Half Year Results 2012 | August 2012 Michael Page International - - PowerPoint PPT Presentation

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Half Year Results 2012 | August 2012 Michael Page International - - PowerPoint PPT Presentation

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Half Year Results 2012 | August 2012 Michael Page International Half Year Results 2012 | 2 Financial Review Segmental Analysis Strategy Agenda Summary and Outlook Appendices FINANCIAL REVIEW Michael Page International Half Year Results

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SLIDE 1

Half Year Results 2012 | August 2012

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SLIDE 2

Michael Page International Half Year Results 2012 | 2

Agenda

Financial Review Segmental Analysis Strategy Summary and Outlook Appendices

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SLIDE 3

FINANCIAL REVIEW

Michael Page International Half Year Results 2012 | 3

Asia Pacific “Quote” Resilient gross profit performance in challenging conditions

INCOME STATEMENT Before exceptional items H1 2012 £m Exceptional items H1 2012 £m After exceptional items H1 2012 £m H1 2011 £m Change before exceptional items Change before exceptional items at constant currency Revenue 502.6

  • 502.6

502.1 +0.1% +2.6% Gross profit 273.9

  • 273.9

275.1

  • 0.5%

+2.2% Operating profit 36.0 (7.8) 28.2 45.4

  • 20.7%
  • 19.1%

Net interest income 0.1

  • 0.1

0.1 Profit before tax 36.1 (7.8) 28.3 45.5

  • 20.6%

Taxation (12.0) 2.5 (9.5) (15.0)

  • 20.0%

Profit after tax 24.1 (5.3) 18.8 30.5

  • 20.9%

Effective tax rate on profit 33.3% 32.2% 33.5% 33.0% Earnings per share before exceptional items Basic (pence) 7.9 10.0

  • 21.0%

Diluted (pence) 7.8 9.7

  • 19.6%
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SLIDE 4

Michael Page International Half Year Results 2012 | 4

Exceptional item relates to the removal

  • f a management layer for Continental

Europe and the Americas Legacy management structure removed; will not be replaced Severance packages totalled £7 .8m, including £1.5m of accumulated share plan charges Payback c. 2 years Results in a global, unified management structure

FINANCIAL REVIEW

Exceptional item

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SLIDE 5

FINANCIAL REVIEW

Michael Page International Half Year Results 2012 | 5

Regional results

GROSS PROFIT AND OPERATING PROFIT BY REGION Gross profit H1 2012 £m % Group Operating profit (before exceptional items) H1 2012 £m % Group EMEA 117.9 43% 13.4 37% United Kingdom 61.7 22% 8.6 24% Asia Pacific 56.9 21% 13.8 38% Americas 37.4 14% 0.2 1% Group 273.9 100% 36.0 100%

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SLIDE 6

FINANCIAL REVIEW

Michael Page International Half Year Results 2012 | 6

Asia Pacific “Quote” As markets weaken temporary recruitment is more resilient

PERM/TEMP GROSS PROFIT AND GROSS MARGINS Growth Rates Gross profit H1 2012 £m H1 2011 £m Reported Constant currency Permanent 215.7 219.4

  • 1.7%

+0.9% Temporary 58.2 55.7 +4.5% +7 .1% Ratio (Perm:Temp) 79:21 80:20 Permanent 96.9% 96.6% Temporary 20.8% 20.2% Group gross margin 54.5% 54.8%

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SLIDE 7

FINANCIAL REVIEW

Michael Page International Half Year Results 2012 | 7

Asia Pacific “Quote” £21m paid in dividends

CASH FLOW H1 2012 £m H1 2011 £m Operating profit before exceptional items 36.0 45.4 Exceptional items (7.8)

  • Operating profit after exceptional items

28.2 45.4 Depreciation and share scheme charges 13.3 11.5 Increase in underlying working capital (14.0) (35.1) Net cash inflow from operating activities 27.5 21.8 Net interest income 0.1 0.1 Taxation paid (17.5) (19.1) Net capital expenditure (9.6) (13.0) 0.5 (10.2) Dividends paid (20.8) (18.8) Issue of own shares for share options 5.5 1.0 Purchase of own shares

