HAYS FY16 Presentation › ~ › media › Files › H › Hays › results-centre … · Year ended 30 June 2016 2015 Change Basic earnings £121.1m £105.4m 15% Weighted average

PRELIMINARY RESULTSYear ended 30 June 2016

CAUTIONARY STATEMENT

This presentation contains certain statements that are neither reported financial results nor other historical information. The informationcontained in this presentation is not audited, is for personal use and informational purposes only and is not intended for distribution to, or useby, any person or entity in any jurisdiction in any country where such distribution or use would be contrary to law or regulation, or which wouldsubject any member of the Hays Group to any registration requirement. No representation or warranty, express or implied, is or will be madein relation to the accuracy, fairness or completeness of the information or opinions made in this presentation.

Statements in this presentation reflect the knowledge and information available at the time of its preparation. Certain statements included orincorporated by reference within this presentation may constitute “forward-looking statements” in respect of the Group’s operations,performance, prospects and/or financial condition. By their nature, forward-looking statements involve a number of risks, uncertainties andassumptions and actual results or events may differ materially from those expressed or implied by those statements. Accordingly, noassurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement.Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends oractivities will continue in the future. No responsibility or obligation is accepted to update or revise any forward-looking statement resulting fromnew information, future events or otherwise. Nothing in this presentation should be construed as a profit forecast.

This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares in theCompany, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract orcommitment or investment decision relating thereto, nor does it constitute a recommendation regarding the shares of the Company or anyinvitation or inducement to engage in investment activity under section 21 of the Financial Services and Markets Act 2000. Past performancecannot be relied upon as a guide to future performance. Liability arising from anything in this presentation shall be governed by English Law,and neither the Company nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise)for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.Nothing in this presentation shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

2

AGENDA

FINANCIAL REVIEW PAUL VENABLES, FINANCE DIRECTOR

OPERATING REVIEW ALISTAIR COX, CHIEF EXECUTIVE

STRATEGY UPDATE ALISTAIR COX, CHIEF EXECUTIVE

CURRENT TRADING ALISTAIR COX, CHIEF EXECUTIVE

APPENDICES

1

2

3

4

5

3

1. FINANCIAL REVIEWPAUL VENABLESGROUP FINANCE DIRECTOR

STRONG GROUP FINANCIAL PERFORMANCENet fees Operating profit**

£ 128.1m

£ 125.5m

£140.3m£ 724.9m

£ 734.0m

£ 719.0m

Basic earnings per share

5.47p

5.14p

7.44p

8.48p

6.13p

Net fees £810.3m

7% increase*

EPS8.48p

14% increase

Operating profit £181.0m

13% increase*

* LFL (‘like-for-like’) growth is organic growth at constant currency.** Continuing operations only.

£164.1m

£181.0m

FY 13

FY 14

FY 15

FY 16

FY 12

£810.3m

£ 764.2m

5

FY 13

FY 14

FY 15

FY 16

FY 12

FY 13

FY 14

FY 15

FY 16

FY 12

FULL YEAR DIVIDEND INCREASED BY 5% TO 2.90p, WITH C OVER OF 2.9X

STRONG GROUP FINANCIAL PERFORMANCE

Income statement**

Year ended 30 June 2016£m

2015£m

Actual growth

LFL* growth

Turnover 4,231.4 3,842.8 10% 12%

Net fees 810.3 764.2 6% 7%

Operating profit 181.0 164.1 10% 13%

Net finance cost (8.0) (8.0)

Profit before tax 173.0 156.1 11%

Tax (51.9) (50.7)

Profit after tax 121.1 105.4 15%

* LFL (‘like-for-like’) growth is organic growth at constant currency. ** Continuing operations only. 6

EXCHANGE RATE MOVEMENTS DECREASED NET FEES AND OPER ATING PROFIT BY £16.4 MILLION AND £4.5 MILLION RESPECTIVE LY

Net Fees £362.5m 15%*

Op Profit £78.7m 16%*

� Strong 13%* net fee growth in Germany to £175.1m

� Rest of division grew 17%*, with 11 countries growing by over 20%*, and delivered a material increase in profit of £5.7m*

STRONG PROFIT LEVERAGE; INCREASED CONVERSION RATE** TO 22 .3%

Asia Pacific

Performance by region

Continental Europe & RoW

22%of netfees

45% of netfees

Net Fees £176.1m 4%*


� 4%* growth in Australia & NZ led by excellent public sector up 18%*; operating profit up 8%*

� Solid performance in Asia despite tough banking markets.Net fees up 4%* and operating profit up 10%*

United Kingdom & Ireland

33% of netfees

Net Fees £271.7m 0%*


� Trading conditions became more challengingas theyear progressed

� Excellent operating leverage with profit up 14%* due to further productivity improvements and strong cost control

7* LFL (‘like-for-like’) growth is organic growth at constant currency. ** Represents the conversion of net fees into operating profit.

GOOD GROWTH IN BOTH PERM AND TEMP NET FEES

Permanent placement business

£340.4m(42% of net fees)

Temporary placement business

£469.9m(58% of net fees)

* Growth rates and margin change are for the year ended 30 June 2016 versus year ended 30 June 2015, on a like-for-like basis which is organic growth at constant currency.

Review of Group Permanent and Temporary Businesses*

** The underlying Temp gross margin is calculated as Temp net fees divided by Temp gross revenue and relates solely to Temp placements in which Hays generates net fees and specifically excludes transactions in which Hays acts as agent on behalf of workers supplied by third party agencies and arrangements where the Company provides major payrolling services.

