ManpowerGroup

Results of Operations

(In millions, except per share data)

Three Months Ended December 31

% Variance

Amount

Constant

2011

2010

Reported

Currency

(Unaudited)

Revenues from services (a)

$ 5,484.0

$ 5,209.6

5.3%

5.8%

Cost of services

4,548.8

4,303.9

5.7%

6.3%

 Gross profit

935.2

905.7

3.3%

3.6%

Selling and administrative expenses,
  excluding impairment charges

805.4

819.5

-1.7%

-1.4%

Goodwill and intangible asset impairment charges

-

428.8

N/A

N/A

Selling and administrative expenses

805.4

1,248.3

-35.5%

-35.3%

 Operating profit (loss)

129.8

(342.6)

N/A

N/A

Interest and other expenses

10.4

10.0

4.0%

 Earnings (loss) before income taxes

119.4

(352.6)

N/A

N/A

Provision for income taxes

55.8

(2.2)

N/A

 Net earnings (loss)

$      63.6

$  (350.4)

N/A

N/A

Net earnings (loss) per share - basic

$      0.79

$    (4.29)

N/A

Net earnings (loss) per share - diluted

$      0.78

$    (4.29)

N/A

N/A

Weighted average shares - basic

80.8

81.6

-1.0%

Weighted average shares - diluted

81.4

81.6

-0.3%

(a)  Revenues from services include fees received from our franchise offices of $6.4 million for the three months ended December 31, 2011 and 2010. These fees are primarily based on revenues generated by the franchise offices, which were $257.2 million and $263.5 million for the three months ended December 31, 2011 and 2010, respectively.

ManpowerGroup

Operating Unit Results

(In millions)

Three Months Ended December 31

% Variance

Amount

Constant

2011

2010

Reported

Currency

(Unaudited)

Revenues from Services: (a)

 Americas:

     United States (b)

$    765.9

$    777.1

-1.4%

-1.4%

     Other Americas

389.8

347.8

12.1%

18.3%

1,155.7

1,124.9

2.7%

4.7%

 Southern Europe:

     France

1,511.0

1,433.6

5.4%

6.3%

     Italy

305.3

294.1

3.8%

4.6%

     Other Southern Europe

196.3

189.0

3.9%

6.5%

2,012.6

1,916.7

5.0%

6.1%

 Northern Europe

1,540.9

1,492.7

3.2%

3.8%

 APME

695.0

588.3

18.2%

14.5%

 Right Management

79.8

87.0

-8.2%

-8.6%

$ 5,484.0

$ 5,209.6

5.3%

5.8%

Operating Unit Profit (Loss): (a)

 Americas:

     United States

$      26.1

$      14.1

83.8%

83.8%

     Other Americas

12.1

10.0

22.6%

30.9%

38.2

24.1

58.5%

61.9%

 Southern Europe:

     France

20.5

12.0

71.0%

72.4%

     Italy

19.7

15.8

24.3%

25.4%

     Other Southern Europe

2.9

2.8

3.6%

8.8%

43.1

30.6

40.7%

42.3%

 Northern Europe

51.8

63.0

-17.7%

-17.8%

 APME

21.7

9.6

121.3%

115.2%

 Right Management

(5.6)

(16.8)

N/A

N/A

149.2

110.5

Corporate expenses

(30.7)

(30.8)

Goodwill and intangible asset impairment charges

-

(428.8)

Intangible asset amortization expense

(10.0)

(11.2)

Reclassification of French business tax

21.3

17.7

   Operating profit (loss)

129.8

(342.6)

N/A

N/A

Interest and other expenses (c)

(10.4)

(10.0)

   Earnings (loss) before income taxes

$    119.4

$  (352.6)

(a)  Effective January 1, 2011, we created a new organizational structure in Europe in order to elevate our service quality throughout Europe, Middle East and Africa. Other Southern Europe and Northern Europe, previously reported in Other EMEA, are now separate reportable segments. France, Italy, and Other Southern Europe are aggregated into our Southern Europe reportable segment. All previously reported results have been restated to conform to the current year presentation. Additionally, we changed the name of our Asia Pacific reportable segment to APME; the results of this reportable segment have not been restated as only the name has changed.

(b)  In the United States, revenues from services include fees received from our franchise offices of $3.8 million for the three months ended December 31, 2011 and 2010. These fees are primarily based on revenues generated by the franchise offices, which were $167.5 million and $165.0 million for the three months ended December 31, 2011 and 2010, respectively.

