MANAGING THE SHORT TERM INVESTING FOR THE LONG TERM

Transcription

1 Hays plc Preliminary Results Year ended 30 June 2009 MANAGING THE SHORT TERM INVESTING FOR THE LONG TERM

2 Cautionary statement 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 country where such distribution or use would be contrary to law or regulation, or which would subject any member of the Hays Group to any registration requirement. Statements in this presentation reflect the knowledge and information available at the time of its preparation. Certain statements included or incorporated by reference within this presentation may constitute forward-looking statements in respect of the Group s operations, performance, prospects and/or financial condition. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions and actual results or events may differ materially from those expressed or implied by those 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. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. No responsibility or obligation is accepted to update or revise any forward-looking statement resulting from 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. Page 1

3 I. Financial review - Paul Venables, Finance Director II. Operating review - Alistair Cox, Chief Executive III. Strategy update - Alistair Cox, Chief Executive IV. Current trading - Alistair Cox, Chief Executive Appendices page 3 page 19 page 23 page 33 page 36 Page 2

4 Net fees (FY92 FY09) Result highlights: excellent cash flow performance Earnings per share (pence) Cash flow per share (pence) Dividend per share (pence) p p p p p p p p p p p p p p p EPS* 7.72p CPS** 11.82p DPS 5.80p down 39% up 10% unchanged *EPS is basic EPS on continuing activities before exceptional items. **CPS is cash flow per share defined as net cash flow pre: dividend, share buy back, loan repayments & discontinued activities, divided by average weighted shares in issue. The net fees graph (top right corner) shows net fees of the recruitment business for the last 18 financial years. Page 3

5 Net fees Good performance in difficult market environment m 671m 787m Income statement Year ended 30 June 2009 m 2008 m Actual growth LFL* growth Turnover 2, ,540.0 (4)% (8)% Net fees (15)% (18)% Operating profit ** (38)% (40)% Exceptional items Net finance cost (7.0) (4.7) Profit before tax ** Tax (45.2) (76.6) Profit after tax ** *LFL ( like-for-like ) growth is organic growth at constant currency. There were the same number of trading days in 2008 and **From continuing activities. Page 4

6 All regions impacted by global economic downturn Performance by region* 49% of net fees 22% of net fees 29% of net fees RoW CE & United Kingdom & Ireland Asia Pacific Continental Europe & RoW Net fees 330.7m -27% Net fees 149.1m -20% Net fees 191.0m +5% Op profit 63.5m -54% Op profit 61.4m -29% Op profit 33.1m -16% Tough market conditions in private sector, especially perm 5% growth in public sector Headcount reduced by 26% in the year Perm weakened significantly across the period Resilient temp performance Excellent protection of profits Headcount reduced by 36% in the year Strong performance in Germany Most other countries weakened significantly from October 2008 Headcount reduced 20% in H2 *Numbers are for year ended 30 June Charts show net fees by region. Percentages are like-for-like growth which is organic growth at constant currency. References to changes in headcount relate to changes in consultant headcount. Page 5

7 Group net fees Temporary placement business resilient during the year 07 H H % Temp 49% Temp 56% 52% Temp Review of Group permanent and temporary businesses* Permanent placement business Temporary placement business -29% net fee decline -7% net fee decline -35% volume decline -6% volume decline +8% average perm fees -10 bps margin decrease** Very difficult market conditions Zero wage inflation Average perm fee benefited from favourable change in mix 297.4m (44% of net fees) 373.4m (56% of net fees) Resilience underpinned by public sector weighting Good International performance especially Germany Underlying temp margin broadly flat Headline temp margin fell primarily due to cessation of VAT staff hire concession *Growth rates and margin change are for the year ended 30 June 2009 versus year ended 30 June Percentages are like-for-like growth which is organic growth at constant currency. There were the same number of trading days in 2008 and **Represents the underlying temporary placement margin, adjusted for impact of staff hire concession and the payrolling of other agency temporary workers. Page 6

