Attached files
| file | filename |
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| EX-99.1 - EXHIBIT 99.1 - ManpowerGroup Inc. | ex063016991pressrelease.htm |
| 8-K - 8-K - ManpowerGroup Inc. | man-063016x8k.htm |
ManpowerGroup Second Quarter Results
July 21, 2016
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.”
is pres nt tio contain statements, including financial
projections, that are forward-looki g in nature. These
stateme ts are based on managements’ current
expectations or beliefs, and are subject to known and
unknown risks and u certainties regarding expected
future results. Actual results might differ materially from
those projected in the forward-looking statements.
Additio al inform tion concerning factors tha could
cause actual results to materially differ from those in the
forward-look ng statements is contained in the
ManpowerGroup Inc. Annual Report on Form 10-K dated
D c mber 31, 2015, 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
pr sentation speak only as of the date hereof. The
Company assumes no obligation to update or revise any
forward-looking statements.
2 ManpowerGroup July 2016
July 2016 3 ManpowerGroup
As
Reported Q2 Financial Highlights
3%
Revenue $5.0B
5% CC
0 bps Gross Margin 17.1%
10%
Operating Profit $196M
10% CC
20 bps OP Margin 3.9%
20%
EPS $1.60
22% 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
Annual Report on our Web site.
Consolidated Financial Highlights
ManpowerGroup 2016 Second Quarter Results
July 2016 4 ManpowerGroup
$1.51
$1.60
+0.05
+0.01 +0.01
+0.02
Q2 Guidance Midpoint Operational
Performance
Other Expense Tax Rate
(37.8% vs 38.0%)
WAS Q2 Reported
EPS Bridge – Q2 vs. Guidance Midpoint
ManpowerGroup 2016 Second Quarter Results
July 2016 5 ManpowerGroup
Consolidated Gross Margin Change
ManpowerGroup 2016 Second Quarter Results
17.1% 17.1%
Q2 2015 Staffing/Interim Permanent
Recruitment
Acquisition Impact Other Q2 2016
+0.1%
-0.3% +0.1%
+0.1%
July 2016 6 ManpowerGroup
$535M
62%
$175M
20%
$103M
12%
$48M
6%
$861M Growth in CC %
Business Line Gross Profit – Q2 2016
█ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total
ManpowerGroup 2016 Second Quarter Results
2
8
14
3
5
July 2016 7 ManpowerGroup
SG&A Expense Bridge – Q2 YoY
(in millions of USD)
ManpowerGroup 2016 Second Quarter Results
651.9
664.7
Q2 2015 Currency
Impact
Acquisitions Operational
Impact
Q2 2016
-6.2
+25.8 -6.8
13.4%
% of Revenue % of Revenue
13.2%
July 2016 8 ManpowerGroup
As
Reported Q2 Financial Highlights
4%
Revenue $1.1B
1% CC
4%
OUP $54M
0% CC
0 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
(22% of Revenue)
ManpowerGroup 2016 Second Quarter Results
July 2016 9 ManpowerGroup
-5%
-10%
-27%
10%
-5%
7%
16%
19%
US
Mexico
Argentina
Other
67%
11%
4%
18%
Americas – Q2 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
(1) On an organic basis, Other revenue decreased 3% (+6% in CC).
(1)
ManpowerGroup 2016 Second Quarter Results
July 2016 10 ManpowerGroup
As
Reported Q2 Financial Highlights
3%
Revenue $1.9B
1% CC
8%
OUP $102M
6% CC
20 bps OUP Margin 5.3%
Southern Europe Segment
(39% of Revenue)
ManpowerGroup 2016 Second Quarter Results
July 2016 11 ManpowerGroup
Southern Europe – Q2 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
ManpowerGroup 2016 Second Quarter Results
4%
-6%
16%
5%
2%
-8%
14%
4%
France
Italy
Spain
Other
65%
16%
7%
12%
July 2016 12 ManpowerGroup
As
Reported Q2 Financial Highlights
7%
Revenue $1.3B
10% CC
11%
OUP $38M
13% CC
10 bps OUP Margin 2.9%
Northern Europe Segment
(26% of Revenue)
ManpowerGroup 2016 Second Quarter Results
July 2016 13 ManpowerGroup
Northern Europe – Q2 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
(1) On an organic basis, Germany revenue increased 10% (+8% in CC) and Belgium revenue increased
17% (+15% in CC).
