Document




UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 2, 2018

MANPOWERGROUP INC.
(Exact name of registrant as specified in its charter)
 

 
Wisconsin
1-10686
39-1672779
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)


100 Manpower Place
 
Milwaukee, Wisconsin
53212
(Address of principal executive offices)
(Zip Code)

Registrant's telephone number, including area code:  (414) 961-1000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨
Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12)

¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨






Item 2.02   Results of Operations and Financial Condition
 
The information in this Item 2.02, including exhibit 99.1 attached hereto, is furnished solely pursuant to Item 2.02 of Form 8-K. Consequently, such information is not deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section. Further, the information in this Item 2.02, including exhibit 99.1, shall not be deemed to be incorporated by reference into the filings of the registrant under the Securities Act of 1933.
 
On February 2, 2018, we issued a press release announcing our results of operations for the three months and year ended December 31, 2017. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.


 
Item 9.01.                      Exhibits.
 
Exhibit No.
Description







SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.


 
 
 
MANPOWERGROUP INC.
 
 
 
 
 
 
Dated: February 2, 2018
 
By:
/s/ John T. McGinnis
 
 
 
 
John T. McGinnis
Executive Vice President and
Chief Financial Officer
 

 







EXHIBIT INDEX
 
Exhibit No.
Description





Exhibit


Exhibit 99.1
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12019216&doc=34


FOR IMMEDIATE RELEASE                Contact:
Jack McGinnis
+1.414.906.7977
jack.mcginnis@manpowergroup.com






ManpowerGroup Reports 4th Quarter and Full Year 2017 Results

MILWAUKEE, February 2, 2018 -- ManpowerGroup (NYSE: MAN) today reported net earnings of $3.22 per diluted share for the three months ended December 31, 2017 compared to $1.87 per diluted share in the prior year period. The net earnings in the quarter were $216.3 million compared to $127.4 million a year earlier. Revenues for the fourth quarter totaled $5.6 billion, an increase of 14% from the year earlier period.
Financial results in the quarter were significantly impacted by discrete net tax benefits primarily related to U.S. tax reform through the enactment of the Tax Cuts and Jobs Act in the fourth quarter. Discrete net tax benefits positively impacted earnings per share by $1.10 in the fourth quarter.
Financial results in the quarter were also significantly impacted by stronger foreign currencies relative to the U.S. dollar compared to the prior year period. On a constant currency basis, revenues increased 7% and net earnings per diluted share increased 67%. Excluding the discrete net tax benefits, on a constant currency basis, net earnings per diluted share increased 8%. Earnings per share in the quarter were positively impacted 10 cents by changes in foreign currencies compared to the prior year.
Jonas Prising, ManpowerGroup Chairman & CEO, said: "We are very pleased with our strong performance in the fourth quarter, with improved revenue growth and good profitability. These strong quarterly results capped off the full year 2017 where we delivered strong top line growth and profit performance.
“The war for talent is intensifying globally, and our clients are focused on finding the best talent and building their organizational agility, while individuals are interested in opportunities that build their skills and advance their careers. We have anticipated these market trends, and as we start 2018, we are confident that our superior global footprint, our extensive portfolio of workforce solutions and our great people put us in a formidable position to continue to create value for our clients and candidates.





“We are anticipating diluted earnings per share in the first quarter of 2018 to be in the range of $1.60 to $1.68, which includes a positive impact of tax reform of 20 cents and a positive impact from foreign currency of 15 cents,” Prising stated.
Net earnings for the year ended December 31, 2017 were $545.4 million, or $8.04 per diluted share compared to net earnings of $443.7 million, or $6.27 per diluted share in the prior year. The full year period included restructuring costs which reduced earnings per share by 41 cents and discrete income tax benefits in the first and fourth quarters which increased earnings per share by $1.28. Revenues for the year were $21.0 billion, an increase of 7% from the prior year and an increase of 6% in constant currency. 2017 earnings were positively impacted by 10 cents per diluted share due to changes in foreign currencies compared to the prior year.
In conjunction with its fourth quarter and full year earnings release, ManpowerGroup will broadcast its conference call live over the Internet on February 2, 2018 at 7:30 a.m. CST (8:30 a.m. EST). Interested parties are invited to listen to the webcast and view the presentation by logging on to http://investor.manpowergroup.com/ in the section titled “Investor Relations.


