ManpowerGroup (In millions) | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------------|-------|---------|-------|-------------|------------------------------------|---------------------| | | | 2023 | | 2022 | % Variance \nAmount \nReported | Constant \nCurrency | | | | | | (Unaudited) | | | | Revenues from Services: | | | | | | | | Americas: | | | | | | | | United States | $ | 741.6 | $ | 854.2 | -13.2 % | -13.2 % | | Other Americas | | 388.6 | | 397.0 | -2.1 % | 9.0 % | | | ...

Operations and Revenue - As of December 31, 2023, ManpowerGroup operated 2,100 offices in approximately 75 countries, connecting millions of people to work each year [12]. - In the Americas segment, 67% of revenue was generated from the United States, with 286 branch and 131 franchise offices as of December 31, 2023 [31]. - In Southern Europe, the largest operations are in France (57% of segment revenue) and Italy (20% of segment revenue), with 1,139 branch offices in total [34]. - Approximately 91% of revenues in the Americas segment were derived from staffing/interim services during 2023 [33]. - In Northern Europe, 84% of revenues were generated from staffing/interim services in 2023 [40]. - The Asia Pacific Middle East (APME) region accounted for approximately 77% of revenues from staffing/interim services during 2023 [41]. - The company operates in approximately 75 countries, with 30% of its workforce in the Americas and 32% in Southern Europe [61]. - Approximately 84% of the company's revenues were generated outside of the United States, primarily in Europe [121]. Financial Performance - Revenues from services decreased by 4.6% in 2023, totaling $18,914.5 million compared to $19,827.5 million in 2022 [186]. - The Americas experienced a significant revenue decrease of 10.6%, primarily due to a $246.4 million decline in demand for staffing services [188]. - Operating profit decreased by 56.0% to $255.8 million, with an operating profit margin of 1.4%, down from 2.9% in 2022 [183]. - Net earnings fell by 76.3% to $88.8 million, with diluted net earnings per share dropping to $1.76 from $7.08 [187]. - The effective income tax rate increased to 56.9% in 2023, compared to 32.9% in 2022 [187]. - Selling and administrative expenses decreased by 4.7% in 2023, mainly due to a reduction in bonuses and sales commissions [198]. - Selling and administrative expenses increased by 15.8% in 2023 compared to 2022, primarily due to $120.4 million in restructuring costs, up from $0.8 million in 2022 [206]. Workforce and Talent Management - The company had around 27,900 full-time equivalent employees as of December 31, 2023 [53]. - The Manpower MyPath program has impacted over 240,000 lives through 2023, with MyPath associates now representing 36% of the associate talent pool [57]. - The Experis Academy has graduated more than 1,900 developers by the end of 2023, addressing skills gaps for over 170 tech companies across 17 countries [58]. - The Future Leader Program saw 198 employees complete it in 2023, totaling 832 since its inception in 2019 [68]. - The Accelerated Leadership Program had 58 completions in 2023, with a total of 90 since its launch in 2022 [68]. Economic and Market Conditions - ManpowerGroup's operations are sensitive to economic factors, making it challenging to forecast future demand for services with certainty [26]. - The company is sensitive to global macroeconomic conditions, with a significant risk of recession impacting demand for staffing services [82]. - Economic conditions in Europe, which accounts for 64% of the company's revenue, are particularly susceptible to geopolitical events and inflationary pressures [84]. - The company expects continued challenges in the business environment, particularly in North America and Europe, due to economic uncertainty [177]. Risks and Challenges - The competitive landscape in the employment services industry is intensifying, with pressure on pricing and the risk of clients opting for in-house resources or AI tools [91]. - The company faces challenges in maintaining profitability during periods of low demand, as selling and administrative expenses do not decline as quickly as revenues [83]. - The company is increasingly reliant on technology systems, which are vulnerable to cyberattacks and system failures, potentially leading to operational disruptions [99]. - Compliance with evolving data privacy and cybersecurity regulations, such as GDPR, adds operational burdens and potential financial penalties [97]. - The company faces intense competition for qualified personnel, particularly in the IT field, which may restrict its ability to fulfill customer