Attached files
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| EX-99.1 - EXHIBIT 99.1 - ManpowerGroup Inc. | ex123116991pressrelease.htm |
| 8-K - 8-K - ManpowerGroup Inc. | man-123116x8k.htm |
ManpowerGroup Fourth Quarter Results
January 31, 2017
Exhibit 99.2
FORWARD-LOOKING STATEMENT
This presentation includes forward-looking statements
which are subject to known and unknown risks and
uncertainties. Actual results might differ materially from
those projected in the forward-looking statements.
Additional information concerning factors that could
cause actual results to materially differ from those in the
forward-looking statements can be found in the
Company’s Annual Report on Form 10-K for the period
ended December 31, 2013. Forward-looking statements
can be identified by forward-looking words such as
“expect,” “anticipate,” “intend,” “plan,” “may,” “will,”
“believe,” “seek,” “estimate,” and similar expressions. In
this presentation, references to road map and journey to
4% are also intended to be forward-looking statements.
Please note that ManpowerGroup’s 2013 Annual report is
available online at www.manpowergroup.com in the
section titled “Investor Relations.”
contain statements, cluding financial
projections, that are forward-looki g in nature. These
stat me s are based on managements’ current
expectations or beliefs, and are subject to known and
unknown r sks and u certainties regarding expected
fut r res lts. Actual results might differ materially from
those projected in the forward-looking statements.
Additio al inform tion c ncerning factors tha could
cause actual results to materially differ from thos in the
forward-look ng statements is contained in the
ManpowerGrou Inc. A nual Report on Form 10-K dated
D c mber 31, 2015, which information is incorporated
herein by referenc , and such other factors as may be
described from tim to tim in the Company’s SEC
filings. Any forward-looking statements in this
pr sentation speak only as of the date hereof. The
Company assumes no obligation to update or revise any
forward-looking statements.
2 ManpowerGroup January 2017
January 2017 3 ManpowerGroup
Throughout this presentation, the difference between reported variances and Constant Currency (CC) variances represents the
impact of changes in currency on our financial results. Constant Currency is further explained in the Annual Report on our Web site.
As
Reported
Excluding PY
Non-recurring
Items(1)
Q4 Financial Highlights
0% 0%
Revenue $5.0B
3% CC 3% CC
20 bps 20 bps Gross Margin 17.0%
17% 7%
Operating Profit $212M
21% CC 11% CC
60 bps 30 bps OP Margin 4.3%
13% 11%
EPS $1.87
17% CC 15% CC
Consolidated Financial Highlights
ManpowerGroup 2016 Fourth Quarter Results
(1) 2015 excludes the impact of restructuring charges of $16.4M ($12.8M net of tax) and non-operating gains in other income of $11.5M ($11.0M net of tax).
January 2017 4 ManpowerGroup
As
Reported
Excluding PY
Non-recurring
Items(1)
2016 Financial Highlights
2% 2%
Revenue $19.7B
4% CC 4% CC
10 bps 10 bps Gross Margin 17.0%
9% 6%
Operating Profit $751M
11% CC 9% CC
20 bps 20 bps OP Margin 3.8%
16% 16%
EPS $6.27
19% CC 18% CC
Consolidated Financial Highlights
ManpowerGroup 2016 Fourth Quarter Results
(1) 2015 excludes the impact of restructuring charges of $16.4M ($12.8M net of tax) and non-operating gains in other income of $11.5M ($11.0M net of tax).
January 2017 5 ManpowerGroup
EPS Bridge – Q4 vs. Guidance Midpoint
ManpowerGroup 2016 Fourth Quarter Results
-0.05
-0.01
$1.69
$1.87 +0.15
+0.07
+0.02
Q4 Guidance
Midpoint
Operational
Performance
Insurance
Settlement
Tax Rate
(35.3% vs 36%)
Currency
(-7¢ vs -2¢)
Other Expense Q4 Reported
January 2017 6 ManpowerGroup
Consolidated Gross Margin Change
ManpowerGroup 2016 Fourth Quarter Results
17.2%
17.0%
Q4 2015 Staffing/Interim Right Management Currency Q4 2016
-0.2%
-0.1% +0.1%
January 2017 7 ManpowerGroup
Growth
Business Line Gross Profit – Q4 2016
█ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total
ManpowerGroup 2016 Fourth Quarter Results
$535M
64%
$169M
20%
$100M
12%
$37M
4%
$841M
-1%
2% CC
-3%
0% CC
9%
11% CC
-20%
-19% CC
-1%
2% CC
January 2017 8 ManpowerGroup
SG&A Expense Bridge – Q4 YoY
(in millions of USD)
ManpowerGroup 2016 Fourth Quarter Results
653.6
670.0
629.0
Q4 2015 Restructuring
Charges
Q4 2015
Recurring
Expenses
Currency Acquisitions Operational
Impact
Q4 2016
-16.4
-16.8
-11.6
13.5%
% of Revenue % of Revenue
12.7% 13.2%
% of Revenue
+3.8
(1) This was unfavorably impacted 10 bps due to the effect of currency exchange rates on our business mix. In constant currency, SG&A as a
% of Revenue was 12.6%.
