Manpowergroup · NYSE:MAN
Manpowergroup — Q3 2018 Earnings Presentation
21 slides from Manpowergroup's earnings presentation, Oct 19, 2018
Slide 1: Third Quarter Results
ExhibitGlobal Recruiter99.2 Summit Accelerating Performance IN THE HUMAN AGE ManpowerGroup Third Quarter Results October 119, 2018 Corporate Governance Overview
Slide 2: Forward-Looking Statement
ManpowerGroupFORWARD 2018- LOOKINGSecond Quarter STATEMENT Results Global Recruiter Summit 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
Slide 3: Consolidated Financial Highlights
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit Consolidated Financial Highlights As Reported Q3 Financial Highlights 1% Revenue $5.4B 1% CC 10 bps Gross Margin 16.4% 5% Operating Profit $217M 3% CC 20 bps OP Margin 4.0% 19% EPS $2.43 21% CC Throughout th
Slide 4: EPS Bridge – Q3 vs. Guidance Midpoint
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit EPS Bridge – Q3 vs. Guidance Midpoint -0.14 +0.13 +0.04 -0.04 +0.02 +0.01 $2.41 $2.39 $2.43 $2.26 Q3 Operational Argentina Other Income Currency Tax Rate WAS Q3 Reported Guidance Performance Translation (23%
Slide 5: Consolidated Gross Margin Change
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit Consolidated Gross Margin Change -0.1% +0.1% -0.1% 16.5% 16.4% Q3 2017 Staffing/Interim Permanent MSP Q3 2018 Recruitment October 2018 5 ManpowerGroup
Slide 6: Business Line Gross Profit – Q3 2018
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit Business Line Gross Profit – Q3 2018(1) $891M Growth -1% 3% 1% CC 14% -2% 0% CC 5% 19% 64% 8% CC -9% -8% CC -1% 1% CC █ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total
Slide 7: SG&A Expense Bridge – Q3 YoY
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit SG&A Expense Bridge – Q3 YoY (in millions of USD) -11.5 +11.2 +2.3 671.9 673.9 Q3 2017 Currency Acquisitions Operational Impact Q3 2018 12.3% 12.4% % of Revenue % of Revenue October 2018 7 ManpowerGroup
Slide 8: Americas Segment
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit Americas Segment (19% of Revenue) As Reported Q3 Financial Highlights 2% Revenue $1.0B 2% CC 14% OUP $51M 11% CC 70 bps OUP Margin 4.9% Operating Unit Profit (OUP) is the measure that we use to evaluate segm
Slide 9: Americas – Q3 Revenue Growth YoY
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit Americas – Q3 Revenue Growth YoY % of Segment Average Daily Revenue Revenue Growth - CC -4% US 61% -4% -4% -1% Mexico 14% 5% 4% -37% Argentina 3% 14% 6% (1) 11% Other 22% 16% Revenue Growth Revenue Growth -
Slide 10: Southern Europe Segment
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit Southern Europe Segment (43% of Revenue) As Reported Q3 Financial Highlights 1% Revenue $2.3B 2% CC 3% OUP $122M 4% CC 10 bps OUP Margin 5.2% October 2018 10 ManpowerGroup
Slide 11: Southern Europe – Q3 Revenue Growth YoY
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit Southern Europe – Q3 Revenue Growth YoY % of Segment Average Daily Revenue Revenue Growth - CC -1% France -1% 63% -1% 6% 18% Italy 7% 7% -3% 7% Spain 0% -2% 5% 12% Other 8% Revenue Growth Revenue Growth - CC
Slide 12: Northern Europe Segment
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit Northern Europe Segment (24% of Revenue) As Reported Q3 Financial Highlights 6% Revenue $1.3B 4% CC 19% OUP $40M 17% CC 50 bps OUP Margin 3.1% October 2018 12 ManpowerGroup
Slide 13: Northern Europe – Q3 Revenue Growth YoY
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit Northern Europe – Q3 Revenue Growth YoY % of Segment Average Daily Revenue Revenue Growth - CC UK -1% 31% 0% 0% -14% Germany 20% -14% -14% -9% Nordics -3% 19% -3% -5% 14% Netherlands -4% -4% 0% 9% Belgium -1
Slide 14: APME Segment
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit APME Segment (13% of Revenue) As Reported Q3 Financial Highlights 7% Revenue $713M 10% CC 18% OUP $32M 21% CC 40 bps OUP Margin 4.5% October 2018 14 ManpowerGroup
Slide 15: APME – Q3 Revenue Growth YoY
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit APME – Q3 Revenue Growth YoY Average Daily % of Segment Revenue Growth - CC Revenue 3% 31% Japan 3% 3% -1% 22% Australia/NZ 6% 6% 15% 47% Other 17% Revenue Growth Revenue Growth - CC October 2018 15 Manpower
Slide 16: Right Management Segment
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit Right Management Segment (1% of Revenue) As Reported Q3 Financial Highlights 9% Revenue $47M 7% CC 19% OUP $7M 18% CC 170 bps OUP Margin 14.0% October 2018 16 ManpowerGroup
Slide 17: Cash Flow Summary – YTD
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit Cash Flow Summary – 9 Months YTD (in millions of USD) 2018 2017 Net Earnings 398 329 Non-cash Provisions and Other 91 138 Change in Operating Assets/Liabilities (187) (180) Capital Expenditures (40) (40) Fre
Slide 18: Balance Sheet Highlights
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit Balance Sheet Highlights Total Debt (in millions of USD) 1,250 1,000 1,089 1,079 948 970 750 855 825 Total Debt 500 Net Debt (Cash) 468 250 418 396 227 259 321 0 -231 125 -250 2014 2015 2016 2017 Q1 Q2 Q3 20
Slide 19: Debt and Credit Facilities – September 30, 2018
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit Debt and Credit Facilities – September 30, 2018 (in millions of USD) Interest Maturity Total Remaining Rate Date Outstanding Available Euro Notes - €500M 1.809% Jun 2026 575 - Euro Notes - €400M 1.913% Sep 2
Slide 20: Fourth Quarter Outlook
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit Fourth Quarter Outlook Revenue Total Down 2-4% (Down/Up 1% CC) Americas Down 1-3% (Up 1-3% CC) Southern Europe Flat/Down 2% (Flat/Up 2% CC) Northern Europe Down 5-7% (Down 3-5% CC) APME Flat/Up 2% (Up 3-5% C
Slide 21: Key Take Aways
ManpowerGroup 2018 2018 Third Second Quarter Quarter Results Results Global Recruiter Summit Key Take Aways Third quarter results reflect a softened market environment, particularly in Europe. Our global footprint and broad portfolio of services and solutions gives us the opportunity to pursue growt