Randstad N.V. — Earnings Release 2023

Feb 13, 2024

4th quarter

results 2023.

partner for talent.

contents.

• FY 2023: resilient performance, strong free cash flow
• financial performance
• core data
• invested capital
• cash flow summary
• performance
• performance by segment
• performance by revenue category
• other information
• interim financial statements

FY2023:resilientperformance,strong free cash flow.

-8.6%

Q4 2023 org. revenue growth

gross profit -8% YoY; perm -26% & RPO -34%YoY, combined c. 15% of gross profit.

strongFY free cash flow, up19%YoY, totalling € 883m.

€ 265m

Q4 2023 underlying EBITA

robust gross margin of 20.7%, -10bp YoY, reflecting mix & pricing.

2023proposedtotalreturnofaround €632m of capital to shareholders.

4.3% Q4 2023 EBITA margin

solid adaptability, opex down 4% YoY; robust conversion rate of 20.7%

January organic revenue growth in line with Q4 2023 trends

CEO Sander van 't Noordende commented, "In Q4 2023, we delivered another resilient performance in a challenging environment. We adapted well throughout the year, as demonstrated by the solid margin and strong cash flow performance achieved in FY2023. As talent scarcity prevails, we are confident that the 'partner for talent' strategy we set out at our Capital Markets Day in October positions us well to capitalize on the exciting opportunities in our markets.

In line with our capital allocation policy, we are proposing a return of around € 632 million of capital to our ordinary shareholders, comprising a regular ordinary cash dividend of € 2.28 per ordinary share, and a special dividend of € 1.27 per ordinary share.

The global macroeconomic environment remains uncertain and this is influencing the decision-making of clients and talent. That said, labor markets remain tight and we continue to demonstrate our ability to adapt and perform in these changing market conditions.

I would like to thank our talent, clients and people across the world for their ongoing commitment to our business."

financial performance.

core data

in millions of €, unless otherwise indicated	Q4 2023	Q4 2022	yoy change	% org.	FY 2023	FY 2022	yoy change	% org.
Revenue	6,183	7,007	(12)%	(9)%	25,426	27,568	(8)%	(6)%
Gross profit, underlying1	1,281	1,457	(12)%	(8)%	5,283	5,755	(8)%	(6)%
Operating expenses, underlying1	1,016	1,093	(7)%	(4)%	4,208	4,461	(6)%	(4)%
EBITA, underlying1	265	364	(27)%	(24)%	1,075	1,294	(17)%	(16)%
Integration costs and one-offs	(45)	(68)			(152)	(130)
EBITA	220	296	(26)%		923	1,164	(21)%
Amortization and impairment of intangible assets2	(58)	(11)			(92)	(27)
Operating profit	162	285			831	1,137
Net finance costs	(22)	(12)			(70)	(12)
Share of profit of associates	-	-			1	1
Income before taxes	140	273	(49)%		762	1,126	(32)%
Taxes on income	23	21			(138)	(197)
Net income	163	294	(45)%		624	929	(33)%
Adj. net income for holders of ordinary shares3	248	354	(30)%		814	1,041	(22)%
Free cash flow	291	294	(1)%		883	739	19%
Net debt	923	870	6%		923	870	6%
Leverage ratio (net debt/12-month EBITDA)4	0.7	0.6			0.7	0.6
Leverage ratio (net debt/12-month EBITDA) excluding IFRS 165	0.3	0.2			0.3	0.2
DSO (Days Sales Outstanding), moving average	53.3	52.9			53.3	52.9
Margins (in % of revenue)
Gross margin, underlying	20.7%	20.8%			20.8%	20.9%
Operating expenses margin	16.4%	15.6%			16.5%	16.2%
EBITA margin, underlying	4.3%	5.2%			4.2%	4.7%
Share data
Basic earnings per ordinary share (in €)	0.91	1.60	(43)%		3.45	5.04	(32)%
Diluted earnings per ordinary share, underlying (in €)3	1.40	1.93	(27)%		4.53	5.67	(20)%
Basis earnings per share, underlying6	n.a.	n.a.			4.56	5.69	(20)%

1 Adjusted for integration costs and one-offs.

2 Amortization and impairment of acquisition-related intangible assets and goodwill.

3 Before amortization and impairment of acquisition-related intangible assets and goodwill, integration costs and one-offs. See table 'Earnings per share' on page 25.

4 Leverage ratio including IFRS 16.

5 Leverage ratio excluding IFRS 16, based on best estimates.

6 Based on net income, adjusted for the net effect of amortization and impairment of acquisition-related intangible assets and goodwill, integration costs, acquisition-related costs, and one-offs.

revenue

Organic revenue per working day was down 8.6% YoY in Q4 2023 resulting in revenue of € 6,183 million (Q3 2023: down 7.3%). Reported revenue was down 12% YoY, of which working days had a negative impact of 0.8% while FX had a negative effect of 3%. M&A positively contributed 0.7%.

In North America, revenue per working day was down 15% (Q3 2023: down 16%). Revenue in the US was down 15% YoY (Q3 2023: down 15%), while Canada was down 11% YoY (Q3 2023: down 16%). In Northern Europe, revenue per working day was down 9% (Q3 2023: down 7%). Revenue in the Netherlands was down 8% (Q3 2023: down 8%), while Germany was down 18% (Q3 2023: down 9%). Revenue in Belgium and Luxembourg was down 6% (Q3 2023: down 6%). In Southern Europe, UK and Latin America, revenue was down 4% (Q3 2023: down 4%). Revenue in France was down 5% (Q3 2023: down 3%) and in Italy revenue was down 2% (Q3 2023: down 2%). Revenue in Iberia was flat YoY (Q3 2023: down 2%). In the Asia Pacific region, revenue was down 3% (Q3 2023: up 2%); revenue in Japan was up 4% YoY (Q3 2023: up 5%), while revenue in Australia & New Zealand was down 9% YoY (Q3 2023: down 2%). Global Businesses revenue was down 18% YoY organically (Q3 2023: down 12%). Enterprise solutions revenue down 18% YoY (Q3 2023: down 12%), as the decline in RPO was partially offset by growth from outplacement and career mobility services. Monsterrevenue was down 12% YoY (Q3 2023: down 12%).

