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Hays plc Investor day17 April 2008

Investor Day17 April 2008

Important notice

Specialist Recruitment page 1

Certain statements included or incorporated by reference within this presentation may constitute "forward looking statements". By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by those statements. Forward looking statements regarding past trends or activities should not be taken as representation that such trends or activities will continue in the future. Accordingly, undue reliance should not be placed on forward looking statements. The Board considers the risks and uncertainties listed in its Annual Report to be the principal ones that might affect the Group's performance but cautions that the risks included in its Annual Report may not address all the factors that could cause results to differ materially.

The information contained in this presentation is not an invitation to invest in the shares of, or any other investments issued, by Hays or any other person or otherwise to engage in any activity in relation to investments. The information provided is neither a recommendation nor advice and should not be relied upon in connection with any investment decision.

The information contained in this presentation 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.


Objectives of the day


Present the opportunities we see for Hays- in existing, emerging and new specialist recruitment markets

Share our strategy and priorities with you- our vision and plans for the medium term

Opportunity to meet our wider management team- > 20 members of the management team are here today

Provide a comprehensive picture of our business today- this is our first Investor Day since 2003

Trading update


Q3as announced 10 April 2008

* LFL is like-for-like growth, which represents organic growth of continuing activities at constant currency. No adjustment is made for the two less trading days in the quarter ended 31 March 2008. The Q3 growth rates and the outlook statement are as disclosed in the Interim Management Statement issued on 10 April 2008. **It is estimated that Easter falling earlier this year reduced our growth by approximately 2% in the quarter

21%

47%

53%

7%

headline

5%UK & I

17%Group

38%CE & RoW

40%APAC

LFL*Net fee growth

Q4 trading update on 10 July 2008

Quarter ended 31 March 2008 (‘Q3’) Q3 Highlights

Outstanding International performance- 39% LFL growth

Good UK & I growth- after taking account of early Easter**

Excellent net fee growth- Perm 22% LFL growth; temp 13% LFL growth

Interim guidance confirmed- confident in outlook for the year


Part I

Hays08- a profile of the Group today

Focused Evolution- the Group strategy

Focus by Division- divisional profile and strategy

Introduction- includes brief trading update

Cash is King- cash, balance sheet, financing

Hays through the cycle- performance in 2001/02 downturn

1:00

1:05

1:20

1:45

2:00

2:30

Refreshment breakSpeed expo

3:30

4:00

4:15

Refreshment breakSpeed expo

4:30 Summary- key takeaways

Q&A session

4:45 Q&A session5:00 Drinks in the Dali Gallery

Part 2

Page 1

Page 6

Page 22

Page 45

Page 79

Page 84

Page 96

APAC

CE & RoWUK & I

Investor Day17 April 2008Agenda

Page 45

6

Page 69


Hays management attending the investor day


Grahame Doyle - Director, New South Wales

Matt Underhill- Managing Director, Asia

Nigel Heap- Managing Director, APAC

Group

Klaus Breitschopf - Managing Dir, Germany

Dirk Hahn- Chief Op Officer, Germany

Tina Ling- Managing Dir, France

Laurent Jehle- Business Director, France

Nick Cox- Managing Dir, CE & RoW

Tim Cook- Managing Dir, UK & I C&P

Charles Logan- Managing Dir, UK & I HRM

Paul Venables - Group Finance Director

Bob Lawson- Chairman

Steve Weston- Group Technology Director

Alistair Cox- Chief Executive Officer

Alison Yapp- Company Secretary

Steve Witts - Head of Treasury & Tax

CE & RoWAPAC

Simon Gray- Group Financial Controller

Ross Hetherington- Managing Dir, UK & I A&F

Laura Alexander- Finance Director, Asia

Martin Abell - Head of Investor Relations

UK & Ireland


I. Hays08- a profile of the Group today

II. Focused Evolution- the Group strategy

III. Focus by Division- profile and strategy

IV. Cash is King- cash, balance sheet and financing strategy

V. Hays through the cycle- performance in 2001/02 downturn

VI. Summary- key takeaways

APAC

CE & RoWUK & I

Appendices- Speed expos and speaker biographies

Focused 100% on the specialist recruitment market

Pure play specialist

recruitment

Generalist recruitment (mostly blue collar staff)

Specialist recruitment (mostly white collar staff)

The global staffing market

Executive search (head hunting)

Attractive market characteristics

Specialist Recruitment

Note: within the 3 segments, the Groups have been positioned in descending order according to size of net fees

Hays places candidates in the £15k - £75k salary banding

page 8

Hays market positioning by candidate salary bracket*C

andi

date

sal

ary

(£’0

00)

10

20

30

40

50

60

70

80

UK

& Ir

elan

d

Con

tinen

tal E

urop

e &

Res

t of W

orld

pred

omin

antly

£15k

-£5

0k

pred

omin

antly

£2

0k -

£75k

*Information is indicative only. For illustrative purposes, APAC and CE & RoW are based on UK equivalent salaries


recruitment


APA

Cpr

edom

inan

tly

£20k

-£7

5k

oppo

rtuni

ty


Balanced portfolio

17 specialismsWe find jobs in a wide variety of professionswe placed 68,000 candidates last year

Jobs we place*

Accountancy & Finance

Construction & Property

Information Technology

14 Other Sectors

Architects

Building Control Officers

Carpenters

Civil Engineers

Facilities Managers

Interior Designers

Maintenance Engineers

Project Managers

Quantity Surveyors

Site Managers

Structural Engineers

Auditors

Bookkeepers

Corporate Tax Advisers

Credit Controllers

Finance Clerks

Finance Managers

Financial Analysts

Financial Controllers

Management Accountants

Office Support

Treasurers

Java Developers

Electronic Engineers

IT Architects

IT Consultants

Programme Managers

Project Managers

SAP Consultants

Software Developers

Solution Designers

System Administrators

Actuaries

Claims Managers

Clinical Trial Analysts

Compliance Directors

Customs Officers

Doctors

Financial Planners

Financial Traders

Geologists

Graphic Designers

HR Managers

Lawyers

Logistics Managers

Metallurgists

Nurses

Media & PR Officers

Brand Managers

Purchasing Directors

Product Development Managers

Retail Directors

Sales Managers

Store Managers

Teachers

*The above represents a sample of the jobs we place

£15 billion market

Fragmented markets

scope to increase market share

#1< 20%0.7Australia / NZ

#1< 15%0.4Germany

#2< 5%0.4France

top 10< 5%0.4Benelux

#5< 5%0.4Canada

#3< 5%0.3Japan

#2< 5%0.2Spain

Other

UK

US

Country

< 5%

< 15%

-

Hays share

Hays presence

Size (£bn)

5

2

10

3

7

top 10

#1

- £15bn (net fees)size of global specialist markets

#1~ 5%15Total

~ 10% shareof market that Hays addresses

~ 5% shareof global specialist market

Figures are based on Hays estimates as at 31 December 2007 and should be viewed as indicative only

Size of specialist recruitment market (by net fees)