Supplemental financial information referenced in the conference call can be found at

http://investor.manpowergroup.com/ .


About ManpowerGroup

ManpowerGroup (NYSE: MAN), the leading global workforce solutions company, helps organizations transform in a fast-changing world of work by sourcing, assessing, developing and managing the talent that enables them to win. We develop innovative solutions for over 400,000 clients and connect 3+ million people to meaningful, sustainable work across a wide range of industries and skills. Our expert family of brands - Manpower®, Experis®, Right Management® and ManpowerGroup® Solutions - creates substantially more value for candidates and clients across 80 countries and territories and has done so for nearly 70 years. In 2017, ManpowerGroup was named one of the World's Most Ethical Companies for the seventh consecutive year and one of Fortune's Most Admired Companies, confirming our position as the most trusted and admired brand in the industry. See how ManpowerGroup is powering the future of work: www.manpowergroup.com

Forward-Looking Statements
This news release contains statements, including earnings projections, that are forward-looking in nature and, accordingly, are subject to risks and uncertainties regarding the Company’s expected future results. The Company’s actual results may differ materially from those described or contemplated in the forward-looking statements. Factors that may cause the Company’s actual results to differ materially from those contained in the forward-looking statements can be found in the Company’s reports filed with the SEC, including the information under the heading ‘Risk Factors’ in its Annual Report on Form 10-K for the year ended December 31, 2016, which information is incorporated herein by reference.

###









ManpowerGroup
Results of Operations
(In millions, except per share data)
 
 
 
 
 
 
 
 
 
Three Months Ended December 31
 
 
 
 
 
% Variance
 
 
 
 
 
Amount
 
Constant
 
2017
 
2016
 
Reported
 
Currency
 
(Unaudited)
Revenues from services (a)
$
5,637.5

 
$
4,956.1

 
13.7
 %
 
7.3
%
Cost of services
4,703.0

 
4,115.1

 
14.3
 %
 
7.7
%
  Gross profit
934.5

 
841.0

 
11.1
 %
 
5.4
%
Selling and administrative expenses
695.8

 
629.0

 
10.6
 %
 
5.3
%
  Operating profit
238.7

 
212.0

 
12.6
 %
 
5.9
%
Interest and other expenses
14.7

 
15.1

 
-2.4
 %
 

  Earnings before income taxes
224.0

 
196.9

 
13.8
 %
 
7.9
%
Provision for income taxes
7.7

 
69.5

 
-88.9
 %
 

  Net earnings
$
216.3

 
$
127.4

 
69.7
 %
 
64.3
%
Net earnings per share - basic
$
3.26

 
$
1.89

 
72.5
 %
 

Net earnings per share - diluted
$
3.22

 
$
1.87

 
72.2
 %
 
66.8
%
Weighted average shares - basic
66.4

 
67.5

 
-1.6
 %
 

Weighted average shares - diluted
67.3

 
68.3

 
-1.5
 %
 

 
 
 
 
 
 
 
 
(a) Revenues from services include fees received from our franchise offices of $6.2 million and $6.1 million for the three months ended December 31, 2017 and 2016, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $270.5 million and $257.8 million for the three months ended December 31, 2017 and 2016, respectively.





ManpowerGroup
Operating Unit Results
(In millions)
 
 
 
 
 
 
 
 
 
Three Months Ended December 31
 
 
 
 
 
% Variance
 
 
 
 
 
Amount
 
Constant
 
2017
 
2016
 
Reported
 
Currency
 
(Unaudited)
Revenues from Services:
 
 
 
 
 
 
 
  Americas:
 
 
 
 
 
 
 
      United States (a)
$
666.3

 
$
684.7

 
-2.7
 %
 
-2.7
 %
      Other Americas
405.5

 
378.2

 
7.2
 %
 
6.1
 %
 
1,071.8

 
1,062.9

 
0.8
 %
 
0.4
 %
  Southern Europe:
 
 
 
 
 
 
 
      France
1,501.7

 
1,228.6

 
22.2
 %
 
12.0
 %
      Italy
428.9

 
305.8

 
40.3
 %
 
28.5
 %
      Other Southern Europe
468.4

 
377.8

 
24.0
 %
 
13.9
 %
 
2,399.0

 
1,912.2

 
25.5
 %
 
15.0
 %
  Northern Europe
1,418.1

 
1,292.8

 
9.7
 %
 
1.6
 %
  APME
695.2

 
629.6

 
10.4
 %
 
9.1
 %
  Right Management
53.4

 
58.6

 
-8.9
 %
 
-11.6
 %
 
$
5,637.5

 
$
4,956.1

 
13.7
 %
 
7.3
 %
Operating Unit Profit:
 
