Where there’s talent, there’s Korn Ferry. 2015 Annual Report The right TALENT Aligned to the business STRATEGY Ignites UNIMAGINABLE SUCCESS for our clients 1 Maximizing leadership and talent to create true competitive advantage is a complex business. At Korn Ferry, it is our business. And while the breadth and depth of our expertise is vast, there is one constant. Whether it’s through attraction, development or engagement, we empower organizations to activate and accelerate their strategy through their people. Dear stockholders In today’s complex, globalized business world, our clients IN FISCAL 2015, KORN FERRY: are finding that growth is still incredibly difficult to sustain. To be relevant and meaningful to customers and clients, • Achieved record fiscal year fee revenue CEOs are increasingly demanding an engaged, motivated of $1.028 billion, up almost 10% year-over-year and productive workforce that can innovate, is highly at constant currency agile and can drive growth across borders. • Reported $1.76 of diluted earnings per share, For Korn Ferry, the opportunity this presents is enormous. up 19% year-over-year CEOs have long claimed that people are their most • Maintained our No. 1 position among the competitive asset – but all too often, that’s been just talk. “Big 5” global search firms Today, leaders who don’t truly embrace this view and are unable to reward and inspire their people to innovate • Generated 42% of our revenue outside and disrupt, will be at a distinct disadvantage. of Executive Recruitment Through advances in technology, joined with data and • Integrated all of our developed and acquired decades of statistically validated research, our firm can now intellectual property into a single assessment measure and assess which leaders will likely be successful and development platform – Korn Ferry’s in any given role, organization, industry and geography. Four Dimensions of Leadership & Talent What was once simple motivational talk is now proven science. For CEOs, leadership teams and boards of I recently asked Korn Ferry founders Richard Ferry and directors who want to use talent as a competitive asset Lester Korn if they ever dreamed that the enterprise that to drive sustained growth, Korn Ferry can help. Without bears their names and was founded nearly five decades question, our transformation is real. ago would have the size, scale and reach it has today. Lester, with a sheepish smile, didn’t hesitate in answering: Our outcomes-oriented approach starts with the firm’s “Yes.” iconic Executive Recruitment offering, which was up almost 8% at constant currency for the fiscal year. Our This fiscal year, we celebrate reaching the major milestone work and relationships at the highest echelons of global of becoming a $1 billion company, thanks to the expansion organizations have never been more profound. Over the of our differentiating talent management offerings. fiscal year our firm achieved more marquee Executive The size of the business and our pace of growth, while Recruitment placements than in any previous year in the admirable, are not what’s most important. That distinction firm’s history – while also opening doors for our broader belongs to all of our colleagues across the globe working talent management offerings. together, rowing in unison to achieve a common purpose – Our Leadership and Talent Consulting business, up almost delivering unimaginable outcomes for our clients through 7% at constant currency for the fiscal year, comprised 26% people strategies. of our revenue. Through our diversified talent management Today, where there’s talent, there’s Korn Ferry – we are offerings, our LTC colleagues are working with CEOs and truly ubiquitous. To think about the lives we have changed leadership teams to activate and accelerate their strategy is humbling. During the fiscal year, Korn Ferry placed nearly through people – transforming their companies in 35,000 professionals in a new job – that’s one every three the process. and a half minutes. Our Futurestep business, up 22% for the fiscal year at For decades, clients have trusted us to recruit leaders constant currency, has been a shining star for us, with 10 throughout the world. Today, we are their partner in consecutive quarters of growth. Futurestep also secured a designing and delivering people strategies that help them record level of new RPO assignments during the fiscal year achieve their strategic goals. As a result of our efforts, with significant global brands. Its business accounted for 42% of our business is now generated from broader talent 16% of our overall revenue mix during the fiscal year. management-focused solutions outside of our flagship By embracing innovation and integration across all lines Executive Recruitment offering. of business, we’re making our brand even more elastic 3 Financial highlights Share price Total fee revenue in millions $1,028.2 $31.53 $29.05 $960.3 $812.8 $16.55 CAGR = 38.03% April 30, April 30, April 30, 2013 2014 2015 2013 2014 2015 as we build upon Korn Ferry being a knowledge- I would also like to thank our board of directors and based firm. At the forefront of our strategy is our leadership team for their unwavering quest to drive intellectual property – our vast library of proprietary tools positive results for our clients and stockholders. and techniques that underpin all of our services. We have Quarter over quarter, leading companies are increasingly amassed a profound depth of knowledge about our turning to Korn Ferry to address multiple leadership clients’ people – their strengths and areas to develop, as and talent needs. And, with every success story, we will well as how they stack up against their competition. continue to propel Korn Ferry and the talent industry With continued investments in the Korn Ferry Institute, ahead in the years to come. and research around key areas such as talent analytics, Regards, learning and enterprise agility, high potential identification and development, we will help drive growth at the global Gary D. Burnison organizations we serve. I would like to thank our more than 3,600 colleagues around the globe who have accomplished all of this through their relentless passion, diverse backgrounds and unique perspectives and talents. At Korn Ferry we value performance over pedigree, and pride ourselves as a lifetime destination where opportunity is open and available to anyone. Board of directors Top row Gary D. Burnison Jerry Leamon (l to r): Edward D. Miller; Chief Executive Officer Former Global Managing Director Gary D. Burnison; George T. Shaheen; Deloitte Jerry Leamon George T. Shaheen Middle row Non Executive Chairman Edward D. Miller (l to r): Harry L. You; William R. Floyd Chairman of the Board Bottom row William R. Floyd American Express Centurion Bank (l to r): Christina Gold; Former Chairman Debra Perry Buffet Holdings Inc. Debra Perry Former Senior Managing Director Christina Gold Moody’s Corporation Former Chief Executive Officer The Western Union Company Harry L. You Executive Vice President, Office of the Chairman EMC Corporation Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended April 30, 2015 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-14505 KORN/FERRY INTERNATIONAL (Exact Name of Registrant as Specified in its Charter) Delaware 95-2623879 (State or Other Jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification Number) 1900 Avenue of the Stars, Suite 2600, Los Angeles, California 90067 (Address of principal executive offices) (Zip code) (310) 552-1834 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Name of Each Exchange on Which Registered Common Stock, par value $0.01 per share New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No ¨ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No x Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨ Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨ (Do not check if a smaller reporting company) Smaller reporting company ¨ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).