INTERIM RESULTS Six months ended 31 December 2015 CAUTIONARY - - PowerPoint PPT Presentation

INTERIM RESULTS

Six months ended 31 December 2015

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

STRONG GROUP FINANCIAL PERFORMANCE

Net fees Operating profit**

£66.7m £73.6m £81.5m £383.9m £363.4m £361.5m

Basic earnings per share

2.90p 3.23p 3.80p 3.99p 3.64p

Net fees £396.9m 8% increase* EPS 3.99p 10% increase Operating profit £86.3m 15% increase*

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

£82.6m £86.3m £396.9m £380.3m

5

H2 14 H1 15 H2 15 H1 16 H1 14

INTERIM DIVIDEND INCREASED BY 5% TO 0.91p

H2 14 H1 15 H2 15 H1 16 H1 14 H2 14 H1 15 H2 15 H1 16 H1 14

STRONG GROUP FINANCIAL PERFORMANCE

Income statement**

Six months ended 31 December 2015 £m 2014 £m Actual growth LFL* growth Turnover 2,043.9 1,912.0 7% 13% Net fees 396.9 383.9 3% 8% Operating profit 86.3 81.5 6% 15% Net finance cost (3.9) (4.2) Profit before tax 82.4 77.3 7% Tax (25.5) (25.9) Profit after tax 56.9 51.4 11%

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

6

EXCHANGE RATE MOVEMENTS DECREASED NET FEES AND OPERATING PROFIT BY £24.7 MILLION AND £6.8 MILLION RESPECTIVELY

Net Fees £173.1m 14%* Op Profit £37.8m 17%* Germany net fees up 12%*, following significant investment Rest of division grew 17%*, with 16 countries growing by 10%* or more, and it delivered a material increase in profit of £3.6m*

EXCELLENT PROFIT LEVERAGE; INCREASED CONVERSION RATE TO 21.7%

Asia Pacific Performance by region Continental Europe & RoW

21%

• f net

fees

44%

• f net

fees

Net Fees £84.4m 4%* Op Profit £23.2m 6%* Australia & NZ net fees up 3%*, conditions remained mixed but sequentially stable Net fees up 7%* in Asia, driven by all-time records in Japan, up 8%* and China, up 16%*

United Kingdom & Ireland

35%

• f net

fees

Net Fees £139.4m 3%* Op Profit £25.3m 20%* Private sector solid, up 4%* Public sector increasingly tough, up 1%* Exceptional 93%* drop-through of incremental net fee growth into

• perating profit

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

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GOOD GROWTH ACROSS TEMP AND PERM

Permanent placement business Temporary placement business

* Growth rates and margin change are for the 6m ended 31 December 2015 versus 6m ended 31 December 2014, 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 15 H1 15 58% Temp 58% Temp H1 16 Increase in volumes of 6% driven primarily by Germany growth Mix/hours worked increased 4% Underlying Temp margin** down 30bps through the half primarily as a result of a reduction in ANZ temp margin Volumes increased by 7% Average Perm fee up 1% primarily as a result of salary inflation

8% net fee growth 6% volume increase 4% increase in mix/hours 30 bps underlying margin decrease** 8% net fee growth 7% volume increase 1% average Perm fee increase

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58% Temp £166.8m

(42% of net fees)

£230.1m

(58% of net fees)

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

Six months ended 31 December 2015 Average Closing Australian $ 2.1219 2.0261 Euro € 1.3894 1.3573 Impact of a one cent change per annum Net fees Op profit Australian $ +/- £0.6m +/- £0.2m Euro € +/- £1.8m +/- £0.6m

Key FX rates and sensitivities

• FX rates at 19 February 2016: £1 / AUD2.0042; £1 / €1.2917
• If current rates of exchange were to remain unchanged for the remainder of the financial year,

the impact on the full year reported operating profit performance would be c.£7m negative.