  • (30.3)

Purchase of shares into the employee benefit trust (9.4)

  • Net cash outflow

(24.2) (58.3) Exchange movement (1.5) 1.3 Movement in net cash (25.7) (57 .0)

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SLIDE 8

FINANCIAL REVIEW

Michael Page International Half Year Results 2012 | 8

Asia Pacific “Quote” Strong balance sheet with £32m cash at end of June 2012

BALANCE SHEET 30 June 2012 £m 31 Dec 2011 £m Intangible assets 44.1 39.7 Tangible assets 31.7 33.2 75.8 72.9 Trade and other receivables 206.8 199.1 Trade, other payables current and deferred taxes (135.6) (149.6) 71.2 49.5 Net cash 32.4 58.2 Net assets 179.4 180.6

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SLIDE 9

FINANCIAL REVIEW

Michael Page International Half Year Results 2012 | 9

Asia Pacific “Quote” Half year 2012 dividend maintained at 3.25p

Dividend H1 2012 (pence per share) H1 2012 £m H1 2011 (pence per share) H1 2011 £m Interim dividend 3.25* 9.9* 3.25 9.7 *Proposed and payable on 5 October 2012 Share repurchases H1 2012 shares m H1 2012 £m H1 2011 shares m H1 2011 £m Shares purchased by EBT 2.6 9.4

  • Shares purchased for cancellation
  • 5.7

30.3 2012 shares m 2011 shares m

Weighted average number of shares

Basic (000’s) 305.6 305.8 Diluted (000’s) 309.9 315.5 Shares in issue at 30 June 317.2 316.4

  • No. of options outstanding at 30 June

24.6 23.5

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SLIDE 10

SEGMENTAL ANALYSIS

Michael Page International Half Year Results 2012 | 10

78% of gross profit generated outside of the UK Different growth rates across geographies, rapidly changing shape

  • f the Group

Asia 11% of Group in H1, the greatest source

  • f growth

Headcount +35 (+1%) in H1 2012 (+623 in H1 2011)

GEOGRAPHIC ANALYSIS OF GROSS PROFIT

*Growth rates in local currency

50 100 150 200 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1

£m Headcount

2007

105.5 121.0 123.4 128.1 140.3 152.4 141.3 118.7 95.0 83.8 82.3 90.6 97.9 111.7 112.8 119.8 127.3 147.8 142.6 136.1 135.9 138.0

2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012

HEADCOUNT AND GROSS PROFIT AS REPORTED

1500 3000 4500 6000

PROPORTION OF GROUP GROSS PROFIT

20 40 60 80 100 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1

%

EMEA KEY: United Kingdom Asia Pacific Americas +3%* YOY:

  • 7%

+14%*

  • 1%*

14% 21% 22% 43% H1 2012

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SLIDE 11

SEGMENTAL ANALYSIS

Michael Page International Half Year Results 2012 | 11

Continued diversification avoids exposure to any

  • ne discipline or sector,

e.g. Financial Services 20% of the business (newer disciplines) growing at 14%* Ongoing launch and roll-out of new disciplines

DISCIPLINE ANALYSIS OF GROSS PROFIT

PROPORTION OF GROUP GROSS PROFIT

20 40 60 80 100 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1

%

Finance & Accounting -5%* KEY: Marketing, Sales & Retail +0%* Engineering, Property & Construction, Procurement & Supply Chain +14%* Legal, Technology, HR, Secretarial, Healthcare +9%*

2007 2008 2009 2010 2011 2012

*Growth rates in local currency

50 100 150 200 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1

£m Headcount

2007

105.5 121.0 123.4 128.1 140.3 152.4 141.3 118.7 95.0 83.8 82.3 90.6 97.9 111.7 112.8 119.8 127.3 147.8 142.6 136.1 135.9 138.0