requirements [103]. Strategic Initiatives - The company aims for 50% gender parity at the global leadership level by 2025 [64]. - The company is focused on championing diversity, equity, inclusion, and belonging (DEIB) across its operations [60]. - The company aims to diversify revenues beyond core staffing services, focusing on higher-margin professional resourcing, such as its Experis brand in IT recruitment [112]. - The company has made significant acquisitions, including ettain group in 2021, which may introduce unexpected costs and operational risks [117]. - The company has disposed of operations in the Philippines, Russia, and Hungary to optimize its strategic footprint, which may involve financial losses and reputational risks [119]. Shareholder Information - The company has authorized the repurchase of 5.0 million shares in August 2023, with 4.6 million shares remaining authorized for repurchase as of December 31, 2023 [167]. - The total number of shares repurchased in Q4 2023 was 697,138, with an average price paid per share of $71.95 [168]. - The cumulative total shareholder return on the company's common stock was $123 as of December 31, 2023, compared to $150 in 2021 [171]. - The company expects to continue paying semi-annual dividends, subject to review and change at the discretion of the Board of Directors [166]. Cybersecurity and Data Privacy - The company has experienced data security breaches in the past, which have not materially impacted operations, but ongoing vulnerabilities remain a concern [93]. - The Chief Information Security Officer (CISO) leads the global information security organization, providing regular reports on cybersecurity threats and assessments [153]. - The Audit Committee oversees the annual enterprise risk assessment, including cybersecurity threats and mitigation strategies [154].

ManpowerGroup Inc. (NYSE:MAN) Q4 2023 Earnings Conference Call January 30, 2024 8:30 AM ET Company Participants Jonas Prising - Chairman and Chief Executive Officer Jack McGinnis - Executive Vice President and Chief Financial Officer Conference Call Participants Andrew Steinerman - J.P. Morgan Jeff Silber - BMO Capital Markets Josh Chan - UBS Mark Marcon - Baird Kartik Mehta - Northcoast Research Manav Patnaik - Barclay’s Capital Tobey Sommer - Truist Securities Trevor Romeo - William Blair Heather Balsky - ...

Financial Performance - Q4 2023 - Revenue was $4.6 billion, a decrease of 4% as reported and 5% on a constant currency (CC) basis[7] - Gross profit was $811 million, representing 17.5% of revenue[15,7] - Reported EBITA was $24 million, or 0.5% of revenue, while adjusted EBITA was $116 million, or 2.5% of revenue[7] - Reported EPS was -$1.73, while adjusted EPS was +$1.45[7] Financial Performance - Full Year 2023 - Revenue was $18.9 billion, a decrease of 5% as reported and 4% on a constant currency (CC) basis[8] - Gross Margin was 17.8%[8] - Reported EBITA was $346 million, or 1.8% of revenue, while adjusted EBITA was $497 million, or 2.6% of revenue[8] - Reported EPS was $1.76, while adjusted EPS was $6.04[8] Segment Performance - Q4 2023 - Americas revenue was $1.1 billion, a decrease of 9% as reported and 4% on a constant currency basis, with an OUP margin of 3.3% (3.7% as adjusted)[66] - Southern Europe revenue was $914 million, with an OUP margin of -8.9% (+0.4% as adjusted)[91] - Northern Europe revenue was $552 million, with an OUP margin of 3.9%[112] - APME (Asia Pacific Middle East) revenue was $552 million, a decrease of 5% to 3% CC and -1% OCC[112] Debt and Cash Flow - Total debt outstanding as of December 31, 2023, was $962 million[105] - Free cash flow for the full year 2023 was $270 million[83] Q1 2024 Outlook - The company anticipates a revenue decline of 5-9% (4-8% CC)[107] - Gross profit margin is expected to be between 17.2% and 17.4%[107] - The company expects an EBITA margin of 1.7-1.9% excluding Proservia Germany[107] - EPS is projected to be $0.88-$0.98 excluding Proservia Germany, with an unfavorable currency impact of $0.02[107]

United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended: September 30, 2023 or ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from: ______to______ Commission file number: 1-10686 MANPOWERGROUP INC. (Exact name of registrant as specified in its charter) | Wisconsin | 39-1672779 | | -- ...

United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended: June 30, 2023 or ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from: ______to______ Commission file number: 1-10686 MANPOWERGROUP INC. (Exact name of registrant as specified in its charter) | Wisconsin | 39-1672779 | | --- | - ...

