INTERIM RESULTS Six months ended 31 December 2016 CAUTIONARY - - PowerPoint PPT Presentation

INTERIM RESULTS

Six months ended 31 December 2016

CAUTIONARY STATEMENT

This presentation contains certain statements that are neither reported financial results nor other historical information. The information contained in this presentation is not audited, is for personal use and informational purposes only and is not intended for distribution to, or use by, any person or entity in any jurisdiction in any country where such distribution or use would be contrary to law or regulation, or which would subject any member of the Hays Group to any registration requirement. No representation or warranty, express or implied, is or will be made in 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 or incorporated 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 and assumptions and actual results or events may differ materially from those expressed or implied by those statements. Accordingly, no assurance 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 or activities will continue in the future. No responsibility or obligation is accepted to update or revise any forward-looking statement resulting from new 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 the Company, 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 or commitment or investment decision relating thereto, nor does it constitute a recommendation regarding the shares of the Company or any invitation or inducement to engage in investment activity under section 21 of the Financial Services and Markets Act 2000. Past performance cannot 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.

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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

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• 1. FINANCIAL REVIEW

PAUL VENABLES GROUP FINANCE DIRECTOR

GOOD FIRST HALF FINANCIAL PERFORMANCE

Net fees Operating profit**

£81.5m £82.6m £86.3m £396.9m £383.9m £380.3m

Basic earnings per share**

3.64p 3.80p 4.49p 4.55p 3.99p

Net fees £465.5m 3% increase* EPS 4.55p 14% increase Operating profit £100.1m 1% decrease*

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

£94.7m £100.1m £465.5m £413.4m

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INTERIM DIVIDEND INCREASED BY 5% TO 0.96p

H2 15 H1 16 H2 16 H1 17 H1 15 H2 15 H1 16 H2 16 H1 17 H1 15 H2 15 H1 16 H2 16 H1 17 H1 15

GOOD FIRST HALF FINANCIAL PERFORMANCE

Income statement**

Six months ended 31 December 2016 £m 2015 £m Actual growth LFL* growth Turnover 2,484.5 2,043.9 22% 7% Net fees 465.5 396.9 17% 3% Operating profit 100.1 86.3 16% (1)% Net finance cost (3.9) (3.9) Profit before tax 96.2 82.4 17% Tax (30.8) (25.5) Profit after tax 65.4 56.9 15%

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

EXCHANGE RATE MOVEMENTS INCREASED NET FEES AND OPERATING PROFIT BY £55.5 MILLION AND £14.8 MILLION RESPECTIVELY

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Net Fees £227.5m 10%* Op Profit £48.6m 6%* Strong 10%* net fee growth in Germany to £110.7m Rest of division grew 11%*, with 13 countries growing by over 10%*, and delivered a strong 19%* increase in profit

GOOD GROWTH IN INTERNATIONAL BUSINESS OFFSETS DECLINE IN UK

Asia Pacific Performance by region Continental Europe & RoW

24%

• f net

fees

49%

• f net

fees

Net Fees £111.9m 6%* Op Profit £33.3m 12%* 9%* growth in A&NZ led by private sector acceleration, up 10%*;

• perating profit up 16%*

Asia, net fees down (5)%* and

• perating profit (16)%* as banking

markets remained tough

United Kingdom & Ireland

27%

• f net

fees

Net Fees £126.1m (10)%* Op Profit £18.2m (29)%* Trading conditions tough but sequentially stable through the half, with net fees down (10)%* Operating profit down (29)%*, in line with management guidance

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

GOOD GROWTH ACROSS TEMP AND PERM

Permanent placement business Temporary placement business

* Growth rates and margin change are for the 6m ended 31 December 2016 versus 6m ended 31 December 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.

Split of net fees H2 16 H1 16 58% Temp 59% Temp H1 17 6% volume increase driven primarily by Germany and Australia Mix/hours worked increased 1% Underlying Temp margin** down 40bps primarily due to mix and a reduction in Temp margin in our Australia and UK public sector markets Strong volume increase in CE&RoW

• ffset a decrease in the UK&I

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

4% net fee growth 6% volume increase 1% increase in mix/hours 40 bps underlying margin decrease** 1% net fee growth 1% volume increase 1% average Perm fee increase

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58% Temp £192.0m

(41% of net fees)

£273.5m

(59% of net fees)

THE AUSTRALIAN DOLLAR AND EURO REMAIN SIGNIFICANT FX TRANSLATION SENSITIVITIES FOR THE GROUP

Six months ended 31 December 2016 Average Closing Australian $ 1.6963 1.7105 Euro € 1.1651 1.1739 Impact of a one cent change per annum Net fees Op profit Australian $ +/- £0.9m +/- £0.3m Euro € +/- £2.6m +/- £0.9m

