EX-99.2 3 exhibit_99-2.htm PRESENTATION MATERIALS FOR JANUARY 30, 2013 CONFERENCE CALL exhibit_99-2.htm
Exhibit 99.2
 
ManpowerGroup
4th Quarter
January 30, 2013
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
Forward-Looking Statement
This presentation includes forward-looking statements,
including earnings projections 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 Manpower Inc. Annual Report
on Form 10-K dated December 31, 2011, 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.
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
As
Reported
Excluding Non
-recurring
Items
 Q4 Financial Highlights
 5%
 5%
 Revenue $5.2B
 4% CC
 4% CC
 20 bps
 20 bps
 Gross Margin 16.9%
 19%
 12%
 Operating Profit $105M
 17% CC
 11% CC
 40 bps
 20 bps
 OP Margin 2.0%
 13%
 7%
 EPS $.68
 12% CC
 6% CC
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.
Consolidated Financial Highlights
3
(1) Excludes the impact of reorganization charges of $26.6M in Q4 2012 and $20.5M in Q4 2011.
(1)
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
EPS Bridge - Q4 vs. Guidance Midpoint
4
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
Non-Recurring Items
(in millions of USD, except per share amounts)
5
(1) Includes reorganization charges as follows:
 Q4 2012: Americas ($1.0M), Southern Europe ($2.8M), Northern Europe ($11.5M), APME ($0.4M), Right Management ($0.5M), Corporate ($10.4M)
 FY 2012: Americas ($9.3M), Southern Europe ($2.8M), Northern Europe ($11.5M), APME ($0.4M), Right Management ($10.9M), Corporate ($10.4M)
 FY 2011: Americas ($2.4M), Northern Europe ($12.0M), Right Management ($6.1M)
 
Q4 2012
FY 2012
FY 2011
 
Pre-tax
Earnings
Net
Earnings
EPS -
Diluted
Pre-tax
Earnings
Net
Earnings
EPS -
Diluted
Pre-tax
Earnings
Net
Earnings
EPS -
Diluted
Earnings, As Reported
$94.8
$ 53.3
$ 0.68
$ 368.4
$ 197.6
$ 2.47
$ 479.9
$ 251.6
$ 3.04
Reorganization Charges
26.6
18.3
 0.23
45.4
32.1
 0.40
20.5
16.3
 0.20
Legal Costs - US
-
-
 -
10.0
6.5
 0.08
-
-
-
Earnings, Excluding non
 -recurring items
$ 121.4
$ 71.6
$ 0.91
$ 423.8
$ 236.2
$ 2.95
$ 500.4
$ 267.9
$ 3.24
(1)
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
Consolidated Gross Margin Change
6
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
7
Business Line Gross Profit - Q4 2012
█  ManpowerGroup Solutions    █  Right Management   
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
8
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
As
Reported
Excluding
Non-recurring
Items
 Q4 Financial Highlights
 0%
 0%
 Revenue $1.2B
 0% CC
 0% CC
 7%
 10%
 OUP  $36M
 8% CC
 11% CC
 20 bps
 30 bps
 OUP Margin 3.1%
9
(1)
Americas Segment
(22% of Revenue)
(1) Included in these amounts is the US, which had revenue of $751M (-2%) and OUP of $22M (-17%, or
 -20% excluding reorganization charges in Q4 2012 and Q4 2011).
(2) Excludes the impact of reorganization charges of $1.0M in Q4 2012 and $2.4M in Q4 2011.
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)
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
Americas - Q4 Revenue Growth YoY
10
% of Segment
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
As
Reported
Excluding
Non-recurring
Items
 Q4 Financial Highlights
 12%
 12%
 Revenue $1.8B
 8% CC
 8% CC
 34%
 28%
 OUP  $28M
 31% CC
 24% CC
 50 bps
 30 bps
 OUP Margin 1.6%
11
(1)
Southern Europe Segment
(34% of Revenue)
(1) Included in these amounts is France, which had revenue of $1.3B (-9% CC) and OUP of $18M (-8% CC, or -1%
 excluding reorganization charges in Q4 2012). On an organic basis, France revenue decreased 10% in CC. On
 an organic basis, Segment revenue decreased 9% in CC.
(2) Excludes the impact of reorganization charges of $2.8M in Q4 2012.
(2)
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
Southern Europe - Q4 Revenue Growth YoY
12
Revenue Growth - CC
Revenue Growth
% of Segment
Revenue
74%
15%
5%
6%
(1)
(1) On an organic basis, France revenue decreased 14% (-10% in CC).
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
As
Reported
Excluding
Non-recurring
Items
 Q4 Financial Highlights
 3%
 3%
 Revenue $1.5B
 3% CC
 3% CC
 34%
 28%
 OUP  $34M
 34% CC
 28% CC
 110 bps
 100 bps
 OUP Margin 2.3%
13
Northern Europe Segment
(29% of Revenue)
(1)
(1) Excludes the impact of reorganization charges of $11.5M in Q4 2012 and $12.0M in Q4 2011.
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
Northern Europe - Q4 Revenue Growth YoY
14
Revenue Growth - CC
Revenue Growth
% of Segment
Revenue
26%
24%
12%

