MAN - Earnings call transcript Q4 2021

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Operator

Welcome to the ManpowerGroup's Fourth Quarter Earnings Results Conference Call. At this time, all participants are in a listen-only mode until the Q&A session of today's conference. This call will be recorded.

If you have any objections, please disconnect at this time. And now, I will turn the call over to ManpowerGroup Chairman and CEO, Jonas Prising. begin. may you Sir,

Jonas Prising

fourth call the XXXX. quarter to for conference Welcome

on Jack with Our Officer, is the Chief Financial McGinnis, call me today.

For prepared remarks then Jack of have of the included our Investor through will the by we manpowergroup.com. section quarter, of start at through fourth quarter our your concluding first Relations website some will going cover and will highlights within XXXX, convenience, the of I share Harbor the results some the language. Jack go I'll before thoughts Q&A the Safe start we quarter now and our guidance session. then for

Jack McGinnis

uncertainties. any X Good differ further the statements management's measures. forward-looking on We that expectations conference or information impact assume no call are obligation and to call our projected are This or statements release may morning, reconciliation COVID-XX current of results presentation might regarding beliefs. the those update and to earnings factors cause forward-looking and pandemic, Slide actual from which everyone. forward-looking and statements, revise differ These regarding identifies in this our of results in known materially subject based the materially statements. including statements made forward-looking to Actual includes risks non-GAAP statements. of unknown

Jonas Prising

of pandemic Thanks across been persist has optimism variant. continue to when Jack. our progress, Omicron by us, recovery behind levels recently geographies, unique With employer pace and see the strong another we year hampered the hiring the global even most recovery

the Before our start and thanking full I quarter year, fourth people. me for by financials our let all turn to

finding clients First People for of sustainable you helping commitment. our people. environment am for day, delivering on every ManpowerGroup our a of our and for the has tested innovation their relentless thankful to challenging and delivery and our be agility, Thank purpose meaningful team during all resilience, navigate and last unwavering I year and employment by of to proud pursuit of success do Our millions continued you

currency, our in up to constant the in revenue currency. $X.X or X% financial quarter was billion, fourth constant organic results, Turning in year-over-year X%

for the and was share significant X.X%. $XXX prior for million. EBITA on Adjusting EBITA was per Reported an were X.X%, ettain margin basis. $X.XX integration Both EBITA reflecting Our $XXX earnings the improvement was was $X.XX transaction quarter year-over-year. costs, margin and adjusted was significantly above Reported EBITA million, year. the and adjusted diluted

More the XX% year-over-year, which Revenues changing year organically to represented new time; The $X.XX $XXX and volatility. year well-prepared Adjusted Turning the from a trends for to people more by saw plans on currency, models, aligns due retention some clients pandemic and even own demands flexibility is data transformation constant reshuffle technology, our and shortages up in and now opportunities the we mix, This weeks confidence need to stronger, their XX% well. $X.XX. was Innovate, somewhat a continue and various that was increased in time, or a to represented the a we to increasing have than Omicron benefit talent strong. which reinforced and environment and this further across in adapting below resulting skillsets; dynamic mass of changing for of new quite quickly some in fourth believe for notably short, optimism more as changing final market we In outlooks to accelerated shortly. were has ManpowerGroup impact been to the DDI tracking market, rates thrive Europe’s ahead. hiring the have demographics showed business skills jobs the for and a our We and of I attraction labor geographies. backdrop Outlook digital well for pre-pandemic sentiment Employers returning progress variant their a industries our on to transforming due our of all are $XXX EBITA transformation; was Adjusted of against our across operational the per investments business mass for reported and for strategies will share optimistic by levels from seen XX the improvement work currency are and earnings currency in to Digitize results quarter. moment, Diversify, million we a if year-over-year. our which Globally, constant billion, resignation. earnings and reported to employers, be was my that XX,XXX share catching transform unemployment significant share the strategic $XX.X U.S. to the organically. Survey, and muted in year and and million. or per EBITA countries XX% Employment of own XX% constant were our full view quarter, increase shifting than was

pandemic since time reported the positive first outlooks. hiring all countries the began, For

seeing brands, demand also all of in this are MSP our leading Experis within both strong market and across RPO within and businesses our hiring permanent and Solutions. in We temporary Manpower, across sectors Talent

in offer help of while and more where, business. upskill, their order thinking and our bold companies to want, workforce; ever, requirements to to their scarce and work balancing what compete than on how manage workers talent source, gets when, embrace for Now, need the done

Jack McGinnis

Thanks, Jonas.

currency revenues Going at the Gross profit in to the X, came end our above constant results guidance our came margin top on the quarterly Slide quarter guidance in fourth range. of range. in back

operating amortization disclosed, last but additional the information will we on to profit amortization underlying EBITA. performance. due financial provide assets, EBITA, intangible is also to before As to talk our I to mentioned information our we Operating acquisition, with associated of recent representing added quarter, have profit

in a prior XX% adjusted, As $XXX EBITA million, currency a basis. or the from organic XX% on increase was representing year period, increase an constant constant currency

billing bit revenue XX detail, improvement, after points and of of which pre-pandemic negative impact EBITA acquisitions X% XXXX adjusted, an and adjusting our our this the on X.X% organic almost basis. XX the of to currency currency our Due net was X% came of for constant revenue impact increase Breaking is in third a days, Comparing levels organic end or As increased days-adjusted below revenue basis our of was constant currency levels, were margin basis at X% a into slightly of basis, by X%, down fewer trend representing revenues quarter the fourth guidance, from on to quarter X%. X%. more organically. points the top trend improvement the same