 
 
 
 
 
 
  Americas:
 
 
 
 
 
 
 
      United States
$
37.9

 
$
39.1

 
-3.1
 %
 
-3.1
 %
      Other Americas
19.8

 
14.2

 
39.3
 %
 
38.3
 %
 
57.7

 
53.3

 
8.1
 %
 
7.9
 %
  Southern Europe:
 
 
 
 
 
 
 
      France
80.6

 
67.0

 
20.3
 %
 
10.3
 %
      Italy
34.5

 
21.8

 
58.3
 %
 
44.8
 %
      Other Southern Europe
18.0

 
13.1

 
37.5
 %
 
28.5
 %
 
133.1

 
101.9

 
30.6
 %
 
20.0
 %
  Northern Europe
47.1

 
48.8

 
-3.7
 %
 
-10.1
 %
  APME
28.1

 
21.7

 
30.6
 %
 
29.6
 %
  Right Management
10.6

 
11.9

 
-11.0
 %
 
-13.3
 %
 
276.6

 
237.6

 
 
 
 
Corporate expenses
(28.9
)
 
(16.6
)
 
 
 
 
Intangible asset amortization expense
(9.0
)
 
(9.0
)
 
 
 
 
    Operating profit
238.7

 
212.0

 
12.6
 %
 
5.9
 %
Interest and other expenses (b)
(14.7
)
 
(15.1
)
 
 
 
 
    Earnings before income taxes
$
224.0

 
$
196.9

 
 
 
 
 
 
 
 
 
 
 
 
(a)  In the United States, revenues from services include fees received from our franchise offices of $3.8 million and $4.0 million for the three months ended December 31, 2017 and 2016, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $164.3 million and $174.5 million for the three months ended December 31, 2017 and 2016, respectively.
 
 
 
 
 
 
 
 
(b) The components of interest and other expenses were:
 
 
 
 
 
2017
 
2016
 
 
 
 
        Interest expense
$
10.1

 
$
10.0

 
 
 
 
        Interest income
(1.4
)
 
(1.1
)
 
 
 
 
        Foreign exchange losses
0.4

 
1.2

 
 
 
 
        Miscellaneous expenses, net
5.6

 
5.0

 
 
 
 
 
$
14.7

 
$
15.1

 
 
 
 






ManpowerGroup
Results of Operations
(In millions, except per share data)
 
 
 
 
 
 
 
 
 
Year Ended December 31
 
 
 
 
 
% Variance
 
 
 
 
 
Amount
 
Constant
 
2017
 
2016
 
Reported
 
Currency
 
(Unaudited)
Revenues from services (a)
$
21,034.3

 
$
19,654.1

 
7.0
 %
 
6.0
%
Cost of services
17,549.7

 
16,320.3

 
7.5
 %
 
6.4
%
  Gross profit
3,484.6

 
3,333.8

 
4.5
 %
 
3.6
%
Selling and administrative expenses
2,696.4

 
2,583.0

 
4.4
 %
 
3.7
%
  Operating profit
788.2

 
750.8

 
5.0
 %
 
3.1
%
Interest and other expenses
50.9

 
49.5

 
2.8
 %
 
 
  Earnings before income taxes
737.3

 
701.3

 
5.1
 %
 
3.5
%
Provision for income taxes
191.9

 
257.6

 
-25.5
 %
 
 
  Net earnings
$
545.4

 
$
443.7

 
22.9
 %
 
21.3
%
Net earnings per share - basic
$
8.13

 
$
6.33

 
28.4
 %
 
 
Net earnings per share - diluted
$
8.04

 
$
6.27

 
28.2
 %
 
26.6
%
Weighted average shares - basic
67.1

 
70.1

 
-4.3
 %
 
 
Weighted average shares - diluted
67.9

 
70.8

 
-4.2
 %
 
 
 
 
 
 
 
 
 
 
(a) Revenues from services include fees received from our franchise offices of $23.7 million and $23.3 million for the years ended December 31, 2017 and 2016, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $1,029.8 million and $1,019.9 million for the years ended December 31, 2017 and 2016, respectively.





