Fourth Quarter and Full Year Trading Update 14 January 2014 - PowerPoint PPT Presentation

PageGroup First Quarter Interim Management Statement | 1 Fourth Quarter and Full Year Trading Update 14 January 2014

PageGroup Fourth Quarter and Full Year Trading Update | 2 Group Gross Profit up year-on-year Growth Rates GROUP GROSS PROFIT £m £m Reported Constant Q4 2013 vs Q4 2012 125.0 126.5 -1.2% +0.3% FY 2013 vs FY 2012 513.9 526.9 -2.5% -2.7% • Gross profit up +0.3% against 2012 in constant currency • Focus on consistency of systems and processes in operational support continues • Headcount increased by 59 (+1.2%) during Q4 to 5,130 (Q3 2013: 5,071) • Fee Earner headcount up 5% during 2013, by 186 to 3,810 • Support headcount down 10% during 2013, by 155 to 1,320 • Full year operating profit excluding exceptional expected to be around £68m

PageGroup Fourth Quarter and Full Year Trading Update | 3 Group Year-on-year growth in temp activity Q4 2013 Q4 2012 Growth Rates PERM/TEMP GROSS PROFIT £m £m Reported Constant Permanent 93.6 96.4 -2.9% -1.1% Temporary 31.4 30.1 +4.3% +4.5% Ratio (Perm:Temp) 75:25 76:24 FY 2013 FY 2012 Growth Rates PERM/TEMP GROSS PROFIT £m £m Reported Constant Permanent 392.4 409.7 -4.2% -4.2% Temporary 121.5 117.2 +3.7% +2.5% Ratio (Perm:Temp) 76:24 78:22

PageGroup Fourth Quarter and Full Year Trading Update | 4 Increase in headcount reflecting more positive outlook Group GROUP QUARTERLY HEADCOUNT AND GROSS PROFIT ¡

PageGroup Fourth Quarter and Full Year Trading Update | 5 Group Creating greater opportunity for future growth Q4 Q4 Q4 2013 2013 2012 Growth Rates GROSS PROFIT Proportion £m £m Reported Constant Finance & Accounting 42% 52.2 53.1 -1.8% -0.5% Legal, Technology, HR, 20% 25.6 26.5 -3.5% -1.3% Secretarial and Healthcare Engineering, Property & Construction, Procurement & 19% 24.0 24.1 -0.3% +0.7% Supply Chain Marketing, Sales & Retail 19% 23.2 22.8 +2.0% +3.4% Group Total 100% 125.0 126.5 -1.2% +0.3% • Marketing, Sales & Retail recorded strongest growth rates • Best performance in Oil & Gas, growing by 36% in reported rates • Financial Services stable at 7% of Group gross profit

PageGroup Fourth Quarter and Full Year Trading Update | 6 Group Growth in UK, Asia and Americas, significant improvement in EMEA Q4 Q4 Q4 2013 2013 2012 Growth Rates GROSS PROFIT Proportion £m £m Reported Constant EMEA 42% 52.0 51.4 +1.1% -1.4% UK 25% 31.8 30.2 +5.1% +5.1% Asia Pacific 19% 24.2 27.9 -13.1% -5.7% Americas 14% 17.0 17.0 +0.2% +6.7% Group Total 100% 125.0 126.5 -1.2% +0.3% • Gross Profit up +0.3% in constant currency • Strong growth in UK, UAE, US, Japan, Spain and Malaysia • Year-on-year quarterly growth in 18 countries

PageGroup Fourth Quarter and Full Year Trading Update | 7 Group Year-on-year growth in 20 countries, 13 countries had record years FY FY FY 2013 2013 2012 Growth Rates GROSS PROFIT Proportion £m £m Reported Constant EMEA 40% 207.7 218.4 -4.9% -8.2% UK 24% 124.1 121.4 +2.2% +2.2% Asia Pacific 21% 105.8 114.9 -7.9% -4.7% Americas 15% 76.3 72.2 +5.6% +8.8% Group Total 100% 513.9 526.9 -2.5% -2.7% • Continued investment in key markets – US, Germany, Latin America, Greater China and South East Asia • US and Mexico driving Americas growth (+35% in constant currency) • Asia Pacific impacted by difficult trading conditions in Australia and currency movements • Year-on-year full year growth in 20 countries, 13 countries had record years • Market leader in many markets that offer substantial long-term potential for growth

