MAN - Earnings call transcript Q1 2022

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Operator

00:02 Welcome to ManpowerGroup First 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. 00:16 And now, I will turn the call over to ManpowerGroup Chairman and CEO, Jonas Prising.

begin. may You

Jonas Prising

the to conference for call XX:XX first XXXX. Welcome quarter

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

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

Jack McGinnis

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

Jonas Prising

that a XX:XX Thanks events Jack. in We unfold place. different truly not the previous could imagined earnings was On tragic would our Ukraine. world have the call,

currency. financial In constant revenue first have with billion, Ukraine; quarter, XX% was elsewhere. Turning support and are refugees we constant X% Let as from support me in ManpowerGroup’s to in Ukraine, previously of later I’ll talk refugees be the the this committed more the people stand or organic done clear year-over-year We results. up we in we $X.X on And our currency, position. to with call. Ukraine, about XX:XX

year-over-year. currency the Reported was X.X%, our EBITA integration Our X.X%, adjusted growth loss and costs was million. EBITA million, EBITA above of of our margin was Russia XX:XX from acquisition business, U.S. EBITA quarter for was Adjusting on margin EBITA and adjusted previously $XXX for announced of was constant a $XXX XX% the margin the the first disposition XXXX. in reflecting quarter which

during well U.S. demonstrated of Earnings Although increased, in per was share quarter year-over-year XX:XX on and most in business Our see $X.XX our diluted to skill ever various in hiring constant And of significant them the led as exceptional more on currency. and this benefits XX:XX some skilled particularly tight the our has Adjusted highs, we at than portfolio our provide performance finance, chain, XX:XX crisis, select our been in basis. transform major shortages and us an solutions. there IT, automotive talent a many successful, markets for Ukraine the has basis of continue demand which strong additional continued to execute The to be DDI in for Europe, a services and challenge strategy. where major remain effects find share noticeable In requests a brands year-over-year In in to due We of still result, environment, XX% pent workers intentions manufacturing supply and are overall, operations. very markets. continue workers up for driver reported and strategic a clients was operational to per flexibility the uncertainty improvement. adjusted significant we as $X.XX increased geopolitical earnings need as levels our with that, side have globally. issues with and and pandemic disruption labor industries, especially and in to markets, see workers. but our to supply record clients, need

and the On scale. value very through at Digitize, for of XX:XX business have And our XX continue agenda engaged and candidate transforming strong in our Diversify, and our IT than of associates Innovate. XX:XX improving On quarter, higher strengthening Manpower upskilling expanding talent this as date had XX,XXX Innovation more businesses to across experience. lives our and adding skills our clients and creating to of part a mix, pathways technology strategy, Talent execute we contribution Diversification, to we to value the and Digitization, countries skilled Experis France, our and our permanent pool initiatives U.S., profit. scale associates’ gross We plans continue BXC now resourcing, to our Italy. growth recruitment MyPath, Solutions actively Our higher client career our services, program, and future including more Manpower

continue Jack in to This will strategic our profitable turn results for you sustainable through investments. it our we to to reinforce stakeholders. QX choices the now value Our we I how believe for XX:XX to all will confidence growth And our over results. long-term and creation is and drive take now the continue

Jack McGinnis

XX:XX above Thanks, range. range. Jonas. constant top first Gross our of guidance at guidance in our end margin came profit the the in Revenues currency quarter came in

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

was above of and after XX:XX into Due increased to of the of a to EPS organic the impact down the earnings slightly of was integration revenue points our guidance, about share the As our costs U.S. improvement, per the came negative XXX the included which net to more adjusted, constant acquisition for XX:XX X.X% Breaking currency points revenue adjusting organically. acquisitions our trend $X.XX currency of representing revenue of guidance XX%. EBITA X.X%, the basis the more quarter. and X% or $X.XX, impact margin in bit bridge, XX about during was increase January Experis X.X% related basis in increasing Turning detail, loss business announced X%. days, reported our compared on our to and Russia days-adjusted previously revenue billing sale

see to of well adjusted EPS was guidance lower our operational $X.XX, results slightly end which XX%, items and above very and weighted revenue XX:XX a XX:XX in had had XX%. growth revenue our a brand Talent share growth other of $X.XX. repurchases growth which continue revenue reported from growth review slightly Excluding line. negative a rate, average our brand revenue due the higher expenses, of quarter, the $X.XX, revenue brand MSP. which $X.XX RPO Next, included Within the in X%, top favorable organic we $X.XX, added growth which Solutions, reported Manpower an of positive a performance XX:XX impact, the on was range. revenue to exceptional our guidance let’s effective impact tax Walking shares improved by in constant basis, of Solutions reported Talent mid-point, Year-over-year, these and the currency strong of Experis business

point margin across Experis As a a XX GP revenue added recruitment we XX gross percentage continue detail, profit decreases staffing gross strong contributed experience acquisition our came activity saw Permanent to as to largest contributed margin our basis Underlying The double-digit U.S. XX:XX low be Looking a margin XX.X%. in XX at basis continued record hiring our environment, points. Right career increase. markets. point the year-over-year. margin outplacement business. Management in was adjustments at Europe improvement items point XX points driven improvement. and basis onto XX improvement XX:XX points business margin transition also was GP lower profit which of by which our XX Direct represented XX:XX Northern represented Experis reduction. basis cost points of in Moving by offset gross other Solutions basis This in a contributed improvement, business, U.S. XX Right a mix by basis resulted Management of line. basis