Perm fees decreased by 26% YoY (Q3 2023: down 22%). Perm fees in Northern Europe were down 41% YoY (Q3 2023: down 5%) and Southern Europe, UK and Latin America were down 7% (Q3 2023: down 13%). North American perm fees were down 31% (Q3 2023: down 40%). In the Asia Pacific region, perm fees were down 25% (Q3 2023: down 17%). Perm fees made up 9.5% of gross profit.

gross profit

In Q4 2023, underlying gross profit amounted to € 1,281 million, down 8% YoY organically and was adjusted for € 1 million of integration costs and one-offs (Q3 2023: down 10%). Currency effects had a negative € 52 million impact on gross profit compared to Q4 2022.

year-on-year gross margin development (%)

Gross margin was 20.7% in the quarter, 20.8% in Q4 2022 (as shown in the graph above). Temporary placements had a 48bp positive impact on gross margin (Q3 2023: 40bp positive impact, corrected¹ ). Permanent placements had a 37bp negative impact (Q3 2023: 40bp negative impact, corrected¹ ), while HRS/other had a 18bp negative impact (Q3 2023: 40bp negative impact, corrected¹ ).

¹ The YoY margin bridge for Q3 2023 is corrected as follows: gross margin in Q3 2023 was 20.6% in the quarter, 40bp below Q3 2022. Temporary placements had a 40bp positive impact on gross margin. Permanent placements had a 40bp negative impact, while HRS/other had a 40bp negative impact.

financial performance.

sequential OPEX development in € M

operating expenses

On an organic basis, underlying operating expenses were € 1,016 million, an organic increase of € 5 million sequentially. Compared to last year, operating expenses were down 4% YoY organically (Q3 2023: down 8%), while currency effects had a € 39 million positive impact.

Personnel expenses were down 1% sequentially. Average headcount (in FTE) amounted to 41,720 for the quarter, organically down 11% YoY and down 4% sequentially (net reduction of 1,490 FTE). Productivity (measured as gross profit per FTE) was up 2.3% YoY organically (Q3 2023: down 1.5%). We operated a network of 4,879 outlets end of period (Q3 2023: 4,862).

Operating expenses in Q4 2023 were adjusted for a total of € 44 million of integration costs and one-offs (Q4 2022 € 66 million). This mainly reflects restructurings in a few countries and integration costs for our recent acquisitions.

EBITA

Underlying EBITA was € 265 million, down 24% YoY. Currency effects had a € 14 million negative impact YoY. EBITA margin reached 4.3% in the quarter, 90bp below Q4 2022. Overall, we achieved a recovery ratio of 33% in Q4 2023 and 48% in FY 2023.

net finance costs

In Q4 2023, net finance costs were € 22 million, compared to € 12 million in Q4 2022. Interest expenses on our net debt position were € 5 million (Q4 2022: € 7 million), and interest expenses related to lease liabilities were € 7 million (Q4 2022 € 5 million). Foreign currency and other effects had a negative impact of € 10 million (Q4 2022: no impact).

tax

The full year underlying effective tax rate before amortization and impairment of acquisition-related intangibles and goodwill, integration costs and one-offs amounted to 18.3% (FY 2022: 18.2%). For FY 2024, we expect an effective tax rate before amortization and impairment of acquisition-related intangibles and goodwill, integration costs and one-offs of between 25% and 27%.

net income, earnings per share

In Q4 2023, adjusted net income was down 30% YoY to € 248 million. Diluted underlying EPS amounted to € 1.40 (Q4 2022: € 1.93). The average number of diluted ordinary shares outstanding for the quarter was 177.3 million (Q4 2022: 183.7 million).

invested capital

in millions of €, unless otherwise indicated	dec 31 2023	sep 30 2023	jun 30 2023	mar 31 2023	dec 31 2022	sep 30 2022
Goodwill and acquisition-related intangible assets	3,225	3,246	3,224	3,251	3,280	3,414
Operating working capital (OWC)1	1,105	1,204	1,294	1,257	1,239	1,320
Net tax assets2	741	662	649	623	619	564
All other assets/(liabilities)3	552	600	608	109	647	102
Employed capital	5,623	5,712	5,775	5,240	5,785	5,400
Financed by
Total equity	4,700	4,705	4,567	4,495	4,915	4,725
(Net Cash)/Net debt excl. lease liabilities	306	419	616	145	272	74
Lease liabilities	617	588	592	600	598	601
Net debt incl. lease liabilities	923	1,007	1,208	745	870	675
Invested capital	5,623	5,712	5,775	5,240	5,785	5,400
Underlying EBITA (last twelve months)	1,075	1,174	1,237	1,274	1,294	1,265
Income tax paid (last twelve months)	(256)	(245)	(222)	(243)	(261)	(263)
Ratios
DSO (Days Sales Outstanding), moving average	53.3	53.4	53.3	53.0	52.9	52.5
OWC as % of revenue over last 12 months	4.3%	4.6%	4.8%	4.6%	4.5%	4.8%
Leverage ratio (net debt/12-month EBITDA)	0.7	0.7	0.8	0.5	0.6	0.4
Return on invested capital4	14.6%	16.3%	17.6%	19.7%	17.9%	18.6%

1 Operating working capital: Trade and other receivables minus the current part of financial assets, deferred receipts from disposed Group companies and interest receivable minus trade and other payables excluding interest payable.

2 Net tax assets: Deferred income tax assets and income tax receivables less deferred income tax liabilities and income tax liabilities.

3 All other assets/(liabilities), mainly containing property, plant & equipment, right of use assets, software plus financial assets and associates, less provisions and employee benefit obligations and other liabilities. As at March 31, 2023, € 530 million dividends payable is included (September 30, and June 30, 2022 € 514 million).

4 Return on invested capital: underlying EBITA (last 12 months) less income tax paid (last 12 months) as percentage of invested capital.

Return on invested capital (ROIC) amounted to 14.6%, a decrease of 330bp YoY. This decrease is primarily driven by the lower 12-month rolling EBITA, partly offset by lower invested capital in Q4 2023 compared to last year.

The moving average of Days Sales Outstanding (DSO) was 53.3 (Q3 2023: 53.4).

