2012 Results March PageGroup 2012 results 1

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1 2012 Results March 2013 PageGroup 2012 results 1

2 PageGroup 2012 results 2 Agenda Financial Review Segmental Analysis Strategy Summary Appendices

3 Financial Review PageGroup 2012 results 3

4 PageGroup 2012 results 4 Financial Review Resilient gross profit performance in challenging conditions INCOME STATEMENT Before exceptional items 2012 m Exceptional items 2012 m After exceptional items 2012 m 2011 m Change before exc. items Constant currency change before exc. items Revenue % +0.3% Gross Profit % -1.5% Operating Profit 65.1 (7.8) % -22.3% Net Interest (expense)/income (0.3) - (0.3) 0.1 Profit before tax 64.8 (7.8) % Taxation (23.3) 2.5 (20.8) (29.3) -20.5% Profit after Tax 41.5 (5.3) % Effective tax rate on profit 36.0% 32.2% 36.5% 34.0% Earnings per share Basic (pence) % Diluted (pence) %

5 PageGroup 2012 results 5 Financial Review Exceptional items Exceptional item relates to the removal of a management layer for Continental Europe and the Americas One Executive Board with Executive Directors responsible for each region reporting directly to CEO Legacy management structure removed; will not be replaced Severance packages totalled 7.8m, including 1.5m of accelerated share plan charges Payback c. 2 years (c. 3m per year cost saving) Result is a global, unified management structure

6 PageGroup 2012 results 6 Financial Review Full year 2012 dividend maintained at 10.0p DIVIDENDS 2012 (pence per share) 2012 m 2011 (pence per share) Interim Final Total m SHARE REPURCHASES 2012 Shares m 2012 m 2011 Shares m Repurchased and cancelled Purchased by EBT Total m WEIGHTED AVERAGE NUMBER OF SHARES 2012 m 2011 m Basic (000 s) Diluted (000 s) Shares in issue at 31 December No. of options outstanding at 31 December

7 PageGroup 2012 results 7 Financial Review Temporary recruitment more resilient in weaker market conditions PERM/TEMP GROSS PROFIT 2012 m 2011 m Reported Growth Rates Constant currency Permanent % -3.2% Temporary % +5.0% Ratio (Perm:Temp) 78:22 79:21 GROSS MARGINS Permanent 97.1% 96.8% Temporary 20.6% 20.4% Group 53.2% 54.3%

8 PageGroup 2012 results 8 Financial Review 31m paid in dividends, 18m shares acquired CASH FLOW 2012 m 2011 m Operating profit before exceptional items Exceptional items (7.8) - Operating profit after exceptional items Depreciation and share scheme charges Decrease/(increase) in underlying working capital 2.3 (7.1) Net cash inflow from operating activities Net interest (expense)/income Taxation paid (0.3) 0.1 (24.3) (37.1) Net capital expenditure (16.5) (29.4) Dividends paid (30.6) (28.5) Issue of own shares for share options Purchase of own shares and cancelled - (30.3) Purchase of shares by EBT (18.0) - Net cash inflow/(outflow) 4.7 (20.3) Exchange losses (1.5) (2.1) Movement in net cash 3.2 (22.4)

9 PageGroup 2012 results 9 Financial Review Strong balance sheet with over 61m in cash at end of 2012 BALANCE SHEET Intangible assets Tangible assets Trade and other receivables Trade, other payables, current and deferred taxes (138.8) (149.6) 2012 m 2011 m Net cash Net assets

10 Segmental Analysis PageGroup 2012 results 10

11 PageGroup 2012 results 11 Segmental Analysis Geographic Analysis of Gross Profit 77% of gross profit generated outside the UK Different growth rates across geographies, rapidly changing shape of the Group Asia, now 12% of the Group, the greatest source of growth Headcount down by 187, -4% from 5,286 end 2011 *Growth rates in local currency

12 PageGroup 2012 results 12 Segmental Analysis Discipline Analysis of Gross Profit Continued diversification avoids exposure to any one discipline or sector Finance & Accounting now 42% of Group Financial Services only 8% of Group Newer disciplines, 20% of Group growing at 6% Ongoing launch and roll-out of new and existing disciplines *Growth rates in local currency

13 PageGroup 2012 results 13 Segmental Analysis Year-on-year quarterly growth rates 2012 vs 2011 Q1 Q2 Q3 Q4 EMEA +10.1% -2.5% -7.2% -10.9% UK -3.7% -9.2% -10.9% -2.1% Asia Pacific +17.8% +11.2% +2.6% +10.1% Americas +7.6% -8.6% -10.2% -1.1% Group Total +7.6% -2.5% -6.5% -3.6% Growth rates in local currency

14 PageGroup 2012 results 14 Segmental Analysis EMEA 41% of Group Gross profit of 218m Operating profit of 22m Headcount -8% to 2,040