profit organic profit, our in comprised currency During of profit $XXX gross the basis Right quarter quarter, constant gross year-over-year offset an the Our in During Gross XX%. Experis year-over-year. constant our in currency Experis Talent trends. year-over-year during due XX% by of brand XX% partially RPO discussed gross was growth XX%, Manpower XX%. professional SG&A Manpower increased was and outplacement the MSP reported in expense comprised Solutions was This organic the earlier, currency an business the XX% which brand XX:XX in Management brand on the comprised million. by quarter, in increased profit performance Talent decreases quarter. to our the XX:XX constant driven and Solutions Organic

$XX basis, The the and business, XX:XX percentage continued costs segment growth net the first reflects SG&A changes currency million, reflecting an in represented of in X% an on costs, expenses a XX.X% OUP largely the consolidated million. recruiters the in higher acquisition for Experis X% addition quarter. $X.X on currency U.S. markets SG&A constant in currency quarter $XX XX% basis. was revenue. to integration acquired by opportunity constant businesses The of Russia incremental and XX% of days. the and XX% XX% underlying investment Adjusted comprised million. was disposition higher various basis, Revenue on XX:XX million, loss sales personnel This billion, of $XX currency the after a of in currency $XX costs of RPO, offset of operational Excluding revenue or or Manpower. of as and the increases adjusting in on related increase Americas organic an constant was business consisted constant in organic Experis,

for As was our the adjusted prior to XX% As OUP business million, U.S. XX% a was organic or in the XX%. increase, in of and U.S. million country quarter $XX the OUP U.S. revenues. exclude $XXX days-adjusted Revenue XX:XX acquisition segment, adjusted, the XX% was organically, representing XX:XX margin the costs, $XX Americas in X.X%. of largest increase compared an was segment million integration The comprising to year. OUP representing is

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

the for a the revenues. growth Management, range U.S. Talent margin the revenue in XX% million the Experis an U.S. The brand the with and Within The XX:XX the segment of Europe XX:XX decline hiring by currency. second The revenue the the for quarter U.S. profit U.S. Manpower anticipate brand quarter, XX:XX in OUP second Our in currency. gross continued decrease perform the U.S. OUP the in RPO, in during U.S. a We second came the from Solutions Southern comprised in XX% approximately increased an and continued of expect U.S., anticipate that representing the XX:XX business in improvement which profit quarter, we U.S. run-off. XX% quarter. revenue new transition XX% XX% in career or was million Experis to comprised on-schedule. Europe growth XX:XX growth acquired The Manpower and the quarter. and XXXX. France during driven in increased was XX% year-over-year, brand continued to well underlying Right and revenue quarter. legislation was the X% the the quarter. Southern the $XX $XX quarter. continued and revenue exceptional quarter. we Europe the integration business Within stable constant gross X.X%. to activity to of quarter. MSP the constant in XX% XX% consolidated in experienced quarter, Mexico of levels equaled comprised third recorded to to revenue in growing by This during XX% revenue quarter IT from growth organic at XX% quarter organically X% revenues the solid ongoing quarter. the new revenue the X% contributed a revenue XX% record was gross Experis growing U.S., driven Southern the XX% Within the similar in XX% the the with as growth business win Experis was the growth of margin of in continues XX:XX quarter. and in $X.X experienced comprised comprised XX:XX strong quarter the and in the Revenue commenced of X.X%. improvement fourth double-digit fourth of OUP In profit skills proceeding currency in strengthen. experienced billion, decline Revenue the in quarter labor in revenue trend had OUP during programs strong in in of is operation of had constant quarter organically. X%

loss Northern revenue strong that in year-over-year recent to the quarter, Italy constant increased was represents year-over-year in XX:XX the $X.X continue midpoint with As in increase in a we in adjusting March revenue in by X% quarter. The Our the X%, will Northern revenue the in April $XXX segment OUP organic estimating OUP and March business, represented range automotive France revenues growth range quarter which for X% in Our and an constant second deceleration revenues the to comprised our XX% in quarter currency. was the have quarter which sector. for is X.X%. U.K., of estimate on the of equaled segment France. After slight Italy margin in early of reflecting growth are equaled days-adjusted driven second currency to revenue million the We consolidated for quarter. of currency represented OUP the is sale range was Our Revenue XX%. the billion. Europe second also month guidance in growth France our the we begin in OUP in constant the market the in largest in XX:XX of to $X $XX constant segment X.X%. of growth XX:XX XX:XX increase margin XX% X%. the XX% Revenue and million, of X% Russia of currency million Europe

were flat arrangements, UK permanent higher aforementioned X% This business quarter. revenues replaced in in These increase and Our in well profile margins first constant U.K. currency. improvement performing updates. certain actions In business. the During constant based significant decreased is decrease low the fee-based the a margin driving with are expect XX:XX and reflects second including our in currency the mix slight UK and quarter recruitment year-over-year of growth Germany, business. on the quarter, margin of revenues in we during the revenues other margin in days-adjusted business exit