8 Group CR % CR% decreased due to the reduction in net fees and impact of tightening demand on productivity levels % 34.1% 32.3% Group conversion rate* (%) YE 30 June 08: 32.3% YE 30 June 09: 23.6% 47.3% 41.2% 30.3% 19.2% 21.0% 17.3% UK & Ireland Asia Pacific Continental Europe & RoW LFL net fee growth rate** 3m ended 30 Jun 08 4% 26% 46% 3m ended 30 Jun 09 (45)% (46)% (25)% *Conversion rate ( CR% ) is the proportion of net fees converted into operating profit. **LFL net fee growth rates are like-for-like growth which is organic growth at constant currency. Page 7

9 A marked slowdown in the second half ( H2 ) across the Group Group net fee growth (LFL*) versus same period last year H1 09 H2 09-2% -33% Group operating profit growth (LFL*) versus same period last year H1 09 H % -60% Group conversion rate (%) operating profit as % of net fees H1 09 H % 18.4% *Growth is shown on a LFL ( like-for-like ) basis, which is pre-exceptional organic growth at constant currency for continuing activities only. There were the same number of trading days in 2008 and H1 09 is the period from 1 July 2008 to 31 December 2008; H2 09 is the period from 1 January 2009 to 30 June Page 8

10 Cost base run-rate down 24% on annualised basis Operating cost run-rate: June 08 versus June 09* 24% reduction 590m (61)m (48)m (31)m 450m June 2008 annualised Salary costs Commissions/ bonuses Occupancy/ other costs June 2009 annualised * Represents the movement in the annualised operating cost base in June 2009 versus the annualised operating cost base in June Operating cost base is presented at constant currency based on the closing year end exchange rates, and excludes one-off cost items, bad debt charges, share based payments and depreciation. The information has been extracted from Hays plc management information. Page 9

11 Net finance charge increased by 2.3m due to IAS 19 pension charge Finance charge & taxation Year ended 30 June Finance charge Net interest charge on debt IAS 19 pension (charge) / credit PPF levy Net finance charge 2009 m (3.5) (2.4) (1.1) (7.0) 2008 m (7.2) 3.0 (0.5) (4.7) The net finance charge is expected to increase to circa 15 million mainly due to a higher IAS 19 pension charge and an expected increase in net interest charge on bank balances Taxation Effective tax rate 29.9% 29.0% The effective tax rate is expected to increase next year due to a changing geographical mix of profits Page 10

12 39% reduction in earnings per share Earnings per share p p p Earnings per share Year ended 30 June Change Basic earnings from continuing activities* 105.8m 176.8m (40)% Weighted average number of shares 1,371m 1,404m (2)% Basic earnings per share from continuing activities* 7.72p 12.59p (39)% Memo Shares in issue** at 30 June 2009 and 2 September ,368m *2008 is shown pre-exceptional items. There were no exceptional items in **Number of shares used for EPS calculation purposes excludes shares held in the Hays Employee Share Trust. Page 11

13 260.9m operating cash flow, up 2% versus last year Cash from operations m m m Operating profit to free cash flow conversion Uses of cash flow operating cash flow 260.9m (2008: 256.0m) m m 12.9m (56.5)m (2.7)m 201.7m Capex 37.0m Dividend 79.3m 100 Share buy-back 2.1m 50 Other 1.5m 0 Reduction in net debt 81.8m Operating profit Non cash Working capital Tax Interest Free cash flow Page 12

14 Working capital management engrained in our culture Working capital as a % of turnover (shown as 12 month rolling average over 3 years) 100% 90% 86% Consistent improvement in working capital management over last two and half years 80% 70% 53% 60% 50% 40% 30% June 2006 June 2007 June 2008 June 2009 Information is shown on a monthly basis at constant currency, extracted from Hays plc management information. Page 13

