Pagegroup Plc · LSE:PAGE
Pagegroup — Q3 2022 Earnings Presentation
25 slides from Pagegroup's earnings presentation, October 2022
Slide 1: Q3 Trading Update 2022
Overview Financial Review Regional Review Summary Q3 Trading Update 2022
Slide 2: Headline Numbers
Overview Financial Review Regional Review Summary Headline Numbers Kelvin Stagg Chief Financial Officer
Slide 3: Continued strong performance
Overview Financial Review Regional Review Summary Continued strong performance Key financial highlights Gross Profit £270.5m Constant +14.0% Q3 Currency vs £228.1m Q3 2021 Q3 2021 Reported +18.6% vs Q3 2021 +26% Total Fee Earner 7,071 +26% Net Cash c. £186m Headcount 6,734 Q2 2022 c. £136m Q2 2022 F
Slide 4: Financial Review
Overview Financial Review Regional Review Summary Financial Review
Slide 5: Q3 Perm and Temp Ratio
Overview Financial Review Regional Review Summary Q3 Perm and Temp Ratio Stronger growth in Temporary recruitment 17% 24% 43% 57% +14.0% +12.8% +17.4% 76% 83% Perm Temp Perm Temp Perm Temp • Permanent +12.0% to £206.5m • Permanent +10.6% to £166.2m • Permanent +18.0% to £40.3m • Temporary +20.9% to
Slide 6: Strategic Priorities
Overview Financial Review Regional Review Summary Strategic Priorities Geographies, Disciplines and Brands Geographies Continued focus on our Large, High Potential markets of Germany, Greater China, Latin America, South East Asia and the US • Represented 41% of the Group in Q3 • Collective growth of
Slide 7: Headcount
Overview Financial Review Regional Review Summary Strategic Priority Investing in our platform Total headcount +5.1% • Increase in fee earners of 337 (+5.0%) in the Quarter, giving a record total of 7,071 9,000 8,000 • Productivity down 8% on Q3 2021 7,000 • Q3 Fee earners increase: +196 EMEA, +75 A
Slide 8: Strong gross profit growth
Overview Financial Review Regional Review Summary Strong gross profit growth Further investment made in headcount 7000 300 6000 250 5000 Gross Profit (£m) as reported 200 4000 Fee Earners 150 3000 100 2000 50 1000 0 0 Q2 Q3 Q2 Q3 Q2 Q4 Q3 Q4 Q3 Q4 Q1 Q4 Q1 Q4 Q1 Q2 Q1 Q3 Q4 Q1 Q2 Q4 Q1 Q3 Q4 Q1 Q2 Q
Slide 9: Regional Review
Overview Financial Review Regional Review Summary Regional Review Steve Ingham Chief Executive Officer
Slide 10: Q3 Gross Profit +14.0% vs 2021
Overview Financial Review Regional Review Summary Q3 Gross Profit +14.0% vs 2021 Record quarters delivered in 9 countries • September the third month with Gross Profit in excess of £100m • Favourable FX impact on the Group results, +4.6% (£10.5m) on gross profit Reported Constant Q3 % of Group 2022
Slide 11: EMEA
Overview Financial Review Regional Review Summary EMEA Strong trading conditions continued into Q3 Reported Constant Q3 2022 £m 2021 £m % % Gross Profit 130.0 106.0 +22.6% +22.1% Other 14% • Michael Page +27% Germany 25% • Page Personnel +15% Benelux • Germany (12% of the Group) +29% 16% Gross Profi
Slide 12: The Americas
Overview Financial Review Regional Review Summary The Americas Now the Group’s second largest region Reported Constant Q3 2022 £m 2021 £m % % Gross Profit 52.7 39.1 +34.9% +18.3% Canada 4% • North America (12% of the Group) +15% Rest of Latam 14% • US (12% of the Group) +14% • Latin America (7% of t
Slide 13: Asia Pacific
Overview Financial Review Regional Review Summary Asia Pacific Tough conditions continued in Greater China Reported Constant Q3 2022 £m 2021 £m % % Gross Profit 50.4 48.8 +3.3% -3.9% • Greater China (6% of the Group) -26% Japan & India 25% Greater • Mainland China -32% China • Hong Kong -20% 31% Gro
Slide 14: Another strong performance by Page Personnel
Overview Financial Review Regional Review Summary UK Another strong performance by Page Personnel Reported Q3 2022 £m 2021 £m % Gross Profit 37.4 34.2 +9.5% Midlands 15% • Michael Page -4% London • Page Personnel +56% 35% • September impacted by the national period of mourning Gross Profit and econo
Slide 15: Summary
Overview Financial Review Regional Review Summary Summary
Slide 16: Summary
Overview Financial Review Regional Review Summary Summary Strong performance and continued investment Gross Profit in constant currencies +14.0% vs Q3 2021 Slight softening in client confidence Investment in 337 fee earners in the Quarter Continued macro-economic and geo-political uncertainty Strong
Slide 17: Appendix
Overview Financial Review Regional Review Summary Appendix
Slide 18: Our business model
Our business model Page Outsourcing PageGroup Brands Significant Competitors Page I ii ROBERT WALTER Qualified professional Michael Page Clerical pro 2 p Page Personnel nfl Manpowergesrandstac! 18
Slide 19: A growing international business
A growing international business Delivering on our global diversification strategy Gross Profit Large, High 10% 15% Potential Markets 17% 16% 41% 30% Large Established Markets Small and Medium, High Margin 43% 73% 55% Markets FY 2007 FY 2013 Q3 2022 19
Slide 20: Significant variations in recruitment mix
Significant variations in recruitment mix Geography Brands 12% 14% 17% 31% 27% 43% 88% 86% 83% 69% 73% 57% EMEA Americas Asia Pacific UK Michael Page Page Personnel Temp Perm 20
Slide 21: Long term fee earner & international growth
Long term fee earner & international growth 8,000 ASIA EMEA AMERICAS UK PACIFIC Fee Earner Headcount 7,000 6,000 5,000 4,000 3,000 3,232 2,000 1,522 1,354 1,000 964 - 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 2021 202
Slide 22: Headcount
Fee earner investment and support staff 7000 6000 5000 Headcount 4000 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 H1 H2 H1 H2 H1 H2 H1 H2 H1 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2
Slide 23: Year-on-Year Gross Profit Rates
Year-on-Year Gross Profit Rates 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 EMEA -11.1% -42.9% -24.5% -18.6% +3.6% +75.8% +45.8% +48.0% +41.1% +29.4% +22.1% Asia Pacific -16.6% -41.7% -28.2% -10.2% +15.3% +89.7% +68.2% +48.7% +35.8% +11.7% -3.9% – Asia -17.1% -38.1% -23.4% -4.3% +22.2% +93.1.% +
Slide 24: Disclaimer
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 purposes only and is not intended for distribution to, or use by
Slide 25: Overview Financial Review Regional Review
Overview Financial Review Regional Review Summary