Key FX rates and sensitivities

• FX rates at 20 February 2017: £1 / AUD1.6244; £1 / €1.1745
• Retranslating the Group’s FY16 full year operating profit at current exchange rates would

increase the actual result by c.£29m from £181.0m to c.£210m

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WE HAVE MAINTAINED OUR SECTOR-LEADING CONVERSION RATE*

10 10

EXPECT IMPROVEMENT IN SECOND HALF CONVERSION RATE

Conversion Rate* 1H16 1H17 APAC 27.5% 29.8% CE&RoW 21.8% 21.4% UK&I 18.1% 14.4% GROUP 21.7% 21.5%

* Represents the conversion of net fees into operating profit.

• OVERALL GROUP CONVERSION RATE

DECLINED 20bps TO 21.5%

• INCREASE IN APAC DRIVEN BY

ACCELERATING GROWTH AND STRONG LEVERAGE IN AUSTRALIA

• MODEST DECLINE IN CE & RoW DUE TO

SIGNIFICANT HEADCOUNT INVESTMENT AND 3 LESS WORKING DAYS IN GERMANY

• REDUCTION IN UK PARTIALLY MITIGATED

BY EARLY PROACTIVE ACTION TO REDUCE COST BASE

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

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Taxation

Underlying effective tax rate 32.0% 31.0%

INCREASE IN ‘ETR’ TO 32.0% DRIVEN BY DECREASE IN UK PROFITS

Finance charge and taxation

Six months ended 31 December

2016 £m 2015 £m

Finance charge

Net interest charge on debt (1.2) (1.3) Interest unwind of discount on Acquisition Liability (0.6) (0.5) IAS 19 pension charge (non-cash) (1.0) (1.9) PPF levy (0.3) (0.2) Other interest payable (0.8)

• Net finance charge

(3.9) (3.9)

• Decrease in profits in UK increases the Group effective tax rate to 32.0%
• ETR for FY17 will be driven by the mix of profits. We currently expect the rate to be 32%.

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.

Six months ended 31 December 2016 2015 Change Basic earnings £65.4m £56.9m 15% Weighted average number of shares* 1,439m 1,425m Basic earnings per share 4.55p 3.99p 14% Memo Shares in issue* at 31 December 2016 and 20 February 2017 1,443m

Basic EPS 11 10 12 5.19p** 3.25p** H1 12 7.72p H2 12 H1 13 5.19p 5.47p H1 17 4.55p 3.99p 4.49p H2 16 H1 16

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GOOD UNDERLYING CASH PERFORMANCE

£100.1m £18.5m £(34.8)m £(30.2)m £(1.3)m £52.3m

Operating profit to free cash flow conversion Uses of cash flow

Operating profit Non-cash items Working capital Tax paid Interest paid Free cash flow Operating cash flow £83.8m (H1 16: £33.9m) Cash from operations H1 13 £162.2m

Capex guidance for FY17 is c. £20m and depreciation & amortisation guidance is c. £23m

£78.1m £97.3m £33.9m H1 16 H1 17 H1 15 £78.5m £83.8m

Increase in Net Cash £11.1m Capex £10.0m Pensions £7.4m

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Dividend £28.7m Other £(4.9)m

£m 31 Dec 2016 30 Jun 2016 Goodwill & intangibles 243.7 242.0 Property, plant & equipment 20.7 19.8 Net deferred tax 26.2 23.9 Net working capital* 234.6 190.6 Derivative financial instruments (0.2) 6.6 Tax liabilities (29.9) (27.1) Retirement benefit obligations (20.5) (14.3) Acquisition Liabilities (12.7) (11.2) Provisions (9.1) (9.3) 452.8 421.0 Net cash 47.9 36.8 Net assets 500.7 457.8

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 39 Increase primarily due to expansion of Temp/Contracting business in Germany and Australia NET WORKING CAPITAL Increase due primarily to a decrease in the discount rate and an increase in the inflation rate partially offset by an increase in asset values and regular Company contributions RETIREMENT BENEFITS

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FURTHER INCREASE IN NET CASH POSITION

** Covenant ratios are shown on a pro-forma basis for 6 months ended 31 December 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 and acquisitions.

