Pagegroup Plc · LSE:PAGE
Pagegroup — Michael Page International — FY2011 Earnings Presentation
47 slides from Pagegroup's earnings presentation, March 2012
Slide 1: 2011 Results | March 2012
2011 Results | March 2012 Page Michael P. Personnel INTERAATIONS..
Slide 2: Agenda
Michael Page International 2011 Results | 2 Financial Review Segmental Analysis Agenda Strategy Summary and Outlook Appendices
Slide 3: Financial Review
Michael Page International 2011 Results | 3 Financial Review
Slide 4: Record revenue of £1bn – up 22%
FINANCIAL REVIEW Michael Page International 2011 Results | 4 Record revenue of £1bn – up 22% INCOME STATEMENT Constant 2011 2010 Currency £m £m Change Change Revenue 1,019.1 832.3 +22.4% +20.3% Gross profit 553.8 442.2 +25.2% +23.1% Operating profit before non-recurring items 86.0 71.5 +20.3% +17.1%
Slide 5: Full year 2011 dividend increased by 10%
FINANCIAL REVIEW Michael Page International 2011 Results | 5 Full year 2011 dividend increased by 10% DIVIDENDS 2011 2010 (pence 2011 (pence 2010 per share) £m per share) £m Interim 3.25 9.8 2.88 8.8 Final 6.75 20.5 6.12 18.8 * Total 10.00 30.3 9.00 27.6 *Proposed and payable on 6 June 2012 SHARE RE
Slide 6: 28% growth in gross profit from permanent placements
FINANCIAL REVIEW Michael Page International 2011 Results | 6 28% growth in gross profit from permanent placements PERM/TEMP GROSS PROFIT AND GROSS MARGINS Growth Rates 2011 2010 Constant Gross profit £m £m Reported currency Permanent 438.4 343.8 +27.5% +25.4% Temporary 115.4 98.4 +17.3% +15.0% Ratio
Slide 7: Over £58m of cash paid in dividends and share repurchases
FINANCIAL REVIEW Michael Page International 2011 Results | 7 Over £58m of cash paid in dividends and share repurchases CASH FLOW 2011 2010 £m £m Operating profit before non-recurring items 86.0 71.5 Depreciation and share scheme charges 24.4 20.8 Increase in underlying working capital (7.1) (10.6) N
Slide 8: Strong balance sheet with over £58m in cash at end of 2011
FINANCIAL REVIEW Michael Page International 2011 Results | 8 Strong balance sheet with over £58m in cash at end of 2011 BALANCE SHEET 2011 2010 £m £m Intangible assets – Goodwill and other intangibles 2.0 1.5 – Computer software 37.7 26.0 Tangible assets 33.2 28.5 72.9 56.0 Trade and other receivabl
Slide 9: Segmental Analysis
Michael Page International 2011 Results | 9 Segmental Analysis
Slide 10: Geographic analysis of gross profit
SEGMENTAL ANALYSIS Michael Page International 2011 Results | 10 HEADCOUNT AND GROSS PROFIT AS REPORTED GEOGRAPHIC ANALYSIS 6000 200 OF GROSS PROFIT 150 4500 152.4 147.8 142.6 141.3 140.3 136.1 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 Growth in every
Slide 11: Discipline analysis of gross profit
SEGMENTAL ANALYSIS Michael Page International 2011 Results | 11 HEADCOUNT AND GROSS PROFIT AS REPORTED DISCIPLINE ANALYSIS OF 6000 200 GROSS PROFIT 150 4500 152.4 147.8 142.6 141.3 140.3 136.1 Headcount 128.1 127.3 123.4 121.0 119.8 118.7 £m 111.7 112.8 100 3000 105.5 Growth in all specialist 97.9 9
Slide 12: EMEA
SEGMENTAL ANALYSIS Michael Page International 2011 Results | 12 EMEA 43% of Group Group gross profit growth of +27% Operating profit of £32m from £22m in 2010 Headcount +21% to 2,210
Slide 13: EMEA headcount and gross profit
SEGMENTAL ANALYSIS Michael Page International 2011 Results | 13 2011 2010 EMEA Gross profit £239.6m +27% £188.7m Operating profit £31.7m +42% £22.3m Headcount 2,210 +21% 1,831 Strong growth of 27% HEADCOUNT AND GROSS PROFIT AS REPORTED across 18 countries 80 2400 Operating profit growth of 70.2 60 1
