Q2 2023 ManpowerGroup Inc Earnings Call

Speaker 1: Four.

Okay.

Speaker 2: Welcome to manpower group's second quarter earnings results conference call. You'll be put into listen only mode until the question and answer time begins. This call is being recorded. If you care to drop off now, please do so. I would like to turn the call over to manpower group's Chairman and CEO , joonus bcin. Sir, you may begin.

Welcome to manpower group second quarter earnings results Conference call.

You'll be put into listen only mode until the question and answer time begins this call is being recorded if you care to drop off now please do so.

Now like to turn the call over to manpower groups, Chairman and CEO Jonas Prising, Sir you may begin.

Speaker 3: Welcome to the second quarter conference call for 2020 -three.

Welcome to the second quarter conference call for 2023.

Speaker 3: A Chief Financial Officer, Jack mcinnis, is with me today for your comedience. We've included our prepared remarks within the Investor Relations section of our website at manpag group com.

Our Chief Financial Officer, Jack Mcginnis is with me today are you.

Convenience, we have included our prepared remarks within the Investor Relations section of our website at manpower group Dotcom I will start by going through some of the highlights of the quarter and Jack will go through the second quarter results and guidance for the third quarter of 2023.

Speaker 3: I will start by going through some of the highlights of the quarter. Jack will go through the second quarter: results and guidance for the third quarter of 2020 -three.

Speaker 3: I will then share some concluding thoughts before we start our qa session, and Jack will not cover the safe harbor language.

I will then share some concluding thoughts before we start our Q&A session. Jack will now cover the Safe Harbor language.

Speaker 4: Good morning everyone. This conference call includes forward-looking statements, including statements concerning economic and geopolitical uncertainty, which are subject to known and unknown risks and uncertainties.

Good morning, everyone. This conference call includes forward looking statements, including statements concerning economic and geopolitical uncertainty, which are subject to known and unknown risks and uncertainties. These statements are based on management's current expectations or beliefs actual results might differ materially from those projected in the forward looking statements.

Speaker 4: These statements are based on management's current expectations or beliefs. Actual results might differ materially from those projected in the forward-looking statements.

Speaker 4: We assume no obligation to update or revise any forward-looking statements.

Assume no obligation to update or revise any forward looking statements slide.

Speaker 4: Slide two of our earnings release presentation further identifies forward-looking statements made in this call and factors that may cause our actual results to differ materially in information regarding reconciliation of non-GAAP measures.

Slide two of our earnings release presentation further identify as forward looking statements made on this call and factors that may cause our actual results to differ materially and information regarding reconciliation of non-GAAP measures.

Speaker 5: Thank Jack.

Thanks Jack.

Speaker 3: Just back from trips to Europe , which included devotetech one of the world's largest technology and start-up events, in Paris, where we were a key partner for the seventh year, showcasing our innovation and workforce expertise in our new human age lab.

Just back from trips to Europe, which included Vivat Tech one of the world's largest technology and startup events in Paris, where we were a key partner for the seventh year showcasing our innovation and workforce expertise in our new human age lab.

Speaker 3: The advancement of generary AI and the impact on skills and jobs was a hard topic.

The advancement of generated AI and the impact on skills and jobs was a hot topic.

Speaker 3: henor woalls and media interviews led me to reflect that we first discuss the impact of automation on jobs almost 10 years ago at the world economic forum, and our data and experience tell us, then as now, that human capital augmented by tech is what will accelerate progress. Companies that automate and digitize the most see the biggest productivity improvements and create the most jobs.

Hunter roles in media interviews led me to reflect that we first discussed the impact of automation on jobs, almost 10 years ago at the World Economic Forum and our data and experience tell US then as now that human capital augmented by tax is what will accelerate progress companies that automate and digitize the.

Most see the biggest productivity improvements and create the most jobs.

Speaker 3: And the biggest challenge WOn't be the elimination of jobs. It will be the need for new work-force skill sets at the speed and scale never seen before.

And the biggest challenge won't be the elimination of jobs. It will be the need for new work for skill sets at the speed and scale never seen before.

Speaker 3: Reflecting on global labor market and the economic environment although we continuue to see labor markets demonstrate resilience around the world with continued low unemployment in many markets.

Reflecting on global labor markets and the economic environment, Although we continue to see labor markets demonstrate resilience around the world with continued low unemployment in many markets.

Speaker 3: Some signs of broader economic pressures are emerging.

Some signs of broader economic pressures are emerging.

Speaker 3: As I mentioned last quarter, we're seeing slower hiring trends across the Board, with particular impacts in certain sectors. In the U's and Europe , large tech enterprise companies have continued to substantially reduce headcounts, a trend that began in late 2022. We're also tracking softer commercial staffing demand due to decrease production in some manufacturing ACV.

As I mentioned last quarter, we're seeing slower hiring trends across the board with particular impacts in certain sectors in the U S and Europe large tech enterprise companies have continued to substantially reduce head counts a trend that began in late 2022.

We're also tracking softer commercial staffing demand due to decreased production and some manufacturing activities.

Speaker 3: Our most recent macro group employment outlook survey of four thousand employers in 30 -plus countries, conducted in the spring front companies plan more measured hiring for Q3 as they navigate a range of local and macro challenges, from supply constraints to uneven consumer confidence and shifting purchasing priorities amid continued high inflation.

Our most recent manpower group employment outlook survey of 40000 employers in 30 plus countries conducted in the spring fund companies plan more measured hiring for Q3 as they navigate a range of local and macro challenges from supply constraints to uneven consumer confidence and shifting purchasing.

TS amid continued high inflation.

Speaker 3: Many labor markets and other economic data points often lag the cautious employe trends that impact our industry first.

Many labor markets and other economic data points, often lag the cautious employer trends that impact our industry.

Speaker 3: And in this environment we saw mixed demand for staffing and weakened demand for permanent recruitment services in the? U's and Europe . At the same time, we continuue to see growth in LatAm and apme, with ongoing demand for our services.

And in this environment, we saw mixed demand for staffing and weakened demand for permanent recruitment services in the U S and Europe.

At the same time, we continue to see growth in Latam and APAC with ongoing demand for our services.

Speaker 4: Moving on to our financial results, in the second quarter, revenue was $4.9 billion down 3% year-over-year, in constant currency.

Moving onto our financial results in the second quarter revenue was $4 9 billion down 3% year over year in constant currency.

Speaker 3: A reported EBITA for the quarter was $116 million.

Our reported EBITDA for the quarter was $116 million.

Speaker 4: Adjusting for restructuring and Argentina hyper inflation in reforeign exchange charges. Ebitda was $131 million, representing a 31% decrease in constant currency year-over-year.

Justin for restructuring in Argentina, Hyperinflationary foreign exchange charges.

<unk> was $131 million.

Representing a 31% decrease in constant currency year over year.

Speaker 3: Reported abbita margin was 2% and adjusted abbita margin was 3%.

Reported EBITA margin was two 4% and adjusted EBITA margin was two 7%.

Speaker 4: Earnings per diluted share was $1 29 cents on a reported basis and $1 58 cents on an adjusted basis.

Earnings per diluted share was $1 29 on a reported basis and $1 58 on an adjusted basis.

Speaker 4: Adjusted earnings per share were down 31% year-over-year in constant currency.

Adjusted earnings per share were down 31% year over year in constant currency.

Speaker 4: Although uncertainty may persist from my conversations with clients and our teams in many countries.

Although uncertainty may persist for my conversations with clients and our teams in many countries. It is clear that people with specific skill sets continued to be in demand and that human capital is and will continue to be a key driver of corporate success with employers focused on holding onto the talent base.

Speaker 4: It is clear that people with specific skill- TS, continue to be in demand.

Speaker 3: And the humanman capital is, and will continue to be, a key driver of corporate success, with employers focused on holding on to the talent they struggglle to recruit in the last couple of years.

Struggled to recruit in the last couple of years.

Speaker 4: The progress we have made to meet this demand.

The progress we have made to meet this demand by diversifying our business across our brands offerings and geographies will continue to serve as well.

Speaker 4: By diversifying our business across our brands, offerings and geographies will continue to serve us well. Our progress in creating talented scale through our my path and experience Academy initiatives provide competitive strength as we create the scare skills our clients are looking for in the talent they need.

<unk> and creating talent at scale through our my path and experience Academy initiatives provide competitive strength as we create the scare skills. Our clients are looking for in the talent they need.

Speaker 3: I'll now turn it over to Jack to take you through the results.

I'll now turn it over to Jack to take you through the results.

Speaker 5: Thanks Jonas. Revenues in the second quarter came in at the midpoint of our constant currency guidance range.

Thanks, Jonas revenues in the second quarter came in at the midpoint of our constant currency guidance range gross.

Speaker 5: Gross profit margin came in just below our guidance range due to lower permanent recruitment activity.

Gross profit margin came in just below our guidance range due to lower permanent recruitment activity.

Speaker 5: As adjusted EBITDA was 131 million, representing a 31% decrease in constant currency compared to the prior year period.

As adjusted EBITDA was $131 million, representing a 31% decrease in constant currency compared to the prior year period.

Speaker 5: As adjusted EBITDA margin was 3% and came in at the low end of our guidance range, representing 110 basis points of decline year-over-year.

As adjusted EBIT margin was two 7% and came in at the low end of our guidance range, representing a 110 basis points of decline year over year.

Speaker 5: During the quarter. Year-over-year foreign currency movements had a modest impact on our results. Foreign currency translation drove about 1% swing between the U's dollar reported revenue trend and the constant currency-related trend.

During the quarter year over year foreign currency movements had a modest impact on our results foreign currency translation drove about 1% swing between the U S dollar reported revenue trend and the constant currency related trend.

Speaker 5: After adjusting for the negative impact of foreign exchange rates, our constant currency revenue decreased 3% and.

After adjusting for the negative impact of foreign exchange rates, our constant currency revenue decreased 3%.

Speaker 5: Organic daysat adjusted revenue decreased 3% in the quarter in line with our guidance.

<unk> days adjusted revenue decreased 3% in the quarter in line with our guidance.

Speaker 5: Turning to the EPS bridge, on Slide 4, reported earnings per share was a dollar 29, which included 29 cents related to restructuring and noncash foreign currency charges related to our hyperinflationary translation of our Argentina business.

Turning to the EPS bridge on Slide four reported earnings per share was $1 29, which included <unk> 29.

Related to restructuring and noncash foreign currency charges related to our Hyperinflationary translation of our Argentina business.

Speaker 5: Argentina is required to be treated as the hyperinflationary economy and the noncash currency translation losses reflect the devaluation of the Argentine peso during the quarter.

Argentina is required to be treated as a hyperinflationary economy and the noncash currency translation losses reflect the devaluation of the Argentine peso during the quarter.

Speaker 5: This is a noncash accounting charge, as our Argentina business operates in their local currency.

This is a noncash accounting charge as our Argentina business operates in their local currency.

Speaker 5: Excluding these charges, adjusted EPS was a dollar fifty-eight.

Excluding these charges adjusted EPS was $1 58.

Speaker 5: bloking from our guidance midpoint. Our results included a softer operational performance of five cents.

Walking from our guidance midpoint. Our results included the softer operational performance of <unk>.

Speaker 5: The lower weighted average share count to the share repurchases in the quarter, which had a positive impact of two cents. The lower effective tax rate, which had a positive impact of two cents. Foreign currency impact: that was one cent worse than our guidance. And interest in other expenses, which had a negative three -cent impact.

Lower weighted average share count due to share repurchases in the quarter, which had a positive impact of <unk> lower effective tax rate, which had a positive impact of <unk> our.

Foreign currency impact that was <unk> worse than our guidance and interest and other expenses, which had a negative <unk> <unk> impact.

Speaker 5: Next let's review our revenue by business line.

Next let's review our revenue by business line.

Speaker 5: Year-over-year on an organic constant currency basis, the Manpower brand reported the revenue decline of 1%, the experienced brand declined by 11% and the town solutions brand revenue declinine by 9%.

Over year on an organic constant currency basis, the manpower brand reported a revenue decline of 1%.

The experienced brand declined by 11% and the talent solutions brand revenue declined by 9%.

Speaker 5: The experienced decline represented lower activity from both enterprise and convenience customer segments, with enterprise cliines having a much more pronounced pullback compared to significant growth in the prior year.

The experienced decline represented lower activity from both enterprise and convenience customer segments with enterprise clients, having a much more pronounced pullback compared to significant growth in the prior year.

Speaker 3: Within townent solutions. We saw significant year-over-year revenue decline in RPO as we anniversaried high levels of permanent hiring across our key markets in the prior year period.

Within talent solutions, we saw significant year over year revenue decline in our Po as we anniversaried high levels of permanent hiring across our key markets in the prior year period.

Speaker 5: Our MSP business saw revenue declines in the quarter as we reduced certain lower margin activity, while Wright management experienced significant revenue growth on higher outplacement volumes in the quarter compared to the record lowan levels of activity in the prior year period.

Our MSP business saw revenue declines in the quarter as we reduced certain lower margin activity, while right management experienced significant revenue growth on higher out placement volumes in the quarter compared to the record low levels of activity in the prior year period.

Speaker 5: Looking at our gross profit margin in detail, our gross margin came in at 18%.

Looking at our gross profit margin in detail our gross margin came in at 17, 8% staffing.

Speaker 5: Staffing margin contributed a 10 basis point reduction, as manpower experienced a very slight mix-related decrease in staffing margin.

Staffing margin contributed 10 basis point reduction is manpower experienced a very slight mix related decrease in staffing margin.

Speaker 5: Permanent recruitment, including count solutions. Rpo contributed 40 basis point GP margin reduction at permanent hiring demand experienced reduced levels from the record high activity in the prior year period.

Permanent recruitment, including talent solutions, our Poe <unk>.

Tribute a 40 basis point GP margin reduction is permanent hiring demand experienced reduced levels from the record high activity in the prior year period.

Speaker 5: The reduction in permanent recruitment during the quarter was greater than expected, which drove the slightly lower than guidance gross margin result.

The reduction in permanent recruitment during the quarter was greater than expected, which drove the slightly lower than guidance gross margin result.

Speaker 5: Pride management, career transition within town solutions contributed 30 basis points of improvement as outplacement activity increased significantly.

Right management career transition within talent solutions contributed 30 basis points of improvement as outplacement activity increased significantly.

Speaker 5: Other items resulted in a 20 basis point margin decrease.

The items resulted in a 20 basis point margin decrease.

Speaker 5: Moving on to our gross profit by business line, during the quarter the Manpower brand comprised 58% of gross profit, our experienced professional business comprised 25% and town solutions comprised 17%.

Moving on to our gross profit by business line during the quarter. The manpower brand comprised 58% of gross profit our experienced professional business comprised 25% <unk> solutions comprised 17% during.

Speaker 5: During the quarter, our consolidated gross profit decreased 6% on an organic constant currency basis year-over-year.

During the quarter, our consolidated gross profit decreased 6% on an organic constant currency basis year over year.

Speaker 5: Our Manpower brand recorded an organic gross profit decrease of 3% in constant currency year-over-year.

Our manpower brand reported an organic gross profit decrease of 3% in constant currency year over year.

Speaker 5: Organic gross profit in our experienced brand decreased 13% in constant currency. Year-over-year permanent recruitment decreases within experience drove the higher rate of overall GP decrease for the brand.

Organic gross profit in our experience brand decreased 13% in constant currency year over year.

Permanent recruitment decreases within experienced drove the higher rate of overall GP decrease for the brand.

Speaker 5: Organic gross profit nil Solutions decreased 7% in constant currency year-over-year.

Organic gross profit in talent solutions decreased 7% in constant currency year over year.

Speaker 3: This was driven by declines in RPO and MSP, partially offset by significant growth in rightate management during the quarter.

This was driven by declines in <unk> and MSP, partially offset by significant growth in right management during the quarter.

Speaker 5: Gross profit- RPO, decreased in the double-digit percentage range in the quarter as we anniversary record levels of permanent hiring activity in the prior year period. While mssp experienced a slight GP declined during the quarter.

Gross profit in our <unk> decreased in the double digit percentage range in the quarter as we anniversary record levels of permanent hiring activity in the prior year period.

<unk> experienced a slight GP declined during the quarter.

Speaker 5: Reported of's gna expense in the quarter was seven hundred and fifty-five million.

Reported SG&A expense in the quarter was $755 million.

Speaker 3: Excluding restructuring costs. Sgna was flat year-over-year on an organic constant-currency basis, down from the 3% growth in the first quarter on the same basis.

<unk> restructuring costs SG&A was flat year over year on an organic constant currency basis.

From the 3% growth in the first quarter on the same basis.

Speaker 5: This reflects a balance of cost reductions in areas of slowing demand, while we continue to invest in strategic digization initiatives as well as growth opportunities, most notably including xperis, talent solutions and specialty skills in manpower.

This reflects a balance of cost reductions in areas of slowing demand, while we continued to invest in strategic digitization initiatives as well as growth opportunities, most notably including experienced talent solutions and specialty skills and manpower.

Speaker 5: The underlying increase is consisted of operational cost of two million, incremental costs related to net acquisitions of four million, offset by currency changes of four million.

The underlying increase is consisted of operational costs of $2 million incremental costs related to net acquisitions of $4 million offset by currency changes of $4 million.

Speaker 3: Adjusted SGNA expenses as a percent of revenue represented 15% in constant currency in the second quarter, reflecting lowered operational leverage on the revenue decline.

Adjusted SG&A expenses as a percentage of revenue represented 15, 2% in constant currency in the second quarter, reflecting lowered operational leverage on the revenue decline for.

Speaker 3: Restructuring costs totaled 14.5 million.

Restructuring costs totaled $14 5 million.

Speaker 5: The Americas segment comprised 23% consolidated revenue. Revenue in the quarter was one point one billion, representing a decrease of 9% compared to the prior year period, on a constant currency basis.

The Americas segment comprised 23% of consolidated revenue revenue in the quarter was $1 1 billion, representing a decrease of 9% compared to the prior year period on a constant currency basis.

Speaker 3: Reported was 43 million and includes one million of restructuring costs.

<unk> was 43 million and includes $1 million of restructuring costs as adjusted OUP was $44 million and OUP margin was four 8%.

Speaker 3: As adjusted, ocp was 44 million and opp margin was four point ER percent.

Speaker 3: The U's is the largest country in the Americas segment, comprising 67% segment revenues.

The U S is the largest country in the Americas segment, comprising 67% of segment revenues.

Speaker 3: Revenue in the? U's was 737 million during the quarter, representing an 18% days adjusted decrease compared to the prior year.

Revenue in the U S was $737 million during the quarter, representing an 18% days adjusted decrease compared to the prior year.

Speaker 3: As adjusted to exclude restructuring costs. opfor our U's business was 27 million in the quarter, representing a decrease of 60% from the prior year.

As adjusted to exclude restructuring costs OUP for our U S business was $27 million in the quarter, representing a decrease of 60% from the prior year.

Speaker 3: As adjusted OC margin was 4%.

As adjusted OUP margin was three 6%.

Speaker 3: Within the? U's, the Manpower brand comprised 26% of gross profit during the quarter.

Within the U S. The manpower brand comprised 26% of gross profit during the quarter.

Speaker 5: Revenue for the Manpower brand in the? U's decreased 19% on a days's adjusted basis during the quarter, representing a further decline from the 15% decrease in the first quarter.

Revenue for the manpower brand in the U S decreased 19% on a days adjusted basis during the quarter, representing a further decline from the 15% decrease in the first quarter.

Speaker 5: Manufacturing teammine in the? U's continued to decline during the second quarter, from the 48 range in March for the 46 range in June .

Manufacturing PMI in the U S continued to decline during the second quarter from the 48 range in March for the 46 range in June.

Speaker 5: The U's manpower business was seeing an improved rate of decline as we exit the quarter.

U S manpower business was seeing an improved rate of decline as we exited the quarter.

Speaker 5: The experienced brand in the? U's comprised 46% of gross profit in the quarter.

