PageGroup PLC · LSE:PAGE

PageGroup — Michael Page International — FY2005 Earnings Presentation

32 slides from PageGroup's earnings presentation, Mar 1, 2006

  1. Slide 1: Michael Page International Preliminary Results 2005

    LONDON PARIS SYDNEY NEW YORK MICHAEL PAGE INTERNATIONAL PRELIMINARY RESULTS 2005 1 March 2006 Michael Page International is a world leading recruitment consultancy 118 offices in 18 countries worldwide | www.michaelpage.co.uk

  2. Slide 2: Presenters

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Presenters Terry Benson Chief Executive Preliminary Results 2005 Stephen Puckett Finance Director Steve Ingham MD UK/Chief Executive Designate Charles-Henri Dumon MD Continental Europe and The Americas Michael Page International is a world leading recruitment

  3. Slide 3: Overview

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Overview • Significantly improved results in 2005 • Good growth achieved in all regions Preliminary Results 2005 • Strong recovery in profits from Continental Europe • Operating profits increase by 71% from 27% higher revenue • Dividends increased by 25% • 16.8m

  4. Slide 4: Financial Results and Segmental Analysis; Geographical Review; Current Trading and Strategy

    LONDON PARIS SYDNEY NEW YORK FINANCIAL RESULTS AND SEGMENTAL ANALYSIS GEOGRAPHICAL REVIEW CURRENT TRADING AND STRATEGY Michael Page International is a world leading recruitment consultancy 118 offices in 18 countries worldwide | www.michaelpage.co.uk

  5. Slide 5: Income Statement

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Income Statement 2005 2004 £m Change £m Turnover 523.8 20.8% 433.7 Financial Results Gross profit 267.6 27.0% 210.6 Operating profit 66.5 71.2% 38.9 Net interest (0.4) 0.0 Profit before tax 66.1 70.2% 38.9 Taxation (16.5) (4.5) Profit after tax 49.6 44.5% 34.3 AND

  6. Slide 6: Taxation

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Taxation 2005 2004 £m £m Profit before tax 66.1 38.9 Financial Results Taxation on profits (16.5) (13.5) Exceptional tax credit - 9.0 Taxation for year (16.5) (4.5) Effective rate before exceptional 25.0% 34.8% Effective rate low due to utilisation of prior year

  7. Slide 7: Earnings per share and dividends

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Earnings per share and dividends 2005 2004 Earnings per share Financial Results Basic 14.8p 9.8p Before exceptional items 14.8p +106% 7.2p Dividend Interim - per share 1.5p 1.25p Final - per share 3.5p 2.75p Total - per share 5.0p +25% 4.00p Final payable on 5

  8. Slide 8: Share repurchases

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Share repurchases • Repurchased 16,800,000 shares during 2005 • All cancelled in December 2005 along with 7,765,000 shares previously held in Treasury Financial Results • Total cost of 2005 repurchases £34.2m • Average cost per share 203.7p • Share buy backs t

  9. Slide 9: Share Options

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Share Options • Strong 2005 results and share price achieves large proportion of options performance conditions • 24.35m share options will be exercisable by April 2006 Financial Results • Average exercise price is 157p • If all exercised proceeds will be £38.

  10. Slide 10: Cash flow

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Cash flow 2005 2004 £m £m Operating profit 66.5 38.9 Depreciation/amortisation/share scheme charges 8.7 7.6 Financial Results Profit on sale of business (0.6) 0.0 Net movement in working capital (8.5) (5.8) Decrease in provisions (0.6) (5.1) Cash generated from o

  11. Slide 11: Summary Balance Sheet

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Summary Balance Sheet 2005 2004 £m £m Intangibles (goodwill and computer software) 3.8 3.7 Financial Results Property, plant and equipment 19.7 18.7 Trade and other receivables 106.0 87.9 Trade and other payables (72.3) (62.4) Net cash 13.1 12.2 Current and de

  12. Slide 12: Discipline analysis

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Discipline analysis 2005 2004 Turnover £m % £m % Finance & Accounting 336.2 64.2% 290.2 66.9% Financial Results Marketing, Sales, Retail 84.6 16.1% 74.0 17.1% Other 103.0 19.7% 69.6 16.0% 523.8 100.0% 433.7 100.0% Gross profit Finance & Accounting 159.5 59.6% 1

  13. Slide 13: Perm/Temp analysis

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Perm/Temp analysis 2005 2004 Turnover £m % £m % Permanent 205.5 39.2% 158.5 36.5% Financial Results Temporary 318.3 60.8% 275.2 63.5% 523.8 100.0% 433.7 100.0% Gross profit Permanent 195.0 72.9% 148.6 70.6% Temporary 72.6 27.1% 62.0 29.4% 267.6 100.0% 210.6 100

  14. Slide 14: Financial Results and Segmental Analysis; Geographical Review; Current Trading and Strategy

    MANCHESTER AMSTERDAM SINGAPORE TORONTO FINANCIAL RESULTS AND SEGMENTAL ANALYSIS GEOGRAPHICAL REVIEW CURRENT TRADING AND STRATEGY Michael Page International is a world leading recruitment consultancy 118 offices in 18 countries worldwide | www.michaelpage.co.uk

  15. Slide 15: Geographical analysis of gross profit

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Geographical analysis of gross profit 2005 2004 £m % £m % United Kingdom 129.5 48% 110.0 52% Geographical Review Continental Europe 86.1 32% 61.5 29% Asia Pacific 39.0 15% 31.5 15% Americas 12.9 5% 7.6 4% 267.6 100% 210.6 100% Michael Page International is a wor

