Half Year Results 2012 | August 2012 Michael Page International - PowerPoint PPT Presentation

Half Year Results 2012 | August 2012

Michael Page International Half Year Results 2012 | 2 Financial Review Segmental Analysis Strategy Agenda Summary and Outlook Appendices

FINANCIAL REVIEW Michael Page International Half Year Results 2012 | 3 Asia Pacific Resilient gross profit performance in challenging conditions “Quote” INCOME STATEMENT Change before Before After exceptional exceptional Exceptional exceptional Change items at items items items before constant H1 2012 H1 2012 H1 2012 H1 2011 exceptional £m £m £m £m items currency Revenue 502.6 - 502.6 502.1 +0.1% +2.6% Gross profit 273.9 - 273.9 275.1 -0.5% +2.2% Operating profit 36.0 (7.8) 28.2 45.4 -20.7% -19.1% Net interest income 0.1 - 0.1 0.1 36.1 (7.8) 28.3 Profit before tax 45.5 -20.6% Taxation (12.0) 2.5 (9.5) (15.0) -20.0% Profit after tax 24.1 (5.3) 18.8 30.5 -20.9% Effective tax rate on profit 33.3% 32.2% 33.5% 33.0% Earnings per share before exceptional items 7.9 Basic (pence) 10.0 -21.0% Diluted (pence) 7.8 9.7 -19.6%

FINANCIAL REVIEW Michael Page International Half Year Results 2012 | 4 Exceptional item relates to the removal of a management layer for Continental Europe and the Americas Legacy management structure removed; will not be replaced Exceptional Severance packages totalled £7 .8m, item including £1.5m of accumulated share plan charges Payback c. 2 years Results in a global, unified management structure

FINANCIAL REVIEW Michael Page International Half Year Results 2012 | 5 Regional results GROSS PROFIT AND OPERATING PROFIT BY REGION Operating profit (before exceptional Gross profit items) H1 2012 H1 2012 £m % Group £m % Group 117.9 13.4 EMEA 43% 37% United Kingdom 61.7 22% 8.6 24% Asia Pacific 56.9 21% 13.8 38% Americas 37.4 14% 0.2 1% Group 273.9 100% 36.0 100%

FINANCIAL REVIEW Michael Page International Half Year Results 2012 | 6 Asia Pacific As markets weaken temporary recruitment is more resilient “Quote” PERM/TEMP GROSS PROFIT AND GROSS MARGINS Growth Rates Constant H1 2012 H1 2011 Gross profit £m £m Reported currency Permanent 215.7 219.4 -1.7% +0.9% Temporary 58.2 55.7 +4.5% +7 .1% Ratio (Perm:Temp) 79:21 80:20 Permanent 96.9% 96.6% Temporary 20.8% 20.2% 54.5% Group gross margin 54.8%

FINANCIAL REVIEW Michael Page International Half Year Results 2012 | 7 Asia Pacific £21m paid in dividends “Quote” CASH FLOW H1 2012 H1 2011 £m £m 36.0 Operating profit before exceptional items 45.4 Exceptional items (7.8) - Operating profit after exceptional items 28.2 45.4 Depreciation and share scheme charges 13.3 11.5 (14.0) Increase in underlying working capital (35.1) Net cash inflow from operating activities 27.5 21.8 Net interest income 0.1 0.1 Taxation paid (17.5) (19.1) Net capital expenditure (9.6) (13.0) 0.5 (10.2) Dividends paid (20.8) (18.8) Issue of own shares for share options 5.5 1.0 Purchase of own shares - (30.3) Purchase of shares into the employee benefit trust (9.4) - Net cash outflow (24.2) (58.3) (1.5) Exchange movement 1.3 Movement in net cash (25.7) (57 .0)

FINANCIAL REVIEW Michael Page International Half Year Results 2012 | 8 Asia Pacific Strong balance sheet with £32m cash at end of June 2012 “Quote” BALANCE SHEET 30 June 31 Dec 2012 2011 £m £m 44.1 Intangible assets 39.7 Tangible assets 31.7 33.2 75.8 72.9 206.8 Trade and other receivables 199.1 Trade, other payables current and deferred taxes (135.6) (149.6) 71.2 49.5 32.4 Net cash 58.2 Net assets 179.4 180.6

FINANCIAL REVIEW Michael Page International Half Year Results 2012 | 9 Asia Pacific Half year 2012 dividend maintained at 3.25p “Quote” H1 2012 H1 2011 (pence H1 2012 (pence H1 2011 Dividend per share) £m per share) £m Interim dividend 3.25* 9.9* 3.25 9.7 *Proposed and payable on 5 October 2012 H1 2012 H1 2012 H1 2011 H1 2011 Share repurchases shares m £m shares m £m Shares purchased by EBT 2.6 9.4 - - Shares purchased for cancellation - - 5.7 30.3 2012 2011 shares m shares m Weighted average number of shares Basic (000’s) 305.6 305.8 309.9 Diluted (000’s) 315.5 Shares in issue at 30 June 317.2 316.4 24.6 No. of options outstanding at 30 June 23.5

