PRELIMINARY RESULTS Year ended 30 June 2016 CAUTIONARY STATEMENT - - PowerPoint PPT Presentation

PRELIMINARY RESULTS

Year ended 30 June 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

STRONG GROUP FINANCIAL PERFORMANCE

Net fees Operating profit**

£ 128.1m £ 125.5m £140.3m £ 724.9m £ 734.0m £ 719.0m

Basic earnings per share

5.47p 5.14p 7.44p 8.48p 6.13p

Net fees £810.3m 7% increase* EPS 8.48p 14% increase Operating profit £181.0m 13% increase*

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

£164.1m £181.0m FY 13 FY 14 FY 15 FY 16 FY 12 £810.3m £ 764.2m

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FY 13 FY 14 FY 15 FY 16 FY 12 FY 13 FY 14 FY 15 FY 16 FY 12

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

STRONG GROUP FINANCIAL PERFORMANCE

Income statement**

Year ended 30 June 2016 £m 2015 £m Actual growth LFL* growth Turnover 4,231.4 3,842.8 10% 12% Net fees 810.3 764.2 6% 7% Operating profit 181.0 164.1 10% 13% Net finance cost (8.0) (8.0) Profit before tax 173.0 156.1 11% Tax (51.9) (50.7) Profit after tax 121.1 105.4 15%

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

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EXCHANGE RATE MOVEMENTS DECREASED NET FEES AND OPERATING PROFIT BY £16.4 MILLION AND £4.5 MILLION RESPECTIVELY

Net Fees £362.5m 15%* Op Profit £78.7m 16%* Strong 13%* net fee growth in Germany to £175.1m Rest of division grew 17%*, with 11 countries growing by over 20%*, and delivered a material increase in profit of £5.7m*

STRONG PROFIT LEVERAGE; INCREASED CONVERSION RATE** TO 22.3%

Asia Pacific Performance by region Continental Europe & RoW

22%

• f net

fees

45%

• f net

fees

Net Fees £176.1m 4%* Op Profit £50.2m 8%* 4%* growth in Australia & NZ led by excellent public sector up 18%*;

• perating profit up 8%*

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

United Kingdom & Ireland

33%

• f net

fees

Net Fees £271.7m 0%* Op Profit £52.1m 14%* Trading conditions became more challengingas theyear progressed Excellent operating leverage with profit up 14%* due to further productivity improvements and strong cost control

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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 IN BOTH PERM AND TEMP NET FEES

Permanent placement business

£340.4m

(42% of net fees)

Temporary placement business

£469.9m

(58% of net fees)

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

Review of Group Permanent and Temporary Businesses*

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

49% Temp 52% Temp Split of net fees FY 15 FY 14 58% Temp 59% Temp FY 16 Increase in volumes of 5% as client demand remained strong, especially in Germany Mix/hours worked increased 4% Underlying Temp margin** down by 20bps, primarily in ANZ Volumes increased by 6% driven by improved client and candidate confidence with significant growth in Europe Average Perm fee up 1% primarily as a result of salary inflation

7% net fee growth 5% volume increase 4% increase in mix/hours (20) bps underlying margin decrease** 7% net fee growth 6% volume increase 1% average Perm fee increase

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58% Temp

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

Year ended 30 June 2016 Average Closing Australian $ 2.0392 1.7877 Euro € 1.3373 1.1989 Impact of a one cent change per annum Net fees Op profit Australian $ +/- £0.8m +/- £0.3m Euro € +/- £2.5m +/- £0.8m

Key FX rates and sensitivities

• FX rates at 30 August 2016: £1 / AUD1.7421; £1 / €1.1744
• Retranslating the Group’s full year operating profit at current exchange rates would

increase the actual result by c.£26m from £181.0m to c.£207m

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17.5% 19.4% 21.5%

22.3%

WE CONTINUE TO DRIVE MATERIAL PROFIT LEVERAGE AND SUPERIOR CONVERSION RATE

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INCREMENTAL FEE TO PROFIT DROP- THROUGH (LFL)