10%

21%
7%
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
As
Reported
Excluding
Non-recurring
Items
 Q4 Financial Highlights
 0%
 0%
 Revenue $698M
 1% CC
 1% CC
 31%
 33%
 OUP  $28M
 33% CC
 35% CC
 100 bps
 100 bps
 OUP Margin 4.1%
APME Segment
(13% of Revenue)
15
(1)
(1) Excludes the impact of reorganization charges of $0.4M in Q4 2012.
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
APME - Q4 Revenue Growth YoY
16
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
17
Right Management Segment
(2% of Revenue)
As
Reported
Excluding
Non-recurring
Items
 Q4 Financial Highlights
 6%
 6%
 Revenue $85M
 7% CC
 7% CC
N/A
N/A
 OUP  $8M
N/A
N/A
 1670 bps
 960 bps
 OUP Margin 9.7%
(1)
(1) Excludes the impact of reorganization charges of $0.5M in Q4 2012 and $6.1M in Q4 2011.
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
($ in millions)
 2012
 
2011
Cash provided by operating activities
332
 
69
Capital Expenditures
(72)
 
(65)
 Free Cash Flow
260
 
4
Change in Debt
42
 
15
Share Repurchases
(138)
 
(105)
Dividends paid
(68)
 
(65)
Acquisitions of Businesses, net
(49)
 
(49)
Effect of Exchange Rate Changes
18
 
(28)
Other
 3
 
36
 Change in Cash
68
 
(192)
 
 
 
 
 
 
 
 
Cash Flow Summary - Full Year
18
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
Balance Sheet Highlights
Total Debt
($ in millions)
Total Debt to
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
 
Interest
Rate
Maturity
Date
Total
Outstanding
at 12/31/12
 
Remaining
Available
at 12/31/12
 
Euro Notes:
 
 
 
 
 
 
 - Euro 200M
4.86%
Jun 2013
264
 
-
 
 - Euro 350M
4.505%
Jun 2018
462
 
-
 
Revolving Credit Agreement
1.48%
Oct 2016
-
 
799
 
Uncommitted lines and Other
Various
Various
44
 
335
 
Total Debt
 
 
770
 
1,134
Credit Facilities
($ in millions)
20
Represents subsidiary uncommitted lines of credit & overdraft facilities, which total $379.4M. 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.
(1)
(2)
(2)
(1)
The $800M 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 0.97 and a fixed charge coverage ratio of 2.82 as of December 31, 2012. As
of December 31, 2012, there were $0.9M of standby letters of credit issued under the agreement.
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
Revenue
Total
 Down 6-8% (Down 6-8% CC)
 
Americas
 Down 2-4% (Down 1-3% CC)
 
Southern Europe
 Down 10-12% (Down 11-13% CC)
 
Northern Europe
 Down 5-7% (Down 6-8% CC)
 
APME
 Down 6-8% (Down 1-3% CC)
Right Management
 Up 2-4% (Up 2-4% CC)
Gross Profit Margin
 16.6 - 16.8%
Operating Profit Margin
 1.4 - 1.6%
Tax Rate
 41%
EPS (before reorganization charges)
 $0.40 - $0.48 (no currency impact)
First Quarter Outlook
21
 (36% excl. reclassification of France business tax
 and 2012 WOTC credit)
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
Strategic Drivers
22
 
 
 
ManpowerGroup 2012 4th Quarter Results January 2013
ManpowerGroup 2012 4th Quarter Results January 2013
Questions
23