15 A strong balance sheet Net working capital m m m Balance sheet analysis m 30 June June 2008 Goodwill & intangibles Goodwill and intangibles increased Property, plant & equipment Net deferred tax Net working capital Goodwill increased 6m due to movement in exchange Other intangible assets up 33m due to development of new IT systems Tax liabilities (16.3) (29.7) Retirement benefit obligations (109.2) (88.1) Net working capital decreased Creditors due more than 1 year Provisions Net cash/(debt) - (46.2) (13.6) (45.5) (81.1) Strong cash management, including debtor days reduced to 35 days (2008:39 days) Working capital unwind due to reduction in revenue Net assets Page 14

16 Pension obligation* Net retirement benefit obligations increased to 78.6m m 88.1m 109.2m Retirement benefit obligations m Increase in pension obligation driven by: Gross obligations Deferred tax Net obligations (30.6) (24.7) 63.4 lower returns on scheme assets partially offset by an increase in the discount rate 7.0m cash contribution in 2009, including 2.7m additional deficit funding Scheme to undergo its triennial actuarial valuation as at 30 June 2009, which is expected to increase the actuarial pension deficit due to: lower scheme assets values changes in the long term inflation rate assumptions As a result, deficit funding is expected to increase to between 10m and 20m per annum *Represents the pre-tax pension obligation. Page 15

17 Free cash flow* A net cash position of 0.7m m 174.7m 201.7m Net (debt) / net cash ( m) (114.9)m Net cash position at year end - but will return to a net debt position in H1 (81.1)m 460m bank facility in place - 5 year facility to February 2011 (54.6)m Net debt/ebitda ratio for 2009: 0.0x** - debt covenant: < 3 EBITDA/Interest ratio for 2009: 48x** - debt covenant: > 4 0.7m Dec 07 June 08 Dec 08 June 09 *Free cash flow in top right graph is defined as cash flow pre: dividends, buyback, capital expenditure and acquisitions. **Covenant ratios are shown for 12 months ended 30 June Page 16

18 Full year dividend held at 5.80p Dividend per share p p p Dividend Interim dividend Final dividend (payable 20 November 2009)* Total dividend 1.85p 3.95p 5.80p 1.85p 3.95p 5.80p Memo: dividend cover 1.3x 2.2x Share buy-back Share buy-back in year ended 30 June 2009 Shares (m) 1.7 Total cost ( m) 1.4 No further share buy-back planned at this time *Subject to shareholder approval. Page 17

19 Secure financial position Financial summary Difficult trading conditions but our actions ensured we delivered a good performance Excellent cash flow performance cash flow per share up 10% Net cash position of 0.7m but will return to net debt in H1 following payment of dividend Dividend held at 5.80p same as last year s dividend Page 18

20 I. Financial review - Paul Venables, Finance Director II. Operating review - Alistair Cox, Chief Executive III. Strategy update - Alistair Cox, Chief Executive IV. Current trading - Alistair Cox, Chief Executive Appendices Page 19

21 UK&I net fees UK&I impacted by very tough market conditions m 453m 331m United Kingdom & Ireland review 40%* fall in perm net fees 15%* fall in temp net fees 49% of net fees Private sector net fees fell by 37%* with weakness across all markets Public sector net fees increased by 5%* with strong performance in Education YE 30 June 2009 Net fees Op profit Conversion rate Consultants** LFL* growth 330.7m -27% 63.5m -54% 19.2% -11.1% 2,315-26% Early action taken to reduce cost base: consultant headcount reduced 26% during the year** support and administrative costs similarly reduced 43 offices consolidated, reducing network to 212 offices *LFL ( like-for-like ) growth represents organic growth at constant currency for the year ended 30 June 2009 versus the year ended 30 June There were the same number of trading days in 2008 and **Consultant numbers represent closing numbers, and percentage changes are 30 June 2009 closing number versus 30 June 2008 closing numbers. Page 20

