Global Finance Transformation at Vedior

• Peter Rinkes• Finance Director

Europe Vedior

GLOBAL FINANCE TRANSFORMATIONAT VEDIOR

12 December 2007

Peter Rinkes

AGENDA

1. INTRODUCTION VEDIOR

2. BUSINESS PERFORMANCE

IMPROVEMENT

3. FINANCE FUNCTION

TRANSFORMATION

VEDIORIn search of Excellence

In search of excellence in:

Business Performance

•Operating margin target 2008:

4.6%

Finance Function

•Being a business partner

INTRODUCTION VEDIOR

Vedior NV, headquartered in Amsterdam, is an international staffing services company providing flexible labour. Vedior operates in 50 countries worldwide: almost the whole of Europe, North and South America, Australia and New Zealand, South Africa, Middle East and Asia

VEDIOR: BUSINESS MODEL

Decentralized structure/nature

•50 countries

•More than 200 entities/operating companies

•Small corporate Headquarter (40 employees)

Relatively autonomous management structure

•Local responsibility

•Minority shareholders

Multi branding

MULTI BRANDING

VEDIOR: SECTOR SPLIT

A leading party in professional/executive recruitment

Other Sectors 8%

Healthcare 6%

IT 9%

Education1%

Traditional 64%

Engineering7%

Accounting5%

• Revenues 2006 : EUR 7.7 billion

• Net profit 2006 : EUR 186 million

• Number of offices : 2.534

• Number of countries: 50

VEDIOR: BUSINESS PERFORMANCE IMPROVEMENT

CURRENT STRATEGY

Offer a full range of recruitment services to both local and international employers

Enlarge share of specialist recruitment services

•Organic growth

•Acquisitive growth

Profitability > market share

VEDIOR: BUSINESS PERFORMANCE IMPROVEMENT (2)

Operating margin targeting 2008: 4.6%

Operational performance

3,0

3,23,4

3,6

3,84,0

4,2

4,44,6

4,8

2004 2005 2006 2007 2008

Marg

in % Q3-07 YTD: 4.2%

VEDIOR: BUSINESS PERFORMANCE IMPROVEMENT (3)

Dynamic industry:

•War for talent!

•Ongoing liberalisation of labour laws

New lines of business

•ZZP vs. life time employment

Fast growing global industry

Fast growing global industry

4,977

3,354

5,547

1.000

2.000

3.000

4.000

5.000

6.000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Number of Agency workers(daily FTE x 1,000)

Forecast based on an annual average growth of 6.8% (same trends as between 1998 and 2006; impact of regulation changes excluded)

Forecast based on an annual average growth of 6.8% and impact of lifting restrictions (sectoral bans + reasons of use)

Source: SEO Economic Research – Amsterdam

VEDIOR: BUSINESS PERFORMANCE IMPROVEMENT (4)

STRATEGIC REVIEW (announced 25 October 2007)

Wide range review of business portfolio, organisational alignment and corporate roles

Mobilization of Top 100 people from across the business (13 and 14 December 2007)

Vedior and Randstad:Creating an industry leader

HR service market is relatively immature, growing and consolidating

Together Randstad and Vedior will become the 2nd largest HR

services company in the world

• Leadership positions in key markets in Europe and the Americas

• A global leader in professional segments

• A leader in inhouse services

• A truly diversified geographic mix

• Enhanced platform for growth in attractive markets such as Eastern Europe, India and Japan

• Diverse client base

Transaction beneficial for Randstad shareholders as it offers enhanced growth prospects, EPS accretion immediately after completion, attractive returns and a more balanced business profile

Transaction provides Vedior shareholders with a very attractive offer and at the same time the potential to participate in the future value creation arising from the combination

BEST PRACTICE: AUSTRALIA

FINANCE FUNCTION TRANSFORMATION (1)

Self assesment

Internal benchmarking

Identifying and sharing best practices

FINANCE FUNCTION TRANSFORMATION (2)

ELEMENTS

1. Payrolling and billing2. Accounts receivable3. Management of personnel cost4. Purchasing and accounts payable5. General ledger and closing6. Budgeting and forecasting7. Management reporting, analysis and management accounts8. Cash and bank management9. Tax planning and compliance10.Financial risk control and management (local)11.Staff capability and finance excellence12.IT infrastructure, controls and support

EBIT Evolution 2001 - 2005 (%)

Source: Estudios de Mercado

SESA Company Benchmarking

-20,00%

-15,00%

-10,00%

-5,00%

0,00%

5,00%

10,00%

2001 2002 2003 2004 2005

Manpower Adecco SESA Select

FEATURES HIGHEST RATED FINANCE FUNCTIONS

Business Partnering

High level (integrated) IT systems

Shared services for other group/sister companies

FINANCE FUNCTION TRANSFORMATION (3)

BUSINESS PERFORMANCE OF HIGHEST RATED FINANCE FUNCTIONS

FINANCE FUNCTION TRANSFORMATION (4)

80

90

100

110

120

130

140

150

160EBIT Top 3 Companies

Gross Profit Top 3 Companies

EBIT Worst Companies

Gross Profit Worst 3 Companies

ISSUES

CEO commitment

ICT

Staff capability

Process of change management

‘Control’ requirements (company structure/corporate governance)

FINANCE FUNCTION TRANSFORMATION (5)

