Table of Contents - Gateway

Transcription

CompetitiveIntelligenceDossier
Table of Contents
Experis Competitors
Brunel International.........................1
Kforce Inc. ...............................5
Korn/Ferry. . . . . . . . . . . . . . . . . . . . . . . . .11
Michael Page.............................17
On Assignment, Inc.......................24
Resources Global Professionals...............30
Robert Walters..........................35
For Internal Use Only
Current as of: March 2012
For more information, contact: [email protected]
Brunel International
At-A-Glance
Brunel
International
Revenue ($M): 1,364
Net Income ($M): 60
Market Cap as of Dec
31, 2011 ($M): 746
Gross Profit: 19.8%
Countries: 37
Offices: 92
Employees: 8,320
ManpowerGroup1
Revenue ($M): 22,006
Net Income ($M): 252
31, 2011 ($M): 2,857
ROIC: 10.1%
Gross Profit: 16.8%
Countries: 80
Offices: 3,800
Employees: 31,000
Company Overview
Since its incorporation in 1975, Brunel has developed into an international group with
more than 8,000 employees and annual revenue of $1,364 in 2011. Brunel operates
from an international network of 92 branch offices in over 37 countries.
Brunel International NV is listed on Euronext Amsterdam NV and included in the
Amsterdam Midkap Index (AMX). Mr. J. Brand, company founder, owns or controls
63 percent of the company stock.
Professional Specialization (secondary reporting segments):
• Engineering (26.8% of revenue)
• Energy (63%)
• ICT (6.4%)
Key Executives
Drs. J.A. (Jan Arie) van Barneveld, RA, CEO
Robert van der Hoek, CFO
Board of Directors
Drs. A. (Aat) Schouwenaar, Chair
Drs. J.C.M. (Maarten) Schonfeld
Ir. D. (Daan) van Doorn
Proforma net income =
267.8M and ROIC = 10.8%
1
Global Footprint
The Americas:
Brazil, Canada, United
States
Europe:
Asia Pacific:
Middle East & Africa:
Denmark, France, Germany, Italy,
Kazakhstan, Netherlands, Norway,
Poland, Russia, Spain, UK
Australia, China, India,
Indonesia, Japan,
Malaysia, New Zealand,
Papa New Guinea,
Philippines, Singapore,
South Korea, Thailand
Abu Dhabi, Angola,
Cameroon, Chad,
Dubai, Iraq, Kuwait,
Libya, Nigeria, Qatar,
United Arab Emirates
For Internal Use Only
Go-to-Market Strategy
www.brunel.net Euronext: BRNL
Mission
To be a leader in specific segments of the international labor market An authority in
the field of national and international recruitment, Brunel has the ability to identify
developments quickly and help businesses to participate in them swiftly.
Business Strategy
Brunel distinguishes itself from its competitors by providing recruitment and
resourcing services and solutions that enhance efficiency and add value to its
clients’ businesses. Brunel takes a global approach to workforce integration and,
as such, operates through local offices with international reach and networks. This
strategy is in line with the worldwide market requirements and the expansion of our
clients’ needs.
• Superior services—Brunel’s strategy is based on providing superior services
to both its clients and its employees. Its success primarily depends on
the degree to which it is capable of conducting core business... finding,
selecting and supervising the right specialist(s) for clients.
• Quality—The quality of its account and recruitment management
is crucial. Aspects such as industry-specific knowledge, proactive
interest in client’s business and transparent communication on
running projects are, ultimately, the building blocks for long-term
relationships with clients and Brunel’s specialists.
• Solutions—Account management and recruitment are pivotal
elements in the process. They help the company map out the
demands of clients and candidates, and gives shape to the
solutions that are in the interests of both.
Business Services
Brunel provides services in the flexible deployment of professionals
in Engineering, IT, Legal, Finance, Insurance & Banking, and Oil &
Gas. Brunel provides such specialists by means of various staffing,
project management, recruitment, and consultancy services.
It serves the market from two main perspectives:
• Brunel focuses its services on specific supra-regional business
areas such as the worldwide oil and gas industries, and the
international automotive, rail, aerospace, telecom and pharmacy
sectors.
• It also focuses primarily on specific countries; these include the
Netherlands, Germany, Belgium and Canada.
For Internal Use Only - 2
Brunel Competitive Intelligence Dossier
• Next to reporting a gross profit below expectation, overhead costs also exceeded analysts’ forecasts.
• Solid reputation in the oil and gas industry would allow them to extend their geographic reach across other professional staffing verticals.
• Closely held nature of the ownership allows them to operate with less shareholder pressure for short term performance.
Threats
Weaknesses
• Brunel Energy is a high growth entity with a strong market position in the oil and gas industry.
• Strong gross margins in excess of 35 percent for both Brunel Netherlands and Brunel Germany.
• Separate sales, client service and recruiting management and operating structures across five industry lines for Brunel Netherlands.
Opportunities
Strengths
SWOT Analysis
• Vulnerable to acquisition should that suit the needs of the dominant shareholder.
ManpowerGroup Sales
Insights
How do you sell against Brunel?
Let us know at [email protected]!
Executive Leadership Changes
•
Last May, Brunel announced that Hans Eric Jansen had stepped down as a member of the organization’s
supervisory board after 12 years of service – 11 as chair. Jansen was succeeded by Aat Schouwenaar as
chair. At the same time, Brunel also announced that J.C.Maarteen Schonfeld had been appointed as a
member of the supervisory board for a period of four years.
Financial Summary
Revenue
Dollars in
Millions
Gross Profit
YOY Grow th %
1,500
40%
+35.9%
% = Variance
1,364
1,300
350
1,100
33%
+27.4%
1,051
900
1,030
-2.4%
957
3%
2007
2008
2009
2010
2011
-5%
140
21%
70
19%
0
2007
2008
% = Variance
+12.6%
+29.0%
161
2009
2010
2011
18%
Average Stock Price
% of GP
160
22%
202
187
SG&A
Dollars in
Millions
200
+0.1%
212
10%
500
300
24%
269
-9.1%
246
210
18%
795
700
+22.5%
25%
+3.4%
25%
% = Variance
280
+23.2%
GP %
Dollars in Millions
-2.8%
+7.5%
149
152
179
80%
Dollars
40.00
76%
30.00
120
38.52
35.00
72%
117
33.36
30.48
25.00
20.00
80
68%
40
64%
0
60%
20.75
22.42
15.00
10.00
5.00
2007
2008
2010
Operating Profit
Dollars in
Millions
125
2009
2011
0.00
2007
2008
2009
2011
P/E Ratio
(1)
OP %
30
10.0%
% = Variance
27.1
25
100
2010
+21.2%
+72.4%
91
90
75
63
50
20
6.0%
-27.4%
70
8.0%
17.4
15
-17.3%
4.0%
50
10
25
2.0%
12.4
10.3
5
4.3
0
2007
2008
2009
2010
2011
(1) EBITA detail not available.
0.0%
0
2007
2008
2009
2010
2011
Kforce
At-A-Glance
Kforce
Revenue ($M): 1,111
Net Income ($M): 27
31, 2011 ($M): 467
ROIC: 10.3%
Gross Profit: 31.2%
Countries: 2
Offices: 65
Employees: 1,900
ManpowerGroup1
31, 2011 ($M): 2,857
ROIC: 10.1%
Gross Profit: 16.8%
Countries: 80
Offices: 3,800
Employees: 31,000
267.8M and ROIC = 10.8%
1
Company Overview
Kforce Inc., an abbreviation of The KnowledgeForce®, is a professional staffing firm
providing temporary, permanent and project solutions in the specialty areas of:
Technology, Finance and Accounting, Clinical Research, Health Information
Management and Government Solutions. The company’s staffing services include
flexible staffing services (Flex) and search services (Search). Through its Flex service,
Kforce provides clients with qualified individuals/consultants on a temporary basis.
