Sthree Plc · LSE:STEM
Sthree — FY2013 Earnings Presentation
67 slides from Sthree's earnings presentation, February 2014
Slide 1: Full Year Results Presentation 2013
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR YEAR ENDED 1 DECEMBER 2013
Slide 2: Introduction & Overview
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 INTRODUCTION & OVERVIEW www.sthree.com | SThree plc 2
Slide 3: SThree Profiles
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 STHREE PROFILES GARY ELDEN – CHIEF EXECUTIVE OFFICER Gary Elden was appointed to the Board in July 2008, having been with the Group since 1990, when he joined Computer Futures. He has held a number of senior positions, in
Slide 4: Key Facts
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 KEY FACTS • Founded in 1986, floated in 2005 • Pure play specialist staffing – average perm salary £55k, contract pro rata £93k • 55 offices in 21 countries, 40 non UK, 69% of GP international • A balanced contract and pe
Slide 5: FY 2013: An Overview
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 FY 2013: AN OVERVIEW • A satisfactory performance, against an unstable macroeconomic backdrop, but with improving sentiment in Q4 / H2 in many geographies and sectors • Contract GP up 4%* year on year • Permanent GP down
Slide 6: Financial Results
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 FINANCIAL RESULTS www.sthree.com | SThree plc 6
Slide 7: FY 2013: Financial Highlights
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 FY 2013: FINANCIAL HIGHLIGHTS Excluding IT Job Board 2013 2012 Actual Growth CC Growth 52 weeks Revenue £618.4m £571.6m +8.2% +6.4% Perm Gross Profit £85.2m £97.8m -12.8% -14.4% Contract Gross Profit £107.6m £101.7m +5.8%
Slide 8: Historical Gross Profit & Gross Margin
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 HISTORICAL GROSS PROFIT & GROSS MARGIN Gross Profit (£m) Gross Margin (%) 250 40% 34.5% 34.9% 34.7% 35.1% 36.0% 35.6% 208.5 205.3 35% 33.2% 33.0% 192.8 30.8% 31.3% 31.2% 200 182.7 182.4 30% 159.3 154.3 40% 44% 46% 49% 51%
Slide 9: Historical Operating Profit & Conversion Ratio
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 HISTORICAL OPERATING PROFIT & CONVERSION RATIO Operating Profit Before Exceptional Items Conversion Ratio (£m) (Operating Profit Before Exceptional Items as a % of Gross Profit) £60.0 35.0% 56.8 52.3 30.3% 30.0% 28.2% 28.
Slide 10: Exceptional Items – Business Restructuring
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 EXCEPTIONAL ITEMS – BUSINESS RESTRUCTURING Restructuring Costs General IT Property Rationalisation Restructure Job Board Total £m £m £m UK 4 People Costs 3.9 - 3.9 Property Costs 3.7 - 3.7 Europe (incl 2 France) 3 Other C
Slide 11: Increased ETR Primarily Due to Tax Losses Not Recognised
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 INCREASED ‘ETR’ PRIMARILY DUE TO TAX LOSSES NOT RECOGNISED IN CERTAIN LOSS MAKING TERRITORIES 2013 2012 52 weeks 52 weeks £m £m Profit Before Tax Before Exceptional Items 20.8 25.2 Tax at standard rate (23.3% / 24.7%) 4.8
Slide 12: Balance Sheet
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 BALANCE SHEET 1 Dec 25 Nov 2013 2012 £m £m Goodwill & intangibles 12.0 14.3 •Reduction in capex plus £1.2m of goodwill & intangibles disposed of with IT Job Board Property, plant & equipment 4.0 5.9 •Capitalised tax losse
Slide 13: Cash Flow
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 CASH FLOW 2013 2012 52 weeks 52 weeks £m £m Operating profit before exceptional items 21.0 25.1 Depreciation and amortisation 5.8 6.8 Share awards charge & other non cash items 1.1 1.6 (Increase) in receivables (10.9) (5.
