Slide 1: Fourth Quarter Results January 30, 2015
ManpowerGroup Fourth Quarter Results January 30, 2015
Slide 2: Forward-Looking Statements
ManpowerGroup | January 2015 * Forward-Looking Statements 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 uncertainti
Slide 3: Q4 Consolidated Financial Highlights
ManpowerGroup | January 2015 * As Reported Excluding PY Restructuring Charges Q4 Financial Highlights 2% 2% Revenue $5.1B 5% CC 5% CC Revenue $5.1B 10 bps 10 bps Gross Margin 17.0% 16% 0% Operating Profit $193M 27% CC 9% CC Operating Profit $193M 60 bps 10 bps OP Margin 3.8% 18% 1% EPS $1.47 28% CC
Slide 4: Regional Average Daily Revenue Trends
ManpowerGroup | January 2015 * Regional Average Daily Revenue Trends Year-on-year percent change in constant currency
Slide 5: EPS Bridge – Q4 vs. Guidance Midpoint
ManpowerGroup | January 2015 * EPS Bridge – Q4 vs. Guidance Midpoint
Slide 6: Consolidated Gross Margin Change
ManpowerGroup | January 2015 * Consolidated Gross Margin Change
Slide 7: Business Line Gross Profit Growth – Q4 2014
ManpowerGroup | January 2015 * Growth in CC % Business Line Gross Profit – Q4 2014 █ Manpower █ Experis █ ManpowerGroup - Total █ ManpowerGroup Solutions █ Right Management
Slide 8: SG&A Expense Bridge – Q4 YoY
ManpowerGroup | January 2015 * SG&A Expense Bridge – Q4 YoY (in millions of USD) 13.2% % of Revenue 13.2% % of Revenue
Slide 9: SG&A Expense Bridge – YTD YoY
ManpowerGroup | January 2015 * SG&A Expense Bridge –YTD YoY (in millions of USD) Productivity Gain 13.3% % of Revenue 13.7% % of Revenue
Slide 10: Americas Segment Q4 Financial Highlights
ManpowerGroup | January 2015 * 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. As Reported Excluding Non-Recurring Items Q4 Financial Highlights 3% 3% Reve
Slide 11: Americas – Q4 Revenue Growth YoY
ManpowerGroup | January 2015 * Americas – Q4 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue
Slide 12: Southern Europe Segment Q4 Financial Highlights
ManpowerGroup | January 2015 * As Reported Excluding PY Restructuring Charges Q4 Financial Highlights 6% 6% Revenue $1.8B 3% CC 3% CC Revenue $1.8B 1% 1% OUP $92M 11% CC 7% CC OUP $92M 40 bps 20 bps OUP Margin 5.1% Southern Europe Segment (36% of Revenue) Included in these amounts is France, which h
Slide 13: Southern Europe – Q4 Revenue Growth YoY
ManpowerGroup | January 2015 * Southern Europe – Q4 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue
Slide 14: Northern Europe Segment Q4 Financial Highlights
ManpowerGroup | January 2015 * As Reported Excluding PY Restructuring Charges Q4 Financial Highlights 1% 1% Revenue $1.5B 7% CC 7% CC Revenue $1.5B 18% 3% OUP $54M 34% CC 9% CC OUP $54M 60 bps 10 bps OUP Margin 3.6% Northern Europe Segment (29% of Revenue) Excludes the impact of restructuring charge
Slide 15: Northern Europe – Q4 Revenue Growth YoY
ManpowerGroup | January 2015 * Northern Europe – Q4 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue
Slide 16: APME Segment Q4 Financial Highlights
ManpowerGroup | January 2015 * As Reported Excluding PY Restructuring Charges Q4 Financial Highlights 4% 4% Revenue $567M 3% CC 3% CC Revenue $567M 29% 14% OUP $21M 38% CC 22% CC OUP $21M 100 bps 60 bps OUP Margin 3.8% APME Segment (11% of Revenue) Excludes the impact of restructuring charges of $2.
Slide 17: APME – Q4 Revenue Growth YoY
ManpowerGroup | January 2015 * APME – Q4 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue
Slide 18: Right Management Segment
ManpowerGroup | January 2015 * Right Management Segment (1% of Revenue) Excludes the impact of restructuring charges of $4.7M in Q4 2013.
Slide 19: Cash Flow Summary – Full Year
ManpowerGroup | January 2015 * Cash Flow Summary – Full Year
Slide 20: Balance Sheet Highlights
ManpowerGroup | January 2015 * Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt (Cash)
Slide 21: Credit Facilities – December 31, 2014
ManpowerGroup | January 2015 * Credit Facilities – December 31, 2014 (in millions of USD) (1) (2) The $600M agreement requires that we comply with a Leverage Ratio (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 customar
Slide 22: First Quarter Outlook
ManpowerGroup | January 2015 * First Quarter Outlook
Slide 23: Where are we on our journey to 4%...
ManpowerGroup | January 2015 * Where are we on our journey to 4%... 2014 EBITA margin of 3.6%. 120 basis point improvement since 2012 and ahead of our expectations. EBITA of $753M is at an all-time record and EBITA margin is the highest in more than 15 years. Above analysis excludes restructuring ch
Slide 24: Key Take-Aways
ManpowerGroup | January 2015 * Key Take-Aways Strong 2014 performance with disciplined execution and focus on our strategic initiatives. Good progress on our journey to 4% EBITA margin. Currency headwinds expected in 2015; will impact reported earnings but not our underlying financial performance. W