H1 17 £52.3m H1 15 H1 16 £12.8m £56.3m Jun 16 Dec 14 Dec 16 Jun 15 Dec 15 (79.2) 47.9 36.8 (30.7)

NET DEBT ELIMINATED IN FY16 H1 17 ended with net cash of £47.9m £210M BANK FACILITY IN PLACE expires April 2020 EBITDA / INTEREST RATIO: 52X** debt covenant: > 4.0 NET DEBT / EBITDA RATIO: N/A debt covenant: < 2.5

(56.1)

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DIVIDEND INCREASED BY 5%, IN LINE WITH OUR POLICY

• Core dividend should be sustainable, progressive and appropriate
• Target core dividend cover of 2.0x to 3.0x Group EPS
• Interim dividend increased by 5% to 0.96p, in line with our

strategy to build cover towards 3.0x earnings

EXCESS CASH RETURNS POLICY FREE CASH FLOW PRIORITIES CORE DIVIDEND POLICY

• We will build a year-end net cash position of c.£50m
• Assuming a positive outlook, any free cash flow generated over

and above this position will be distributed to shareholders via special dividends, or other appropriate methods, annually

• Fund Group investment and development
• Maintain a strong balance sheet
• Deliver a sustainable core dividend which is affordable and

appropriate

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The interim dividend will be payable on 07 April 2017 and the ex-dividend date is 02 March 2017

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

FINANCIAL SUMMARY

OPERATING PROFIT BROADLY FLAT* DESPITE DECLINE IN THE UK

• Strong 12%* profit growth in Asia Pacific, driven by excellent profit growth in Australia
• 6%* increase in CE&RoW profit, as we invested to drive further growth; UK decrease in

profitability partially mitigated with early cost base adjustments

• Maintained sector-leading conversion rate of 21.5%

GOOD UNDERLYING CASH PERFORMANCE; DIVIDEND INCREASE

• 84% conversion of operating profit to operating cash flow
• Increase in net cash position to £47.9m
• Dividend increased by 5% to 0.96p as we build cover towards 3.0x

SOLID NET FEE GROWTH OF 3%*, DRIVEN BY INTERNATIONAL BUSINESSES

• Strong 10%* growth in CE&RoW, with Germany net fees up 10%*
• Acceleration of growth in Australia; tough but sequentially stable conditions in the UK

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• 2. OPERATING REVIEW

ALISTAIR COX CHIEF EXECUTIVE

ANOTHER 6 MONTHS OF OPERATIONAL & FINANCIAL PROGRESS

2. Investing to build a market-leading business & drive growth 1. Maximising financial performance POSITION THE GROUP FOR LONG-TERM STRUCTURAL GROWTH OPPORTUNITIES, WHILST DRIVING OUR PROFITS ALONG THE WAY 3. Building further diversification across the platform

• £100.1m of Operating Profit, 21.5% conversion rate*
• UK headcount adjusted quickly to protect profits
• Australia conversion rate 37%, Germany 35%
• Ended the half with c.£50m net cash
• Non-UK consultant headcount up 9%
• Material headcount increases in core markets:
• Germany up 13%
• Australia up 12%

We remain focussed on… Delivering clear results…

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

• Temp & Contracting now represents 59% of net fees,

having grown 4%**

• Contracting business now operating in 27 countries

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ACCELERATION IN AUSTRALIA; TRADING CONDITIONS IN ASIA TOUGH OVERALL

Australia & NZ (net fees: £87.2m; operating profit: £30.2m) Australia net fees up 11%*, with acceleration through the half. Perm up 8%* while Temp increased 12%* Strong growth in Victoria 15%, NSW 14% and ACT 13% IT up 22%* to record levels, C&P, our largest specialism, up 12%* and Office Support up 9%* Invested aggressively to drive growth, ANZ consultant headcount up 9% year-on-year (including Australia up 12%) Asia (net fees: £24.7m; operating profit: £3.1m) Net fees down 5%*; tough trading conditions especially in Banking markets, Japan & Singapore By contrast, record net fees in China and Hong Kong Invested in China, HK & Malaysia, but overall consultant headcount down 6% year-on-year Headline APAC net fees

LFL* growth 6m to 31 Dec 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 31 Dec 2016 closing numbers versus 31 Dec 2015 closing numbers.

APAC

10 11 £146m £210m £242m

Net Fees £111.9m +6% Op Profit £33.3m +12% Conversion rate 29.8% +230bp Consultants** 1,270 +3%

H1 17 £112m H2 16 H1 16 £92m £84m

46%

Perm

54%

Temp

24%

• f net

fees

£ £ %

20

Germany (net fees: £110.7m) Net fees up 10%* and a record first half profit performance Good 8%* growth in Contracting and Temp, despite 3 less working days; excellent growth in Perm, up 25%* Strong growth across all specialisms, core IT & Engineering businesses up 10%*, A&F up 11%* Continued significant investment as we build material further scale, consultant headcount up 13% Rest of the division (net fees: £116.8m) Strong, broad-based 11%* net fee growth, with 13 countries up 10%* or more, including Belgium, Netherlands, Poland Record performance in France, with fees up 18%* Significant investment in headcount, up 10% Operating profit up 19%*

STRONG, BROAD-BASED GROWTH; ALL-TIME RECORD IN GERMANY

Headline CE&RoW net fees

* 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 31 Dec 2016 closing numbers versus 31 Dec 2015 closing numbers.

