PageGroup PLC · LSE:PAGE
PageGroup — Q4 2020 Earnings Presentation
24 slides from PageGroup's earnings presentation, January 2021
Slide 1: Q4 2020 and FY20 Trading Update
Steve Ingham Chief Executive Officer Q4 2020 and FY20 Trading Update Kelvin Stagg Chief Financial Officer LSE: PAGE.L Website: https://www.page.com/investors
Slide 2: Headline Numbers
Headline Numbers Kelvin Stagg, Chief Financial Officer
Slide 3: Q4 Overview
Headline Numbers Financial Review Regional Review Summary Q4 20 Q4 Overview Group gross profit decline of 20.2%, December -18.2% Gross Profit £165.5m Constant Currency Q4 -20.2% Q4 £205.1m Q4 2019 -28.2% FY 2020 Reported Rates Gross Profit £609.7m Q4 -19.3% FY -28.7% FY 2020 £855.5m FY 2019 Michael
Slide 4: Financial Review
Financial Review
Slide 5: Perm and Temp ratio
Headline Numbers Financial Review Regional Review Summary Q4 20 Perm and Temp ratio Similar impact in Perm and Temp 18% 27% 48% 52% -20.2% -18.0% -25.1% 73% 82% Perm Temp Perm Temp Perm Temp • Gross Profit decline in • Gross Profit decline in • Gross Profit decline in permanent -20.0% to £121.3m per
Slide 6: Headcount
Headline Numbers Financial Review Regional Review Summary Q4 20 Protecting and investing in our platform Slower reduction of headcount in Q4 • Overall strategy is to protect the platform and position the Group for Total headcount growth as conditions improve -1.3% 8,000 • Gross profit down 28% for t
Slide 7: Gross profit sharp downturn
Headline Numbers Financial Review Regional Review Summary Q4 20 Gross profit sharp downturn Decline in fee earner headcount much less than 2009 6000 250 200 4500 Gross Profit (£m) as reported 150 Fee Earners 3000 100 1500 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 8: Regional Review
Regional Review Steve Ingham, Chief Executive Officer
Slide 9: Group growth rate improved to -20.2%
Headline Numbers Financial Review Regional Review Summary Q4 20 Group growth rate improved to -20.2% Improving activity levels through Q4 • Large, High Potential markets* (34% of Group) -17% • Technology, Contracting, Digital and Healthcare & Life Sciences the most resilient businesses • Growth in a
Slide 10: EMEA -18.6%
Headline Numbers Financial Review Regional Review Summary Q4 20 EMEA -18.6% Improvement in trading conditions continued, lockdowns impacted exit rates • Michael Page -16%, Page Personnel -22% • France, 17% of the Group, -20% • Germany, 10% of the Group, -13% • Southern Europe -19%; Italy -21%, Spain
Slide 11: Asia Pacific -10.2%
Headline Numbers Financial Review Regional Review Summary Q4 20 Asia Pacific -10.2% Mainland China and Japan standout results • Asia, 17% of the Group, -4% • Greater China, 8% of the Group, -10%; Mainland China flat; Hong Kong -28% • Japan +18% and India -3% • South East Asia -13%; Singapore -14% Gr
Slide 12: Americas -23.2%
Headline Numbers Financial Review Regional Review Summary Q4 20 Americas -23.2% Significant disruption from COVID-19 Canada 4% • US -31% • Latin America -13% Rest of Latam 16% • Brazil -6% • Mexico -30% Brazil Gross Profit 12% by Geography USA 55% Reported Constant £m Period 2020 2019 % % Q4 22.8 32
Slide 13: UK -34.2%
Headline Numbers Financial Review Regional Review Summary Q4 20 UK -34.2% Trading conditions remain challenging • Exited December at -30% • Michael Page -31%, Page Personnel -43% Midlands 19% • Permanent -33%, Temporary -37% London 32% Reported Gross Profit £m Period 2020 2019 by Geography % South Q
Slide 14: Summary
Summary
Slide 15: Summary
Headline Numbers Financial Review Regional Review Summary Q4 20 Summary Activity levels improved further in Q4 Improving activity levels continued through Q4 December exit rate -18.2%, impacted by local lockdowns in some markets Priority remains to protect our employees, candidates and clients Techn
Slide 16: Appendix
Appendix
Slide 17: Our business model
Headline Numbers Financial Review Regional Review Summary Our business model Q4 20 17
Slide 18: A growing international business
Headline Numbers Financial Review Regional Review Summary A growing international business Q4 20 Delivering on our global diversification strategy Gross Profit FY 2007 FY 2013 FY 2020 UK International 18
Slide 19: Significant variations in recruitment mix
Headline Numbers Financial Review Regional Review Summary Q4 20 Significant variations in recruitment mix Geography Brands 15% 17% 18% 33% 32% 48% 85% 83% 82% 67% 68% 52% EMEA Asia Pacific Americas UK Michael Page Page Personnel Temp Perm 19
Slide 20: Long term fee earner and international growth
Headline Numbers Financial Review Regional Review Summary Q4 20 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 Germany
Slide 21: Fee earner investment and support staff
Headline Numbers Financial Review Regional Review Summary Fee earner investment and support staff Q4 20 21
Slide 22: Year-on-Year Gross Profit Rates
Headline Numbers Financial Review Regional Review Summary Year-on-Year Gross Profit Rates Q4 20 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% -7.9% -
Slide 23: Contacts and Calendar
Headline Numbers Financial Review Regional Review Summary Q4 20 Contacts and Calendar Contacts Date Event Jeremy Tatham – Group Financial Controller 3 March 2021 FY 2020 Trading Update Tel: +44 (0) 1932 264 143 Email: investorrelations@michaelpage.com Web: https://www.page.com/investors 23
Slide 24: Disclaimer
Headline Numbers Financial Review Regional Review Summary Q4 20 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