14 January 2019 2018 and FY18 Trading Update Steve Ingham Kelvin Stagg Chief Executive Officer Chief Financial Officer A record Quarter and Year for the Group LSE: PAGE.L Website: http://www.page.com/investors
Headline Numbers Kelvin Stagg, Chief Financial Officer
A record Quarter and Year for the Group Key financial highlights 211.1m 182.4m 2017 Growth in Constant Currency +15.4% +15.9% FY 2018 FY 815.0m 711.6m FY 2017 Reported Rates +15.8% +14.5% FY 2018 Michael Page Page Personnel +14.2% +19.0% 2018 +17.9% +21.4% 2018 Fee earner to operational support staff ratio Net Cash 79:21 6,116:1,656 FTE c. 96m c. 96m 2017 3
Financial Review
Growth across brands in Perm and Temp Business balance reflects brands and geographic mix 24% 16% 42% 58% 76% 84% Perm Temp Perm Temp Perm Temp growth in permanent +17.6% to 159.9m Temporary +9.0% to 51.2m Perm:Temp ratio 76:24, slightly up on the prior year growth in permanent +15.3% to 120.9m Temporary +8.7% to 23.2m growth in permanent +25.0% to 39.0m Temporary +9.2% to 28.0m 5
Discipline diversification progress Professional Services disciplines delivered strongest growth 16% 2018 m 2017 m Reported % Constant % 35% Finance Accounting and Financial Services Professional Services 74.6 66.7 +11.8% +11.7% 24% by Discipline Legal, Technology, HR, Secretarial, Healthcare 51.8 41.4 +25.0% +24.5% Technical Engineering, Property & Construction, Procurement & Supply Chain 50.2 42.4 +18.5% +17.5% Marketing, Sales and Retail 34.5 31.9 +8.4% +8.4% Finance 25% Group Total 211.1 182.4 +15.8% +15.4% 25% 25% Professional Services Technical Marketing, Sales and Retail 6
Headcount Headline Numbers Financial Review Regional Review Summary A new record headcount Ratio of fee earners to support staff at a new record of 79:21 Increase in fee earners of 58 (+1.0%) Fee earner headcount added in our Large, High Potential markets, as well as where we saw strongest growth, such as India Fee earner headcount additions in all regions Marginal reduction in support staff of 4 8,000 7,000 6,000 5,000 4,000 Total headcount +0.7% 6,058 +58 6,116 3,000 2,000 1,000 0 1,660-4 1,656 2018 2018 Support Staff Fee Earners 7
( m) as reported 49.5 51.4 47.8 43.9 42.8 45.0 45.0 45.7 48.1 52.3 53.5 56.7 59.9 68.3 69.2 70.2 79.2 87.4 89.1 93.1 105.5 121.0 123.4 128.2 140.3 152.4 141.3 118.7 95.0 83.8 82.3 90.6 97.9 111.7 112.8 119.9 127.3 147.8 142.6 136.1 135.9 138.0 126.5 126.5 126.8 135.1 126.9 125.1 126.6 137.1 132.9 136.2 135.7 145.3 139.1 135.8 142.2 156.9 158.6 163.3 170.2 181.8 177.2 182.4 187.7 208.2 207.7 211.1 210.4 Fee Earners Headline Numbers Financial Review Regional Review Summary Record Quarter and Year Investment reflects confidence in growth markets 250 6000 200 5000 150 4000 3000 100 2000 50 1000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 0 Fee Earners Constant currency 8
Regional Review Steve Ingham, Chief Executive Officer
growth rate of 15.4% Large, High Potential markets* +25% 20 countries achieved YoY growth of over 20% Growth in all four regions Americas fastest growing region, record quarter in Latin America 15% 2018 m 2017 m Reported % Constant % EMEA 104.4 90.9 +14.9% +13.9% 16% by Geography 49% Asia Pacific 41.2 33.5 +23.1% +22.0% UK 33.5 32.8 +2.1% +2.1% 20% Americas 32.0 25.2 +27.0% +29.2% Group Total 211.1 182.4 +15.8% +15.4% 25% EMEA 25% Asia Pacific UK Americas *Germany, Greater China, Latin America, South East Asia and the US 10
EMEA delivered a record quarter Strong growth across all brands Michael Page (55% of EMEA) +13%, Page Personnel (45%) +15% France, now the largest country in the Group, +10%, despite tough comparator in 2017 of +28% Other 15% Impact of disruption from gilet jaunes protests France 34% Germany +28%; Michael Page Interim +44% Benelux +13%; Netherlands +15% Southern Europe +16%; Italy +23%; Spain +10% Benelux 15% by Geography Middle East & Africa +19% m Period 2018 2017 Reported % Constant % Germany 16% S. Europe 20% 104.4 90.9 +14.9% +13.9% FY 394.2 332.3 +18.6% +17.9% Headcount 3,299 2,996 +10.1% 49% of Group 11
Asia Pacific continues strong growth Greater China growth impacted by market uncertainty Greater China, our fourth largest market and 8% of the Group, +12% Mainland China experienced slowing activity due to uncertainty around trade tariffs Japan 14% South East Asia +30%; strong growth in Singapore +37% Japan +28%, both Gaishikei and Nikkei markets strong India +79% SE Asia & India 21% by Geography Greater China 40% Australia +25%, strong growth in all offices m Period 2018 2017 Reported % Constant % 41.2 33.5 +23.1% +22.0% FY 161.3 137.2 +17.5% +20.7% Australasia 25% Headcount 1,709 1,532 +11.6% 20% of Group 12
UK second consecutive quarter of growth Strongest growth in Page Personnel Brexit continued to weigh on market sentiment, particularly with more senior candidates Page Personnel +12% Midlands 18% Michael Page -1% London 36% South 24% by Geography m Period 2018 2017 Reported % 33.5 32.8 +2.1% FY 138.4 140.8-1.7% North 22% Headcount 1,436 1,407 +2.1% 16% of Group 13