CE&RoW

10 11 £220m £267m H1 13 £140m £134m £133m H1 16 £173m H2 16 H1 17 £190m £228m LFL* growth 6m to 31 Dec 2016

Net Fees £227.5m +10% Op Profit £48.6m +6% Conversion rate 21.4% (40bp) Consultants** 3,358 +11% 37%

Perm

63%

Temp

49%

• f net

fees

£ £ %

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CONDITIONS TOUGH BUT SEQUENTIALLY STABLE; EARLY SIGNS OF IMPROVEMENT IN PRIVATE SECTOR

* 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 31 Dec 2016 closing numbers versus 31 Dec 2015 closing numbers.

UK & IRELAND

Net fees declined 10%* in challenging trading conditions Net fees of £126m, operating profit of £18m Consultant headcount down 10% year-on-year, 2% down sequentially after cost base action was taken early in FY16 Both Perm and Temp net fees down 10%* Private sector net fees down 9%*: 72% of UK&I net fees Post-Referendum step-down in Perm, quickly stabilised and exited the half with early signs of improvement A&F -6%*, C&P -8%*, IT -11%* Public sector net fees down 12%*: 28% of UK&I net fees Challenging conditions throughout the half A&F -5%*, C&P -11%*, Education -10%*

LFL* growth 6m to 31 Dec 2016

Net Fees £126.1m (10)% Op Profit £18.2m (29)% Conversion rate 14.4% (370bp) Consultants** 1,978 (10)% 44%

Perm

56%

Temp

27%

• f net

fees

£ £ %

22

Headline UK&I net fees

H1 17 £126m £133m £139m H2 16 H1 16

2018 ASPIRATIONS: WE REMAIN ON TRACK AFTER 3 ½ YEARS

Other Countries (£m) Operating Profit*

25 35 45 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 CE&RoW & Asia Pac divisional

• verheads (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.

FY18 ORIGINAL FX FY 2016 HY 2017

17 20

Australia & NZ (£m) Operating Profit*

ASSUMED 5YR NET FEE CAGR: +1% to +5%

FY 2016 HY 2017

30 44

FY18 ORIGINAL FX

60 70 80

UK & Ireland (£m) Operating Profit*

45 60 75 ASSUMED 5YR NET FEE CAGR: +5% to +9%

FY 2016 FY18 OBJECTIVE HY 2017

25 18

Germany (£m) Operating Profit*

ASSUMED 5YR NET FEE CAGR: +7% to +12%

FY 2016 HY 2017 FY18 ORIGINAL FX

39 63 85 100 115 52 31 37 20

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• 3. STRATEGY UPDATE

ALISTAIR COX CHIEF EXECUTIVE

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WE HAVE CLEAR, WELL ESTABLISHED STRATEGIC PRIORITIES TO DELIVER OUR LONG-TERM AIMS

GENERATE, REINVEST & DISTRIBUTE MEANINGFUL CASH RETURNS BUILD CRITICAL MASS & DIVERSITY ACROSS OUR GLOBAL PLATFORM MATERIALLY INCREASE & DIVERSIFY GROUP PROFITS INVEST IN PEOPLE, TECHNOLOGY, COLLABORATIONS & INNOVATION

A PRIORITISED PIPELINE OF OPPORTUNITIES TO BUILD SCALE

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GERMANY AUSTRALIA UK CORE PROFIT DRIVERS FUTURE MATERIAL PROFIT DRIVERS MEANINGFUL CONTRIBUTORS NETWORK CRITICAL FRANCE JAPAN USA CANADA SWITZERLAND NEW ZEALAND BELGIUM CHINA MEXICO/BRAZIL 20 OTHER HAYS COUNTRIES ONGOING 0-5 YEARS 0-10 YEARS £10m+ TARGET £5m+ TARGET

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FRANCE: MANY YEARS OF CONSISTENT OUTPERFORMANCE

Drivers of success NET FEES OPERATING PROFIT CONSULTANT HEADCOUNT

17 OFFICES, BROAD NATIONAL COVERAGE 50% NET FEES PARIS, 50% REGIONS CONTRACTOR ROLLOUT PROGRESS NOW c.50% OF NON-PERM FEES INVESTED TO GROW CORE SPECIALISMS: A&F, C&P, LIFE SCIENCES