15 PageGroup 2012 results 15 Segmental Analysis EMEA (41% of Group) Market conditions increasingly challenging Gross profit 218.4m -9% 239.6m Operating profit before exceptional items 22.1m -30% 31.7m Headcount 2,040-8% 2,210 Profitable in all major countries Newer businesses such as Africa, Middle East, Austria, Luxembourg, Russia and Turkey all performed well Opened new offices in Casablanca and Cape Town **Rest of EMEA: Austria, Belgium, Holland, Ireland, Italy, Luxembourg, Morocco, Poland, Portugal, Qatar, Russia, South Africa, Spain, Sweden, Switzerland, Turkey, UAE. *Growth rates in local currency

16 PageGroup 2012 results 16 Segmental Analysis United Kingdom 23% of Group Gross profit of 121m Operating profit of 15.8m Headcount -4% to 1,237

17 PageGroup 2012 results 17 Segmental Analysis United Kingdom (23% of Group) Market conditions tough but stable UK remains diversified in geography, disciplines and permanent/temporary revenue mix Gross profit 121.4m -7% 130.0m Operating profit before exceptional items 15.8m -14% 18.3m Headcount 1,237-4% 1,292 Technical disciplines such as procurement, supply chain and logistics performed well Reduced reliance on Financial Services now 4% of UK UK excluding Financial Services fell 2% in 2012

18 PageGroup 2012 results 18 Segmental Analysis Asia Pacific 22% of Group Gross profit of 115m Operating profit of 29m Headcount +7% to 1,036

19 PageGroup 2012 results 19 Segmental Analysis Asia Pacific (22% of Group) Asia +17%* growth in gross profits Australia and New Zealand +3%* in gross profits Gross profit 114.9m +11% 103.4m Operating profit 29.0m +11% 26.2m Headcount 1,036 +7% 971 New offices opened in Taipei and Suzhou Strong performance from our newest businesses Malaysia and India *Growth rates in local currency

20 PageGroup 2012 results 20 Segmental Analysis The Americas 14% of Group Gross profit of 72m Operating loss of - 1.7m Headcount -3% to 786

21 PageGroup 2012 results 21 Segmental Analysis Americas (14% of Group) Clear market leader in Latin America with 5 countries, 20 offices and 538 headcount Gross profit 72.2m -11% 80.9m Operating (loss)/profit - 1.7m -117% 9.9m Headcount 786-3% 813 Continuing to invest in platform for future growth Launched in Bogota, Colombia and opened new office in Macaé, Rio de Janeiro Several changes to North American management team *Growth rates in local currency

22 Strategy PageGroup 2012 results 22

23 PageGroup 2012 results 23 Strategy CLEAR, CONSISTENT STRATEGY OF ORGANIC GROWTH Improving market share by diversification in more mature recruitment markets Investing our resources in the less developed recruitment markets that offer the greatest growth and margin potential

24 PageGroup 2012 results 24 Strategy Positioned for growth Constant investment has transformed shape of the business 1/2 of the business now positioned in markets that have the highest growth potential TRACK RECORD (Gross Profit CAGR) Years % 23% 28% 3% 28% 2% FEE EARNER CHANGE (CAGR) Years % 21% 29% 3% 24% 1% * Austria, Belgium, Ireland, Luxembourg, Morocco, Poland, Portugal, Qatar, Russia, South Africa, Sweden, Switzerland, Turkey, UAE.

25 PageGroup 2012 results 25 Strategy Investment every year to diversify the business Clear, consistent strategy of organic growth continuing diversification by geography and discipline Meritocratic, building trust, clear values and culture retaining high flyers and entrepreneurs

26 PageGroup 2012 results 26 Strategy Mature recruitment markets DIVERSIFICATION By discipline and by management level Michael Page in 34 countries Page Personnel in 21 countries Page Executive across full network 58% of gross profit from Non-Finance & Accounting 20% from technical disciplines growing 6% in % of Group is Page Personnel

27 PageGroup 2012 results 27 Strategy Investment continues UK Remains Group s largest and most established country Strong profit resilience with longterm potential for growth Invest in retaining and growing established and stable management team key to gaining market share Key exporter of management talent to launch and grow in new countries

28 PageGroup 2012 results 28 Strategy Less developed, high potential markets PROVEN ESTABLISHED BUSINESSES CODE CRACKED CHINA, GERMANY, LATIN AMERICA UNPROVEN ESTABLISHING BUSINESSES CRACKING THE CODE NORTH AMERICA, INDIA, AFRICA

29 PageGroup 2012 results 29 Strategy Proven investment development of China New offices opened: Suzhou and Taipei Continued investment in headcount, +15% in 2012

