First Quarter Interim Management Statement -...

First Quarter Interim Management Statement 11 April 2011

Michael Page International First Quarter Interim Management Statement | 2

Group “Gross profit +29% with growth in every geography”

Growth RatesGRoup GRoss pRofit £m £m Reported Constant

Q1 2011 vs Q1 2010 127.3 97.9 +30.0% +29.3%

peRm/temp GRoss pRofitQ1 2011

£mQ1 2010

£m Growth Rates Reported Constant

Permanent 101.1 75.0 +34.9% +33.9%

Temporary 26.2 22.9 +14.3% +14.2%

Ratio (Perm:Temp) 79:21 77:23

Headcount increased by 354 (+7.9%) during Q1 to 4,852 (Q4 2010: 4,498)•

Strong perm growth driven predominantly by perm markets in Asia and Latin America•

Temp growth rates in more established markets improving•


Group “Maintaining the platform in downturns enables rapid growth as markets recover”

0

50

100

150

200

Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

2007200620052004200320022001

58.7

49.9

49.5

51.4

47.8

43.9

42.8

45.0

45.0

45.7

48.1 52

.353

.556

.7 59.9 68

.369

.270

.2 79.2 87

.489

.1 93.1 10

5.5 12

1.0

123.

412

8.2 14

0.3 15

2.4

141.

311

8.7

95.0

83.8

82.3 90

.6 97.9

111.

711

2.8

119.

9

127.

3

2008 2009 2010 2011

69.6

66.9

Gro

ss P

rofit

(£m

) as

rep

orte

d

0

1500

3000

4500

6000

Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

2007200620052004200320022001 2008 2009 2010 2011

Head

count

GRoup QuaRteRly HeadCount and GRoss pRofit


Group “Increasing discipline diversification”

GRoup GRoss pRofit

Q12011

proportion

Q1 2011

£m

Q12010

£m

Growth Rates

Reported Constant

Finance & Accounting 45% 57.1 46.2 +23.6% +22.8%

Marketing, Sales & Retail 19% 23.7 18.9 +25.4% +24.7%

Legal, Technology, HR, Secretarial and Healthcare 19% 24.6 17.9 +37.5% +36.7%

Engineering, Property & Construction, Procurement & Supply Chain 17% 21.9 14.9 +46.8% +46.4%

Group Total 100% 127.3 97.9 +30.0% +29.3%

All disciplines showing positive growth•

Finance and Accounting now 45% of the Group gross profit, +23%•

Smaller and newer disciplines grow at faster rate as rolled out across country and office networks•

Newer disciplines launched for increased specialist focus eg. Design, Healthcare, Oil & Gas, Logistics, •Life Sciences


EMEA “+28% gross profit growth from 18 countries in the region”

emea GRoss pRofit £m £m Growth Rates Reported Constant

Q1 2011 vs Q1 2010 56.2 44.6 +26.1% +28.2%

Headcount up 151 (+8.2%) to 1,982 (Q4 2010: 1,831)

in loCal CuRRenCy (veRsus Q1 2010)

France• (16% of the Group) +23%

Germany• (6% of the Group) +31%

Netherlands• (4% of the Group) +18%

Italy• (4% of the Group) +34%

Spain• (3% of the Group) +26%

Rest of EMEA: Austria, Belgium, Ireland, Luxembourg, Poland, Portugal, Qatar, Russia, South Africa, •Sweden, Switzerland, Turkey, U.A.E. (11% of the Group) +41%

Opened our 3rd office in the Middle East in Doha, Qatar and a 2nd in Portugal, Porto•


EMEA “44% of the Group, with growth in every country”

0

20

40

60

80

Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

Gro

ss P

rofit

(£m

) as

rep

orte

d

2007

42.0

48.5

48.4

57.5

65.2 70

.2

63.7

59.7

47.6

38.2

35.7

42.2 44

.6 46.7

44.6

52.8 56

.2

2008 2009 2010 2011

0

600

1200

1800

2400

Head

count

emea QuaRteRly HeadCount and GRoss pRofit


United Kingdom “Steady gross profit growth across the country +9%”