2008 2009 2010 2011 2012

HEADCOUNT AND GROSS PROFIT AS REPORTED

1500 3000 4500 6000 20% 20% 18% 42% H1 2012

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SLIDE 12

SEGMENTAL ANALYSIS

Michael Page International Half Year Results 2012 | 12

20 40 60 80 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 600 1200 1800 2400

£m Headcount

42.0 48.5 48.4 57.5 65.2 70.2 63.7 59.7 47.6 38.2 35.7 42.2 44.6 46.7 44.6 52.8 56.2 64.1 58.3 61.0 60.3 57.6

2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 20 40 60 80 100 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1

%

PROPORTION OF EMEA GROSS PROFIT HEADCOUNT AND GROSS PROFIT AS REPORTED

France KEY: Holland Germany Italy Spain Rest of EMEA** +3%* YOY: +0%* +25%*

  • 15%*
  • 13%*

+6%*

**Rest of EMEA: Austria, Belgium, Ireland, Luxembourg, Morocco, Poland, Portugal, Qatar, Russia, South Africa, Sweden, Switzerland, Turkey, UAE.

8% 6% 25% 16% 8% 37% H1 2012

Broad spread of profit contribution across region Strong growth in Germany, up 25%* Opened new offices in Casablanca and Cape Town

H1 2012 H1 2011 Gross profit £117.9m

  • 2%

£120.3m Operating profit pre exceptional items £13.4m

  • 21%

£17 .0m Headcount 2,185 +3% 2,126

EMEA (43% OF GROUP)

*Growth rates in local currency

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SLIDE 13

SEGMENTAL ANALYSIS

Michael Page International Half Year Results 2012 | 13

£m Headcount

2007 2008 2009 2010 2011 2012

HEADCOUNT AND GROSS PROFIT

25 50 75 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 700 1400 2100 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1

44.1 47.9 49.0 45.0 47.1 48.5 45.0 36.1 28.9 28.1 27.3 26.5 28.9 32.3 33.0 30.7 31.7 34.3 30.6 31.1 33.1 30.9

Market conditions remained difficult in H1 2012 Gained market share in a very competitive market Cautious approach to headcount reflecting current conditions Reduced reliance on Financial Services, now 5% of UK UK continues to be strong source for international transfers

UNITED KINGDOM (22% OF GROUP)

H1 2012 H1 2011 Gross profit £61.7m

  • 7%

£66.0m Operating profit pre exceptional items £8.6m

  • 17%

£10.4m Headcount 1,243

  • 7%

1,343

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SLIDE 14

SEGMENTAL ANALYSIS

Michael Page International Half Year Results 2012 | 14

10 20 30 40 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1

£m Headcount

2007

12.3 14.7 15.4 14.8 16.4 19.6 18.4 12.4 9.5 9.7 10.8 12.2 13.2 20.7 21.4 27.2 29.2 26.3 30.6 25.6

2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 20 40 60 80 100 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1

%

PROPORTION OF ASIA PACIFIC GROSS PROFIT HEADCOUNT AND GROSS PROFIT AS REPORTED

Asia Australia and New Zealand +19%* KEY: +9%* YOY:

300 600 900 1200

18.0 20.3

46% 54% H1 2012

Asia +19%* growth in gross profits Australia and New Zealand +9%* in gross profits June, an all time record in Japan, China and Singapore New offices opened in Taipei and Suzhou

ASIA PACIFIC (21% OF GROUP)

H1 2012 H1 2011 Gross profit £56.9m +17% £48.6m Operating profit pre exceptional items £13.8m +13% £12.2m Headcount 1,050 +20% 874

*Growth rates in local currency

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SLIDE 15

SEGMENTAL ANALYSIS

Michael Page International Half Year Results 2012 | 15

0.0 7.5 15.0 22.5 30.0 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 225 450 675 900