ManpowerGroup
Operating Unit Results
(In millions)
 
 
 
 
 
 
 
 
 
Year Ended December 31
 
 
 
 
 
% Variance
 
 
 
 
 
Amount
 
Constant
 
2017
 
2016
 
Reported
 
Currency
 
(Unaudited)
Revenues from Services:
 
 
 
 
 
 
 
  Americas:
 
 
 
 
 
 
 
      United States (a)
$
2,659.0

 
$
2,836.8

 
-6.3
 %
 
-6.3
 %
      Other Americas
1,557.4

 
1,460.4

 
6.6
 %
 
7.1
 %
 
4,216.4

 
4,297.2

 
-1.9
 %
 
-1.7
 %
  Southern Europe:
 
 
 
 
 
 
 
      France
5,477.2

 
4,837.4

 
13.2
 %
 
10.6
 %
      Italy
1,475.9

 
1,167.7

 
26.4
 %
 
23.3
 %
      Other Southern Europe
1,703.9

 
1,492.5

 
14.2
 %
 
10.8
 %
 
8,657.0

 
7,497.6

 
15.5
 %
 
12.7
 %
  Northern Europe
5,306.4

 
5,129.1

 
3.5
 %
 
3.4
 %
  APME
2,636.4

 
2,471.3

 
6.7
 %
 
6.4
 %
  Right Management
218.1

 
258.9

 
-15.8
 %
 
-15.6
 %
 
$
21,034.3

 
$
19,654.1

 
7.0
 %
 
6.0
 %
Operating Unit Profit:
 
 
 
 
 
 
 
  Americas:
 
 
 
 
 
 
 
      United States
$
152.5

 
$
142.9

 
6.7
 %
 
6.7
 %
      Other Americas
61.2

 
53.6

 
14.1
 %
 
14.7
 %
 
213.7

 
196.5

 
8.7
 %
 
8.9
 %
  Southern Europe:
 
 
 
 
 
 
 
      France
278.0

 
250.6

 
10.9
 %
 
8.1
 %
      Italy
104.5

 
79.1

 
32.1
 %
 
28.6
 %
      Other Southern Europe
59.4

 
47.2

 
26.0
 %
 
22.9
 %
 
441.9

 
376.9

 
17.2
 %
 
14.2
 %
  Northern Europe
140.7

 
173.0

 
-18.7
 %
 
-20.6
 %
  APME
98.9

 
88.5

 
11.8
 %
 
11.9
 %
  Right Management
36.0

 
44.7

 
-19.4
 %
 
-19.7
 %
 
931.2

 
879.6

 
 
 
 
Corporate expenses
(108.4
)
 
(92.8
)
 
 
 
 
Intangible asset amortization expense
(34.6
)
 
(36.0
)
 
 
 
 
    Operating profit
788.2

 
750.8

 
5.0
 %
 
3.1
 %
Interest and other expenses (b)
(50.9
)
 
(49.5
)
 
 
 
 
    Earnings before income taxes
$
737.3

 
$
701.3

 
 
 
 
 
 
 
 
 
 
 
 
(a) In the United States, revenues from services include fees received from our franchise offices of $14.8 million and $15.1 million for the years ended December 31, 2017 and 2016, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $651.9 million and $686.0 million for the years ended December 31, 2017 and 2016, respectively.
 
 
 
 
 
 
 
 
(b) The components of interest and other expenses were:
 
 
 
 
 
2017
 
2016
 
 
 
 
        Interest expense
$
38.2

 
$
37.9

 
 
 
 
        Interest income
(4.8
)
 
(3.6
)
 
 
 
 
        Foreign exchange losses
0.8

 
2.8

 
 
 
 
        Miscellaneous expenses, net
16.7

 
12.4

 
 
 
 
 
$
50.9

 
$
49.5

 
 
 
 





ManpowerGroup
Consolidated Balance Sheets
(In millions)
 
 
 
 
 
Dec. 31
 
Dec. 31
 
2017
 
2016
 
(Unaudited)
ASSETS
 
 
 
Current assets:
 
 
 
  Cash and cash equivalents
$
689.0

 
$
598.5

  Accounts receivable, net
5,370.5

 
4,413.1

  Prepaid expenses and other assets
111.7

 
121.3

      Total current assets
6,171.2

 
5,132.9

Other assets:
 
