Attached files
| file | filename |
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| EX-99.1 - EXHIBIT 99.1 - ManpowerGroup Inc. | ex093016991pressrelease.htm |
| 8-K - 8-K - ManpowerGroup Inc. | man-093016x8k.htm |
ManpowerGroup Third Quarter Results
October 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.”
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 October 2016
October 2016 3 ManpowerGroup
As
Reported Q3 Financial Highlights
2%
Revenue $5.1B
4% CC
20 bps Gross Margin 16.9%
2%
Operating Profit $211M
4% CC
0 bps OP Margin 4.1%
16%
EPS $1.87
18% 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 Third Quarter Results
October 2016 4 ManpowerGroup
EPS Bridge – Q3 vs. Guidance Midpoint
ManpowerGroup 2016 Third Quarter Results
$1.70
$1.87 +0.11
+0.02
+0.04
Q3 Guidance
Midpoint
Operational Performance Tax Rate
(35.3% vs 36.0%)
WAS Q3 Reported
October 2016 5 ManpowerGroup
Consolidated Gross Margin Change
ManpowerGroup 2016 Third Quarter Results
17.1%
16.9%
Q3 2015 Staffing/Interim Permanent
Recruitment
Acquisitions Q3 2016
-0.4%
+0.1%
+0.1%
October 2016 6 ManpowerGroup
Growth
Business Line Gross Profit – Q3 2016
█ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total
ManpowerGroup 2016 Third Quarter Results
-2%
-1% CC
6%
8% CC
12%
12% CC
-10%
-10% CC
1%
2% CC
$533M
62%
$178M
21%
$108M
12%
$39M
5%
$858M
October 2016 7 ManpowerGroup
SG&A Expense Bridge – Q3 YoY
(in millions of USD)
ManpowerGroup 2016 Third Quarter Results
645.8 647.2
Q3 2015 Currency
Impact
Acquisitions Operational
Impact
Q3 2016
-7.0
21.7 -13.3
13.0%
% of Revenue % of Revenue
12.7%
October 2016 8 ManpowerGroup
As
Reported Q3 Financial Highlights
3%
Revenue $1.1B
1% CC
6%
OUP $55M
4% CC
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
(22% of Revenue)
ManpowerGroup 2016 Third Quarter Results
October 2016 9 ManpowerGroup
Americas – Q3 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
(1) On an organic basis, Other revenue increased 17% (+16% in CC).
(1)
ManpowerGroup 2016 Third Quarter Results
-6%
-8%
-36%
30%
-6%
5%
4%
29%
US
Mexico
Argentina
Other
65%
11%
4%
20%
October 2016 10 ManpowerGroup
As
Reported Q3 Financial Highlights
2%
Revenue $2.0B
2% CC
4%
OUP $101M
5% CC
40 bps OUP Margin 5.1%
Southern Europe Segment
(39% of Revenue)
ManpowerGroup 2016 Third Quarter Results
October 2016 11 ManpowerGroup
Southern Europe – Q3 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
ManpowerGroup 2016 Third Quarter Results
3%
-8%
8%
6%
3%
-8%
7%
6%
France
Italy
Spain
Other
65%
15%
8%
12%
October 2016 12 ManpowerGroup
As
Reported Q3 Financial Highlights
3%
Revenue $1.3B
9% CC
21%
OUP $54M
28% CC
60 bps OUP Margin 4.1%
Northern Europe Segment
(25% of Revenue)
ManpowerGroup 2016 Third Quarter Results
October 2016 13 ManpowerGroup
Northern Europe – Q3 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
(1) On an organic basis, revenue for Germany increased 7% (+7% in CC), the Nordics decreased 2% (-2%
in CC), the Netherlands increased 22% (+22% in CC), and Belgium increased 18% (+17% in CC).