TEMP / CONTRACTOR NUMBERS DOUBLED 7x HIGHER UP 65% UP 74%

EXPERIENCED, LONG-TENURE MANAGEMENT SIGNIFICANT HEADCOUNT INVESTMENT

Progress (FY11-date) OUR FOCUS WILL REMAIN UNCHANGED AS WE SEEK TO BUILD ON THIS SUCCESS

RELATIVE RESILIENCE TO THE CYCLE SIGNIFICANT BARRIERS TO ENTRY EXISTING HAYS EXPERTISE

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CONTRACTING ROLLOUT SUPPORTS OUR DIVERSIFICATION STRATEGY

22% 78% 80% 56% 68% 65% 36% 32%

JAPAN AUSTRIA SWITZERLAND BELGIUM NETHERLANDS USA CANADA FRANCE

% non-Perm net fees

Perm Temp & Contracting

WE ARE FOCUSED ON BUILDING FURTHER SCALE IN OUR WORLD-CLASS CONTRACTING BUSINESS Why Contracting is a key focus

CLEAR STRUCTURAL GROWTH

2. 3. 4. 1. 2. 1.

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FORGING MUTUALLY BENEFICIAL GLOBAL RELATIONSHIPS: OUR COLLABORATION WITH SEEK

AUSTRALIA’S LARGEST ONLINE JOBS MARKETPLACE c.90% OF AUSTRALIA’S WHITE COLLAR POPULATION COVERED BY THE HAYS / SEEK COMBINED DATABASE ACCESS TO REAL-TIME INFORMATION HELPS UNDERSTAND APPROACHABILITY INCREASES EFFICIENCIES, REDUCES WASTED EFFORT AND INCREASES OUTPUT

POSITIVE RESULTS IN TERMS OF IMPROVED PRODUCTIVITY, JOB FILL RATES AND CANDIDATE ENGAGEMENT

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

SIGNIFICANT PROGRESS DELIVERED AGAINST ALL KEY PRIORITIES, AND WELL POSITIONED FOR FURTHER GROWTH AND DEVELOPMENT

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BUILD CRITICAL MASS AND SCALE ACROSS OUR GLOBAL PLATFORM ASPIRATION TO MATERIALLY INCREASE AND DIVERSIFY GROUP PROFITS GENERATE, REINVEST & DISTRIBUTE MEANINGFUL CASH RETURNS NON-UK CONSULTANT HEADCOUNT UP 9% NON-PERM NOW 59% OF NET FEES CONTINUED TO DEVELOP MUTUALLY- BENEFICIAL RELATIONSHIPS GOOD PROFIT PERFORMANCE DESPITE A SLOWDOWN IN UK MARKET STRONG CASH PERFORMANCE c.£50m NET CASH 5% INTERIM DIVIDEND INCREASE INVEST IN PEOPLE & TECHNOLOGY, RESPOND TO CHANGE & BUILD RELATIONSHIPS

• 4. CURRENT TRADING

ALISTAIR COX CHIEF EXECUTIVE

CONTINUATION OF TRENDS WE SAW AT THE END OF H1 ACROSS THE GROUP; RETURN TO WORK SOLID OVERALL

Current trading conditions by region

APAC UK&I CE & RoW

Conditions remain tough, especially in the public sector markets Return to work was solid and in line with our expectations Continuation of signs of modest improvement in private sector markets Strong activity levels in Australia across all states and most specialisms Return to work good and in line with prior year levels Asia remains mixed but subdued overall Strong underlying growth in Germany and rest of Europe Return to work in Germany was good North America remains good, Latin America more mixed

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We expect the timing of Easter this year to increase year-on-year net fee growth in Q3 by 2%-3%, with a commensurate decrease expected in Q4.

QUESTIONS & ANSWERS

APPENDIX 1

H1 2017 RESULTS SUPPORTING INFORMATION

Six months ended 31 December

2016 £m 2015 £m LFL growth* Germany 38.6 31.3 3% Rest of CE&RoW (23 countries) 15.8 12.3 10% CE&RoW Central Costs (5.8) (5.8) 3% CE&RoW Operating Profit 48.6 37.8 6%