Long-term industry norm of 30%-40%* in previous growth cycles Drop-through* of 51% in FY14-FY16 We expect a 40%-50%* drop-through over the medium-term assuming a normal growth rate** Current UK market uncertainty makes any guidance difficult for FY17

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

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

FY14 FY16

Medium-term guidance

GROUP CONVERSION RATE

Sector-leading conversion rate of 22.3%, up 480bps in the last three years, driven by:

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

to strong increase in profit and leverage FY16 FY15 FY13 Conversion Rate 68%*

40%*

FY15 51%* FY14

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Taxation

Underlying effective tax rate 30.0% 32.5%

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

Finance charge and taxation

Year ended 30 June

2016 £m 2015 £m

Finance charge

Net interest charge on debt (2.9) (4.1) Interest unwind of discount on Acquisition Liability (0.9) (0.4) IAS 19 pension charge (non-cash) (3.9) (3.0) PPF levy (0.3) (0.5) Net finance charge (8.0) (8.0)

• We expect the net finance charge for the year ending 30 June 2017 to be c.£7 million
• Material improvement in UK and smaller country profits reduces the Group effective tax rate to 30.0%
• The Group’s effective tax rate for the year to June 2017 will be driven by the mix of profits generated during the
• year. We currently expect the rate to be between 30% and 35%

14% INCREASE IN EARNINGS PER SHARE

Basic earnings per share (EPS)

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

Year ended 30 June 2016 2015 Change Basic earnings £121.1m £105.4m 15% Weighted average number of shares* 1,428.4m 1,416.4m Basic earnings per share 8.48p 7.44p 14% Memo Shares in issue* at 30 June 2016 and 30 August 2016 1,433m

Basic EPS 11 10 12 5.19p** 3.25p** H1 12 7.72p H2 12 H1 13 5.19p 5.47p FY 16 8.48p 6.13p 7.44p FY 15 FY 14

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GOOD UNDERLYING CASH PERFORMANCE

£181.0m £32.6m £(54.3)m £(41.7)m £(3.6)m £114.0m

Operating profit to free cash flow conversion Uses of cash flow

Operating profit Non-cash items Working capital Tax paid Interest paid Free cash flow Operating cash flow £159.3m (FY15: £189.8m) Cash from operations H1 13 £162.2m

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

£78.1m £97.3m £189.8m FY 15 FY 16 FY 14 £175.6m £159.3m

Decreased net debt £67.5m Capex £14.9m Pensions £14.4m

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Dividend £39.9m

FX translation gain* £21.2m

Other (£1.5m)

£20m FY15 year-end unwind

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

£m 30 June 2016 30 June 2015 Goodwill & intangibles 242.0 228.2 Property, plant & equipment 19.8 15.6 Net deferred tax 23.9 36.4 Net working capital* 190.6 121.8 Derivative financial instruments 6.6

• Tax liabilities

(27.1) (19.5) Retirement benefit obligations (14.3) (58.7) Acquisition Liabilities (11.2) (8.6) Provisions (9.3) (14.9) 421.0 300.3 Net cash/(debt) 36.8 (30.7) Net assets 457.8 269.6

STRONGEST BALANCE SHEET FOR MANY YEARS

Balance sheet analysis

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

Good underlying working capital management with debtor days at 37 Increase due to expansion of Temp/Contracting business, FX and c.£20m reversal of PY favourable year-end phasing Increase due to FX impact on Goodwill GOODWILL & INTANGIBLES NET WORKING CAPITAL Decrease primarily due to an increase in asset values, a decrease in the inflation rate, favourable experience changes following the 2015 actuarial revaluation and company contributions, partially offset by a decrease in the discount rate RETIREMENT BENEFITS

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

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

Closing net cash/(net debt) £m

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

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

FY 16 £114.0m FY 14 FY 15 £141.0m £108.4m Jun 15 Jun 12 Jun 16 Jun 13 Jun 14 (132.9) 36.8 (30.7) (105.2)

NET DEBT ELIMINATED FY16 ended with net cash of £36.8m £210M BANK FACILITY IN PLACE expires April 2020 EBITDA / INTEREST RATIO: 60X** debt covenant: > 4.0 NET DEBT / EBITDA RATIO: N/A debt covenant: < 2.5