related to costs. earnings per Slide ettain transaction reported share included $X.XX bridge Turning integration EPS on which the $X.XX to and X, was

of positive a rate weighted was end mid-point, average repurchases shares top added lower in Walking improved effective the tax $X.XX, other range. quarter costs, which better added from our of of Excluding slightly slightly and the $X.XX, due these guidance to well which $X.XX, $X.XX our $X.XX. adjusted EPS guidance results and that which had impact included our expenses above favorable performance was operational

record Next, the the brand business on revenue constant quarter, Experis revenue revenue the let’s the line. very Manpower MSP organic the XXXX quarter, brand revenue significantly fourth while growth businesses. growth currency double the organic Solutions and versus review closed reported brand saw in Solutions growth our had gap double-digit Manpower in revenue our the year we basis, RPO currency in and by percentages of for of RPO revenue Talent figures reported X%, Year-over-year, levels. In revenue Talent in high and XX%, both constant Talent of setting reported XX%. pre-pandemic growth year-over-year. an Experis percentages Solutions the Within and experienced growth MSP digit to

record low experience revenue to continue Management double outplacement a we saw percentage digit As environment, year-over-year. Right decreases

basis of business basis was Permanent detail, strong Right XX as basis XX largest in at our XX ettain improvement. additional solutions point in gross XX our Improvement represented GP basis contributed XX.X%. an point Other contributed Looking Management activity point basis a XX Experis a transition gross added from margin GP improvement. increase. at career mix resulted The XX margin lower margin margin staffing our items in markets. reduction. of basis margin recruitment an drove improvement across points margin Underlying profit came hiring point acquisition points. A

profit high gross post and brand XX% comprised Talent line, onto business XX%. Moving quarter, comprised Solutions business the gross of during Experis contribution our professional XX%, ettain, by all-time an profit, our comprised Manpower reflecting

X% our quarter Gross currency profit XXXX. to from gross profit this an year-over-year reported Compared Experis levels, Manpower quarter brand fourth our an currency basis fourth This growth pre-pandemic of MSP quarter, increase discussed Management driven XXXX XXXX. increased X%. by increased quarter This the basis. represented This of which organic organic the in year-over-year. during XX% the partially the the XX% Organic constant constant was of increase performance an During outplacement was of quarter. fourth brand represented from X% below on by profit in Solutions in on trends. great in Right XX% constant currency the due was organic and constant an decreases RPO an the in currency of of to offset gross earlier, Talent year-over-year

expense SG&A quarter was $XXX the Our million. in

Americas represented percentage currency constant This SG&A incremental operational X% of quarter currency XX% comprised segment million. transaction $XX increases $XX Revenue SG&A year, an currency XX% for on organic was the higher consisted costs impact was and revenue in of businesses a revenue. million. business. constant Excluding of underlying XX% higher was million, after costs the days. the net XX% $X.X or on prior offset billion, of adjusting integration currency The in The continued Adjusted OUP currency by an XX.X% the and $XX charges the the costs a current increase restructuring of changes in $XX to and million, basis. or related organic quarter. reflects basis in in of expenses acquired fourth of the the year in X% on as consolidated of ettain constant an constant investment basis,

of the $XX of basis outplacement reduction organically, organic XX in or to is revenues. As was OUP an the was year. segment the in $XXX constant basis. million margin point XX% increase, in largest currency XX% a lower comprising Americas margin the representing U.S. Revenue A adjusted, the was activity X.X%. U.S. country Right prior OUP X% million, on mix compared drove OUP The segment, and Management

exclude transaction to increase million integration adjusted XX%. U.S. costs, business As our quarter $XX was and for acquisition of the an representing OUP organic in

or basis. organic OUP an on margin was adjusted, X.X%, X.X% As

U.S. Revenue brand Within increased the the brand of the the during for X% quarter. the XX% Manpower in during Manpower U.S. quarter. the gross comprised profit

also to in of quarter. of again quarter The seasonality normal business Experis continue XX% approximately digit continued first the anticipate well in to skills in return the we Experis gross from as the XX% IT the levels of and the phases comprised quarter XXXX. during the in the the The U.S. Experis grew U.S. December, in January associates comprised profit ettain workers the integration early strong have during force. early seen in of build of revenues. growth we on on-schedule. Aside organically are performed revenues U.S., assignment double Within XX% organic labor fourth during and brand the and quarter quarter our proceeding

the We professional market contributed for This has revenue and convenience was In Experis growth XX% as range we our in improvement continued are as win strengthens. hiring encouraged experienced or in to gross RPO driven quarter activity The and by business, Right levels the Within X% U.S. our revenue XX% new current organically. for to U.S. the by XX% and the X% revenue as Talent quarter. profit presence quarter, ongoing experienced business XX% the year-over-year, significantly well. including increased run-off experienced economy U.S. strengthen. revenue ettain, in the of well U.S. record the career which to record in the levels to continued the in Management, in of quarter MSP of transition the growth business to first continues trends during and programs IT which services. Solutions continued to underlying expect perform

constant decline quarter. prior revenue in currency was in new the quarter. a experienced The decline we in the operation Mexico discussed driven Our XX% by labor the legislation of

revenue first the the the We Although quarter. decrease on trend fourth similar in had anticipate has anticipated, industry reflects impact of the than quarter impact impact. the originally a more severe stabilized the legislation a

margin quarter. Europe Southern in was OUP in constant were in the third the in Compared Southern revenue France currency. comprised from quarter Europe $XX $X.X at was Southern down and of of revenue X% France X% same in comprised and OUP Revenue revenue the X.X%. XX% in margin currency. equaled XX% OUP X.X%. Europe consolidated $XXX quarter the revenues OUP billion, period improving XX% in in constant the was XXXX, segment to came growing and in down million X%, the million quarter. increased

year equaled a quarter over we begin the first constant we are range year of constant Italy very that OUP As quarter in and to of currency increase in the Revenue of revenues reflecting continue XX% X% year-over-year in $XXX estimate currency. million quarter, in will an million France well XX%. XX%. the for in estimating increase range We $XX XX% Italy to growth in first revenue was constant OUP currency margin equaled X.X%. with in to perform the the

