Manpowergroup · NYSE:MAN
Manpowergroup — Q3 2020 Earnings Presentation
20 slides from Manpowergroup's earnings presentation, Oct 20, 2020
Slide 1: ManpowerGroup Third Quarter Results
ManpowerGroup Third Quarter Results | October 20, 2020 Exhibit 99.2
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation contains statements, including statements regarding the anticipated financial and operational impacts of the COVID-19 pandemic and related economic conditions and the Company’s efforts to respond to such impacts, that are forward-looking in nature and, acc
Slide 3: Consolidated Financial Highlights
Consolidated Financial Highlights ManpowerGroup 2020 Third Quarter Results As Reported As Adjusted(1) Q3 Financial Highlights 13% 13% Revenue $4.6B 14% CC 14% CC 20 bps 20 bps Gross Margin 15.8% 72% 37% Operating Profit $62M ($117M as adjusted) 72% CC 38% CC 280 bps 100 bps OP Margin 1.3% (2.6% as a
Slide 4: EPS Bridge – Q3 vs. Guidance Midpoint
(1) (3) ManpowerGroup 2020 Third Quarter Results EPS Bridge – Q3 vs. Guidance Midpoint Represents unfavorable impacts of $0.21 related to discrete tax item and $0.09 related to the loss from dispositions of subsidiaries.
Slide 5: Consolidated Gross Margin Change
Consolidated Gross Margin Change ManpowerGroup 2020 Third Quarter Results
Slide 6: Trend Business Line Gross Profit – Q3 2020
Trend Business Line Gross Profit – Q3 2020(1) (1) Business line classifications can vary by entity and are subject to change as service requirements change. █ Manpower █ Experis █ Talent Solutions █ ManpowerGroup – Total ManpowerGroup 2020 Third Quarter Results
Slide 7: SG&A Expense Bridge – Q3 YoY
SG&A Expense Bridge – Q3 YoY (in millions of USD) Reported ratio is unfavorably impacted 10 bps due to the effect of currency exchange rates on our business mix. In constant currency, SG&A as reported was 14.4% of revenue. ManpowerGroup 2020 Third Quarter Results
Slide 8: Americas Segment
Operating Unit Profit (OUP) is the measure that we use to evaluate segment performance. OUP is equal to segment revenues less direct costs and branch and national headquarters operating costs. Americas Segment (20% of Revenue) As Reported As Adjusted(1) Q3 Financial Highlights 15% 15% Revenue $929M
Slide 9: Americas – Q3 Revenue Trend
Revenue Trend - CC Revenue Trend % of Segment Revenue Americas – Q3 Revenue Trend YoY Average Daily Revenue Trend - CC On an organic basis, revenue and ADR for the US decreased 15% and 16%, respectively. (1) ManpowerGroup 2020 Third Quarter Results
Slide 10: Southern Europe Segment
As Reported As Adjusted(1) Q3 Financial Highlights 10% 10% Revenue $2.1B 15% CC 15% CC 38% 27% OUP $72M ($85M as adjusted) 41% CC 30% CC 150 bps 90 bps OUP Margin 3.4% (4.0% as adjusted) Southern Europe Segment (46% of Revenue) ManpowerGroup 2020 Third Quarter Results Excludes the impacts of restruc
Slide 11: Southern Europe – Q3 Revenue Trend
Southern Europe – Q3 Revenue Trend YoY Revenue Trend - CC Revenue Trend % of Segment Revenue Average Daily Revenue Trend - CC ManpowerGroup 2020 Third Quarter Results
Slide 12: Northern Europe Segment
Northern Europe Segment (21% of Revenue) ManpowerGroup 2020 Third Quarter Results As Reported As Adjusted(1) Q3 Financial Highlights 19% 19% Revenue $948M 22% CC 22% CC N/A 93% OUP -$23M (+$2M as adjusted) 92% CC 440 bps 180 bps OUP Margin -2.4% (+0.2% as adjusted) Excludes the impact of restructuri
Slide 13: Northern Europe – Q3 Revenue Trend
Northern Europe – Q3 Revenue Trend YoY Revenue Trend - CC Revenue Trend % of Segment Revenue Average Daily Revenue Trend - CC ManpowerGroup 2020 Third Quarter Results
Slide 14: APME Segment
APME Segment (13% of Revenue) ManpowerGroup 2020 Third Quarter Results As Reported As Adjusted(1) Q3 Financial Highlights 5% 5% Revenue $596M 6% CC 6% CC 70% 26% OUP $17M ($18M as adjusted) 70% CC 26% CC 590 bps 90 bps OUP Margin 2.8% (3.0% as adjusted) Excludes the impact of restructuring costs of
Slide 15: APME – Q3 Revenue Trend
APME – Q3 Revenue Trend YoY Revenue Trend - CC Revenue Trend % of Segment Revenue Average Daily Revenue Trend - CC (1) ManpowerGroup 2020 Third Quarter Results
Slide 16: Cash Flow Summary – YTD
Cash Flow Summary – 9 Months YTD ManpowerGroup 2020 Third Quarter Results
Slide 17: Balance Sheet Highlights
Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt Net (Cash) ManpowerGroup 2020 Third Quarter Results
Slide 18: Debt and Credit Facilities – September 30, 2020
Debt and Credit Facilities – September 30, 2020 (in millions of USD) (3) (1)(2) ManpowerGroup 2020 Third Quarter Results 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
Slide 19: Fourth Quarter 2020 Outlook
Fourth Quarter 2020 Outlook Revenue Total Down 8-10% (Down 10-12% CC) Americas Down 13-15% (Down 9-11% CC) Southern Europe Down 5-7% (Down 10-12% CC) Northern Europe Down 13-15% (Down 15-17% CC) APME Down 2-4% (Down 4-6% CC) Gross Profit Margin 15.8 – 16.0% Operating Profit Margin 2.3 – 2.5% Tax Rat
Slide 20: Key Take Aways
Continued improvement in year-over-year revenue trend during the quarter, marking five months of improvement since April 2020. Our talented teams have provided critical work to help people and companies around the world respond and reset following these unprecedented crises. Our Talent Solutions MSP