Slide 1: Q3 Trading Update 2023
Overview Financial Review Regional Review Summary Q3 Trading Update 2023
Slide 2: Headline Numbers
Overview Financial Review Regional Review Summary Headline Numbers Kelvin Stagg Chief Financial Officer
Slide 3: Key financial highlights
Overview Financial Review Regional Review Summary Key financial highlights Resilient result despite slower end to the quarter Constant Currency vs -7.9% Gross Profit Q3 £242.2m Q3 2022 -10.5% £270.5m Q3 2022 Reported vs Q3 2022 +26% Total Fee Earner 6,075 +26% Productivity vs +4% Headcount Q3 2022 6
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 18% 28% 48% 52% -7.9% -8.6% -5.8% 72% 82% Perm Temp Perm Temp Perm Temp • Permanent -12.1% to £175.5m • Permanent -10.0% to £143.3m • Permanent -20.7% to £32.2m • Temporary +5.8% to £66.
Slide 6: Headcount
Overview Financial Review Regional Review Summary Reduction in fee earners of 4.8% Reflecting challenging conditions Total headcount -5.0% • Decrease in fee earners of 310 (-4.8%) in the Quarter 10,000 9,000 • Q3 Fee earners: -93 EMEA, -96 Americas, -85 Asia 8,000 Pacific, -36 UK 7,000 • Non-operati
Slide 7: Productivity up 4% on Q3 2022
Overview Financial Review Regional Review Summary Productivity up 4% on Q3 2022 Attrition used to manage down fee earner headcount • Lower candidate confidence 60 Fee Earners Gross Profit per fee earner (£k) constant 7000 • Candidate shortages remain acute 50 6000 currency 40 5000 • Continued high f
Slide 8: Regional Review
Overview Financial Review Regional Review Summary Regional Review
Slide 9: Q3 Gross Profit -7.9%
Overview Financial Review Regional Review Summary Q3 Gross Profit -7.9% Negative foreign exchange impact of 2.6 ppts • Strongest performance in EMEA, standout result in Germany • Tough market conditions continued in Asia, the UK and the US Q3 % of Group 2023 £m 2022 £m Reported % Constant % EMEA 53%
Slide 10: EMEA
Overview Financial Review Regional Review Summary EMEA Best performing region Q3 2023 £m 2022 £m Reported % Constant % Gross Profit 128.0 130.0 -1.6% -1.3% Other 13% France • Germany (14% of the Group) +5% 25% • France (13% of the Group) +1% Benelux 15% • Benelux -8% Gross Profit by Geography • Sout
Slide 11: The Americas
Overview Financial Review Regional Review Summary The Americas Record quarter in Latin America Q3 2023 £m 2022 £m Reported % Constant % Gross Profit 43.3 52.7 -17.9% -13.3% Rest of Canada • US (9% of the Group) -25% Latam 18% 3% • Latin America (8% of the Group) +7% • Mexico -4% Gross Profit USA • B
Slide 12: Asia Pacific
Overview Financial Review Regional Review Summary Asia Pacific China stable but with little sign of improvement Q3 2023 £m 2022 £m Reported % Constant % Gross Profit 40.6 50.4 -19.3% -11.0% • Greater China (5% of the Group) -22% SE Asia Japan & • Mainland China -23% 23% India 28% • Hong Kong -21% •
Slide 13: UK: Temporary recruitment more resilient than permanent
Overview Financial Review Regional Review Summary UK Temporary recruitment more resilient than permanent Q3 2023 £m 2022 £m Reported % Gross Profit 30.3 37.4 -18.9% Midlands 16% • Michael Page -20% London • Page Personnel -17% 38% Gross Profit • Temporary recruitment -5% vs permanent -24% South by G
Slide 14: Summary
Overview Financial Review Regional Review Summary Summary
Slide 15: Summary
Overview Financial Review Regional Review Summary Summary Implementing new strategy; resilient performance in challenging markets EMEA best performing region, tough conditions in Asia, the UK and the US Fee earner headcount reduction of 310 (-4.8%) in Q3 Slower end to the Quarter in September Implem
Slide 16: Appendix
Overview Financial Review Regional Review Summary Appendix
Slide 17: Our business model
Overview Financial Review Regional Review Summary Our business model 17
Slide 18: Significant variations in recruitment mix
Overview Financial Review Regional Review Summary Significant variations in recruitment mix Geography Brands 15% 15% 18% 35% 31% 52% 65% 85% 85% 82% 48% 69% EMEA Americas Asia Pacific UK Michael Page Page Personnel Temp Perm 18
Slide 19: Long term fee earner & international growth
Overview Financial Review Regional Review Summary 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 3,044 2,000 1,248 1,000 981 802 - 1985-1990 1990-1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 20: Quarterly gross profit & fee earners
Overview Financial Review Regional Review Summary Quarterly gross profit & fee earners Quarterly gross profit reduced from Q3 2022 7000 300 6000 250 5000 Gross Profit (£m) as reported 200 4000 Fee Earners 150 3000 100 2000 50 1000 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 21: Year-on-Year gross profit growth rates
Overview Financial Review Regional Review Summary Year-on-Year gross profit growth rates 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 EMEA +3.6% +75.8% +45.8% +48.0% +41.1% +29.4% +22.1% +11.9% +6.8% +1.4% -1.3% Asia Pacific +15.3% +89.7% +68.2% +48.7% +35.8% +11.7% -3.9% -15.8% -17.0% -17.2% -11
Slide 22: Contacts and Calendar
Overview Financial Review Regional Review Summary Contacts and Calendar Contacts Date Event Matt Clark – Group Financial Controller 15 January 2024 Q4 2023 Trading Update Tel: +44 (0) 1932 264 022 Email: investorrelations@michaelpage.com Web: https://www.page.com/investors 22
Slide 23: Disclaimer
Overview Financial Review Regional Review Summary 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
Slide 24: Overview Financial Review Regional Review
Overview Financial Review Regional Review Summary 24