Full Year Results 2016

Agenda

Financial Review

Regional Review

Business Strategy

Summary

3

2016 Group Financial Highlights

2016 vs 2015 constant

Gross Profit £621.0m 11.7% 3.0%

Operating Profit £101.0m 12.1% 1.4%

Profit Before Tax £100.0m 10.3%

Diluted EPS 23.1p 9.5%

Net Cash £92.8m £2.2m

Total Ordinary Dividend (proposed) 11.98p 4.2%

Special Dividend 6.46p

Financial Review

5

Income Statement

£m 2016 2015 Change

Constant

currency

change

Revenue 1,196.1 1,064.9 +12.3% +3.6%

Gross Profit 621.0 556.1 +11.7% +3.0%

Operating Profit 101.0 90.1 +12.1% +1.4%

Net Interest (Expense)/Income (1.0) 0.6

Profit Before Tax 100.0 90.7 +10.3%

Taxation (27.9) (24.5) +13.9%

Effective tax rate on profit 27.9% 27.0%

Profit After Tax 72.1 66.2 +8.9%

Earnings per share

Basic (pence) 23.1 21.3 +8.5%

Diluted (pence) 23.1 21.1 +9.5%

6

75%

10%

6%9%

• Total operating costs +2% in constant currencies (12%*)

• Employee costs (78% of total costs) +5% (+13%*) driven by +4.5% headcount,

inflationary salary rises

• Increase in other costs mainly due to foreign exchange

• Fee earners added at a ratio of 86:14 to support staff

Operating Costs

£m Actual 2015 changecc

change

Employee 405.2 357.9 +13% +5%

Other

costs114.9 108.1 +6% -1%

Total 520.1 466.0 +12% +2%

* In reported rates

2016 2015 %

Headcount 6,099 5,835 +4.5%

10

15

20

25

30

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

%

Support staff as % of Group headcount

FY16 77:23

7

Gross Profit (£m)Constant

Currency

Actual vs

Constant

Actual

Rates

UK 146.3 – 146.3

EMEA 242.0 29.9 271.9

Asia Pacific 106.7 13.0 119.7

Americas 77.7 5.4 83.1

Group 572.7 48.3 621.0

Operating Profit 91.3 9.7 101.0

2016 impact:

• Gross profit increased by c. 8% or £48.3m

• Operating profit increased by c. 11% or £9.7m

• 1% weakening of GBP would increase gross profit by c. £6m and operating profit by

c. £1m

Impact of Foreign Exchange

8

2016 2015 %

Profit Before Tax 100.0 90.7 +10.3

Tax Charge 27.9 24.5 +13.9

Underlying 27.4% 29.4%

Losses and deferred tax on share plans 0.5% (2.4%)

ETR 27.9% 27.0%

• UK corporation tax rate decreased to 20% from 20.25% in 2015

• Underlying rate down by 2% - due to geographic mix and tax rate changes

• Recognition (-0.53%) and de-recognition (+0.79%) of losses increased underlying rate by 0.26%

• Tax on share plans increased rate by 0.26%

• 2017 effective tax rate expected to be around 28%

Group Effective Tax Rate (ETR)

9

£m 2016 2015

Intangible assets 37.9 36.3

Tangible assets 29.5 21.4

67.4 57.7

Trade and other receivables 267.0 217.4

Trade, other payables, current and deferred taxes (180.6) (148.3)

86.4 69.1

Net cash 92.8 95.0

Net assets 246.6 221.8

Balance Sheet

• Strong balance sheet with £92.8m net cash at 31 December 2016

• Movements reflect effect of foreign exchange and increased trading activity

10

PageGroup Michael Page Page Personnel

£m 2016 2015 Growth rates 2016 2015 Growth rates 2016 2015 Growth rates

Gross ProfitReported

Constant

CurrencyReported

Constant

CurrencyReported

Constant

Currency

Permanent 470.0 424.0 +10.8% +2.3% 367.6 339.1 +8.4% +0.4% 102.4 84.9 +20.5% +10.2%