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STRENGTH OF OUR BUSINESS MODEL DRIVES MATERIAL PROFIT LEVERAGE AND SUPERIOR CONVERSION RATE

10

INCREMENTAL FEE TO PROFIT DROP- THROUGH (LFL)

Long-term industry norm of 30%-40%* in previous growth cycles We continue to expect 40%-50%* drop-through over the medium-term assuming a normal growth rate** FY16 drop-through will be below 40%* if UK trading remains at current levels

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EXPECT MATERIAL 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.

FY 15 H1 16

Medium-term guidance

GROUP CONVERSION RATE

Conversion rate up 330bps in the last two years, driven by:

• Significant increase in UK profit
• Strong trading in EMEA (ex-Germany)leading to

strong increase in profit and leverage H1 16 H1 15 H1 14 Conversion Rate 51%*

40%*

Taxation

Underlying effective tax rate 31.0% 33.5%

DECREASE IN ‘ETR’ TO 31.0% DRIVEN BY INCREASE IN UK PROFITS AND REDUCTION IN THE NUMBER OF COUNTRIES GENERATING TAX LOSSES

Finance charge and taxation

Six months ended 31 December

2015 £m 2014 £m

Finance charge

Net interest charge on debt (1.3) (2.4) IAS 19 pension charge (non-cash) (1.9) (1.5) Interest unwind of discount on Acquisition Liability (0.5)

• PPF levy

(0.2) (0.3) Net finance charge (3.9) (4.2)

• We expect the net finance charge for the year ending 30 June 2016 to be c.£7.5 million
• Continued improvement in UK and smaller country profits reduces the Group effective tax rate to 31.0%
• Effective tax rate guidance for the year ending 30 June 2016 of 31.0%

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10% INCREASE IN EARNINGS PER SHARE

Basic earnings per share (EPS)

* Number of shares used for basic EPS calculation purposes excludes shares held in the Hays Employee Share Trust.

Six months ended 31 December 2015 2014 Change Basic earnings £56.9m £51.4m 11% Weighted average number of shares* 1,425m 1,414m Basic earnings per share 3.99p 3.64p 10% Memo Shares in issue* at 31 December 2015 and 22 February 2016 1,432m

Basic EPS 11 10 12 5.19p** 3.25p** H1 12 7.72p H2 12 H1 13 5.19p 5.47p H1 16 3.99p 3.64p 3.80p H2 15 H1 15

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CASH PERFORMANCE

£86.3m £17.1m £(69.5)m £(19.6)m £(1.5)m £12.8m

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 £33.9m (H1 15: £78.5m) Cash from operations H1 13 £162.2m

Capex guidance for FY16 is c.£15m and depreciation & amortisation guidance is c.£23m

£78.1m £97.3m £78.5m H1 15 H1 16 H1 14 £59.9m £33.9m

Pensions £7.2m Other £(3.9)m Capex £8.0m Dividend £26.9m

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Increased net debt £(25.4)m

£m 31 Dec 2015 30 June 2015 Goodwill & intangibles 228.8 228.2 Property, plant & equipment 18.0 15.6 Net deferred tax 36.3 36.4 Net working capital* 193.4 121.8 Tax liabilities (20.1) (19.5) Retirement benefit obligations (82.7) (58.7) Acquisition Liabilities (9.7) (8.6) Provisions (14.8) (14.9) 349.2 300.3 Net debt (56.1) (30.7) Net assets 293.1 269.6

BALANCE SHEET REMAINS STRONG

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.

Increase primarily due to a decrease in the discount rate and a decrease in asset values, partially offset by Company contributions and a decrease in the inflation rate RETIREMENT BENEFITS

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Increase due in part to the unwind of the c.£20m inflow we delivered at the end of FY15 as well as timing of cash-flows and the mix of growth in the half, most notably growth in our relatively working-capital intensive Germany temp and contractor businesses NET WORKING CAPITAL

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WE CONTINUE TO TARGET A NET CASH POSITION

** Covenant ratios are shown on a pro-forma basis for 12 months ended 31 December 2015, and exclude exceptional items.

Closing net debt £m

Free cash flow* H1 13 £111.8m £52.7m £62.2m

* Free cash flow is defined as cash flow before dividends, pension scheme deficit funding, capital expenditure, acquisitions and exceptional items.

