analysts meeting lisbon march 2003 part 2

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Information about analysts meeting lisbon march 2003 part 2

Published on April 3, 2008

Author: Umberto


Slide2:  Report on North America Analyst Meeting Joseph Strong Vice Chairman & Zone Manager Vedior North America Slide3:  Agenda Market trends Overview of operating companies New acquisitions New initiatives 2003 priorities and summary Market Trends - General:  Market Trends - General GDP 2002 growth rate: 2.4% GDP 2003 projected growth rate: 2.6% 2002 unemployment rates: 5.6% - 6.0% February 2003 unemployment rate: 5.8% US economy continues to stall The US dollar plunged to a new four-year low against the Euro Sources: Wall Street Journal Bureau of Economic Analysis Market Trends - General:  Market Trends - General Consumer confidence continues to falter The US economy last month suffered its worst job drop (38,000) since the aftermath of the Sept. 11th attacks as worries about a war with Iraq led to widespread caution about hiring. Visibility exceptionally low in the current climate Economists say businesses are holding off on hiring until they have a clearer picture of what is happening as far as a possible war with Iraq goes. Sources: Reuters Wall Street Journal Bureau of Economic Analysis Market Trends – Staffing Industry:  Market Trends – Staffing Industry Job order volume has stabilized in IT and professional staffing Job order volume decreased in healthcare staffing Job order volume increased slightly in commercial staffing Large healthcare companies downgrading 2003 expectations Slide7:  Agenda Market trends Overview of operating companies New acquisitions New initiatives 2003 priorities and summary Who We Are:  Who We Are We are 9% of Vedior’s global revenue and 10% of Vedior’s global operating income* Our focus is specialty staffing (high margin and bottom-line focused) We service approximately 8,000 customers during the year and none account for greater than 3% of our revenue We operate various brands within and serving each sector to best meet client needs * 2002 Annual Results Slide9:  Corporate Management Group New Vedior NA Structure (a.k.a The House) Slide10:  35 offices across the US and Canada IT Sector Sapphire Technologies:  Sapphire Technologies Specialties: IT Office(s): 1 in Canada, 32 in US Web site: Founded in 1984, Sapphire Technologies North America (formerly known as New Boston Systems) is one of the largest providers of technical professionals in the country. The firm services companies across the entire industrial spectrum through a network of offices across North America. Abraxas US:  Abraxas US Specialties: JAVA/SAP Office(s): Glendale, CA Web site: Founded in 1990, Abraxas US provides Contract and Permanent Recruitment services specializing in SAP and JAVA. Abraxas US targets the “high end” IT market and has an “import” model for recruitment. DB Concepts:  DB Concepts Specialties: IT Office(s): Woburn, MA Web site: Founded in 1994, DB Concepts is an off-shore recruitment company focusing on importing IT talent from India. Slide14:  35 offices across the US Professional Services Sector Vedior Professional Services:  Vedior Professional Services Specialties: Accounting, Finance, Banking, Human Resources, Interim Management, Legal Office(s): 35 in US Website: Through its distinctive brand names, AccountPros, Human Resources International, Ingenium Resources, and Stone Legal Resources Group, Vedior Professional Services offers a suite of contract and permanent placement services. Slide16:  Healthcare Sector 16 offices across the US Clinical One:  Clinical One Specialties: Per Diem, Travel, Contract, Private Duty and Permanent Health Care Professionals Office(s): 16 in US Web site: Founded in 1993, Clinical One has grown organically to $66 million in revenues, an annual growth rate of over 60%. Clinical One provides traveling nurses nationally through a central office and Per Diem nurses locally through its branch network. Legislation: Massachusetts legislation may effect nursing home bill rates. Slide18:  Commercial Sector 31 offices across the US Placement Pros:  Placement Pros Specialties: Clerical, Light Industrial, Legal, Security Office(s): 31 in US Web site: Founded in 1992, Placement Pros came to Vedior NA via the Toner Acquisition in 1994. Placement Pros has enjoyed steady growth for the past nine years, and in 2002, the former New