ManpowerGroup 2013 Annual Report Download - page 14

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ManpowerGroup 2013 Annual Report Letter to Investors
12
Operating in a time of certain uncertainty requires agility, and in 2013 we increased
ours. There’s no doubt we have more work to do, but the strides we made have
built confidence across our organization that no matter what comes our way, we’ll
make faster turns and gain the competitive advantage.
OUR 2013 PERFORMANCE
As planned, 2013 was a year of simplification and recalibration. Although it was
something of a nascent concept little more than a year ago, we were solid in our
thinking and steadily gained momentum. While we have always prided ourselves on
our agility, last year we doubled-down, accelerating our efforts to simplify our
organization, programs, delivery and technology—all while maintaining focus on
what’s valued most by our clients. We made difficult decisions to shed what, over
years, had come to weigh us down or wouldn’t be sustainable in the future.
However, what remained sacrosanct was our culture. Our mission to connect people
to meaningful work and help our clients win has remained constant. Proof that we
kept our culture intact can be seen in the results of our annual survey, which showed
our colleagues were equally or more engaged than the previous year. Just as
impressive, we saw a dramatic increase in engagement among our first- and second-
line managers; clearly a sign that all levels of our leadership are taking greater
ownership for driving the success of ManpowerGroup. Simplifying operations and
intensifying our client focus energized our organization and gave us the momentum
necessary to improve financial results, though we still have more to do.
Our revenue remained challenged, finishing the year down 2% in constant currency,
compared to 2012. Our gross margin, aided by the French payroll tax credit CICE,
was flat for the year, while our expenses were managed very well. As a result, we
increased operating profit by 24% and net earnings by 46% in constant currency.
Our earnings per share grew 47%, even after restructuring charges, while our cash
flow improved by $90 million.
As I’ve written in the past, we are pressing ahead in building our business mix and
gross profit margins. We continue to drive value through our strong and connected
brands, built on insight gained from hundreds of thousands of client conversations
and a deep understanding of the macroeconomic forces that shape our world. The
result is a suite of innovative workforce solutions that have never been more relevant
or necessary, as seen in the notable progress made by our family of brands in 2013.
Overall, our teams worldwide delivered strong performance in 2013, with several
operations contributing substantial results. For instance, the Netherlands success-
fully implemented our new Manpower delivery model, which was well-received by
clients, candidates and colleagues alike. The team strategically consolidated branches,
reduced costs by $9 million annually and increased website traffic to 2.6 million visits
per year. Clearly, Manpower Netherlands is setting the standard for the ongoing
evolution of how we connect companies and talent.