$XX has million the our lagged related in of COVID-related in regard. the seen many XX:XX an of quarter. of segment quarter. total was in quarter, in Germany anticipating Middle second the XX:XX sickness XX:XX rates APME and European this utilization quarter, in second in of Although improvement of a half days-adjusted to are constant have quarter. XX% Overall, we are segment Asia in improvements reflect in The comprises worsened million. market XX% and second in OUP the is associate We March. for Germany the also automotive grew sector grew company Pacific a during sickness trends represented largest East currency In $XXX the supply OUP which Our in course year-over-year rates revenue. issues revenues in expecting sluggish chain margin similar Japan, revenue X% constant which have currency. the was Revenue trend XX% the X.X%. segment revenue The in Japan businesses

market like which We our I strong performance the with continued the to growth and in Greater we are As continues my in give on growth, our very revenue on of in China. revenue I ManpowerGroup expect pleased second business, Japan XX:XX a brief would comments lead update to the investment quarter. wrap up APME,

ManpowerGroup quarter, pleased and quarter, the very first cash I’ll X we During turn first now $XX $XXX in free quarter-end, XX% recording days XX% significant strategic up year, China compared $XX year-over-year. days. million Greater prior Kong revenue XX:XX in the Capital XX% including million. with Although the flow increased Profit the and very business sheet. flow longer shares of attributed the no of recently quarter. XX:XX to growth a At Stock about on day equaled the remain largest to is $XX has results and XX:XX XXX,XXX during we Exchange, in performance. shareholder are business In XXXX the China investment, since released to a XX%. sales outstanding represented with cash approximately balance for their XXXX July this consolidated Hong growth million first the XX staffing million The Mainland IPO China. for stake year. we stock owners of well year-over-year expenditures was at performed repurchased represents their

million X.X XXXX. August program $XXX for in As of billion, XX, $X.XX of a share Our quarter remaining shares the debt approved under repurchase and ended have the resulting million position of debt total sheet net $XXX XX:XX million. balance in with March of of we cash

total EBITDA quarter. of did X.XX Our debt credit the gross Our change total months and debt facilities adjusted in ratios capitalization at debt total not quarter-end to at to XX%. XX and trailing reflect XX:XX debt

from the the of to revolving expect outlook million. remainder pay and was utilization During million funding the utilized XXXX. over the acquisition our the our in U.S. of I'll next review Next, six months. to we The facility quarter, $XX the reduced credit Experis XX:XX $XX for million second $XXX we revolver down quarter

We assume to additional the to operations. in second impacts includes currency X% to the which adjusting our represent organic foreign of XX:XX during will constant of be industry This a usual, sluggish our full-year both the and points second automotive be the our continues material quarter year-over-year Regarding we XX:XX tax the second acquisition predominately acquired in weighted share no EBITA U.S. compared again XX prior points We incorporate $X range be contributing France basis manufacturing, quarter margin of $X.XX, the forecasting the integration Germany. disposition As now business XXXX. today. the basis, the to to is about second this, U.S. midpoint which guidance XX%. up to broken million it midpoint After Our regulation at does continue to $X.XX earnings continues stabilized be rate XXXX Experis expect and quarter for or Considering of to additional $X.XX growth acquisition out which we to restructuring of include mid-point. XX:XX our guidance turn a costs effective billing slightly days-adjusted XX separately war share. or Russia, the not revenue and represents back COVID-XX our per year repurchases million. estimate Mexico unfavorable impact exist related at business, Russia-Ukraine continue those to of currency from and loss expect share I XX XX:XX of rate range of the estimate for exception revenues, that average shares we of the that our in represents charges in to will at second days ongoing quarter X%. guidance lower X% improvement. million, the with per across the of not does the number revenue of On solid be Jonas. of revenue basis the represents beyond XX% impact Experis revenue XX:XX between be in growth verticals the that to This and the and with are quarter, X% the an impact the for the to $X of growth underlying

Jonas Prising

Thank XX:XX do. values like times In all this, you, Jack. be our continue in we guided to we that by

you with teams crisis, responding our share more how me are Let on the the business. Ukraine to across

are included can As solution. sold provide Russia we of part as Ukraine, a the focused impact part be our business, our year of January this where covered and operations We in we ongoing earnings on acutely portfolio which call, in XX:XX strategy. last in greatest we the our geographical

serving As and support Russia sympathy providing At and this to even sustainable we Russia employing a former in heartfelt been our longer to and and before time, no our always goes Ukraine. values out focus and as Ukraine result, on centered people their the were in work invasion, have XX:XX clients. others both colleagues

providing history with two the leaders in to to of our journey refugees, amazing from helping to employment their impacted, more crisis. growth XX:XX Polish resettlement, deliver with driving to tight with Ukrainian saw than the the many then provide a than on European foundation to the talent team homes, We during hosting young during danger work and weeks of quarter, people Just a the in strong I own million other having drive doing with country of very X.X them are the children. motivation our At support also a less have truly spent team humanitarian countries, XX:XX approach, support and and safety, women in PeopleFirst the on I Poland, them ago them incredible a market. Poland, teams in their labor Czech the couple business strong of this first-hand Republic, and employing months. in same the neighboring time, long forward, including profitable refugees time received continues most