22 APAC net fees Fall in APAC profits mitigated by strong cost control Asia Pacific review m 114m 114.0m 176m 149m [ ]m Australia & New Zealand (net fees: 135.0m) 22% of net fees 35%* reduction in perm net fees as market conditions weakened across the period Temp business relatively resilient with net fees down 3%* YE 30 June 2009 Net fees Op profit Conversion rate Consultants** LFL* growth 149.1m -20% 61.4m -29% 41.2% -6.1% % Public sector net fees increased 4%* Early action taken on cost base, with headcount reduced by 37%** Asia (net fees: 14.1m) 17%* reduction in net fees Difficult trading conditions but maintaining the network *LFL ( like-for-like ) growth represents organic growth at constant currency for the year ended 30 June 2009 versus the year ended 30 June There were the same number of trading days in 2008 and **Consultant numbers represent closing numbers, and percentage changes are 30 June 2009 closing number versus 30 June 2008 closing numbers. Consultant headcount is adjusted for the re-classification of 49 consultants within APAC to non-consultant employees as at 30 June Page 21

23 Resilient performance in Germany offset weakness in rest of the CE & RoW division CE & RoW net fees m m m Continental Europe & RoW review YE 30 June 2009 Net fees Op profit Conversion rate 29% of net fees CE &RoW 191.0m 33.1m 17.3% LFL* growth + 5% -16% -3.7% Germany (net fees: 88.2m) 19%* increase in net fees in Germany with growth in both core IT specialisms and newer specialisms But net fees started to decrease in Q4 Other countries (net fees: 102.8m) Businesses predominantly perm focused and started to feel impact of economic downturn at end of H1 Reduced headcount in these countries by 24% in H2 Protecting infrastructure in businesses at early stages of development Consultants** 1,173-17% *LFL ( like-for-like ) growth represents organic growth at constant currency for the year ended 30 June 2009 versus the year ended 30 June There were the same number of trading days in 2008 and **Consultant numbers represent closing numbers, and percentage changes are 30 June 2009 closing number versus 30 June 2008 closing numbers. Page 22

24 I. Financial review - Paul Venables, Finance Director II. Operating review - Alistair Cox, Chief Executive III. Strategy update - Alistair Cox, Chief Executive IV. Current trading - Alistair Cox, Chief Executive Appendices Page 23

25 Balancing short term imperatives with long term objectives a tier strategy Short term priorities through the recession Long term priorities building a platform for growth Page 24

26 Short term focus on maximising profit and cash generation Short term priorities through the recession Operational effectiveness Profit and productivity maximisation continuing to reduce costs as necessary Maximising opportunities in more resilient markets across all regions Focused on cash effective working capital management & conserving cash Page 25

27 Consultant headcount reduced by 26% Closing number of consultants Rapid alignment of cost base to net fee trends 6 month period ended 31 December ,749 UK & Ireland APAC CE & RoW -9% 5,213-18% 4,259 UK&I headcount reduced by 14% APAC headcount reduced by 12% CE & RoW headcount increased by 4% to support 27% LFL fee growth 6 month period ended 30 June 2009 UK&I headcount reduced by further 14% APAC headcount reduced by further 27% CE & RoW headcount reduced by 20% (24% ex Germany) June 08 Dec 08 June 09 Percentages shown are changes in consultant numbers period on period. Consultant headcount is adjusted for the re-classification of 49 consultants within APAC to nonconsultant employees as at 30 June Page 26

28 Investment made for the long term Long term priorities building a platform for growth One Hays around the world Growth by replicating Develop best people Operational effectiveness Developed the International network selective investment: 6 new city openings and 2 new country start ups Developed our corporate accounts capability and delivery resulting in excellent account wins in the year Rolled out training programmes developing consultant skills for challenging market environment Developed the marketing strategy developed branding improvements and starting to implement Invested in technology to increase efficiency front office and back office implementations on schedule Page 27

