Slide 1: ManpowerGroup Second Quarter Results
ManpowerGroup Second Quarter Results July 21, 2016 Exhibit 99.2
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation includes forward-looking statements which are subject to known and unknown risks and uncertainties. Actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause ac
Slide 3: Consolidated Financial Highlights
July 2016 3 ManpowerGroup As Reported Q2 Financial Highlights 3% Revenue $5.0B 5% CC 0 bps Gross Margin 17.1% 10% Operating Profit $196M 10% CC 20 bps OP Margin 3.9% 20% EPS $1.60 22% CC Throughout this presentation, the difference between reported variances and Constant Currency (CC) variances repr
Slide 4: Reported EPS Bridge – Q2 vs. Guidance Midpoint
July 2016 4 ManpowerGroup $1.51 $1.60 +0.05 +0.01 +0.01 +0.02 Q2 Guidance Midpoint Operational Performance Other Expense Tax Rate (37.8% vs 38.0%) WAS Q2 Reported EPS Bridge – Q2 vs. Guidance Midpoint ManpowerGroup 2016 Second Quarter Results
Slide 5: Consolidated Gross Margin Change
July 2016 5 ManpowerGroup Consolidated Gross Margin Change ManpowerGroup 2016 Second Quarter Results 17.1% 17.1% Q2 2015 Staffing/Interim Permanent Recruitment Acquisition Impact Other Q2 2016 +0.1% -0.3% +0.1% +0.1%
Slide 6: Business Line Gross Profit – Q2 2016
July 2016 6 ManpowerGroup $535M 62% $175M 20% $103M 12% $48M 6% $861M Growth in CC % Business Line Gross Profit – Q2 2016 █ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total ManpowerGroup 2016 Second Quarter Results 2 8 14 3 5
Slide 7: SG&A Expense Bridge – Q2 YoY
July 2016 7 ManpowerGroup SG&A Expense Bridge – Q2 YoY (in millions of USD) ManpowerGroup 2016 Second Quarter Results 651.9 664.7 Q2 2015 Currency Impact Acquisitions Operational Impact Q2 2016 -6.2 +25.8 -6.8 13.4% % of Revenue % of Revenue 13.2%
Slide 8: Americas Segment Financial Highlights
July 2016 8 ManpowerGroup As Reported Q2 Financial Highlights 4% Revenue $1.1B 1% CC 4% OUP $54M 0% CC 0 bps OUP Margin 5.0% 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
Slide 9: Americas – Q2 Revenue Growth YoY
July 2016 9 ManpowerGroup -5% -10% -27% 10% -5% 7% 16% 19% US Mexico Argentina Other 67% 11% 4% 18% Americas – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue (1) On an organic basis, Other revenue decreased 3% (+6% in CC). (1) ManpowerGroup 2016 Second Quarter Results
Slide 10: Southern Europe Segment Financial Highlights
July 2016 10 ManpowerGroup As Reported Q2 Financial Highlights 3% Revenue $1.9B 1% CC 8% OUP $102M 6% CC 20 bps OUP Margin 5.3% Southern Europe Segment (39% of Revenue) ManpowerGroup 2016 Second Quarter Results
Slide 11: Southern Europe – Q2 Revenue Growth YoY
July 2016 11 ManpowerGroup Southern Europe – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue ManpowerGroup 2016 Second Quarter Results 4% -6% 16% 5% 2% -8% 14% 4% France Italy Spain Other 65% 16% 7% 12%
Slide 12: Northern Europe Segment Financial Highlights
July 2016 12 ManpowerGroup As Reported Q2 Financial Highlights 7% Revenue $1.3B 10% CC 11% OUP $38M 13% CC 10 bps OUP Margin 2.9% Northern Europe Segment (26% of Revenue) ManpowerGroup 2016 Second Quarter Results
Slide 13: Northern Europe – Q2 Revenue Growth YoY
July 2016 13 ManpowerGroup Northern Europe – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue (1) On an organic basis, Germany revenue increased 10% (+8% in CC) and Belgium revenue increased 17% (+15% in CC). ManpowerGroup 2016 Second Quarter Results -7% -1% 61% 23% 23%
Slide 14: APME Segment Financial Highlights
July 2016 14 ManpowerGroup As Reported Q2 Financial Highlights 10% Revenue $615M 10% CC 21% OUP $22M 19% CC 30 bps OUP Margin 3.6% APME Segment (12% of Revenue) ManpowerGroup 2016 Second Quarter Results
Slide 15: APME – Q2 Revenue Growth YoY
July 2016 15 ManpowerGroup 14% 14% 6% 1% 19% 11% Japan Australia/NZ Other 35% 25% 40% APME – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue (1) On an organic basis, Australia/NZ revenue decreased 2% (+3% in CC). (1) ManpowerGroup 2016 Second Quarter Results
Slide 16: Right Management Segment Financial Highlights
July 2016 16 ManpowerGroup As Reported Q2 Financial Highlights 1% Revenue $73M 3% CC 24% OUP $14M 26% CC 360 bps OUP Margin 19.8% Right Management Segment (1% of Revenue) ManpowerGroup 2016 Second Quarter Results
Slide 17: Cash Flow Summary – Six Months YTD
July 2016 17 ManpowerGroup Cash Flow Summary – 6 Months YTD ManpowerGroup 2016 Second Quarter Results (in millions of USD) 2016 2015 Net Earnings 187 171 Non-cash Provisions and Other 96 107 Change in Operating Assets/Liabilities (21) (239) Capital Expenditures (31) (20) Free Cash Flow 231 19 Change
Slide 18: Balance Sheet Highlights
July 2016 18 ManpowerGroup 120 -221 -231 125 132 308 768 516 468 855 880 854 -400 0 400 800 1,200 2012 2013 2014 2015 Q1 Q2 2016 Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt (Cash) ManpowerGroup 2016 Second Quarter Results 23% 15% 14
Slide 19: Debt and Credit Facilities
July 2016 19 ManpowerGroup (1) 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 a Debt
Slide 20: Third Quarter Outlook
July 2016 20 ManpowerGroup Third Quarter Outlook Revenue Total Down/Up 1% (Up 1-3% CC) Americas Down 2-4% (Flat/Up 2% CC) Southern Europe Down/Up 1% (Down/Up 1% CC) Northern Europe Down 1-3% (Up 4-6% CC) APME Up 9-11% (Up 4-6% CC) Right Management Down/Up 1% (Up 1-3% CC) Gross Profit Margin 16.9 – 1
Slide 21: Key Take Aways
July 2016 21 ManpowerGroup Key Take Aways Solid quarterly earnings growth despite the uneven market conditions; a result of our focus on price discipline and good execution in managing expenses and driving productivity. The global economy remains slow and uneven; regardless of the environment, we wi