Manpowergroup · NYSE:MAN
Manpowergroup — Investor Presentation (February 2013)
35 slides from Manpowergroup's investor presentation, Feb 25, 2013
Slide 1: Investor Briefing, New York
February 25, 2013 Investor Briefing New York, NY
Slide 2: Forward-Looking Statement
ManpowerGroup Investor Briefing | February 25, 2013 * 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
Slide 3: Well-Positioned for Strong Shareholder Returns
February 19, 2013 Well-Positioned for Strong Shareholder Returns Positive Secular Trends Strong Assets, Connected Brands and World-Leading Offerings Leading Position in Emerging Markets Commitment to Recalibration of Cost Base Leadership Strength
Slide 4: Management Team
ManpowerGroup Investor Briefing | February 25, 2013 * ManpowerGroup Management Team Jeff Joerres Chairman and CEO Jonas Prising ManpowerGroup President The Americas and Southern Europe Darryl Green ManpowerGroup President APME and Northern Europe Mike Van Handel Executive Vice President & Chief Fina
Slide 5: Role of Thought Leadership
ManpowerGroup Investor Briefing | February 25, 2013 * Role of Thought Leadership… ManpowerGroup MAN Knows the “Human Age” -Sell-Side Analyst Forces Driving Certain Uncertainty Mean Every Company is Faced with the Same Dilemma: How to remain competitive and execute my business strategy in the face of
Slide 6: Role of Positive Secular Trends: Forces Driving Client Priorities
ManpowerGroup Investor Briefing | February 25, 2013 * Role of Positive Secular Trends… Forces Driving Client Priorities
Slide 7: Client Perspective of Our Services
ManpowerGroup Investor Briefing | February 25, 2013 * Client Perspective of Our Services Role of Positive Secular Trends…
Slide 8: Focused on Three Strategic Priorities
ManpowerGroup Investor Briefing | February 25, 2013 * Focused on Three Strategic Priorities
Slide 9: Road Map to 4%
ManpowerGroup Investor Briefing | February 25, 2013 * Road Map to 4%
Slide 10: Historical Trends: Revenue and EBITA
ManpowerGroup Investor Briefing | February 25, 2013 * Revenue 2009 Deep global recession; loss of gross margin and operational deleveraging 2010/11 Positive recovery and market share gains; operational leveraging resulting in solid incremental margins and EBITA expansion of 100 bps and 70 bps 2012/1
Slide 11: Road Map to 4% EBITA…and Beyond
ManpowerGroup Investor Briefing | February 25, 2013 * Road Map to 4% EBITA…and Beyond
Slide 12: Secular Trends Remain Positive: Revenue Growth
ManpowerGroup Investor Briefing | February 25, 2013 * Secular Trends Remain Positive Revenue Growth
Slide 13: Strong Market Growth Fundamentals
ManpowerGroup Investor Briefing | February 25, 2013 * Clients demanding flexibility in cost structure given more volatile global economic cycles. Clients looking to the “experts” for workforce management solutions. Massive opportunity in emerging markets in Asia, Eastern Europe and Latin America. Ne
Slide 14: Clients' Need for Greater Flexibility and Agility
ManpowerGroup Investor Briefing | February 25, 2013 * Clients’ Need for Greater Flexibility and Agility
Slide 15: Temporary Penetration Rates Are Recovering Globally
ManpowerGroup Investor Briefing | February 25, 2013 * Temporary Penetration Rates Are Recovering Globally… Source: CIETT (1) 2012 Penetration rate is 1.9% (1) …with further opportunity to expand beyond previous peak levels.
