PageGroup PLC · LSE:PAGE
PageGroup — H1 2022 Earnings Presentation
26 slides from PageGroup's earnings presentation, Aug 8, 2022
Slide 1: Half Year Results 2022
Overview Financial Review Strategic Review Summary Half Year Results 2022
Slide 2: Headline Numbers
Overview Financial Review Strategic Review Summary Headline Numbers Kelvin Stagg Chief Financial Officer
Slide 3: Record Group operating profit, up 79%
Overview Financial Review Strategic Review Summary Record Group operating profit, up 79% Key financial highlights Gross Profit £538.9m Operating £115.3m £404.2m H1 2021 Profit £64.3m H1 2021 Constant Currency Conversion vs 2021 +33.3% Rate 21.4% 15.9% H1 2021 +26% Basic EPS 25.6p +26% Interim Divide
Slide 4: Financial Review
Overview Financial Review Strategic Review Summary Financial Review
Slide 5: Strong gross profit growth
Overview Financial Review Strategic Review Summary Strong gross profit growth Further investment made in headcount 7000 300 6000 250 5000 Gross Profit (£m) as reported 200 4000 Fee Earners 150 3000 100 2000 50 1000 0 0 Q4 Q1 Q2 Q4 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q4 Q3 Q1 Q2 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q1 Q3
Slide 6: Improvement in conversion across all regions
Overview Financial Review Strategic Review Summary Improvement in conversion across all regions Gross profit per fee earner up 9.2% on H1 2021 H1 2022 H1 2021 GP Growth Operating Conversion Operating Conversion £m Gross Profit Gross Profit Rate (CC %) Profit Rate Profit Rate Group 538.9 +33.3% 115.3
Slide 7: Technology strongest performing discipline
Overview Financial Review Strategic Review Summary Technology strongest performing discipline Strong growth in each discipline H1 2022 £m 2021 £m Reported % Constant % 14% 31% Finance Accounting and Financial 168.4 130.2 +28.9% +29.2% Services Gross Profit by 24% Discipline Professional Services Leg
Slide 8: Effective Tax Rate (ETR)
Overview Financial Review Strategic Review Summary Effective Tax Rate (ETR) Full year tax rate expected to be in line with 2021 £m HY 2022 FY 2021 Profit Before Tax 114.5 166.6 Tax Charge 33.0 48.3 Effective Tax Rate 28.8% 29.0% • HY 2022 tax rate in line with FY 2021 • Expect tax rate of c. 29% for
Slide 9: Robust Balance Sheet
Overview Financial Review Strategic Review Summary Robust Balance Sheet Net cash of £136.2m £m H1 2022 H1 2021 Intangible assets 44.8 45.6 Tangible assets 33.3 23.3 Lease assets 93.2 83.8 Trade and other receivables 454.3 317.1 Trade, other payables, current and deferred taxes (272.9) (196.4) Lease
Slide 10: Strong cash flow generation
Overview Financial Review Strategic Review Summary Strong cash flow generation EBITDA of £151.8m due to improved trading conditions 320 280 59.3 240 151.8 30.2 19.0 200 £m 17.1 14.8 160 246.5 216.3 32.7 0.3 3.2 197.3 180.2 165.4 120 154.0 154.0 132.7 132.7 133.0 136.2 80 Dec 21 EBITDA Working Tax an
Slide 11: Strategic Review
Overview Financial Review Strategic Review Summary Strategic Review
Slide 12: Productivity
Overview Financial Review Strategic Review Summary Productivity Increase due to favourable trading conditions • Strong gross profit growth driven by increased fee rates and placement count, with video interviewing and talent shortages demanding faster decision making and reducing time to hire • Prod
Slide 13: Clear capital allocation strategy
Overview Financial Review Strategic Review Summary Clear capital allocation strategy £100m total dividend to be paid in October 1st use of cash 2nd use of cash 3rd use of cash To satisfy operational To maintain the and investment ordinary dividend To make supplementary requirements, and to through d
Slide 14: Track record of Shareholder returns
Overview Financial Review Strategic Review Summary Track record of Shareholder returns Committed to consistently returning cash to shareholders 140 120 100 85 80 £m 60 50 40 42 83 40 60 30 20 40 16 34 15 24 48 20 14 38 41 41 35 36 27 29 31 31 31 22 26 25 14 18 13 12 13 0 1 2001 2002 2003 2004 2005 2
Slide 15: Sustainability
Overview Financial Review Strategic Review Summary Sustainability Strong progress against our four targets TARGET To positively Increase change over gender one million lives diversity in the ten years to within our senior 2030 management to 50/50 by 2030 Establish a To become carbon net zero meaning
Slide 16: Summary
Overview Financial Review Strategic Review Summary Summary
Slide 17: Strong financial performance
Overview Financial Review Strategic Review Summary Strong financial performance £100m total dividend to be paid in October Strong performance across our geographies, disciplines and brands Operating profit up nearly 80%, Conversion rate increased to 21.4% Record productivity levels, up 9% on H1 2021
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 Large, High 10% 15% Potential Markets 17% 16% 39% 30% Large Established Markets Small and Medium, High Margin 73% 55% 45% Markets FY 2007 FY 2013 H1 2022 Accountancy & 33% 54% 41% Financial Services All O
Slide 20: Significant variations in recruitment mix
Significant variations in recruitment mix Geography Brands 13% 10% 15% 23% 29% 41% 87% 90% 85% 77% 71% 59% Michael Page Page Personnel EMEA Asia Pacific Americas UK Temp Perm 20
Slide 21: Long term fee earner & international growth
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 3,036 2,000 1,477 1,278 1,000 943 - 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 202
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 H1 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2
Slide 23: Year-on-Year Gross Profit Rates
Year-on-Year Gross Profit Rates 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 EMEA -11.1% -42.9% -24.5% -18.6% +3.6% +75.8% +45.8% +48.0% +41.1% +29.4% Asia Pacific -16.6% -41.7% -28.2% -10.2% +15.3% +89.7% +68.2% +48.7% +35.8% +11.7% – Asia -17.1% -38.1% -23.4% -4.3% +22.2% +93.1.% +69.0% +50.4% +39
Slide 24: 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 25: Contacts and Calendar
Contacts and Calendar Contacts Date Event Matt Clark – Deputy Group Financial Controller 8 August 2022 Interim Results 2022 Tel: +44 (0) 1932 264 022 Email: investorrelations@michaelpage.com Web: https://www.page.com/investors 25
Slide 26: Overview Financial Review Strategic Review
Overview Financial Review Strategic Review Summary