Manpowergroup · NYSE:MAN
Manpowergroup — Q4 2023 Earnings Presentation
25 slides from Manpowergroup's earnings presentation, Jan 30, 2024
Slide 1: ManpowerGroup Fourth Quarter Results
ManpowerGroup Fourth Quarter Results January 30, 2024
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation contains statements, including statements regarding economic and geopolitical uncertainty, financial outlook, including any residual costs resulting from the wind-down of the Proservia business in Germany, labor demand, including demand for green skills an
Slide 3: Consolidated Financial Highlights Q4
ManpowerGroup 2023 Fourth Quarter Results Consolidated Financial Highlights (1) As Reported As Adjusted Q4 Financial Highlights -4% -4% -5% CC -5% CC Revenue $4.6B -70 bps -70 bps Gross Margin 17.5% (2) -85% -30% -83% CC -30% CC EBITA $24M ($116M as adjusted) (2) -180 bps -100 bps EBITA Margin 0.5%
Slide 4: Consolidated Financial Highlights 2023
ManpowerGroup 2023 Fourth Quarter Results Consolidated Financial Highlights (1) As Reported As Adjusted 2023 Financial Highlights -5% -5% -4% CC -4% CC Revenue $18.9B -20 bps -20 bps Gross Margin 17.8% (2) -48% -29% -46% CC -27% CC EBITA $346M ($497M as adjusted) (2) -130 bps -90 bps EBITA Margin 1.
Slide 5: EPS Bridge – Q4 vs. Guidance Midpoint
ManpowerGroup 2023 Fourth Quarter Results EPS Bridge – Q4 vs. Guidance Midpoint (1) (1) Detail of items included on slide 3. ManpowerGroup | Fourth Quarter 2023 Results January 2024 | 5
Slide 6: Business Line Revenue Q4 2023
ManpowerGroup 2023 Fourth Quarter Results Business Line Revenue Q4 2023(1) 5% 0% -2% -3% -5% -10% -10% -11% -12% -14% -15% MANPOWER EXPERIS TALENT SOLUTIONS vs. 2022 reported % vs. 2022 organic CC % Experis revenues decreased in the quarter with the Manpower posted a modest organic CC revenue rate o
Slide 7: Consolidated Gross Margin Change
ManpowerGroup 2023 Fourth Quarter Results Consolidated Gross Margin Change ManpowerGroup | Fourth Quarter 2023 Results January 2024 | 7
Slide 8: Business Line Gross Profit – Q4 2023
ManpowerGroup 2023 Fourth Quarter Results Business Line Gross Profit – Q4 2023(1) █ Manpower █ Experis █ Talent Solutions █ ManpowerGroup – Total (1) Business line classifications can vary by entity and are subject to change as service requirements change. ManpowerGroup | Fourth Quarter 2023 Results
Slide 9: SG&A Expense Bridge – Q4 YoY
ManpowerGroup 2023 Fourth Quarter Results SG&A Expense Bridge – Q4 YoY (in millions of USD) (1) (2) (15.8% CC) (15.2% CC) (18.3% CC) (1) Q4 2023 includes restructuring costs of $90.0M which consists of $3.8M in the Americas, $3.4M in Southern Europe, and $82.8M in Northern Europe. Also included is $
Slide 10: Americas Segment
ManpowerGroup 2023 Fourth Quarter Results Americas Segment (23% of Revenue) (1) As Reported As Adjusted Q4 Financial Highlights -9% -9% Revenue $1.1B -4% CC -4% CC -38% -36% OUP $36M -31% CC -29% CC ($40M as adjusted) OUP Margin 3.3% -160 bps -160 bps (3.7% as adjusted) (1) Current period excludes t
Slide 11: Americas – Q4 Revenue Trend YoY
ManpowerGroup 2023 Fourth Quarter Results Americas – Q4 Revenue Trend YoY 30% Revenue Trend Revenue Trend - CC ManpowerGroup | Fourth Quarter 2023 Results January 2024 | 11
Slide 12: Southern Europe Segment
ManpowerGroup 2023 Fourth Quarter Results Southern Europe Segment (46% of Revenue) (1) As Reported As Adjusted Q4 Financial Highlights 1% 1% Revenue $2.1B -4% CC -4% CC -14% -11% OUP $91M -18% CC -16% CC ($94M as adjusted) OUP Margin 4.3% -70 bps -60 bps (4.5% as adjusted) (1) Current period exclude