Temporary 151.0 132.1 +14.4% +5.1% 74.6 67.0 +11.4% +3.7% 76.4 65.1 +17.4% +6.5%

Ratio

(Perm:Temp)76:24 76:24 83:17 84:16 57:43 57:43

Permanent vs Temporary

76%

24% 17%

83% 57%43%

Perm Temp

11

95.0 92.8

122.4

3.7

(1.1)

(32.8)

(23.4)

(14.7)

(20.1)

50

75

100

125

150

175

200

225

Dec 2015 EBITDA WorkingCapital

Tax and netinterest

Net Capex Net optionexcercises/EBT

purchases

Dividends Paid Exchange Dec 2016

Cash Increase Decrease

(36.2)

Cash Flow (£m)

• Decrease of £2.2m in net cash vs Dec 2015

• £20.1m Special Dividend paid

• Purchase of shares into EBT decreased cash by £15.1m

• +4.2% increase in Ordinary Dividends paid

12

Dividends

2016 2015

Pence per Share £m Pence per Share £m

Interim 3.75 11.6 3.60 11.3

Final 8.23 25.6 7.90 24.7

Special 6.46 20.1 16.0 50.1

Total 18.44 57.3 27.5 86.1

Number of shares (m) 311.0 313.3

• Final dividend proposed of 8.23p (+4.2%)

• Payable on 19 June 2017

• Special dividend paid in October 2016 of £20.1m

• Total dividend for year of 18.44p

Regional Review

14

Regional Results Summary

EMEA (44%*)+11.5% gross profit

1,995 FE headcount (+11.8%)

19.0% conversion

£51.7m operating profit

Americas (13%*)-0.9% gross profit

769 FE headcount (+12.1%)

5.3% conversion

£4.4m operating profit

UK (24%*)-3.5% gross profit

1,014 FE headcount (-7.7%)

16.5% conversion

£24.2m operating profit

Asia Pacific (19%*)-2.2% gross profit

933 FE headcount (+2.0%)

17.3% conversion

£20.7m operating profit

* Percentage of Group gross profit

Growth rates are 2016 vs 2015 in constant currencies

15

Europe, Middle East, Africa

£m 2016 2015Reported

rates

Constant

currency

Gross Profit 271.9 217.0 +25.3% +11.5%

Operating Profit 51.7 31.9 +62.1% +41.8%

Conversion 19.0% 14.7% +4.3ppts +4.0ppts

Headcount 2,553 2,295 +11.2%

Gross

Profit by

geography

31%

22% 15%

5%

27%

France

Germany

S. Europe

ME & Africa

Other

• Positive FX impact on operating profit of £6.5m

• Gross profit records in 12 countries and Southern Europe region

• France: +6%, Page Personnel +9%

• Germany: +9%, Page Personnel +17%

• Southern Europe: +19%, with Spain +23%

• Benelux: +25%

• Middle East and Africa: -7% (5% of region)