Boston Select Staffing division merged with Placement Pros, which is now the common brand across the US. Legislation: California worker’s compensation benefits. Slide20:  Education Sector 1 office in the US OPIS:  OPIS Specialties: Education Office(s): Lowell, MA Web site: Founded in 1988, OPIS was created to address school districts’ unique requirements of obtaining qualified substitute teachers to fill teacher absences. Facing a much different model than in the UK, OPIS is marketed as a complimentary offering of Placement Pros’. Slide22:  12 offices across the US and Canada Engineering Sector ATS Reliance:  ATS Reliance Specialties: Engineering/Technical Office(s): 7 in Canada, 2 in US Web site: Based in Canada, ATS Reliance has been providing Engineers, Designers/Drafters, Manufacturing support, and Light Industrial personnel to the Manufacturing and Transportation Industries and various government agencies throughout Canada for 25 years. Legislation: Kyoto Protocol may have an impact on capital investments. Sapphire Design:  Sapphire Design Specialties: CAD, Design, Engineering Office(s): 3 in US Web site: Founded in 1999 as a division of Sapphire Technologies, Sapphire Design provides qualified technical personnel to companies throughout the US. Global Managed Services:  Global Managed Services A one-stop option for those customers with a very wide-range of staffing requirements. Global Managed Services :  Global Managed Services Specialties: Managed Services Office(s): Woburn, MA Web site: Founded in 2000, Global Managed Services (GMS) specializes in managed services and Sub-Tier Vendor Management in support of national and regional clients. Client demand and a recently signed partnership with Chimes has contributed to the rapid growth of this specialty division. Slide27:  Agenda Market trends Overview of operating companies New acquisitions New initiatives 2003 priorities and summary Acquisitions:  Acquisitions No acquisitions in 2002 Future Priorities To acquire specialty staffing firms to compliment current stable of service offerings. Focus will be in Healthcare with revenue ranges from $10-$50 million New Initiatives, Products and Services:  New Initiatives, Products and Services Zone-wide Initiatives:  Zone-wide Initiatives Divisions working to partner with the Global Managed Services group, joining forces to enhance the effectiveness of the National Accounts group and increasing the inter-divisional cross selling effort. Focus on expanding GMS Increase the accountability and production of each sales desk Decentralized collection functions Complete transition to Vedior NA Professional Services Group Initiatives:  Professional Services Group Initiatives Focus on expanding their developing Ingenium line of business (interim management) Re-build the Stone Legal Resources business. Build the contract accounting business Traditional Business Initiatives:  Traditional Business Initiatives Focus on expanding the suite of services to all locations; i.e. security, administration, OPIS, etc. Expand into the middle part of the country Healthcare Initiatives:  Healthcare Initiatives Create one brand, Clinical One. (Phase out New Boston Medical Staffing brand) Expand the per diem business Explore further expansion in this sector by acquisition Information Technology Initiatives:  Information Technology Initiatives “Back to basics” Refocus on gaining market share with a keen focus on industries less affected by a down economy (i.e. government, healthcare etc). Slide35:  Agenda Market trends Overview of operating companies New acquisitions New initiatives 2003 priorities and summary Summary - 2003:  Summary - 2003 We will leverage our long running theme of Global Presence, Local Focus, offering a wide spectrum of staffing services. We will also focus on expanding our specialty business via organic growth and expansion and leveraging market share within our existing key accounts. The uncertainties in the market will make for another challenging year, but we are confident we will continue our track record of outperforming the market and our competition in 2003 and beyond! Slide37:  Any Questions? Slide38:  Other Operating Companies and Associates Zach Miles Vice Chairman Slide39:  Accountants Inc. - US Acsys Inc. - US South America - Argentina - Brazil - Chile Other Operating Companies Slide40:  Niscom – Japan Fairplace – UK/Japan/Portugal TriNet – US Only the Best – South