PageGroup PLC · LSE:PAGE
PageGroup — FY2015 Earnings Presentation
25 slides from PageGroup's earnings presentation, March 2016
Slide 1: Full Year Results 2015
PageGroup Full Year Results 2015
Slide 2: Agenda
Agenda Financial Review Regional Review Business Strategy Summary and Outlook
Slide 3: 2015 Group Financial Highlights
3 2015 Group Financial Highlights 2015 vs 2014 constant Gross Profit £556.1m 4.4% 9.3% Operating Profit before exceptional items £90.1m 14.8% 20.2% Profit before tax £90.7m 15.6% Diluted EPS before exceptional items 21.3p 15.8% Net cash £95.0m £5.0m Special Dividend 16.0p Total Ordinary Dividend (pr
Slide 4: Financial Review
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Slide 5: Income Statement
5 Income Statement Constant currency £m 2015 2014 Change change Revenue 1,064.9 1,046.9 +1.7% +7.1% Gross Profit 556.1 532.8 +4.4% +9.3% Operating Profit before exceptional items 90.1 78.5 +14.8% +20.2% Exceptional items - 1.6 Net interest income 0.6 0.3 Profit before tax 90.7 78.4 +15.6% Taxation i
Slide 6: Operating Costs
6 Operating Costs Support staff as % of Group headcount % FY15 77:23 £m 9% Actual % Constant % 2014 6% Employee 357.9 +5% 375.8 +11% 340.0 10% Other 108.1 -6% 112.6 -2% 114.4 costs Total 466.0 +3% 487.9 +7% 454.4 75% Headcount 2015 2014 % 2007 2008 2009 2010 2011 2012 2013 2014 2015 5,835 5,578 +4.6
Slide 7: Impact of Foreign Exchange
7 Impact of Foreign Exchange Constant Actual vs Actual Gross Profit (£m) Currency Constant Rates UK 151.6 – 151.6 EMEA 237.3 (20.3) 217.0 Asia Pacific 110.7 (1.6) 109.1 Americas 82.5 (4.1) 78.4 Group 582.1 (26.0) 556.1 Operating Profit 94.2 (4.1) 90.1 2015 impact: • Gross profit reduced by c. 5% or
Slide 8: Group Effective Tax Rate (ETR)
8 Group Effective Tax Rate (ETR) 2015 2014 % Profit Before Tax 90.7 78.4 +15.6 Tax Charge 24.5 21.0 +16.4 Underlying * 29.4 31.0 US losses and deferred tax on share plans (2.4) (3.1) ETR before exceptional items 27.0 27.9 Exceptional items - (1.7) ETR after exceptional items 27.0% 26.2% * Including
Slide 9: Permanent vs Temporary
9 Permanent vs Temporary PageGroup Michael Page Page Personnel £m 2015 2014 Growth rates 2015 2014 Growth rates 2015 2014 Growth rates Constant Constant Constant Reported Reported Reported Gross Profit Currency Currency Currency Permanent 424.0 406.4 +4.3% +8.9% 339.1 328.1 +3.3% +7.1% 84.9 78.3 +8.