71:29Perm vs

Temp

44%of Gross

Profit

63Offices

14Disciplines

16

United Kingdom

£m 2016 2015 Change

Gross Profit 146.3 151.6 -3.5%

Operating Profit 24.2 29.2 -17.4%

Conversion 16.5% 19.3% -2.8ppts

Headcount 1,411 1,516 -6.9%

• Market sentiment of caution and uncertainty due to Brexit

• London -7%, UK excluding London -1%

• Financial Services - 8%, Marketing and Sales -11%

• Page Personnel: +2%; Michael Page -5%

• Legal +10%, Technology +10%, Procurement & Supply Chain +5%

• Public sector: -4% (13% of UK business), Private -3%

• Conversion rate down 2.8ppts to 16.5%

London

South

North

Midlands

36%

25%

22%

17%

Gross

Profit by

geography

70:30Perm vs

Temp

24%of Gross

Profit

27Offices

13Disciplines

17

Asia Pacific

87:13£m 2016 2015 Reported

rates

Constant

currency

Gross Profit 119.7 109.1 +9.7% -2.2%

Operating Profit 20.7 22.7 -8.8% -21.5%

Conversion 17.3% 20.8% -3.5ppts -4.1ppts

Headcount 1,205 1,180 +2.1%

• Greater China: -4%, c. 450 people

• Taipei +19%, Mainland flat, Hong Kong -12%

• Record years in India, Indonesia, Malaysia, New Zealand

• Launched in Thailand in November

• Australia: +2%, a record year for Page Personnel +9%

18%

29%

42%

11%

Gross

Profit by

geography

SE Asia & India

Greater China

Japan

Australasia

87:13Perm vs

Temp

19%of Gross

Profit

25Offices

14Disciplines

18

Americas

£m 2016 2015 Reported

rates

Constant

currency

Gross Profit 83.1 78.4 +6.0% -0.9%

Operating Profit 4.4 6.2 -29.6% -33.4%

Conversion 5.3% 7.9% -2.6ppts 0ppts

Headcount 930 844 +10.2%

• LatAm ex-Brazil (65% of LatAm): +19%, clear #1 in market

• Brazil: -21%, Mexico: +15%,

• Record year in Mexico, Argentina, Colombia and Peru

• US: -3%, New York Financial Services -23%; elsewhere +11%

• Canada: -8%, oil and gas sector remained tough

15%

6%

16%

50%

Gross

Profit by

geography

Brazil

Rest of LatAm

Mexico

Canada

USA

85:15Perm vs

Temp

13%of Gross

Profit

25Offices

14Disciplines

13%

Business Strategy

20

Diversification Strategy

21

Market Penetration

22

Market Categories

23

Brands

24

Perm/Temp Gross Profit Split

Perm Temp

71%

29%

2009

76%

24%

2016

Discipline Gross Profit Split

Non Financial services and

Accounting

Accounting and Financial services

50%50%

2009

62%

38%

2016

25

Diversification Strategy

26

Investment Strategy

• Temp and contracting in Germany

• Japanese Nikkei market

• US outside of New York Financial Services

• Chinese domestic market

• Latin America outside of Brazil

• South East Asia: launched in Bangkok, Thailand

• Temporary, interim and contracting

• Page Personnel

27

Page Personnel

£66.0m

£183.5m

651

1,414

0

400

800

1,200

1,600

£0.0

£50.0

£100.0

£150.0

£200.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

No.

of F

E &

Dir

Gro

ss P

rofit £m

GP growth in constant currency

GP £m (CC)

16.7%

28.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

% Group Gross Profit

16

13

11 1110 10

98

54 4

3 3

0

2

4

6

8

10

12

14

16

18 No. of Countries by Discipline 12 1211

10

8 8

6 6 6 65 5

4 43

1

0

2

4

6

8

10

12

14No. of Disciplines by Country

10 year CAGR of 12% | Growth of 9% in 2016 in constant currency | Over 1,400 Fee earners | 107 Country Disciplines

28

Technology – Strategy

Completed

roll-out of

Page Recruitment

System (PRS)

Digital Learning Platform developed and launched

Innovation

pipeline

embedded

29

Operational Support Investments

European Shared Service Centre

• Transition of European finance functions completed

• Marketing also complete

• IT transition two thirds complete - will continue in line with Cloud Strategy

New Global Finance System

• Global system and processes

• UK Shared Service Centre live in H2 2017

Summary

31

Summary

• Record gross profit performance, with EMEA +11.5%

• Conversion rate increased slightly to 16.3%

• Total Dividends paid of £56.3m; year end cash balance £92.8m

• Completed roll-out of PRS our new operating system

• Completed European finance transition to new European

Shared Service Centre in Barcelona

• Continental Europe remains strong

• Post UK referendum uncertainty in the UK

• Brazil, Financial Services market in New York and Greater China

expected to remain challenging

• 2017 Q1 update on 12 April

Summary

32

Cautionary Statement

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

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or implied, is or will be made in relation to the accuracy, fairness or completeness of the information or opinions

made in this presentation.

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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.