Manpowergroup · NYSE:MAN
Manpowergroup — Q2 2017 Earnings Presentation
21 slides from Manpowergroup's earnings presentation, Jul 24, 2017
Slide 1: ManpowerGroup Second Quarter Results
ManpowerGroup Second Quarter Results | July 24, 2017 Exhibit 99.2
Slide 2: Forward-Looking Statement
ManpowerGroup July 2017 2 FORWARD-LOOKING STATEMENT 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 uncertainties re
Slide 3: 2017 Second Quarter Results: Consolidated Financial Highlights
ManpowerGroup July 2017 3 ManpowerGroup 2017 Second Quarter Results 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
Slide 4: EPS Bridge – Q2 vs. Guidance Midpoint
ManpowerGroup July 2017 4 ManpowerGroup 2017 Second Quarter Results EPS Bridge – Q2 vs. Guidance Midpoint
Slide 5: Consolidated Gross Margin Change
ManpowerGroup July 2017 5 ManpowerGroup 2017 Second Quarter Results Consolidated Gross Margin Change 17.1% 16.7% Q2 2016 Staffing Right Management / Solutions Currency Q2 2017 -0.3% -0.2% +0.1%
Slide 6: Business Line Gross Profit – Q2 2017
ManpowerGroup July 2017 6 ManpowerGroup 2017 Second Quarter Results 2% 4% CC 0% 2% CC 5% 6% CC -24% -22% CC 0% 2% CC Growth █ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total Business Line Gross Profit – Q2 2017 $543M 63% $175M 20% $108M 13% $36M 4% $862M
Slide 7: SG&A Expense Bridge – Q2 YoY
ManpowerGroup July 2017 7 ManpowerGroup 2017 Second Quarter Results SG&A Expense Bridge – Q2 YoY (in millions of USD) 656.6 664.7 667.1 Q2 2016 Currency Acquisitions Operational Impact Q2 2017 Excluding Restructuring Costs Restructuring Costs Q2 2017 -15.7 +5.8 +10.5 +1.8 13.2% % of Revenue 12.7% %
Slide 8: Americas Segment Q2 Financial Highlights
ManpowerGroup July 2017 8 ManpowerGroup 2017 Second Quarter Results As Reported Excluding Restructuring Costs(1) Q2 Financial Highlights 2% 2% Revenue $1.1B 1% CC 1% CC 7% 19% OUP $58M 7% CC 19% CC 40 bps 100 bps OUP Margin 5.4% Operating Unit Profit (OUP) is the measure that we use to evaluate segm
Slide 9: Americas – Q2 Revenue Growth YoY
ManpowerGroup July 2017 9 ManpowerGroup 2017 Second Quarter Results Revenue Growth - CC Revenue Growth % of Segment Revenue Americas – Q2 Revenue Growth YoY Average Daily Revenue Growth - CC -7% 11% 8% 6% -7% 14% 20% 6% US Mexico Argentina Other 64% 13% 5% 18% -7% 18% 23%
Slide 10: Southern Europe Segment Q2 Financial Highlights
ManpowerGroup July 2017 10 ManpowerGroup 2017 Second Quarter Results As Reported Q2 Financial Highlights 11% Revenue $2.1B 13% CC 8% OUP $110M 10% CC 10 bps OUP Margin 5.2% Southern Europe Segment (41% of Revenue)
Slide 11: Southern Europe – Q2 Revenue Growth YoY
ManpowerGroup July 2017 11 ManpowerGroup 2017 Second Quarter Results Southern Europe – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue (1) (1) On an organic basis, revenue for Spain decreased 2% (+1% in CC). Average Daily Revenue Growth - CC 8% 22% 7% 10% 11% 25% 9% 10%
Slide 12: Northern Europe Segment Q2 Financial Highlights
ManpowerGroup July 2017 12 ManpowerGroup 2017 Second Quarter Results As Reported Excluding Restructuring Costs(1) Q2 Financial Highlights 3% 3% Revenue $1.3B 2% CC 2% CC 13% 10% OUP $33M 9% CC 6% CC 30 bps 20 bps OUP Margin 2.6% (1) Excludes the impact of restructuring costs of $1.2M in Q2 2017. Nor
Slide 13: Northern Europe – Q2 Revenue Growth YoY
ManpowerGroup July 2017 13 ManpowerGroup 2017 Second Quarter Results -20% 7% 2% 16% 0% 11% -10% 10% 7% 18% 3% 7% UK Germany Nordics Netherlands Belgium Other 30% 21% 21% 13% 8% 7% -8% 16% 16% 20% 7% Northern Europe – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue (1) O
Slide 14: APME Segment Q2 Financial Highlights
ManpowerGroup July 2017 14 ManpowerGroup 2017 Second Quarter Results As Reported Q2 Financial Highlights 5% Revenue $643M 5% CC 5% OUP $23M 6% CC 0 bps OUP Margin 3.6% APME Segment (13% of Revenue)
Slide 15: APME – Q2 Revenue Growth YoY
ManpowerGroup July 2017 15 ManpowerGroup 2017 Second Quarter Results 2% -4% 13% 5% -5% 12% Japan Australia/NZ Other 34% 23% 43% 3% -2% APME – Q2 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue Average Daily Revenue Growth - CC
Slide 16: Right Management Segment Q2 Financial Highlights
ManpowerGroup July 2017 16 ManpowerGroup 2017 Second Quarter Results As Reported Excluding Restructuring Costs(1) Q2 Financial Highlights 22% 22% Revenue $57B 20% CC 20% CC 41% 27% OUP $8M 41% CC 27% CC 500 bps 140 bps OUP Margin 14.8% Right Management Segment (1% of Revenue) (1) Excludes the impact
Slide 17: Cash Flow Summary – YTD
ManpowerGroup July 2017 17 ManpowerGroup 2017 Second Quarter Results Cash Flow Summary – 6 Months YTD (in millions of USD) 2017 2016 Net Earnings 191 187 Non-cash Provisions and Other 92 96 Change in Operating Assets/Liabilities (135) (21) Capital Expenditures (26) (31) Free Cash Flow 122 231 Change
Slide 18: Balance Sheet Highlights
ManpowerGroup July 2017 18 ManpowerGroup 2017 Second Quarter Results Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt (Cash) -221 -231 125 227 109 318 516 468 855 825 834 891 -300 0 300 600 900 2013 2014 2015 2016 Q1 Q2 2017 15% 14% 24%
Slide 19: Debt Facilities and Covenants
ManpowerGroup July 2017 19 ManpowerGroup 2017 Second Quarter Results (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 covenan
Slide 20: Third Quarter Outlook
ManpowerGroup July 2017 20 ManpowerGroup 2017 Second Quarter Results Third Quarter Outlook Revenue Total Up 5-7% (Up 4-6% CC) Americas Down 2-4% (Down 2-4% CC) Southern Europe Up 12-14% (Up 10-12% CC) Northern Europe Up 2-4% (Up 1-3% CC) APME Up 2-4% (Up 5-7% CC) Right Management Down 16-18% (Down 1
Slide 21: Key Take Aways
ManpowerGroup July 2017 21 ManpowerGroup 2017 Second Quarter Results Strong performance in the second quarter, with improving top line growth and solid bottom line performance. Continued slow growth environment but improving economic and labor market outlook in many parts of the world, particularly