49% Temp52% Temp

Split of net fees

FY 15FY 14

58% Temp59% Temp

FY 16

� Increase in volumes of 5% as client demand remained strong, especially in Germany

� Mix/hours worked increased 4%

� Underlying Temp margin** down by 20bps, primarily in ANZ

� Volumes increased by 6% driven by improved client and candidate confidence with significant growth in Europe

� Average Perm fee up 1% primarily as a result of salary inflation

7% net fee growth

5% volume increase

4% increase in mix/hours

(20) bps underlying margin decrease**

7% net fee growth

6% volume increase

1% average Perm fee increase

8

58% Temp

THE AUSTRALIAN DOLLAR AND EURO REMAIN SIGNIFICANT F X TRANSLATION SENSITIVITIES FOR THE GROUP

Year ended 30 June 2016 Average Closing

Australian $ 2.0392 1.7877

Euro € 1.3373 1.1989

Impact of a one cent change per annum Net fees Op pr ofit

Australian $ +/- £0.8m +/- £0.3m

Euro € +/- £2.5m +/- £0.8m

Key FX rates and sensitivities

� FX rates at 30 August 2016: £1 / AUD1.7421; £1 / €1.1744

� Retranslating the Group’s full year operating profit at current exchange rates would increase the actual result by c.£26m from £181.0m to c.£207m

9

17.5%19.4%

21.5% 22.3%

WE CONTINUE TO DRIVE MATERIAL PROFIT LEVERAGE AND S UPERIOR CONVERSION RATE

10

INCREMENTAL FEE TO PROFIT

DROP-THROUGH

(LFL)

� Long-term industry norm of 30%-40%* in previous growth cycles

� Drop-through* of 51% in FY14-FY16 � We expect a 40%-50%* drop-through over the

medium-term assuming a normal growth rate**� Current UK market uncertainty makes any

guidance difficult for FY17

10

EXPECT FURTHER INCREASE IN CONVERSION RATE IN THE MEDIUM-TERM TOWARDS 30%

* Percentage of incremental like-for-like net fees which drop-through to operating profit.** Defined as growth in all three major countries and growth of 5% or more like-for-like at Group level.

FY14

FY16

Medium-term guidance

GROUP CONVERSION

RATE

� Sector-leading conversion rate of 22.3%, up 480bps in the last three years, driven by:• Significant increase in UK profit• Strong trading in Europe (ex-Germany) leading

to strong increase in profit and leverageFY16FY15FY13C

onve

rsio

n R

ate

68%*

40%*

FY15 51%*

FY14

11

Taxation

Underlying effective tax rate 30.0% 32.5%

DECREASE IN ‘ETR’ TO 30.0% DRIVEN BY INCREASE IN UK PROFITS AND REDUCTION IN THE NUMBER OF COUNTRIES GENERATING TAX LOSSESFinance charge and taxation


2015£m

Finance charge

Net interest charge on debt (2.9) (4.1)

Interest unwind of discount on Acquisition Liability (0.9) (0.4)

IAS 19 pension charge (non-cash) (3.9) (3.0)

PPF levy (0.3) (0.5)

Net finance charge (8.0) (8.0)

� We expect the net finance charge for the year ending 30 June 2017 to be c.£7 million

� Material improvement in UK and smaller country profits reduces the Group effective tax rate to 30.0%

� The Group’s effective tax rate for the year to June 2017 will be driven by the mix of profits generated during the year. We currently expect the rate to be between 30% and 35%

14% INCREASE IN EARNINGS PER SHARE

Basic earnings per share (EPS)

* Number of shares used for basic EPS calculation purposes excludes shares held in Treasury.

Year ended 30 June 2016 2015 Change

Basic earnings £121.1m £105.4m 15%

Weighted average number of shares* 1,428.4m 1,416.4m

Basic earnings per share 8.48p 7.44p 14%

Memo

Shares in issue* at 30 June 2016 and 30 August 2016 1,433m

Basic EPS

1110

125.19p**

3.25p**H1 12 7.72pH2 12H1 13

5.19p5.47pFY 16 8.48p

6.13p7.44pFY 15

FY 14

12

GOOD UNDERLYING CASH PERFORMANCE

£181.0m

£32.6m

£(54.3)m

£(41.7)m £(3.6)m£114.0m

Operating profit to free cash flow conversion Uses of cash flow

Operating profit

Non-cash items

Working capital

Taxpaid

Interestpaid

Free cash flow

Operating cash flow £159.3m (FY15: £189.8m)

Cash from operations

H1 13 £162.2m

Capex guidance for FY17 is c. £15m and depreciation & amortisation guidance is c. £23m

£78.1m £97.3m £189.8mFY 15

FY 16

FY 14 £175.6m

£159.3m

Decreased net debt £67.5m

Capex £14.9m

Pensions £14.4m

13

Dividend £39.9m

FX translationgain*

£21.2m

Other (£1.5m)

£20m FY15 year-end unwind

* Arose primarily from the significant change in closing FX rates compared to the opening FX rates and the retranslation of cash flow movement in the year which are at average FX rates.

£m30 June

201630 June

2015

Goodwill & intangibles 242.0 228.2

Property, plant & equipment 19.8 15.6

Net deferred tax 23.9 36.4

Net working capital* 190.6 121.8

Derivative financial instruments 6.6 -

Tax liabilities (27.1) (19.5)

Retirement benefit obligations (14.3) (58.7)

Acquisition Liabilities (11.2) (8.6)

Provisions (9.3) (14.9)

421.0 300.3

Net cash/(debt) 36.8 (30.7)

Net assets 457.8 269.6

STRONGEST BALANCE SHEET FOR MANY YEARS

Balance sheet analysis

* Movement in net working capital in the balance sheet is calculated at closing exchange rates. For cash flow purposes, the movement in working capital is calculated at average exchange rates.

