Second Quarter Trading Update 16 July 2013 PageGroup Second Quarter - PowerPoint PPT Presentation

PageGroup First Quarter Interim Management Statement | 1 Second Quarter Trading Update 16 July 2013

PageGroup Second Quarter 2013 Trading Update | 2 Group “ Gross profit up sequentially ” Growth Rates GROUP GROSS PROFIT £m £m Reported Constant Q2 2013 vs Q2 2012 135.2 138.0 -2.0% -3.8% Q2 2013 vs Q1 2013 135.2 126.8 +6.6% +6.9% H1 2013 vs H1 2012 262.0 273.9 -4.3% -5.2% • Gross profit up 7% sequentially • Focus on consistency of systems and processes in operational support • Headcount decreased by 87 (-1.7%) during Q2 to 4,955 (Q1 2013: 5,042) • H1 total headcount down by 144 (-2.8%), 34 (-0.9%) fee earners and 110 (-7.5%) operational support

PageGroup Second Quarter 2013 Trading Update | 3 Group “ Improving growth rates in both perm and temp markets ” Q2 2013 Q2 2012 Growth Rates PERM/TEMP GROSS PROFIT £m £m Reported Constant Permanent 105.2 109.2 -3.7% -5.3% Temporary 30.0 28.8 +4.2% +1.9% Ratio (Perm:Temp) 78:22 79:21 H1 2013 H1 2012 Growth Rates PERM/TEMP GROSS PROFIT £m £m Reported Constant Permanent 203.1 215.7 -5.9% -6.6% Temporary 58.9 58.2 +1.3% -0.1% Ratio (Perm:Temp) 78:22 79:21

PageGroup Second Quarter 2013 Trading Update | 4 “ Headcount reflects market conditions and our focus on operational Group support consistency ” GROUP QUARTERLY HEADCOUNT AND GROSS PROFIT ¡

PageGroup Second Quarter 2013 Trading Update | 5 Group “ Discipline diversity helping overall performance ” Q2 Q2 Q2 2013 2013 2012 Growth Rates GROSS PROFIT Proportion £m £m Reported Constant Finance & Accounting 42% 57.0 57.6 -1.0% -2.7% Legal, Technology, HR, 21% 27.8 27.8 -0.0% -1.5% Secretarial and Healthcare Engineering, Property & Construction, Procurement & 19% 26.3 27.1 -2.9% -5.0% Supply Chain Marketing, Sales & Retail 18% 24.1 25.5 -5.4% -7.3% Group Total 100% 135.2 138.0 -2.0% -3.8% • Discipline diversification supports growth rates • 13 of our 16 disciplines grew sequentially • Procurement, Supply Chain, Healthcare, Life Sciences and Legal performed best • Financial Services now 8% of Group gross profit

PageGroup Second Quarter 2013 Trading Update | 6 “ Diversification reduces exposure to regional changes in market Group conditions ” Q2 Q2 Q2 2013 2013 2012 Growth Rates GROSS PROFIT Proportion £m £m Reported Constant EMEA 41% 55.1 57.6 -4.4% -8.2% UK 23% 31.2 31.1 +0.3% +0.3% Asia Pacific 21% 28.2 30.6 -7.7% -8.0% Americas 15% 20.7 18.7 +10.7% +9.8% Group Total 100% 135.2 138.0 -2.0% -3.8% • Rate of growth impacted by strength of economy and maturity of recruitment industry • Continued investment in key markets – Asia, Americas, Germany • Year-on-year growth in 20 countries and sequential growth in 31 countries • 11 countries had record quarters in Q2 including Japan, South Africa, Russia, UAE, Mexico and Canada

PageGroup Second Quarter 2013 Trading Update | 7 Group “ Year-on-year quarterly growth rates improving in 77% of the Group ” 2012 vs 2011 2013 vs 2012 Q1 Q2 Q3 Q4 Q1 Q2 EMEA +10.1% -2.5% -7.2% -10.9% -15.0% -8.2% UK -3.7% -9.2% -10.9% -2.1% -1.2% +0.3% Asia Pacific +17.8% +11.2% +2.6% +10.1% -0.3% -8.0% Americas +7.6% -8.6% -10.3% -1.1% +2.1% +9.8% Group Total +7.6% -2.5% -6.5% -3.6% -6.7% -3.8% Growth rates in local currency • Improvement in growth rates in EMEA • Year-on-year growth turns positive in UK • Asia Pacific impacted by slowdown in Australia largely due to the Mining and Resources sector • Growth in the Americas driven by North America and Mexico