 
 
  Goodwill
1,343.0

 
1,239.9

  Intangible assets, net
284.0

 
294.4

  Other assets
927.7

 
759.7

      Total other assets
2,554.7

 
2,294.0

Property and equipment:
 
 
 
  Land, buildings, leasehold improvements and equipment
633.4

 
567.0

  Less: accumulated depreciation and amortization
475.7

 
419.7

    Net property and equipment
157.7

 
147.3

              Total assets
$
8,883.6

 
$
7,574.2

LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
Current liabilities:
 
 
 
  Accounts payable
$
2,279.4

 
$
1,914.4

  Employee compensation payable
230.6

 
208.1

  Accrued liabilities
490.9

 
398.6

  Accrued payroll taxes and insurance
794.7

 
649.2

  Value added taxes payable
545.4

 
448.7

  Short-term borrowings and current maturities of long-term debt
469.4

 
39.8

      Total current liabilities
4,810.4

 
3,658.8

Other liabilities:
 
 
 
  Long-term debt
478.1

 
785.6

  Other long-term liabilities
737.5

 
683.4

      Total other liabilities
1,215.6

 
1,469.0

Shareholders' equity:
 
 
 
  ManpowerGroup shareholders' equity
 
 
 
     Common stock
1.2

 
1.2

     Capital in excess of par value
3,302.6

 
3,227.2

     Retained earnings
2,713.0

 
2,291.3

     Accumulated other comprehensive loss
(288.2
)
 
(426.1
)
     Treasury stock, at cost
(2,953.7
)
 
(2,731.7
)
        Total ManpowerGroup shareholders' equity
2,774.9

 
2,361.9

  Noncontrolling interests
82.7

 
84.5

           Total shareholders' equity
2,857.6

 
2,446.4

              Total liabilities and shareholders' equity
$
8,883.6

 
$
7,574.2






ManpowerGroup
Consolidated Statements of Cash Flows
(In millions)
 
 
 
 
 
Year Ended
 
December 31
 
2017
 
2016
 
(Unaudited)
Cash Flows from Operating Activities:
 
 
 
  Net earnings
$
545.4

 
$
443.7

  Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
      Depreciation and amortization
84.4

 
85.3

      Deferred income taxes
(196.8
)
 
74.0

      Provision for doubtful accounts
18.1

 
20.4

      Share-based compensation
28.7

 
27.1

      Excess tax benefit on exercise of share-based awards

 
(0.8
)
  Changes in operating assets and liabilities, excluding the impact of acquisitions:
 
 
 
      Accounts receivable
(544.9
)
 
(317.2
)
      Other assets
(68.6
)
 
(75.3
)
      Other liabilities
534.6

 
342.8

            Cash provided by operating activities
400.9

 
600.0

Cash Flows from Investing Activities:
 
 
 
  Capital expenditures
(54.7
)
 
(56.9
)
  Acquisitions of businesses, net of cash acquired
(32.7
)
 
(57.6
)
  Proceeds from the sale of investments, property and equipment
12.9

 
4.1

            Cash used in investing activities
(74.5
)
 
(110.4
)
Cash Flows from Financing Activities:
 
 
 
  Net change in short-term borrowings
5.5

 
(0.3
)
  Proceeds from long-term debt
0.1

 

  Repayments of long-term debt
(0.4
)
 
(6.4
)
  Payments of contingent consideration for acquisitions
(13.0
)
 
(2.9
)
  Proceeds from share-based awards and other equity transactions
34.2

 
18.0

  Other share-based award transactions
(18.1
)
 
(5.4
)
  Repurchases of common stock
(203.9
)
 
(482.2
)
  Dividends paid
(123.7
)
 
(118.4
)
            Cash used in financing activities
(319.3
)
 
(597.6
)
Effect of exchange rate changes on cash
83.4

 
(24.0
)
Change in cash and cash equivalents
90.5

 
(132.0
)
Cash and cash equivalents, beginning of period
598.5

 
730.5

Cash and cash equivalents, end of period
$
689.0

 
$
598.5




earningspresentation2017
ManpowerGroup Fourth Quarter Results | February 2, 2018 Exhibit 99.2