� Good underlying working capital management with debtor days at 37

� Increase due to expansion of Temp/Contracting business, FX and c.£20m reversal of PY favourable year-end phasing

� Increase due to FX impact on GoodwillGOODWILL & INTANGIBLES

NET WORKING CAPITAL

� Decrease primarily due to an increase in asset values, a decrease in the inflation rate, favourable experience changes following the 2015 actuarial revaluation and company contributions, partially offset by a decrease in the discount rate

RETIREMENT BENEFITS

14

15

WE HAVE ACHIEVED OUR LONG-STANDING GOAL OF ELIMINATING NET DEBT

** Covenant ratios are shown on a pro-forma basis for 12 months ended 30 June 2016.

Closing net cash/(net debt) £m

Free cash flow*

H1 13 £111.8m

£52.7m£62.2m

* Free cash flow is defined as cash flow before dividends, additional pension contributions, capital expenditure, acquisitions and exceptional items.

FY 16 £114.0m

FY 14FY 15 £141.0m

£108.4m

Jun 15Jun 12 Jun 16Jun 13 Jun 14

(132.9)

36.8

(30.7)

(105.2)

NET DEBT ELIMINATED� FY16 ended with net cash of £36.8m

£210M BANK FACILITY IN PLACE� expires April 2020

EBITDA / INTEREST RATIO: 60X**� debt covenant: > 4.0

NET DEBT / EBITDA RATIO: N/A� debt covenant: < 2.5

(62.7)

15

DIVIDEND INCREASED BY 5%, AS WE BUILD COVER TO 3x E ARNINGS

� Core dividend should be sustainable, progressive and appro priate� Target core dividend cover of 2.0x to 3.0x Group EP S� Increase of 5% in full year dividend to 2.90p per s hare� Cash cost of proposed FY16 dividend £41.7m, with co ver of 2.9x

EXCESS CASH RETURNS POLICY

FREE CASH FLOW PRIORITIES

CORE DIVIDEND POLICY

� We will build a net cash position of c.£50m� Assuming a positive outlook, any free cash flow gen erated over

and above this position will be distributed to shar eholders via special dividends, or other appropriate methods, an nually

� Fund Group investment and development� Maintain a strong balance sheet� Deliver a sustainable core dividend which is afford able and

appropriate

16

The final dividend will be paid, subject to shareho lder approval, on 11 November 2016 to shareholders on the register on 14 October 2016

17* LFL (‘like-for-like’) growth is organic growth at constant currency.

FINANCIAL SUMMARY

STRONG 13%* GROWTH IN OPERATING PROFIT

� Excellent UK operating leverage, driven by further productivity improvements and strong cost control

� Strong profit growth in Europe ex-Germany� Further increase in conversion rate to 22.3%

GOOD UNDERLYING CASH PERFORMANCE; NET DEBT ELIMINAT ED� 88% conversion of operating profit to operating cash flow� Year-end net cash position of £36.8m� Dividend increased by 5% to 2.90p as we build cover towards 3x

GOOD, BROAD-BASED NET FEE GROWTH OF 7%*

� Strong 15%* growth in CE&RoW, with Germany net fees up 13%* � Good growth in Australia and increasingly challenging market environment in the UK&I

17

2. OPERATING REVIEWALISTAIR COXCHIEF EXECUTIVE

WE CONTINUE TO MAKE SIGNIFICANT OPERATIONAL PROGRES S

2. Investing to build a leading business & drive growth

1. Delivering industry-leading financial performance

POSITION THE GROUP FOR LONG-TERM STRUCTURAL GROWTH OPPORTUNITIES, WHILST DRIVING OUR PROFITS ALONG THE WAY

3. Building further scale and diversificationacross the platform

� Sector-leading Conversion Rate up 80bps to 22.3%� Elimination of net debt: a significant milestone� Excellent UK profit performance, despite flat fees*

� Average consultant headcount up 6%� Further productivity improvement incl +2%* in the UK� Invested to grow headcount in 22 countries

We remain focussed on… Latest results…

* LFL (‘like-for-like’) growth represents organic growth at constant currency.

� Further roll-out of contracting model globally� Development of our US business continues to

proceed well

19

Net Fees £176.1m +4%

Op Profit £50.2m +8%

Conversion rate 28.5% 70bp

Consultants** 1,210 1%

GOOD GROWTH IN AUSTRALIA LED BY THE PUBLIC SECTOR; SOLID PERFORMANCE IN ASIA

Australia & NZ (net fees: £133.6m; operating profit : £44.0m)� Net fees up 4%*, operating profit up 8%*� Perm net fees up 5%*, Temp net fees up 4%*� Further solid growth in NSW & Victoria. ACT delivered

excellent growth of 21%, driven by public sector. Resources-driven states tough but sequentially stable in Q4

� Consultant headcount up 5% year-on-year to capitalise on continued market improvement

Asia (net fees: £42.5m; operating profit: £6.2m)� Net fees up 4%*, operating profit up 10%*� Record performance in China, Hong Kong & Japan� Solid overall performance despite more challenging conditions

in banking-focused markets of HK and Singapore� Consultant headcount down 6%, with investment in China

offset by targeted reductions elsewhere through H2

Headline APAC net fees

LFL* growth Year to 30 June 2016

* LFL (‘like-for-like’) growth represents organic growth at constant currency. Conversion rate represents percentage movement versus prior year. ** Consultant numbers represent closing numbers, and percentage changes are 30 June 2016 closing number versus 30 June 2015 closing number.

