-
Half Year Results 2011 | August 2011
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Michael Page International Half Year Results 2011 | 2
Agenda
Financial Review
Segmental Analysis
Strategy
Summary and Outlook
Appendices
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Michael Page International Half Year Results 2011 | 3
Financial Review
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FINANCIAL REVIEW Michael Page International Half Year Results 2011 | 4
31% growth in gross profit with growth in every geography
INCOME STATEMENT
H1 2011£m
H1 2010£m Change
Constant Currency
ChangeRevenue 502.1 393.5 +27.6% +25.8%
Gross profit 275.1 209.6 +31.3% +29.5%
Operating profit before non-recurring items 45.4 32.5 +39.6% +36.5%
Non-recurring items - 17.1
Operating profit 45.4 49.6 (8.5%)
Net interest income 0.1 0.5
Non-recurring interest income - 11.3
Profit before tax 45.5 61.4 (26.0%)
Taxation (15.0) (19.9) (24.8%)
Profit after tax 30.5 41.5 (26.5%)
Effective tax rate on profit 33.0% 32.5%
Earnings per share before NRI
Basic (pence) 10.0 6.6 +51.5%
Diluted (pence) 9.7 6.5 +49.2%
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FINANCIAL REVIEW Michael Page International Half Year Results 2011 | 5
35% growth in gross profit from permanent placements
PERM/TEMP GROSS PROFIT AND GROSS MARGINS
Growth Rates
Gross profitH1 2011
£mH1 2010
£m ReportedConstant currency
Permanent 219.4 163.0 +34.6% +32.7%
Temporary 55.7 46.5 +19.6% +18.0%
Ratio (Perm:Temp) 80:20 78:22
Permanent 96.6% 96.4%
Temporary 20.2% 20.7%
Group gross margin 54.8% 53.3%
• Permanentplacementsdrivinggrowth
• Grossmarginontemporaryplacementsstableduringfirsthalfof2011
• Strongerpricingenvironmentinfastergrowingmarkets,whicharepredominantlypermanent
• CompetitivepricingpressureinUK
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FINANCIAL REVIEW Michael Page International Half Year Results 2011 | 6
£49m of cash paid in dividends and share repurchases
CASH FLOW H1 2011 £m
H1 2010 £m
Operating profit before non-recurring items 45.4 32.5
Non-recurring items - 17.1
Operating profit after non-recurring items 45.4 49.6
Depreciationandshareschemecharges 11.5 10.5
Increaseinunderlyingworkingcapital (35.1) (15.9)
Movement in VAT related payables and receivables - (41.0)
Netcashinflowfromoperatingactivities 21.8 3.2
Net interest income 0.1 0.5
Non-recurring interest income - 11.4
Taxation paid (19.1) (5.3)
Net capital expenditure (13.0) (4.6)
(10.2) 5.2
Dividends paid (18.8) (16.1)
Issueofownsharesforshareoptions 1.0 1.4
Purchaseofownshares (30.3) (61.8)
Netcashoutflow (58.3) (71.3)
Exchangemovement 1.3 (0.2)
Movementinnetcash (57.0) (71.5)
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FINANCIAL REVIEW Michael Page International Half Year Results 2011 | 7
Funding the expansion
WORKING CAPITALH1 2011
£m
Underlying H1 2010
£m
VATH1 2010
£mH1 2010
£m(Increase)/decrease in receivables (51.7) (32.2) 9.0 (23.2)
Increase/(decrease) in payables 16.6 16.3 (50.0) (33.7)
Increaseinworkingcapital (35.1) (15.9) (41.0) (56.9)
• Cashoutflowfromincreaseinunderlyingtradereceivablesasactivitylevelsimprove
• Debtordays52(2010:47days).Theincreasewasmostlytemporaryandrelatedtothe roll-outofanewtempbillingsystemintheUK
Capital expenditure
• Officeupgrades/refurbishmentstokeyofficesinLondon,ManchesterandBirmingham
• Fit-outcostsfor8newofficesinLatinAmericaand6newofficesinAsia
• Computerhardwareinvestmentsinregionaldatacentres