PageGroup Second Quarter 2013 Trading Update | 8 EMEA “ EMEA growth rates improved – up 6% sequentially ” Growth Rates EMEA GROSS PROFIT £m £m Reported Constant Q2 2013 vs Q2 2012 55.1 57.6 -4.4% -8.2% Q2 2013 vs Q1 2013 55.1 52.1 +5.8% +5.8% H1 2013 vs H1 2012 107.2 117.9 -9.1% -11.7% Headcount down 83 (-4.2%) at 1,881 (Q1 2013: 1,964) • France (14% of the Group) +6% on Q1 2013 (-11% on Q2 2012) • Germany (6% of the Group) +4% on Q1 2013 (-18% on Q2 2012) • Larger businesses of France and Germany up sequentially but remain challenging • Record quarters for UAE, South Africa, Russia, Africa and Turkey • Strong performance from Spain +8% on Q2 2012 • Headcount down in H1, largely operational support staff

PageGroup Second Quarter 2013 Trading Update | 9 “ Headcount reacting to gross profit and focus on consistency of systems EMEA and processes ” EMEA QUARTERLY HEADCOUNT AND GROSS PROFIT

PageGroup Second Quarter 2013 Trading Update | 10 United Kingdom “ Confidence gradually improving : year-on-year and sequential growth ” Growth UK GROSS PROFIT £m £m Rates Q2 2013 vs Q2 2012 31.2 31.1 +0.3% Q2 2013 vs Q1 2013 31.2 30.2 +3.4% H1 2013 vs H1 2012 61.4 61.7 -0.4% Headcount down 5 (-0.4%) to 1,256 (Q1 2013: 1,261) • Private sector (87.5% of UK business) down 3.2% on Q2 2012 • Public sector (12.5% of UK business) up 38.5% on Q2 2012 • Strongest performances from Logistics, Procurement & Supply Chain, Buying & Merchandising, Digital, Energy and Public Sector disciplines • Financial Services stabilised at 4% of UK gross profit, consistent for 3 quarters

PageGroup Second Quarter 2013 Trading Update | 11 United Kingdom “ Headcount remains flat, in line with gross profit ” UK QUARTERLY HEADCOUNT AND GROSS PROFIT

PageGroup Second Quarter 2013 Trading Update | 12 Asia Pacific “ Australia remains challenging, balanced by growth in Asia ” Growth Rates ASIA PACIFIC GROSS PROFIT £m £m Reported Constant Q2 2013 vs Q2 2012 28.2 30.6 -7.7% -8.0% Q2 2013 vs Q1 2013 28.2 26.1 +8.0% +9.4% H1 2013 vs H1 2012 54.3 56.9 -4.5% -4.4% Headcount up 5 (+0.5%) to 1,076 (Q1 2013: 1,071) • Asia (13% of the Group) +12% on Q1 2013 (+3% on Q2 2012) • Japan, Malaysia and Taiwan had record quarters in Q2 • Southern China, India and Hong Kong performed well • Australia and New Zealand (8% of the Group) +6% on Q1 2013 (-21% on Q2 2012) • Market conditions in Australia remain challenging but stable

PageGroup Second Quarter 2013 Trading Update | 13 “ Headcount flat, reflecting investment in Asia and gross profit Asia Pacific performance in Australia ” ASIA PACIFIC QUARTERLY HEADCOUNT AND GROSS PROFIT

PageGroup Second Quarter 2013 Trading Update | 14 Americas “ All businesses in region up sequentially ” Growth Rates AMERICAS GROSS PROFIT £m £m Reported Constant Q2 2013 vs Q2 2012 20.7 18.7 +10.7% +9.8% Q2 2013 vs Q1 2013 20.7 18.4 +12.0% +12.3% H1 2013 vs H1 2012 39.1 37.4 +4.6% +5.9% Headcount down 4 (-0.5%) to 742 (Q1 2013: 746) • Latin America (9% of the Group) +7% on Q1 2013 (flat on Q2 2012) • Sequential growth in Brazil • Record quarters for Mexico and Colombia • North America (6% of the Group) +21% on Q1 2013 (+30% on Q2 2012) • Management changes in 2012 driving positive results • Record month for North America in June, record quarter for Canada

PageGroup Second Quarter 2013 Trading Update | 15 Americas “ Strong quarter from region, particularly North America ” AMERICAS QUARTERLY HEADCOUNT AND GROSS PROFIT

PageGroup Second Quarter 2013 Trading Update | 16 Financials “ Strong financial position ” • Strong net cash at 30 June 2013 in the region of £47m • 2012 final dividend of 6.75p per share paid on 21 June (£20.8m) • 319m shares outstanding at 30 June 2013 (of which 11m are held in EBT) • 24m share options outstanding at 30 June 2013 • 0.2m options were exercised • Amortisation of new software commenced – full year charge expected to be c. £6m

PageGroup Second Quarter 2013 Trading Update | 17 Financials “ Positioning the Group to deliver long-term profitable growth ” • A robust first half • Continuing to invest for growth in key markets – Asia, Germany and the Americas • Continued focus on operational support consistency • Positioning the Group to deliver long-term profitable growth for shareholders • Evidence of improving conditions in some of our markets