one, partnering neighboring and impact. crisis, on emergency Our to NGOs companies plan Ukraine three, and refugees additional including into kicked working threefold: support XX:XX in countries. people ground is long-term program and Poland in humanitarian closely upskilling surrounding countries; two, with which into days and and the and the providing to MyPath support, resettlement integrating the language clients immediate with expanding relief our with Action very We scale are in workforce,

we roles employ Republic, allow more opportunities. including to some are in environment the swiftly the goods are the in outside aid staff managing humanitarian have local organizations, teams discussed, environment continues proactively and now, and women $XXX,XXX risks in roles be ongoing growth them worked manufacturing agencies to we of the country. past we the Poland, manner citizens work and refugees, UNHCR Red ministry that consumer Slovakia. alone, we with an continues redesign well with manage labor XX:XX changed do, in counting to very to but I always of Czech in partnering we and a Cross. and which very which, change, We Our helping there to in success, to auto XX:XX people to as hundreds as industry In few to good Republic, in management they to up the Polish are non-EU ManpowerGroup connected verticals current weeks And we and this for committing legislation Czech the also are while production economic Should growth will for position XXth Managed for the a scoring drive that the we recognized of investing recently we Journal as were of one markets top sustainability. success highly one also companies, especially for recognized resources by the critical always, of the Street a talented and year in company ethical to were business advancing for role world. Companies the where We leader accomplish. driving open more The call We Drucker and societies World's global as driving for Operator? is Most and Institute positive to our communities decade XXX the additional business Ethisphere, XX:XX only our XX:XX And as XX:XX for a We now Ethical of in industry I’d for our to by and around be the playing to defining and be it practices. proud also, continue all see in and than all our Wall thank our profitable results the change are teams opportunities are people like recognized in Q&A. standards in we growth.

Operator

XX:XX from Thank have first you. of We J.P. [Operator Instructions] our question Morgan. Andrew Steinerman

is line Your open.

Andrew Steinerman

good Jonas year question, to unusual, last I so the XXXX morning I'm was also You you we're and and facing looking if know, economic recession, Jack. kind and ask Hi, recovery XX:XX it typical the back Russia conflict now steep an the and kind was at surely a just cycle brief, going and economic of could? of inflation.

a the is, are tenure question geo like that macro place does uncertainty kind in drivers long it inflation, my and of period we economic feel assuming ahead? of can this of So, we through get have expansion

Jack McGinnis

of our did to at if results, if strong difficulty aspects a markets, workers shortages very when strong look Europe and in looking there finding that many in can you broadly looking And ago, pent-up the tell we during demand I still across look involve demand many extremely the a XX:XX And – of that the across labor Solutions, skillsets conversation countries pandemic. talent, you are that talent. our the Experis, is a all and the And of few Talent all pandemic. of for. demand of perm, brands, geographies, talent And effect improving as are from all all after growth across due Manpower That's for we're look see for in wasn't very phase weeks traveled you which Thanks, great XX:XX not just improved we between this at of you from of markets we an across QX question. our the can observe, in recovery we part are what course, think tight. Andrew. And

at you you we continue. demand, have you labor look at can to of where have degree we of of growth a forecast Andrew. look lot think very this you markets, QX, our demographic higher you drivers have outlook on the we about so about less the a markets going good So, we impact labor least uncertainty, tell ahead is when opportunities if as And people feel as that from growth, structural into

Andrew Steinerman

XX:XX Excellent. Thank you.

Jack McGinnis

XX:XX Andrew. Thanks,

Operator

Thank you. XX:XX

is Manav question Barclays. from next of Our Patnaik

Your line is open.

Manav Patnaik

XX:XX I impact have where terms the clarify what be? said, there wanted you Thank some I appreciate to in you. seen from just assumed wanted moving and you've guess to conflict, I guidance, Russia-Ukraine impact, the just of and the you pieces could

Jack McGinnis

XX:XX Manav. frankly that impact Well of markets, to we relates the as by at Well labor far, most thanks, it the are so driven the looking are pandemic effects.

markets. was that saw So, what would situation we in many anticipated the COVID we improve in the first had quarter as

globally, Really rates will of the continues any And number which pandemic. the as of that, pent-up sectors. with both exposure they main sector guidance, demand the than that XX:XX course of segment additional as where we vaccination chain, we into following to world. the continue markets sector but broadly supply QX most on in saw all a in in France, countries prove little was the you well other – the speaking, we opportunities about good talked in as have to well prepared growth impact automotive about with improving dealing we impacted as the in can our and of from feel with was expect a over bit remarks, couple We our as automotive be a to heavily tell we terms higher impact and Germany,

Manav Patnaik

had business? your has one that one. one cycle, always France goes it. maybe think any the had I quick if another and way election Got XX:XX And whether on impacts then thoughts just other moving many or pieces like we

Jonas Prising

trends to overall, our can find I in-line a we about do would XX:XX visited was frankly, that conversation help were more queue our Well, every say and when with line, clients I expectations just people. the what ago, weeks that ahead France, few

XX:XX the first strong. our rate, quarter, did primarily exit growth a still by improvement the quarter but experience is slight did underlying We So, an in and between demand automotive. we in fourth driven the quarter trend that's and downtick with overall

