SLIDE 1
PageGroup First Quarter Interim Management Statement | 1
Second Quarter Trading Update 16 July 2013
SLIDE 2 PageGroup Second Quarter 2013 Trading Update | 2
Group
“Gross profit up sequentially”
Growth Rates GROUP GROSS PROFIT £m £m Reported Constant Q2 2013 vs Q2 2012 135.2 138.0
Q2 2013 vs Q1 2013 135.2 126.8 +6.6% +6.9% H1 2013 vs H1 2012 262.0 273.9
- 4.3%
- 5.2%
- Gross profit up 7% sequentially
- Focus on consistency of systems and processes in operational support
- Headcount decreased by 87 (-1.7%) during Q2 to 4,955 (Q1 2013: 5,042)
- H1 total headcount down by 144 (-2.8%), 34 (-0.9%) fee earners and 110 (-7.5%)
- perational support
SLIDE 3 PageGroup Second Quarter 2013 Trading Update | 3
Group
“Improving growth rates in both perm and temp markets”
Q2 2013 Q2 2012 Growth Rates PERM/TEMP GROSS PROFIT £m £m Reported Constant Permanent 105.2 109.2
Temporary 30.0 28.8 +4.2% +1.9% Ratio (Perm:Temp) 78:22 79:21 H1 2013 H1 2012 Growth Rates PERM/TEMP GROSS PROFIT £m £m Reported Constant Permanent 203.1 215.7
Temporary 58.9 58.2 +1.3%
Ratio (Perm:Temp) 78:22 79:21
SLIDE 4
PageGroup Second Quarter 2013 Trading Update | 4
Group
“Headcount reflects market conditions and our focus on operational support consistency”
GROUP QUARTERLY HEADCOUNT AND GROSS PROFIT ¡
SLIDE 5 PageGroup Second Quarter 2013 Trading Update | 5
Group
“Discipline diversity helping overall performance”
Q2 2013 Q2 2013 Q2 2012 Growth Rates GROSS PROFIT Proportion £m £m Reported Constant Finance & Accounting 42% 57.0 57.6
Legal, Technology, HR, Secretarial and Healthcare 21% 27.8 27.8
Engineering, Property & Construction, Procurement & Supply Chain 19% 26.3 27.1
Marketing, Sales & Retail 18% 24.1 25.5
Group Total 100% 135.2 138.0
- 2.0%
- 3.8%
- Discipline diversification supports growth rates
- 13 of our 16 disciplines grew sequentially
- Procurement, Supply Chain, Healthcare, Life Sciences and Legal performed best
- Financial Services now 8% of Group gross profit
SLIDE 6 PageGroup Second Quarter 2013 Trading Update | 6
Group
Q2 2013 Q2 2013 Q2 2012 Growth Rates GROSS PROFIT Proportion £m £m Reported Constant EMEA 41% 55.1 57.6
UK 23% 31.2 31.1 +0.3% +0.3% Asia Pacific 21% 28.2 30.6
Americas 15% 20.7 18.7 +10.7% +9.8% Group Total 100% 135.2 138.0
- 2.0%
- 3.8%
- Rate of growth impacted by strength of economy and maturity of recruitment industry
- Continued investment in key markets – Asia, Americas, Germany
- Year-on-year growth in 20 countries and sequential growth in 31 countries
- 11 countries had record quarters in Q2 including Japan, South Africa, Russia, UAE,
Mexico and Canada
“Diversification reduces exposure to regional changes in market conditions”
SLIDE 7 PageGroup Second Quarter 2013 Trading Update | 7
Group
“Year-on-year quarterly growth rates improving in 77% of the Group”
Growth rates in local currency
- Improvement in growth rates in EMEA
- Year-on-year growth turns positive in UK
- Asia Pacific impacted by slowdown in Australia largely due to the Mining and Resources sector
- Growth in the Americas driven by North America and Mexico
2012 vs 2011 2013 vs 2012 Q1 Q2 Q3 Q4 Q1 Q2 EMEA +10.1%
- 2.5%
- 7.2%
- 10.9%
- 15.0%
- 8.2%
UK
- 3.7%
- 9.2%
- 10.9%
- 2.1%
- 1.2%
+0.3% Asia Pacific +17.8% +11.2% +2.6% +10.1%
Americas +7.6%
+2.1% +9.8% Group Total +7.6%
SLIDE 8 PageGroup Second Quarter 2013 Trading Update | 8
EMEA
“EMEA growth rates improved – up 6% sequentially”
- France (14% of the Group) +6% on Q1 2013 (-11% on Q2 2012)
- Germany (6% of the Group) +4% on Q1 2013 (-18% on Q2 2012)
- Larger businesses of France and Germany up sequentially but remain challenging
- Record quarters for UAE, South Africa, Russia, Africa and Turkey
- Strong performance from Spain +8% on Q2 2012
- Headcount down in H1, largely operational support staff
Growth Rates EMEA GROSS PROFIT £m £m Reported Constant Q2 2013 vs Q2 2012 55.1 57.6
Q2 2013 vs Q1 2013 55.1 52.1 +5.8% +5.8% H1 2013 vs H1 2012 107.2 117.9
