First Quarter 2015 Interim Management Statement 2 Trading - PowerPoint PPT Presentation

First Quarter 2015 Interim Management Statement

2 Trading Performance Reported (£m) Constant Year-on-Year Gross Profit Q1 2015 Q1 2014 % % Q1 2015 vs Q1 2014 135.6 126.6 +7.2% +10.9% Gross Profit +10.9% vs Q1 2014 in constant currency • In reported rates Gross Profit +7.2% • At constant currency, Gross Profit was £140.4m • (+£4.8m on reported rates)

3 Permanent vs Temporary Reported (£m) Constant Year-on-Year Gross Profit Q1 2015 Q1 2014 % % Permanent 105.1 97.7 +7.6% +10.9% Temporary 30.5 28.9 +5.8% +11.0% Ratio (Perm:Temp) 77:23 77:23

4 Headcount Q1 2015 Q4 2014 Movement % Headcount 5,680 5,578 +102 +1.8% Fee Earners 4,343 4,278 +65 +1.5% Support Staff 1,337 1,300 +37 +2.8% Ratio 76:24 77:23 • Implementation team for PRS in Europe Transfer overlap to consolidate support function • Closure of Moscow office and exit from Russia •

5 Headcount and Reported Gross Profit Total headcount increased by 1.8% during Q1 to 5,680 (Q4 2014: 5,578) •

6 Discipline Overview Reported (£m) Constant % of Year-on-Year Gross Profit Q1 2015 Q1 2014 % % Group Finance & Accounting 40% 54.3 49.3 +10.0% +13.8% Legal, Technology , HR, 20% 27.8 25.7 +8.3% +11.5% Secretarial and Healthcare Engineering, Property & Construction, Procurement 20% 26.5 26.0 +2.2% +6.5% & Supply Chain Marketing, Sales and Retail 20% 27.0 25.6 +5.6% +9.3% Group Total 100% 135.6 126.6 +7.2% +10.9% Positive contributions from all disciplines; strongest performance from Finance & • Accounting • Discipline mix remains consistent with December position

7 Regional Overview Reported (£m) Constant % of Year-on-Year Gross Profit Q1 2015 Q1 2014 % % Group EMEA 40% 54.0 52.7 +2.6% +12.1% UK 27% 36.5 32.8 +11.3% +11.3% Asia Pacific 19% 25.8 23.0 +12.3% +10.8% Americas 14% 19.3 18.1 +6.7% +7.1% Group Total 100% 135.6 126.6 +7.2% +10.9% Strongest performance in EMEA • • UK continues to grow at a double-digit growth rate • Asia Pacific: continued good growth in Greater China • Americas +7% impacted by macro-economic environment in Brazil -14%

8 EMEA (40% of Group) Reported (£m) Constant Year-on-Year Gross Profit Q1 2015 Q1 2014 % % Q1 2015 vs Q1 2014 54.0 52.7 +2.6% +12.1% Headcount up 49 (+2.3%) to 2,162 • France (13% of Group) +5% -Page Personnel (Temp/Perm < € 40,000) 60% of France: +2% -Michael Page (Perm > € 40,000) 40% of France: +10% • Germany (6% of Group) +17% -Page Personnel +29% • EMEA Page Personnel +15% • Southern Europe +29%, Switzerland and Poland both grew over 30% • Middle East impacted by oil prices, up 9%.

9 United Kingdom (27% of Group) Reported (£m) Year-on-Year Gross Profit Q1 2015 Q1 2014 % Q1 2015 vs Q1 2014 36.5 32.8 +11.3% Headcount up 22 (+1.5%) to 1,463 Strong performances include Finance & Accounting, Sales, Logistics and Property & • Construction Page Personnel +25% on Q1 2014, 18% of the UK • Michael Page +8% on Q1 2014, 82% of the UK • • Private sector +12% on Q1 2014, 87% of the UK Public sector +8% on Q1 2014, 13% of the UK •

10 Asia Pacific (19% of Group) Reported (£m) Constant Year-on-Year Gross Profit Q1 2015 Q1 2014 % % Q1 2015 vs Q1 2014 25.8 23.0 +12.3% +10.8% Headcount up 23 (+2.0%) to 1,164 Asia (13% of Group and 70% of Asia Pacific) +14% • Strong performance from Greater China +18% and Japan +14% • • Malaysia and Indonesia +40% Record quarter for India +41% • • Australasia (6% of Group and 30% of Asia Pacific) +4% Australia +4%, Page Personnel +25% •

11 Americas (14% of Group) Reported (£m) Constant Year-on-Year Gross Profit Q1 2015 Q1 2014 % % Q1 2015 vs Q1 2014 19.3 18.1 +6.7% +7.1% Headcount up 8 (+0.9%) to 891 Latin America (7% of the Group) +4% • • Brazil -14% impacted by adverse macroeconomic factors Latin America, ex-Brazil (50% of Latin America) +35% • Record quarter for Mexico +38% • • North America (7% of the Group) +11% US impacted by severe weather and falling oil prices •

12 Summary • Q1 Gross Profit: +10.9% in constant currency and +7.2% in reported rates - Large, High Potential Markets: Gross Profit +10% in constant currency, Fee Earner Headcount +1%. • Impact of FX: 3.7% impact on Reported figures Equivalent to: - £4.8m in Gross Profit - £0.6m in Operating Profit • Q1 Headcount: 5,680 in Q1 - 4,343 Fee Earners - Fee Earner to Operational Support Staff ratio of 76:24 Financial Position: c. £100m Net Cash • - Cash inflow of £17.8m from share exercises

13 Outlook • Trends in market conditions expected to prevail across major regions Summary - Brazil expected to remain challenging in the short-term - Page Personnel progressing strongly • Adverse effect of foreign exchange movements • Focus on conversion rates and productivity - Selective investment in fee-earner headcount - No planned new offices or countries Continued roll-out of PRS • Full year results in line with Board expectations •

15 Year-on-Year Gross Profit Growth Rates 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 EMEA -15.0% -8.2% -7.1% -1.4% +5.7% +5.1% +11.2% +12.5% +12.1% UK -1.2% +0.3% +5.0% +5.1% +8.1% +11.1% +13.7% +11.0% +11.3% Asia Pacific -0.3% -8.0% -4.3% -5.7% +1.3% +14.2% +11.1% +10.8% +10.8% - Asia +15.0% +14.1% +13.5% +1.6% +7.4% +2.7% +8.0% +25.0% +16.5% - Australasia +2.7% +3.9% -16.1% -21.3% -19.7% -18.3% -9.5% -2.9% +1.7% Americas +2.1% +9.8% +16.8% +6.7% +16.2% +8.5% +9.6% +20.2% +7.1% - North America +15.8% +29.8% +26.0% +30.0% +30.5% +15.5% +22.3% +20.3% +10.6% - Latin America -2.1% +1.4% +12.6% -4.8% +7.4% +4.2% +1.5% +19.9% +4.2% Group Total -6.7% -3.8% -0.3% +0.3% +6.8% +8.9% +11.6% +12.9% +10.9%

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