Slide 14: United Kingdom
SEGMENTAL ANALYSIS Michael Page International 2011 Results | 14 United Kingdom 24% of Group Gross profit growth of +4% to £130m Operating profit -7% to £18m Headcount -2% to 1,292
Slide 15: United Kingdom headcount and gross profit
SEGMENTAL ANALYSIS Michael Page International 2011 Results | 15 2011 2010 UNITED KINGDOM Gross profit £130.0m +4% £124.9m Operating profit £18.3m -7% £19.6m Headcount 1,292 -2% 1,324 HEADCOUNT AND GROSS PROFIT Gaining market share in 75 2100 a very competitive market Growth in private 50 1400 sector
Slide 16: Asia Pacific
SEGMENTAL ANALYSIS Michael Page International 2011 Results | 16 Asia Pacific 19% of Group Gross profit growth of +43% Operating profit of £26m from £22m in 2010 Headcount +41% to 971
Slide 17: Asia Pacific headcount and gross profit
SEGMENTAL ANALYSIS Michael Page International 2011 Results | 17 2011 2010 ASIA PACIFIC Gross profit £103.4m +43% £72.2m Operating profit £26.2m +17% £22.3m Headcount 971 +41% 691 Significant investment HEADCOUNT AND GROSS PROFIT AS REPORTED 40 YOY, headcount up 41% 1200 to 971 30 900 29.2 Headcount
Slide 18: The Americas
SEGMENTAL ANALYSIS Michael Page International 2011 Results | 18 The Americas 14% of Group Gross profit growth of 43% Operating profit of £10m from £7m in 2010 Headcount +25% to 813
Slide 19: Americas headcount and gross profit
SEGMENTAL ANALYSIS Michael Page International 2011 Results | 19 2011 2010 AMERICAS Gross profit £80.9m +43% £56.4m Operating profit £9.9m +35% £7.3m Headcount 813 +25% 652 HEADCOUNT AND GROSS PROFIT AS REPORTED North America: +21%* 40 1200 YOY in spite of challenging conditions 30 900 Headcount £m 2
Slide 20: Strategy
Michael Page International 2011 Results | 20 Strategy Organic growth Diversification Meritocratic culture
Slide 21: Positioned for growth
STRATEGY Michael Page International 2011 Results | 21 2011 2011 POSITIONED FOR GROWTH Gross Profit £554m Growth 10% Rest of EMEA* +32% Focus on expanding in faster growing and +54% 11% Asia less-developed markets 47% with limited competition 1794 10% Latin America +58% +41% Canada, Germany, Nearly h
Slide 22: Right place, right time – Latin America
STRATEGY Michael Page International 2011 Results | 22 Right place, right time – Latin America Market features Very limited competition Huge population GDP growth up to 8% Natural resources Michael Page São Paulo Established 2000 18 offices, 5 countries, 600 people Proven and established local manage
Slide 23: Right place, right time – Latin America
STRATEGY Michael Page International 2011 Results | 23 Right place, right time – Latin America Market features Very limited competition Huge population GDP growth up to 8% Natural resources Michael Page Rio de Janeiro São Paulo Established 2000 18 offices, 5 countries, 600 people Proven and establish
Slide 24: Right place, right time – Latin America
STRATEGY Michael Page International 2011 Results | 24 Right place, right time – Latin America Market features Mexico City Very limited competition Huge population GDP growth up to 8% Natural resources Michael Page Campinas Rio de Janeiro São Paulo Established 2000 Curitiba 18 offices, 5 countries, 6
Slide 25: Right place, right time – Latin America
STRATEGY Michael Page International 2011 Results | 25 Right place, right time – Latin America Market features Mexico City Very limited competition Huge population Bogota (2012) GDP growth up to 8% Natural resources Recife Michael Page Belo Horizonte Campinas Rio de Janeiro São Paulo Established 2000
