Manpowergroup · NYSE:MAN
Manpowergroup — Q1 2017 Earnings Presentation
21 slides from Manpowergroup's earnings presentation, Apr 21, 2017
Slide 1: First Quarter Results
ManpowerGroup First Quarter Results | April 21, 2017 Exhibit 99.2
Slide 2: Forward-Looking Statement
ManpowerGroup April 2017 2 FORWARD-LOOKING STATEMENT This presentation contains statements, including financial projections, that are forward- looking in nature. These statements are based on managements’ current expectations or beliefs, and are subject to known and unknown risks and uncertainties r
Slide 3: ManpowerGroup 2017 First Quarter Results: Consolidated Financial Highlights
ManpowerGroup April 2017 3 ManpowerGroup 2017 First Quarter Results Throughout this presentation, the difference between reported variances and Constant Currency (CC) variances represents the impact of changes in currency on our financial results. Constant Currency is further explained in the Annual
Slide 4: EPS Bridge – Q1 vs. Guidance Midpoint
ManpowerGroup April 2017 4 ManpowerGroup 2017 First Quarter Results EPS Bridge – Q1 vs. Guidance Midpoint $1.39 $1.09 $1.10 $1.09 +0.11 +0.20 -0.02 -0.30 Q1 Guidance Midpoint Operational Performance Tax Rate (30.0% vs 40.0%) Other Expense Reported Excluding Restructuring Charges Restructuring Charge
Slide 5: Consolidated Gross Margin Change
ManpowerGroup April 2017 5 ManpowerGroup 2017 First Quarter Results Consolidated Gross Margin Change 16.9% 16.6% Q1 2016 Staffing/Interim Right Management / Solutions Currency Q1 2017 -0.2% -0.2% +0.1%
Slide 6: Total Business Line Gross Profit – Q1 2017
ManpowerGroup April 2017 6 ManpowerGroup 2017 First Quarter Results Growth █ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total Business Line Gross Profit – Q1 2017 $479M 61% $168M 21% $105M 13% $36M 5% $788M 1% 4% CC 3% 6% CC 11% 12% CC -14% -12% CC 2% 5% CC
Slide 7: SG&A Expense Bridge – Q1 YoY
ManpowerGroup April 2017 7 ManpowerGroup 2017 First Quarter Results 636.8 642.1 660.8 Q1 2016 Currency Acquisitions Operational Impact Q1 2017 Excluding Restructuring Charges Restructuring Q1 2017 -16.0 +4.6 +24.0 +6.1 14.0% % of Revenue 13.4% % of Revenue % of Revenue 13.9% SG&A Expense Bridge – Q1
Slide 8: Americas Segment Q1 Financial Highlights
ManpowerGroup April 2017 8 ManpowerGroup 2017 First Quarter Results As Reported Q1 Financial Highlights 2% Revenue $1.0B 1% CC 13% OUP $39M 14% CC 50 bps OUP Margin 3.8% Operating Unit Profit (OUP) is the measure that we use to evaluate segment performance. OUP is equal to segment revenues less dire
Slide 9: Americas – Q1 Revenue Growth YoY
ManpowerGroup April 2017 9 ManpowerGroup 2017 First Quarter Results Revenue Growth - CC Revenue Growth % of Segment Revenue Americas – Q1 Revenue Growth YoY -6% -3% 10% 12% -6% 9% 19% 6% US Mexico Argentina Other 64% 11% 5% 20%
Slide 10: Southern Europe Segment Q1 Financial Highlights
ManpowerGroup April 2017 10 ManpowerGroup 2017 First Quarter Results As Reported Q1 Financial Highlights 7% Revenue $1.8B 10% CC 13% OUP $81M 17% CC 20 bps OUP Margin 4.5% Southern Europe Segment (38% of Revenue)
Slide 11: Southern Europe – Q1 Revenue Growth YoY
ManpowerGroup April 2017 11 ManpowerGroup 2017 First Quarter Results Southern Europe – Q1 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue (1) (1) On an organic basis, revenue for Spain increased 1% (+4% in CC). 5% 12% 2% 10% 9% 16% 6% 12% France Italy Spain Other 63% 16% 7