29 The International business now represents 51% of fees and 60% of operating profit Balanced portfolio 28 countries New country entries Development of the International network Italy Brazil Luxembourg Singapore UAE Japan China, HK Opened operations in India & Russia will be very large markets in long term Hungary India Denmark Russia Selective new city openings in 2009 Germany, Australia, Canada, Poland & France key organic acquisition Protecting International network in strategically important markets International net fees as proportion of Group net fees % 11 countries % 26 countries Page 28

30 Gaining market share by joining up our capabilities for large accounts Innovation to gain market share Case studies Corporate accounts MULTI-SPECIALISM RECRUITMENT FOR CORPORATES Public sector accounts MULTI-SPECIALISM RECRUITMENT FOR LOCAL AUTHORITIES Resource Process Outsourcing MANAGING ALL RECRUITMENT REQUIREMENTS Bringing together all Hays capability across specialisms under one roof Multi-specialism contracts won with clients in different sectors from Westpac Group and ANZ Bank in Australia, to Computacenter in the UK and GE in Singapore and Hong Kong Managing entire recruitment process on an outsourced basis for local authorities 10 year contract signed with Bucks County Council to recruit all their skilled people. Other recent wins include Westminster Council and Camden Council Onsite teams providing end to end recruitment services from candidate attraction, screening, and on boarding Recruited 6,000 people for Abbey last year and now the contract has been extended to Alliance & Leicester and Bradford & Bingley Page 29

31 Serving our clients in new and differentiated ways Innovation to gain market share Case studies Digital & Creative BUILDING BESPOKE RECRUITMENT WEBSITES FOR OUR CLIENTS Digital & Creative provides technology-driven communication products Mobile messaging, webbased recruitment, video, use of social media. 330 bespoke recruitment microsites built for our clients across 20 countries in 2009 Page 30

32 Leveraging our international capability to meet client needs Innovation to gain market share Case studies Health & Social Care FINDING INTERNATIONAL SOLUTIONS TO LOCAL MARKET ISSUES Structural shortages of skilled physicians in many countries Launched LOCATE which identifies & attracts talent from all over the world Recruited 100s of physicians from India, EU and Middle East into UK & Australia in 2009 Pharmaceutical SUPPORTING INTERNATIONAL EXPANSION OF CLIENTS Over 100 hires across 16 countries for Icon, a leading clinical research agency Recruited their in-country managers in Czech Republic, Russia and Hungary Our Pharma business has nearly tripled in size since acquisition in 2006 Sales & Marketing INTERNATIONAL KNOWLEDGE EXCHANGE Co-ordinating assignments across different countries with a market leading presence on the ground In 2009, recruited Walt Disney Co s in-house web teams in France, Spain & Italy Page 31

33 Key strategic priorities remain unchanged for 2010 Profit, productivity and cash maximisation continued focus on cost control effective cash management but careful to protect businesses at early stages of development Increase market share invest in resilient sectors, eg Healthcare, Education, Oil & Gas, Pharma win more large corporate and public sector contracts ready to add resources to more cyclical sectors when market improves Complete rollout of new IT systems complete rollout of new front office and back office systems exploit new systems to full advantage shift emphasis to developing Hays online capability Strengthen our brand positioning updated and refreshed branding to improve our differentiation achieve global consistency backed up with training programmes to enhance customer service Page 32

34 I. Financial review - Paul Venables, Finance Director II. Operating review - Alistair Cox, Chief Executive III. Strategy update - Alistair Cox, Chief Executive IV. Current trading - Alistair Cox, Chief Executive Appendices Page 33

35 Current trading conditions remain tough Current trading conditions by region UK Initial signs of stability in a number of sectors but no signs of recovery APAC Broader signs of stability but no signs of recovery CE & RoW Market conditions still deteriorating Interim management statement scheduled for 8 October Page 34

36 Net fees (FY92 FY09) Managing the short term, investing for the long term Summary Managing the short term - early and continuing action on the cost base - capitalising on opportunities to take market share Balanced business - 56% temp, 51% international, 22% public sector Highly variable cost base - 72% of cost base is people related Experienced management team - average c.17 years experience with Hays* Impressive track record - across the cycle Investing for the long term - long term market opportunities unchanged *17 years experience with Hays relates to top 20 operational management team that report in to the Board. The net fees graph (top right corner) shows net fees of the recruitment business for the last 18 financial years. Page 35

