Attached files
| file | filename |
|---|---|
| EX-99.3 - EXHIBIT 99.3 - ManpowerGroup Inc. | ex993-restatement.htm |
| EX-99.1 - EXHIBIT 99.1 - ManpowerGroup Inc. | ex033118991pressrelease.htm |
| 8-K - 8-K - ManpowerGroup Inc. | man-033118x8k.htm |
ManpowerGroup First Quarter Results
April 20, 2018
Accelerating Performance
IN THE HUMAN AGE
Exhibit 99.2
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ManpowerGroup 2
ManpowerGroup 2018 First Quarter Results FORWARD-LOOKING STATEMENT
April 2018
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 results. 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 is contained in the
ManpowerGroup Inc. Annual Report on Form 10-K dated December 31, 2017,
which information is incorporated herein by reference, and such other factors
as may be described from time to time in the Company’s SEC filings. Any
forward-looking statements in this presentation speak only as of the date
hereof. The Company assumes no obligation to update or revise any forward-
looking statements.
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ManpowerGroup 3
ManpowerGroup 2018 First Quarter Results
As
Reported
Excluding
Restructuring
Costs(1)
Q1 Financial Highlights
16% 16%
Revenue $5.5B
5% CC 5% CC
60 bps
40 bps
60 bps
40 bps
Gross Margin 16.0%
20% 17% Operating Profit $154M
($178M excluding restructuring costs) 8% CC 5% CC
10 bps 0 bps OP Margin 2.8%
(3.2% excluding restructuring costs)
33% 24% EPS $1.45
($1.72 excluding restructuring costs) 20% CC 12% CC
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 Form 10-K on our Web site.
(1) Excludes the impact of restructuring costs of $24.0M ($18.1M net of tax) in Q1 2018 and $24.0M ($20.8M net of tax) in Q1 2017 .
owerGroup 2018 First Quarter Result
Consolidated Financial Highlights
April 2018
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ManpowerGroup 4
ManpowerGroup 2018 First Quarter Results owerGroup 2018 First Quarter Result
EPS Bridge – Q1 vs. Guidance Midpoint
April 2018
$1.72
$1.45
$1.64
$1.45
+0.09 +0.02 -0.03 -0.27
Q1
Guidance
Midpoint
Operational
Performance
Currency Other Expense Reported
Excluding
Restructuring
Costs
Restructuring
Costs
(including 3¢ of
currency)
Q1 Reported
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ManpowerGroup 5
ManpowerGroup 2018 First Quarter Results owerGroup 2018 First Quarter Result
Consolidated Gross Margin Change
April 2018
16.6%
16.0%
Q1 2017 Staffing/Interim Permanent
Recruitment
Right
Management
Currency Acquisitions Q1 2018
-0.5%
-0.1%
-0.2%
+0.1%
+0.1%
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ManpowerGroup 6
ManpowerGroup 2018 First Quarter Results
15%
4% CC
7%
0% CC
16%
9% CC
-14%
-17% CC
12%
3% CC
62%
20%
14%
4%
$885M Growth
█ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total
owerGroup 2018 First Quarter Result
Business Line Gross Profit – Q1 2018(1)
April 2018
(1) Business line classifications can vary by entity and are subject to change as service requirements change.
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ManpowerGroup 7
ManpowerGroup 2018 First Quarter Results owerGroup 2018 First Quarter Result
SG&A Expense Bridge – Q1 YoY
(in millions of USD)
(1) This was favorably impacted 20 bps due to the effect of currency exchange rates on our business mix. In constant currency, SG&A
excluding restructuring costs was 13.0% of Revenue and reported SG&A was 13.4% of Revenue.
