HAYS PLC

ANNUAL

REPORT & ACCOUNTS

2023

HAYS ANNUAL

REPORT FY23

Welcome to Hays' Annual Report for FY23, a year in which we made strong operational, cultural and strategic progress.

Despite increasingly challenging macroeconomic conditions, we delivered record net fees, £197.0 million of operating profit and returned £240.1 million to shareholders in core & special dividends and share buybacks.

As a global industry leader in recruitment, our strategy is designed to capitalise on powerful megatrends which drive the world of work. These include long-term skill shortages, changing work habits, new job category creation, continual need for upskilling and demographic changes. We are also market leaders in some of the most attractive, long-term structural growth markets globally. At Hays, we are 'Working for your tomorrow', and via our expertise and unique culture, we benefit many stakeholders across society. It is a privilege to be able to share these stories.

During the year, the Board commenced an orderly and transparent succession process to identify Alistair Cox's successor as CEO. Alistair has been a great leader for 16 successful years, transforming Hays from a UK-focused business to a diverse global leader in recruitment and talent services across many sectors, with over 80% of our operating profits now generated internationally. Throughout Alistair's leadership, Hays has helped many millions of talented individuals develop and thrive in their careers, and the Board would like to express its gratitude to Alistair for an outstanding career at Hays.

The Board was delighted to welcome Dirk Hahn, previously Managing Director of Hays Germany and CEMEA, as our new Chief Executive from 1 September 2023. Together, we look forward to writing many future chapters in 'Our Hays Story', benefiting society by investing in lifelong partnerships which empower people and organisations to succeed. Our services have never been as relevant in helping to find, create, retain and develop diverse talent, powered by our c.13,000 expert colleagues worldwide.

Andrew Martin

Chair

OUR HAYS STORY

We are proud to be industry leaders in recruitment, based on our global scale and deep expertise.

Our balanced and diverse business across 33 countries empowers our customers, enabling clients to find the talent they need to grow and helping people advance their careers.

The digital revolution is accelerating, and we will lead our industry through change. We believe the prize for adding real human value in a digital world is significant.

Our strong foundations in technology underpin our Talent Networks, providing deep and valuable data insights for our consultants and our clients.

Our speed and agility help us create the recruiting and talent services experience of tomorrow… enabling us to become trusted lifelong partners to millions of people and organisations. The best people, allied to the best technology, will deliver the best service.

HAYS' FUTURE AT THE HEART OF THE WORLD OF WORK

The world of work is rapidly changing, with clients and candidates facing many new challenges and opportunities. Powerful and accelerating megatrends shape the world of work.

  For more information see page 3

CLIENTS

Skill shortages and job churn

Significant new demand in related talent services

Rapid new job category creation

Enhanced ESG requirements

  More information on page 16

Organisation

Skill

Employee

challenges

shortages

demands

DemographicSocietal

challengesdemands

Hays sits at the heart of this rapidly changing work ecosystem, and we strongly benefit by solving our clients' talent problems

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Skill shortages

New job creation

We have deep and

Particularly in structurally

broad Talent Networks

growing sectors

CANDIDATES

Demands for flexible working and changing work habits

Ageing population and other demographic changes

Significant need for upskilling and reskilling

Material inflation

  More information on page 16

Job churn

Wage inflation

Workforce challenges

Helped by faster

Our fees benefit

Creating, developing

hiring decisions

from rising wages

and retaining talent

FIVE REASONS HAYS IS POSITIONED TO WIN IN THE NEW WORLD OF WORK

Global scale and

1

Growing from

2

Strong enterprise

3

Our diverse

4

Broad Talent

5

delivery capability

a position of

client relationships

SME client base

Networks

market leadership

STRATEGIC PRIORITIES

Enable

Our strategy is underpinned by our continuous investment in People, Culture, Technology and Sustainability

OUR PURPOSE

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Grow

Materially increase core recruitment fees, particularly in long-term structural growth sectors and with Enterprise clients

Partner

Nurture lifelong client and candidate partnerships and build the deepest and most engaged Talent Networks worldwide

More information on page 6

Our purpose is to empower people

and organisations to succeed,

through investing in lifelong

partnerships with them. Over many

years, we have helped millions of

talented individuals develop their

careers, and are deeply committed

to helping many millions more in

the future.

Our 'social licence to operate' and

reputation are underpinned by this

purpose. We are determined that

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'Our Hays Story' is a sustainable

one, in terms of our role in our

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communities, our business

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operations and our ability to

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grow profits and cash flow in

the long term.

Diversify

Substantially grow new revenue streams and partnership-based areas such as Talent Services and in Project Services globally

Enhance

Drive productivity to deliver

profit and cash, fund reinvestment and enable substantial returns to shareholders

and doing the right thing by our stakeholders. This means putting sustainability at the heart of our

business (more information on page 54).