H1 16 £12.8m H1 14 H1 15 £56.3m £40.2m Jun 15 Dec 13 Dec 15 Jun 14 Dec 14 105.2 56.1 30.7 62.7

NET DEBT DOWN £23M YEAR-ON-YEAR Material reduction expected in H2 16 £210M RENEWED BANK FACILITY IN PLACE expires April 2020 NET DEBT / EBITDA RATIO: 0.3X** debt covenant: < 2.5 EBITDA / INTEREST RATIO: 53.2X** debt covenant: > 4.0

79.2

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INTERIM DIVIDEND INCREASED BY 5% VERSUS PRIOR YEAR

• 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 0.91p, 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 net cash position in the region of £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 5 April and the ex-dividend date is 3 March 2016

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

FINANCIAL SUMMARY

STRONG OPERATING LEVERAGE DRIVES OPERATING PROFIT UP 15%*

• Excellent operating profit performance underpinned by selective headcount investment,

improved consultant productivity in certain markets & largely automated back office systems

• Superb 93%* of UK net fee growth converted into operating profit

CONVERSION RATE UP 50bps; STRONG BALANCE SHEET; DIVIDEND INCREASE

• Sector-leading conversion rate increased to 21.7%
• Modest increase in net debt due to higher working capital outflow
• Interim dividend increased by 5%

8%* GROWTH IN GROUP NET FEES, DRIVEN BY OUR EUROPE BUSINESSES

• Strong net fee growth of 12%* and a record first half net fee performance in Germany
• Both the UK&I and Australia grew 3%* in an increasingly uncertain market environment

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• 2. OPERATING REVIEW

ALISTAIR COX CHIEF EXECUTIVE

WE CONTINUE TO MAKE SIGNIFICANT OPERATIONAL PROGRESS

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

• 40%* drop through of net fees into operating profits
• EBIT growth c.2x rate of net fee growth**
• Continued improvement in conversion rate, up 50bps
• Consultant headcount up 10%
• Consultant productivity up 1% in the UK
• Rapid investment in Germany, Asia and USA

We remain focussed on… Results…

* Conversion of incremental net fees into operating profit, on a like-for-like basis. ** LFL (‘like-for-like’) growth represents organic growth at constant currency.

• Further rapid expansion of US network
• Contractor business reaching real scale

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AUSTRALIA MIXED BUT BROADLY STABLE; FURTHER GOOD PERFORMANCE IN ASIA OVERALL

Australia & NZ (net fees: £63.7m; operating profit: £20.4m) Net fee growth of 3%*, driven by Perm up 7%* Growth led by C&P up 8%*, public sector up 19%* Private sector down 3%* New South Wales & Victoria up 14%* Western Australia remained tough, down 36%* Consultant headcount up 3% year-on-year Asia (net fees: £20.7m; operating profit: £2.8m) Net fees up 7%*, strong operating profit growth of 14%* Record first half net fees and profits in Japan; 16%* net fee growth in China Consultant headcount up 17% year-on-year Headline APAC net fees

LFL* growth 6m to 31 Dec 2015

* 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 2015 closing numbers versus 31 Dec 2014 closing numbers.

APAC

10 11 £146m £210m £242m

Net Fees £84.4m +4% Op Profit £23.2m +6% Conversion rate 27.5% (10bp) Consultants** 1,232 +8%

H1 16 £84m H2 15 H1 15 £88m £91m

48%

Perm

52%

Temp

21%

• f net

fees

£ £ %

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Germany (net fees: £84.6m) Strong net fee growth of 12%*; Operating profit growth of 7%* Net fees in core IT & Engineering businesses up 12%* Strong growth in newer specialisms: A&F +16%*, C&P +9%* Rapid investment: Consultant headcount +18% year-on-year Rest of the division (net fees: £88.5m) Strong net fee growth of 17%*, driven by excellent performance in Europe, with net fees up 21%* France delivered a record H1 performance, with fees up 14%* 14 other countries grew by over 10%*, with 12 records Excellent profit leverage, with profit up £3.6m*

STRONG GROWTH IN GERMANY; EXCELLENT NET FEE AND PROFIT PERFORMANCE IN REST OF DIVISION

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 2015 closing numbers versus 31 Dec 2014 closing numbers. Consultant headcount has been restated to include 149 resource analysts previously not reported as consultants in Germany and Switzerland.