• Continuedinvestmentinsystemsreplacementproject
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FINANCIAL REVIEW Michael Page International Half Year Results 2011 | 8
Strong balance sheet with £24m in cash in H1 2011
BALANCE SHEET 30 June 2011
£m
31 Dec 2010
£mIntangible assets 32.3 27.5
Tangible assets 32.0 28.5
64.3 56.0
Tradeandotherreceivables 226.9 169.5
Tradeandotherpayables (147.5) (126.9)
79.4 42.6
Currentanddeferredtaxes 1.8 (1.7)
Netcash 23.6 80.5
Net assets 169.1 177.4
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FINANCIAL REVIEW Michael Page International Half Year Results 2011 | 9
Half year 2011 dividend increased by 12.8%
Dividend
H1 2011 (pence
per share)H1 2011
£m
H1 2010 (pence
per share)H1 2010
£m
Interim 3.25* 9.8* 2.88 8.9
*Proposed and payable on 7 October 2011
Share repurchasesH1 2011
shares mH1 2011
£mH1 2010
shares mH1 2010
£m
SharespurchasedbyEBT - - 15.0 61.8
Sharespurchasedforcancellationatanaveragepriceof£5.28 5.7 30.3 - -
2011 shares m
2010 shares m
Weighted average number of shares
Basic (000’s) 305.8 316.6
Diluted (000’s) 315.4 324.1
Sharesinissueat30June 316.4 324.1
No.ofoptionsoutstandingat30June 23.5 25.0
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FINANCIAL REVIEW Michael Page International Half Year Results 2011 | 10
Dividend increased as business grows
Excess cash used to repurchase shares
Maintain strong balance sheet position
DIVIDENDS, SHARE REPURCHASE HISTORY AND YEAR END NET CASH/DEBT POSITION
-35
0
35
70
105
140
H1 2011*2010200920082007200620052004200320022001
£m
*Dividend in H1 2011is only 2010 final dividend
121p
175p
170p
204p
356p496p
233p
196p
411p
528p
Dividends paidKEY:
Shares repurchasedby EBT
Option exercises
Shares repurchased and cancelled
Net cash/debt at year end
Average cost per share repurchased
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Michael Page International Half Year Results 2011 | 11
Segmental Analysis
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SEGMENTAL ANALYSIS Michael Page International Half Year Results 2011 | 12
Headcount +623 (+14%) in H1
Different growth rates across geographies, rapidly changing shape of the Group
76% of gross profit generated outside of the UK
Asia and Latin America, 19% of Group in H1, the greatest source of growth
Growth in every geography
0
50
100
150
200
Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1
£m
Head
count
2007
105.
5 121.
0
123.
4
128.
1
140.
3 152.
4
141.
3
118.
7
95.0
83.8
82.3 90
.6 97.9 11
1.7
112.
8
119.
8
127.
3 147
.8
2008 2009 2010 2011
2007 2008 2009 2010 2011
HEADCOUNT AND GROSS PROFIT AS REPORTED
0
1500
3000
4500
6000
PROPORTION OF GROUP GROSS PROFIT
0
20
40
60
80
100
Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1
%
United KingdomKEY: EMEA Asia Pacific Americas+8%YOY: +30%* +49%* +55%*
GEOGRAPHIC ANALYSIS OF GROSS PROFIT
*Growth rates in local currency
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SEGMENTAL ANALYSIS Michael Page International Half Year Results 2011 | 13
All specialist disciplines showed growth
Ongoing launch and roll-out of new disciplines
Continued discipline diversification, with the smallest and newset disciplines having fastest rates of growth
DISCIPLINE ANALYSIS OF GROSS PROFIT
0
50
100
150
200
Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1
£m
Head
count
2007
105.
5 121.
0
123.
4
128.
1
140.
3 152.
4
141.
3
118.
7
95.0
83.8
82.3 90
.6 97.9 11
1.7
112.
8
119.
8
127.