£m Headcount

2007

7.2 9.9 10.6 10.7 11.6 14.1 14.3 10.5 9.0 7.8 8.6 9.6 11.2 14.7 14.9 15.6 18.0 22.3 22.0 18.6 18.7 18.7

2008 2009 2011 2012 2010 2007 2008 2009 2011 2012 2010 20 40 60 80 100 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1

%

PROPORTION OF AMERICAS GROSS PROFIT HEADCOUNT AND GROSS PROFIT AS REPORTED

North America KEY: Latin America

  • 3%*

YOY:

  • 1%*

31% 69% H1 2012

Clear market leader in Latin America with 5 countries, 20 offices and 580 headcount Continuing to invest in platform for future growth Launched in Colombia in Bogota and opened new office in Macaé, Rio de Janeiro In North America conditions remain tough, new Head of North America appointed, transfer from UK (18 years in Group)

AMERICAS (14% OF GROUP)

H1 2012 H1 2011 Gross profit £37.4m

  • 7%

£40.3m Operating profit pre exceptional items £0.2m

  • 97%

£5.8m Headcount 843 +8% 778

*Growth rates in local currency

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SLIDE 16

Michael Page International Half Year Results 2012 | 16

Building the platform for long-term growth by:

  • ฀

Organic฀growth

  • ฀

Meritocratic฀culture

  • ฀

Diversifjcation

  • ฀

Financial฀conservatism

  • ฀

฀ Consistent฀brand฀strategy฀and฀

  • perating model

STRATEGY

Strategy

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SLIDE 17

STRATEGY

Michael Page International Half Year Results 2012 | 17

One clear, consistent strategy of organic growth, continuing diversification by geography and discipline Meritocratic, building trust, clear values and culture, retaining high flyers and entrepreneurs

1 1 1 5

4 14 17 356

16 77 92 2,260 165 3,549 28 216

29 230 186 4,498 34 280 230 5,321

12 years

Cumulative profit before tax

£391m

16 years

Cumulative profit before tax

£25m

2010 2009 2003 1991 1976

6 years

Cumulative profit before tax

£511m

H1 2012

Countries KEY: Country Disciplines Directors Headcount

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SLIDE 18

STRATEGY

Michael Page International Half Year Results 2012 | 18

PROPORTION OF RECRUITMENT THAT IS OUTSOURCED

>70%

KEY:

30-70% <30% Fee Earners Rest of EMEA* Asia Latin America +52% Canada, Germany, Italy, New Zealand, Spain France, Holland and USA Australia and UK +42% +79% +75% +34% +25% +14%

2000 Fee earners 1,657 H1 2012 Fee earners: 3,755 H1 2011

12% 196 49% 1850 11% 13% 10% 15% 30% 501 21% 771 58% 960 30% 1134

+2% +2% +23%

  • 10%
  • 2%
  • 3%
  • 2%

H1 2012 Reported gross profit growth

Business has been transformed over last decade

POSITIONED FOR GROWTH

*Austria, Belgium, Ireland, Luxembourg, Morocco, Poland, Portugal, Qatar, Russia, South Africa, Sweden, Switzerland, Turkey, UAE.

TRACK RECORD (Gross Profit CAGR) Years ’91-’00 ’03-’07 44 42 28 21 28 15 FEE EARNER CHANGE H1 2012 56 (34) (64)

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SLIDE 19

STRATEGY

Michael Page International Half Year Results 2012 | 19

Remains Group’s largest and most established country Strong profit resilience with long-term potential for growth Established and stable management team key to gaining market share

INVESTMENT:

Development of UK

1 1 1 5 100

12 46 612 1,081 51

741 1,863 33 12 69

18 73 970 1,243 22

Disciplines KEY: Directors: Number Directors: Years of Experience Headcount % of Group gross profit