Slide 14: Earnings Per Share
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 EARNINGS PER SHARE 2013 2012 Change % Profit after tax before exceptional items £11.1m £16.8m -33.9% Exceptional items after tax (£3.7m) - Profit after tax and exceptional items £7.4m £16.8m -56.0% for basic EPS 121.1m 11
Slide 15: Euro & USD/GBP Exchange Rate
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 EURO & USD/GBP EXCHANGE RATE 53 Week Period Ended 1 December 2013 52 Week Period Ended 25 November 2012 YoY Exchange Rate Movement Average Closing Average Closing Average Closing EUR € 1.1805 1.2040 EUR € 1.2218 1.2355 EU
Slide 16: Operational Analysis
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 OPERATIONAL ANALYSIS www.sthree.com | SThree plc 16
Slide 17: Strategy - Update
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 STRATEGY - UPDATE • 2013 - Strong foundations laid for next phase of growth • Management structure strengthened • Sector Heads appointed • Regional CEOs appointed to high growth strategic geographies of Americas & APAC /
Slide 18: Strategy – Business Mix
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 STRATEGY – BUSINESS MIX • Clear focus on margin discipline & Life Time Contract Values • Margins monitored on daily basis with real time reporting of margins on new deals and extensions • Contract LTVs monitored on quarte
Slide 19: Strategic Priorities
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 STRATEGIC PRIORITIES SECTOR DIVERSIFICATION - PERMANENT / CONTRACT SECTOR DIVERSIFICATION HEADCOUNT GEOGRAPHICAL DIVERSIFICATION FY 2013 FY 2013 FY 2013 FY 2013 12% 15% 20% 232 31% 15% 14% 44% 216 1,132 56% 71% 73% 49% Pe
Slide 20: Headcount
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 HEADCOUNT Period End Total Heads 2,217 1,606 1,556 1,733 1,814 1,960 2,204 2,195 2,116 2,220 2,327 Period End 1,643 1,176 1,116 1,246 1,269 1,416 1,675 1,685 1,633 1,732 1,862 Sales Heads* 700 Int’l Sales 1,348 1,094 1,16
Slide 21: Consultant Headcount
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 CONSULTANT HEADCOUNT 586 604 556 587 786 597 614 700 656 719 504 444 Contract 442 Permanent 874 929 902 886 783 815 795 764 778 794 692 727 735 Nov 10 Feb 11 May 11 Aug 11 Nov 11 Feb 12 May 12 Aug 12 Nov 12 Feb 13 May 13
Slide 22: Permanent/Contract Analysis
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 PERMANENT/CONTRACT ANALYSIS Gross Profit Growth in Permanent/Contract GP FY 2013 £192.8m FY 2013 FY 2012 11% 7% 4% 44% 56% Perm Cont (14%) FY 2012 £199.5m Perm Cont Gross Margin FY 2013 FY 2012 49% 51% Group (Blended) 31.
Slide 23: Key Performance Indicators: Permanent
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 KEY PERFORMANCE INDICATORS: PERMANENT Permanent Placement Volumes Permanent Average Fee -2.0% £14,000 £12,715 £12,695 12,000 £12,255 £12,000 £11,383 £11,510 10,236 10,000 9,568 £9,834 -12.4% £10,000 £9,252 7,685 7,434 £8,
Slide 24: Key Performance Indicators: Contract
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 KEY PERFORMANCE INDICATORS: CONTRACT Contract Runners Gross Profit Per Day Rate £100 -5.9% 7,000 -5.9% +13.1% £90 £85 £87 £85 £84 6,000 5,662 5,745 5,791 £81 £78 £80 5,122 £71 5,000 4,719 4,692 £70 £65 4,359 4,157 £60 4,0
Slide 25: Contract Lifetime Value
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 CONTRACT LIFETIME VALUE Contract Lifetime Value differs from contract value as it takes into account the initial contract and all extensions and is measured once the contract, including all extensions, is concluded. INITI
Slide 26: Contract Runners – Comparison to Prior Years
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 CONTRACT RUNNERS – COMPARISON TO PRIOR YEARS Indexed Contract Runners – Historical Analysis (Annual Trend based on P12 Nov Year End Runners) 120% 115% 113% 110% 109% 108% 105% 105% 101% 100% 98% 95% 90% 85% 80% 75% 72% 70
Slide 27: Geographic Analysis by Location of Client
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 GEOGRAPHIC ANALYSIS BY LOCATION OF CLIENT Gross Profit Growth / (decline) by Region FY 2013 £192.8m FY 2013 FY 2012 9% UK&I 50% 11% 31% Benelux 32% France 23% Germany & Switzerland 25% Americas 6% 1% 18% ROW 6% (4%) (7%)