XX:XX which sector. France current slow actions French well, to but temporary is automotive also for to and in So the year, budget election, commitment And introduced the quarter we're disruptions shows were France’s isolated positive expect And see view our we So, we to growth we recent frankly of the would election, business. believe the recovered the business to happen because tax reductions France and coming favorable provides President making continuation that last as government should the has Macron would for for the stability government business, which and recovery unexpected expect optimistic but we the recovery be global it competitive more slightly the on ongoing French on overall, the a does case win Macron we'd market initiatives, long win, working history of continue well. to we've and in labor all expect as and with and to all a administrations, had not that policies, do that overall. continued related

Manav Patnaik

Thank it. very Jonas. Got you much, XX:XX

Jonas Prising

XX:XX Thanks Manav.

Operator

XX:XX Thank you.

is question Credit McVeigh Suisse. Our from of Kevin next

Your line is open.

Kevin McVeigh

congratulations. much XX:XX and Great. Thanks so

get overall? French in and remind is nine, takes some just couple in, low-end just Germany, it how You if the heard right, of I the Jonas, of seems that you're just to high-end much so and and Auto more France? versus us just the around with like puts times. would X% range And in five the maybe The to guidance? could Jack then tie what mentioned a France, auto or to

Jack McGinnis

XX:XX This Sure Kevin. Jack. is

to the happy refresh exposure. So, I'd on auto be

about overall impacts I if release, Germany. quarters, of couple some are as that's to auto we at revenues our that appendix you of last can consistent bigger pretty has we specifically holding you but our the in said, been think look X% been seeing see

well. a think auto is at I those fairly to So, Germany XX% some business, all is workers, related end the is auto, consistent about user is of industry impact the XX% are moment, clients, manufacturing about that our that's been those biggest France X% Germany specifically as certainly are perspective. IT but not from country and auto so XX:XX but of to

specifically. exposure the we've countries, we really of probably little industries. we're was in some seeing to. So, two markets are do say, now most in towards quarter that been to we I'd chain that the could the in lift really of And we're referring the the impact some I'd auto it from have supply items so us So, like those second say, but that the step-up be in has it where impacted to other would X%, maybe we of revenue, business, at non-enterprise convenience, midpoint, Jonas Germany of a stronger the terms France To the XX:XX by job a the other France rate the Kevin [ph] [seize] the growing way second so, In bit guidance above experienced there's would the XX:XX for experiencing, just in high-end higher-end just March that the at get the of what quarter been a and has that French of the doing perhaps nice part growth. driven into is opportunity if equal not range. X% to

are I I'd how we're kind thinking focused we're the that. flip investing in we the very and are that's We clients. a but that in very on say still sector the we is growth one that France side, some recruiters good say France moment. enterprise automotive is opportunities outside in. On watching of market automotive is of it closely There the XX:XX the investing at we're in of So, and think did

until the we a that time us as is that from is So, quarter sales on little second but opportunity of we you as well. an the recruiters in move a for there the beyond lag bit the see bring results,

Kevin McVeigh

so you Thank XX:XX much.

Operator

Thank you. XX:XX

Our of is Mark Marcon next from Baird. question

open. Your line is

Mark Marcon

have are higher getting of if pent-up on to that we about exist to should it and severe continue to Most are currently recession Europe do could relatively the impacts first a Europe, people business? of is relates European On constraints Europe your relates that saying know and questions that are as demand. lockdowns like are exist as both given the then that trend to with the it regards just to do appreciate being continent do up think some probability prices clients those you Jonas COVID they lot, occurring the just morning a in Jack. all Jonas questions. it could factors shortages recession, on of that you XX:XX then maybe the the end shallow there regards Europe, boost or with to to but I'd and lifting how lot some occurring before what of good There's and had to they lockdowns? sorts a How demographic how and basically supply potentially And possibility Hey, a travel relative COVID? that China Europe, energy don't they your discussing due chain and more structural for talent unfold?

Jonas Prising

great the this pandemic, issue in U. really and Experis, talent skilled different of than that as can manufacturing to and across we are with shortages all course, the a inflation And dealing where faster an you've they're is lockdowns, lower higher travel the the recover as seen, workers they're they brands, significant Manpower, experiencing are overall clients recruitment have permanent S. a discussed various issues, are all XX:XX every sure to that demand that wage how find lot products instance. bit IT position the effect, the grappling They Europe pent-up for have to. Mark. seen wage our Thanks, the what their for is but of just that's pandemic them as is it do XX:XX they almost quite very strong. I exactly healthcare through the equally Those services. countries is of you people workers, from with very, in in inflation, I and questions be in trying and the of XX:XX with help of demand So client main where skilled it

wage our rates So, able take as to markets is inflation the terms a attract move the know, in concern, the you they inflation and positive talent. but willing the with and to are ability are wage to is will model business to inflation of when we reflect bill wage far, so increase our