 
ManpowerGroup February 2018 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 February 2018 3 ManpowerGroup 2017 Fourth 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. Consolidated Financial Highlights As Reported Q4 Financial Highlights 14% Revenue $5.6B 7% CC 40 bps Gross Margin 16.6% 13% Operating Profit $239M 6% CC 10 bps OP Margin 4.2% 72% EPS $3.22 67% CC


 
ManpowerGroup February 2018 4 ManpowerGroup 2017 Fourth Quarter Results As Reported Excluding Restructuring Costs(1) 2017 Financial Highlights 7% 7% Revenue $21.0B 6% CC 6% CC 40 bps 40 bps Gross Margin 16.6% 5% 10% Operating Profit $788M 3% CC 8% CC 10 bps 10 bps OP Margin 3.7% 28% 35% EPS $8.04 27% CC 33% CC Consolidated Financial Highlights (1) Excludes the impact of restructuring costs of $34.5M ($27.8M net of tax) in H1 2017.


 
ManpowerGroup February 2018 5 ManpowerGroup 2017 Fourth 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. Consolidated Financial Highlights (CFO Commentary) As Reported Q4 Financial Highlights 14% Revenue $5.6B 7% CC 40 bps Gross Margin 16.6% 13% Operating Profit $239M 6% CC 10 bps OP Margin 4.2% 72% EPS $3.22 67% CC


 
ManpowerGroup February 2018 6 ManpowerGroup 2017 Fourth Quarter Results EPS Bridge – Q4 vs. Guidance Midpoint $2.12 $2.05 $2.12 $3.22 +0.07 +0.02 -0.02 Q4 2017 Guidance Midpoint Operational Performance Tax rate excluding tax reform (36.4% vs 37.0%) Other/Currency Q4 2017 excluding tax reform Discrete impacts of tax reform Q4 2017 +1.10


 
ManpowerGroup February 2018 7 ManpowerGroup 2017 Fourth Quarter Results Note: Provision for income taxes for 2017 included $72M of the French business tax (CVAE), which is classified as income taxes in accordance with U.S. GAAP. This represented 6.5% of the effective tax rate in 2017. Provision for Income Taxes (in millions of USD) Tax ETR Tax ETR Provision for income taxes, excluding tax reform (82) 36.4% (266) 36.0% Discrete impacts of tax reform: US tax reform Change in deferred taxes due to Territorial Tax Regime 248 248 Transition tax on one-time deemed repatriation (170) (170) France tax reform Change in deferred taxes due to tax rate reductions (4) (4) Total discrete tax items 74 74 Provision for income taxes, as reported (8) 3.4% (192) 26.0% Q4 YTD


 
ManpowerGroup February 2018 8 ManpowerGroup 2017 Fourth Quarter Results 17.0% 16.6% Q4 2016 Staffing/Interim Permanent Recruitment Solutions Right Management Currency Q4 2017 -0.5% -0.1% +0.1% -0.1% +0.2% Consolidated Gross Margin Change


 
ManpowerGroup February 2018 9 ManpowerGroup 2017 Fourth Quarter Results Growth █ Manpower █ Experis █ ManpowerGroup Solutions █ Right Management █ ManpowerGroup – Total Business Line Gross Profit – Q4 2017 $592M 63% $185M 20% $122M 13% $36M 4% $935M 11% 5% CC 9% 5% CC 22% 17% CC -7% -10% CC 11% 5% CC


 
ManpowerGroup February 2018 10 ManpowerGroup 2017 Fourth Quarter Results 629.0 695.8 Q4 2016 Currency Acquisitions Operational Impact Q4 2017 +33.6 +30.1 12.7% % of Revenue % of Revenue 12.3% +3.1 SG&A Expense Bridge – Q4 YoY (in millions of USD)


 
ManpowerGroup February 2018 11 ManpowerGroup 2017 Fourth Quarter Results 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) As Reported Q4 Financial Highlights 1% Revenue $1.1B 0% CC 8% OUP $58M 8% CC 40 bps OUP Margin 5.4%


 
ManpowerGroup February 2018 12 ManpowerGroup 2017 Fourth Quarter Results Revenue Growth - CC Revenue Growth % of Segment Revenue Americas – Q4 Revenue Growth YoY Average Daily Revenue Growth - CC -3% 15% -2% 5% -3% 10% 12% 3% US Mexico Argentina Other 63% 13% 5% 19% -3% 12% 12%