Slide 28: Sector Analysis by Candidate Skillset
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 SECTOR ANALYSIS BY CANDIDATE SKILLSET Gross Profit FY 2013 £192.8m FY 2012 £199.5m 3% ICT 4% ICT 15% 12% Banking & Banking & Finance Finance 43% Energy 12% Energy 12% 46% Engineering Engineering Life Sciences 10% 12% Life
Slide 29: Business Breakdown by Client Industry Sector
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 BUSINESS BREAKDOWN BY CLIENT INDUSTRY SECTOR FY 2013 FY 2012 Financial Other Other Services Financial 4% ICT 7% ICT 6% Services 18% 16% 7% Natural Resources 13% Natural Investment Resources Banking Investment Retail & Ban
Slide 30: Business Mix – Geographical & Sectoral
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 BUSINESS MIX – GEOGRAPHICAL & SECTORAL 4% 20% 31% 40% 2013 2008 56% 49% UK&I Europe ROW UK&I Europe ROW 3% 7% 2% 15% 7% 0% 43% 12% 2013 12% 2008 12% 72% 15% ICT Banking & Finance ICT Banking & Finance Energy Engineering E
Slide 31: UK&I Trading Metrics
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 UK&I TRADING METRICS YoY LFL 2013 2012 Growth Perm GP (£'000) 17,794 23,204 (24%) 31% of Cont GP (£'000) 42,124 43,604 (4%) Group Total Gross Profit (£'000) 59,918 66,808 (11%) GP Countries (#) 2 2 0 Offices (#) 16 23 -7
Slide 32: UK&I Trading Metrics
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 UK&I TRADING METRICS Sector Split FY 2013 Runners at Period End GPDR 7% 1% +4.1% -5.8% 80 73 16% FY 2013 2,552 69 70 FY 2012 2,452 60 53% 50 8% 0 500 1,000 1,500 2,000 2,500 3,000 40 30 15% 20 Perm / Contract Split FY 201
Slide 33: Americas Trading Metrics
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 AMERICAS TRADING METRICS YoY LFL 2013 2012 Growth Perm GP (£'000) 10,896 9,490 14% 11% of Cont GP (£'000) 9,651 5,912 61% Group Total Gross Profit (£'000) 20,547 15,402 32% GP Countries (#) 3 2 1 Offices (#) 9 8 1 # YoY G
Slide 34: Americas Trading Metrics
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 AMERICAS TRADING METRICS Sector Split FY 2013 Runners at Period End GPDR 1% +91.5% -13.5% 140 FY 2013 544 36% 120 114 37% 100 FY 2012 284 100 0 100 200 300 400 500 600 80 60 0% 40 26% Perm / Contract Split FY 2013 20 ICT
Slide 35: Summary & 2014 Outlook
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 SUMMARY & 2014 OUTLOOK • Improving sentiment evident in some markets but overall picture remains mixed • Demand in newer sectors such as Energy and Life Sciences remains resilient • Contract headcount up by 28% since the
Slide 36: Questions
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 QUESTIONS Thank you for listening, please feel free to ask any questions www.sthree.com | SThree plc 36
Slide 37: Supplementary Material
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 SUPPLEMENTARY MATERIAL www.sthree.com | SThree plc 37
Slide 38: SThree: Financial Highlights (As Reported)
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 STHREE: FINANCIAL HIGHLIGHTS (AS REPORTED) Including IT Job Board 2013 2012 Actual Growth CC Growth 53 weeks Revenue £634.3m £577.5m +9.8% +8.0% Perm Gross Profit £90.0m £103.6m -13.1% -14.6% Contract Gross Profit £109.8m
Slide 39: SThree: Financial Highlights Reconciliation
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 STHREE: FINANCIAL HIGHLIGHTS RECONCILIATION 53 weeks 53 weeks 52 weeks Incl IT Job Board Incl IT Job Board Excl IT Job Board Incl exceptionals Excl exceptionals Excl exceptionals Revenue £634.3m £634.3m £618.4m Gross Prof
Slide 40: UK&I Trading Metrics
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 UK&I TRADING METRICS YoY LFL 2013 2012 Growth Perm GP (£'000) 17,794 23,204 (24%) 31% of Cont GP (£'000) 42,124 43,604 (4%) Group Total Gross Profit (£'000) 59,918 66,808 (11%) GP Countries (#) 2 2 0 Offices (#) 16 23 -7
Slide 41: UK&I Trading Metrics
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 UK&I TRADING METRICS Sector Split FY 2013 Runners at Period End GPDR 7% 1% +4.1% -5.8% 80 73 16% FY 2013 2,552 69 70 FY 2012 2,452 60 53% 50 8% 0 500 1,000 1,500 2,000 2,500 3,000 40 30 15% 20 Perm / Contract Split FY 201