Slide 10: Balance Sheet
10 Balance Sheet £m 2015 2014 Intangible assets 36.3 38.5 Tangible assets 21.4 21.8 57.7 60.3 Trade and other receivables 217.4 204.9 Trade, other payables, current and deferred taxes (148.3) (139.0) 69.1 65.9 Net cash 95.0 90.0 Net assets 221.8 216.2 • Strong balance sheet with £95.0m net cash at 3
Slide 11: Cash Flow
11 Cash Flow (£m) 225 200 (11.4) (18.3) 175 22.6 (14.8) 150 113.1 (85.1) 125 100 (1.1) 75 95.0 90.0 50 Dec 2014 EBITDA Working Capital Tax and net interest Net Capex Net Option exercises Dividends Paid Exchange Dec 2015 Cash Increase Decrease • Increase in ordinary dividends paid; additional £50m sp
Slide 12: Dividends
12 Dividends 2015 2014 (Pence per Share) £m (Pence per Share) £m Interim 3.60 11.3 3.42 10.5 Final 7.90 24.7 7.58 23.7 Special 16.0 50.1 - - Total 27.5 86.1 11.0 34.2 Number of shares (m) 313.3 306.5 • Final dividend proposed of 7.90p (+4.2%) • Payable on 20 June 2016 • Special dividend paid in Octo
Slide 13: Regional Review
Slide 14: Review of Operations
14 Review of Operations • Gross profit records for the Group, North America, South East Asia and Gross 17 of our 35 countries profit +9% • Challenging conditions in Brazil, Australia and the Middle East • Slowdown in Greater China, and the UK in the fourth quarter • Fee-earner to support staff ratio
Slide 15: Regional Results Summary
15 Regional Results Summary UK (27%*) +9.6% gross profit Asia Pacific (20%*) 1,099 FE headcount (+6.8%) +4.9% gross profit 19.3% conversion 915 FE headcount (+5.5%) £29.2m operating profit 20.8% conversion £22.7m operating profit Americas (14%*) +7.4% gross profit 686 FE headcount (-5.1%) EMEA (39%*
Slide 16: Europe, Middle East, Africa
16 Europe, Middle East, Africa 26% Reported Constant 32% £m 2015 2014 rates currency Gross Profit by geography Gross Profit 6% 217.0 212.0 +2.3% +11.9% 21% 15% Operating Profit 31.9 30.1 +5.9% +18.5% Conversion 14.7% 14.2% +0.5pts +0.8pts France S. Europe Other Germany ME & Africa Headcount 2,295 2,
Slide 17: United Kingdom
17 United Kingdom 16% 38% £m 2015 2014 Change Gross Profit by Gross Profit 151.6 138.4 +9.6% 24% geography Operating Profit 29.2 24.1 +21.5% 22% Conversion 19.3% 17.4% +1.9pts London North South Midlands Headcount 1,516 1,441 +5.2% • Strong regional performance from London +12% • Key discipline perf
Slide 18: Asia Pacific
18 Asia Pacific 18% £m 2015 2014 Reported rates Constant currency 87:13 27% Gross Profit by geography Gross Profit 109.1 105.5 +3.4% +4.9% 44% 11% Operating Profit 22.7 20.0 +13.7% +15.1% Conversion 20.8% 18.9% +1.9pts -0.1pts SE Asia & India Japan Greater China Australasia Headcount 1,180 1,141 +3.
Slide 19: Americas
19 Americas £m 2015 2014 Reported Constant rates currency 48% Gross 19% Profit by Gross Profit 78.4 76.9 +2.0% +7.4% geography Operating Profit 6.2 4.3 +44.9% +46.6% 7% 26% Conversion 7.9% 5.6% +2.3pts -0.3pts Brazil Canada Rest of LatAm Headcount 844 883 -4.4% USA • LatAm region ex-Brazil (58%): +2
Slide 20: Business Strategy
Slide 21: Market Categories
21 Market Categories Large, High Medium & Small, Large, Proven Category Potential High Margin Germany, Greater China, Australia, France, Canada, India, Countries/regions Latin America, Holland, Italy, Japan, New Zealand, SE Asia, US Spain, UK smaller EMEA countries % Group gross profit 30.7% 55.4% 1
Slide 22: Summary & Outlook
Summary & Outlook
Slide 23: Summary and Outlook
23 Summary and Outlook • Record gross profit performance, with EMEA +12% • Record fee-earner headcount & support staff ratio Summary • Good progress on PRS roll-out and SSC transition • Conversion rate increased by 1.5% to 16.2% • Total Dividends paid of £85.1m; year end cash balance £95m • Q1 tradi
Slide 24: Cautionary Statement
24 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 25: Page
Page Michael Page Page Personnel Part of PageGroup