Slide 1: Second Quarter Results July 21, 2014
ManpowerGroup Second Quarter Results July 21, 2014
Slide 2: Forward-Looking Statements
ManpowerGroup | July 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: Q2 Consolidated Financial Highlights
ManpowerGroup | July 2014 * As Reported Excluding PY Restructuring Charges Q2 Financial Highlights 6% 6% Revenue $5.3B 4% CC 4% CC Revenue $5.3B 30 bps 30 bps Gross Margin 16.9% 46% 27% Operating Profit $187M 43% CC 24% CC Operating Profit $187M 100 bps 60 bps OP Margin 3.5% 55% 29% EPS $1.35 52% CC
Slide 4: EPS Bridge – Q2 vs. Guidance Midpoint
ManpowerGroup | July 2014 * EPS Bridge – Q2 vs. Guidance Midpoint
Slide 5: Consolidated Gross Margin Change
ManpowerGroup | July 2014 * Consolidated Gross Margin Change
Slide 6: Growth in CC % Business Line Gross Profit – Q2 2014
ManpowerGroup | July 2014 * Growth in CC % Business Line Gross Profit – Q2 2014 █ Manpower █ Experis █ ManpowerGroup - Total █ ManpowerGroup Solutions █ Right Management
Slide 7: SG&A Expense Bridge – Q2 YoY
ManpowerGroup | July 2014 * SG&A Expense Bridge – Q2 YoY (in millions of USD) Productivity Gain 13.3% % of Revenue 13.7% % of Revenue
Slide 8: SG&A Expense Bridge – Q2 YTD YoY
ManpowerGroup | July 2014 * SG&A Expense Bridge – Q2 YTD YoY (in millions of USD) Productivity Gain 13.7% % of Revenue 14.2% % of Revenue
Slide 9: Americas Segment Q2 Financial Highlights
ManpowerGroup | July 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 Non-Recurring Items Q2 Financial Highlights 1% 1% Revenue
Slide 10: Americas – Q2 Revenue Growth YoY
ManpowerGroup | July 2014 * Americas – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue
Slide 11: Southern Europe Segment Q2 Financial Highlights
ManpowerGroup | July 2014 * As Reported Excluding PY Restructuring Charges Q2 Financial Highlights 9% 9% Revenue $2.0B 4% CC 4% CC Revenue $2.0B 69% 60% OUP $96M 62% CC 53% CC OUP $96M 180 bps 160 bps OUP Margin 4.9% Southern Europe Segment (37% of Revenue) Included in these amounts is France, which
Slide 12: Southern Europe – Q2 Revenue Growth YoY
ManpowerGroup | July 2014 * Southern Europe – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue (1) On an organic basis, Spain revenue increased 28% (22% in CC). (1)
Slide 13: Northern Europe Segment Q2 Financial Highlights
ManpowerGroup | July 2014 * As Reported Excluding PY Restructuring Charges Q2 Financial Highlights 9% 9% Revenue $1.5B 5% CC 5% CC Revenue $1.5B 39% 9% OUP $46M 34% CC 5% CC OUP $46M 60 bps 0 bps OUP Margin 3.0% Northern Europe Segment (29% of Revenue) Excludes the impact of restructuring charges of
Slide 14: Northern Europe – Q2 Revenue Growth YoY
ManpowerGroup | July 2014 * Northern Europe – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue
Slide 15: APME Segment Q2 Financial Highlights
ManpowerGroup | July 2014 * As Reported Excluding PY Restructuring Charges Q2 Financial Highlights 5% 5% Revenue $594M 2% CC 2% CC Revenue $594M 3% 1% OUP $21M 6% CC 4% CC OUP $21M 20 bps 20 bps OUP Margin 3.5% APME Segment (11% of Revenue) Excludes the impact of restructuring charges of $0.3M in Q2
Slide 16: APME – Q2 Revenue Growth YoY
ManpowerGroup | July 2014 * APME – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue
Slide 17: Right Management Segment Q2 Financial Highlights
ManpowerGroup | July 2014 * Right Management Segment (1% of Revenue) As Reported Excluding PY Restructuring Charges Q2 Financial Highlights 1% 1% Revenue $80M 3% CC 3% CC Revenue $80M 72% 27% OUP $13M 72% CC 27% CC OUP $13M 680 bps 360 bps OUP Margin 16.0% Excludes the impact of restructuring charge
Slide 18: Cash Flow Summary – YTD
ManpowerGroup | July 2014 * Cash Flow Summary – 6 Months YTD
Slide 19: Balance Sheet Highlights
ManpowerGroup | July 2014 * Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt (Cash) 2014
Slide 20: Credit Facilities – June 30, 2014
ManpowerGroup | July 2014 * Credit Facilities – June 30, 2014 (in millions of USD) (1) (2)
Slide 21: Third Quarter Outlook
ManpowerGroup | July 2014 * Third Quarter Outlook Revenue Total Up 5-7% (Up 4-6% CC) Americas Up 4-6% (Up 6-8% CC) Southern Europe Up 5-7% (Up 3-5% CC) Northern Europe Up 10-12% (Up 6-8% CC) APME Flat/Up 2% (Flat/Up 2% CC) Right Management Right Management Flat/Down 2% (Down 2-4% CC) Gross Profit Ma
Slide 22: Where are we on our journey to 4%...
ManpowerGroup | July 2014 * Where are we on our journey to 4%... TTM (Trailing Twelve Months) EBITA margin of 3.4%. 100 basis point gain since 2012 and ahead of our expectations. TTM EBITA of $712M is at an all-time record and TTM EBITA margin is the highest in more than 15 years. Above analysis exc
Slide 23: Highlights
ManpowerGroup | July 2014 * Highlights Strong second quarter execution Positive revenue momentum continued in major geographies Committed to driving profitable growth and strong operating leverage Experis and ManpowerGroup Solutions well positioned to meet increasing client needs Management transiti
Slide 24: Questions
ManpowerGroup | July 2014 * * ManpowerGroup | July 2014 Questions