11 April 2018 2018 Trading Update Steve Ingham Kelvin Stagg Chief Executive Officer Chief Financial Officer Another quarter of double digit growth LSE: PAGE.L Website: http://www.page.com/investors
Headline Numbers Kelvin Stagg, Chief Financial Officer
A record quarter for the Group Key financial highlights Gross Profit 187.7m Growth in +12.3% 170.2m 2017 Constant Currency Reported Rates +9.1% 2017 +10.3% +19.7% 2017 Michael Page +10.8% +7.1% 2017 Net Cash c. 91m c. 86m 2017 Page Personnel +15.9% +14.0% 2017 3
Financial Review
Strong brand growth with consistent mix Business balance reflects brands and geographic mix 24% 16% 41% 59% 76% 84% Perm Temp Perm Temp Perm Temp Gross Profit growth in permanent +13.9% to 142.1m Temporary +7.3% to 45.6m Perm:Temp ratio 76:24 broadly in line with prior year Gross Profit growth in permanent +12.5% to 107.5m Temporary +2.5% to 21.2m Gross Profit growth in permanent +18.7% to 34.7m Temporary +12.0% to 24.4m 5
Discipline diversification progress Specialist disciplines continue to deliver record growth 17% 35% m 2018 2017 Reported % Constant % Accounting and Financial Services Engineering, Property & Construction, Procurement & Supply Chain Legal, Technology, HR, Secretarial, Healthcare Marketing, Sales and Retail 65.6 63.3 +3.6% +5.3% 45.1 36.5 +23.6% +25.6% 44.4 37.8 +17.4% +19.9% 32.6 32.6 +0.1% +2.1% Group Total 187.7 170.2 +10.3% +12.3% 24% Gross Profit by Discipline 24% Accounting and Financial Services Legal, Technology, HR, Secretarial, Healthcare 25% 25% Engineering, Property & Construction, Procurement & Supply Chain Marketing, Sales and Retail 6
Headcount Headline Numbers Financial Review Regional Review Summary A new record headcount Ratio of fee earners to support staff maintained at a record 78:22 Increase in fee earners of 183 (+3.3%) Fee earner headcount responds to trading conditions, +82 in EMEA, -28 in the UK 8,000 7,000 +4% Fee earner headcount added in our Large, High Potential markets, as well as where we saw strongest growth Increase in support staff of 99 (+6.5%) 6,000 5,000 4,000 5,497 5,680 Temporary additions made to support our strategic operational support programmes 3,000 2,000 1,000 0 1,532 1,631 2017 2018 Support Staff Fee Earners 7
Gross Profit ( 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 97.9 111.7 112.8 119.9 127.3 147.8 142.6 136.1 135.9 138.0 126.5 126.5 126.8 135.1 126.9 125.1 126.6 137.1 132.9 136.2 135.7 145.3 139.1 135.8 142.2 156.9 158.6 163.3 170.2 182.0 177.3 182.4 187.7 191.1 Fee Earners & Directors Headline Numbers Financial Review Regional Review Summary Record fee earners, record gross profit Investment reflects confidence in growth markets 250 6000 200 5000 4000 150 3000 100 2000 50 1000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 0 Constant currency 8
Regional Review Steve Ingham, Chief Executive Officer
16 countries delivered a record quarter 23 countries achieved YoY growth of over 10% A record quarter for our Large, High Potential markets +21% Americas fastest growing region, record quarters in North America and Latin America 14% 2018 2017 Reported % Constant % EMEA 94.7 78.6 +20.4% +18.2% 18% Gross Profit by Geography 50% UK 33.8 36.4-7.1% -7.1% Asia Pacific 32.9 30.8 +6.7% +13.8% 18% Americas 26.3 24.4 +8.4% +20.4% Group Total 187.7 170.2 +10.3% +12.3% 25% EMEA 25% UK Asia Pacific Americas 10
EMEA saw strong market conditions Gross profit records in France, Germany and 6 other countries Michael Page (55% of EMEA) +19%, Page Personnel (45% of EMEA) +18% France, second largest country in the Group +18% Germany +28%, Michael Page Interim +31% Other 15% France 33% Southern Europe +15%, all countries achieved record quarters despite challenging conditions in Catalonia Investment of 82 fee earners in response to continued favourable trading conditions m 2018 2017 Reported % Constant % Benelux 15% Germany 15% Gross Profit by Geography S. Europe 22% Gross Profit 94.7 78.6 +20.4% +18.2% Headcount 3,105 2,996 +3.6% 50% of Group 11
