Manpowergroup · NYSE:MAN
Manpowergroup — Q2 2018 Earnings Presentation
21 slides from Manpowergroup's earnings presentation, Jul 20, 2018
Slide 1: Accelerating Performance in the Human Age: Second Quarter Results
Exhibit 99.2 Accelerating Performance IN THE HUMAN AGE ManpowerGroup Second Quarter Results July 20, 2018
Slide 2: Forward-Looking Statement
ManpowerGroupFORWARD 2018- LOOKINGSecond Quarter STATEMENT Results Global Recruiter Summit This presentation contains statements, including financial projections, that are forward-looking in nature. These statements are based on managements’ current expectations or beliefs, and are subject to known
Slide 3: Consolidated Financial Highlights
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit Consolidated Financial Highlights As Excluding Reported Restructuring Q2 Financial Highlights Costs(1) 9% 9% Revenue $5.7B 4% CC 4% CC 40 bps 40 bps Gross Margin 16.3% 30 bps CC 30 bps CC 7% 9% Operating Pr
Slide 4: EPS Bridge – Q2 vs. Guidance Midpoint
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit EPS Bridge – Q2 vs. Guidance Midpoint -0.02 -0.08 +0.04 +0.02 +0.02 -0.18 $2.37 $2.33 $2.35 $2.17 Q2 Operational Currency Tax Rate WAS Other Expense Reported Restructuring Q2 Reported Guidance Performance (
Slide 5: Consolidated Gross Margin Change
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit Consolidated Gross Margin Change -0.3% 16.7% +0.1% -0.1% -0.1% 16.3% Q2 2017 Staffing/Interim Permanent Right Currency Q2 2018 Recruitment Management July 2018 5 ManpowerGroup
Slide 6: Business Line Gross Profit – Q2 2018
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit Business Line Gross Profit – Q2 2018(1) $923M Growth 4% 8% 3% CC 13% 6% 2% CC 20% 63% 13% 9% CC -8% -10% CC 7% 3% CC █ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total
Slide 7: SG&A Expense Bridge – Q2 YoY
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit SG&A Expense Bridge – Q2 YoY (in millions of USD) +15.3 +13.0 714.4 +27.4 +2.7 699.1 -10.5 683.4 666.5 656.0 Q2 2017 Q2 2017 Q2 2017 Currency Acquisitions Operational Q2 2018 Q2 2018 Q2 2018 Reported Restru
Slide 8: Americas Segment
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit Americas Segment (18% of Revenue) As Excluding Reported Restructuring Q2 Financial Highlights Costs(1) 0% 0% Revenue $1.1B 2% CC 2% CC 1% 11% OUP $57M 1% CC 9% CC 0 bps 60 bps OUP Margin 5.4% (1) Excludes t
Slide 9: Americas – Q2 Revenue Growth YoY
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit Americas – Q2 Revenue Growth YoY % of Segment Average Daily Revenue Revenue Growth - CC -5% US 61% -5% -5% 4% Mexico 13% 9% 10% -19% Argentina 4% 19% 7% 15% Other (1) 22% 15% Revenue Growth Revenue Growth -
Slide 10: Southern Europe Segment
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit Southern Europe Segment (43% of Revenue) As Excluding Reported Restructuring Q2 Financial Highlights Costs(1) 14% 14% Revenue $2.4B 6% CC 6% CC 10% 12% OUP $122M 2% CC 4% CC 20 bps 10 bps OUP Margin 5.0% (1
Slide 11: Southern Europe – Q2 Revenue Growth YoY
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit Southern Europe – Q2 Revenue Growth YoY % of Segment Average Daily Revenue Revenue Growth - CC 12% France 3% 62% 3% 21% 18% Italy 11% 12% 18% 7% Spain(1) 7% 9% 15% 13% Other 9% Revenue Growth Revenue Growth
Slide 12: Northern Europe Segment
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit Northern Europe Segment (25% of Revenue) As Excluding Reported Restructuring Q2 Financial Highlights Costs(1) 9% 9% Revenue $1.4B 2% CC 2% CC 26% 10% OUP $25M 30% CC 5% CC 80 bps 0 bps OUP Margin 1.8% (1) E
Slide 13: Northern Europe – Q2 Revenue Growth YoY
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit Northern Europe – Q2 Revenue Growth YoY % of Segment Average Daily Revenue Revenue Growth - CC UK 9% 30% 3% 2% 8% Germany 21% 0% -2% 7% Nordics 0% 20% 3% 7% 13% Netherlands -1% -1% 12% 8% Belgium 4% 3% 8% O
Slide 14: APME Segment
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit APME Segment (13% of Revenue) As Reported Q2 Financial Highlights 13% Revenue $725M 10% CC 26% OUP $29M 23% CC 50 bps OUP Margin 4.1% July 2018 14 ManpowerGroup
Slide 15: APME – Q2 Revenue Growth YoY
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit APME – Q2 Revenue Growth YoY Average Daily % of Segment Revenue Growth - CC Revenue 5% 31% Japan 3% 3% 8% 22% Australia/NZ 5% 8% 21% 47% Other 17% Revenue Growth Revenue Growth - CC July 2018 15 ManpowerGro
Slide 16: Right Management Segment
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit Right Management Segment (1% of Revenue) As Excluding Reported Restructuring Q2 Financial Highlights Costs(1) 8% 8% Revenue $52M 10% CC 10% CC 23% 3% OUP $10M 21% CC 5% CC 510 bps 100 bps OUP Margin 19.9% (
Slide 17: Cash Flow Summary – Six Months YTD
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit Cash Flow Summary – 6 Months YTD (in millions of USD) 2018 2017 Net Earnings 240 191 Non-cash Provisions and Other 51 92 Change in Operating Assets/Liabilities (115) (135) Capital Expenditures (27) (26) Fre
Slide 18: Balance Sheet Highlights
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit Balance Sheet Highlights Total Debt (in millions of USD) 1,250 1,000 970 1,089 750 855 948 825 Total Debt 500 250 468 418 Net Debt (Cash) 227 259 321 0 -231 125 -250 2014 2015 2016 2017 Q1 Q2 2018 Total Deb
Slide 19: Debt and Credit Facilities – June 30, 2018
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit Debt and Credit Facilities – June 30, 2018 (in millions of USD) Interest Maturity Total Remaining Rate Date Outstanding Available Euro Notes - €500M 1.809% Jun 2026 579 - Euro Notes - €400M 1.913% Sep 2022
Slide 20: Third Quarter Outlook
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit Third Quarter Outlook Revenue Total Up 2-4% (Up 4-6% CC) Americas Down/Up 1% (Up 4-6% CC) Southern Europe Up 2-4% (Up 3-5% CC) Northern Europe Up 1-3% (Up 2-4% CC) APME Up 9-11% (Up 10-12% CC) Right Managem
Slide 21: Key Take Aways
ManpowerGroup 2018 2018 Second Second Quarter Quarter Results Results Global Recruiter Summit Key Take Aways Good progress during the first half of 2018. Solid second quarter results The strength of our global footprint was evidenced by the strong performance throughout Asia Pacific Middle East and