 
ManpowerGroup February 2018 13 ManpowerGroup 2017 Fourth Quarter Results As Reported Q4 Financial Highlights 25% Revenue $2.4B 15% CC 31% OUP $133M 20% CC 20 bps OUP Margin 5.5% Southern Europe Segment (41% of Revenue)


 
ManpowerGroup February 2018 14 ManpowerGroup 2017 Fourth Quarter Results (1) Southern Europe – Q4 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue (1) On an organic basis, revenue for Spain increased 23% (+12% in CC; and 12% on an average daily revenue basis). Average Daily Revenue Growth - CC 22% 40% 33% 19% 12% 28% 22% 9% France Italy Spain Other 63% 17% 7% 13% 12% 31% 22%


 
ManpowerGroup February 2018 15 ManpowerGroup 2017 Fourth Quarter Results Northern Europe Segment (25% of Revenue) As Reported Q4 Financial Highlights 10% Revenue $1.4B 2% CC 4% OUP $47M 10% CC 50 bps OUP Margin 3.3%


 
ManpowerGroup February 2018 16 ManpowerGroup 2017 Fourth Quarter Results 3% 15% 7% 13% 11% 22% -3% 5% 1% 4% 1% 11% UK Germany Nordics Netherlands Belgium Other 30% 21% 20% 14% 8% 7% -3% 8% 2% 6% 1% Northern Europe – Q4 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue Average Daily Revenue Growth - CC


 
ManpowerGroup February 2018 17 ManpowerGroup 2017 Fourth Quarter Results As Reported Q4 Financial Highlights 10% Revenue $695M 9% CC 31% OUP $28M 30% CC 60 bps OUP Margin 4.0% APME Segment (13% of Revenue)


 
ManpowerGroup February 2018 18 ManpowerGroup 2017 Fourth Quarter Results APME – Q4 Revenue Growth YoY Revenue Growth - CC Revenue Growth % of Segment Revenue Average Daily Revenue Growth - CC 3% 3% 20% 7% 1% 15% Japan Australia/NZ Other 33% 23% 44% 3% 1%


 
ManpowerGroup February 2018 19 ManpowerGroup 2017 Fourth Quarter Results As Reported Q4 Financial Highlights 9% Revenue $53M 12% CC 11% OUP $11M 13% CC 40 bps OUP Margin 19.9% Right Management Segment (1% of Revenue)


 
ManpowerGroup February 2018 20 ManpowerGroup 2017 Fourth Quarter Results Cash Flow Summary – Full Year (in millions of USD) 2017 2016 Net Earnings 545 444 Non-cash Provisions and Other (65) 206 Change in Operating Assets/Liabilities (79) (50) Capital Expenditures (55) (57) Free Cash Flow 346 543 Change in Debt 5 (7) Acquisitions of Businesses, including Contingent Considerations, net of cash acquired (46) (61) Other Equity Transactions 16 13 Repurchases of Common Stock (204) (482) Dividends Paid (124) (118) Effect of Exchange Rate Changes 83 (24) Other 15 4 Change in Cash 91 (132)


 
ManpowerGroup February 2018 21 ManpowerGroup 2017 Fourth Quarter Results Balance Sheet Highlights Total Debt (in millions of USD) Total Debt to Total Capitalization Total Debt Net Debt (Cash) (221) (231) 125 227 109 318 256 259 923 948 516 468 855 825 834 891 -250 50 350 650 950 2013 2014 2015 2016 Q1 Q2 Q3 Q4 2017 15% 14% 24% 25% 25% 26% 25% 25% 0% 10% 20% 30% 2013 2014 2015 2016 Q1 Q2 Q3 Q4 2017


 
ManpowerGroup February 2018 22 ManpowerGroup 2017 Fourth 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 0.73 and a fixed charge coverage ratio of 5.22 as of December 31, 2017. As of December 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 $324.1M. 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 420 - Euro Notes - €400M 1.913% Sep 2022 478 - Revolving Credit Agreement 2.56% Sep 2020 - 599 Uncommitted lines and Other Various Various 50 274 Total Debt 948 873 Debt and Credit Facilities – December 31, 2017 (in millions of USD) (2) (1)