1976 2003 H1 2008 H1 2012

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SLIDE 20

Michael Page International Half Year Results 2012 | 20

STRATEGY

Investing to retain our best people, Directors now 6% of UK staff –

  • c. 3.5% pre-downturn

Depth of management experience enabling us to grow market share profitably Growing talent for newer markets: 66 international transfers out to strengthen

  • verseas management teams in the

last two years Continue roll-out of existing and new disciplines: Design, Life Sciences, Oil & Gas, Logistics

UK: Continued investment for growth

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SLIDE 21

STRATEGY

Michael Page International Half Year Results 2012 | 21

1 1 1 7

3 15 3 69

7 147 3 26

5 42 16 605

H1 2012

Suzhou Taipei

2009 2003

Shanghai

2006

Kowloon

2008

Beijing Shenzen

1996

Singapore

2001

Tokyo

1995

Hong Kong

  • Pacific Place

6 years

Cumulative gross profit

£112.7m

31/2 years

Cumulative gross profit

£137.3m

9 years

Cumulative gross profit

£44.8m

China Singapore Japan Malaysia and India

Countries KEY: Country Disciplines Directors Headcount

New offices opened: Suzhou and Taipei Continued investment in headcount, +17% in H1 2012

INVESTMENT:

Development of Asia

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SLIDE 22

Michael Page International Half Year Results 2012 | 22

STRATEGY

In the last 24 months:

  • ฀

2฀new฀countries฀–฀India฀and฀Malaysia

  • ฀

฀ 9฀new฀offjces,฀now฀16฀in฀the฀region

  • ฀

฀ Investment฀in฀larger฀offjces฀as฀existing฀offjce฀ space outgrown

  • ฀

Headcount฀up฀c.206%฀to฀605

  • ฀

38฀international฀transfers฀into฀region

  • ฀

29฀internationally฀recruited฀trainees฀in฀China

Asia: Continued investment for growth

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SLIDE 23

STRATEGY

Michael Page International Half Year Results 2012 | 23

Clear market leader with 5 countries, 20 offices and 580 headcount Launched in Bogota, Colombia and new office in Macaé, Rio de Janeiro

INVESTMENT:

Development of Latin America

1 1 1 1/5 5

1 4 2 1/18

43

8 13/115 225 3 36

5 45 20 26/184 580

Countries KEY: Country Disciplines Offices Directors: Number/Years of Experience Headcount

31/2 years

Cumulative gross profit

£140.3m

H1 2012

Bogota Macaé

2009

Belo Horizonte Buenos Aires Curitiba São Paulo – Central

2003 2005

Rio de Janeiro

2006

Mexico City

2007

Campinas

2000

São Paulo – Vilia Olimpia

6 years

Cumulative gross profit

£81.3m

4 years

Cumulative gross profit

£5.1m

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SLIDE 24

Michael Page International Half Year Results 2012 | 24

STRATEGY

In the last 24 months:

  • ฀

฀ 2฀new฀countries฀opened:฀Chile฀and฀ Colombia (now 57 staff)

  • ฀

12฀new฀offjces,฀now฀20฀in฀the฀region

  • ฀

฀ Headcount฀up฀95%฀to฀580

  • ฀

฀ Roll-out฀of฀Page฀Personnel฀to฀Argentina,฀ Mexico, Chile and within Brazil

Latin America: Continued investment for growth

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SLIDE 25

STRATEGY

Michael Page International Half Year Results 2012 | 25

INVESTMENT:

Development of Africa

Morocco Casablanca

Algeria Mauritania Mali Niger Chad Sudan Kenya Uganda Central African Republic Democratic Republic

  • f Congo

Cameroon Angola Namibia Zambia Malawi Equatorial Guinea Gabon Congo Tanzania South Sudan Nigeria Burkina-Faso Ivory Coast Ghana Togo Benin Djibouti Senegal Guinea Libya Egypt Tunisia

South Africa Johannesburg South Africa Cape Town

Mozambique Madagascar Mauritius

Countries we have placed in Countries with offices Offices

Region represents a clear development opportunity Revenue generated in 36 countries Currently serviced from Paris (2006), Casablanca (2012), Cape Town (2012), Johannesburg (2009)