Europe segment of quarter. currency Revenue in margin $X.X in the XX% X% our by consolidated billion was Northern constant revenue most major OUP X.X%. Our to and markets. represented million $XX OUP comprised of driven increased

in by slide, had the in pension a one-time a was during charge indicated to Germany we As the modest results quarter segment offset notes the gain. which restructuring

the XX% largest U.K., which segment segment in represented the revenues Our market Europe quarter. the of in is Northern

constant grew X% revenues U.K. the During in quarter, currency.

first These flat with significant certain margin to in growth reflecting and decreases recruitment arrangements, margin opportunities. Germany, our business. fourth are in in quarter. the fee-based revenues the days-adjusted the profile higher permanent improvement actions in is other business in expect slight including performing of exit In driving the constant increased UK we of currency UK X% margin revenues replaced well quarter and Our low

first digit We revenue Germany in constant year the improvement year over percentage currency expect to mid-single in see quarter.

gross have on As and XX% company third OUP which X.X%. noted our improvement the in Revenue Northern forward. a Asia approximately and grew impact EBITA part portfolio XX% currency Pacific XX% our and strategy, which In Russia X% global geographic East operate sold in our favorable business release our This annually an materials franchise will Japan the $XXX revenue. in revenues quarter, margin represents today, Middle to million in segment in the margins earnings total profit going The million. OUP quarter. of currency forward. as reduce as Europe going we revenue constant our $XX by comprises grew from $XXX will constant will was a million growth was of

the We pleased growth revenue in equaled free the flow are $XXX full turn to revenue In inflow to prior in in which of and and the of onset The included expect XXXX, accounts sheet. pandemic. the lead we I’ll quarter. performance with to first from prior balance year. compared declines year cash the continues result significant now market million cash million cash year very from Japan $XXX flow our strong the receivable continued growth business

cash current of flow was prior million cash Capital $XXX year expenditures $XX days. fourth at Our year million $XXX the represented flow year million fourth sales XX period day for days year end, up quarter. free and quarter period At exceeded free of cash million, $XX the the outstanding X strong quarter during representing over collections.

the million. During shares quarter of we $XX fourth stock repurchased for XXX,XXX

million Our full $XXX X.X shares at year for of stand purchases million. stock

of XXXX share in share August XXXX. X.X As under of approved December under the remaining X million shares have the we remaining XX, repurchase program million program for shares and

cash sheet net position of resulting we and million On $XXX debt debt Xst ended total billion, of acquisition $XXX fund $XXX in balance Our to the cash a October million ettain. million. the of $X.XX of of year utilized with

Our trailing debt at EBITDA total months to debt ratios of at twelve and reflect XX%. capitalization total gross debt quarter-end to X.XX total Adjusted

Xst October $XXX credit million did acquisition. $XXX debt in facilities revolving credit the funding million facility the ettain with Our in not quarter. utilized the We of on of the and change conjunction

over to of the nine pleased months. after the as months, are down we already indicated, repaid to We have pay previously report and expect next half amount three this we that remainder

our quarter I'll XXXX. review Next, first the of outlook for

of our per out cents impact the million $X share. disposition COVID-XX we or first forecasting integration impact no are per the includes which which foreign earnings of on today. exist for Our the unfavorable guidance the not to Russia of in On continues does those costs share broken of additional $X basis, to beyond separately of related an ongoing difficulties be loss business include million will of XX underlying that that range from to be assume quarter This $X million operations. material approximately to $X.XX acquisition currency $X.XX,

impact our of first year regulation Regarding and our in the revenues, the year X% quarter about XXXX. adjusting represents and X%. After stabilized Considering constant revenue estimated currency the growth in a X% mid-January, over loss between of this, guidance of revenue Mexico organic the constant range for is of growth ettain and of XX%. Russia range is acquisition X% the disposition currency between

quarter, the increase the As of X% results billing minor days first in organic a an in at are days-adjusted only growth mid-point. revenue this rate

both midpoint year XX the during points France XXXX incorporates points We of XX%. This quarter reduction EBITA margin and first for the basis the first effective of the Tax estimate compared contributing of up corporate quarter full Business basis to the year a rate prior XX to ettain rate French the be the improvement. XXXX to We expect final tax the at our multi-year phase the of the with continuation reduction. and be that the in tax

not guidance shares share our repurchases our weighted XX.X to be does Jonas. and or charges estimate usual, back now it to we turn As additional million. average I incorporate restructuring will

Jonas Prising

these DDI, ago, you, progress year Thank updated and during Innovation. strengthening are capabilities, update, strategic our for differentiating progress and long-term we our foundation our and offerings, on creation. XXXX providing the Jack. acceleration Reflecting pleased A value Diversification, investments with are sustainable for growth that on Digitization you choices our confident and we profitable and that

speed, which Experis, improving great IT growth Specific and Solutions, are services, Experis Talent and contribution value of higher our recruitment. up Manpower the XX% on higher by permanent makes especially of is in months the off to the our a resourcing, contribution of progress making Diversification expanding quarter proud start We business great mix, business during our of with GP ettain mix to are recent acquisition we successful quarter. which of a of at globally, the completion, our full group