Slide 26: Right place, right time – Asia
STRATEGY Michael Page International 2011 Results | 26 Right place, right time – Asia Market features Limited competition Huge population GDP growth up to 9% Widespread and diverse culture Hong Kong Michael Page Established 1995 Singapore 15 offices, 5 countries, 500 people Proven and established loc
Slide 27: Right place, right time – Asia
STRATEGY Michael Page International 2011 Results | 27 Right place, right time – Asia Market features Limited competition Huge population Tokyo GDP growth up to 9% Shanghai Widespread and diverse culture Hong Kong Michael Page Established 1995 Singapore 15 offices, 5 countries, 500 people Proven and
Slide 28: Right place, right time – Asia
STRATEGY Michael Page International 2011 Results | 28 Right place, right time – Asia Market features Limited competition Huge population Tokyo GDP growth up to 9% Shanghai Widespread and diverse culture Hong Kong Shatin Michael Page Established 1995 Singapore 15 offices, 5 countries, 500 people Prov
Slide 29: Right place, right time – Asia
STRATEGY Michael Page International 2011 Results | 29 Right place, right time – Asia Market features Limited competition Beijing Huge population Tokyo GDP growth up to 9% Shanghai New Delhi Pudong Suzhou Widespread and Chaoyan diverse culture Hong Kong Shatin Shenzhen Mumbai Guangzhou Nariman Point
Slide 30: Early days – Africa
STRATEGY Michael Page International 2011 Results | 30 Countries we have Tunisia placed in Morocco Casablanca Countries with offices Offices Algeria Libya Egypt Mauritania Early days Mali Niger Sudan Senegal Chad Revenue generated in Burkina-Faso Djibouti Guinea 36 countries Ghana Benin Ivory Togo Ni
Slide 31: Summary and Outlook
SUMMARY AND OUTLOOK Michael Page International 2011 Results | 31 Group gross profit grew approx. 10% in the first two months of 2012 .EMEA: Southern Europe remains weakest, strong growth in Germany Asia Pacific: Australia performing well, Asia has good levels of activity, with the exception of banki
Slide 32: Appendices
Michael Page International 2011 Results | 32 Appendices
Slide 33: Group quarterly gross profit trend: 2001 to 2011
APPENDICES Michael Page International 2011 Results | 33 Eniamconse feugait ad duip ea feuissi. Group Patem nulla quarterly coreet vent gross lor adipit nulla profitquat. consectem trend: 2001 to 2011 Iquat ulputet, suscinciduis nullam iriliquat. 152.4 147.8 150 142.6 141.3 140.3 136.1 128.1 127.3 12
Slide 34: Clear on brand
APPENDICES Michael Page International 2011 Results | 34 Eniamconse feugait ad duip ea feuissi. Clear Patem nulla coreet vent lor adipit nulla on brand consectem quat. Iquat ulputet, suscinciduis nullam iriliquat. Executive Search 32 Countries 125 Offices 2,682 Fee Earners Qualified Professional 20 C
Slide 35: Strength, depth and consistency by growing organically
APPENDICES Michael Page International 2011 Results | 35 Strength, Eniamconsedepth and ad feugait consistency by growing organically duip ea feuissi. Opportunities for career Patem nulla coreet vent progression and lor adipit nulla retaining entrepreneurs consectem quat. Years Iquat ulputet, of trust
Slide 36: Organic development of the business
APPENDICES Michael Page International 2011 Results | 36 Organic development Eniamconse feugait adofduip the business ea feuissi. Geographic Patem nulla and discipline coreet vent lordiversification adipit nulla consectem quat. Protecting Iquat ulputet, andsuscinciduis expanding the nullam platform i