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Michael Page International Half Year Results 2012 | 26

Summary and Outlook

Summary:

  • ฀

฀ Resilient฀gross฀profjt฀performance฀in฀diffjcult฀ market environment

  • ฀

฀ Continued฀investment฀in฀regional฀ diversification and areas for future growth

  • ฀

฀ Strong฀balance฀sheet฀and฀fjnancial฀ conservatism Outlook:

  • ฀

฀ As฀market฀conditions฀become฀increasingly฀ challenging visibility shortens

  • ฀

฀ Will฀continue฀to฀balance฀costs฀for฀short-term฀ profit with investments for long-term growth

  • ฀

฀ Currently฀remain฀comfortable฀with฀2012฀ consensus

SUMMARY AND OUTLOOK

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SLIDE 27

www.michaelpageinternational.com

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SLIDE 28

Michael Page International Half Year Results 2012 | 28

Appendices

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SLIDE 29

APPENDICES

Michael Page International Half Year Results 2012 | 29

Group quarterly gross profit trend: 2002 to H1 2012

50 100 150

Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1

2007 2006 2005 2004 2003 2002 49.5 51.4 47.8 43.9 42.8 45.0 45.0 45.7 48.1 52.3 53.5 56.7 59.9 68.3 69.2 70.2 79.2 87.4 89.1 93.1 105.5 121.0 123.4 128.2 140.3 152.4 141.3 118.7 95.0 83.8 82.3 90.6 97.9 111.7 112.8 119.9 127.3 147.8 142.6 136.1 135.9 138.0 2008 2009 2010 2011 2012

Gross Profit (£m) as reported

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SLIDE 30

APPENDICES

Michael Page International Half Year Results 2012 | 30 1985 1980 1976

Headcount

1990 1995 2000 2005 2011 H1 2012 1000 2000 3000 4000 5000 6000 1986 France 1987 Netherlands 1995 Hong Kong 1997 Spain Italy 2000 Portugal Brazil 2003 China 2005 Poland Canada 2007 Luxembourg Argentina 2010 Chile 2011 India Malaysia Qatar 2012 Colombia Morocco Taiwan 1996 Singapore 1976 United Kingdom 1985 Australia 1993 Germany 2001 Switzerland Japan 2002 Belgium Sweden 1998 USA 2006 South Africa Russia Ireland UAE Mexico 2008 Austria Turkey New Zealand Through economic cycles:

  • ฀ ฀

Maintain฀infrastructure฀and฀market฀presence

  • ฀ ฀

Strategic฀and฀measured฀investments฀for฀the฀longer-term

Long-term approach to investment

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SLIDE 31

APPENDICES

Michael Page International Half Year Results 2012 | 31

Fee earner/support staff headcount trend

1000 2000 3000 4000 5000

H1 2012 H2 2011 H1 2011 H2 2010 H1 2010 H2 2009 H1 2009 H2 2008 H1 2008 H2 2007 H1 2007 H2 2006 H1 2006 H2 2005 H1 2005 H2 2004 H1 2004 H2 2003 H1 2003 H2 2002 H1 2002 H2 2001 H1 2001 H2 2000 H1 2000 H2 1999 H1 1999

Headcount

Fee Earners Support Staff

Ratio Fee Earners : Support Staff 1999 59:41 2000 58:42 2001 57:43 2002 58:42 2003 60:40 2004 64:36 2005 71:29 2006 74:26 2007 76:24 2008 74:26 2009 71:29 2010 73:27 2011 72:28 H1 2012 71:29

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SLIDE 32

APPENDICES

Michael Page International Half Year Results 2012 | 32

Cost structure

STAFF COSTS (c.75%)

