PageGroup PLC · LSE:PAGE
PageGroup — Q1 2018 Earnings Presentation
25 slides from PageGroup's earnings presentation, Apr 11, 2018
Slide 1: Q1 2018 Trading Update
Steve Ingham Chief Executive Officer 11 April 2018 Kelvin Stagg Chief Financial Officer Q1 2018 Trading Update “Another quarter of double LSE: PAGE.L digit growth” Website: http://www.page.com/investors
Slide 2: Headline Numbers
Headline Numbers Kelvin Stagg, Chief Financial Officer
Slide 3: A record quarter for the Group
Headline Numbers Financial Review Regional Review Summary Q1 18 A record quarter for the Group Key financial highlights Gross Profit £187.7m Growth in +12.3% £170.2m Q1 2017 Constant +9.1% Q1 2017 Currency Reported +10.3% Rates +19.7% Q1 2017 Michael +10.8% Net Cash c. £91m Page +7.1% Q1 2017 c. £86
Slide 4: Financial Review
Financial Review
Slide 5: Strong brand growth with consistent mix
Headline Numbers Financial Review Regional Review Summary Q1 18 Strong brand growth with consistent mix Business balance reflects brands and geographic mix 16% 24% 41% 59% 76% 84% Perm Temp Perm Temp Perm Temp • Gross Profit growth in • Gross Profit growth in • Gross Profit growth in permanent +13.9
Slide 6: Discipline diversification progress
Headline Numbers Financial Review Regional Review Summary Q1 18 Discipline diversification progress Specialist disciplines continue to deliver record growth 17% 35% £m 2018 2017 Reported % Constant % Gross Profit by Discipline Accounting and Financial 24% 65.6 63.3 +3.6% +5.3% Services Engineering,
Slide 7: A new record headcount
Headline Numbers Financial Review Regional Review Summary Q1 18 A new record headcount Ratio of fee earners to support staff maintained at a record 78:22 • Increase in fee earners of 183 (+3.3%) +4% 8,000 • Fee earner headcount responds to trading 7,000 conditions, +82 in EMEA, -28 in the UK 6,000 •
Slide 8: Gross Profit (£m) as reported; Fee Earners & Directors
Gross Profit (£m) as reported 50 0 100 150 200 250 Q1 49.5 Q2 51.4 2002 Headline Numbers Q3 47.8 Q4 43.9 Q1 18 Q1 42.8 Q2 45.0 2003 Q3 45.0 Q4 45.7 Q1 48.1 2004 Q2 52.3 Q3 53.5 Q4 56.7 Q1 59.9 2005 Q2 68.3 Q3 69.2 Q4 70.2 Constant currency Q1 79.2 Q2 87.4 2006 Q3 89.1 Q4 93.1 Q1 105.5 Q2 121.0 2007
Slide 9: Regional Review
Regional Review Steve Ingham, Chief Executive Officer
Slide 10: 16 countries delivered a record quarter
Headline Numbers Financial Review Regional Review Summary Q1 18 16 countries delivered a record quarter 23 countries achieved YoY growth of over 10% • A record quarter for our Large, High Potential markets +21% • Americas fastest growing region, record quarters in North America and Latin 14% America
Slide 11: EMEA saw strong market conditions
Headline Numbers Financial Review Regional Review Summary Q1 18 EMEA saw strong market conditions Gross profit records in France, Germany and 6 other countries • Michael Page (55% of EMEA) +19%, Page Personnel (45% of EMEA) +18% Other 15% • France, second largest country in the Group +18% France • G
Slide 12: United Kingdom remained challenging
Headline Numbers Financial Review Regional Review Summary Q1 18 United Kingdom remained challenging Although positive growth in Page Personnel • Brexit continued to weigh on market sentiment Midlands • Timing of Easter impacted results for the quarter 18% • Page Personnel +2% London 35% • Strong per
Slide 13: Asia Pacific performed well
Headline Numbers Financial Review Regional Review Summary Q1 18 Asia Pacific performed well 6 countries achieved YoY growth of over 10% • Greater China, our third largest market and 7% of the Group, strong growth +17% Japan 12% • Japan +19%, continued focus on the domestic Nikkei market • South-East
Slide 14: Americas was our fastest growing region
Headline Numbers Financial Review Regional Review Summary Q1 18 Americas was our fastest growing region Record quarter for the region • US growth +17%, driven by Property & Construction Rest of • Strong growth in regional offices +24% Latam 19% • Latam +26%, including another quarter of double-digit
Slide 15: Summary
Summary
Slide 16: A record Gross Profit performance
Headline Numbers Financial Review Regional Review Summary Q1 18 A record Gross Profit performance Continue to invest in Large, High Potential markets Record quarter for the Group Gross Profit +12.3% in constant currency Continue to invest in Large, High Potential markets Continental Europe remains s
Slide 17: Investor Afternoon – May 2018
Headline Numbers Financial Review Regional Review Summary Q1 18 Investor Afternoon – 15 May 2018 Page Vision and strategy Breadth of Value management From Vision to Value Non operational Digital Our views on RPO transformation transformation Workplace trends 17
Slide 18: Appendix
Appendix
Slide 19: A growing international business
Headline Numbers Financial Review Regional Review Summary Q1 18 A growing international business Delivering on our global diversification strategy Gross Profit 24% 18% 39% 61% 76% 82% FY 2007 FY 2013 Q1 2018 UK International 19
Slide 20: Significant variations in recruitment mix
Headline Numbers Financial Review Regional Review Summary Q1 18 Significant variations in recruitment mix Geography Brands 13% 11% 16% 30% 31% 41% 87% 89% 84% 70% 69% 59% EMEA UK Asia Pacific Americas Michael Page Page Personnel Temp Perm 20
Slide 21: Notable fee earner and international growth
Headline Numbers Financial Review Regional Review Summary Q1 18 Notable fee earner and international growth ASIA 6,000 EMEA UK AMERICAS 5,680 PACIFIC 5,497 Fee Earner Headcount 5,000 4,711 4,484 4,278 4,000 3,837 3,797 3,810 3,654 3,624 3,273 3,000 2,763 2,515 2,075 2,429 2,000 1,657 1,657 1,708 1,4
Slide 22: Headcount: Fee earner investment and support staff
Headline Numbers Financial Review Regional Review Summary Q1 18 Fee earner investment and support staff 6000 5000 4000 Headcount 3000 2000 1000 0 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 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 23: Year-on-Year Gross Profit Rates
Headline Numbers Financial Review Regional Review Summary Q1 18 Year-on-Year Gross Profit Rates 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%
Slide 24: Contacts and Calendar
Headline Numbers Financial Review Regional Review Summary Q1 18 Contacts and Calendar Contacts Date Event Jeremy Tatham – Group Financial Controller 15 May 2018 Investor Afternoon Tel: +44 (0) 1932 264 143 11 July 2018 Q2 2018 Trading Update Email: investorrelations@michaelpage.com 8 August 2018 HY
Slide 25: Disclaimer
Headline Numbers Financial Review Regional Review Summary Q1 18 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 informational