PageGroup PLC · LSE:PAGE
PageGroup — Q3 2020 Earnings Presentation
31 slides from PageGroup's earnings presentation, 2020
Slide 1: Q3 2020 Trading Update
Steve Ingham Chief Executive Officer Q3 2020 Trading Update Kelvin Stagg Chief Financial Officer LSE: PAGE.L Website: https://www.page.com/investors
Slide 2: Q3 & COVID-19 Strategy
Q3 & COVID-19 Strategy Steve Ingham, Chief Executive Officer
Slide 3: Q3 Overview
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 Q3 Overview Group gross profit decline of -31.9%, September -26% Gross Profit £143.5m Constant Currency Q3 -31.9% Q3 £216.8m Q3 2019 -47.6% Q2 2020 Reported Rates Q3 -33.8% -47.4% Q2 2020 Michael Page Q3 -30.4% Net Cash c. £
Slide 4: COVID-19 Strategy
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 COVID-19 Strategy Health and Safety our priority Health and Safety our priority Protecting and investing in our platform Continuing to reopen offices Returned majority of staff from furlough and to full pay in Q3 Increase in
Slide 5: Protecting and investing in our platform: Headcount
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 Protecting and investing in our platform Slower reduction of headcount in Q3 • Overall strategy is to protect the platform and position the Group for Total headcount growth as conditions improve -2.9% 8,000 • Gross profit do
Slide 6: Financial and Regional Review
Financial and Regional Review Kelvin Stagg, Chief Financial Officer
Slide 7: Gross profit sharp downturn
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 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 Q2 Q3 Q2 Q3 Q1 Q2 Q1 Q2 Q1 Q4 Q1 Q4 Q3 Q4 Q3 Q4 Q2 Q3 Q2 Q3
Slide 8: Managing our cost base
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 Managing our cost base Q3 cost base reduction of c. 15% compared to March Average monthly cost base vs. • Q2 monthly cost base reduced by 21 percent compared to March, due to voluntary salary March* reductions, four day work
Slide 9: Perm and Temp ratio
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 Perm and Temp ratio Permanent recruitment more impacted by COVID-19 -31.9% -30.4% -35.2% • Gross Profit decline in • Gross Profit decline in • Gross Profit decline in permanent -34.2% to £103.5m permanent -32.5% to £81.7m pe
Slide 10: Group growth rate improved to -31.9%
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 Group growth rate improved to -31.9% Improving activity levels through Q3 • Trading conditions remained challenging, all regions impacted by COVID-19 • Large, High Potential markets* (37% of Group) -29% • Technology, Contrac
Slide 11: EMEA -24.5%
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 EMEA -24.5% Improvement in trading conditions continued, Germany standout result • France, 16% of the Group, -27% (-22% in September) • Germany, 12% of the Group, -10% (-9% in September) • Southern Europe -25%; Italy -23% (-
Slide 12: Asia Pacific -28.2%
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 Asia Pacific -28.2% Conditions in Mainland China improved through the quarter • Greater China, -22% (-6% in September); Mainland China -11% (flat in September); Hong Kong -41% (-23% in September) • Japan -16% (+1% in Septemb
Slide 13: Americas -41.9%
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 Americas -41.9% Significant disruption from COVID-19 • US -39% (-39% in September) Canada 5% • Latin America -47% (-34% in September) • Brazil -40% (-29% in September); Mexico -56% (-48% in September) Gross Profit by Geograp
Slide 14: UK -47.9%
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 UK -47.9% Conditions continued to improve as the quarter progressed • Exited September at -42% • Page Personnel -51%, Michael Page -47% Midlands 18% • Temporary -40%, Permanent -51% London 31% • Public sector -41% (15% of UK
Slide 15: Strategy
Strategy Steve Ingham, Chief Executive Officer
Slide 16: Competitor hires
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 Competitor hires YTD Average years of Total 2019 billings Region No. of competitor hires recruitment experience £m EMEA 107 3.6 15.4 APAC 72 4.8 10.4 AMERICAS 38 3.8 6.9 UK 59 5.4 7.1 Average TOTAL 276 £40 Million 4.3 • Hire
Slide 17: Customer Connect
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 Customer Connect 17
Slide 18: Customer Connect: one integrated platform
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 Customer Connect One integrated platform Revenue Attribution Single Global Web Platform Better visibility Better alignment Better customer experience of activity delivered enabling consultants to by managing engagement acros
Slide 19: Page Insights
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 Page Insights Unique business intelligence tool providing our customers invaluable insights and supporting our data-driven decisions and targeting Combines internal and external data sources • Global data from hundreds of mi
Slide 20: Page Outsourcing Potential
Q3 & COVID-19 Update Financial and Regional Review Strategy Summary Q3 20 Page Outsourcing Potential A growing track record Significant infrastructure already in place Coverage of both temp and perm markets Ideally positioned for multi country solutions 20
Slide 21: Summary
Summary
Slide 22: Summary: Protecting our people and our platform
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 Summary Protecting our people and our platform Improving activity levels continued through Q3, September -26% Priority remains to protect our employees, candidates and clients Continue to protect and invest in the platform t
Slide 23: Appendix
Appendix
Slide 24: Our business model
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Our business model Q3 20 24
Slide 25: A growing international business
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary A growing international business Q3 20 Delivering on our global diversification strategy Gross Profit FY 2007 FY 2013 Q3 2020 UK International 25
Slide 26: Significant variations in recruitment mix
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 Significant variations in recruitment mix Geography Brands 26
Slide 27: Long term fee earner and international growth
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 Long term fee earner and international growth ASIA EMEA AMERICAS UK PACIFIC 2,360 1,120 937 806* 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 Fr
Slide 28: Fee earner investment and support staff
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Fee earner investment and support staff Q3 20 28
Slide 29: Year-on-Year Gross Profit Rates
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Year-on-Year Gross Profit Rates Q3 20 2018 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 EMEA +18.2% +18.6% +20.9% +13.9% +11.4% +9.0% +5.6% +2.3% -11.1% -42.9% -24.5% Asia Pacific +13.8% +18.4% +27.7% +22.0% +14.9% +4.7% -8.1% -7.9%
Slide 30: Contacts and Calendar
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 20 Contacts and Calendar Contacts Date Event Jeremy Tatham – Group Financial Controller 13 January 2021 Q4 2020 Trading Update Tel: +44 (0) 1932 264 143 Email: investorrelations@michaelpage.com Web: https://www.page.com/investo
Slide 31: Disclaimer
Q3 & COVID-19 Strategy Financial and Regional Review Strategy Summary Q3 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 in