The experienced brand in the U S comprised 46% of gross profit in the quarter.

Speaker 5: withinan experience in the? U's it skills comprised approximately 90% of revenues.

With an experienced in the U S. It skills comprised approximately 90% of revenues.

Speaker 3: On a day's adjusted basis. Experienced U's revenue decreased 17% as we anniversary significant 2022 growth of 25% organically in the year-ago period.

On a days adjusted basis experienced U S revenue decreased 17% as we anniversary significant 2022 growth of 25% organically in the year ago period.

Speaker 5: As referenced earlier, the year ago period experienced dramatic growth from enterprise clients and this period's pullback is most pronounced from these enterprise clients.

As referenced earlier the year ago period experienced dramatic growth from enterprise clients and this periods pullback is most pronounced from these enterprise clients.

Speaker 5: Town solutions in the? U's contributed 28% to gross profit and experienced revenue decline of 22% in the quarter.

Talent solutions in the U S contributed 28% to gross profit and experienced revenue decline of 22% in the quarter.

Speaker 5: This was driven by a decrease in RPO revenues in the? U's as permanent hiring programs continued at lower levels in the second quarter as we anniversaryied record growth in the prior year.

This was driven by a decrease in <unk> revenues in the U S. As permanent hiring programs continued at lower levels in the second quarter as we anniversaried record growth in the prior year.

Speaker 3: The U's smsp business saw. Revenue decline is reduced, some lower margin activity, while allplacement activity within our right management business drove significant revenue increases.

The U S. MSP business saw revenue decline has reduced some lower margin activity, our outplacement activity within our right management business drove significant revenue increases.

Speaker 5: In the third quarter of 2023, we expect a similar to slightly lower rate of year-over-year revenue decline as compared to the second quarter trend in the U? S.

In the third quarter of 2023, we expect a similar to slightly lower rate.

Year over year revenue decline as compared to the second quarter trend in the U S.

Speaker 5: Southern Europe revenue comprised 46% of consolidated revenue. In the quarter, revenue in Southern Europe came in a two point two billion, representing a 1% decrease in organic constant currency.

Southern Europe revenue comprised 46% of consolidated revenue in the quarter.

Revenue in Southern Europe came in at $2 2 billion, representing a 1% decrease in organic constant currency.

Speaker 5: Reported AUP was 93 million and included six million of restructuring costs which were related to our Spain operations.

Reported OUP was $93 million and includes 6 million of restructuring costs, which are related to our Spain operations.

Speaker 3: As adjusted auupp was 99 million and op margin was 4%.

As adjusted <unk> was $99 million and OUP margin was four 4%.

Speaker 5: France, revenue comprised 57% of the Southern Europe segment in the quarter and revenue equaled one point three billion in the quarter and was flat on a day's adjusted organic constant currency basis.

France revenue comprised 57% of the southern Europe segment in the quarter and revenue equaled $1 3 billion in the quarter and was flat on a days adjusted organic constant currency basis.

Speaker 5: au for our France business was five million in the quarter, representing an organic decrease of 25% in constant currency.

<unk>, France business was $50 million in the quarter, representing an organic decrease of 25% in constant currency.

Speaker 5: Oc margin was 4%.

OUP margin was three 9%.

Speaker 5: We are estimating the year-over-year constant currency revenue trend in the third quarter for France to be a very slight constant currency decrease year-over-year representing a flat days adjusted result.

We are estimating the year over year constant currency revenue trend in the third quarter for France to be a very slight constant currency decrease year over year, representing a flat days adjusted result.

Speaker 5: Revenue in Italy equaled 458 million in the quarter and was flat on a days's adjusted constant currency basis.

Revenue in Italy, equaled $458 million in the quarter and was flat on a days adjusted constant currency basis.

Speaker 5: ocp equaled 36 million and OC margin was 8%.

OUP equaled $36 million and OUP margin was seven 9%.

Speaker 5: We expect a similar rate of constant currency revenue declinine in the third quarter compared to the second quarter.

We expect a similar rate of constant currency revenue declined in the third quarter compared to the second quarter.

Speaker 5: Our Northern Europe segment COVID-19% of consolidated revenue in the quarter.

Our northern Europe segment COVID-19% of consolidated revenue in the quarter.

Speaker 5: Revenue of 952 million represented a 6% decline in constant currency.

Revenue of $952 million represented a 6% decline in constant currency after excluding restructuring costs of $8 million adjusted OUP was a negative $2 million and OUP margin was a negative <unk> 2%.

Speaker 5: After excluding restructuring costs of eight million, adjusted opp was a negative two million and AUP margin was a negative zero, 0%.

Speaker 5: The restructuring costs related to our Nordics and Germany operations.

The restructuring costs related to our Nordics and Germany operations.

Speaker 5: Our largest market in the Northern Europe segment is the U? K, which represented 34% of segment revenues in the quarter.

Our largest market in northern Europe segment is the UK, which represented 34% of segment revenues in the quarter.

Speaker 5: During the quarter U K revenues decreased 12% on a day's adjusted constant currency basis.

During the quarter UK revenues decreased 12% on a days adjusted constant currency basis.

Speaker 5: This reflects the stabilized rate of decline from the first quarter on the same basis.

This reflects the stabilized rate of decline from the first quarter on the same basis.

Speaker 5: We expect a similar rate of constant currency revenue decline in the third quarter compared to the second quarter.

We expect a similar rate of constant currency revenue decline in the third quarter compared to the second quarter.

Speaker 3: In Germany, revenues increased 5% in days adjusted constant currency in the quarter, representing three consecutive quarters of improvement driven by our MAN poit business, particularly in the automotive sector.

In Germany revenues increased 5% and days adjusted constant currency in the quarter, representing three consecutive quarters of improvement driven by our manpower business, particularly in the automotive sector.

Speaker 5: I mentioned last quarter that we were performing a detailed evaluation of our underperforming proserbia managed services business in Germany.

I mentioned last quarter that we were performing a detailed evaluation of our underperforming pro Serbia managed services business in Germany, we.

Speaker 5: We have concluded this evaluation and have decided to wind down this business.

We have concluded this evaluation and have decided to wind down this business.

Speaker 5: The wind-down activities are commencing in the third quarter.

The wind down activities are commencing in the third quarter.

Speaker 3: I will provide further details on the expected restructuring charges associated with this wind-down as part of our third quarter earnings results.

I will provide further details on the expected restructuring charges associated with this wind down as part of our third quarter earnings results.

Speaker 3: This business has been a significant drag on our Germany operations and these actions will improve profitability going forward.

This business has been a significant drag on our Germany operations and these actions will improve profitability going forward.

Speaker 4: Overall in the third quarter we are expecting a similar rate of constant-currency revenue growth compared to the second quarter trend driven by our manpower business.

Overall in the third quarter, we are expecting a similar rate of constant currency revenue growth compared to the second quarter trend driven by our manpower business.

Speaker 3: In the Netherlands, revenue decreased 7% on the day's adjusted constant-currency basis, and this represented a stable rate of decline from the first quarter on the same basis.

In the Netherlands revenue decreased 7% on a days adjusted constant currency basis, and this represented a stable rate of decline from the first quarter on the same basis.

Speaker 3: The Asia, pacific- Middle East segment comprises 12% of total company revenue.

The Asia Pacific Middle East segment comprises 12% of total company revenue in.

Speaker 3: In the quarter, revenue grew 4% in constant currency to five hundred and ninety-nine million.

In the quarter revenue grew 4% in constant currency to $599 million.

Speaker 5: Oc was 26 million and opp margin was 4%.

OUP was $26 million and OUP margin was four 3%.

Speaker 5: Our largest market in the apmme segment is Japan, which represented 48% of segment revenues in the quarter.

Our largest market in the <unk> segment is Japan, which represented 48% of segment revenues in the quarter.

Speaker 5: Revenue in Japan grew 12% in constant currency, or 10% on a day's adjusted basis.

Revenue in Japan grew 12% in constant currency or 10% on a days adjusted basis.

Speaker 5: We remain very pleased with the consistent performance of our Japan business and we expect continued strong revenue growth in the third quarter.

We remain very pleased with the consistent performance of our Japan business and we expect continued strong revenue growth in the third quarter.

Speaker 5: I'll now turn to cash F balance sheet.

I'll now turn to cash flow on balance sheet.

Speaker 5: In the second quarter, free cash flow represented an outflow of 177 million, compared to an outflow of 72 million in the prior year.

In the second quarter free cash flow represented an outflow of $177 million compared to an outflow of $72 million in the prior year.

Speaker 5: The higher offflow in the current year was driven by timing of payables and timing of payments within our large mssp business.

Higher outflow in the current year was driven by timing of payables and timing of payments within our large MSP business.

Speaker 5: At the end of the second quarter day, sales outstanding was flat at 58 days.

At the end of the second quarter days sales outstanding was flat at 58 days.

Speaker 5: During the second quarter, capital expenditures represented twenty-one million.

During the second quarter capital expenditures represented $21 million.

Speaker 5: During the second quarter, we repurchased 687 thousand shares of stock for $5 million.

During the second quarter, we repurchased 687000 shares of stock for $50 million.

Speaker 5: As of June thirtieth, we have 928 thousand shares remaining for a repurchase under the share program approved in August of 2021.

As of June 30, we have 928000 shares remaining for purchase under the share program approved in August of 2021.

Speaker 3: Our balance sheet ended the quarter with cash of 408 million in total debt of one billion.

Our balance sheet ended the quarter with cash of $408 million and total debt of $1 billion.

Speaker 3: Net debt equaled 594 million at quarter end.

Net debt equaled $594 million at quarter end our.

Speaker 3: Our debt ratio is a quarter end. Reflect total adjusted gross debt to trailing 12 months adjusted EBITDA of one point five three and total debt to total capitalization at 29%.

Our debt ratios at quarter end reflect total adjusted gross debt to trailing 12 months adjusted EBITDA of 153.

And total debt to total capitalization at 29%.

Speaker 3: Our debt and credit facilities remain unchanged during the quarter.

Our debt and credit facilities remained unchanged during the quarter.

Speaker 3: Next I review our outlook for the third quarter of 2020. -three and.

Next I'll review, our outlook for the third quarter of 2023.

Speaker 3: Based on trends in the second quarter and July activity to date, our forecast is cautious and anticipates that the third quarter will continue to be challenging in the? U's and Europe .

Based on trends in the second quarter and July activity today, our forecast is cautious and anticipate that the third quarter. We will continue to be challenging in the U S and Europe.

Speaker 3: This anticipates further weakening of permanent recruitment activity based on developments in the second quarter, partially offset by additional cost actions being taken.

This anticipates further weakening of permanent recruitment activity based on developments in the second quarter, partially offset by additional cost actions being taken.

Speaker 3: We are forecasting underlying earnings per share for the third quarter to be in the range of a dollar 32 to a dollar 42, which includes a favorable foreign currency impact of eight cents per share.

We are forecasting underlying earnings per share for the third quarter to be in the range of $1 32 to $1 42, which.

Which includes a favorable foreign currency impact of <unk> <unk> per share.

Speaker 3: We have disclosed our foreign currency translation rate estimates at the bottom of the guidance Slide.

We have disclosed our foreign currency translation rate estimates at the bottom of the guidance slide.

Speaker 3: Our constant currency revenue guidance range is between a decrease of 7% and 3% and at the midpoint represents a 5% decrease.

Our constant currency revenue guidance range is between a decrease of 7% and 3% at the midpoint represents a 5% decrease.

Speaker 3: The impact of net acquisitions is negligible and there is about one less billing day this period, contributing to an organic days adjusted constant currency revenue trend of a 4% decrease at the midpoint.

The impact of net acquisitions is negligible and there is about one less billing day. This period contributing to an organic days adjusted constant currency revenue trend.

Three 5% decrease at the midpoint.

Speaker 3: This is comparable to the decrease in the second quarter on the same basis.

This is comparable to the decrease in the second quarter on the same basis, we expect our EBITDA margin during the third quarter to be down 120 basis points at the midpoint compared to the prior year.

Speaker 3: We expect our EBITDA margin during the third quarter to be down 120 basis points at the midpoint compared to the prior year.

Speaker 3: We estimate that the effective tax rate for the third quarter will be 30% and.

We estimate that the effective tax rate for the third quarter will be 30%.

Speaker 6: As usual.

As usual our guidance does not incorporate restructuring charges or additional share repurchases and we estimate our weighted average shares to be $55 million.

Speaker 3: Our guidance does not incorporate restructuring charges.

Speaker 5: Or additional share repurchases, and we estimate our weighted average shares to be 50.5 million.

Speaker 3: As I mentioned, we do expect to have restructuring charges associated with the wind-down of our proservbia maned services business in Germany, and we will disclose those and any additional restructuring charges separately when we report our third quarter earnings.

As I mentioned, we do expect to have restructuring charges associated with the wind down of our pro Serbia managed services business in Germany, and we will disclose those and any additional restructuring charges separately when we report our third quarter earnings.

Speaker 3: Our guidance also does not include the impact of the noncash currency translation adjustment for our hyperinflationary Argentina business and we will also report that separately.

Our guidance also does not include the impact of the noncash currency translation adjustment for our Hyperinflationary, Argentina business and we will also report that separately.

Speaker 3: I will now turn it back to jonis.

I will now turn it back to you on us.

Speaker 7: thankice cheack.

Thanks Jack.

Speaker 4: To meet the demands and opportunities in the market and position us for success in the future. We continue to progress a transformation agenda in.

To meet the demands and opportunities of the market and position us for success in the future. We continue to progress our transformation agenda in support of our strategy.

Speaker 4: Support of our strategy.

Speaker 4: We feel very good about our diversification strategy: building strong brands, So differentiated market positions and clear value propositions in manpower, experience and talent solutions.

We feel very good about our diversification strategy building strong brands with differentiated market positions and clear value propositions in manpower experience and talent solutions or.

Speaker 4: Our digitization strategy will be a key enabler for productivity and innovation.

Our digitization strategy will be a key enabler for productivity and innovation, providing data and insights our clients and candidates one.

Speaker 4: Providing data and insights our clients and candidates.

Speaker 4: Our industry-leading global technology platform power suite purged substantially all of our key markets through 2023, with ongoing implementation of common applications and a leading cloud-enabled back office infrastructure across our global footprint- another strong differentiator.

Our industry, leading global technology platform powered suite.

Substantially all of our key markets through 2023 with ongoing implementation of common applications and the leading cloud enabled back office infrastructure across our global footprint another strong differentiator.

Speaker 4: We believe this will enable great opportunities for accelerated growth and productivity in the future.

We believe this will enable great opportunities for accelerated growth and productivity in the future.

Speaker 4: We are also taking decisive actions within the business that are aligned with our strategy to simplify our operations, evolve our brand geomodel and prioritize our investments.

We're also taking decisive actions within the business that are aligned with our strategy to simplify our operations.

All of our brand Geo model and prioritize our investments.

Speaker 4: Our strategy is clearer than ever and we are committed to adjusting our portfolio for business. That is not core to that strategy.

Strategy is clearer than ever and we are committed to adjusting our portfolio for a business that is not core to that strategy.

Speaker 4: The decision to wind down our presserbia managed services businesses in Germany, though a difficult 1, reinforces our discipline in focusing on it T resourcing and solutions and is a proof point that we will take the necessary actions to daddress businesses that do not Fed our strategy or meet our profitability hurdle rates.

The decision to wind down our preserve your managed services business in Germany, though a difficult one.

Reinforces our discipline and focusing on Resourcing and solutions and as a proof point that we will take the necessary actions to address businesses that do not fit our strategy or meet our profitability hurdle rates.

Speaker 4: We are very pleased to be named a global leader in recruitment process outsourcing for the thirteenth year in the adverse group peak matrix assessment recognized in North America Asia, Pacific and Europe , Middle East and Africa.

We are very pleased to be named a global leader in recruitment process outsourcing for the 13th year and the address group peak matrix assessment recognized in North America, Asia Pacific and Europe, Middle East and Africa.

Speaker 5: Everest especially highlighted talent solutions, talent advisory practices in talent strategy TAL, ent transformation and talent sustainability.

Everest, especially highlight the talent solutions talent advisory practices and talent strategy down on transformation and talent sustainability.

Speaker 5: Additionally, we were recognize for providing EIB services to clients, including diverse talent sourcing and de EIB partnerships.

Additionally, we were recognized for providing <unk> services to clients, including diverse talent sourcing and the EIB partnerships.

Speaker 4: Our commitment to integrating and including diverse talent is recognized by our clients and by our partners. In June , we reaffirmed our dedication to refugee employment in Europe by committing that we will support 45 thousand refugees over the next three years, including ukrainian refugee women.

Our commitment to integrating and including diverse talent is recognized by our clients and by our partners in June we reaffirmed our dedication to refugee employment in Europe by committing that we will support 45000 refugees over the next three years, including Ukrainian refugee women.

Speaker 4: This includes working with clients and others to place three thousand refugees into meaningful employment opportunities and providing 15 thousand refugees with a mix of upskilling and training courses to our MyPath and expperious academies.

This includes working with clients and others to place 30000 refugees into meaningful employment opportunities and providing 15000 refugees with a mix of up skilling and training courses to our my path and experienced academies.

Speaker 5: I would like to close by thanking our mampo group team right.

I would like to close by thanking our manpower group team around the world for another quarter of dedication to drive the business forward. Despite a more challenging environment in many markets.

Speaker 5: The world for another quarter of dedication to drive the business forward despite a more challenging environment in many markets.

Speaker 4: Our exspirenced leadership team has faced similar challenges in the past, and as much as we're focused on navigating an uncertain environment, we're also preparing for strong rebound when the markets improve. And with that I will open to qa operator.

Our experienced leadership team has faced similar challenges in the past and as much as we're focused on navigating an uncertain environment.

Also preparing for a strong rebound when the markets improve and with that I will open to Q&A operator.

Speaker 2: Thank you. If you'd like to ask a question, please press Star 1- one if your question has been answered and you like to remove yourself in the cue.

Thank you if you'd like to ask a question. Please press star one one if your question has been answered and you'd like to remove yourself from the queue. Please press star one again.

Speaker 2: Please press Star 1: one again.

Speaker 2: Our first question comes from Mark markcon. With Baird, your line is open.

Our first question comes from Mark Marcon with Baird. Your line is open.

Speaker 8: Good morning onhas in Jack. Can you talk a little bit more about the trend that you're seeing in expperence and what you're hearing from some of the larger enterprise clients in terms of what their outlook is in terms of spending and the need for resources, and how would you compare and contrast that relative to the overall merarratives? That's that we see across the U's economy that things are holding up a little bit better.

Good morning, Jack.

Can you talk a little bit more about.

The trends that Youre seeing in explorer and.

But what youre hearing from some of the larger enterprise clients in terms of what their outlook is in terms of spending and the need for resources.

And how would you compare and contrast that relative to the overall narrative.

No.

That we see across the U S economy that things are holding up a little bit better.

Speaker 5: shermark and thanks. So the question, you know. I think the trends that we seeing today is really a continuation of what we talked about when we had are call. In the first quarter, enterprise clients had a hiring boom about this time in 2022. they started to.

Sure Mark and thanks for the question.

The <unk>.

Trends that we're seeing today is really a continuation of what we talked about when we had our call in.

And the first quarter enterprise clients had a hiring boom about this time in 2022, they started to pull back.

Speaker 9: All back.

Speaker 5: From that hiring boom as we saw in the first quarter. That trend really continued for enterprise clients- and I' here specifically talking mostly about the? U us and the? U K. they pulled back from that and that continued into the second quarter and I would describe our conversations with our clients in a sense that they are waiting for clearer signs of a strengthening market and bottoming market.

From that hiring boom.

As we saw in the first quarter that trend really continued for enterprise clients and I'm, specifically talking mostly about the U S and the U K they pulled back from that and that continued into the second quarter.

And I would describe our conversations with our clients in a sense that they are waiting for clearer signs of a strengthening market on a bottoming market. They continue to be very interested in specific skill sets and as you can tell from our from our revenue trends.