30 PageGroup 2012 results 30 Strategy Proven investment development of China % of Group gross profit 6.4% 2012 growth rate* +10.3% No. of offices 10 Headcount 356 Peak conversion rate to date 54% Market position #1 Growth in 2012 (Q1 +17%, Q2 +14%, Q3-2%, Q4 +15%) Successfully rolling out offices and disciplines Rapidly growing local management Very experienced in region, team of MDs/Directors Strong conversion rates/profitability Very underdeveloped recruitment market, limited competition *Growth rates in local currency

31 PageGroup 2012 results 31 Strategy Proven investment development of Latin America Clear market leader with 5 countries, 20 offices and 538 headcount Launched in Bogota, Colombia and new office in Macaé, Rio de Janeiro

32 PageGroup 2012 results 32 Strategy Proven Investment development of Latin America % of Group gross profit 9.3% 2012 growth rate* -4.9% No. of offices 20 Headcount 538 Clear market leader 2012 tough but continued investment 13 years of successfully rolling out offices Strong local, experienced management team Track record of opening in new countries Record year in Chile and Mexico Peak conversion rate to date 29% Market position #1 High potential conversion rates/profitability Very limited competition, huge potential to grow *Growth rates in local currency

33 PageGroup 2012 results 33 Strategy Proven investment development of Germany High salaries and fee rates Strong permanent recruitment bias but investing in temp/interim Organically grown management team investing heavily in headcount growth Page Personnel rolled out nationally Michael Page Interim launched

34 PageGroup 2012 results 34 Strategy Proven investment development of Germany 2012 growth rate* 8.4% Opportunities: No. of offices 7 Headcount 258 Peak conversion rate to date 48% Market leader in Perm Big investment in Temp/Interim H1 growth +25%, H2 growth -6% Successfully rolled out offices/disciplines High conversion rates possible, highly profitable Market position #1 Perm Small Temp Huge potential for new offices *Growth rates in local currency

35 PageGroup 2012 results 35 Strategy Investment development of North America Platform of offices established Recent investment in offices in San Francisco and Houston Past years of profitability ( 4m, 20% conversion rate) New senior management team Re-focused management team by discipline Culture re-established Strong salaries and fee rates Very similar to UK market, Perm and Temp potential

36 PageGroup 2012 results 36 Strategy Investment development of India Established two years ago Experienced management team (21 years) Recently invested in two new internal management transfers Finished second year trading profit in Q4 Compared to Brazil at this stage (12 consultants) encouraging progress Fee rates comparable to UK Mix of local/international clients 4 disciplines

37 PageGroup 2012 results 37 Strategy Investment development of Africa Fees in 38 countries to date 66 headcount 4 offices Peak conversion rates (21%) showing promise Experienced management team (39 years) International transfers into region

38 Summary PageGroup 2012 results 38

39 PageGroup 2012 results 39 Summary Key facts Group gross profit reduced by -4.9%, to 527m following record in 2011 EMEA: Market conditions tough although newer countries such as the Middle East and Russia have performed well Asia Pacific: Australia resilient but worrying signs from mining & resources sector. Asia performed well throughout year UK: Activity levels have stabilised and benefiting from geographical and discipline diversification, strong profitability in challenging environment Americas: Market leader in Latin America, North America benefiting from changes to the senior management team Well-positioned for future growth in existing and new markets

40 Appendices PageGroup 2012 results 40

41 Appendices Group quarterly gross profit trend: 2002 to 2012 PageGroup 2012 results 41

42 PageGroup 2012 results 42 Appendices Clear on brand At 31 December 2012

43 PageGroup 2012 results 43 Appendices In the last 12 months we continued to invest in building a consistent business through global organic growth Organic global expansion

44 PageGroup 2012 results 44 Appendices Long-term approach to investment

45 PageGroup 2012 results 45 Appendices Fee earner/support staff headcount trend Ratio Fee Earners : Support Staff : : : : : : : : : : : : : :29

46 PageGroup 2012 results 46 Appendices Cost structure IT (c.10%) Data centre consolidation reduces support staff - greater resilience and disaster recovery - development of new recruitment software MISCELLANEOUS (c.5%) Travel Staff welfare PROPERTY (c.10%) Concentrate within network Spare capacity in some larger offices Additional space required in fastest growing regions Staff Costs (c.75%) Headcount reacting to market conditions Additional headcount added at entry level lowers average cost per employee Consistent profit share model, bonuses flex with profits Incentives are mixture of cash and for senior staff, share schemes

47 PageGroup 2012 results 47 Appendices Strong conversion rates whilst investing for the future

48 PageGroup 2012 results 48 Appendices Dividends, share repurchase history and year end net cash/debt position Dividend increased or maintained through economic cycles Excess cash used to repurchase shares Maintain strong balance sheet position

49 PageGroup 2012 results 49 Appendices Number of shares and options outstanding

50 PageGroup 2012 results 50 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 or regulation, or which would subject any member of the PageGroup to any registration requirement. 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 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 the Company, 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 the Company. 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.

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