At the end of Q4 2023, net debt including lease liabilities was € 923 million, compared to € 870 million at the end of Q4 2022. A further analysis of the cash flow is provided in the next section.

cash flow summary

in millions of €	Q4 2023	Q4 2022	change	FY 2023	FY 2022	change
EBITA	220	296	(26)%	923	1,164	(21)%
Depreciation, amortization and impairment of property, plant, equipment, right-of-use assets, and software	79	80		299	303
EBITDA	299	376	(20)%	1,222	1,467	(17)%
Operating working capital	78	16		112	(213)
Provisions and employee benefit obligations	23	10		44	28
All other items	18	21		72	52
Income taxes	(52)	(41)		(256)	(261)
Net cash flow from operating activities	366	382	(4)%	1,194	1,073	11%
Net capital expenditures	(24)	(33)		(93)	(122)
Financial assets	7	(2)		(4)	(2)
Repayments of lease liabilities	(58)	(53)		(214)	(210)
Free cash flow	291	294	(1)%	883	739	19%
Net (acquisitions)/disposals	(46)	28		(50)	(167)
Dividends from associates	-	1		-	1
Net purchase of own ordinary shares	(122)	(10)		(294)	(81)
Dividend on ordinary and preference shares	-	(514)		(530)	(922)
Net finance costs paid	(7)	(4)		(33)	(15)
Translation and other effects	(32)	10		(29)	(10)
Net decrease / (increase) of net debt	84	(195)		(53)	(455)

In the quarter, free cash flow amounted to € 291 million, down € 3 million YoY (Q4 2022: € 294 million). Over the full year, we delivered free cash flow of € 883 million, up € 144 million YoY (FY 2022: € 739 million). Free cash flow trend mainly reflects a decline in EBITA more than offset by countercyclical working capital dynamics.

Finally, income taxes paid over the full year 2023 amounted to € 256 million (FY 2022: € 261 million).

performance.

performance by segment

Q4 2023: revenue € 6,183 million Q4 2023: EBITA € 265 million

North America Northern Europe Southern Europe,

Asia Pacific Global Businesses

revenue in millions of €	Q4 2023	Q4 2022	organic ∆%1	FY 2023	FY 2022	organic ∆%1
North America	1,108	1,370	(15)%	4,594	5,497	(13)%
Netherlands	818	906	(8)%	3,195	3,526	(9)%
Germany	419	519	(18)%	1,843	2,014	(8)%
Belgium/Luxembourg	387	415	(6)%	1,554	1,681	(7)%
Other NE Countries	394	416	(4)%	1,495	1,563	(2)%
Northern Europe	2,018	2,256	(9)%	8,087	8,784	(7)%
France	935	986	(5)%	3,829	3,916	(2)%
Italy	539	560	(2)%	2,148	2,231	(3)%
Iberia	436	398	(0)%	1,605	1,621	(3)%
Other SE Countries, UK & Latam	219	351	(9)%	1,266	1,463	(4)%
Southern Europe, UK & Latin America	2,129	2,295	(4)%	8,848	9,231	(3)%
Asia Pacific	598	670	(3)%	2,497	2,472	2%
Global Businesses	330	416	(18)%	1,400	1,584	(9)%
Revenue	6,183	7,007	(9)%	25,426	27,568	(6)%

UK & Latin America

1 Organic change is measured excluding the impact of currencies, acquisitions, disposals, and reclassifications. For revenue, the organic change has been adjusted for the number of working days.

performance.

Q4 2023	EBITA margin1	Q4 2022	EBITA margin1	organic ∆%2	FY 2023	EBITA margin1	FY 2022	EBITA margin1	organic ∆%2
55	5.1%	89	6.4%	(33)%	237	5.2%	350	6.4%	(30)%
51	6.4%	55	6.1%	(5)%	198	6.2%	213	6.0%	(7)%
8	1.9%	20	3.9%	(62)%	66	3.6%	59	3.0%	10%
23	5.8%	17	4.2%	28%	75	4.8%	78	4.7%	(5)%
11	2.7%	17	3.9%	(35)%	45	3.0%	63	3.9%	(27)%
93	4.6%	109	4.8%	(15)%	384	4.7%	413	4.7%	(7)%
56	6.0%	63	6.4%	(11)%	212	5.5%	211	5.4%	1%
44	8.1%	45	8.0%	(2)%	158	7.3%	161	7.2%	(2)%
28	6.5%	26	6.5%	7%	98	6.1%	95	5.8%	3%
9	3.5%	12	3.7%	5%	41	3.2%	51	3.5%	(8)%
137	6.3%	146	6.4%	(4)%	509	5.7%	518	5.6%	0%
29	4.6%	35	5.3%	(14)%	126	5.0%	126	5.1%	(4)%
-2	(0.7)%	16	3.7%	(117)%	7	0.5%	27	1.7%	(74)%
(47)		(31)			(188)		(140)
265	4.3%	364	5.2%	(24)%	1,075	4.2%	1,294	4.7%	(16)%
(45)		(68)			(152)		(130)
220		296			923		1,164

1 EBITA in % of total revenue per segment.

2 Organic change is measured excluding the impact of currencies, acquisitions, disposals, and reclassifications. For revenue, the organic change has been adjusted for the number of working days.

3 Operating profit before amortization and impairment of acquisition-related intangible assets and goodwill, integration costs and one-offs.

north america

In North America, revenue was down 15% YoY (Q3 2023: down 16%). Perm fees were down 31% YoY (Q3 2023: down 40%). In Q4 2023, revenue of our combined US businesses was down 15% YoY (Q3 2023: down 15%). US Staffing/Inhouse Services was down 17% YoY (Q3 2023: down 19%). US Professionals revenue was down 12% YoY (Q3 2023: down 11%). In Canada, revenue was down 11% YoY (Q3 2023: down 16%). EBITA margin for the region came in at 5.1% for the quarter, compared to 6.4% last year.

northern europe

In the Netherlands, revenue was down 8% (Q3 2023: down 8%). Overall perm fees were down 28% YoY (Q3 2023: down 24%). Our combined Staffing and Inhouse Services business was down 3% YoY (Q3 2023: down 5%), while our Professionals business was down 29% YoY (Q3 2023: down 26%). EBITA margin in the Netherlands was 6.4%, compared to 6.1% last year.

In Germany, revenue was down 18% YoY (Q3 2023: down 9%). Perm fees were down 29% compared to last year (Q3 2023: up 29%). Our combined Staffing/Inhouse Services business was down 20% YoY (Q3 2023: down 10%), while Professionals was down 8% YoY (Q3 2023: down 6%). EBITA margin in Germany was 1.9%, compared to 3.9% last year.

In Belgium and Luxembourg, revenue was down 6% YoY (Q3 2023: down 6%). Our Staffing/Inhouse Services business was down 4% YoY (Q3 2023: down 7%). EBITA margin was 5.8%, compared to 4.2% last year.

Across other Northern European countries, revenue per working day was down 4% YoY (Q3 2023: down 3%). In the Nordics, revenue was down 18% YoY (Q3 2023: down 15%), while in Switzerland, revenue was down 11% YoY (Q3 2023: down 7%). Revenue in Poland was up 8% YoY (Q3 2023: up 14%). EBITA margin for other Northern Europe countries was 2.7% compared to 3.9% last year.

southern europe, uk & latin america

In France, revenue was down 5% YoY (Q3 2023: down 3%). Perm fees were down 16% compared to last year (Q3 2023: down 6%). Staffing/Inhouse Services revenue was down 8% YoY (Q3 2023: down 8%), while our Professionals business was up 3% YoY (Q3 2023: up 8%). EBITA margin was 6.0% compared to 6.4% last year.

