Pagegroup Plc · LSE:PAGE
Pagegroup — H1 2015 Earnings Presentation
30 slides from Pagegroup's earnings presentation, July 2015
Slide 1: Second Quarter and First Half 2015 Trading Update
Second Quarter and First Half 2015 Trading Update
Slide 2: Agenda
Agenda Financial Review Regional Review Business Strategy Summary and Outlook
Slide 3: Financial Review
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Slide 4: Trading Performance – Year-on-Year Gross Profit
Trading Performance – Year-on-Year Gross Profit Reported (£m) Constant 2015 2014 % % Q2 145.3 137.1 +6.0% +10.6% H1 281.0 263.7 +6.6% +10.8% • Q2 Gross Profit +10.6% vs Q2 2014 in constant currency • In reported rates Q2 Gross Profit +6.0% • At constant currency, Q2 Gross Profit was £151.5m (+£6.2m
Slide 5: Permanent : Temporary – Ratio Analysis
Permanent : Temporary – Ratio Analysis 12% 14% 27% 28% ASIA PAC AMERICAS EMEA UK 72% 73% 86% 88% 15% 41% 85% 59% Temp Perm 5
Slide 6: Permanent : Temporary – Year-on-Year Gross Profit
Permanent : Temporary – Year-on-Year Gross Profit Reported (£m) Constant Q2 Q2 2015 Q2 2014 % % Permanent 113.3 105.8 +7.2% +11.3% Temporary 32.0 31.3 +2.1% +8.1% Ratio (Perm : Temp) 78:22 77:23 Reported (£m) Constant H1 H1 2015 H1 2014 % % Permanent 218.3 203.5 +7.3% +11.0% Temporary 62.7 60.2 +4.1
Slide 7: Discipline Overview – Year-on-Year Gross Profit
Discipline Overview – Year-on-Year Gross Profit Reported (£m) Constant % of Q2 2015 Q2 2014 % % Group Finance & Accounting 40% 57.7 54.8 +5.4% +10.1% Legal, Technology, HR, Secretarial 21% 31.0 27.7 +11.6% +15.6% and Healthcare Engineering, Property & Construction, Procurement & 19% 28.2 27.7 +1.8%
Slide 8: Headcount
Headcount H1 2015 H1 2014 Movement % Fee earners 4,303 3,987 +316 +7.9% Support staff 1,319 1,350 -31 -2.3% Total headcount 5,622 5,337 +285 +5.3% Ratio 77:23 75:25 • Focus on bringing the 468 fee earners added in 2014 up to full productivity • Additions in the first half impacted by closure of Russ
Slide 9: Headcount and Reported Gross Profit
Headcount and Reported Gross Profit Total headcount increased by 5% vs. H1 2014 to 5,622 (H1 2014: 5,337) 9
Slide 10: Impact of Foreign Exchange (£m)
Impact of Foreign Exchange (£m) H1 Estimated Full Year Impact Actual FX As at Q1* As at Q2** Movement Impact Gross Profit (11) (10) (28) (18) Operating Profit (2) (2) (6) (4) *If March rates were to prevail for the remainder of 2015 **If June rates were to prevail for the remainder of 2015 • FX move
Slide 11: One-Off Items – Half Year 2015 (£m)
One-Off Items – Half Year 2015 (£m) 0 (1.0) -1 (1.0) (2.6) -2 -3 (2.1) 1.5 -4 -5 European SSC Russia Share Plans PRS re-life Variance • European Shared Service Centre transition costs -£1.0m • Costs associated with the exit of Russian business -£1.0m • Increase in share plan costs primarily driven b
Slide 12: Regional Review
Slide 13: Q2 Regional Overview – Year-on-Year Gross Profit
Q2 Regional Overview – Year-on-Year Gross Profit Reported (£m) Constant % of Q2 2015 Q2 2014 % % Group EMEA 38% 55.1 54.8 +0.6% +11.4% UK 27% 39.2 34.8 +12.8% +12.8% Asia Pacific 21% 30.2 28.3 +6.7% +5.6% Americas 14% 20.8 19.2 +8.2% +11.5% Group Total 100% 145.3 137.1 +6.0% +10.6% 13
Slide 14: EMEA (38% of Group) – Year-on-Year Gross Profit
EMEA (38% of Group) – Year-on-Year Gross Profit Reported (£m) Constant 2015 2014 % % Q2 55.1 54.8 +0.6% +11.4% H1 109.2 107.5 +1.6% +11.8% Headcount at 30 June 2015: 2,154 (31 December 2014: 2,113) Q2 Highlights • Page Personnel (43% of EMEA) +16%, • France (12% of Group) +7% - Page Personnel (Temp/
Slide 15: United Kingdom (27% of Group) – Year-on-Year Gross Profit
United Kingdom (27% of Group) – Year-on-Year Gross Profit Reported (£m) 2015 2014 % Q2 39.2 34.8 +12.8% H1 75.7 67.6 +12.0% Headcount at 30 June 2015: 1,453 (31 December 2014: 1,441) Q2 Highlights • Michael Page (79% of the UK) +11% on Q2 2014 • Page Personnel (21% of the UK) +21% on Q2 2014 • Stron
