ManpowerGroup : November 2020 Investor Presentation

INVESTOR PRESENTATION | NOVEMBER 2020

Forward-Looking Statement

This presentation includes forward-looking statements which are subject to known and unknown risks and uncertainties. Actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements can be found in the Company's Annual Report on Form 10-K dated December 31, 2019, as well as the risks and uncertainties arising from the COVID-19 global pandemic and related governmental actions that are discussed in the Company's Periodic Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020, which information is incorporated herein by reference. Forward-looking statements can be identified by forward- looking words such as "expect," "anticipate," "intend," "plan," "may," "will," "believe," "seek," "estimate," and similar expressions.

Please note that ManpowerGroup's 2019 Form 10-K is available online at www.manpowergroup.comin the section titled "Investor Relations." This presentation includes constant currency growth rates, which are further explained in our 10-K.

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70 Years of Global Workforce Expertise

Global Workforce Solutions Company

Source	IT Staffing	Project Solutions
Professional Recruiting
P e r m a n e n t R e c r u i t i n g	Contingent Staffing
Develop		Skills Training
			Leader Development
Talent Assessment	Workforce Planning
	Career Mobility End-User Services
Manage	Managed Service Provider
Career Transition		Recruitment Process Outsourcing
Workforce Consulting

Providing meaningful work for over 600,000 people everyday

Connecting millions of job seekers with work every year, globally

Finding talent solutions for clients from small/medium to Fortune 100 companies

$	Revenues of		75		2,500		28K
$21 billion		Countries &		Offices		Employees
			Territories

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Globally Recognized Leader

One of the World's Most Ethical Companies for the eleventh year

Named to FTSE4Good Index for eleven consecutive years

Named to the DJSI - the gold standard for corporate sustainability leaders for eleven years

Platinum EcoVadis CSR rating at Global Level, with Gold or Silver ratings in 20 countries

One of America's Best Employers for Diversity in 2019

Named one of FORTUNE Magazine's Most Admired Companies for the seventeenth year

Earned RPO leader designation for six consecutive years and TAPFIN is recognized for the third year as MSP leader

Named global RPO leader for 10 consecutive years. TAPFIN is recognized as MSP leader for the 7th

consecutive year and is the only company to receive both Star Performer and Global Leader designation.

Ranked 141 on the 2019 FORTUNE 500

Ranked 1,330 on the 2019 Global 2000

Received a perfect score on the Corporate Equality Index for the fifth consecutive year

Recognized by 2020 Women on Boards campaign

as a Winning "W" Company since 2011

Named one of the Best Places to Work for disability inclusion on Disability Equality Index for the fifth consecutive year

Corporate

Responsibility

Magazine

One of America's Top Corporations for Women's Business Enterprises for ten consecutive years

One of Corporate Responsibility magazine's 100 Best Corporate Citizens since 2014

Goldman Sachs JUST ETF Index & Impact Shares NAACP Minority Empowerment ETF

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Forces Driving Client Priorities

This time of	Individual	Customer
Choice	Sophistication
CERTAIN
UNCERTAINTY
and change
REQUIRES new
ways of getting	Technological	Demographics /
work done	Talent
Revolutions
	Management

Our

INNOVATIVE WORKFORCE SOLUTIONS

provide flexibility and agility to our clients as they face these challenges

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Our Vision, Strategy and Values

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Powering the Future of Work - Enabled by Technology

SEARCH

Data Analytics

ASSESS

Volume Screening

& Assessment

ENGAGE

Candidate Relationship

Management

PERSONALIZE

Candidate experience

MANAGE

Candidate Experience data

MEASURE

Analytics & Reporting tools

Enhanced digital experience through

Enhanced digital experience through ManpowerGroup Digital Ecosystem.

ManpowerGroup Digital Ecosystem

DATA ANALYTICS

NEXT GEN APPLICATION

DATA CENTER CONSOLIDATION FOCUS ON CYBERSECURITY

Enabling employees to efficiently deliver a personalized candidate experience and valuable insights for clients

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PowerSuite

ManpowerGroup's integrated HR tech stack provides competitive advantage with the rapid deployment of best in class technology together with deep and broad workforce expertise.

