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1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

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Page 1: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

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2013 INTERIM RESULTSPresented by:Spencer Manual (CEO)

Jon Plassard (CFO)

Page 2: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

CORPORATE BACKGROUND

2

Established in 2000 as an International Telecoms Recruiter

AIM listing in 2006

Acquired MSB in 2006

Acquired The Comms Group in 2009

Employs c. 370 people, with 45% of total staff located in overseas offices (over 50% of fee earners)

International Exposure: Over 70% Net Fee Income generated outside of the UK

Page 3: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

CURRENT SITUATION

3

Three main business streams:

- Mobile Telecoms - Specialist IT - Energy

Growing network of international offices

Loyal and diverse ‘Blue Chip’ customer base

Impressive profit history

Progressive dividend policy

Strong balance sheet, good cash flow and margins

Specialist International staffing company:

Page 4: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

MARKET BACKGROUND

4

Emerging market investments (Telco,IT,Energy)

Increasing demand for data (IT, Telco)

Technology developing faster than skills trained (Telco, IT, Energy)

Infrastructure improvements to cope with increased demand (Telco, IT, Energy)

O&M and product development (Telco, IT, Energy)

Networkers has capitalised upon international skills shortage within its core sectors

Page 5: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

5

INTERNATIONAL NETWORK 2013

Global Headcount

Jun 2013

Jun 2012

Sales 269 274

Non Sales 101 102

370 376

Page 6: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

6

GLOBAL HEADCOUNT BY LOCATION

Page 7: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

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6m June2013

£’000

6m Jun2012

£’000

12m Dec2012

£’000

Turnover 79,417 90,622 170,673

Gross profit 14,667 15,887 30,788

Gross margin % 18.5% 17.5% 18.0%

GP Growth -7.7% 16.7% 1.6%

Administrative expenses 11,226 12,295 23,498

Earnings before interest, tax and amortisation 3,441 3,592 7,290

Conversion ratio % 23.7% 22.6% 23.7%

Amortisation (111) (159) (340)

Net finance expenses (106) (143) (269)

Litigation costs / provision (114) - (1,000)

Profit before taxation 3,110 3,290 5,681

Adjusted EPS 2.43p 2.34p 4.70p

EPS growth 3.85% 16.42% 11.4%

INCOME & EXPENDITURE ACCOUNT

Page 8: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

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ASSETS30 Jun 13

£’00030 Jun 12

£’00031 Dec 12

£’000Non current assetsIntangible assets 5,783 5,952 5,761

Other non current assets 1,726 1,097 1,6537,509 7,049 7,414

Current assetsTrade receivables and other assets 37,466 37,726 34,470

Cash & cash equivalents 2,725 2,559 2,197

40,091 40,285 36,667

Total Assets 47,700 47,334 44,081LIABILITIESCurrent liabilitiesTrade payables and other liabilities (16,509) (17,143) (13,401) Loans and borrowings (8,605) (8,471) (9,092)

(25,114) (25,614) (22,493)

Non current liabilities (1,854) (280) (1,867)

Total Liabilities (26,968) (25,894) (24,360) NET ASSETS 20,732 21,440 19,721

BALANCE SHEET

Page 9: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

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6m to30 June 13

£’000

6m to30 June 12

£’000

Year to31 Dec 12

£’000

Cash generated from operations 3,806 5,846 9,295

Income taxes paid (1,100) (1,793) (3,311)

Net interest (106) (143) (269)

Capital expenditure (188) (69) (303)

Payments to acquire MI / Subsidiary (442) - -

Effects of exchange rate changes (120) (229) (293)

Cash flow before financing and distribution to shareholders 1,850 3,612 5,119

Financing / (repayment) incl. ID (487) (2,704) (2,083)

Dividends paid (539) (543) (1,074)

Purchase of treasury shares (net of share issues) (296) 70 (1,889)

Increase / (decrease) in cash 528 435 73

CASH FLOW

Page 10: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

5 YEAR SEQUENTIAL SUMMARY

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H1 2009

H2 2009

H1 2010

H2 2010

H1 2011

H2 2011

H1 2012

H2 2012

H1 2013

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

*Underlying pre-tax profit (£000's)

£000

's

H1 2009

H2 2009

H1 2010

H2 2010

H1 2011

H2 2011

H1 2012

H2 2012

H1 2013

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Net Fee Income (£000's)

Page 11: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

H1 2009

H2 2009

H1 2010

H2 2010

H1 2011

H2 2011

H1 2012

H2 2012

H1 2013

0.000

0.150

0.300

0.450

0.600

0.750

DPS (pence)