(measured in net fees)


6 key market drivers


2. Cultural changesincreasing penetration

>> penetration rates are low and growing rapidly driven by an increased willingness to use specialist recruitment consultants

Business growthnew job opens

Vacancy filled

Donor business 1 has vacancy

Vacancy filled

Donor business 2 has vacancy

Vacancy filledetc etc etc

3. The multiplier effect and cyclical growth

1. Increasing deregulation opening new markets

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

234567891011

Spain

France

Germ

any

Italy

UK

US

Data from Amro staffing note, 16/01/08

Employment protection indices (max = 6; min = 0; average 2000-06)

Regulation of temporary employmentRequirements for collective dismissalProtection of permanent staffUnemployment rate % (RHS)

Japan

rateRegion

Middle East, Africa

South America

Rest of Asia

Continental Europe

UK & I

North America

Penetration

Cultural changes

increasing penetration

The multiplier

effect& cyclical

growth

Increasingderegulation

opening new markets

6. Increasing job velocity4. Increasing skill shortages 5. Increasing flexibility demands


Hays Groupnet fees: £374.8m

operating profit: £125.0m conversion rate: 33.4%

consultants: 5,718 offices: 391

CE & RoWnet fees: £68.9m


consultants: 1,234offices: 82

UK & Inet fees: £225.3m



APACnet fees: £80.6m



Note: Financials are based on results for 6 months ended 31 December 2007 (‘FY08 H1’). Consultants and offices are as at 31 December 2007. Pie chart at the top right of the page shows net fees by region (FY08 H1). Conversion rate is operating profit / net fees

UK&I

APAC

CE+

• #1 market position• wide geographical coverage and large SME weighting• 23% public sector

• #1 position in Australia & NZ• 93% of business is Aus & NZ• SME and large corporate focus• rolling out rapidly in Asia

The Group structure

• top 3 position in major markets• rapidly growing markets• 2/3 of business is Germany (principally IT) & France

information is based on 6 months ended 31 December 2007


*Indicative purposes only based on information for the 6 months ended 31 December 2007

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Spot

Recruitmentcontracts

Public sector

Private sector

Top 40

30,000 customers

Temp

Perm

Net fees by type*

Other

Balanced portfolio

breadthBalanced portfolioRelatively defensive versus peer group



IT

~ 20%

~ 80%

~ 20%

~ 80%

~ 15%

~ 85%

49%

51%

26%

14%

25%

35%

Balanced portfolioperm & temp businesses


Driving growth on 2 fronts

• Number 1 in global perm specialist recruitment

• 68,000 candidates placed in FY07

• Cyclical business giving good momentum when economies are buoyant

• Low working capital

Temporaryplacement market

Permanentplacement market

55%

• Number 2 in global temp specialist recruitment

• 1 day to 1 year placements• 46,000 temps paid weekly in

FY07• Less cyclical giving Hays more

defensive qualities• Large back office support

function• Better earnings visibility

Shared platform51% of Hays business 49% of Hays business

Shared platform with synergies

- shared management- shared offices- shared marketing- backed by one brand

Temp and Perm split is based on net fees for 6 months ended 31 December 2007


Balanced portfolio

private & public sector

Quality and broad client basemix of blue chip companies and SMEs

*Based on net fees for 6 months ended 31 December 2007

Public Sector

80% private sector* 20% public sector*




Other Sectors

Business model

replicatesproven track record


4 decades of evolution

2007

2006

2005

2008

New countries

1997

1998

1999

2000

2001

2002

2003

2004

New specialismsYE 30 June

Early 1990s

Pre 1990

Brazil

China, HK

organic acquisition

A&F C&P

France

Czech Re.

Netherlands

Portugal

Canada

Belgium

Germany SwitzerlandSpain

Austria Sweden Poland

Australia

N’ Zealand

Slovakia Singapore

Italy UAELuxembourg

UK

Key

Legal

Banking Fin. Services

Education

Contact Ce.

HRMHR

Sales & Ma.

ExecutiveRetail Healthcare

Purchasing

IT

Japan Pharma

Oil & Gas

Hungary Denmark

replicated into 27 countries principally through organic growthAccelerating

pace

Ireland

Market leading positions#1 worldwide


Global footprint emergingHays is becoming increasingly international

Top 3 in most major economies

Hays presence

Net fee development

Number 1

Just arrived

Just arrived

InternationalInformation as at April 2008

£155m £23m

£225m

UK & I

H1 FY03

H1 FY04

H1 FY05

H1 FY06

H1 FY07

£150m

40%60%

.

Number 1 with unrivalled coverage

H1 FY08

.

A global leader in specialist recruitment

Market leading positions

in established & embryonic markets

SThree

MPS Group

Michael Page

Robert Half

Competitor*

£229m2

£149m3

£66m4

£52m5

£239m

profit

Global Number 1

1

Rank Operating


United KingdomIreland

Spain

New Zealand

Japan

France

Germany

Italy

Top 3 in 9 countries

Australia

embryonic market

embryonic market

embryonic market

embryonic market

*Competitor ranking is based on operating profits disclosed for calendar year ended 31 December 2007. Pure play specialist recruitment groups shown only. Robert Half recruitment profits only shown. SThree profit is for the year ended 2 December 2007

embryonic market

embryonic market

Our target is always top 3 market position

+ top 10 and growing rapidly in our other 18 other countries


0%

20%

40%

60%

80%

100%

Hays

MichaelPage

SThree

RobertH

alf

MPS

Group

Robert

Walters

Cost Profit


Strong cost and cash control

Strong cost control

#1 conversion rate

Disciplined cost controldelivering industry leading conversion rate

Net fees conversion to operating profit Conversion of profit into cash

Excellent cash conversionreflecting simplicity of accounting & business

Highly cash generative

low capital intensity

Left hand graph is based on results for the year ended 31 December 2007. In right hand graph, operating cash flow is operating cash flow post capital expenditure and working capital movements. Operating profit is before goodwill and exceptional items

0

50

100

150

200

250

FY05 FY06 FY07

(£m) Operating cash flowOperating profit

FY05 FY06 FY07

200

250

150

100

50

0


Impressive track record

Strong managementproven track record

Operating profit of Hays Specialist Recruitment business

020406080

100120140160180200220

FY92

FY93

FY94

FY95

FY96

FY97

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

£5m

£216m

Recruitment business operating profit shown only; information extracted from financial statements

£m

Profit growth in 14 out oflast 16 years

Long term growth story(29% CAGR% FY92 – FY07)

Simple accounting(very few one off costs in recruitment)

Grown presence from 3 to 27 countries

The record over 16 years

>95% of growth is organic

Consistency demonstratesresilience (versus competitors)



recruitment>£2bn revenue

391 offices

Attractive markets

worldwidewith strong long term

growth drivers

Highly cash generativewith low capital

intensity

Strong management

with proven track record underpinned by

‘Hays DNA’


