PageGroup PLC · LSE:PAGE
PageGroup — Q2 2017 Earnings Presentation
20 slides from PageGroup's earnings presentation, July 2017
Slide 1: Second Quarter and First Half 2017 Trading Update
Second Quarter and First Half 2017 Trading Update
Slide 2: Agenda
Agenda Financial Review Regional Review Summary and Outlook
Slide 3: Financial Review
Financial Review
Slide 4: Trading Performance
Trading Performance Reported (£m) Constant 2017 2016 % % Q2 182.0 156.9 +16.0% +7.7% H1 352.2 299.2 +17.7% +8.3% • In reported rates Q2 Gross Profit +16.0% a record for the Group at £182.0m • In constant currency Q2 Gross Profit +7.7% at £169.0m - Michael Page +5.3% - Page Personnel +13.9% • Financi
Slide 5: Permanent vs Temporary – Year-on-Year Gross Profit
Permanent vs Temporary – Year-on-Year Gross Profit Reported (£m) Constant Q2 2017 2016 % % Permanent 139.4 120.9 +15.3% +7.0% Temporary 42.6 36.0 +18.3% +10.2% Ratio (Perm : Temp) 77:23 77:23 Reported (£m) Constant H1 2017 2016 % % Permanent 267.1 228.2 +17.1% +7.6% Temporary 85.1 71.0 +19.8% +10.6%
Slide 6: Q2 Permanent : Temporary – Ratio Analysis
Q2 Permanent : Temporary – Ratio Analysis 13% 13% 29% 28% 28% EMEA UK ASIA PAC AMERICAS 72% 71% 72% 87% 87% 16% 42% 84% 58% Temp Perm 6
Slide 7: Discipline Overview – Year-on-Year Gross Profit
Discipline Overview – Year-on-Year Gross Profit Reported (£m) Constant % of Q2 2017 2016 % % Group Accounting and Financial 37% 67.7 60.5 +11.9% +4.2% Services Legal, Technology, HR, Secretarial 23% 41.2 34.8 +18.2% +9.5% and Healthcare Engineering, Property & Construction, Procurement & 22% 39.9 31
Slide 8: Headcount and Investment
Headcount and Investment Q2 2017 Q1 2017 Movement % Fee earners 4,987 4,809 +178 +3.7% Support staff 1,461 1,405 +56 +4.0% Total headcount 6,448 6,214 +234 +3.8% Ratio 77:23 77:23 • Fee earner headcount reflects trading conditions, +7% in Americas and +5% in Asia Pacific • Operational support staff
Slide 9: Headcount and Reported Gross Profit
Headcount and Reported Gross Profit Total headcount increased 3.8% vs. Q1 2017 to 6,448 (Q1 2017: 6,214) 9
Slide 10: Regional Review
Regional Review
Slide 11: Q2 Regional Overview - Year-on-Year Gross Profit
Q2 Regional Overview - Year-on-Year Gross Profit Reported (£m) Constant % of Q2 2017 2016 % % Group EMEA 46% 83.7 67.6 +24.0% +13.2% UK 20% 36.6 38.3 -4.5% -4.5% Asia Pacific 20% 35.8 30.6 +17.1% +6.8% Americas 14% 25.9 20.4 +26.5% +13.8% Group Total 100% 182.0 156.9 +16.0% +7.7% • Record quarters i
Slide 12: EMEA (46% of the Group) - Year-on-Year Gross Profit
EMEA (46% of the Group) - Year-on-Year Gross Profit Reported (£m) Constant 2017 2016 % % Q2 83.7 67.6 +24.0% +13.2% H1 162.3 129.1 +25.7% +14.0% Headcount at 30 June 2017: 2,718 (31 March 2017: 2,628) • Michael Page (55% of EMEA) +9%, Page Personnel (45% of EMEA) +18% • France (15% of Group) +23% -
Slide 13: United Kingdom (20% of the Group) - Year-on-Year Gross Profit
United Kingdom (20% of the Group) - Year-on-Year Gross Profit Reported (£m) 2017 2016 % Q2 36.6 38.3 -4.5% H1 73.0 74.8 -2.3% Headcount at 30 June 2017: 1,424 (31 March 2017: 1,405) • Michael Page (78% of the UK) -5% • Page Personnel (22% of the UK) -2% • Permanent recruitment (-2%) more robust than
Slide 14: 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 2017 2016 % % Q2 35.8 30.6 +17.1% +6.8% H1 66.7 56.5 +17.9% +5.5% Headcount at 30 June 2017: 1,298 (31 March 2017: 1,238) • Asia (14% of Group and 72% of Asia Pacific) +10% • Greater China (8% of Group and 59% of Asia
Slide 15: Americas (14% of the Group) - Year-on-Year Gross Profit
Americas (14% of the Group) - Year-on-Year Gross Profit Reported (£m) Constant 2017 2016 % % Q2 25.9 20.4 +26.5% +13.8% H1 50.2 38.8 +29.5% +14.1% Headcount at 30 June 2017: 1,008 (31 March 2017: 943) • North America (8% of the Group and 56% of Americas) +15% • US +17%, a record quarter • US Fee Ear
Slide 16: Summary and Outlook
_ Summary and Outlook
Slide 17: Summary
Summary • Q2 Gross Profit: +7.7% in constant currencies and +16.0% in reported rates Summary • Impact of FX Q2 reported Gross Profit increased by 8.3 percentage points or c. £13m H1 reported Gross Profit increased by 9.4 percentage points or c. £28m • Majority of markets performing well Asia (
Slide 18: Outlook
Outlook • Large, High-Potential Markets US continues to diversify Outlook Summary Investment in LatAm excluding Brazil Investment in South East Asia excluding Singapore Germany focus on Page Interim and Page Personnel Greater China focus on Mainland China and domestic clients • Strong grow
Slide 19: 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,
Slide 20: Year-on-Year Gross Profit Growth Rates
Year-on-Year Gross Profit Growth Rates 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 EMEA +12.1% +11.4% +13.0% +10.6% +10.3% +13.6% +10.4% +12.4% +14.8% +13.2% UK +11.3% +12.8% +12.5% +2.4% +0.0% -2.3% -4.7% -6.7% -0.1% -4.5% Asia Pacific +10.8% +5.6% +5.3% -1.3% -2.0% -3.3% -4.7% +1.7% +3.9% +6.8% -