3 147
.8
2008 2009 2010 2011
2007 2008 2009 2010 2011
HEADCOUNT AND GROSS PROFIT AS REPORTED
0
1500
3000
4500
6000
PROPORTION OF GROUP GROSS PROFIT
0
20
40
60
80
100
Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1
%
Finance & AccountingKEY:
Marketing, Sales & RetailEngineering, Property & Construction, Procurement & Supply ChainLegal, Technology, HR, Secretarial, Healthcare
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SEGMENTAL ANALYSIS Michael Page International Half Year Results 2011 | 14
EMEA 44% of Group
Gross profit growth of 32% Operating profit of £17.0m
+76% from £9.6m in 2010 Headcount +29% to 2,126
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SEGMENTAL ANALYSIS Michael Page International Half Year Results 2011 | 15
Strong growth of 32% across 18 countries
The Netherlands now growing strongly, up 24%*
Launched new business in Qatar and second office in Rome
France, the Group’s second largest country, up over 27%*
Spare capacity of c.20% in France, Holland, Germany, Spain and Italy
0
20
40
60
80
Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q10
600
1200
1800
2400
£m
Hea
dco
unt
2007
42.0 4
8.5
48.4
57.5 6
5.2 70
.2
63.7
59.7
47.6
38.2
35.7 4
2.2
44.6
46.7
44.6
52.8 56
.2
64.1
2008 2009 2010 2011
2007 2008 2009 2010 2011
0
20
40
60
80
100
Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1
%
PROPORTION OF EMEA GROSS PROFIT
HEADCOUNT AND GROSS PROFIT AS REPORTED
FranceKEY: Holland Germany Italy Spain Rest of EMEA**+27%*YOY: +24%* +36%* +32%* +22%* +36%*
**Rest of EMEA: Austria, Belgium, Ireland, Luxembourg, Poland, Portugal, Qatar, Russia, South Africa, Sweden, Switzerland, Turkey and UAE
H1 2011 H1 2010Gross profit £120.3m +32% £91.3mOperating profit £17.0m +76% £9.6mHeadcount 2,126 +29% 1,645
EMEA
*Growth rates in local currency
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SEGMENTAL ANALYSIS Michael Page International Half Year Results 2011 | 16
United Kingdom 24% of Group
Gross profit growth of 8% Operating profit of £10.4m +8% from £9.6m in 2010 Headcount +10% to 1,343
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SEGMENTAL ANALYSIS Michael Page International Half Year Results 2011 | 17
+8% growth in gross and operating profit
Market conditions tough but stable through H1 2011
Growth in the private sector, held back by a more restrained public sector
Gaining market share in a very competitive market
0
25
50
75
Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q10
700
1400
2100
£m
Hea
dco
unt
2007
44.1 47
.9
49.0
45.0
47.1
48.5
45.0
36.1
28.9
28.1
27.3
26.5 28.9 32
.3
33.0
30.7
31.7 34
.3
2008 2009 2010 2011
HEADCOUNT AND GROSS PROFIT
UNITED KINGDOMH1 2011 H1 2010
Gross profit £66.0m +8% £61.2mOperating profit £10.4m +8% £9.6mHeadcount 1,343 +10% 1,218
• FinancialServices,approximately10%ofUK,+5%inH1
• Headcountwillremainflat,saveforourgraduateintakeinSeptember
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SEGMENTAL ANALYSIS Michael Page International Half Year Results 2011 | 18
Asia Pacific 18% of Group
Gross profit growth of 56% Operating profit of £12.2m
+28.8% from £9.5m in 2010 Headcount +74% to 874
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SEGMENTAL ANALYSIS Michael Page International Half Year Results 2011 | 19
Asia +80%* growth in gross profits
Australia and New Zealand +24%* in gross profits
New businesses launched in India and Malaysia ahead of plan
June an all time record in Japan, China, Singapore and New Zealand
New office opened in Pudong, China and doubled space in Beijing
0
10
20
30
Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q10
250
500
750
1000
£m
Hea
dco
unt
2007
12.3 1
4.7
15.4
14.8 16
.4
19.6
18.4
12.4
9.5
9.7
10.8 12
.2 13.2
18.0 2
0.3
20.7
21.4
27.2
2008 2009 2010 2011
2007 2008 2009 2010 2011
0
20
40
60
80
100
Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1
%
PROPORTION OF ASIA PACIFIC GROSS PROFIT
HEADCOUNT AND GROSS PROFIT AS REPORTED
Australia and New ZealandKEY: Asia+24%*YOY: +80%*
ASIA PACIFICH1 2011 H1 2010
Gross profit £48.6m +56% £31.2mOperating profit £12.2m +29% £9.5mHeadcount 874 +74% 501
*Growth rates in local currency
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SEGMENTAL ANALYSIS Michael Page International Half Year Results 2011 | 20
The Americas 14% of Group
Gross profit growth of 55% Operating profit of £5.8m
+54% from £3.8m in 2010 Headcount +57% to 778
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SEGMENTAL ANALYSIS Michael Page International Half Year Results 2011 | 21
0
8
16
24
Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q10
250
500
750
£m
Hea
dco
unt
2007
7.2
9.9
10.6
10.7 11
.6
14.1
14.3
10.5
9.0
7.8 8.6 9.
