Manpowergroup · NYSE:MAN
Manpowergroup — Q1 2019 Earnings Presentation
21 slides from Manpowergroup's earnings presentation, Apr 18, 2019
Slide 1: ManpowerGroup First Quarter Results
Exhibit 99.2 ManpowerGroup First Quarter Results | April 18, 2019
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation contains statements, including financial projections, that are forward-looking in nature. These statements are based on management’s current expectations or beliefs, and are subject to known and unknown risks and uncertainties regarding expected future res
Slide 3: Consolidated Financial Highlights
ManpowerGroup 2019 First Quarter Results Consolidated Financial Highlights As Excluding Reported Restructuring Q1 Financial Highlights Costs(1) 9% 9% Revenue $5.0B 2% CC 2% CC 0 bps 0 bps Gross Margin 16.0% 31% 18% Operating Profit $105M 26% CC 12% CC ($145M excluding restructuring costs) 70 bps 30
Slide 4: EPS Bridge – Q1 vs. Guidance Midpoint
ManpowerGroup 2019 First Quarter Results EPS Bridge – Q1 vs. Guidance Midpoint +0.01 -0.02 +0.04 +0.01 +0.01 -0.51 $1.39 $1.39 $1.34 $0.88 Q1 Guidance Operational Currency Tax Rate WAS Argentina Reported Restructuring Q1 Reported Midpoint Performance (36.4% vs Translation Excluding Costs 37.0%) Loss
Slide 5: Consolidated Gross Margin Change
ManpowerGroup 2019 First Quarter Results Consolidated Gross Margin Change -0.1% +0.1% 16.0% 16.0% Q1 2018 Staffing/Interim Permanent Recruitment Q1 2019 April 2019 5 ManpowerGroup
Slide 6: Business Line Gross Profit – Q1 2019
ManpowerGroup 2019 First Quarter Results Business Line Gross Profit – Q1 2019(1) $805M Growth -11% 4% -4% OCC 14% -5% 0% OCC -7% 61% 2% OCC 21% -9% -6% OCC -9% -3% OCC █ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total (1) Business line classifications can vary
Slide 7: SG&A Expense Bridge – Q1 YoY
ManpowerGroup 2019 First Quarter Results SG&A Expense Bridge – Q1 YoY (in millions of USD) -24.0 731.6 -42.1 +39.8 707.6 699.3 -3.2 -2.8 659.5 Q1 2018 Q1 2018 Q1 2018 Currency Operational Impact of Q1 2019 Q1 2019 Q1 2019 Reported Restructuring Excluding Impact Dispositions Excluding Restructuring R
Slide 8: Americas Segment
ManpowerGroup 2019 First Quarter Results Americas Segment (20% of Revenue) As Excluding Reported Restructuring Q1 Financial Highlights Costs(1) 1% 1% Revenue $1.0B 3% CC 3% CC 27% 16% OUP $31M 26% CC 12% CC 110 bps 60 bps OUP Margin 3.1% (1) Excludes the impact of restructuring costs of $5.1M in Q1
Slide 9: Americas – Q1 Revenue Growth YoY
ManpowerGroup 2019 First Quarter Results Americas – Q1 Revenue Growth YoY % of Segment Average Daily Revenue Revenue Growth - CC -2% US 60% -2% -1% 4% Mexico 14% 7% 8% 8% Canada 7% 13% 13% -7% Other 19% 12% Revenue Growth Revenue Growth - CC April 2019 9 ManpowerGroup
Slide 10: Southern Europe Segment
ManpowerGroup 2019 First Quarter Results Southern Europe Segment (42% of Revenue) As Excluding Reported Restructuring Q1 Financial Highlights Costs(1) 9% 9% Revenue $2.1B 2% CC 2% CC 11% 8% OUP $87M 4% CC 1% CC 10 bps 0 bps OUP Margin 4.1% (1) Excludes the impact of restructuring costs of $5.4M in Q
Slide 11: Southern Europe – Q1 Revenue Growth YoY
ManpowerGroup 2019 First Quarter Results Southern Europe – Q1 Revenue Growth YoY % of Segment Average Daily Revenue Revenue Growth - CC -9% France 0% 62% -1% -14% 17% Italy -6% -7% -9% 7% Spain -1% -1% -5% 14% Other 3% Revenue Growth Revenue Growth - CC April 2019 11 ManpowerGroup