Speaker 4: They continue to be very interested in specific skill sets and, as you can tell from our, from our revenue trends, you know there's still opportunities in the market and you know contrast that with the convenience market with which is, although softer, holding up much better than the enterprise market, and we feel very good frankly, about both because we are a strong player in the enterprise market.

There's still opportunities in the market and contrast that with the convenience market.

Which is although softer.

<unk> up much better than the enterprise markets and we feel very good frankly about the both because we are a strong player in the enterprise market. We know when those markets get going again, they provide for great growth opportunities and then we have strengths in the convenience market, which I think is also going to service.

Speaker 4: We know when those marketts get going again, they provide for great growth opportunities. And then we have strength in the convenience market, which I think is also going to service very well. So it's really a continuation of the trends that we saw in the first quarter, against a backdrop of a hiring boom, a number of industries that we serve, notably the tech industry, in experience.

Very well so it's really a continuation of the trends that we saw in the first quarter against a backdrop of a hiring boom.

A number of the industries that we serve notably the tech industry and experience.

Speaker 4: So that's really what we have been seeing and that's what our clients are telling us.

So that's really what we've been seeing and Thats, what our clients are telling us.

Speaker 8: Along those lines are they in terms of waiting for some clearer signs? Do you think that those clearer signs could end up emerging?

Along those lines are they in terms of waiting for some clearer signs do.

Do you think that those clearer signs could end up emerging.

Speaker 5: By the fourth quarter or the first quarter, or is is it the staying? Does it still seem pretty murky from their perspective?

By the fourth quarter or the first quarter or is it is it staying does it still seem pretty murky from their perspective.

Speaker 4: I think from a client perspective- and I'm sure if our many of us- there's so many conflicting signals about the economy that it's you know hard, hard to tell when something would turn around. But you know, from our perspective, if we look at our data as an industry and as a business, we are already operating in an environment that is indicative of what we would call the Guard and variety recession level for now a number of quarters in the?

Well I think from a client perspective, and I'm sure if are met.

Many of the stairs so many conflicting signals about the economy that it's hard.

Hard to tell when something will turn around.

But from our perspective, if you look at our data as an industry and as a business.

We are already operating in an environment that is indicative of what we would call. The garden variety recession level for now a number of quarters in the U S and more quarters in Europe, and if you look at the overall indicators.

Speaker 4: U's and more quarters in Europe . And if you look at the overall indicators on the labor market in the U's, you see our industry is coming down to a lower level. you'have seen hours work coming down. You seen more part time people looking for full time work. So the indicators are all there for a slightly worsening labor market, although it hasn't transpired yet into the broader economy or frankly, into the broader labor market, which is still very resilient.

Indicators on the labor market in the U S.

You see our industry is coming down to a lower level, you've seen hours worked coming down you've seen more part time people looking for full time work. So the indicators are all there for a slightly worsening labor market, although it hasnt transpired yet into the broader economy or frankly into the.

Broader labor market, which is still very resilient, but our view is that to tamper inflation wage inflation will have to come down which means policymakers.

Speaker 10: But our view is that to tamper inflation, wage inflation will have to come down, which means policymakers will continue to try and cool off the labor market in their battle against rising inflation and that means we can expect some the further weakening all the labor markets. And that's exactly what you see us talk about in our outlook and that's why you know, while three saw a significant step down on perm in the second quarter and we continue to see it, it's entirely consistent with that expectation.

Policymakers will continue.

To try and cool off the labor market in their battle against rising inflation and that means we can expect some further weakening of the labor markets and that's exactly what you'll see us talk about in our outlook and that's why.

We saw a significant.

Stepping down on Perm in the second quarter, and we continued to see it it's entirely consistent with that expectation.

Speaker 11: And and it's consistent with what we were expecting as well- can this? Shifting over to Northern Europe : obviously you telegraphed the move with regards to proserve last quarter. When you think about Northern Europe from a longer-term perspective, maybe three to five years out, what sort of margin expectations should investors have with regards to Northern Europe illness?

Yes.

System with what we were expecting as well.

Just shifting over to northern Europe.

Obviously you telegraphed.

The move with regards to serve you.

Last quarter.

When you think about northern Europe from a longer term perspective, maybe three to five years out.

What sort of margin expectations should investors have with regards to northern Europe you on us.

Speaker 4: I think as you look at the Northern Europe business Mark, you have a couple of things. This is where we have most of our bench countries.

Well I think as you look at the Northern Europe business Mark do you have a couple of things. This is where we have.

Most of our bench countries. So when you see a decline in revenue. This is the region that takes the biggest hit on.

Speaker 4: When you see a decline in revenue. This is the region that takes the biggest hit on the decline in margins because we keep our bench there. You have one of our biggest countries, the U K, which has been also sensitive to the enterprise exposure we talked about, both on the manppart and the Experia side and that you know saw the weakness as well. And then we have a business in Germany that we've been working on turning around and I have to say we're pleased to the progress that we're making on our staffing, on our staffing side, and we're seeing a good evolution here on revenues, with more work to do.

The decline in margins because we keep our bench there you have one of our biggest countries U K, which has been also sensitive to the enterprise exposure, we talked about both on the manpower and the experience side of that.

Source of weakness as well and then we have a.

Business in Germany that we've been working on turning around and I have to say, we're pleased with the progress that we're making on our staffing on our staffing side and we're seeing a good evolution here on revenues with more work to do but we do have a business that we need to address.

Speaker 10: But we do have a business that we need to address and that is exactly what we're we're signaling in today's earnings call. But you've heard us talk about this over the last couple of quarters already- that we're working on the turnaround. I would say there is there's no reason not to expect Northern Europe to come back to our target profitability levels as a region.

And that is exactly what we're what we're signaling in today's earnings call, but you've heard US talk about this over the last couple of quarters already that we're working on the turnaround.

But I would say there is there is no reason not to expect northern Europe to come back to our target profitability levels as the region on the hole right now, it's a little bit of a perfect storm, but we are confident that the actions that we're taking today and into the future that we will get northern Europe back on track by.

Speaker 4: On the whole. Right now it's a little bit of the perfect storm, but we are confidence that the actions that we're taking today and into the future, that we will, at Northern Europe , back on track by some decisive actions, and you I've heard us talk about one of those decisive actions as it relates to presserbia business in Germany on this call.

Decisive actions and you heard us talk about one of those decisive actions.

As it relates to opt for surgery, a business in Germany on this call.

Speaker 12: Perfect Thank you.

Perfect. Thank you.

Speaker 13: Thanks Mark.

Thanks, Mike.

Speaker 2: Thank you. Our next question comes from George townong with Goldman Sachs. Your line is open.

Thank you. Our next question comes from George Tong with Goldman Sachs. Your line is open.

Speaker 14: I thanks. Good morning. You touched on some of the factors driving the declines in experience. Can you elaborate on some of the trends in townt solution, specifically how trends are performing with RPO and the mssp business?

Hi, Thanks. Good morning, you touched on some of the factors driving the decline in experience can you elaborate on some of the trends and talent solutions, specifically, how trends are performing with our P O and the MSP business.

Speaker 15: surethe RPO business clearly feeling the effects of the slowing hiring environment from a permanent recruitment perspective and of course, RPO is an enterprise business. It has very limited convenience activities, So it really is exactly in the cross shairs of both enterprise and slowdown right now, had fantastic performance and really benefited from the hiring boom.

Sure.

RPM business is clearly feeling the effects of the slowing hiring environment from a permanent recruitment perspective and of course, our appeal is an enterprise business. It has very limited convenience activities. So it really is exactly in the crosshairs of both enterprise and Perm.

Slowdown right now had fantastic performance in really benefited from the hiring boom, we had a very strong position in our apio with a global leaders, we feel very good about that business, but right now we're going through the economic cycle and we can see the reduction both in enterprise spend as evidenced in.

Speaker 4: We have a very strong position in R PO where the global leaders some very good about that business. But right now we're going through the economic cycle and we can see the reduction both and enterprise spend as evidence in reductions in permanent recruitment. So R PO is having a tougher time in this quarter. M SP is really starting to stabilize, we believe, and really seeing some of the actions that we're taking on rebalancing our client makes there and finally, of course, as part of talent solutions, we're seeing very strong activity and growth and right management in this quarter.

Our reductions in permanent recruitment. So <unk> is having a tougher time in this quarter MSP is really starting to stabilize we believe and is really seeing some of the actions that we're taking on rebalancing our clients makes there and finally of course as part of talent.

We're seeing very strong activity and growth in right management in this quarter. So on the whole it's a mixed picture with our appeal feeling the effects of permanent recruitment MSP, you really reflecting the levels that we're seeing in our staffing businesses overall, so aligned and then a strong right management.

Speaker 4: So on the whole it's a mixed picture, with R PO feeling the effects of permanent recruit, M P really reflecting the levels that we're seeing in our staffing businesses overall, So aligned and then a strong right management performance.

Performance.

Speaker 16: That's helpful. He talked about taking decisive actions in the business to better align the the strategy. The core to simplify the operations in proserbia was a great example of that. Are there additional areas of the business that you see opportunity or potential for further streamlining?

Okay. That's helpful.

<unk> talked about taking decisive actions in the business to better align with <unk>.

<unk> core to simplify the operations <unk> <unk> was a great example of that are there additional areas of the business that you see opportunity or potential for further streamlining.

Speaker 5: I think there might be areas that we're going to be looking at in terms of, you know, what we can, what we can do. Over time you'have seen us look at our geographic portfolio, seen us address a number of areas where we think we can. We can do better and be more focused, and I think you should expect us to continue to do that. But you know, when we have something particularly, you know, particularly important, we we tell you in advance.

I think there might be areas that we are going to be looking at in terms of what we can what we can do over time, you've seen us look at our geographic portfolio you've seen us address.

A number of areas, where we think we can we can do better and be more focused and I think you should expect us to continue to do that but when we have something particularly particularly important.

We tell you in advance and now we've made the decision. So we're proceeding with <unk>, but I think Jack maybe in this environment. Clearly we are also looking at cost and SGA SG&A very closely so maybe you'd like to elaborate on this a little bit as well sure. Thanks, Jonas yes in Georgia.

Speaker 10: And now we've made the decisions, we're proceeding with proserbia, but I think Jack, maybe in this environment, clearly we're also looking at the cost and's, G a's, G n a very closely. So maybe you'd like to elaborate on this is a little bit as well. Sure joh, in George, you know other examples where we have taken some actions. We did have some modest restructuring during Q2.

Other examples where we have taken some actions we did have some modest restructuring during Q2, Spain was part of that probably the bigger part of that the nordics.

Speaker 3: Spain was part of that, probably the bigger part of that, the nordics- you just talked about, Northern - Europe , those our bench countries. We've done some streamlining there as well. And then, of course, Germany that we've talked about, where you know we have the proserbia wind down commencing. So So we are in line with what we said previous quarter.

Just talked about northern Europe, those are bench countries, we've done some streamlining there as well and then of course, Germany that we've talked about.

Where we have the pro survey of wind down commencing.

So we are in line with what we said previous quarter. We are looking at parts of the businesses are seeing more significant slowing enacting and taking actions, but broader than that we're also pulling back on broader discretionary spend looking at corporate functions looking at country head.

Speaker 3: We are looking at parts of the businesses that are seeing more significant slowing and acting and taking actions. But broader than that, we're also pulling back on broader discretionary spend, looking at corporate functions, looking at country head quarter functions as well and making adjustments. And the one area- you WOn't har us talk about cutting- we'll be sales.

Quarter functions, as well and making adjustments and the one area you won't hear us talk about cutting will be sales, we're very focused on continuing to be positioned for the upturn when it comes.

Speaker 3: We're very focused on continuing to be positioned for the upturn when it comes, and we're very focused on producer counts. So we we're keeping a very close eye on that, being very careful. But I would say, outside of producers and sales, you should expect that we're taking, you know, very close look and and taking actions and pulling back on costs in those specific areas.

And we're very focused on producer counts. So we're keeping a very close eye on that and being very careful but I would say outside of producers and sales you should expect that we're taking.

Very close look and taking actions and pulling back on costs in those specific areas and as Yona said, we'll talk a lot more about pro serve you on next quarter.

Speaker 3: And Jon said we'll talk a lot more about proserbia next quarter. We're right in the middle of it right now, working with the workers, councils and clients, as you would expect, and we'll give a further update next quarter.

Right in the middle of it right now working with the Workers' Council and clients as you would expect and we'll give a further update next quarter.

Speaker 16: Very helpful, Thank you.

Very helpful. Thank you.

Speaker 2: Thank you. Our next question comes from Josh Chan. With UBS, your line is open.

Thank you. Our next question comes from Josh Chan with UBS. Your line is open.

Speaker 17: Hia. Good morning Jonas and Jack. Thanks for taking my questions.

Hi, good morning units and Jack Thanks for taking my questions.

Speaker 18: I guess I was wondering if you could talk about the relative resilience in Southern Europe versus kind of like the U's. You know it's something that will continue into the next quarter or so, I guess. Just curious your thoughts on the sustainability of that difference in performance and whether you think that that could continue as we kind of go into this next part of the economic cycle.

I guess I was wondering if you could talk about the relative resilience in southern Europe versus kind of like the U S.

It sounds like that will continue into the next quarter or so I guess just curious your thoughts on the sustainability of that difference in performance and whether you think that could continue as we kind of go into this next part of the economic cycle. Thank you.

Speaker 19: Thank you.

Speaker 20: Thanks Jeff. I would say that historically, the U S.

Thanks, Jeff.

Would say that historically the U S labor market is much more dynamic than the European labor markets. They are more rigid in their structures.

Speaker 4: Labor market is much more dynamic than the European labor markets they are more G rigid in their structures in the U's contracts that we have in both experience as well as in manpower are short term nature So you can change the length of that assignment as quickly as you would like whereas in Europe you have more extended contracts that have to run to their scheduled and and also don't forget yes that the downturn in Europe started in 2022 and notably on France France never really saw a comeback know from the pandemic back to the 2019 numbers that we saw Josh So.

In the U S contracts that we have in both experience as well as in manpower or short term.

In nature. So you can change the length of that assignment as quickly as you would like whereas in Europe, you have more extended.

Contract that have to run to their scheduled and and also don't forget Jeff that the downturn in Europe started in 2022, and notably on France, France, you've never really saw a comeback.

From the pandemic back to the 2019 numbers.

That we saw Josh so so that's sort of the explanation and we're very pleased to see the stability in France.

Speaker 21: So that sort of the explanation, and we're very pleased to see the stability in France. We re think.

Speaker 10: The Italian market is one of the underpenetrated markets where you could see continued increases in penetration rates, and we think that is a fantastic opportunity for us to continue to see some very profitable growth. And the? U's market know comes, goes up and come.

I think the Italian market is one of the Underpenetrated markets, where you could see continued increases in penetration rates and we think that is a fantastic opportunity for us to continue to see some very profitable growth.

The U S market comes and goes.

It is up and comes down faster and that is exactly what we're seeing in this cycle as well and.

Speaker 3: Down faster, and that is exactly.

Speaker 10: What we're seeing in this cycle as well, and you know, when the U's economy rebounds than we get to the end of this. We would expect to see good opportunities for rebound here, that we would also expect to be faster on the upbound than what we would expect to see in Europe .

When the U S economy rebounds, and we get to the end of this week.

We would expect to see good opportunities for a rebound here that we would also expect to be faster.

Faster on the outbound than what we would expect to see in Europe.

Speaker 17: Okay excepts great yes things. Thanks for the color there. And then I guess when I follow up, I I wanted to ask about the manpower business within the? U's I think I think you guys mentioned that. You know it. It sawought some improvement and then seemingly soften again in Q2. Could you just talk about what you're seeing there? It it were a little surprised by kind of that trajectory compressor kind of the data points that might be out there.

Okay. That's great yeah. Thanks, Thanks for the color there and then I guess for my follow up I wanted to ask you about the manpower business within the U S. I think I think you guys mentioned that you know it.

Some improvement and then seemingly soften again in Q2 could you just talk about what youre seeing there.

We're a little surprised by kind of that trajectory compared to the kind of the data points that.

Speaker 22: So curious, any color on that business?

That might be out there so im curious any color on that business.

Speaker 3: Joshua Yeah, I'd be happy to talk to that, you know, and maybe just to talk about that trend. So, as we exited Q1, we talked about manpower in the? U's running at a at about minus 12, and the first quarter was the big quarter where we talked about the catch up that the? U's was seeing compared to what Europe was seeing much earlier in 2022. So that that definitely came through very strong in the first quarter, aligned with exactly what we were seeing in manufacturing P M I that we talked about in our prepared remarks as well.so, what's happened since then?

Joshua Yeah, I'd be happy to talk to that in.

And maybe just to talk about that trend. So as we exited Q1, we talked about manpower in the U S running at about minus 12 in the first quarter was the big quarter, where we talked about the catch ups that the U S. We're seeing compared to what Europe, we're seeing much earlier in 2022, so that.

That definitely came through very strong in the first quarter aligned with exactly what we were seeing in manufacturing PMI is that we talked about in our prepared remarks as well. So what's happened. Since then so ending the first quarter with manufacturing PMI.

Speaker 3: So, you know, ending the first quarter with manufacturing P M I, you know, in the high forty's we continuue to, you know, take down and we're ending here June with a 46.0. So So the manufacturing environment continues to worsen to Q2 and we see that in those trends and we did expect to see manpower to reflect that into the second quarter. So we we did.

In the high <unk>, we continue to.

Ticked down and we're ending here June with a 46.0. So so the manufacturing environment continues to worsen into Q2, and we see that in those trends and we did expect to see manpower to reflect that into the second quarter. So we did we do.

Speaker 23: We did expect to see that minus 12%, to see some additional decrease, and that that's how we ended up at the minus 17. now, with that being said, we did highlight the fact that when you look at that minus 17, it was most heaviest that the beginning of the quarter and as we ended the quarter, we were starting to see some improvement in that rate of decline.

We expect to see that minus 12% to see some additional decrease in that that's how we ended up at the minus 17 now with that being said we did highlight the fact that when you look at that minus 17. It was most heaviest at the beginning of the quarter and as we ended the quarter, we were starting to see some.

Speaker 24: So, you know, we'll see as we look forward to the third quarter. You can see from the guide for the? U's overall we're seeing, you know, for the most part, continuation of the current trends. It might be a bit better, So we might see that on the manpower side.

<unk> and that rate of decline so we'll.

We'll see as we look forward to the third quarter you can see from the guide for the US overall, what we're seeing.

For the most part.

A continuation of the current trends that it might be a bit better. So we might see that on the manpower side.

Speaker 24: But that's, that's the way we're looking at it right now and, as we did say, we are being cautious, for all the reasons that yon has talked about, with some of the dynamics that are playing out in the U's market right now. That does reflect our cautious stance going into the third quarter.

But that's.

That's the way we're looking at it right now and as we did say we are being cautious for all the reasons that Jan has talked about with some of the dynamics that are playing out in the U S market right now.

That does reflect our cautious stance going into the third quarter.

Speaker 17: Ok great Thank. Thank you all for your time and for the color.

Okay. Great. Thanks. Thank you both for your time and for the color.

Speaker 25: Thank you.

Thanks, Jeff.

Speaker 2: Thank you. Our next question comes from Jeff silver with bmmo capital markets. Your line is open.

Thank you. Our next question comes from Jeff Silber with BMO capital markets. Your line is open.

Speaker 26: So much. You talked a little bit about intracquarter trends in the U's. Can we get some similar comment on tracquarter trends in some of your other major markets?

Thanks, so much.

Talked a little bit about inter quarter trends in the U S. Can we get some similar comment on intra quarter trends in some of your other major markets.

Speaker 8: Sure Jeff I'd be happy to talk to that So if you look at.

Sure, Jeff I'd be happy to talk to that so if you look at.