Its Search business involves locating qualified individuals (candidates) for permanent
placement with clients, some of which are sourced from its Flex consultant
population. In addition, they provide outsourcing solutions internationally through its
Kforce Global Solutions, Inc. subsidiary in the Philippines.
Financial Reporting Segments:
•
•
•
•
Information Technology Finance and Accounting
Health and Life Sciences
Government Solutions
Key Executives
Board of Directors:
David L. Dunkel, Chairman and CEO
Peter M. Alonso, Chief Talent Officer
Michael R. Blackman, Chief Corporate Development Officer
Mike Ettore, Chief Services Officer
SAM! Farrell, Chief Sales Officer
Joseph J. Liberatore, EVP and Chief Financial Officer
Randy Marmon, Chief Customer Development Officer
William L. Sanders, President
Howard W. Sutter, Vice Chairman and VP, Mergers and Acquisitions
David L. Dunkel, Chair
John Allred
W.R. Carey, Jr.
Richard M. Cocchiaro
Mark Furlong
Patrick D. Moneymaker
Elaine D. Rosen
Howard W. Sutter
Ralph E. Struzziero
Gordon Tunstall
Global Footprint
The Americas:
Asia Pacific:
U.S.
(63 offices in 41 markets)
Philippines (2 locations)
www.kforce.com NASDAQ: KFRC
Vision
To be the firm most respected by those we serve.
Mission
Deliver the right match with exceptional service.
Values
•
•
•
•
•
•
Respect
Integrity
Trust
Exceptional Service
Commitment & Fun
Stewardship & Community
Kforce Competitive Intelligence Dossier
Lines of Business
•
•
•
•
•
Technology
Finance & Accounting
Healthcare
Government Solutions
Outsourcing Solutions
Specialty Brands
•
•
•
OnStaff Group – Title & Escrow, Mortgage, Banking & Credit Union, Professional Administrative,
Insurance
Kforce Outsourcing – IT offshoring complete with a Program Management Office for the two Philippines
locations
Kforce Clinical Research - Includes staff and clinical research outsourcing
Operating for more than a decade, Kforce Global Solutions has provided outsourcing solutions to companies
in a wide range of industries by increasing efficiencies, streamlining processes and targeting strategic
business objectives, while at the same time reducing the costs associated with developing and maintaining
systems and support.
The company believes that its expertise and national/international access to human capital enables it to
perform as an integrated team, providing its clients with seamless delivery of timely, high quality services and
operational enablers.
Business Strategy
The key elements of Kforce’s business strategy include the following:
•
•
•
•
•
Retain its Great People – A significant focus of Kforce is on the retention of its most tenured and
productive associates.
Continue to Optimize National Recruiting Center (NRC) – The company believes that its centralized
NRC, which identifies and interviews active candidates from nationally contracted job boards, offers
Kforce a significant competitive advantage. It believes that the NRC is particularly effective at meeting
the demands of its Strategic Account clients as well as other demands for high volume staffing. The
NRC primarily supports its Tech and FA segments but is also expanding its support of the Health & Life
Sciences (HLS) segment.
Focus on Strategic Accounts – A focus of Kforce’s is on cultivating relationships with large clients, both in
terms of annual revenues and geographic dispersion. For each of its Strategic Accounts, Kforce assigns
a strategic account executive who is responsible for managing all aspects of the client relationship.
Encourage Employee Achievement – Kforce has an intense focus on promoting and maintaining a
quality-focused, results-oriented culture. Its field associates and corporate personnel are given incentives
(which include competitions with significant prizes, incentive trips and internal recognition, in addition to
bonuses) to encourage achievement of Kforce’s corporate goals and high levels of service.
Focus on Value-Added Services – Focus on providing specialty staffing services and solutions to clients.
The placement of highly skilled personnel requires operational and technical skill to effectively recruit and
evaluate personnel, match them to client needs, and manage the resulting relationships. Kforce believes
this strategy will serve to balance its desire for optimal volume, rate, effort and duration of assignment,
while ultimately maximizing the benefit for clients, consultants and the firm.
•
•
•
Build Long-Term, Consultative Relationships – Develop long-term relationships with clients by repeatedly
providing solutions to their specialty staffing requirements. Kforce strives to differentiate itself by working
closely with clients to understand their needs and maximize their return on human assets. It believes this
ability enables Kforce to emphasize consultative rather than just transactional client relationships, with the
intent of expanding its share of its client’s staffing needs.
Achieve Extensive Client Penetration – Its client development process focuses on contacts with client
employees responsible for staffing decisions. Contacts are made within functional departments and
at different organizational levels within client companies. Associates are trained to develop a thorough
understanding of each client’s total staffing requirements in order to expand Kforce’s share of its clients’
staffing needs.
Recruit High-Quality Consultants – Kforce places great emphasis on recruiting qualified consultants. The
company believes it has a recruiting advantage over its competitors who it feels lack the ability to offer
candidates flexible and permanent opportunities. Its strategy is to frequently place candidates seeking
permanent employment in flexible assignments until a permanent position becomes available, as well as
convert temporary candidates into permanent employees at client companies.
Threats
Opportunities
Weaknesses Strengths
SWOT Analysis
• Service delivery is vertically focused; strongest in IT
• National recruiting center
• Fared better than other competitors during the recent economic downturn; little to no debt on balance
sheet - the technology and F&A segments continue to be strong for Kforce
• Kforce’s many acquisitions have helped revenue growth, but has also hindered opportunities for consistent
profitability.
• Kforce has agreed to sell its clinical research business for $50M in cash to inVentiv Health Inc. due to
the changing landscape in the Pharma industry This group accounted for 9.5 percent of Kforce’s 2011
revenue.
• The Government Solutions sector of Kforce’s business has shrunk from 12.6 percent of revenue in 2009 to
8.3 percent in 2011.
• Further expansion of centralized recruiting model
• Recent capital improvements for back office efficiency
•
•
•
•
Delay to market with new innovative enhancements
Continued public sector decline
Continued volatility in operating margins
Recruiting practices may not always be in alignment with client wishes (not respecting do not call
requests)
ManpowerGroup Sales
Insights
How do you sell against Kforce?
•
Kforce Government Solutions has announced William Turner as its SVP and strategic development officer.
Turner joins Kforce Government Solutions with over 20 years of experience in both the government and
commercial sectors.
• Turner has extensive management and capture experience supporting the U.S. Department of State,
United Nations, Coalition, NATO, and European and African Commands
• As a member of the KGS executive leadership team, he will develop and implement strategic plans
that guide initiatives central to immediate and long term business growth for KGS: including market
development strategies, market positioning strategies, industry relations and alliances, internal
company efficiencies and M&A assistance.
Acquisition Activity
•
Kforce Inc. announced mid-March of this year that it is selling its Kforce Clinical Research Inc. division to
inVentiv Health Inc. for $50 million in cash. The deal is expected to close by the end of the month. InVentiv,
a provider of clinical services and staffing, has more than 13,000 employees in 40 countries. It is owned by
inVentiv Group Holdings Inc., an organization affiliated with Thomas H. Lee Partners LP, a Boston-based
private equity firm.