(c)  The components of interest and other expenses were:

2011

2010

       Interest expense

$      10.3

$      10.1

       Interest income

(2.3)

(2.0)

       Foreign exchange losses

0.8

0.8

       Miscellaneous expenses, net

1.6

1.1

$      10.4

$      10.0

ManpowerGroup

Results of Operations

(In millions, except per share data)

Year Ended December 31

% Variance

Amount

Constant

2011

2010

Reported

Currency

(Unaudited)

Revenues from services (a)

$ 22,006.0

$ 18,866.5

16.6%

11.6%

Cost of services

18,299.7

15,621.1

17.1%

12.0%

 Gross profit

3,706.3

3,245.4

14.2%

9.4%

Selling and administrative expenses,
  excluding impairment charges

3,182.1

2,938.6

8.3%

4.1%

Goodwill and intangible asset impairment charges

-

428.8

N/A

N/A

Selling and administrative expenses

3,182.1

3,367.4

-5.5%

-9.2%

 Operating profit (loss)

524.2

(122.0)

N/A

N/A

Interest and other expenses

44.3

43.2

2.6%

 Earnings (loss) before income taxes

479.9

(165.2)

N/A

N/A

Provision for income taxes

228.3

98.4

132.1%

 Net earnings (loss)

$      251.6

$    (263.6)

N/A

N/A

Net earnings (loss) per share - basic

$        3.08

$      (3.26)

N/A

Net earnings (loss) per share - diluted

$        3.04

$      (3.26)

N/A

N/A

Weighted average shares - basic

81.6

81.0

0.8%

Weighted average shares - diluted

82.8

81.0

2.3%

(a)  Revenues from services include fees received from our franchise offices of $25.2 million and $23.6 million for the years ended December 31, 2011 and 2010, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $1,075.2 million and $968.0 million for the years ended December 31, 2011 and 2010, respectively.

ManpowerGroup

Operating Unit Results

(In millions)

Year Ended December 31

% Variance

Amount

Constant

2011

2010

Reported

Currency

(Unaudited)

Revenues from Services: (a)

 Americas:

     United States (b)

$   3,137.3

$   2,783.4

12.7%

12.7%

     Other Americas

1,512.1

1,265.5

19.5%

18.4%

4,649.4

4,048.9

14.8%

14.5%

 Southern Europe:

     France

6,179.1

5,208.6

18.6%

12.6%

     Italy

1,255.8

1,044.2

20.3%

14.2%

     Other Southern Europe

776.9

698.9

11.2%

6.8%

8,211.8

6,951.7

18.1%

12.3%

 Northern Europe

6,159.4

5,344.1

15.3%

9.3%

 APME

2,661.7

2,147.2

24.0%

14.2%

 Right Management

323.7

374.6

-13.6%

-16.6%

$ 22,006.0

$ 18,866.5

16.6%

11.6%

Operating Unit Profit (Loss): (a)

 Americas:

     United States

$        94.1

$        42.8

119.8%

119.8%

     Other Americas

47.8

36.5

31.2%

30.7%

141.9

79.3

79.0%

78.8%

 Southern Europe:

     France

85.2

47.1

80.7%

69.4%

     Italy

74.1

47.5

55.9%

47.2%

     Other Southern Europe

10.8

7.2

51.5%

47.5%

170.1

101.8

67.1%

57.5%

 Northern Europe

212.6

150.2

41.5%

32.8%

 APME

78.8

47.2

66.7%

54.8%

 Right Management

(1.4)

3.5

N/A

N/A

602.0

382.0

Corporate expenses

(123.1)

(101.2)

Goodwill and intangible asset impairment charges

-

(428.8)

Intangible asset amortization expense

(38.9)

(39.3)

Reclassification of French business tax

84.2

65.3

   Operating profit (loss)

524.2

(122.0)

N/A

N/A

Interest and other expenses (c)

(44.3)

(43.2)

   Earnings (loss) before income taxes

$      479.9

$    (165.2)

(a)  Effective January 1, 2011, we created a new organizational structure in Europe in order to elevate our service quality throughout Europe, Middle East and Africa. Other Southern Europe and Northern Europe, previously reported in Other EMEA, are now separate reportable segments. France, Italy, and Other Southern Europe are aggregated into our Southern Europe reportable segment. All previously reported results have been restated to conform to the current year presentation. Additionally, we changed the name of our Asia Pacific reportable segment to APME; the results of this reportable segment have not been restated as only the name has changed.

