FDM Group (Holdings) plc Results for the year ended 31 December 2019 Rod Flavell - CEO Mike McLaren - CFO
Highlights for the year ended 31 December 2019 Total Revenue (£m) Basic Earnings per Share (p) Closing Cash (£m) +11% +9% + 9% 2019 2019 2019 271.5 37.3 37.0 +13% +16% +10% 2018 2018 2018 244.9 34.2 33.9 (CAGR) (CAGR) (CAGR) 233.6 2017 2017 29.5 2017 36.8 189.4 2016 2016 24.0 2016 27.8 Mountie Revenue (£m) Adjusted Basic Earnings per Share (p) Cash Conversion (%) +12% +7% +7.5 ppts. 2019 268.2 2019 38.8 2019 108.4% +17% +15% 2018 2018 36.3 2018 100.9% 239.0 (CAGR) (CAGR) 2017 2017 32.3 2017 117.8% 207.3 2016 167.3 2016 2016 25.5 119.0% Adjusted Operating Profit (£m) Effective Tax Rate (%) Ordinary Dividend per Share (p) +7% +15% -0.6 ppts. 2019 55.2 2019 22.7% 2019 34.5 +13% +21% 2018 51.8 2018 23.3% 2018 30.0 (CAGR) (CAGR) 2017 47.7 2017 26.7% 2017 26.0 2016 38.0 2016 25.9% 2016 19.6 CAGR (Compound Annual Growth Rate) applied over three years ppts. (percentage points) Comparative figures have been restated for IFRS 16 Leases During 2019 the Group purchased £3.0m of its own shares which are held in an Employee Benefit Trust and are used to satisfy share awards under employee share option schemes Page 1
Highlights for the year ended 31 December 2019 New Clients Mounties on Client Site +97 +5% 2019 97 4,000+ 3,924 3,747 +13% 3,170 2018 77 2,705 (CAGR) 2017 72 2016 49 2016 2017 2018 2019 Mar-20 Number of Clients Training Completions +4% -2% 2019 2,115 409 393 +5% +6% 376 345 (CAGR) (CAGR) 2018 2,155 2017 1,626 2016 1,807 2016 2017 2018 2019 Mountie Utilisation Mountie Headcount on Client Site by Region -1.2 ppts. 2019 49% 32% 6% 13% 97.4% 97.3% 97.3% 96.1% 2018 54% 32% 4% 10% 2017 55% 30% 5% 10% 2016 55% 31% 5% 9% 2016 2017 2018 2019 UK & I NA EMEA APAC CAGR (Compound Annual Growth Rate) applied over three years ppts. (percentage points) Page 2
Market Review UK & Ireland 2019 2018* North America 2019 2018* Revenue £136.9m £131.0m +5% £96.0m £82.1m +17% Revenue Mountie revenue £134.2m £126.1m +6% Mountie revenue £95.7m £81.4m +18% Mounties on client sites 1,910 2,004 -5% Mounties on client sites 1,277 1,196 +7% £37.8m £37.0m Adjusted operating profit +2% £16.5m £13.8m +20% Adjusted operating profit Adjusted operating profit margin % 28% 28% 0% Adjusted operating profit margin % 17% 17% 0% Strong insurance and banking sector Pop-up training centres operated in Presence widened in insurance, retail Increased training capacity and Mountie performance Birmingham, Cardiff and Dublin and professional services placements at the Austin and Charlotte during the year centres Reduced demand from UK Government Banking and financial services Ministerial Departments reflecting 46 new clients gained, 76% of improved in H2 after slow Q2 17 new clients won in the year, primarily uncertainty ahead of Brexit and potential which were from outside the in banking and financial services political leadership changes financial services and banking Pop-up Academy opened in Herndon sector following end of Reston lease. Montreal pop-up Academy supported good performance in Canada EMEA 2019 2018* APAC 2019 2018* £16.0m £13.5m +19% Revenue Revenue £22.6m £18.3m +23% Mountie revenue £16.0m £13.5m +19% Mountie revenue £22.3m £18.0m +24% Mounties on client sites 240 162 +48% Mounties on client sites 497 385 +29% Adjusted operating profit £2.2m £1.4m +57% Adjusted operating loss -£1.3m -£0.4m -225% Adjusted operating profit margin % 14% 10% +4% Adjusted operating loss margin % -6% -2% -4% Adjusted operating loss increase Pop-up Academies operated in Beijing Luxembourg headcount continues to Reflecting a change in management reflects ongoing investment in state-of- reporting, 30 Mounties included within and Shanghai to provide local training grow steadily the-art Sydney Academy, which UK&I Mounties deployed as at 30 June became operational in February 2019 2019 have been re-allocated to EMEA Hong Kong saw strong growth, despite The Netherlands had 51 Mounties Mounties deployed as at 31 December the social and political disruption placed at year end, sourced and trained 2019 Australian headcount increased by 64, locally at our Rotterdam pop-up an increase of 133% over 2018 Academy Page 3 *2018 figures restated for IFRS 16 Leases