#1 UK, #1 Australia, and growing in

Continental Europe

Business model

replicateson global scale with low expansion risk

Strong cost control

market leading conversion ratio

& flexible cost base

Balanced portfolio27 countries

17 specialisms perm & temp business

strong on-line presence

Information as at April 2008

The 8 key characteristics of our business








APAC

CE & RoWUK & I


Our aim is to build the pre-eminent global business in specialist recruitment

a strategy ofour approach is


4 components of focused evolution


Building the global leader

in specialist recruitment

Designed for growth


ur businessreplicatingGrowth by

New specialisms in existing locations

New teams in existing locations

New territories existing & new countries

HAYS

1

Replicate teams in existing locations and expand footprint


Planned office openings are based on current business plans and include new countries in the region

Repl

icate

team

s in ex

istin

g lo

catio

ns

Office roll out plans are predominantly focused on Continental Europe & RoW division

Continental Europe & RoW office roll out

H1 FY05 H1 FY11H1 FY08

54

+28 82

+49 131

Clear office roll out plans49 new offices planned in C Europe & RoW

projection

Expand existing officesthe core source of our growth

London Sydney Paris Madrid Tokyo AmsterdamSingapore Frankfurt Toronto Dubai Sao Paulo

Offices in existence at H1 FY05

Offices opened in last 3 yearsOffices planned in next 3 years

Replicate business into new specialisms


we are filling the grid prioritising the highest growth opportunitiesSw

eden

Resource Management

Slovakia

Sales & Marketing

PurchasingSingapore

Pharmaceutical

Spain

Netherlands

Poland

Portugal

UK

&I

Aus &

NZ

China &

HK

Japan

Austria

Belgium

Brazil

Canada

Czech

Denm

ark

France

Germ

any

Hungary

Italy

Luxembourg

Switzerland

Oil & Gas

Executive

Financial Services

Healthcare

Human Resources

Legal

Education

UA

E

Banking

Contact Centres

Resources & Mining




>10% of country net fees

<10% of country net fees

Key priorities in embryonic countries

UK APAC Continental Europe & Rest of World

Case studyreplication into

new specialismsTrack record of successful replication of specialisms


Net fees

FY07

FY06

FY05

FY04 £2.0m

£4.0m

£7.5m

£10.7m

Net fees

FY07

FY06

FY05

FY04

FY03

FY02 £1.7m

£6.4m

£10.1m

£11.1m

£4.0m

£13.5m

UK&I Human Resources

Opened in 2002, achieved breakeven in 6 months and now in 25 officesStill very small compared to the market opportunityMarket still opening up

UK & I Sales & Marketing, Purchasing

Opened in 2004 and growing rapidlywith improving conversion rateExcellent growth in this business available for a number of yearsBig market to attack

case study case study

Replicate business into new countries

Vision(4-5 yrs

time)

Infancy(early days –

building scale)

High growth phase

(geographical growth in core

sectors)

Established business

(core sector critical mass achieved; now

rollout of smaller sectors)

Ireland

BrazilChinaCzech RepublicDenmarkHong KongHungaryItalyJapanLuxembourgPolandSingaporeSlovakiaSwedenUAE

AustriaBelgiumCanadaNetherlands

ArgentinaFinlandIndiaMalaysiaMexicoNorway QatarRussiaSouth AfricaSouth KoreaUSA

Growth

Other AsiaOther C EuropeOther E EuropeOther Middle East

New countries*

Businesses at different stages of the life cycle

pipeline for growth over next 10 years

Growth

Growth

Growth

Growth


*‘New countries’ represent countries Hays is reviewing for potential entry over the next 3 years based on current business plans

Under review

(opportunity identified)

New ZealandPortugalSpainSwitzerland

UK

Australia

Germany

France

Current priorities

Key

Track record of successful replication into new countries


Hays Australia & NZ net fees by specialism

Pie charts are based on net fees for the 6 months ended 31 December 2007. Bottom left graph is based on financial years ended 30 June

0

20

40

60

80

100

120

FY03 FY04 FY05 FY06 FY070%

10%

20%

30%

40%

50%

60%Net fees CR%

Net

fees

(£m

)

Con vers io n ratio %

54%46% Perm

Temp

39%

24%

7%

7%

23%

Accountancy& FinanceConstruction& PropertyIT

Resource &MiningOther

Hays Australia & NZ growth Hays Australia & NZ net fees by segment

Organic start up and now firmly entrenched as #1 in marketConversion rate improved as business achieved critical massRoll out of smaller specialisms still at early stage

Hays Australia & NZ

Case studyreplication into new countries

Australia & NZ is the blueprint

case study

Bolt-on acquisitions to supplement organic growth


Acquisition strategy

Acquisition criteria

Principally specialist based businesses onlyBusinesses similar in nature to Hays (culture and model)Track recordStrong management with depth who will stay post acquisition

Bolt-on acquisitions (in line with past policy) Focus on specific markets - all internationalAcquisition targets must give one of:

scale in large market where we are smallearly entry in priority new countrynew specialisms in existing priority markets

Case study: James Harvard (2007)*

Operating profit since acquisition

Provided entry into Japan– headcount increased from 47 to 100 since

acquisition– rolled out Hays’ core specialisms– expanded to Osaka

Provided entry into Pharmaceutical specialism in UK– now rolled out into 12 European countries using

Hays office network*bought for initial consideration of £24m in 2007

*bought for £48m in 2003 to enter Germany & Switzerland

£7.2m

FY03

FY04

FY05

FY06

FY07

£1.0m (4 months)

£4.6m

£13.2m

Case study: Ascena (2003)*

£16.1m


optimiseproductivity

in the UK

usetechnology

to gain advantage

Priorities for next 24 months

(see UK section)

2

Leverage benefits of scaleperational effectiveness

Use technology to gain advantagedevelop a scaleable, efficient, sustainable and integrated IT platform

90% common processesSingle database per countryPowerful search engineGlobal job board integrationInnovative use of internet

An automated billing and finance engine

Web enabled pay and bill engineClient and temp self servicePaperless billing and payrollExtensive KPI information

The aim

fully integrated

The benefit

Low cost per “transaction”Standardised methodologiesEasy-to-use yet extremely powerfulScaleable and rapid to deploy Provide multiple routes to market

Underpin our market leading position with a market leading technology platform

The implementation

3 year implementation programmePilot systems in small areas of our business and incremental roll out£30m-£35m cost spread over 5 years. P/L neutral after taking account of cost benefits

Incremental implementation approach


A global candidate / client management system


best pe plein the industry

Develop the 3

Build capability to pursue growth on multiple fronts in parallel

Developing the best people in the industry

A career with Hays

home grown talent:

lateral hires for specialist functional skills

assessment centres, milkrounds, referrals

induction programme to set expectations

Technical training CompensationRecruit

12 weeks modular training

on-the-job training

mentoring

monthly / quarterly formal reviews

performance related pay philosophy:


- graduates- second jobs- mid-late 20s

- consultants geared to commission (immediate cash)

- regional managers geared to local profit targets (annual cash)