37 I. Financial review - Paul Venables, Finance Director II. Operating review - Alistair Cox, Chief Executive III. Strategy update - Alistair Cox, Chief Executive IV. Current trading - Alistair Cox, Chief Executive Appendices Page 36

38 Balanced portfolio Balanced portfolio breadth Net fees by type* 100% 90% 80% 70% 60% Recruitment contracts ~ 20% Public sector 22% Top 40 ~ 15% Other 28% IT 19% Temp 56% 50% 40% 30% 20% 10% 0% Spot ~ 80% Private sector 78% 30,000 customers ~ 85% Construction & Property 20% Accountancy & Finance 33% Perm 44% *Indicative purposes only based on information for the 12 months ended 30 June Page 37

39 Activities by specialism Balanced portfolio specialist recruitment >10% of country activity <10% of country activity Key priorities in embryonic countries UK APAC Continental Europe & Rest of World Poland Netherlands Luxembourg Italy India Hungary Germany France Denmark Czech Canada Brazil Belgium Austria Singapore Japan China & HK Aus & NZ UK&I Portugal Russia Spain Sweden Switzerland UAE Accountancy & Finance Construction & Property Information Technology Sales & Marketing Banking Contact Centres Education Executive Financial Services Healthcare Human Resources Legal Oil & Gas Pharmaceutical Purchasing Resource Management Resources & Mining

40 UK & Ireland profile Balanced portfolio 16 specialisms Information is for year ended 30 June 2009 net fees: 330.7m operating profit: 63.5m conversion rate: 19.2% consultants: 2,315 offices: 212 Net fees by specialism 29% 39% Net fees by region 9% 4% 25% 16% Temp : Perm 9% 23% 20% 26% 60% 40% Private : Public sector 67% 33% Accountancy & Finance Construction & Property IT Other London North & Scotland Home Counties Midlands & East Anglia South West & Wales Ireland #1 market position Diverse sector exposure Nationwide coverage Page 39

41 APAC profile Balanced portfolio 17 specialisms 6 countries Information is for year ended 30 June 2009 net fees: 149.1m operating profit: 61.4m conversion rate: 41.2% countries: 6 consultants: 771 offices: 49 Temp : Perm 53% 47% Private : Public sector 79% 21% Net fees by specialism 7% 24% 10% 23% 36% Accountancy & Finance Construction & Property IT Resources & Mining Other Net fees by country 91% Australia & NZ Japan Hong Kong China Singapore #1 Market position Diverse sector exposure Larger than next 3 Aus competitors combined Page 40

42 Continental Europe & RoW profile Balanced portfolio 16 specialisms 20 countries Information is for year ended 30 June 2009 net fees: 191.0m operating profit: 33.1m conversion rate: 17.3% countries: 20 consultants: 1,173 offices: 84 Temp : Perm 50% 50% Private : Public sector Rapidly developing markets 95% 5% Net fees by specialism 6% 15% 45% 21% 13% Accountancy & Finance Construction & Property IT Sales & Marketing Other Focused on core specialisms Net fees by country 4% 5% 8% 20% 17% Germany France Benelux Canada Spain Other 46% Broad geographical coverage Page 41

43 Segmental summary Pure play specialist recruitment Year ended 30 June Net fees Operating profit** 2009 m 2008 m Actual growth LFL* growth 2009 m 2008 m Actual growth LFL* growth United Kingdom & Ireland Accountancy & Finance (28)% (28)% (52)% (52)% Construction & Property (36)% (36)% (57)% (57)% Information Technology (15)% (15)% (57)% (57)% Other Specialist Activities (20)% (20)% (51)% (51)% (27)% (27)% (54)% (54)% Asia Pacific (15)% (20)% (26)% (29)% Continental Europe & RoW % 5% % (16)% Group (15)% (18)% (38)% (40)% Growth numbers represent results for the year ended 30 June 2009 versus the year ended 30 June *LFL ( like-for-like ) growth is organic growth at constant currency. There were the same number of trading days in 2008 and **2008 is shown pre-exceptional items. There were no exceptional items in Page 42

