Slide 1: ManpowerGroup Third Quarter Results
ManpowerGroup Third Quarter Results | October 18, 2019 Exhibit 99.2
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation contains statements, including financial projections, that are forward-looking in nature. These statements are based on management’s current expectations or beliefs, and are subject to known and unknown risks and uncertainties regarding expected future res
Slide 3: Q3 Consolidated Financial Highlights
As Reported As Adjusted(1) Q3 Financial Highlights 3% 3% Revenue $5.2B 0% CC 0% CC 40 bps 40 bps Gross Margin 16.0% 0% 14% Operating Profit $217M ($187M as adjusted) 3% CC 11% CC 10 bps 40 bps OP Margin 4.1% (3.6% as adjusted) 0% 21% EPS $2.42 ($1.92 as adjusted) 2% CC 18% CC Consolidated Financial
Slide 4: EPS Bridge – Q3 vs. Guidance Midpoint
EPS Bridge – Q3 vs. Guidance Midpoint ManpowerGroup 2019 Third Quarter Results
Slide 5: Consolidated Gross Margin Change
Consolidated Gross Margin Change ManpowerGroup 2019 Third Quarter Results
Slide 6: Total Business Line Gross Profit – Q3 2019
Growth █ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total Business Line Gross Profit – Q3 2019(1) (1) Business line classifications can vary by entity and are subject to change as service requirements change. ManpowerGroup 2019 Third Quarter Results
Slide 7: SG&A Expense Bridge – Q3 YoY
SG&A Expense Bridge – Q3 YoY (in millions of USD) ManpowerGroup 2019 Third Quarter Results This was unfavorably impacted 10 bps due to the effect of currency exchange rates on our business mix. In constant currency, SG&A as adjusted was 12.4% of Revenue.
Slide 8: Americas Segment Q3 Financial Highlights
As Reported Q3 Financial Highlights 3% Revenue $1.1B 6% CC 7% OUP $55M 9% CC 20 bps OUP Margin 5.1% 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. America
Slide 9: Americas – Q3 Revenue Growth YoY
Revenue Growth - CC Revenue Growth % of Segment Revenue Americas – Q3 Revenue Growth YoY Average Daily Revenue Growth - CC ManpowerGroup 2019 Third Quarter Results
Slide 10: Southern Europe Segment Q3 Financial Highlights
As Reported Q3 Financial Highlights 1% Revenue $2.4B 5% CC 4% OUP $117M 0% CC 20 bps OUP Margin 5.0% Southern Europe Segment (45% of Revenue) ManpowerGroup 2019 Third Quarter Results
Slide 11: Southern Europe – Q3 Revenue Growth YoY
Southern Europe – Q3 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue Average Daily Revenue Growth - CC ManpowerGroup 2019 Third Quarter Results
Slide 12: Northern Europe Segment Q3 Financial Highlights
Northern Europe Segment (22% of Revenue) ManpowerGroup 2019 Third Quarter Results As Reported Q3 Financial Highlights 10% Revenue $1.2B 5% CC 47% OUP $21M 44% CC 130 bps OUP Margin 1.8%
Slide 13: Northern Europe – Q3 Revenue Growth YoY
Northern Europe – Q3 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue Average Daily Revenue Growth - CC ManpowerGroup 2019 Third Quarter Results (1) On an organic basis, revenue for the Netherlands decreased 20% or -16% in constant currency. (ADR in organic constant currenc
Slide 14: APME Segment Q3 Financial Highlights
APME Segment (12% of Revenue) ManpowerGroup 2019 Third Quarter Results As Reported As Adjusted(1) Q3 Financial Highlights 13% 13% Revenue $622M 13% CC 13% CC 65% 29% OUP $53M ($23M as adjusted) 64% CC 29% CC 410 bps 80 bps OUP Margin 8.6% (3.7% as adjusted) Excludes the impact of the Greater China I
Slide 15: APME – Q3 Revenue Growth YoY
APME – Q3 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue Average Daily Revenue Growth - CC On an organic basis excluding Greater China, revenue for APME Other increased 19% or +21% in constant currency. (1) ManpowerGroup 2019 Third Quarter Results
Slide 16: Right Management Segment Q3 Financial Highlights
Right Management Segment (1% of Revenue) ManpowerGroup 2019 Third Quarter Results As Reported Q3 Financial Highlights 3% Revenue $48M 5% CC 14% OUP $8M 16% CC 150 bps OUP Margin 15.5%
Slide 17: Cash Flow Summary – Months YTD
Cash Flow Summary – 9 Months YTD ManpowerGroup 2019 Third Quarter Results
Slide 18: Balance Sheet Highlights
Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt (Cash) ManpowerGroup 2019 Third Quarter Results
Slide 19: Debt and Credit Facilities – September 30, 2019
Interest Rate Maturity Date Total Outstanding Remaining Available Euro Notes - €500M 1.809% Jun 2026 540 - Euro Notes - €400M 1.913% Sep 2022 434 - Revolving Credit Agreement 3.02% Jun 2023 - 599 Uncommitted lines and Other Various Various 56 257 Total Debt 1,030 856 Debt and Credit Facilities – Sep
Slide 20: Fourth Quarter 2019 Outlook
Fourth Quarter 2019 Outlook ManpowerGroup 2019 Third Quarter Results Revenue Total Down 3-5% (Flat/Down 2% CC) Americas Up 1-3% (Up 3-5% CC) Southern Europe Up 1-3% (Up 4-6% CC) Northern Europe Down 9-11% (Down 5-7% CC) APME Down 16-18% (Down 16-18% CC) Right Management Flat/Down 2% (Flat/Up 2% CC)
Slide 21: Key Take Aways
Our third quarter performance and earnings reflect a continuation of many of the same trends we experienced in the second quarter, against a backdrop of slowing economic growth globally and continued tight labor markets in many countries. We continue to make the necessary investments to diversify ou