(1)
January 2017 9 ManpowerGroup
As
Reported
Excluding PY
Restructuring
Charges(1)
Q4 Financial
Highlights
7% 7%
Revenue $1.1B
3% CC 3% CC
4% 9%
OUP $53M
0% CC 5% CC
10 bps 20 bps OUP Margin 5.0%
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.
Americas Segment
(21% of Revenue)
ManpowerGroup 2016 Fourth Quarter Results
(1) Excludes the impact of restructuring charges of $3.2M in Q4 2015.
January 2017 10 ManpowerGroup
Americas – Q4 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
ManpowerGroup 2016 Fourth Quarter Results
-9%
-9%
-27%
9%
-9%
8%
13%
7%
US
Mexico
Argentina
Other
64%
11%
5%
20%
January 2017 11 ManpowerGroup
As
Reported Q4 Financial Highlights
3%
Revenue $1.9B
5% CC
5%
OUP $102M
7% CC
0 bps OUP Margin 5.3%
Southern Europe Segment
(39% of Revenue)
ManpowerGroup 2016 Fourth Quarter Results
January 2017 12 ManpowerGroup
Southern Europe – Q4 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
ManpowerGroup 2016 Fourth Quarter Results
5%
-2%
2%
7%
6%
-1%
4%
8%
France
Italy
Spain
Other
64%
16%
7%
13%
January 2017 13 ManpowerGroup
As
Reported
Excluding PY
Restructuring
Charges(1)
Q4 Financial Highlights
2% 2%
Revenue $1.3B
6% CC 6% CC
35% 8%
OUP $49M
45% CC 16% CC
110 bps 40 bps OUP Margin 3.8%
Northern Europe Segment
(26% of Revenue)
ManpowerGroup 2016 Fourth Quarter Results
(1) Excludes the impact of restructuring charges of $9.0M in Q4 2015.
January 2017 14 ManpowerGroup
-20%
6%
3%
34%
18%
-7%
-2%
9%
5%
36%
20%
-6%
UK
Nordics
Germany
Netherlands
Belgium
Other
31%
21%
20%
14%
8%
6%
Northern Europe – Q4 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
(1) On an organic basis, revenue for the Nordics increased 4% (+6% in CC) and the Netherlands increased 21% (+23% in CC).
ManpowerGroup 2016 Fourth Quarter Results
(1)
(1)
January 2017 15 ManpowerGroup
As
Reported
Excluding PY
Restructuring
Charges(1)
Q4 Financial Highlights
9% 9%
Revenue $630M
5% CC 5% CC
18% 2%
OUP $22M
14% CC 2% CC
20 bps 30 bps OUP Margin 3.4%
APME Segment
(13% of Revenue)
ManpowerGroup 2016 Fourth Quarter Results
(1) Excludes the impact of restructuring charges of $2.9M in Q4 2015.
January 2017 16 ManpowerGroup
APME – Q4 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
ManpowerGroup 2016 Fourth Quarter Results
16%
0%
9%
4%
-4%
11%
Japan
Australia/NZ
Other
34%
23%
43%
January 2017 17 ManpowerGroup
As
Reported
Excluding PY
Restructuring
Charges(1)
Q4 Financial Highlights
17% 17%
Revenue $59M
14% CC 14% CC
16% 3%
OUP $12M
20% CC 7% CC
570 bps 390 bps OUP Margin 20.3%
Right Management Segment
(1% of Revenue)
ManpowerGroup 2016 Fourth Quarter Results
(1) Excludes the impact of restructuring charges of $1.3M in Q4 2015.
