Slide 1: Manpower Inc. 2005 1st Quarter Results
Manpower Inc. 2005 1st Quarter Results April 19, 2005 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 statemen
Slide 2: Consolidated Financial Highlights: Q1 Highlights
Consolidated Financial Highlights Q1 Highlights 13% 9% CC Revenue $3.8B 40 bps Gross Margin 18.1% 11% 6% CC OUP Profit $63M No Change OUP Profit Margin 1.7% 9%* 6% CC* EPS $ .35 Throughout this presentation, the difference between reported variances and Constant Currency (CC) variances represents th
Slide 3: Gross Profit Margin Change
Consolidated Financial Highlights Gross Profit Margin Change 19.0% 18.0% 17.0% 16.0% 15.0% 18.49% - 0.24% - 0.22% - 0.11% - 0.08% + 0.11% + 0.19% 18.14% Q1 2004 EMEA France Japan Jefferson Mix/ Perm Q1 2005 Wells Other Placement Staffing
Slide 4: Consolidated Financial Highlights
Consolidated Financial Highlights We made investments in the first quarter as anticipated: - 70 new offices - 200+ permanent recruiters Expense and efficiency initiatives progressing and having positive impacts. Overall market is still optimistic, however, customers and prospects are continuing to b
Slide 5: United States Segment Q1 Financial Highlights
United States Segment Q1 Financial Highlights 0.3% Revenue $476M 75% OUP $5M 40 bps OUP Margin 1.0% 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.
Slide 6: France Segment Q1 Financial Highlights
France Segment Q1 Financial Highlights 10% $1.2B 5% CC Revenue 4% 9% CC OUP $28M 30 bps OUP Margin 2.2%
Slide 7: EMEA Segment Q1 Financial Highlights
EMEA Segment Q1 Financial Highlights 17% 12% CC Revenue $1.3B 9% 4% CC OUP $15M 10 bps OUP Margin 1.1%
Slide 8: EMEA Segment Revenue Growth by Country
EMEA Segment % of Segment Revenue Q1 Revenue Growth YoY 20% UK - Manpower 11% 8% 17% Nordics 15% 7% 16% Italy 22% 16% 12% Elan 40% 35% 7% Germany 14% 9% 7% Spain 17% 12% 6% Holland 15% 9% 15% Other 10% 3% Revenue Growth Revenue Growth - CC
Slide 9: Jefferson Wells Segment Q1 Financial Highlights
Jefferson Wells Segment Q1 Financial Highlights 84% Revenue $93M 300% OUP $8M 470 bps OUP Margin 8.7%
Slide 10: Jefferson Wells Revenue Trend
Jefferson Wells – Revenue Trend 4 Large Clients Balance of Business $111M 80 $103M 83 $93M Q3 04 Q4 04 Q1 05 4 large clients account for the decline in revenues from Q3-04 peak. 2 of the 4 accounts were not SOX related, rather the projects were completed as planned.
Slide 11: Jefferson Wells Client Mix
Jefferson Wells – Client Mix 16% 28% 56% 1,300 clients Sox only clients Clients with no SOX work Clients with SOX and Non-SOX engagements Client base nearly doubled in 2004 from 700 in 2003 to 1,300 in 2004. 167 new clients were added in the first quarter of 2005. Strong blue chip client base, servi
Slide 12: Jefferson Wells Client Mix: Clients Over $1M
Jefferson Wells—Client Mix Number of Clients Over $1M 8 31 7 2003 2004 No SOX Mix SOX only Most large accounts are using a mix of SOX and other service offerings. Top 20 clients, on average, used 7 different service offerings and had 213 separate engagements in 2004.
Slide 13: Jefferson Wells Future Outlook
Jefferson Wells – Future Outlook Jefferson Wells’ market position is strong and future growth prospects are solid. Pipeline of sales opportunities are currently at record levels. Transitioning contractors to full-time staff to support future growth. Retention program implemented to retain highly ski
Slide 14: Right Management Segment Q1 Financial Highlights
Right Management Segment Q1 Financial Highlights 2.2% $104M 0.3% CC Revenue 8% OUP $10M 5% CC 40 bps OUP Margin 9.4%
Slide 15: Other Operations Segment Q1 Financial Highlights
Other Operations Segment Q1 Financial Highlights 18% $506M 15% CC Revenue 18% $13M OUP 20% CC 110 bps OUP Margin 2.5%
Slide 16: Other Operations Revenue Growth by Country
Other Operations Segment % of Segment Revenue Q1 Revenue Growth YoY 11% 43% Japan 8% 13% 18% Australia/NZ 11% Mexico 18% 12% 20% 35% 27% Other 29% Revenue Growth Revenue Growth - CC
Slide 17: Financial Highlights
Financial Highlights
Slide 18: Balance Sheet Highlights – Q1
Balance Sheet Highlights – Q1 Total Debt $ in millions 1000 800 600 400 200 0 2002 2003 2004 Q1 2005 Total Debt to Total Capitalization Percent 60% 50% 40% 30% 20% 10% 0 2002 2003 2004 Q1 2005 45% 39% 29% 22% Net Debt Total Debt
Slide 19: Cash Flow Summary - Q1
Cash Flow Summary - Q1 (in millions) 2005 2004 Cash from Operations $86 $27 Capital Expenditures (19) (12) Free Cash Flow 67 15 Share Repurchases * (47) - Change in Debt (145) 13 Other (10) (45) Decrease in Cash $(135) $(17) * 1,065,000 shares
Slide 20: Second Quarter Outlook
Second Quarter Outlook Revenue U.S. Up 1-3% France Up 11-14% (Up 3-6% CC) EMEA Up 19-21% (Up 11-13% CC) Jefferson Wells Up 15-20% Right Down 11-13% (Down 13-15% CC) Other Up 17-19% (Up 12-14% CC) Total Up 12-14% (Up 6-8% CC) Gross Profit Margin 18.1 - 18.3% Operating Profit Margin 2.5 - 2.7% Tax Rat
Slide 21: Manpower Inc. 2005 1st Quarter Results: Questions
Manpower Inc. 2005 1st Quarter Results April 19, 2005 Questions