MATERIAL INCREASE IN CE&RoW (EX-GERMANY) PROFITABILITY

* 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 3%* despite significant

investment in headcount and maintained an excellent conversion rate of 35%

• A strong performance elsewhere in CE&RoW where market conditions were

good and we invested in headcount while controlling our cost base

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LIKE-FOR-LIKE SUMMARY

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

Six months ended 31 December

2015 £m FX impact £m Organic £m 2016 £m LFL* growth Net fees Asia Pacific 84.4 21.5 6.0 111.9 6% Continental Europe & RoW 173.1 33.3 21.1 227.5 10% United Kingdom & Ireland 139.4 0.7 (14.0) 126.1 (10)% 396.9 55.5 13.1 465.5 3% Operating profit Asia Pacific 23.2 6.5 3.6 33.3 12% Continental Europe & RoW 37.8 8.0 2.8 48.6 6% United Kingdom & Ireland 25.3 0.3 (7.4) 18.2 (29)% 86.3 14.8 (1.0) 100.1 (1)%

36

H1 FY17 v H2 FY16: ANALYSIS BY DIVISION

* LFL (‘like-for-like’) growth is organic growth at constant currency. Note: H2 16 is the period from 1 January 2016 to 30 June 2016. H1 17 is the period from 1 July 2016 to 31 December 2016.

Net fee growth (LFL*) versus same period last year Q3 16 Q4 16 H2 16 Q1 17 Q2 17 H1 17 Asia Pacific 3% 4% 4% 5% 7% 6% Continental Europe & RoW 11% 21% 16% 13% 8% 10% United Kingdom & Ireland (3)% (4)% (3)% (10)% (10)% (10)% Operating profit growth (LFL*) versus same period last year Asia Pacific 10% 12% Continental Europe & RoW 14% 6% United Kingdom & Ireland 9% (29)% Conversion rate (%)

• perating profit as % of net fees

Asia Pacific 29.4% 29.8% Continental Europe & RoW 21.6% 21.4% United Kingdom & Ireland 20.3% 14.4%

37

Relative size Country / sub region (ranked by net fees) Net Fees Net fee growth (LFL*) # of offices # of consultants Germany £110.7m 10% 17 1,359 France £27.3m 18% 17 372 Benelux £16.7m 11% 11 263 USA £16.2m 8% 12 192 Switzerland £10.4m (3)% 4 116 Canada £8.8m 6% 8 115 Other** (16 countries) £37.4m 13% 32 941 101 3,358

CONTINENTAL EUROPE & ROW PERFORMANCE BY COUNTRY

* Percentages represent LFL (‘like-for-like’) growth which is organic growth at constant currency for 6m ended 31 December 2016 versus 6m ended 31 December 2015. ** Other represents financial results for remaining CE&RoW countries. Note: Pie charts represent net fees by country / sub region.

38

CONSULTANT HEADCOUNT

Change in headcount As at Dec 2016 As at June 2016 Change since June 2016 As at Dec 2015 Change since Dec 2015 Asia Pacific 1,270 1,210 5% 1,232 3% Continental Europe & RoW 3,358 3,034 11% 3,015 11% United Kingdom & Ireland 1,978 2,024 (2%) 2,207 (10%) Group 6,606 6,268 5% 6,454 2%

39

OFFICE NETWORK

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

Number of offices 30 June 2016 Opened/ (Closed)* 31 Dec 2016 Asia Pacific 49 1 50 Continental Europe & RoW 103 (2) 101 United Kingdom & Ireland 100

• 100

Total 252 (1) 251

40

TRADING DAYS

Number of trading days (UK only) H1 H2 Year Year ended 30 June 2016 129 125 254 Year ended 30 June 2017 128 125 253 Year ending 30 June 2018 127 125 252

41

THE SCALE AND SCOPE OF OUR BUSINESS IS UNIQUE

LINKEDIN FOLLOWERS HITS ON HAYS WEBSITES

1.4 million 34 million

CV’S RECEIVED INTERVIEWS PER MONTH

6 million >50,000

PERM PLACEMENTS

67,000

TEMP ASSIGNMENTS

220,000

WORLDWIDE IN FY16 WE FILLED OVER 1,000 JOBS EVERY WORKING DAY FY16 STATISTICS

42

APPENDIX 2

THE HAYS BUSINESS MODEL & STRATEGY FOR GROWTH

HAYS IS A LEADING GLOBAL EXPERT IN QUALIFIED, PROFESSIONAL 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

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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 France Czech Re. Netherlands Portugal Canada Belgium Germany Switzerland Spain Austria Sweden Poland Australia N.Zealand Singapore Italy UAE Luxembourg UK Key: Legal Banking Fin Services Education Contact 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

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Top 3 position Top 5 position Market Leader Other

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

Australia (#1) Belgium Brazil Chile Colombia France Germany (#1) Hong Kong Hungary Ireland (#1) Italy Japan (#1) Malaysia New Zealand (#1) Poland (#1) Portugal (#1) Russia Singapore (#1) Spain Sweden Switzerland UK (#1) Austria China Czech Rep Denmark Luxembourg Mexico Netherlands UAE