ManpowerGroup 2016 Third Quarter Results
(1)
(1)
(1)
(1)
-17%
34%
-1%
37%
21%
-9%
-3%
34%
-1%
37%
21%
-7%
UK
Germany
Nordics
Netherlands
Belgium
Other
33%
21%
19%
13%
8%
6%
October 2016 14 ManpowerGroup
As
Reported Q3 Financial Highlights
14%
Revenue $651M
7% CC
6%
OUP $25M
0% CC
30 bps OUP Margin 3.9%
APME Segment
(13% of Revenue)
ManpowerGroup 2016 Third Quarter Results
October 2016 15 ManpowerGroup
APME – Q3 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
ManpowerGroup 2016 Third Quarter Results
23%
8%
11%
3%
2%
11%
Japan
Australia/NZ
Other
35%
24%
41%
October 2016 16 ManpowerGroup
As
Reported Q3 Financial Highlights
5%
Revenue $63M
4% CC
18%
OUP $9M
18% CC
210 bps OUP Margin 13.9%
Right Management Segment
(1% of Revenue)
ManpowerGroup 2016 Third Quarter Results
October 2016 17 ManpowerGroup
Cash Flow Summary – 9 Months YTD
ManpowerGroup 2016 Third Quarter Results
(in millions of USD) 2016 2015
Net Earnings 316 295
Non-cash Provisions and Other 136 161
Change in Operating Assets/Liabilities (49) (173)
Capital Expenditures (43) (33)
Free Cash Flow 360 250
Change in Debt (10) 450
Acquisitions of Businesses
net of cash acquired (57) (241)
Other Equity Transactions (1) 98
Repurchases of Common Stock (463) (523)
Dividends Paid (61) (62)
Effect of Exchange Rate Changes 4 (21)
Other 1 2
Change in Cash (227) (47)
October 2016 18 ManpowerGroup
Balance Sheet Highlights
Total Debt
(in millions of USD)
Total Debt to
Total Capitalization
Total Debt
Net Debt (Cash)
ManpowerGroup 2016 Third Quarter Results
120 -221 -231 125 132
308 373
768
516 468
855 880 854 876
-400
0
400
800
1,200
2012 2013 2014 2015 Q1 Q2 Q3
2016
23%
15% 14%
24% 25% 25% 26%
0%
10%
20%
30%
2012 2013 2014 2015 Q1 Q2 Q3
2016
October 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
0.94 and a fixed charge coverage ratio of 4.78 as of September 30, 2016. As of September 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 $300.1M. 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 393 -
Euro Notes - €400M 1.913% Sep 2022 446 -
Revolving Credit Agreement 1.53% Sep 2020 - 599
Uncommitted lines and Other Various Various 37 264
Total Debt 876 863
Debt and Credit Facilities – Sept 30, 2016
(in millions of USD)
(2)
(1)
ManpowerGroup 2016 Third Quarter Results
October 2016 20 ManpowerGroup
Fourth Quarter Outlook
ManpowerGroup 2016 Third Quarter Results
Revenue Total Flat/Up 2% (Up 1-3% CC)
Americas Down 4-6% (Down/Up 1% CC)
Southern Europe Up 3-5% (Up 1-3% CC)
Northern Europe Down 3-5% (Up 2-4% CC)
APME Up 13-15% (Up 4-6% CC)
Right Management Down 5-7% (Down 4-6% CC)
Gross Profit Margin 16.8 – 17.0%
Operating Profit Margin 3.8 – 4.0%
Tax Rate 36.0%
EPS $1.65 – $1.73 (unfavorable $0.02 currency)
October 2016 21 ManpowerGroup
Key Take Aways
Continued slow growth environment, with improving trends in several European
markets; our geographic diversification and diversified business mix is helping us
offset weakness in some markets with strengths in others.
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.
With the added uncertainty in a slow growth environment, our clients are looking
for more flexibility and access to talent to execute their business plans. This is
precisely the reason we have diversified and strengthened our range of
workforce solutions and brands.
ManpowerGroup 2016 Third Quarter Results