- executives geared to divisional and Group profit targets (annual cash and shares, and long term shares)

Developing the best people in the industry (continued)

A career with Hays

Leadership training

Career growth & mobility

Performance management

200 person leadership training

external management courses (Insead, London Business School etc)

twin career track

fast track management

career mobility

agreed hurdles for productivity

weekly productivity statistics by consultant / manager

attrition management

twice yearly senior talent review at Management Board for top 300


- fee earning- management

- national- international- permanent v.

secondment


ne HAYSaround the world

Aus

tral

iaA

ustr

iaB

elgi

umB

razi

lC

anad

aC

hina

Cze

ch R

epub

licD

enm

ark

Fran

ceG

erm

any

Hon

g K

ong

Hun

gary

Irela

ndIta

lyJa

pan

Luxe

mbo

urg

Net

herla

nds

New

Zea

land

Pola

ndPo

rtug

alSi

ngap

ore

Slov

akia

Spai

nSw

eden

Switz

erla

ndU

nite

d A

rab

Emira

tes

Uni

ted

Kin

gdom

One

pla

tform

4

Build competitive advantage by integrating our global operations

Leveraging global reach and scale to build advantage

page 38Specialist Recruitment

Achieve more with the HAYS brand

page 39

What a powerful brand can deliver

Clients engage you- confident of service delivery

Consultants see you as the best employer- alleviates constraint on growth

Best candidates register with you- providing a strong candidate base

Long term competitive advantage- reflected in performance and valuation


Global market leader with reputation for:

A powerful brand

Employing the best people- trained the most effectively

Delivering best services to market- seen in each local market as the expert

+

=

>> New Group Marketing Director appointed to extract more of the benefits of our brand

Summary of the Group strategy

page 40

Build scale in existing locationsRoll out new offices, particularly in CE & RoWRoll out our specialisms across our networkEnter new countries and add bolt-on acquisitionsFocus on priority areas (largest 4 countries)

1. Growth by replicating our business

3. Develop the best people in the industry4. One Hays around the worldUtilise the ‘Hays Way’ across the worldwide networkLeverage our scale and geographical reachInvest in our worldwide brand

Utilise a reliable, scaleable, and integrated IT platform worldwideFocus on efficiency improvements in the UK & I

Build capability to execute on multiple opportunities in parallelMaintain strong performance based culture and systems


2. Operational effectiveness


Q&A sessionpart 1

Part 1meet the country

managementSpeed expo focusing on 4 key countries


Strengthen our business through increasing operational effectiveness

Continue market beating performance in Australia & New Zealand and build the newer specialisms

Ger

man

yU

K &

IA

us &

NZ

Fran

ce

Strengthen market leading position in IT and roll out other specialisms

Continue roll out in the provinces and build scale in Paris








APAC

CE & RoWUK & I


Clear objectives by region


Continue market beating performancein Australia & New Zealand and roll out our business in Asia


Aggressively roll out our business to establishtop 3 market positions in each of the key geographies

UK

& I

APA

CC

E &

RoW








APAC

CE & RoWUK & I


A clear objective

Aggressively roll out our business to establishtop 3 market positions in each of the key geographies


Balanced portfolio

15 specialisms18 countriesContinental Europe & RoW profile


net fees: £68.9moperating profit: £15.8mconversion rate: 22.9%

countries: 18consultants: 1,234

offices: 82

Net fees by specialism

Temp : Perm

Private : Public sector

49% 51%

97% 3%

18%

18%

42%

6%

16%

Accountancy & FinanceConstruction & PropertyITSales & MarketingOther

Net fees by country

41%

18%

10%

7%

5%

19%

GermanyFranceBeneluxCanadaSpainOther

Rapidly developing markets

Broad geographical coverage

Focused on corespecialisms

Information is for 6 months ended 31 December 2007

CR% increases with scale58% CAGR fee growth over 5 years

Balanced portfolio

15 specialisms18 countriesContinental Europe & RoW track record


Net fees

oper

atin

g pr

ofit

(£m

) convers ion ra te %

Operating profit & conversion rate %

0

10

20

30

40

50

60

70

80

H1 FY03

H2 FY03

H1 FY04

H2 FY04

H1 FY05

H2 FY05

H1 FY06

H2 FY06

H1 FY07

H2 FY07

H1 FY08

net f

ees

(£m

)

(4) (2)

02468

1012141618

H1 FY03

H2 FY03

H1 FY04

H2 FY04

H1 FY05

H2 FY05

H1 FY06

H2 FY06

H1 FY07

H2 FY07

H1 FY08

(30)%

(20)%

(10)%

0%

10%

20%

30%Op profit CR%

The competitive landscape

Embryonic marketssubstantial opportunity

Internal corporate HR departments

Specialist recruitment groups

Specialist recruitment in Continental Europe & RoW region

Currently, it’s not about the competition. It’s about persuading potential clients to use specialist recruitment groups

Michael Page

HR departments

Competitor

2

3

Our market in CE & RoW

1

Rank

Pie chart is indicative only


Allocating resources to the best opportunities


Develop our 4 core

specialisms in perm placement

markets

Develop newer

specialisms in existing

geographies

Develop the temp market

in existing geographies

Prio

rity

4 core specialisms are:Accountancy & Finance, Construction & Property, IT, Sales & MarketingFocus development predominantly on perm marketsBuild capacity in key citiesExpand regional network

Not a core area of focus now but a substantial opportunity in the futureCurrently an opportunistic approach: will incubate & roll out other specialisms if there is a market and it does not detract from the development of our core specialisms

Not a core area of focus now (except in Germany) but a substantial opportunity in the future Started to roll out German IT contracting model into Benelux and NordicsWe are undertaking preliminary market research

Key priorities


Germany- diversify the business whilst growing the core IT specialism

Aggressively develop footprint across the region- focusing on core specialisms principally in the perm markets

Develop strength in depth in the management team- accelerated management development programme

Recruitment and development- growth plan requires rapid and substantial headcount increase

France- build Paris scale and continue roll out in provinces

Opening new offices is low risk and low cost


Business replicates

low set up costs

Office modest premises, IT and low kit out cost

Growth

New consultantstypically 5 - 7 consultants (30% variable in year 1)

Advertising and promotionlocal advertising and internet

Regional & Group supportmarket research, start up, legislation

Low first year cost

~ £100k pa

~ £230k pa

~ £20k

£NILincremental cost

~ £350ktotal year 1 cost

Typically breakeven after 6 – 18 months & full payback within 12 – 24 months

Indica

tive b

ased

on of

fice o

penin

g in E

U

Year 1 new office cost

Simple market proposition


enables rapid penetration into new markets

2. Approach target clients who are recruiting- explain our “no placement, no fee” approach

3. Clients engage Hays- fee is contingent on success so minimal downside for client

5. Organise interviews and offer process - & keep in regular contact with candidates and clients after making placements

6. Next time client recruits, they phone Hays- the beginning of a relationship

Developing new markets

knocking down doors

Ope

ning

up

in a

new

mar

ket

1. Build candidate database- through advertising: paper and web, networking locally and internationally

4. Match selected candidates to client requirements- draw from our database and further advertising

Rapid traction in new markets


track record indicates model works in wide range of economies

Business replicates

across geographies

Spain (entry: FY02)