(b)  In the United States, revenues from services include fees received from our franchise offices of $13.6 million and $13.7 million for the years ended December 31, 2011 and 2010.  These fees are primarily based on revenues generated by the franchise offices, which were $646.1 million and $622.0 million for the years ended December 31, 2011 and 2010, respectively.

(c)  The components of interest and other expenses were:

2011

2010

       Interest expense

$        42.8

$        43.7

       Interest income

(7.3)

(6.2)

       Foreign exchange losses

2.8

3.3

       Miscellaneous expenses, net

6.0

2.4

$        44.3

$        43.2

ManpowerGroup

Consolidated Balance Sheets

(In millions)

Dec. 31

Dec. 31

2011

2010

(Unaudited)

ASSETS

Current assets:

 Cash and cash equivalents

$    580.5

$    772.6

 Accounts receivable, net

4,181.3

3,844.1

 Prepaid expenses and other assets

176.3

197.6

 Future income tax benefits

52.4

59.7

     Total current assets

4,990.5

4,874.0

Other assets:

 Goodwill and other intangible assets, net

1,339.6

1,330.3

 Other assets

395.1

355.1

     Total other assets

1,734.7

1,685.4

Property and equipment:

 Land, buildings, leasehold improvements and equipment

685.6

688.8

 Less:  accumulated depreciation and amortization

511.1

518.5

   Net property and equipment

174.5

170.3

       Total assets

$ 6,899.7

$ 6,729.7

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

 Accounts payable

$ 1,370.6

$ 1,313.9

 Employee compensation payable

221.9

240.2

 Accrued liabilities

520.8

547.4

 Accrued payroll taxes and insurance

712.4

677.7

 Value added taxes payable

502.3

482.2

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

434.2

28.7

     Total current liabilities

3,762.2

3,290.1

Other liabilities:

 Long-term debt

266.0

669.3

 Other long-term liabilities

388.1

373.1

     Total other liabilities

654.1

1,042.4

Shareholders' equity:

 Common stock

1.1

1.1

 Capital in excess of par value

2,839.9

2,781.7

 Retained earnings

971.7

785.2

 Accumulated other comprehensive income

35.3

87.0

 Treasury stock, at cost

(1,364.6)

(1,257.8)

     Total shareholders' equity

2,483.4

2,397.2

       Total liabilities and shareholders' equity

$ 6,899.7

$ 6,729.7

ManpowerGroup

Consolidated Statements of Cash Flows

(In millions)

Year Ended

December 31

2011

2010

(Unaudited)

Cash Flows from Operating Activities:

 Net earnings (loss)

$ 251.6

$ (263.6)

 Adjustments to reconcile net earnings (loss) to net

   cash used in operating activities:

     Depreciation and amortization

104.4

110.1

     Non-cash goodwill and intangible asset impairment charges

-

428.8

     Deferred income taxes

24.8

(68.5)

     Provision for doubtful accounts

25.9

28.9

     Share-based compensation

31.4

24.1

     Excess tax benefit on exercise of share-based awards

(1.3)

(1.3)

 Changes in operating assets and liabilities, excluding

   the impact of acquisitions:

     Accounts receivable

(417.1)

(708.1)

     Other assets

(48.2)

9.9

     Other liabilities

97.7

621.8

           Cash provided by operating activities

69.2

182.1

Cash Flows from Investing Activities:

 Capital expenditures

(64.9)

(58.5)

 Acquisitions of businesses, net of cash acquired

(49.0)

(270.0)

 Proceeds from sales of property and equipment

4.4

4.9

           Cash used in investing activities

(109.5)

(323.6)

Cash Flows from Financing Activities:

 Net change in short-term borrowings

15.6

(15.6)

 Proceeds from long-term debt

0.8

1.8

 Repayments of long-term debt

(1.1)

(1.1)

 Proceeds from share-based awards

29.5

27.1

 Excess tax benefit on exercise of share-based awards

1.3

1.3

 Repurchases of common stock

(104.5)

(34.8)

 Dividends paid

(65.1)

(60.8)

           Cash used in financing activities

(123.5)

(82.1)

Effect of exchange rate changes on cash

(28.3)

(18.4)

Change in cash and cash equivalents

(192.1)

(242.0)

Cash and cash equivalents, beginning of period

772.6

1,014.6

Cash and cash equivalents, end of period

$ 580.5

$  772.6