Our stakeholders are central to how we integrate our strategy

with our responsibilities. We are

committed to open engagement. Our FY23 sustainability actions

have demonstrated significant,

tangible progress. These include the 1.9% increase in senior female

leadership to 44.3%, our c.85%

increase in volunteering hours, conducting our most comprehensive Greenhouse Gas (GHG) emission data collection

A

Our mission to be the world's

leading recruitment and talent

ctions

services provider is based on

forming lifelong partnerships with

clients and candidates, providing

them with a first-class service

More information on page 5

in support of our Science-based

targets, enhancing our free learning portals and advancing

our work in DE&I globally, both

internally and with clients via our Vercida Consulting acquisition.

INVESTMENT CASE

Driven by our strategic priorities and many structural growth market opportunities, we believe there are three simple and compelling reasons to invest in Hays

Growth

1 Scale

2

Returns

3

We are market leaders in some of the most attractive recruitment markets globally, which offer significant long- term growth potential. Our ability to solve our clients' talent problems globally and at scale is second to none and we have increasing opportunities to grow in related talent services.

We have unrivalled balance, scale and diversity. Our deep relationships with large, medium and small clients are based on partnerships and trust, built over many years. Our expertise, people and culture, brand, infrastructure and financial strength will help us build the leading global recruitment and talent services business.

Our growth is increasingly derived from diverse, partnership- based revenue streams.

We will return significant cash to shareholders in the most appropriate form of core and special dividends, and via share buybacks.

 More information on page 7

OUR YEAR

HIGHLIGHTS

FINANCIALOPERATIONAL

OVERVIEWSUMMARY

£1,294.6m

8,590

Net fee income

Consultants

FY22: £1,189.4m

FY22: 9,037

£197.0m

c.76,800

Operating profit

Perm jobs filled

FY22: £210.1m

FY22: c.83,750

8.59p

c.245,000

Basic EPS

Temp and contracting roles filled

FY22: 9.22p

FY22: c.250,000

5.24p

Core & special dividend per share

FY22: 10.19p

SUSTAINABLE

BUSINESS

44.3%

Women in senior leadership FY22: 42.4%

17,673

Hays' employee volunteering hours

FY22: 9,433 hours

16,778 CO2e tonnes

Our scope 1, 2 and Business travel scope 3 GHG emissions

FY22: 13,780 CO2e tonnes(1); Science-based target (SBT) base year (2020): 23,527 CO2e tonnes(1)

£135.6m

Net cash

FY22: £296.2

More information on pages 42 to 47

More information on pages 16 to 19

More information on pages 54 to 67

Note | Unless otherwise stated all growth rates discussed in this Strategic Report are LFL (like-for-like), YoY (year-on-year) net fees and profits, representing organic growth at constant currency. (1) This is a restated GHG figure. Please see footnote (1) on our GHG table on page 66for more details.

IN THIS REPORT

01 Strategic Report

A description of our business model, markets and strategy.

3 Accelerating megatrends in the new world of work

  • A broad, diverse and balanced business
    5 Our business model
    6 Our strategic priorities
    7 Our investment case
    8 Key performance indicators (KPIs)
    10 Chief Executive's review
    16 Stakeholder engagement
    18 How we create value
    19 Value for our stakeholders
    20 Our people our culture
    26 Life at Hays
    28 Customer partnerships, powered by our people and technology
    34 In focus 1 - Accelerate growth in technology recruitment
    36 In focus 2 - A great place to work
    38 In focus 3 - Building more partnerships with clients
  1. In focus 4 - Empowering clients globally
  1. Finance Director's review
  1. Divisional operating review
  1. Sustainability in the world of work
  1. Task Force on Climate-related Financial Disclosures (TCFD)
  1. Principal risks
  1. Non-financialand sustainability information statement

02 Governance Report

How our Board of Directors sets strategic direction and provides oversight and control.

82 Chair of the Board's introduction to governance

84 Our Board of Directors

  1. Our governance framework
  2. Division of responsibilities
  3. How the Board works

94 Key activities of the Board

  1. Board and stakeholder engagement
  1. Workforce engagement
  2. How the Board monitors culture
  3. Board evaluation
  1. Nomination Committee Report
  1. Audit Committee Report
  1. Remuneration Report
  1. Directors' Report
  1. Directors' responsibilities

03 Financial Statements

Financial statements for the Group, including a report from the Independent Auditor.

150 Independent Auditors' Report

  1. Consolidated Group Financial Statements
  1. Hays plc Company Financial Statements

04 Shareholder Information

Supporting information for investors.

  1. Shareholder information
  1. Financial calendar
  1. Hays online
  2. Glossary
  1. Country and specialism list

More information online

Our investor website gives you direct access to a wide range of Company information

  More information onhaysplc.com/investors

Read our views and advice on the world of work

  More information onsocial.hays.com

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Hays plc published this content on 02 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 October 2023 12:20:16 UTC.