Pagegroup Plc · LSE:PAGE
Pagegroup — Q2 2014 Earnings Presentation
22 slides from Pagegroup's earnings presentation, Jul 15, 2014
Slide 1: Second Quarter 2014 Trading Update
Second Quarter 2014 Trading Update 15 July 2014
Slide 2: Overview
PageGroup Second Quarter 2014 Trading Update | 2 Overview Group Q2 Gross Profit Impact of FX • +9% in constant currency • Q2 Gross Profit lower by c. • +2% in reported rates £10m • Y-o-Y growth in all regions • c.£19m in H1 H1 Headcount H1 Financial Position • FE in Q2 +72 (+2%) • • Other Cash inves
Slide 3: Trading Performance
PageGroup Second Quarter 2014 Trading Update | 3 Trading Performance Group Growth Rates Group Gross Profit £m £m Reported Constant Q2 2014 vs Q2 2013 137.2 135.1 +1.5% +8.9% Q2 2014 vs Q1 2014 137.2 126.6 +8.4% +8.9% H1 2014 vs H1 2013 263.7 261.9 +0.7% +7.9% H1 2014 vs H2 2013 263.7 251.9 +4.7% +12
Slide 4: Permanent:Temporary
PageGroup Second Quarter 2014 Trading Update | 4 Permanent:Temporary Group Q2 2014 Q2 2013 Growth Rates Perm:Temp Gross Profit £m £m Reported Constant Permanent 106.1 104.7 +1.3% +9.4% Temporary 31.1 30.4 +2.4% +7.4% Ratio (Perm:Temp) 77:23 77:23 H1 2014 H1 2013 Growth Rates Perm:Temp Gross Profit £
Slide 5: Group headcount and reported gross profit
PageGroup Second Quarter 2014 Trading Update | 5 Group headcount and reported gross profit Group • Total headcount increased by 4% during H1 to 5,337 (Q4 ’13: 5,130) • Support staff 15% of H1 headcount additions
Slide 6: H1 Discipline overview
PageGroup Second Quarter 2014 Trading Update | 6 H1 Discipline overview Group H1 2014 H1 2013 Growth Rates Gross Profit Proportion £m £m Reported Constant Finance & Accounting 40% 104.4 107.4 -2.8% +3.5% Engineering, Property & Construction, Procurement 21% 54.5 52.0 +4.8% +12.8% & Supply Chain Lega
Slide 7: Q2 Regional overview
PageGroup Second Quarter 2014 Trading Update | 7 Q2 Regional overview Group Q2 2014 Q2 2013 Growth Rates Gross Profit Proportion £m £m Reported Constant EMEA 40% 54.8 55.0 -0.5% +5.0% UK 25% 34.8 31.3 +11.1% +11.1% Asia Pacific 21% 28.3 28.2 +0.6% +14.2% Americas 14% 19.3 20.6 -6.6% +8.7% Group Tota
Slide 8: Year-on-Year Gross Profit growth rates
PageGroup Second Quarter 2014 Trading Update | 8 Year-on-Year Gross Profit growth rates Group 2013 2014 Q1 Q2 Q3 Q4 Q1 Q2 EMEA -15.0% -8.2% -7.1% -1.4% +5.7% +5.0% UK -1.2% +0.3% +5.0% +5.1% +8.1% +11.1% Asia Pacific -0.3% -8.0% -4.3% -5.7% +1.3% +14.2% - Asia +13.5% +1.6% +7.4% +2.7% +8.0% +25.0% -
Slide 9: EMEA Region
PageGroup Second Quarter 2014 Trading Update | 9 EMEA Region Growth Rates Gross Profit £m £m Reported Constant Q2 2014 vs Q2 2013 54.8 55.0 -0.5% +5.0% Q2 2014 vs Q1 2014 54.8 52.6 +3.9% +5.0% H1 2014 vs H1 2013 107.4 107.1 +0.3% +5.2% Headcount up 34 (+2%) to 2,036 (Q1 ’14: 2,002) • France (14% of
Slide 10: UK Region
PageGroup Second Quarter 2014 Trading Update | 10 UK Region Gross Profit £m £m Growth Rates Q2 2014 vs Q2 2013 34.8 31.3 +11.1% Q2 2014 vs Q1 2014 34.8 32.8 +6.2% H1 2014 vs H1 2013 67.6 61.4 +10.1% Headcount up 11 (+1%) to 1,361 (Q1 ’14: 1,350) • Private sector +11% on Q2 ’13 • Public sector +14% o
Slide 11: Asia Pacific Region
PageGroup Second Quarter 2014 Trading Update | 11 Asia Pacific Region Growth Rates Gross Profit £m £m Reported Constant Q2 2014 vs Q2 2013 28.3 28.2 +0.6% +14.2% Q2 2014 vs Q1 2014 28.3 23.0 +23.4% +23.5% H1 2014 vs H1 2013 51.3 54.3 -5.5% +7.8% Headcount flat at 1,114 (Q1 ’14: 1,112) • Asia (14% of