Speaker 8: France, I'd say the story is, you know, biggest revenue country, relatively stable during the quarter. So and that reflects a stable trend, you know from quarter one to quarter two as well, and intr a quarter it was about. You know similar, you know about that- 1% organic days adjusted rate. May is always a a tricky months, particularly in Europe , due to the holiday, So a little lower, but I wouldn't read too much into that, I think it's mostly the holiday effect, but other than that, pretty stable, I'd say.

France I would say the story is.

Biggest revenue country relatively stable during the quarter, so and that reflects a stable trend from quarter, one to quarter, two as well on intra quarter. It was about similar about that 1% organic days adjusted rates.

As always.

Tricky month, particularly in Europe due to the holidays, so a little lower but I wouldn't read too much into that I think it's mostly the holiday effect, but other than that pretty stable.

Say.

With Italy.

Speaker 8: With Italy, I'd say similar, we saw maybe a little bit- the year over year is coming into play a little bit- where maybe may in June were a tad softer than on a days's adjusted basis, than what we saw in April , but overall I'd say generally pretty consistent. Talked about the U's and I'd say on the U K.

Say similar.

We saw.

Be a little bit year over year is coming into play a little bit where maybe may and June were a tad softer than on a days adjusted basis than what we saw in April, but overall I'd say generally pretty consistent.

<unk> talked about the U S and I'd say on the U K.

Speaker 27: You know the U K. you know on an overall basis we're coming in on a quarter over quarter very similar at that, minus 12% versus Q1. During the course of the second quarter. We did see a little bit more of a pullback in the month of June compared to that overall rates. But days had a big impact which you know. I think once you adjust for the days' element there, generally running pretty, pretty consistent.

The UK on an overall basis were coming in on a quarter over quarter very similar at that minus 12% versus Q1.

During the course of the second quarter we.

We did see a little bit more of a pullback in the month of June compared to that overall rates, but days had a big impact which.

I think once you adjust for the days element there generally running pretty consistent I'd say, so and when you look at our guide into Q3, it's really predicting more of the same for the U K. So there could be and again a bit of a cautious view it could be a slight bit better.

Speaker 8: I'd say So, and you know, when you look at our guide into Q3, it's really predicting more of the same for the U K. So there could be- and again a bit of a cautious view- it could be a slight bit better and we'll just have to see how that turns out.

And we will just have to see how that turns out.

Speaker 16: Okay that's helpful and if we can switch over to gross margins, I think you stated it was a little bit weaker than you were expectctive, but it was mostly because of the lower perm. Can we focus just on on the tenp business from a gross margin perspective? If you could talk about bill rates and spread, and I'm just curious, are you seeing any pushback on pricing, either from competitors or from clients?

Okay. That's helpful and if we can switch over to gross margin I think you stated it was a little bit weaker than you expected, but it was mostly because of lower perm can we focus just on the temp business from a gross margin perspective.

If you could talk about bill rates and spreads and I'm. Just curious are you seeing any pushback on pricing either from competitors or from clients.

Overall, Jeff I would say that pricing remains competitive.

Speaker 10: All yes, I would say that pricing remains competitive.

Speaker 15: It but rational and the overall pricing environment, as you can tell from our staffing margin, essentially holding stable, is good and I think that reflects a, you know continued, though softer still, a continued demand for our services in a tight labor markets and where companies are still looking for great, great talent and I think we are seeing that as a positive indicator of know both the quality of our service, the level of skill sets that we're placing with our clients and we feel we feel good about the pricing environment at this time.

But rational and the overall pricing environment as you can tell from our staffing margin essentially holding stable.

Is good and I think that reflects a continued although softer still have continued demand for our services in a tight labor market and where companies are still looking for.

Great talent and I think we are seeing.

That is a positive.

Indicator of both the quality of our service the level of skill sets that replacing with our clients and.

We feel we feel good about the pricing environment at this time.

Speaker 26: Ok very helpful. Thanks so much.

Okay very helpful. Thanks, so much.

Speaker 2: Thank you. Our next question comes from Toby summer with tourist Securities. Your line is open.

Thank you. Our next question comes from Tobey Sommer with two of Securities. Your line is open.

Speaker 8: Thanks in want to ask questions about your outsourcing businesses, RPO and thisp, ETC. Are you- our clients- responding from this slower economic period in the same way they have in the past to sort of look at their internal cost structures? You maybe choose to outsource more. I understand that sales may not be great right now because hiring activity is lower, but in terms of sort of the sales and revenue opportunity, maybe you could speak to that.

Thanks.

I wanted to ask a question about your outsourcing business suites.

Our MSP.

MSP et cetera.

Are you.

How are clients responding from this slower economic period in the same way they have in the past to sort of look at their internal cost structures.

And maybe choose to outsource more.

I understand that sales may not be great right now because hiring activity is lower but in terms of sort of the sales and revenue opportunity maybe you could speak to that.

Speaker 4: Well I think what. What tends to happen is when, when things are going well for a long time companies, you know, consider in sourcing and taking things back in house, and then you have an economic cycle that that evolves and all of the recruiters they thought they needed for their own needs suddenly you know our own lot less productive, and that is clearly the value proposition that our our P offering addresses.

Well I think what tends to happen is when when things are going well for a long time companies consider in sourcing and taking things back in house and then you have an economic cycle that that's evolves and all of the recruiters they thought they needed for their own needs.

Suddenly.

Or a lot less productive and that is clearly the value propositions at our RP offering addresses so whilst we're seeing the activity today.

Speaker 10: So, whilst we're seeing the activity today getting impacted by the hiring levels from a recruitment side, on the on the R P side, from a business model and value proposition perspective, we feel very good about the opportunities that we have in our P, because when hiring starts up again and you need to increase your recruiters from 10 to 100, you know we can do that very, very quickly and our customers appreciate the flexibility- both operational and strategic flexibility- that provides to them, you know, in one particular country or, in the our case, across the world to one organization.

Getting impacted by the hiring levels from the permanent recruitment side on the on the Rps side from the business model and value proposition perspective, we feel very good about the opportunities that we have in RPM, because when hiring starts up again and you need to increase.

<unk> your recruiters from 10 to 100, we can do that very very quickly and our customers appreciate the flexibility both operational and strategic flexibility that provides to them in one particular country or in our case across the world to one organization and really the <unk>.

Speaker 10: And really the same is true from an M's D perspective. We feel very good about our offering there and the evolution that we've seen with our clients in our M's P business isreally.

And that's true from an MSP perspective, we feel very good about our offering there and the evolution that we've seen with our clients in our MSP business is really the in the <unk>.

Speaker 10: The the value of the insights that we.

Value of the insights that we derive from the significant data sets that we look at and advise our clients on how they should think about their workforce and if you look at the expansion of our offerings beyond temporary staffing or it resourcing into statement of work.

Speaker 5: Derive from the significant data sets that we look at and advise our clients on how they should think about their workforce. And if you look at the expansion of our offerings, you know beyond temporary staffing or I resourcing into statement of work and you know beyond from their. You can really see that our clients are leaning into this offering and we are able to expand our products and services that we provide within the M's P umbrella.

And.

Beyond from there.

Can really see that our clients are leaning.

Into this offering and we are able to expand our products and services that we provide within the MSP umbrella. So in both of these cases, we feel really good that we can address non core activities for many corporations in a better way than they can themselves and that we provide them with the op.

Speaker 10: So in both of these cases we feel really good that we can address noncore activities for many corporations in a better way than they can themselves and that we provide them with the operational and strategic flexibility to boot. So it is a tougher time for the R P business today, as we would expect, but we feel really good about the opportunity, does not, that lies ahead once the market stabilize and starts to go the other way.

Operational and strategic flexibility to boot so.

Is a tougher time for the <unk> business to date as we would expect but we feel really good about the opportunity.

Lies ahead once the market stabilizes and starts to go the other way.

Speaker 8: And if I could ask a question about right management, what do your most forward-looking KPIs tell you and how do they inform you on the risk of further or more widespread layoffs?

If I could ask a question about right management whats your.

Most forward looking kpis.

Are you and how did they inform you on.

The risk.

Further a more widespread.

<unk>.

Speaker 5: I would say that the current time, the industry verticals that we're seeing pressure on from an enterprise perspective, in our experience and manpower, are the same industry verticals where we're seeing the opportunities in right management. So I would not characterize our outplacement business to be strong because of broad based layouoffs. That is not the case.

I would say that at the current time the industry verticals that we're seeing pressure on from an enterprise perspective in our experienced and in manpower or the same industry verticals, where we're seeing the opportunities in right management, So I would not characterize our.

<unk> placement business to be strong because of raw debased layoffs that is not the case. It is industry specific it is in certain geographies and that is what we're seeing from our right management business and remember that last year amongst the hiring boom Mrs.

Speaker 10: It is industry specific, it is in certain geographies and that is what we're seeing from a right management business. And remember that last year amongst the hiring boom is of course, also know when we saw very low right management outplacement activity. So you, the strength that we're seeing today is really from the same sectors that are feeling the pressure on the enterprise side from emppower and experience, notably in the U's and the U K, but it's not broad based.

This of course also when we sold very low right management outplacement activity. So.

The strength that we're seeing today is really from the same sectors that are feeling the pressure on the enterprise side from empower and experienced notably in the U S and the UK, but it's not broad based.

Speaker 28: Thank you.

Thank you.

Speaker 2: Our next question. Comfort comes from ktek meta with North Coast research. Your line is open.

Our next question comes from it comes from Kartik Mehta with Northcoast Research. Your line is open.

Speaker 29: Good morning. I think you obviously talked about kind of pricing what, what it's doing now and it seems to be behaving. Everybody seems to be behaving fairly well. I'm wondering, when you look at previous downturns or previous contraction, when does pricing become an issue? Do do, do you see your competitors waiting until we're fairly into the contraction?

Hey, good morning, I think you, obviously talked about kind of pricing.

It's doing now and it seems to be behaving everybody seems to be behaving fairly well I'm wondering when you look at previous downturns.

Previous contractions.

When does pricing become an issue do do you see your competitors waiting until we're fairly into the contraction.

I'm just wondering how in the past it's played out.

Speaker 3: I'm just wondering how, in the past, it's played out.

Speaker 5: But I think it very much depends on the depth of any economic cycle and you know as we mentioned early on in this call as well as in our last quarter call all of the data that we're looking at inside our company on the industry data is indicative of a but we will characterize as a Garden variety recession but you know we're not economists it could be a technical recession it could be an economics sload on whatever it is our industry is operating at a moderate economic downturn level and if you combine that with very strong and resilient labor markets that so far haven't shown.

Well I think it very much depends on the depth of any economic cycle and as I as I as we mentioned early on in this call as well as in our last quarter call. All of the data that we're looking at inside our company on the industry data is indicative of a what we would characterize.

<unk> is a garden variety recession, but you know we're not economists it could be a technical recession. It could be an economic slowdown whatever it is our industry is operating at a moderate economic downturn level and if you combine that with very strong and resilient labor markets that so.

Far havent shown any sign from a broad perspective of softening in a material way, we feel very good about our ability to maintain price.

Speaker 30: Any sign.

Speaker 15: From a broad perspective of softening in a material way. You know we feel very good about our ability to maintain pricing levels because access to talent is so important and labor markets are tight and talent shortages about and you know, if there was a deeper recession, that would of course, be a time when you could think about whether, you know, pricing would be impacted.

<unk> levels, because access to talent is so important and labor markets are tight and talent shortages abound.

And if there was a deeper recession that would of course be a time when you could think about whether pricing would be impacted as the market would contract significantly and then competitors would try to maintain share and compete.

Speaker 15: As you know, the market would contract significantly and then competitors would try to maintain share and compete on price. But we're certainly not seeing that today. The fundamental drivers of the strength of the labor market, if you look at demographics, if you look at technological change, if you look at our move up into higher skill sets, both in experience and in manpower, through our specialization initiatives, you know tend to.

On price.

But we're certainly not seeing that today, but the fundamental drivers of the strength of the labor market. If you look at demographics. If you look at technological change if you look at our move up into higher skill sets both in experience and in manpower through our specialization initiatives.

Speaker 15: You know, go for profiles that are.

Tend to.

Gulfport profiles that are in demand today and will be an even greater demand into the future and that should provide us with additional pricing strength that could offset any other any other pricing pressure, but at this point as I mentioned earlier, we believe.

Speaker 15: In demand today and will be an even greater demand into the future, and that should provide us with additional pricing strength that could offset any any other pricing pressure. But at this point, as I mentioned earlier, we believe that pricing is rational, but it is always a very competitive market, So we are competing for every deal, but the overall demand is still positive from a pricing perspective.

That pricing is rational but it is always a very competitive market. So we are competing for every deal.

The overall demand is still positive, but from a pricing perspective.

Speaker 29: And then Jack on the French business tax. I think when we've talked in past or you data that kind of the NE data point is September of this year. Is that still accurate or has anything changed for that?

And then Jack on the French business tax I think when we've talked in past you stated that kind of the next data point is September of this year is that still accurate or has anything changed.

For that.

Speaker 24: Yes Carter, take. Yeah, that's still accurate. I think at this point, and when we see that plliminary budget for next year- that usually comes out mid-september- that's what we expect to see: more, more color. We do know that President mccrone continues to have very strong feelings that the French business tax, the repeal of the French business tax- this final component is very important to the future of the competitiveness of France.

Yes, Kartik, yeah, that's still accurate I think at this point and when we see the preliminary budget.

For next year that usually comes out mid September that's when we expect to see more more color, we do know that president mccrone.

Continues to have very strong feelings that the French business tax the repeal of the French business tax. This final component is very important to the future of the competitiveness of France.

Speaker 8: So that makes us feel good that there's a know, very good chance that that will go through as planned. But we really WOn't know until you know to confirm it, until we see it in the preliminary budget, and so we'll know in a couple ofmonths and, as we said before, when that happens, that that is a significant benefit for us. That will improve our global effective rate by another one and a half percent downward.

So that makes us feel good that there's a very good chance that that will go through as planned, but we really won't know until.

To confirm it until we see it in the preliminary budget and so we'll know in a couple of months and as we said before when that happens that that is a significant benefit for us that will improve our global effective rate.

By another one 5% downward so we're looking forward to that and look forward to giving an update on that on our next earnings call.

Speaker 8: So we're looking forward to that and look forward to giving an update on that on our next earnings call.

Speaker 29: orc. Thank you very much, appreciate it.

Perfect. Thank you very much appreciate it.

Speaker 2: Thank you. Our next question comes from Stephanie o with jefffriy, your line is OP.

Thank you. Our next question comes from Stephanie more with Jefferies. Your line is open.

Speaker 31: Hi good morning, Thank you. Im hoping you to talk a little bit about what you're saying, saying in your Asia Pacific segment, or Asia pacific- Middle East.

Hi, Good morning. Thank you I was wondering if you could talk a little bit about what youre seeing in your Asia Pacific segment, Our Asia Pacific Middle East seems to be one area where.

Speaker 31: To be, you know, one area of where this a little bit more strength compared to your other region. So any color there would be helpful. Thank you.

Or are they still a little bit more strength comparing that to other region. So any color there would be helpful. Thank you.

Speaker 10: Yes sure, Stephanie. Yet we're seeing some strength both in Asia, Pac and also in latinum.

Yes, sure Stephanie Yes, we're seeing some strength both in Asia Pac and also in Latin America and they they are regions, where we have very strong market positions.

Speaker 5: America. they- they are regions where we have very strong market positions. The labor markets are also resilient in those in those areas and if we specifically talked about asia- Pacific, in Japan, our business there has just concluded the 30 fifth consecutive quarter of strong growth. We feel very good about our Japanese business and the next two businesses in terms of size- India and australia- are also performing well.

Labor markets are also resilient.

In those in those areas and if we specifically talked about Asia Pacific and in Japan. Our business. There has just concluded the 35th consecutive quarter of strong growth, we feel very good about our Japanese business and the next two businesses in terms of size IND.

And Australia are also performing well, we're rebalancing our client mix.

Speaker 15: We're rebalancing our client mix there to some degree, but we are seeing good profitability levels there in those marketts, So we feel very good about our footprint.

They are to some degree, but we are seeing.

Good profitability levels there in those markets. So we feel very good about our footprint in Asia Pac and frankly also in Latin America, where we have very strong positions in markets that are demographically strong. They are great locations for near shoring as it relates to North American activity.

Speaker 15: In Asia, Pac and frankly, also in Latin America, where we have very strong positions in markets that are Demographically strong. They are great locations for near shoring as it relates to North America activities and of course Asia, and IA in particular, has a, you know, a very strong position in terms of it resources, both onshore but also offshore resources that we benefit from from an experienced perspective.

And of course, Asia, and India in particular has a.

Very strong position in terms of.

Resources, both onshore, but also offshore resources that we benefit from from an experience perspective. So we're very pleased with the performance.

Speaker 5: So we're very pleased with the performance that we have in Asia, Pac and in Latin America, given given the broader picture.

We have in in Asia Pac and in Latin America, given given the broader picture.

Speaker 8: sephanie. I would just add on the guide for apme. You can see on the revenue side, based on what onus mentioned and some of the mix related changes we're making in some of the tighter margin staffing margin countries like India and Australia, that's impacting the revenue trend but the bottom line is still very strong for apme and we expect that to continue and be a stable contributor on OP dollars into the third quarter.

Stephanie I would just add on the guide for <unk> you can see on the revenue side based on what Jonas mentioned in some of the.

Mix related changes, we're making and some of the tighter margin staffing margin countries like India and Australia.

That's impacting the revenue trend, but the bottom line is still very strong for <unk> and we expect that to continue to be a stable contributor on OUP dollars into the third quarter.

Speaker 31: Great Thank you. And then, just lastly for me, you know, as you look at your, your third quarter outlook, could you may be talking a little bit about some of the putip and tags embeddive within your, your gross margin guidance.

Great. Thank you and then just lastly for me as you look at your.

Third quarter outlook could you maybe talk a little bit about some of the puts and.

It takes embedded within your gross margin guidance.

Speaker 8: You know I'd be happy to Stef A. I think it's actually pretty straightforward when you consider what happened in the second quarter. So you know, I think in our prepared comments and then our walk you can see that perm recruitments really was the big you the big- swing factor in the second quarter. So perm, you know, came off a bit more then we expected in the second quarter.

Yes, I'd be happy to Stephanie So I think it's actually pretty straightforward when you consider what happened in the second quarter. So I think.

Our prepared comments and in our walk you can see that.

<unk> recruitment really was the big.

The big swing factor in the second quarter, So perm.

It came off a bit more than we expected in the second quarter. That's why we had a bit more pressure on the GP margin.

Speaker 24: That's why we had a bit more pressure on the G? P margin. With that being said, you know 17.8, you know is still holding up fairly well in the current environment. So down 40 bits going into the third quarter. It's really that continuation of perm. So you know, we are taking a bit of a cautious stance, anticipating that perm came off a little bit more than we expected in Q2.

With that being said 17.8.

It's still.

Holding up fairly well in the current environment, So down 40 bps going into.

The third quarter, it's really that continuation of Perm. So we are taking a bit of a cautious stance anticipating that perm came off a little bit more than we expected in Q2. So we're anticipating that perm is going to continue to come off a bit more into Q3, that's really what's driving the <unk>.

Speaker 24: So we're anticipating the perm's going to continue to come off a bit more into Q3. That's really what's driving the margin change. So sequentially we go from that 17.8 to 17.4 at the midpoint and that really is just perm continuing to run off. We can, you know, just based on a conversation we just had and you gave a lot of color on staffing margin.

Margin change so sequentially. We go from that 17.8 to $17 four at the midpoint and that really is just perm continuing to run off we can just based on our conversation. We just had in units gave a lot of color on staffing margin staffing margin is continuing to <unk>.

Speaker 24: Staffing margin is continuing to hold up very well and that is in our forecast for the for the third quarter. And I think that the one item that's been helpful to offset the pressure on perm is right management. So we are seeing that you can see, in the G? P bridge and we expect right management to continue to have positive trends into the third quarter as well, which will help offset, partially offset, some of that perm pressure that we're anticipating.

