Steve Ingham Chief Executive Officer - page.com/media/Files/M/Michael-Page/... · Headline Numbers Financial Review Regional Review Summary 3 Key financial highlights ... Record Group

Steve Ingham

Kelvin Stagg

Chief Executive Officer

Chief Financial Officer

LSE: PAGE.L

Website: http://www.page.com/investors

11 April 2018

Q1 2018 Trading Update

“Another quarter of double

digit growth”

http://www.page.com/investors

Headline Numbers

Kelvin Stagg, Chief Financial Officer

Q1 18

Headline Numbers Financial Review Regional Review Summary

3

Key financial highlights

A record quarter for the Group

£187.7m£170.2m Q1 2017

Gross Profit +12.3%+9.1% Q1 2017

+10.3%+19.7% Q1 2017

Growth in

Constant

Currency

Reported

Rates

Michael

Page

Page

Personnel

c. £91mc. £86m Q1 2017

Net Cash+10.8%+7.1% Q1 2017

+15.9%+14.0% Q1 2017

Financial Review

Q1 18


76%

24%

Perm Temp

84%

16%

Perm Temp

59%

41%

Perm Temp

5

• Gross Profit growth in

permanent +13.9% to £142.1m

• Temporary +7.3% to £45.6m

• Perm:Temp ratio 76:24 broadly

in line with prior year







Strong brand growth with consistent mixBusiness balance reflects brands and geographic mix

Q1 18


35%

24%

24%

17%

25%25%25%25%

Accounting and Financial Services

Legal, Technology, HR, Secretarial,Healthcare

Engineering, Property & Construction,Procurement & Supply Chain

Marketing, Sales and Retail

Discipline diversification progress

Gross Profit

by Discipline

£m 2018 2017 Reported % Constant %

Accounting and Financial

Services65.6 63.3 +3.6% +5.3%

Engineering, Property &

Construction, Procurement

& Supply Chain

45.1 36.5 +23.6% +25.6%

Legal, Technology, HR,

Secretarial, Healthcare44.4 37.8 +17.4% +19.9%

Marketing, Sales and

Retail32.6 32.6 +0.1% +2.1%

Group Total 187.7 170.2 +10.3% +12.3%

Specialist disciplines continue to deliver record growth

6

Q1 18


1,532 1,631

5,497 5,680

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Q4 2017 Q1 2018

He

ad

co

un

t

Support Staff Fee Earners

• Increase in fee earners of 183 (+3.3%)

• Fee earner headcount responds to trading

conditions, +82 in EMEA, -28 in the UK

• Fee earner headcount added in our Large, High

Potential markets, as well as where we saw

strongest growth

• Increase in support staff of 99 (+6.5%)

• Temporary additions made to support our strategic

operational support programmes

7

+4%

A new record headcountRatio of fee earners to support staff maintained at a record 78:22

Q1 18


8

49

.5

51

.4

47

.8

43

.9

42

.8

45

.0

45

.0

45

.7

48

.1

52

.3

53

.5

56

.7

59

.9 68

.3

69

.2

70

.2 79

.2 87

.4

89

.1

93

.1 10

5.5 12

1.0

12

3.4

12

8.2

14

0.3

15

2.4

14

1.3

11

8.7

95

.0

83

.8

82

.3 90

.6 97

.9 11

1.7

11

2.8

11

9.9

12

7.3 1

47

.8

14

2.6

13

6.1

13

5.9

13

8.0

12

6.5

12

6.5

12

6.8

13

5.1

12

6.9

12

5.1

12

6.6

13

7.1

13

2.9

13

6.2

13

5.7

14

5.3

13

9.1

13

5.8

14

2.2 15

6.9

15

8.6

16

3.3

17

0.2

18

2.0

17

7.3

18

2.4

18

7.7

19

1.1

0

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6000

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Fee E

arn

ers

& D

irecto

rs

Gro

ss P

rofit

(£m

) as r

eport

ed

Record fee earners, record gross profitInvestment reflects confidence in growth markets