>> breakeven within 24 months

FY07

FY06

FY05

FY04

FY03

FY02

net f

ees

(£m

)

£0.4m

£2.1m

£3.2m

£5.2m

£1.2m

£7.2m

Canada (entry: FY02)


Brazil (entry: FY07)

Dubai (entry: FY06)


FY07

FY06

FY05

FY04

FY03

FY02

net f

ees

(£m

)

£0.2m

£0.4m

£0.7m

£1.5m

£3.1m

£6.0m

Number of offices: 1

Number of specialisms: 8

FY08F net fees: £3m

Number of offices: 2

Number of specialisms: 8

FY08F net fees: £2.5m


Plan to aggressively develop our footprint


Planned office roll out over next 3 years

Existing offices

11Austria, Germany & Switzerland

France

Benelux

Canada

Iberia & Italy

S America

Other

Planned offices

+11

+9

+6

+6

+9

16

21

9 +8

CE & RoW # of offices

H1 07H1 06

H1 08

6661

82

Develop existing officesbuild critical mass in major cities

Roll out new officesincrease # of offices by 60% over 3 years

8

15

Existing offices are as at 31 December 2007. Planned office openings are based on current business plans for existing and new countries

2








APAC

CE & RoWUK & I


A clear objective



Balanced portfolio

16 specialismsUK & Ireland profile



consultants: 3,355offices: 259


Temp : Perm


50% 50%

77% 23%

Net fees by region

26%

25%22%

14%

8%5%

LondonNorth & ScotlandHome CountiesMidlands & East AngliaSouth West & WalesIreland

#1 market position Broad geographical coverage

Increasingly diversesector exposure

39%

27%

7%

27%

Accountancy & FinanceConstruction & PropertyITOther


Balanced portfolio

16 specialismsUK & Ireland track record


Net fees

oper

atin

g pr

ofit

(£m



0

50

100

150

200

250

H1 FY03

H2 FY03

H1 FY04

H2 FY04

H1 FY05

H2 FY05

H1 FY06

H2 FY06

H1 FY07

H2 FY07

H1 FY08

net f

ees

(£m

)

0

10

20

30

40

50

60

70

80

H1 FY03

H2 FY03

H1 FY04

H2 FY04

H1 FY05

H2 FY05

H1 FY06

H2 FY06

H1 FY07

H2 FY07

H1 FY08

0%

5%

10%

15%

20%

25%

30%

35%

40%Op profit CR%

8% CAGR profit growth over 5 years10% CAGR fee growth over 5 years

Balanced portfolio

16 specialisms


Other Specialisms growth Analysis of Other Specialisms (by net fees)

Many at early stage of development18% CAGR fee growth over 3 years

Investing significantly in Other Specialisms in the UK & IOther Specialisms now represent 27% of UK & I net fees

net f

ees

(£m

)

0

10

20

30

40

50

60

70

H1 FY05

H2 FY05

H1 FY06

H2 FY06

H1 FY07

H2 FY07

H1 FY08

15%

12%

12%

10%9%8%

6%

28%

Resource Management

Human Resources

Education

Banking

Financial Services & Insurance

Legal

Purchasing

Other

Pie chart is based on net fees for 6 months ended 31 December 2007

A solid platform to build on


The market leader

#1 in temp & perm

Nationwide footprint> 250 offices

unrivalled coverage

Balanced portfolio16 specialisms

public & private sector

A market leading CR%

business model works well

Strong sales focus

with experienced management team

net fees over 16 years

Track record

0

50

100

150

200

250

300

350

400

450

FY92 FY94 FY96 FY98 FY00 FY02 FY04 FY06

strong on-line presence

UK

& I

busi

ness

An operational plan in 3 phases


reinvigorate top line growth

Phase II >>increase

operational effectiveness

Phase I >>

Phase III >>other opportunities

in our sights

Current key priorities

Secondary priorities

FY07 / FY08 focus

Focused evolution

refining the model

Nationwide public sector strategyIncrease presence in higher end marketsLeverage our brand valueLow cost delivery model for lower end market

Develop Account Management

Improve front office productivity

Improve back office efficiency

>>

>>

>>

Net fee growth in last 18 months (ave: 10% LFL) has compared favourably to the market



Phase IIAccount

Management focuscross sell services into large clients

SME clients

Strong share of SME market

Regionalised approach works

Large corporate clients

Enviable client list

Large cross sell opportunity

currently underweight in large corporate market

currently no consistent approach to client account management

Modest cross sell opportunity Ability to join up client service

£332m(80%)

£85m(20%)

*Pie chart represents UK & I net fees split between SMEs and large corporates based on FY07 data. Information should be viewed as indicative only

Analysis of UK & I net fees*

Develop account management (continued)


page 64

Phase IIAccount

Management focusincrease share of client spend

National Accounts Director appointed

Assigning account managers to large clients

Joined up UK approach over-layering specialist reporting lines

Benefits

Cross sell between specialisms and regionsCross sell between perm and temp businessesCompetitive advantage through single point of contact and ‘one stop shop’Improved and consistent client service levelsLow cost implementation and incremental client by client implementation mitigates risk

Cross sell opportunities(sample of clients for illustrative purposes)

HSBC

Banking

Accountancy &

Fin.

Construction &

Prop.

IT HR

Financial Services

Sales & M

arketing

Purchasing

Office Support

IBM

GE

Sodexho

Fujitsu

Siemens

BT

HBOS

RBS

strong relationshipuntapped opportunity




page 65

action plan


Phase IIfocus on front

office productivity

Planning started now

Begin to roll out operational changes in Autumn 2008

Start to see benefits from July 2009 and full benefits from July 2010

Understand and deploy best practice across offices - practices and procedures, organisational structure, reward

Reduce administrative burden - re-engineer processes, technology

Utilise technology to find opportunities and candidates- webtools, Adapt upgrade

Programme to move higher in candidate salary bands- increase presence in > £40,000 market

Tighten pricing and discounting procedures- price / volume trade off

Performance review management- consistent approach

Improve fee generation per consultant- increase volume, improve mix, increase price

Timeframe


Candidate contact activity (26%)

Client contact activity (32%) Non contact activity (42%)

Analysis of consultant activity by time spent*

*Analysis is based on research conducted on a sample of our UK offices. It should be viewed as indicative only

Phase IIfocus on front

office productivity

Improve front office productivity (continued)increase share of consultant time spent on fee generating activity

Fee generating activity

Fee generating activity

Non fee generating activity

Cost of non contact activity

~ £60m pa

focused on using this spend better

Increasing client contact activity by 1% could increase net fees by £7m pa

Net fees generated

£417m (FY07)

1% contact activity = £7m net fees

Improve back office efficiency


Phase IIfocus on back

office efficiencyreconfigure the back office by June 2010

Future back office profile Current back office profile

Manually intensive

Projected financial information is based on management estimates as at April 2008. *‘MIS’ is management information systems. **Capex cost is included in the total IT Group estimate included in the ‘Focused Evolution’ section

Automated and efficient

~ £13m - £16m paCost base~ £21m paCost base

Scaleable but few economies of scale Scaleable with economies of scale

phased implem

entation already in progress

MIS* good but regimented MIS* good and versatile

Manual client / candidate interface Automated client / candidate interface

Well run and managed Well run and managed

+ contribute to improved front office productivity

Capex cost ~ £15m - £20m**depreciated over 5 yearsCash saving ~ £5m - £8m pa

Solid UK business with opportunities for enhancement


Growth

The market leader

#1 in temp & perm

Strong on-line.

