Slide 1: Manpower Inc. 2008 4th Quarter Results
1 MANPOWER INC. 2008 4 th QUARTER RESULTS FEBRUARY 3, Exhibit 99.2
Slide 2: Forward Looking Statement
2 Forward Looking Statement This presentation includes forward-looking statements which are subject to risks and uncertainties. Actual results might differ materially from those projected in the forward-looking statements. Forward-looking statements can be identified by words such as “expect,” “plan
Slide 3: Q4 Highlights: Consolidated Financial Highlights
3 Throughout this presentation, the difference between reported variances and Constant Currency (CC) variances represents the impact of currency on our financial results. Constant Currency is further explained on our Web site. (1) Excludes non-recurring items for 2008 and 2007 as set forth on page 4
Slide 4: Q4 Non-recurring Items
4 ($ in millions, except per share amounts) Q4 Non-recurring Items
Slide 5: Full Year Non-recurring Items
5 ($ in millions, except per share amounts) Full Year Non-recurring Items
Slide 6: Impact of Non-recurring Items on Consolidated Gross Profit Margin
6 Impact of Non-recurring Items = + 1.14% Consolidated Gross Profit Margin Change
Slide 7: United States Segment Q4 Financial Highlights
7 Excluding Non -recurring Items Q4 Financial Highlights OUP Margin - 0.4% Revenue $463M OUP $(2M) 5% bps N/A As Reported 5% bps N/A (1) 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
Slide 8: France Segment Q4 Financial Highlights
8 Q4 Financial Highlights OUP Margin 8.1% Revenue $1.4B OUP $109M 28% 21% CC bps 33% 28% CC (1) Excludes the impact of the business tax refund of $48.2M, the 2005 payroll tax adjustment of $14.5M and reorganization charges of $2.7M in 2008 (net favorable impact $60.0M) and the payroll tax change of
Slide 9: Other EMEA Segment Q4 Financial Highlights
9 Excluding Non -recurring Items Q4 Financial Highlights OUP Margin 2.6% Revenue $1.6B OUP $40M 19% 4% CC bps 32% 20% CC As Reported 19% 4% CC bps 55% 46% CC (2) (1) (1) The results above include the results of Vitae, which was acquired in April 2008. On an organic basis, revenue decreased 21% in US
Slide 10: Other EMEA Q4 Revenue Growth YoY
10 Revenue Growth - CC Revenue Growth % of Segment Revenue 18% 18% 13% 11% 11% 5% 18% (1) (1) The Netherlands results include the results of Vitae, which was acquired in April 2008. On an organic basis, revenue decreased 14% in USD (6% in CC). 6% Other EMEA - Q4 Revenue Growth YoY
Slide 11: Italy Segment Q4 Financial Highlights
11 Q4 Financial Highlights OUP Margin 8.1% Revenue $301M OUP $24M 26% 18% CC bps 26% 18% CC (1) Excludes the impact of the reorganization charges of $0.6M in 2008. As Reported 26% 18% CC bps 28% 21% CC (1) Excluding Non -recurring Items Italy Segment (7% of Revenue)
Slide 12: Jefferson Wells Segment Q4 Financial Highlights
12 Excluding Non -recurring Items Q4 Financial Highlights OUP Margin -21.6% Revenue $64M OUP $(14M) 22% bps N/A As Reported 22% 1,480 bps N/A (1) (1) Excludes the impact of the reorganization charges of $7.8M in 2008 and $4.0M in 2007. Jefferson Wells Segment (1% of Revenue)
Slide 13: Right Management Segment Q4 Financial Highlights
13 Q4 Financial Highlights OUP Margin 13.8% Revenue $123M OUP $17M 10% 20% CC bps 58% 68% CC (1) Excludes the impact of the reorganization charges of $1.5M in 2008. As Reported 10% 20% CC bps 45% 50% CC (1) Excluding Non -recurring Items Right Management Segment (3% of Revenue)
Slide 14: Other Operations Segment Q4 Financial Highlights
14 (1) Excludes the impact of the reorganization charges of $1.3M in 2008. Excluding Non -recurring Items Q4 Financial Highlights OUP Margin 0.3% Revenue $710M OUP $2M 2% 1% CC bps 86% 86% CC As Reported 2% 1% CC bps 91% 92% CC (1) Other Operations Segment (16% of Revenue)
Slide 15: Other Operations Q4 Revenue Growth YoY
15 Revenue Growth - CC Revenue Growth % of Segment Revenue 40% 12% 10% 38% Other Operations - Q4 Revenue Growth YoY
Slide 16: Financial Highlights
16 Financial Highlights
Slide 17: Cash Flow Summary - Full Year
17 Other (86) Change in Cash (150) * 2,231,610 shares in 2008 and 6,147,400 shares in 2007. $11.5M of cash paid in 2008 was for shares repurchased in 2007. Cash from Operations Capital Expenditures (93) (92) Free Cash Flow Share Repurchases * (125) (419) Change in Debt (242) ($ in millions) Proceeds
Slide 18: Balance Sheet Highlights
18 Total Debt ($ in millions) Total Debt to Total Capitalization Total Debt Net Debt Balance Sheet Highlights
Slide 19: Revolving Credit Agreement and Financing Details
19 (a) (b) (a) (b) $625M multi-currency Revolving Credit Agreement provided by 17 banks. No lender represents more than 10% of the total amount. As of December 31, 2008, there was a €100M borrowing under the Revolving Credit Agreement which has been swapped to a fixed rate of 5.71% until July 2010.
Slide 20: Full Year 2008 Variance and Non-Recurring Items Impacting EPS
Variance 2008 2007 $ cc Revenue $21.6B $20.5B 5% 1% EPS $2.75 $5.73 52% -57% EPS - Excluding Non-Recurring Items $4.75 $4.89 -3% -10% Free Cash Flow $699M $340M | 105% Non-Recurring Items impacting EPS: Goodwill and intangible asset impairment - $1.94 - French business tax refund +$ 36 - French payr
Slide 21: Questions?
Questions? Answers February 3, Manpower Inc. 2008 4 th Quarter Results