Slide 16: Asia Pacific (21% of Group) – Year-on-Year Gross Profit
Asia Pacific (21% of Group) – Year-on-Year Gross Profit Reported (£m) Constant 2015 2014 % % Q2 30.2 28.3 +6.7% +5.6% H1 56.0 51.3 +9.2% +7.9% Headcount at 30 June 2015: 1,138 (31 December 2014: 1,141) Q2 Highlights • Overall record quarter for Asia Pacific • Asia (15% of Group and 73% of Asia Pacif
Slide 17: Americas (14% of Group) – Year-on-Year Gross Profit
Americas (14% of Group) – Year-on-Year Gross Profit Reported (£m) Constant 2015 2014 % % Q2 20.8 19.2 +8.2% +11.5% H1 40.1 37.3 +7.5% +9.4% Headcount at 30 June 2015: 877 (31 December 2014: 883) Q2 Highlights • North America (7% of the Group) +21% • Record quarter for the US and Canada • Exceptional
Slide 18: Business Strategy
Slide 19: Large, High Potential Markets
Large, High Potential Markets Record quarter for Large, High Potential Markets Large, High Potential Achieved Markets: H1 2015 Germany +10.7% 1,418 Gross Profit 30.7% China Fee-earners of Group South-East Asia US Latin America H2 2015 objectives • Grow existing offices/brands/disciplines • No new of
Slide 20: Large, Proven Markets
Large, Proven Markets Strong performance across the category Achieved Large, Proven H1 2015 Achieved Markets: H1 2015 +11.5% 2,226 55.1% UK Gross Profit Fee-earners of Group France Australia Netherlands Italy Spain H2 2015 objectives • Ongoing productivity and conversion rate improvements • Continue
Slide 21: Medium & Small, High Margin Markets
Medium & Small, High Margin Markets Medium & Small, Achieved 8% Gross Profit growth in H1, 12% excluding Russia High Margin Markets: Achieved Achieved H1 2015 Austria H1 H12015 2015 Belgium Canada +8.0% 659 14.2% India Gross Profit Fee-earners of Group Ireland Japan Luxembourg Morocco H2 2015 object
Slide 22: PRS: Page Advertising, Page Manage, Page Search
PAGE PAGE MANAGE ADVERTISING NEXT GEN APPLICATIONS • Post adverts to • Review and filter WEBSITE PageGroup candidate websites and applications and external job send to the CRM for boards progression • Real time job board and candidate response tracking PAGE PAGE MANAGE ADVERTISING APPLICATIONS CV CA
Slide 23: % Headcount Covered
% Headcount Covered JUNE ‘15 PRS PRS 53% 80% NEXT GEN WEBSITE 60% 80% COLLABORATION TOOLS 100 % 2014 END 2015 “PRS significantly improves the quality and speed of instant information available to our consultants greatly enhancing the end to end sales cycle.” “One of the biggest impacts has been arou
Slide 24: Summary & Outlook
Summary & Outlook
Slide 25: Summary
Summary • Impact of FX: Q2 reported Gross Profit reduced by 4.6 percentage points or £6.2m Summary H1 reported Gross Profit reduced by 4.2 percentage points or £11.0m, reported Operating Profit by £2m • Q2 Gross Profit: +10.6% in constant currency and +6.0% in reported rates - Large, High Potential
Slide 26: Outlook
Outlook • Trends in market conditions expected to continue across major regions - Activity levels remain strong across most markets Summary - Brazil expected to remain challenging in the short-term Outlook - Page Personnel progressing strongly • Adverse effect of foreign exchange movements to contin
Slide 27: Recognition: external awards
Recognition: external awards
Slide 28: Year-on-Year Gross Profit Growth Rates
Year-on-Year Gross Profit Growth Rates 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 EMEA -15.0% -8.2% -7.1% -1.4% +5.7% +5.1% +11.2% +12.5% +12.1% +11.4% UK -1.2% +0.3% +5.0% +5.1% +8.1% +11.1% +13.7% +11.0% +11.3% +12.8% Asia Pacific -0.3% -8.0% -4.3% -5.7% +1.3% +14.2% +11.1% +10.8% +10.8% +5.6% -
Slide 29: Cautionary Statement
29 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
Slide 30: Page
Page Michael Page Page Personnel Part of PageGroup