ManpowerGroup 2016 Second Quarter Results
-7%
-1%
61%
23%
23%
-12%
-1%
0%
58%
20%
20%
-4%
UK
Nordics
Germany
Netherlands
Belgium
Other
37%
20%
19%
11%
7%
6%
(1)
(1)
July 2016 14 ManpowerGroup
As
Reported Q2 Financial Highlights
10%
Revenue $615M
10% CC
21%
OUP $22M
19% CC
30 bps OUP Margin 3.6%
APME Segment
(12% of Revenue)
ManpowerGroup 2016 Second Quarter Results
July 2016 15 ManpowerGroup
14%
14%
6%
1%
19%
11%
Japan
Australia/NZ
Other
35%
25%
40%
APME – Q2 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
(1) On an organic basis, Australia/NZ revenue decreased 2% (+3% in CC).
(1)
ManpowerGroup 2016 Second Quarter Results
July 2016 16 ManpowerGroup
As
Reported Q2 Financial Highlights
1%
Revenue $73M
3% CC
24%
OUP $14M
26% CC
360 bps OUP Margin 19.8%
Right Management Segment
(1% of Revenue)
ManpowerGroup 2016 Second Quarter Results
July 2016 17 ManpowerGroup
Cash Flow Summary – 6 Months YTD
ManpowerGroup 2016 Second Quarter Results
(in millions of USD) 2016 2015
Net Earnings 187 171
Non-cash Provisions and Other 96 107
Change in Operating Assets/Liabilities (21) (239)
Capital Expenditures (31) (20)
Free Cash Flow 231 19
Change in Debt (21) (3)
Acquisitions of Businesses
net of cash acquired (41) (30)
Other Equity Transactions (1) 23
Repurchases of Common Stock (291) (169)
Dividends Paid (61) (62)
Effect of Exchange Rate Changes - (14)
Other - 3
Change in Cash (184) (233)
July 2016 18 ManpowerGroup
120 -221 -231 125 132
308
768
516 468
855 880 854
-400
0
400
800
1,200
2012 2013 2014 2015 Q1 Q2
2016
Balance Sheet Highlights
Total Debt
(in millions of USD)
Total Debt to
Total Capitalization
Total Debt
Net Debt (Cash)
ManpowerGroup 2016 Second Quarter Results
23%
15% 14%
24% 25% 25%
0%
10%
20%
30%
2012 2013 2014 2015 Q1 Q2
2016
July 2016 19 ManpowerGroup
(1) The $600M agreement requires that we comply with a Leverage Ratio (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 Debt-to-EBITDA ratio of
0.87 and a fixed charge coverage ratio of 4.71 as of June 30, 2016. As of June 30, 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 $285.5M. 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 388 -
Euro Notes - €400M 1.913% Sep 2022 441 -
Revolving Credit Agreement 1.47% Sep 2020 - 599
Uncommitted lines and Other Various Various 25 261
Total Debt 854 860
Debt and Credit Facilities – June 30, 2016
(in millions of USD)
(2)
(1)
ManpowerGroup 2016 Second Quarter Results
July 2016 20 ManpowerGroup
Third Quarter Outlook
Revenue Total Down/Up 1% (Up 1-3% CC)
Americas Down 2-4% (Flat/Up 2% CC)
Southern Europe Down/Up 1% (Down/Up 1% CC)
Northern Europe Down 1-3% (Up 4-6% CC)
APME Up 9-11% (Up 4-6% CC)
Right Management Down/Up 1% (Up 1-3% CC)
Gross Profit Margin 16.9 – 17.1%
Operating Profit Margin 3.9 – 4.1%
Tax Rate 36.0%
EPS $1.66 – $1.74 (unfavorable $0.03 currency)
ManpowerGroup 2016 Second Quarter Results
July 2016 21 ManpowerGroup
Key Take Aways
Solid quarterly earnings growth despite the uneven market conditions; a result of
our focus on price discipline and good execution in managing expenses and
driving productivity.
The global economy remains slow and uneven; regardless of the environment,
we will continue our focus on driving revenue growth aligned with our strategies
and improving operational efficiency and productivity through improved
processes and enhanced technology.
With the added uncertainty in a slow growth environment, our clients are looking
for a trusted partner such as ManpowerGroup to help them find solutions as they
adjust to this new normal of certain uncertainty. This is precisely the reason we
have diversified and strengthened our range of workforce solutions and brands.
ManpowerGroup 2016 Second Quarter Results