6 11.2
14.7
14.9 15
.6
18.0
22.3
2008 2009 2010 2011
2007 2008 2009 2010 2011
0
20
40
60
80
100
Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1
%
PROPORTION OF AMERICAS GROSS PROFIT
HEADCOUNT AND GROSS PROFIT AS REPORTED
North AmericaKEY: Latin America+28%*YOY: +71%*
Latin America now 10% of Group and 539 heads, with gross profit up 71%*
North America, conditions remain tough, but gross profits up 28%*
Brazil now the Group’s third largest country
New office in Houston, USA
AMERICAS2011 2010
Gross profit £40.3m +55% £25.9mOperating profit £5.8m +54% £3.8mHeadcount 778 +57% 496
*Growth rates in local currency
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Michael Page International Half Year Results 2011 | 22
Strategy Organic growth Diversification
Meritocratic culture
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STRATEGY Michael Page International Half Year Results 2011 | 23
Strong conversion rates whilst investing heavily for the future
-20
-15
-10
-5
0
5
10
15
20
25
30
35
40
H1 20112010200920082007200620052004Op
erat
ing
pro
fit/G
ross
pro
fit (%
)
United KingdomKEY: EMEA Asia Pacific Americas Group
2003
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STRATEGY Michael Page International Half Year Results 2011 | 24
One clear, consistent strategy of organic growth constantly diversifying by geography and discipline
Meritocratic, building trust, clear values and culture, retaining high flyers and entrepreneurs
186/2,121
143111
1/05
4
14
21
17/106
356
16
77
105
92/697
2,260165/1,784
3,549
28
216
136
32
250
152
226/2,280
5,121
29
4,498CountriesKEY:
Country Disciplines
Offices
Directors: Number/Years of Experience
Headcount
230
12 yearsCumulative
profit before tax
£391m
16 yearsCumulative
profit before tax
£25m
H1 201120102009200319911976
6 yearsCumulative
profit before tax
£511m
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STRATEGY Michael Page International Half Year Results 2011 | 25
Business has been transformed over last 10 years
Half of our business is growing at over 50% year-on-yearPOSITIONED FOR GROWTH
*Austria,Belgium,Ireland,Luxembourg, Poland,Portugal,Qatar,Russia,SouthAfrica, Sweden,Switzerland,Turkey,UAE.
