Manpowergroup · NYSE:MAN
Manpowergroup — Q1 2023 Earnings Presentation
23 slides from Manpowergroup's earnings presentation, Apr 20, 2023
Slide 1: ManpowerGroup First Quarter Results
ManpowerGroup First Quarter Results April 20, 2023 Exhibit 99.2
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation contains statements, including statements regarding economic uncertainty, financial outlook, labor demand, geopolitical risk and uncertainty, the Company’s strategic initiatives and technology investments, and the future performance of our brands and busin
Slide 3: Consolidated Financial Highlights
Excludes the net impact of restructuring costs of $6.6M ($5.4M net of tax), while Q1 2022 excludes the net impact of integration costs of $3.7M ($2.9M net of tax) and loss on Russia disposition of $8M. EBITA is a non-GAAP financial measure and is defined herein as Operating Profit before Amortizatio
Slide 4: EPS Bridge – Q1 vs. Guidance Midpoint
EPS Bridge – Q1 vs. Guidance Midpoint ManpowerGroup 2023 First Quarter Results
Slide 5: Business Line Revenue Q1 2023
Experis revenues decreased in the quarter as professional staffing demand softened across key markets Manpower had a modest organic CC revenue decline driven by manufacturing slowdowns in the U.S. and Europe RPO and MSP experienced revenue declines in the quarter as we anniversary significant growth
Slide 6: Consolidated Gross Margin Change
Consolidated Gross Margin Change ManpowerGroup 2023 First Quarter Results
Slide 7: Business Line Gross Profit – Q1 2023
Trend (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 $863M Business Line Gross Profit – Q1 2023(1) ManpowerGroup 2023 First Quarter Results
Slide 8: SG&A Expense Bridge – Q1 YoY
Q1 2023 includes restructuring costs of $6.6M which consists of, $0.9M in the Americas, $0.3M in Southern Europe $2.5M in Northern Europe, $2.5M in APME, and $0.4M in Corporate (1) (15.4% CC) (15.5% CC) (14.6% CC) SG&A Expense Bridge – Q1 YoY (in millions of USD) ManpowerGroup 2023 First Quarter Res
Slide 9: Americas Segment
As Reported As Adjusted Q1 Financial Highlights -10% -6% CC -10% -6% CC Revenue $1.1B -33% -30% CC -35% -32% CC OUP $49M ($50M as adjusted) -150 bps -170 bps OUP Margin 4.3% (4.4% as adjusted) Operating Unit Profit (OUP) is the measure that we use to evaluate segment performance. OUP is equal to seg
Slide 10: Americas – Q1 Revenue Trend YoY
Americas – Q1 Revenue Trend YoY ManpowerGroup 2023 First Quarter Results
Slide 11: Southern Europe Segment
As Reported Q1 Financial Highlights -6% -1% CC -2% OCC Revenue $2.1B -6% -1% CC -3% OCC OUP $90M 0 bps OUP Margin 4.3% Southern Europe Segment (43% of Revenue) Current period excludes the impact of restructuring costs of $0.3M. Excluding restructuring costs, adjusted OUP margin is 4.4%, representing
Slide 12: Southern Europe – Q1 Revenue Trend YoY
Impact reflects underlying business performance excluding France Talent Solutions acquisition. Impact reflects business performance after adjusting for loss of revenues due to Hungary sale. Southern Europe – Q1 Revenue Trend YoY ManpowerGroup 2023 First Quarter Results
Slide 13: Northern Europe Segment
As Reported As Adjusted Q1 Financial Highlights -12% -4% CC -3% OCC -12% -4% CC -3% OCC Revenue $968M 54% 108% CC 113% OCC -17% 4% CC 5% OCC OUP $5M ($8M as adjusted) +20 bps 0 bps OUP Margin 0.5% (0.8% as adjusted) Northern Europe Segment (20% of Revenue) Current period excludes the impact of restr
Slide 14: Northern Europe – Q1 Revenue Trend YoY
(1) Impact reflects business performance after adjusting for loss of revenues due to Russia sale. Northern Europe – Q1 Revenue Trend YoY ManpowerGroup 2023 First Quarter Results
Slide 15: APME Segment
As Reported As Adjusted Q1 Financial Highlights -2% 7% CC -2% 7% CC Revenue $606M 12% 24% CC 25% 38% CC OUP $21M ($24M as adjusted) +40 bps +80 bps OUP Margin 3.5% (3.9% as adjusted) APME Segment (13% of Revenue) Current period excludes the impact of restructuring costs of $2.5M. ManpowerGroup 2023
Slide 16: APME – Q1 Revenue Trend YoY
APME – Q1 Revenue Trend YoY ManpowerGroup 2023 First Quarter Results
Slide 17: Cash Flow Summary – YTD
Cash Flow Summary – YTD ManpowerGroup 2023 First Quarter Results
Slide 18: Balance Sheet Highlights
Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt Net (Cash) Balance Sheet Highlights ManpowerGroup 2023 First Quarter Results
Slide 19: Debt and Credit Facilities – March 31, 2023
Interest Rate Maturity Date Total Outstanding Remaining Available Euro Notes - €500M 1.809% Jun 2026 540 - Euro Notes - €400M 3.514% Jun 2027 430 - Revolving Credit Agreement 5.927% May 2027 - 600 Uncommitted lines and Other Various Various 19 331 Total Debt 989 931 (3) (1)(2) (4) (2) Debt and Credi
Slide 20: Second Quarter 2023 Outlook
EBITA is a non-GAAP financial measure and is defined herein as Operating Profit before Amortization of Intangible Assets. Estimates are assuming FX rates of 1.092 for the Euro, 1.244 for the GBP and 0.0075 for JPY. Revenue Total Down 2-6% (Down 1-5% CC) Americas Down 8-12% (Down 4-8% CC) Southern Eu
Slide 21: Key Take Aways
Q1 results reflect a challenging operating environment across the U.S. and Europe, partly offset by strength in APME and Latin America. Gross profit margin of 18.2%, up 80 basis points year over year, reflects margin discipline and improved business mix. We continue to execute our Diversification, D
Slide 22: Appendix
Appendix ManpowerGroup | First Quarter 2023 Re April 2023 | 22
Slide 23: Industry Vertical Composition Based on Revenues – Q1 2023
Industry Vertical Composition Based on Revenues – Q1 2023 ManpowerGroup 2023 First Quarter Results