investment case.

Randstad is the global leader in the HR services industry. By serving as a trusted human partner in today's technology-driven world of talent, we support people and organizations in realizing their true potential. Our services range from regular temporary Staffing and permanent placements to Inhouse Services, Professionals, and Global Businesses (including Recruitment Process Outsourcing, Managed Services Programs, and outplacement).

Geographically, Randstad is active in markets representing over 90% of the global HR services market, and our strategy has been designed to capitalize on the structural growth drivers in these markets. Throughout our markets, we see that global developments are affecting labor markets, which has led to an intense discussion about the future of work. The world of work is experiencing transformative change, driven by technological innovation, demographic shifts, climate change and globalization. Randstad is working closely with local and international HR services industry federations and central employers' organizations to set up a proactive advocacy program, with the aim of achieving a more sustainable, dynamic and inclusive labor markets. Randstad identifies five global trends that affect our business and which provide opportunities for growth: 1) globalization and urbanization, 2) technological progress and automation, 3) demographics, 4) the changing nature of work, and 5) mobility.

The world of work is changing rapidly. At Randstad we combine the power of today’s digital technology with our distinctive human approach, supporting people and organizations in realizing their true potential. We aim to be the trusted advisor for talent in all steps of their working lives and the trusted HR partner for our clients in all their talent needs, creating long-term value for all our stakeholders. Our strategy centers around three pillars that reinforce each other: digital, operational excellence and accelerating growth. In today's interconnected world, people's work journeys are impacted in many different ways, and we see that our role in society is becoming more far-reaching than ever before. In the coming years, we will therefore focus on further strengthening our digital foundation and integrated approach in order to play a leading role in the larger 'ecosystem' of people's working lives.

Shareholder value is of utmost importance to us. Given our primarily organically focused Tech & Touch strategy going forward, our strong balance sheet, and favorable FCF outlook in various economic scenarios, we have adjusted our capital allocation strategy. This amendment was twofold. First, we changed our dividend policy by implementing a conditional cash floor dividend of € 1.62 per share (based on the average dividend per share (DPS) of 2014, 2015 and 2016). This baseline dividend level will be maintained even when the general 40-50% payout ratio is temporarily exceeded, barring (1) seriously adverse economic conditions, (2) material strategic changes to the sector and (3) a material deterioration in our solvency & liquidity ratios. Second, we introduced optional additional cash returns in the event of a leverage ratio below 1.0 through (1) a special dividend (preferred) or (2) share buybacks.

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