Slide 1: ManpowerGroup Fourth Quarter Results
January 31, 2023 ManpowerGroup Fourth Quarter Results Exhibit 99.2
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation contains statements, including statements regarding economic uncertainty, financial outlook, labor demand, supply-chain disruptions brought on by the Russia/Ukraine war and other geopolitical uncertainty, the Company’s strategic initiatives and technology
Slide 3: Consolidated Financial Highlights
Consolidated Financial Highlights Excludes the net impact of restructuring costs of $3.6M ($2.7M net of tax), final integration costs from the U.S. Experis acquisition of $2.7M ($2.0M net of tax), and other special items consisting of a loss on sale of our Hungary business of $2.0M ($2.0M net of tax
Slide 4: 2022 Financial Highlights
As Reported As Adjusted 2022 Financial Highlights -4% 5% CC 3% OCC -4% 5% CC 3% OCC Revenue $19.8B 160 bps 160 bps Gross Margin 18.0% 2% 13% CC 4% OCC 10% 22% CC 13% OCC EBITA $619M ($698M as adjusted) 20 bps 10 bps OCC 40 bps 30 bps OCC EBITA Margin 3.1% (3.5% as adjusted) 3% 15% CC 6% OCC 18% 31%
Slide 5: EPS Bridge – Q4 vs. Guidance Midpoint
EPS Bridge – Q4 vs. Guidance Midpoint (1) Amounts of goodwill impairment and other items included on Slide 3.
Slide 6: Business Line Revenue Q4 2022
Experis reported flat organic CC growth as we anniversary significant growth in prior year MSP offering within Talent Solutions had a modest decline in revenues due to a reduction in low margin activity. MSP gross profit had solid growth Business Line Revenue Q4 2022(1) Business line classifications
Slide 7: Consolidated Gross Margin Change
Consolidated Gross Margin Change
Slide 8: Business Line Gross Profit – Q4 2022
Trend Business Line Gross Profit – Q4 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 $876M
Slide 9: SG&A Expense Bridge – Q4 YoY
SG&A Expense Bridge – Q4 YoY (in millions of USD) Q4 2022 special items includes restructuring costs of $3.6M, final integration costs relating to our U.S. Experis acquisition of $2.7M and a loss on sale of our Hungary business of $0.8M recorded in SG&A (an additional $1.2M charge related to cumulat
Slide 10: 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 Q4 Financial Highlights -3% 0% CC -3% 0% CC Reven
Slide 11: Americas – Q4 Revenue Trend
% of Segment Revenue Americas – Q4 Revenue Trend YoY Average Daily Revenue Trend - CC
Slide 12: Southern Europe Segment
As Reported Q4 Financial Highlights -12% -2% OCC Revenue $2.1B -10% 0% OCC OUP $106M 10 bps OUP Margin 5.0% (5.1% as adjusted) Southern Europe Segment (43% of Revenue) (1) (1) Excluding restructuring costs and loss from sale of our Hungary business, adjusted OUP Margin is 5.1%, representing an incre
Slide 13: Southern Europe – Q4 Revenue Trend
Southern Europe – Q4 Revenue Trend YoY % of Segment Revenue Average Daily Revenue Trend OCC CC 2% N/A N/A N/A Impact reflects underlying business performance excluding France Talent Solutions acquisition.
Slide 14: Northern Europe Segment
As Reported Q4 Financial Highlights -18% -5% CC -3% OCC Revenue $973M -45% -34% CC -31% OCC OUP $16M -80 bps OUP Margin 1.6% (1.7% as adjusted) Northern Europe Segment (20% of Revenue) (1) (1) Excluding restructuring costs in the current period, adjusted OUP Margin is 1.7%, representing a decrease o
Slide 15: Northern Europe – Q4 Revenue Trend
Northern Europe – Q4 Revenue Trend YoY % of Segment Revenue Average Daily Revenue Trend - CC (1) (1) Impact reflects business performance after adjusting for loss of revenues due to Russia sale.
Slide 16: APME Segment
As Reported Q4 Financial Highlights -7% 8% CC Revenue $579M 9% 29% CC OUP $23M 60 bps OUP Margin 3.9% (4.0% as adjusted) APME Segment (12% of Revenue) (1) (1) Excluding restructuring costs, adjusted OUP Margin is 4.0%, representing an increase of 70 bps compared to the prior year period.
Slide 17: APME – Q4 Revenue Trend
APME – Q4 Revenue Trend YoY % of Segment Revenue Average Daily Revenue Trend - CC (1)
Slide 18: Cash Flow Summary — Full Year
ManpowerGroup 2022 Fourth Quarter Results Cash Flow Summary — Full Year Full Year (in millions of USD) 2022 2021 Net Earnings 374 382 Non-cash Provisions and Other 189 127 Change in Operating Assets/Liabilities (139) 136 Capital Expenditures (76) (64) Free Cash Flow 348 581 Change in Debt (59) 70 Ac
Slide 19: Balance Sheet Highlights
Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt Net (Cash) (1) Represents adjusted balances. As disclosed in Q2 2022, long term debt temporarily increased by €400M on June 30th when we issued the €400M of Euro notes due 2027 to refinanc
Slide 20: Debt and Credit Facilities – December 31, 2022
Interest Rate Maturity Date Total Outstanding Remaining Available Euro Notes - €500M 1.809% Jun 2026 533 - Euro Notes - €400M 3.514% Jun 2027 424 - Revolving Credit Agreement 5.483% May 2027 - 600 Uncommitted lines and Other Various Various 30 338 Total Debt 987 938 Debt and Credit Facilities – Dece
Slide 21: First Quarter 2023 Outlook
First 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 1.08 for the Euro, 1.22 for the GBP and 0.0074 for JPY. Revenue Total Down 4-8% (Down 3%/Up 1% CC) Americas Down 5-9
Slide 22: Working to Change the World ESG Highlights
Reduced direct emissions (Scope 1 & 2) by 39% – significant progress towards goal of 60% reduction by 2030. Reported to the Carbon Disclosure Project (CDP) for the 11th year, with improved A- scoring higher than industry averages. Transformed almost 200,000 lives to date through Manpower MyPath. Ann
Slide 23: Key Take Aways
Although the environment softened during the fourth quarter resulting in a revenue decline of 1% in constant currency, all brands recorded gross profit growth in constant currency. Gross profit margin of 18.2%, up 100 basis points year over year, reflects improving business mix and the continuation
Slide 24: Appendix
ManpowerGroup 2022 Fourth Quarter Results Appendix January 2023 ManpowerGroup | Fourth Quarter 2022 Results 24
Slide 25: Industry Vertical Composition Based on Revenues – Q4 2022
Industry Vertical Composition Based on Revenues – Q4 2022 Manufacturing, 40.1%