SLIDE 1
PageGroup First Quarter Interim Management Statement | 1
Fourth Quarter and Full Year Trading Update 14 January 2014
SLIDE 2 PageGroup Fourth Quarter and Full Year Trading Update | 2
Group
Gross Profit up year-on-year
Growth Rates GROUP GROSS PROFIT £m £m Reported Constant Q4 2013 vs Q4 2012 125.0 126.5
+0.3% FY 2013 vs FY 2012 513.9 526.9
- 2.5%
- 2.7%
- Gross profit up +0.3% against 2012 in constant currency
- Focus on consistency of systems and processes in operational support continues
- Headcount increased by 59 (+1.2%) during Q4 to 5,130 (Q3 2013: 5,071)
- Fee Earner headcount up 5% during 2013, by 186 to 3,810
- Support headcount down 10% during 2013, by 155 to 1,320
- Full year operating profit excluding exceptional expected to be around £68m
SLIDE 3 PageGroup Fourth Quarter and Full Year Trading Update | 3
Group
Year-on-year growth in temp activity
Q4 2013 Q4 2012 Growth Rates PERM/TEMP GROSS PROFIT £m £m Reported Constant Permanent 93.6 96.4
Temporary 31.4 30.1 +4.3% +4.5% Ratio (Perm:Temp) 75:25 76:24 FY 2013 FY 2012 Growth Rates PERM/TEMP GROSS PROFIT £m £m Reported Constant Permanent 392.4 409.7
Temporary 121.5 117.2 +3.7% +2.5% Ratio (Perm:Temp) 76:24 78:22
SLIDE 4
PageGroup Fourth Quarter and Full Year Trading Update | 4
Group
Increase in headcount reflecting more positive outlook
GROUP QUARTERLY HEADCOUNT AND GROSS PROFIT ¡
SLIDE 5 PageGroup Fourth Quarter and Full Year Trading Update | 5
Group
Creating greater opportunity for future growth
Q4 2013 Q4 2013 Q4 2012 Growth Rates GROSS PROFIT Proportion £m £m Reported Constant Finance & Accounting 42% 52.2 53.1
Legal, Technology, HR, Secretarial and Healthcare 20% 25.6 26.5
Engineering, Property & Construction, Procurement & Supply Chain 19% 24.0 24.1
+0.7% Marketing, Sales & Retail 19% 23.2 22.8 +2.0% +3.4% Group Total 100% 125.0 126.5
+0.3%
- Marketing, Sales & Retail recorded strongest growth rates
- Best performance in Oil & Gas, growing by 36% in reported rates
- Financial Services stable at 7% of Group gross profit
SLIDE 6 PageGroup Fourth Quarter and Full Year Trading Update | 6
Group
Q4 2013 Q4 2013 Q4 2012 Growth Rates GROSS PROFIT Proportion £m £m Reported Constant EMEA 42% 52.0 51.4 +1.1%
UK 25% 31.8 30.2 +5.1% +5.1% Asia Pacific 19% 24.2 27.9
Americas 14% 17.0 17.0 +0.2% +6.7% Group Total 100% 125.0 126.5
+0.3%
- Gross Profit up +0.3% in constant currency
- Strong growth in UK, UAE, US, Japan, Spain and Malaysia
- Year-on-year quarterly growth in 18 countries
Growth in UK, Asia and Americas, significant improvement in EMEA
SLIDE 7 PageGroup Fourth Quarter and Full Year Trading Update | 7
Group
FY 2013 FY 2013 FY 2012 Growth Rates GROSS PROFIT Proportion £m £m Reported Constant EMEA 40% 207.7 218.4
UK 24% 124.1 121.4 +2.2% +2.2% Asia Pacific 21% 105.8 114.9
Americas 15% 76.3 72.2 +5.6% +8.8% Group Total 100% 513.9 526.9
- 2.5%
- 2.7%
- Continued investment in key markets – US, Germany, Latin America, Greater China and
South East Asia
- US and Mexico driving Americas growth (+35% in constant currency)
- Asia Pacific impacted by difficult trading conditions in Australia and currency movements
- Year-on-year full year growth in 20 countries, 13 countries had record years
- Market leader in many markets that offer substantial long-term potential for growth
Year-on-year growth in 20 countries, 13 countries had record years
SLIDE 8 PageGroup Fourth Quarter and Full Year Trading Update | 8
Group
Positive Gross Profit growth at Group level returns
Growth rates in local currency
- Year-on-year growth rates show significant improvement in EMEA
- Two consecutive quarters of 5% growth in UK
- Asia Pacific impacted by Australia
- Growth in the Americas was +26% in Q4 in constant currency excluding Brazil