Africa Telereliance - Canada Associates Slide41:  Accountants Inc. and Acsys Combined management teams to rationalise redundancies and develop synergy Back office functions and systems integrated generating an annual savings of € 2 million National network positioned well to take advantage of recovery of U.S. economy No overlapping markets in the two Companies Opportunity for growth in vertical markets for Accounting & Finance Slide42:  Accountants Inc. and Acsys New regulations in corporate governance (Sarbanes Oxley) creating further opportunities in Internal Audit and specialty finance positions High end market growth potential in Accounting & Finance with AI Executive and Acsys Business Consulting Divisions Foundation in Acsys IT Practice positioned for expansion Expansion opportunities in Accountants Inc. franchising network Slide43:  Argentina Economy stabilizing after peso devaluation and recession in 2002 Revenue almost doubled in 2002 primarily from existing customers Several competitors did not survive 2002 providing additional opportunities for growth Brazil Vedior experiencing strong growth in Teleresources Industry Largest country in Latin America with opportunity for further expansion South America Slide44:  Chile Complements business in Argentina Small presence currently with focus in agriculture and training Additional opportunities in education, outplacement, and outsourcing Acquisitions Focus on Mexico for acquisition opportunities 2nd largest country in Latin America with close ties to business in U.S. Considered as gateway to Latin America South America Slide45:  51% held by Vedior 49% by management/founder shareholder 2002 sales € 85 million Offices in Tokyo, Osaka Active mainly in IT contract sector /systems support Direct Reports - Niscom Slide46:  26% interest in UK listed Company Offer in conjunction with Blomfield Joint ventures in Japan and Portugal Provides outplacement services Sales approximately € 8 million Direct Reports - Fairplace Slide47:  Professional Employer Organisation - Business Process Outsourcing Net revenues of € 23 million -Downturn in US has reduced sales 49% owned by Vedior Focus on diversifying customer base and cost control Benefit when systems investment realised Direct Reports - TriNet Slide48:  Active in secretarial/call centre services in South Africa and Canada Net revenues of € 6 million Vedior has 50% interest Direct Reports –Only the Best/Telereliance Slide49:  Any Questions? Slide50:  Report on Continental Europe Analyst Meeting Armin Preisig European Zone Manager Slide51:  Agenda Market trends Overview of operating companies New acquisitions New initiatives 2003 priorities and summary Slide52:    Market Trends Slide53:  Agenda Market trends Overview of operating companies New acquisitions New initiatives 2003 priorities and summary Slide54:    Overview of Operating Companies SPAIN VEDIOR Laborman Temporary help (Generalist business mainly) Permanent placement Outsourcing (Contracting) EXPECTRA Technology Contracting of IT specialists SELECT Recursos Humanos Temporary help (Traditional, Specialist for Teleresources, Banking) Permanent placement Outsourcing Slide55:    Overview of Operating Companies ITALY VEDIOR Lavoro Temporaneo Traditional (industry, retail) ‘welcome’ (transfer staff from South to North) SELECT Italia Lavora Traditional (admin / clerical in banks and insurances) Specialist staffing Teleresources, healthcare, banking) Outsourcing of processes for banks and insurances Slide56:    Overview of Operating Companies PORTUGAL VEDIOR Traditional (mainly blue collar light industrial) Specialist (callcentre business) MULTILABOR Traditional temping for ship wharfs blue collar) Education SELECT Recursos Humanos Specialist (Teleresources, Healthcare, Merchandising, IT) Traditional Outplacement (Fairplace) Slide57:    Overview of Operating Companies REKENMEESTERS Finance & Accounting SELECT Appointments BV Staff Planning Via Werk Travel Jobs Audio Visual THE NETHERLANDS FUNKTIE MEDIAR Interim Management IT Sapphire Technology PTS EXPECTRA Engineering Societas Education Slide58:    Overview of Operating Companies FRANCE SELPRO SA Traditional in the North of France Specialist (mainly Ille-de-France) Healthcare Banking Cosmetics Travel Slide59:    Overview of Operating Companies GERMANY VEDIOR Skilled blue collar ADVITA Nurses for home care ISU Unskilled blue collar IDEO Specialist -Aircraft mainten. -Windpower