• In the 10-K, once client, representing 50 percent of Kforce’s revenue in this space, had informed the
company of its intentions to move its business elsewhere prior to the sale announcement.
Operational Updates
•
Kforce continues to stay very vertical focused in service delivery: specializing in IT, accounting and
healthcare. Each vertical has dedicated recruiters and sales specialist.
Competitive Insights
•
•
•
KForce is an aggressive competitor when it comes to pricing. We see pricing 5-7 percent lower than
Manpower; often are in National Accounts not much competition in SMB business.
Kforce employs a high cost/high touch model. The company has historically been good at what it does;
however, it is late to embrace the cost efficient solutions that customers are looking for in today’s market.
In the Asia Pacific market, we have encountered them in some of our IT clients. In the industry, however,
Kforce is sometimes mistaken for KSearch, local firm with more visibility.
Financial Summary
Revenue
Dollars in
Millions
1,300
YOY Growth %
% = Variance
+12.1%
1,140
+2.5%
980
+8.9%
-8.7%
997
973
660
500
2007 (1)
2008
2010
240
5.0%
300
GP %
38.0%
% = Variance
+10.9%
-2.1%
352
345
-17.0%
255
346
34.8%
33.2%
-5.0%
100
31.6%
0
2007 (1)
2008
2009
2010
30.0%
2011
Average Stock Price
+11.5%
-12.5%
312
200
Dollars
15.00
14.10
13.67
292
+9.2%
36.4%
0.0%
90.0%
+5.1%
278
400
% of GP
% = Variance
320
10.0%
-10.0%
2011
SG&A
Dollars in
Millions
400
2009
500
286
910
820
15.0%
1,111
991
Gross Profit
Dollars in
Millions
+5.9%
87.0%
13.66
13.00
302
271
84.0%
11.00
9.89
160
81.0%
9.00
80
78.0%
7.00
75.0%
5.00
0
2007
(1)
2008
2009
2010
2011
(2)
8.64
2007
2008
EBITA %
2011
40
8.0%
100
% = Variance
75
2010
P/E Ratio
EBITA
Dollars in
Millions
2009
36.8
6.5%
74
30
31.7
-29.1%
50
53
+37.2%
-42.2%
2007
(1)
2008
2009
2010
5.0%
20
3.5%
10
45
17.6
30
25
0
42
+6.7%
2011
(2)
2.0%
0
14.5
11.2
2007
2008
2009
2010
2011
NOTE: On March 19, 2012, Kforce announced the sale of its Clinical Research division to inVentiv Health Inc. for $50M. This division posted revenue of $106.2 million in 2011.
(1) 2007 results were restated for the impact of discontinued operations.
(2) Intangible amortization not available for 2011 and is included within the SG&A and EBITA results above. For Internal Use Only - 10
Korn/Ferry
At-A-Glance
Korn/Ferry
Revenue ($M): 776
31, 2011 ($M): 973
ROIC: 9.5%
Countries: 43
Offices: 76
Employees: 2,400
ManpowerGroup1
31, 2011 ($M): 2,857
ROIC: 10.1%
Gross Profit: 16.8%
Countries: 80
Offices: 3,800
Employees: 31,000
267.8M and ROIC = 10.8%
1
Company Overview
Founded in 1969 with a vision to establish a company focused on delivering
leadership to leading organizations around the world, Korn/Ferry has established
itself as a world leader in executive recruitment and talent management. Korn/
Ferry’s services range from executive recruitment to corporate governance and
CEO recruitment, outsourced recruiting, management assessment, and executive
coaching and development. It has nearly 80 offices in 43 countries in the Americas,
Asia Pacific, Europe, the Middle East and Africa.
•North America (54% of revenue)
•Europe (24%)
•Asia Pacific (16%)
•Latin America (6%)
Key Executives:
Board of Directors:
Gary D. Burnison, CEO
Dan Demeter, CIO
Michael Distefano, CMO
Robert Rozek, CFO
Ana Dutra, CEO, Leadership and Talent Consulting
Byrne Mulrooney, CEO Futurestep
Don Spetner, EVP, Corporate Affairs
Linda Hoffman, EVP Global HR
Brian Suh, SVP Corporate Development
Robert McNaab, EVP
Robert A. Damon, President, North America
Charle Tseng, President, Asia Pacific
Bernard S. Zen-Ruffinen, President, EMEA
Kenneth Whipple, Chair
Gary D. Burnison
Baroness Kingsmill CBE
Edward D. Miller
Debra J. Perry
George T. Shaheen
Gerhard Schulmeyer
Harry L. You
Richard L. Antoine
Global Footprint
The Americas:
Europe, Middle East and Africa:
Asia Pacific:
U.S., Canada, Mexico,
Argentina, Brazil, Ecuador,
Chile, Colombia, Peru,
Venezuela
Austria, Belgium, Denmark, Finland,
France, Germany, Greece, Hungary,
Italy, Morocco, the Netherlands,
Norway, Poland, Russia, South
Africa, Spain, Sweden, Switzerland,
Turkey, Ukraine, UAE, UK
Australia, China, Hong Kong,
India, Indonesia, Japan, Korea,
Singapore, Taiwan
www.kornferry.com
NYSE: KFY
Vision
Be the premier global provider of talent management solutions.
Mission
Enhance the lives of our clients, candidates, and colleagues
by delivering unsurpassed leadership and talent solutions.
Areas of Expertise
By industry:
• Consumer
• Industrial
• Financial
• Life Sciences
• Technology
• Healthcare Services
By Function or Specialty
• Financial Officers
• Marketing
• Board & CEO Services
• Government
• Nonprofits and Associations
• Corporate Affairs and Sustainability
• Human Resources
• Supply Chain Management
• Diversity
• Information Technology Officer
• Education
• Legal
Korn/Ferry Competitive Intelligence Dossier
Solutions
•
Executive Recruitment – Korn/Ferry’s largest business: focuses on recruiting board-level, chief executive
and other senior executive positions for clients predominantly in the consumer, financial services, industrial,
life sciences and technology industries. The relationships developed through this business are valuable in
the introduction of complementary service offerings to clients.
• Competency-based framework that provides a clear and common language to help clients identify desired skills and behaviors
• Behavioral mapping tool – Search Assessment – to prospective candidates, providing clients with insights into how they will lead, how they will approach and solve complex problems, what their emotional profile is likely to be and what motivates them to succeed
• Comparing candidates’ assessment results against statistically validated indicators of success, which are customized to reflect the specific requirements of a client’s organizational culture or position
•Futurestep – Extended market reach into middle management with the introduction of Futurestep, its
outsourced and mid-level recruiting subsidiary. Futurestep creates customized, flexible talent acquisition
solutions to meet specific workforce needs of organizations around the world.
• Recruitment Process Outsourcing (RPO) Solutions
• Talent Acquisition and Management Consulting Services
• Project-Based Recruitment
• Mid-Level Recruitment
• Leadership and Talent Consulting (LTC) – Blend of talent management offerings assisting clients with
their ongoing assessment, organizational and leadership development efforts. Services address three
fundamental leadership and talent management needs: strategic and organizational alignment, leadership
and executive development, and talent and performance management. Each of Korn/Ferry’s solutions is
delivered by an experienced team of leadership consultants, a global network of top executive coaches
and the intellectual property of research-based, time-tested leadership assessment and
developmental tools.