CE&RoW

10 11 £220m £267m H1 13 £140m £134m £133m H1 15 £157m H2 15 H1 16 £157m £173m LFL* growth 6m to 31 Dec 2015

Net Fees £173.1m +14% Op Profit £37.8m +17% Conversion rate 21.8% (60bp) Consultants** 3,015 +16% 37%

Perm

63%

Temp

44%

• f net

fees

£ £ %

RoW

21

FURTHER EXCELLENT OPERATING PROFIT LEVERAGE DESPITE SLOWING RATES OF FEE GROWTH

Headline UK&I 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 2015 closing numbers versus 31 Dec 2014 closing numbers.

UK & IRELAND

10 11 12 £244m £242m £225m

93%* drop-through of incremental net fees into op. profit Net fees up £4.6m*, operating profit up £4.3m*, driven by productivity gains, cost control and automated back office Perm net fees up 4%*, Temp net fees up 3%* Public sector net fees up 1%*: 29% of UK&I net fees Conditions became more challenging in the public sector as the half progressed Public sector A&F down 14%*, C&P down 8%* Private sector net fees up 4%*: 71% of UK&I net fees More solid conditions, however increased macro uncertainties impacting sentiment in sectors like manufacturing Private sector A&F up 2%*, C&P up 10%* Overall consultant headcount up 2% year-on-year

H1 16 £139m £137m £135m H2 15 H1 15 LFL* growth 6m to 31 Dec 2015

Net Fees £139.4m +3% Op Profit £25.3m +20% Conversion rate 18.1% +250bp Consultants** 2,207 +2% 44%

Perm

56%

Temp

35%

• f net

fees

£ £ %

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2018 ASPIRATIONS: WE REMAIN ON TRACK AFTER 2 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 CERoW & 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.

** Retranslation of local currency aspirations outlined in November 2013 taking the average rate of the period 01/01/16 to 19/02/16 and assumingclosing rate holds for the remainder of FY16.

FY18 ORIGINAL FX FY 2015 HY 2016

13 17

Australia & NZ (£m) Operating Profit*

51 59 68 ASSUMED 5YR NET FEE CAGR: +1% to +5%

FY 2015 HY 2016 FY18 SPOT FX**

20 44

FY18 ORIGINAL FX

60 70 80

UK & Ireland (£m) Operating Profit*

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

FY 2015 FY18 OBJECTIVE HY 2016

21 25

Germany (£m) Operating Profit*

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

FY18 SPOT FX**

76 90 103

FY 2015 HY 2016 FY18 ORIGINAL FX

31 60 85 100 115

FY18 SPOT FX**

22 31 40 46 32 29 23

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• 3. STRATEGY UPDATE

ALISTAIR COX CHIEF EXECUTIVE

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

OUR KEY STRATEGIC PRIORITIES ARE WELL ESTABLISHED

• 3. BUILD CRITICAL MASS AND SCALE ACROSS OUR GLOBAL PLATFORM
• 1. ASPIRATION TO MATERIALLY INCREASE AND DIVERSIFY GROUP 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 WAY

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• 4. CONTINUE TO SEARCH FOR WAYS TO IMPROVE EFFICIENCY AND EFFECTIVENESS

A PRIORITISED PIPELINE OF OPPORTUNITIES TO BUILD SCALE

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

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Further increase in UK productivity, up 1%, and targeted investment to drive growth:

• Germany +18%: focused on SME market
• USA +23%: to build further scale, launch C&P
• Asia +17%: to drive growth

