Manpowergroup · NYSE:MAN

Manpowergroup — Q1 2016 Earnings Presentation

21 slides from Manpowergroup's earnings presentation, Apr 21, 2016

  1. Slide 1: ManpowerGroup First Quarter Results

    ManpowerGroup First Quarter Results April 21, 2016 Exhibit 99.2

  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

  3. Slide 3: Consolidated Financial Highlights

    April 2016 3 ManpowerGroup As Reported Q1 Financial Highlights 1% Revenue $4.6B 5% CC 10 bps Gross Margin 16.9% 7% Operating Profit $132M 11% CC 20 bps OP Margin 2.9% 18% EPS $0.98 22% CC Throughout this presentation, the difference between reported variances and Constant Currency (CC) variances rep

  4. Slide 4: EPS Bridge – Q1 vs. Guidance Midpoint

    April 2016 4 ManpowerGroup EPS Bridge – Q1 vs. Guidance Midpoint ManpowerGroup 2016 First Quarter Results $0.91 $0.98 +0.05 +0.01 +0.01 Q1 Guidance Midpoint Operational Performance Currency (-3¢ vs -4¢) WAS Q1 Reported

  5. Slide 5: Consolidated Gross Margin Change

    April 2016 5 ManpowerGroup Consolidated Gross Margin Change ManpowerGroup 2016 First Quarter Results 16.8% 16.9% Q1 2015 Acquisition Impact Staffing/Interim Permanent Recruitment Currency Other Q1 2016 +0.2% -0.2% +0.1% -0.1% +0.1%

  6. Slide 6: Business Line Gross Profit – Q1 2016

    April 2016 6 ManpowerGroup Growth in CC % Business Line Gross Profit – Q1 2016 █ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total ManpowerGroup 2016 First Quarter Results $476M 62% $163M 21% $94M 12% $41M 5% $774M 2 13 7 5 5

  7. Slide 7: SG&A Expense Bridge – Q1 YoY

    April 2016 7 ManpowerGroup 639.2 642.1 Q1 2015 Reported Currency Impact Acquisitions Operational Impact Q1 2016 14.1% % of Revenue % of Revenue 14.0% -21.7 +27.4 -2.8 (1) SG&A Expense Bridge – Q1 YoY (in millions of USD) (1) This was unfavorably impacted 10 bps due to the effect of currency exchange

  8. Slide 8: Americas Segment Q1 Financial Highlights

    April 2016 8 ManpowerGroup As Reported Q1 Financial Highlights 4% Revenue $1.0B 4% CC 14% OUP $34M 23% CC 50 bps OUP Margin 3.3% 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 headquar

  9. Slide 9: Americas – Q1 Revenue Growth YoY

    April 2016 9 ManpowerGroup Americas – Q1 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue -3% -8% -21% 3% -3% 11% 31% 20% US Mexico Argentina Other 67% 11% 4% 18% ManpowerGroup 2016 First Quarter Results (1) On an organic basis, Other Americas revenue decreased 9% (+7% in C

  10. Slide 10: Southern Europe Segment Q1 Financial Highlights

    April 2016 10 ManpowerGroup As Reported Q1 Financial Highlights 3% Revenue $1.7B 5% CC 1% OUP $72M 0% CC 10 bps OUP Margin 4.3% Southern Europe Segment (37% of Revenue) ManpowerGroup 2016 First Quarter Results

  11. Slide 11: Southern Europe – Q1 Revenue Growth YoY

    April 2016 11 ManpowerGroup Southern Europe – Q1 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue 4% -3% 15% -1% 6% -1% 17% 0% France Italy Spain Other 64% 16% 7% 13% ManpowerGroup 2016 First Quarter Results

  12. Slide 12: Northern Europe Segment Q1 Financial Highlights

    April 2016 12 ManpowerGroup As Reported Q1 Financial Highlights 0% Revenue $1.2B 4% CC 8% OUP $33M 11% CC 20 bps OUP Margin 2.7% Northern Europe Segment (26% of Revenue) ManpowerGroup 2016 First Quarter Results

  13. Slide 13: Northern Europe – Q1 Revenue Growth YoY

    April 2016 13 ManpowerGroup -12% 49% -8% 4% 8% -11% -6% 52% -4% 6% 10% -3% UK Germany Nordics Netherlands Belgium Other 39% 19% 19% 11% 7% 5% (1) (1) Northern Europe – Q1 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue (1) On an organic basis, Germany revenue increased 2%

  14. Slide 14: APME Segment Q1 Financial Highlights

    April 2016 14 ManpowerGroup As Reported Q1 Financial Highlights 8% Revenue $576M 12% CC 2% OUP $19M 6% CC 20 bps OUP Margin 3.3% APME Segment (13% of Revenue) ManpowerGroup 2016 First Quarter Results

  15. Slide 15: APME – Q1 Revenue Growth YoY

    April 2016 15 ManpowerGroup APME – Q1 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue (1) On an organic basis, Australia/NZ revenue decreased 6% (+3% in CC). 7% 19% 3% 4% 30% 10% Japan Australia/NZ Other 35% 24% 41% (1) ManpowerGroup 2016 First Quarter Results

  16. Slide 16: Right Management Segment Q1 Financial Highlights

    April 2016 16 ManpowerGroup As Reported Q1 Financial Highlights 1% Revenue $64M 2% CC 69% OUP $10M 71% CC 610 bps OUP Margin 14.9% Right Management Segment (1% of Revenue) ManpowerGroup 2016 First Quarter Results

  17. Slide 17: Cash Flow Summary – Q1

    April 2016 17 ManpowerGroup Cash Flow Summary – Q1 ManpowerGroup 2016 First Quarter Results (in millions of USD) 2016 2015 Net Earnings 72 66 Non-cash Provisions and Other 47 48 Change in Operating Assets/Liabilities 46 (92) Capital Expenditures (17) (10) Free Cash Flow 148 12 Change in Debt (16) 2

  18. Slide 18: Balance Sheet Highlights

    April 2016 18 ManpowerGroup 120 -221 -231 125 132 768 516 468 855 880 -400 0 400 800 1,200 2012 2013 2014 2015 Q1 2016 Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt (Cash) ManpowerGroup 2016 First Quarter Results 23% 15% 14% 24% 25% 0

  19. Slide 19: Debt and Credit Facilities

    April 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 Deb

  20. Slide 20: Second Quarter Outlook

    April 2016 20 ManpowerGroup Second Quarter Outlook Revenue Total Up 3-5% (Up 5-7% CC) Americas Down 1-3% (Up 4-6% CC) Southern Europe Up 5-7% (Up 3-5% CC) Northern Europe Up 4-6% (Up 8-10% CC) APME Up 7-9% (Up 8-10% CC) Right Management Down/Up 1% (Up 1-3% CC) Gross Profit Margin 17.1 – 17.3% Operat

  21. Slide 21: Key Take Aways

    April 2016 21 ManpowerGroup Key Take Aways Solid quarterly performance despite the uneven market conditions, with good progress in all brands and offerings. We remain committed to seizing growth opportunities aligned with our strategies, achieving good leverage on that growth and continuing to build

ManpowerGroup — Q1 2016 Earnings Presentation on 6ix