Manpowergroup · NYSE:MAN
Manpowergroup — Q4 2018 Earnings Presentation
22 slides from Manpowergroup's earnings presentation, Jan 31, 2019
Slide 1: Fourth Quarter Results
Global Recruiter Summit Exhibit 99.2 Accelerating Performance IN THE HUMAN AGE ManpowerGroup Fourth Quarter Results January 131, 2019 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 Q4
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit Consolidated Financial Highlights As Reported Q4 Financial Highlights 4% Revenue $5.4B 1% CC 30 bps Gross Margin 16.3% 8% Operating Profit $218M 4% CC 20 bps OP Margin 4.0% 21% EPS $2.54 18% CC Throughout t
Slide 4: Consolidated Financial Highlights 2018
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit Consolidated Financial Highlights As Excluding Reported Restructuring 2018 Financial Highlights Costs(1) 5% 5% Revenue $22.0B 2% CC 2% CC 30 bps 30 bps Gross Margin 16.3% 1% 1% Operating Profit $797M 0% CC
Slide 5: EPS Bridge – Q4 vs. Guidance Midpoint
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit EPS Bridge – Q4 vs. Guidance Midpoint +0.06 +0.09 -0.06 +0.04 +0.10 $2.54 +0.12 $2.44 $2.48 $2.19 Q4 Operational NL Language Other Income Currency Tax Rate WAS Q4 Reported Guidance Performance Translation (
Slide 6: Consolidated Gross Margin Change
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit Consolidated Gross Margin Change -0.3% 16.6% 16.3% Q4 2017 Staffing/Interim Q4 2018 January 2019 6 ManpowerGroup
Slide 7: Business Line Gross Profit – Q4 2018
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit Business Line Gross Profit – Q4 2018(1) $880M Growth 3% -7% -4% CC 14% -4% -1% CC 63% -2% 20% 2% CC -7% -5% CC -6% -2% CC █ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup –
Slide 8: SG&A Expense Bridge – Q4 YoY
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit SG&A Expense Bridge – Q4 YoY (in millions of USD) -22.3 697.1 +1.4 -5.4 -8.4 662.4 Q4 2017 Currency Acquisitions Operational Impact NL Language Q4 2018 Translation business sale gain 12.4% 12.3% % of Revenu
Slide 9: Americas Segment
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit Americas Segment (19% of Revenue) As Reported Q4 Financial Highlights 3% Revenue $1.0B 2% CC 8% OUP $53M 3% CC 30 bps OUP Margin 5.1% Operating Unit Profit (OUP) is the measure that we use to evaluate segme
Slide 10: Americas – Q4 Revenue Growth YoY
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit Americas – Q4 Revenue Growth YoY % of Segment Average Daily Revenue Revenue Growth - CC -5% US 61% -5% -5% 4% Mexico 14% 9% 5% -46% Argentina 3% 14% 2% (1) 11% Other 22% 17% Revenue Growth Revenue Growth -
Slide 11: Southern Europe Segment
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit Southern Europe Segment (43% of Revenue) As Reported Q4 Financial Highlights 4% Revenue $2.3B 1% CC 5% OUP $127M 2% CC 10 bps OUP Margin 5.5% January 2019 11 ManpowerGroup
Slide 12: Southern Europe – Q4 Revenue Growth YoY
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit Southern Europe – Q4 Revenue Growth YoY % of Segment Average Daily Revenue Revenue Growth - CC -5% France -3% 62% -2% -6% 18% Italy -5% -3% -6% 7% Spain -5% -3% 1% 13% Other 6% Revenue Growth Revenue Growth
Slide 13: Northern Europe Segment
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit Northern Europe Segment (24% of Revenue) As Reported Q4 Financial Highlights 10% Revenue $1.3B 7% CC 10% OUP $41M 6% CC 0 bps OUP Margin 3.2% January 2019 13 ManpowerGroup
Slide 14: Northern Europe – Q4 Revenue Growth YoY
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit Northern Europe – Q4 Revenue Growth YoY % of Segment Average Daily Revenue Revenue Growth - CC UK -6% 31% -3% -4% -21% Germany 18% -18% -21% -5% Nordics 2% 21% 1% -16% Netherlands -15% 13% -13% -2% 9% Belgi
Slide 15: APME Segment
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit APME Segment (13% of Revenue) As Reported Q4 Financial Highlights 5% Revenue $732M 9% CC 3% OUP $27M 0% CC 30 bps OUP Margin 3.7% January 2019 15 ManpowerGroup
Slide 16: APME – Q4 Revenue Growth YoY
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit APME – Q4 Revenue Growth YoY Average Daily % of Segment Revenue Growth - CC Revenue 4% 32% Japan 2% 4% -8% 19% Australia/NZ -1% -1% 12% 49% Other 17% Revenue Growth Revenue Growth - CC January 2019 16 Manpo
Slide 17: Right Management Segment
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit Right Management Segment (1% of Revenue) As Reported Q4 Financial Highlights 6% Revenue $50M 4% CC 12% OUP $9M 10% CC 130 bps OUP Margin 18.6% January 2019 17 ManpowerGroup
Slide 18: Cash Flow Summary – Full Year
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit Cash Flow Summary – Full Year (in millions of USD) 2018 2017 Net Earnings 557 545 Non-cash Provisions and Other 124 (65) Change in Operating Assets/Liabilities (198) (79) Capital Expenditures (65) (55) Free
Slide 19: Balance Sheet Highlights
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit Balance Sheet Highlights Total Debt (in millions of USD) 1,250 1,000 970 1,089 1,079 1,075 750 855 948 825 Total Debt 500 468 418 396 483 Net Debt (Cash) 250 321 227 259 0 -231 125 -250 2014 2015 2016 2017
Slide 20: Debt and Credit Facilities – December 31, 2018
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit Debt and Credit Facilities – December 31, 2018 (in millions of USD) Interest Maturity Total Remaining Rate Date Outstanding Available Euro Notes - €500M 1.809% Jun 2026 568 - Euro Notes - €400M 1.913% Sep 2
Slide 21: First Quarter 2019 Outlook
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit First Quarter 2019 Outlook Revenue Total Down 10-12% (Down 3-5% CC) Americas Down 3-5% (Flat/Up 2% CC) Southern Europe Down 10-12% (Down 3-5% CC) Northern Europe Down 16-18% (Down 8-10% CC) APME Down 6-8% (
Slide 22: Key Take Aways
ManpowerGroup 2018 2018 Fourth Second Quarter Quarter Results Results Global Recruiter Summit Key Take Aways Fourth quarter results reflect the continued sluggish economic environment in Europe. We continue to execute on our strategic priorities while managing costs and productivity. Implementation