Slide 16: Emerging Markets Investments Delivering Strong Returns
ManpowerGroup Investor Briefing | February 25, 2013 * Revenue Leading market position with 433 offices across 27 emerging markets – all profitable. Significant growth opportunities from increasing penetration, economic development and inflation. Emerging Markets Emerging Markets Revenue Represents 4
Slide 17: Investments in China Paying Off
ManpowerGroup Investor Briefing | February 25, 2013 * First office in Shanghai Professional recruitment service offering via acquired company (est. in 1994) in 5 cities Leader in local market in 19 cities/220 recruiters First licensed company (MNC) to offer staffing services Acquired Xi’an FESCO and
Slide 18: Recognized Market Leader in China
ManpowerGroup Investor Briefing | February 25, 2013 * Who we are ... What we deliver ... How we do it ... What’s the benefit … Recognized Market Leader in China ManpowerGroup China The leading innovative workforce solution provider in China We focus on domestic needs and provide high-impact professi
Slide 19: Positive Secular Trends: Gross Margin
ManpowerGroup Investor Briefing | February 25, 2013 * Positive Secular Trends Gross Margin
Slide 20: Shift Toward Higher Value Solutions and Services
ManpowerGroup Investor Briefing | February 25, 2013 * Shift Toward Higher Value Solutions and Services Higher value solutions and services now comprise almost 40% of gross profit ManpowerGroup Solutions 4-year CAGR of 21%; 12% growth in 2012 Solutions investments have positioned us as the global lea
Slide 21: Recruitment Process Outsourcing
ManpowerGroup Investor Briefing | February 25, 2013 * Recruitment Process Outsourcing ManpowerGroup Momentum Named Global RPO Leader by industry analysts NelsonHall and Everest Research Group in 2011 and 2012 Currently delivering RPO in over 40 countries; 160,000 hires made in 2012 Closed 15 multi-c
Slide 22: Global Leader in RPO
ManpowerGroup Investor Briefing | February 25, 2013 * ManpowerGroup: Global Leader in RPO Star Performer Leader Major Contender Emerging Player
Slide 23: Managed Service Provider Market Opportunity
ManpowerGroup Investor Briefing | February 25, 2013 * Managed Service Provider Market Opportunity NOTE: Estimates based on 2012 Staffing Industry Analysts VMS/MSP Landscape, International Labour Organization, and ManpowerGroup Internal Data The MSP industry represented $62.5 billion in managed spend
Slide 24: TAPFIN is the Global Leader in MSP
ManpowerGroup Investor Briefing | February 25, 2013 * TAPFIN is the Global Leader in MSP NOTE: All managed spend data and rankings based on 2011 data, as reported in Staffing Industry Analyst 2012 VMS and MSP Supplier Competitive Landscape Report, published July 2012
Slide 25: Clients Are Outsourcing More of Their Permanent Recruitment
ManpowerGroup Investor Briefing | February 25, 2013 * Clients Are Outsourcing More of Their Permanent Recruitment… Permanent Recruitment Gross Profit We have developed market leading global recruitment solutions to address evolving client needs. Positive Secular Trends
Slide 26: Cost Recalibration / Productivity Improvements
ManpowerGroup Investor Briefing | February 25, 2013 * Cost Recalibration / Productivity Improvements
Slide 27: Recalibrating Costs: Simplify in Four Areas
ManpowerGroup Investor Briefing | February 25, 2013 * Recalibrating Costs Simplify in Four Areas
Slide 28: Reorganization Savings
ManpowerGroup Investor Briefing | February 25, 2013 * Reorganization Savings Total annualized SG&A reduction of $125M (4%) by December 2013. All regions and corporate impacted. Targeted 2013 P/L savings of $80M. Reorganization charge of $50M - $60M in 2013. (Millions)
Slide 29: Cost Reduction Examples
ManpowerGroup Investor Briefing | February 25, 2013 * Cost Reduction Examples
Slide 30: Financial Update
ManpowerGroup Investor Briefing | February 25, 2013 * Financial Update
Slide 31: Regional Revenue Trends
ManpowerGroup Investor Briefing | February 25, 2013 * Regional Revenue Trends Tracking to first quarter guidance: Revenue: -6% to -8% constant currency OP Margin: 1.4% to 1.6% EPS (Before reorganization charges): 40¢ to 48¢ Q1 ADR -4.5% in constant currency, similar to Q4 12 Organic year-on-year per
Slide 32: Driving Shareholder Value
ManpowerGroup Investor Briefing | February 25, 2013 * Driving Shareholder Value Economic profit included in CEO/CFO annual incentive plans and cascaded down. Rigorous cash management with DSO reduction of 5 days since 2007. Primary future driver of ROIC is EBITA margin expansion. EBITA margin > 4% y
Slide 33: Capital Allocation Strategy
ManpowerGroup Investor Briefing | February 25, 2013 * Capital Allocation Strategy Maintain strong liquidity to support growth opportunities in recession and recovery Target financial leverage to maintain “investment grade” credit rating throughout the economic cycle Deliver consistent dividend growt
Slide 34: Uses of Free Cash
ManpowerGroup Investor Briefing | February 25, 2013 * Uses of Free Cash Strong, consistent dividend performance. Current yield of 1.7%. Volatile payout ratio due to earnings cyclicality. 8% of outstanding shares repurchased in 2011/12 at average price of $39.03. 8M (10%) shares authorized and availa
Slide 35: Globally Recognized Leader
ManpowerGroup Investor Briefing | February 25, 2013 * Globally Recognized Leader America’s Most Shareholder-Friendly Company Ranked 1,603 on the 2012 Global 2000 Named to the Dow Jones Sustainability Index fifth consecutive year Listed on FTSE4 Good Index Series for fourth consecutive year Ranked 12
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