Attached files
| file | filename |
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| EX-99.1 - EXHIBIT 99.1 - ManpowerGroup Inc. | ex033117991pressrelease.htm |
| 8-K - 8-K - ManpowerGroup Inc. | man-033117x8k.htm |
ManpowerGroup First Quarter Results | April 21, 2017
Exhibit 99.2
ManpowerGroup April 2017 2
FORWARD-LOOKING STATEMENT
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, 2016,
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.
ManpowerGroup April 2017 3
ManpowerGroup 2017 First Quarter Results
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
Restructuring
Charges(1)
Q1 Financial Highlights
4% 4%
Revenue $4.8B
7% CC 7% CC
30 bps 30 bps Gross Margin 16.6%
4% 15% Operating Profit $127M
($151M excluding restructuring charges) 1% CC 19% CC
20 bps 30 bps OP Margin 2.7%
(3.2% excluding restructuring charges)
11% 42% EPS $1.09
($1.39 excluding restructuring charges) 14% CC 47% CC
(1) Excludes the impact of restructuring charges of $24.0M ($20.8M net of tax) in Q1 2017.
Consolidated Financial Highlights
ManpowerGroup April 2017 4
ManpowerGroup 2017 First Quarter Results
EPS Bridge – Q1 vs. Guidance Midpoint
$1.39
$1.09 $1.10 $1.09
+0.11
+0.20 -0.02 -0.30
Q1
Guidance Midpoint
Operational
Performance
Tax Rate
(30.0% vs 40.0%)
Other Expense Reported Excluding
Restructuring
Charges
Restructuring
Charges
(net of 2¢ currency)
Q1 Reported
ManpowerGroup April 2017 5
ManpowerGroup 2017 First Quarter Results
Consolidated Gross Margin Change
16.9%
16.6%
Q1 2016 Staffing/Interim Right Management /
Solutions
Currency Q1 2017
-0.2%
-0.2%
+0.1%
ManpowerGroup April 2017 6
ManpowerGroup 2017 First Quarter Results
Growth
█ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total
Business Line Gross Profit – Q1 2017
$479M
61%
$168M
21%
$105M
13%
$36M
5%
$788M
1%
4% CC
3%
6% CC
11%
12% CC
-14%
-12% CC
2%
5% CC
ManpowerGroup April 2017 7
ManpowerGroup 2017 First Quarter Results
636.8
642.1
660.8
Q1 2016 Currency Acquisitions Operational
Impact
Q1 2017
Excluding
Restructuring
Charges
Restructuring Q1 2017
-16.0
+4.6
+24.0
+6.1
14.0%
% of Revenue
13.4%
% of Revenue % of Revenue
13.9%
SG&A Expense Bridge – Q1 YoY
(in millions of USD)
(1) This was unfavorably impacted 10 bps due to the effect of currency exchange rates on our business mix. In constant currency, SG&A
excluding restructuring charges was 13.3% of Revenue.
(1)
ManpowerGroup April 2017 8
ManpowerGroup 2017 First Quarter Results
As
Reported Q1 Financial Highlights
2%
Revenue $1.0B
1% CC
13%
OUP $39M
14% CC
50 bps OUP Margin 3.8%
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 April 2017 9
ManpowerGroup 2017 First Quarter Results
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
Americas – Q1 Revenue Growth YoY
-6%
-3%
10%
12%
-6%
9%
19%
6%
US
Mexico
Argentina
Other
64%
11%
5%
20%
ManpowerGroup April 2017 10
ManpowerGroup 2017 First Quarter Results
As
Reported Q1 Financial Highlights
7%
Revenue $1.8B
10% CC
13%
OUP $81M
17% CC
20 bps OUP Margin 4.5%
Southern Europe Segment
(38% of Revenue)
ManpowerGroup April 2017 11
ManpowerGroup 2017 First Quarter Results
Southern Europe – Q1 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
(1)
(1) On an organic basis, revenue for Spain increased 1% (+4% in CC).
5%
12%
2%
10%
9%
16%
6%
12%
France
Italy
Spain
Other
63%
16%
7%
14%
ManpowerGroup April 2017 12
ManpowerGroup 2017 First Quarter Results
As
Reported
Excluding
Restructuring
Charges(1)
Q1 Financial Highlights
2% 2%
Revenue $1.2B
9% CC 9% CC
65% 4%
OUP $11M
64% CC 11% CC
180 bps 0 bps OUP Margin 0.9%
(1) Excludes the impact of restructuring charges of $22.6M in Q1 2017.
