PageGroup PLC · LSE:PAGE

PageGroup — Michael Page International — H1 2005 Earnings Presentation

28 slides from PageGroup's earnings presentation, Aug 15, 2005

  1. Slide 1: 2005 Interim Results

    1 15 August 2005 2005 Interim Results 2005 INTERIM RESULTS 15 August 2005 Michael Page International is a world leading recruitment consultancy 112 offices in 16 countries worldwide | www.michaelpage.co.uk

  2. Slide 2: Overview

    2 15 August 2005 2005 Interim Results Overview • Strong results well ahead of expectations • UK, Asia Pacific and Americas continue to grow strongly • Significant improvement in Continental Europe • Operating profits increase by 79% from 28% increase in gross profits • Low tax charge due to utilisation

  3. Slide 3: Agenda

    3 15 August 2005 2005 Interim Results Agenda • Financial Results and segmental analysis • Geographical Review • Current trading and strategy Michael Page International is a world leading recruitment consultancy 112 offices in 16 countries worldwide | www.michaelpage.co.uk

  4. Slide 4: Profit and loss

    4 15 August 2005 2005 Interim Results Profit and 2005 £m Change 2004 £m loss Turnover 250.4 22.4% 204.6 Gross profit 128.2 27.6% 100.4 Pre IFRS operating profit 31.5 78.6% 17.6 IFRS impact (0.9) (0.5) Operating profit 30.6 78.8% 17.1 Net interest (0.1) 0.1 Profit before tax 30.5 77.1% 17.2 Taxation (7.9)

  5. Slide 5: IFRS

    5 15 August 2005 2005 Interim Results IFRS • First reported results under IFRS • Key areas are share based payments (options), goodwill and proposed dividends • Share option charge in first half £0.9m (2004: £0.5m) • Increase due to new option grants and social charges Michael Page International is a

  6. Slide 6: Taxation

    6 15 August 2005 2005 Interim Results Taxation 2005 £m 2004 £m Profit before tax 30.5 17.2 Taxation on profits Current and deferred tax (7.9) (6.3) Exceptional tax credit - 9.0 Total income tax expense/credit (7.9) 2.7 Effective tax rate on profits 26.0% 36.6% Expected effective rate lower in 2005 due

  7. Slide 7: Earnings per share and dividends

    7 15 August 2005 2005 Interim Results Earnings per 2005 pence 2004 pence share and Earnings per share dividends Basic 6.6 17.9% 5.6 Diluted 6.5 16.1% 5.6 Adjusted before exceptional tax items 6.6 112.9% 3.1 Dividend Interim - per share 1.5 20.0% 1.25 Michael Page International is a world leading rec

  8. Slide 8: Share repurchases

    8 15 August 2005 2005 Interim Results Share • Repurchased 12.8m shares in first half of 2005 • All held in treasury and do not receive dividends repurchases and not counted for EPS • Total cost of repurchases £24.9m • Average price 193.3p Michael Page International is a world leading recruitment cons

  9. Slide 9: Cash flow

    9 15 August 2005 2005 Interim Results Cash flow 2005 £m 2004 £m Operating profit 30.6 17.1 Depreciation/amortisation/share scheme charges 3.9 3.7 Increase in receivables (17.1) (11.4) Increase in payables 3.0 2.8 Decrease in provisions (0.3) (4.3) Net cash inflow from operating activities 20.1 8.0 Net

  10. Slide 10: Balance sheet

    10 15 August 2005 2005 Interim Results Balance 2005 30 June 2004 31 Dec sheet Goodwill £m 1.5 £m 1.5 Tangible assets 20.8 20.9 22.3 22.5 Trade and other receivables 104.2 87.9 Trade and other payables (64.6) (62.4) 39.6 25.5 Current and deferred taxes (5.1) 1.5 Net (debt)/cash (6.1) 12.2 Provisions

  11. Slide 11: Discipline analysis

    11 15 August 2005 2005 Interim Results Discipline 2005 £m % 2004 £m % analysis Turnover Finance & Accounting 16.1% 160.6 64% 138.2 68% Marketing, Sales, Retail 16.3% 40.9 16% 35.2 17% Other 57.2% 48.9 20% 31.1 15% 22.4% 250.4 204.6 Gross profit Finance & Accounting 23.1% 76.2 59% 61.9 62% Marketing,

  12. Slide 12: Perm/Temp analysis

    12 15 August 2005 2005 Interim Results Perm/Temp Growth 2005 £m % 2004 £m % analysis Turnover Permanent 30.2% 98.7 39% 75.8 37% Temporary 17.9% 151.7 61% 128.7 63% 22.4% 250.4 204.6 Gross profit Permanent 31.2% 93.5 73% 71.3 71% Temporary 18.9% 34.7 27% 29.2 29% 27.6% 128.2 100.4 Gross margin Group 5

  13. Slide 13: Agenda

    13 15 August 2005 2005 Interim Results Agenda • Financial results and segmental analysis • Geographical review • Current trading and strategy Michael Page International is a world leading recruitment consultancy 112 offices in 16 countries worldwide | www.michaelpage.co.uk

