Manpowergroup · NYSE:MAN
Manpowergroup — Q4 2016 Earnings Presentation
23 slides from Manpowergroup's earnings presentation, Jan 31, 2017
Slide 1: ManpowerGroup Fourth Quarter Results
ManpowerGroup Fourth Quarter Results January 31, 2017 Exhibit 99.2
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation includes forward-looking statements which are subject to known and unknown risks and uncertainties. Actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause ac
Slide 3: Q4 Consolidated Financial Highlights
January 2017 3 ManpowerGroup Throughout this presentation, the difference between reported variances and Constant Currency (CC) variances represents the impact of changes in currency on our financial results. Constant Currency is further explained in the Annual Report on our Web site. As Reported Ex
Slide 4: 2016 Consolidated Financial Highlights
January 2017 4 ManpowerGroup As Reported Excluding PY Non-recurring Items(1) 2016 Financial Highlights 2% 2% Revenue $19.7B 4% CC 4% CC 10 bps 10 bps Gross Margin 17.0% 9% 6% Operating Profit $751M 11% CC 9% CC 20 bps 20 bps OP Margin 3.8% 16% 16% EPS $6.27 19% CC 18% CC Consolidated Financial Highl
Slide 5: EPS Bridge – Q4 vs. Guidance Midpoint
January 2017 5 ManpowerGroup EPS Bridge – Q4 vs. Guidance Midpoint ManpowerGroup 2016 Fourth Quarter Results -0.05 -0.01 $1.69 $1.87 +0.15 +0.07 +0.02 Q4 Guidance Midpoint Operational Performance Insurance Settlement Tax Rate (35.3% vs 36%) Currency (-7¢ vs -2¢) Other Expense Q4 Reported
Slide 6: Consolidated Gross Margin Change
January 2017 6 ManpowerGroup Consolidated Gross Margin Change ManpowerGroup 2016 Fourth Quarter Results 17.2% 17.0% Q4 2015 Staffing/Interim Right Management Currency Q4 2016 -0.2% -0.1% +0.1%
Slide 7: Growth Business Line Gross Profit – Q4
January 2017 7 ManpowerGroup Growth Business Line Gross Profit – Q4 2016 █ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total ManpowerGroup 2016 Fourth Quarter Results $535M 64% $169M 20% $100M 12% $37M 4% $841M -1% 2% CC -3% 0% CC 9% 11% CC -20% -19% CC -1% 2% C
Slide 8: SG&A Expense Bridge – Q4 YoY
January 2017 8 ManpowerGroup SG&A Expense Bridge – Q4 YoY (in millions of USD) ManpowerGroup 2016 Fourth Quarter Results 653.6 670.0 629.0 Q4 2015 Restructuring Charges Q4 2015 Recurring Expenses Currency Acquisitions Operational Impact Q4 2016 -16.4 -16.8 -11.6 13.5% % of Revenue % of Revenue 12.7%
Slide 9: Americas Segment Q4 Financial Highlights
January 2017 9 ManpowerGroup As Reported Excluding PY Restructuring Charges(1) Q4 Financial Highlights 7% 7% Revenue $1.1B 3% CC 3% CC 4% 9% OUP $53M 0% CC 5% CC 10 bps 20 bps OUP Margin 5.0% Operating Unit Profit (OUP) is the measure that we use to evaluate segment performance. OUP is equal to segm
Slide 10: Americas – Q4 Revenue Growth
January 2017 10 ManpowerGroup Americas – Q4 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue ManpowerGroup 2016 Fourth Quarter Results -9% -9% -27% 9% -9% 8% 13% 7% US Mexico Argentina Other 64% 11% 5% 20%
Slide 11: Southern Europe Segment Q4 Financial Highlights
January 2017 11 ManpowerGroup As Reported Q4 Financial Highlights 3% Revenue $1.9B 5% CC 5% OUP $102M 7% CC 0 bps OUP Margin 5.3% Southern Europe Segment (39% of Revenue) ManpowerGroup 2016 Fourth Quarter Results
Slide 12: Southern Europe – Q4 Revenue Growth
January 2017 12 ManpowerGroup Southern Europe – Q4 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue ManpowerGroup 2016 Fourth Quarter Results 5% -2% 2% 7% 6% -1% 4% 8% France Italy Spain Other 64% 16% 7% 13%