APAC

1011

£146m£210m

£242mFY 16 £176mFY 15FY 14

£179m£174m

48%Perm

52%Temp

22%of netfees

20

Germany (net fees: £175.1m)� Strong net fee growth of 13%*, profits up £4.8m* to £63.2m

� Strong growth in core IT & Engineering, representing 73% of our German business, with net fees up 12%*

� Faster growth in newer specialisms, with A&F up 16%*, and Perm up 24%*

� Significant consultant headcount investment up 11%� Back office automation project on track to complete in FY17

Rest of the division (net fees: £187.4m)

� Excellent net fee growth of 17%* and profit up £5.7m* :- 11 countries grew by 20%* or more, 15 all-time records

� France net fees up 17%* and profit up 18%*� Strong performance in the US� Brazil tough but stable; excellent performance in rest of LatAm

STRONG GROWTH IN GERMANY, EXCELLENT BROAD-BASED GROWTH IN THE REST OF THE DIVISION

Headline CE&RoW net fees


CE&RoW

1011

£168m£220m

£267mH1 13 £140m£134m£133mFY 14 £305m

FY 15FY 16

£314m£363m


38%Perm

62%Temp

45%of netfees

RoW

Net Fees £362.5m +15%


Conversion rate 21.7% (20)bp

Consultants** 3,034 12%

21

Net Fees £271.7m 0%


Conversion rate 19.2% +240bp

Consultants** 2,024 (8%)

EXCELLENT PROFIT LEVERAGE DESPITE SLOWING GROWTH & INCREASED UNCERTAINTY IN H2

Headline UK&I net fees


UK & IRELAND

1011

12

£244m£242m

£225m

Material improvement in operating profit

� Net fees flat* at £271.7m, operating profit increased 14%* via 2% productivity improvement and strong cost control

Private sector net fees up 2%*: 72% of UK&I net fee s Public sector net fees down 4%*: 28% of UK&I net fe es

� Increased concern over economic outlook negatively impacted market confidence, especially in H2

� Solid performances in IT, up 3%* and Office Support, up 6%*. Net fees in A&F and C&P were flat*

� London ex-City grew 11%, with mid-single digit growth in Scotland, the North and the Midlands. Our City business was down 3%, with a tough banking market

� Consultant headcount down 8%, mainly in H1, and emphasis on increasing consultant productivity

FY 16 £272m£272m

£246mFY 15FY 14


43%Perm

57%Temp

33%of net fees

22

2018 ASPIRATIONS: IN LINE WITH EXPECTATIONS AFTER 3 YEARS

Other Countries (£m) Operating Profit*

ASSUMED 5YR NET FEE CAGR: +8% to +12%

* Nothing in this presentation should be construed as a profit forecast. There is no certainty over timing or probability of achieving these objectives and they are dependent on a variety of assumptions and factors both Hays specific and otherwise. The 2018 Operating Profit ranges are after Group central cost allocation but before allocation of CERoW & Asia Pac divisional overheads (assumed to be £15m per annum) and assume constant rates of exchange as of 30 September 2013. All reported profit numbers are shown on a headline basis. ** Spot rate as at 30 August 2016.*** At original FX rates (30 September 2013).

FY 2013

FY 2016

1237

Australia & NZ (£m) Operating Profit*

60 70 80


FY 2013

FY 2016

FY18 OBJECTIVE***

4464

FY16 AT SPOT RATE** 53

UK & Ireland (£m) Operating Profit*

45 60 75


FY 2013

FY18 OBJECTIVE

FY 2016

652

Germany (£m) Operating Profit*


85 100 115

FY 2013

FY 2016 6358

25 35 45

23

FY18 OBJECTIVE***

FY16 AT SPOT RATE**

FY18 OBJECTIVE***

FY16 AT SPOT RATE** 4473

3. STRATEGY UPDATEALISTAIR COXCHIEF EXECUTIVE

THERE ARE 5 PILLARS WHICH UNDERPIN THE STRENGTH OF OUR BUSINESS MODELREMINDER OF OUR KEY STRATEGIC PRIORITIES

25

3. BUILD CRITICAL MASS AND SCALE ACROSS OUR GLOBAL PLATFORM

1. ASPIRATION TO MATERIALLY INCREASE AND DIVERSIFY G ROUP PROFITS

2. GENERATE AND DISTRIBUTE MEANINGFUL CASH RETURNS

POSITION THE GROUP FOR LONG-TERM STRUCTURAL GROWTH OPPORTUNITIES, WHILE DRIVING MATERIAL PROFITS AND CASH ALONG THE W AY

A PRIORITISED PIPELINE OF OPPORTUNITIES TO BUILD SCALE

26

GERMANY

UK

AUSTRALIA

CORE PROFIT DRIVERS

FUTURE MATERIAL PROFIT DRIVERS

MEANINGFUL CONTRIBUTORS

NETWORKCRITICAL

FRANCE

JAPAN

USA

CANADA

SWITZERLANDNEW ZEALANDBELGIUMCHINAMEXICO/BRAZIL

20 OTHER HAYSCOUNTRIES

ONGOING

0-5 YEARS

0-10 YEARS

£10m+ TARGET £5m+ TARGET

27

THE VEREDUS ACQUISITION HAS GIVEN US A MATERIAL PRE SENCE IN THE U.S., THE WORLD’S BIGGEST RECRUITMENT MARKET

Headcount up 13% including 13 international transfers into the US

IT Contracting introduced into legacy Hays offices, including NYC

Further investment into C&P business

New office opened in Denver

Record Temp levels and record Perm net fees in the year

Hays OneTouch system implemented

Accelerate expansion of IT specialism

Extend and invest in C&P business

Further investment to grow Perm

Explore opportunities for network expansion e.g. West Coast, new specialisms (e.g. A&F)

Continue to leverage cross-border account relationships into and out of the US

Ramp up recruitment/training resources

ACHIEVEMENTS TO DATE FUTURE FOCUS

NON-PERM BUSINESSES ARE REACHING CRITICAL MASS OUTS IDE OF OUR CORE MARKETS

28

Group ex-UK/Germany/ANZ*

Perm Temp & Contracting

78%66%

22%33%

2011 Today

32%

Canada

26%

Switzerland

Belgium

53%

Netherlands

USA

64%

France

65%

81%

Japan

17%

Temp/Contractor business as % of net fees

67%

* Percentage of net fees.

