Manpowergroup · NYSE:MAN
Manpowergroup — Q1 2021 Earnings Presentation
22 slides from Manpowergroup's earnings presentation, Apr 20, 2021
Slide 1: ManpowerGroup First Quarter Results
April 20, 2021 ManpowerGroup First 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: Consolidated Financial Highlights
Consolidated Financial Highlights Excludes the impact of prior year items consisting of restructuring costs of $48.2M ($40.2 net of tax) and the impact of a non-cash pension settlement expense of $10.2M ($6.3 net of tax) recorded in interest and other expenses below operating profit. Variances are n
Slide 4: EPS Bridge – Q1 vs. Guidance Midpoint
EPS Bridge – Q1 vs. Guidance Midpoint
Slide 5: Consolidated Gross Margin Change
Consolidated Gross Margin Change
Slide 6: Trend Business Line Gross Profit – Q1 2021
Trend Business Line Gross Profit – Q1 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 – Q1 YoY
SG&A Expense Bridge – Q1 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 13.7% 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) Excludes the prior year impact of restructuring costs of $12.8M ($9.9M ne
Slide 9: Americas – Q1 Revenue Trend YoY
% of Segment Revenue Americas – Q1 Revenue Trend YoY Average Daily Revenue Trend - CC On an organic basis, revenue for the US decreased 1% and ADR increased 1%. (1)
Slide 10: Southern Europe Segment (44% of Revenue)
Southern Europe Segment (44% of Revenue) Excludes the prior year impact of restructuring costs of $13.1M ($10.3 net of tax).
Slide 11: Southern Europe – Q1 Revenue Trend YoY
Southern Europe – Q1 Revenue Trend YoY % of Segment Revenue Average Daily Revenue Trend - CC On an organic basis revenue for Southern Europe Other increased 10% or 3% in constant currency. (1)
Slide 12: Northern Europe Segment (23% of Revenue)
Northern Europe Segment (23% of Revenue) Excludes the prior year impact of restructuring costs of $19.5M ($18.1 net of tax). Variances are not meaningful.
Slide 13: Northern Europe – Q1 Revenue Trend YoY
Northern Europe – Q1 Revenue Trend YoY % of Segment Revenue Average Daily Revenue Trend - CC
Slide 14: APME Segment (13% of Revenue)
APME Segment (13% of Revenue) Excludes the prior year impact of restructuring costs of $2.6M ($1.8 net of tax).
Slide 15: APME – Q1 Revenue Trend YoY
APME – Q1 Revenue Trend YoY % of Segment Revenue Average Daily Revenue Trend - CC (1)
Slide 16: Cash Flow Summary — Q1
Cash Flow Summary — Q1 (in millions of USD) Net Earnings Non-cash Provisions and Other Change in Operating Assets/Liabilities Capital Expenditures Free Cash Flow Change in Debt Acquisitions of Businesses, including Contingent Considerations, net of cash acquired Other Equity Transactions Repurchases
Slide 17: Balance Sheet Highlights
Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Net (Cash)
Slide 18: Debt and Credit Facilities – March 31, 2021
Debt and Credit Facilities – March 31, 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 cove
Slide 19: Second Quarter 2021 Outlook
ManpowerGroup 2021 First Quarter Results Second Quarter 2021 Outlook Revenue Total | Up 36-40% (Up 27-31% CC) ( Americas | Up 21-25% (Up 20-24% CC) Southern Europe | Up 57-61% (Up 45-49% CC) Northern Europe | Up 32-36% (Up 20-24% CC) APME| Up 8-12% (Up 4-8% CC) Gross Profit Margin 15.5 — 15.7% Opera
Slide 20: Key Take Aways
ManpowerGroup 2021 First Quarter Results Key Take Aways Continued increase in demand for our services as the e strengthens ~ revenue growth of 1% in constant curren in the quarter ‘Our Talent Solutions business has been recognized as an industry pacesetter r digitally-enabled, data-driven workforce
Slide 21: Appendix
‘eat 20,2028 Appendix Mongowerioup | Fst Quarter 2021 Resute
Slide 22: Industry Vertical Composition – Q1 2021
Industry Vertical Composition – Q1 2021 Manufacturing, 40.3%