Investor Presentation March 2017 Joost Kreulen Chief Executive - PowerPoint PPT Presentation

Global Focus, Local Presence Investor Presentation March 2017 Joost Kreulen Chief Executive Officer Spencer Wreford Group Finance Director

Global Focus, Local Presence 1 Cautionary Statement The information contained in this presentation is not audited, is past trends or activities should not be taken as a representation for personal use and informational purposes only and is not that such trends or activities will continue in the future. No intended for distribution to, or use by, any person or entity in responsibility or obligation is accepted to update or revise any any jurisdiction in any country where such distribution or use forward-looking statement resulting from new information, would be contrary to law or regulation, or which would subject future events or otherwise. Nothing in this presentation should Empresaria Group plc (“Company”) or any of its subsidiaries be construed as a profit forecast. (together with the Company, the "Group") to any registration The financial information referenced in this presentation does requirement. not contain sufficient detail to allow a full understanding of the Statements in this presentation reflect the knowledge and results of the Company. This presentation does not constitute information available at the time of its preparation. Certain or form part of any offer or invitation to sell, or any solicitation of statements included or incorporated by reference within this any offer to purchase any shares in the Company or an presentation may constitute “forward - looking statements” invitation or inducement to engage in any other investment including, without limitation, in respect of the Group’s activities, nor shall it or any part of it or the fact of its distribution operations, performance, prospects and/or financial condition. form the basis of, or be relied on in connection with, any By their nature, forward-looking statements involve a number of contract or commitment or investment decision relating thereto, risks, uncertainties and assumptions because they relate nor does it constitute a recommendation regarding the shares to events and depend on circumstances that may occur in the of the Company. Past performance cannot be relied upon as a future; actual results or events may differ materially from those guide to future performance. Liability arising from anything in expressed or implied by those statements. Accordingly, no this presentation shall be governed by English Law. Nothing in assurance can be given that any particular expectation will be this presentation shall exclude any liability under applicable met and reliance should not be placed on any forward-looking laws that cannot be excluded in accordance with such laws. statement. Additionally, forward-looking statements regarding

Global Focus, Local Presence 2 Empresaria is….. an international specialist staffing Group, following a multi-branded strategy to address global talent shortages

Global Focus, Local Presence 3 Overview of the year Diversified business model delivers record profit Record adjusted profit before tax of £9.2m Fourteen consecutive quarters of net fee income growth Five consecutive years of double digit % growth in adjusted EPS Adjusted PBT (£m) Adjusted diluted EPS (p) 10.0 12.0 9.0 10.0 8.0 7.0 8.0 6.0 5.0 6.0 4.0 4.0 3.0 2.0 2.0 1.0 0.0 0.0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Global Focus, Local Presence 4 Overview of the year Delivering against strategy Progress against 5 year targets. Debt to debtors expected to hit 2018 target of 25% Two investments made in high long-term growth sectors Pharmaceutical Strategies successfully integrated Net fee income growth Conversion ratio Debt to debtors ratio Target 10% 20% 25% Actual performance 20% 16.6% 38%

Global Focus, Local Presence 5 Overview of the year Further de-risking the business % of net fee income from temporary recruitment increases to 60% Geographic & sector diversification improves (net fee income charts below) Diversified model mitigates against difficult markets UK (32%) Germany & Austria (27%) Professional services (10%) IT, digital & design (20%) Japan (8%) South East Asia (8%) Technical & industrial (39%) Retail (7%) Americas (8%) Australia & New Zealand (7%) India (5%) Middle East (2%) Executive search (7%) Healthcare (6%) China & Hong Kong (1%) Other (2%) Aviation (4%) Other services (8%)

Global Focus, Local Presence 6 Highlights for 2016 • Revenue growth of 44% (33% constant currency) • Net fee income growth of 20% (10% constant currency) • Conversion ratio increases to 16.6% - fifth year in a row of increase • Full benefit from Pharmaceutical Strategies – invested in business for future growth • Strong results from Germany (Headway), Japan (Skillhouse) & South East Asia (Monroe Consulting) • Solid performances from Australia, Chile, China, India, Finland, UK T&I sector • Debt to debtors ratio increases to 38%, with Debt:EBITDA at 1.5x • Dividend up 15% to 1.15p 20% 16.6% +15% 23% Growth in net fee Growth in Adjusted Conversion ratio Dividend income Profit before tax