Slide 13: Northern Europe Segment Q4 Financial Highlights
January 2017 13 ManpowerGroup As Reported Excluding PY Restructuring Charges(1) Q4 Financial Highlights 2% 2% Revenue $1.3B 6% CC 6% CC 35% 8% OUP $49M 45% CC 16% CC 110 bps 40 bps OUP Margin 3.8% Northern Europe Segment (26% of Revenue) ManpowerGroup 2016 Fourth Quarter Results (1) Excludes the imp
Slide 14: Northern Europe – Q4 Revenue Growth
January 2017 14 ManpowerGroup -20% 6% 3% 34% 18% -7% -2% 9% 5% 36% 20% -6% UK Nordics Germany Netherlands Belgium Other 31% 21% 20% 14% 8% 6% Northern Europe – Q4 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue (1) On an organic basis, revenue for the Nordics increased 4%
Slide 15: APME Segment Q4 Financial Highlights
January 2017 15 ManpowerGroup As Reported Excluding PY Restructuring Charges(1) Q4 Financial Highlights 9% 9% Revenue $630M 5% CC 5% CC 18% 2% OUP $22M 14% CC 2% CC 20 bps 30 bps OUP Margin 3.4% APME Segment (13% of Revenue) ManpowerGroup 2016 Fourth Quarter Results (1) Excludes the impact of restru
Slide 16: APME – Q4 Revenue Growth
January 2017 16 ManpowerGroup APME – Q4 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue ManpowerGroup 2016 Fourth Quarter Results 16% 0% 9% 4% -4% 11% Japan Australia/NZ Other 34% 23% 43%
Slide 17: Right Management Segment Q4 Financial Highlights
January 2017 17 ManpowerGroup As Reported Excluding PY Restructuring Charges(1) Q4 Financial Highlights 17% 17% Revenue $59M 14% CC 14% CC 16% 3% OUP $12M 20% CC 7% CC 570 bps 390 bps OUP Margin 20.3% Right Management Segment (1% of Revenue) ManpowerGroup 2016 Fourth Quarter Results (1) Excludes the
Slide 18: Cash Flow Summary – Full Year
January 2017 18 ManpowerGroup Cash Flow Summary – Full Year ManpowerGroup 2016 Fourth Quarter Results (in millions of USD) 2016 2015 Net Earnings 444 419 Non-cash Provisions and Other 206 209 Change in Operating Assets/Liabilities (50) (117) Capital Expenditures (57) (52) Free Cash Flow 543 459 Chan
Slide 19: Balance Sheet Highlights
January 2017 19 ManpowerGroup Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt (Cash) ManpowerGroup 2016 Fourth Quarter Results 120 -221 -231 125 132 308 373 227 768 516 468 855 880 854 876 825 -400 0 400 800 1,200 2012 2013 2014 2015 Q1
Slide 20: Debt Maturities and Credit Facilities
January 2017 20 ManpowerGroup (1) 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 covenants. As defined in the agreement, we had
Slide 21: First Quarter Outlook
January 2017 21 ManpowerGroup First Quarter Outlook ManpowerGroup 2016 Fourth Quarter Results Revenue Total Up 1-3% (Up 5-7% CC) Americas Down 2-4% (Down 1-3% CC) Southern Europe Up 4-6% (Up 8-10% CC) Northern Europe Up 1-3% (Up 9-11% CC) APME Up 4-6% (Up 4-6% CC) Right Management Down 11-13% (Down
Slide 22: Our Journey to 4% EBITA
January 2017 22 ManpowerGroup ManpowerGroup 2016 Fourth Quarter Results Our Journey to 4% EBITA... 2016 EBITA margin of 4.0%, an all-time record and reaching our target! Above analysis excludes restructuring charges and other non-recurring items in 2012. +0.6% 2.4% 4.0% +0.7% 2012 Gross Margin (orga
Slide 23: Key Take Aways
January 2017 23 ManpowerGroup Key Take Aways Strong performance in the fourth quarter, with good top line growth and strong bottom line performance. Continued slow growth environment with improving trends in several European markets. The current market conditions require a great focus on execution a