Revenue in Italy was down 2% YoY (Q3 2023: down 2%). Overall perm fees were up 9% YoY (Q3 2023: up 5%). EBITA margin was 8.1%, compared to 8.0% last year.

In Iberia, revenue per working day was flat YoY (Q3 2023: down 2%). Perm fees were down 2% compared to last year (Q3 2023: down 8%). Staffing/Inhouse Services combined was flat YoY (Q3 2023: down 2%). Spain was up 1% YoY (Q3 2023: down 2%), while in Portugal revenue was down 6% YoY (Q3 2023: down 1%). EBITA margin was 6.5%, compared to 6.5% last year.

Across other Southern European countries, UK & Latin America, revenue per working day was down 9% YoY (Q3 2023: down 9%). In the UK, revenue was down 17% YoY (Q3 2023: down 16%), while in Latin America revenue was up 11% YoY (Q3 2023: up 7%). EBITA margin for this region was 3.5% compared to 3.7% last year.

asia pacific

Total revenue in the Asia Pacific region was down 3% organically YoY (Q3 2023: up 2%). In Japan, revenue was up 4%YoY (Q3 2023: up 5%). Revenue in Australia/New Zealand was down 9% YoY (Q3 2023: down 2%), while our business in India was up 1% YoY (Q3 2023: up 7%). Overall EBITA margin in this region was 4.6%, compared to 5.3% last year.

global businesses

Total organic revenue per working day was down 18% YoY (Q3 2023: down 12%). Enterprise solutions revenue was down 18% YoY (Q3 2023: down 12%), while Monster revenue was down 12% YoY (Q3 2023: down 12%). EBITA margin came in at -0.7% compared to 3.7% last year.

performance by revenue category

revenue in millions of €	Q4 2023	Q4 20221	organic ∆%2	FY 2023	FY 20221	organic ∆%2
Staffing	2,825	3,153	(8)%	11,543	12,838	(8)%
Inhouse Services	1,569	1,763	(7)%	6,430	6,811	(4)%
Professionals	1,459	1,675	(10)%	6,053	6,335	(5)%
Global Businesses	330	416	(18)%	1,400	1,584	(9)%
Revenue	6,183	7,007	(9)%	25,426	27,568	(6)%

1 2022 has been restated due to changes in the external reporting structure. Refer to the notes to the consolidated interim financial statements for further detail

2 Organic change is measured excluding the impact of currencies, acquisitions, disposals, and reclassifications. For revenue, the organic change has been adjusted for the number of working days.

Total revenues of permanent placements in the revenue categories 'Staffing', 'Inhouse', and 'Professionals', amounted to € 123 million in Q4 2023 (Q4 2022: € 172 million) and € 590 million in FY 2023 (FY 2022: € 734 million). Revenue of recruitment process outsourcing within Global businesses amounted to € 75 million in Q4 2023 (Q4 2022: € 115 million) and € 338 million in FY 2023 (FY 2022: € 453 million).

other information.

outlook

Q4 2023 revenue per working day decreased by 8.6% YoY organically.

The challenging macroeconomic conditions we experienced in the fourth quarter translated into continued lower hiring activities from our clients. These conditions continued into early 2024, with January organic revenue growth in line with Q4 2023 trends.

Q1 2024 gross margin is expected to be modestly lower sequentially due to seasonality.

Q1 2024 operating expenses are expected to be marginally higher sequentially.

Visibility remains limited. We remain cautious and we continue to work with scenario planning. We will continue to respond quickly and effectively, through our diverse portfolio of services, and operational adaptability provided by our field steering model.

There will be a negative 0.8 working day impact in Q1 2024.

working days

	Q1	Q2	Q3	Q4
2024	63.1	62.2	64.9	63.3
2023	63.9	61.7	63.8	62.2
2022	63.2	62.1	64.8	62.7

credit rating

Randstad received an issuer credit rating on 12 February 2024 from Moody's, who assigned a solid long-term investment grade rating with a Stable Outlook of Baa1. The rating will allow Randstad to diversify its funding sources.

shareholder return proposal over 2023

Randstad believes the strength in our balance sheet and cash-generative business model has created space for additional capital returns to our shareholders. We have carefully reviewed the options, to achieve a balance within the existing capital allocation framework and provide an attractive return for all shareholders, whilst allowing for flexibility in the current macro environment.

Based on our strong balance sheet at the year-end of 2023 with a net debt position of € 306 million (excluding lease liabilities), we are pleased to announce, subject to shareholder approval, a return of around € 632 million to our shareholders. This consists of a total regular dividend of around € 406 million and a special dividend totalling around € 226 million.

We propose to pay a regular cash dividend per ordinary share of € 2.28. This equates to 50% of underlying adjusted net profit and is in line with the current policy of a 40-50% payout ratio. We also propose to pay a special cash dividend of €1.27 per ordinary share.

The ex-dividend date for the regular cash dividend will be March 28, 2024. The number of shares entitled to the regular dividend will be determined on April 2, 2024 (record date). The payment of the regular cash dividend will take place on April 4, 2024. The ex-dividend date for the special dividend will be September 26, 2024. The number of shares entitled to the special dividend will be determined on September 27, 2024 (record date). The payment of the special cash dividend will take place on October 1, 2024.

The proposed dividend payment on the preference B and C shares amounts to € 8.2 million in total and the payment will also take place on April 4, 2024.

other items

Randstad N.V. ("Randstad") today commences the fourth tranche of its € 400 million full share buyback program as announced on February 14, 2023.

The purpose of the program is to reduce the capital of Randstad, by canceling all of the ordinary shares purchased through the program.

The program is being executed under the mandate given by the Annual General Meeting of Shareholders on March 28, 2023 ("AGM 2023") and within the limits of relevant laws and regulations.

The share buyback program is being executed in several tranches. For each of them, an intermediary has been mandated to execute the purchase of the shares independently of Randstad in compliance with the Regulation (EU) No 596/2014, of the European Parliament and the Council, of 16 April 2014, on market abuse (the "Market Abuse Regulation") and within predefined execution parameters. Randstad shares are purchased in the market and accumulated in treasury until cancellation. Pursuant to the relevant rules and regulations, cancellation may not be affected earlier than two months after a resolution to cancel shares is adopted and publicly announced.