IT increased as to us Solutions with positions demand. businesses of Management. revenue impact Talent and the of in highest convenience in associated in our an shifts market, the plays occasionally reduce Right market it U.S. as includes volatility MSP, overall the Our enterprise services provider top-four RPO serves the segment of critical and diversification also presence large resourcing margin in and clients’ a ongoing role our IT

increased which we mentioned, Jack both of our overall. RPO record As businesses Solutions and an levels are in from seeing volumes driving Talent are MSP contribution

Right Right Management the stabilize diversification expect become then our outplacement and will in contributor well. quarters We as Management volume ahead strategies to the a in

We are our also PowerSuite part speed cloud-enabled at strategy, and applications, XXXX our front we making of XX Digitization markets. strong progress leading on office technology, in the implemented scale. moving In

drive We productivity analytics are efficiency shifting enable the more and also assets performance and to to platforms, value better moves to SAAS and predict improving creation. accurately, cloud, our progressive to and of new global using data via more match insight,

Lastly, through great global In is progress associate Experis for specifically this our we innovative upskilling Manpower professional Experis, notably MyPath, our Experis program. tools, consultants. through and continue Innovation. making Accelerator Career in it is our on investment leading In Academy

enables also increasingly strategies. purpose to differentiator become us and believe all as strategy deliver clear organizations. be DDI Our this interconnected on for a to our ESG We profit

this of Planet, example focused on People are our participating the of shared we strategy Working of Our program individuals from Stakeholder Science recent intend speed in Prosperity ESG World & how which climate far. so we our industry a a positive action, International the ambitious plans our Governance, Change lead Capitalist significantly SBTi incorporating strategy our lives initiative, We is with this already are the of program, when reflecting XXX,XXX the and of executing by Plan, Business which to is Targets Metrics we working the expanding urgency to Based validation reporting. published into drive countries transforming Principles and MyPath The the our space. in great Council’s demonstration to we the

in talent, strong the build the market, have and on opportunities in to capture place the and purpose XXXX. technology, to foundation brands, We of fast-evolving

strategies. turn their open will Operator? us enable execute We retaining, more finding, to now them the companies Q&A. like and call diverse accelerate digital to for to I'd are expertise transformation reskilling convinced to and talent for that business their in

Operator

Instructions] coming from from Thank you. question J.P. [Operator is line Our first Morgan. Andrew the Steinerman of

open. is Your line

Andrew Steinerman

hoping in you over strong feel a negative Manpower -- U.S. was your in it's bit to and rate that's a or obviously hone kind is I year-over-year January you're a positive trends or business back business, U.S. could do what benefiting on your of like you market growth Omicron the was just the just more benefit like do Hi really Experis attractive that the both and completed Experis which go a revenue not Andrew. and seeing, month kind for or in little in growth, organic business? had feel from just comparison? And of

Jonas Prising

we're I'll and over Yes last Experis we're start we good very of the that progressing. about and how slightly with Yes with estimate maybe market Andrew in the the to maybe U.S. above making Experis organically very pleased question would a and asked say tracking number feel I quarters. progress thanks. you been we've that is growth

executing and the for opportunities continue we're in to well see market. great U.S. So Experis we

So mitigating to if IT remote people illness bit they continue so factor normally expect led certainly and clearly is of about managing manageable, is see. in and impact higher in I and have due has would workers less are working mean difficult they not than you a say to asked high, because white work limited an we Omicron. ability frankly since consultants manpower the and to it a would collar for absenteeism is positive a perspective, great, finding much our impact I feeling From impactful Omicron the to a piece

that spike into when come a Now and people workforce. and ill is, that seeing the it back they we're the news are good being though

in moves as on workforce the the subside seasonal into our of to that we is normalize we see we expect to business in see continuing the ability much would this with and been good the and the overtime Manpower to encouraged we've do variants overall about to both and back are So feel well, slowdown business and more other the workers after really our manageable progress But coming brands. our quarter than Omicron is

Jack McGinnis

just Andrew, that Experis performed again add we additional double-digit organic, well expect growth. business that strong very And wanted the in growth the Jack. I about Jonas' U.S. And the on this to I'll Experis first to comment XX% the at very one commented legacy talk the acquisition in is point but really quarter, we ettain. certainly,

midpoint very the that fourth mentioned on I more well anticipated importantly, it too. in So performed EBITDA our at $X.X the in so they the stronger well of line in and in than as And came a guidance, above quarter about that. the $XXX million and million guidance million we came few better about

a off as and ettain good combined going have to our So quarter to part a well business. of Experis as start they're good we first anticipate is

Andrew Steinerman

about Right? January. And really Jack, asked I

U.S. I of started when favorably, you for So quarter because out the what quarter assumed, January right? first what fourth say, in the is the kind we're was and expecting

Jack McGinnis

seeing consistent terms very start were ongoing week-over-week. where mention January looking Andrew. the we the fourth associates on business, we of And is in did on are January we trends the Yes, as of increase quarter well assignment with month to the ending in Manpower as

a good that's So sign.