(62.7)

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

• Core dividend should be sustainable, progressive and appropriate
• Target core dividend cover of 2.0x to 3.0x Group EPS
• Increase of 5% in full year dividend to 2.90p per share
• Cash cost of proposed FY16 dividend £41.7m, with cover of 2.9x

EXCESS CASH RETURNS POLICY FREE CASH FLOW PRIORITIES CORE DIVIDEND POLICY

• We will build a net cash position of c.£50m
• Assuming a positive outlook, any free cash flow 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 final dividend will be paid, subject to shareholder approval, on 11 November 2016 to shareholders on the register on 14 October 2016

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

FINANCIAL SUMMARY

STRONG 13%* GROWTH IN OPERATING PROFIT

• Excellent UK operating leverage, driven by further productivity improvements and

strong cost control

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

GOOD UNDERLYING CASH PERFORMANCE; NET DEBT ELIMINATED

• 88% conversion of operating profit to operating cash flow
• Year-end net cash position of £36.8m
• Dividend increased by 5% to 2.90p as we build cover towards 3x

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

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

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• 2. OPERATING REVIEW

ALISTAIR COX CHIEF EXECUTIVE

WE CONTINUE TO MAKE SIGNIFICANT OPERATIONAL PROGRESS

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

• Sector-leading Conversion Rate up 80bps to 22.3%
• Elimination of net debt: a significant milestone
• Excellent UK profit performance, despite flat fees*
• Average consultant headcount up 6%
• Further productivity improvement incl +2%* in the UK
• Invested to grow headcount in 22 countries

We remain focussed on… Latest results…

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

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

proceed well

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Net Fees £176.1m +4% Op Profit £50.2m +8% Conversion rate 28.5% 70bp Consultants** 1,210 1%

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

Australia & NZ (net fees: £133.6m; operating profit: £44.0m) Net fees up 4%*, operating profit up 8%* Perm net fees up 5%*, Temp net fees up 4%* Further solid growth in NSW & Victoria. ACT delivered excellent growth of 21%, driven by public sector. Resources- driven states tough but sequentially stable in Q4 Consultant headcount up 5% year-on-year to capitalise on continued market improvement Asia (net fees: £42.5m; operating profit: £6.2m) Net fees up 4%*, operating profit up 10%* Record performance in China, Hong Kong & Japan Solid overall performance despite more challenging conditions in banking-focused markets of HK and Singapore Consultant headcount down 6%, with investment in China

• ffset by targeted reductions elsewhere through H2

Headline APAC net fees

LFL* growth Year to 30 June 2016

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

APAC

10 11 £146m £210m £242m FY 16 £176m FY 15 FY 14 £179m £174m

48%

Perm

52%

Temp

22%

• f net

fees

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Germany (net fees: £175.1m) Strong net fee growth of 13%*, profits up £4.8m* to £63.2m Strong growth in core IT & Engineering, representing 73% of

• ur German business, with net fees up 12%*

Faster growth in newer specialisms, with A&F up 16%*, and Perm up 24%* Significant consultant headcount investment up 11% Back office automation project on track to complete in FY17 Rest of the division (net fees: £187.4m) Excellent net fee growth of 17%* and profit up £5.7m* :

• 11 countries grew by 20%* or more, 15 all-time records

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

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

Headline CE&RoW net fees

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

CE&RoW

10 11 £168m £220m £267m H1 13 £140m £134m £133m FY 14 £305m FY 15 FY 16 £314m £363m LFL* growth Year to 30 June 2016

38%

Perm

62%

Temp

45%

• f net

fees

RoW

Net Fees £362.5m +15% Op Profit £78.7m +16% Conversion rate 21.7% (20)bp Consultants** 3,034 12%

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Net Fees £271.7m 0% Op Profit £52.1m +14% Conversion rate 19.2% +240bp Consultants** 2,024 (8%)

EXCELLENT PROFIT LEVERAGE DESPITE SLOWING GROWTH & INCREASED UNCERTAINTY IN H2

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 30 June 2016 closing number versus 30 June 2015 closing number.