Americas was our fastest growing region Record quarter for Latin America US +32%, Canada +20% Boston, Houston and Los Angeles standout performances Rest of Latam 15% Latin America +28%: Brazil +25%; Mexico +30% All other countries in Latin America grew in excess of 20% Canada 6% Mexico 13% by Geography USA 53% m Period 2018 2017 Reported % Constant % 32.0 25.2 +27.0% +29.2% FY 121.1 101.3 +19.5% +27.3% Brazil 13% Headcount 1,328 1,094 +21.4% 15% of Group 14
Summary
A record Quarter and Year for the Group All four regions delivered growth Group growth rate of +15.4% 20 countries delivered YoY growth of over 20% Continued investment in Large, High Potential markets Record fee earner and total headcount Strong net cash position of c. 96m Expect 2018 Operating Profit to be in line with Consensus 2019 Outlook 16
Appendix
Our business model 18
A growing international business Delivering on our global diversification strategy 24% 16% 39% 61% 76% 84% FY 2007 FY 2013 2018 UK International 19
Significant variations in recruitment mix Geography Brands 30% 12% 33% 12% 16% 42% 70% 88% 67% 88% 84% 58% EMEA Asia Pacific UK Americas Michael Page Page Personnel Temp Perm 20
INTERNATIONAL GROWTH Fee Earner Headcount Headline Numbers Financial Review Regional Review Summary Notable fee earner and international growth 7,000 6,000 EMEA ASIA PACIFIC UK AMERICAS 5,497 6,116 5,000 4,000 3,000 2,000 1,000 1,657 1,657 1,708 2,075 1,466 1,444 1,174 2,763 3,837 3,654 2,515 4,711 4,484 4,278 3,797 3,624 3,810 3,273-1985-1990 1990-19992000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1990-99 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 EMEA APAC Americas UK France (1986) Netherlands (1987) Germany (1993) Spain (1997) Italy (1997) Portugal (2000) Switzerland (2001) Belgium (2002) Sweden (2002) Poland S Africa Austria Ireland Turkey UAE Luxembourg Morocco EMEA Australia (1985) Hong Kong (1995) Singapore (1996) Japan (2001) China (2003) New Zealand India Malaysia Taiwan Indonesia Thailand Vietnam ASIA PACIFIC USA (1998) Brazil (2000) Canada Mexico Argentina Chile Colombia Peru AMERICAS 21
Headcount Headline Numbers Financial Review Regional Review Summary Fee earner investment and support staff 7000 6000 5000 4000 3000 2000 1000 0 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Fee Earner Support Staff 22
Year-on-Year Rates 2016 2017 2018 EMEA +10.3% +13.6% +10.4% +12.4% +14.8% +13.2% +12.6% +19.3% +18.2% +18.6% +20.9% +13.9% Asia Pacific -2.0% -3.3% -4.7% +1.7% +3.9% +6.8% +13.9% +14.9% +13.8% +18.4% +27.7% +22.0% Asia -1.5% -6.9% -7.9% -0.5% +3.6% +10.2% +21.9% +20.8% +17.8% +21.2% +32.2% +21.2% Australasia -3.0% +6.6% +3.9% +8.1% +4.7% -1.5% -4.4% +0.7% +4.3% +10.6% +15.7% +25.0% UK +0.0% -2.3% -4.7% -6.7% -0.1% -4.5% -7.6% -2.8% -7.1% -1.9% +0.8% +2.1% Americas -0.6% -1.1% -2.0% +0.9% +15.2% +13.8% +18.4% +18.8% +20.4% +29.2% +30.1% +29.2% North America +9.2% -1.9% -10.8% -8.4% +12.5% +14.6% +26.5% +18.7% +16.4% +27.0% +27.2% +30.3% Latin America -9.8% -0.1% +9.6% +14.3% +19.2% +12.8% +9.1% +19.0% +25.7% +32.2% +33.9% +27.7% Group Total +3.6% +3.7% +1.3% +3.8% +9.1% +7.7% +8.8% +13.8% +12.3% +16.0% +19.7% +15.4% 23
Contacts and Calendar Contacts Date Event Jeremy Tatham Group Financial Controller Tel: +44 (0) 1932 264 143 6 March 2019 FY 2018 Results 10 April 2019 2019 Trading Update Email: investorrelations@michaelpage.com Web: https://www.page.com/investors 24
Disclaimer This presentation contains certain statements that are neither reported financial results nor other historical information. The information contained in this presentation is not audited, is for personal use and informational purposes only and is not intended for distribution to, or use by, any person or entity in any jurisdiction in any country where such distribution or use would be contrary to law or regulation, or which would subject any member of the PageGroup plc group of companies to any registration requirement. No representation or warranty, express or implied, is or will be made in relation to the accuracy, fairness or completeness of the information or opinions made in this presentation. Certain statements included or incorporated by reference within this presentation may constitute forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. There are risk factors that can cause actual results to differ materially from those expressed in or implied by such statements. Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement. PageGroup plc disclaims any intention or obligation to revise or update any forward-looking statements that may be made in this presentation, regardless of whether those statements are affected as a result of new information, future events or otherwise. Nothing in this presentation should be construed as a profit forecast. This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares in PageGroup plc, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decision relating thereto, nor does it constitute a recommendation regarding the shares of PageGroup plc. Past performance cannot be relied upon as a guide to future performance. Liability arising from anything in this presentation shall be governed by English Law. Nothing in this presentation shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws. 25