full year results 2020 - page group

Steve Ingham

Kelvin Stagg

Chief Executive Officer

Chief Financial Officer

LSE: PAGE.L

Website: https://www.page.com/investors

3 March 2021

Full Year Results 2020

http://www.page.com/investors

Headline Numbers

Kelvin Stagg, Chief Financial Officer

Headline Numbers Financial Review Strategic Progress Summary and Outlook

3

Group operating profit of £17.0m, EPS of -1.8p

FY Overview

£610.2m£855.5m FY 2019

-28.1%+5.0% FY 2019

Gross Profit

Constant

Currency

Growth

£17.0m£146.7m FY 2019

2.8%17.1% FY 2019

Operating

Profit

Conversion

Rate

136.9%

28.3% FY 2019

-1.8p32.2p FY 2019

Effective

Tax Rate

Earnings

Per Share

£166.0m£97.8m FY 2019

6,6947,698 FY 2019

-26.43p FY 2019

Net Cash

Total

Headcount

Financial Review


Fee earner headcount stabilising

Protecting and investing in our platform

5

0

1500

3000

4500

6000

0

50

100

150

200

250

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Fee E

arn

ers

Gro

ss P

rofit

(£m

) as r

eport

ed

Fee Earners

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020


6

COVID-19 impacted profitability in all of our regions

Group Conversion Rate of 2.8%

FY 2020 FY 2019

£m Gross ProfitGP Growth

Rate (CC %)

Operating

Profit

Conversion

Rate*Gross Profit

Operating

Profit

Conversion

Rate*

Group 610.2 -28.1% 17.0 2.8% 855.5 146.7 17.1%

EMEA 319.4 -24.4% 30.6 9.6% 418.3 90.3 21.6%

Asia Pacific 121.1 -25.1% 3.8 3.1% 163.3 19.8 12.1%

Americas 88.8 -31.4% -7.0 -7.9% 138.8 19.3 13.9%

UK 80.9 -40.0% -10.3 -12.8% 135.1 17.3 12.8%

• Conversion rate decrease to 2.8%, due to sharp decline in gross profit due to COVID-19

• EMEA the most resilient region, the Americas and the UK most impacted

* Operating profit as a percentage of gross profit


Increase in Effective Tax Rate

£m 2020 2019 Reported %

Profit Before Tax 15.5 144.2 -89.2%

Tax Charge 21.3 40.8 -47.8%

Overseas Tax 61.7%

Losses 22.3%

Disallowable and other

permanent differences33.9%

UK Tax 19.0%

Effective Tax Rate 136.9% 28.3%

7

• Expect tax rate to return to pre-COVID levels of c. 27% - 28% in the medium-term


Net cash of c. £166m

A strong and robust balance sheet

8

£m 2020 2019

Intangible assets 41.8 39.1

Tangible assets 26.4 31.9

Right-of-use assets 95.4 120.2

Trade and other receivables 265.6 380.6

Trade, other payables, current and deferred taxes (175.8) (216.6)

Lease liabilities (103.5) (128.6)

Net cash 166.0 97.8

Net assets 315.9 324.4


Increase mainly due to unwind of working capital

Strong net cash position of £166m

Cash Increase Decrease

9

97.8

166.0

84.3

84.6

31.6

21.7 0.4

14.4

39.2

40

80

120

160

200

240

280

Dec 19 EBITDA WorkingCapital

Tax and netinterest

Net capex Share optionsexercised

EBT sharepurchases

Lease Liabilityrepayments

Exchange Dec 20

£m

5.8


10

Decision to repay UK Furlough

Improvement in conditions through 2020

Strategic Progress

Steve Ingham, Chief Executive Officer


One integrated platform

12

Investments – Customer Connect

Revenue Attribution

Better visibility Better alignment Better customer experience

of activity delivered

and followed up…

enabling consultants to

do what they do best…

by managing engagement across

all touch points…

Single Global

Web Platform

Intelligent automation engaging customers throughout lifecycleIntelligent automation engaging customers throughout lifecycle

Engaging the Talent Pool

Reactivated client programme

Candidate

Client

Personalised campaigns, driving conversion rates

Ongoing relevant campaigns:

win-back and cross-sell

Talent pools refined: identify engaged candidate database

Joined up view of client contact activity and revenue

generation

Candidate to Client transformation


Investments – Page Insights

Unique business intelligence tool providing our customers invaluable insights

and supporting our data-driven decisions and targeting

Combines internal and external data sources

• Global data from hundreds of millions of job postings

• Internal application data

• Government labour statistics

13


Approaching 400 experienced hires added during 2020

Experienced hires

14

Final dividend of 9.00 pence per share, increase on 2017 of +4.7%

Ongoing investment continues in 2021

Focused in our strategic areas of investment

Adding value to our existing fee earners

Shorter timeline to full productivity

Experienced in recruitment, average of 4 years


Strengthening the Executive Board

15

New Appointments New Roles

Eamon Collins – Chief Customer Officer (CCO)