Rest of EMEA*
Asia
Latin America
Canada, Germany, Italy, New Zealand, Spain
France, Holland and USA
Australia and UK
+42%
+79%
+75%
+34%
+25%
+14%
2000Fee Earners: 1,657
H1 2011Fee Earners: 3,699
12% 196
11%
9%
11%
15%
46% 1,695
30% 50121% 778
58% 960 33% 1,226
+52% +46%
PROPORTION OF RECRUITMENT THAT IS OUTSOURCED
>70%KEY: 30-70%
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STRATEGY Michael Page International Half Year Results 2011 | 26
10/1272777777
111
1/107
3
15
4
3/44
69
7
7/94
147
3
26
3
30
305
5
36
15
11/145
420
10
H1 2011Kuala Lumpur
Mumbai – Nariman PointNew Delhi
Pudong (7/11)Mumbai – Bandra
2010Guangzhou
Hong Kong – AdmiraltyJurong
20092003Shanghai
2006Kowloon
2008Beijing
Shenzen
1996Singapore
2001Tokyo
1995Hong Kong –Pacific Place
6 yearsCumulative gross profit
£112.7m
9 yearsCumulative gross profit
£44.8m
CountriesKEY:
Country Disciplines
Offices
Directors: Number/Years of Experience
Headcount
5 new offices opened in Kuala Lumpur, Delhi, Pudong and two offices in Mumbai in 2011
Office space doubled in Beijing Headcount up by 1/3 in first 6 months of 2011
INVESTMENT:Development of Asia
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Michael Page International Half Year Results 2011 | 27STRATEGY
Asia:Investing for
the future
Inthelast24months:
•2newcountries–IndiaandMalaysia
•8newoffices,now15(+114%)intheregion
•Officefloorspacedoubled,nowwith capacity for 570 (26% spare capacity)
•196promotionsacrosstheregion
•Headcountupc.200%to420
•26internationaltransfersintoregion
•40internationallyrecruitedtraineesinChina
•PagePersonnelroll-outinHongKong andSingapore
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Michael Page International Half Year Results 2011 | 28STRATEGY
India:Investing for
the future
After5monthsoftrading:
•3officeswithheadcountcapacityforover100
•Startupmanagementteamofinternationaltransfers:
1 Managing Director 1 Director 3 Managers 1Consultant
•Totalheadcountof29(afurther10commited tojoininAugust)
•Managementsecondmentprogrammesetup–startsinOctober+6experiencedMPsecondees
•Yearendheadcounttargetof50
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STRATEGY Michael Page International Half Year Results 2011 | 29
Market leading position through organic growth
Limited competition across the region
Page Personnel now in Brazil, Mexico and Argentina
INVESTMENT:Development of Latin America
111
1/55
1
4
2
1/18
43
8
19/15013/115
225
00
13
3
36
4
40
404
4
44
16
21/161
539CountriesKEY:
Country Disciplines
Offices
Directors: Number/Years of Experience
Headcount
H1 2011Porto Alegre
Second office – RioFourth office – São Paulo
2010Alphaville
Barra da TijucaRecife
São José dos CamposSantiago
2009Belo HorizonteBuenos Aires
CuritibaSão Paulo – Central
2003 2005Rio de Janeiro
2006Mexico City
2007Campinas
2000São Paulo – Vilia Olimpia
6 yearsCumulative gross profit
£81.3m
4 yearsCumulative gross profit
£5.1m
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Michael Page International Half Year Results 2011 | 30STRATEGY
Latin America:Investing for
the future
Inthelast24months:
•8newoffices,now16(+100%)intheregion
•Officefloorspaceincreasedby95%,nowwithcapacity for 600 (10% spare capacity)
•2newcountriesopened:ArgentinaandChile(now68staff)
•58promotions,strengtheningthe management team
•Headcountup151%to539
•Roll-outofPagePersonneltoArgentina,MexicoandwithinBrazil
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STRATEGY Michael Page International Half Year Results 2011 | 31
Organically grown management team investing heavily in headcount growth
Page Personnel rolled out nationally Page Contracting launched
INVESTMENT:Development of Germany
2050
3
34
50
2
70
198
6
80
810
6
19
121
233
6KEY: Directors: Number
Directors: Years of Experience
Headcount
% of Group gross profit
177
1993 2003 2009 2010 H1 2011
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Michael Page International Half Year Results 2011 | 32STRATEGY
Germany:Investing for
the future
•Large,underdevelopedmarket–limitedcompetition particularly in perm recruitment