Randstad will commence the fourth tranche of its € 400 million full share buyback program, to repurchase up to a maximum of 1,500,000 ordinary shares in Randstad in the period between 13 February 2024 and 22 April 2024 (inclusive), equivalent to around € 80 million based on the closing share price on Euronext Amsterdam on 12 February 2024.

Within the limits set at the AGM 2023, the maximum price to be paid for shares will be 110% of the closing price of the one preceding trading day on the Euronext Amsterdam stock exchange. Any purchases of shares will be carried out on Euronext Amsterdam and on CBOE in accordance with certain pre-set parameters in accordance with Article 5(1) of the Market Abuse Regulation. Randstad has mandated an independent broker to undertake the fourth tranche of the program between 13 February 2024 and 22 April 2024 (inclusive). The independent broker will make its trading decisions with regard to the number of shares to be purchased and the timing of the purchases independently of Randstad, and any shares so purchased will be on-sold by the independent broker to Randstad.

The independent broker's instruction to purchase the shares is irrevocable. Randstad will provide weekly updates on the progress of the program on its corporate website in the investor relations section and to the AFM. Once the maximum number of shares has been repurchased, Randstad will immediately disclose the finalization of the fourth tranche of its € 400 million full share buyback program.

The Supervisory Board proposes that Philippe Vimard be appointed as a member of the Supervisory Board. Philippe Vimard was born in Canada in 1974 and has both French and Canadian citizenship. He holds a degree in Computer Science from the CDI College in Montreal. Philippe Vimard is a non-executive director at publicly listed companies Schibsted, Patrizia Immobilien, and Nordhealth, and an advisor to private tech start-ups. From 2018 until 2022, he was Chief Operating Officer & Chief Technology Officer, and a member of the Management Board of Doctolib. Before joining Doctolib, he held various global Technology Officer roles at Klarna, Edreams Odigeo, and Expedia.

The proposal for appointment to the Supervisory Board is scheduled for the upcoming Annual General Meeting of Shareholders to be held on 26 March 2024. At the same meeting, the proposed appointment of Dimitra Manis to the Supervisory Board is scheduled, as announced on 25 July 2023.

financial calendar

Publication of fourth quarter and annual results 2023	February 13, 2024
Annual General Meeting of Shareholders	March 26, 2024
Ex-dividend date of regular dividend	March 28, 2024
Record date of regular dividend	April 2, 2024
Regular dividend ordinary shares available for payment	April 4, 2024
Publication of first quarter results 2024	April 23, 2024
Publication of second quarter results 2024	July 23, 2024
Ex-dividend date of special dividend	September 26, 2024
Record date of special dividend	September 27, 2024
Special dividend ordinary shares available for payment	October 1, 2024
Publication of third quarter results 2024	October 22, 2024

analyst and press conference call

Today (February 13, 2024), at 09.00 AM CET, Randstad N.V. will be hosting an analyst conference call. The dial-in numbers are:

• International: +44 (0)33 0551 0200
• Netherlands: +31 (0)20 708 5073

To gain access to the conference please tap or state the password 'Randstad'

You can listen to the call through a real-time audio webcast. You can access the webcast and presentation at https:// www.randstad.com/results-and-reports/quarterly-results. A replay of the presentation and the Q&A will be available on our website by the end of the day.

For more information please contact:

Stef Leijdekkers- investors and analysts stef.leijdekkers@randstad.com or (mobile) +31 (0)6 1928 3785 Elise Martin-Davies - media elise.martin-davies@randstad.com or (mobile) +31 (0)6 1322 5136

disclaimer

Certain statements in this document concern prognoses about the future financial condition, risks, investment plans, and the results of operations of Randstad N.V. and its operating companies, as well as certain plans and objectives. Obviously, such prognoses involve risks and a degree of uncertainty, since they concern future events and depend on circumstances that will apply then. Many factors may contribute to the actual results and developments differing from the prognoses made in this document. These factors include, but are not limited to, general economic conditions, shortages on the job market, changes in the demand for personnel (including flexible personnel), achievement of cost savings, changes in the business mix, changes in legislation (particularly in relation to employment, staffing and tax laws), the role of industry regulators, future currency and interest fluctuations, availability of credit on financially acceptable terms, the successful completion of company acquisitions and their subsequent integration, successful disposals of companies, the rate of technological developments, the impact of pandemics and our ability to identify other relevant risks and mitigate their impact. These prognoses therefore apply only on the date on which this document was compiled. The quarterly results as presented in this press release are unaudited.

randstad profile

Randstad is a global talent leader with the vision to be the world's most equitable and specialized talent company. As a partner for talent and through our four specializations - Operational, Professional, Digital and Enterprise - we provide clients with the high-quality, diverse and agile workforces that they need to succeed in a talent scarce world. We help people secure meaningful roles, develop relevant skills and find purpose and belonging in their workplace. Through the value we create, we are committed to a better and more sustainable future for all.

Headquartered in the Netherlands, Randstad operates in 39 markets and has approximately 40,000 employees. In 2023, we supported 2 million talent to find work and generated a revenue of €25.4 billion. Randstad N.V. is listed on the Euronext Amsterdam. For more information, see www.randstad.com.

use of peformance measures

conversion ratio

A performance measure on how Randstad's EBITA develops in relation to the Gross Profit. This makes different businesses in our portfolio better comparable, taking out fee structures of different service lines.

EBITA

Operating profit before amortization and impairment of acquisition-related intangibles and goodwill (EBITA) is a measure of company profitability used by investors in the staffing industry to analyze the results of staffing companies.

EBITA margin

EBITA as a percentage of revenue.

