Slide 1: First Quarter Results April 23, 2014
ManpowerGroup First Quarter Results April 23, 2014
Slide 2: Forward-Looking Statements
ManpowerGroup | April 2014 * Forward-Looking Statements 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
Slide 3: Q1 Financial Highlights – Consolidated
ManpowerGroup | April 2014 * Excludes the impact of restructuring charges of $34.8M in Q1 2013. As Reported Excluding PY Restructuring Charges Q1 Financial Highlights 3% 3% Revenue $4.9B 3% CC 3% CC Revenue $4.9B 10 bps 10 bps Gross Margin 16.7% 133% 42% Operating Profit $127M 135% CC 43% CC Operati
Slide 4: EPS Bridge – Q1 vs. Guidance Midpoint
ManpowerGroup | April 2014 * EPS Bridge – Q1 vs. Guidance Midpoint + 0.01 + 0.10 + 0.05 - 0.01 + 0.02
Slide 5: Consolidated Gross Margin Change
ManpowerGroup | April 2014 * Consolidated Gross Margin Change
Slide 6: Business Line Gross Profit – Q1 2014
ManpowerGroup | April 2014 * $817M Growth in CC % Business Line Gross Profit – Q1 2014 █ Manpower █ Experis █ ManpowerGroup - Total █ ManpowerGroup Solutions █ Right Management
Slide 7: SG&A Expense Bridge – Q1 YoY
ManpowerGroup | April 2014 * SG&A Expense Bridge – Q1 YoY (in millions of USD) Productivity Gain 14.1% % of Revenue 14.7% % of Revenue
Slide 8: Americas Segment Q1 Financial Highlights
ManpowerGroup | April 2014 * 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. As Reported Excluding PY Restructuring Charges Q1 Financial Highlights 2% 2% R
Slide 9: Americas – Q1 Revenue Growth YoY
ManpowerGroup | April 2014 * Americas – Q1 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue 67% 12% 5% 16%
Slide 10: Southern Europe Segment Q1 Financial Highlights
ManpowerGroup | April 2014 * As Reported Excluding PY Restructuring Charges Q1 Financial Highlights 8% 8% Revenue $1.7B 4% CC 4% CC Revenue $1.7B 56% 52% OUP $68M 50% CC 46% CC OUP $68M 130 bps 110 bps OUP Margin 4.0% (1) Southern Europe Segment (35% of Revenue) Included in these amounts is France,
Slide 11: Southern Europe – Q1 Revenue Growth YoY
ManpowerGroup | April 2014 * Southern Europe – Q1 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue 71% 16% 6% 7% (1) On an organic basis, Spain revenue increased 28% (23% in CC).
Slide 12: Northern Europe Segment Q1 Financial Highlights
ManpowerGroup | April 2014 * As Reported Excluding PY Restructuring Charges Q1 Financial Highlights 7% 7% Revenue $1.5B 5% CC 5% CC Revenue $1.5B 261% 39% OUP $38M 257% CC 37% CC OUP $38M 180 bps 60 bps OUP Margin 2.6% Northern Europe Segment (30% of Revenue) (1) Excludes the impact of restructuring
Slide 13: Northern Europe – Q1 Revenue Growth YoY
ManpowerGroup | April 2014 * Northern Europe – Q1 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue
Slide 14: APME Segment Q1 Financial Highlights
ManpowerGroup | April 2014 * As Reported Excluding PY Restructuring Charges Q1 Financial Highlights 9% 9% Revenue $574M 1% CC 1% CC Revenue $574M 38% 18% OUP $20M 52% CC 31% CC OUP $20M 120 bps 80 bps OUP Margin 3.5% APME Segment (12% of Revenue) (1) Excludes the impact of restructuring charges of $
Slide 15: APME – Q1 Revenue Growth YoY
ManpowerGroup | April 2014 * APME – Q1 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue 37% 25% 38%
Slide 16: Right Management Segment Q1 Financial Highlights
ManpowerGroup | April 2014 * Right Management Segment (1% of Revenue) As Reported Excluding PY Restructuring Charges Q1 Financial Highlights 4% 4% Revenue $73M 4% CC 4% CC Revenue $73M 306% 42% OUP $8M 304% CC 41% CC OUP $8M 860 bps 370 bps OUP Margin 11.3% (1) Excludes the impact of restructuring c
Slide 17: Cash Flow Summary – Q1
ManpowerGroup | April 2014 * Cash Flow Summary – Q1
Slide 18: Balance Sheet Highlights
ManpowerGroup | April 2014 * Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt (Cash)
Slide 19: Credit Facilities and Covenants
ManpowerGroup | April 2014 * (1) (2) The $600M agreement requires that we comply with a Leverage Ratio (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 covenants. As defined in the agreement, we had
Slide 20: Second Quarter Outlook
ManpowerGroup | April 2014 * Second Quarter Outlook Revenue Total Up 4-6% (Up 2-4% CC) Americas Up/Down 1% (Up 3-5% CC) Southern Europe Up 9-11% (Up 3-5% CC) Northern Europe Up 6-8% (Up 2-4% CC) APME Down 3-5% (Up/Down 1% CC) Right Management Right Management Flat/Down 2% (Down 1-3% CC) Gross Profit
Slide 21: Highlights
ManpowerGroup | April 2014 * Highlights Strong first quarter execution Positive revenue momentum in major geographies Simplification plan driving sales focus and strong operating leverage. Management transition smooth and on track
Slide 22: Questions
ManpowerGroup | April 2014 * ManpowerGroup | April 2014 * Questions