Threats
Opportunities
Weaknesses
Strengths
SWOT Analysis
• Specialized offering focused on C-level positions
• Providing comprehensive solutions to clients – from development to management
• Narrow client base; can really target communication and advertising
• Specialization may limit opportunities for business expansion
• Viewed as expensive
• Recent stock performance has been weak which has led some stock analysts to rate the stock as an
attractive buy
• Operates in a business field that is growing in many local markets
• More than half of the company’s revenues are from its North American operations
• Operates with a global strategy only; little tailoring done for local considerations
ManpowerGroup Sales
Insights
How do you sell against Korn/Ferry?
•
•
•
•
•
Robert Rozek has been appointed chief financial officer. Rozek joins Korn/Ferry with over 25 years of
finance experience, having most recently served as executive vice president and chief financial officer at
Cushman & Wakefield. Prior to that, Mr. Rozek held senior leadership positions at Las Vegas Sands Corp.
and Eastman Kodak, and spent five years as a partner with PricewaterhouseCoopers LLP. Rozek succeeds
Mike DiGregorio who plans to pursue other interests.
Korn/Ferry announced that Werner Penk will join the company in April as global market managing director
for technology. Penk, who is based in Europe and brings nearly three decades of market leadership, will
report to Korn/Ferry CEO Gary Burnison and serve on the Firm’s global operating committee. Earlier in his
career, Penk worked for Micrologica AG as chief marketing and sales officer, and as a vice president at
Siemens AG, responsible for the computer systems business in Germany.
Fourth quarter 2011, Korn/Ferry announced the appointment of Chuck Feltz as president of its Lominger
products business. As part of Korn/Ferry Leadership and Talent Consulting, Lominger specializes in
commercializing competency-based talent management methods and tools that support the identification,
differentiation, and development of leadership and talent across organizations. The appointment is effective
immediately.
Also in Q4 2011, the company announced that Richard L. Antoine had joined its global board and became
CEO of its Services Practice as a senior advisor on CEO and c-suite succession planning. Antoine retired
as global head of human resources at Procter & Gamble, where he worked for A.G. Lafley and was a
key advisor to Mr. Lafley and P&G’s board of directors dealing with the company’s executive succession
planning, including the plans and transition from Mr. Lafley to P&G’s current CEO, Bob McDonald.
Korn/Ferry has appointed Charles Yong as country manager for Indonesia and office managing director
of its Jakarta office. Yong is a member of the firm’s Global Industrial Market and has over a decade of
executive search experience, specializing in senior-level assignments in the basic materials and resources
sector, as well as in supply chain management.
Operational Updates
•
One of the world’s only companies to be awarded wholly foreign owned entity (WFOE) status for operations
in Guangzhou and Shanghai.
Financial Summary
Revenue
Dollars in
Millions
1,000
P/E Ratio
YOY Growth %
35.0%
50
23.0%
40
11.0%
30
400
-1.0%
20
200
-13.0%
10
-25.0%
0
% = Variance
+21.2%
800
836
689
600
+29.5%
-19.1%
676
46.3
776
-11.3%
600
31.2
19.0
0
2007
2008
2009
2010
2011
2007
(1)
Operating Profit
Dollars in
Millions
125
OP %
15.0%
% = Variance
100
+11.7%
+388.3%
92
75
88
82
12.0%
9.0%
15.9
12.8
2008
2009
2010
2011
Average Stock Price (3)
Dollars
25.00
22.07
20.00
16.45
15.00
19.11
15.76
12.53
-50.4%
50
6.0%
10.00
46
-60.5%
25
3.0%
18
0
2007
2008
2009 (2)
2010 (2)
2011 (2)
0.0%
5.00
0.00
2007
2008
2009
2010
NOTE: Korn/Ferry’s fiscal year end is April 30th, the financial results in the graphs above are based on the fiscal year end. (1) EBITA detail not available.
(2) 2009 - 2011 exclude the impact of restructuring charges of $41.9M, $20.7M and $2.1M, respectively.
(3) The average stock price is calculated based on the calendar year performance.
2011
Michael Page
At-A-Glance
Michael Page
Revenue ($M): 1,635
Net Income ($M): 91
31, 2011 ($M): 1,697
ROIC: 33.0%
Gross Profit: 54.3%
Company Overview
Michael Page International plc is a specialist recruitment consultancy. Its specialist
areas are accounting, tax and treasury, banking and financial services, consultancy,
strategy and change, engineering and manufacturing, healthcare, human
resources, information technology (IT) and technology, legal, marketing, oil and gas,
procurement and supply chain, property and construction, retail and hospitality,
sales and secretarial. The company’s clients range from multinationals to small and
medium sized business.
Countries: 33
Offices: 161
Employees: 5,300
ManpowerGroup1
Marketing & Sales
Legal & Technology
Engineering & Property
31, 2011 ($M): 2,857
ROIC: 10.1%
Gross Profit: 16.8%
Countries: 80
Offices: 3,800
Employees: 31,000
267.8M and ROIC = 10.8%
1
Key Executives
Stephen J. Ingham, CEO
Andrew Bracey, CFO
Gary James, Regional Managing Director,
Asia Pacific
Alexis De Bretteville, Regional Managing
Director, the Americas
Patrick Hollard, Regional Managing Director,
Latin America
Fabrice Lacombe, Regional Managing
Director, France, Africa and Southern
Europe
Olivier Lemaitre, Regional Managing Director
Oliver Watson, Regional Managing Director
Board of Directors
Robin Buchanan, Chair
Steve Ingham
Ruby McGregor-Smith
Dr Tim Miller
Stephen Puckett
Hubert Reid
Reg Sindall
Global Footprint
The Americas:
EMEA:
Asia Pacific:
Argentina, Brazil, Canada,
Chile, Colombia, Mexico,
U.S.
Austria, Belgium, Eastern Europe,
France, Germany, Ireland, Italy,
Luxembourg, Middle East, the
Netherlands, Poland, Portugal,
South Africa (and the rest of
Africa), Russia, Spain, Sweden,
Switzerland, Turkey, UK
Australia, China, Hong
Kong, India, Japan,
Singapore
www.michaelpageinternational.com LSE: MPI
Branding Highlights — Key Samples
from Website
Pride — We take pride in what we do, we’re proud of the company we
work for and most of all, we’re proud of the people we work with.
Passion — We want to achieve the very best for our clients and
candidates. It’s this passion that drives us to outperform the
competition.
Resilience — Successful consultants are not fazed by difficulty.
They use it to demonstrate their ability.
Teamwork — Working closely with colleagues and clients improves
the quality of decision-making and increases the likelihood
of success.
Fun — Though serious about our work, we’re extremely
sociable and enjoy celebrating our achievements.
Michael Page Competitive Intelligence Dossier
Lines of Business
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Accounting, Tax and Treasury
Actuarial
Consultancy, Strategy and Change
Design
Education
Engineering & Manufacturing
Financial Services and Banking
Health & Social Care Hospitality & Leisure
Human Resources
IT & Technology
Legal
Marketing
Policy
Procurement & Supply Chain
Property & Construction
Retail Sales
Secretarial
Strategic Direction
Michael Page’s strategy is one of organic growth, making a long term investment in diversification, guaranteeing
its resilience to the economic cycle. Geographic and cross-discipline expansion has reduced its dependency
on any one market - with 72 percent of revenue generated outside the UK. Its geographic spread by number of
countries has increased from 4 in 1990 to 32.
The company continues to organically grow existing and new teams, offices, disciplines and countries
through a consistent team and meritocratic culture. Teams worldwide are typically a manager and three
consultants, with the manager assuming full profit and loss responsibility for their teams.