EBITDA

Operating profit before depreciation and impairment of property, plant and equipment and right use of assets, amortization and impairment of software and acqusition-related intangibles and impairment of goodwill.

moving average Days of sales outstanding (DSO)

The DSO is calculated at the end of each month by dividing Trade receivables at the end of the month by the last 3 months of revenue (including VAT) and multiplied by 365 days divided by 4 (quarters). The moving average DSO is the sum of the last twelve months of DSO divided by 12 (months).

organic growth

Externally reported income statement line items (revenue, gross profit, operating expenses & EBITA) adjusted for the impact of changes in foreign currency ("FX"), the effect of hyperinflation and excluding the impact of acquisitions and disposals on revenues.

organic revenue and gross profit growth per working day

This is the organic growth divided by the number of working days in the period. Randstad operates in an industry where for each additional working day compared to the previous period, additional revenue/gross profit can be generated. Therefore the organic growth per working day is a measure that best shows underlying/ comparable performance isolating the working day effect.

underlying EBITA

Refers to Randstad's adjusted EBITA , excluding certain one-off and/or exceptional items that may distort the true operational performance of the business. It provides a clearer picture of the company's ongoing profitability by eliminating the impact of restructuring costs, integration and M&A costs related to acquisitions and other exceptional items.

interim financial statements.

actuals.

consolidated income statement

in millions of €, unless otherwise indicated	Q4 2023	Q4 2022	FY 2023	FY 2022
Revenue	6,183	7,007	25,426	27,568
Cost of services	4,903	5,551	20,148	21,817
Gross profit	1,280	1,456	5,278	5,751
Selling expenses	676	769	2,841	3,106
General and administrative expenses	384	391	1,514	1,481
Operating expenses	1,060	1,160	4,355	4,587
Amortization and impairment of acquisition-related intangible assets and goodwill	58	11	92	27
Total operating expenses	1,118	1,171	4,447	4,614
Operating profit	162	285	831	1,137
Net finance income / (costs)	(22)	(12)	(70)	(12)
Share of profit of associates	-	-	1	1
Income before taxes	140	273	762	1,126
Taxes on income	23	21	(138)	(197)
Net income	163	294	624	929
Net income attributable to:
Holders of ordinary shares Randstad N.V.	161	292	616	921
Holders of preference shares Randstad N.V.	2	2	8	8
Equity holders	163	294	624	929
Non-controling interests	-	-	-	-
Net Income	163	294	624	929
Earnings per share attributable to the holders of ordinary shares of Randstad N.V. (in € per share):
Basic earnings per share	0.91	1.60	3.45	5.04
Diluted earnings per share	0.91	1.59	3.43	5.02
Diluted earnings per share before amortization and impairment of acquisition-related intangible assets and goodwill, integration costs and one-offs	1.40	1.93	4.53	5.67

informationbygeographicalareaandrevenuecategory

revenue by geographical area

in millions of €	Q4 2023	Q4 20221	FY 2023	FY 20221
North America	1,108	1,370	4,594	5,497
Netherlands	820	908	3,201	3,534
Germany	419	519	1,843	2,014
Belgium/Luxembourg	388	415	1,560	1,684
Other NE Countries	398	419	1,505	1,569
Northern Europe	2,025	2,261	8,109	8,801
France	935	987	3,832	3,917
Italy	539	560	2,148	2,231
Iberia	438	399	1,610	1,625
Other SE Countries, UK & Latam	222	353	1,277	1,473
Southern Europe, UK & Latin America	2,134	2,299	8,867	9,246
Asia Pacific	600	671	2,503	2,477
Global Businesses	333	419	1,413	1,598
Elimination of intersegment revenue	(17)	(13)	(60)	(51)
Revenue	6,183	7,007	25,426	27,568

1 2022 has been restated due to changes in the external reporting structure. Refer to the notes to the consolidated interim financial statements for further detail.

EBITA by geographical area

in millions of €	Q4 2023	Q4 20221	FY 2023	FY 20221
North America	47	82	219	338
Netherlands	51	55	192	213
Germany	(5)	2	29	37
Belgium/Luxembourg	18	16	67	72
Other NE Countries	11	16	43	61
Northern Europe	75	89	331	383
France	49	55	200	198
Italy	44	45	158	161
Iberia	24	25	93	93
Other SE Countries, UK & Latam	6	11	34	49
Southern Europe, UK & Latin America	123	136	485	501
Asia Pacific	27	19	96	101
Global Businesses	(4)	5	(14)	13
Corporate	(48)	(35)	(194)	(172)
EBITA	220	296	923	1,164

1 2022 has been restated due to changes in the external reporting structure. Refer to the notes to the consolidated interim financial statements for further detail.

revenue by revenue category

in millions of €	Q4 2023	Q4 20221	FY 2023	FY 20221
Staffing	2,839	3,163	11,590	12,875
Inhouse	1,569	1,763	6,430	6,811
Professionals	1,459	1,675	6,053	6,335
Global businesses	333	419	1,413	1,598
Elimination of intersegment revenue	(17)	(13)	(60)	(51)
Revenue	6,183	7,007	25,426	27,568

1 2022 has been restated due to changes in the external reporting structure. Refer to the notes to the consolidated interim financial statements for further detail.

Total revenues of permanent placements in the revenue categories 'Staffing', 'Inhouse', and 'Professionals', amounted to € 123 million in Q4 2023 (Q4 2022: € 172 million) and € 590 million in FY 2023 (FY 2022: € 734 million). Revenue of recruitment process outsourcing within Global businesses amounted to € 75 million in Q4 2023 (Q4 2022: € 115 million) and € 338 million in FY 2023 (FY 2022: € 453 million).

consolidated balance sheet

in millions of €	December 31, 2023	December 31, 2022
assets Property, plant and equipment	136	153
Right-of-use assets	543	524
Intangible assets	3,342	3,397
Deferred income tax assets	669	633
Financial assets and associates	178	184
Non-current assets	4,868	4,891
Trade and other receivables	5,404	5,828
Income tax receivables	153	116
Cash and cash equivalents	261	274
Current assets	5,818	6,218
Total assets	10,686	11,109
equity and liabilities
Issued capital	26	26
Share premium	2,358	2,330
Reserves	2,315	2,558
Shareholders' equity	4,699	4,914
Non-controlling interests	1	1
Total equity	4,700	4,915
Borrowings (including lease liabilities)	488	889
Deferred income tax liabilities	18	52
Provisions and employee benefit obligations	254	219
Other liabilities	-	7
Non-current liabilities	760	1,167
Borrowings (including lease liabilities)	696	255
Trade and other payables	4,289	4,576
Dividend	-	-
Income tax liabilities	63	78
Provisions and employee benefit obligations	171	118
Other liabilities	7	-
Current liabilities	5,226	5,027
Total liabilities	5,986	6,194
Total equity and liabilities	10,686	11,109

