Q2 2020 Trading Update Kelvin Stagg Chief Financial Officer LSE: - PowerPoint PPT Presentation

Steve Ingham Chief Executive Officer Q2 2020 Trading Update Kelvin Stagg Chief Financial Officer LSE: PAGE.L Website: https://www.page.com/investors

Overview

Overview Financial & Regional Review Summary Q2 20 Q2 & H1 Overview Group gross profit decline of -47.6% -47.6% £118.3m Gross Profit Constant Currency Q2 Q2 -11.7% Q1 2020 £224.7m Q2 2019 Reported Rates -47.4% £300.6m Gross Profit Q2 H1 -13.0% Q1 2020 £433.5m H1 2019 c. £156m Michael -46.0% Net Cash Page Q2 c. £83m Q1 2020 -11.0% Q1 2020 Total 6,985 -51.0% Headcount Page Personnel Q2 7,566 Q1 2020 -13.1% Q1 2020 3

Overview Financial & Regional Review Summary Q2 20 COVID-19 Operating Strategy Protecting our people and our platform Priority is to protect our employees, candidates and clients Immediate office closures following Government guidelines All of the Group’s employees with full access to the Group’s systems Protecting the shape of the business, retaining experienced consultants Detailed support and communication strategy for all employees Tools such as Microsoft Teams, Boost and Yammer utilised 4

Overview Financial & Regional Review Summary Proactive Communication Strategy Q2 20 Phase 1: Crisis Response • Delivered a comprehensive internal communications strategy • Frequent and transparent interaction with the management team • 62% participation in remote working survey, over 7,500 comments • 91% of employees said we had implemented effective systems for keeping them connected • 89% said they are proud to work at PageGroup Yammer (March 2020): 15,000 Posts Over 1 million views Phase 2: Living with COVID – Staying Connected 5 Phase 3: Looking Forward – Reinforce the Platform

Overview Financial & Regional Review Summary Proactive Communication Strategy Q2 20 Phase 1: Crisis Response Phase 2: Living with COVID – Staying Connected STAYING CONNECTED APPROACHABLE AND VISIBLE LEADERSHIP • Encouraged people to stay connected • Video updates from CEO with more than 15,200 views • Global open Q&A events with the leadership team with over 5,200 attendees • “Create Conversations” creating content about market trends to discuss with clients Over 5,200 attendees 6 Phase 3: Looking Forward – Reinforce the Platform

Overview Financial & Regional Review Summary Proactive Communication Strategy Q2 20 Phase 1: Crisis Response Phase 2: Living with COVID – Staying Connected Phase 3: Looking Forward – Reinforce the Platform • Customer Connect remote roll-out to Poland and Belgium • UK and Europe roll-out in H2 • New Global Intranet • Further online training through Boost! • Ongoing Global campaigns supporting IWD and Pride Month 7

Overview Financial & Regional Review Summary Proactive Communication Strategy Q2 20 ‘this just shows how remarkable we ‘setting us above a lot of other employers in these times…’ are as one, as Page, when times are tough’ ‘I don't know how you've all done it - ‘ready to fight more than ever!’ it's been amazing’ ‘no place I'd rather be!’ ‘we are a global company and always ready to support any country’ ‘can't fault Page and the way this has/is ‘we'll get through this, all together’ being handled, planning and communication has been flawless’ ‘proud to be @Page in these difficult times’ ‘…really realistic and positive message…’ ‘proud that we work for such a great business!’ ‘the challenge makes us stronger and more committed than ever!’ ‘…together we will get through this stronger than ever’ ‘I feel incredibly lucky and proud to work for Page’ ‘so proud about PageGroup and the way we choose to face this tough time!‘ ‘thank you for this message, your transparency and realism.’ ‘…back to work stronger than ever!’ ‘very proud to belong to PageGroup !‘ 8

Overview Financial & Regional Review Summary Q2 20 COVID-19 Operating Strategy Managing our cost base Flexible and highly diversified business model Maintaining the business platform Planned reduction in Q2 cost base of 20-25% achieved Staff returning from 4 day weeks and furlough All employees returning to full pay in Q3 Q3 costs down c. 10% compared to March 9

