Pagegroup Plc · LSE:PAGE
Pagegroup — FY2021 Earnings Presentation
26 slides from Pagegroup's earnings presentation, March 2022
Slide 1: Full Year Results 2021
Headline Numbers Financial Review Strategic Review Summary Full Year Results 2021
Slide 2: Headline Numbers
Headline Numbers Financial Review Strategic Review Summary Headline Numbers Kelvin Stagg Chief Financial Officer
Slide 3: A record year for the Group
Headline Numbers Financial Review Strategic Review Summary A record year for the Group Key financial highlights Gross Profit £877.7m Operating £168.5m Profit Constant Currency +49.1% Conversion 19.2% Growth Rate +26% Effective 29.0% +26% Net Cash £154.0m Tax Rate Earnings 37.2p Total 41.71p Per Shar
Slide 4: Financial Review
Headline Numbers Financial Review Strategic Review Summary Financial Review
Slide 5: Continued strong gross profit growth
Headline Numbers Financial Review Strategic Review Summary Continued strong gross profit growth Investing in the platform through 2020 and 2021 300 6000 250 200 4500 Gross Profit (£m) as reported 150 Fee Earners 3000 100 1500 50 0 0 Q2 Q3 Q1 Q3 Q1 Q2 Q4 Q2 Q4 Q1 Q3 Q1 Q3 Q4 Q2 Q4 Q1 Q3 Q4 Q1 Q2 Q3 Q
Slide 6: Record Gross Profit for the Group
Headline Numbers Financial Review Strategic Review Summary Record Gross Profit for the Group Group Conversion Rate of 19.2% FY 2021 FY 2020 FY 2019 Gross GP Growth Operating Conversion Gross Operating Conversion Gross Operating Conversion £m Profit Rate (CC %) Profit Rate* Profit Profit Rate* Profit
Slide 7: H1 / H2 Conversion rates
Headline Numbers Financial Review Strategic Review Summary H1 / H2 Conversion rates Improvement in H2 conversion rate to 22.0% H1 2021 H2 2021 Operating Conversion Operating Conversion £m Gross Profit Gross Profit Profit Rate* Profit Rate* Group 404.2 64.3 15.9% 473.5 104.2 22.0% EMEA 203.5 35.9 17.
Slide 8: Effective Tax Rate back to pre-Covid levels
Headline Numbers Financial Review Strategic Review Summary Effective Tax Rate back to pre-Covid levels Tax rate broadly flat on 2019 Reported vs. £m 2021 2020 2019 2019 % Profit Before Tax 166.6 15.5 144.2 +15.5% Tax Charge 48.3 21.3 40.8 +18.4% Effective Tax Rate 29.0% 136.9% 28.3% • Expect 2022 ef
Slide 9: A strong and robust balance sheet
Headline Numbers Financial Review Strategic Review Summary A strong and robust balance sheet Net cash of £154m £m 2021 2020 Intangible assets 49.2 41.8 Tangible assets 24.8 26.4 Right-of-use assets 95.0 95.4 Trade and other receivables 368.6 265.6 Trade, other payables, current and deferred taxes (2
Slide 10: Strong Recovery in Earnings
Headline Numbers Financial Review Strategic Review Summary Strong Recovery in Earnings Dividends paid of £100.2m 440 400 42.9 360 37.6 320 16.4 25.7 280 229.2 100.2 240 £m 10.4 200 37.0 3.8 160 120 208.2 166.0 154.0 80 40 Dec 20 EBITDA Working Tax and net Net capex Share options Dividends EBT share
Slide 11: A return to dividends
Headline Numbers Financial Review Strategic Review Summary A return to dividends Increased return per share 140 41.71p • Final 2021 dividend proposed of 10.30p per share 130 (+9.6% vs 2019) 120 110 100 • Total dividend per share of 41.71p in 2021 90 27.50p 85.2 25.83p 25.23p 80 70 £m 18.44p 60 50.1
Slide 12: Strategic Review
Headline Numbers Financial Review Strategic Review Summary Strategic Review Steve Ingham Chief Executive Officer
Slide 13: Investing in our Platform
Headline Numbers Financial Review Strategic Review Summary Investing in our Platform Over 1,100 experienced hires, adding c. £77m to 2021 gross profit Over 1,100 experienced fee earners hired since Q2 2020 Adding c. £77m gross profit in 2021 Building productivity faster Accelerated growth of high-po
Slide 14: Productivity
Headline Numbers Financial Review Strategic Review Summary Productivity Recovery driven primarily by increase in number of placements 40,000 7.00 35,000 6.00 Placements per Fee Earner Permanent Placements 30,000 5.00 25,000 4.00 20,000 3.00 15,000 2.00 10,000 5,000 1.00 - - H1 H2 H1 H2 H1 H2 2019 20
Slide 15: Summary
Headline Numbers Financial Review Strategic Review Summary Summary
Slide 16: Summary
Headline Numbers Financial Review Strategic Review Summary Summary A record year for the Group Gross Profit in constant currencies +49.1% vs 2020 Record Operating Profit of £168.5m, Conversion Rate of 19.2% Fee earners increase by 55, +1% vs 2019 Selectively hiring c. 1,100 experienced fee earners s
Slide 17: Appendix
Headline Numbers Financial Review Strategic 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 15% UK International 85% FY 2007 FY 2013 FY 2021 Large, High 16% 38% Potential Markets Large Established Markets Small and Medium, High Margin 46% Markets 19
Slide 20: Significant variations in recruitment mix
Significant variations in recruitment mix Geography Brands 12% 12% 16% 30% 25% 43% 88% 88% 84% 70% 75% 57% EMEA Asia Pacific Americas UK Michael Page Page Personnel Temp Perm 20
Slide 21: Long term fee earner & international growth
Long term fee earner & international growth 7,000 ASIA EMEA AMERICAS UK PACIFIC Fee Earner Headcount 6,000 5,000 4,000 3,000 2,719 2,000 1,388 1,090 1,000 885 - 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 Germany P
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 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 58:4
Slide 23: Year-on-Year Gross Profit Rates
Year-on-Year Gross Profit Rates 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EMEA +11.4% +9.0% +5.6% +2.3% -11.1% -42.9% -24.5% -18.6% +3.6% +75.8% +45.8% +48.0% Asia Pacific +14.9% +4.7% -8.1% -7.9% -16.6% -41.7% -28.2% -10.2% +15.3% +89.7% +68.2% +48.7% – Asia +15.6% +5.8% -10.6% -7.6% -17.1
Slide 24: Contacts and Calendar
Contacts and Calendar Contacts Date Event Jeremy Tatham – Group Financial Controller 13 April 2022 Q1 2022 Trading Update Tel: +44 (0) 1932 264 143 Email: investorrelations@michaelpage.com Web: https://www.page.com/investors 24
Slide 25: 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 26: Headline Numbers Financial Review Strategic Review
Headline Numbers Financial Review Strategic Review Summary