growth in numBer of hourS Sold in the dutch market (aBu/nipo)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2001 2002 2003 2004 2005 2006 2007 2008 20 15 10 5 0 -5 -10 -15 %
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ket in terms of volume growth. In the course of the year volume growth gradually declined further compared to a year earlier. For the year as a whole this resulted in a 7 per cent drop in the number of hours sold. In terms of revenue there was a 3 per cent drop in the market com- pared to 2007. Mainly due to its wide spread of activities, USG People outperformed the market with a slight 1 per cent drop in revenue. While demand was lower at the large operating companies, revenue achieved from the services in various niche markets in the SME segment was higher.
The category Other services saw revenue from the call center services grow 14 per cent in 2008. Other brands that grew in 2008 were USG Juristen, Secretary Plus and Starjob (secretarial), USG Capacity (marketing and com- munication), ASA Student, USG Energy and Technicum.
Belgium and luxemBourg. As in the Netherlands, USG People holds the number two position in Belgium with a market share of around 20 per cent. Belgium is USG People’s second market, both in terms of revenue and degree of specialisation. In 2008 Belgium and
eBita Belgium & luxemBourg x 1 million euros 2008 2007 2006 2005 pf 80 60 40 20 0 revenue Belgium & luxemBourg
x 1 million euros 2008 2007 2006 2005 pf 0 200 400 600 800 1,000
report of the Executive Board
growth in numBer of hourS Sold in the Belgian market (federgon data)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2001 2002 2003 2004 2005 2006 2007 2008 20 15 10 5 0 -5 -10 -15 %
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Luxembourg accounted for 21 per cent of total
USG People group revenue. Some 40 per cent of revenue in Belgium and Luxembourg was generated by specialist activities. Looking at the larger companies, Start People operates in the general segment and Unique in Special- ist staffing. Both companies provide one-stop solutions in the flexible labour market, with Start People tradition- ally more focused on the industrial segment and Unique standing out in the services sector. The activities of both companies are widely spread across the various seg- ments. Since Creyf’s was rebranded to Start People in 2007, the share of volume from the services sector has grown strongly compared to the industrial sector. Structural growth in the services sector ensures a better spread of revenue and reduces the impact of the economic cycle on group results. On top of these larger companies which cater to a wide market, USG People has very successful specialist brands in Belgium and Luxembourg. Belonging to the Specialist staffing and Professionals segments, these brands focus on specific markets and are active in the following staffing segments: secretarial, reception, legal, medical, IT, engineering, financial and Human resources services. The mix of volume and specialisation ensures high profitability in the well-developed Belgian and Luxembourg markets.
In the Belgian market, declining volume growth turned into a drop in the final two quarters. For the year as a whole, the market volume in hours was down 4 per cent compared to 2007, while the market remained virtually unchanged in terms of revenue. USG People outper- formed the market considerably with revenue growth of 6 per cent. revenue at Start People in Belgium and Luxembourg was up 9 per cent in 2008 and the special- ist activities grew 1 per cent. revenue at USG People achieved in the services sector was up, while revenue from the industrial sector was down. In 2008 Secretary Plus and receptel (reception services) grew strongly, while Legal Forces and Express Medical (healthcare) also grew. USG Hr Forces (recruitment and selection) and USG Financial Forces saw demand decline in the course of the year, resulting in lower revenue than in 2007.
france. USG People has expanded its activities in France in the past few years. The volume of Start People rose by a third in the 2006 - 2007 period. The branch network was also expanded in this period. In addition, specialist activities in the financial, IT and secretarial sectors were launched from 2007 as the very successful Secretary Plus and USG Financial Forces formulas were rolled out outside the Benelux. This specialist position grew with the acquisition of Multicompta, a specialist in
eBita france x 1 million euros 2008 2007 2006 2005 pf 40 30 20 10 0 2008 2007 2006 2005 pf 800 600 400 200 0 revenue france x 1 million euros
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the field of financial services. The French staffing mar- ket is a mature market in the industrial segment, but the level of specialisation is still quite low. That means that this market holds growth potential for USG People. The state of the French economy deteriorated rapidly in 2008 as a result of the credit crisis. The crisis has an impact on the French market due to the large industries in the country, such as the automobile industry, and due to the construction industry’s large contribution to gross domestic product. These sectors were hit hard in the second half of the year, resulting in a rapid slow- down in production. This is clearly detrimental to the staffing market and led to lower volumes particurlarly in the second half of the year. In 2008 revenue at Start People fell 5 per cent compared to the year before. Due to changed market circumstances, the focus for the short term switched from expansion and volume growth to optimisation of the existing network. The costs of the planned optimisation operation have been included in and deducted from the 2008 result. revenue from the specialist activities was up 30 per cent in 2008, due in part to the acquisition of Multicompta in 2007 which was included in results for the whole of 2008. After a startup year in 2007, the specialist activities continued to operate from their existing locations in 2008.