Nationwide footprint > 250 offices

Balanced portfolio

16 specialisms public & private

A leading CR%

business model works well

Strong sales focus

experienced management fees over 16 yrs

Track record

Phase III of plan for 2009+

Phase II of plan in progressPhase I of plan implemented FY07 / FY08

reinvigorated top line growth

increase operational effectivenessother

opportunities in our sights

0

50

100

150

200

250

300

350

400

450

FY92 FY94 FY96 FY98 FY00 FY02 FY04 FY06



Improve back office efficiencyCle

ar o

bjec

tive








APAC

CE & RoWUK & I


A clear objective

Continue market beating performancein Australia & New Zealand and roll out our business in Asia


Balanced portfolio

17 specialismsAPAC profile

page 71


countries: 6 consultants: 1,129

offices: 50


Temp : Perm


44% 56%

15%85%

38%

24%

10%

7%

21%

Accountancy & FinanceConstruction & PropertyITResources & MiningOther

Net fees by country

93%

Australia / NZJapanHong KongChinaSingapore

#1 Market position Increasingly diversesector exposure

Big in Australia & rapidly growing in Asia



39% CAGR fee growth over 5 years

Balanced portfolio

17 specialismsAPAC track record

page 72

Net fees

oper

atin

g pr

ofit

(£m



0102030405060708090

H1 FY03

H2 FY03

H1 FY04

H2 FY04

H1 FY05

H2 FY05

H1 FY06

H2 FY06

H1 FY07

H2 FY07

H1 FY08

net f

ees

(£m

)

05

1015202530354045

H1 FY03

H2 FY03

H1 FY04

H2 FY04

H1 FY05

H2 FY05

H1 FY06

H2 FY06

H1 FY07

H2 FY07

H1 FY08

0%

10%

20%

30%

40%

50%

60%Op profit CR%

44% CAGR profit growth over 5 years


8 reasons why we will continue to outperform

page 73

Excellent market

positionstrength across

all states

Brand strength

the “go to” brand underpinned by large advertising presence

One Haysbusiness

operates as one

Confidencerepeated market leading performance in strong economy engenders

success culture

Consultant training

strong training culture and programmes

Excellent customer service

quality people delivering the highest

standards

Leading IT platform

highly efficient and automated back office

Strong management

with proven track record underpinned by

‘Hays DNA’

in Australia & New Zealand

8key strengths

in Australia & NZ


#1 in Australia & New Zealand by a distance

page 74

#1 market position

strength across all states

Robert Walters

Michael Page

Hudson

Competitor*

£50m2

£33m3

~ £30m4

£134m

Net

Australia & New Zealand

1

Rankfees

*Net fees of Hays and competitors is based on year ended 31 December 2007. Robert Walters net fees are an estimate

#1#1

#1

#1#1

#1

#1


Refining the model in Australia & New Zealand

page 75

Recruitment and retention- being the employer of choice

Strengthen account management- exploit more opportunities to cross sell

Develop the smaller specialisms- Hays best positioned to capitalise on market opportunity

Continue to strengthen infrastructure for growth- people and systems

Sustain our outperformance versus the marketfocus on core specialisms

Focu

s ov

er n

ext 1

8 m

onth

s

Upgrade our training programmes- consultants and managers


Asia represents a substantial long term opportunity

page 76

Rapid

ly de

velo

ping

econ

omies

Rapid

ly in

crea

sing

serv

ice se

ctor

s

Rapid

ly de

velo

ping

wor

kfor

ce sk

ills

“By 2030, Asia will be 58% of the world’s GDP. By 2050, China will be the largest economy, with 45% of world GDP and India will be at 28%”*

= substantial long term opportunity

Asia

Asia Asia

Develop Asia presence

build critical mass

*Quote is from Milken Institute, AAPPS Bulletin, Vol 16, No 4


for specialist recruitment

Japan

Hong Kong

China

Singapore

Rolling out our business across Asia

page 77

Net fees by country (6m ended 31 Dec 2007)

£1.8m

£0.5m

£2.8m

Build a solid platform- infrastructure and local management

Develop critical mass in major cities- existing locations and office roll out

Develop presence in new countries- India, Malaysia, South Korea

Strategy in Asia

Focus on core specialisms- primarily in perm markets

£0.7m

Office locations in Asia

1122

33

88

44

55 6677

Beijing

Tokyo

Osaka

Shanghai

11

22

33

44

Guangzhou

Shenzhen

Hong Kong

Singapore

55

66

77

88


Part 2meet the country

managementSpeed expo focusing on 4 key countries



Continue market beating performance in Australia & New Zealand and build the newer specialisms

Ger

man

yU

K &

IA

us &

NZ

Fran

ce

Strengthen market leading position in IT and roll out other specialisms

Continue roll out in the provinces and build scale in Paris








APAC

CE & RoWUK & I


Extremely cash generative business

Specialist Recruitment Page 80

Operating profit & cash flow (£m) Uses of cash flow (indicative only)

Highly cash generative business model- strong track record

Tight working capital control- strict debtor control (debtor days: ~ 40)

0

50

100

150

200

250

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

Operating cash flow* Operating profit

0%

20%

40%

60%

80%

100%

*Note: operating cash flow is post capital expenditure and working capital movements. Operating profit is before goodwill and exceptional items

Cash follows profit consistently- average 94% conversion in last 8 years

Low capital intensity- ave capex of £12m pa over last 3 years

Taxation

Dividends

Surplus for buyback, acquisitions & other

Working capital / other


track record

Cash returned to shareholders


FY08 YTD share buyback is as at 31 March 2008. FY08F share buyback is our current guidance for the full year

0

50

100

150

200

250

300

FY05 FY06 FY07 FY08(YTD)

0%

5%

10%

15%

20%

25%

Dividend per share

Shar

e bu

y-ba

ck (£

m)

Cum

ulat i ve % of s hare ca pit al

Share buy back programme

Sustainable & progressive dividend policy- dividend cover policy: 1.5x – 2.5x

Shares bought back since Nov 2004: 20%- FY08F share buyback: ~£100m (~5% share cap)