Slide 12: Americas Region
PageGroup Second Quarter 2014 Trading Update | 12 Americas Region Growth Rates Gross Profit £m £m Reported Constant Q2 2014 vs Q2 2013 19.3 20.6 -6.6% +8.7% Q2 2014 vs Q1 2014 19.3 18.1 +6.3% +5.8% H1 2014 vs H1 2013 37.4 39.1 -4.4% +11.8% Headcount up 5 (+1%) to 826 (Q1 ’14: 821) • Latin America (8
Slide 13: Strategic Focus: Large, High Potential Markets
PageGroup Second Quarter 2014 Trading Update | 13 Large High Strategic Focus: Large, High Potential Markets Potential Markets • Strategy implemented in 2013 • Response to experience of 2009-2011 - FE headcount cuts impacted ability to respond as markets quickly recovered • Commitment to invest throu
Slide 14: Market Criteria: Large, High Potential Markets
PageGroup Second Quarter 2014 Trading Update | 14 Large High Market Criteria: Large, High Potential Markets Potential Markets Macro criteria • Leading global economies, positive long-term macro prospects • Ideally, under-developed recruitment outsourcing penetration • Scalable business opportunity /
Slide 15: Gross Profit & Fee Earners: CAGRs to H1 2014
PageGroup Second Quarter 2014 Trading Update | 15 Large High Gross Profit & Fee Earners: CAGRs to H1 2014 Potential Markets CAGR %* Since 2005 Since 2009 Since 2013 Large, High Poten=al Gross Profit 18.6% 21.3% 13.1% Markets Fee Earner 21.5% 21.3% 15.1% Headcount PageGroup Gross Profit 7.2% 9.2% 7.9%
Slide 16: Performance: 2005 to 2013
PageGroup Second Quarter 2014 Trading Update | 16 Large High Performance: 2005 to 2013 Potential Markets £m / no. FEs 2005 2009 2013 Germany Gross Profit 10.7 19.6 29.0 Fee Earners 66 144 198 US Gross Profit 7.8 11.6 23.6 Fee Earners 80 95 211 LatAm Gross Profit 6.3 17.1 40.5 Fee Earners 58 159 384 Chi
Slide 17: 2014 Business Environment
PageGroup Second Quarter 2014 Trading Update | 17 Large High 2014 Business Environment Potential Markets Macro Professional Fee rates/ environment recruitment Job Count Candidates salaries Confidence slowly Slight increase Candidate-‐short Fee rates above Group Germany Posi>ve, improving, improving;
Slide 18: Strategy in 2014
PageGroup Second Quarter 2014 Trading Update | 18 Large High Strategy in 2014 Potential Markets Expanding FE headcount Germany Building temp business scale & capability; leveraging leading perm posi>on Transfers-‐in of experienced Page management (2 MDs YTD) US Broadening of disciplines; opening of
Slide 19: Conclusion
PageGroup Second Quarter 2014 Trading Update | 19 Conclusion • Solid performance, improving trends • High Potential Markets in positive growth • Infrastructure roll-out: Website & PRS (Page Recruiting System) rolled out in more US offices (rest of US & UK starts in Q3) • Remains in strong cash posit
Slide 20: Cautionary Statement
PageGroup Second Quarter 2014 Trading Update | 20 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
Slide 21: 2013 half year results
PageGroup 2013 half year results | 21
Slide 22: Regional overview
PageGroup Second Quarter 2014 Trading Update | 22 Regional overview Appendix H1 2014 H1 2013 Growth Rates Gross Profit Proportion £m £m Reported Constant EMEA 41% 107.4 107.1 +0.3% +5.2% UK 26% 67.6 61.4 +10.1% +10.1% Asia Pacific 19% 51.3 54.3 -5.5% +7.8% Americas 14% 37.4 39.1 -4.4% +11.8% Group T