44 Like-for-like summary Year ended 30 June m 2008 FX impact Organic 2009 LFL* growth Net fees United Kingdom & Ireland (122.8) (27)% Asia Pacific (36.4) (20)% Continental Europe & RoW % (150.7) (18)% Operating profit** United Kingdom & Ireland (73.8) 63.5 (54)% Asia Pacific (25.3) 61.4 (29)% Continental Europe & RoW (6.2) 33.1 (16)% (105.3) (40)% *LFL ( like-for-like ) growth is organic growth at constant currency. There were the same number of trading days in 2008 and **2008 is shown pre-exceptional items. There were no exceptional items in Page 43

45 Exchange rates Pure play specialist recruitment Year ended 30 June 2009 Average Closing Australian $ Euro Impact of a one cent change per annum Net fees Op profit Australian $ Euro 0.7m 1.6m 0.3m 0.3m Page 44

46 H1 v H2 analysis by division Net fee growth (LFL*) versus same period last year UK & I APAC CE & ROW H1 09 H % -39% + 3% -39% + 27% -13% Operating profit growth (LFL*) versus same period last year UK & I APAC CE & ROW H1 09 H % -73% -4% -51% + 9% -39% Conversion rate (%) operating profit as % of net fees UK & I APAC CE & ROW H1 09 H % 13.0% 43.9% 37.2% 20.0% 14.2% *Growth is shown on a LFL ( like-for-like ) basis, which is pre-exceptional organic growth at constant currency for continuing activities only. There were the same number of trading days in 2008 and H1 09 is the period from 1 July 2008 to 31 December 2008; H2 09 is the period from 1 January 2009 to 30 June Page 45

47 Continental Europe & RoW highlights by country CE & RoW # offices Relative size Country / sub region Net fee growth # of offices # of consultants (ranked by fees) (LFL*) Germany 19% 9 257*** France (6)% Benelux (12)% Canada (10)% 9 87 Spain (26)% 7 87 Other** (13 countries) 7% *Percentages represent LFL ( like-for-like ) growth which is organic growth at constant currency for the year ended 30 June 2009 versus the year ended 30 June There were the same number of trading days in 2008 and Pie charts represent net fees by country / sub region. **Other represents financial results for remaining CE & RoW countries. *** In Germany our business model has a lower proportion of consultants relative to total employees due to its high weighting to the IT sector. Page 46

48 Recruitment consultant headcount Consultant headcount 4,259 Change in headcount As at June 2009 As at Dec 2008 Change since Dec 2008 As at June 2008 Change since June 2008 United Kingdom & Ireland Accountancy & Finance (20)% 1,139 (33)% Construction & Property (17)% 917 (40)% Information Technology % % Other (8)% 895 (13)% 2,315 2,685 (14)% 3,128 (26)% Asia Pacific 771 1,056 (27)% 1,206 (36)% Continental Europe & RoW 1,173 1,472 (20)% 1,415 (17)% 4,259 5,213 (18)% 5,749 (26)% Note that growth rates are adjusted for the re-classification of 49 consultants within APAC to non-consultant employees as at 30 June Page 47

49 Office network Number of offices 30 June 2008 Opened/ (Closed)* 30 June 2009 United Kingdom & Ireland 255 (43) 212 Asia Pacific 53 (4) 49 Continental Europe & RoW 85 (1) 84 Total 393 (48) 345 *Offices opened is shown net of closed and merged offices. Page 48

50 Trading days Number of trading days H1 H2 Year Year ended 30 June Year ended 30 June Year ending 30 June Page 49