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2015 2016 20172014 2018

Q1 18 Constant currency

Regional Review

Steve Ingham, Chief Executive Officer

Q1 18


50%

18%

18%

14%

25%25%25%25%EMEA UK Asia Pacific Americas

16 countries delivered a record quarter

Gross Profit

by Geography

Q1 2018 2017 Reported % Constant %

EMEA 94.7 78.6 +20.4% +18.2%

UK 33.8 36.4 -7.1% -7.1%

Asia Pacific 32.9 30.8 +6.7% +13.8%

Americas 26.3 24.4 +8.4% +20.4%

Group Total 187.7 170.2 +10.3% +12.3%

23 countries achieved YoY growth of over 10%

10

• A record quarter for our Large, High Potential markets +21%

• Americas fastest growing region, record quarters in North America and Latin

America

Q1 18


France33%

S. Europe22%

Germany15%

Benelux15%

Other15%

• Michael Page (55% of EMEA) +19%, Page Personnel (45% of

EMEA) +18%

• France, second largest country in the Group +18%

• Germany +28%, Michael Page Interim +31%

• Southern Europe +15%, all countries achieved record quarters

despite challenging conditions in Catalonia

• Investment of 82 fee earners in response to continued favourable

trading conditions

11

50% of Group

Gross Profit

by Geography

EMEA saw strong market conditionsGross profit records in France, Germany and 6 other countries


Gross Profit 94.7 78.6 +20.4% +18.2%

Headcount 3,105 2,996 +3.6%

Q1 18


London35%

North24%

South23%

Midlands18%

• Brexit continued to weigh on market sentiment

• Timing of Easter impacted results for the quarter

• Page Personnel +2%

• Strong performances from Legal +25% and Technology +28%

18% of Group

Gross Profit

by Geography

United Kingdom remained challengingAlthough positive growth in Page Personnel

£m 2018 2017 Reported %

Gross Profit 33.8 36.4 -7.1%

Headcount 1,409 1,407 +0.1%

12

Q1 18


Greater China41%

Australasia27%

SE Asia & India20%

Japan12%

• Greater China, our third largest market and 7% of the Group,

strong growth +17%

• Japan +19%, continued focus on the domestic Nikkei market

• South-East Asia, strong performance +19% including

Singapore +19%

• Australia +6%, following fee earner investment and new office

in Canberra

18% of Group

Gross Profit

by Geography

Asia Pacific performed well6 countries achieved YoY growth of over 10%


Gross Profit 32.9 30.8 +6.7% +13.8%

Headcount 1,643 1,532 +7.2%

13

Q1 18


USA50%

Brazil13%

Mexico13%

Canada5%

Rest of Latam19%

• US growth +17%, driven by Property & Construction

• Strong growth in regional offices +24%

• Latam +26%, including another quarter of double-digit growth

in Brazil +12%

• Elsewhere, record quarters for all countries including Mexico

+26%

14

14% of Group

Gross Profit

by Geography

Americas was our fastest growing regionRecord quarter for the region


Gross Profit 26.3 24.4 +8.4% +20.4%

Headcount 1,154 1,094 +5.5%

Summary

Q1 18


Strong net cash position of c. £91m

Record Group headcount and fee earners

Continental Europe remains strong

Continue to invest in Large, High Potential markets

Gross Profit +12.3% in constant currency

Record quarter for the Group

16

A record Gross Profit performanceContinue to invest in Large, High Potential markets

Q1 18


17

Page Vision and

strategy

ValueBreadth of

management

Digital

transformation

Workplace trends

Our views on RPO

From Vision to

Value

Non operational

transformation

Investor Afternoon – 15 May 2018

Appendix

Q1 18


19

Delivering on our global diversification strategy

A growing international business

61%

39%

76%

24%

82%

18%

FY 2007 FY 2013 Q1 2018

Gross Profit

InternationalUK

Q1 18


20

70% 69%

87% 89%

30% 31%

13% 11%

EMEA UK Asia Pacific Americas

Temp Perm

84%

59%

16%

41%

Michael Page Page Personnel

Geography Brands

Significant variations in recruitment mix

Q1 18


1,174

1,657 1,657 1,466 1,444

1,708 2,075

2,763

3,837 3,654

2,515

3,273

3,797 3,624

3,810

4,278 4,484

4,711

5,497 5,680

-

1,000

2,000

3,000

4,000

5,000

6,000

1990-99 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Fe

e E

arn

er

He

ad

co

un

t

AMERICAS

ASIA

PACIFIC

EMEA

21

1985-1990 1990-19992000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Portugal

