Manpowergroup · NYSE:MAN
Manpowergroup — Q1 2013 Earnings Presentation
24 slides from Manpowergroup's earnings presentation, Apr 19, 2013
Slide 1: ManpowerGroup First Quarter Results
ManpowerGroup First Quarter Results April 19, 2013
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation includes forward-looking statements, including earnings projections which are subject to risks and uncertainties. Actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that
Slide 3: Q1 Consolidated Financial Highlights
As Reported Excluding Non-recurring Items Q1 Financial Highlights 6% 6% Revenue $4.8B 6% CC 6% CC Revenue $4.8B 0 bps 0 bps Gross Margin 16.6% 42% 5% Operating Profit $54M 41% CC 3% CC Operating Profit $54M 70 bps 10 bps OP Margin 1.1% 38% 26% EPS $.31 36% CC 28% CC EPS $.31 Throughout this presenta
Slide 4: EPS Bridge – Q1 vs. Guidance Midpoint
EPS Bridge – Q1 vs. Guidance Midpoint (1) Includes charges as follows: Americas ($5.9M), Southern Europe ($1.2M), Northern Europe ($17.1M), APME ($2.4M), Right Management ($3.8M), Corporate ($4.4M) (1) *
Slide 5: Operating Unit Profit by Segment Q1 2013
(in millions) OUP as Reported Restructuring OUP Excluding Restructuring Americas 16.1 5.9 22.0 1.5% 2.0% Southern Europe 28.3 1.2 29.5 1.8% 1.9% Northern Europe 10.6 17.1 27.7 0.8% 2.0% APME 14.8 2.4 17.2 2.3% 2.7% Right Management 2.0 3.8 5.8 2.7% 7.6% Corporate expenses (24.4) 4.4 (20.0) Intangibl
Slide 6: Simplification Plan Savings
Simplification Plan Savings Total annualized SG&A reduction of $125M (4%) by December 2013. All regions and corporate impacted. Targeted 2013 P/L savings of $80M. Restructuring charges of $50M - $60M in 2013. (Millions) *
Slide 7: Consolidated Gross Margin Change
Consolidated Gross Margin Change *
Slide 8: Business Line Gross Profit – Q1 2013
* $790M Growth in CC % Business Line Gross Profit – Q1 2013 █ Manpower █ Experis █ ManpowerGroup - Total █ ManpowerGroup Solutions █ Right Management
Slide 9: SG&A Expense Bridge – Q1 YoY
SG&A Expense Bridge – Q1 YoY (in millions of USD) *
Slide 10: Americas Segment Q1 Financial Highlights
As Reported Excluding Non-recurring Items Q1 Financial Highlights 4% 4% Revenue $1.1B 3% CC 3% CC Revenue $1.1B 27% 1% OUP $16M 28% CC 0% CC OUP $16M 50 bps 0 bps OUP Margin 1.5% * (1) Americas Segment (23% of Revenue) Included in these amounts is the US, which had revenue of $706M (-4%) and OUP of
Slide 11: Americas – Q1 Revenue Growth YoY
Americas – Q1 Revenue Growth YoY * Revenue Growth - CC Revenue Growth % of Segment Revenue 65% 13% 6% 16%
Slide 12: Southern Europe Segment Q1 Financial Highlights
As Reported Excluding Non-recurring Items Q1 Financial Highlights 9% 9% Revenue $1.6B 10% CC 10% CC Revenue $1.6B 21% 26% OUP $28M 21% CC 26% CC OUP $28M 50 bps 60 bps OUP Margin 1.8% * (1) Southern Europe Segment (33% of Revenue) Included in these amounts is France, which had revenue of $1.1B (-12%
Slide 13: Southern Europe – Q1 Revenue Growth YoY
Southern Europe – Q1 Revenue Growth YoY * Revenue Growth - CC Revenue Growth % of Segment Revenue 72% 16% 5% 7% (1) (1) On an organic basis, France revenue decreased 12% (-13% in CC).
Slide 14: Northern Europe Segment Q1 Financial Highlights
As Reported Excluding Non-recurring Items Q1 Financial Highlights 5% 5% Revenue $1.4B 6% CC 6% CC Revenue $1.4B 76% 37% OUP $11M 76% CC 37% CC OUP $11M 220 bps 100 bps OUP Margin 0.8% * Northern Europe Segment (29% of Revenue) (1) Excludes the impact of restructuring charges of $17.1M in Q1 2013.
Slide 15: Northern Europe – Q1 Revenue Growth YoY
Northern Europe – Q1 Revenue Growth YoY * Revenue Growth - CC Revenue Growth % of Segment Revenue 25% 23% 12% 9% 24% 7%
Slide 16: APME Segment Q1 Financial Highlights
As Reported Excluding Non-recurring Items Q1 Financial Highlights 7% 7% Revenue $633M 1% CC 1% CC Revenue $633M 25% 13% OUP $15M 19% CC 7% CC OUP $15M 60 bps 20 bps OUP Margin 2.3% APME Segment (13% of Revenue) * (1) Excludes the impact of restructuring charges of $2.4M in Q1 2013.
Slide 17: APME – Q1 Revenue Growth YoY
APME – Q1 Revenue Growth YoY * Revenue Growth - CC Revenue Growth % of Segment Revenue 38% 26% 36%
Slide 18: Right Management Segment Q1 Financial Highlights
* Right Management Segment (2% of Revenue) As Reported Excluding Non-recurring Items Q1 Financial Highlights 4% 4% Revenue $77M 3% CC 3% CC Revenue $77M 18% 134% OUP $2M 8% CC 143% CC OUP $2M 40 bps 450 bps OUP Margin 2.7% (1) Excludes the impact of restructuring charges of $3.8M in Q1 2013
Slide 19: Cash Flow Summary – Q1
($ in millions) 2013 2012 Net Earnings 24 40 Non-cash Provisions and Other 39 35 Change in Operating Assets/Liabilities (125) (96) Capital Expenditures (13) (19) Free Cash Flow (75) (40) Change in Debt 2 1 Effect of Exchange Rate Changes (3) 15 Other 11 (3) Change in Cash (65) (27) Cash Flow Summary
Slide 20: Balance Sheet Highlights
Balance Sheet Highlights * Total Debt ($ in millions) Total Debt to Total Capitalization Total Debt Net Debt
Slide 21: Credit Facilities
Interest Rate Maturity Date Total Outstanding at 3/31/13 Remaining Available at 3/31/13 Euro Notes: - Euro 200M 4.86% Jun 2013 256 - - Euro 350M 4.505% Jun 2018 449 - Revolving Credit Agreement 1.48% Oct 2016 - 799 Uncommitted lines and Other Various Various 46 318 Total Debt 751 1,117 Credit Facili
Slide 22: Second Quarter Outlook
Revenue Total Down 3-5% (Down 3-5% CC) Americas Up/Down 1% (Up/Down 1% CC) Southern Europe Down 7-9% (Down 8-10% CC) Northern Europe Down 1-3% (Down 1-3% CC) APME Down 5-7% (Down 0-2% CC) Right Management Right Management Down 2-4% (Down 1-3% CC) Gross Profit Margin Gross Profit Margin 16.6 – 16.8%
Slide 23: Driving Results Through Our Organization & People
3 First Quarter Results DIFFERENTIATION bring to our clie building our brand and capabilities to do more while improving gross margins Driving Results Through Our Organization & People ing
Slide 24: Questions
ManpowerGroup 2013 First Quarter Results Questions FYE by WORK. WORKER. WORKING. WORKFORCE. 24