  • ฀ ฀

Headcount฀–฀reacting฀to฀ market conditions

  • ฀ ฀

Additional฀headcount฀ added at entry level – lowers average cost per employee

  • ฀ ฀

Consistent฀profjt฀share฀ model, bonuses flex with profits

  • ฀ ฀

Incentives฀are฀mixture฀of฀ cash and for senior staff, share schemes

IT (c.10%)

  • ฀ ฀

Data฀centre฀consolidation

  • reduces support staff
  • greater resilience and

disaster recovery

  • development of new

recruitment software

PROPERTY (c.10%)

  • ฀ ฀

Concentrate฀within network

  • ฀ ฀

Spare฀capacity฀in฀some larger offices

  • ฀ ฀

Additional฀space฀required฀in฀ fastest growing regions

MISCELLANEOUS (c.5%)

  • ฀ ฀

Travel

  • ฀ ฀

Staff฀welfare

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SLIDE 33

APPENDICES

Michael Page International Half Year Results 2012 | 33

Number of shares and options outstanding

310 330 350 370 390 410 30 June 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 Number of shares and options outstanding (millions)

175p 177p 161p 161p 163p 184p 269p 279p 246p 385p 339p 298p

Options outstanding Shares outstanding Weighted average option price

Options granted over 5.0m shares in 2012

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SLIDE 34

APPENDICES

Michael Page International Half Year Results 2012 | 34

Eniamconse feugait ad duip ea feuissi. Patem nulla coreet vent lor adipit nulla consectem quat. Iquat ulputet, suscinciduis nullam iriliquat. Dividend increased or maintained through economic cycles Excess cash used to repurchase shares Maintain strong balance sheet position

35 70 105 140 H1 2012* 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 £m

121p 175p 170p 204p 356p 496p 233p 196p 411p 528p 363p

Dividends paid KEY: Shares repurchased by EBT Option exercises Shares repurchased and cancelled Net cash/debt at year end Average cost per share repurchased

* Dividend in H1 2012 is

  • nly 2011 final dividend

DIVIDENDS, SHARE REPURCHASE HISTORY AND YEAR END NET CASH/DEBT POSITION

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SLIDE 35

Michael Page International Half Year Results 2012 | 35

APPENDICES

Strong conversion rates whilst investing for the future

  • 20
  • 15
  • 10
  • 5

5 10 15 20 25 30 35 40 H1 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Operating profit*/Gross profit (%)

*Before exceptional items United Kingdom KEY: EMEA Asia Pacific Americas Group

2003

slide-36
SLIDE 36

Michael Page International Half Year Results 2012 | 36

APPENDICES

Buenos Santiago Aires São Paulo Rio de Janeiro London Paris Luxembourg Brussels Manchester Birmingham Bogota Johannesburg New York Sydney Auckland Brisbane Melbourne Singapore Shanghai Mumbai Hong Kong Dubai Beijing Tokyo Moscow Warsaw Istanbul Chicago San Francisco Toronto Mexico Abu Dhabi Madrid Lisbon Leeds

London - Birmingham - Leeds - Manchester - Tokyo

Basil Le Roux

Manchester - Tokyo

Emily Le Roux John Mayes

London - New Delhi - Singapore

New Delhi Kuala Lumpar

Gary James

London - New York - Sydney

Sam Lee-Bapty

London - Hong Kong - Shanghai - Beijing Madrid - Bogota

Beltrán Benjumea

London - Toronto - San Francisco

James Mayo

Madrid - Lisbon - Istanbul - Mexico City

Rémy de Cazalet

Paris - Brussels - Luxembourg - Singapore

Jérôme Bouin

In the last 12 months we continued to invest in building a consistent business through global organic growth

ORGANIC GLOBAL EXPANSION

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SLIDE 37

www.michaelpageinternational.com

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SLIDE 38

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 the Michael Page Group 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

  • r 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. Michael Page 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

  • f

it

  • r

the fact

  • f

its distribution form the basis

  • f,
  • r

be relied

  • n

in connection with, any contract

  • r

commitment

  • r

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.