Up very well and that is in our forecast for the for the third quarter and I think that the one item that's been helpful to offset the pressure on Perm is right management. So we are saying that you can see it in the GP bridge and we expect bright management to continue to have positive trends into the third quarter, as well, which will help offset partially.

Up very well and that is in our forecast for the for the third quarter and I think that the one item that's been helpful to offset the pressure on Perm is right management. So we are saying that you can see it in the GP bridge and we expect bright management to continue to have positive trends into the third quarter, as well, which will help offset partially.

We offset some of that perm pressure that we're anticipating.

Speaker 31: Great okay, Thank you so much.

Great. Okay. Thank you so much.

Speaker 32: Yeah.

Speaker 2: Thank you. Our next question comes from the offv patnick with barcly, your line is open.

Thank you. Our next question comes from Manav Patnaik with Barclays. Your line is open.

Speaker 33: Hi this is princely thomason for Mona. Thanks for taking my question.

Hi, This is principally Thomas on for Manav. Thanks for taking my question.

Speaker 33: Can you assess where you are in regards to the investments made to date around digital?

Can you assess where you are in regards to the investments made to date around digitization and the impact on the business and what's to come specifically I know power suite cloud back office as opposed to accelerate growth and productivity. We wanted to just get them against those impacts around <unk>.

Speaker 33: The impact on the business and what's to come.

Speaker 33: Specifically I know power sweet cloud back office.

Speaker 33: Supposed to accelerate growth and productivity.

Speaker 33: We want to just get ideas of impacts around jai and how MAN is positioned to benefit.

In AI and how man is positioned to benefit with the new human each lab.

Speaker 33: That with the new human lab.

Speaker 10: Sure as we mentioned our prepared remarks towards the end of this year we will have substantially all of our major markets on our global power suite platform and so where that brings in digitizations strategy is that we have common websites across the world in all of our major markets we have the same front office platform in all of our major markets we're working on back office cloud enabled applications as well so that we are creaking a global back office infrastructure also and you know those are investments that we've been making over a number of the years and the implementations of gone very well it's difficult in the this business where you operating so many different countries and operating environments to implemented one application suite that is then being deployed at scale we feel very good about the work that we've done here but most importantly we feel very good about the opportunities that this gives us both to generate data and ininsightites to drive accelerated innovation but driving growth initiatives as well as driving productivity through recruit efficiions and having the best best of tools for our recruiters on our front line people should really give us some very good growth opportunities going forward but Jack maybe you want to a little bit more colorin terms of the size of theinvestments and where we are in the cycle of those investments be happy to Prince I would say we we feel really good about how those investments are paying off for us so far So you know there is we've been talking about the frt office implementation for the last couple years in those markets where we've implemented early we then move into adoption of the recruiters're we look at the adoption CA the eyes and we feel really good about the progress we're making and we know that's going to increase we know that's going to increase our recruiter productvity and we're seeing thatin themarke where we've implemented early So So we feel good about the return on that investment you'll see that clearly in a more pronounce way when we get more operational volume in operational leverage back into the business and you know typically as as you said on front ice we're at the very and of that process by the end of 2023 with you know 75% majority of our business on that front office system as we look at across we're also doing implementations and other parts of the business the back office is something you've heard me talk about in the past as well another cloud enabled industry leading platform that we're in the process of putting in gone live on five countries we continue very phase rollouts there and we feel really good about the additional efficiency that that's going to give us into the future as well so that we'll continue for this year and and we're going to move more from the front office to more waves of back office which will continue through 24 twenty five and we'll start to see the benefit of that really come through nicely and our operational efficiency as we get into 24 and move forward in you'll see it in front office more immediately but you'll see it in the back office metrics as we move four from the endoftwenty four into twenty five So a little color on timing there and.

Sure Yeah, no as we mentioned in our prepared remarks towards the end of this year, we will have substantially all of our major markets on our global power suite platform.

And so where that brings us in our Digitization strategy is that we have.

And then web sites across the world in all of our major markets. We have the same front office platform in all of our major markets. We are working on back office cloud enabled.

Applications as well so that we are creating a global back office infrastructure also and those are investments that we've been making over a number of years and the implementations have gone very well it's difficult in the service business, where you're operating so many different countries.

Fees and operating environments to implement one application suite that has been being deployed at scale and we.

We feel very good about the work that we've done here, but most importantly, we feel very good about the opportunities that this gives us both to generate data and insights to drive accelerated innovation, but driving growth initiatives as well as driving productivity through recruiter.

Efficiency in having the best of best of breed tools for our recruiters and our frontline people should really gave us some very good growth opportunities going forward, but Jack maybe you want to get a little bit more color in terms of the size of the investments and where we are in the cycle of those investments, yes, no it we'd be happy to.

Yeah, principally I would say, we feel really good about.

How those investments are paying off for us so far so.

There is we've been talking about the front office implementation for the last couple of years in those markets, where we've implemented early.

We then move into adoption of the recruiters, where we look at the adoption Kpis and we feel really good about the progress, we're making and we know thats going to increase.

We know that's going to increase our recruiter productivity and we're seeing that in the markets, where we've implemented early so so we feel good about the return on that investment you'll see that clearly in a more pronounced way when we get more operational volume and operational leverage back into the business.

And typically as Jonas said on that front office, where we're at the very end of that process by the end of 2023 with 75% majority of our business on that front office system.

As we look at our price. We're also doing implementations in other parts of the business. The back office is something you've heard me talk about in the past as well.

Another cloud enabled industry, leading platform that we're in the process of putting in gone live on five countries. We continue very phased rollouts, there and we feel really good about the additional efficiency that that's going to give us into the future as well. So that will continue for this year end and we're going to move.

More from the front office to more.

<unk> a back office, which will continue through 'twenty four 'twenty five and we'll start to see the benefit of that really come through nicely in our operational efficiency as we get into 'twenty four and <unk>.

Move forward and you'll see it in our front office more immediately but youll see it in the back office metrics as we move more from the end of 2014 to 25, so a little color on timing there.

And.

Speaker 24: I think that covers the main area that you were looking for.

I think that covers the main area that you were looking for.

Speaker 33: Yes it does, Thank you. And then for my follow-up, can you provide what you're seeing is?

Yes. It does thank you and then for my follow up can you provide what youre seeing is them key puts and takes for your regional performance and outlook, specifically, France, but can you also impact by month for the quarter and what you've been seeing for the first three weeks of July.

Speaker 33: Keep puts and takes for your regional performance and outlooks.

Speaker 33: France. But can you also impact by month for the quarter and what you've been seeing for the first three weeks of July ?

Speaker 8: Yes you know. So what I'd say Prince, we're a little short on time. We're actually trying to get to a couple other quick questions. What I would say is- I think I talked to the a quarter previously from one of the earlier questions and we covered that off, I think, in terms of the guide overall, I think the main takeaway is, you know, pretty consistent from a revenue trend perspective.

Yeah, So what I would say Prince you were a little short on time, we're actually trying to get to a couple of other quick questions. What I would say is I think I talked to the intra quarter previously from one of the earlier questions and we cover that off I think in terms of the guide overall.

I think the main takeaway is.

Pretty consistent from a revenue trend perspective, we've talked about that organic days adjusted trend into Q3 being minus three and a half.

Speaker 24: We talked about that organic days adjusted trend into Q3 being a through minus three and a half, pretty much in line with what we just saw. Really, what that reflects is, you know the, the adjustment for Q2 for the? U's market trend and the improvement in France from what we guided in Q2 continuing into the third quarter. So stable trend for the most part across a lot of our major markets and again, you know we were cautious in that outlook.

Pretty much in line with what we just saw really what that reflects is.

The adjustment for Q2 for the U S market trend and the improvement.

In France from what we guided in Q2, continuing into the third quarter. So stable trends for the most part across a lot of our major markets and again, we were cautious in that outlook. So I would say that's the main main item I think as you think about the third quarter to your last point as we do.

Speaker 24: So I would say that's the main main item I think, as you think about the third quarter to your last point is: we do know in Europe August is always a lower activity month with the holidays and we anticipate- you know coming out of August into September is always a bit difficult to predict depending on how Europe comes back from the holidays- from a Manu facturing perspe expective.

No in Europe August is always a lower activity month with the holidays.

And we anticipate coming out of August into September is always a bit difficult to predict depending on how Europe comes back from the holidays from a manufacturing perspective, but right now we're anticipating ongoing stability.

Speaker 3: But right now we're anticipating ongoing stability in that guide, again being cautious on an overall basis. But that's a little more color on what we're expecting into the third quarter. Thanks, Thank you.

In that guide again being cautious on an overall basis, but that's a little more color on what we're expecting into the third quarter. Thanks.

Thank you.

Speaker 2: Thank you. Our next question comes from Andrew sinerman. With JP Morgan, your line is open.

Thank you. Our next question comes from Andrew Steinman with J P. Morgan Your line is open.

Speaker 31: higood morning. This is stephaniee steaffing in for Andrew. I wanted to clarify your comments earlier about the staffing industry already being in a Garden variety recession. I want to clarify whether you're speaking just to perm activity as opposed to temporary staffing, because temporary stfing hours are down but pricing, as you mentioned earlier, is still holding up very well, So it's supporting the overall revenue growth, I guess, for the industry and Board manpowerers.

Hi, Good morning. This is Stephanie <unk> stepping in for Andrew.

I wanted to clarify your comments earlier about the staffing industry already been in a garden variety recession.

I just wanted to clarify whether you're speaking just to perm activity as opposed to temporary staffing because temporary staffing hours are down but pricing as Hugh mentioned earlier is still holding up very well. So it's supporting the overall revenue growth I guess point the industry and for manpower.

Speaker 31: So just clarity on whether temporary staffing is also in what you would characterize as a Garden variety of recession at this point.

So just.

Clarity on what their temporary staffing is also.

You would characterize as a garden variety recession at this point.

Speaker 10: You know I would say that jitimmy statement was was related to the TEM data that she.

Yes, I would say that my statement was related to the 10th data that you see from prison in France. The U S. The UK Netherlands, Sweden.

Speaker 5: From prison in France. The U's the U.

Speaker 10: anetherlands, Sweden.

Speaker 5: Know there are very few markets that you can point in Europe and in the U's where you not seeing as operate in a much softer environment, which would be, you know, the equivalent of what we, in the pastlast, would have expected to see in this Garden variety recession description that then I'm using just to give you a sense of a more shallow economic cycle, that what we've seen in the last to recessions one generated by the pandemic, short lived and driven by a pandemic, and the other one obviously being the great recession, but in the past, you know, when we've seen, you know, shorter or shallow economic cycle downturns, you know these, these levels of activities that the industry data is reflecting for temporary staffing, would be would, would be equivalent to what was then eventually a Garden variety recession, if you allow me that that that term and the sorry for the lack of precision on what exactly a Garden variety recession is, but it is.

There are very few markets that you can point that in Europe and in the U S.

Were you not seeing us operate in a much softer environment, which would be the.

Equivalent to what we in the past.

Would have expected to see in this garden variety recession description that I'll.

Then I'm using just to give you a sense of a more shallow economic cycle than what we've seen in the last two.

Recessions, one generated by the pandemic short lived and driven by <unk> and the other one obviously being the great recession, but in the past when we've seen shorter or shallower economic cycle downturns.

These these levels of activities that the industry data is reflecting for temporary staffing.

Would be with what would be <unk>.

Quiver linked to what was then eventually a garden variety recession. If you allow me that that that term and sorry for the lack of precision on what exactly a garden variety recession is but.

Speaker 10: It is shallow than what we've seen in the last, in the last couple of recessions, but at that way.

But it is it is shallower than what we've seen in the last in the last couple of recessions put it that way.

Speaker 33: Ok okay, I appreciate that. I'm sorry just to take that, maybe just extrapolate it step further. So the U's economy, for example, is- I guess we wouldn't necessarily characterize that as being in the garden- variety of recession- and because the labor market, the unemployment rate, is still very low. So if the economy, or in a recession, safe to say that the staffing industry would see probably further decoine.

Okay. Okay, I appreciate that and sorry that maybe just.

Extrapolate it's that further so the U S economy for example, or I guess, we weren't necessarily characterize that as being in a garden variety recession, because the labor market. The unemployment rate is now very low.

And so as the economy.

Recession.

To state that the staffing industry would see probably part there.

Fine.

Speaker 5: Well as you know, our industry tends to be a leading indicator of what is then to come, that we are often concurrent to an economic cycle we later on find out was in fact economic slowdown, although not and apparent as it is. The the, the statistics and all of the rest are lagging the economy. So, and so our labour markets for that matter. But I think, your point being that you we, are seeing a strong, a strong and labour strong, resilient labour market, is exactly the reason why we would expect, for instance, per could to come down a little bit further, because that strong labour market is, in many markets, one of the contributing factors to continue high inflation.

Well as you know our.

Industry tends to be a leading indicator of what is then to come in we are often concurrent to an economic cycle. The late draw to find out was in fact a.

The economic slowdown, although not apparent as it is.

The account.

Statistics and all of the rest are lagging the.

Hanmi, so and so our labor markets for that matter, but I think your point being is that we are seeing a strong brought a strong and labor with strong resilient labor market.

<unk> is exactly the reason why we would expect for instance, perm recruitment to come down a little bit further because that strong the labor market is in many markets. One of the contributing factors to continued high inflation. So we would expect late but the broader labor market eventually to reflect what we as a temporary staff.

Speaker 5: So we would expect labour, the broader labour market, eventually to reflect what we, as a temporary staffing industry, are seeing in euro and Europe , just as we would in any normal sector. And then ultimately, we would also expect our industry to rebound before the labour market then generally rebounds, because we are also a leading indicator of a rebound.

Nothing industry are seeing in U S and Europe, just as we would in any normal sector and then ultimately we would also expect our industry to rebound before the.

The labor market than generally rebounds, because we are also a leading indicator of a rebound. So that's how we that's how we're thinking about it and I hope I hope I've managed to clarify.

Speaker 4: So that's how we, that's how we're thinking about it, and I hope- I hope I managed to clarify our seeing it from our business perspective.

Sure.

<unk>, how we're seeing it from our business perspective.

Speaker 31: Yes that's very good. Thank you very much.

Yes.

Very good thank you very much.

Speaker 34: Thank you.

Thank you.

Speaker 2: Thank you. That's all the time we have for questions today. Thank you for your participation. This does include the program and you may now disconnect everyone. Have a great day.

Thank you that's all the time, we have for questions. Today. Thank you for your participation. This does conclude the program and you may now disconnect everyone have a great day.

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Speaker 2: Welcome to manpower group's second quarter earnings results conference call. You'll be put into listen only mode until the question-and-answer time begins. This call is being recorded. If you care to drop off now, please do so. I would like to turn the call over to manpower group's Chairman and CEO , joionus bcing. Sir, you may begin.

Welcome to manpower group second quarter earnings results conference call Youll be put into listen only mode until the question and answer time begin. This call is being recorded if you care to drop off now please do so.

I would like to turn the call over to manpower groups, Chairman and CEO Jonas Prising, Sir you may begin.

Speaker 5: Welcome to the second quarter conference call for 2020 -three.

Welcome to the second quarter conference call for 2023.

Speaker 5: Our Chief Financial Officer, Jack mcinnis, is with me today for your comedience. We've included our prepared remarks within the Investor Relations section of our website at manpag group com.

Chief Financial Officer, Jack Mcginnis is with me today for your convenience. We have included our prepared remarks within the Investor Relations section of our website at manpower group Dotcom.

Speaker 5: I will start by going through some of the highlights of the quarter. Jack will go through the second quarter: results and guidance for the third quarter of 2020 -three.

We'll start by going through some of the highlights of the quarter. Jack will go through the second quarter results and guidance for the third quarter of 2023, I will then share some concluding thoughts before we start our Q&A session and Jack will now cover the Safe Harbor language.

Speaker 5: I will then share some concluding thoughts before we start our qa session, and Jack will not cover the safe harbor language.

Speaker 24: Good morning everyone. This conference call includes forward-looking statements, including statements concerning economic and geopolitical uncertainty, which are subject to known and unknown risks and uncertainties.

Good morning, everyone. This conference call includes forward looking statements, including statements concerning economic and geopolitical uncertainties, which are subject to known and unknown risks and uncertainties. These statements are based on management's current expectations or beliefs actual results might differ materially from those projected in the forward looking statements, we assume no obligation to update or revise any forward looking.

Speaker 8: These statements are based on management's current expectations or beliefs. Actual results might differ materially from those projected in the forward-looking statements.

Speaker 3: We assume no obligation to update or revise any forward-looking statements.

Statements.

Speaker 3: Slide two of our earnings release presentation further identifies forward-looking statements made in this call and factors that may cause our actual results to differ materially, and information regarding reconciliation of non-GAAP measures.

Slide two of our earnings release presentation. Further identifies forward looking statements made in this call and factors that may cause our actual results to differ materially and information regarding reconciliation of non-GAAP measures.

Speaker 36: Thank Jack.

Thanks Jack.

Speaker 5: Just back from trips to Europe , which included devoc- one of the world's largest technology and start-up events, in Paris, where we were a key partner for the seventh year, showcasing our innovation and workforce expertise in our new human age lab.

Just back from trips to Europe, which included Vivat Tech one of the world's largest technology and startup events in Paris, where we were a key partner for the seventh year showcasing our innovation and workforce expertise in our new human age lab.

Speaker 5: Advancement of generary theeye and the impact on skills and jobs was a hard topic.

The advancement of generative AI and the impact on skills and jobs was a hot topic.

Speaker 3: Up henor ws and media interviews led me to reflect that we first discussed the impact of automation on jobs almost 10 years ago at the world economic forum, and our data and experience tell us, then as now, that human capital augmented by tech is what will accelerate progress. Companies that automate and digitize the most see the biggest productivity improvements and create the most jobs.

Hunter roles in media interviews led me to reflect that we first discussed the impact of automation on jobs, almost 10 years ago at the World Economic Forum and our data and experience tell US then as now that human capital augmented by Tech is what will accelerate progress companies that automate and digitize them.

Most see the biggest productivity improvements and create the most jobs and.

Speaker 15: And the biggest challenge WOn't be the elimination of jobs. It will be the need for new work-for skill sets at the speed and scale never seen before.

And the biggest challenge won't be the elimination of jobs. It will be the need for new work for skill sets at the speed and scale never seen before.

Speaker 5: Reflecting on global labor markets and the economic environment although we continuue to see labor markets demonstrate resilience around the world with continued low unemployment in many markets.

Reflecting on global labor markets and the economic environment, Although we continue to see labor markets demonstrate resilience around the world with <unk>.

<unk> low unemployment in many markets.

Speaker 15: Some signs of broader economic pressures are emerging.

Some signs of broader economic pressures are emerging.

Speaker 5: As I mentioned last quarter, we're seeing slower hiring trends across the Board, with particular impacts in certain sectors. In the U's and Europe , large tech enterprise companies have continued to substantially reduce headcounts, a trend that began in late 2022. We're also tracking softer commercial staffing demand due to decreas production in some manufacturing.

As I mentioned last quarter, we're seeing slower hiring trends across the board with particular impacts in certain sectors in the U S and Europe large tech enterprise companies have continued to substantially reduce head counts a trend that began in late 2022. We're also tracking softer commercial staffing demand due to decreased.

Production and some manufacturing activities.

Speaker 5: Our most recent MRO group employment outlook survey of four thousand employers in 30 -plus countries, conducted in the spring. frundt companies plan more measured hiring for Q3 as they navigate a range of local and macro challenges, from supply constraints to uneven consumer confidence and shifting purchasing priorities amid continued high inflation.

Our most recent manpower group employment outlook survey of 40000 employers in 30 plus countries conducted in the spring fund companies plan more measured hiring for Q3 as they navigate a range of local and macro challenges from supply constraints to uneven consumer confidence and shifting purchasing.

<unk> amid continued high inflation.

Speaker 5: Many labor markets and other economic data points often lagged the cautious employer trends that impact our industry first.