1.0p

2.0p

3.0p

4.0p

5.0p

6.0p

FY04 FY05 FY06 FY07 FY08

Interim dividendFull year dividend

+13%

+28%+15%

Rebasing of dividend in FY06

Cum % of share cap bought backBuy back

Return of cash following business disposals

£128m

£215m

£53m £64m

£72.4m

£55.1m£51.5m

£63.5m

+16%

Return of cash funded by operations

Dividends & buy back

track record

Financial disciplinestrong balance

sheetStrong balance sheet with conservative debt level


* Ratios are for the year ended 30 June 2007. **£41m is as at 31 December 2007, net of deferred tax (gross: £58.8m). DB is the defined benefit scheme

(19.6)(19.6)Acquisition deferred consideration

(50.2)(48.4)Other provisions and liabilities

188.2216.2

(76.2)(114.9)Net debt

112.0101.3Net assets

(43.5)(58.8)Retirement benefit obligations

(35.9)

154.0

28.3

28.2

168.4

Dec 2007

(31.7)

123.3

22.7

25.2

162.0

June 2007

Tax liabilities

Net working capital

Net deferred tax

Property, plant & equipment

Goodwill & intangibles

Balance sheet £m

Net debt / EBITDA: 0.34x- debt covenant: < 3

EBITDA / Interest: 38x- debt covenant: > 4

Low pension deficit of £41m**- DB scheme closed to new members

Strong working capital control- debtor days: ~ 40

£150m - £250m net debt guidance- FY08 YTD ave net debt ~ £100m

£460m bank facilities in place- 5 year facility to February 2011

Cash is Kingcash focusA cash focused approach


Extremely cash generative business- average conversion of 94% in last 8 years

Buy back is a recurring theme- bought back 20% of share capital in 4 years

Consistent focus on cash- engrained in our culture

Strong balance sheet- conservative view on net debt

Sustainable and progressive dividend- +66% increase in DPS* in the last 3 years

Excess cash returned to shareholders- through dividends and buy back

*DPS is dividend per share

Summary








APAC

CE & RoWUK & I



The Hays Specialist Recruitment business was not a stand alone group for the majority of the last 15 years. It was a division of the wider business services group of Hays plc until the Hays plc transformation completed in 2004. As such, much of the data presented within this section of the presentation has been extracted from the internal, unaudited, management accounts and associated information of the specialist recruitment division. Overseas currencies have been translated into GBP£ at the prevailing average exchange rates for the relevant half year and full year.All financial information for periods ending after 30 June 2004 has been prepared under IFRS and all financial information for periods prior to this has been prepared under UK GAAP. The impact of the change to IFRS is not material to the trends shown in this presentation.


Important notice

Hays proved relatively resilient in the last downturn


*Net fees, profit and conversion rate (CR%) of recruitment business only; CR% is the proportion of net fees converted into profit. Information extracted from financial statements and management accounts information

0

100

200

300

400

500

600

700

FY92

FY93

FY94

FY95

FY96

FY97

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

£216

m

£m

£146

m

Con

vers

ion

rate

%

In the ‘02 downturn

- net fees fell 9%

- operating profit fell 22%

- CR% fell 920 bps

(peak to trough)

Net fees and operating profit of Hays Specialist Recruitment

£366

m

£634

m

Net fees Operating profit CR%

long term growth

Short term cycles, long term growth- growth in 14 out of 16 years

- 29% CAGR profit over 15 years

long term growthTemp business was more resilient than perm business


*Recruitment business net fees shown only; information derived from financial statements and management account information

Group temp placement net fees (£m) Group perm placement net fees (£m)

0

50

100

150

200

250

300

350

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

56%

net

fees

60%

net

fees

51%

net

fees

0

50

100

150

200

250

300

350

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

40%

net

fees

49%

net

fees

44%

net

fees

£205

m

£324

m

£161

m

£310

m

Temp net fees fell 4% in last downturn- peak to trough

Perm net fees fell 16% in last downturn- peak to trough

long term growthUK & I proved the most resilient division in last downturn


Recruitment business net fees shown only; information derived from financial statements and management account information.The disposed French business results have been included within CE & RoW prior to FY03. *APAC was Aus & NZ only up to and including FY05

0

100

200

300

400

500

600

700

FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07

£m

34% International

13% International

UK & I APAC* CE & RoW

16% International

Group net fees by division

(H1 FY08: 40%)Net fees fell by- UK & I – 7% - APAC – 28%- CE & RoW – 11%

‘02 downturn

long term growthUK & I profits reduced by 17% in the last downturn



£m

0

50

100

150

200

250

300

350

400

450

FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY070%

10%

20%

30%

40%

50%

Con

vers

ion

rate

%

£306

.3m

£417

.1m

£125

.1m

£140

.8m

£103

.6m

£285

.7m

UK & I net fees and operating profit since FY99

Operating profit Net fees CR%

CR% fell 840 bps(FY00 to FY03)

Op profit fell 17% (peak to trough)

Net fees fell 7%- A&F decreased 9% - C&P grew 7%- IT decreased 26%- Other decreased 5%

51% A&F weighting in FY01 - 39% in FY08 H1

‘02 downturn

long term growthPublic sector growth underpinned the resilience in UK & I


UK & I Accountancy & Finance

0

30

60

90

120

150

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

Net

fees

(£m

)

0

5

10

15

20

25

Publ

ic s

ecto

r fee

s as

% to

tal f

ees

UK & I Construction & Property

0

20

40

60

80

100

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

Net

fees

£m

0

5

10

15

20

25

30

35

40

Publ

ic s

ecto

r fee

s as

% to

tal f

ees

Public sector Private sector

*Net fees of the A&F and C&P specialisms shown, split between public and private sector; information derived from management accounts, and historic management information systems. The financials presented as dotted / shaded have been estimated from internal management information sources

Public sector fees as % total feesPublic sector Private sectorPublic sector fees as % total fees

FY01 to FY02, A&F net fees fell by 9%- private sector fell 13%; public sector fees grew 12%

A&F public sector weighting increased- from 14% in FY01 to 20% in FY07

FY01 to FY02, C&P net fees grew by 7%- private sector fell 1%; public sector fees grew 38%

C&P public sector weighting increased- from 20% in FY01 to 26% in FY07

long term growthAus & NZ profit reduced by 33% in the last downturn



£m

Operating profit Net fees

Con

vers

ion

rate

%

CR%

Australia & NZ net fees and operating profit

0

20

40

60

80

100

120

FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY070%

10%

20%

30%

40%

50%

60%

£39.

1m

£109

.5m

£53.

8m

£16.

9m

£28.

0m £11.