Threats
Opportunities
Weaknesses
Strengths
SWOT Analysis
• Established competitor with extensive historical client portfolio and relationships, and a significant
candidate database. To continue its geographic expansion, new office openings are expected during
the course of 2012.
• Contingency-based fee structure – paid after work/projects are successfully completed.
• Forty-seven percent of gross profit generated in the F&A vertical.
• Highest concentration of permanent recruitment business of ManpowerGroup’s major competitors.
• Eighty percent of revenue is in Europe.
• Operates a discretionary bonus scheme for consultants, which sometimes results in top earners
leaving for the competition.
• Has an old model that hasn’t changed with the market; has been historically slow to move to meet
market changes.
• In MeCA, Michael Page has a large network of prospects; supplemented through candidate
reference.
• Keen to develop their business into the ‘bottom’ end of the market using the Page Personnel brand.
• Fiercely protects margins.
• Operates in 33 countries today; only 10 percent of revenue is in Asia Pacific
• Growing list of clients that are investigating a move to RPO and MSP, which they do not have
experience in – could lose core clients to competitors.
• Selection process isn’t always as rigorous as it should be in some regions.
ManpowerGroup Sales
Insights
How do you sell against Michael Page?
•
•
•
•
Michael Page has appointed Andrew Bracey as its new chief financial officer. Bracey is the former financial
director for Ocado, the largest dedicated online supermarket by turnover in the world.
Charles-Henri Dumon, managing director of Continental Europe and the Americas, has left the board.
Regional managing directors in Europe and the Americas will take on his executive responsibilities, and
report directly to chief executive Steve Ingham.
Brenda Baran was appointed as director of Michael Page’s operations in Argentina and will have the
responsibility for its engineering and manufacturing, supply chain and procurement, sales, marketing, IT
and human resources divisions.
In February, Miguel Carugati assumed responsibilities as director of Page Personnel, interim director of
Page, and director for Michael Page in north Buenos Aires.
Operational Updates
•
•
•
During its annual earnings announcement, Michael Page announced its intention of opening between 1020 new offices across the world. Germany also remains a target for continuing expansion.
Michael Page announced the launch of its Moroccan subsidiary, based in Casablanca. Michael Page
Africa has been providing recruitment solutions for managers and executives in Africa for more than six
years. With the launch of the new office, the company now has 40 dedicated consultants working out of
Johannesburg, Casablanca and Paris. Aside from Morocco and South Africa, Michael Page has placed
candidates in 35 out of the 54 African countries and in 2011 experienced growth of 22 percent from
operations on the African continent.
Page Personnel has diversified beyond junior roles in its traditional markets to multi-disciplinary candidates
within finance, secretarial and business support sectors. It has also entered the logistics sector in the UK.
•
•
•
•
•
Despite having a relatively small presence, the company is able to attract high caliber candidates across
specialist fields such as legal and financial to complement its strong focus in tax and legal niches.
In South America, the team has observed that Michael Page is one of the biggest advertisers in daily
publications and it uses online communication vehicles to get closer to clients and candidates. It also
establishes strategic alliances to convey agility and expertise.
The company remains focused on specialized recruitment and the organic growth through the expansion
of its existing clients in local markets. Michael Page also relies on long-term investments to reduce its
dependence on a single market segment.
In Japan, the focus is on permanent placements for foreign-capitalized companies.
Michael Page has a strong brand presence in the Middle East where it offers permanent recruitment
services only. It is also very strong in sales and marketing and professional support spaces.
•
In South America:
• The economic sectors that showed the most growth were: mass-market, electronics, automotive,
construction and technology.
• The company increased its staff by more than 50 specialized consultants, consolidating all areas of
recruitment within the country, with a growth of 70 percent in billings compared to the previous year.
It has become the first company in the market with 100 percent of consultants with academic and
professional experience in the specific area in which they are recruiters.
• Michael Page has positioned itself as talent exporters, sending executives from Argentina to its
branches in Australia, Brazil, Chile, Colombia and the Netherlands.
• Michael Page expects a 40 percent increase in the Brazilian market in 2012. Its main goals are:
continue incorporating consultants and opening new business units that are in other countries but still
has not been opened in Argentina, as well as new divisions of recruitment, improving the skilled service.
Financial Summary
Revenue
Dollars in
Millions
2,200
YOY Growth %
30%
% = Variance
+17.0%
1,900
1,635
-26.3%
0%
1,287
1,123
1,000
-10%
700
-20%
2008
2009
2010
60%
% = Variance
+15.6%
957
10%
+16.1%
1,300
2007
GP %
1,000
+22.4%
1,665
400
1,250
20%
1,802
1,600
Gross Profit
Dollars in
Millions
1,024
+25.7%
750
-36.4%
500
888
57%
54%
684
51%
551
250
48%
-30%
2011
0
2007
2008
EBITA
2009
2010
2011
45%
P/E Ratio
Dollars in
Millions
375
+25.2%
EBITA %
20%
% = Variance
300
301
15%
-5.8%
75
60
262
225
98.0
45
10%
+18.2%
150
+237.8%
113
75
30
138
5%
34
0
2007
2008
2009
25.6
18.7
15
-84.8%
2010 (1)
2011
(2)
9.3
0%
0
2007
7.1
2008
300
2010
2011
P/E Ratio
EBITA
Dollars in
Millions
375
2009
EBITA %
20%
% = Variance
301
15%
-5.8%
75
60
262
225
98.0
45
10%
+18.2%
150
+237.8%
113
75
0
30
138
5%
-84.8%
34
2007
2008
2009
25.6
18.7
15
2010 (1)
2011
(2)
0%
9.3
0
2007
7.1
2008
2009
2010
2011
(1) 2010 EBITA excludes $26.5M (£17.1M) of other income related to the refund of VAT for overpayment during the period from 1980 to 2004. Michael Page is continuing to
pursue an additional refund, but the outcome remains uncertain.
(2) Intangible amortization not available for 2011 and is included within the SG&A and EBITA results above. For Internal Use Only - 23
On Assignment
At-A-Glance
On Assignment
Revenue ($M): 597
Net Income ($M): 24
31, 2011 ($M): 412
ROIC: 8.3%
Gross Profit: 33.5%
Countries: 9
Offices: 88
Company Overview
On Assignment, Inc., founded in 1985 and public in 1992, is a leading provider of
highly skilled, hard-to-find professionals in the growing life sciences, healthcare,
and technology sectors. The company goes beyond matching resumes with job
descriptions to match people it knows into positions they understand, for temporary,
contract-to-hire, and direct hire assignments. Clients recognize On Assignment for
its quality candidates, quick response, and successful assignments. Professionals
think of On Assignment as career-building partners with the depth and breadth of
experience to help them reach their goals.
ManpowerGroup1
•
•
•
•
Life Sciences
Healthcare
Physician
IT & Engineering
31, 2011 ($M): 2,857
ROIC: 10.1%
Gross Profit: 16.8%
Countries: 80
Offices: 3,800
Employees: 31,000
267.8M and ROIC = 10.8%
1
Key Executives
Peter T. Dameris, President & CEO
Christian Rutherford, President, VISTA Staffing Solutions
Michael McGowan, President, Oxford Global Resources
Emmett McGrath, President, Life Sciences and Allied Healthcare
James L. Brill, SVP, Finance and Chief Financial Officer
Michael C. Payne, SVP, Shared Services and Chief Information Officer
Katie Hoffman-Abby, President, On Assignment Nurse Travel; EVP, VISTA
Physician Search and Consulting and VISTA Physician International
Board of Directors:
Senator William E. Brock
Peter T. Dameris
Jonathan Holman
Jeremy Jones
Edward L. Pierce
Global Footprint
The Americas:
Europe:
Asia Pacific:
Canada, U.S.