PART I FINANCIAL INFORMATION [Item 1 Financial Statements (unaudited)](index=3&type=section&id=Item%201%20Financial%20Statements%20(unaudited)) This section presents the unaudited consolidated financial statements for ManpowerGroup Inc. as of March 31, 2023, and for the three months then ended, including Balance Sheets, Statements of Operations, Comprehensive Income, Cash Flows, and Shareholders' Equity, along with detailed notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased from $9,130.4 million at year-end 2022 to $8,889.6 million as of March 31, 2023, primarily due to reduced accounts receivable, while total shareholders' equity slightly increased to $2,509.4 million Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | $5,657.9 | $5,934.4 | | Accounts receivable, net | $4,773.2 | $5,137.4 | | Goodwill | $1,631.7 | $1,628.1 | | **Total assets** | **$8,889.6** | **$9,130.4** | | **Total current liabilities** | $4,579.6 | $4,911.7 | | Long-term debt | $972.4 | $959.9 | | **Total liabilities** | $6,380.2 | $6,672.3 | | **Total shareholders' equity** | **$2,509.4** | **$2,458.1** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2023, revenues from services decreased to $4,752.3 million from $5,143.3 million in the prior-year period, leading to a decline in net earnings to $77.8 million, or $1.51 per diluted share Q1 2023 vs Q1 2022 Performance (in millions, except per share data) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Revenues from services | $4,752.3 | $5,143.3 | | Gross profit | $863.1 | $897.1 | | Operating profit | $117.9 | $138.7 | | Net earnings | $77.8 | $91.6 | | Net earnings per share – diluted | $1.51 | $1.68 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash provided by operating activities increased to $124.6 million in Q1 2023 from $70.6 million in Q1 2022, driven by changes in operating assets and liabilities, with the company ending the quarter with $706.7 million in cash and cash equivalents Cash Flow Summary (in millions) | Activity | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Cash provided by operating activities | $124.6 | $70.6 | | Cash used in investing activities | $(13.2) | $(18.6) | | Cash used in financing activities | $(48.8) | $(95.8) | | **Change in cash and cash equivalents** | **$67.7** | **$(70.5)** | | Cash and cash equivalents, end of period | $706.7 | $777.3 | - Repurchases of common stock decreased to **$30.0 million** in Q1 2023 from $59.9 million in Q1 2022[22](index=22&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed financial disclosures, including $6.6 million in Q1 2023 restructuring costs, a 29.5% effective income tax rate, a goodwill balance of $1,631.7 million with impairment risk for the Netherlands unit, and segment revenue declines across most regions - The company recorded **$6.6 million in restructuring costs** during Q1 2023, primarily for severance and office closures, with no such costs in Q1 2022[55](index=55&type=chunk) - The effective income tax rate for Q1 2023 was **29.5%**, down from 32.6% in Q1 2022, favorably impacted by a reduction in the French business tax rate[59](index=59&type=chunk) - The Netherlands reporting unit, with remaining goodwill of **$55.8 million**, faces a heightened risk for additional impairment if operating performance does not improve[39](index=39&type=chunk) Revenues by Segment (in millions) | Segment | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Americas | $1,130.2 | $1,251.2 | | Southern Europe | $2,067.9 | $2,193.9 | | Northern Europe | $967.6 | $1,094.5 | | APME | $605.9 | $618.2 | | **Total (before eliminations)** | **$4,771.6** | **$5,157.8** | [Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses softening demand for staffing services due to economic uncertainty, particularly in Europe, with Q1 2023 revenues decreasing 7.6% to $4.75 billion and operating profit falling 15.0% to $117.9 million, while focusing on cost management and strategic investments [Business Overview](index=22&type=section&id=Business%20Overview) The company observed softening demand for staffing services in Q1 2023 due to increased economic uncertainty, with downside risks particularly high in Europe, and the strengthening U.S. dollar unfavorably impacting reported results - The business is cyclical and sensitive to macroeconomic conditions, with softening demand for staffing services observed in Q1 2023 due to increased economic uncertainty[103](index=103&type=chunk)[104](index=104&type=chunk) - Economic risks are particularly high in Europe, a significant portion of operations, while the Americas market also faces heightened risk from inflation and rising interest