consolidated statement of cash flows

in millions of €	Q4 2023	Q4 2022	FY 2023	FY 2022
Operating profit	162	285	831	1,137
Amortization and impairment of acquisition-related intangible assets and goodwill	58	11	92	27
EBITA	220	296	923	1,164
Depreciation, amortization and impairment of property, plant, equipment, right-of-use assets, and software	79	80	299	303
EBITDA	299	376	1,222	1,467
Provisions and employee benefit obligations	23	10	44	28
Share-based compensations	15	13	59	49
Gain on disposal of subsidiaries and associates	-	-	-	-
Other items	3	8	13	3
Cash flow from operations before operating working capital and income taxes	340	407	1,338	1,547
Operating working capital assets	62	(30)	397	(324)
Operating working capital liabilities	16	46	(285)	111
Operating working capital	78	16	112	(213)
Income taxes	(52)	(41)	(256)	(261)
Net cash flow from operating activities	366	382	1,194	1,073
Net additions in property, plant and equipment, and software	(24)	(33)	(93)	(122)
Acquisition of subsidiaries, associates and equity investments	(52)	26	(56)	(171)
Disposal of subsidiaries, associates and equity investments	6	2	6	4
Loans and receivables	7	(2)	(4)	(2)
Net cash flow from investing activities	(63)	(6)	(147)	(290)
Net purchase of own ordinary shares	(122)	(10)	(294)	(81)
Drawings on non-current borrowings	-	400	527	766
Repayments of non-current borrowings	(170)	(200)	(570)	(970)
Net drawing / (repayment) current borrowings	57	(54)	80	58
Repayments of lease liabilities	(58)	(53)	(214)	(210)
Net financing	(293)	83	(471)	(437)
Net finance costs paid	(7)	(4)	(33)	(15)
Dividend	-	(514)	(530)	(922)
Net reimbursement to financiers	(7)	(518)	(563)	(937)
Net cash flow from financing activities	(300)	(435)	(1,034)	(1,374)
Net increase (decrease) in cash, and cash equivalents	3	(59)	13	(591)
Cash, and cash equivalents at beginning of period	280	356	274	859
Net movement	3	(59)	13	(591)
Translation and currency gains	(22)	(23)	(26)	6
Cash, and cash equivalents at end of period	261	274	261	274
Free cash flow	291	294	883	739

consolidated statement of changes in total equity and consolidatedstatementoftotalcomprehensiveincome

in millions of €	October 1 - December 31		January 1 - December 31
	2023	2022	2023	2022
Begin of period
Shareholders' equity	4,704	4,724	4,914	4,901
Non-controlling interests	1	1	1	1
Total equity	4,705	4,725	4,915	4,902
Net income for the period, equity shareholders	163	294	624	929
Non-controlling interest	-	-	-	-
Net income for the period	163	294	624	929
Items that subsequently may be reclassified to the income statement	(40)	(142)	(56)	7
Items that will never be reclassified to the income statement	(21)	35	(21)	27
Total other comprehensive income, net of taxes	(61)	(107)	(77)	34
Total comprehensive income	102	187	547	963
Dividend paid on ordinary shares	-	-	(522)	(914)
Dividend paid on preference shares	-	-	(8)	(8)
Share-based compensations	15	13	59	49
Tax on share-based compensations	-	-	3	4
Net purchase of ordinary shares	(122)	(10)	(294)	(81)
Total other changes in period	(107)	3	(762)	(950)
End of period	4,700	4,915	4,700	4,915
Shareholder's equity	4,699	4,914	4,699	4,914
Non-controlling interests1	1	1	1	1
Total equity	4,700	4,915	4,700	4,915

1 Changes in 'Non-controlling interests', are negligible for all periods.

notes to the consolidated interim financial statements

reporting entity

Randstad N.V. is a public limited liability company incorporated and domiciled in the Netherlands and listed on Euronext Amsterdam.

The consolidated interim financial statements of Randstad N.V. as at and for the three and twelve month period ended December 31, 2023 include the company and its subsidiaries (together called 'the Group').

significant accounting policies

These consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards and its interpretations issued by the International Accounting Standards Board (IASB), as adopted by the European Union (hereinafter: IFRS).

The accounting policies applied by the Group in these consolidated interim financial statements are unchanged from those applied by the Group in its consolidated financial statements as at and for the year ended December 31, 2022.

basis of presentation

These consolidated interim financial statements have been condensed and prepared in accordance with (IFRS) IAS 34 'Interim Financial Reporting'; they do not include all the information required for full (i.e., annual) financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended December 31, 2022.

The consolidated financial statements of the Group as at and for the year ended December 31, 2023 are available upon request at the Company's office or on www.randstad.com.

estimates

The preparation of consolidated interim financial statements requires the Group to make certain judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

In preparing these consolidated interim financial statements, the significant judgments, estimates, and assumptions are the same as those applied to the consolidated financial statements as at and for the year ended December 31, 2022.

new external segmentation

As of January 1, 2023, a new Executive Leadership Team was appointed along with changes in the governance and managerial reporting structure of the Group. As a result, the segmentation by geographical area has changed from the way it was presented in the FY 2022 annual report. Main changes are the creation of 'Northern Europe' and 'Southern Europe, UK & Latin America' segments. The countries included as part of the former 'Rest of Europe' segment have been allocated to both of these segments accordingly. Similarly, the former 'Rest of World' segment has been split between Latin American countries, included as part of the new 'Southern Europe, UK and Latin America' segment, and the remaining countries which are included in the new 'Asia Pacific' segment.

Compared to the FY 2022 annual report, the segmentation by revenue categories also includes minor changes to better reflect the allocation of revenue between 'Staffing' and 'Global Businesses' segments.

Comparative figures for prior periods have been adjusted accordingly for presentation purposes.

conflict in Ukraine

We closely follow the geopolitical developments in Eastern Europe. In 2023, the impact on our business was fairly limited. We are continuously monitoring the situation, with the aim of responding as quickly and effectively as possible to changing circumstances.

seasonality

The Group's activities are affected by seasonal patterns. The volume of transactions throughout the year fluctuates per quarter, depending on demand as well as on variations in items such as the number of working days, public holidays and holiday periods. The Group usually generates its strongest revenue and profits in the second half of the year, while the cash flow in the second quarter is usually negative due to the timing of payments of dividend and holiday allowances; cash flow tends to be strongest in the second half of the year.

effective tax rate

The effective tax rate for the twelve month period ended December 31, 2023 is 18.1% (FY 2022: 17.5%). The FY 2023 and 2022 effective tax rate was significantly impacted by the re-assessment of the valuation of our tax loss carry forward position in Luxembourg.