£397m £28m +8% +15% 40%

DROP THROUGH

c.2x

RATIO

FEE GROWTH*

£86m 21.7%

CONV. RATE

PROFIT GROWTH*

£11m

TO UP* TO UP*

CONSULTANT HEADCOUNT

+10%

PROFIT LEVERAGE IS A KEY COMPONENT OF GROWING THE BUSINESS

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

Driving efficiencies across an established network Global network of 33 countries in place since 2012 OneTouch system fully implemented since 2010 Tight cost control globally on all overhead costs Largely automated back office lowers marginal cost per transaction Taking rapid actions on costs where market conditions deteriorate

BACK-OFFICE COSTS REDUCED; EFFICIENCIES IMPROVED CAPITALISING ON SCALE DRIVES DRIVES

Balancing productivity growth with investment Leveraging automated systems and economies of scale

27

GOOD PROGRESS IN THE US: FOCUS ON BUILDING SCALE

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• CONSULTANT HEADCOUNT INCREASED 23% SINCE ACQUISITION, TO

182

• 13TH US OFFICE OPENED IN DENVER IN NOVEMBER 2015
• ONETOUCH FRONT OFFICE SYSTEM FULLY IMPLEMENTED
• LAUNCHED C&P SPECIALISM, NOW 22 CONSULTANTS IN 4 OFFICES
• TRADING BROADLY IN LINE WITH EXPECTATIONS FOR H1, STRONG

START TO H2 US MARKET REPRESENTS MASSIVE LONG-TERM OPPORTUNITY; FOCUS REMAINS ON BUILDING SCALE

OUR CONTRACTOR BUSINESSES ARE REACHING CRITICAL MASS OUTSIDE OF OUR CORE MARKETS

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Group ex-UK/Germany/ANZ*

Perm Temp

78% 66% 22% 34% 2011 Today 32%

Canada

25%

Switzerland Belgium

53%

Netherlands USA

67%

France

64% 81%

Japan

16%

Temp/Contractor business as % of net fees

66%

* Percentage of net fees.

WE ARE INVESTING IN NEW TOOLS TO FURTHER IMPROVE OUR EFFECTIVENESS AND EFFICIENCY

2. RESPONDING TO EVOLVING ROUTES TO MARKET 1. BUILDING STRATEGIC RELATIONSHIPS 3. UNDERSTANDING DATA TO DRIVE PERFORMANCE

• LinkedIn
• Google
• SEEK etc…
• Mobile capabilities
• Social engagement
• Global Corporate Accounts offering
• Fast, reliable MI to drive decision making
• Data analytics team established

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4. EQUIPPING CONSULTANTS WITH THE BEST TOOLS IN THE INDUSTRY

• Training & development
• OneTouch global database
• Multiple productivity tools

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• 3. SIGNIFICANT FURTHER PROGRESS AGAINST OUR STRATEGIC & OPERATIONAL GOALS
• 1. STRONG OPERATING PROFIT GROWTH AND PROFIT LEVERAGE
• 2. ON TRACK TO DELIVER OUR 2018 ASPIRATION TO BROADLY DOUBLE GROUP PROFITS

A STRONG FIRST HALF PERFORMANCE; DELIVERING ON OUR PROMISES AND STRATEGICALLY ON-TRACK

• 4. CURRENT TRADING

ALISTAIR COX CHIEF EXECUTIVE

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

Current trading conditions by region

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APAC UK&I CE & RoW

Conditions remain uncertain, notably in the public sector markets Return to work in line with expectations but 4% lower than PY. Private sector flat, public sector 10% down, but stable versus pre-Christmas levels Slightly lower activity levels in Perm at the start of the second half In Australia conditions remain mixed but sequentially stable Solid growth in NSW & Victoria, tough but broadly stable in Western Australia Return to work solid Growth in Asia remains good overall Strong growth in Germany and the rest of Europe Return to work in Germany has been good Strong start to the second half in the US; Canada and Brazil tough

We expect the timing of Easter this year, net of the positive impact of the extra leap-year day, to reduce net fee growth in Q3 by c.2%, with a commensurate increase expected in Q4.