  14. Slide 14: Geographical analysis of gross profit

    14 15 August 2005 2005 Interim Results Geographical Growth 2005 £m % 2004 £m % analysis of United Kingdom 18.5% 62.9 49% 53.1 53% gross profit Continental Europe 37.2% 40.7 32% 29.7 30% Asia Pacific 31.3% 18.8 15% 14.3 14% Americas 71.8% 5.7 4% 3.3 3% 27.6% 128.2 100% 100.4 100% Michael Page Internati

  15. Slide 15: United Kingdom

    15 15 August 2005 2005 Interim Results United 2005 H1 2004 H1 YOY change Kingdom Turnover £m 127.9 £m 11.5 % 14.7% Gross profit 62.9 53.1 18.5% Operating profit 15.5 10.9 42.3% Operating margin 24.6% 20.5% Headcount at period end 1,286 1,206 Michael Page International is a world leading recruitment co

  16. Slide 16: United Kingdom

    16 15 August 2005 2005 Interim Results United • Finance and accounting gross profit grew 11% - Stronger growth in industry and commerce than in City Kingdom • Marketing, Sales and Retail grew by 19% - Weakest area is Retail but less than 4% of UK gross profit • Other disciplines grew by 50% - Rapid gr

  17. Slide 17: Continental Europe

    17 15 August 2005 2005 Interim Results Continental 2005 H1 2004 H1 YOY change Europe Turnover £m 77.2 £m 59.8 % 29.1% Gross profit 40.7 29.7 37.2% Operating profit 7.8 1.3 486.2% Operating margin 19.1% 4.5% Headcount at period end 947 801 Michael Page International is a world leading recruitment consu

  18. Slide 18: Continental Europe

    18 15 August 2005 2005 Interim Results Continental • France - Gross profit 14% higher and represents approx. 50% of the Europe region - Increase largely perm rather than temp - Growth rates strengthened during first half - Spare capacity still exists • Very strong growth in Switzerland, Germany, Holla

  19. Slide 19: Asia Pacific

    19 15 August 2005 2005 Interim Results Asia Pacific 2005 H1 2004 H1 YOY change £m £m % Turnover 37.3 27.9 33.5% Gross profit 18.8 14.3 31.3% Operating profit 6.6 4.7 38.9% Operating margin 35.0% 33.1% Headcount at period end 351 299 Michael Page International is a world leading recruitment consultancy

  20. Slide 20: Asia Pacific

    20 15 August 2005 2005 Interim Results Asia Pacific • Australian gross profit up by 25.8% driven by continuing strong demand from manufacturing and mining • Opened Chatswood, North Sydney, office during first half • Strong growth from Hong Kong and Singapore • Shanghai office growing and profitable • Toky

  21. Slide 21: Americas

    21 15 August 2005 2005 Interim Results Americas 2005 H1 2004 H1 YOY change £m £m % Turnover 8.0 5.3 50.1% Gross profit 5.7 3.3 71.8% Operating profit 0.7 0.2 350.9% Operating margin 12.9% 4.9% Headcount at period end 169 123 Michael Page International is a world leading recruitment consultancy 112 offi

  22. Slide 22: Americas

    22 15 August 2005 2005 Interim Results Americas • USA continue to add headcount in existing five offices • Opening Toronto office in Q3 and another on Eastern Seaboard in Q4 • Still only Finance and Accounting • Brazil another very strong performance • Sales & Marketing progressing well • Increased siz

  23. Slide 23: Agenda

    23 15 August 2005 2005 Interim Results Agenda • Financial results and segmental analysis • Geographical review • Current trading and strategy Michael Page International is a world leading recruitment consultancy 112 offices in 16 countries worldwide | www.michaelpage.co.uk

  24. Slide 24: Global Job Count

    24 15 August 2005 2005 Interim Results Global Job Count www.michaelpage.co.uk Michael Page International is a world leading recruitment consultancy 112 offices in 16 countries worldwide | www.michaelpage.co.uk

  25. Slide 25: Group Quarterly Gross Profit Trend

    25 15 August 2005 2005 Interim Results Group Quarterly Gross Profit Trend Q1 2001 to Q2 2005 Michael Page International is a world leading recruitment consultancy 112 offices in 16 countries worldwide | www.michaelpage.co.uk

  26. Slide 26: Strategy

    26 15 August 2005 2005 Interim Results Strategy • Remains unchanged • Organically grow existing offices • Roll out existing disciplines • Open new offices • Enter new geographic markets • Continue to invest in people and systems Michael Page International is a world leading recruitment consultancy 112

  27. Slide 27: Current Trading

    27 15 August 2005 2005 Interim Results Current • Good activity levels in UK, Asia Pacific and the Americas • Improved conditions continuing in Continental Europe Trading but still tough • Growth in France strengthened during the first half • Investing in a large number of our businesses for future gro

  28. Slide 28: 2005 Interim Results

    28 15 August 2005 2005 Interim Results Michael Page International is a world leading recruitment consultancy 112 offices in 16 countries worldwide | www.michaelpage.co.uk

Michael Page International — H1 2005 Earnings Presentation on 6ix