Slide 42: Benelux Trading Metrics
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 BENELUX TRADING METRICS YoY LFL 2013 2012 Growth Perm GP (£'000) 11,757 14,457 (21%) 18% of Cont GP (£'000) 22,265 20,953 3% Group Total Gross Profit (£'000) 34,022 35,410 (7%) GP Countries (#) 3 3 0 Offices (#) 7 9 -2 #
Slide 43: Benelux Trading Metrics
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 BENELUX TRADING METRICS Sector Split FY 2013 Runners at Period End GPDR 11% +11.7% -5.9% 7% 100 FY 2013 1,121 89 86 90 80 11% FY 2012 1,004 70 51% 60 0 200 400 600 800 1,000 1,200 50 10% 40 30 10% Perm / Contract Split FY
Slide 44: Germany & Switzerland Trading Metrics
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 GERMANY & SWITZERLAND TRADING METRICS YoY LFL 2013 2012 Growth Perm GP (£'000) 25,314 26,633 (8%) 25% of Cont GP (£'000) 22,457 19,729 10% Group Total Gross Profit (£'000) 47,771 46,362 (0%) GP Countries (#) 2 2 0 Offices
Slide 45: Germany & Switzerland Trading Metrics
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 GERMANY & SWITZERLAND TRADING METRICS Sector Split FY 2013 Runners at Period End GPDR 4% +16.1% -5.0% 120 FY 2013 975 24% 103 102 100 FY 2012 840 80 52% 0 200 400 600 800 1,000 1,200 60 40 15% 1% 4% Perm / Contract Split
Slide 46: France Trading Metrics
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 FRANCE TRADING METRICS YoY LFL 2013 2012 Growth Perm GP (£'000) 4,632 7,467 (40%) 6% of Cont GP (£'000) 6,483 7,551 (17%) Group 11,115 15,018 (28%) Total Gross Profit (£'000) GP Countries (#) 1 1 0 Offices (#) 1 4 -3 # Yo
Slide 47: France Trading Metrics
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 FRANCE TRADING METRICS Sector Split FY 2013 Runners at Period End GPDR 12% -4.5% -13.5% 90 84 7% FY 2013 357 80 76 3% 70 FY 2012 374 60 0 100 200 300 400 50 58% 40 20% 30 20 Perm / Contract Split FY 2013 10 ICT Banking En
Slide 48: Americas Trading Metrics
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 AMERICAS TRADING METRICS YoY LFL 2013 2012 Growth Perm GP (£'000) 10,896 9,490 14% 11% of Cont GP (£'000) 9,651 5,912 61% Group Total Gross Profit (£'000) 20,547 15,402 32% GP Countries (#) 3 2 1 Offices (#) 9 8 1 # YoY G
Slide 49: Americas Trading Metrics
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 AMERICAS TRADING METRICS Sector Split FY 2013 Runners at Period End GPDR 1% +91.5% -13.5% 140 FY 2013 544 36% 120 114 37% 100 FY 2012 284 100 0 100 200 300 400 500 600 80 60 0% 40 26% Perm / Contract Split FY 2013 20 ICT
Slide 50: ROW Trading Metrics
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 ROW TRADING METRICS YoY LFL 2013 2012 Growth Perm GP (£'000) 14,847 16,503 (10%) 9% of Cont GP (£'000) 4,580 3,962 17% Group Total Gross Profit (£'000) 19,427 20,465 (4%) GP Countries (#) 10 7 3 Offices (#) 12 10 2 # YoY
Slide 51: ROW Trading Metrics
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 ROW TRADING METRICS Sector Split FY 2013 Runners at Period End GPDR 6% 14% +44.0% -19.5% 7% 120 111 FY 2013 242 100 86 FY 2012 168 80 29% 0 50 100 150 200 250 300 60 44% 40 Perm / Contract Split FY 2013 20 ICT Banking Ene
Slide 52: SThree: The Multi Brand Model
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 STHREE: THE MULTI BRAND MODEL ICT Banking & Finance Energy & Engineering Life Sciences Public Sector Other (Accountancy, Insurance, Corporate Governance) Primary SThree brand for this sector Brand covers niches within thi
Slide 53: Offices & Countries
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 OFFICES & COUNTRIES 70 25 60 64 60 20 55 50 52 Number of Countries Number of Offices 46 15 40 30 10 20 5 10 0 0 2009 2010 2011 2012 2013 Number of OfficesYear Number of Countries Note 1: Offices closed in 2013 include Edi
Slide 54: 15 UK Offices
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 15 UK OFFICES London Birmingham - SThree HQ - Computer Futures / - SThree Group Finance / HR Progressive - SThree Group IS - Huxley / Real - Computer Futures - Real Leeds - Progressive - Real / Progressive London (City) M
