Slide 1: 2010 4th Quarter Manpower Inc.
2010 4 th Quarter Manpower Inc. 2011 February 2
Slide 2: Forward-Looking Statement
Manpower Inc. 2010 4 th Quarter Results February 2011 2 This presentation includes forward-looking statements, including earnings projections which are subject to risks and uncertainties. Actual results might differ materially from those projected in the forward-looking statements. Additional inform
Slide 3: Q4 Highlights: Consolidated Financial Highlights
Manpower Inc. 2010 4 th Quarter Results February 2011 3 42% CC N/A N/A 18% 22% CC 760 bps Operating Loss ($343M) OP Margin (6.6%) Revenue $5.2B Gross Margin 17.4% EPS ($4.29) 30 bps Q4 Highlights Throughout this presentation, the difference between reported variances and Constant Currency (CC) varia
Slide 4: Q4 Non-Recurring Items
Manpower Inc. 2010 4 th Quarter Results February 2011 4 Q4 Non-Recurring Items ($ in millions, except per share amounts) (1) Includes reorganization charges for Jefferson Wells ($6.1M), France ($7.6M) and Right Management ($16.8M). (2) Includes goodwill and intangible asset impairment charges for Je
Slide 5: Consolidated Gross Margin Change
Manpower Inc. 2010 4 th Quarter Results February 2011 5 Consolidated Gross Margin Change
Slide 6: SG&A Expense Sequential Bridge - Q4 vs. Q3
Manpower Inc. 2010 4 th Quarter Results February 2011 6 SG&A Expense Sequential Bridge - Q4 vs. Q3 (in millions of USD)
Slide 7: Americas Segment
Manpower Inc. 2010 4 th Quarter Results February 2011 7 46% CC Americas Segment (22% of Revenue) Q4 Financial Highlights 47% OUP Margin 2.1% 280 bps Revenue $1.1B OUP $24M Operating Unit Profit (OUP) is the measure that we use to evaluate segment performance. OUP is equal to segment revenues less di
Slide 8: Americas - Q4 Revenue Growth YoY
Manpower Inc. 2010 4 th Quarter Results February 2011 8 Americas - Q4 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue 69% 11% 6% 14% (1) On an organic basis, US revenue (including Jefferson Wells) was $563M (+18%). (1)
Slide 9: France Segment
Manpower Inc. 2010 4 th Quarter Results February 2011 9 France Segment (27% of Revenue) 19% CC Q4 Financial Highlights 10% OUP Margin 0.8% 70 bps Revenue $1.4B OUP $12M 19% CC 10% 40 bps Excluding Non-recurring Items As Reported 157% CC 138% 119% CC 101% (1) Excludes the impact of $7.6M of reorganiz
Slide 10: EMEA Segment
Manpower Inc. 2010 4 th Quarter Results February 2011 10 EMEA Segment (38% of Revenue) 19% CC Q4 Financial Highlights 13% OUP Margin 4.1% 160 bps Revenue $2.0B OUP $82M 19% CC 13% 190 bps Excluding Non-recurring Items As Reported 128% CC 116% 95% CC 85% (1) Excludes the impact of the reorganization
Slide 11: EMEA - Q4 Revenue Growth YoY
Manpower Inc. 2010 4 th Quarter Results February 2011 11 EMEA - Q4 Revenue Growth YoY Revenue Growth - CC Revenue Growth
Slide 12: Asia Pacific Segment
Manpower Inc. 2010 4 th Quarter Results February 2011 12 Asia Pacific Segment (11% of Revenue) 16% CC Q4 Financial Highlights 26% OUP Margin 1.7% 10 bps Revenue $588M OUP $10M 16% CC 26% 20 bps Excluding Non-recurring Items As Reported 32% CC 42% 25% CC 34% (1) Excludes the impact of the reorganizat
Slide 13: Asia Pacific - Q4 Revenue Growth YoY
Manpower Inc. 2010 4 th Quarter Results February 2011 13 Asia Pacific - Q4 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue 47% 29% 24%
Slide 14: Right Management Segment
Manpower Inc. 2010 4 th Quarter Results February 2011 14 Right Management Segment (2% of Revenue) 32% CC Q4 Financial Highlights 33% OUP Margin (19%) 1600 bps Revenue $87M OUP ($17M) 32% CC 33% 3540 bps Excluding Non-recurring Items As Reported N/A N/A (1) Excludes the impact of the reorganization c
Slide 15: Cash Flow Summary - Full Year
Manpower Inc. 2010 4 th Quarter Results February 2011 15 Cash Flow Summary - Full Year 2010 2009 Cash from Operations Capital Expenditures (58) (35) Free Cash Flow ($ in millions) Other (28) Change in Cash (242) (26) Change in Debt (270) (227) Effect of Exchange Rate Changes (18) Acquisitions of Bus
Slide 16: Balance Sheet Highlights
Manpower Inc. 2010 4 th Quarter Results February 2011 16 Balance Sheet Highlights Total Debt ($ in millions) Total Debt to Total Capitalization Total Debt Net Debt 2010 2010
Slide 17: Credit Facilities as of December 31, 2010
Manpower Inc. 2010 4 th Quarter Results February 2011 17 (b) (b) Credit Facilities as of December 31, 2010 ($ in millions) (a) (a) This $400M agreement requires, as of December 31, that we comply with a Debt-to-EBITDA ratio of less than 5.25 to 1 and a fixed charge coverage ratio of greater than 1.2
Slide 18: First Quarter Outlook
Manpower Inc. 2010 4 th Quarter Results February 2011 18 First Quarter Outlook Revenue Americas Up 39-41% in constant currency France Up 16-18% in constant currency Up 8-10% in constant currency Asia Pacific Right Management Down 21-23% in constant currency Up 18-20% in constant currency Total Gross
Slide 19: Strategic Priorities
Manpower Inc. 2010 4 th Quarter Results February 2011 19 Manpower Experience • Candidate Experience • Client Experience Digital Strategy • Direct Talent • Direct Office • Direct Time Professional • ICT, Engineering, Finance and Accounting, Healthcare • Go-to-Market Strategy • Enhanced Business Model
Slide 20: Questions?
Manpower Inc. 2010 4 th Quarter Results February 2011 20 Questions? Answers