Global Focus, Local Presence 7 Financial summary £’m 2016 2015 % var Constant currency % var Revenue 270.4 187.3 44% 33% Permanent revenue 26.5 24.7 7% 0% Temporary revenue 162.6 50% 37% 243.9 Net fee income 59.0 49.2 20% 10% Adjusted operating profit* 9.8 8.0 23% 11% Conversion ratio 16.6% 16.3% Adjusted profit before tax* 9.2 7.5 23% 11% Diluted earnings per share 9.3p 9.3p - Adjusted diluted earnings per share* 11.3p 9.9p 14% Net debt ** (10.5) (7.3) (44%) * Adjusted results exclude amortisation of intangible assets, gain or loss on business disposal, fair value on acquisition of minority interests and exceptional items. ** Reported net debt includes pilot bonds of £5.2m at 31 December 2016 (2015: Nil).

Global Focus, Local Presence 8 Revenue analysis Temporary revenue +50% (+37% in constant currency) Permanent revenue +7% (0% constant currency) • Strong results from Germany, Japan, India, Australia, • Strong results from India, China, Japan, Australia, Chile, UK T&I & Finland Indonesia & Malaysia • Positive impact from investments (Pharmaceutical • Investment in ConSol adds permanent revenue in Q4 Strategies, Rishworth Aviation & ConSol Partners) • Set backs in UK and Middle East businesses • Currency benefit delivers 13% growth Permanent revenue (£m) Temporary revenue (£m) 250.0 28.0 24.0 200.0 20.0 150.0 16.0 12.0 100.0 8.0 50.0 4.0 - - 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Global Focus, Local Presence 9 Net fee income Conversion ratio Net fee income +20% (+10% constant currency) Conversion ratio of 16.6% • Target of +10% average growth for 5 year plan • Average staff numbers increased from 1,096 to 1,282 • Driven by investments and currency • Develop scale of Group to help cover central costs • Temp margin reduced through Rishworth effect • Target of 20% for 5 year plan remains • Organic growth offset by declines in UK & Middle East Conversion ratio Net fee income (£m) 17.0% 60.0 16.0% 50.0 15.0% 40.0 14.0% 30.0 13.0% 20.0 12.0% 10.0 11.0% - 10.0% 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Global Focus, Local Presence 10 Total net debt (£m) Net debt 2012 2013 2014 2015 2016 0.0 (2.0)  Net debt, adding back pilot bonds held by Rishworth, stands at £15.7m (2015: £7.3m) (4.0) (6.0)  Net debt to debtors ratio 38% (2015: 23%) (8.0)  Net debt:EBITDA of 1.5x (2015: 0.8x) (10.0) (12.0)  Reported net debt increases to £10.5m (2015: £7.3m) due to funding of investments (14.0) (16.0)  Average debtor days of 47 (2015: 51)  Cash generative business: 12.0 10.0 Cash generated from operations £11.9m 8.0 Purchase of minority interest £0.2m 6.0 Investments (net) £6.4m 4.0 Dividend paid to shareholders £0.5m Dividends paid to management £0.2m 2.0 shareholders 0.0 Tax & interest paid £5.4m 2012 2013 2014 2015 2016 Net bank loan increase £10.2m Cash generated from operations (£m) Adjusted profit before tax (£m)

Global Focus, Local Presence Investments

Global Focus, Local Presence 12 Rishworth Aviation • Leading specialist international recruitment company supplying leased pilots to airlines • Pilots typically on 3-5 year contracts so good visibility of earnings • Positive working capital with low debtor days and pilot bonds held as cash • Global pilot shortage expected to drive long-term demand • IATA forecast passenger demand will double by 2035 to 7.2 billion passengers • More than half of forecast growth in new passengers from the Asia Pacific region • Commercial aviation industry forecast to need 600,000 new pilots between 2016 and 2035 • Contributed £43.3m of revenue in 2016 100% Diversified Operating in 100% temporary/ across Asia, high growth professional contract Europe and pilot leasing staffing level business Africa sector