Manpowergroup · NYSE:MAN
Manpowergroup — Q2 2021 Earnings Presentation
22 slides from Manpowergroup's earnings presentation, Jul 20, 2021
Slide 1: ManpowerGroup Second Quarter Results
July 20, 2021 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 global recovery, financial outlook, the Company’s strategic initiatives and technology investments and its positioning for future growth, as well the potential impacts of the COV
Slide 3: Q2 Consolidated Financial Highlights
As Reported As Adjusted(1) Q2 Financial Highlights 41% 41% Revenue $5.3B 31% CC 31% CC 90 bps 90 bps Gross Margin 16.3% 440% 645% Operating Profit $170M 416% CC 593% CC 450 bps 260 bps OP Margin 3.2% NM(2) NM(2) EPS $2.02 Consolidated Financial Highlights Excludes the impact of prior year items of $
Slide 4: EPS Bridge – Q2 vs. Guidance Midpoint
EPS Bridge – Q2 vs. Guidance Midpoint
Slide 5: Consolidated Gross Margin Change
Consolidated Gross Margin Change
Slide 6: Trend Business Line Gross Profit – Q2 2021
Trend Business Line Gross Profit – Q2 2021(1) (1) Business line classifications can vary by entity and are subject to change as service requirements change. █ Manpower █ Experis █ Talent Solutions █ ManpowerGroup – Total
Slide 7: SG&A Expense Bridge – Q2 YoY
SG&A Expense Bridge – Q2 YoY (in millions of USD) This was favorably impacted 10 bps due to the effect of currency exchange rates on our business mix. In constant currency, SG&A was 13.2% of Revenue.
Slide 8: Americas Segment (20% of Revenue)
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 (20% of Revenue) As Reported As Adjusted(1) Q2 Financial Highlights 25% 25% Revenue $1.0B
Slide 9: Americas – Q2 Revenue Trend YoY
Revenue Trend - CC Revenue Trend % of Segment Revenue Americas – Q2 Revenue Trend YoY Average Daily Revenue Trend - CC On an organic basis, revenue for the US increased 21% and ADR increased 21%. (1)
Slide 10: Southern Europe Segment (46% of Revenue)
Southern Europe Segment (46% of Revenue) Variances are not meaningful. As Reported Q2 Financial Highlights 65% Revenue $2.4B 51% CC NM(1) OUP $115M 400 bps OUP Margin 4.8%
Slide 11: Southern Europe – Q2 Revenue Trend YoY
Southern Europe – Q2 Revenue Trend YoY Revenue Trend - CC Revenue Trend % of Segment Revenue Average Daily Revenue Trend - CC On an organic basis revenue for Southern Europe Other increased 37% or 26% in constant currency. (1)
Slide 12: Northern Europe Segment (22% of Revenue)
Northern Europe Segment (22% of Revenue) Variances are not meaningful. As Reported Q2 Financial Highlights 38% Revenue $1.2B 23% CC NM(1) OUP $18M 150 bps OUP Margin 1.5%
Slide 13: Northern Europe – Q2 Revenue Trend YoY
Northern Europe – Q2 Revenue Trend YoY Revenue Trend - CC Revenue Trend % of Segment Revenue Average Daily Revenue Trend - CC
Slide 14: APME Segment (12% of Revenue)
APME Segment (12% of Revenue) As Reported Q2 Financial Highlights 9% Revenue $620M 6% CC 25% OUP $22M 23% CC 50 bps OUP Margin 3.6%
Slide 15: APME – Q2 Revenue Trend YoY
APME – Q2 Revenue Trend YoY Revenue Trend - CC Revenue Trend % of Segment Revenue Average Daily Revenue Trend - CC (1)
Slide 16: Cash Flow Summary – Months YTD
Cash Flow Summary – 6 Months YTD
Slide 17: Balance Sheet Highlights
Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt Net (Cash)
Slide 18: Debt and Credit Facilities – June 30, 2021
Debt and Credit Facilities – June 30, 2021 (in millions of USD) (3) (1)(2) 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, in addition to other customary restrictive coven
Slide 19: Third Quarter 2021 Outlook
Third Quarter 2021 Outlook Revenue Total Up 14-18% (12-16% CC) Americas Up 9-13% (8-12% CC) Southern Europe Up 14-18% (12-16% CC) Northern Europe Up 28-32% (23-27% CC) APME Up 2-6% (1-5% CC) Gross Profit Margin 15.9 – 16.1% Operating Profit Margin 3.0 – 3.2% Tax Rate 33.0% EPS $1.86 – $1.94 (favorab
Slide 20: Key Take Aways
Our second quarter results reflect an improving global economic environment with revenue growth of 31% in constant currency Our Talent Solutions RPO and MSP businesses have again been recognized as global leaders in the Everest Group PEAK Matrix Assessment Our PowerSuite technology is advancing at s
Slide 21: Appendix
Appendix ‘April 20, 2021 ‘ManpowerGroup | First Quarter 2021 Results 2
Slide 22: Industry Vertical Composition – Q2 2021
Industry Vertical Composition – Q2 2021 Manufacturing, 43.0%