Andrew Steinerman

the for Perfect. time. Thanks

Operator

you. Thank

question Silber next of BMO the line of is Our Capital from coming Jeff Markets.

open. is line Your

Jeffrey Silber

U.S. little outside to Thanks focus so bit the much. I wanted a Actually,

talk supply you U.S.? Omicron, but seeing outside issue, in a hear there's similar bit about Omicron are little markets about could tight talked showing We've the lot the the I aspects would of just your be great? major about terms well. demand. a in survey know You've Manpower it that you beyond little a in tight I'm And market. your U.S. if an as We bit wondering labor where, that seen strong labor about of

Jonas Prising

markets tight We Jeff. labor across the board, are seeing

or closest And an and the the point, in some has the are. We in not markets don't of probably during U.S. a returning workforce the That's not The of still would of that numbers both follows that respectively, how as is the have are case returned. pandemic the say back. at U.K. of tight countries U.S. terms anomaly U.S. outlier people, though because labor markets the so this, we is the outside countries. pandemic, those labor this I least to tight post of people think, significant see is full the X,XXX,XXX the had other most not not at workforce

low might You the that unemployment. seen is it’s area about year a Euro rate now, in X% have XX-plus X%, at the unemployment

a major past us. indicates to levels, but strong And it there's seen to that's for we progress as very reasonably globally. driving not as to really make demand most our seeing bypassing and our been in placement is labor in a U.S., well in progress would towards It's our countries placement. only continue effects aren't milestone we expect surpass favorable for strong staffing them that seen the XXXX market and so is And permanent the as demand very have and temporary our XXXX yet number that, well. of you've recruitment permanent for -- in also But revenues demand of also operations talent, levels. And quickly that those countries it

the across all seen of temporary that reflected record our Solutions also with demand overall and strong, permanent as for of levels progress both in placement seen you've and brands RPO great Talent in as is revenues. MSP well posting So for we've

Jeffrey Silber

having I'm your I to Okay. to is That's their the while. really hearing And Germany of if folks over been big any going a about be know a firms it was there's winner. really about relocating a lot helpful. Thanks. a in know be there? a But that? wondering still are question those you're there, just had big lot business we've over seeing one but My some of haven't Brexit. I Paris. any expected services know is to folks surprise. Paris impact you financial of London that on I and seems in followup of

Jonas Prising

financial fake away is that institutions the not happened. from Jeff, actually of big news. Well, migration has U.K. The

has the occurring professionals outside for vibrant been there professionals, remains labor Although some market new and district, financial financial a U.K. hiring the it of IT very in London

shortage impact making the harder of workforce shortage of directly effect truck U.K. Brexit the U.K., U.K., tremendous are chain that of the out to is new healthcare it what really and staff in But in supply drivers Brexit, you as has So regulations, for pass. linked have the the of of instead seen to the to those come get the in not it issues. to and drivers part might relates

the to So those shortages, to labor and there a because of significant but are pass. it's that come moves in the seeing U.K. that's the number financial Brexit, have in are not of sector parts really due not market

Jack McGinnis

in is would just has been year. about addition That U.K., financial the XX% bank took to and Jeff, large We client us. business of add, a a on the there been growing portfolio. last very for actually, good our been That's the it's opposite. business I services

So of seen side that business the actually increasing. we've actually

Jeffrey Silber

I really clarification. right, much. so appreciate All Thanks the

Operator

Thank you.

the is Jefferies. coming Our question next from of of line Hamzah Mazari

open. is line Your

Hamzah Mazari

remotely. candidates, morning. similarly does your your I in hi, then, you look question My they'll And Yes, is spreads, guidance? about what think base just on your of just today? employee do around bill-pay just trend How first scale history? labor all guess, Maybe talk can not labor good inflation. today know I availability, they work of you versus or terms like help your

of national so can, your availability kind then peers their and just some about thoughts remotely, talking on business labor inflation? been helping them, but of any but work Some labor have of can most scale

Jonas Prising

the to at look highest degree starting and average Maybe averages with careful is where Hamzah. anything, to as be the the course, But inflation. we wage wage of U.S. best want you with market, because that's semi-skilled see some months. the Of much maybe But the workers, point the is X%, over wage much white-collar could in blue-collar inflation been workers, between sets. inflation XX has and unskilled, be a and skill stronger stronger the higher X% last specific for bit

So can and inflation the where level U.S. that's see you wage really wage kicking is unique of to inflation in that

are it's increases been it Although is business, the and all in as to a wage moving have of inflation In in as across cases, the lot have stronger that spreads those where is match we not Europe, through we direction. is in so right able generally which wages U.S. also bill-pay our world the our strong

inflation very As for the we've we on we rates U.S. a global on aspect also our talked have look positive at on overall certainly, prior bill seen specifically, our our business And business. a but evolution is in calls, good generally as basis. some wage

Jack McGinnis

to I that seeing on and your huge availability how it. Hamzah, our Experis so and second just would work We're footprint, a then business. remote question add absolutely for our And opportunity is

a U.S. is market, our that's and a we talked about, look And post when predominantly acquisition big that convenience comments working big the a the ettain acquisition, we've to business. global And talked billion have availability part mentioned, of is that at footprint we us global about As are footprint a similar addition our broad And very of our well. and that the the U.S., great additional U.S. that $X.X for benefit you huge we and us the for opportunity remotely business. in that ettain with with the IT. for Experis Experis as is worker

same the see our Experis we trends So business. in

Hamzah Mazari

question just followup XXXX with M&A? done COMSYS. largest it like more The it. out of strategic around long-term any had of to be and acquisition, seeing your timing services more It part Are as but lot it's of solutions talked on that know deals? this of on higher-margin the deal since it. are you is ettain professional of Thank I you've Is there? sort strategy, thoughts maybe Is would of aggressive helpful. you. a you sort seems these about My them just focus -- sort M&A. getting a margin Got you've increase you just

Jack McGinnis

Hamzah. Sure, Yes.