Predict: Help people understand their potential and anticipate an organization's workforce needs using data, analytics and AI

Develop: Engage and develop people through personalized career development

Connect: Superior

candidate experience to attract and source the diverse talent our clients need

Manage: Manage, engage and motivate people while optimizing HR processes

•	Optimized HR processes	•	Reduced risk
•	Increased efficiency	•	Accelerated speed
•	Decreased costs	• Improved client and candidate experience

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MyPath

MyPath is building the talent pool of the future - providing people with career progression, developing skills for growth sectors, increasing earning potential through fast-track learning, on the job training and certification.

Rapid expansion in 2020

France	Canada	Spain
USA	Italy	Netherlands
India	Norway	Belgium
Mexico	UK	Japan

• More SKILLED talent pool for clients
• Higher UTILIZATION of talent
• Increased REASSIGNMENT rates
• Better MATCH, more satisfied clients and candidates
• Greater PRODUCTIVITY of associates and talent agents

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Talent Solutions

Talent Solutions combines three of our current global offerings to leverage our deep expertise in RPO, Tapfin MSP and Right Management. We intend to create higher value and new solutions addressing our clients' complex global workforce needs.

.

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Strong and Connected Brands

We are a world leader in innovative workforce solutions and services, helping clients win through our family of brands and offerings.

65% of GP

Leverage our trusted brand,

while driving relentless efficiency / productivity

• Targeted sales
• Permanent recruitment growth
• Multi-channeldelivery
• Centers of recruiting excellence

35% of GP

Drive higher growth and gross margin while investing more in changing our business mix

•	Core growth in Experis IT	• RPO, Tapfin MSP, Right Management
•	Innovative talent resourcing	• Expert workforce solutions that deliver
•	Permanent recruitment growth	performance
•	Delivery excellence	• Tailored solutions to improve the
		effectiveness of organizations and
		individuals

Digitally-Fueled Transformation

Sustainability, Mission and Values

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Shift Toward Higher Value Solutions and Services

2009 Gross Profit Mix

Right Management

	Other		15%
			4%
			2009 Total
				Gross Profit
			14% As Adjusted
				$2.6B*	66%
Professional
Services
					Manpower

* Amount calculated using 2019 exchange rates

2019 Gross Profit Mix

			Talent Solutions $0.5B
			13%
22%	2019 Total
Gross Profit
20%			$3.4B**
			65%
	Experis $0.7B				Manpower $2.2B

• The 2019 pie chart reflects the restated brand composition announced on the January 31, 2020 earnings call

Strong growth in our higher value solutions and services.

Market-leading Recruitment Processing Outsourcing and Managed Service Provider offerings. Proservia end-user services offering expanding across Europe with strong growth in France. Permanent recruitment represents 15.9% of total Gross Profit in 2019.

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Strength Through Geographic Diversification

2019 Segment Revenues

APME $2.6B

Right Management $0.2B

13% 1%	Americas $4.2B

2019 Operating Unit Profit(1)

APME $96.7M

Right Management $34.6M

4%	Americas $191.4M

20%

11%

22%

Total

22% $20.9B

44%

Southern Europe $9.2B

Northern Europe $4.7B

10% Total $868.5M

53%

Southern Europe $460.0M

Northern Europe $85.8M

1. Excludes restructuring costs, the net impact of the gain from our Greater China IPO and the impact of goodwill impairment and other charges as detailed in our earnings release and further explained on our web site. As reported, OUP was as follows: $860.6M, Americas $186.3M (22%), Southern Europe $454.6M (53%), Northern Europe $67.1M (8%), APME $122.6M (14%), and Right Management $30.0M (3%).

