Manpowergroup · NYSE:MAN
Manpowergroup — Q1 2020 Earnings Presentation
19 slides from Manpowergroup's earnings presentation, Apr 21, 2020
Slide 1: ManpowerGroup First Quarter Results
ManpowerGroup First Quarter Results | April 21, 2020 Exhibit 99.2
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation contains statements, including statements regarding the anticipated financial and operational impacts of the COVID-19 pandemic and the Company’s efforts to respond to such impacts, that are forward-looking in nature and, accordingly, are subject to risks a
Slide 3: Consolidated Financial Highlights
Consolidated Financial Highlights ManpowerGroup 2020 First Quarter Results As Reported As Adjusted(1) Q1 Financial Highlights 8% 8% Revenue $4.6B 6% CC 6% CC 30 bps 30 bps Gross Margin 15.7% 64% 41% Operating Profit $38M ($86M as adjusted) 63% CC 39% CC 130 bps 100 bps OP Margin 0.8% (1.9% as adjust
Slide 4: EPS Bridge – Q1 2020 vs. Q1 2019
EPS Bridge – Q1 2020 vs. Q1 2019 ManpowerGroup 2020 First Quarter Results (1) (2) Includes a discrete tax benefit of $4.3 million in Q1 2020. French business tax component represents $9.0 million of tax expense in Q1 2020 ($11.4 million in Q1 2019) and is not derived based on pre-tax earnings but ra
Slide 5: Consolidated Gross Margin Change
Consolidated Gross Margin Change ManpowerGroup 2020 First Quarter Results
Slide 6: Growth Business Line Gross Profit – Q1 2020
Growth Business Line Gross Profit – Q1 2020(1) (1) Business line classifications can vary by entity and are subject to change as service requirements change. ManpowerGroup 2020 First Quarter Results █ Manpower █ Experis █ Talent Solutions █ ManpowerGroup – Total
Slide 7: SG&A Expense Bridge – Q1 YoY
SG&A Expense Bridge – Q1 YoY (in millions of USD) ManpowerGroup 2020 First Quarter Results This was unfavorably impacted 10 bps due to the effect of currency exchange rates on our business mix. In constant currency, SG&A excluding restructuring costs was 14.8% of Revenue.
Slide 8: Cash Flow Summary – Q1
Cash Flow Summary – Q1 ManpowerGroup 2020 First Quarter Results
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization ManpowerGroup 2020 First Quarter Results Total Debt Net Debt Net (Cash)
Slide 10: Debt and Credit Facilities – March 31, 2020
Interest Rate Maturity Date Total Outstanding Remaining Available Euro Notes - €500M 1.809% Jun 2026 547 - Euro Notes - €400M 1.913% Sep 2022 440 - Revolving Credit Agreement 1.993% Jun 2023 - 599 Uncommitted lines and Other Various Various 56 270 Total Debt 1,043 869 Debt and Credit Facilities – Ma
Slide 11: Americas Segment
Operating Unit Profit (OUP) is the measure that we use to evaluate segment performance. OUP is equal to segment revenues less direct costs and branch and national headquarters operating costs. Americas Segment (22% of Revenue) ManpowerGroup 2020 First Quarter Results As Reported As Adjusted(1) Q1 Fi
Slide 12: Americas – Q1 Revenue Growth YoY
Revenue Growth - CC Revenue Growth % of Segment Revenue Americas – Q1 Revenue Growth YoY Average Daily Revenue Growth - CC ManpowerGroup 2020 First Quarter Results On an organic basis, revenue for the US decreased 5%. (ADR on an organic basis was -6%). (1)
Slide 13: Southern Europe Segment
Southern Europe Segment (42% of Revenue) ManpowerGroup 2020 First Quarter Results Excludes the impact of restructuring costs of $13.1M ($10.3 net of tax) in Q1 2020 and $5.4M in Q1 2019. As Reported As Adjusted(1) Q1 Financial Highlights 8% 8% Revenue $1.9B 5% CC 5% CC 39% 28% OUP $53M 37% CC 26% CC
Slide 14: Southern Europe – Q1 Revenue Growth YoY
Southern Europe – Q1 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue Average Daily Revenue Growth - CC ManpowerGroup 2020 First Quarter Results
Slide 15: Northern Europe Segment
Northern Europe Segment (23% of Revenue) ManpowerGroup 2020 First Quarter Results Excludes the impact of restructuring costs of $19.5M ($18.1 net of tax) in Q1 2020 and $18.7M in Q1 2019 As Reported As Adjusted(1) Q1 Financial Highlights 11% 11% Revenue $1.1B 8% CC 8% CC N/A 74% OUP -$14M 72% CC 150
Slide 16: Northern Europe – Q1 Revenue Growth YoY
Northern Europe – Q1 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue Average Daily Revenue Growth - CC ManpowerGroup 2020 First Quarter Results
Slide 17: APME Segment
APME Segment (13% of Revenue) ManpowerGroup 2020 First Quarter Results Excludes the impact of restructuring costs of $2.7M ($1.8 net of tax) in Q1 2020 and $4.4M in Q1 2019 As Reported As Adjusted(1) Q1 Financial Highlights 16% 16% Revenue $595M 14% CC 14% CC 18% 22% OUP $17M 17% CC 21% CC 0 bps 30
Slide 18: APME – Q1 Revenue Growth YoY
APME – Q1 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue Average Daily Revenue Growth - CC On an organic basis excluding Greater China, revenue for APME Other increased 4% or +7% in constant currency. (1) ManpowerGroup 2020 First Quarter Results
Slide 19: Key Take Aways
Our number one priority is to support our clients, candidates and employees through this difficult health and economic crisis. We have a very experienced global management team that has gone through a number of recessions and we come into this crisis with clear strategic priorities and a strong bala