QUESTIONS & ANSWERS

• 5. APPENDICES

36

1.0 H1 2016 RESULTS SUPPORTING INFORMATION

Six months ended 31 December

2015 £m 2014 £m LFL growth* Germany 31.3 32.3 7% Rest of CE&RoW (23 countries) 12.3 8.5 44% CE&RoW Central Costs (5.8) (5.6) (2)% CE&RoW Operating Profit 37.8 35.2 17%

FURTHER 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 7%* and maintained an

excellent conversion rate of 37%

• An excellent performance elsewhere in CE&RoW where we took advantage
• f supportive market conditions, invested in consultant headcount and

delivered leverage and strong profit growth

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LIKE-FOR-LIKE SUMMARY

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

Six months ended 31 December

2014 £m Acquisition £m FX impact £m Organic £m 2015 £m LFL* growth Net fees Asia Pacific 91.4

• (10.2)

3.2 84.4 4% Continental Europe & RoW 157.4 9.7 (14.2) 20.2 173.1 14% United Kingdom & Ireland 135.1

• (0.3)

4.6 139.4 3% 383.9 9.7 (24.7) 28.0 396.9 8% Operating profit Asia Pacific 25.2

• (3.4)

1.4 23.2 6% Continental Europe & RoW 35.2 0.5 (3.3) 5.4 37.8 17% United Kingdom & Ireland 21.1

• (0.1) 4.3

25.3 20% 81.5 0.5 (6.8) 11.1 86.3 15%

38

H1 FY16 v H2 FY15: ANALYSIS BY DIVISION

* LFL (‘like-for-like’) growth is organic growth at constant currency. Note: H2 15 is the period from 1 January 2015 to 30 June 2015. H1 16 is the period from 1 July 2015 to 31 December 2015.

Net fee growth (LFL*) versus same period last year Q3 15 Q4 15 H2 15 Q1 16 Q2 16 H1 16 Asia Pacific 9% 8% 9% 6% 1% 4% Continental Europe & RoW 8% 9% 9% 11% 16% 14% United Kingdom & Ireland 8% 9% 9% 6% 1% 3% Operating profit growth (LFL*) versus same period last year Asia Pacific 7% 6% Continental Europe & RoW 15% 17% United Kingdom & Ireland 52% 20% Conversion rate (%)

• perating profit as % of net fees

Asia Pacific 28.1% 27.5% Continental Europe & RoW 21.4% 21.8% United Kingdom & Ireland 18.0% 18.1%

39

Relative size Country / sub region (ranked by net fees) Net fee growth (LFL*) # of offices # of consultants Germany 12% 14 1,201** France 14% 17 334 Benelux 25% 14 230 Canada (4)% 8 121 Switzerland 20% 4 107** Poland 34% 6 202 Other*** 17% 39 820 102 3,015

CONTINENTAL EUROPE & ROW PERFORMANCE BY COUNTRY

(16 countries)

* Percentages represent LFL (‘like-for-like’) growth which is organic growth at constant currency for 6m ended 31 December 2015 versus 6m ended 31 December 2014. ** Consultant headcount has been restated to include 149 resource analysts previously not reported as consultants in Germany and Switzerland. *** 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 Dec 2015 As at June 2015 Change since June 2015 As at Dec 2014 Change since Dec 2014 Asia Pacific 1,232 1,195 3% 1,142 8% Continental Europe & RoW* 3,015 2,715 11% 2,593 16% United Kingdom & Ireland 2,207 2,203

• 2,155

2% Group* 6,454 6,113 6% 5,890 10%

41

* Consultant headcount has been restated to include 149 resource analysts 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)* 31 Dec 2015 Asia Pacific 45 3 48 Continental Europe & RoW 96 6 102 United Kingdom & Ireland 99 (1) 98 Total 240 8 248

42

TRADING DAYS

Number of trading days* H1 H2 Year Year ended 30 June 2015 129 124 253 Year ending 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 million 36 million

