Manpowergroup · NYSE:MAN
Manpowergroup — Q4 2013 Earnings Presentation
26 slides from Manpowergroup's earnings presentation, Jan 30, 2014
Slide 1: ManpowerGroup Fourth Quarter Results
ManpowerGroup Fourth Quarter Results January 30, 2014
Slide 2: Forward-Looking Statements
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 uncertainties regarding expected future re
Slide 3: Q4 Financial Highlights: Consolidated
As Reported Excluding Non-recurring Items Q4 Financial Highlights 1% 1% Revenue $5.3B 1% CC 1% CC Revenue $5.3B 0 bps 0 bps Gross Margin 16.9% 59% 47% Operating Profit $167M 57% CC 46% CC Operating Profit $167M 120 bps 120 bps OP Margin 3.2% 84% 64% EPS $1.25 82% CC 63% CC EPS $1.25 Throughout this
Slide 4: EPS Bridge – Q4 vs. Guidance Midpoint
EPS Bridge – Q4 vs. Guidance Midpoint Includes restructuring charges as follows: Americas ($6.6M), Southern Europe ($2.7M), Northern Europe ($10.2), APME ($2.3M), Right Management ($4.7M) (1) * + 0.01 + 0.10 + 0.05 - 0.01 + 0.02
Slide 5: Operating Results by Segment Q4 2013
(in millions of USD, except EPS) As Reported Restructuring Excluding Restructuring Americas 39.4 3.5% 6.6 46.0 4.1% Southern Europe 91.0 4.7% 2.7 93.7 4.9% Northern Europe 45.6 3.0% 10.2 55.8 3.7% APME 16.6 2.8% 2.3 18.9 3.2% Right Management 6.5 7.9% 4.7 11.2 13.6% Corporate Expenses & Amortization
Slide 6: Restructuring by Segment 2013
Restructuring by Segment 2013 (in millions of USD, except EPS) Q1 Q2 Q3 Q4 Total 2013 Restructuring Americas 5.9 4.4 1.1 6.6 18.0 Southern Europe 1.2 3.3 0.6 2.7 7.8 Northern Europe 17.1 9.3 2.4 10.2 39.0 APME 2.4 0.4 1.1 2.3 6.2 Right Management 3.8 2.6 2.9 4.7 14.0 Corporate Expenses & Amortizatio
Slide 7: Consolidated Gross Margin Change
Consolidated Gross Margin Change *
Slide 8: Business Line Gross Profit – Q4 2013
* $887M Growth in CC % Business Line Gross Profit – Q4 2013 █ Manpower █ Experis █ ManpowerGroup - Total █ ManpowerGroup Solutions █ Right Management
Slide 9: SG&A Expense Bridge – Q4 YoY
SG&A Expense Bridge – Q4 YoY (in millions of USD) * Productivity Gain 13.2% % of Revenue 14.3% % of Revenue
Slide 10: SG&A Expense Bridge – YTD YoY
SG&A Expense Bridge –YTD YoY (in millions of USD) * Productivity Gain 13.7% % of Revenue 14.4% % of Revenue
Slide 11: Simplification Plan Savings
Simplification Plan Savings Cost recalibration exceeded target. Further productivity improvement as we refine delivery opportunity. $40M of additional savings will be recognized in our 2014 earnings ($192M - $152M). 2013 SG&A savings in P/L $80M $150M $152M 2013 SG&A run rate reduction $125M $180M $
Slide 12: Americas Segment Q4 Financial Highlights
As Reported Excluding Non-recurring Items Q4 Financial Highlights 2% 2% Revenue $1.1B 1% CC 1% CC Revenue $1.1B 11% 26% OUP $39M 13% CC 29% CC OUP $39M 40 bps 90 bps OUP Margin 3.5% * (1) Americas Segment (22% of Revenue) Included in these amounts is the US, which had revenue of $751M (flat) and OUP
Slide 13: Americas – Q4 Revenue Growth YoY
Americas – Q4 Revenue Growth YoY * Revenue Growth - CC Revenue Growth % of Segment Revenue 66% 13% 5% 16%
Slide 14: Southern Europe Segment Q4 Financial Highlights
As Reported Excluding Non-recurring Items Q4 Financial Highlights 8% 8% Revenue $1.9B 3% CC 3% CC Revenue $1.9B 98% 92% OUP $91M 88% CC 83% CC OUP $91M 210 bps 210 bps OUP Margin 4.7% * (1) Southern Europe Segment (37% of Revenue) Included in these amounts is France, which had revenue of $1.4B (+1%
Slide 15: Southern Europe – Q4 Revenue Growth YoY
Southern Europe – Q4 Revenue Growth YoY * Revenue Growth - CC Revenue Growth % of Segment Revenue 73% 15% 5% 7% (1) On an organic basis, Spain revenue increased 21% (15% in CC).