January 2017 18 ManpowerGroup
Cash Flow Summary – Full Year
ManpowerGroup 2016 Fourth Quarter Results
(in millions of USD) 2016 2015
Net Earnings 444 419
Non-cash Provisions and Other 206 209
Change in Operating Assets/Liabilities (50) (117)
Capital Expenditures (57) (52)
Free Cash Flow 543 459
Change in Debt (7) 456
Acquisitions of Businesses
net of cash acquired (58) (260)
Other Equity Transactions 13 103
Repurchases of Common Stock (482) (580)
Dividends Paid (118) (121)
Effect of Exchange Rate Changes (24) (38)
Other 1 12
Change in Cash (132) 31
January 2017 19 ManpowerGroup
Balance Sheet Highlights
Total Debt
(in millions of USD)
Total Debt to
Total Capitalization
Total Debt
Net Debt (Cash)
ManpowerGroup 2016 Fourth Quarter Results
120 -221 -231 125 132
308 373 227
768
516 468
855 880 854 876 825
-400
0
400
800
1,200
2012 2013 2014 2015 Q1 Q2 Q3 Q4
2016
23%
15% 14%
24% 25% 25% 26% 25%
0%
10%
20%
30%
2012 2013 2014 2015 Q1 Q2 Q3 Q4
2016
January 2017 20 ManpowerGroup
(1) The $600M agreement requires that we comply with a Leverage Ratio (net 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 customary restrictive covenants. As defined in the agreement, we had a net Debt-to-EBITDA ratio of
0.75 and a fixed charge coverage ratio of 4.94 as of December 31, 2016. As of December 31, 2016, there were $0.8M of standby letters of credit
issued under the agreement.
(2) Represents subsidiary uncommitted lines of credit & overdraft facilities, which total $281.5M. Total subsidiary borrowings are limited to $300M due to
restrictions in our Revolving Credit Facility, with the exception of Q3 when subsidiary borrowings are limited to $600M.
Interest
Rate
Maturity
Date
Total
Outstanding
Remaining
Available
Euro Notes - €350M 4.505% Jun 2018 367 -
Euro Notes - €400M 1.913% Sep 2022 418 -
Revolving Credit Agreement 1.77% Sep 2020 - 599
Uncommitted lines and Other Various Various 40 241
Total Debt 825 840
Debt and Credit Facilities – December 31, 2016
(in millions of USD)
(2)
(1)
ManpowerGroup 2016 Fourth Quarter Results
January 2017 21 ManpowerGroup
First Quarter Outlook
ManpowerGroup 2016 Fourth Quarter Results
Revenue Total Up 1-3% (Up 5-7% CC)
Americas Down 2-4% (Down 1-3% CC)
Southern Europe Up 4-6% (Up 8-10% CC)
Northern Europe Up 1-3% (Up 9-11% CC)
APME Up 4-6% (Up 4-6% CC)
Right Management Down 11-13% (Down 9-11% CC)
Gross Profit Margin 16.6 – 16.8%
Operating Profit Margin 2.8 – 3.0%
Tax Rate 40.0%
EPS $1.06 – $1.14 (unfavorable $0.05 currency)
January 2017 22 ManpowerGroup
ManpowerGroup 2016 Fourth Quarter Results
Our Journey to 4% EBITA...
2016 EBITA margin of 4.0%, an all-time record and reaching our target!
Above analysis excludes restructuring charges and other non-recurring items in 2012.
+0.6%
2.4%
4.0%
+0.7%
2012 Gross Margin
(organic)
Cost
Recalibration
Enhanced
Productivity
on OCC
growth
of 15%
+0.3%
+0.9%
2.4%
4.0%
+0.6%
2012 Gross Margin
(organic)
2013-14
Cost
Recalibration
Plan
Enhanced
Productivity
on OCC
growth
of 7%
2016
+0.1%
As originally introduced in February 2013
January 2017 23 ManpowerGroup
Key Take Aways
Strong performance in the fourth quarter, with good top line growth and strong
bottom line performance. Continued slow growth environment with improving
trends in several European markets.
The current market conditions require a great focus on execution and operational
discipline; we will focus on driving revenue growth aligned with our strategies and
improving operational efficiency and productivity enhanced by technology.
In this uncertain, slow growth environment, the breadth, global scale, and
innovation of our services and solutions help our clients reach their business
objectives.
ManpowerGroup 2016 Fourth Quarter Results