CV’S RECEIVED INTERVIEWS PER MONTH

10 million 40k to 45k

PERM PLACEMENTS

63,000

TEMP ASSIGNMENTS

200,000

WORLDWIDE IN FY15 WE FILLED OVER 1,000 JOBS EVERY WORKING DAY FY15 STATISTICS

44

45

2.0 THE HAYS BUSINESS MODEL & STRATEGY FOR GROWTH

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

46

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

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

47

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 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 Chile 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

48

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 2016

11

20

2002 2016

10

49

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* 93 5 33 4 1 4 1 3 2 14 17 10 3 1 5 2 1 1 4 1 1 1 6 1 4 3 1 2 1 1 1 8 13 248

33 COUNTRIES 20 SPECIALISMS

* Office numbers as at December 2015.

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

51

• 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

52

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

53

~75% 83% ~85% 21% 19% 58% ~25% 17% ~15% 44% 16% 42% 35% 16% 8% 8% 33%

A BALANCED PORTFOLIO

Net Fees by type*

* Indicative purposes only based on information for the 6 months ended December 2015. ** Major specialisms within Other include: Banking Related (9%), Life Sciences (5%), Education (4%) and Sales & Marketing (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

54

Office Sup. Engineering

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 HY16)

ESTABLISHED:

>70% penetration

38% of Group net fees +3% LFL net fee growth

DEVELOPING:

>30-70% penetration

24% of Group net fees +6% LFL net fee growth

EMBRYONIC:

<10% penetration

5% of Group net fees +12% LFL net fee growth

EMERGING:

10-30% penetration

33% of Group net fees +14% LFL net fee growth

UK & Ireland (35%) Australia & NZ (16%) France, Netherlands, Canada (8%) Japan, China, Malaysia (3%) Latin America, Russia, India (2%) Germany (21%) Other CE&RoW (10%)

BALANCED BUSINESS MODEL: WELL DIVERSIFIED IN STRUCTURAL AND CYCLICAL MARKETS

USA (3%)

55

41% 51% 8%

Net fees HY16 £396.9m

Information Technology Life Sciences Office Support Candidate shortages Clients investing

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

Energy Financial Markets Short term challenges Long term opportunity

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

Accountancy & Finance Construction & Property Engineering Education Sales & Marketing Mixed conditions but opportunities available

Selective investment Maintain position

* Represents LFL (‘like-for-like’) growth rates in the 6 months to 31 December 2015. Listed specialisms are examples only and are not exhaustive.

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

56

Asia

Hays HY16 Net Fees by geography

0% 100% Group net fees

Temp Perm

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

88%

62% 44% 35% 11% 89% 65% 56% 38%

12%

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

57

58

3.0 DIVISIONAL PROFILES

68% 9% 7% 6%

Australia Japan New Zealand China Singapore (5%) Hong Kong (4%) Malaysia (1%)

#1 market position*

Temp : Perm Private : Public sector

Net fees: £84.4m Operating profit: £23.2m Conversion rate: 27.5% Countries: 7 Consultants: 1,232 Offices: 48

Note: Private:Public sector and Temp:Perm split is based on net fees for 6 months ended 31 December 2015. * Market position is based on Hays estimates.

Diverse sector exposure Asia structural opportunity

ASIA PACIFIC REPRESENTS 21% OF GROUP NET FEES WITH AUSTRALIA REPRESENTING 68% OF DIVISIONAL NET FEES

52% 48% 74% 26%

22% 14% 11% 11% 5% 4% 33%

• Const. & Property
• Account. & Finance

Office Support IT Sales & Marketing HR Other

59

Net fees by specialism Net fees by country 6 months ended 31 December 2015

PROFILE OF HAYS AUSTRALIA & NEW ZEALAND TEMP 65% PERM 35% 16% GROUP NET FEES 776 CONSULTANTS 37 OFFICES

Net fees by specialism Net fees by region

Construction & Property

• Acc. &

Finance Office Support IT

Res & Mining*

Other

28% 15% 13% 10% 4% 30%

£64m £20m 32%

NSW Victoria Q’land

WA

Other

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

NZ

Note: All data is presented as of 31 December 2015. * Includes Oil & Gas and Energy.

