true value for investors

The Randstad share reflects true value for investors. This may sound odd, given that Total Shareholder Return amounted to minus 42% in 2008 and that no dividend will be paid for 2008. However, long-term prospects for the HR services industry as a whole, and for Randstad in particular, are positive.

The true value of any business is in its people. Randstad’s business is all about people and an investment in Randstad therefore reflects an investment in the most valuable asset class. An asset class that will also become ever more scarce in the future.

The HR Services industry has on average grown at a double-digit rate over the past decades. Penetration rates are on the rise, new services are continuously being introduced, and new markets are opening up – either because of increased economic activity or through new opportunities resulting from legislative changes. However, the growth pattern is never a straight line, and economic dips, such as the world is currently facing, temporarily put pressure on the industry, our revenue and the share price each cycle.

Our focus on protecting the long-term interests of the shareholders also means that under exceptional circumstances, we opt for the safest approach. Even if that means that as a precaution it is wiser to keep cash in order to protect the balance sheet, rather than pay out a dividend, as we did this time.

In terms of long-term prospects, the HR Services industry remains a growth industry. Randstad is now the second-largest company in the industry, yet the market is fragmented – we still only have an 8% share of the global market. So there is ample room to gain market share, and we have a clear track record of doing so. Through the merger with Vedior we have a better-balanced geographic spread than any of our competitors. In addition, we have an unparalleled offering, including a leading position in the professionals segment, which is expected to grow fastest in the future.