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 business in the world

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OUR STRATEGIC FOCUS IS ON BUILDING SCALE IN KEY MARKETS

• 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 2017

11

20

2002 2017

10

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MARKET LEADING BREADTH AND DEPTH OF PLATFORM

Divisional operating review

UK Ireland Australia New Zealand Hong Kong China Singapore Japan Malaysia Germany France Belgium Netherlands Luxembourg Spain Portugal Czech Rep Hungary Switzerland Austria Sweden Denmark Poland UAE Italy Brazil India Russia Mexico Colombia Chile Canada USA Accountancy & Finance Construction & Property Information Technology Life Sciences Sales & Marketing Banking & Capital Markets Contact Centres Education Engineering & Manufacturing Executive Financial Services Health & Social Care Human Resources Legal Office Professionals Energy, Oil & Gas Purchasing Retail Resources & Mining Telecoms Total Offices* 95 5 34 4 1 4 1 4 2 17 17 7 3 1 5 2 1 1 4 1 1 1 6 1 4 3 1 2 1 1 1 8 12 251

33 COUNTRIES 20 SPECIALISMS

* Office numbers as at December 2016.

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… 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 technology and a world class brand… Unrivalled scale, balance and diversity…

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• Exposure to structural growth and more mature areas
• Long-established across technical, white-collar specialisms
• 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 THE HAYS BUSINESS MODEL APART AND DRIVES OUTPERFORMANCE

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LEVERAGING OUR BEST-IN-CLASS TECHNOLOGY PLATFORM AND BRAND

OPERATIONAL EFFECTIVENESS BEST CUSTOMER SERVICE DIGITALLY-ENABLED CONSULTANTS

1 2 3

OPERATIONAL EFFECTIVENESS 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

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~75% 84% ~85% 24% 21% 59% ~25% 16% ~15% 49% 15% 41% 27% 15% 9% 8% 32%

A BALANCED PORTFOLIO

Net Fees by type*

* Indicative purposes only based on information for the 6 months ended December 2016. ** Major specialisms within Other include: Banking Related (7%), Life Sciences (4%), 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

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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 H117)

ESTABLISHED:

>70% penetration

30% of Group net fees

• 8% LFL net fee growth

DEVELOPING:

>30-70% penetration

28% of Group net fees +11% LFL net fee growth

EMBRYONIC:

<10% penetration

6% of Group net fees +9% LFL net fee growth

EMERGING:

10-30% penetration

36% of Group net fees +7% LFL net fee growth

UK & Ireland (27%) Australia & NZ (19%) France, Netherlands, Canada (9%) Japan, China, Malaysia (4%) Latin America, Russia, India (2%) Germany (24%) Other CE&RoW (10%)

BALANCED BUSINESS MODEL: WELL DIVERSIFIED IN STRUCTURAL AND CYCLICAL MARKETS

USA (3%)

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38% 42% 20%

Net fees HY17 £465.5m

Information Technology Engineering Sales & Marketing Candidate shortages Clients investing

Continued investment Drive growth STRONG: GROWTH >10%* TOUGH: DECLINE <0%*

Banking Energy, Oil & Gas Education Short term challenges Long term opportunity

Defend market position Reduce costs SOLID / GOOD: GROWTH 0-10%*

Accountancy& Finance Construction & Property Office Support Mixed conditions but opportunities available

Selective investment Maintain position

* Represents LFL (‘like-for-like’) growth rates in the 6 months to 31 December 2016. Listed specialisms are examples only and are not exhaustive.

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

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Asia

Hays HY17 Net Fees by geography

0% 100% Group net fees

Temp Perm

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

89%

60% 44% 34% 13% 87% 66% 56% 40%

11%

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

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APPENDIX 3

DIVISIONAL PROFILES

#1 market position*

Net fees by specialism Temp : Perm Private : Public sector Net fees by country

Net fees: £111.9m Operating profit: £33.3m Conversion rate: 29.8% Countries: 7 Consultants: 1,270 Offices: 50

Note: Private:Public sector and Temp:Perm split is based on net fees for 6 months ended 31 December 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 24% OF GROUP NET FEES WITH AUSTRALIA REPRESENTING 71% OF DIVISIONAL NET FEES

54% 46% 73% 27%

22% 13% 13% 11% 10% 6% 4% 21%

• Const. & Property
• Account. & Finance

IT Office Support Banking Sales & Marketing HR Other

71% 9% 7% 6%

Australia Japan New Zealand China Singapore (3%) Hong Kong (3%) Malaysia (1%)

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6 months ended 31 December 2016

PROFILE OF HAYS AUSTRALIA & NEW ZEALAND TEMP 66% PERM 34% 19% GROUP NET FEES 844 CONSULTANTS 38 OFFICES

Net fees by specialism Net fees by region

Construction & Property

• Acc. &

Finance Office Support IT Other

28% 14% 13% 11% 7% 23%

£87.2m £30.2m 35%

NSW Victoria ACT

Q’land

Other

30% 23% 11% 9% 9% 18%

NZ Note: All data is presented as of 31 December 2016. * Includes Oil & Gas and Energy.