(1)
April 2018
(1)
693.0
659.9
731.6
Q1 2017
Reported
Q1 2017
Restructuring
Costs
Q1 2017
Excluding
Restructuring
Costs
Currency Acquisitions Operational
Impact
Q1 2018
Excluding
Restructuring
Costs
Q1 2018
Restructuring
Costs
Q1 2018
Reported
+57.1
+24.0
% of Revenue % of Revenue
13.2%
+3.5
% of Revenue
12.8%
+11.1
-24.0
635.9
707.6
13.9% 13.4%
% of Revenue
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ManpowerGroup 8
ManpowerGroup 2018 First Quarter Results
As
Reported
Excluding
Restructuring
Costs(1)
Q1 Financial Highlights
0% 0%
Revenue $1.0B
1% CC 1% CC
11% 12%
OUP $43M
11% CC 12% CC
40 bps 40 bps OUP Margin 4.2%
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.
owerGroup 2018 First Quarter Result
Americas Segment
(18% of Revenue)
April 2018
(1) Excludes the impact of restructuring costs of $0.3M in Q1 2018.
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ManpowerGroup 9
ManpowerGroup 2018 First Quarter Results
-7%
20%
-9%
12%
-7%
11%
14%
10%
US
Mexico
Argentina
Other
60%
14%
4%
22%
-6%
8%
7%
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
owerGroup 2018 First Quarter Result
Americas – Q1 Revenue Growth YoY
April 2018
Average Daily
Revenue Growth - CC
(1)
(1) On an organic basis, revenue for Other increased 7% (5% in constant currency).
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ManpowerGroup 10
ManpowerGroup 2018 First Quarter Results owerGroup 2018 First Quarter Result
Southern Europe Segment
(42% of Revenue)
April 2018
As
Reported
Excluding
Restructuring
Costs(1)
Q1 Financial Highlights
28% 28%
Revenue $2.3B
11% CC 11% CC
20% 24%
OUP $98M
5% CC 8% CC
30 bps 10 bps OUP Margin 4.2%
(1) Excludes the impact of restructuring costs of $3.1M in Q1 2018.
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ManpowerGroup 11
ManpowerGroup 2018 First Quarter Results
25%
40%
35%
23%
9%
22%
17%
10%
France
Italy
Spain
Other
62%
18%
7%
13%
9%
23%
20%
owerGroup 2018 First Quarter Result
Southern Europe – Q1 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
(1)
(1) On an organic basis, revenue for Spain increased 26% (9% in constant currency, or 12% average daily
revenue growth in constant currency).
April 2018
Average Daily
Revenue Growth - CC
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ManpowerGroup 12
ManpowerGroup 2018 First Quarter Results
As
Reported
Excluding
Restructuring
Costs(1)
Q1 Financial Highlights
14% 14%
Revenue $1.4B
1% CC 1% CC
41% 7%
OUP $17M
26% CC 6% CC
20 bps 20 bps OUP Margin 1.2%
owerGroup 2018 First Quarter Result
Northern Europe Segment
(26% of Revenue)
April 2018
(1) Excludes the impact of restructuring costs of $20.1M in Q1 2018 and $22.6M in Q1 2017.
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ManpowerGroup 13
ManpowerGroup 2018 First Quarter Results
11%
17%
9%
20%
19%
22%
-1%
1%
0%
4%
3%
8%
UK
Germany
Nordics
Netherlands
Belgium
Other
30%
21%
19%
14%
8%
8%
0%
4%
5%
5%
4%
owerGroup 2018 First Quarter Result
Northern Europe – Q1 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
April 2018
Average Daily
Revenue Growth - CC
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ManpowerGroup 14
ManpowerGroup 2018 First Quarter Results owerGroup 2018 First Quarter Result
APME Segment
(13% of Revenue)
April 2018
(1) Variances exclude the impact of restructuring costs of $1.4M in Q1 2017.
As
Reported
Excluding
Restructuring
Costs(1)
Q1 Financial Highlights
14% 14%
Revenue $720M
8% CC 8% CC
28% 20%
OUP $26M
22% CC 14% CC
40 bps 20 bps OUP Margin 3.6%
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ManpowerGroup 15
ManpowerGroup 2018 First Quarter Results
7%
4%
25%
2%
1%
18%
Japan
Australia/NZ
Other
32%
22%
46%
5%
7%
owerGroup 2018 First Quarter Result
APME – Q1 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
April 2018
Average Daily
Revenue Growth - CC
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ManpowerGroup 16
ManpowerGroup 2018 First Quarter Results
As
Reported
Excluding
Restructuring
Costs(1)
Q1 Financial Highlights
11% 11%
Revenue $50M
15% CC 15% CC
27% 21%
OUP $6M
29% CC 23% CC
290 bps 190 bps OUP Margin 12.9%
owerGroup 2018 First Quarter Result
Right Management Segment
(1% of Revenue)
April 2018
(1) Excludes the impact of restructuring costs of $0.5M in Q1 2018.