Many labor markets and other economic data points, often lag the cautious employee trends that impact our industry.

Speaker 5: And in this environment we saw mixed demand for staffing and weakened demand for permanent recruitment services in the? U's and Europe . At the same time, we continue to see growth in LatAm and apme, with ongoing demand for our services.

And in this environment, we saw mixed demand for staffing and weakened demand for permanent recruitment services in the U S and Europe.

At the same time, we continue to see growth in Latam and APAC with ongoing demand for our services.

Speaker 3: Moving on to our financial results, in the second quarter, revenue was $4.9 billion down 3% year-over, -year, in counant currency.

Moving onto our financial results in the second quarter revenue was $4 9 billion down 3% year over year in constant currency.

Speaker 5: A reported EBITA for the quarter was $116 million.

Our reported EBITDA for the quarter was $116 million.

Speaker 3: Adjusting for restructuring and Argentina hyper inflation in reforeign exchange charges. Ebitda was $131 million, representing a 31% decrease in constant currency year-over-year.

Adjusting for restructuring in Argentina, Hyperinflationary foreign exchange charges.

<unk> was $131 million.

Representing a 31% decrease in constant currency year over year.

Speaker 5: Reported abbita margin was 2% and adjusted aebita margin was 3%.

Reported EBITA margin was two 4% and adjusted EBITA margin was two 7%.

Speaker 3: Earnings per diluted share was $1 29 cents on a reported basis and $1 58 cents on an adjusted basis.

Earnings per diluted share was $1 29 on a reported basis and $1 58 on an adjusted basis.

Speaker 3: Adjusted earnings per share were down 31% year-over-year in constant currency.

Adjusted earnings per share were down 31% year over year in constant currency.

Speaker 3: Although uncertainty may persist from my conversations with clients that are teams in many countries.

Although uncertainty may persist for my conversations with clients and our teams in many countries. It is clear that people with specific skill sets continues to be in demand and that human capital is and will continue to be a key driver of corporate success with employers focused on holding onto the talent base.

Speaker 5: It is clear that people the specific skill sets continue to be in demand.

Speaker 5: And the humanman capital is, and will continue to be, a key driver of corporate success, with employers focused on holding on to the talent they struggglle to recruit in the last couple of years.

Struggled to recruit in the last couple of years.

Speaker 3: The progress we have made to meet this demand by diversifying our business across our brands, offerings and geographies will continue to serve us well. Our progress in creating talented scale through our MyPath and experience acadeting initiatives provide competitive strength as we create the scare skills our clients are looking for in the talent they need.

The progress we have made to meet this demand by diversifying our business across our brands offerings and geographies will continue to serve as well.

Yes in creating talent at scale through our my path and experience Academy initiatives provide competitive strength as we create the scare skills. Our clients are looking for in the talent they need.

Speaker 7: I'll now turn it over to Jack to take you through the results.

I'll now turn it over to Jack to take you through the results.

Speaker 24: Thanks Jonas. Revenues in the second quarter came in at the midpoint of our constant currency guidance range.

Thanks, Jonas revenues in the second quarter came in at the midpoint of our constant currency guidance range.

Speaker 24: Gross profit margin came in just below our guidance range due to lower permanent recruitment activity.

Gross profit margin came in just below our guidance range due to lower permanent recruitment activity.

Speaker 5: As adjusted EBITDA was 131 million, representing a 31% decrease in constant currency compared to the prior year period.

Adjusted EBITDA was $131 million, representing a 31% decrease in constant currency compared to the prior year period.

Speaker 5: As adjusted EBITDA margin was 3% and came in at the low end of our guidance range, representing 110 basis points of decline year-over-year.

As adjusted EBITDA margin was two 7% and came in at the low end of our guidance range, representing a 110 basis points of decline year over year.

Speaker 24: During the quarter. Year-over-year foreign currency movement had a modest impact on our results. Foreign currency translation drove about 1% swing between the U's dollar reported revenue trend and the constant currency-related trend.

During the quarter year over year foreign currency movements had a modest impact on our results foreign currency translation drove about 1% swing between the U S dollar reported revenue trend and the constant currency related trend.

Speaker 24: After adjusting for the negative impact of foreign exchange rates, our constant currency revenue decreased 3% and.

After adjusting for the negative impact of foreign exchange rates, our constant currency revenue decreased 3%.

Speaker 24: Organic daysat-adjusted revenue decreased 3% in the quarter in line with our guidance.

Organic days adjusted revenue decreased 3% in the quarter in line with our guidance.

Speaker 8: Turning to the EPS bridge, on Slide 4, reported earnings per share was a dollar 29, which included 29 cents related to restructuring and noncash foreign currency charges related to our hyper inflationary translation of our Argentina business.

Turning to the EPS bridge on slide four.

Ported earnings per share was $1 29, which included 29.

Related to restructuring and noncash foreign currency charges related to our Hyperinflationary translation of our Argentina business.

Speaker 24: Argentina is required to be treated at the hyper inflationary economy and the noncash currency translation losses reflect the devaluation of the Argentine peso during the quarter.

Argentina is required to be treated as a hyperinflationary economy and the noncash currency translation losses reflect the devaluation of the Argentine peso during the quarter.

Speaker 24: This is a noncash accounting charge, as our Argentina business operates in their local currency.

This is a noncash accounting charge as our Argentina business operates in their local currency.

Speaker 24: Excluding these charges, adjusted EPS was a dollar fifty-eight.

Excluding these charges adjusted EPS was $1 58.

Speaker 5: bloking from our guidance midpoint. Our results included the softter operational performance of five cents.

Walking from our guidance midpoint. Our results included the softer operational performance of <unk>.

Speaker 5: The lower weighted average share count to the share repurchases in the quarter, which had a positive impact of two cents. The lower effective tax rate, which had a positive impact of two cents. The foreign currency impact: that was one cent worse than our guidance and interest and other expenses, which had a negative three cent impact.

Lower weighted average share count due to share repurchases in the quarter, which had a positive impact of <unk>.

A lower effective tax rate, which had a positive impact to.

Foreign currency impact that was <unk> <unk> worse than our guidance and interest and other expenses, which had a negative <unk> <unk> impact.

Speaker 5: Next let's review our revenue by business line year-over-year on an organic constant currency basis. The manpower brand reported the revenue decline of 1%, the experienced brand decline by 11% and the townt solutions brand revenue decline by 9%.

Next let's review our revenue by business line.

Year over year on an organic constant currency basis, the manpower brand reported a revenue decline of 1%.

The experience brand declined by 11% and the talent solutions brand revenue declined by 9%.

Speaker 5: The experienced decline represented lower activity from both enterprise and convenience customer segments, with enterprise cliines having a much more pronounced pullback compared to significant growth in the prior year.

The experienced decline represented lower activity from both enterprise and convenience customer segments with enterprise clients, having a much more pronounced pullback compared to significant growth in the prior year.

Speaker 5: With inteent solutions. We saw significant year-over-year revenue decline in RPO as we anniversaried high levels of permanent hiring across our key markets in the prior year period.

Within talent solutions, we saw significant year over year revenue decline in our Po as we anniversaried high levels of permanent hiring across our key markets in the prior year period.

Speaker 24: Our MSP business saw revenue declines in the quarter as we reduced certain lower margin activity, while Wright management experienced significant revenue growth on higher outplacement volumes in the quarter compared to the record lowan levels of activity in the prior year period.

Our MSP business saw revenue declines in the quarter as we reduced certain lower margin activity, while right management experienced significant revenue growth on higher outplacement volumes in the quarter compared to the record low levels of activity in the prior year period.

Speaker 24: Looking at our gross profit margin in detail, our gross prmargin came in at 18%.

Looking at our gross profit margin in detail our gross margin came in at 17, 8% staffing.

Speaker 24: Staffing margin contributed a 10 basis point reduction, as manpower experienced a very slight mix-related decrease in staffing margin.

Staffing margin contributed 10 basis point reduction is manpower experienced a very slight mix related decrease in staffing margin.

Speaker 24: Permanent recruitment, including count solutions. Rpo contributed 40 basis point GP margin reduction as permanent hiring demand experienced reduced levels from the record high activity in the prior year period.

Permanent recruitment, including talent solutions our Po.

Tribute a 40 basis point GP margin reduction as permanent hiring demand experienced reduced levels from the record high activity in the prior year period.

Speaker 24: The reduction in permanent recruitment during the quarter was greater than expected, which drove the slightly lower than guidance gross margin result.

The reduction in permanent recruitment during the quarter was greater than expected, which drove the slightly lower than guidance gross margin result.

Speaker 24: prre management, career transition within town solutions contributed 30 basis points of improvement as outplacement activity increased significantly.

Right management career transition within talent solutions contributed 30 basis points of improvement as outplacement activity increased significantly.

Speaker 24: Other items resulted in a 20 basis point margin decrease.

Other items resulted in a 20 basis point margin decrease.

Speaker 24: Moving on to our gross profit by business line, during the quarter the Manpower brand compred 58% of gross profit, our experienced professional business comprised 25% and town solutions comprised 17%.

Moving on to our gross profit by business line during the quarter. The manpower brand comprised 58% of gross profit our experienced professional business comprised 25% <unk> solutions comprised 17% during.

Speaker 24: During the quarter, our consolidated gross profit decreased 6% on an organic constant currency basis year-over-year.

During the quarter, our consolidated gross profit decreased 6% on an organic constant currency basis year over year.

Speaker 24: Our Manpower brand repcorded an organic gross profit decrease with 3% in inconant currency year-over-year.

Our manpower brand reported an organic gross profit decrease of 3% in constant currency year over year.

Speaker 24: Organic gross profit in our experienced brand decreased 13% in constant currency. Year-over-year permanent recruitment decreases within experience drove the higher rate of overall GP decrease for the brand.

Organic gross profit in our experienced brand decreased 13% in constant currency year over year.

Permanent recruitment decreases within experienced drove the higher rate of overall GP decreased for the brand.

Speaker 24: Organic gross profit Tan Solutions decreased 7% in constant currency year-over-year.

Organic gross profit in talent solutions decreased 7% in constant currency year over year.

Speaker 5: This was driven by declines in RPO and MSP, partially offset by significant growth in right management during the quarter.

This was driven by declines in <unk> and MSP, partially offset by significant growth in right management during the quarter.

Speaker 24: Gross profit: RPO decreased in the double-digit percentage range in the quarter as anniversary record levels of permanent hiring activity in the prior year period: while MSD experienced a slight GP, declined during the quarter.

Gross profit decreased in the double digit percentage range in the quarter as we anniversary record levels of permanent hiring activity in the prior year period.

<unk> experienced a slight GP declined during the quarter.

Speaker 24: Reported of's gna expense in the quarter was seven hundred and fifty-five million.

Reported SG&A expense in the quarter was $755 million.

Speaker 24: Excluding restructuring costs. Sgna was flat year-over-year on an organic constant-currency basis, down from the 3% growth in the first quarter on this same basis.

<unk> restructuring costs SG&A was flat year over year on an organic constant currency basis.

From the 3% growth in the first quarter on the same basis.

Speaker 24: This reflects a balance of cost reductions in areas of slowing demand, while we continue to invest in strategic digization initiatives as well as growth opportunities, most notably including xperis, townent solutions and specialty skills in manpower.

This reflects a balance of cost reductions in areas of slowing demand, while we continued to invest in strategic digitization initiatives as well as growth opportunities, most notably including experienced talent solutions and specialty skills and manpower.

Speaker 24: The underlying increase is consisted of operational cost of two million, incremental costs related to net acquisitions of four million, offset by currency changes of four million.

The underlying increase is consisted of operational costs of $2 million incremental costs related to net acquisitions of $4 million offset by currency changes of $4 million.

Speaker 5: Adjusted SGNA expenses as a percent of revenue represented 15% in constant currency in the second quarter, reflecting lowered operational leverage on the revenue decline.

Adjusted SG&A expenses as a percentage of revenue represented 15, 2% in constant currency in the second quarter, reflecting lowered operational leverage on the revenue decline for.

Speaker 24: Restructuring costs totaled 14.5 million.

Restructuring costs totaled $14 5 million.

Speaker 24: The Americas segment comprised 23% consolidated revenue. Revenue in the quarter was one point one billion, representing a decrease of 9% compared to the prior year period, on a constant currency basis.

The Americas segment comprised 23% of consolidated revenue revenue in the quarter was $1 1 billion, representing a decrease of 9% compared to the prior year period on a constant currency basis.

Speaker 24: Reported AUP was 43 million and includes one million of restructuring costs.

<unk> was $43 million and includes $1 million of restructuring costs as adjusted OUP was $44 million and OUP margin was four 8%.

Speaker 5: As adjust, Ed ocp was 44 million and opp margin was four point percent.

Speaker 5: The U's is the largest country in the Americas segment, comprising 67% segment revenues.

The U S is the largest country in the Americas segment, comprising 67% of segment revenues.

Speaker 24: Revenue in the? U's was 737 million during the quarter, representing an 18% days adjusted decrease compared to the prior year.

Revenue in the U S was $737 million during the quarter, representing an 18% days adjusted decrease compared to the prior year.

Speaker 5: As adjusted to exclude restructuring costs. opfr, our U's business, was 27 million in the quarter, representing a decrease of 60% from the prior year.

As adjusted to exclude restructuring costs OUP for our U S business was $27 million in the quarter, representing a decrease of 60% from the prior year.

Speaker 5: As adjusted OC margin was 4% and.

As adjusted OUP margin was three 6%.

Speaker 24: Within the? U's, the Manpower brand comprised 26% of gross profit during the quarter.

Within the U S. The manpower brand comprised 26% of gross profit during the quarter.

Speaker 24: Revenue for the Manpower brand in the? U's decreased 19% on a days's adjusted basis during the quarter, representing a further decline from the 15% decrease in the first quarter.

Revenue for the manpower brand in the U S decreased 19% on a days adjusted basis during the quarter, representing a further decline from the 15% decrease in the first quarter.

Speaker 24: Manufacturing teamm in the? U's continued to decline during the second quarter from the 48 range in March for the 46 range in June .

Manufacturing PMI in the U S continued to decline during the second quarter from the 48 range in March with a 46 range in June.

Speaker 24: The U's manpower business was seeing an improved rate of decline as we exited the quarter.

S manpower business was seeing an improved rate of decline as we exited the quarter.

Speaker 24: The experienced brand in the? U's comprised 46% of gross profit in the quarter.

The experience brands in the U S comprised 46% of gross profit in the quarter.

Speaker 24: withinan experience in the? U's it skills compriseed approximately 90% of revenues.

With an experienced in the U S. It skills comprised approximately 90% of revenues.

Speaker 5: On a day's adjusted basis. Experienced U's revenue decreased 17% as we anniversaryied significant 2022 growth of 25% organically in the year-ago period.

On a days adjusted basis experienced U S revenue decreased 17% as we anniversary significant 2022 growth of 25% organically in the year ago period.

Speaker 24: As referenced earlier, the year ago period experienced dramatic growth from enterprise clients and this period's pullback is most pronounced from these enterprise clients.

As referenced earlier the year ago period experienced dramatic growth from enterprise clients and this periods pullback is most pronounced from these enterprise clients.

Speaker 24: Town solutions in the? U's contributed 28% to gross profit and experienced revenue decline of 22% in the quarter.

<unk> solutions in the U S contributed 28% of gross profit and experienced revenue decline of 22% in the quarter.

Speaker 5: This was driven by a decrease in RPO revenues in the? U's as permanent hiring programs continued at lower levels in the second quarter as we anniversaryied record growth in the prior year.

This was driven by a decrease in <unk> revenues in the U S. As permanent hiring programs continued at lower levels in the second quarter as we anniversaried record growth in the prior year.

Speaker 5: The U's SP business sty revenue decline is reduced, some lower margin activity, while outplacement activity within our right management business drove significant revenue increases.

The U S. MSP business saw revenue decline has reduced some lower margin activity, our outplacement activity within our right management business drove significant revenue increases.

Speaker 5: In the third quarter of 2023, we expect a similar to slightly lower rate of year-over-year revenue decline as compared to the second quarter trend in the U? S.

In the third quarter of 2023, we expect a similar to slightly lower rate.

Year over year revenue decline as compared to the second quarter trend in the U S.

Speaker 5: Southern Europe revenue comprised 46%. Its consolidated revenue in the quarter revenue in Southern Europe came in a two point two billion, representing a 1% decrease in organic constant currency.

Southern Europe revenue comprised 46% of consolidated revenue in the quarter.

Revenue in Southern Europe came in at $2 2 billion, representing a 1% decrease in organic constant currency.

Speaker 5: Reported au was 93 million and included six million of restructuring costs which were related to our Spain operations.

Reported OUP was 93 million and includes $6 million of restructuring costs, which are related to our Spain operations.

Speaker 24: As adjusted, auup was 99 million and ocp margin was 4%.

As adjusted OUP was $99 million and OUP margin was four 4%.

Speaker 24: France, revenue comprised 57% of the Southern Europe segment in the quarter and revenue equaled one point three billion in the quarter and was flat on a days's adjusted organic constant currency basis.

France revenue comprised 57% of the southern Europe segment in the quarter and revenue equaled $1 3 billion in the quarter and was flat on a days adjusted organic constant currency basis.

Speaker 24: auup fr, our France business, was five million in the quarter, representing an organic decrease of 25% in constant currency.

<unk> for our France business was $50 million in the quarter, representing an organic decrease of 25% in constant currency.

Speaker 24: Oc margin was 4%.

<unk> margin was three 9%.

Speaker 5: We are estimating the year-over-year constant currency revenue trend in the third quarter for France to be a very slight constant currency decrease year-over-year representing a flat days adjusted result.

We are estimating the year over year constant currency revenue trend in the third quarter for France to be a very slight constant currency decrease year over year, representing a flat days adjusted result.

Speaker 5: Revenue in Italy equaled 458 million in the quarter and was flat on a days's adjusted constant currency basis.

Revenue in Italy, equaled $458 million in the quarter and was flat on a days adjusted constant currency basis.

Speaker 5: ocp equal 36 million and OC margin was 8%.

OUP equaled $36 million and OUP margin was seven 9%.

Speaker 24: We expect a similar rate of constant currency revenue declined in the third quarter compared to the second quarter.

We expect a similar rate of constant currency revenue decline in the third quarter compared to the second quarter.

Speaker 5: Our Northern Europe segment COVID-19% of consolidated revenue in the quarter.

Our northern Europe segment COVID-19% of consolidated revenue in the quarter.

Speaker 5: Revenue of 952 million represented a 6% decline in constant currency.

Revenue of $952 million, representing a 6% decline in constant currency after excluding restructuring costs of $8 million adjusted OUP was a negative $2 million and OUP margin was a negative <unk> 2%.

Speaker 5: After excluding restructuring costs of eight million, adjusted opp was a negative two million and AUP margin was a negative zero, 0%.

Speaker 5: The restructuring costs related to our Nordics and Germany operations.

The restructuring costs related to our Nordics and Germany operations.

Speaker 5: Our largest market in Northern Europe segment is the U? K, which represented 34% of segment revenues in the quarter.

Our largest market in northern Europe segment is the UK, which represented 34% of segment revenues in the quarter.

Speaker 24: During the quarter U K revenues decreased 12% on a day's adjusted constant-currency basis.

During the quarter UK revenues decreased 12% on a days adjusted constant currency basis.

Speaker 5: This reflects the stabilized rate of decline from the first quarter on the same basis.

This reflects the stabilized rate of decline from the first quarter on the same basis.

Speaker 24: We expect a similar rate of constant currency revenue declined in the third quarter compared to the second quarter.

We expect a similar rate of constant currency revenue decline in the third quarter compared to the second quarter.

Speaker 5: In Germany, revenues increased 5% in days adjusted constant currency in the quarter, representing three consecutive quarters of improvement driven by our manpollar business, particularly in the automotive sector.

In Germany revenues increased 5% and days adjusted constant currency in the quarter, representing three consecutive quarters of improvement driven by our manpower business, particularly in the automotive sector I.