rates[104](index=104&type=chunk) - The strengthening U.S. dollar had a **-5.4% unfavorable impact on revenues** and an approximate **$0.14 per share unfavorable impact on diluted EPS** in Q1 2023[105](index=105&type=chunk) [Operating Results - Three Months Ended March 31, 2023 and 2022](index=24&type=section&id=Operating%20Results%20-%20Three%20Months%20Ended%20March%2031%2C%202023%20and%202022) Consolidated revenues for Q1 2023 decreased by 7.6% year-over-year, with gross profit margin improving by 80 basis points to 18.2% due to a favorable business mix, but operating profit margin declined by 20 basis points to 2.5% as expenses did not decrease proportionally Consolidated Operating Results Summary (in millions) | Metric | 2023 | 2022 | Variance | Constant Currency Variance | | :--- | :--- | :--- | :--- | :--- | | Revenues from services | $4,752.3 | $5,143.3 | (7.6)% | (2.2)% | | Gross profit | $863.1 | $897.1 | (3.8)% | 1.3% | | Operating profit | $117.9 | $138.7 | (15.0)% | (7.4)% | | Net earnings | $77.8 | $91.6 | (15.1)% | (7.4)% | | Net earnings per share – diluted | $1.51 | $1.68 | (10.4)% | (2.3)% | - Gross profit margin increased by **80 basis points**, primarily due to improved staffing/interim margins, a favorable business mix towards higher-margin outplacement services, and positive currency effects[116](index=116&type=chunk)[117](index=117&type=chunk) - Restructuring costs of **$6.6 million** in Q1 2023 unfavorably impacted diluted EPS by approximately **$0.10**, net of tax[120](index=120&type=chunk) [Segment Operating Results](index=26&type=section&id=Segment%20Operating%20Results) All geographic segments reported revenue declines on a reported basis, with Americas revenues falling 6.1% and Southern Europe 1.4% in constant currency, while APME grew 7.3%, and Operating Unit Profit (OUP) margins varied across regions - **Americas:** Revenues decreased **9.7%** (-6.1% constant currency), with the U.S. down **13.4%**, and OUP margin fell to **4.3%** from 5.8% due to lower permanent recruitment business and decreased operating leverage[122](index=122&type=chunk)[125](index=125&type=chunk) - **Southern Europe:** Revenues decreased **5.7%** (-1.4% constant currency), with France seeing a 1.9% reported revenue decline but a 2.5% increase in constant currency, and the segment's OUP margin remained flat at **4.3%**[127](index=127&type=chunk)[130](index=130&type=chunk) - **Northern Europe:** Revenues decreased **11.6%** (-3.9% constant currency), with the UK down 18.9% (-10.5% constant currency), and OUP margin slightly increased to **0.5%** from 0.3%, helped by the anniversary of the Russia business sale loss[131](index=131&type=chunk)[135](index=135&type=chunk) - **APME:** Revenues decreased **2.0%** but increased **7.3% in constant currency**, with Japan growing 12.7% in constant currency, and OUP margin improved to **3.5%** from 3.1% due to higher gross profit margin[136](index=136&type=chunk)[139](index=139&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $706.7 million in cash and significant credit facility availability, generating $124.6 million from operations, repurchasing $30.0 million of common stock, and declaring a semi-annual dividend of $1.47 per share, while remaining in compliance with all debt covenants - Cash provided by operating activities was **$124.6 million** in Q1 2023, up from $70.6 million in Q1 2022, mainly due to a decline in working capital needs as revenues decreased[149](index=149&type=chunk)[151](index=151&type=chunk) - As of March 31, 2023, the company had **$706.7 million in cash**, **$599.6 million available** under its revolving credit facility, and was in compliance with its debt covenants (Net Debt-to-EBITDA ratio of **0.96 to 1**)[157](index=157&type=chunk)[159](index=159&type=chunk)[161](index=161&type=chunk) - During Q1 2023, the company repurchased **0.4 million shares for $30.0 million**, with 1.6 million shares remaining authorized for repurchase as of March 31, 2023[163](index=163&type=chunk) - On May 5, 2023, the Board of Directors declared a semi-annual dividend of **$1.47 per share**, an increase from $1.36 per share in the prior year[162](index=162&type=chunk) [Item 3 Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the market risk disclosures previously provided in the company's 2022 Annual Report on Form 10-K - There have been no material changes to the information on market risks affecting the company since the 2022 Annual Report on Form 10-K[169](index=169&type=chunk) [Item 4 Controls and Procedures](index=32&type=section&id=Item%204%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting identified during the quarter - Based on an evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[170](index=170&type=chunk) - No changes in internal control over financial reporting occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[171](index=171&type=chunk) PART II OTHER INFORMATION [Item 1A Risk Factors](index=33&type=page&id=Item%201A%20Risk%20Factors) The company's operations continue to be subject to the risk factors previously disclosed in its 2022 Annual Report on Form 10-K - The company refers to the risk factors disclosed in the 2022 Annual Report on Form 10-K, indicating no new significant risk factors have emerged as of the filing date[174](index=174&type=chunk) [Item 2 Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activity for Q1 2023, with 486,873 shares purchased in total, including 368,594 shares under the publicly announced plan at an average price of $81.39 per share, leaving 1.6 million shares authorized for repurchase Issuer Purchases of Equity Securities (Q1 2023) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Plan | Max Shares Remaining for Purchase | | :--- | :--- | :--- | :--- | :--- | | Jan 1 - 31, 2023 | — | $— | — | 1,984,318 | | Feb 1 - 28, 2023 | 118,279 | $— | — | 1,984,318 | | Mar 1 - 31, 2023 | 368,594 | $81.39 | 368,594 | 1,615,724 | | **Total** | **486,873** | **$81.39** | **368,594** | **1,615,724** | - As of March 31, 2023, there were **1.6 million shares** remaining authorized for repurchase under the 2021 authorization[175](index=175&type=chunk) [Item 6 Exhibits](index=34&type=section&id=Item%206%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files - The exhibits include required certifications from the Chief Executive Officer and Chief Financial Officer pursuant to the Securities Exchange Act of 1934 and U.S.C. ss. 1350[180](index=180&type=chunk)[181](index=181&type=chunk)

ManpowerGroup Inc. (NYSE:MAN) Q1 2023 Earnings Conference Call April 20, 2023 8:30 AM ET Company Participants Jonas Prising - Chairman, Chief Executive Officer Jack McGinnis - Chief Financial Officer Conference Call Participants Mark Marcon - Baird Jeff Silber - BMO Capital Markets Kartik Mehta - Northcoast Research Stephanie Yee - JP Morgan George Tong - Goldman Sachs Ronan Kennedy - Barclays Jasper Bibb - Truist Securities Operator Welcome to ManpowerGroup’s first quarter earnings results conference call ...

Part I [Business](index=3&type=section&id=Item%201.%20Business) ManpowerGroup is a global workforce solutions leader whose business is cyclical and largely dependent on European markets - ManpowerGroup operates a network of over 2,200 offices in approximately 75 countries and territories, serving a diverse client base from small businesses to large multinational corporations[12](index=12&type=chunk) - The company's business is sensitive to economic cycles, with staffing demand rising in growth periods and outplacement demand increasing in downturns[22](index=22&type=chunk)[23](index=23&type=chunk) - As of December 31, 2022, the company had approximately **30,900 full-time equivalent employees** and operated through **2,062 offices** globally[33](index=33&type=chunk)[37](index=37&type=chunk)[59](index=59&type=chunk) Core Brands and Services | Brand | Specialization | | :--- | :--- | | **Manpower** | Contingent staffing and permanent recruitment, focusing on office and industrial roles. Also offers Talent Based Outsourcing | | **Experis** | IT professional resourcing and project services, specializing in areas like Cloud, Cyber Security, and Digital Workspace | | **Talent Solutions** | Combines Recruitment Process Outsourcing (RPO), Managed Service Provider (MSP) via TAPFIN, and career management via Right Management to deliver data-driven workforce transformation solutions | [Segment Operations](index=6&type=section&id=Item%201.%20Business%23Operations) Operations are divided into four geographic segments, with Southern Europe being the largest by revenue, driven by industrial staffing - **France is the company's largest operation**, accounting for **56% of the Southern Europe segment's revenue** in 2022[37](index=37&type=chunk)[39](index=39&type=chunk) - In the Americas, the **United States represents 71% of the segment's revenue**, operating through a mix of 445 branch offices and 138 franchise offices[33](index=33&type=chunk) 2022 Revenue Mix by Staffing Type and Segment | Segment | Industrial Staff | Office Staff | Professional & Technical Staff | | :--- | :--- | :--- | :--- | | **Americas** | 29% | 17% | 54% | | **Southern Europe** | 72% | 14% | 14% | | **Northern Europe** | 38% | 22% | 40% | | **APME** | 8% | 56% | 36% | [Competition and Market Position](index=7&type=section&id=Item%201.