11

5 YEAR SEQUENTIAL SUMMARY

3.9x

4.5x

3.4x

H1 2009

H2 2009

H1 2010

H2 2010

H1 2011

H2 2011

H1 2012

H2 2012

H1 2013

0.00

0.50

1.00

1.50

2.00

2.50

EPS (pence)

Page 12: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

NET FEE INCOME BY SECTOR

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H1 2009 H2 2009 H1 2010 H2 2010 H1 2011 H2 2011 H1 2012 H2 2012 H1 2013

IT 48% 43% 42% 45% 36% 37% 34% 42% 36%

Telecoms 46% 50% 52% 48% 56% 58% 58% 51% 52%

E&E 2% 3% 3% 7% 5% 5% 6% 7% 11%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000£0

00's

Other

E&E

Telecoms

IT

Page 13: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

GROSS PROFIT MARGIN TREND

13

H1 2010 H2 2010 H1 2011 H2 2011 H1 2012 H2 2012 H1 20130.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Gross Margin %

Page 14: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

GEOGRAPHICAL ANALYSIS

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H1 2013

UK30%

EANA18%

Sub Saharan Africa,

14%

Asia, 11%,

Americas, 22%

Middle East, 6%

H1 2012

UK28%

EANA19%

Sub Saharan Africa, 14%

Asia, 18%

Americas, 15%

Middle East, 6%

Page 15: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

CURRENT TRADING

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Permanent international recruitment continues to perform well across all divisions (Telco, IT and Energy & Engineering)

International Telecoms remain stable

Specialist IT markets improved, particularly in UK

Energy & Engineering division continues to perform well

On track for an improved H2, in line with management expectations

Page 16: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

STRATEGIC DIRECTION

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Build a major, international staffing business focussed on high margins and barriers to entry:

- Mobile Telecoms- Specialist IT- Energy

Exploit dominant position in Telecoms when 4G rolls out globally

Continue growth of Specialist IT and Energy overseas

Enlarge teams in existing offices / open new offices

Bolt on acquisition in specific markets, in particular specialist IT and Energy

Page 17: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

APPENDICES

Page 18: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

BOARD OF DIRECTORS

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Spencer Manuel CEO

Jonathan Plassard CFO & COO

Roger Goodman Non Executive Chairman

Nigel Wray Non Executive Director

Lord William Astor Non Executive Director

Page 19: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

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SHAREHOLDERS: SEPTEMBER 2013

Total shares in issue: 82,810,269

\

Directors53%

Staff and Major Shareholders

16%

Others31%

Shareholders: Sep 2013

Page 20: 1 2013 INTERIM RESULTS Presented by: Spencer Manual (CEO) Jon Plassard (CFO)

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Disclaimer

This document has been prepared by Networkers International Plc (the “Company”) and is provided to you in your capacity as a high net-worth company or other body within the meaning of Article 49(2) a to d of the Financial Services Markets Act 2000 (Financial Promotion) Order 2005. This document has not been verified by or approved for distribution by Numis Securities Limited (“Numis”) nor has Numis authorised the contents of, or any part of, this document. Numis is acting for the Company and for no one else and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Numis nor for providing advice in relation to any matter referred to herein. To the fullest extent permitted by law recipients agree that Numis shall have no liability (direct or indirect) for or in connection with this document or any matters arising out of or in connection herewith. The information contained herein is compiled by the Company from a number of sources and is believed to be correct, but cannot be guaranteed and should not be relied upon. This document does not constitute, or form any part of, and is not to be construed as an offer, invitation or solicitation to buy or sell any securities of any of the companies referred to herein and any opinions expressed are subject to change without notice. Neither the Company nor Numis accepts any responsibility to update the contents of this document.The information communicated in this document may contain statements that are or may be forward looking. These statements typically contain words such as "expects" and "anticipates" and words of similar import. By their nature forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. The value of any investments referred to herein and the income derived therefrom may fall or rise against the investors’ interest and past performance is not a guide to the future. Any references to the impact of taxation are made in the context of current legislation and may not be valid should levels or basis of taxation change in the future. No representation or warranty, express or implied, is given by the company or Numis or any of their respective directors, partners, officers, employees or professional advisers as to the accuracy, completeness or fairness of the information or the opinions contained in this document and no responsibility or liability is accepted for any such information or opinions or errors or omissions.This document is being supplied to you solely for information and may not be reproduced or redistributed in whole or in part to any other person for any purpose. In addition this document is being provided to you on the basis that it is kept confidential, any information contained herein or otherwise made available in connection with the Company must remain confidential. This document and the information contained herein, are not for publication or distribution, directly or indirectly, to persons in the United States (within the meaning of Regulation S under the US Securities Act of 1933, as amended (the "Securities Act")) or to entities in Canada, Australia, Japan or any other jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of the United States or other national securities laws.