Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ManpowerGroup Inc. | man-063017x8k.htm |
| EX-99.1 - EXHIBIT 99.1 - ManpowerGroup Inc. | ex063017991pressrelease.htm |
ManpowerGroup Second Quarter Results | July 24, 2017
Exhibit 99.2
ManpowerGroup July 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 July 2017 3
ManpowerGroup 2017 Second 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
Costs(1)
Q2 Financial Highlights
3% 3%
Revenue $5.2B
6% CC 6% CC
40 bps
40 bps
Gross Margin 16.7%
1% 5% Operating Profit $195M
($205M excluding restructuring costs) 1% CC 7% CC
10 bps 10 bps OP Margin 3.8%
(4.0% excluding restructuring costs)
8% 14% EPS $1.72
($1.82 excluding restructuring costs) 9% CC 16% CC
(1) Excludes the impact of restructuring costs of $10.5M ($7.0M net of tax) in Q2 2017.
Consolidated Financial Highlights
ManpowerGroup July 2017 4
ManpowerGroup 2017 Second Quarter Results
EPS Bridge – Q2 vs. Guidance Midpoint
ManpowerGroup July 2017 5
ManpowerGroup 2017 Second Quarter Results
Consolidated Gross Margin Change
17.1%
16.7%
Q2 2016 Staffing Right Management /
Solutions
Currency Q2 2017
-0.3%
-0.2%
+0.1%
ManpowerGroup July 2017 6
ManpowerGroup 2017 Second Quarter Results
2%
4% CC
0%
2% CC
5%
6% CC
-24%
-22% CC
0%
2% CC
Growth
█ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total
Business Line Gross Profit – Q2 2017
$543M
63%
$175M
20%
$108M
13%
$36M
4%
$862M
ManpowerGroup July 2017 7
ManpowerGroup 2017 Second Quarter Results
SG&A Expense Bridge – Q2 YoY
(in millions of USD)
656.6
664.7 667.1
Q2 2016 Currency Acquisitions Operational
Impact
Q2 2017
Excluding
Restructuring Costs
Restructuring
Costs
Q2 2017
-15.7
+5.8
+10.5
+1.8
13.2%
% of Revenue
12.7%
% of Revenue % of Revenue
12.9%
ManpowerGroup July 2017 8
ManpowerGroup 2017 Second Quarter Results
As
Reported
Excluding
Restructuring
Costs(1)
Q2 Financial Highlights
2% 2%
Revenue $1.1B
1% CC 1% CC
7% 19%
OUP $58M
7% CC 19% CC
40 bps 100 bps OUP Margin 5.4%
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
(20% of Revenue)
(1) Excludes the impact of restructuring costs of $6.3M in Q2 2017.
ManpowerGroup July 2017 9
ManpowerGroup 2017 Second Quarter Results
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
Americas – Q2 Revenue Growth YoY
Average Daily
Revenue Growth - CC
-7%
11%
8%
6%
-7%
14%
20%
6%
US
Mexico
Argentina
Other
64%
13%
5%
18%
-7%
18%
23%
ManpowerGroup July 2017 10
ManpowerGroup 2017 Second Quarter Results
As
Reported Q2 Financial Highlights
11%
Revenue $2.1B
13% CC
8%
OUP $110M
10% CC
10 bps OUP Margin 5.2%
Southern Europe Segment
(41% of Revenue)
ManpowerGroup July 2017 11
ManpowerGroup 2017 Second Quarter Results
Southern Europe – Q2 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
(1)
(1) On an organic basis, revenue for Spain decreased 2% (+1% in CC).
Average Daily
Revenue Growth - CC
8%
22%
7%
10%
11%
25%
9%
10%
France
Italy
Spain
Other
64%
17%
7%
12%
11%
29%
14%
ManpowerGroup July 2017 12
ManpowerGroup 2017 Second Quarter Results
As
Reported
Excluding
Restructuring
Costs(1)
Q2 Financial Highlights
3% 3%
Revenue $1.3B
2% CC 2% CC
13% 10%
OUP $33M
9% CC 6% CC
30 bps 20 bps OUP Margin 2.6%
(1) Excludes the impact of restructuring costs of $1.2M in Q2 2017.
