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Q4 2016 and Full Year Trading Update
Agenda
Financial Review
Regional Review
Summary and Outlook
Financial Review
Trading Performance – Year-on-Year Gross Profit
• Q4 Gross Profit +3.8% vs. Q4 2015 in constant currencies
• In reported rates Q4 Gross Profit +20.3%, a record for the Group at £163.4m
• In constant currencies, Q4 Gross Profit was £141.0m (£22.4m below reported rates)
• Michael Page +1.0% in Q4 and FY
• Page Personnel +11.2% in Q4 and +8.6% for FY
• Financial position: c. £90m net cash
• Interim and Special Dividends totaling £31.7m were paid on 12 October 2016
4
Reported (£m) Constant
2016 2015 % %
Q4 2016 vs. Q4 2015 163.4 135.8 +20.3% +3.8%
FY 2016 vs. FY 2015 621.1 556.1 +11.7% +3.0%
Permanent vs Temporary – Year-on-Year Gross Profit
Reported (£m) Constant
Q4 2016 2015 % %
Permanent 122.4 100.5 +21.8% +5.0%
Temporary 41.0 35.3 +16.0% +0.4%
Ratio (Perm : Temp) 75:25 74:26
5
Reported (£m) Constant
FY 2016 2015 % %
Permanent 469.9 424.0 +10.8% +2.3%
Temporary 151.2 132.1 +14.5% +5.2%
Ratio (Perm : Temp) 76:24 76:24
• Strong performance in permanent recruitment for Q4 where 14 countries had growth >20%
• FY growth rates in temporary recruitment stronger than in permanent recruitment
Discipline Overview – Year-on-Year Gross Profit
Reported (£m) Constant
Q4% of
Group2016 2015 % %
Accounting and Financial
Services38% 62.4 53.3 +17.1% +1.6%
Legal, Technology, HR, Secretarial
and Healthcare22% 36.6 30.8 +18.9% +1.6%
Engineering, Property &
Construction, Procurement &
Supply Chain
21% 34.1 25.8 +31.9% +13.8%
Marketing, Sales and Retail 19% 30.3 25.9 +16.9% +0.8%
Group Total 100% 163.4 135.8 +20.3% +3.8%
6
• Property & Construction +20% and Engineering +15% mainly due to strong performances in
Europe
Headcount
Q4 2016 Q4 2015 Movement %
Fee earners 4,711 4,484 +227 +5.1%
Support staff 1,388 1,351 +37 +2.7%
Total headcount 6,099 5,835 +264 +4.5%
Ratio 77:23 77:23 86:14
• Q4 increase in fee earners of 50 (+1.1%) and increase in total headcount of 47 (+0.8%)
• Fee earner headcount increased in our large, high potential markets as well as where we saw
strongest growth
• Majority of additional operational support staff for the year based in our European Shared Service
Centre
• Ratio of fee earner to support staff additions 86:14, making progress towards 80:20 target
7
Headcount and Reported Gross Profit - Quarterly
Total headcount increased +4.5% vs. Q4 2015 to 6,099 (Q4 2015: 5,835)
8
Headcount and Reported Gross Profit – Full Year
Record Gross Profit of £621.1m
9
Regional Review
Q4 Regional Overview – Year-on-Year Gross Profit
Reported (£m) Constant
Q4% of
Group2016 2015 % %
EMEA 47% 76.0 56.0 +35.7% +12.4%
UK 21% 33.8 36.2 -6.7% -6.7%
Asia Pacific 19% 30.9 24.8 +24.6% +1.7%
Americas 13% 22.7 18.8 +20.7% +0.9%
Group Total 100% 163.4 135.8 +20.3% +3.8%
11
• 21 countries achieved year-on-year growth of over 10%
• 10 countries delivered record quarters
Full Year Regional Overview – Year-on-Year Gross Profit
Reported (£m) Constant
FY% of
Group2016 2015 % %
EMEA 44% 271.9 217.0 +25.3% +11.5%
UK 24% 146.3 151.6 -3.5% -3.5%
Asia Pacific 19% 119.7 109.1 +9.7% -2.2%
Americas 13% 83.2 78.4 +6.1% -0.8%
Group Total 100% 621.1 556.1 +11.7% +3.0%
12
• 20 countries delivered record years
EMEA (47% of the Group) – Year-on-Year Gross Profit
• Michael Page (55% of EMEA) +11%, Page Personnel (45% of EMEA) +15%
• France (15% of Group) +11%
- Page Personnel (64% of France) +15%
- Michael Page (36% of France) +6%
• Germany (7% of Group) +10%
- Michael Page (64% of Germany) +8%
- Page Personnel (36% of Germany) +14%
• Strong growth in Benelux +18% and Southern Europe +15%
• Middle East & Africa (2% of Group) +16%
13
Reported (£m) Constant
2016 2015 % %
Q4 2016 vs. Q4 2015 76.0 56.0 +35.7% +12.4%
FY 2016 vs. FY 2015 271.9 217.0 +25.3% +11.5%
Headcount at 31 December 2016: 2,553 (31 December 2015: 2,295)
United Kingdom (21% of the Group) – Year-on-Year Gross Profit
• Michael Page (77% of the UK) -8%
• Page Personnel (23% of the UK) -1%
• Technical disciplines: Property & Construction +17%, Procurement & Supply Chain +8% and Engineering