United Kingdom remained challenging Although positive growth in Page Personnel Brexit continued to weigh on market sentiment Timing of Easter impacted results for the quarter Midlands 18% Page Personnel +2% Strong performances from Legal +25% and Technology +28% London 35% South 23% Gross Profit by Geography m 2018 2017 Reported % North 24% Gross Profit 33.8 36.4-7.1% Headcount 1,409 1,407 +0.1% 18% of Group 12
Asia Pacific performed well 6 countries achieved YoY growth of over 10% Greater China, our third largest market and 7% of the Group, strong growth +17% Japan 12% Japan +19%, continued focus on the domestic Nikkei market South-East Asia, strong performance +19% including Singapore +19% Australia +6%, following fee earner investment and new office in Canberra SE Asia & India 20% Gross Profit by Geography Greater China 41% m 2018 2017 Reported % Constant % Australasia 27% Gross Profit 32.9 30.8 +6.7% +13.8% Headcount 1,643 1,532 +7.2% 18% of Group 13
Americas was our fastest growing region Record quarter for the region US growth +17%, driven by Property & Construction Strong growth in regional offices +24% Rest of Latam 19% Latam +26%, including another quarter of double-digit growth in Brazil +12% Elsewhere, record quarters for all countries including Mexico +26% Canada 5% Gross Profit by Geography USA 50% Mexico 13% m 2018 2017 Reported % Constant % Brazil 13% Gross Profit 26.3 24.4 +8.4% +20.4% Headcount 1,154 1,094 +5.5% 14% of Group 14
Summary
A record Gross Profit performance Continue to invest in Large, High Potential markets Record quarter for the Group Gross Profit +12.3% in constant currency Continue to invest in Large, High Potential markets Continental Europe remains strong Record Group headcount and fee earners Strong net cash position of c. 91m 16
Investor Afternoon 15 May 2018 Page Vision and strategy Value Breadth of management From Vision to Value Non operational Our views on RPO transformation Digital transformation Workplace trends 17
Appendix
A growing international business Delivering on our global diversification strategy Gross Profit 24% 18% 39% 61% 76% 82% FY 2007 FY 2013 2018 UK International 19
Significant variations in recruitment mix Geography Brands 30% 31% 13% 11% 16% 41% 70% 69% 87% 89% 84% 59% EMEA UK Asia Pacific 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 6,000 EMEA ASIA PACIFIC UK AMERICAS 5,497 5,680 5,000 4,000 3,000 2,000 1,000 1,174 2,075 1,657 1,657 1,708 1,466 1,444 2,763 3,837 3,654 2,515 3,273 3,797 3,624 3,810 4,711 4,484 4,278-1985-1990 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 18 2,429 1,316 981 954 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 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 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 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Fee Earner Support Staff 22
Year-on-Year Gross Profit Rates 2016 2017 2018 EMEA +10.3% +13.6% +10.4% +12.4% +14.8% +13.2% +12.6% +19.3% +18.2% UK +0.0% -2.3% -4.7% -6.7% -0.1% -4.5% -7.6% -2.8% -7.1% Asia Pacific -2.0% -3.3% -4.7% +1.7% +3.9% +6.8% +13.9% +14.9% +13.8% Asia -1.5% -6.9% -7.9% -0.5% +3.6% +10.2% +21.9% +20.8% +17.8% Australasia -3.0% +6.6% +3.9% +8.1% +4.7% -1.5% -4.4% +0.7% +4.3% Americas -0.6% -1.1% -2.0% +0.9% +15.2% +13.8% +18.4% +18.8% +20.4% North America +9.2% -1.9% -10.8% -8.4% +12.5% +14.6% +26.5% +18.7% +16.4% Latin America -9.8% -0.1% +9.6% +14.3% +19.2% +12.8% +9.1% +19.0% +25.7% Group Total +3.6% +3.7% +1.3% +3.8% +9.1% +7.7% +8.8% +13.8% +12.3% 23
Contacts and Calendar Contacts Date Event Jeremy Tatham Group Financial Controller Tel: +44 (0) 1932 264 143 Email: investorrelations@michaelpage.com Web: http://www.page.com/investors 15 May 2018 Investor Afternoon 11 July 2018 2018 Trading Update 8 August 2018 HY 2018 Results 10 October 2018 2018 Trading Update 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