PageGroup PLC · LSE:PAGE
PageGroup — FY2020 Earnings Presentation
29 slides from PageGroup's earnings presentation, Mar 3, 2021
Slide 1: Full Year Results 2020
Steve Ingham Chief Executive Officer 3 March 2021 Kelvin Stagg Chief Financial Officer Full Year Results 2020 LSE: PAGE.L Website: https://www.page.com/investors
Slide 2: Headline Numbers
Headline Numbers Kelvin Stagg, Chief Financial Officer
Slide 3: FY Overview
Headline Numbers Financial Review Strategic Progress Summary and Outlook FY Overview Group operating profit of £17.0m, EPS of -1.8p Gross Profit £610.2m Operating £17.0m £855.5m FY 2019 Profit £146.7m FY 2019 Constant Currency -28.1% Conversion 2.8% Growth +5.0% FY 2019 Rate 17.1% FY 2019 Effective
Slide 4: Financial Review
Financial Review
Slide 5: Fee Earners and Gross Profit: Protecting and investing in our platform
Headline Numbers Financial Review Strategic Progress Summary and Outlook Protecting and investing in our platform Fee earner headcount stabilising 6000 250 200 4500 Gross Profit (£m) as reported 150 Fee Earners 3000 100 1500 50 0 0 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4
Slide 6: Group Conversion Rate of 2.8%
Headline Numbers Financial Review Strategic Progress Summary and Outlook Group Conversion Rate of 2.8% COVID-19 impacted profitability in all of our regions FY 2020 FY 2019 GP Growth Operating Conversion Operating Conversion £m Gross Profit Gross Profit Rate (CC %) Profit Rate* Profit Rate* Group 61
Slide 7: Increase in Effective Tax Rate
Headline Numbers Financial Review Strategic Progress Summary and Outlook Increase in Effective Tax Rate £m 2020 2019 Reported % Profit Before Tax 15.5 144.2 -89.2% Tax Charge 21.3 40.8 -47.8% Overseas Tax 61.7% Losses 22.3% Disallowable and other 33.9% permanent differences UK Tax 19.0% Effective Ta
Slide 8: A strong and robust balance sheet
Headline Numbers Financial Review Strategic Progress Summary and Outlook A strong and robust balance sheet Net cash of c. £166m £m 2020 2019 Intangible assets 41.8 39.1 Tangible assets 26.4 31.9 Right-of-use assets 95.4 120.2 Trade and other receivables 265.6 380.6 Trade, other payables, current and
Slide 9: Strong net cash position of £166m
Headline Numbers Financial Review Strategic Progress Summary and Outlook Strong net cash position of £166m Increase mainly due to unwind of working capital 280 31.6 240 84.6 21.7 0.4 14.4 200 39.2 5.8 160 £m 84.3 120 166.0 80 97.8 40 Dec 19 EBITDA Working Tax and net Net capex Share options EBT shar
Slide 10: Improvement in conditions through 2020
Headline Numbers Financial Review Strategic Progress Summary and Outlook Improvement in conditions through 2020 Decision to repay UK Furlough 10
Slide 11: Strategic Progress
Strategic Progress Steve Ingham, Chief Executive Officer
Slide 12: Investments – Customer Connect
Headline Numbers Financial Review Strategic Progress Summary and Outlook Investments – Customer Connect One integrated platform Revenue Attribution Single Global Web Platform Better visibility Better alignment Better customer experience of activity delivered enabling consultants to by managing engag
Slide 13: Investments – Page Insights
Headline Numbers Financial Review Strategic Progress Summary and Outlook Investments – Page Insights Unique business intelligence tool providing our customers invaluable insights and supporting our data-driven decisions and targeting Combines internal and external data sources • Global data from hun
Slide 14: Experienced hires
Headline Numbers Financial Review Strategic Progress Summary and Outlook Experienced hires Approaching 400 experienced hires added during 2020 Experienced in recruitment, average of 4 years Shorter timeline to full productivity Adding value to our existing fee earners Focused in our strategic areas
Slide 15: Strengthening the Executive Board
Headline Numbers Financial Review Strategic Progress Summary and Outlook Strengthening the Executive Board New Appointments New Roles Eamon Collins – Chief Customer Officer (CCO) Patrick Hollard – Regional Managing Director, Latin America, Middle East and Africa 14 years 25 Years Isabelle Bastide –
Slide 16: Sustainability
Headline Numbers Financial Review Strategic Progress Summary and Outlook Sustainability Integrating in to our business • Environment – 26% reduction in reported CO2 emissions during 2020, all of which have been offset. • Social – integrating the UN Sustainable Development Goals into our business. •
Slide 17: Cultural Framework
Headline Numbers Financial Review Strategic Progress Summary and Outlook Cultural Framework Continued work on our culture, purpose and values 17
Slide 18: Summary and Outlook
Summary and Outlook
Slide 19: Summary
Headline Numbers Financial Review Strategic Progress Summary and Outlook Summary 2020 impacted significantly by COVID-19 Gross Profit in constant currency -28.1% Operating Profit of £17.0m, Conversion rate of 2.8% Fee earners reduced by 882, -14.6% Investment in 400 experienced fee earners, Customer
Slide 20: Outlook
Headline Numbers Financial Review Strategic Progress Summary and Outlook Outlook High degree of global macro-economic uncertainty Rolling lockdowns across the Group Brexit deal has provided a degree of clarity Continue to maintain the platform and investing carefully in headcount Continue the roll o
Slide 21: Appendix
Appendix
Slide 22: Our business model
Headline Numbers Financial Review Strategic Progress Summary and Outlook Our business model 22
Slide 23: A growing international business
Headline Numbers Financial Review Strategic Progress Summary and Outlook A growing international business Delivering on our global diversification strategy Gross Profit FY 2007 FY 2013 FY 2020 UK International 23
Slide 24: Significant variations in recruitment mix
Headline Numbers Financial Review Strategic Progress Summary and Outlook Significant variations in recruitment mix Geography Brands FY 2020 FY 2020 16% 16% 19% 34% 37% 50% 84% 84% 81% 66% 63% 50% EMEA Asia Pacific Americas UK Michael Page Page Personnel Temp Perm 24
Slide 25: Long term fee earner and international growth
Headline Numbers Financial Review Strategic Progress Summary and Outlook Long term fee earner and international growth ASIA EMEA AMERICAS UK PACIFIC 2,321 1,089 922 813 1985-1990 1990-1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 France
Slide 26: Fee earner investment and support staff
Headline Numbers Financial Review Strategic Progress Summary and Outlook Fee earner investment and support staff 26
Slide 27: Year-on-Year Gross Profit Rates
Headline Numbers Financial Review Strategic Progress Summary and Outlook Year-on-Year Gross Profit Rates 2018 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EMEA +18.2% +18.6% +20.9% +13.9% +11.4% +9.0% +5.6% +2.3% -11.1% -42.9% -24.5% -18.6% Asia Pacific +13.8% +18.4% +27.7% +22.0% +14.9% +4.7% -8.1
Slide 28: Contacts and Calendar
Headline Numbers Financial Review Strategic Progress Summary and Outlook Contacts and Calendar Contacts Date Event Jeremy Tatham – Group Financial Controller 14 April 2021 Q1 2021 Trading Update Tel: +44 (0) 1932 264 143 Email: investorrelations@michaelpage.com Web: https://www.page.com/investors 28
Slide 29: Disclaimer
Headline Numbers Financial Review Strategic Progress Summary and Outlook Disclaimer 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 infor