Reconciliation from applicable to effective tax rate
	2023	2022
Income tax rate of the company's country of domicile	25.8%	25.8%
Effect of income tax rates in other (non-domestic) jurisdictions	(4.1%)	(1.7%)
Weighted average applicable tax rate	21.7%	24.1%
Tax-exempt income/non-tax-deductible items	(0.4%)	0.9%
Changes in statutory applicable tax rates and effect of prior years	(0.4%)	(0.8%)
Change in valuation of deferred tax assets and other	(2.8%)	(6.7%)
Effective tax rate	18.1%	17.5%

acquisition and disposal of group companies, equity investments and associates

Assets and liabilities arising from acquisitions in 2023
in millions of €, unless otherwise indicated	Grupo CTC	other	FY 2023	FY 2022
Property, plant & equipment and software	2	-	2	-
Right of use assets	24	-	24	3
Acquisition-related intangible assets	30	-	30	134
Deferred tax assets	7	-	7	3
Total non-current assets	63	-	63	140
Working capital	(8)	(1)	(9)	5
Lease liabilities	23	-	23	3
Provisions and employee benefit obligations	9	-	9	-
Deferred income tax liabilities	8	-	8	46
Total non-current liabilities	40	-	40	49
Net assets acquired	15	(1)	14	96
Goodwill	35	2	37	69
Total consideration	50	1	51	165

Reconciliation of amount of acquisition of subsidiaries in CF statement

in millions of €, unless otherwise indicated	Grupo CTC	other	FY 2023	FY 2022
Total consideration	50	1	51	165
Net debt of subsidiaries acquired	2	-	2	9
Consideration paid, adjusted for net cash acquired	52	1	53	174
Deferred compensation on acquisitions	-	-	-	(9)
Consideration paid in respect of acquisitions in preceding years	-	1	1	5
Acquisition of subsidiaries, statement of cash flows	52	2	54	170

In the quarter, we had a cash outflow of € 52 million relating to the acquisition of Grupo CTC (Spain). Grupo CTC provides outsourced industrial, logistics, and sales & marketing services to customers in its home market of Spain and Portugal. Randstad completed the acquisition on October 25, 2023. The provisional purchase price allocation resulted in € 35 million of goodwill and € 30 million acquisition-related intangibles.

In Q4 2023, we had no disposal of Group companies (Q4 2022: no disposals). In Q4 2023, we had a cash inflow of € 6 million relating to the disposal of equity investments (Q4 2022: cash inflow of € 2 million).

shareholders' equity

Issued number of ordinary shares	2023	2022
January 1	183,959,312	183,959,312
Cancellation	-3,090,000	-
December 31	180,869,312	183,959,312

As at December 31, 2023, the Group held 2,850,392 treasury shares (December 31, 2022: 1,294,504). The average number of (diluted) ordinary shares outstanding has been adjusted for these treasury shares. As at December 31, 2023 and December 31, 2022: the number of issued preference shares was 25,200,000 (type B) and 50,130,352 (type C). During Q4 2023 we had a net purchase of ordinary shares of € 122 million, of which € 106 million was related to the share buyback program and € 16 million was related to the performance share plans. In addition, in Q4 2023 we had a cancellation of 3,090,000 shares related to the purchase under the share buyback program.

earnings per share

in millions of €, unless otherwise indicated	Q4 2023	Q4 2022	FY 2023	FY 2022
Net income for holders of preference and ordinary shares	163	294	624	929
Net income attributable to holders of preference shares	(2)	(2)	(8)	(8)
Net income attributable to holders of ordinary shares	161	292	616	921
Amortization of intangible assets1	58	11	92	27
Integration costs and one-offs	45	68	152	130
Tax effect on amortization, integration costs, and one-offs	(16)	(17)	(46)	(37)
Adjusted net income for holders of ordinary shares	248	354	814	1,041
Average number of ordinary shares outstanding	176.2	182.8	178.4	182.8
Average number of diluted ordinary shares outstanding	177.3	183.7	179.5	183.5
Earnings per share attributable to the holders of ordinary shares of Randstad N.V. (in € per share):
Basic earnings per share	0.91	1.60	3.45	5.04
Diluted earnings per share	0.91	1.59	3.43	5.02
Diluted earnings per share before amortization and impairment of acquisition-related intangible assets and goodwill, integration costs, and one-offs2	1.40	1.93	4.53	5.67

1 Amortization and impairment of acquisition-related intangible assets and goodwill.

2 Diluted EPS underlying

net debt position

Net debt including lease liabilities at December 31, 2023, amounted to € 923 million, and was € 53 million higher compared to December 31, 2022 (€ 870 million). The net debt position excluding lease liabilities as at December 31, 2023 was € 306 million compared to the net debt position as at December 31, 2022 (€ 272 million).

breakdown of operating expenses

in millions of €	Q4 2023	Q4 2022	FY 2023	FY 2022
Personnel expenses	784	891	3,258	3,465
Other operating expenses	276	269	1,097	1,122
Operating expenses	1,060	1,160	4,355	4,587

depreciation, amortization, impairment of property, plant, equipment, right-of-use assets and software

in millions of €	Q4 2023	Q4 2022	FY 2023	FY 2022
Depreciation and impairment of property, plant and equipment	14	14	54	56
Amortization and impairment of software	17	21	53	65
Depreciation and amortization of software	31	35	107	121
Depreciation and impairment of right-of-use assets	48	45	192	182
Total	79	80	299	303

net additions to property, plant, equipment and software, statement of cash flows

in millions of €	Q4 2023	Q4 2022	FY 2023	FY 2022
Additions
Property, plant and equipment & Software	(24)	(33)	(94)	(129)
	(24)	(33)	(94)	(129)
Disposals
Proceeds property, plant and equipment	-	-	1	6
(Profit)/Loss	-	-	-	1
	-		1	7
Statement of cash flows	(24)	(33)	(93)	(122)

impairments

The annual goodwill impairment test carried out by the Group in Q4 2023 resulted in an impairment for the operating segments United Kingdom and China for a total amount of € 45 million recorded in goodwill. In the United Kingdom an amount of € 41 million was recorded in goodwill due to continuing weak market conditions in a competitive environment and our continuing low (expected) profitability, and in China an amount of € 4 million was recorded in goodwill, due to an expected drop in revenue and profitability in the next few years (2022: no impairments).

total comprehensive income

Apart from net income for the period, total comprehensive income comprises translation differences and related tax effects that subsequently may be reclassified to the income statement in a future reporting period, and, if any, fair value adjustments of equity investments and remeasurements of post-employment benefits (including tax effects), that will never be reclassified to the income statement.

related-party transactions

There are no material changes in the nature, scope, and (relative) scale in this reporting period compared to last year. More information is included in notes 28, 29 and 30 to the consolidated financial statements as at and for the year ended December 31, 2023.

commitments

There are no material changes in the nature and scope of commitments compared to December 31, 2022.

events after balance sheet date

Subsequent to the date of the balance sheet, we have received an issuer credit rating by Moody's on 12 February 2024, who assigned a solid long-term investment grade rating with a Stable Outlook of Baa1.