  16. Slide 16: 2005 Results: United Kingdom

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 2005 Results: United Kingdom 2005 2004 £m Growth £m Turnover 269.6 14.8% 234.8 Geographical Review Gross profit 129.5 17.8% 110.0 Operating profit 31.9 39.3% 22.9 Operating margin 24.7% 20.8% Headcount at year end 1,321 3.9% 1,272 Michael Page International is a

  17. Slide 17: United Kingdom: Finance and Accounting

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 United Kingdom: Finance and Accounting • Represents 57% of UK business: gross profit increased by 10% • Good growth in permanent and temporary placements Geographical Review • New MP Finance office in Liverpool • City gross profit is less than 10% of UK gross pro

  18. Slide 18: United Kingdom: Sales, Marketing and Retail

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 United Kingdom: Sales, Marketing and Retail • 22% of UK gross profit; 19% higher than 2004 • Marketing and Sales businesses achieved strong growth from all industry sectors Geographical Review • Higher growth in temporary gross profit as continue to develop a st

  19. Slide 19: United Kingdom: Legal, Technology, HR and others

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 United Kingdom Legal, Technology, Human Resources, Engineering & Manufacturing, Procurement & Supply Chain, Secretarial and Scotland • Combined, these businesses grew revenue by 44% Geographical Review • Legal and Technology both performed well with solid grow

  20. Slide 20: 2005 Results: Continental Europe

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 2005 Results: Continental Europe 2005 2004 £m Growth £m Turnover 159.2 28.0% 124.3 Geographical Review Gross profit 86.1 40.1% 61.5 Operating profit 19.4 374.3% 4.1 Operating margin 22.6% 6.7% Headcount at year end 1,042 27.1% 820 Michael Page International is a

  21. Slide 21: Continental Europe: France

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Continental Europe: France • France – Gross profit 18% higher and represents 15% of 2005 Group gross profit • France – Growth is all in permanent, temp revenue flat Geographical Review • French quarterly year on year growth rate strengthened throughout 2005 and e

  22. Slide 22: Continental Europe: excluding France

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Continental Europe: excluding France • Collectively rest of region grew gross profit in excess of 65% • Very strong growth in the Netherlands, Switzerland, Spain and Germany Geographical Review • Launched Page Personnel in Switzerland • Businesses in Italy, Bel

  23. Slide 23: 2005 Results: Asia Pacific

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 2005 Results: Asia Pacific 2005 2004 £m Growth £m Turnover 76.7 22.2% 62.8 Geographical Review Gross profit 39.0 23.8% 31.5 Operating profit 14.1 23.3% 11.4 Operating margin 36.1% 36.3% Headcount at year end 355 10.2% 322 Michael Page International is a world lea

  24. Slide 24: Asia Pacific

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Asia Pacific • Record year for the region • Australian gross profit up by 17% despite disappointing Q4 Geographical Review • System implementation impacted performance in Q4 and likely to impact Q1 of 2006 • Strong demand still evident from manufacturing and min

  25. Slide 25: 2005 Results: The Americas

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 2005 Results: The Americas 2005 2004 £m Growth £m Turnover 18.3 54.6% 11.8 Geographical Review Gross profit 12.9 68.9% 7.6 Operating profit 1.0 160.5% 0.4 Operating margin 8.0% 5.2% Headcount at year end 208 51.8% 137 Michael Page International is a world leadin

  26. Slide 26: The Americas

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 The Americas • North America now has seven offices with openings in Toronto and Philadelphia • Continue to add to headcount in the existing offices Geographical Review • Only Finance and Accounting (includes Banking) • Launching new disciplines in 2006 • Brazil

  27. Slide 27: Financial Results and Segmental Analysis; Geographical Review; Current Trading and Strategy

    WEYBRIDGE GENEVA CHATSWOOD PHILADELPHIA FINANCIAL RESULTS AND SEGMENTAL ANALYSIS GEOGRAPHICAL REVIEW CURRENT TRADING AND STRATEGY Michael Page International is a world leading recruitment consultancy 118 offices in 18 countries worldwide | www.michaelpage.co.uk

  28. Slide 28: Current Global Job Count

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Current Global Job Count: www.michaelpage.co.uk Trading AND STRATEGY Michael Page International is a world leading recruitment consultancy 118 offices in 18 countries worldwide | www.michaelpage.co.uk

  29. Slide 29: Group quarterly gross profit trend

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Group quarterly gross profit trend Q1 2001 to Q4 2005 Current Trading AND STRATEGY Michael Page International is a world leading recruitment consultancy 118 offices in 18 countries worldwide | www.michaelpage.co.uk

  30. Slide 30: Current trading

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Current trading • Good activity levels in all regions • UK experiencing consistent levels of growth Current Trading • Conditions improving in Continental Europe • Investing in all our businesses for future growth • Plan to open a number of new offices/countries

  31. Slide 31: Strategy

    PRELIMINARY RESULTS 2005 | 1 MARCH 2006 Strategy • Handover of CEO responsibilities from Terry Benson progressing well • Overall strategy remains unchanged Current Trading • Organically grow existing offices • Roll out existing disciplines • Launch new disciplines • Open new offices • Enter new geogra

  32. Slide 32: LONDON PARIS SYDNEY

    LONDON PARIS SYDNEY NEW YORK Michael Page International is a world leading recruitment consultancy 118 offices in 18 countries worldwide | www.michaelpage.co.uk

Michael Page International — FY2005 Earnings Presentation on 6ix