger and more fragmented market benefits USG People. The USG People operating companies can benefit from their focused positioning with their effective commercial organisation. NETHERLANDS BELGIUM Positioning of USG People in our markets In the countries where it has leading positions, USG People distinguishes itself from its competitors through its separate propositions in each market segment. This specialised approach results in clear recognisability for flex workers and maximum added value for its clients. It also leads to good value for money in both the volume segment and specialist placements. FRANCE GERMANY In countries where it does not have a leading position the focus of USG People s services and positioning is mainly on local companies, contrary to the large players that have a more widely spread scope. USG People sets itself apart from many small players on the market due in part to its reliability on quality and speed, its knowledge of the job market and laws and legislation, top 3 other USG People OVERVIEW & STRATEGY 025