PageGroup Fourth Quarter and Full Year Trading Update | 8 Group Positive Gross Profit growth at Group level returns 2013 vs 2012 2012 vs 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EMEA +10.1% -2.5% -7.2% -10.9% -15.0% -8.2% -7.1% -1.4% UK -3.7% -9.2% -10.9% -2.1% -1.2% +0.3% +5.0% +5.1% Asia Pacific +17.8% +11.2% +2.6% +10.1% -0.3% -8.0% -4.3% -5.7% Americas +7.6% -8.6% -10.3% -1.1% +2.1% +9.8% +16.8% +6.7% Group Total +7.6% -2.5% -6.5% -3.6% -6.7% -3.8% -0.3% +0.3% Growth rates in local currency • Year-on-year growth rates show significant improvement in EMEA • Two consecutive quarters of 5% growth in UK • Asia Pacific impacted by Australia • Growth in the Americas was +26% in Q4 in constant currency excluding Brazil

PageGroup Fourth Quarter and Full Year Trading Update | 9 EMEA Significant improvement in growth rate Growth Rates EMEA GROSS PROFIT £m £m Reported Constant Q4 2013 vs Q4 2012 52.0 51.4 +1.1% -1.4% Headcount up 36 (+1.9%) at 1,886 (Q3 2013: 1,850) • France (15% of the Group) -2% on Q4 2012 (-7% in Q3 2013) • Page Personnel (Temp/Perm < € 45,000) 62% of France +9% in Q4 • Michael Page (Perm > € 45,000) 38% of France -16% in Q4 • Germany (6% of the Group) -1% on Q4 2012 (-16% in Q3 2013) • Spain continues to perform well +20% on Q4 2012 • 6 countries had record years in 2013 • To maintain font as previous • To maintain font as previous • To maintain font as previous

PageGroup Fourth Quarter and Full Year Trading Update | 10 United Kingdom Increased market confidence Growth UK GROSS PROFIT £m £m Rates Q4 2013 vs Q4 2012 31.8 30.2 +5.1% Headcount up 16 (+1.2%) to 1,319 (Q3 2013: 1,303) • Private sector (87% of UK business) up 4% on Q4 2012 • Public sector (13% of UK business) up 14% on Q4 2012 • Increase in headcount reflecting positive outlook • Page Personnel 20% of UK (Temp/Perm < £45,000) up 19% on Q4 2012 • Property & Construction, Procurement & Supply Chain, Executive Search, Digital Marketing, and Design disciplines performed well • Financial Services remains at 4% of UK gross profit

PageGroup Fourth Quarter and Full Year Trading Update | 11 Asia Pacific Difficult conditions in Australia impacting region’s performance Growth Rates ASIA PACIFIC GROSS PROFIT £m £m Reported Constant Q4 2013 vs Q4 2012 24.2 27.9 -13.1% -5.7% Headcount down 15 (-1.3%) to 1,111 (Q3 2013: 1,126) • Asia (12% of the Group and 65% of Asia Pacific) +4% on Q4 2012 • Malaysia and Japan had record quarters, combined up 34% on Q4 2012 • Greater China down 4% on Q4 2012 ; 2013 a record year • Australia and New Zealand (7% of the Group and 35% of Asia Pacific) -18% on Q4 2012 • Difficult trading conditions in Australia and adverse foreign exchange movements continue to impact the region’s performance • Additional comment

PageGroup Fourth Quarter and Full Year Trading Update | 12 Americas US and Mexico driving growth Growth Rates AMERICAS GROSS PROFIT £m £m Reported Constant Q4 2013 vs Q4 2012 17.0 17.0 +0.2% +6.7% Headcount up 22 (+2.8%) to 814 (Q3 2013: 792) • Latin America (8% of the Group) -5% on Q4 2012 • Difficult quarter in Brazil -17% on Q4 2012 • Argentina, Mexico, Chile and Colombia combined grew +20% in constant currency, with a record quarter for Chile • North America (6% of the Group) +30% on Q4 2012 • Strong performance led by US up 35% on Q4 2012

PageGroup Fourth Quarter and Full Year Trading Update | 13 Financials Strong financial position • Strong net cash at 31 December 2013 in the region of £80m (+£19m on December 2012) • Interim dividend of 3.25p per share paid on 4 October (£10.1m) • 321m shares outstanding at 31 December 2013 (of which 11m are held in EBT) • 0.2m options were exercised in Q4 • Amortisation of new software commenced – eight month charge in 2013 was £5.4m • Exceptional operating profit charge of £2.7m relating to transfer pricing judgement in Page Personnel France