Capital Markets Presentation 2019
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・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ASIA PACIFIC Toby Fowlston, CEO Asia Pacific EMEA and AMERICAS Antoine Morgaut, CEO EMEA and Americas RESOURCE SOLUTIONS Oliver Harris, CEO Resource Solutions INNOVATION Faye Walshe, Group Innovation Director 2 © Robert Walters plc Mission: to be the leading global specialist professional recruitment group Specialist professional Clerical recruitment Recruitment process recruitment Europe outsourcing 3 © Robert Walters plc Purpose Powering people and organisations to fulfil their unique potential Principles Innovation, teamwork, integrity and passion – these principles Robert are the foundation stones of the activity of all staff worldwide Walters Strategy Group The Group’s strategy for growth is centred on organic international expansion and discipline diversification; ensuring a balanced footprint covering mature and developing markets: ▪ International expansion – driving growth through expansion into new geographic locations ▪ Discipline diversification – driving growth through the building of scale in existing disciplines and the launch of new disciplines 4 © Robert Walters plc ROBERT WALTERS ALAN BANNATYNE Chief Executive Chief Financial Officer Officer 34 * 17 * TOBY FOWLSTON ANTOINE MORGAUT OLIVER HARRIS CEO CEO CEO Asia Pacific EMEA and Americas Resource Solutions 20 * 20 * 21 * *denotes length of tenure 5 © Robert Walters plc UK – 28% of Group NFI APAC – 37% of Group NFI 23% 22% 31% London 2014: 84% Japan 2014: 26% Regions 2014: 16% Australia 2014: 29% Hong Kong 2014: 12% 6% Singapore 2014: 11% New Zealand 2014: 7% 77% 8% Other 2014: 15% 21% 12% Europe – 27% of Group NFI Other International – 8% of Group NFI 6% 2% 2% 2% 7% 38% 6% USA 2014: 64% France 2014: 51% Middle East 2014: 7% Netherlands 2014: 17% 13% 15% South Africa 2014: 18% Belgium 2014: 14% Chile 2014: N/A Spain 2014: N/A Canada 2014: N/A Germany 2014: 8% Brazil 2014: 11% Other 2014: 5% 13% 73% 23% 6 © Robert Walters plc 4% 4% 4% 33% Commerce 4% IT Banking 4% Sales and Marketing HR Engineering 5% Support Other Legal Procurement 10% 13% 19% 7 © Robert Walters plc 450 400 350 300 250 £m 200 150 100 50 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 8 © Robert Walters plc 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2012 2013 2014 2015 2016 2017 2018 2019 9 © Robert Walters plc 25% 22% 20% 15% 12% 10% 10% 10% 5% 0% Hays Page Group Sthree Robert Walters 10 © Robert Walters plc 16.0 14.0 12.0 10.0 8.0 Pence 6.0 4.0 2.0 0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 11 © Robert Walters plc US average Asia average Europe average Page Group Hays UK average Robert Walters SThree Staffline 12 © Robert Walters plc © Robert Walters plc ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ Joined Managing Robert Director Managing Walters Director London & Director London London Guildford SEA 1997 1999 2003 2005 2011 2012 2013 2015 2019 Qualified Manager Managing Managing CEO Solicitor Banking Director Director Asia London Permanent Singapore Pacific London 15 © Robert Walters plc TOBY FOWLSTON CEO Asia Pacific 20* JAMES MATTHEW JEREMY NICHOLSON ERIC MARY KIMBERLYN LU MONTY SUJANANI GERRIT BENNETT SAMPSON ROB BRYSON MD, Australia & Country Manager, Country Manager, Country Manager, BOUCKAERT MD, Greater China MD, Northeast Asia MD, Singapore New Zealand Indonesia Malaysia Philippines MD, Thailand & Vietnam 16* 18* 13* 8* 11* 6* 7* 6* * *denotes length of tenure 16 © Robert Walters plc Asia Pacific Permanent/contract 24% recruitment Contract ▪ Net fee income: £36.4m (2018: £32.6m) 2018: 24% 76% Permanent 2018: 76% Locations: Australia New Zealand China Philippines Hong Kong South Korea India Singapore Indonesia Taiwan Japan Thailand Malaysia Vietnam Recruitment net fee income by discipline 8% 16% Commerce Finance 2018: 21% Average Tenure Banking Finance 2018: 13% 27% HR 2018: 5% 14% Sales and Marketing 2018: 16% 12 years 10 years 6 years Procurement 2018: 6% Directors Associate Managers Engineering 2018: 5% 5% Directors IT 2018: 26% 5% Other 2018: 9% 6% 19% 17 © Robert Walters plc Current Market Trends ▪ Strong financial services growth and demand for regulatory, compliance and risk professionals in Australia ▪ Thriving technology and transformation market across the region ▪ Investment in public sector has driven both permanent and contract hiring activity in Wellington ▪ Healthy government investment in infrastructure across the region – $80bn investment by the NSW government over the next four years, projects in Queensland reaching execution stage, and the Auckland City Rail project in New Zealand Key Market Strengths ▪ Market leader and dominant player in New Zealand ▪ Sustained growth in technology offering across the region – Wellington has 10+ consultants creating scale in a small market and Sydney has four specialist technology teams ▪ International career management programmes reduce the impact of candidate shortages and help bring experienced expats back to the local market ▪ Strong experience and length of tenure in banking, regulatory and compliance – scaling to a 20+ strong team in Sydney alone 18 © Robert Walters plc Growth Opportunities ▪ Continued focus on margin enhancement and developing SME market in Australia ▪ Recovery of the mining sector in Australia ▪ Booming technology and transformation sectors ▪ Infrastructure and engineering government investment Industry Award Winners: British & Irish Industry Award Winners: Recruitment Lions Sponsorship in New Zealand International, Australia Mobilising global talent to solve New Salary Survey: Top jobs with the Technology driving jobs growth across Salary Survey: Recruitment trends in Zealand’s skill shortages strongest wage growth New Zealand Australia 19 © Robert Walters plc Current Market Trends ▪ Strong demand for bilingual professionals with international experience ▪ Increasing number of international businesses setting up R&D centres in Taiwan ▪ Mainland China is now one of the leading global investors in digital technologies and e-commerce ▪ US-China trade war Key Market Strengths ▪ Strong market reputation and length of senior management tenure in Hong Kong ▪ Renowned for quality of service in Southern China – increasing exclusivity with clients ▪ Known as a prestigious brand in Taiwan ▪ Headcount growth in technology – three of top five clients now in Shenzhen 20 © Robert Walters plc Growth Opportunities ▪ Strong demand for professionals with the technical expertise to help companies implement digitalisation projects ▪ Shenzhen fast developing as a major tech hub for Chinese businesses – strong demand for skills in emerging technologies such as machine learning and AI (Internet Plus strategy) ▪ Taiwan government is implementing a Green Energy Industries and Technological Innovation plan to boost renewable energy development, driving demand for engineering and supply chain professionals Whitepaper: How to attract talent to grow your business internationally The impact of Brexit: bringing local The impact of the trade war on banking Thought Leadership events: Salary Survey: Recruitment trends professionals home professionals in China Recruitment trends 21 © Robert Walters plc Current Market Trends ▪ Acute bilingual professional talent shortage across all sectors and disciplines allowing further margin enhancement ▪ 20 – 25% salary inflation for hard to fill roles commonplace ▪ Skill shortages across specialised roles such as technology, digital, engineering, sales and marketing Key Market Strengths ▪ Record year in 2018 – Japan and Korea ▪ Dominant specialist recruitment consultancy across all markets ▪ Strong brand and media presence in Japan ▪ Ever-increasing specialisation within existing disciplines, such as technology ▪ Unrivalled database of bilingual professionals 22 © Robert Walters plc Growth Opportunities ▪ Demand strong from both MNCs and increasingly Japanese businesses looking to expand internationally – increased need for bilingual professionals ▪ Some softening of visa restrictions in Japan to aid inward talent flow ▪ Increased participation of women in the workforce in Japan ▪ Increase in foreign direct investment in Korea ▪ Opening of new contract teams – Osaka IT, Industrial and Healthcare Granted highest level of L-Boshi: 6 tips for women interested in moving recognition of female participation to foreign-affiliated companies in Japan Award winner: Ranked #16 as best place to Thought leadership: Salary Survey media Benefits of international talent, Japan Salary Survey: Salary and hiring work in Japan, mid-sized companies launch Times trends, Nikkei 23 © Robert Walters plc Current Market trends ▪ Digitalisation and transformation a major theme across the region – e.g. the success of four tech unicorns in Indonesia (GoJek, Traveloka, Tokopedia, Bukalapak) ▪ Greater injection of foreign investment, in particular from China, into the region ▪ Increased need for local talent with international experience ▪ Bilingual talent shortages, particularly within middle management Key Market Strengths ▪ International candidate management programmes and award-winning ‘return home campaigns’ ▪ Singapore – Balik Kampang ▪ Indonesia – Pulang Kampung ▪ Philippines – Bayan Balik ▪ Vietnam – Come Home Pho Good ▪ Strong brand name and presence ▪ Unrivalled footprint in emerging markets of Indonesia, Thailand, Vietnam and the Philippines (operating profit growth in excess of 50% yoy) ▪ Growth of technology teams – opening of team in Indonesia, increasing specialisation of teams in Philippines and Malaysia