UK & IRELAND

10 11 12 £244m £242m £225m

Material improvement in operating profit Net fees flat* at £271.7m, operating profit increased 14%* via 2% productivity improvement and strong cost control Private sector net fees up 2%*: 72% of UK&I net fees Public sector net fees down 4%*: 28% of UK&I net fees Increased concern over economic outlook negatively impacted market confidence, especially in H2 Solid performances in IT, up 3%* and Office Support, up 6%*. Net fees in A&F and C&P were flat* London ex-City grew 11%, with mid-single digit growth in Scotland, the North and the Midlands. Our City business was down 3%, with a tough banking market Consultant headcount down 8%, mainly in H1, and emphasis

• n increasing consultant productivity

FY 16 £272m £272m £246m FY 15 FY 14 LFL* growth Year to 30 June 2016

43%

Perm

57%

Temp

33%

• f net

fees

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2018 ASPIRATIONS: IN LINE WITH EXPECTATIONS AFTER 3 YEARS

Other Countries (£m) Operating Profit*

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

* Nothing in this presentation should be construed as a profit forecast. There is no certainty over timing or probability of achieving these objectives and they are dependent on a variety

• f assumptions and factors both Hays specific and otherwise. The 2018 Operating Profit ranges are after Group central cost allocation but before allocation of CERoW & Asia Pac

divisional overheads (assumed to be £15m per annum) and assume constant rates of exchange as of 30 September 2013. All reported profit numbers are shown on a headline basis. ** Spot rate as at 30 August 2016. *** At original FX rates (30 September 2013).

FY 2013 FY 2016

12 37

Australia & NZ (£m) Operating Profit*

60 70 80

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

FY 2013 FY 2016 FY18 OBJECTIVE***

44 64

FY16 AT SPOT RATE**

53

UK & Ireland (£m) Operating Profit*

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

FY 2013 FY18 OBJECTIVE FY 2016

6 52

Germany (£m) Operating Profit*

ASSUMED 5YR NET FEE CAGR: +7% to +12% 85 100 115

FY 2013 FY 2016

63 58 25 35 45

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FY18 OBJECTIVE*** FY16 AT SPOT RATE** FY18 OBJECTIVE*** FY16 AT SPOT RATE**

44 73

• 3. STRATEGY UPDATE

ALISTAIR COX CHIEF EXECUTIVE

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

REMINDER OF OUR KEY STRATEGIC PRIORITIES

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• 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

A PRIORITISED PIPELINE OF OPPORTUNITIES TO BUILD SCALE

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GERMANY UK AUSTRALIA 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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THE VEREDUS ACQUISITION HAS GIVEN US A MATERIAL PRESENCE IN THE U.S., THE WORLD’S BIGGEST RECRUITMENT MARKET

Headcount up 13% including 13 international transfers into the US IT Contracting introduced into legacy Hays offices, including NYC Further investment into C&P business New office opened in Denver Record Temp levels and record Perm net fees in the year Hays OneTouch system implemented Accelerate expansion of IT specialism Extend and invest in C&P business Further investment to grow Perm Explore opportunities for network expansion e.g. West Coast, new specialisms (e.g. A&F) Continue to leverage cross-border account relationships into and out of the US Ramp up recruitment/training resources

ACHIEVEMENTS TO DATE FUTURE FOCUS

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

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Group ex-UK/Germany/ANZ*

Perm Temp & Contracting

78% 66% 22% 33% 2011 Today 32%

Canada

26%

Switzerland Belgium

53%

Netherlands USA

64%

France

65% 81%

Japan

17%

Temp/Contractor business as % of net fees

67%

* Percentage of net fees.