Slide 16: Northern Europe Segment Q4 Financial Highlights
As Reported Excluding Non-recurring Items Q4 Financial Highlights 2% 2% Revenue $1.5B 1% CC 1% CC Revenue $1.5B 33% 22% OUP $46M 32% CC 21% CC OUP $46M 70 bps 60 bps OUP Margin 3.0% * Northern Europe Segment (29% of Revenue) (1) Excludes the impact of restructuring charges of $10.2M in Q4 2013 and $
Slide 17: Northern Europe – Q4 Revenue Growth YoY
Northern Europe – Q4 Revenue Growth YoY * Revenue Growth - CC Revenue Growth % of Segment Revenue 32% 22% 12% 10% 17% 7%
Slide 18: APME Segment Q4 Financial Highlights
As Reported Excluding Non-recurring Items Q4 Financial Highlights 15% 15% Revenue $590M 5% CC 5% CC Revenue $590M 42% 35% OUP $17M 35% CC 27% CC OUP $17M 130 bps 90 bps OUP Margin 2.8% APME Segment (11% of Revenue) * (1) Excludes the impact of restructuring charges of $2.3M in Q4 2013 and $0.4M in Q
Slide 19: APME – Q4 Revenue Growth YoY
APME – Q4 Revenue Growth YoY * Revenue Growth - CC Revenue Growth % of Segment Revenue 38% 25% 37%
Slide 20: Right Management Segment Q4 Financial Highlights
* Right Management Segment (1% of Revenue) As Reported Excluding Non-recurring Items Q4 Financial Highlights 3% 3% Revenue $82M 2% CC 2% CC Revenue $82M 21% 28% OUP $7M 21% CC 28% CC OUP $7M 180 bps 330 bps OUP Margin 7.9% (1) Excludes the impact of restructuring charges of $4.7M in Q4 2013 and $0.5
Slide 21: Cash Flow Summary – Full Year
(in millions of USD) 2013 2012 Net Earnings 288 198 Non-cash Provisions and Other 160 148 Change in Operating Assets/Liabilities (51) (14) Capital Expenditures (45) (72) Free Cash Flow 352 260 Change in Debt (271) 42 Acquisitions of Businesses net of cash acquired (46) (49) Proceeds from Share-Based
Slide 22: Balance Sheet Highlights
Balance Sheet Highlights * Total Debt ($ in millions) Total Debt to Total Capitalization Total Debt Net Debt
Slide 23: Credit Facilities – December 31, 2013
Interest Rate Maturity Date Total Outstanding Remaining Available Euro Notes - € 350M 4.505% Jun 2018 481 - Revolving Credit Agreement 1.44% Oct 2018 - 599 Uncommitted lines and Other Various Various 37 340 Total Debt 518 939 Credit Facilities – December 31, 2013 (in millions of USD) * (1) (3) The $
Slide 24: First Quarter Outlook
Revenue Total Flat/Up 2% (Flat/Up 2% CC) Americas Flat/Down 2% (Up 1-3% CC) Southern Europe Up 4-6% (Up 1-3% CC) Northern Europe Up 3-5% (Up 1-3% CC) APME Down 12-14% (Down 4-6% CC) Right Management Right Management Down 1-3% (Down 1-3% CC) Gross Profit Margin Gross Profit Margin 16.4 – 16.6% Operat
Slide 25: Recalibrating Costs: Simplify in Four Areas
Recalibrating Costs Simplify in Four Areas
Slide 26: Questions
ManpowerGroup 2013 Fourth Quarter Results Questions WORK. WORKER. WORKING. WORKFORCE. 26