SEGMENTAL ANALYSIS Michael Page International Half Year Results 2012 | 10 HEADCOUNT AND GROSS PROFIT AS REPORTED GEOGRAPHIC ANALYSIS 6000 200 OF GROSS PROFIT 4500 150 152.4 147.8 142.6 141.3 140.3 138.0 136.1 135.9 Headcount 128.1 127.3 123.4 121.0 119.8 118.7 78% of gross profit £m 111.7 112.8 100 3000 105.5 97.9 generated outside of 95.0 90.6 83.8 82.3 the UK 50 1500 Different growth rates across geographies, 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 rapidly changing shape 2007 2008 2009 2010 2011 2012 of the Group H1 PROPORTION OF GROUP GROSS PROFIT 2012 100 14% Asia 11% of Group in 80 H1, the greatest source 21% of growth 60 22% % 40 Headcount +35 (+1%) 43% 20 in H1 2012 (+623 in H1 2011) 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 2011 2012 KEY: EMEA United Kingdom Asia Pacific Americas YOY: +3%* -7% +14%* -1%* *Growth rates in local currency

SEGMENTAL ANALYSIS Michael Page International Half Year Results 2012 | 11 HEADCOUNT AND GROSS PROFIT AS REPORTED DISCIPLINE ANALYSIS OF 6000 200 GROSS PROFIT 4500 150 152.4 147.8 142.6 141.3 140.3 138.0 135.9 136.1 Headcount 128.1 127.3 123.4 121.0 119.8 118.7 £m 111.7 112.8 100 3000 105.5 97.9 95.0 90.6 83.8 82.3 Continued diversification 50 1500 avoids exposure to any one discipline or sector, 0 0 e.g. Financial Services Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 2011 2012 20% of the business H1 PROPORTION OF GROUP GROSS PROFIT 2012 (newer disciplines) 100 20% growing at 14%* 80 20% 60 Ongoing launch and % 18% roll-out of new disciplines 40 42% 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 2011 2012 Finance & Accounting -5%* Engineering, Property & Construction, Procurement & Supply Chain +14%* KEY: Marketing, Sales & Retail +0%* Legal, Technology, HR, Secretarial, Healthcare +9%* *Growth rates in local currency

SEGMENTAL ANALYSIS Michael Page International Half Year Results 2012 | 12 H1 2012 H1 2011 EMEA Gross profit £117.9m -2% £120.3m (43% OF GROUP) Operating profit pre exceptional items £13.4m -21% £17 .0m Headcount 2,185 +3% 2,126 HEADCOUNT AND GROSS PROFIT AS REPORTED 80 2400 70.2 60 65.2 64.1 1800 63.7 61.0 60.3 59.7 58.3 57.6 Headcount 57.5 56.2 52.8 48.5 48.4 47.6 £m 46.7 40 44.6 44.6 1200 42.2 42.0 Broad spread of profit 38.2 35.7 contribution across region 20 600 0 0 Strong growth in Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 2011 2012 Germany, up 25%* PROPORTION OF EMEA GROSS PROFIT H1 2012 100 Opened new offices 25% 80 in Casablanca and 6% 8% 60 Cape Town 16% % 40 8% 20 37% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007 2008 2009 2010 2011 2012 KEY: France Holland Germany Italy Spain Rest of EMEA** YOY: +3%* +0%* +25%* -15%* -13%* +6%* *Growth rates in local currency **Rest of EMEA: Austria, Belgium, Ireland, Luxembourg, Morocco, Poland, Portugal, Qatar, Russia, South Africa, Sweden, Switzerland, Turkey, UAE.

SEGMENTAL ANALYSIS Michael Page International Half Year Results 2012 | 13 H1 2012 H1 2011 UNITED KINGDOM Gross profit £61.7m -7% £66.0m (22% OF GROUP) Operating profit pre exceptional items £8.6m -17% £10.4m Headcount 1,243 -7% 1,343 HEADCOUNT AND GROSS PROFIT Market conditions 2100 75 remained difficult in H1 2012 1400 Gained market share in a 50 49.0 48.5 47.9 Headcount 47.1 very competitive market 45.0 45.0 44.1 £m 36.1 34.3 33.0 33.1 32.3 31.7 31.1 Cautious approach 30.7 30.9 30.6 28.9 28.9 700 28.1 27.3 25 26.5 to headcount reflecting current conditions 0 Reduced reliance on 0 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Financial Services, 2007 2008 2009 2010 2011 2012 now 5% of UK UK continues to be strong source for international transfers