Slide 12: Northern Europe Segment Q1 Financial Highlights
ManpowerGroup April 2017 12 ManpowerGroup 2017 First Quarter Results As Reported Excluding Restructuring Charges(1) Q1 Financial Highlights 2% 2% Revenue $1.2B 9% CC 9% CC 65% 4% OUP $11M 64% CC 11% CC 180 bps 0 bps OUP Margin 0.9% (1) Excludes the impact of restructuring charges of $22.6M in Q1 201
Slide 13: Northern Europe – Q1 Revenue Growth YoY
ManpowerGroup April 2017 13 ManpowerGroup 2017 First Quarter Results -17% 13% 10% 30% 9% 10% -4% 17% 12% 35% 13% 6% UK Germany Nordics Netherlands Belgium Other 31% 21% 20% 13% 8% 7% Northern Europe – Q1 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue (1) On an organic bas
Slide 14: APME Segment Q1 Financial Highlights
ManpowerGroup April 2017 14 ManpowerGroup 2017 First Quarter Results As Reported Excluding Restructuring Charges(1) Q1 Financial Highlights 10% 10% Revenue $632M 8% CC 8% CC 4% 12% OUP $20M 3% CC 10% CC 10 bps 10 bps OUP Margin 3.2% (1) Excludes the impact of restructuring charges of $1.4M in Q1 201
Slide 15: APME – Q1 Revenue Growth YoY
ManpowerGroup April 2017 15 ManpowerGroup 2017 First Quarter Results APME – Q1 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue 5% 9% 15% 3% 4% 15% Japan Australia/NZ Other 34% 24% 42%
Slide 16: Right Management Segment Q1 Financial Highlights
ManpowerGroup April 2017 16 ManpowerGroup 2017 First Quarter Results As Reported Q1 Financial Highlights 13% Revenue $56M 11% CC 7% OUP $9M 6% CC 90 bps OUP Margin 15.8% Right Management Segment (1% of Revenue)
Slide 17: Cash Flow Summary – Q1
ManpowerGroup April 2017 17 ManpowerGroup 2017 First Quarter Results Cash Flow Summary – Q1 (in millions of USD) 2017 2016 Net Earnings 74 72 Non-cash Provisions and Other 47 47 Change in Operating Assets/Liabilities 70 46 Capital Expenditures (11) (17) Free Cash Flow 180 148 Change in Debt (4) (16)
Slide 18: Balance Sheet Highlights
ManpowerGroup April 2017 18 ManpowerGroup 2017 First Quarter Results Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt (Cash) -221 -231 125 227 109 516 468 855 825 834 -300 0 300 600 900 2013 2014 2015 2016 Q1 2017 15% 14% 24% 25% 25% 0%
Slide 19: Debt and Credit Facilities
ManpowerGroup April 2017 19 ManpowerGroup 2017 First Quarter Results (1) The $600M agreement requires that we comply with a Leverage Ratio (net Debt-to-EBITDA) of not greater than 3.5 to 1 and a Fixed Charge Coverage Ratio of not less than 1.5 to 1, in addition to other customary restrictive covenan
Slide 20: Second Quarter Outlook
ManpowerGroup April 2017 20 ManpowerGroup 2017 First Quarter Results Second Quarter Outlook Revenue Total Flat/Down 2% (Up 3-5% CC) Americas Flat/Down 2% (Down/Up 1% CC) Southern Europe Up 2-4% (Up 7-9% CC) Northern Europe Down 6-8% (Flat/Up 2% CC) APME Up 5-7% (Up 6-8% CC) Right Management Down 13-
Slide 21: Strong performance in the first quarter, with good top line growth and strong bottom
ManpowerGroup April 2017 21 ManpowerGroup 2017 First Quarter Results Strong performance in the first quarter, with good top line growth and strong bottom line performance. Continued slow growth environment but improving economic and labor market outlook in many parts of the world, including Europe.