Belgium, Ireland, the Netherlands,
UK
China, Australia, New Zealand
www.onassignment.com
NASDAQ: ASGN
Mission
To help organizations thrive and people build rewarding careers by putting
highly skilled professionals to work exactly when and where they
are needed.
Business Strategy:
The company’s strategy is to focus on expanding its current service
offerings through organic growth and acquisitions while capitalizing
on the high-growth areas within the markets it serves. While
continuing to identify the right opportunities for expansion, On
Assignment is focused on ensuring it remains the provider of choice
for clients and the employer of choice for professionals looking for
temporary and permanent positions.
On Assignment Competitive Intelligence Dossier
Operating Divisions
•
•
•
•
•
•
•
•
•
•
•
Lab Support - Provides contract, contract-to-hire and direct hire placement services. Operating with a
network of branch offices in the United States, United Kingdom, the Netherlands and Belgium, it actively
connects clients with candidates in industries that include biotechnology, pharmaceutical, food and
beverage, medical device, personal care, chemical, nutraceutical, materials science, consumer products,
environmental, petrochemical and contract manufacturing.
On Assignment Nurse Travel - Offers clients the flexibility to meet today’s nursing shortages and keep up
with a demanding level of patient care. Its JCAHO Certified nurses are recruited from across the country
and allows clients to manage costs and demand by offering a flexible solution of both rapid response and
traditional travel assignments.
On Assignment Advanced Practice - Focuses on placing highly skilled, experienced Nurse Practitioners
and Physician Assistants at healthcare facilities and medical practices nationwide. It offers locum tenens
staffing solutions in a variety of specialties, including Emergency Medicine, Family Medicine, General
Practice, Internal Medicine, Neonatal Care, Oncology, Pediatrics, Psychiatry/Mental Health, Retail Health,
Urgent Care, Women’s Health, and more.
On Assignment Healthcare Staffing - Provides contract, contract-to-hire and direct hire placement services
for a diverse group of clients within the healthcare industry. It specializes in placing Healthcare professionals
within the disciplines of Nursing, Therapy, Medical Business Office, Clinical Laboratory, Respiratory Care,
and Diagnostic Imaging in local markets across the United States.
Oxford Global Resources - Delivers consultants with expertise in specialized Information Technology;
Software & Hardware Engineering; and Mechanical, Electrical, Validation & Telecommunications
Engineering fields. It combines international reach with local depth, serving clients through a network of
Oxford International recruiting centers in the United States and Europe, and Oxford & Associates branch
offices in major metropolitan markets across the U.S.
VISTA Staffing Solutions - Is the physician staffing division of On Assignment, and the only agency in the
industry that provides physicians with a full range of work opportunities and healthcare organizations with
a full range of physician staffing options. VISTA provides short- and long-term locum tenens coverage and
full-service physician search and consulting in the US, and locum tenens and permanent placement in New
Zealand and Australia. VISTA works with physicians from just about every medical specialty, placing them in
hospitals, community-based practices, and federal, state, and local facilities.
On Assignment Health Information Management (HIM) - Offers flexible coding and auditing staffing
solutions by providing local, regional and travel professionals to acute care facilities through contract
staffing and direct hire alternatives. Its clients often have a need for cost-effective staffing solutions that
bring reimbursement value to their organization.
Valesta Clinical Research Solutions - Is an industry leader in placing skilled clinical research professionals
at all career levels in project-based, contract-to-hire, and direct hire opportunities, both locally and globally.
It has a track record of making job matches in specialized areas, including clinical data, clinical monitoring,
medical writing, biometrics, and regulatory affairs.
On Assignment Allied Travel - Provides a solution to the increasing shortage of allied professionals across
the nation. After a screening and its proprietary training process, its candidates are placed on a variety of
travel assignments ranging from 4 to 26 weeks.
On Assignment Engineering - Specializes in the areas of biotech, pharmaceutical, automotive, medical
device, chemical and plastics, environmental, electronics, entertainment, industrial, construction, defense,
aerospace and consumer goods. It actively recruits and places engineers at all career levels in contract,
contract-to-hire, and direct hire positions.
Sharpstream Life Sciences - Provides global retained search services to the life sciences sector. It
is headquartered in London with branch offices in the U.S. and China. Sharpstream’s activity are
concentrated in the pharmaceutical, biotechnology, vaccines, and medical devices industries.
Threats
Opportunities
Weaknesses
Strengths
SWOT Analysis
• Acquisition of Apex Systems creates the second largest IT staffing firm in the U.S. and further positions
On Assignment in the fast-growing segments of the professional staffing industry. The transaction is
expected to be significantly accretive to On Assignment’s earnings per share, on both a GAAP and
cash EPS basis, in 2012 and beyond.
• Proactive recruiting and fulfillment model for specialized talent; all segments operate in high demand,
high bill rate lines of business that are driving organic revenue growth and stable gross margins.
• High-end focus yields higher bill rates, longer assignments and stickier customer relationships.
• Limited geographic scope and reliance on a single region with minimal penetration into European markets. While this may not be as large a factor in the healthcare industry where work is typically
restricted to a single region, in IT/Engineering many clients are seeking providers with global
capabilities.
• Highly skilled temps are in high demand but short supply, with greater resistance to economic cycles, especially in areas like healthcare and highly specialized professional services. On Assignment participates in most attractive sub-segments of staffing (i.e. healthcare, life sciences, locum tenens
and IT/engineering).
• Challenging physician staffing market even with improving demand
• Continued price pressures on specialized and niche skills threaten to erode some of On Assignments’ core business in IT and healthcare as more and more companies seek to implement global or national
volume based programs.
ManpowerGroup Sales
Insights
How do you sell against On Assignment?
•
•
On Assignment announced in July of last year that Katie Hoffman-Abby had been named president of its
Nurse Travel division. Hoffman-Abby has served as executive vice president for the division since March
2010 and is a cofounder of VISTA Staffing Solutions, On Assignment’s physician staffing division. She has
over 25 years of experience in healthcare staffing.
The following month, the company announced that Christian Rutherford joined the company’s physician
staffing division, VISTA Staffing Solutions, as president, effective November 1, 2011. Rutherford assumes
the president role from Mark S. Brouse, who had held it since 1990. Brouse is one of the co-founders
of VISTA, and he will assume a new part-time role assisting On Assignment’s president and CEO, Peter
Dameris, in identifying and evaluating future acquisitions for VISTA. Rutherford is an 18-year veteran of the
U.S. staffing industry.
Acquisition Activity
•
•
In March of this year, On Assignment announced that it had signed a definitive agreement to acquire Apex
Systems Inc., a leading information technology staffing and services firm. The transaction will create one
of the largest professional staffing firms and the 2nd largest IT staffing firm in the United States. On a pro
forma basis, 2011 revenue of the combined entity was $1.3 billion.
• Privately-held Apex Systems is the six largest and one of the fastest growing IT staffing firms in the
United States. In 2011, Apex Systems had approximately $700 million in revenue and adjusted EBITDA
of approximately $65 million. Apex Systems has achieved a compound annual revenue growth rate
(CAGR) of 30.4% since 2000 and expects to achieve double-digit top-line growth in 2012.
In the fourth quarter of 2011, On Assignment announced that it had acquired HealthCare Partners, Inc.
