EX-99.2 3 exhibit_99-2.htm PRESENTATION MATERIALS FOR JULY 23, 2009 CONFERENCE CALL exhibit_99-2.htm
1
 
2009 July 23
MANPOWER INC.
2009 2nd Quarter Results
Exhibit 99.2
 
Helping Clients and Candidates
 
 
    Win for Over Six Decades
 
 
 
2
 This presentation includes forward-looking
 statements which are subject to 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 is contained in the
 Company’s Annual Report on Form 10-K
 dated December 31, 2008, 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.
Forward-Looking Statement
 
 
 
3
Throughout this presentation, the difference between reported variances and Constant Currency (CC) variances
represents the impact of currency on our financial results. Constant Currency is further explained on our Web site.
 
81% CC
Operating Profit $22M
OP Margin  0.6%
Revenue $3.8B
Gross Margin 18.3% 
EPS $0.25
36%
122 bps
290 bps
 81%
89%
88% CC
Q2 Highlights
(1)
(1) Gross profit margin declined 31 bps excluding the impact of the French payroll tax change in 2008.
27% CC
(2)
(2) Includes reorganization charges of $13.1M recorded in 2009.
Consolidated Financial Highlights
 
 
 
4
Consolidated Gross Margin Change
 
 
 
5
19% CC
Q2 Financial Highlights
24%
OUP Margin
- 0.3%
310 bps
Revenue
$595M
OUP
$(2M)
N/A
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.
(2)
(1) Included in these amounts is the US, which had revenue of $374M (-24%) and OUP of $(6M).
(2) The results above include the impact of acquisitions. On an organic basis, Americas revenue decreased
 29% in USD (23% in CC).
(2)
(1)
Americas Segment
(16% of Revenue)
 
 
 
6
Revenue Growth - CC
Revenue Growth
% of Segment
Revenue
63%
13%
8%
 16%
(1)
(1) On an organic basis, US revenue decreased 31% in USD.
Americas - Q2 Revenue Growth YoY
 
 
 
7
Q2 Financial Highlights
OUP Margin
0.4%
Revenue
$1.1B
OUP
$4M
44%
36% CC
320 bps
94%
93% CC
France Segment
(29% of Revenue)
 
 
 
8
Q2 Financial Highlights
OUP Margin
0.2%
Revenue
$1.5B
OUP
$3M
40%
28% CC
470 bps
(1) Included in these amounts is Italy, which had revenue of $230M (-48% in USD, -40% in CC) and OUP of
 $7M (-82% in USD, -79% in CC).
(2)  Includes reorganization charges of $5.5M recorded in 2009.
(2)
98%
97% CC
(1)
EMEA Segment
(39% of Revenue)
 
 
 
9
Revenue Growth - CC
Revenue Growth
% of Segment
Revenue
15%
15%
14%
11%
 10%

5%
 21%
9%
EMEA - Q2 Revenue Growth YoY
 
 
 
10
Q2 Financial Highlights
OUP Margin
0.9%
Revenue
$406M
OUP
$4M
14%
13% CC
110 bps
62%
71% CC
(1)
(1) Includes reorganization charges of $1.5M recorded in 2009.
Asia Pacific Segment
(11% of Revenue)
 
 
 
11
Revenue Growth - CC
Revenue Growth
% of Segment
Revenue
61%
18%
21%
Asia Pacific - Q2 Revenue Growth YoY
 
 
 
12
217%
232% CC
Q2 Financial Highlights
OUP Margin
26.8%
Revenue
$158M
OUP
$42M
36%
46% CC
1530 bps
Right Management Segment
(4% of Revenue)
 
 
 
13
Jefferson Wells Segment
(1% of Revenue)
Q2 Financial Highlights
OUP Margin
- 21.2%
Revenue
$48M
OUP
$(10M)
1900 bps
36%
N/A
(1)
(1) Includes reorganization charges of $5.9M recorded in 2009.
 
 
 
14
Financial Highlights
 
 
 
15
Results of Operations
(in millions)
 
 
 
16
Other
(21)
 
Change in Cash
233
24
(12)
2009
2008
Cash from Operations
379
266
Capital Expenditures
(17)
(52)
 Free Cash Flow
362
214
Share Repurchases
-
(53)
Change in Debt
(22)
26
($ in millions)
Effect of Exchange Rate Changes
(1)
45
Acquisitions of Businesses,
 net of cash acquired
(196)
(85)
Cash Flow Summary - First Half
 
 
 
17
Total Debt
($ in millions)
Total Debt to
Total Debt
Net Debt
2009
2009
Balance Sheet Highlights
 
 
 
18
(a)
(a)
$625M multi-currency Revolving Credit Agreement provided by 17 banks. As of June 30, 2009, there was a €100M borrowing under the
Revolving Credit Agreement at Euro LIBOR + 40 bps (our current credit spread). The Euro LIBOR portion has been swapped to a 5.71% fixed
rate until July 2010, resulting in a total current borrowing cost of 6.11%. The credit agreement requires, among other things, that we comply
with a Debt-to-EBITDA ratio of less than 3.25 to 1 and a fixed charge ratio of greater than 2.00 to 1. As defined in the agreement, we had a
Debt-to-EBITDA ratio of 1.9 to 1 and a fixed charge ratio of 2.5 to 1 as of June 30, 2009.
Interest
Rate
Maturity
Date
Total
Outstanding
Remaining
Available
Euro Notes:
- Euro 200M
4.86%
June 2013
281
 
-
 
 
- Euro 300M
4.58%
June 2012
421
 
-
 
 
Revolving Credit Agreement
6.11%
Nov 2012
140
 
474
 
 
368
 
Uncommitted lines and Other
Various
Various
32
 
 
 
Total Debt
874
 
842
 
(b)
(b)
During June we terminated our $100M U.S. Accounts Receivable Securitization program which would have expired in July 2009.
Credit Facilities as of June 30, 2009
($ in millions)
 
 
 
19
Revenue
Americas
Down 21-23%
France
Down 36-38%
(Down 31-33% CC)
Down 10-12%
Asia Pacific
(Down 11-13% CC)
Jefferson Wells
Right Management
 Up 23-25%
(Up 29-31% CC)
 Down 29-31%
(Down 24-26% CC)
Total
Gross Profit Margin
17.5-17.7%
Operating Profit Margin
0.7-0.9%
Tax Rate
37%
EPS
$0.07-$0.21
(Neg. $.01 Currency)
 Down 38-40%
EMEA
(Down 26-28% CC)
Down 32-34%
(Down 16-18% CC)
Third Quarter Outlook
 
 
 
Questions?
Answers
July 23, 2009
Manpower Inc.
2009 2nd Quarter Results