PageGroup PLC · LSE:PAGE

PageGroup — Q3 2016 Earnings Presentation

20 slides from PageGroup's earnings presentation, Nov 7, 2016

  1. Slide 1: Q3 2016 Trading Update

    19/6-20965 PageGroup Q3 2016 Trading Update

  2. Slide 2: Agenda

    Agenda Financial Review Regional Review Summary and Outlook

  3. Slide 3: Financial Review

    Financial Review

  4. Slide 4: Trading Performance – Year-on-Year Gross Profit

    Trading Performance – Year-on-Year Gross Profit Reported (£m) Constant 2016 2015 % % Q3 2016 vs. Q3 2015 158.6 139.1 +14.1% +1.3% • Q3 Gross Profit +1.3% vs. Q3 2015 in constant currency • In reported rates Q3 Gross Profit +14.1%, a record for the Group at £158.6m • In constant currency, Q3 Gross Pr

  5. Slide 5: Permanent vs Temporary – Year-on-Year Gross Profit

    Permanent vs Temporary – Year-on-Year Gross Profit Reported (£m) Constant Q3 2016 2015 % % Permanent 119.5 105.1 +13.8% +1.0% Temporary 39.1 34.0 +14.9% +2.0% Ratio (Perm : Temp) 75:25 76:24 • Perm : Temp ratio down slightly to 75:25 • Excluding the UK, permanent recruitment grew 3% and temporary gr

  6. Slide 6: Discipline Overview – Year-on-Year Gross Profit

    Discipline Overview – Year-on-Year Gross Profit Reported (£m) Constant % of Q3 2016 2015 % % Group Finance & Accounting 39% 61.3 55.6 +10.4% -1.3% Legal, Technology, HR, Secretarial 22% 35.3 30.6 +15.4% +1.3% and Healthcare Engineering, Property & Construction, Procurement & 20% 32.2 25.8 +24.5% +10

  7. Slide 7: Headcount

    Headcount Q3 2016 Q2 2016 Movement % Fee earners 4,661 4,529 132 +2.9% Support staff 1,391 1,390 1 +0.1% Total headcount 6,052 5,919 133 +2.2% Ratio 77:23 77:23 • Fee earner headcount increased in our large, high potential markets as well as where we saw opportunities for growth • Support staff tota

  8. Slide 8: Headcount and Reported Gross Profit

    Headcount and Reported Gross Profit Total headcount increased 2.2% vs. Q2 2016 to 6,052 (Q2 2016: 5,919) 8

  9. Slide 9: Regional Review

    Regional Review

  10. Slide 10: Regional Overview – Year-on-Year Gross Profit

    Regional Overview – Year-on-Year Gross Profit Reported (£m) Constant % of Q3 2016 2015 % % Group EMEA 42% 66.8 51.6 +29.4% +10.4% UK 24% 37.8 39.7 -4.7% -4.7% Asia Pacific 20% 32.3 28.3 +14.1% -4.7% Americas 14% 21.7 19.5 +11.8% -2.0% Group Total 100% 158.6 139.1 +14.1% +1.3% 10

  11. Slide 11: EMEA (42% of the Group) – Year-on-Year Gross Profit

    EMEA (42% of the Group) – Year-on-Year Gross Profit Reported (£m) Constant 2016 2015 % % Q3 2016 vs. Q3 2015 66.8 51.6 +29.4% +10.4% Headcount at 30 September 2016: 2,486 (30 June 2016: 2,427) • Michael Page (55% of EMEA) +8%, Page Personnel (45% of EMEA) +13% • France (13% of Group) +4% - Page Pers

  12. Slide 12: United Kingdom (24% of the Group) – Year-on-Year Gross Profit

    United Kingdom (24% of the Group) – Year-on-Year Gross Profit Reported (£m) 2016 2015 % Q3 2016 vs. Q3 2015 37.8 39.7 -4.7% Headcount at 30 September 2016: 1,449 (30 June 2016: 1,466) • Michael Page (78% of the UK) -5% • Page Personnel (22% of the UK) -3% • Technology our best performing discipline

  13. Slide 13: Asia Pacific (20% of the Group) – Year-on-Year Gross Profit

    Asia Pacific (20% of the Group) – Year-on-Year Gross Profit Reported (£m) Constant 2016 2015 % % Q3 2016 vs. Q3 2015 32.3 28.3 +14.1% -4.7% Headcount at 30 September 2016: 1,220 (30 June 2016: 1,176) • Asia (14% of Group and 69% of Asia Pacific) -8% • Greater China (61% of Asia) -6% • Mainland China

  14. Slide 14: Americas (14% of the Group) – Year-on-Year Gross Profit

    Americas (14% of the Group) – Year-on-Year Gross Profit Reported (£m) Constant 2016 2015 % % Q3 2016 vs. Q3 2015 21.7 19.5 +11.8% -2.0% Headcount at 30 September 2016: 897 (30 June 2016: 850) • North America (7% of the Group and 53% of Americas) -11% • US -11%, challenging NYC Financial Services mar

  15. Slide 15: Summary and Outlook

    Summary and Outlook

  16. Slide 16: Summary

    Summary • Q3 Gross Profit: +1.3% in constant currency and +14.1% in reported rates Summary • Impact of FX  Q3 reported Gross Profit increased by 12.8 percentage points or c. £17.8m • Many markets performing well  Continental Europe and most of Latin America • Some markets experiencing challenging

  17. Slide 17: Outlook

    Outlook • Trading conditions anticipated to remain challenging in the short term Summary Outlook  Post UK referendum uncertainty in the UK  Continental Europe remains strong  Financial Services market in New York particularly tough (overall Financial Services represents only 6% of the Group)  Br

  18. Slide 18: Cautionary Statement

    Cautionary Statement 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,

  19. Slide 19: Year-on-Year Gross Profit Growth Rates

    Year-on-Year Gross Profit Growth Rates 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 EMEA +5.7% +5.1% +11.2% +12.5% +12.1% +11.4% +13.0% +10.6% +10.3% +13.6% +10.4% UK +8.1% +11.1% +13.7% +11.0% +11.3% +12.8% +12.5% +2.4% +0.0% -2.3% -4.7% Asia Pacific +1.3% +14.2% +11.1% +10.8% +10.8% +5.6% +5.3%

  20. Slide 20: Slide 20

PageGroup — Q3 2016 Earnings Presentation on 6ix