2012 vs 2011 2013 vs 2012 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EMEA +10.1%
- 2.5%
- 7.2%
- 10.9%
- 15.0%
- 8.2%
- 7.1%
- 1.4%
UK
- 3.7%
- 9.2%
- 10.9%
- 2.1%
- 1.2% +0.3%
+5.0% +5.1% Asia Pacific +17.8% +11.2% +2.6% +10.1%
Americas +7.6%
+2.1% +9.8% +16.8% +6.7% Group Total +7.6%
- 2.5%
- 6.5%
- 3.6%
- 6.7%
- 3.8%
- 0.3% +0.3%
SLIDE 9 PageGroup Fourth Quarter and Full Year Trading Update | 9
EMEA
Significant improvement in growth rate
- France (15% of the Group) -2% on Q4 2012 (-7% in Q3 2013)
- Page Personnel (Temp/Perm < €45,000) 62% of France +9% in Q4
- Michael Page (Perm > €45,000) 38% of France -16% in Q4
- Germany (6% of the Group) -1% on Q4 2012 (-16% in Q3 2013)
- Spain continues to perform well +20% on Q4 2012
- 6 countries had record years in 2013
- To maintain font as previous
- To maintain font as previous
- To maintain font as previous
Growth Rates EMEA GROSS PROFIT £m £m Reported Constant Q4 2013 vs Q4 2012 52.0 51.4 +1.1%
Headcount up 36 (+1.9%) at 1,886 (Q3 2013: 1,850)
SLIDE 10 PageGroup Fourth Quarter and Full Year Trading Update | 10
United Kingdom
Increased market confidence
- Private sector (87% of UK business) up 4% on Q4 2012
- Public sector (13% of UK business) up 14% on Q4 2012
- Increase in headcount reflecting positive outlook
- Page Personnel 20% of UK (Temp/Perm < £45,000) up 19% on Q4 2012
- Property & Construction, Procurement & Supply Chain, Executive Search, Digital
Marketing, and Design disciplines performed well
- Financial Services remains at 4% of UK gross profit
UK GROSS PROFIT £m £m Growth Rates Q4 2013 vs Q4 2012 31.8 30.2 +5.1% Headcount up 16 (+1.2%) to 1,319 (Q3 2013: 1,303)
SLIDE 11 PageGroup Fourth Quarter and Full Year Trading Update | 11
Asia Pacific
Difficult conditions in Australia impacting region’s performance
Growth Rates ASIA PACIFIC GROSS PROFIT £m £m Reported Constant Q4 2013 vs Q4 2012 24.2 27.9
Headcount down 15 (-1.3%) to 1,111 (Q3 2013: 1,126)
- Asia (12% of the Group and 65% of Asia Pacific) +4% on Q4 2012
- Malaysia and Japan had record quarters, combined up 34% on Q4 2012
- Greater China down 4% on Q4 2012 ; 2013 a record year
- Australia and New Zealand (7% of the Group and 35% of Asia Pacific) -18% on Q4 2012
- Difficult trading conditions in Australia and adverse foreign exchange movements continue
to impact the region’s performance
SLIDE 12 PageGroup Fourth Quarter and Full Year Trading Update | 12
Americas
US and Mexico driving growth
Growth Rates AMERICAS GROSS PROFIT £m £m Reported Constant Q4 2013 vs Q4 2012 17.0 17.0 +0.2% +6.7% Headcount up 22 (+2.8%) to 814 (Q3 2013: 792)
- Latin America (8% of the Group) -5% on Q4 2012
- Difficult quarter in Brazil -17% on Q4 2012
- Argentina, Mexico, Chile and Colombia combined grew +20% in constant currency, with
a record quarter for Chile
- North America (6% of the Group) +30% on Q4 2012
- Strong performance led by US up 35% on Q4 2012
SLIDE 13 PageGroup Fourth Quarter and Full Year Trading Update | 13
Financials
Strong financial position
- Strong net cash at 31 December 2013 in the region of £80m (+£19m on December
2012)
- Interim dividend of 3.25p per share paid on 4 October (£10.1m)
- 321m shares outstanding at 31 December 2013 (of which 11m are held in EBT)
- 0.2m options were exercised in Q4
- Amortisation of new software commenced – eight month charge in 2013 was £5.4m
- Exceptional operating profit charge of £2.7m relating to transfer pricing judgement in
Page Personnel France
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PageGroup Fourth Quarter and Full Year Trading Update | 14
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.
SLIDE 15
PageGroup First Quarter Interim Management Statement | 15
