Manpowergroup · NYSE:MAN
Manpowergroup — Q1 2018 Earnings Presentation
21 slides from Manpowergroup's earnings presentation, Apr 20, 2018
Slide 1: ManpowerGroup First Quarter Results
ManpowerGroup First Quarter Results April 20, 2018 Accelerating Performance IN THE HUMAN AGE Exhibit 99.2
Slide 2: Forward-Looking Statement
Global Recruiter Summit ManpowerGroup 2 ManpowerGroup 2018 First Quarter Results FORWARD-LOOKING STATEMENT April 2018 This presentation contains statements, including financial projections, that are forward-looking in nature. These statements are based on managements’ current expectations or beliefs
Slide 3: Consolidated Financial Highlights
Global Recruiter Summit ManpowerGroup 3 ManpowerGroup 2018 First Quarter Results As Reported Excluding Restructuring Costs(1) Q1 Financial Highlights 16% 16% Revenue $5.5B 5% CC 5% CC 60 bps 40 bps 60 bps 40 bps Gross Margin 16.0% 20% 17% Operating Profit $154M ($178M excluding restructuring costs)
Slide 4: EPS Bridge – Q1 vs. Guidance Midpoint
Global Recruiter Summit ManpowerGroup 4 ManpowerGroup 2018 First Quarter Results owerGroup 2018 First Quarter Result EPS Bridge – Q1 vs. Guidance Midpoint April 2018 $1.72 $1.45 $1.64 $1.45 +0.09 +0.02 -0.03 -0.27 Q1 Guidance Midpoint Operational Performance Currency Other Expense Reported Excluding
Slide 5: Consolidated Gross Margin Change
Global Recruiter Summit ManpowerGroup 5 ManpowerGroup 2018 First Quarter Results owerGroup 2018 First Quarter Result Consolidated Gross Margin Change April 2018 16.6% 16.0% Q1 2017 Staffing/Interim Permanent Recruitment Right Management Currency Acquisitions Q1 2018 -0.5% -0.1% -0.2% +0.1% +0.1%
Slide 6: Business Line Gross Profit – Q1 2018
Global Recruiter Summit ManpowerGroup 6 ManpowerGroup 2018 First Quarter Results 15% 4% CC 7% 0% CC 16% 9% CC -14% -17% CC 12% 3% CC 62% 20% 14% 4% $885M Growth █ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total owerGroup 2018 First Quarter Result Business Line
Slide 7: SG&A Expense Bridge – Q1 YoY
Global Recruiter Summit ManpowerGroup 7 ManpowerGroup 2018 First Quarter Results owerGroup 2018 First Quarter Result SG&A Expense Bridge – Q1 YoY (in millions of USD) (1) This was favorably impacted 20 bps due to the effect of currency exchange rates on our business mix. In constant currency, SG&A e
Slide 8: Americas Segment (18% of Revenue)
Global Recruiter Summit ManpowerGroup 8 ManpowerGroup 2018 First Quarter Results As Reported Excluding Restructuring Costs(1) Q1 Financial Highlights 0% 0% Revenue $1.0B 1% CC 1% CC 11% 12% OUP $43M 11% CC 12% CC 40 bps 40 bps OUP Margin 4.2% Operating Unit Profit (OUP) is the measure that we use to
Slide 9: Americas – Q1 Revenue Growth YoY
Global Recruiter Summit ManpowerGroup 9 ManpowerGroup 2018 First Quarter Results -7% 20% -9% 12% -7% 11% 14% 10% US Mexico Argentina Other 60% 14% 4% 22% -6% 8% 7% Revenue Growth - CC Revenue Growth % of Segment Revenue owerGroup 2018 First Quarter Result Americas – Q1 Revenue Growth YoY April 2018
Slide 10: Southern Europe Segment (42% of Revenue)
Global Recruiter Summit ManpowerGroup 10 ManpowerGroup 2018 First Quarter Results owerGroup 2018 First Quarter Result Southern Europe Segment (42% of Revenue) April 2018 As Reported Excluding Restructuring Costs(1) Q1 Financial Highlights 28% 28% Revenue $2.3B 11% CC 11% CC 20% 24% OUP $98M 5% CC 8%
Slide 11: Southern Europe – Q1 Revenue Growth YoY
