Manpowergroup · NYSE:MAN
Manpowergroup — Q2 2019 Earnings Presentation
21 slides from Manpowergroup's earnings presentation, Jul 19, 2019
Slide 1: ManpowerGroup Second Quarter Results
ManpowerGroup Second Quarter Results | July 19, 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: Q2 Consolidated Financial Highlights
As Reported As Adjusted(1) Q2 Financial Highlights 5% 5% Revenue $5.4B 0% CC 0% CC 10 bps 10 bps Gross Margin 16.2% 37% 12% Operating Profit $131M ($196M as adjusted) 33% CC 7% CC 130 bps 30 bps OP Margin 2.4% (3.7% as adjusted) 3% 13% EPS $2.11 ($2.05 as adjusted) 1% CC 8% CC Consolidated Financial
Slide 4: EPS Bridge – Q2 vs. Guidance Midpoint
EPS Bridge – Q2 vs. Guidance Midpoint ManpowerGroup 2019 Second Quarter Results
Slide 5: Consolidated Gross Margin Change
Consolidated Gross Margin Change ManpowerGroup 2019 Second Quarter Results
Slide 6: Total Business Line Gross Profit – Q2 2019
Growth █ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total Business Line Gross Profit – Q2 2019(1) (1) Business line classifications can vary by entity and are subject to change as service requirements change. ManpowerGroup 2019 Second Quarter Results
Slide 7: SG&A Expense Bridge – Q2 YoY
SG&A Expense Bridge – Q2 YoY (in millions of USD) ManpowerGroup 2019 Second 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 excluding goodwill impairment and related charges was 13.7% of Revenue. (1)
Slide 8: Americas Segment Q2 Financial Highlights
As Reported Q2 Financial Highlights 1% Revenue $1.0B 3% CC 13% OUP $49M 11% CC 70 bps OUP Margin 4.7% 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. Ameri
Slide 9: Americas – Q2 Revenue Growth YoY
Revenue Growth - CC Revenue Growth % of Segment Revenue Americas – Q2 Revenue Growth YoY Average Daily Revenue Growth - CC ManpowerGroup 2019 Second Quarter Results
Slide 10: Southern Europe Segment Q2 Financial Highlights
As Reported Excluding Restructuring Costs(1) Q2 Financial Highlights 2% 2% Revenue $2.4B 4% CC 4% CC 1% 0% OUP $124M 7% CC 5% CC 20 bps 10 bps OUP Margin 5.2% Southern Europe Segment (45% of Revenue) Excludes the impact of restructuring costs of $2.3M in Q2 2018. ManpowerGroup 2019 Second Quarter Re
Slide 11: Southern Europe – Q2 Revenue Growth YoY
Southern Europe – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue Average Daily Revenue Growth - CC ManpowerGroup 2019 Second Quarter Results
Slide 12: Northern Europe Segment Q2 Financial Highlights
Northern Europe Segment (22% of Revenue) Excludes the impact of restructuring costs of $13.2M in Q2 2018 As Reported Excluding Restructuring Costs(1) Q2 Financial Highlights 15% 15% Revenue $1.2B 10% CC 10% CC 2% 36% OUP $24M 5% CC 32% CC 20 bps 70 bps OUP Margin 2.0% ManpowerGroup 2019 Second Quart
Slide 13: Northern Europe – Q2 Revenue Growth YoY
Northern Europe – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue Average Daily Revenue Growth - CC On an organic basis, revenue for Netherlands decreased 22% or -17% in constant currency (ADR in organic constant currency is -19%). (1) ManpowerGroup 2019 Second Quarter
Slide 14: APME Segment Q2 Financial Highlights
APME Segment (13% of Revenue) As Reported Q2 Financial Highlights 2% Revenue $709M 1% CC 4% OUP $28M 1% CC 10 bps OUP Margin 4.0% ManpowerGroup 2019 Second Quarter Results
Slide 15: APME – Q2 Revenue Growth YoY
APME – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue Average Daily Revenue Growth - CC On an organic basis, revenue for APME Other increased 11% or +16% in constant currency. (1) ManpowerGroup 2019 Second Quarter Results
Slide 16: Right Management Segment Q2 Financial Highlights
Right Management Segment (1% of Revenue) Excludes the impact of restructuring costs of ($0.2M) in Q2 2018. As Reported Excluding Restructuring Costs(1) Q2 Financial Highlights 4% 4% Revenue $50M 1% CC 1% CC 13% 11% OUP $9M 12% CC 9% CC 200 bps 160 bps OUP Margin 17.9% ManpowerGroup 2019 Second Quart
Slide 17: Cash Flow Summary – Months YTD
Cash Flow Summary – 6 Months YTD ManpowerGroup 2019 Second 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 Second Quarter Results
Slide 19: Debt and Credit Facilities – June 30, 2019
Interest Rate Maturity Date Total Outstanding Remaining Available Euro Notes - €500M 1.809% Jun 2026 563 - Euro Notes - €400M 1.913% Sep 2022 453 - Revolving Credit Agreement 3.40% Jun 2023 - 599 Uncommitted lines and Other Various Various 57 273 Total Debt 1,073 872 Debt and Credit Facilities – Jun
Slide 20: Third Quarter 2019 Outlook
Third Quarter 2019 Outlook Revenue Total Flat/Down 2% (Flat/Up 2% CC) Americas Up 2-4% (Up 4-6% CC) Southern Europe Up 3-5% (Up 6-8% CC) Northern Europe Down 6-8% (Down 2-4% CC) APME Down 14-16% (Down 14-16% CC) Right Management Down 1-3% (Up/Down 1% CC) Gross Profit Margin 15.9 – 16.1% Operating Pr
Slide 21: Key Take Aways
The second quarter revenue trends were consistent with the first quarter trend on an organic constant currency basis demonstrating ongoing stabilization in Europe. There continues to be demand for our extensive portfolio of workforce solutions and services in many markets providing good opportunitie