THERE ARE 5 PILLARS WHICH UNDERPIN THE STRENGTH OF OUR BUSINESS MODELTHE CONTRACTOR BUSINESS PRESENTS CLEAR STRUCTURAL G ROWTH OPPORTUNITIES & BUILDS FURTHER DEFENSIVENESS INTO O UR MODEL

29

Significant barriers to entry

Why Contracting is a key focus

Clear structural growth

Resilience to the cycle

Compliance/regulatory complexities

Scalable systems/processes: Payroll, credit control , etc.

Local candidate attraction networks/databases

Contracting becoming the “new perm” in many skilled j obs markets

More skilled candidates choosing to build careers o n a flexible, project basis

Legislative changes opening up market

Existing Hays expertise

Less volatile, greater reliability/visibility of ea rnings

World-class businesses in Germany to export best pr actice to new markets

Decades of expertise tough to replicate

1

2

3

4

30

UTILISING THE POWER OF DATA: BUILDING INTERNAL EXPE RTISE AND FORGING MUTUALLY BENEFICIAL RELATIONSHIPS GLOBALLY

• Teams established in Data Analytics & Digital Marketing

• Algorithms built to analyse multiple databases, both internal and external

• Significant insights available around candidate/client intentions to change jobs/recruit

• Enables faster delivery of high quality short-lists to clients and more focussed business development

• Enhanced client and candidate experience

Using data to increase productivity Building mutually beneficial data collaborations

SEEK is Australia’s largest online jobs marketplace

c.90% of Australia’s white collar population covered by the Hays / SEEK combined database

Hays consultants can access real time info on candidates registered on SEEK (subject to permissions)

Positive results in terms of improved productivity, job fill rates & candidate engagement

31

3. FURTHER PROGRESS AGAINST OUR STRATEGIC & OPERATI ONAL GOALS

1. STRONG OPERATING PROFIT PERFORMANCE, ELIMINATION OF GROUP NET DEBT

2. ON TRACK IN TERMS OF OUR 2018 PLAN, BUT WITH UK UNCERTAINTIES AHEAD

IDEALLY POSITIONED TO CAPITALISE ON GROWTH OPPORTUN ITIES & MANAGE THROUGH UNCERTAINTIES

A STRONG SET OF RESULTS; DELIVERING ON OUR PROMISES AND STRATEGICALLY ON-TRACK

4. CURRENT TRADINGALISTAIR COXCHIEF EXECUTIVE

SOLID GROWTH OVERALL WITH SUPPORTIVE CONDITIONS IN MOST MARKETS AND TOUGH BUT BROADLY STABLE TRADING CONDITIONS IN THE UKCurrent trading conditions by region

33

APAC

UK&I� UK market is tough but broadly sequentially stable� We saw a step down in Perm activity immediately aft er the EU Referendum, but

since then activity levels have been broadly stable� In Temp, activity levels have remained broadly at p re-referendum levels� Too early to determine if these trends will continu e beyond the summer period

� Continue to see good levels of growth in Australia overall, as market confidence continues to recover gradually

� Strong growth in public sector and solid growth in private sector� In Asia, banking-exposed markets remain subdued

� Growth remains strong overall, albeit against tough comparators� In Germany and France we continue to see strong gro wth and in the rest of

Europe and the Americas, conditions remain strong i n most markets� To date, we have seen no evidence of contagion into Europe following the

outcome of the EU Referendum

CE & RoW

5. QUESTIONS & ANSWERS

6. APPENDICIES

36

1.0FY 2016 RESULTS SUPPORTING INFORMATION


2015£m

LFL growth*

Germany 63.2 59.5 8%

Rest of CE&RoW (23 countries) 28.3 21.5 29%

CE&RoW Central Costs (12.8) (12.3) 4%

CE&RoW Operating Profit 78.7 68.7 16%

MATERIAL INCREASE IN CE&RoW (EX-GERMANY) PROFITABIL ITY

* LFL (‘like-for-like’) growth represents organic growth at constant currency.

Operating profit split in Continental Europe & RoW – HEADLINE

� Germany delivered operating profit LFL growth of 8%* despite significant investment in headcount and maintained an excellent conversion rate of 36%

� An excellent performance elsewhere in CE&RoW where market conditions were strong and we invested in headcount while controlling our cost base

37

LIKE-FOR-LIKE SUMMARY

* LFL (‘like-for-like’) growth is organic growth at constant currency.


Acquisition£m

FX impact£m

Organic£m

2016£m

LFL* growth

Net fees

Asia Pacific 178.5 - (9.4) 7.0 176.1 4%

Continental Europe & RoW 313.8 9.7 (6.9) 45.9 362.5 15%

United Kingdom & Ireland 271.9 - (0.1) (0.1) 271.7 0%

764.2 9.7 (16.4) 52.8 810.3 7%

Operating profit

Asia Pacific 49.7 - (3.4) 3.9 50.2 8%

Continental Europe & RoW 68.7 0.5 (1.1) 10.6 78.7 16%

United Kingdom & Ireland 45.7 - - 6.4 52.1 14%

164.1 0.5 (4.5) 20.9 181.0 13%

38

H2 FY16 v H1 FY16: ANALYSIS BY DIVISION

* LFL (‘like-for-like’) growth is organic growth at constant currency.Note: H1 16 is the period from 1 July 2015 to 31 December 2015. H2 16 is the period from 1 January 2016 to 30 June 2016.