•Duringthelast18months,management teamstrengthenedwith11newDirectorsand88 promotions
•Headcountincreasedby32%to233 inlast6months
•PagePersonnellaunchedandbeingrolled-out
•PageContractinglaunched
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STRATEGY Michael Page International Half Year Results 2011 | 33
Remains Group’s largest and most established country Long-term still offers potential for growth Very established management team key to gaining
market share
INVESTMENT:Development of UK
1115
100/100
12
46
612
1,081
51/70
741
1,863
33/33
12
69
18
80
890
1,343
24/23DisciplinesKEY:
Directors: Number
Directors: Years of Experience
Headcount
% of Group gross profit/operating profit
1976 2003 H1 2008 H1 2011
-
Michael Page International Half Year Results 2011 | 34STRATEGY
UK:Investing for
the future
•Investingtoretainourbestpeople,withDirectors up to 6% as a percentage of UKstaff–c.3.5%pre-downturn
•Depthofmanagementexperienceenabling ustogrowgrossprofitandmarketshare
•81promotionsinlast12months
•Growingtalentfornewermarkets:36internationaltransfersouttostrengthen overseas management teams
•Spareofficecapacityofc.35%
•Newdisciplineslaunched:Design,LifeSciences,Oil&Gas,3rdPartyLogistics
•Continueroll-outofexistingdisciplines:TechnologyandPPofficesupport
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STRATEGY Michael Page International Half Year Results 2011 | 35
In the last 12 months we continued to invest in building a consistent business through global organic growth
Buenos Aires
São Paulo Rio de Janeiro
IstanbulMadrid
Lisbon
Edinburgh
Leeds
London
Stockholm
Milan
ParisZurichGeneva
WarsawBerlin
FrankfurtBrussels
Amsterdam
RotterdamDusseldorf
ViennaStuttgart
Aberdeen
Johannesburg
New York
SydneyAuckland
Brisbane
Melbourne
Singapore
Shanghai
Hong KongDubai
Qatar
Beijing
Tokyo
Moscow
IstanbulChicago
Toronto
Mexico
Abu Dhabi
New Delhi
Tulika TripathiGeneva - Singapore -Mumbai
Roberto MachadoSão Paulo - Rio de Janeiro -Buenos Aires - Santiago
Santiago
Rémy de CazaletMadrid - Lisbon - Istanbul -Mexico City
Mumbai
Paul CooperLondon - Kuala Lumpur
Kuala Lumpur
Jonathan WilesLondon - Sydney - London
Andrew NortonLondon - Singapore
Christophe RossetParis - Mexico City - Brussels
Basil Le RouxLondon - Manchester - Tokyo
Thibault AdesBrussels - Mexico City -Brussels - Stockholm
Jérôme BouinParis - Brussels - Singapore
Milan
Stockholm
John MayesLondon - New Delhi
Jason GrundyLondon - Abu Dhabi
Pietro ValdezMilan - Istanbul
Nicolas VermerschParis - Rotterdam
Bernard van SteenbergeBrussels - Rotterdam
Jake OldsLondon - Qatar
ORGANIC GLOBAL EXPANSION
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Michael Page International Half Year Results 2011 | 36
Summary and
Outlook
• Strongfirsthalfforgrossprofitandoperatingprofit
• Halfofourbusinessgrowingbyover50%ingeographieswithstrongest economies and least competition
• Largest-everbusinessplatform–managementteam,countries,offices,disciplines–butinvestingfurtherwithpromotionsandinternational transfers
• Investingheavilyforthefuture:headcountup33%(+1,261)inlast12months
• Investingaggressivelyinnewgeographies:16(50%)newcountrieslaunchedsince2005,nowwith500heads(10% of Group)
• HighinvestmentinIndia:forecasttoendfirstyearwith 3offices,50headcount
• Remaininstrongfinancialposition
• WiththeexeptionofBanking,tradinginJulyhasbeenbroadlyconsistentwithrecenttrends
• Remainmindfulofcurrentmacroeconomicrisksanduncertainties
SUMMARY AND OUTLOOK
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www.michaelpageinternational.com
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Michael Page International Half Year Results 2011 | 38
Appendices
-
APPENDICES Michael Page International Half Year Results 2011 | 39
Growing organically
Depth of experience at 30 June 2011
Senior Operational Management No. Average
Tenure in MP
PLC&ExecutiveBoard 7 20 yearsRegional Managing Directors 8 17 yearsManaging Directors 49 13 yearsDirectors 162 8 years
226 Ave c.10 years
• Directorsexperiencedinmanagingupturnsanddownturns
• Strengthofworkingrelationshipsimprovescommunication
• Hiredandtrainedinoneculture