(2000)

Switzerland

(2001)

Belgium

(2002)

Sweden

(2002)

Poland S Africa

Ireland

UAE

Austria

Turkey

Luxembourg

Morocco

ThailandIndonesiaTaiwanIndia

Malaysia

New

Zealand

Japan

(2001)

China

(2003)

Australia

(1985)

USA (1998) Brazil (2000) Canada Mexico Chile Colombia Peru

INT

ER

NA

TIO

NA

L G

RO

WT

H

France

(1986)

Netherlands

(1987)

Germany

(1993)

Spain

(1997)

Italy

(1997)

Hong Kong

(1995)

Singapore

(1996)

2,429

1,316

981

954

Argentina

UKASIA

PACIFICEMEA AMERICAS

Notable fee earner and international growth

Q1 18

Q1 18


22

0

1000

2000

3000

4000

5000

6000

H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2

He

ad

co

un

t

Fee Earner Support Staff

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Fee earner investment and support staff

Q1 18


23

2016 2017 2018

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

EMEA +10.3% +13.6% +10.4% +12.4% +14.8% +13.2% +12.6% +19.3% +18.2%

UK +0.0% -2.3% -4.7% -6.7% -0.1% -4.5% -7.6% -2.8% -7.1%

Asia Pacific -2.0% -3.3% -4.7% +1.7% +3.9% +6.8% +13.9% +14.9% +13.8%

– Asia -1.5% -6.9% -7.9% -0.5% +3.6% +10.2% +21.9% +20.8% +17.8%

– Australasia -3.0% +6.6% +3.9% +8.1% +4.7% -1.5% -4.4% +0.7% +4.3%

Americas -0.6% -1.1% -2.0% +0.9% +15.2% +13.8% +18.4% +18.8% +20.4%

– North America +9.2% -1.9% -10.8% -8.4% +12.5% +14.6% +26.5% +18.7% +16.4%

– Latin America -9.8% -0.1% +9.6% +14.3% +19.2% +12.8% +9.1% +19.0% +25.7%

Group Total +3.6% +3.7% +1.3% +3.8% +9.1% +7.7% +8.8% +13.8% +12.3%

Year-on-Year Gross Profit Rates

Q1 18


24

Contacts

Jeremy Tatham – Group Financial Controller

Tel: +44 (0) 1932 264 143

Email: [email protected]

Web: http://www.page.com/investors

Date Event

15 May 2018 Investor Afternoon

11 July 2018 Q2 2018 Trading Update

8 August 2018 HY 2018 Results

10 October 2018 Q3 2018 Trading Update

Contacts and Calendar

Q1 18


25

This presentation contains certain statements that are neither reported financial results nor other historical information.

The information contained in this presentation is not audited, is for personal use and informational purposes only and is

not intended for distribution to, or use by, any person or entity in any jurisdiction in any country where such distribution or

use would be contrary to law or regulation, or which would subject any member of the PageGroup plc group of companies

to any registration requirement. No representation or warranty, express or implied, is or will be made in relation to the

accuracy, fairness or completeness of the information or opinions made in this presentation.

Certain statements included or incorporated by reference within this presentation may constitute “forward-looking

statements” that are based on current expectations or beliefs, as well as assumptions about future events. There are risk

factors that can cause actual results to differ materially from those expressed in or implied by such statements.

Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on

any forward-looking statement.

PageGroup plc disclaims any intention or obligation to revise or update any forward-looking statements that may be made

in this presentation, regardless of whether those statements are affected as a result of new information, future events or

otherwise. Nothing in this presentation should be construed as a profit forecast.

This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to

purchase any shares in PageGroup plc, nor shall it or any part of it or the fact of its distribution form the basis of, or be

relied on in connection with, any contract or commitment or investment decision relating thereto, nor does it constitute a

recommendation regarding the shares of PageGroup plc. Past performance cannot be relied upon as a guide to future

performance. Liability arising from anything in this presentation shall be governed by English Law. Nothing in this

presentation shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

Disclaimer

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Steve Ingham Chief Executive Officer - page.com/media/Files/M/Michael-Page/... · Headline Numbers Financial Review Regional Review Summary 3 Key financial highlights ... Record Group