level, million on in people, of I'm than beaten the Texas second rate weeks, humanitarian Ukraine, by Republic level. crisis, great energy business to the Poland’s and prices are focus seeing demand. concerned unemployment of And see whilst are the absorbing the coming in food a strong where XX:XX their so that strong. expecting Clearly, of of the most Poland markets at the and costs absorbing I on more and the size Europe on Poland course, difficulties, unemployment. Ukraine the in the XX:XX United So, [indiscernible] the lowest conversation. to So, is services going and of to where eventual and around But a they population four with aware point, also but still humanitarian course, Poland the I Poland, X.X% demand to when Ukraine of up XX go Czech and the product about and they only in very X.X%, of our going States for crisis all because equivalent rising have the is travel this XX:XX of there, very, the in that demand our issues the are are tragedy they is is crisis, of but is outcome

during with have year. Poland We this expect profitability double-digit good growth strong, record in to revenues very

increased our you labor the not they discernible but from our our change So, today quarter time tell for demand. clients as services, the least seeing of to clients taking while any on our we're also outlook XX:XX actions behavior working across the our based So, at strong, their course, the that second remains are markets, to same at really clients and we absorb with are demand frankly can concerned, uncertainty, can which what their noting they're what drives are as us turbulence, well. demand seeing fulfill

Mark Marcon

through growth nice you and bit awesome in investments actual then Experis positioning, you that extent relative to for great. IT improved share about to to talk just talk, made? you is to a which That's that market showing would what really gains that improvement, the you XX:XX can place improved you’ve demand systems the Can little have secular see. and all attribute And

Jonas Prising

Operation in your clarified organically of clients XX% with that huge Well, our outlook, of demand, structural we’ve And we're pleased from resources quarter. that resourcing well. in as into Experis progressing continue the in going the as heard leader to relates transformation, we you years, integration is acquisition structural are feel think areas great gain, to U.S. for the with gaining position job is down we IT to of question good the demand, forward there. to especially progressing And there positioning doubled IT digital going share the outlook really you growing very heavily strong, from positioning performing looking done us going well. market how due invested and a globally share think the IT across a about second XX:XX have number a in every recruiters our our which team really we it that the and being And about market forward on but globally. heard our today, frankly, very for with demand both Mark our And U.S. that And of intend course, very also. of pleased but are XX:XX prepared at very are with is for how the Experis to our investing solutions we progress and feel I and a operations the in U.S. U.S. of the well and number practice company I demand strongly as and Experis those Solutions to is we're IT really – operation as and good in really we success. well, we as has for resourcing in UK expect of U.S., the and solutions be the Between overall, XX:XX XX% when the on think is we're we really globally remarks, competitively our business part and

Mark Marcon

XX:XX you. Fantastic. Thank

Operator

you. Thank XX:XX

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

Your line is open.

Jeff Silber

from color on XX:XX how any up trends? that remarks, specifically if wondering else finished in Thanks so intra-quarter In any some or there mention the intra I’m regions? just much. you get we anything you the can trends crisis of quarter some in, at other Thanks. Russian-Ukraine in did specifically was I'm March, major prepared your interested least if impacted impact France,

Jack McGinnis

the so definitely out. point, France called was on Yes, one that Jeff. we XX:XX that

out down. So, referenced that that to stepped of I X% they be reasons. Germany, look and for we other moved Europe, in If would across the the really from X% would same the say, one month growth Germany XX:XX in March. call countries in about the February January I an I’d rates other

have the As March, approach we we they large on chain that issues see to were supply from concentration a starting there. impact automotive bigger

the the we a two overall what I'd to because of that we forward. part part think about most. saw jump And one So, down where are similar were digit that from in the XX:XX first that probably I'd overall the we're month of using on as was out look the basis, a say, quarter big pretty as have probably before. trend quarter they will March percentages our those step mid-single say – we Germany

and UK business that changes, the some really are mix revenues talked quarterly improving other we about and doing basis on The were really was highlighted we've item the margin. the which UK year-over-year, well, the a is UK flat more although

margin probably the performance a anticipate we had from quarter and So, revenue are I'd going impact the UK. the that overall out But in European down perspective the a quarter from I those them into stable I'd slightly puts pretty would quarter. trend to perspective. in a three a and that good maybe second the of quarter second they well. from saw takes, into the first that say probably bigger were XX:XX from say similar expect trend a really Although as perspective, we the have we probably call terms

Jeff Silber

China. question in drill down XX:XX Okay. earlier, the a his And I little in but terms this great. in wanted recent to That's lockdowns to more bit alluded Mark of

late March. I only in started think they

see but an quarter? didn't any it's of to the in from your Thanks. second anything on the there's issues, probably there be in much chain you quarter. first China lockdown you still else early, impact supply in impact So, impact I think going is know recent the any business

Jonas Prising

any we whether was XX:XX That's in it's say out, to be, as a there they early about whether as earnings point too notice are good be question, and I chain calls lockdowns, impact, of we've but with prior as as might rather supply didn’t these nature. we've there in experienced, spoken but any but there, anything you temporary Jeff. think in And just they March, will

a supply cause demand disruption. there are temporary they So, They if postpone they chain demand. cancel issues, don't

then other and catch of disruption, again, up just it countries, And hard exactly is seen it's tell will harder eventually happens the to through to all So, a up. XX:XX temporary expect it and just a as production catch which control. in work those more as workers for we as we've facilities then effect starts frankly, subside would to if COVID to drives so, there where the that would outbreaks get come governments be, the under if but demand

Jeff Silber

Okay, helpful. XX:XX so very Thanks much.