Global Recruiter Summit ManpowerGroup 11 ManpowerGroup 2018 First Quarter Results 25% 40% 35% 23% 9% 22% 17% 10% France Italy Spain Other 62% 18% 7% 13% 9% 23% 20% owerGroup 2018 First Quarter Result Southern Europe – Q1 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue (1)
Slide 12: Northern Europe Segment (26% of Revenue)
Global Recruiter Summit ManpowerGroup 12 ManpowerGroup 2018 First Quarter Results As Reported Excluding Restructuring Costs(1) Q1 Financial Highlights 14% 14% Revenue $1.4B 1% CC 1% CC 41% 7% OUP $17M 26% CC 6% CC 20 bps 20 bps OUP Margin 1.2% owerGroup 2018 First Quarter Result Northern Europe Segm
Slide 13: Northern Europe – Q1 Revenue Growth YoY
Global Recruiter Summit ManpowerGroup 13 ManpowerGroup 2018 First Quarter Results 11% 17% 9% 20% 19% 22% -1% 1% 0% 4% 3% 8% UK Germany Nordics Netherlands Belgium Other 30% 21% 19% 14% 8% 8% 0% 4% 5% 5% 4% owerGroup 2018 First Quarter Result Northern Europe – Q1 Revenue Growth YoY Revenue Growth - C
Slide 14: APME Segment (13% of Revenue)
Global Recruiter Summit ManpowerGroup 14 ManpowerGroup 2018 First Quarter Results owerGroup 2018 First Quarter Result APME Segment (13% of Revenue) April 2018 (1) Variances exclude the impact of restructuring costs of $1.4M in Q1 2017. As Reported Excluding Restructuring Costs(1) Q1 Financial Highli
Slide 15: APME – Q1 Revenue Growth YoY
Global Recruiter Summit ManpowerGroup 15 ManpowerGroup 2018 First Quarter Results 7% 4% 25% 2% 1% 18% Japan Australia/NZ Other 32% 22% 46% 5% 7% owerGroup 2018 First Quarter Result APME – Q1 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue April 2018 Average Daily Revenue G
Slide 16: Right Management Segment (1% of Revenue)
Global Recruiter Summit ManpowerGroup 16 ManpowerGroup 2018 First Quarter Results As Reported Excluding Restructuring Costs(1) Q1 Financial Highlights 11% 11% Revenue $50M 15% CC 15% CC 27% 21% OUP $6M 29% CC 23% CC 290 bps 190 bps OUP Margin 12.9% owerGroup 2018 First Quarter Result Right Managemen
Slide 17: Cash Flow Summary – Q1
Global Recruiter Summit ManpowerGroup 17 ManpowerGroup 2018 First Quarter Results owerGroup 2018 First Quarter Result Cash Flow Summary – Q1 April 2018 (in millions of USD) 2018 2017 Net Earnings 97 74 Non-cash Provisions and Other 22 47 Change in Operating Assets/Liabilities (177) 70 Capital Expend
Slide 18: Balance Sheet Highlights
Global Recruiter Summit ManpowerGroup 18 ManpowerGroup 2018 First Quarter Results owerGroup 2018 First Quarter Result Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt (Cash) April 2018 14% 24% 25% 25% 25% 0% 10% 20% 30% 2014 2015 2016 20
Slide 19: Debt and Credit Facilities – March 31, 2018
Global Recruiter Summit ManpowerGroup 19 ManpowerGroup 2018 First Quarter Results Interest Rate Maturity Date Total Outstanding Remaining Available Euro Notes - €350M 4.505% Jun 2018 431 - Euro Notes - €400M 1.913% Sep 2022 491 - Revolving Credit Agreement 2.88% Sep 2020 - 599 Uncommitted lines and
Slide 20: Second Quarter Outlook
Global Recruiter Summit ManpowerGroup 20 ManpowerGroup 2018 First Quarter Results owerGroup 2018 First Quarter Result Second Quarter Outlook Revenue Total Up 13-15% (Up 5-7% CC) Americas Flat/Up 2% (Up 1-3% CC) Southern Europe Up 20-22% (Up 8-10% CC) Northern Europe Up 14-16% (Up 3-5% CC) APME Up 11
Slide 21: Key Take Aways
Global Recruiter Summit ManpowerGroup 21 ManpowerGroup 2018 First Quarter Results Strong start to the year, with good top line growth and bottom line performance. Global economy shows favorable trends and stronger labor markets. In this environment, access to human capital is key, and we are very we