Northern Europe Segment
(25% of Revenue)
ManpowerGroup July 2017 13
ManpowerGroup 2017 Second Quarter Results
-20%
7%
2%
16%
0%
11%
-10%
10%
7%
18%
3%
7%
UK
Germany
Nordics
Netherlands
Belgium
Other
30%
21%
21%
13%
8%
7%
-8%
16%
16%
20%
7%
Northern Europe – Q2 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
(1) On an organic basis, revenue for the Nordics was flat (+5% in CC), and the Netherlands increased 7% (+10% in CC).
(1)
(1)
Average Daily
Revenue Growth - CC
ManpowerGroup July 2017 14
ManpowerGroup 2017 Second Quarter Results
As
Reported Q2 Financial Highlights
5%
Revenue $643M
5% CC
5%
OUP $23M
6% CC
0 bps OUP Margin 3.6%
APME Segment
(13% of Revenue)
ManpowerGroup July 2017 15
ManpowerGroup 2017 Second Quarter Results
2%
-4%
13%
5%
-5%
12%
Japan
Australia/NZ
Other
34%
23%
43%
3%
-2%
APME – Q2 Revenue Growth YoY
Revenue Growth - CC Revenue Growth
% of Segment
Revenue
Average Daily
Revenue Growth - CC
ManpowerGroup July 2017 16
ManpowerGroup 2017 Second Quarter Results
As
Reported
Excluding
Restructuring
Costs(1)
Q2 Financial Highlights
22% 22%
Revenue $57B
20% CC 20% CC
41% 27%
OUP $8M
41% CC 27% CC
500 bps 140 bps OUP Margin 14.8%
Right Management Segment
(1% of Revenue)
(1) Excludes the impact of restructuring costs of $2.0M in Q2 2017.
ManpowerGroup July 2017 17
ManpowerGroup 2017 Second Quarter Results
Cash Flow Summary – 6 Months YTD
(in millions of USD) 2017 2016
Net Earnings 191 187
Non-cash Provisions and Other 92 96
Change in Operating Assets/Liabilities (135) (21)
Capital Expenditures (26) (31)
Free Cash Flow 122 231
Change in Debt (4) (21)
Acquisitions of Businesses, including Contingent
Considerations, net of cash acquired (34) (44)
Other Equity Transactions 18 (1)
Repurchases of Common Stock (116) (291)
Dividends Paid (62) (61)
Effect of Exchange Rate Changes 48 -
Other 3 3
Change in Cash (25) (184)
ManpowerGroup July 2017 18
ManpowerGroup 2017 Second 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
318
516 468
855 825 834 891
-300
0
300
600
900
2013 2014 2015 2016 Q1 Q2
2017
15% 14%
24% 25% 25% 26%
0%
10%
20%
30%
2013 2014 2015 2016 Q1 Q2
2017
ManpowerGroup July 2017 19
ManpowerGroup 2017 Second 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
0.84 and a fixed charge coverage ratio of 5.09 as of June 30, 2017. As of June 30, 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 $297.7M. 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 400 -
Euro Notes - €400M 1.913% Sep 2022 454 -
Revolving Credit Agreement 2.22% Sep 2020 - 599
Uncommitted lines and Other Various Various 37 261
Total Debt 891 860
Debt and Credit Facilities – June 30, 2017
(in millions of USD)
(2)
(1)
ManpowerGroup July 2017 20
ManpowerGroup 2017 Second Quarter Results
Third Quarter Outlook
Revenue Total Up 5-7% (Up 4-6% CC)
Americas Down 2-4% (Down 2-4% CC)
Southern Europe Up 12-14% (Up 10-12% CC)
Northern Europe Up 2-4% (Up 1-3% CC)
APME Up 2-4% (Up 5-7% CC)
Right Management Down 16-18% (Down 16-18% CC)
Gross Profit Margin 16.5 – 16.7%
Operating Profit Margin 4.0 – 4.2%
Tax Rate 37.0%
EPS $1.90 – $1.98 (favorable $0.02 currency)
ManpowerGroup July 2017 21
ManpowerGroup 2017 Second Quarter Results
Strong performance in the second quarter, with improving top line growth and solid
bottom line performance. Continued slow growth environment but improving economic
and labor market outlook in many parts of the world, particularly in Europe.
Our extensive portfolio of services and solutions bridges the gap between supply and
demand. We help companies engage productive and skilled talent where and when
they need them, and we help individuals find meaningful and sustainable employment
while acquiring additional skills and work experience.
Much of our progress in innovation, efficiency, and new service offerings will be
enabled by leveraging technology and strengthening our digital capabilities. Our
investments in these areas are helping to build relationships with clients and
candidates while improving our productivity.
Key Take Aways