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Secular Trends Providing More Opportunity Globally

Penetration Rates

5.1%

Peak*

Most Recent

3.3%

2.9%

2.5%	2.4%	2.4%

2.1%

1.8% 1.8%

1.6%

Global Average 1.6%

0.9%

UK	Netherlands	France	Belgium	Japan	Germany	US	Italy	Spain
(2018 penetration	(2018 penetration	(2018 penetration	(2018 penetration	(2018 penetration	(2018 penetration			(2018 penetration
rate was 3.4%).	rate was 3.3%).	rate was 2.9%).	rate was 2.5%).	rate was 2.0%).	rate was 2.4%).			rate was 0.8%).

Source:

World Employment Confederation/CIETT and ManpowerGroup Estimates 2020 - 2014 Italy: Associazione Nazionale delle Agenzie per il Lavaro/World Employment Confederation US: US Department of Labor

*Previous Peak: For countries not at peak, previous peak was generally 2017/2018.

Favorable workforce trends are expected to drive penetration rates beyond previous peak levels

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Emerging Market Investments Delivering Strong Returns

Emerging Markets	Emerging Markets
Revenue	Billable Hours

Represents 14% of company revenues

and 42% of billable hours.

86%	2019	14%		2019	42%
58%

• As the emerging markets population expands and labor rates equalize, we expect to see significant revenue and profitability growth.
• Leading market position with 270 offices across 22 emerging markets generating revenues of $2.9B in 2019.

The following countries contribute to total emerging markets: Argentina, Brazil, Chile, Colombia, Mexico, Peru, Turkey, Croatia, Czech Republic, Hungary, Morocco, Poland, Romania, Russia, South Africa, China, Taiwan, Hong Kong, India, Korea, Malaysia, Middle East, Philippines, Singapore, Thailand, and Vietnam.

Emerging Markets include revenues from ManpowerGroup China Limited which was deconsolidated in July 2019.

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FINANCIAL UPDATE

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Financial Summary

Q3 Financial Highlights(1)

13%	Revenue $4.6B
14% CC
20 bps	Gross Margin 15.8%
37%	Operating Profit $117M
38% CC
100 bps	OP Margin 2.6%
38%	EPS $1.20
39% CC

1. Excludes the impact of restructuring charges of $49.9M ($42.1M net of tax), the $5.8M ($5.2M net of tax) loss from dispositions of subsidiaries and a discrete tax item of $12M in Q3 2020; while Q3 2019 excludes the impact of the gain of $30M from our Greater China IPO. As reported, Operating Profit was $62M (-72%;-72% CC), Operating Margin was 1.3% (-280 bps), and EPS was $0.18 (-93%;-93% CC).

Throughout this presentation, the difference between reported variances and Constant Currency (CC) variances represents the impact of changes in currency on our financial results. Constant Currency is further explained in the Form 10-K on our web site.

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Financial Summary

Q3 Revenue Growth YOY

% of Segment	Average Daily
Revenue	Revenue Growth - CC
	(1)

(1) On an organic basis, revenue and ADR for the US decreased 15% and 16%, respectively.

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Historical Trends

Revenue

										% = Variance in constant currency
	30												30.0%
	-21%	+19%	+12%	-1%	-2%	+4%	+7%	+4%	+6%	+2%	-1%
• Historical Trends
BillionsinDollars	25												20.0%	CC%inGrowthYOY
20												10.0%
	15												0.0%
	10												-10.0%
	5												-20.0%
	16.0	18.9	22.0	20.7	20.3	20.8	19.3	19.7	21.0	22.0	20.9
	0	-30.0%
	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019

EBITA As Adjusted(*)

1,000	-76%	+146%	+46%	-9%	+26%	+21%	+13%	+9%	% = Variance in constant currency	4.5%
	+7%	+0%	-10%
800												3.6%

inDollarsMillions	200											0.9%	EBITAMargin
	600												2.7%
	400												1.8%
	154	379	585	507	640	758	742	782	858	871	750
	0												0.0%
	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019

EBITA% 1.0% 2.0% 2.7% 2.4% 3.1% 3.6% 3.8% 4.0% 4.1% 4.0% 3.6%

• EBITA As Adjusted for items shown on the Financial Sheet on our web site. As reported, EBITA was $675M in 2019, $832M in 2018, $824M in 2017, $722M in 2015, $546M in 2013, $448M in 2012, $563M in 2011, ($83M) in 2010 and $64M in 2009; and EBITA% was 3.2%, 3.8%, 3.9%, 3.7%, 2.7%, 2.2%, 2.6%, -0.4% and 0.4%, respectively.