Sydney

Start up fixing project

Geneva

Second Global Finance Conference

Evaluation self assesment

Self assesment FFMG

July2007

FINANCE FUNCTION TRANSFORMATION (6)

June2006

Sept2006

2008Sept2005

Jan2007

Dec2007

Start up local Excellence projects

Paris

First Global Finance Conference

Kick off

Strategic Review

Vedior

VEDIORIn search of Excellence

In search of excellence in:

Business Performance

•Operating margin target 2008:

4.6%

Finance Function

•Being a business partner

Thank you for your attention

• Rob Leicher• Group Controller &

VP Finance OPG Group

OPG Finance

Finance Transformation ConferenceDecember 12, 2007

Rob LeicherGroup Controller

Active in 8 countries

Direct and Institutional

Pharmacy

Pharmacy, Direct and Institutional

Holland

Norway

Poland

Switzerland

GermanyBelgium

Hungary

Denmark

Key Figures 2006

X € million

• Net Sales 2,281

• Operating result 130

• Net result 100

• Capital employed 701

• Number of employees at year end 6,686

30

Summary of OPG Strategy

• Build retail pharmacy chains• Mediq – NL, PLN, BEL

• Expand home care activities• Dia Real , Kirudan, JP Medical, Other

• Improve efficiency• Organisational Integration

• (Pre-)Wholesale PLN• Pharmacies NL

31

CONTROLLED GROWTH

• More countries

• Increasing complexity

• More standardisation required

• Best practice sharing

• Back-office integration; focus on efficiency

• Integration of new companies incl. synergy creation

• More standardised and integrated IT

• Development of new competencies required

32

33

“Builder”

HORIZON

ROLES OF FINANCE FUNCTION AT OPG

ORIENTATION

CONTROL BUSINESS

Short term

Long term

Current role

Aspiration

“Performance manager”

“Planner”

“Controller”

34

ROLES OF FINANCE FUNCTION AT OPG

‘Builder’ • M&A• Business integration• Financial market

communication• Financial management

development

ORIENTATION

CONTROL BUSINESS

SHORT TERM

HORIZON

LONG TERM

‘Controller’

• Enhanced transparency and compliance

• Audit Risk Matrix• Embedded Control

Self Assessment

‘Planner’

• Strategic milestone tracking

• Improved forecasting• Tax planning

‘Performance manager’

• Activity Based Costing and cost control

• Outsourcing• Working capital

reduction

• Peter Mannaert• CFO Sanoma

Magazines International

INTERNATIONAL

Parallelsessie global finance transformatie

Peter Mannaert,

CFO Sanoma Magazines International

INTERNATIONAL

■ Uitgeverij van tijdschriften■ Zusterbedrijf van Sanoma Uitgevers

(libelle, margriet, donald duck, ilse, nu.nl, startpagina etc.)

■ Actief in 10 landen in Centraal, Oost en Zuid-Oost Europa, local player■ > 20% groei per jaar■ Fully owned dochters, maar ook veel JV’s

Sanoma Magazines International

Kengetallen Sanoma Magazines 2006:■ € 1,218.9 miljard netto omzet■ € 132.2 miljoen EBIT ■ 4.716 medewerkers■ SMI ; 2.200 fte’s wv 8 op HQ

INTERNATIONAL

INTERNATIONAL

INTERNATIONAL

Business Transformation: Uitdagingen voor CFO SMI

• Business partner ; meedenken over strategie en organisatie

• Groei van de onderneming eist een

meer volwassen aanpak

• Acquisitieplannen ; focus vs verbreding

• Kostenbeheersing blijft belangrijk– Loonontwikkeling CEE

• Efficiency slagen – Benchmarking, proces assesments– Kennis uitwisselen/ best practice sharing

• Verbetering (Corporate) Performance Management

– Een versie van de werkelijkheid– Minder excel– Betere managementinfo– Effectiever budgetteren

INTERNATIONAL

Werkveld CFO SMISituatieschets• Financial Accounting

– Concernrapportages strak georganiseerd (Hyperion)

• Management Accounting– Eigen invulling BU’s– Geen centrale CIO– Board van Divisiedirecteuren– Locale P&L verantwoordelijkheid

• Doelstellingen– Groei – Professionalisering

• AO/IC• Managementrapportages• IFRS• Opleidingsniveau CFO’s

Dilemma’s• Groei vs KT winst

• Centraal/ Decentraal ;

SSC voor Admin , IT ?

– Wie neemt risico’s/ investeringen– Geen gezamenlijk IT platform

• BI platform of lokaal Excel– Uniformiteit in Management Acc.

• Multimedia ; nwe diensten of focus

• Procesoptimalisatie vs local for local

• Geen gezamenlijk IT platform SM Divisies ; zelf ontwikkelen ?

• Een excellente finance functie is een katalysator van excellente business performance

• Contracten met nieuwe klanten zijn altijd resultanten van een afgewogen en evenwichtig besluitvormingsproces

• Een decentraal opgezette functie heeft zijn langste tijd gehad

• Finance is voorloper van transformaties/change

• Customer value en profitabilty is moeilijk integraal te benaderen

• De CFO moet zich meer focussen op finance en minder op andere domeinen

• De CFO heeft een sturende rol om andere staffuncties naar een hoger niveau te tillen

• Alle staffuncties zouden in een shared service omgeving beter bijdragen aan de business