%20Business%23Competition) The company competes in a fragmented industry against key rivals like The Adecco Group and Randstad, serving many large multinational clients - The largest publicly owned competitors specializing in recruitment services are **The Adecco Group and Randstad**[47](index=47&type=chunk) - Large national and multinational clients comprised approximately **60% of revenues in 2022**[48](index=48&type=chunk) [Human Capital Management](index=9&type=section&id=Item%201.%20Business%23Human%20Capital) The human capital strategy focuses on upskilling programs and aims for 50% gender diversity in global leadership by 2025 - The Manpower MyPath program has impacted over **200,000 lives** through 2022 and now represents **38% of the associate talent pool**[63](index=63&type=chunk) - The Experis Academy has graduated over **1,700 developers**, bridging IT skills gaps for more than **160 tech companies**[64](index=64&type=chunk) - The company has a DEIB goal to achieve **50% gender diversity** at the global leadership level by 2025; the Global Leadership Team is currently **33% women**[68](index=68&type=chunk)[69](index=69&type=chunk) [Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) Key risks include sensitivity to economic conditions, intense competition, cybersecurity threats, and adverse government regulations - The business is highly sensitive to macroeconomic conditions, with **Europe representing 64% of revenue** and particularly susceptible to recession risks[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) - The company faces **significant cybersecurity risks**, as an independent assessment identified vulnerabilities that could facilitate a security incident[98](index=98&type=chunk) - **Intense competition in a tight labor market** makes it difficult to attract and retain qualified associates, especially those with critical IT skills[108](index=108&type=chunk) - Government regulations pose a significant risk, as exemplified by **new legislation in Mexico** that had a material adverse impact on the business[142](index=142&type=chunk) [Unresolved Staff Comments](index=28&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments - Not applicable[156](index=156&type=chunk) [Properties](index=28&type=section&id=Item%202.%20Properties) The company's operations are primarily conducted from leased premises, with no individually material owned properties - Most operations are conducted from leased premises, and the company does not anticipate difficulty in renewing leases or finding alternative sites[157](index=157&type=chunk) [Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine litigation and legal matters handled in the ordinary course of business - The company is involved in litigation of a routine nature and various legal matters, which are being defended and handled in the ordinary course of business[158](index=158&type=chunk) [Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[159](index=159&type=chunk) Part II [Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](index=31&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on the NYSE under MAN, and it actively repurchases shares, with 2.0 million authorized as of year-end 2022 - The company's common stock is listed on the New York Stock Exchange under the symbol **MAN**[166](index=166&type=chunk) - As of December 31, 2022, **2.0 million shares** remained authorized for repurchase under the August 2021 authorization[169](index=169&type=chunk) Issuer Purchases of Equity Securities (Fourth Quarter 2022) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Publicly Announced Plan | | :--- | :--- | :--- | :--- | | Oct 1 - 31, 2022 | 376,067 | $66.48 | 376,067 | | Nov 1 - 30, 2022 | 479 | — | — | | Dec 1 - 31, 2022 | 875 | — | — | | **Total** | **377,421** | **$66.48** | **376,067** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenues decreased 4.3% to $19.8 billion in 2022 due to currency headwinds, though constant currency revenue grew 4.9% - Foreign currency exchange rates had a significant unfavorable impact in 2022, reducing revenues by **9.2%** and net earnings per share by approximately **$0.88**[181](index=181&type=chunk) - The company recorded a **$50.0 million goodwill impairment charge** related to its Netherlands reporting unit in the fourth quarter of 2022[187](index=187&type=chunk) - Gross profit margin improved by **160 basis points to 18.0%** in 2022, driven by a favorable business mix, improved staffing margins, and the Experis (ettain) acquisition[186](index=186&type=chunk)[193](index=193&type=chunk) Consolidated Results of Operations (2022 vs. 2021) | Metric (in millions, except per share) | 2022 | 2021 | % Change (Reported) | % Change (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | | **Revenues from services** | $19,827.5 | $20,724.4 | (4.3)% | 4.9% | | **Gross profit** | $3,572.4 | $3,407.5 | 4.8% | 13.8% | | **Operating profit** | $581.7 | $585.4 | (0.6)% | 11.7% | | **Net earnings** | $373.8 | $382.4 | (2.2)% | 9.9% | | **Net earnings per share - diluted** | $7.08 | $6.91 | 2.6% | 15.3% | [Segment Results](index=38&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Segment%20Results) The Americas segment grew due to an acquisition, while European segments declined on a reported basis due to currency effects - Revenue in the United States increased by **27.6% (6.5% organic)**, primarily driven by the Experis acquisition and strong demand in permanent recruitment[199](index=199&type=chunk) - France, the largest market in Southern Europe, experienced a revenue decrease of **7.5%** as reported, but an increase of **4.0%** in constant currency[203](index=203&type=chunk) 2022 Segment Revenue Performance (vs. 2021) | Segment | Reported Variance | Constant Currency Variance | Organic Constant Currency Variance | | :--- | :--- | :--- | :--- | | **Americas** | +15.8% | +18.1% | +4.5% | | **Southern Europe** | -8.7% | +2.0% | +1.7% | | **Northern Europe** | -13.3% | -2.5% | 0.0% | | **APME** | -3.8% | +9.0% | +9.0% | [Liquidity and Capital Resources](index=41&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Liquidity%20and%20Capital%20Resources) The company generated $423.3 million in operating cash, funding share repurchases and dividends, and maintains sufficient liquidity - Cash provided by operating activities was **$423.3 million** in 2022, compared to **$644.8 million** in 2021[219](index=219&type=chunk) - In 2022, the company repurchased **3.2 million shares for $270.0 million** and paid dividends totaling **$139.9 million**[223](index=223&type=chunk)[225](index=225&type=chunk) - On October 1, 2021, the company acquired ettain group for an aggregate cash consideration of **$930.9 million**[229](index=229&type=chunk) - In May 2022, the company entered into a new five-year, **$600.0 million revolving credit agreement**, which was undrawn as of December 31, 2022[239](index=239&type=chunk) [Application of Critical Accounting Policies](index=45&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Critical%20Accounting%20Policies) A $50.0 million non-cash goodwill impairment charge was recognized for the Netherlands reporting unit in Q4 2022 - The annual goodwill impairment test in Q3 2022 indicated the fair value of the Netherlands reporting unit **approximated its carrying value**[258](index=258&type=chunk) - **Deteriorating macroeconomic conditions** and financial performance below expectations triggered an interim impairment assessment for the Netherlands unit in Q4 2022[260](index=260&type=chunk) - A non-cash goodwill impairment charge of **$50.0 million** was recognized for the Netherlands reporting unit, with the remaining goodwill of **$55.1 million** at risk for further impairment[262](index=262&type=chunk)[263](index=263&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to foreign currency risk, as 82% of revenues are generated outside the U.S., particularly in Euros - Approximately **82% of revenues** and profits are generated outside the United States, with **44% from European operations** with a Euro-functional currency[268](index=268&type=chunk) - In 2022, the strengthening U.S. dollar caused reported revenues from services to be **9.2% lower** than they would have been in constant currency[269](index=269&type=chunk) - As of December 31, 2022, the company had **$956.6 million in Euro-denominated notes**, which are designated as a hedge of its net investment in Euro-functional currency subsidiaries[274](index=274&type=chunk) [Financial Statements and Supplementary Data](index=51&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements for the fiscal year ended December 31, 2022 Consolidated Statement of Operations Highlights (in millions) | Year Ended Dec 31 | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Revenues from services** | $19,827.5 | $20,724.4 | $18,001.0 | | **Operating profit** | $581.7 | $585.4 | $187.6 | | **Net earnings** | $373.8 | $382.4 | $23.8 | Consolidated Balance Sheet Highlights (in millions) | As of Dec 31 | 2022 | 2021 | | :--- | :--- | :--- | | **Total Assets** | $9,130.4 | $9,828.9 | | **Total Liabilities** | $6,672.3 | $7,297.2 | | **Total Shareholders' Equity** | $2,458.1 | $2,531.7 | Consolidated Statement of Cash Flows Highlights (in millions) | Year Ended Dec 31 | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Cash from Operating Activities** | $423.3 | $644.8 | $936.4 | | **Cash used in Investing Activities** | ($85.3) | ($987.0) | ($42.4) | | **Cash used in Financing Activities** | ($482.1) | ($283.7) | ($435.2) | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=98&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This item is not applicable - Not applicable[489](index=489&type=chunk) [Controls and Procedures](index=98&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of year-end 2022 - Based on an evaluation, the CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of the end of the period[490](index=490&type=chunk) - Management concluded that the company's **internal control over financial reporting was effective** as of December 31, 2022, an assessment audited by Deloitte & Touche LLP[493](index=493&type=chunk)[494](index=494&type=chunk) [Other Information](index=99&type=section&id=Item%209B.%20Other%20Information) The company entered into new letter agreements with key executives in February 2023, outlining severance and post-employment benefits - The company entered into new letter agreements with key executives on **February 17, 2023**, outlining severance and post-employment benefits[497](index=497&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=100&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, officers, and governance is incorporated by reference from the 2023 Proxy Statement - Information required by this item is incorporated by reference from the Proxy Statement for the Annual Meeting of Shareholders to be held on May 5, 2023[504](index=504&type=chunk) [Executive Compensation](index=100&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2023 Proxy Statement - Information required by this item is incorporated by reference from the Proxy Statement for the Annual Meeting of Shareholders to be held on May 5, 2023[503](index=503&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=101&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference, with 3.9 million securities available for issuance under equity plans - Information on security ownership is incorporated by reference from the Proxy Statement for the Annual Meeting of Shareholders to be held on May 5, 2023[505](index=505&type=chunk) Equity Compensation Plan Information as of December 31, 2022 | Category | Securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price | Securities remaining available for future issuance | | :--- | :--- | :--- | :--- | | **Equity compensation plans approved by security holders** | 2,034,090 | $89.04 | 3,896,515 | [Certain Relationships and Related Transactions, and Director Independence](index=101&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related transactions and director independence is incorporated by reference from the 2023 Proxy Statement - Information required by this item is incorporated by reference from the Proxy Statement for the Annual Meeting of Shareholders to be held on May 5, 2023[508](index=508&type=chunk) [Principal Accounting Fees and Services](index=101&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees is incorporated by reference from the 2023 Proxy Statement - Information required by this item is incorporated by reference from the Proxy Statement for the Annual Meeting of Shareholders to be held on May 5, 2023[509](index=509&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=102&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Form 10-K report - This section contains the index to financial statements and a list of all exhibits filed with the Form 10-K, including governance documents, debt agreements, and executive compensation plans[511](index=511&type=chunk)[516](index=516&type=chunk) Allowance for Doubtful Accounts Reconciliation (in millions) | Year | Beginning Balance | Provisions | Write-Offs | Translation & Other | Ending Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | **2022** | $121.6 | $6.2 | ($12.4) | ($6.1) | $109.3 | | **2021** | $128.1 | $17.9 | ($17.7) | ($6.7) | $121.6 | | **2020** | $113.5 | $20.3 | ($17.8) | $12.1 | $128.1 | [Form 10-K Summary](index=105&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable - Not applicable[521](index=521&type=chunk)

ManpowerGroup Inc. (NYSE:MAN) Q4 2022 Earnings Conference Call January 31, 2023 8:30 AM ET Company Participants Jonas Prising - Chairman, Chief Executive Officer Jack McGinnis - Chief Financial Officer Conference Call Participants Andrew Steinerman - JP Morgan Jeff Silber - BMO Capital Markets Ronan Kennedy - Barclays Mark Marcon - Baird Kartik Mehta - Northcoast Research Jasper Bibb - Truist Securities George Tong - Goldman Sachs Heather Balsky - Bank of America Operator Welcome to ManpowerGroup’s fourth ...