Slide 1: ManpowerGroup Fourth Quarter Results
ManpowerGroup Fourth Quarter Results | January 31, 2020 Exhibit 99.2
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation contains statements, including financial projections, that are forward-looking in nature. These statements are based on management’s current expectations or beliefs, and are subject to known and unknown risks and uncertainties regarding expected future res
Slide 3: Q4 Consolidated Financial Highlights
As Reported Q4 Financial Highlights 4% Revenue $5.2B 2% CC 20 bps Gross Margin 16.5% 12% Operating Profit $192M 10% CC 30 bps OP Margin 3.7% 8% EPS $2.33 6% CC Consolidated Financial Highlights ManpowerGroup 2019 Fourth Quarter Results
Slide 4: 2019 Consolidated Financial Highlights
Consolidated Financial Highlights ManpowerGroup 2019 Fourth Quarter Results As Reported As Adjusted(1) 2019 Financial Highlights 5% 5% Revenue $20.9B 1% CC 1% CC 10 bps 10 bps Gross Margin 16.2% 19% 14% Operating Profit $645M ($720M as adjusted) 16% CC 10% CC 50 bps 30 bps OP Margin 3.1% (3.5% as ad
Slide 5: EPS Bridge – Q4 vs. Guidance Midpoint
EPS Bridge – Q4 vs. Guidance Midpoint ManpowerGroup 2019 Fourth Quarter Results
Slide 6: Consolidated Gross Margin Change
Consolidated Gross Margin Change ManpowerGroup 2019 Fourth Quarter Results
Slide 7: Growth Business Line Gross Profit – Q4 2019
Growth Business Line Gross Profit – Q4 2019(1) (1) Business line classifications can vary by entity and are subject to change as service requirements change. ManpowerGroup 2019 Fourth Quarter Results █ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total
Slide 8: SG&A Expense Bridge – Q4 YoY
SG&A Expense Bridge – Q4 YoY (in millions of USD) ManpowerGroup 2019 Fourth 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 was 12.8% of Revenue.
Slide 9: Americas Segment Q4 Financial Highlights
As Reported Q4 Financial Highlights 2% Revenue $1.1B 3% CC 4% OUP $51M 2% CC 30 bps OUP Margin 4.8% 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. America
Slide 10: Americas – Q4 Revenue Growth YoY
Revenue Growth - CC Revenue Growth % of Segment Revenue Americas – Q4 Revenue Growth YoY Average Daily Revenue Growth - CC ManpowerGroup 2019 Fourth Quarter Results On an organic basis, revenue for the US decreased 3%. (ADR on an organic basis was -3%). (1)
Slide 11: Southern Europe Segment Q4 Financial Highlights
As Reported Q4 Financial Highlights 1% Revenue $2.3B 4% CC 1% OUP $128M 4% CC 0 bps OUP Margin 5.5% Southern Europe Segment (45% of Revenue) ManpowerGroup 2019 Fourth Quarter Results On an organic basis, revenue for Southern Europe decreased 3% or -1% in constant currency. (1)
Slide 12: Southern Europe – Q4 Revenue Growth YoY
Southern Europe – Q4 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue Average Daily Revenue Growth - CC ManpowerGroup 2019 Fourth Quarter Results
Slide 13: Northern Europe Segment Q4 Financial Highlights
Northern Europe Segment (22% of Revenue) ManpowerGroup 2019 Fourth Quarter Results As Reported Q4 Financial Highlights 9% Revenue $1.2B 6% CC 49% OUP $21M 48% CC 140 bps OUP Margin 1.8%
Slide 14: Northern Europe – Q4 Revenue Growth YoY
Northern Europe – Q4 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue Average Daily Revenue Growth - CC ManpowerGroup 2019 Fourth Quarter Results (1) On an organic basis, revenue for the Netherlands decreased 17% or -15% in constant currency (ADR in organic constant currenc
Slide 15: APME Segment Q4 Financial Highlights
APME Segment (12% of Revenue) ManpowerGroup 2019 Fourth Quarter Results As Reported Q4 Financial Highlights 19% Revenue $597M 19% CC 23% OUP $21M 25% CC 20 bps OUP Margin 3.5% (1) On an organic basis excluding Greater China, revenue for APME was flat or -1% in constant currency.
Slide 16: APME – Q4 Revenue Growth YoY
APME – Q4 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 9% or +8% in constant currency (ADR in organic constant currency is +6%). (1) ManpowerGroup 2019 Fourth
Slide 17: Right Management Segment Q4 Financial Highlights
Right Management Segment (1% of Revenue) ManpowerGroup 2019 Fourth Quarter Results As Reported Q4 Financial Highlights 4% Revenue $52M 5% CC 22% OUP $11M 23% CC 330 bps OUP Margin 21.9%
Slide 18: Cash Flow Summary – Full Year
Cash Flow Summary – Full Year ManpowerGroup 2019 Fourth Quarter Results
Slide 19: Balance Sheet Highlights
Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt (Cash) ManpowerGroup 2019 Fourth Quarter Results
Slide 20: Debt and Credit Facilities – December 31, 2019
Interest Rate Maturity Date Total Outstanding Remaining Available Euro Notes - €500M 1.809% Jun 2026 556 - Euro Notes - €400M 1.913% Sep 2022 447 - Revolving Credit Agreement 2.76% Jun 2023 - 599 Uncommitted lines and Other Various Various 70 254 Total Debt 1,073 853 Debt and Credit Facilities – Dec
Slide 21: Talent Solutions combines three global offerings
ManpowerGroup 2019 Fourth Quarter Results Talent Solutions combines three of our current global offerings to leverage our deep expertise in RPO, Tapfin MSP and Right Management. We intend to create higher value and new solutions addressing our clients’ complex global workforce needs. .
Slide 22: Integrated HR tech stack provides competitive advantage
ManpowerGroup 2019 Fourth Quarter Results ManpowerGroup‘s integrated HR tech stack provides competitive advantage with the rapid deployment of best in class technology together with deep and broad workforce expertise. Predict: Help people understand their potential and anticipate an organization’s w
Slide 23: MyPath is building the talent pool of the future
ManpowerGroup 2019 Fourth Quarter Results MyPath is building the talent pool of the future - providing people with career progression, developing skills for growth sectors, increasing earning potential through fast-track learning, on the job training and certification. France USA India Mexico Rapid
Slide 24: First Quarter 2020 Outlook
First Quarter 2020 Outlook ManpowerGroup 2019 Fourth Quarter Results Revenue Total Down 2-4% (Flat/Down 2% CC) Americas Up 1-3% (Up 3-5% CC) Southern Europe Down/Up 1% (Up 1-3% CC) Northern Europe Down 5-7% (Down 3-5% CC) APME Down 14-16% (Down 14-16% CC) Gross Profit Margin 16.1 – 16.3% Operating P
Slide 25: Fourth quarter performance summary and strategy
Our fourth quarter performance reflects a challenging revenue environment in Europe, partially offset by growth in the Americas, Right Management and most markets within APME. Today we are launching our new brand Talent Solutions, combining three of our current global offerings to leverage our deep
Slide 26: Appendix
Appendix January 2020 26 ManpowerGroup
Slide 27: Restated Business Line Gross Profit based on 2020 Changes
Growth █ Manpower █ Experis █ Talent Solutions █ ManpowerGroup – Total Restated Business Line Gross Profit based on 2020 Changes (1) (1) Business line classifications can vary by entity and are subject to change as service requirements change. ManpowerGroup 2019 Fourth Quarter Results Q4 2019 $860M