manuf. EXPECTRA Engineering Slide60:    Overview of Operating Companies SWITZERLAND VEDIOR NewJob Traditional (clerical/ admin, industry) SWISS JOBS Traditional Specialist (IT, Teleresources) PARTNER JOB Construction (craftsmen) Watch industry EXPECTRA IT Engineering Slide61:    Overview of Operating Companies NORDIC AREA FINLAND - OFFICE HELP Traditional admin / clerical, accounting, healthcare Teleresources SWEDEN - HUMANPRO Traditional (admin / clerical, blue collar) IT Slide62:    Overview of Operating Companies EMERGING MARKETS Turkey Traditional, payrolling, permanent placement Teleresources Greece Traditional, payrolling, permanent placement Hungary Traditional,(white & blue collar) payrolling, permanent placement Teleresources Czech Republic Traditional, (clerical / admin) permanent placement Training Slide63:  Agenda Market trends Overview of operating companies New acquisitions New initiatives 2003 priorities and summary Slide64:  New Acquisitions 2001 KRM, Turkey Temporary help, permanent placement, payrolling Rekenmeesters, Netherlands Contracting of accountants and finance specialist 2002 Funktie Mediair, Netherlands Interim Management, Recruiting, Assessments HumanPro, Sweden Traditional temporary help, permanent placement, IT Multilabor / Solisform Portugal Traditional blue collar for shipyard Slide65:  Agenda Market trends Overview of operating companies New acquisitions New initiatives 2003 priorities and summary Slide66:  New Initiatives SPAIN New organisation of network in bigger cities Launch of new specialities ITALY Launch of Healthcare Expand the outsourcing business as market has huge potential Expand the public administration segment PORTUGAL Launch of outplacement in the private and public sector Expand healthcare and merchandising Slide67:  New Initiatives NETHERLANDS Streamline operations by Elimination of management levels Elimination of back-offices Combine similar operations (e.g. IT) GERMANY Combining management in operations Continuous shift towards specialised business SWITZERLAND Rationalise branding Combine management Combine back-office activities Slide68:  New Initiatives NORDIC AREA Launch of Healthcare (already started in Finland) EMERGING MARKETS Launch of Teleresources in Turkey Expand office network in Hungary, Greece and Czech Republic Develop new markets (Poland, Slovakia, Baltics) Slide69:  Agenda Market trends Overview of operating companies New acquisitions New initiatives 2003 priorities and summary Slide70:  2003 Priorities Increase share of speciality business by Development from scratch Targeting selected specialist acquisitions Streamline organisations in Spain, Switzerland and Germany Rationalise brand multiplicity in markets with positioning overlaps Ongoing cost reductions, control and containment at all levels Further reduction of DSO Slide71:  Summary Expand specialities while protecting traditional business Operating expenses further reduced, wherever indicated Increase gross margins in markets with strong position Gain efficiencies by Rationalising brands Combining back-offices Streamlining organisations Largely maintain branch network Be ready to benefit from the upswing Slide72:  Any Questions? Slide73:  Technology Issues 18 March 2003 Analyst Meeting John Nurthen Director of eBusiness and Corporate Affairs Analyst Perception:  “Vedior’s lack of central control and independent operation of business in silos may limit cost synergies (group-wide IT systems, unified debtors/payables processes, cheaper marketing).” Source: Lehman Brothers, September 2002 Analyst Perception Slide75:  Technology Issues Overview and trends Front Office Back Office VMS Group initiatives Aggregation Slide76:  Over the last five years €300 million of staffing industry IT projects have been written off or abandoned Buy v Build? Average IT budgets Manufacturing industry = 1% of gross revenue Staffing industry = 4.5% of gross revenue Hardware, contracts, networks, staffing = 85% Low cost/high value initiatives = 15% Banking industry = +11% of gross revenue Overview Source: Company estimates Staffing Company IT infrastructure:  Staffing Company IT infrastructure Reporting Management Process Metrics Analytical Website Job details Company Info Candidate Registration Client Registration VMS Order Submission Order Management Assignment Management Reporting Slide78:  Web-enabled software Open standards Integrated software Seamless architecture