Net fee growth (LFL*) versus same period last year

Q1 16 Q2 16 H1 16 Q3 16 Q4 16 H2 16 FY 16

Asia Pacific 6% 1% 4% 3% 4% 4% 4%

Continental Europe & RoW 11% 16% 14% 11% 21% 16% 15%

United Kingdom & Ireland 6% 1% 3% (3)% (4)% (3)% 0%

Operating profit growth (LFL*)versus same period last year

Asia Pacific 6% 10% 8%

Continental Europe & RoW 17% 14% 16%

United Kingdom & Ireland 20% 9% 14%

Conversion rate (%)*operating profit as % of net fees

Asia Pacific 27.5% 29.4% 28.5%

Continental Europe & RoW 21.8% 21.6% 21.7%

United Kingdom & Ireland 18.1% 20.3% 19.2%

39

Relative size Country / sub region(ranked by net fees)

Net Fees Net fee growth(LFL*)

# of offices # of consultants

Germany £175.1m 13% 17 1,213

France £41.7m 17% 17 327

Benelux £27.9m 24% 12 235

USA £25.8m 15% 13 167

Switzerland £18.3m 19% 4 114

Canada £14.0m 0% 8 112

Other** (16 countries) £59.7m 19% 32 866

103 3,034

CONTINENTAL EUROPE & ROW PERFORMANCE BY COUNTRY

* Percentages represent LFL (‘like-for-like’) growth which is organic growth at constant currency for 12m ended 30 June 2016 versus 12m ended 30 June 2015. ** Other represents financial results for remaining CE&RoW countries.Note: Pie charts represent net fees by country / sub region. 40

CONSULTANT HEADCOUNT

Change in headcount As at June2016

As at Dec

2015

Changesince

Dec 2015

As at June2015

Changesince

June 2015

Asia Pacific 1,210 1,232 (2%) 1,195 1%

Continental Europe & RoW* 3,034 3,015 1% 2,715 12%

United Kingdom & Ireland 2,024 2,207 (8%) 2,203 (8%)

Group 6,268 6,454 (3%) 6,113 3%

41

* Consultant headcount at June 2015 has been restated to include 144 resourcers previously not reported as consultants in Germany and Switzerland.

OFFICE NETWORK

* Offices opened is shown net of closed and merged offices.

Number of offices 30 June 2015 Opened/(Closed)*

30 Jun 2016

Asia Pacific 45 4 49

Continental Europe & RoW 96 7 103

United Kingdom & Ireland 99 1 100

Total 240 12 252

42

TRADING DAYS

Number of trading days* H1 H2 Year

Year ended 30 June 2015 129 124 253

Year ended 30 June 2016 129 125 254

Year ending 30 June 2017 128 125 253

* UK only. 43

THE SCALE AND SCOPE OF OUR BUSINESS IS UNIQUE

LINKEDIN FOLLOWERS

HITS ON HAYS WEBSITES 1.4 million34 million

CV’S RECEIVEDINTERVIEWS PER MONTH6 million >50,000

PERM PLACEMENTS67,000TEMP ASSIGNMENTS220,000

WORLDWIDE IN FY16 WE FILLED OVER 1,000 JOBS EVERY W ORKING DAY

FY16 STATISTICS

44

45

2.0THE HAYS BUSINESS MODEL & STRATEGY FOR GROWTH

HAYS IS A LEADING GLOBAL EXPERT IN QUALIFIED, PROFE SSIONAL AND SKILLED RECRUITMENT

GENERALIST RECRUITMENT (mostly blue collar)

EXECUTIVE SEARCH (head hunting)

PROFESSIONAL RECRUITMENT (mostly white collar)

� Contingent fee model� Focus on high-skilled roles� Clear structural growth markets

46

A PROVEN TRACK RECORD OF ORGANIC GROWTH

New country & specialism entries

33 COUNTRIES 20 SPECIALISMS

Pre 1990

Early 1990s

Late 1990s

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Brazil

China, HK

Organic Acquisition

A&F C&P

FranceCzech Re.

Netherlands

Portugal

Canada

Belgium

Germany Switzerland

Spain

Austria

Sweden Poland

Australia

N.Zealand

Singapore

Italy UAELuxembourg

UK

Key:

Legal

Banking Fin Services

EducationContact Ce.

Engineering

HR

Sales & Ma.

Executive

Retail

Healthcare

Purchasing

IT

Japan Pharma

Energy O&G

Hungary Denmark

Ireland

India Russia

Mining

Mexico USA

Colombia

Chile Malaysia

Office Pros

Telecoms

47

Top 3 position Top 5 positionMarket Leader Other

OUR WORLDWIDE PLATFORM PROVIDES A PIPELINE OF FUTUR E GROWTH OPPORTUNITIES & LEADERSHIP IN ALL CORE MARKETS

Australia (#1)BelgiumBrazilChileFranceGermany (#1)Hong KongHungaryIreland (#1)ItalyJapan (#1)

MalaysiaNew Zealand (#1)Poland (#1)Portugal (#1)RussiaSingapore (#1)SpainSwedenSwitzerlandUK (#1)

AustriaChinaColombiaCzech RepDenmark

LuxembourgMexicoNetherlandsUAE

Hays market positioning*

TOP 3

TOP 5

* Market position is based on Hays estimates. List of countries only includes those with top 5 market positions and excludes newly opened countries.

The largest international specialist recruitment bu siness in the world

48

OUR STRATEGIC FOCUS IS ON BUILDING SCALE IN KEY MAR KETS

� Market leaders in 9 countries including: UK, Australia, Germany

� Additionally, top 3 market position in 12 countries

� Opened in 5 new countries since 2010: US, Mexico, Colombia, Chile, Malaysia

� Leading market positions across professional and technical areas

� Long established market presence across all key specialist areas

� Balance of specialisms leveraged to different stages of the economic cycle

HAYS COUNTRIES HAYS SPECIALISMS

33

2002

2016

11

20

2002

2016

10

49

MARKET LEADING BREADTH AND DEPTH OF PLATFORMDivisional operating review

UK

Irel

and

Aus

tral

ia

New

Zea

land

Hon

g K

ong

Chi

na

Sin

gapo

re

Japa

n

Mal

aysi

a

Ger

man

y

Fra

nce

Bel

gium

Net

herla

nds

Luxe

mbo

urg

Spa

in

Por

tuga

l

Cze

ch R

ep

Hun

gary

Sw

itzer

land

Aus

tria

Sw

eden

Den

mar

k

Pol

and

UA

E

Italy

Bra

zil

Indi

a

Rus

sia

Mex

ico

Col

ombi

a

Chi

le

Can

ada

US

A

Accountancy & FinanceConstruction & PropertyInformation TechnologyLife SciencesSales & MarketingBanking & Capital MarketsContact CentresEducationEngineering & ManufacturingExecutiveFinancial ServicesHealth & Social CareHuman ResourcesLegalOffice ProfessionalsEnergy, Oil & GasPurchasingRetailResources & MiningTelecoms