Slide 55: 19 European Offices in 7 Countries
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 Existing Offices Switzerland France Zurich Paris - Huxley/Real - Computer Futures / Progressive / Huxley / Real Belgium Antwerp Ireland - Computer Futures / Progressive / Dublin JP Gray - Computer Futures / Real Brussels
Slide 56: 21 ROW Offices in 13 Countries
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 GCC Dubai - Progressive / Huxley Doha - Progressive / Huxley Russia Moscow - Progressive USA Boston - Huxley Chicago 21 ROW Offices - Huxley / Real in 13 Countries Houston - Progressive New Offices Opened Australia New Yo
Slide 57: PBT Growth Post Dot Com Crash 2003–2008
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 PBT GROWTH POST DOT COM CRASH 2003 – 2008 60 56.0 50.3 50 56% CAGR 2003 to 2008 40.3 40 34% CAGR PBT (£m) 2004 to 2008 29.5 30 20 17.3 10 6.1 0 2003 2004 2005 2006 2007 2008 Year Notes: Includes IT Job Board www.sthree.co
Slide 58: Candidate Salary Positioning
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 CANDIDATE SALARY POSITIONING Permanent Salary Analysis FY 2013 FY 2012 100k + 100k + 0k - 30k 5% 0k - 30k 5% 70k - 100k 70k - 100k 10% 16% 11% 11% 30k - 40k 27% 30k - 40k 50k - 70k 50k - 70k 21% 23% 26% 40k - 50k 40k - 50
Slide 59: Cost Base Analysis
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 COST BASE ANALYSIS COST BASE PAYROLL COSTS Central Other Support 10% Costs IT & 20% Professional 9% Advertising 1% Property 9% Payroll Sales 71% Related Costs 80% The Group has a flexible cost base Note 1: Based on costs
Slide 60: Tracker Shares (Minority Interest) Arrangements
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 TRACKER SHARES (MINORITY INTEREST) ARRANGEMENTS Background • Circa 100 participants, across all geographies and sectors • An opportunity to buy into a new business at an early stage, to become a part owner • A key retenti
Slide 61: Tracker Shares (Minority Interest) Arrangements (continued)
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 TRACKER SHARES (MINORITY INTEREST) ARRANGEMENTS (continued) Accounting • Accounting governed by IFRS 2 “Share-Based Payments”, with no income statement charge as the payment made by participants equals the fair value of t
Slide 62: Financial Calendar
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 FINANCIAL CALENDAR 3 February 2014 Annual results for the 53 week period ended 1 December 2013 14 March 2014 Q1 Interim Management Statement 24 April 2014 Annual General Meeting 13 June 2014 Trading update for the six mon
Slide 63: Two Types of Specialist Staffing Market
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 TWO TYPES OF SPECIALIST STAFFING MARKET – DEFINED BY CANDIDATE MOBILITY BANKING & FINANCE LIFE SCIENCES ICT BANKING ENERGY LIFE SCIENCES ENGINEERING ENERGY LOCAL GLOBAL Global candidates provide an ability to take larger
Slide 64: Profile of International Growth
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 PROFILE OF INTERNATIONAL GROWTH THE GROUP’S EXPANSION HAS FOUR MAJOR DIMENSIONS: The majority of planned growth comes from additional heads in existing locations, in both existing and new sectors. Increase headcount in an
Slide 65: Sector Diversification Leads to Global Opportunities
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 SECTOR DIVERSIFICATION LEADS TO GLOBAL OPPORTUNITIES SINGAPORE The Glasgow/Singapore Example ICT SCOTLAND SCOTLAND SE ASIA SE ASIA ICT ENERGY ENERGY ENERGY SINGAPORE Based Glasgow Based Glasgow Based Singapore Virtual Off
Slide 66: Apollo Integrator
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 APOLLO INTEGRATOR Our Business Intelligence Platform Integrating our systems with social networking and corporate data sources www.sthree.com | SThree plc 66
Slide 67: Even when markets are mature, churn drives growth
FULL YEAR RESULTS PRESENTATION 2013 RESULTS FOR THE YEAR ENDED 1 DECEMBER 2013 VACANCY VACANCY FILLED FILLED NEW JOB DONOR DONOR BUSINESS 3 HAS VACANCY 3 1 BUSINESS 1 HAS VACANCY VACANCY FILLED VACANCY FILLED 2 DONOR BUSINESS 2 HAS VACANCY Even when markets are mature, churn drives growth www.sthree