First Quarter 2014 Interim Management Statement 15 April 2014
PageGroup First Quarter 2014 Interim Management Statement | 2 Overview Group Gross profit FX headwinds • +7% vs Q1 2013 in Impact of FX in Q1: constant currency • £9m - Gross profit • £1m - Operating profit Headcount 2014 investment • • Other investment +105 fee earners • Cost base impact of £4m • Total increased by +3% • 5,285 at end-Q1
PageGroup First Quarter 2014 Interim Management Statement | 3 Trading performance Group Growth Rates £m Q1 2014 Q1 2013 Reported Constant Y-on-Y Q1 Gross profit 126.6 126.8 -0.2% +6.8% • Gross profit up 7% vs Q1 2013 in constant currency • In reported rates gross profit broadly flat • At constant currency, Gross profit would be £135m (+c.£9m on reported rates)
PageGroup First Quarter 2014 Interim Management Statement | 4 Permanent vs Temporary Group Perm/Temp Gross Profit Q1 2014 Q1 2013 Growth Rates £m £m Reported Constant Permanent 97.7 97.9 -0.2% +7.4% Temporary 28.9 28.9 -0.1% +4.6% Ratio (Perm:Temp) 77:23 77:23 • Permanent growth ahead of temporary • Perm:Temp ratio up sequentially from 75:25 in Q4 2013
PageGroup First Quarter 2014 Interim Management Statement | 5 Group Group quarterly headcount and reported gross profit • Headcount increased by +3% during Q1 to 5,285 (Q4 2013: 5,130) • Headcount increase particularly in high potential markets: Germany, Asia, US
PageGroup First Quarter 2014 Interim Management Statement | 6 Investment impact on 2014 cost base: £4m Group Operating system and related applications roll-out • New website live across Asia Pacific • Wider Group roll-out plans accelerated into 2014 Continued focus on achieving improvements & global consistency across our operational support teams • Investments in a number of key senior roles Increased senior management relocations into growth markets • Directors worldwide: 2014: 300; 2007: 170 • Reduces costs in challenging markets, e.g. Australia, Brazil • Strong retention tool
PageGroup First Quarter 2014 Interim Management Statement | 7 Discipline overview Group Gross Profit Q1 2014 Q1 2013 Growth Rates Proportion £m £m Reported Constant Finance & Accounting 39% 49.9 52.1 -4.2% +2.1% Legal, Technology, HR, 20% 25.9 26.1 -0.7% +7.0% Secretarial and Healthcare Engineering, Property & 21% 26.0 25.1 +3.6% +10.8% Construction, Procurement & Supply Chain 20% 24.8 23.5 +5.3% +12.5% Marketing, Sales & Retail Group Total 100% 126.6 126.8 -0.2% +6.8%
PageGroup First Quarter 2014 Interim Management Statement | 8 Regional overview Group Gross Profit Q1 2014 Q1 2013 Growth Rates Proportion £m £m Reported Constant 42% 52.7 52.0 +1.3% +5.6% EMEA 26% 32.8 30.3 +8.1% +8.1% UK Asia Pacific 18% 23.0 26.1 -11.8% +1.2% 14% 18.1 18.4 -1.5% +15.6% Americas Group Total 100% 126.6 126.8 -0.2% +6.8% • 20 countries grew in excess of 10%* • Year-on-year quarterly growth in 31 of 35 countries* * In constant currency
PageGroup First Quarter 2014 Interim Management Statement | 9 Year-on-Year Gross profit growth rates Group 2013 2014 Q1 Q2 Q3 Q4 Q1 EMEA -15.0% -8.2% -7.1% -1.4% +5.6% -1.2% +0.3% +5.0% +5.1% +8.1% UK -0.3% -8.0% -4.3% -5.7% +1.2% Asia Pacific Americas +2.1% +9.8% +16.8% +6.7% +15.6% Group Total -6.7% -3.8% -0.3% +0.3% +6.8% In constant currency
PageGroup First Quarter 2014 Interim Management Statement | 10 EMEA Region Growth Rates £m Q1 2014 Q1 2013 Reported Constant Y-on-Y Q1 Gross profit 52.7 52.0 +1.3% +5.6% Headcount up 116 (+6.2%) to 2,002 • France (15% of Group) +7% (-2% in Q4 2013 vs Q4 2012) • Page Personnel (Temp/Perm < € 40,000) 63% of France: +17% • Michael Page (Perm > € 40,000) 37% of France: -7% • Germany (6% of Group) +6% (-1% in Q4 2013 vs Q4 2012) • Spain, Italy, Holland (10% of group): each in positive growth • UAE, Poland & Turkey had record quarters • 11 countries grew >10%, 7 of which grew >30% In constant currency
PageGroup First Quarter 2014 Interim Management Statement | 11 UK Region £m Q1 2014 Q1 2013 Growth Rate Y-on-Y Q1 Gross profit 32.8 30.3 +8.1% Headcount up 31 (+2.4%) to 1,350 • 8 out of 13 disciplines up over 10% • Financial Services broadly flat (now 3% of UK) • Strong performances from newer disciplines of Property & Construction, Digital Marketing, and Buying & Merchandising • Public sector up 18% on Q1 2013 • Private sector up 7% on Q1 2013
PageGroup First Quarter 2014 Interim Management Statement | 12 Asia Pacific Region Growth Rates £m Q1 2014 Q1 2013 Reported Constant Y-on-Y Gross profit 23.0 26.1 -11.8% +1.2% Headcount flat (+1) at 1,112 • Asia (12% of Group and 66% of Asia Pacific) +9% • China up 5% on Q1 2013 - replacing Australia as the region’ s largest market and now third largest in the Group • Australia and New Zealand (6% of Group and 34% of Asia Pacific) -10% • Adverse foreign exchange movements continue to impact the region ’s performance • Headcount up in Asia, down in Australia In constant currency
PageGroup First Quarter 2014 Interim Management Statement | 13 Americas Region Growth Rates £m Q1 2014 Q1 2013 Reported Constant Y-on-Y Gross profit 18.1 18.4 -1.5% +15.6% Headcount up 7 (+0.9%) to 821 • North America (6% of the Group) +31% • US, fourth consecutive quarter of over 30% growth • Latin America (8% of the Group) +7% • Recovery from poor Q4 in Brazil +2% New business launched in Peru, our 8 th country in the Americas • • All countries in region grew in constant currencies In constant currency
PageGroup First Quarter 2014 Interim Management Statement | 14 Summary and Shareholder information Group Proposed 2013 final dividend of 7.25p per share to be paid on 23 June AGM to be held on 5 June 2014 Second quarter and H1 trading update on 15 July 2014
PageGroup First Quarter 2014 Interim Management Statement | 15 Cautionary Statement 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, any person or entity in any jurisdiction in any country where such distribution or use would be contrary to law or regulation, or which would subject any member of PageGroup to any registration requirement. Certain statements included or incorporated by reference within this presentation may constitute “forward -looking statements” that are based on current expectations or beliefs, as well as assumptions about future events. There are risk factors that can cause actual results to differ materially from those expressed in or implied by such statements. Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement. PageGroup disclaims any intention or obligation to revise or update any forward-looking statements that may be made in this presentation, regardless of whether those statements are affected as a result of new information, future events or otherwise. Nothing in this presentation should be construed as a profit forecast. This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decision relating thereto, nor does it constitute a recommendation regarding the shares of the Company. Past performance cannot be relied upon as a guide to future performance. Liability arising from anything in this presentation shall be governed by English Law. Nothing in this presentation shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.
PageGroup 2013 half year results | 16
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