60

NET FEES EBIT

• CONV. RATE

Half Year ended 31 December 2015

HISTORIC PROFILE OF HAYS AUSTRALIA & NEW ZEALAND

81 44 45 64 87 72 49 60 163 139 138 179 210 182 129 135 1,090 773 704 722 843 815 706 658 FY08 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY15 FY14 FY13 FY12 FY11 FY10 FY09 50 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 67.

61

49% 11% 7% 7% 5% 4% 17%

Germany France USA Benelux Switzerland Canada Other

32% 18% 12% 9% 7% 4% 18%

IT Engineering

• Account. & Finance
• Const. & Property

Life Sciences Sales & Marketing Other

Net fees: £173.1m Operating profit: £37.8m Conversion rate: 21.8% Countries: 24 Consultants: 3,015 Offices: 102

Note: Private:Public sector and Temp:Perm split is based on net fees for 6 months ended 31 December 2015.

Structurally developing markets Focused on core specialisms Broad coverage

CONTINENTAL EUROPE & RoW REPRESENTS 44% OF GROUP NET FEES AND 44% 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 96% 4%

62

6 months ended 31 December 2015

PROFILE OF HAYS GERMANY

63

TEMP 89% PERM 11% 21% GROUP NET FEES 1,201CONSULTANTS 14 OFFICES

Net fees by specialism Net fees by contract type

Note: All data is presented as of 31 December 2015.

IT Engineering Other 41% 31% 28% Contracting Temp Perm 64% 25% 11%

£85m £31m 37%

NET FEES EBIT

• CONV. RATE

Half Year ended 31 December 2015

HISTORIC PROFILE OF HAYS GERMANY

FY consultant headcount* Historic Conversion Rates Historic headline net fees (£m) Historic headline operating profit (£m)

FY08 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY15 FY14 FY13 FY12 FY11 FY10 FY09 63 158 164 150 136 106 80 88 24 60 62 58 52 38 26 36 452 1088 966 943 804 695 540 509 38 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 67. * Consultant headcount has been restated to include 149 resource analysts previously not reported as consultants in Germany and Switzerland.

64

21% 20% 11% 10% 9% 9% 20%

• Account. & Finance
• Const. & Property

Office Support Education Banking & Fin. Serv. IT Other

37% 25% 18% 10% 7%3%

London North & Scotland Midlands & E.Anglia Home Counties South West & Wales Ireland

Net fees by specialism Net fees by region

Net fees: £139.4m Operating profit: £25.3m Conversion rate: 18.1% Consultants: 2,207 Offices: 98

Note: Private:Public sector and Temp:Perm split is based on net fees for 6 months ended 31 December 2015. * Market position is based on Hays estimates.

#1 market position* Diverse sector exposure Nationwide coverage

UK & IRELAND REPRESENTS 35% OF GROUP NET FEES

Temp : Perm Private : Public sector 56% 44% 71% 29%

65

6 months ended 31 December 2015

HISTORIC PROFILE OF HAYS UK & IRELAND

137 46 26 6 (7) 4 11 64 246 222 225 242 244 331 453 3,128 2,203 2,157 1,929 1,934 2,158 2,272 2,315 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY08 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY15 FY14 FY13 FY12 FY11 FY10 FY09 30 17 11 3 (3) 1 5 19

FY consultant headcount Historic Conversion Rates Historic headline net fees (£m) Historic headline operating profit (£m)

£ £

FY15 272

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

66

LOCAL CURRENCY – HAYS NET FEES AND OPERATING PROFIT

182 83 80 98 134 116 88 130 365 263 245 274 323 293 232 293 86 208 197 182 161 124 91 103 FY08 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY15 FY14 FY13 FY12 FY11 FY10 FY09 33 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)

67

FURTHER INFORMATION

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