think standpoint, changed. really a capital I'd say I from nothing's allocation

that an acquisition. complement being we've an in of very we know could was of look good that be interest that very as with side, thought where that been very, that certainly open but careful. ettain as a professional we about, we And we're area think pretty -- when on terms have I very And you -- well. said, we fit talked basically the

we've we what Right prepared remarks. ettain. laid continue focus main start, So now, mentioned the line we out. capital We're advance allocation our our to to with in a in great off integrating as is will strategy

And on open. great MSP So side, comes has we good We're a our if additional bolt-on it focused for services, careful be talked well. doing those as to on that another good to as go very with resourcing past. to market-leading that analyzing to professional very, about the the but continue opportunities. those to us on opportunities opportunities and be the integration opportunities. to go Talent could when fit, moment, certainly, continue and as be is forward, keep there about look the again, continue see we'll would as RPO, growth in we've we at But on very we're be talked and our IT, certainly, Solutions organic very forward say going I'd it eyes And that the area are we we've

Hamzah Mazari

Got it. Thank you.

Operator

Thank you.

is of McVeigh coming next of Suisse. Kevin question Credit line the from Our

is open. line Your

Kevin McVeigh

Great, to the puts some of the line so some way bit different there that's on Jonas, got can it operating seems term? much. Russian margin for give guess, Is in on maybe -- obviously, digitization. I couple professional think business a margin I a both acquisitions and sense a of and you. the Jack little takes question then initiatives about Jack, gross a longer you like thanks and the any Hi you've remixing efforts us terms through mean, or disposition,

got Just it so just lead of on a a there thoughts seems could to like outcome, any that? focus you've and nice more

Jonas Prising

strategy. journey is encompassed describing, The that really within and the DDI all evolution Kevin, you're our

lean our as best innovation generate finally, now, you've are stakeholders. of a and brands, into skills seeing that not our can great those moving higher-margin may engage the benefit our and in talent data have the we talent not really associates find a for needs So diversifying us initiatives well we're that ways, we strategically. seen in all infrastructure right the we're and but our direction our and the well able cloud-based faster-growing, to able so that only analytics you create our all where of environment, applications that which also source on notion labor-tight skills business the to And that of segments; taking all as and clients SaaS that's engage mobile insights the modern consultants, then that business really the are as clients in as company to and into people, our

our you're you're what DDI describing what and is So executing on seeing strategies. also

Jack McGinnis

I just And Kevin. to that, would add

diversification goes to as us just And we're the fully in Jonas these line as of X%. with terms talked expect steps our that really in you'd type that are focused of think about on committed target, X.X% to we've DDI so the what take I mentioned. of EBITDA steps again, part that margin financial to

So can ettain open We've through. coming in that you at above very coming XX% about and increase. see the been

fourth be us And business, a They we we was really as our and basis forward really, a added can in walk as we collect commercial staffing with franchise Russia fees the as a a You in management profitability And portfolio see going mentioned from to. very there margin opportunity. actually higher was in forward. a that's adjustments, points going the in team to we margin is the where on the good better great, the margin. GP I look quarter, at than that line a a very the strong going it on little hurdle lower rates at opportunity was it XX came for margin the but fourth franchise, which result. GP look business, that bit And strong quarter, great guided that

on those margin, a and going to sustainable improving our the to going that's be of over types time. continue focus should So structural that expect diversification are improvement that we're going GP you steps forward. And are to

Kevin McVeigh

thanks. Great, absenteeism and way then in the any And frame there what's much Jack, QX quick, is guidance? QX, how impacted just real to

Jack McGinnis

so a of I'd in well We've sickness countries. the in and broader impact margin, bench Germany tick and saw periods it a other some Nordics comes Norway say degree, that's always the Sweden it's countries up. and the not because bench But GP more the the like say countries Yes. the absenteeism the in new. and definitely our impact bench in the did seen -- through winter some that we as I'd of and in Netherlands some countries to -- on to with

much were the at much at what look if like dealing we when Delta with But a average this be So X% in more of like in the quarter so we moment. than and at this, X% impacts it's That's as third a manageable severe we higher we look when we for more levels are from seeing said, than year. variant. type more up probably Jonas to that ticking at were at sickness of the of Germany levels country time average the could kind

models. but is markets at when in markets And and candidly, due a drag, a aren't and the so been actually we improvement results by seeing overcompensated the it being of in impacted other to look strong bit U.S. it's the other that the bench we've U.K.

into guide. So it's point, the continue, and part. at expect viewing We say factored that would relatively some I'd been going Kevin, it to we're manageable. But that's offset been for as most our this of that's certainly,

Kevin McVeigh

Thank you.

Operator

you. Thank

of line Marcon Mark is from Baird. next the Our coming question of

Your line is open.

Mark Marcon

Good morning and my thanks for question. taking

if the in XX talk rollout Manpower I been think across lift sort PowerSuite You've what markets rest the about you're like from of a should we in bit seeing in? has that looks when impact operations the soon wondering markets. little was implemented globe? there? the How you you've implemented PowerSuite the like we then in you've of what expect what more about And Also, mentioned that that? your we that? should get what France, across could And