Slide 13: Southern Europe – Q4 Revenue Trend YoY
ManpowerGroup 2023 Fourth Quarter Results Southern Europe – Q4 Revenue Trend YoY (1) Impact reflects business performance after adjusting for loss of revenues due to Hungary sale. ManpowerGroup | Fourth Quarter 2023 Results January 2024 | 13
Slide 14: Northern Europe Segment
ManpowerGroup 2023 Fourth Quarter Results Northern Europe Segment (19% of Revenue) (1) As Reported As Adjusted Q4 Financial Highlights -6% -6% Revenue $914M -10% CC -10% CC (2) NM(2) -78% OUP $-81M NM -81% CC (+$4M as adjusted) (2) OUP Margin -8.9% NM -130 bps (+0.4% as adjusted) (1) Current period
Slide 15: Northern Europe – Q4 Revenue Trend YoY
ManpowerGroup 2023 Fourth Quarter Results Northern Europe – Q4 Revenue Trend YoY ManpowerGroup | Fourth Quarter 2023 Results January 2024 | 15
Slide 16: APME Segment
ManpowerGroup 2023 Fourth Quarter Results APME Segment (12% of Revenue) (1) As Reported Q4 Financial Highlights -5% -3% CC Revenue $552M -1% OCC -5% -2% CC OUP $22M 0% OCC 0 bps OUP Margin 3.9% (1) Prior year period excludes restructuring costs. As adjusted to exclude these costs, OUP variance was -
Slide 17: APME – Q4 Revenue Trend YoY
ManpowerGroup 2023 Fourth Quarter Results APME – Q4 Revenue Trend YoY (1) Impact reflects business performance after adjusting for loss of revenues due to Philippines sale. ManpowerGroup | Fourth Quarter 2023 Results January 2024 | 17
Slide 18: Cash Flow Summary
ManpowerGroup 2023 Fourth Quarter Results Cash Flow Summary ManpowerGroup | Fourth Quarter 2023 Results January 2024 | 18
Slide 19: Balance Sheet Highlights
ManpowerGroup 2023 Fourth Quarter Results Balance Sheet Highlights Total Debt (in millions of USD) Total Debt Net Debt Net (Cash) Total Debt to Total Capitalization ManpowerGroup | Fourth Quarter 2023 Results January 2024 | 19
Slide 20: Debt and Credit Facilities – December 31, 2023
ManpowerGroup 2023 Fourth Quarter Results Debt and Credit Facilities – December 31, 2023 (in millions of USD) (2) Interest Maturity Total Remaining Rate Date Outstanding Available Euro Notes - €500M 1.809% Jun 2026 527 - (4) Euro Notes - €400M 3.514% Jun 2027 419 - (1)(2) Revolving Credit Agreement
Slide 21: First Quarter 2024 Outlook
ManpowerGroup 2023 Fourth Quarter Results First Quarter 2024 Outlook Revenue Total Down 5-9% (Down 4-8% CC) Americas Down 6-10% (Down 3%/Up 1% CC) Southern Down 2-6% (Down 3-7% CC) Europe Northern Down 8-12% (Down 11-15% CC) Europe APME Down 10-14% (Down 5-9% CC) (Down 4-8% OCC) Gross Profit Margin
Slide 22: Working to Change the World Report
Working to Change the World Report Our third Working to Change the World Report launched November 30, aligned to COP28 - Emphasizes our commitment to preparing millions of people for green jobs - Shares our leadership in ethical AI governance - Reduced emissions by 32% vs. 2019 baseline - Committed
Slide 23: Key Take Aways
ManpowerGroup 2023 Fourth Quarter Results Key Take Aways During the fourth quarter, operating conditions remained challenging in North America and Europe while APME and Latin America experienced solid demand for our services. Gross profit margin of 17.5% reflects resilient staffing margin trends and
Slide 24: Appendix
Appendix ManpowerGroup | Fourth Quarter 2023 Results January 2024 | 24
Slide 25: Industry Vertical Composition Based on Revenues – Q4 2023
ManpowerGroup 2023 Fourth Quarter Results Industry Vertical Composition Based on Revenues – Q4 2023 ManpowerGroup | Fourth Quarter 2023 Results January 2024 | 25