Pre Covid-19 Trends

• After 5 years of revenue growth, 2019 experienced a slight decline in a challenging environment.
• We remain committed to seizing growth opportunities aligned with our strategy, achieving good leverage on that growth and building on our leading global workforce solutions position.

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Balance Sheet

September 30, 2020 ($ in millions)

Assets 8,949

Cash	Accounts Receivable	Other Assets

1,588	4,536		2,825
Liabilities & Equity 8,949
	Other Liabilities	Total Debt	Equity

5,256

1,088

2,605

Strong balance sheet with good liquidity to support future growth

• Net cash of $500M
• Total debt-to-total capitalization at 29%
• Debt-to-EBITDAAs Adjusted* of 2.2x
• Untapped $600M revolver

Focused on reducing capital deployed

• Cost of accounts receivable included in all client profitability analyses and management incentive calculations

* EBITDA As Adjusted amounts exclude the impact of global restructuring costs and other certain items further explained on our web site.

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Free Cash Flow

($ in millions)

800

700

600

500

400

300

200

100

0

Benefits of CICE sales + new

France subsidies in same year

	No sale of
	CICE
Increased	receivable
in France
working capital
needs due to
growth in
business

379	124	4	259	352	255	459	543	346	418	762	685

2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	Sep YTD
											2020

Strong cash flow with counter-cyclical features provides liquidity entering into recessionary cycles.

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Returning Cash to Shareholders

($ in millions, except share and per share amounts)

Dividends

Share Repurchases

• • Strong dividend performance. Current yield of 2.9%.**
  • Dividend regularly increased during periods of earnings growth.
  • Dividend maintained during 2008/2009 recession.
• Annual dividend payout per share divided by earnings per share-diluted, as adjusted for items shown on the Financial Sheet on our web site. 2020 payout ratio is based on Bloomberg consensus as of November 2020.
• Yield based on November 5, 2020 price of $75.44

• 0.9M shares repurchased in 2020; 24.1M shares (31% of outstanding) repurchased from 2015.

*As of September 30, 2020

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Return on Invested Capital* (ROIC)

22%

20%

18%

16%

14%

12%

10%			Estimated WACC
8%
6%
4%
2%
5.7%	6.1%	10.8%	9.4%	13.5%	15.7%	16.0%	16.7%	20.8%	19.4%	16.6%
0%
2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019

• Capital efficiency metric, currently measured by ROIC, has been included in the executive team and global management annual incentive plans for nearly 20 years.
• Rigorous cash management with a focus on DSO reduction.
• Primary driver of ROIC improvement is operating profit after tax growth.

*Defined here as operating profit after tax divided by the average monthly total of net debt (total debt less cash) and equity for the year, as adjusted for items shown on the Financial Sheet on our web site.

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Financial Targets

Revenue Market

Growth

EBITA 4.5% - 5.0%

Margin

ROIC15%

• Exceed or maintain key market revenue growth
• Disciplined profitable growth
• Focus on improvement in client mix
• Assumes stable economic environment and consistent revenue growth and pricing
• Growth driven by:
• • gross profit improvement
  • continued steady efficiency/productivity enhancements
• Disciplined capital allocation to achieve a return well above cost of capital
• Rigorous cash management with a focus on DSO
• EBITA margin growth enabled
• Capital efficiency metric in Executive Team and Global Management incentive plans for 20 years

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ManpowerGroup Strengths

Globally Recognized Industry Leader

Positive Secular Trends

Strong Assets, Connected Brands

and World-Leading Offerings

Leading Position in Emerging Markets

Experienced Management

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