Slide 1: Third Quarter Results October 21, 2014
ManpowerGroup Third Quarter Results October 21, 2014
Slide 2: Forward-Looking Statements
ManpowerGroup | October 2014 * Forward-Looking Statements 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 and unknown risks and uncertainti
Slide 3: Q3 Consolidated Financial Highlights
ManpowerGroup | October 2014 * As Reported Excluding PY Restructuring Charges Q3 Financial Highlights 4% 4% Revenue $5.4B 5% CC 5% CC Revenue $5.4B 20 bps 20 bps Gross Margin 16.7% 31% 24% Operating Profit $212M 31% CC 24% CC Operating Profit $212M 80 bps 60 bps OP Margin 3.9% 36% 28% EPS $1.61 36%
Slide 4: EPS Bridge – Q3 vs. Guidance Midpoint
ManpowerGroup | October 2014 * EPS Bridge – Q3 vs. Guidance Midpoint
Slide 5: Consolidated Gross Margin Change
ManpowerGroup | October 2014 * Consolidated Gross Margin Change
Slide 6: Growth in CC % Business Line Gross Profit – Q3 2014
ManpowerGroup | October 2014 * Growth in CC % Business Line Gross Profit – Q3 2014 █ Manpower █ Experis █ ManpowerGroup - Total █ ManpowerGroup Solutions █ Right Management
Slide 7: SG&A Expense Bridge – Q3 YoY
ManpowerGroup | October 2014 * SG&A Expense Bridge – Q3 YoY (in millions of USD) Productivity Gain 12.8% % of Revenue 13.2% % of Revenue
Slide 8: SG&A Expense Bridge – Q3 YTD YoY
ManpowerGroup | October 2014 * SG&A Expense Bridge – Q3 YTD YoY (in millions of USD) Productivity Gain 13.4% % of Revenue 13.8% % of Revenue
Slide 9: Americas Segment Q3 Financial Highlights
ManpowerGroup | October 2014 * 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. As Reported Excluding Non-Recurring Items Q3 Financial Highlights 4% 4% Reve
Slide 10: Americas – Q3 Revenue Growth YoY
ManpowerGroup | October 2014 * Americas – Q3 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue
Slide 11: Southern Europe Segment Q3 Financial Highlights
ManpowerGroup | October 2014 * As Reported Excluding PY Restructuring Charges Q3 Financial Highlights 5% 5% Revenue $2.0B 5% CC 5% CC Revenue $2.0B 44% 42% OUP $105M 43% CC 42% CC OUP $105M 140 bps 140 bps OUP Margin 5.2% Southern Europe Segment (37% of Revenue) Included in these amounts is France,
Slide 12: Southern Europe – Q3 Revenue Growth YoY
ManpowerGroup | October 2014 * Southern Europe – Q3 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue
Slide 13: Northern Europe Segment Q3 Financial Highlights
ManpowerGroup | October 2014 * As Reported Excluding PY Restructuring Charges Q3 Financial Highlights 7% 7% Revenue $1.6B 6% CC 6% CC Revenue $1.6B 18% 13% OUP $60M 17% CC 12% CC OUP $60M 30 bps 20 bps OUP Margin 3.8% Northern Europe Segment (29% of Revenue) Excludes the impact of restructuring char
Slide 14: Northern Europe – Q3 Revenue Growth YoY
ManpowerGroup | October 2014 * Northern Europe – Q3 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue
Slide 15: APME Segment Q3 Financial Highlights
ManpowerGroup | October 2014 * As Reported Excluding PY Restructuring Charges Q3 Financial Highlights 2% 2% Revenue $592M 1% CC 1% CC Revenue $592M 12% 6% OUP $22M 14% CC 7% CC OUP $22M 50 bps 30 bps OUP Margin 3.7% APME Segment (11% of Revenue) Excludes the impact of restructuring charges of $1.1M
Slide 16: APME – Q3 Revenue Growth YoY
ManpowerGroup | October 2014 * APME – Q3 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue
Slide 17: Right Management Segment Q3 Financial Highlights
ManpowerGroup | October 2014 * Right Management Segment (1% of Revenue) As Reported Excluding PY Restructuring Charges Q3 Financial Highlights 7% 7% Revenue $72M 8% CC 8% CC Revenue $72M 40% 15% OUP $6M 38% CC 16% CC OUP $6M 290 bps 80 bps OUP Margin 8.7% Excludes the impact of restructuring charges
Slide 18: Cash Flow Summary – YTD
ManpowerGroup | October 2014 * Cash Flow Summary – 9 Months YTD
Slide 19: Balance Sheet Highlights
ManpowerGroup | October 2014 * Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt (Cash)
Slide 20: Credit Facilities – September 30, 2014
ManpowerGroup | October 2014 * Interest Rate Maturity Date Total Outstanding Remaining Available Euro Notes - €350M 4.505% Jun 2018 442 - Revolving Credit Agreement 1.23% Oct 2018 - 599 Uncommitted lines and Other Various Various 42 307 Total Debt 484 906 Credit Facilities – September 30, 2014 (in m
Slide 21: Fourth Quarter Outlook
ManpowerGroup | October 2014 * Fourth Quarter Outlook Revenue Total Down 1-3% (Up 2-4% CC) Americas Up 2-4% (Up 5-7% CC) Southern Europe Down 5-7% (Up 1-3% CC) Northern Europe Flat/Down 2% (Up 3-5% CC) APME Flat/Down 2% (Flat/Up 2% CC) Right Management Right Management Down 7-9% (Down 5-7% CC) Gross
Slide 22: Key Take-Aways
ManpowerGroup | October 2014 * Key Take-Aways