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ManpowerGroup 17
ManpowerGroup 2018 First Quarter Results owerGroup 2018 First Quarter Result
Cash Flow Summary – Q1
April 2018
(in millions of USD) 2018 2017
Net Earnings 97 74
Non-cash Provisions and Other 22 47
Change in Operating Assets/Liabilities (177) 70
Capital Expenditures (13) (11)
Free Cash Flow (71) 180
Change in Debt (4) (4)
Acquisitions of Businesses, including Contingent
Considerations, net of cash acquired (17) (25)
Other Equity Transactions (14) 18
Repurchases of Common Stock (50) (57)
Effect of Exchange Rate Changes 14 12
Other 5 2
Change in Cash (137) 126
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ManpowerGroup 18
ManpowerGroup 2018 First Quarter Results owerGroup 2018 First Quarter Result
Balance Sheet Highlights
Total Debt
(in millions of USD)
Total Debt to
Total Capitalization
Total Debt
Net Debt (Cash)
April 2018
14%
24% 25% 25% 25%
0%
10%
20%
30%
2014 2015 2016 2017 Q1
2018
-231 125
227 259
418 468
855 825
948 970
-250
0
250
500
750
1,000
2014 2015 2016 2017 Q1
2018
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ManpowerGroup 19
ManpowerGroup 2018 First Quarter Results
Interest
Rate
Maturity
Date
Total
Outstanding
Remaining
Available
Euro Notes - €350M 4.505% Jun 2018 431 -
Euro Notes - €400M 1.913% Sep 2022 491 -
Revolving Credit Agreement 2.88% Sep 2020 - 599
Uncommitted lines and Other Various Various 48 289
Total Debt 970 888
owerGroup 2018 First Quarter Result
Debt and Credit Facilities – March 31, 2018
(in millions of USD)
(2)
(1)
April 2018
(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
0.88 and a fixed charge coverage ratio of 5.24 as of March 31, 2018. As of March 31, 2018, there were $0.5M of standby letters of credit issued under
the agreement.
(2) Represents subsidiary uncommitted lines of credit & overdraft facilities, which total $336.9M. 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.
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ManpowerGroup 20
ManpowerGroup 2018 First Quarter Results owerGroup 2018 First Quarter Result
Second Quarter Outlook
Revenue Total Up 13-15% (Up 5-7% CC)
Americas Flat/Up 2% (Up 1-3% CC)
Southern Europe Up 20-22% (Up 8-10% CC)
Northern Europe Up 14-16% (Up 3-5% CC)
APME Up 11-13% (Up 6-8% CC)
Right Management Down 3-5% (Down 7-9% CC)
Gross Profit Margin 16.2 – 16.4%
Operating Profit Margin 3.9 – 4.1%
Tax Rate 28.5%
EPS (Excluding Restructuring) $2.33 – $2.41 (favorable $0.18 currency)
April 2018
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ManpowerGroup 21
ManpowerGroup 2018 First Quarter Results
Strong start to the year, with good top line growth and bottom line performance.
Global economy shows favorable trends and stronger labor markets.
In this environment, access to human capital is key, and we are very well
positioned to provide skilled talent to our clients along with meaningful and
sustainable employment to millions of people globally each year.
Our investments in digital capabilities will help in building relationships with
clients and candidates while enhancing our employees’ productivity.
We are proud to have been recognized for how we conduct our business. We
have once again been named as a Fortune Most Admired Company and also
one of Ethisphere’s World’s Most Ethical Companies. Being named to both is a
unique achievement in our industry.
owerGroup 2018 First Quarter Result
Key Take Aways
April 2018