Regional Distribution APAC permanent academy capacity increased 109% due to the opening of the Sydney Academy. NA decreased 24% due to the conversion of the Reston Academy into a pop-up centre in Herndon. Pop-up Training Mountie Revenue Academy Capacity Completions Regional Distribution 988 £268.2m 938 272 14% 8% 10% 8% £239.0m 6% 789 7% 7% 1% £207.3m 15% 19% 6% 710 5% 9% 7% 6% 6% 5% 6% 3% 36% 175 £167.3m 34% 4% 36% 7% 22% 34% 36% 26% 36% 47% 9% 32% 22% 50% 53% 55% 50% 42% 40% 51% 57% 36 47% 26% 69% - 31% Dec-16 Dec-17 Dec-18 Dec-19 Dec-16 Dec-17 Dec-18 Dec-19 2016 2017 2018 2019 UK&I NA EMEA APAC Pop-up UK&I NA EMEA APAC UK&I NA EMEA APAC Page 4
Mountie Headcount Banks and Diversified Financials sectors headcount has remained broadly constant 2.8% 2.5% Industries 2019 2018 6.3% Banks 47% 46% 7.5% Diversified Financials 16% 17% Software & IT Services 8% 9% Insurance 7% 5% 7% 10% Government Energy 4% 2% 90.9% 90.0% Media & Entertainment 3% 3% Dec-19 Commercial & Professional Services 2% 2% Transportation 1% 2% 1% 1% Utilities Other 4% 3% 2019 2018 Other includes • Consumer Services • Retailing Getting Back to Business • Food & Staples Retailing • Not for Profit • Automobiles & Components • Telecommunication Services Ex-Forces • Health Care Equipment & Services • Pharmaceuticals, Biotechnology & Graduates Life Sciences Industry classification as per Standard & Poor’s ‘Global Industry Classification Standard’ (GICS) with the addition of a “Government” and “Not for Profit” sector Getting Back Ex-Forces to Business 2019 2018 2019 2018 249 280 108 94 Page 5
Regions by Headcount 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 - Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 UK & Ireland North America EMEA APAC Page 6
Top Sectors by Headcount 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 - Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Banks Diversified Financials Software & IT Services Insurance Government Energy Media & Entertainment Commercial & Professional Services Transportation Other Page 7
Top Clients by Headcount 3,000 2,500 2,000 1,500 1,000 500 - Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 HSBC RBC TD Other Government Shell DWP Fannie Mae Lloyds Bank Of America JPMorgan Morgan Stanley Deutsche Bank Manulife BNP Sky BMO Standard Life Barclays UBS Credit Suisse Home Office British Airways Page 8
Service Divisions by Headcount 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 - Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Development PMO ITSM Testing Business Analysis Data and Operational Analysis Business Intelligence Murex Robotic Process Automation Salesforce Cyber security Page 9
CSR & Inclusivity At FDM, diversity and inclusion starts at the top. It is ingrained into the FDM culture and championed by the leadership team Nationalities Gender Ethnicity Disability Median Pay Gap 81 4% -1.7% 53% * 85+ ~55% are from a BAME** of FDM UK graduate consultants UK business reported a 0.0% nationalities working of the FDM Management consider themselves to have a median gender pay gap Team are female background together as a team at FDM disability for 2017 and 2018 Social Mobility Ex-Forces Returners to Work 40% * 88% * 720+ 190+ were the first in their attended a former service men and women have been careers restarted through family to go to university state school placed through the programme since its the FDM Getting Back to Business inception programme since inception * of our UK graduate consultant respondents 2019 Page 10 ** Black, Asian or Minority Ethnic
Recognition 2019 Social Mobility Foundation – Top 75 Yahoo Finance Heroes 40 Advocate Female Grad Tech Employer Megabuyte Quoted25 Companies Social Mobility Employer Index 2019 Executives of 2019 of the Year Agents of Change PowerList Best Contribution to The JobCrowd’s Top 100 Companies Best forVets Student Career Development CEO Rod Flavell For Graduates To Work For Employer FDM COO, Sheila Flavell, Awarded a Top 100 Most Popular NUE Awards Top 100 CBE Graduate Employers Undergraduate Employer Gold Award for the 2019 HIRE Vets Medallion Program Page 11
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