PageGroup PLC · LSE:PAGE
PageGroup — Q3 2019 Earnings Presentation
25 slides from PageGroup's earnings presentation, Oct 8, 2019
Slide 1: Q3 2019 Trading Update
8 October 2019 Steve Ingham Chief Executive Officer Q3 2019 Trading Update Kelvin Stagg Chief Financial Officer LSE: PAGE.L Website: https://www.page.com/investors
Slide 2: Headline Numbers
Headline Numbers Steve Ingham, Chief Executive Officer
Slide 3: Slowdown in growth rate to +2.1%
Headline Numbers Financial Review Regional Review Summary Q3 19 Slowdown in growth rate to +2.1% Key financial highlights Gross Profit £216.7m Growth in +2.1% Constant £207.9m Q3 2018 +7.4% Q2 2019 Currency Reported +4.2% Rates +7.9% Q2 2019 Michael Page +2.1% Net Cash c. £92m +6.2% Q2 2019 c. £82m
Slide 4: Financial Review
Financial Review Kelvin Stagg, Chief Financial Officer
Slide 5: Perm and Temp ratio
Headline Numbers Financial Review Regional Review Summary Q3 19 Perm and Temp ratio Business balance reflects brands and geographic mix 17% 25% 44% 56% 75% 83% Perm Temp Perm Temp Perm Temp • Gross Profit growth in • Gross Profit growth in • Gross Profit growth in permanent +0.1% to £162.4m permanen
Slide 6: Financial disciplines strongest performing
Headline Numbers Financial Review Regional Review Summary Q3 19 Financial disciplines strongest performing Technology now c. 8% of the Group 17% Q3 2019 £m 2018 £m Reported % Constant % 36% Finance Accounting and Financial Gross Profit 78.3 72.5 +7.9% +6.1% Services by Discipline Professional Servic
Slide 7: Focus on productivity: Headcount
Headline Numbers Financial Review Regional Review Summary Q3 19 Focus on productivity Ratio of fee earners to support staff maintained at 78:22 Total headcount • Increase in fee earners of 46 (+0.8%) +0.3% 8,000 • Fee earners added where we saw greatest growth, mainly into Germany, India and the US
Slide 8: Gross Profit (£m) as reported
Gross Profit (£m) as reported 50 0 100 200 250 150 Q1 49.5 Q2 51.4 Q3 47.8 Headline Numbers Q4 43.9 Q1 42.8 Q2 45.0 Q3 45.0 Q4 45.7 Q1 48.1 Q2 52.3 Q3 53.5 Q4 56.7 Q1 59.9 Q2 68.3 Q3 69.2 Q4 70.2 Q1 79.2 Q2 87.4 Q3 89.1 Q4 93.1 Q1 105.5 Q2 121.0 Q3 123.4 Q4 128.2 Q1 140.3 Q2 152.4 Q3 141.3 Q4 118.7
Slide 9: Regional Review
Regional Review Steve Ingham, Chief Executive Officer
Slide 10: Group growth rate slowed to 2.1%
Headline Numbers Financial Review Regional Review Summary Q3 19 Group growth rate slowed to 2.1% Slower growth in all regions • Large, High Potential markets* (37% of Group) +4% • Growth in Europe and Americas regions, but slower than Q2 • APAC impacted by trade tariffs and social unrest 16% • UK fu
Slide 11: EMEA
Headline Numbers Financial Review Regional Review Summary Q3 19 EMEA Growth slowed from Q2 • Michael Page (56% of EMEA) +9%, Page Personnel (44%) +2% • France, representing 15% of the Group, slowed to +2% Other 15% • Germany +16%, stand out performance, with Michael Page Interim France +28% 31% • Be
Slide 12: Asia Pacific
Headline Numbers Financial Review Regional Review Summary Q3 19 Asia Pacific Impacted by trade tariffs and social unrest in Hong Kong • Greater China, 8% of the Group, -24%, against a particularly tough comparator of +31% Japan & • South-East Asia +11% India 21% • Japan +5% Greater China 38% • India
Slide 13: Americas
Headline Numbers Financial Review Regional Review Summary Q3 19 Americas Our fastest growing region • US +14%, driven by strong performances from offices outside New Canada 4% York Rest of Latam • Slowdown in New York Financial Services 15% • Latin America +17%; Mexico +13%, Brazil +25% • Collective
Slide 14: Heightened Brexit related uncertainty
Headline Numbers Financial Review Regional Review Summary Q3 19 UK Heightened Brexit related uncertainty • Michael Page and Page Personnel both -4% Midlands • Increased reluctance by candidates to accept new jobs 16% • Clients taking longer to make decisions; some jobs cancelled or put on hold Londo
Slide 15: Summary & Outlook
Summary & Outlook
Slide 16: Summary & Outlook
Headline Numbers Financial Review Regional Review Summary Q3 19 Summary & Outlook Slowdown in growth in all regions Decrease in Group Gross Profit growth rate to +2.1% Increased macro-economic and political uncertainty Fee Earners up by 46, Operational Support down by 20 Business model enables us to
Slide 17: Appendix
Appendix
Slide 18: Our business model
Headline Numbers Financial Review Regional Review Summary Our business model Q3 19 18
Slide 19: A growing international business
Headline Numbers Financial Review Regional Review Summary A growing international business Q3 19 Delivering on our global diversification strategy Gross Profit 16% 24% 39% 61% 76% 84% FY 2007 FY 2013 Q3 2019 UK International 19
Slide 20: Significant variations in recruitment mix
Headline Numbers Financial Review Regional Review Summary Q3 19 Significant variations in recruitment mix Geography Brands 13% 12% 17% 33% 31% 44% 87% 88% 83% 67% 69% 56% EMEA Asia Pacific UK Americas Michael Page Page Personnel Temp Perm 20
Slide 21: Long term fee earner and international growth
Headline Numbers Financial Review Regional Review Summary Q3 19 Long term fee earner and international growth ASIA 7,000 EMEA AMERICAS UK PACIFIC 6,081 Fee Earner Headcount 6,000 5,000 4,000 3,000 EMEA 2,000 APAC 1,000 Americas UK - 1985-1990 1990-1999 2000 2001 1990-99 2000 2001 2002 2002 2003 2003
Slide 22: Fee earner investment and support staff
Headline Numbers Financial Review Regional Review Summary Fee earner investment and support staff Q3 19 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 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 23: Year-on-Year Gross Profit Rates
Headline Numbers Financial Review Regional Review Summary Year-on-Year Gross Profit Rates Q3 19 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 EMEA +14.8% +13.2% +12.6% +19.3% +18.2% +18.6% +20.9% +13.9% +11.4% +9.0% +5.6% Asia Pacific +3.9% +6.8% +13.9% +14.9% +13.8% +18.4% +27.7% +22.0% +14.9% +4
Slide 24: Contacts and Calendar
Headline Numbers Financial Review Regional Review Summary Q3 19 Contacts and Calendar Contacts Date Event Jeremy Tatham – Group Financial Controller 14 January 2020 Q4 2019 Trading Update Tel: +44 (0) 1932 264 143 5 March 2020 FY 2019 Results Email: investorrelations@michaelpage.com Web: https://www
Slide 25: Disclaimer
Headline Numbers Financial Review Regional Review Summary Q3 19 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