Jonas Prising

So visibility strengthen PowerSuite really years the platforms and associates to for operations our course, of in and at last Experis. accelerated it's ultimately also is doing able we our back for to the do consultants information are, this the common major -- and being at for both and office of We our And been because We're seeing engagement, as whole the the front like all pace. organization. match, adoption, And imagine, the of us have these are through better we rolling can and mature employee rollout across you to recruited of about most major a globe. middle effort the easier something greater an the the of the technology this -- with a leverage company. talk heard for productivity, are countries access the that point, waves you've faster couple that in we the

that the consultant So we're doing best striving instance, data for productivity for MyPath, predictable opportunity, what a reskilling means always to client upskilling with and that for the would inform a efforts the because gains to specific and match be better or associate of we're on benefit. and collecting insights greater faster, perfect on the match candidate the it

what we're with That's they is and with And the client signs last give where improve their proven their months. we're be number as and that do deployed going them the well not only the pinpoint that pleased retention improve to And phase we good and a the early to feel leverage for insights of their And really is for improvements, really now, an had XX as our implement clients PowerSuite we our big addition progress in consultant the but major very feedback the France we've and data analytics to composition productivity to but very be a can perspective a of population, about workforce deployment, tools. systems that the frankly, countries deployment making. the so a and very of rates, the solutions entirety experiences specific overall, people, those interacting on from have experiences where valuable we're workforce, progress our user over of seeing associate we of from the could for many in location.

Mark Marcon

a bit more take terms you post implementation? some just XXX% metrics? does that regards be to of Like fill go when look or you time rates a to recruiter the look improvements? example, or in productivity, by in could or of terms you at at key Jonas, fill the XX% for with little productivity How do it granular up of some

Jonas Prising

XXX% as we but tools, the use our XX% improvements to scale be I'd able efficient productivity we love when say can productive were and quite to before, to you we at already Mark. that imagine, get

So very teens. the be pleased high there. think improvements the productivity would we're at in looking progress with We I

maturity. more, it's it's less, with sometimes frankly, it's the do also all but Sometimes to

we've we've and I you been think tell, As yet. adoption on can a schedule levels optimized the rapid deployment don't very

on kind think recruiter, productivity. exactly placements good translates on I when see. discussing; to into new So you're and very And tools, some there's some have per improvements match recruiter. And more frankly, which the speed we to seen of surprising of quicker per we're placements more very these measures to come leveraging it positive

other not can want to any new to by a tools, and of significantly, clients counter our provide of a and the reduce the of encouraged mean, only -- be effects our reduce this data I Many are been turnover. might insights organizations can your as also can our hot rates you needs level. been has to different reduce logic, significantly U.S., what if in wage you a before to that's what but come and productivity be these why very scale, are start rates to prevailing increase significantly. very, here from But us promise reluctant their technology global at client and see to and reduce the topic the you rates. what pay scientific looking we support perspective, increase in way, countries turnover all at employers also their we've done a Now turnover, we data instance, many in the increase they and if surrounding have through global platforms locations from But can very of for pay all doing, at which you if

both that of is in and data growth, in is that insights new insight, counterintuitive us, clients as revenues. as kind frankly, well our providing the So margins benefiting which benefiting our

Mark Marcon

as obviously, in as as improvement chain Great. out have also extent. globe these roll well we're quarter, in them Then last followup, to be same terms across as contrast with supply And are to issues going we the of the helpful. an tools, talking And productivity you not a solutions then both mix, regards to about to Experis.

year, that move some towards earlier? think we dissipated, like how of supply kind Omicron that have you the positives about it towards all X% second about helping X.X% thinking are you, going So discussed issues to are this point, of target you of the the margin the of half and to that as chain with sounds for trajectory you that we by hopefully, rolling

Jack McGinnis

Mark, I'll talk this is Jack. to that.

as So a we that's I opportunity. that I thinking our you And more say, visibility would way But of coming of it work and so the in that's seeing line more as a expecting more terms itself here, in can our about results, same the the to fourth they're more because way remarks. clients, on half talk start the the we've the talked first supply and and tell to out like been bit quarter And you of prepared frame more we're from more that chain year it's through the manageable. in positive. time the to

but go, manageable our more clients. to So and there's more still by ways

way them helping very about with and it's to on out we about ability the margin schedule it demand think the So When progression, focused think us. margin expansion. so in, to forth their with think quarter we're quarter I is

that's perm, in So been the points underlying certainly levels is margin going what another really, XX quarter think focused has an I GP fourth well. point of the on of basis but staffing we're the expansion up good the very on basis really bottom-line, on encouraging strengthened the as strong underlying and quarter margin by

us. So expect I'd say should as from we go that forward, you

we unique quarter we revenue basis. know more should But expansion has been we continued each that. should and any those as items levels And bit of note come of on that operational expect this, call a be As as leverage. you will out as towards overall targets will levels. part about an get minus of certainly fourth behind quarter, march more France We'll we were financial in fourth part back, of some so in better. quarter to really from in was the X to good at XX XXXX see the in other X% them in they the countries looking going levels at versus third came the we and that XXXX terms large projected, we X, to it quarter minus But minus the

more France they So and improvement get expect said, Jonas to to pre-crisis that back more as operation, our we adding largest happen the in continue back, to levels part forward; and relatively operational as direction. soon. to We'll as coming going of that's march leverage we that big be a go

a will good So of year-over-year. equate expansion EBITDA that margin all ongoing to

us line. as So in come I a expansion good us a you be think the margin line. It's been on leverage bottom XXXX the should very to goal. for But to operational for top great that we're progress the expect great make will of on that going year XXXX continues already we in, as year approach

Mark Marcon

Great to hear, thank you.

