Slide 1: ManpowerGroup Third Quarter Results
ManpowerGroup Third Quarter Results October 21, 2015 Exhibit 99.2
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT 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 factors that could cause ac
Slide 3: Consolidated Q3 Financial Highlights
3 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results 8% Revenue $5.0B 6% CC 40 bps Gross Margin 17.1% 20 bps CC 3% Operating Profit $206M 13% CC 20 bps OP Margin 4.1% 30 bps CC 0% EPS $1.61 16% CC Throughout this presentation, the difference between reported variances and Constant
Slide 4: EPS Bridge – Q3 vs. Guidance Midpoint
4 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results EPS Bridge – Q3 vs. Guidance Midpoint $1.54 $1.61 -0.01 +0.03 +0.01 +0.01 +0.03 Q3 Guidance Midpoint Operational Performance Other Expense Taxes (37.1% vs 37.5%) WAS Currency (-25¢ vs -24¢) Q3 Reported
Slide 5: Consolidated Gross Margin Change
5 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results Consolidated Gross Margin Change +0.2% 16.7% 17.1% Q3 2014 Permanent Recruitment Currency Impact Q3 2015 Americas Southern Europe Northern Europe APME Mix/Rounding Americas Southern Europe Northern Europe APME 10 1 12 1 10 1 (20
Slide 6: Business Line Gross Profit – Q3 2015
6 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results $544M 64% $168M 20% $96M 11% $44M 5% $852M Growth in CC % Business Line Gross Profit – Q3 2015 █ Manpower █ Experis █ ManpowerGroup - Total █ ManpowerGroup Solutions █ Right Management 4 12 17 7 7
Slide 7: SG&A Expense Bridge – Q3 YoY
7 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results SG&A Expense Bridge – Q3 YoY (in millions of USD) (1) This was unfavorably impacted 30 bps due to the effect of currency exchange rates on our business mix. In constant currency, SG&A as a % of Revenue was 12.7%. 693.3 645.8 +36
Slide 8: Americas Segment Q3 Financial Highlights
8 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results 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. Q3 Financial Highlights 4% Revenue
Slide 9: Americas – Q3 Revenue Growth YoY
9 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results Americas – Q3 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue -4% -8% 35% -14% -4% 15% 50% 9% US Mexico Argentina Other 68% 12% 6% 14%
Slide 10: Southern Europe Segment Q3 Financial Highlights
10 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results Q3 Financial Highlights 9% Revenue $1.8B 8% CC 5% OUP $100M 13% CC 30 bps OUP Margin 5.5% Southern Europe Segment (37% of Revenue)
Slide 11: Southern Europe – Q3 Revenue Growth YoY
11 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results Southern Europe – Q3 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue -15% 10% 8% -9% 2% 31% 29% 4% France Italy Spain Other 68% 18% 8% 6%
Slide 12: Northern Europe Segment Q3 Financial Highlights
12 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results Q3 Financial Highlights 12% Revenue $1.4B 3% CC 15% OUP $50M 3% CC 10 bps OUP Margin 3.7% Northern Europe Segment (28% of Revenue)
Slide 13: Northern Europe – Q3 Revenue Growth YoY
13 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results -6% -19% 7% -18% -19% -22% 1% 1% 27% -2% -3% -2% UK Nordics Germany Netherlands Belgium Other 38% 18% 15% 9% 6% 14% Northern Europe – Q3 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue (1) On an organ
Slide 14: APME Segment Q3 Financial Highlights
14 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results Q3 Financial Highlights 4% Revenue $570M 12% CC 10% OUP $24M 27% CC 50 bps OUP Margin 4.2% APME Segment (11% of Revenue)
Slide 15: APME – Q3 Revenue Growth YoY
15 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results APME – Q3 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue (1) On an organic basis, Australia/NZ revenue decreased 23% (-2% in CC). (1) -14% -3% 6% 1% 23% 15% Japan Australia/NZ Other 32% 26% 42%
Slide 16: Right Management Segment Q3 Financial Highlights
16 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results Right Management Segment (1% of Revenue) Q3 Financial Highlights 7% Revenue $67M 1% CC 72% OUP $11M 75% CC 730 bps OUP Margin 16.0%
Slide 17: Cash Flow Summary – Nine Months YTD
17 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results Cash Flow Summary – 9 Months YTD (in millions of USD) 2015 2014 Net Earnings 295 310 Non-cash Provisions and Other 161 117 Change in Operating Assets/Liabilities (173) (322) Capital Expenditures (33) (33) Free Cash Flow 250 72
Slide 18: Balance Sheet Highlights
18 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt (Cash) 22% 24% 15% 14% 13% 13% 25% 0% 10% 20% 30% 2011 2012 2013 2014 Q1 Q2 Q3 2015 120 122 -220 -231 --207 -37 226
Slide 19: Debt Notes and Revolving Credit Agreement
19 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results (1) On September 11, 2015, we offered and sold €400.0M aggregate principal amount of notes with a coupon of 1.875% and a maturity date of September 11, 2022. The notes were issued at a price of 99.753% to yield an effective int
Slide 20: Fourth Quarter Outlook
20 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results Fourth Quarter Outlook Revenue Total Down 1-3% (Up 6-8% CC) Americas Down 1-3% (Up 3-5% CC) Southern Europe Flat/Down 2% (Up 8-10% CC) Northern Europe Down 3-5% (Up 5-7% CC) APME Up 1-3% (Up 11-13% CC) Right Management Down 4-6
Slide 21: Key Take Aways
21 ManpowerGroup | October 2015 ManpowerGroup 2015 Third Quarter Results Key Take Aways Solid quarterly performance; strong execution through our focus on disciplined pricing coupled with efficiency and productivity. With our global footprint, market leading coverage of emerging markets, strong glob