(HCP), a privately held locum tenens and physician staffing firm headquartered in the U.S. Recently
named the twelfth fastest growing staffing firm in the U.S. by Staffing Industry Analysts, HCP generated
approximately $20.0 million in 2010 revenues. The acquisition was expected to be immediately accretive to
On Assignment’s earnings.
Operational Updates
•
On Assignment announced in January, 2012, that it had rebranded its U.S. Clinical Research division under
the name Valesta Clinical Research Solutions.
• The company stated that the change was made to best promote the company’s global presence
in clinical research and its range of service offerings – from contract and direct hire placements to
functional outsourcing for clinical trials.
• The new name also leverages the strength of the existing Valesta clinical research brand within Western
Europe – a company acquired by On Assignment in February 2011. Valesta Clinical Research Solutions
operates in the United States, Belgium, Netherlands, and Spain.
Financial Summary
Revenue
Dollars in
Millions
700
YOY Growth %
125%
% = Variance
+9.0%
600
+36.3%
618
597
567
90%
250
GP %
55%
-32.3%
400
200
417
2007
438
20%
2008
2009
2010
2011
200
150
-31.6%
-50%
50
31%
0
2007
90%
+7.3%
153
10.00
9.40
8.00
82%
129
4.56
4.00
75
74%
2009
2010 (1)
2011
2.00
70%
0.00
2007
2008
EBITA
2010
2011
EBITA %
10.0%
% = Variance
60
80
163.0
70
8.0%
+23.3%
+125.7%
53.0
45
46.7
42.9
6.0%
4.0%
30
15
-59.8%
-2.8%
21.3
20.7
60
50
55.0
40
NN N
30
20
26.0
2.0%
16.9
10
0
2009
P/E Ratio
Dollars in
Millions
75
6.24
6.89
6.00
78%
2008
2011
10.44
86%
+11.9%
100
2007
2010
12.00
115
50
2009
Dollars
+19.1%
-21.5%
2008
Average Stock Price
% = Variance
137
33%
150
32%
% of GP
147
+9.6%
2007
2008
2009
2010
(1)
2011
0.0%
(1) 2010 results exclude the impact of impairment charges of $15.4M.
34%
100
SG&A
Dollars in
Millions
125
+33.8%
199
136
-15%
150
+11.1%
+67.7%
300
175
35%
% = Variance
180
500
200
Gross Profit
Dollars in
Millions
0
10.7
2007
2008
2009
2010
2011
30%
Resources Global
At-A-Glance
Resources Global
Revenue ($M): 545
Net Income ($M): 25
31, 2011 ($M): 625
ROIC: 3.4%
GP%: 38.6%
Company Overview
Resources Global Professionals provide services and talent focused in finance
& accounting, information management, risk and compliance, human capital,
legal and regulatory, corporate advisory and strategic communications, and
supply chain management. The company was founded in 1996 within a Big
Four accounting firm. Today, it is a publicly traded company with over 2,900
professionals, from 66 practice offices, serving 1,900 clients (down from 2,100
in 2011) around the world.
Countries: 60+
Offices: 66
Employees: 2,900
ManpowerGroup1
31, 2011 ($M): 2,857
ROIC: 10.1%
Resources Global serves 83 of the Fortune 100 companies. The operating
subsidiary of Resources Connection, Inc. (RECN), the company is listed on
the NASDAQ Global Select Market, the exchange’s highest tier by listing
standards.
Global Footprint
• The Americas: U.S., Canada, Mexico
• Europe: UK, Belgium, Denmark, Ireland, Germany, Luxemburg, Italy, France, Norway, Sweden, Netherlands, Switzerland
• Asia Pacific: Japan, China, Singapore, Australia, India, Taiwan
Gross Profit: 16.8%
Countries: 80
Key Executives:
Offices: 3,800
Don Murray, Executive Chairman and CEO
Anthony Cherbak, President and COO
Kate Duchene, Chief Legal Officer and EVP of Human Resources
Nate Franke, Executive Vice President and CFO
Employees: 31,000
267.8M and ROIC = 10.8%
1
www.resourcesglobal.com
Resources Connection NASDAQ: RECN
Resources Global’s primary services and focuses have remained consistent year-over-year, with the
exception of building a new presence in IFRS/Convergence and expanding content around its Legal offerings
via the Sitrick Brinko acquisition one year ago. Its brand imagery remains consistent, but it has updated its
content and positioning to reflect a more experienced perspective, including mention of average years of
experience per professional.
In competitive situations with Resources Global, Experis wins with a strategic approach,
subject matter experts and experience, and best practices and methodologies in the local
market. Competitive opportunities not focused on these attributes become focused on
pricing.
Resources Global has a solid recruiting / resourcing pipeline for professional resourcing
or staffing needs. It appears to have a weakness in its ability to deliver project work or
thought leadership; Experis continues to win in these cases. Resources Global is also
pursuing competitive hires in the client services role with higher base pay plus bonus
program compensation structure, not a traditional sales person model.
Services Provided
Human Capital
Information Management
Legal & Regulatory
Risk & Compliance
Supply Chain
IFRS/Convergence
Government Services
Policy IQ
Resources Global Competitive Intelligence Dossier
Strengths
SWOT Analysis
•
•
•
•
•
Leverages the Deloitte alumni network in selling efforts and with clients
Contingent workforce model protects gross margins in difficult economic times
Diverse service offerings
Ability to attract and retain experienced professionals using contingent workforce model
Strong recruiting arm that is embedded in the process and takes active role in placing/replacing
professionals
• Global footprint
Opportunities
Weaknesses
• Does not have full-time, dedicated sales force
• Reliance on “hub” locations in 1st tier cities such as New York and Chicago with less emphasis or
resources in 2nd tier cities
•
•
•
•
•
Large multi-national client focus
Strong brand with well-designed deliverables, tools and templates
History of very high client retention
Combines BDM/field director roles into client services leader role
Ability to command higher bill rates across full service offering
Threats
• Organization’s structure does not include role of director to function and focus on subject matter
expertise; dual role leads to deficiency in sales and/or subject matter based on need in market
• Organization conducts very little project solutions work
Resources Global Intelligence Dossier
ManpowerGroup Sales
Insights
How do you sell against Resources Global?
Operational Updates
•
On Resources Global’s most recent earnings call, the company stated that the demand environment
continued to be stable across most geographies, noted strong demand for finance & accounting (F&A),
information management and compliance-related work from large U.S. financial services clients, and
broad-based demand across software implementation, supply chain management and compliance-related
areas. Much of its client work revolves around cost-cutting and efficiencies to improve liquidity.
•
•
Resources Global has a solid recruiting/resourcing pipeline for professional resourcing or staffing needs.
It continues to exhibit weakness in its ability to deliver project solutions or thought leadership with the
exception of some capability in accounting and finance. Experis Finance continues to win in these cases
and has gained some initial ground in the professional resourcing arena by adjusting its recruiting and
fulfillment processes.
There continues to be no salaried consultants at Resources Global. The billable consultants report to the
client service directors. Each client service director receives a slightly higher base pay plus an incentive
bonus program compensation structure based on an individual market’s performance. There is a cap to
the incentive program. Resources Global continues to pursue competitive hires in client service director
roles.