4m

CR% fell 640 bps(FY00 to FY03)

Op profit fell 33% (peak to trough)

Net fees fell 28%- A&F fell 36% - C&P grew 8%- perm fees fell 26%- temp fees fell 30%

70% A&F weighting in FY01 - 38% in FY08 H1

‘02 downturn

Strong managementproven track recordExperienced at managing our business through the cycle


Length of service with Hays

0

5

10

15

20

25

30

UK

Finance Director

Managing D

irector (A&

F)

Managing D

irector (C&

P)

Managing D

irector (IT)

Managing D

irector (Other)

Managing D

irector (Other)

Managing D

irector (HR

M)

AP

AC

Managing D

irector

AP

AC

Finance Director

Managing D

irector (Asia)

Managing D

irector (RM

)

Regional D

irector

Regional D

irector

Regional D

irector

CE

& R

oW M

anaging Director

CE

& R

oW Finance D

irector

CE

& R

oW O

perations Director

Germ

any Managing D

irector

France Managing D

irector

Benelux M

anaging Director

S E

urope Managing D

irector


year

s

(main divisional directors below plc Board level)

UK & I Directors APAC Directors

ave: 16 years

CE& RoW Directors

Business set up to respond to market conditions rapidly


The key performance indicators we measure

Perm & temp

volumesabsolute & trend

Temp margin %

absolute & trend

Average perm fee

absolute & trend

Placements per

consultantabsolute & trend

Recruitment cycle

trend

By country

By sector

By branch

By employee

By type

New assignmentsnumber & length,

trend

Number of interviews

number & length, trend

Responsive management

on top of the business

Highly variable cost base calibrates to market conditions


0%

20%

40%

60%

80%

100%

Page 94

Cost base analysis

Information extracted from management accounts. *P&P represents print and postage

Cost base characteristics

66% of employees are consultants- ~ 50% of consultant pay is variable

Properties are on rolling leases- typically 3 year lease breaks

75% of cost base is people related- manage cost base through attrition

Payroll costs (75%)

Occupancy (10%)

Advertising & P&P* (5%)IT & Professional (4%)

Other (6%)

Agile cost base

adapts rapidly

Built to withstand short term cycles and grow long term

Page 95

Large scale business- net fees £634m (FY01: £366m)

Experienced management team- average 16 years experience

Resilient public sector business- 20% public sector weighting

Balanced business- 49% temp business weighting

Highly variable cost base- 75% of cost base is people related

40% international across 27 countries - FY01: 16%; 9 countries

17 specialisms - FY01: 8 specialisms

Mix of large and SME customers- 30,000 customers

Broad in-country geographical coverage> 250 offices across UK & I

Impressive track record over 40 years- short term cycles; long term growth

17% profit CAGR since last downturn& 29% CAGR over 15 years

0

50

100

150

200

250

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

Operating profit (£m)

17% CAGR


long term growth








APAC

CE & RoWUK & I



Attractive markets worldwide

with strong long term growth

drivers

Strong cost control

market leading CR% & flexible

cost base

Strong management

with proven track record

underpinned by ‘Hays DNA’


#1 UK #1 Australia

& growing in CE


recruitment>£2bn revenue

391 offices

Business model replicates

on global scale with low

expansion risk


with low capital intensity

Balanced portfolio

27 countries 17 sectors

perm & temp on-line presence

Growth

0

20

40

60

80

100

120

140

160

180

200

FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07

profit over 16 years

Consistent delivery

Positioned for growth


Immediate strategic imperatives by region


Group

Continued internationalisation to complete global footprintIntegrate operations around the world to leverage scaleStrengthen and deepen management capability Roll out technology platform to support growthRetain focus on profit and cash generation for a strong balance sheet

Continental Europe & RoWFocus on establishing core specialisms in each marketFocus on priority markets (Germany, France)Diversify the German business whilst growing the core IT specialismDevelop the French business by building scale in Paris and rolling out in the provincesAggressively increase number of offices and achieve critical mass in major cities

UK & Ireland

APACMaintain focus on core specialisms whilst aggressively growing the smaller specialisms in Australia & NZTake advantage of buoyant markets to achieve critical mass and management depth across Asia

One HAYSworldwide

Focus on operational effectiveness:- develop Account Management- improve front office productivity- improve back office efficiencyAggressively rollout smaller specialismsStart work on second priority areas (‘Phase III’)

Long term market opportunities are substantial


our track record shows we can capture these

Substantial opportunity

Hays positioned to take it

UK

Germany

Spain

France

Italy

Netherlands

Belgium

Canada

Hays net fees Country population (country population viewed as a proxy for potential market size in long term)

Other countries in CE

The market developmentwhich drove UK profits from £5m to £140m over 16 years is now beginning across Europe….

Our vision of the future


We will still be talking about skilled candidate shortages- a key driver of growth for a long time

3 or 4 groups will have built global businesses- and will be the market leaders in all the key markets

6 predictions for Hays and specialist recruitment markets in 2018

Continental Europe will be our largest division- the UK & I will represent about a third of our Group

Our markets will still be growing strongly- growth will be subject to the economic cycle, but many more good years than bad

Hays will be substantially bigger than today- and will be making money in 40+ countries (2008: 27 countries)

Leading our marketsin specialist recruitment

Hays will be widely recognised as the leading brand in our industry- helping us attract consultants, clients and candidates

Building the global leader in specialist recruitment


1997 - 2007

2008 - 2018

Facing more opportunities than ever before


Q&A sessionpart 2

Short term cycles; long term growth








APAC

CE & RoWUK & I


Speaker biographies


Alistair Cox, Chief Executive

Appointed to the Board on 1 September 2007, he succeeded Denis Waxman as Chief Executive. A Chartered Engineer, he was previously Chief Executive of Xansa plc and formerly Regional President of Asia for Blue Circle Industries.

Paul Venables, Group Finance Director

Appointed Group Finance Director on 2 May 2006. A Chartered Accountant, he came to the Group from DHL Logistics, a division of Deutsche Post World Net. Prior to the acquisition of Exel plc by Deutsche Post in December 2005, he was Deputy Group Finance Director and a member of the executive board of Exel plc. During 13 years with Exel he held a number of senior finance and operational roles, including Finance Director of Exel’s European and Global operations.

Appendices

Speaker biographies


Nigel Neap, Managing Director, APAC

Appointed Managing Director, APAC in 1997. Previously he worked in Hays’ UK & I Accountancy & Finance business as Regional Director (1991 – 1997, Yorkshire & East Midlands), Regional Manager (1991 – 1993, Yorkshire), Senior Manager (1989 – 1991, Leeds), Branch Manager (1989, Hull) and Consultant (1988 – 1989, Altrincham).

Nick Cox, Managing Director, CE & RoW

Appointed Managing Director, CE & RoW in 2006. Previously he worked in Hays’UK & I business as Managing Director of ‘Other Specialisms’ (2000 – 2006) and as Managing Director, UK & Europe IT (1997 – 2000). Between 1983 and 1997,he held a number of roles in the UK & I Accountancy & Finance and Banking businesses as he progressed from being Consultant in 1983 to a Regional Director in 1997.

Appendices

Hays plc Investor day - Investis CMSfiles.investis.com/hays/docs/idp_2008-04-17.pdf · Investor Day...

Documents

Transcript of Hays plc Investor day - Investis CMSfiles.investis.com/hays/docs/idp_2008-04-17.pdf · Investor Day...