Slide 37: Key market: Latin America development
APPENDICES Michael Page International 2011 Results | 37 Organic development to market leading position KEY MARKET: Limited competition across the region Development of Latin America Page Personnel in Brazil and Mexico 5 4 4 3 1 44 44 45 36 40 40 1 4 years 4 6 years 1 Cumulative Cumulative 1 gross pr
Slide 38: Key market: Asia development
APPENDICES Michael Page International 2011 Results | 38 Organic development to market leading position KEY MARKET: Headcount more than doubled in 2011 Development of Asia Page Personnel now in Singapore and Hong Kong 5 5 3 3 3 30 0 41 4 42 26 6 1 9 years 15 6 years 1 Cumulative Cumulative 1 gross pr
Slide 39: Long-term investment in headcount
APPENDICES Michael Page International 2011 Results | 39 Eniamconse feugait ad duip ea feuissi. Patem nulla coreet vent lor Long-term on investment adipit nulla consectem quat. Iquat ulputet, suscinciduis nullam iriliquat. 2001 2006 2011 Switzerland South Africa India Japan Russia Malaysia 1996 2008
Slide 40: Fee earner/support staff headcount trend
APPENDICES Michael Page International 2011 Results | 40 Eniamconse feugait ad duip ea feuissi. Feevent Patem nulla coreet earner/support staff quat. lor adipit nulla consectem headcount trend Iquat ulputet, suscinciduis nullam iriliquat. 5000 Ratio Fee Earners Fee Earners : Support Staff 1999 59:41
Slide 41: Cost Structure
APPENDICES Michael Page International 2011 Results | 41 Eniamconse feugait ad duip ea feuissi. Cost Patem nulla coreet vent lor adipit nulla Structure consectem quat. Iquat ulputet, suscinciduis nullam iriliquat. IT (c.10%) MISCELLANEOUS (c.5%) • Data centre consolidation • Travel - reduces support
Slide 42: Conversion rates through cycles
APPENDICES Michael Page International 2011 Results | 42 Eniamconse feugait ad duip ea feuissi. Conversion Patem nulla coreet vent rates through lor adipit nulla consectem quat. cycles Iquat ulputet, suscinciduis nullam iriliquat. 40 35 30 25 Operating profit/Gross profit (%) 20 15 10 5 0 2001 2002 2
Slide 43: Dividend increased through economic cycles
APPENDICES Michael Page International 2011 Results | 43 Dividend increased Eniamconse feugaitor admaintained through economic cycles duip ea feuissi. Excess cash coreet Patem nulla used tovent repurchase lor adipitshares nulla consectem quat. Maintain Iquat ulputet, strongsuscinciduis balance sheet
Slide 44: Number of shares and options outstanding since IPO
APPENDICES Michael Page International 2011 Results | 44 Eniamconse feugait ad duip ea feuissi. Patem Number of shares nulla coreet vent lor adipit and optionsquat. nulla consectem outstanding since IPO Iquat ulputet, suscinciduis nullam iriliquat. 175p 410 161p Number of shares and options outstandi
Slide 45: Operating profit and share price development
APPENDICES Michael Page International 2011 Results | 45 Eniamconse feugait ad duip ea feuissi. Patem nulla Operating profitnulla coreet vent lor adipit and share quat. consectem price development Iquat ulputet, suscinciduis nullam iriliquat. 600 180 595p 555p 553p 500 150 Operating Profit before NRI
Slide 46: www.michaelpageinternational.com
www.michaelpageinternational.com
Slide 47: Cautionary Statement
Cautionary Statement 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
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