Headcount down 83 (-4.2%) at 1,881 (Q1 2013: 1,964)
SLIDE 9
PageGroup Second Quarter 2013 Trading Update | 9
EMEA
“Headcount reacting to gross profit and focus on consistency of systems and processes”
EMEA QUARTERLY HEADCOUNT AND GROSS PROFIT
SLIDE 10 PageGroup Second Quarter 2013 Trading Update | 10
United Kingdom
“Confidence gradually improving : year-on-year and sequential growth”
- Private sector (87.5% of UK business) down 3.2% on Q2 2012
- Public sector (12.5% of UK business) up 38.5% on Q2 2012
- Strongest performances from Logistics, Procurement & Supply Chain, Buying &
Merchandising, Digital, Energy and Public Sector disciplines
- Financial Services stabilised at 4% of UK gross profit, consistent for 3 quarters
UK GROSS PROFIT £m £m Growth Rates Q2 2013 vs Q2 2012 31.2 31.1 +0.3% Q2 2013 vs Q1 2013 31.2 30.2 +3.4% H1 2013 vs H1 2012 61.4 61.7
Headcount down 5 (-0.4%) to 1,256 (Q1 2013: 1,261)
SLIDE 11
PageGroup Second Quarter 2013 Trading Update | 11
United Kingdom
“Headcount remains flat, in line with gross profit”
UK QUARTERLY HEADCOUNT AND GROSS PROFIT
SLIDE 12 PageGroup Second Quarter 2013 Trading Update | 12
Asia Pacific
“Australia remains challenging, balanced by growth in Asia”
Growth Rates ASIA PACIFIC GROSS PROFIT £m £m Reported Constant Q2 2013 vs Q2 2012 28.2 30.6
Q2 2013 vs Q1 2013 28.2 26.1 +8.0% +9.4% H1 2013 vs H1 2012 54.3 56.9
Headcount up 5 (+0.5%) to 1,076 (Q1 2013: 1,071)
- Asia (13% of the Group) +12% on Q1 2013 (+3% on Q2 2012)
- Japan, Malaysia and Taiwan had record quarters in Q2
- Southern China, India and Hong Kong performed well
- Australia and New Zealand (8% of the Group) +6% on Q1 2013 (-21% on Q2 2012)
- Market conditions in Australia remain challenging but stable
SLIDE 13
PageGroup Second Quarter 2013 Trading Update | 13
Asia Pacific
“Headcount flat, reflecting investment in Asia and gross profit performance in Australia”
ASIA PACIFIC QUARTERLY HEADCOUNT AND GROSS PROFIT
SLIDE 14 PageGroup Second Quarter 2013 Trading Update | 14
Americas
“All businesses in region up sequentially”
Growth Rates AMERICAS GROSS PROFIT £m £m Reported Constant Q2 2013 vs Q2 2012 20.7 18.7 +10.7% +9.8% Q2 2013 vs Q1 2013 20.7 18.4 +12.0% +12.3% H1 2013 vs H1 2012 39.1 37.4 +4.6% +5.9% Headcount down 4 (-0.5%) to 742 (Q1 2013: 746)
- Latin America (9% of the Group) +7% on Q1 2013 (flat on Q2 2012)
- Sequential growth in Brazil
- Record quarters for Mexico and Colombia
- North America (6% of the Group) +21% on Q1 2013 (+30% on Q2 2012)
- Management changes in 2012 driving positive results
- Record month for North America in June, record quarter for Canada
SLIDE 15
PageGroup Second Quarter 2013 Trading Update | 15
Americas
“Strong quarter from region, particularly North America”
AMERICAS QUARTERLY HEADCOUNT AND GROSS PROFIT
SLIDE 16 PageGroup Second Quarter 2013 Trading Update | 16
Financials
“Strong financial position”
- Strong net cash at 30 June 2013 in the region of £47m
- 2012 final dividend of 6.75p per share paid on 21 June (£20.8m)
- 319m shares outstanding at 30 June 2013 (of which 11m are held in EBT)
- 24m share options outstanding at 30 June 2013
- 0.2m options were exercised
- Amortisation of new software commenced – full year charge expected to be c. £6m
SLIDE 17 PageGroup Second Quarter 2013 Trading Update | 17
Financials
“Positioning the Group to deliver long-term profitable growth”
- A robust first half
- Continuing to invest for growth in key markets – Asia, Germany and the Americas
- Continued focus on operational support consistency
- Positioning the Group to deliver long-term profitable growth for shareholders
- Evidence of improving conditions in some of our markets
SLIDE 18
PageGroup Second Quarter 2013 Trading Update | 18
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 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 19
PageGroup First Quarter Interim Management Statement | 19