• Remunerationlinkedtoprofit
Average Tenure at Michael Page0 5 10 15 20
7 PLC & Executive Board Directors
8 Regional Managing Directors
49 Managing Directors
162 Directors
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APPENDICES Michael Page International Half Year Results 2011 | 40
Increasing compliance
Increasing candidate demands
Increasingcandidateshortages
Increasingjobmobility
Increasing international mobility
Increasing complexity to access candidates
Underlying trends driving
the recruitment market
-
APPENDICES Michael Page International Half Year Results 2011 | 41
Clear on brand
Qualified Professional
ExecutiveSearch
Clerical Professional
Generalist Staffing
32 Countries 121 Offices 2,662 FeeEarners
20 Countries 68 Offices 1,037 FeeEarners
At 31 December 2010
-
APPENDICES Michael Page International Half Year Results 2011 | 42
Cost Structure
STAff COSTS (c.75%)
• Headcount–reactingtomarketconditions
• Additionalheadcountaddedatentrylevel–lowersaveragecost per employee
• Consistentprofitsharemodel,bonusesflex withprofits
• Incentivesaremixtureofcashandforseniorstaff,shareschemes
IT (c.10%)
• Datacentreconsolidation
- reduces support staff
- greater resilience and disaster recovery
-developmentofnewrecruitmentsoftware
PROPERTY (c.10%)
• Concentratewithin network
• Sparecapacityinsome larger offices
• Additionalspacerequiredinfastestgrowingregions
MISCELLANEOUS (c.5%)
• Travel
• Staffwelfare
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APPENDICES Michael Page International Half Year Results 2011 | 43
Long-term on investment
198519801976
Hea
dco
unt
1990 1995 2000 2005 2010 H1 20110
1000
2000
3000
4000
5000
6000
1986France
1987Netherlands
1995Hong Kong
1997SpainItaly
2000PortugalBrazil
2003China
2005PolandCanada
2007LuxembourgArgentina
2010Chile
2011IndiaMalaysiaQatar
1996Singapore
1976United Kingdom
1985Australia
1993Germany
2001SwitzerlandJapan
2002BelgiumSweden
1998USA
2006South AfricaRussiaIrelandUAEMexico
2008AustriaTurkeyNew Zealand
Througheconomiccycles:
• Maintaininfrastructureandmarketpresence
• Strategicandmeasuredinvestmentsforthelonger-term
-
APPENDICES Michael Page International Half Year Results 2011 | 44
Group quarterly gross profit trend: 2001 to H1 2011
0
50
100
150
Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1
Gro
ss P
rofit
(£m
) as
rep
orte
d
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
89.1
87.4
49.5
51.4
47.8
43.9
69.6
66.9
58.7
49.9
93.1
121.
010
5.5
128.
112
3.4
152.
414
1.3
118.
7
111.
711
2.8 11
9.8 12
7.3
147.
8
95.0 97
.9
83.8
82.3
90.6
140.
3
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
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APPENDICES Michael Page International Half Year Results 2011 | 45
fee earner/support staff headcount trend
0
1000
2000
3000
4000
5000
H1 2011
H2 2010
H1 2010
H2 2009
H1 2009
H2 2008
H1 2008
H2 2007
H1 2007
H2 2006
H1 2006
H2 2005
H1 2005
H2 2004
H1 2004
H2 2003
H1 2003
H2 2002
H1 2002
H2 2001
H1 2001
H2 2000
H1 2000
H2 1999
H1 1999
Hea
dco
unt
Fee Earners
Support Staff
Ratio
fee Earners : Support Staff
1999 59:41
2000 58:42
2001 57:43
2002 58:42
2003 60:40
2004 64:36
2005 71:29
2006 74:26
2007 76:24
2008 74:26
2009 71:29
2010 73:27
H1 2011 72:28
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APPENDICES Michael Page International Half Year Results 2011 | 46
Number of shares and options outstanding since IPO
310
330
350
370
390
410
30 June2011
2010200920082007200620052004200320022001
Num
ber
of s
hare
s an
d o
ptio
ns o
utst
and
ing
(mill
ions
)
175p
177p
161p
161p
163p
184p
269p
279p
246p 338p
298p
Options outstanding
Shares outstanding
Weighted average option price
Options granted over 4.1m shares in 2011
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www.michaelpageinternational.com
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CautionaryStatementThe 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 Michael Page Group 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.
Michael Page 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.