Speaker 5: I mentioned last quarter that we were performing a detailed evaluation of our underperforming proserbia managed services business in Germany.

I mentioned last quarter that we were performing a detailed evaluation of our underperforming pro Serbia managed services business in Germany.

Speaker 5: We have concluded this devaluation and have decided to wind down this business.

We have concluded this evaluation and have decided to wind down this business.

Speaker 24: The wind-down activities are commencing in the third quarter.

The wind down activities are commencing in the third quarter.

Speaker 5: I will provide further details on the expected restructuring charges associated with this wind-down as part of our third quarter earnings results.

I will provide further details on the expected restructuring charges associated with this wind down as part of our third quarter earnings results.

Speaker 8: This business has been a significant drag on our Germany operations and these actions will improve profitability going forward.

This business has been a significant drag on our Germany operations and these actions will improve profitability going forward.

Speaker 5: Overall in the third quarter we are expecting a similar rate of constse-currency revenue growth compared to the second quarter. Trend driven by our manpower business.

Overall in the third quarter, we are expecting a similar rate of constant currency revenue growth compared to the second quarter trend driven by our manpower business.

Speaker 5: In the Netherlands, revenue decreased 7% on a day's adjusted conant-currency basis, and this represented a stable rate of decline from the first quarter on the same basis.

In the Netherlands revenue decreased 7% on a days adjusted constant currency basis, and this represented a stable rate of decline from the first quarter on the same basis.

Speaker 5: The Asia, pacific- Middle East segment comprises 12% of total company revenue.

The Asia Pacific Middle East segment comprises 12% of total company revenue in.

Speaker 5: In the quarter, revenue grew 4% in constant currency to five hundred and ninety-nine million.

In the quarter revenue grew 4% in constant currency to $599 million.

Speaker 24: O was 26 million and opp margin was 4%.

<unk> was $26 million and OUP margin was four 3%.

Speaker 24: Our largest market in the apmme segment is Japan, which represented 48% of segment revenues in the quarter.

Our largest market in the <unk> segment is Japan, which represented 48% of segment revenues in the quarter.

Speaker 24: Revenue in Japan grew 12% in constant currency, or 10% on a day's adjusted basis.

Revenue in Japan grew 12% in constant currency or 10% on a days adjusted basis.

Speaker 24: We remain very pleased with the consistent performance of our Japan business and we expect continued strong revenue growth in the third quarter.

We remain very pleased with the consistent performance of our Japan business and we expect continued strong revenue growth in the third quarter.

Speaker 24: I'll now turn to cash flow and balance sheet.

I'll now turn to cash flow and balance sheet.

Speaker 24: In the second quarter, free cash flow represented an outflow of 177 million, compared to an outflow of 72 million in the prior year.

In the second quarter free cash flow represented an outflow of $177 million compared to an outflow of $72 million in the prior year.

Speaker 24: The higher offflow in the current year was driven by timing ofpayables and timing of payments within our large MSP business.

Higher outflow in the current year was driven by timing of payables and timing of payments within our large MSP business.

Speaker 24: At the end of the second quarter day, sales outstanding was flat at 58 days.

At the end of the second quarter days sales outstanding was flat at 58 days.

Speaker 24: During the second quarter, capital expenditures represented twenty-one million.

During the second quarter capital expenditures represented $21 million.

Speaker 24: During the second quarter, we repurchased 687 thousand shares of stock for $5 million.

During the second quarter, we repurchased 687000 shares of stock for $50 million.

Speaker 8: As of June thirtieth, we have 928 thousand shares remaining for a purchase under the share program approved in August of 2021.

As of June 30, we have 928000 shares remaining for repurchase under the share program approved in August of 2021.

Speaker 24: Our balance sheet ended the quarter with cash of 408 million in total debt of one billion.

Our balance sheet ended the quarter with cash of $408 million and total debt of $1 billion.

Speaker 24: Net debt equalled 594 million at quarter end.

Net debt equaled 594 million at quarter end our.

Speaker 24: Our debt ratio is a quarter end. Reflect total adjusted gross debt to trailing 12 months adjusted EBITDA of one point five three and total debt to total capitalization at 29%.

Our debt ratios at quarter end reflect total adjusted gross debt to trailing 12 months adjusted EBITDA of $1 53.

And total debt to total capitalization at 29%.

Speaker 24: Our debt and credit facilities remain unchanged during the quarter.

Our debt and credit facilities remain unchanged during the quarter.

Speaker 5: Next I review our outlook for the third quarter of 2020. -three and.

Next I'll review, our outlook for the third quarter of 2023.

Speaker 24: Based on trends in the second quarter and July activity to date, our forecast is cautious and anticipates that the third quarter will continue to be challenging in the? U's and Europe .

Based on trends in the second quarter and July activity today, our forecast is cautious and anticipate that the third quarter will continue to be challenging in the U S and Europe.

Speaker 24: This anticipates further weakening of permanent recruitment activity based on developments in the second quarter, partially offset by additional cost actions being taken.

This anticipates further weakening of permanent recruitment activity based on developments in the second quarter, partially offset by additional cost actions being taken.

Speaker 24: We are forecasting underlying earnings per share for the third quarter to be in the range of a dollar 32 to a dollar 42, which includes a favorable foreign currency impact of eight cents per share.

We are forecasting underlying earnings per share for the third quarter to be in the range of $1 32 to $1 42.

Which includes a favorable foreign currency impact of <unk> <unk> per share.

Speaker 24: We have disclosed our foreign currency translation rate estimates at the bottom of the guidance Slide.

We have disclosed our foreign currency translation rate estimates at the bottom of the guidance slide.

Speaker 24: Our constant currency revenue guidance range is between a decrease of 7% and 3% and at the midpoint represents a 5% decrease.

Our constant currency revenue guidance range is between a decrease of 7% and 3% at the midpoint represents a 5% decrease the.

Speaker 5: The impact of net acquisitions is negligible and there is about one less billing day this period, contributing to an organic days adjusted constant currency revenue trend of a 4% decrease at the midpoint.

The impact of net acquisitions is negligible and there was about one less billing day. This period contributing to an organic days adjusted constant currency revenue trend of the three 5% decrease at the midpoint.

Speaker 24: This is comparable to the decrease in the second quarter on the same basis.

This is comparable to the decrease in the second quarter on the same basis, we expect our EBITDA margin during the third quarter to be down 120 basis points at the midpoint compared to the prior year.

Speaker 5: We expect our EBITDA margin during the third quarter to be down 120 basis points at the midpoint compared to the prior year.

Speaker 5: We estimate that the effective tax rate for the third quarter will be 30% and.

We estimate that the effective tax rate for the third quarter will be 30%.

Speaker 37: As usual.

As usual our guidance does not incorporate restructuring charges or additional share repurchases and we estimate our weighted average shares to be $50 5 million.

Speaker 24: Our guidance does not incorporate restructuring charges or.

Speaker 5: Share repurchases, and we estimate our weighted average shares to be 50.5 million.

Speaker 8: As I mentioned, we do expect to have restructuring charges associated with the wind-down of our proservbia MAN services business in Germany and we will disclose those and any additional restructuring charges separately when we report our third quarter earnings.

As I mentioned, we do expect to have restructuring charges associated with the wind down of our <unk> managed services business in Germany, and we will disclose those and any additional restructuring charges separately when we report our third quarter earnings.

Speaker 24: Our guidance also does not include the impact of the noncash currency translation adjustment for our hyperinflationary Argentina business and we will also report that separately.

Our guidance also does not include the impact of the noncash currency translation adjustment for our Hyperinflationary, Argentina business. We will also report that separately.

Speaker 5: I will now turn it back to jonis.

I will now turn it back to you on this.

Speaker 38: Thanks cheack.

Thanks Jack.

Speaker 3: To meet the demands and opportunities in the market and position us for success in the future. We continue to progress a transformation agenda.

To meet the demands and opportunities of the market and position us for success in the future. We continue to progress a transformation agenda in support of our strategy we.

Speaker 4: Support of our strategy.

Speaker 7: We feel very good about our diversification strategy: building strong brands, So differentiated market positions and clear value propositions in manpower, experence and talent solutions.

We feel very good about our diversification strategy building strong brands with differentiated market positions and clear value propositions in manpower experience and talent solutions or.

Speaker 3: Our digitization strategy will be a key enabler for productivity and innovation, providing data and insights our clients and candidates want.

Our digitization strategy will be a key enabler for productivity and innovation, providing data and insights our clients and candidates one.

Speaker 3: Our industry-leading global technology platform power suite purged substantially all of our key markets through 2023, with ongoing implementation of common applications and a leading cloud-enabled back office infrastructure across our global footprint- another strong differentiator.

Our industry, leading global technology platform powered suite.

Substantially all of our key markets through 2023 with ongoing implementation of common applications and a leading cloud enabled back office infrastructure across our global footprint another strong differentiator.

Speaker 3: We believe this will enable great opportunities for accelerate growth and productivity in the future.

We believe this will enable great opportunities for accelerated growth and productivity in the future.

Speaker 3: We are also taking decisive actions within the business that are aligned with our strategy to simplify our operations, evolve our brand geomodel and prioritize our investments.

We're also taking decisive actions within the business that are aligned with our strategy to simplify our operations.

All of our brand Geo model and prioritize our investments.

Speaker 3: Our strategy is clearer than ever and we are committed to adjusting our portfolio for business. That is not core to that strategy.

Strategy is clearer than ever and we are committed to adjusting our portfolio for a business that is not core to that strategy.

Speaker 36: The decision to wind down our presserbia managed services businesses in Germany, though a difficult 1, reinforces our discipline in focusing on it resourcing and solutions and is a proof point that we will take the necessary actions to daddress businesses that do not fit our strategy or meet our profitability hurdle rates.

The decision to wind down our preserve your managed services business in Germany, though a difficult one.

Reinforces our discipline and focusing on Resourcing and solutions and as a proof point that we will take the necessary actions to address businesses that do not fit our strategy or meet our profitability hurdle rates.

Speaker 3: We are very pleased to be named a global leader in recruitment process outsourcing for the thirteenth year in the adverse group peak matrix assessment recognized in North America Asia, Pacific and Europe , Middle East and Africa.

We are very pleased to be named a global leader in recruitment process outsourcing for the 13th year and the address group peak matrix assessment recognized in North America, Asia Pacific and Europe, Middle East and Africa.

Speaker 15: Everest especially highlighted talent solutions, talent advisory practices in talent strategy, talent transformation and talent sustainability.

Everest, especially highlight the talent solutions talent advisory practices and talent strategy denim transformation and talent sustainability.

Speaker 7: Additionally, we were recognized for providing EIB services to clients, including diverse talent sourcing and deeib partnerships.

Additionally, we were recognized for providing <unk> services to clients, including diverse talent sourcing and the EIB partnerships.

Speaker 3: Our commitment to integrating and including diverse talent is recognizeded by our clients and by our partners. In June , we reaffirmed our dedication to refugee employment in Europe by committing that we will support 45 thousand refugees over the next three years, including ukrainian refugee women.

Our commitment to integrating and including diverse talent is recognized by our clients and by our partners in June we reaffirmed our dedication to refugee employment in Europe by committing that we will support 45000 refugees over the next three years, including Ukrainian refugee women.

Speaker 7: This includes working with clients and others to place three thousand refugees into meaningful employment opportunities and providing 15 thousand refugees with a mix of upskilling and training courses to our MyPath and expperious academies.

This includes working with clients and others to place 30000 refugees into meaningful employment opportunities and providing 15000 refugees with a mix of up skilling and training courses to our my path and experienced academies.

I would like to close by thanking our manpower group team around the world for another quarter of dedication to drive the business forward. Despite a more challenging environment in many markets.

Speaker 7: I would like to close by thanking our mampo group team around.

Speaker 3: For another quarter of dedication to drive the business forward despite a more challenging environment in many markets.

Speaker 3: Our experienced leadership team has faced similar challenges in the past, and as much as we're focused on navigating an uncertain environment, we're also preparing for strong rebound when the markets improve. And with that I will open to qa operator.

Our experienced leadership team has faced similar challenges in the past and as much as we're focused on navigating an uncertain environment.

Also preparing for a strong rebound when the markets improve and with that I will.

Will open to Q&A operator.

Speaker 2: Thank you. If you'd like to ask a question, please press Star 1- one if your question has been answered and you'd like to remove yourself in the queue, please press Star 1- one again.

Thank you if you'd like to ask a question. Please press star one one if your question has been answered and you'd like to remove yourself from the queue. Please press star one again.

Speaker 2: Our first question comes from Mark markcon. With Baird, your line is open.

Our first question comes from Mark Marcon with Baird. Your line is open.

Uh huh.

Speaker 29: Good morning on has than Jack one can you talk a little bit more about the trends that you're seeing in expperence and what you're hearing from some of the larger enterprise clients in terms of what their outlook is in terms of spending and the needs for resources, and how would you compare and contrast that relative to the overall merarratives? That's that we see across the?

Good morning, Jack.

Can you talk a little bit more about.

The trends that youre seeing and experience and.

But what youre hearing from some of the larger enterprise clients in terms of what their outlook is in terms of spending and the need for resources.

And how would you compare and contrast that relative to the overall narrative.

No.

That we see across the U S economy that things are holding up a little bit better.

Speaker 29: U's economy that things are holding up a little bit better.

Speaker 7: shermark and thanks. So the question- you know, I think, the trends that we're seeing today- is really a continuation of what we talked about when we had our call. In the first quarter, enterprise clients had a hiring boom about this time in 2022 they started to.

Sure Mark Thanks for the question.

The <unk>.

Trends that we're seeing today is really a continuation of what we talked about when we had our call in.

And the first quarter enterprise clients had a hiring boom about this time in 2022, they started to pull back.

Speaker 39: Back.

Speaker 4: From that hiring boom as we saw in the first quarter. That trend really continued for enterprise clients- and I'm here specifically talking mostly about the U's and the U K. they pulled back from that and that continued into the second quarter, and I would describe our conversations with our clients in a sense that they are waiting for clearer signs of a strengthening market.

From that hiring boom.

As we saw in the first quarter that trend really continued for enterprise clients and I'm, specifically talking mostly about the U S and the U K they pulled back from that and that continued into the second quarter.

And I would describe our conversations with our clients in a sense that they are waiting for clearer signs of a strengthening market on a bottoming market. They continue to be very interested in specific skill sets and as you can tell from our from our revenue trends.

Speaker 7: On a bottoming market, they continue to be very.

Speaker 4: Interested in specific skill sets and, as you can tell from our, from our revenue trends, you know there's still opportunities in the market and you know contrast that with the convenience market with which is, although softer, holding up much better than the enterprise markets, and we feel very good frankly, about both because we are a strong player in the enterprise markeket.

There is still opportunities in the market and contrast that with the convenience market.

Which is although softer holding up much better than the enterprise markets and we feel very good frankly about the both because we are a strong player in the enterprise market. We know when those markets get going again, they provide for great growth opportunities and then we have strengthened the convener.

Speaker 10: We know when those markets get going again they provide for great growth opportunities. And then we have strength in the convenience markets, which I think is also going to sericeus very well. So it's really a continuation of the trends that we saw in the first quarter, against a backdrop of the hiring boom in a number of industries that we serve, notably the tech industry in experience.

<unk> markets, which I think is also going to serve us.

Very well so it's really a continuation of the trends that we saw in the first quarter against a backdrop of a hiring boom.

A number of the industries that we serve notably the tech industry and experience.

Speaker 10: So that's really what we have been seeing and that's what our clients are telling us.

So that's really what we had been seeing and that's what our clients are telling us.

Speaker 29: Along those lines are they in terms of waiting for some clearer signs? Do you think that those clearer signs could end up emerging?

Along those lines are they in terms of waiting for some clearer signs do you think that those clearer signs could end up emerging.

Speaker 3: By the fourth quarter or the first quarter, or is is it the staying? Does it still seem pretty murky from their perspective?

By the fourth quarter or the first quarter or is it is it staying does it still seem pretty murky from their perspective.

Speaker 15: I think from a client perspective- and I'm sure if our many of us- there's so many conflicting signals about the economy that it's you know hard, hard to tell when something would turn around. But you know, from our perspective, if we look at our data as an industry and as a business, we are already operating in an environment that is indicative of what we would call the Guard and variety recession level for now a number of quarters in the?

Well I think from a client perspective, and I'm sure for many of us theres. So many conflicting signals about the economy that it's.

Hard to tell when something will turn around.

But from our perspective, if you look at our data as an industry and as a business.

We are already operating in an environment that is indicative of what we would call. The garden variety recession level for now a number of quarters in the U S and more quarters in Europe, and if you look at the overall IND.

Speaker 4: U's and more quarters in Europe . And if you look at the overall indicators on the labor market in the U's, you see our industry is coming down to a lower level. you'have seen hours worked coming down. You seen more part time people looking for full time work. So the indicators are all there for a slightly worsening labor market, although it hasn't transpired yet into the broader economy or frankly, into the broader labor market, which is still very resilient.

Indicators on the labor market in the U S. You.

You see our industry is coming down to a lower level, you've seen hours worked coming down you've seen more part time people looking for full time work. So the indicators are all there.

For a slightly worsening labor market, although it hasnt transpired yet into the broader economy or frankly into the broader labor market, which is still very resilient, but our view is that to tamper inflation wage inflation will have to come down which means.

Speaker 7: But our view is that to tamper inflation, wage inflation will have to come down, which means policymakers will continue to try and cool off the labor market in their battle against rising inflation. And that means weakcan expect some the further weakening of the labor markets, and that's exactly what you see us talk about in our outlook and that's why you know, while three saw a significant step down on perm in the second quarter and we continue to see it, it's entirely consistent with that expectation.

Policymakers will continue.

To try and cool off the labor market in their battle against rising inflation and that means we can expect some further weakening of the labor markets and that's exactly what you'll see us talk about in our outlook and that's why.

We saw a significant.

Stepping down on Perm in the second quarter, and we continued to see it it's entirely consistent with that expectation.

Speaker 11: And and it's consistent with what we were expecting as well- can this? Shifting over to Northern Europe : obviously you telegraphed the move with regards to proserve last quarter. When you think about Northern Europe from a longer-term perspective, maybe three to five years out, what sort of margin expectations should investors have with regards to Northern Europe illness?

Yes.

With what we were expecting as well.

Just shifting over to northern Europe.

Obviously you telegraphed.

The move with regards to serve.

Last quarter.

When you think about northern Europe from a longer term perspective, maybe three to five years out.

What sort of margin expectations should investors have with regards to northern European and us.

Speaker 15: I think as you look at the Northern Europe business Mark, you have a couple of things. This is where we have most of our bench countries, So when you see a decline in revenue, this is the region that takes the biggest hit on the decline in margins because we keep our bench there. You have one of our biggest countries, the U K, which has been also sensitive to the enterprise exposure we talked about, both on the manppower and the Experia side, and that saw some weakness as well.

Well I think as you look at the Northern Europe business Mark has a couple of things. This is where we have.

Most of our bench countries. So when you see a decline in revenue. This is the region that takes the biggest hit on the decline in margins because we keep our bench. There you had one of our biggest countries. The U K, which has been also sensitive to the enterprise exposure, we talked about both on the manpower and the experience.

Side of that.

Source of weakness as well and then we have a.

Speaker 8: And then we have a business in Germany that we've been working on turning around and I have to say we're pleased to the progress that we're making on our staffing, on our staffing side, and we're seeing a good evolution here on revenues, with more work to do. But we do have a business that we need to address and that is exactly what we we're signaling in today's earning call.

Business in Germany that we've been working on turning around and I have to say, we're pleased with the progress that we're making on our staffing on our staff.

<unk> side, and we're seeing a good evolution here on revenues with more work to do but we do have a business that we need to address.

And that is exactly what we're signaling in today's earnings call, but you've heard us talk about this over the last couple of quarters already that we're working on the turnaround.