NET FEES EBIT

• CONV. RATE

Half Year ended 31 December 2016

58

Banking

Res & Mining*

4%

HISTORIC PROFILE OF HAYS AUSTRALIA & NEW ZEALAND

44 44 45 64 87 72 49 81 134 139 138 179 210 182 129 135 812 773 704 722 843 815 706 1,090

FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10

33 32 33 36 41 40 38 44

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 65.

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FY08

163

FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY08 FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY08 FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY08

60 658 50

33% 19% 13% 9% 7% 5% 14%

IT Engineering

• Account. & Finance
• Const. & Property

Life Sciences Sales & Marketing Other

49% 12% 7% 7% 5% 4% 16%

Germany France

Benelux

USA Switzerland Canada Other

Net fees: £227.5m Operating profit: £48.6m Conversion rate: 21.4% Countries: 24 Consultants: 3,358 Offices: 101

Note: Private:Public sector and Temp:Perm split is based on net fees for 6 months ended 31 December 2016.

Structurally developing markets Focused on core specialisms Broad coverage

CONTINENTAL EUROPE & RoW REPRESENTS 49% OF GROUP NET FEES AND 49% OF GROUP PROFITS

Temp : Perm Private : Public sector 63% 37% Net fees by specialism Net fees by country Net fees by specialism Net fees by country 97% 3%

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6 months ended 31 December 2016

PROFILE OF HAYS GERMANY TEMP 87% PERM 13% 24% GROUP NET FEES 1,359 CONSULTANTS 17 OFFICES

Net fees by specialism Net fees by contract type

Note: All data is presented as of 31 December 2016.

IT Engineering 43% 30% 11% Contracting Temp Perm 63% 24% 13%

£111m £39m 35%

NET FEES EBIT

• CONV. RATE

Half Year ended 31 December 2016

61 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)

175 158 164 150 136 106 80 88 63 60 62 58 52 38 26 36 1,213 1,088 944 940 786 670 479 463 36 38 38 38 38 36 33 41

Note: Historic net fees and historic operating profit shown on a headline basis. For local currency data, please see slide 65. * Consultant headcount has been restated to include resourcers previously not reported as consultants.

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FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY08 FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY08 FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY08 FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY08

63 452 24 38

33% 27% 16% 11% 9% 4%

London North & Scotland Midlands & E.Anglia Home C

• unties

South West & Wales Ireland

Net fees by specialism Net fees by region

Net fees: £126.1m Operating profit: £18.2m Conversion rate: 14.4% Consultants: 1,978 Offices: 100

Note: Private:Public sector and Temp:Perm split is based on net fees for 6 months ended 31 December 2016. * Market position is based on Hays estimates.

#1 market position* Diverse sector exposure Nationwide coverage

UK & IRELAND REPRESENTS 27% OF GROUP NET FEES

Temp : Perm Private : Public sector 56% 44% 72% 28% 21% 20% 11% 10% 9% 8% 21%

• Account. & Finance
• Const. & Property

Office Support Education IT Banking & Fin. Serv. Other

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6 months ended 31 December 2016

HISTORIC PROFILE OF HAYS UK & IRELAND

52 46 26 6 (7) 4 11 64 246 222 225 242 244 331 272 2,024 2,203 2,157 1,929 1,934 2,158 2,272 2,315 19 17 11 3 (3) 1 5 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.

64

FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY08 FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY08 FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY08 FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY08

453 3,128 137 30

LOCAL CURRENCY – HAYS NET FEES AND OPERATING PROFIT

90 83 80 98 134 116 88 130 273 263 245 274 323 293 232 293 234 208 197 182 161 124 91 103 85 79 74 70 62 44 30 42

Australia & New Zealand Historic net fees (AUDm) Australia & New Zealand Historic operating profit (AUDm) Germany Historic net fees (EURm) Germany Historic operating profit (EURm)

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FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY08 FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY08 FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY08 FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY08

365 86 182 33

FURTHER INFORMATION

HEAD OF INVESTOR RELATIONS DAVID WALKER david.walker@hays.com +44 207 391 6613 For more information about the Group: haysplc.com/investors or @haysplcIR