Manpowergroup · NYSE:MAN
Manpowergroup — Q2 2022 Earnings Presentation
23 slides from Manpowergroup's earnings presentation, Jul 19, 2022
Slide 1: ManpowerGroup Second Quarter Results
July 19, 2022 ManpowerGroup Second Quarter Results Exhibit 99.2
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation contains statements, including statements regarding economic uncertainty, the Russia-Ukraine war and other geopolitical uncertainty, financial and labor outlook, the Company’s strategic initiatives and technology investments, the positioning for future gro
Slide 3: Consolidated Financial Highlights
Consolidated Financial Highlights Excludes the net impact of integration costs of $2.7M ($2.1M net of tax). EBITA is a non-GAAP financial measure and is defined herein as Operating Profit before Amortization of Intangible Assets. As Reported As Adjusted Q2 Financial Highlights -4% 6% CC 3% OCC -4% 6
Slide 4: EPS Bridge – Q2 vs. Guidance Midpoint
EPS Bridge – Q2 vs. Guidance Midpoint
Slide 5: Business Line Revenue Q2 2022
Business Line Revenue Q2 2022(1) Business line classifications can vary by entity and are subject to change as service requirements change. Experis continues strong trends, led by the U.S. where the acquisition integration is proceeding well Talent Solutions posting record revenue levels in market-l
Slide 6: Consolidated Gross Margin Change
Consolidated Gross Margin Change
Slide 7: Business Line Gross Profit – Q2 2022
Trend Business Line Gross Profit – Q2 2022(1) (1) Business line classifications can vary by entity and are subject to change as service requirements change. █ Manpower █ Experis █ Talent Solutions █ ManpowerGroup – Total Total Gross Profit $921M
Slide 8: SG&A Expense Bridge – Q2 YoY
SG&A Expense Bridge – Q2 YoY (in millions of USD) Reported and as adjusted ratios are unfavorably impacted 20 bps due to the effect of currency exchange rates on our business mix. In constant currency, SG&A reported and as adjusted are 14.4% and 14.3% of revenue, respectively. (2)
Slide 9: Americas Segment
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. Americas Segment (25% of Revenue) As Reported As Adjusted(1) Q2 Financial Highlights 21% 23% CC 4% OCC 21%
Slide 10: Americas – Q2 Revenue Trend
% of Segment Revenue Americas – Q2 Revenue Trend YoY Average Daily Revenue Trend OCC 12% CC (1) Impact reflects underlying business performance excluding U.S. Experis acquisition. (1)
Slide 11: Southern Europe Segment
As Reported Q2 Financial Highlights -9% Revenue $2.2B 2% CC -3% OUP $112M 9% CC 30 bps OUP Margin 5.1% Southern Europe Segment (43% of Revenue)
Slide 12: Southern Europe – Q2 Revenue Trend
Southern Europe – Q2 Revenue Trend YoY Revenue Trend - CC Revenue Trend % of Segment Revenue Average Daily Revenue Trend - CC
Slide 13: Northern Europe Segment
As Reported Q2 Financial Highlights -14% Revenue $1.0B -2% CC 0% OCC -39% OUP $11M -30% CC -26% OCC -40 bps OUP Margin 1.1% Northern Europe Segment (20% of Revenue)
Slide 14: Northern Europe – Q2 Revenue Trend
Northern Europe – Q2 Revenue Trend YoY % of Segment Revenue Average Daily Revenue Trend - CC (1) (1) Impact reflects underlying business performance after adjusting for loss of revenues due to Russia sale.
Slide 15: APME Segment
As Reported Q2 Financial Highlights -3% Revenue $604M 10% CC 1% OUP $23M 16% CC 10 bps 20 bps CC OUP Margin 3.7% APME Segment (12% of Revenue)
Slide 16: APME – Q2 Revenue Trend
APME – Q2 Revenue Trend YoY Revenue Trend - CC Revenue Trend % of Segment Revenue Average Daily Revenue Trend - CC (1)
Slide 17: Cash Flow Summary – Months YTD
Cash Flow Summary – 6 Months YTD
Slide 18: Balance Sheet Highlights
Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt Net (Cash) (1) Long term debt was temporarily increased by €400M on June 30th when we issued the €400M of Euro notes due 2027 to refinance the €400M of Euro notes scheduled to mature in Se
Slide 19: Debt and Credit Facilities – June 30, 2022
Debt and Credit Facilities – June 30, 2022 (in millions of USD) (4) (2)(3) €400M Euro note was repaid at par in July 2022 The $600M agreement requires that we comply with a Leverage Ratio (net 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, i
Slide 20: Third Quarter 2022 Outlook
Third Quarter 2022 Outlook EBITA is a non-GAAP financial measure and is defined herein as Operating Profit before Amortization of Intangible Assets. Estimates do not include third quarter impact of acquisition integration costs of approximately $4M to $6M. Revenue Total Down 2-6% (Up 4-8% CC) (Up 1-
Slide 21: Key Take Aways
Our second quarter results reflect strong demand for our services across brands with revenue growth of 6% in constant currency Gross profit margin of 18.2% reflects good pricing environment, strong permanent recruitment activity and improved business mix Our Diversification, Digitization and Innovat
Slide 22: Appendix
SS ee ManpowerGroup 2022 Second Quarter Results Appendix July 2022 ManpowerGroup | Second Quarter 2022 Results 2
Slide 23: Industry Vertical Composition – Q2 2022
Industry Vertical Composition – Q2 2022 Manufacturing, 41.2%