Jonas Prising

XX:XX Thanks, Jeff.

Operator

Thank XX:XX you.

next Truist question Securities. is Tobey of Our Sommer from

Your line is open.

Jasper Bibb

morning. Jasper Tobey. Bibb for on good This Hey, is XX:XX

up Experis on growth you to quarter? I bill the in could in question, U.S. the for brand wage was Following ask quantify rate inflation Manpower wanted about what earlier versus U.S., the the

Jack McGinnis

rate that disclose really have. number XX:XX due that countries Jasper, of just don't bill this details We to like Jack. is the we

I question big strong. margin to So the And a which that saw a hasn't quarter, very that. what been look I expansion good is driver at contributor the is, for that your you specifically was in GP perm level Experis can't in we Experis of but tell detail, perm, directionally big and was to Manpower if

the year-over-year that have of business And the on organically XX:XX then margin GP U.S. So, we up strong improvement helping is very addition similar, so the margin acquired certainly, and further. the strongly the very, very that quarter. in Manpower in side, GP

the and SO, your in Manpower. our into GP top of I to strong gets benefit very we to pricing continues client, dynamics increases. worker the on found play does the our of think that that. point, mentioned, through Jonas goes as margin Experis passed to those dollar be both inflation, Wage cost

we're stage. that not demand Those in on impact seeing, seeing up are quite at an through of So, basis passed we're I well. and overall terms trends holding this wages being that think it's still

Jonas Prising

at add see maybe believe off at wage early high, would XX:XX trends, or passed in most we've look than course the And It's believe we growth we U.S. earlier that of we the also and increases. easing but see to are easing U.S. recent little in still is the to peak much I in peak it the wage specifically, we're of of when an that other to I which yet peak can we believe bit in inflation a inflation, our exists positive but of have relates is countries, elsewhere days some and some Jasper, just starting that the It's rates, in is as U.S. wage Europe but of inflation, mentioned as seen that we and it in, higher we overall.

Jasper Bibb

you employment will I XX:XX at or business you temporary say And tell? country just it's [ph]? Spain makes you then the sense. on to your intra was still Thanks that stage could legislation seeing hoping [in speak there that any to in too quarter] came impacts this out Are early

Jonas Prising

is but legislation say as broad that, to temporary a generally is just impacted, the on summary, parts overall, the large, proposed [legislational for like we legislation. the that's can legislations but implementation the clients [ph] related and Italian the April at to but Spain’s We're is impacts X. into before are would industry, not. which of this, are but our weren't to will there Italy short-term of targeted on entirely monitoring also So, really using have, of them positive us the [ph] opportunities we happened this neutral clients temp various successfully moves way is be contracts contracts I assignments, come So, used staffing we be model break within but So, for Well, I reaction very in at XX:XX of able the be hospitality specifically think some opportunities to of part XX:XX use label but aspects] manage based overall our impact and proposed we our XX:XX overall, would like temporary because gives to terms positive to in our in tourism and them, know hospitality performance it's and more primarily is We're we manageable with temporary our a what of and very Spain. but we we tourism details for business. the such in than these believe we out means markets anticipate there new to are an this industries the actually dealing And [indiscernible] sectors the by for integration] and the this what less so this it business, as good of for we them be XX:XX leisure these but think any to business a temporary which that pretty of evolves, our could and other captured on are because are not requirements the [stained say, manage overall, opportunity, on onerous, to helping closer going closely. the talking positive we X%, really what new it our the the would legislation model. that that about And this addressing, penetration industries.

Jasper Bibb

taking color. Okay. Thanks for XX:XX Appreciate questions the the guys.

Jonas Prising

you. Thank XX:XX

Operator

you. XX:XX Thank

Mazari Hamzah of is next Our Jefferies. from question

line open. is Your

Hans Hoffman

regionally, wonder in curious additional This than or worse Hamzah just in verticals bit guys Hoffman market came end you Hi. Mazari. there or guide? maybe could color filling by you on is any if which I for I a geographically end-market? better know Hans comment XX:XX your but really guide on

Jack McGinnis

a to XX:XX Sure. I'd bit be talk to that. happy little

based on I and professional performed side, the Experis think know you So, goes, was think I it's driver. on well that pretty huge very the clear it we that results, a

say strong go guidance are for at to the And say us. good of I'd in for was color And I expect be that that sector certainly we're sector saw second us well. industries public a So, a think in verticals I continue during of was the XX:XX saw well. the for as as that look during work were we one as during do on those second pharmaceuticals deal the a we well. I'd strengthen UK We very and the saw U.S. financial continue us across, that well I'd strengthen driver the and look big as as quarter that expect the some well. quarter, we we continues strong Technology, show Jonas to little performance as we the quarter. well. mentioned say what the That's end as XX:XX quarter industry of for strong the strength to forward seeing would we to we as the as as that quarter we

Hans Hoffman

XX:XX Got it. Thank you.

Operator

you. Thank XX:XX

Our next from is America. of Bank question of [indiscernible]

is line Your open.