+6%
• Financial Services, Marketing, Sales and Retail were the most challenging
• Private sector (86% of the UK) -8%
• Public sector (14% of the UK) +2%
14
Reported (£m)
2016 2015 %
Q4 2016 vs. Q4 2015 33.8 36.2 -6.7%
FY 2016 vs. FY 2015 146.3 151.6 -3.5%
Headcount at 31 December 2016: 1,411 (31 December 2015: 1,516)
Asia Pacific (19% of the Group) – Year-on-Year Gross Profit
• Asia (13% of Group and 71% of Asia Pacific) -1%
• Mainland China (5% of Group) +7%
• Hong Kong (3% of Group) -4%
• Record quarter in Indonesia +32%
• Launched in Thailand, in Bangkok
• Australasia (6% of Group and 29% of Asia Pacific) +8%
• Australia (5% of Group) +6%; Page Personnel +16%
• New Zealand +47%
15
Reported (£m) Constant
2016 2015 % %
Q4 2016 vs. Q4 2015 30.9 24.8 +24.6% +1.7%
FY 2016 vs. FY 2015 119.7 109.1 +9.7% -2.2%
Headcount at 31 December 2016: 1,205 (31 December 2015: 1,180)
Americas (13% of the Group) – Year-on-Year Gross Profit
• North America (7% of the Group and 54% of Americas) -8%
• US -8%, Canada -8%
• Good growth in Boston, Los Angeles and Philadelphia
• US: Procurement & Supply Chain +41% and Property & Construction +82%
• Latin America (6% of the Group and 46% of Americas) +14%
• Latin America excluding Brazil +28%; Mexico +24%; Brazil -11%
• Record quarter for Argentina and Peru combined up nearly 70%
16
Reported (£m) Constant
2016 2015 % %
Q4 2016 vs. Q4 2015 22.7 18.8 +20.7% +0.9%
FY 2016 vs. FY 2015 83.2 78.4 +6.1% -0.8%
Headcount at 31 December 2016: 930 (31 December 2015: 844)
Summary and Outlook
Summary
Summary
• Q4 Gross Profit: +3.8% in constant currencies and +20.3% in reported rates
• Impact of FX
Q4 reported Gross Profit increased by 16.5 percentage points or £22.4m
• Many markets performing well
Continental Europe and most of Latin America
• Some markets experiencing challenging conditions
Brazil, Hong Kong, the UK and the Financial Services market in New York
• Record Group Headcount and Fee Earners
Q4 Fee Earner Headcount +50 to 4,711 and Total Headcount +47 to 6,099
• Financial position: c. £90m net cash
Interim and Special Dividends of £31.7m were paid on 12 October 2016
• Expect 2016 Operating Profit to be towards the top end of the range of current
market forecasts (£91.0m - £100.6m)
18
Outlook
Summary
• Trading conditions anticipated to remain challenging in the short term
Post UK referendum uncertainty
Financial Services market in New York particularly tough (overall Financial Services
represents 7% of the Group)
Brazil expected to remain challenging
Asia continues to be impacted by confidence levels in Greater China
• Ongoing focus on conversion rates and productivity
Continue to progress strategic projects
Take advantage of growth markets
• Continue to focus on driving profitable growth, whilst remaining able to respond
quickly to any changes in market conditions
Outlook
19
Year-on-Year Gross Profit Growth Rates
2014 2015 2016
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
EMEA +5.7% +5.1% +11.2% +12.5% +12.1% +11.4% +13.0% +10.6% +10.3% +13.6% +10.4% +12.4%
UK +8.1% +11.1% +13.7% +11.0% +11.3% +12.8% +12.5% +2.4% +0.0% -2.3% -4.7% -6.7%
Asia Pacific +1.3% +14.2% +11.1% +10.8% +10.8% +5.6% +5.3% -1.3% -2.0% -3.3% -4.7% +1.7%
-Asia +8.0% +25.0% +16.5% +15.0% +14.1% +8.8% +9.2% +2.4% -1.5% -6.9% -7.9% -0.5%
- Australasia -9.5% -2.9% +1.7% +2.7% +3.9% -1.8% -2.3% -9.3% -3.0% +6.6% +3.9% +8.1%
Americas +16.2% +8.5% +9.6% +20.2% +7.1% +11.5% +5.3% +5.7% -0.6% -1.1% -2.0% +0.9%
- North
America+30.5% +15.5% +22.3% +20.3% +10.6% +21.1% +18.0% +23.5% +9.2% -1.9% -10.8% -8.4%
-Latin
America+7.4% +4.2% +1.5% +19.9% +4.2% +3.8% -4.8% -8.9% -9.8% -0.1% +9.6% +14.3%
Group Total +6.8% +8.9% +11.6% +12.9% +10.9% +10.6% +10.0% +5.5% +3.6% +3.7% +1.3% +3.8%
Cautionary Statement
This presentation contains certain statements that are neither reported financial results nor other historical
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are risk factors that can cause actual results to differ materially from those expressed in or implied by such
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