Slide 12: Northern Europe Segment
ManpowerGroup 2019 First Quarter Results Northern Europe Segment (23% of Revenue) As Excluding Reported Restructuring Q1 Financial Highlights Costs(1) 16% 16% Revenue $1.2B 9% CC 9% CC 96% 47% OUP $1M 95% CC 42% CC 110 bps 100 bps OUP Margin 0.1% (1) Excludes the impact of restructuring costs of $18
Slide 13: Northern Europe – Q1 Revenue Growth YoY
ManpowerGroup 2019 First Quarter Results Northern Europe – Q1 Revenue Growth YoY % of Segment Average Daily Revenue Revenue Growth - CC UK -11% 32% -5% -5% -29% Germany 18% -23% -23% -6% Nordics 1% 21% 4% (1) -28% Netherlands -20% 12% -22% -12% 8% Belgium -6% -5% 9% Other -8% 3% Revenue Growth Reven
Slide 14: APME Segment
ManpowerGroup 2019 First Quarter Results APME Segment (14% of Revenue) As Excluding Reported Restructuring Q1 Financial Highlights Costs(1) 3% 3% Revenue $700M 2% CC 2% CC 22% 5% OUP $20M 19% CC 0% CC 70 bps 10 bps OUP Margin 2.9% (1) Excludes the impact of restructuring costs of $4.4M in Q1 2019 Ap
Slide 15: APME – Q1 Revenue Growth YoY
ManpowerGroup 2019 First Quarter Results APME – Q1 Revenue Growth YoY Average Daily % of Segment Revenue Growth - CC Revenue 1% 33% Japan 5% 3% -14% 19% Australia/NZ -6% -5% (1) 0% 48% Other 5% Revenue Growth Revenue Growth - CC (1) On an organic basis, revenue for APME Other increased 9% or +14% in
Slide 16: Right Management Segment
ManpowerGroup 2019 First Quarter Results Right Management Segment (1% of Revenue) As Excluding Reported Restructuring Q1 Financial Highlights Costs(1) 8% 8% Revenue $46M 5% CC 5% CC 68% 3% OUP $2M 66% CC 1% CC 840 bps 90 bps OUP Margin 4.5% (1) Excludes the impact of restructuring costs of $4.7M in
Slide 17: Cash Flow Summary – Q1
ManpowerGroup 2019 First Quarter Results Cash Flow Summary – Q1 (in millions of USD) 2019 2018 Net Earnings 54 97 Non-cash Provisions and Other 68 22 Change in Operating Assets/Liabilities (20) (177) Capital Expenditures (10) (13) Free Cash Flow 92 (71) Change in Debt 3 (4) Acquisitions of Businesse
Slide 18: Balance Sheet Highlights
ManpowerGroup 2019 First Quarter Results Balance Sheet Highlights Total Debt (in millions of USD) 1,250 1,000 1,075 1,056 750 948 855 825 Total Debt 500 468 250 483 490 Net Debt (Cash) 227 259 0 -231 125 -250 2014 2015 2016 2017 2018 Q1 2019 Total Debt to Total Capitalization 30% 28% 28% 25% 25% 20%
Slide 19: Debt and Credit Facilities – March 31, 2019
ManpowerGroup 2019 First Quarter Results Debt and Credit Facilities – March 31, 2019 (in millions of USD) Interest Maturity Total Remaining Rate Date Outstanding Available Euro Notes - €500M 1.809% Jun 2026 556 - Euro Notes - €400M 1.913% Sep 2022 447 - (1) Revolving Credit Agreement 3.50% Jun 2023
Slide 20: Second Quarter 2019 Outlook
ManpowerGroup 2019 First Quarter Results Second Quarter 2019 Outlook Revenue Total Down 3-5% (Up/Down 1% CC) Americas Flat/Down 2% (Up 2-4% CC) Southern Europe Up/Down 1% (Up 4-6% CC) Northern Europe Down 12-14% (Down 8-10% CC) APME Down 5-7% (Down 2-4% CC) Right Management Down 6-8% (Down 3-5% CC)
Slide 21: Key Take Aways
ManpowerGroup 2019 First Quarter Results Key Take Aways During the first quarter we experienced a stabilization of the economic slowdown in a number of key European markets. Demand for our extensive portfolio of workforce solutions and services across our global footprint provides us with good oppor