TotalOffices* 95 5 33 4 1 4 1 4 2 17 17 8 3 1 5 2 1 1 4 1 1 1 6 1 4 3 1 2 1 1 1 8 13 252

33 COUNTRIES20 SPECIALISMS

* Office numbers as at June 2016. 50

… and leverages the Group to economic improvement

THE STRENGTH OF OUR MODEL IS KEY TO DELIVERING FOR CLIENTS AND DRIVING FINANCIAL PERFORMANCE THROUGH THE CYCLE

… a resilient financial performance in tougher economic times…

…delivers the best solutions for clients & candidates…

… the best people, sector leading technologyand a world class brand…

Unrivalled scale, balance and diversity…

51

� Exposure to structural growth and more mature areas

� Long-established across technical, white-collar spe cialisms

� Unmatched breadth and scale of operations globally

� Global connectedness of operations is key

� 33 countries around the world, up from 11 in 2002

� Rapid start-up phase now largely completed

� 20 specialist areas across professional / technical skills

� Focus on building scale in key specialisms in core markets

� Temporary / Contracting / Permanent

� Rolling out IT Contractor model to selected markets

THERE ARE 5 PILLARS WHICH UNDERPIN THE STRENGTH OF OUR BUSINESS MODEL

1. BALANCE

2. SCALE

3. GEOGRAPHIC DIVERSIFICATION

4. SECTORAL DIVERSIFICATION

5. CONTRACT FORM DIVERSIFICATION

BALANCE, SCALE AND DIVERSIFICATION ARE WHAT SETS TH E HAYS BUSINESS MODEL APART AND DRIVES OUTPERFORMANCE

52

LEVERAGING OUR BEST-IN-CLASS TECHNOLOGY PLATFORM AN D BRAND

OPERATIONAL EFFECTIVENESS

BEST CUSTOMER SERVICE

DIGITALLY-ENABLED CONSULTANTS

1

2

3

OP

ER

ATIO

NA

L E

FF

EC

TIV

EN

ES

S

THE BEST CANDIDATES TO CLIENTS, FASTER THAN ANYONE ELSE

CROSS SYSTEM AWARENESS

SEARCH CAPABILITIES

GLOBAL DIGITAL PLATFORM

OPERATIONAL INTELLIGENCE

MANAGEMENT INFORMATION

AUTOMATED ATS VMS INTERFACES

DIGITAL CV PARSING

AUTOMATIC JOB BOARD

POSTINGS

Global Database

Internally integrated & externally connected

Delivering outcomes to drive growth

53

~75%83% ~85%

22% 20%

58%

~25% 17%~15%

45%

15%

42%33%

15%

8%

8%

34%

A BALANCED PORTFOLIO

Net Fees by type*

* Indicative purposes only based on information for the 12 months ended June 2016.

** Major specialisms within Other include: Banking Related (7%), Life Sciences (5%), Sales & Marketing (4%) and Education (3%).

Spot

Recruitment contracts

Public sector

Private sector

Top 40

30,000 customers

Other**

Accountancy & Finance

Construction & Property

IT

Temp

Perm

APAC

CE&RoW

UK&I

Office Sup.

Engineering

54

HK, Singapore (2%)

* Market penetration represents the percentage of skilled and professional recruitment that is outsourced, based on Hays’ management estimates.

Net fees by market maturity* (percentages in table show % of Group net fees in FY16)

ESTABLISHED:>70% penetration36% of Group net fees+1% LFL net fee growth

DEVELOPING:>30-70% penetration

24% of Group net fees+7% LFL net fee growth

EMBRYONIC: <10% penetration5% of Group net fees+10% LFL net fee growth

EMERGING:10-30% penetration35% of Group net fees

+14% LFL net fee growth

UK & Ireland (33%)

Australia & NZ (16%) France, Netherlands,

Canada (8%)

Japan, China, Malaysia (3%)

Latin America, Russia, India (2%)

Germany (22%)

Other CE&RoW (11%)

BALANCED BUSINESS MODEL: WELL DIVERSIFIED IN STRUCTURAL AND CYCLICAL MARKETS

USA (3%)

55

38%

54%

8%

Net fees FY16

£810.3m

Information TechnologyLife Sciences

Sales & Marketing

Candidate shortagesClients investing

Continued investmentDrive growth

STRONG: GROWTH >10%* TOUGH: DECLINE <0%*

BankingResources & Mining

Short term challengesLong term opportunity

Defend market position Reduce costs

SOLID / GOOD:GROWTH 0-10%*

Accountancy& FinanceConstruction

& PropertyEngineering

Mixed conditions but opportunities

available

Selective investmentMaintain position

* Represents LFL (‘like-for-like’) growth rates in the 12 months to 30 June 2016. Listed specialisms are examples only and are not exhaustive.

BALANCED BUSINESS MODEL: SECTOR DIVERSITY EXPOSES U S TO GROWTH OPPORTUNITIES AND PROTECTS OUR BUSINESS

56

Asia

Hays FY16 Net Fees by geography

0% 100%Group net fees

Temp Perm

Rest of CE&RoW UK & Ireland Australia & New Zealand Germany

89%62%

43% 35%

12%

88%

65%57%

38%11%

BALANCED BUSINESS MODEL: SECTOR-LEADING EXPOSURE TO KEY TEMP/CONTRACTOR MARKETS, PERM-GEARED IN HIGH GROWTH AREAS

57

58

3.0DIVISIONAL PROFILES

#1 market position*

Net fees by specialism

Temp : Perm

Private : Public sector

Net fees by countryNet fees: £176.1m

Operating profit: £50.2m

Conversion rate: 28.5%

Countries: 7

Consultants: 1,210

Offices: 49

Note: Private:Public sector and Temp:Perm split is based on net fees for 12 months ended 30 June 2016.* Market position is based on Hays estimates.