for CRM, Candidate, Testing, Order, Rate, Payroll, Billing, Banking, Project Management and Financials Unbundling Time recording, drug testing, reference checking, psychological and skills testing Technology Trends Slide79:  Employers Recruiting Solutions Software Vendors Job Boards Staffing Companies Other Recruiting Products Typical Staffing Transactions Today Slide80:  What is HR-XML SIDES? Complete set of data standards to enable e-procurement and management of staffing processes Created by world’s six largest staffing companies Dedicated resources Finances, Personnel, Logistics Legal/anti-trust issues Donated to and approved on May 1 2002 Slide81:  Employers Recruiting Solutions HRMS Vendors Job Boards Staffing/Recruiting Companies Other Recruiting Venues HR-XML Standard Staffing Transactions Tomorrow Slide82:  - Order Submission Sub-contracting Receipt to approval - Order Management Status enquiries Resume submission Interview scheduling Negotiations Selection/notification - Assignment Management Status updating/enquiries Time capture and approval Invoicing Invoice/Timesheet reconciliation - Reporting Spend Time to fill Fill rates Supplier usage Vendor performance Vendor Management Systems Slide83:  Client What is a VMS? Slide84:  The Good Comprehensive online client relationships Frictionless transactions Better productivity Improved knowledge of client requirements Better service quality and customer satisfaction Faster settlement of invoices Disputes resolved through detailed audit trail Reverse Billing Lower costs Opportunistic partnering and sub-contracting Elimination of rogue spending VMS - The Good, the Bad and the Ugly Slide85:  The Bad Margin erosion Integration can cost up to €500,000 per client Transaction fees = 1% to 5% of sales Efficiencies biased in favour of the customer, not the staffing company Over-complex US-centric solutions Vendor neutrality The Ugly Distintermediation Market complexity VMS - The Good, the Bad and the Ugly Slide86:  Adecco - Workcard Manpower - Ultrasource GWOM Vedior - ????? Randstad - Hedson MkII - Workaniser Kelly - itiliti Peopleclick XG Spherion - Enthusian Peopleclick XG VMS - Competitive Landscape Slide87:  Technology Issues Overview and trends Front Office Back Office VMS Group initiatives Aggregation Vedior IT philosophy:  Competitive advantage through IT is short term Decentralisation Local companies encouraged to determine the most appropriate solutions for their particular market Acquisition of ‘off-the-shelf’ packages rather than development of proprietary systems Allow management to focus on core competence Aggregation Bridging the cost gap created by centralized IT platforms while, at the same time, maintaining our decentralized culture Vedior IT philosophy Aggregation:  Aggregation Take advantage of economies of scale Provide more robust solutions Prevent duplication of effort Simplify administration Establish best practice Better protection against margin erosion Provide broader strategic overview Global view of existing and new products Facilitating, not dictating Aggregation:  Job Boards Database of Online Vacancies (DOVA) Telecommunications Fixed Voice Data Mobile Software Licensing Data Centres VMS Aggregation DOVA Strategy:  DOVA Strategy Telecommunications:  Group’s third most expensive cost item Telecoms traffic increased 4x since 1997 Savings of between 15% to 50% obtainable through aggregation More savings when Voice and Data converge Corporate strength partnerships Value-added services to enhance core business processes Strategic aim Improve network infrastructure and bandwidth Internet Protocol based Virtual Private Network accessed by broadband (DSL) Telecommunications Slide93:  Focus on external third party solutions No unprofitable investments in Job Boards or Vendor Management Systems Willingness to aggregate and take advantage of economies of scale Willingness to share effective IT products and services among Group companies Forward-looking telecoms strategy Consultant Internet access at the desktop Vedior Technology Advantages Slide94:  Staffing companies are not IT companies Outsource wherever possible Evolution, not revolution The importance of effective integration Staffing is a people business Fitting square pegs into round holes Value of a Consultant’s soft skills Evaluation, Intuition, Persuasion Summary Slide95:  Any Questions?

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