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

THE CONTRACTOR BUSINESS PRESENTS CLEAR STRUCTURAL GROWTH OPPORTUNITIES & BUILDS FURTHER DEFENSIVENESS INTO OUR MODEL

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Significant barriers to entry

Why Contracting is a key focus

Clear structural growth Resilience to the cycle Compliance/regulatory complexities Scalable systems/processes: Payroll, credit control, etc. Local candidate attraction networks/databases Contracting becoming the “new perm” in many skilled jobs markets More skilled candidates choosing to build careers on a flexible, project basis Legislative changes opening up market Existing Hays expertise Less volatile, greater reliability/visibility of earnings World-class businesses in Germany to export best practice to new markets Decades of expertise tough to replicate

1 2 3 4

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

• Teams established in Data Analytics &

Digital Marketing

• Algorithms built to analyse multiple

databases, both internal and external

• Significant insights available around

candidate/client intentions to change jobs/recruit

• Enables faster delivery of high quality short-

lists to clients and more focussed business development

• Enhanced client and candidate experience

Using data to increase productivity Building mutually beneficial data collaborations

SEEK is Australia’s largest

• nline jobs marketplace

c.90% of Australia’s white collar population covered by the Hays / SEEK combined database Hays consultants can access real time info on candidates registered on SEEK (subject to permissions) Positive results in terms of improved productivity, job fill rates & candidate engagement

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• 3. FURTHER PROGRESS AGAINST OUR STRATEGIC & OPERATIONAL GOALS
• 1. STRONG OPERATING PROFIT PERFORMANCE, ELIMINATION OF GROUP NET DEBT
• 2. ON TRACK IN TERMS OF OUR 2018 PLAN, BUT WITH UK UNCERTAINTIES AHEAD

IDEALLY POSITIONED TO CAPITALISE ON GROWTH OPPORTUNITIES & MANAGE THROUGH UNCERTAINTIES

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

• 4. CURRENT TRADING

ALISTAIR COX CHIEF EXECUTIVE

SOLID GROWTH OVERALL WITH SUPPORTIVE CONDITIONS IN MOST MARKETS AND TOUGH BUT BROADLY STABLE TRADING CONDITIONS IN THE UK

Current trading conditions by region

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APAC UK&I

UK market is tough but broadly sequentially stable We saw a step down in Perm activity immediately after the EU Referendum, but since then activity levels have been broadly stable In Temp, activity levels have remained broadly at pre-referendum levels Too early to determine if these trends will continue beyond the summer period Continue to see good levels of growth in Australia overall, as market confidence continues to recover gradually Strong growth in public sector and solid growth in private sector In Asia, banking-exposed markets remain subdued Growth remains strong overall, albeit against tough comparators In Germany and France we continue to see strong growth and in the rest of Europe and the Americas, conditions remain strong in most markets To date, we have seen no evidence of contagion into Europe following the

• utcome of the EU Referendum

CE & RoW

• 5. QUESTIONS & ANSWERS

• 6. APPENDICIES

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1.0 FY 2016 RESULTS SUPPORTING INFORMATION

Year ended 30 June

2016 £m 2015 £m LFL growth* Germany 63.2 59.5 8% Rest of CE&RoW (23 countries) 28.3 21.5 29% CE&RoW Central Costs (12.8) (12.3) 4% CE&RoW Operating Profit 78.7 68.7 16%

MATERIAL INCREASE IN CE&RoW (EX-GERMANY) 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 8%* despite significant

investment in headcount and maintained an excellent conversion rate of 36%

• An excellent performance elsewhere in CE&RoW where market conditions

were strong and we invested in headcount while controlling our cost base

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LIKE-FOR-LIKE SUMMARY

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

Year ended 30 June

2015 £m Acquisition £m FX impact £m Organic £m 2016 £m LFL* growth Net fees Asia Pacific 178.5

• (9.4)

7.0 176.1 4% Continental Europe & RoW 313.8 9.7 (6.9) 45.9 362.5 15% United Kingdom & Ireland 271.9

• (0.1)

(0.1) 271.7 0% 764.2 9.7 (16.4) 52.8 810.3 7% Operating profit Asia Pacific 49.7

• (3.4)

3.9 50.2 8% Continental Europe & RoW 68.7 0.5 (1.1) 10.6 78.7 16% United Kingdom & Ireland 45.7

• 6.4

52.1 14% 164.1 0.5 (4.5) 20.9 181.0 13%

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H2 FY16 v H1 FY16: ANALYSIS BY DIVISION