Diverse sector exposure Asia structural opportunity

Net fees by specialism Net fees by country

ASIA PACIFIC REPRESENTS 22% OF GROUP NET FEES WITH AUSTRALIA REPRESENTING 69% OF DIVISIONAL NET FEES

52% 48%

74% 26%

21%

14%

11%11%

11%

6%

4%

22%

Const. & Property Account. & Finance

Office Support IT

Banking Sales & Marketing

HR Other

69%

9%

7%6%

Australia Japan

New Zealand China

Singapore (4%) Hong Kong (4%)

Malaysia (1%)

59

Net fees: £362.5m



Countries: 24

Consultants: 3,034

Offices: 103

Note: Private:Public sector and Temp:Perm split is based on net fees for 12 months ended 30 June 2016.

Structurally developing markets Focused on core specialisms Broad coverage

CONTINENTAL EUROPE & RoW REPRESENTS 45% OF GROUP NE T FEES AND 43% OF GROUP PROFITS

Temp : Perm


62% 38%

Net fees by specialism Net fees by countryNet fees by specialism Net fees by country

97% 3%

32%

18%12%

9%

7%4%

18%

IT EngineeringAccount. & Finance Const. & PropertyLife Sciences Sales & MarketingOther

48%

11%8%

7%

5%4%

17%

Germany France

Benelux USA

Switzerland Canada

Other

60

Net fees by specialism Net fees by regionNet fees: £271.7m



Consultants: 2,024

Offices: 100

Note: Private:Public sector and Temp:Perm split is based on net fees for 12 months ended 30 June 2016.* Market position is based on Hays estimates.

#1 market position* Diverse sector exposure Nationwide coverage

UK & IRELAND REPRESENTS 33% OF GROUP NET FEES

Temp : Perm


57% 43%

72% 28%

21%

19%

11%10%9%

9%

21%

Account. & Finance Const. & Property

Office Support Education

IT Banking & Fin. Serv.

Other

35%

25%

17%

11%

9%3%

London North & Scotland

Midlands & E.Anglia Home Counties

South West & Wales Ireland

61

PROFILE OF HAYS AUSTRALIA & NEW ZEALAND

TEMP 65% PERM 35%

16% GROUP NET FEES

812 CONSULTANTS

37 OFFICES

Net fees by specialism Net fees by region

Construction & Property

Acc. & Finance

Office Support IT Other

28% 14% 13% 10% 6% 25%

£134m £44m 33%

NSW Victoria ACT

Q’la

nd Other

29% 22% 11% 10% 9% 19%

NZ

Note: All data is presented as of 30 June 2016. * Includes Oil & Gas and Energy.

NET FEES EBIT CONV. RATE

Year ended 30 June 2016

62

Ban

king

Res

&

Min

ing*

4%

HISTORIC PROFILE OF HAYS AUSTRALIA & NEW ZEALAND

44444564

8772

4960134139138

179210

182129135

812773704722843815706658

FY09 FY16FY15FY14FY13FY12FY11FY10 FY09 FY16FY15FY14FY13FY12FY11FY10

FY09 FY16FY15FY14FY13FY12FY11FY10FY09 FY16FY15FY14FY13FY12FY11FY10

3332333641403844

FY consultant headcount Historic Conversion Rates

Historic headline net fees (£M) Historic headline operating profit (£M)

Note: Historic net fees and historic operating profit shown on a headline basis. For local currency data, please see slide 67. 63

PROFILE OF HAYS GERMANY

TEMP 88% PERM 12%

22% GROUP NET FEES

1,213 CONSULTANTS

17 OFFICES

Net fees by specialism Net fees by contract type

Note: All data is presented as of 30 June 2016.

IT Engineering

42% 31% 11%

Contracting Temp Perm

64% 24% 12%

£175m £63m 36%NET FEES EBIT CONV. RATE

Year ended 30 June 2016

64

Other Acc. & Finance

16%

HISTORIC PROFILE OF HAYS GERMANY

FY consultant headcount* Historic Conversion Rates

Historic headline net fees (£M) Historic headline operating profit (£M)

175158164150136

1068088

636062585238

2636

1,213942828804702

606452437

3638383838363341

Note: Historic net fees and historic operating profit shown on a headline basis. For local currency data, please see slide 67.* Consultant headcount has been restated to include resourcers previously not reported as consultants.

65



HISTORIC PROFILE OF HAYS UK & IRELAND

524626

6(7)411

64246222225242244

331272

2,0242,2032,1571,9291,9342,1582,2722,315 191711

3(3)15

19

FY consultant headcount Historic Conversion Rates

Historic headline net fees (£M) Historic headline operating profit (£M)££

272

Note: Historic net fees and historic operating profit shown on a headline basis. 66



LOCAL CURRENCY – HAYS NET FEES AND OPERATING PROFIT

90838098134116

88130273263245274

323293232

293

234208197182161124

91103

8579747062

4430

42

Australia & New ZealandHistoric net fees (AUDm)

Australia & New ZealandHistoric operating profit (AUDm)

GermanyHistoric net fees (EURm)

GermanyHistoric operating profit (EURm)

67



FURTHER INFORMATION

HEAD OF INVESTOR RELATIONS DAVID [email protected]+44 207 391 6613

For more information about the Group: haysplc.com/investors or @haysplcIR

Documents

HAYS FY16 Presentation › ~ › media › Files › H › Hays › results-centre … · Year ended 30 June 2016 2015 Change Basic earnings £121.1m £105.4m 15% Weighted average