Spain and portugal. USG People holds the number three position in the Spanish staffing market and is active in both the general and specialist staffing seg- ments. The decision was taken to discontinue the ac- tivities in Portugal which contribute less than 2 per cent of the revenue to the region of Spain and Portugal. The activities in Portugal were sold in the beginning of 2009. Start People and Unique cater to the entire Spanish market and are active in the services, industrial, trans- port, logistics, agriculture and hospitality segments. Start People focuses on the general staffing segment while Unique is active in specialist staffing. The Spanish construction industry and public sector are still not open to temporary staffing. In Spain USG People also focuses on specific markets including secretarial services and outsourcing. The specialist activities were further expanded in 2008 with the introduction of receptel. Spanish restrictions to temporary staffing are to be lifted in the coming three years after the introduction of the European Agency Work Directive. This offers good structural long-term growth perspectives for the Spanish market.
Following a long period of expansion and growth in previous years, the Spanish and Portuguese staffing
revenue Spain & portugal x 1 million euros 2008 2007 2006 2005 pf 0 100 200 300 400 500
eBita Spain & portugal x 1 million euros 2008 2007 2006 2005 pf 30 20 10 0 -10
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market deteriorated sharply in 2008 as a result of the credit crisis. The focus on growth switched to stream- lining the organisation and strengthening regional posi- tions. The optimisation in Spain started in 2008 and less profitable branches were closed or merged, also reducing the number of employees. Furthermore, a provision was taken in the final quarter for restructuring the organisa- tion. A drop in revenue in Spain and the extra costs of the optimisation resulted in a negative result.
germany. The activities of USG People in Germany were significantly expanded in 2008 through the acquisition of Allgeier DL. Acquisitions made in 2007 and 2008 trebled USG People’s revenue in Germany as the network consisting of 60 branches in 2006 grew to 177 branches in 2008. Furthermore, the existing activities of Creyf’s Personalservice and Unique Personal were merged in 2008.
The short-term outlook for the German economy and staffing market worsened in the course of 2008. As in other countries, this situation has been caused by the weakening global economy. Exports fell and industrial production dropped sharply, while the services sector has also been contracting since the fourth quarter. As a result, the staffing sector also saw revenue fall in
the second half of 2008 compared to a year earlier, with Allgeier DL, Unique and Geko Zeitarbeit posting lower revenue. Specialist player Secretary Plus bucked the trend, reporting double-digit revenue growth.
italy. Italy is an important growth market for USG People both volume-wise and for the introduction of specialist services. Before 2008 USG People only offered general staffing services in Italy under its international General staffing brand name Start People. Specialist activities were added early 2008 when Unique was launched. Throughout the year Unique opened four new branches. Unique is mainly focused on the higher segments of the services sector. Start People’s network was also further expanded in 2008. The launch of Unique in Italy means that USG People now has specialist activities in all six large countries. This forms the basis for the optimisa- tion and further growth of the group’s services into an effective multibrand portfolio in these countries. In 2008 USG People’s revenue in Italy grew by 4 per cent, with a notable downward trend becoming visible in the final months of the year. As in other European countries, we expect the economy in Italy to deteriorate in the short term, while the long-term outlook for this market is very good. 2008 2007 2006 2005 pf 400 300 200 100 0 revenue germany x 1 million euros eBita duitSland x 1 million euros 2008 2007 2006 2005 pf 15 10 5 0 -5
3 7 auStria, SwitZerland, poland, cZech repuBlic
and Slovakia. USG People provides general staffing services in these countries, spread over a wide range of sectors. Together the countries contributed 3 per cent to group revenue. On balance, the revenue of the countries was the same as last year. There were, however, large differences between the countries. In Austria revenue at Start People grew strongly. The specialist activities of Secretary Plus that were launched in 2007 also showed satisfactory growth. On the other hand, revenue in
neighbouring Switzerland was down. The downward trend that started in 2007 persisted in 2008 but stabi- lised somewhat in the course of the year. Poland posted slight growth for the year as a whole, while demand from large industries clearly fell in the final months of the year. As a result, revenue was down in the final months of the year. Compared to 2007, revenue was also lower in the Czech republic and Slovakia. The revenue trend worsened in all countries throughout the year as a result of the economic deterioration in Europe.
2008 2007 2006 2005 pf 200 150 100 50 0 revenue italy x 1 million euros 2008 2007 2006 2005 pf 160 120 80 40 0
revenue other countrieS x 1 million euros eBita italy x 1 million euros 2008 2007 2006 2005 pf 16 12 8 4 0
eBita other countrieS x 1 million euros 2008 2007 2006 2005 pf -3 -2 -1 0 1 2
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