Overview Financial & Regional Review Summary Q2 20 COVID-19 Operating Strategy Managing our cost base Cost Savings vs. • Initial reduction of c. 20% in April compared to March March* • In April, immediate impact of 20% voluntary salary reductions and 4 day working weeks 0% April May June Q3 • In May, a further reduction with full impact of Government schemes and 255 employees having left -5% the Group • In June, slight increase in the cost base due to bringing staff back to full time working to match -10% recovering activity levels in Continental Europe • Currently expect Q3 cost base will be down c. 10% -15% compared to March • Continued savings on bonus, travel, staff welfare and client and candidate entertaining -20% *June and Q3 are latest estimates -25% 10

Overview Financial & Regional Review Summary Q2 20 COVID-19 Operating Strategy Maintaining the Platform • Overall strategy is to protect the platform and position the Group for Total headcount -7.7% future growth when conditions improve 8,000 • Overall decrease in fee earners of 531 (-9%), with around half 7,000 leaving in April and the other half in May and June • 406 staff fully furloughed in the UK and the US, coming back in Q3, 6,000 with partial furloughs across most of Continental Europe 5,000 Headcount • Fee earner headcount reduced across all regions, majority are due 5,923 -531 5,392* 4,000 to:  Very limited experience 3,000  Performance management 2,000  Efficiencies from new systems 1,000  Largely in the UK and the Americas 1,643 -50 1,593* 0 • Operational support headcount reduced by 50 (-3%) in the Quarter Q1 2020 Q2 2020 Support Staff Fee Earners 11 *Including furloughed staff of 406 (327 Fee Earners and 79 Support Staff)

Overview Financial & Regional Review Summary Q2 20 COVID-19 Operating Strategy Best performing and most impacted sectors Healthcare and Pharmaceutical Best Performing E-Commerce Media Production Candidates sent New Opportunities Telecoms Consumer Goods and Packaging Technology Travel and Tourism Most Impacted Retail Interviews Offers Hospitality and Leisure Construction Aerospace 12

Overview Financial & Regional Review Summary Q2 20 COVID-19 Operating Strategy Real time monitoring of forward KPIs Candidates sent New Opportunities Interviews Offers 13

Overview Financial & Regional Review Summary Q2 20 COVID-19 Operating Strategy Gradual reopening of our offices 14

Overview Financial & Regional Review Summary Q2 20 COVID-19 Operating Strategy Looking forward into Q3, what are we doing? Increasing active headcount to match activity levels Bringing back staff in the US and the UK Decreasing percentage of time on furlough in Europe Firming up plans for strategic investments Ensuring Group has the appropriate shape in all of our markets Hiring experienced fee earners 15

Financial and Regional Review

Overview Financial & Regional Review Summary Q2 20 Balance Sheet and Liquidity Net cash and facilities of c. £500m Strong Balance Sheet with net cash of c. £156m, up £73m on Q1 Inflow of cash through unwind of Temp debtors DSO in line with pre-COVID position No material bad debt write offs Strong banking relationships and facilities £30m RCF, Covenant waiver agreed for an initial 12 month period Approved for BoE CCFF Scheme, maximum facility of £300m 17

Overview Financial & Regional Review Summary Q2 20 Gross profit sharp downturn Decline in fee earner headcount much less than 2009 6000 250 200 4500 Gross Profit (£m) as reported 150 Fee Earners 3000 100 1500 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Fee Earners Column1 Q2 20 Constant Currency 18

Overview Financial & Regional Review Summary Q2 20 Perm and Temp ratio Permanent recruitment more impacted by COVID-19 • • • Gross Profit decline in Gross Profit decline in Gross Profit decline in permanent -54.7% to £78.4m permanent -51.2% to £64.4m permanent -65.8% to £14.0m • • • Temporary -24.4% to £39.9m Temporary -17.6% to £19.9m Temporary -30.1% to £20.0m • Perm:Temp ratio 66:34 (Q1 2020: 73:27) 19

Overview Financial & Regional Review Summary Q2 20 GP Growth Rates – H1 April and May -49%, June slight improvement to -45% 20% 10% 0% January February March April May June -10% -20% -30% EMEA, -38% -40% Growth Rate Q1 Q2 APAC, -42% -50% EMEA -11.1% -42.9% AMERICAS, -53% -60% APAC -16.6% -41.7% UK , -62% -70% AMERICAS -3.0% -55.0% UK -16.0% -61.5% 20