 
ManpowerGroup February 2018 23 ManpowerGroup 2017 Fourth Quarter Results First Quarter Outlook Total Up 13-15% (Up 4-6% CC) Americas Flat/Down 2% (Flat/Down 2% CC) Southern Europe Up 26-28% (Up 10-12% CC) Northern Europe Up 12-14% (Flat/Up 2% CC) APME Up 3-5% (Up 1-3% CC) Right Management Down 6-8% (Down 11-13% CC) Gross Profit Margin 16.2 – 16.4% Operating Profit Margin 3.0 – 3.2% Tax Rate 29% EPS $1.60 – $1.68 (favorable $0.15 currency) Revenue 33-34%  Anticipated elimination of French tax benefit as CICE transitions to a taxable subsidy. Annual Tax Rate Expectations(1) 27-28%  No U.S. tax on repatriations  CICE tax exempt 2018: 2019: (1) These estimates may be refined in future periods as further information becomes available.


 
February 2018 24 ManpowerGroup Our Strategies and Key Priorities provide the platform to achieve our new Financial Targets


 
ManpowerGroup February 2018 25 ManpowerGroup 2017 Fourth Quarter Results Strong Market Growth Fundamentals Companies demanding flexibility in cost structure given more volatile global economic cycles. Companies looking to the “experts” for workforce management solutions. Massive opportunity in emerging markets in Asia, Eastern Europe and Latin America. Job seekers looking for current positions as well as career advice and assistance. Companies reducing the number of vendors, partnering with those that best meet their talent needs.


 
ManpowerGroup February 2018 26 ManpowerGroup 2017 Fourth Quarter Results Strong and Connected Brands 63% of GP Leverage our trusted brand, while driving relentless efficiency / productivity • Targeted sales • Permanent recruitment growth • Multi-channel delivery • Centers of recruiting excellence • Core growth in Experis IT • Innovative talent resourcing • Permanent recruitment growth • Delivery excellence • Career Transition / Talent Management & Assessment • Tailored solutions to improve the effectiveness of organizations and individuals • RPO, MSP, Proservia, TBO • Expert workforce solutions that deliver performance 37% of GP Drive higher growth and gross margin while investing more in changing our business mix Sustainability, Mission and Values We are a world leader in innovative workforce solutions and services, helping clients win through our family of brands and offerings. Digitally-Fueled Transformation


 
ManpowerGroup February 2018 27 ManpowerGroup 2017 Fourth Quarter Results Profitable Growth Through Value Creation For our Clients For our Candidates Profitable Growth • Workforce experts providing world-leading workforce solutions • Flexibility to meet their talent needs • Frictionless interaction • Tailored solutions for each client – one size fits one • Globally diversified with a superior global footprint. • Provide candidates with skills and the best opportunities to meet their career goals • Frictionless recruiting • Associate apps to enhance connection with candidates and associates Our Employees Enabled by Technology • Passionate; highly trained • Strength in our last-mile delivery • Skill focus • Strong culture of collaboration and diversity • Recognized for corporate social responsibility • High employee engagement and net promoter scores


 
ManpowerGroup February 2018 28 ManpowerGroup 2017 Fourth Quarter Results SEARCH Data Analytics ASSESS Volume Screening & Assessment MEASURE Analytics & Reporting tools PERSONALIZE Candidate experience ENGAGE Candidate Relationship Management MANAGE Candidate Experience data Powering the Future of Work – Enabled by Technology Enabling employees to efficiently deliver a personalized candidate experience and valuable insights for clients. DATA ANALYTICS NEXT GEN APPLICATIONS DATA CENTER CONSOLIDATION FOCUS ON CYBERSECURITY Enhanced digital experience through ManpowerGroup Digital Ecosystem. Enhanced digital experience through ManpowerGroup Digital Ecosystem


 
ManpowerGroup February 2018 29 ManpowerGroup 2017 Fourth Quarter Results Financial Targets • Exceed or maintain key market revenue growth • Disciplined profitable growth • Focus on improvement in client mix • Assumes stable economic environment and consistent revenue growth and pricing • Growth driven by: − gross profit improvement − continued steady efficiency/productivity enhancements • Disciplined capital allocation to achieve a return well above cost of capital • Rigorous cash management with a focus on DSO • EBITA margin growth enabled • Capital efficiency metric in Executive Team and Global Management incentive plans for nearly 20 years EBITA Margin 4.5% - 5.0% Market Revenue Growth 15% ROIC


 
ManpowerGroup February 2018 30 ManpowerGroup 2017 Fourth Quarter Results Q & A