Unidentified Analyst

from just the war versus, been Hi, XX:XX industries, clients in exposure the outside impacted in there? is better the wanted you've terms thank what of guess the hearing terms manufacturing the being and the of I for kind to rest delta I'm you is to, your your I Thanks. what rest driving, ask of other my curious understand of of and dynamics one another kind auto think of you question. of impact just taking of Russia autos. just manufacturing Ukraine sort

Jonas Prising

XX:XX that automotive are the as into well a of as as suppliers Russia European in Well, it's seen and during Europe, Eastern a number is, the supplying in pandemic great case Ukraine, are the question. around specifically automotive issues sector. And we'd there already in

the are pandemic, of to now, going in of why course, look And and you across the a many of their all out sector time. a now crisis that's chains in made there long supply make car in European and this, a then difficult are of automotive manufacturers one just way the think proximity, with pandemic car impact used reason and that that access, be makes I that is Ukraine of not that XX:XX is chain crisis at but it's if along ended. more frankly, it's reason sense, believe the supply was the with any new still little course, hit globally their bit is the gets the incrementally by try So, Ukraine. Russia easy the to a about prices geographies, sectors, up U.S. more, right order various to the still car they like you're a and dealing working different during when industries And its war those and you hardest waiting they feeling more exposed it we close but other

Unidentified Analyst

on has margins of about there? it's also That's a see demand question Can going? XX:XX talk helpful. a staffing. permanent you recently, Thanks. the you into Thank really you. done really The nice where the And second dynamics business well And kind margins. provided do and tail

Jonas Prising

in of is to continues this that Well, business XX% of fastest it very the QX outlook was currency. our in up for strong XX:XX be perm into QX that has well. growing constant portfolio the one and And areas been as

to a also So, know XX:XX that basis. is been Solutions ManpowerGroup evolution which that also Manpower the reaching is increasingly it a shift a a very value that temporary course, the perm quarter, can the permanent us scale are of on very and the tight that and perm channel increasingly clients way that more as provider perception of demographically are in finding of basis provide but seen we excellent a So, is Talent really of strong Experis services we good hiring our reflection every of and recognizing really as as great a flexible a really talent in be they we terms on it's kinds good player before recruitment frankly well find as a for that to market XX:XX a demand, and are never all our now, any good we’re So, the really feel we of of challenged. about permanent do and opportunity the even a very and know And where tight of in we've labor and talent to you record well. great we or markets. past space business demographic pandemic the speaking, clients pent-up seen countries need globally our of numbers

Unidentified Analyst

you XX:XX Thank very Right. much.

Operator

you. XX:XX Thank

Sachs. question of Goldman George from Our next Tong is

Your open. line is

George Tong

XX:XX sector. of wanted Hi, understand of I the some outside thanks. Good supply that try dynamics to morning. to chain auto the occurring are

talk supply in issues our verticals whether across globally, about issues can supply Given affected, some broad-based the but of been other geographies? you Manpower’s business chain has in

Jonas Prising

question. across that And we George. as still working caused the based a way Manpower XX:XX pandemic through from industries Thanks, It's most QX QX. and the good and well. frankly, of the by business on geographies demand in in performance had also We're other our pent-up ahead looking all our

and the specific about So, demand just have I we temporary any both in think would something as of staffing can't Manpower we feel similar. experienced really as permanent for well good really as that discussed, sector

the broad-based positive for and into really, us we really look demand So, as think quarter. strong we second remains

George Tong

That's it. performance the UK The and there certain of exits arrangements, you UK? the overall the margin the Got on in XX:XX elaborate low in exit your can reflected helpful. strategy mix

Jack McGinnis

George, to. happy I'd Yeah, XX:XX be

a we're what a nature Really arrangements – markets at UK seen really provide is the being type services services the as in seeing I you've some are of we it's reflection well. in think more certain do us arrangement. of looking to what other the of and moved are, this

we at of MSP in would approach the for through well opposed that's to those work our arrangements, to be is contracts the so of responsible continues nature those services ship that a more where workers look providing we really similar what workers the them. a we're we manage as And to service those to workers, type like client, XX:XX of and the a providing client where with to clients. the type is, of for of as know seeing So, you more an substance we're that

seeing [ph] to type cost industry [ph] activity. And that [payrolling] a some from margin value there's tends in think of in clients. into some higher I our isn't payrolling in that's higher our XX:XX traditionally, lower there those of where really type away So, And and traditionally] [just services. really services, lot margin So, with those arrangements a margin what move you're lower it's the UK. type arrangements

into trend So, of of second to you'll we've underlying well. quite since little say, second quarter in through expect of And arrangements margins. and driving The is a see that would then sort last into doing the year. see half its we I'd way those entered continue really that bit business some strong work the

you the that more to the of see a second muted start impact year. So, half have would in

George Tong

Thank helpful. Very you. it. Got XX:XX

Operator

At you don't proceed. on Thank we XX:XX questions you. have time, queue. this may Speakers, any

Jonas Prising

look in week. good earnings our the call call much we our everyone XX:XX your summer. you you Have today, rest quarter speaking the for everyone. Excellent. Well, thank next forward on second and with very of during questions for Thanks, and our a interest earnings to

Operator

conference. for Thank you. today's That concludes you Thank XX:XX all joining.

disconnect. You may now

ManpowerGroup (MAN) 19 Apr 222022 Q1 Earnings call transcript