14 years

Isabelle Bastide – Regional Managing Director,

France, Spain and Portugal

21 years

Nicholas Kirk – Regional Managing Director,

North America and the UK

26 Years

Nicolas Béchu – Regional Managing Director,

Northern and Central Europe, Italy and Turkey

25 Years

Patrick Hollard – Regional Managing Director,

Latin America, Middle East and Africa

25 Years

Anthony Thompson – Regional Managing

Director, Asia Pacific

20 Years

Oliver Watson – Chief Operating Officer (COO)

25 Years

Gary James – Chief People Officer (CPO)

36 Years


Integrating in to our business

Sustainability

16

• Environment – 26% reduction in reported

CO2 emissions during 2020, all of which

have been offset.

• Social – integrating the UN Sustainable

Development Goals into our business.

• Governance – We have joined the UN

Global Compact


17

Cultural FrameworkContinued work on our culture, purpose and values

Summary and Outlook


2020 impacted significantly by COVID-19

Summary

19


Repayment of UK Furlough

Continued suspension of dividend policy

Strong Balance Sheet with net cash of £166.0m

Investment in 400 experienced fee earners, Customer Connect and

Page Insights

Fee earners reduced by 882, -14.6%

Operating Profit of £17.0m, Conversion rate of 2.8%

Gross Profit in constant currency -28.1%


High degree of global macro-economic uncertainty

Outlook

20



Maintained our focus on long-term vision for the Group

Highly experienced senior management team

Continue the roll out of technology and innovation

Continue to maintain the platform and investing carefully in headcount

Brexit deal has provided a degree of clarity

Rolling lockdowns across the Group

Appendix


22

Our business model


23

Delivering on our global diversification strategy

A growing international business

FY 2007 FY 2013 FY 2020

Gross Profit

InternationalUK


66%

84% 84%

63%

34%

16% 16%

37%

EMEA Asia Pacific Americas UK

Temp Perm

24

Geography Brands

Significant variations in recruitment mix

FY 2020 FY 2020

81%

50%

19%

50%

Michael Page Page Personnel


EMEA

AMERICAS

ASIA

PACIFIC

25

Portugal

(2000)

Switzerland

(2001)

Belgium

(2002)

Sweden

(2002)

Poland S Africa

Ireland

UAE

Austria

Turkey

Luxembourg

Morocco

Thailand

Indonesia

Taiwan

India

MalaysiaNew

Zealand

Japan

(2001)

China

(2003)

Australia

(1985)

USA (1998) Brazil (2000) Canada Mexico Chile Colombia Peru

INT

ER

NA

TIO

NA

L G

RO

WT

H

France

(1986)

Netherlands

(1987)

Germany

(1993)

Spain

(1997)

Italy

(1997)

Hong Kong

(1995)

Singapore

(1996)

Argentina

UKASIA

PACIFICEMEA AMERICAS

Long term fee earner and international growth

Vietnam

1985-1990 1990-1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

922813

2,321

1,089

Philippines

Panama


26

Fee earner investment and support staff


27

Year-on-Year Gross Profit Rates

2018 2019 2020

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

EMEA +18.2% +18.6% +20.9% +13.9% +11.4% +9.0% +5.6% +2.3% -11.1% -42.9% -24.5% -18.6%

Asia Pacific +13.8% +18.4% +27.7% +22.0% +14.9% +4.7% -8.1% -7.9% -16.6% -41.7% -28.2% -10.2%

– Asia +17.8% +21.2% +32.2% +21.2% +15.6% +5.8% -10.6% -7.6% -17.1% -38.1% -23.4% -4.3%

– Australasia +4.3% +10.6% +15.7% +25.0% +13.0% +0.9% +1.1% -9.6% -16.6% -53.7% -43.6% -28.4%

Americas +20.4% +29.2% +30.1% +29.2% +21.4% +17.4% +13.0% +5.0% -3.0% -55.0% -41.9% -23.2%

– North America +16.4% +27.0% +27.2% +30.3% +20.9% +18.9% +10.3% +4.6% +2.5% -49.4% -38.7% -30.0%

– Latin America +25.7% +32.2% +33.9% +27.7% +21.6% +15.3% +16.9% +5.5% -10.8% -63.5% -46.5% -12.7%

UK -7.1% -1.9% +0.8% +2.1% +1.7% -2.4% -4.1% -4.8% -16.0% -61.5% -47.9% -34.2%

Group Total +12.3% +16.0% +19.7% +15.4% +11.7% +7.4% +2.1% -0.4% -11.7% -47.6% -31.9% -20.2%


28

Contacts and Calendar

Contacts

Jeremy Tatham – Group Financial Controller

Tel: +44 (0) 1932 264 143

Email: [email protected]

Web: https://www.page.com/investors

Date Event

14 April 2021 Q1 2021 Trading Update


29

This presentation contains certain statements that are neither reported financial results nor other historical information.

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full year results 2020 - page group

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