Northern Europe Segment
(26% of Revenue)
ManpowerGroup April 2017 13
ManpowerGroup 2017 First Quarter Results
-17%
13%
10%
30%
9%
10%
-4%
17%
12%
35%
13%
6%
UK
Germany
Nordics
Netherlands
Belgium
Other
31%
21%
20%
13%
8%
7%
Northern Europe – Q1 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
(1) On an organic basis, revenue for the Nordics increased 7% (+10% in CC) and the Netherlands increased 19% (+24% in CC).
(1)
(1)
ManpowerGroup April 2017 14
ManpowerGroup 2017 First Quarter Results
As
Reported
Excluding
Restructuring
Charges(1)
Q1 Financial Highlights
10% 10%
Revenue $632M
8% CC 8% CC
4% 12%
OUP $20M
3% CC 10% CC
10 bps 10 bps OUP Margin 3.2%
(1) Excludes the impact of restructuring charges of $1.4M in Q1 2017.
APME Segment
(13% of Revenue)
ManpowerGroup April 2017 15
ManpowerGroup 2017 First Quarter Results
APME – Q1 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
5%
9%
15%
3%
4%
15%
Japan
Australia/NZ
Other
34%
24%
42%
ManpowerGroup April 2017 16
ManpowerGroup 2017 First Quarter Results
As
Reported Q1 Financial Highlights
13%
Revenue $56M
11% CC
7%
OUP $9M
6% CC
90 bps OUP Margin 15.8%
Right Management Segment
(1% of Revenue)
ManpowerGroup April 2017 17
ManpowerGroup 2017 First Quarter Results
Cash Flow Summary – Q1
(in millions of USD) 2017 2016
Net Earnings 74 72
Non-cash Provisions and Other 47 47
Change in Operating Assets/Liabilities 70 46
Capital Expenditures (11) (17)
Free Cash Flow 180 148
Change in Debt (4) (16)
Acquisitions of Businesses, including Contingent
Considerations, net of cash acquired (25) (14)
Other Equity Transactions 18 (1)
Repurchases of Common Stock (57) (118)
Effect of Exchange Rate Changes 12 17
Other 2 1
Change in Cash 126 17
ManpowerGroup April 2017 18
ManpowerGroup 2017 First Quarter Results
Balance Sheet Highlights
Total Debt
(in millions of USD)
Total Debt to
Total Capitalization
Total Debt
Net Debt (Cash)
-221 -231 125
227
109
516 468
855 825 834
-300
0
300
600
900
2013 2014 2015 2016 Q1
2017
15% 14%
24% 25% 25%
0%
10%
20%
30%
2013 2014 2015 2016 Q1
2017
ManpowerGroup April 2017 19
ManpowerGroup 2017 First Quarter Results
(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
0.60 and a fixed charge coverage ratio of 5.06 as of March 31, 2017. As of March 31, 2017, there were $0.8M of standby letters of credit issued under
the agreement.
(2) Represents subsidiary uncommitted lines of credit & overdraft facilities, which total $289.7M. 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 372 -
Euro Notes - €400M 1.913% Sep 2022 423 -
Revolving Credit Agreement 1.98% Sep 2020 - 599
Uncommitted lines and Other Various Various 39 252
Total Debt 834 851
Debt and Credit Facilities – March 31, 2017
(in millions of USD)
(2)
(1)
ManpowerGroup April 2017 20
ManpowerGroup 2017 First Quarter Results
Second Quarter Outlook
Revenue Total Flat/Down 2% (Up 3-5% CC)
Americas Flat/Down 2% (Down/Up 1% CC)
Southern Europe Up 2-4% (Up 7-9% CC)
Northern Europe Down 6-8% (Flat/Up 2% CC)
APME Up 5-7% (Up 6-8% CC)
Right Management Down 13-15% (Down 10-12% CC)
Gross Profit Margin 16.7 – 16.9%
Operating Profit Margin 3.9 – 4.1%
Tax Rate 37.0%
EPS (excluding restructuring) $1.67 – $1.75 (unfavorable $0.08 currency)
ManpowerGroup April 2017 21
ManpowerGroup 2017 First Quarter Results
Strong performance in the first quarter, with good top line growth and strong
bottom line performance. Continued slow growth environment but improving
economic and labor market outlook in many parts of the world, including Europe.
In this environment, our extensive portfolio of service and solutions bridges the
gap between supply and demand. We help companies engage productive and
skilled talent where they need them, and we help individuals find meaningful and
sustainable employment while acquiring additional skills and work experience.
Our value proposition derives its competitive strength and differentiation from
our last mile delivery capabilities. Our investments in digital capabilities will help
in building relationships with clients and candidates while reducing the amount
of transactional tasks.
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.
Key Take Aways