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

Net fee growth (LFL*) versus same period last year Q1 16 Q2 16 H1 16 Q3 16 Q4 16 H2 16 FY 16 Asia Pacific 6% 1% 4% 3% 4% 4% 4% Continental Europe & RoW 11% 16% 14% 11% 21% 16% 15% United Kingdom & Ireland 6% 1% 3% (3)% (4)% (3)% 0% Operating profit growth (LFL*) versus same period last year Asia Pacific 6% 10% 8% Continental Europe & RoW 17% 14% 16% United Kingdom & Ireland 20% 9% 14% Conversion rate (%)*

• perating profit as % of net fees

Asia Pacific 27.5% 29.4% 28.5% Continental Europe & RoW 21.8% 21.6% 21.7% United Kingdom & Ireland 18.1% 20.3% 19.2%

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Relative size Country / sub region (ranked by net fees) Net Fees Net fee growth (LFL*) # of offices # of consultants Germany £175.1m 13% 17 1,213 France £41.7m 17% 17 327 Benelux £27.9m 24% 12 235 USA £25.8m 15% 13 167 Switzerland £18.3m 19% 4 114 Canada £14.0m 0% 8 112 Other** (16 countries) £59.7m 19% 32 866 103 3,034

CONTINENTAL EUROPE & ROW PERFORMANCE BY COUNTRY

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

40

CONSULTANT HEADCOUNT

Change in headcount As at June 2016 As at Dec 2015 Change since Dec 2015 As at June 2015 Change since June 2015 Asia Pacific 1,210 1,232 (2%) 1,195 1% Continental Europe & RoW* 3,034 3,015 1% 2,715 12% United Kingdom & Ireland 2,024 2,207 (8%) 2,203 (8%) Group 6,268 6,454 (3%) 6,113 3%

41

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

OFFICE NETWORK

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

Number of offices 30 June 2015 Opened/ (Closed)* 30 Jun 2016 Asia Pacific 45 4 49 Continental Europe & RoW 96 7 103 United Kingdom & Ireland 99 1 100 Total 240 12 252

42

TRADING DAYS

Number of trading days* H1 H2 Year Year ended 30 June 2015 129 124 253 Year ended 30 June 2016 129 125 254 Year ending 30 June 2017 128 125 253

* UK only.

43

THE SCALE AND SCOPE OF OUR BUSINESS IS UNIQUE

LINKEDIN FOLLOWERS HITS ON HAYS WEBSITES

1.4 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

44

45

2.0 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

46

A PROVEN TRACK RECORD OF ORGANIC GROWTH

New country & specialism entries

33 COUNTRIES 20 SPECIALISMS

Pre 1990 Early 1990s Late 1990s 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Brazil China, HK Organic Acquisition A&F C&P 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 Chile 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 Colombia 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* 95 5 33 4 1 4 1 4 2 17 17 8 3 1 5 2 1 1 4 1 1 1 6 1 4 3 1 2 1 1 1 8 13 252

33 COUNTRIES 20 SPECIALISMS

* Office numbers as at June 2016.

50

… and leverages the Group to economic improvement

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

… a resilient financial performance in tougher economic times… …delivers the best solutions for clients & candidates… … the best people, sector leading 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% 22% 20% 58% ~25% 17% ~15% 45% 15% 42% 33% 15% 8% 8% 34%

A BALANCED PORTFOLIO

Net Fees by type*

* Indicative purposes only based on information for the 12 months ended June 2016. ** Major specialisms within Other include: Banking Related (7%), Life Sciences (5%), Sales & Marketing (4%) and Education (3%).

Spot Recruitment contracts Public sector Private sector Top 40 30,000 customers Other** Accountancy & Finance Construction & Property IT Temp Perm APAC CE&RoW UK&I Office Sup. Engineering

54

HK, Singapore (2%)

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

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

ESTABLISHED:

>70% penetration

36% of Group net fees +1% LFL net fee growth

DEVELOPING:

>30-70% penetration

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

EMBRYONIC:

<10% penetration

5% of Group net fees +10% LFL net fee growth

EMERGING:

10-30% penetration

35% of Group net fees +14% LFL net fee growth

UK & Ireland (33%) Australia & NZ (16%) France, Netherlands, Canada (8%) Japan, China, Malaysia (3%) Latin America, Russia, India (2%) Germany (22%) Other CE&RoW (11%)

BALANCED BUSINESS MODEL: WELL DIVERSIFIED IN STRUCTURAL AND CYCLICAL MARKETS

USA (3%)

55

38% 54% 8%

Net fees FY16 £810.3m

Information Technology Life Sciences Sales & Marketing Candidate shortages Clients investing

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

Banking Resources & Mining Short term challenges Long term opportunity

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

Accountancy& Finance Construction & Property Engineering Mixed conditions but opportunities available

Selective investment Maintain position

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

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

56

Asia

Hays FY16 Net Fees by geography

0% 100% Group net fees

Temp Perm

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

89%

62% 43% 35% 12% 88% 65% 57% 38%

11%

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

57

58

3.0 DIVISIONAL PROFILES

#1 market position*

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

Net fees: £176.1m Operating profit: £50.2m Conversion rate: 28.5% Countries: 7 Consultants: 1,210 Offices: 49

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

Diverse sector exposure Asia structural opportunity

Net fees by specialism Net fees by country

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

52% 48% 74% 26%

21% 14% 11% 11% 11% 6% 4% 22%

• Const. & Property
• Account. & Finance

Office Support IT Banking Sales & Marketing HR Other

69% 9% 7% 6%

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

59

Net fees: £362.5m Operating profit: £78.7m Conversion rate: 21.7% Countries: 24 Consultants: 3,034 Offices: 103

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

Structurally developing markets Focused on core specialisms Broad coverage

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

Temp : Perm Private : Public sector 62% 38% Net fees by specialism Net fees by country Net fees by specialism Net fees by country 97% 3%

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

IT Engineering

• Account. & Finance
• Const. & Property

Life Sciences Sales & Marketing Other

48% 11% 8% 7% 5% 4% 17%

Germany France Benelux USA Switzerland Canada Other

60

Net fees by specialism Net fees by region

Net fees: £271.7m Operating profit: £52.1m Conversion rate: 19.2% Consultants: 2,024 Offices: 100

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

#1 market position* Diverse sector exposure Nationwide coverage

UK & IRELAND REPRESENTS 33% OF GROUP NET FEES

Temp : Perm Private : Public sector 57% 43% 72% 28%

21% 19% 11% 10% 9% 9% 21%

• Account. & Finance
• Const. & Property

Office Support Education IT Banking & Fin. Serv. Other

35% 25% 17% 11% 9% 3%

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

61

PROFILE OF HAYS AUSTRALIA & NEW ZEALAND TEMP 65% PERM 35% 16% GROUP NET FEES 812 CONSULTANTS 37 OFFICES

Net fees by specialism Net fees by region

Construction & Property

• Acc. &

Finance Office Support IT Other

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

£134m £44m 33%

NSW Victoria ACT

Q’land

Other

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

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

NET FEES EBIT

• CONV. RATE

Year ended 30 June 2016

62

Banking

Res & Mining*

4%

HISTORIC PROFILE OF HAYS AUSTRALIA & NEW ZEALAND

44 44 45 64 87 72 49 60 134 139 138 179 210 182 129 135 812 773 704 722 843 815 706 658 FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY16 FY15 FY14 FY13 FY12 FY11 FY10 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 67.

63

PROFILE OF HAYS GERMANY TEMP 88% PERM 12% 22% GROUP NET FEES 1,213 CONSULTANTS 17 OFFICES

Net fees by specialism Net fees by contract type

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

IT Engineering 42% 31% 11% Contracting Temp Perm 64% 24% 12%

£175m £63m 36%

NET FEES EBIT

• CONV. RATE

Year ended 30 June 2016

64 Other

• Acc. &

Finance

16%

HISTORIC PROFILE OF HAYS GERMANY

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

175 158 164 150 136 106 80 88 63 60 62 58 52 38 26 36 1,213 942 828 804 702 606 452 437 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 67. * Consultant headcount has been restated to include resourcers previously not reported as consultants.

65

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

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.

66

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

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)

67

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

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