Operator

you. Thank

question from next Our of Tong Goldman coming line is the Sachs. of George

is line open. Your

George Tong

thanks. Hi, morning. Good

started stabilize some has labor in you new of to after seeing response elaborate decline Mexico your You to that on trends the indicated Can you're Mexico legislations. legislation? the in due operation to a

Jonas Prising

it's early days Mexico. in George, Well, still

so some based be we As are the the late normalization seeing that feel we markets And decline been we a August legislation more market-leading was you trends and We've very stabilized. and at the recent and September. so in. successful starting now that know, very then really to industry team Mexican been creating new in new of has XX% But the fully impact we're seen, almost in of felt would significant July of position. the most in on and has the operating have the I say, good

staffing, most the legislation. sectors, one general was have broad-based by the which that means operate in the that in eliminated many We specializations one can is we different and approved government except Mexican the the

the days the we to of clients Many say for early and to of are to very I our then still some going it's will it good in with to opportunity, market time forward. Mexican business. our that grips to so to changes start take we it think the we'll coming these in going stabilization from new but and what terms far, But frankly. get feel there So then with about so happened would good opportunities determine comfortable them have our and we be, perceive are we'll still improvement situations, see take in

George Tong

which on disruptions seeing And the it. of impact? in chain can your business? most discuss then impact And helpful. Very you're supply markets and you geographies the ongoing Got

Jonas Prising

Jack think increasingly becoming it's we said, manageable.

during optimistic Our been has more Anybody the chips clearly tunnel. clearly -- maybe, sounding than see the that at had sector and to to it's and with our terms any this of coming that the of are light discussions computer would more they on we say uses starting and the chips it industries. But are, impacted going it the a In depends is normal on through with end it our settling see sectors has The some well. I to clients dealing of course industry. in in come automotive appears situation clients, when countries that XXXX. about it's country, equipment But depends difficulties. can more of has course, as

since If so well. Europe stands you and fourth in will countries the one better better, as the at the clearly the look affected we gets think, affected that get when dependent world, They the they're worst impacted, in country for worst most the you quarter. estimates of time, out are automotive in But country there, also their are GDP that the can I suspect. on and see sector countries that over Germany the

George Tong

Thank you very it. much. Got

Operator

Thank you.

Tobey coming Sommer line Securities. is question next Truist from of Our the of

open. is line Your

Tobey Sommer

could Could existing where Thank recruiters now adding improvements, if where recruiters? productivity speak talked if as you you some you. and but and productivity adding you're to you're are? give about you. us your Thank to already you color You've

Jonas Prising

businesses good anticipating we environment, you very and maybe can we what are is staffing resourcing but as producers And leaning Jack, asked? that on definitely recruiters and as further growth our some already we're close are have think salespeople, and or investment a in of a over XXXX the as our environment. of we're question over, and But accordingly. and see, you growth we levels in a whole. Tobey, already come of are into and getting ahead color Tobey strong some terms XXXX

Jack McGinnis

Jonas. Sure,

little a around color Just that.

FTEs in from X% up levels. pre-crisis we're So

we quarter. We going as few be in over to trend were third the so last been we did that, that's the hiring the fourth quarters. but And a in guided quarter,

they're year-end up the from X% up are in FTEs XXXX, XX% So fourth quarter.

at increase. the adding reasons nicely, all that's us U.K. clearly Italy we perm heavy the very to legislation us. our U.S. brands for great So FTEs growth a amounts comments The well. broad-based very opportunity I'd great your broad-based only so it's the where, and that looking probably the Talent line Jonas three market the with not most just about we're And it's XXXX large are due broad-based. about there. to is as is point, investing But Solutions Experis is is the is And and heavily the adding to Manpower, progressively a due has Tobey, we all well. about growing been and Mexico as the adding for in and is say talked adding, U.S., are really Italy in France way talked country previous we're

So broad-based it across is all our of largest businesses.

Tobey Sommer

with terms growth sort that but share expense for customers do not Thanks. only there's variable sense to your RPO fixed in expense. MSP and and in has room shifting question clients, followup businesses wallet My where whether the a and new still just industry. into you. we get Where of Thank are adoption of to the recruiting there? Trying just are

Jonas Prising

five the that. coming regions say and behind market, I'd is maturity the lagging in probably Europe is six U.S. years to mature with the most other

in So growth, see for the of world. good potential across terms we growth for still very some opportunities

and us highest, Now has opportunities. to use any six that, them reminder say offerings, is that see insights looking be evolve coming the our to then of to unexpected. our hiring are that service last course, of innovative to over We innovative be And we really accurate. enhance at that fully very And lots gain service, evolving don't platforms and to organizations are able and when and U.S. the and I strength MSP from since for make say solutions, frankly, the in add is significant moment we to the evolved eight that strong as volatility you part started more the any RPO that, can data in us prepared our maybe solutions from years growth significantly companies remarks, to believe these have leverage heard really strike the think we we U.S. maturity of And it's global our yet. the our saturated

forward is well. excel we ability up is the ramp having at, quickly and that So going something clearly feature very that to going a to be as

clearly, in some I a some -- drive growth of see So very full the overall, very I'd good that good great in create innovation are are good U.S. the we but industry for sure we think U.S., satisfy to can clients a technology growth very, whole, also rates the in but we to the services to leading needs. the still and been of talent for a very and our labor driver able engage also here to is also data and our evolution say future And some make that that tight offerings of outside huge today's penetration for based as on we being the ability developing provide leveraging that needs, frankly, has market. insights

Tobey Sommer

you. Thank

Jonas Prising

good us look brings call, Thanks speaking week. quarter with our and the call. earnings the fourth rest next very Have our forward on That to of a you we to much. earnings of end Excellent.

Operator

call. you Thank you. all for And that today's concludes conference joining. Thank

You may disconnect. now

ManpowerGroup (MAN) 1 Feb 222021 Q4 Earnings call transcript