Resources Global Intelligence Dossier
Financial Summary
Revenue
Dollars in
Millions
1,000
YOY Growth %
% = Variance
800
840
-18.4%
500
10.0%
400
-27.2%
+9.3%
0.0%
-10.0%
-20.0%
2008
2009
2010
-30.0%
2011
% of GP
100.0%
% = Variance
280
93.0%
+19.5%
-7.8%
236
210
322
38.9%
-18.2%
263
+7.8%
-25.9%
200
210
195
100
38.6%
38.3%
0
2007
2008
2009
2010
2011
38.0%
(3)
Dollars
30.00
28.95
25.00
20.00
-12.1%
218
198
300
Average Stock Price
SG&A
Dollars in
Millions
39.2%
289
200
2007
39.5%
% = Variance
546
499
400
0
GP %
+11.6%
686
600
350
20.0%
+14.2%
736
Gross Profit
Dollars in
Millions
192
19.13
86.0%
-6.1%
16.96
15.00
180
140
16.01
13.73
79.0%
10.00
70
72.0%
0
2007
2008
2009
(1)
2010
(2)
2011
65.0%
(2)
5.00
0.00
2007
2008
2010
EBITA %
125
15.0%
50
% = Variance
100
12.0%
81.0
40
-5.8%
91
75
35.6
86
-46.9%
50
45
9.0%
30
6.0%
20
3.0%
10
29.9
20.4
+727.6%
25
-91.9%
31
4
0
2011
P/E Ratio
EBITA
Dollars in
Millions
2009
2007
2008
2009
(1)
2010
(2)
(2)
2011
0.0%
0
N/A
2007
2008
2009
2010
2011
NOTE: Resources Global’s fiscal year end is May 30th, the financial results in the graphs above are based on the fiscal year end. (1) 2009 excludes the impact of restructuring charges of $3.6M. (2) 2010 and 2011 exclude the impact of contingent liability adjustments associated with the 2009 acquisition of Sitrick Brincko Group, of $2.0M and ($25.9M), respectively.
(3) The average stock price is calculated based on the calendar year performance.
Resources Global Competitive Intelligence Dossier
Robert Walters
At-A-Glance
Robert Walters
Revenue ($M): 847
Net Income ($M): 16
31, 2011 ($M): 199
ROIC: 15.4%
Gross Profit: 34.7%
Countries: 21
Offices: 47
Employees: 2,000
ManpowerGroup1
31, 2011 ($M): 2,857
ROIC: 10.1%
Gross Profit: 16.8%
Countries: 80
Company Overview
Established in 1985, Robert Walters recruits across the accounting, finance, banking,
IT, human resources, legal, sales and marketing, supply chain and engineering and
support fields. Robert Walters, the company founder, formerly was an executive at
rival Michael Page International.
With 47 offices in 21 countries, its global network enables it to meet the demands
of clients and candidates whose needs extend beyond local markets, while its local
foundations provide it with unique insights into local industry and culture.
The Group’s recruitment process outsourcing and consultancy services business,
Resource Solutions, currently operates contracts in Europe, Asia, Australia and the
United States. Resource Solutions works with a broad range of financial services and
commercial clients, either on-site as part of the client’s HR function or off-site as a
virtual recruitment function.
• Asia Pacific
• UK
• Europe
• United States and South Africa
Offices: 3,800
Employees: 31,000
Key Executives
Board of Directors:
267.8M and ROIC = 10.8%
Robert Walters, CEO
Giles Daubenay, COO
Alan Bannatyne, Group Finance Director Philip Aiken, Chair
Robert Walters
Giles Daubenay
Alan Bannatyne
Russell Tenzer
Martin Griffiths
Carol Hui
Andy Kemp
1
Global Footprint
The Americas:
Europe and Africa:
Asia Pacific:
Brazil, U.S.
Belgium, France, Germany, Ireland,
Luxembourg, South Africa, Spain,
Switzerland, the Netherlands, UK
Australia, China, Hong
Kong, Japan, Korea,
Singapore, Thailand
www.robertwalters.com LON: RWA
Values
The Robert Walters brand stands for innovation, vision and leadership in
the global recruitment market.
The company specializes in permanent and contract recruitment across
all industry sectors, and counts the world’s leading investment banks
and multinational blue-chip commercial organizations as clients.
Operating at all levels of seniority, it manages the careers of
professionals in the accounting, finance, banking, legal, technology,
sales and marketing, HR, support and administration fields.
Group Companies
Resource Solutions - specialists in recruitment outsourcing
Walters People - Accounting, finance and admin
Focus Disciplines
• Accounting & Finance
• Banking & Financial Services
• Engineering & Operations
• General Management
• Human Resources
• Information Technology
• Legal
• Risk Management, Compliance & Audit
• Sales, Marketing & Communications
• Secretarial & Business Support
• Supply Chain, Procurement & Logistics
Robert Walters Competitive Intelligence Dossier
Threats
Opportunities
Weaknesses
Strengths
SWOT Analysis
• Strong relative exposure to the Asia Pacific market with 50 percent of revenue generated there.
• Business in Asia delivered an outstanding performance, with Singapore, Hong Kong, Thailand and
mainland China all more than doubling net fee income. Business in Japan and Malaysia both delivered
increases in net fee income.
• Focuses on the Finance & Accounting, IT, Sales & Marketing and HR verticals in the professional
segment.
• Relatively small with 47 offices in 21 countries and revenue under $1B
• UK and Europe markets had increased activity but are not contributing to significant growth.
• Dependent on permanent recruitment revenue (over 70 percent).
• Seeing some downside risk from a still tentative global recovery, particular vulnerability in Europe and
the UK.
• Analysts expect financial recruitment markets to continue to remain robust, driven by increasing job
velocity, increasing use of agencies especially outside the UK, and growing labor scarcity as the cycle
matures.
• Expansion into Brazil and South Korea.
• Resource Solutions, its recruitment process outsourcing business, delivered an increase in net fee
income, growing its client base and expanding its scope of services at existing client sites.
• They see the strength of the employment market, changes in legislation, and staff retention as their
principle risks that could impact their business.
Financial Summary
Revenue
Dollars in
Millions
950
YOY Grow th %
45.0%
% = Variance
350
847
30.0%
GP %
45.0%
% = Variance
+24.5%
850
Gross Profit
Dollars in
Millions
+18.0%
300
750
640
15.0%
+41.2%
+5.5%
650
258
0.0%
550
36.0%
-24.7%
471
350
2007
2008
2009
2010
2011
-15.0%
150
-30.0%
100
164
2007
SG&A
% = Variance
250
269
2010
2011
30.0%
Dollars
100.0%
7.00
95.0%
6.00
6.21
5.00
220
206
90.0%
-14.3%
150
2009
+38.4%
222
200
% of GP
+18.0%
+16.6%
2008
33.0%
Average Stock Price
Dollars in
Millions
300
39.0%
200
-10.9%
450
+48.9%
257
240
656
625
250
42.0%
294
+7.5%
4.00
3.77
4.30
85.0%
161
3.00
100
50
80.0%
2007
60
45
2009
2010
Operating Profit
Dollars in
Millions
75
2008
2011
75.0%
1.00
2007
2.41
2.24
2008
2009
(1)
10.0%
% = Variance
8.0%
+33.3%
52.3
6.0%
-28.5%
+737.0%
-91.5%
20.4
+18.4%
2008
60
623.2
50
40
4.0%
2009
25.9
20
25.1
2.0%
2.5
2007
2011
30
34.6
15
2010
P/E Ratio
OP %
30
0
2.00
10
2010
2011
0.0%
0
11.4
6.6
5.9
2007
2008
2009
2010
2011
(1) EBITA detail not available.

Table of Contents - Gateway

Transcription

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