Growth Rates

uK GRoss pRofit £m £m Reported

Q1 2011 vs Q1 2010 31.7 28.9 +9.4%

Headcount up 34 (+2.6%) to 1,358 (Q4 2010: 1,324)

Steady improvement in the private sector, public sector (c.7% of UK) remains difficult•

No significant regional variation•

Sales, Engineering, Procurement, Supply Chain, Technology showing strongest growth•

Investment in headcount reflects discipline performance and new discipline launches•


United Kingdom “Now 25% of the Group, as international diversification accelerates”

0

15

30

45

60


Gro

ss P

rofit

(£m

) as

rep

orte

d

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

2008 2009 2010 2011

0

500

1000

1500

2000

Head

count

uK QuaRteRly HeadCount and GRoss pRofit


Asia Pacific “Continued investment driving +54% gross profit growth, now 17% of Group”

asia paCifiC GRoss pRofit £m £m Growth Rates Reported Constant

Q1 2011 vs Q1 2010 21.4 13.2 +62.6% +54.0%

Headcount up 98 (+14.2%) to 789 (Q4 2010: 691)


Asia• (9% of the Group) +92%

Australia and New Zealand• (8% of the Group) +26%

Opened Kuala Lumpur, Malaysia•

Opened offices in India in Gurgaon, New Delhi and Mumbai•

Japan (2% of the Group) - devastating earthquake and tsunami impacted March •and we assume a significant impact on Q2


Asia Pacific “Reported gross profit and headcount at record levels”

0

8

16

24

32


Gro

ss P

rofit

(£m

) as

rep

orte

d

2007

12.3

14.7

15.4

14.8 16

.4

19.6

18.4

12.4

9.5

9.7 10.8 12

.2 13.2

18.0 20

.3

20.7

21.4

2008 2009 2010 2011

0

200

400

600

800

Head

count

asia paCifiC QuaRteRly HeadCount and GRoss pRofit


Americas “Now 14% of Group with +56% gross profit growth”

Growth Rates

ameRiCas GRoss pRofit £m £m ReportedConstant exchange

Q1 2011 vs Q1 2010 18.0 11.2 +60.7% +56.0%

Headcount up 71 (+10.9%) to 723 (Q4 2010: 652)


Latin America• (10% of the Group) +73%

North America• (4% of the Group) +28%

Brazil now third largest country business in the Group, opened (11th) office in Porto Alegre•

Chile recorded trading profit in Q1•


Americas “Gross profit and headcount at record levels”

0

6

12

18

24


Gro

ss P

rofit

(£m

) as

rep

orte

d

2007

7.2

9.9

10.6

10.7 11

.6

14.1

14.3

10.5

9.0

7.8 8.

5 9.7 11

.2

14.7

14.9 15

.6

18.0

2008 2009 2010 2011

0

180

360

540

720

Head

count

ameRiCas QuaRteRly HeadCount and GRoss pRofit


Group “Strong financial position”

Strong net cash at 31 March 2011 in the region of £75m•

Resumption of share repurchases for cancellation in Q2•

Proposed 2010 final dividend of 6.12p (+19.5%) per share to be paid on 6 June•

322m shares outstanding at 31 March 2011•

24m share options outstanding at 31 March 2011•

4.1m share options granted in March 2011 at average price of 491p•

3.1m share options lapsed in March 2011 at average price of 253p•


Group“Positioned for growth, with 43% of fee earners in less developed recruitment

markets growing at 54%”

Rest of EMEA*

Asia

Latin America

Canada, Germany, Italy, New Zealand, Spain

France, Holland and USA

Australia and UK

+44%

+97%

+83%

+29%

+18%

+15%

2000Fee Earners: 1,657

Q1 2011Fee Earners: 3,526

12% 196

43% 1527

11%

9%

9%

14%

30% 50122% 762

58% 960 35% 1237

+54% +46%

PROPORTION OF RECRUITMENT THAT IS OUTSOURCED

>70%KEY: 30-70%<30% Fee Earners

+44%

+89%

+76%

+19%

+9%

+20%

Q1 2011

FY 2010

Reported gross profit growth

* Austria, Belgium, Ireland, Luxembourg, Poland, Portugal, Qatar, Russia, South Africa, Sweden, Switzerland, Turkey, UAE.

Cautionary StatementThe 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.

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