Speaker 15: But you've heard us talk about this over the last couple of quarters already that we're working on the turnaround. I would say there is there's no reason not to expect Northern Europe to come back to our target profitability levels as a region on the whole. Right now it's a little bit of the perfect storm, but we are confident that for the actions that we're taking today and into the future, that we will, at Northern Europe , back on track by some decisive actions, and you I've heard us talk about one of those decisive actions as it relates to our presserbia business in Germany.

But I would say there is there is no reason not to expect northern Europe to come back to our target profitability levels as the region on the hole right now, it's a little bit of a perfect storm, but we are confident that the actions that we're taking today and into the future that we will get northern Europe back on track by some.

Decisive actions and you have heard us talk about one of those decisive actions.

As it relates to our <unk> business in Germany on this call.

Speaker 40: On this call.

Speaker 12: Perfect Thank you.

Perfect. Thank you.

Speaker 41: Thanks Mark.

Thanks, Mike.

Speaker 2: Thank you. Our next question comes from georgetownong with Goldman Sachs. Your line is open.

Thank you. Our next question comes from George Tong with Goldman Sachs. Your line is open.

Speaker 14: I thinks. Good morning. You touched on some of the factors driving the declent in experience. Can you elaborate on some of the trends in count solution, specifically how trends are performing with RPO and the mssp business?

Hi, Thanks, good morning.

On some of the factors driving the decline in experience can you elaborate on some of the trends and talent solutions, specifically, how trends are performing with our P O and the MSP business.

Speaker 3: surethe RPO business clearly feeling the effects of the slowing hiring environment from a permanent recruitment perspective. And of course, RPO is an enterprise business. It has very limited convenience activities, So it really is exactly in the cross shairs of both enterprise and, per slowdown right now, had fantastic performance and really benefited from the hiring boom.

Sure.

<unk> business is clearly feeling the effects of the slowing hiring environment from a permanent recruitment perspective and of course, our Apio is an enterprise business. It has very limited convenience activities. So it really is exactly in the crosshairs of both enterprise and Perm.

A slowdown right now had fantastic performance in really benefited from the hiring boom, we had a very strong position in <unk>, where the global leaders, we feel very good about that business, but right now we're going through the economic cycle and we can see the reduction both in enterprise spend as evidenced in.

Speaker 36: We have a very strong position in RPO where the global leaders we some very good about that business. But right now we're going through the economic cycle and we can see the reduction both and enterprise spend as evidence in reductions in permanent recruitment. So RPO is having a tougher time in this quarter. M SP is really starting to stabilize, we believe, and really seeing some of the actions that we're taking on rebalancing our client makes there and finally, of course, as part of talent solutions, we're seeing very strong activity and growth and right management in this quarter.

Reductions in permanent recruitment so RP O is having a tougher time in this quarter MSP is really starting to stabilize we believe and is really seeing some of the actions that we're taking on rebalancing our clients makes there and finally of course as part of talent.

<unk>, we're seeing very strong activity and growth in right management in this quarter. So on the whole it's a mixed picture with our appeal feeling the effects of permanent recruitment MSP, you really reflecting the levels that we're seeing in our staffing businesses overall, so aligned and then a strong right management.

Speaker 4: So on the whole it's a mixed picture, with RPO feeling the effects of permanent recruit, M P really reflecting the levels that we're seeing in our staffing businesses overall, So aligned and then a strong right management performance.

Performance.

Speaker 16: That's helpful. He talked about taking decisive actions in the business to better align the the strategy. The core to simplify the operations from. proserbia was a great example of that. Are there additional areas of the business that you see opportunity or potential for further streamlining?

Okay. That's helpful. You talked about taking decisive actions in the business to better align with <unk>.

<unk> core to simplify the operations <unk> <unk> was a great example of that are there additional areas of the business that you see opportunity or potential for further streamlining.

Speaker 7: I think there might be areas that we're going to be looking at in terms of, you know, what we can, what can do. Over time, you have seen us look at our geographic portfolio, seen us address a number of areas where we think we can, we can do better and be more focused, and I think you should expect us to continue to do that. But you know, when we have something particularly, you know, particularly important, we we tell you in advance.

I think there might be areas that we are going to be looking at in terms of what we can what we can do over time, you've seen us look at our geographic portfolio you've seen us address.

A number of areas, where we think we can we can do better and be more focused and I think you should expect us to continue to do that but when we have something particular, particularly important.

We tell you in advance and now we've made the decision. So we're proceeding with preserve yes, but I think Jack maybe in this environment. Clearly we are also looking at cost and SGA SG&A very closely so maybe you'd like to elaborate on this a little bit as well sure. Thanks, Jonas yes in Georgia.

Speaker 10: And now we've made the decisions, we're proceeding with proserbia, but I think Jack, maybe in this environment, clearly we're also looking at the cost and's G a's, G n a very closely. So maybe you'd like to elaborate on this a little bit as well. Sure thanks, J in, George. You know other examples where we have taken some actions. We did have some modest restructuring during Q2.

There are examples where we have taken some actions we did have some modest restructuring during Q2, Spain was part of that probably the bigger part of that the nordics.

Speaker 24: Spain was part of that, probably the bigger part of that, the nordics- you just talked about, Northern Europe - those our bench countries. We've done some streamlining there as well, and then, of course, Germany that we've talked about, where you know we have the proserbia wind down commencing. So So we are in line with what we said previous quarter.

Just talked about northern Europe close our bench countries, we've done some streamlining there as well and then of course, Germany that we've talked about.

We have the pro survey of wind down commencing so.

So we are in line with what we said previous quarter. We are looking at parts of the businesses are seeing more significant slowing enacting and taking actions, but broader than that we're also pulling back on broader discretionary spend looking at corporate functions looking at country headquarter.

Speaker 24: We are looking at parts of the businesses that are seeing more significant slowing and acting and taking actions. But broader than that, we're also pulling back on broader discretionary spend, looking at corporate functions, looking at country head quarter functions as well and making adjustments. And the one area- you WOn't har us talk about cutting- we'll be sales.

<unk> as well.

And making adjustments and the one area you won't hear us talk about cutting will be sales, we're very focused on continuing to be positioned for the upturn when it comes.

Speaker 24: We're very focused on continuing to be positioned for the upturn when it comes, and we're very focused on produccer counts. So we-'re- we're keeping a very close eye on that, being very careful. But I would say, outside of producers and sales, you should expect that we're taking, you know, very close look and and taking actions and pulling back on costs in those specific areas.

And we're very focused on producer counts. So we're keeping a very close eye on that and being very careful but I would say outside of producers and sales you should expect that we're taking.

Very close look and taking actions and pulling back on costs in those specific areas and as Jonas said, we'll talk a lot more about pro serve you on next quarter.

Speaker 15: And, as Jon said, we'll talk a lot more about proserbia next quarter. We're right in the middle of it right now, working with the workers, councils and clients, as you would expect, and we'll give a further update next quarter.

Right in the middle of it right now working with the workers councils and clients as you would expect.

And we'll give a further update next quarter.

Speaker 26: Very helpful, Thank you.

Very helpful. Thank you.

Speaker 2: Thank you. Our next question comes from Josh Chan. With ubbs, your line is open.

Thank you. Our next question comes from Josh Chan with UBS. Your line is open.

Speaker 17: Hi morning Jonas and Jack. Thanks for taking my questions.

Hi, Good morning, Jonas and Jack Thanks for taking my questions.

Speaker 18: I guess I was wondering if you.

I guess I was wondering if you could talk about the relative resilience in southern Europe versus kind of like the U S.

Speaker 42: Could talk about the relative resilience in Southern Europe versus kind of like the U's. You know it's something that will continue into the next quarter or so, I guess. Just curious your thoughts on the sustainability of that difference in performance and whether you think that can, that could, continue as we kind of go into this next part of the economic cycle.

It sounds like that will continue into the next quarter or so I guess just curious your thoughts on the sustainability of that difference in performance and whether you think that could that could continue as we kind of go into this next part of the economic cycle. Thank you.

Speaker 43: Thank you.

Speaker 20: Thanks Jeff and, and I would say that historically, the U S.

Thanks, Jeff, Yeah, and I would say that historically the U S. Labor market is much more dynamic than the European labor markets. They are more rigid in their structures in.

Speaker 36: labour market is much more dynamic than the European labor markets. They are more G rigid in their structures. In the? U us contracts that that we have in both experience as well as in manpower, are short term in nature, So you can change the length of that assignment as quickly as you would like, whereas in Europe you have more extended contracts that have to run to their schedued.

In the U S contracts that we have in both experience as well as in manpower or short term.

In nature. So you can change the length of that assignment as quickly as you would like whereas in Europe, you have more extended.

Contract that have to run to their scheduled and and also don't forget Jeff that the downturn in Europe started in 2022, and notably on France, France, you've never really saw a comeback.

Speaker 36: Old end and also.

Speaker 10: wanttoforget yes, that the downturn in Europe started in 2022 and notably on France. France never really saw a comeback. You know, from the pandemic back to the 2019 numbers that that we saw Josh, So So that's sort of the explanation and we're very pleased to see the stability in France. We re think the.

From the pandemic back to the 2019 numbers.

That we saw Josh so so that's sort of the explanation that we were very pleased to see the stability in France.

Speaker 7: The Italian market is one of the underpenetrated markets where you could see continued increases in penetration rates, and we think that is a fantastic opportunity for us to continue to see some very profitable growth. And the? U's market know comes, goes up and come.

I think the Italian market is one of the Underpenetrated markets, where you could see continued increases in penetration rates and we think that is a fantastic opportunity for us to continue to see some very profitable growth.

And the U S market comes and goes.

Speaker 10: Comes down faster and that.

It is up and comes down faster and that is exactly what we're seeing in this cycle as well and when.

Speaker 4: Is exactly what we're seeing in this cycle as well, and you know when, when the? U's economy rebounds and we get to the end of this, we would expect to see good opportunities for rebound here, that we would also expect to be faster on the upbound than what we would expect to see in Europe .

When the U S economy rebounds, and we get to the end of this.

We would expect to see good opportunities for a rebound here that we would also expect to be faster.

Faster on the outbound than what we would expect to see in Europe.

Speaker 17: Ok ex trade things. Thanks for the color there. And then I guess when I follow up, I wanted to ask about the manpower business within the? U us. I think I think you guys mentioned that. You know it sawought some improvement and then seemingly soften again in Q2. Could you just talk about what you're seeing there? It were a little surprised by kind of that trajectory, compared kind of the data points that might be out there.

Okay. That's great yeah. Thanks, Thanks for the color there and then I guess for my follow up I wanted to ask you about the manpower business within the U S. I think I think you guys mentioned that you know it saw some improvement and then seemingly soften again in Q2 could you just talk about what youre seeing there.

We're a little surprised by kind of that trajectory compared to the kind of the data points.

Speaker 22: So curious. Any color on?

That might be out there so curious any color on that business.

Speaker 44: On that business.

Speaker 24: Joshua Yeah, I'd be happy to talk to that, you know, and maybe just to talk about that trend. So, as we exited Q1, we talked about manpower in the? U's running at a at about minus 12, and the first quarter was the big quarter where we talked about the catch up that the? U's was seeing compared to what Europe was seeing much earlier in 2022. So that that definitely came through very strong in the first quarter, aligned with exactly what we were seeing in manufacturing P M I that we talked about in our prepared remarks as well.so what's happened since then?

Joshua Yeah, I'd be happy to talk to that in.

And maybe just to talk about that trend. So as we exited Q1, we talked about manpower in the U S running at about minus <unk> 12 in the first quarter was the big quarter, where we talked about the catch ups that the U S. We're seeing compared to what Europe, we're seeing much earlier in 2022, so that.

That definitely came through very strong in the first quarter aligned with exactly what we were seeing in manufacturing PMI that we talked about in our prepared remarks as well. So what's happened since then so ending the first quarter with manufacturing PMI.

Speaker 5: So, you know, ending the first quarter with manufacturing P M I, you know, in the high forty's, we continue to, you know, take down and we're ending here June with a 46.0. So So the manufacturing environment continues to worsen into Q2 and we see that in those trends and we did expect to see manpower to reflect that into the second quarter. So we we did.

In the high Forties, we've continued to.

Ticked down and we're ending here June with a 46.0. So so the manufacturing environment continues to worsen into Q2, and we see that in those trends and we did expect to see manpower to reflect that into the second quarter. So we did we do.

Speaker 23: We did expect to see that minus 12%, to see some additional decrease than that. That's how we ended up at the minus 17. now, with that being said, we did highlight the fact that when you look at that minus 17, it was most heaviest that the beginning of the quarter and as we ended the quarter, we were starting to see some improvement in that rate of decline.

We expect to see that minus 12% to see some additional decrease in that that's how we ended up at the minus 17 now with that being said we did highlight the fact that when you look at that minus 17. It was most heaviest at the beginning of the quarter and as we ended the quarter, we were starting to see some.

Speaker 15: So, you know, we'll see as we look forward to the third quarter. You can see from the guide for the? U's overall, we're seeing, you know, for the most part, continuation of the current trends. It might be a bit better, So we might see that on the manpower side.

Movement in that rate of decline so we'll.

We'll see as we look forward to the third quarter you can see from the guide for the U S. Overall, what we're seeing.

For the most part a continuation of the current trends that it might be a bit better. So we might see that on the manpower side.

Speaker 15: But that's, that's the way we're looking at it right now and, as we did say, we are being cautious, for all the reasons that yon has talked about, with some of the dynamics that are playing out in the U's market right now. That does reflect our cautious stance going into the third quarter.

But that's.

That's the way we're looking at it right now and as we did say we are being cautious for all the reasons that Jan has talked about with some of the dynamics that are playing out in the U S market right now.

That does reflect our cautious stance going into the third quarter.

Speaker 17: Ok great Thank. Thank you all for your time and for the color.

Okay. Great. Thanks. Thank you both for your time and for the color.

Speaker 45: Thank you.

Thanks, Jeff.

Speaker 2: Thank you. Our next question comes from Jeff silver with bmmo capital markets. Your line is open.

Thank you. Our next question comes from Jeff Silber with BMO capital markets. Your line is open.

Speaker 26: So much. You talked a little bit about tr-quarter trends in the U's. Can we get some similar comment on tracquarter trends in some of your other major markets?

Thanks, So much you talked a little bit about intra quarter trends in the U S. Can we get some similar comment on intra quarter trends in some of your other major markets.

Speaker 29: Sure Jeff I'd be happy to talk to that So if you look at.

Sure, Jeff I'd be happy to talk to that so if you look at.

Speaker 24: France, I'd say the story is, you know, biggest revenue country, relatively stable during the quarter. So and that reflects a stable trend, you know from quarter one to quarter two as well and in a quarter it was about, you know similar, you know about that- 1% organic days adjusted rate. May is always a a tricky months, particularly in Europe , due to the holiday, So a little lower, but I wouldn't read too much into that, I think it's mostly the holiday effect, but other than that, pretty stable, I'd say.

France I would say the story is our biggest revenue country relatively stable during the quarter, so and that reflects a stable trend from quarter, one to quarter, two as well on intra quarter. It was about similar about that 1% organic days adjusted.

Right.

As always.

Tricky month, particularly in Europe due to the holidays, so a little lower but I wouldn't read too much into that I think it's mostly the holiday effect, but other than that pretty stable.

Say.

With Italy.

Speaker 8: With Italy, I'd say similar, we saw maybe a little bit- the year over year is coming into play a little bit- where maybe may in June were a tad softer than on a days's adjusted basis, than what we saw in April , but overall I'd say generally pretty consistent. Talked about the U's and I'd say on the U K.

Say similar.

We saw.

Be a little bit year over year is coming into play a little bit where maybe may and June were a tad softer than on a days adjusted basis than what we saw in April, but overall I'd say generally pretty consistent.

<unk> talked about the U S and I'd say on the U K.

Speaker 27: Know the U K on an overall basis we're coming in on a quarter over quarter very similar at that, minus 12% versus Q1 during the course of the second quarter. We did see a little bit more of a pullback in the month of June compared to that overall rates, but days had a big impact which you know. I think once you adjust for the days' element there generally running pretty, pretty consistent.

The UK on an overall basis were coming in on a quarter over quarter very similar at that minus 12% versus Q1.

During the course of the second quarter we.

We did see a little bit more of a pull back in the month of June compared to that overall rates, but days had a big impact which.

I think once you adjust for the days element there generally running pretty consistent I'd say, so and when you look at our guide into Q3, it's really predicting more of the same for the U K. So there could be and again a bit of a cautious view it could be a slight bit better.

Speaker 5: I'd say so and you know, when you look at our guide into q,3 it's really predicting more of the same for the U K. So there there could be- and again a bit of a cautious view- it could be a slight bit better and we'll just have to see how that turns out.

And we'll just have to see how that turns out.

Speaker 16: Okay that's helpful and if we can switch over to gross margins, I think you stated it was a little bit weaker than you were expected, but it was mostly because of the lower perm. Can we focus just on on the tenp business from a gross margin perspective, if you could talk about bill rates and Fred, and I'm just curious, are you seeing any pushback on pricing, either from competitors or from clients?

Okay. That's helpful and if we can switch over to gross margins. I think you stated it was a little bit weaker than you expected, but it was mostly because of lower perm can we focus just on the temp business from a gross margin perspective.

If you could talk about bill rates and spreads, but I'm. Just curious are you seeing any pushback on pricing either from competitors or from clients.

Speaker 4: Overall yes, I would say that pricing remains competitive but rational, and the overall pricing environment- as you can tell from our staffing margin, essentially holding stable- is good and I think that reflects a continued- although softer still, a continued- demand for our services and a tight labor markets and where companies are still looking for great, great talent and I think we are seeing that as a positive indicator of both the quality of our service, the level of skill sets that we're placing with our clients and we feel we feel good about the pricing environment at this time.

Overall, yes, I would say that pricing remains competitive.

But rational and the overall pricing environment as you can tell from our staffing margin essentially holding stable.

<unk> is good and I think that reflects a continued although softer still have continued demand for our services in a tight labor market and where companies are still looking for.

Right, Great talent and I think we are seeing.

That is a positive.

Indicator of both the quality of our service the level of skill sets that replacing with our clients and.

We feel we feel good about the pricing environment at this time.

Speaker 16: Ok very helpful. Thanks so much.

Okay very helpful. Thanks, so much.

Speaker 2: Thank you. Our next question comes from Kobe, summer with tourist Securities. Your line is open.

Thank you. Our next question comes from Tobey Sommer with two of Securities. Your line is open.

Speaker 4: Thanks want to ask questionions about your outsourcing businesses, RPO and M, SP ETC. Are you- our clients- responding from this slower economic period in the same way they have in the past to sort of look at their internal cost structures? You maybe choose to outsource more. I understand that sales may not be great right now because hiring activity is lower, but in terms of sort of the sales and revenue opportunity, maybe you could speak to that.

Thanks.

I wanted to ask a question about your outsourcing business suites.

Our apio MSP et cetera.

Are you.

Our clients responding from this slower economic period in the same way they have in the past to sort of look at their internal cost structures.

Maybe choose to outsource more.

I understand that sales may not be great right now because hiring activity is lower but in terms of sort of the sales and revenue opportunity maybe you can speak to that.

Speaker 36: Well I think what. What tends to happen is when, when things are going well for a long time, companies you know consider in sources.

Well I think what tends to happen is when when things are going well for a long time companies consider in sourcing and taking things back in house and then you have an economic cycle that that's evolves and all of the recruiters they thought they needed for their own needs.

Speaker 4: And taking things back in house, and then you have an economic sitecle.

Speaker 10: That that evolves and all of the recruiters they thought they needed for their own needs suddenly you know our own lot less productives and that is clearly the value proposition that our our P offering addresses So whilst we're seeing the activity today getting impacted by the hiring levels from a recruitment side on the on the R P side from a business model and value proposition perspective we feel very good about the opportunities that we have in our P because when hiring starts up again and you need to increase your recruiters from 10 to 100 you know we can do that very very quickly and our customers appreciate the flexibility both operational and strategic flexibility that provides to them you know in one particular country or in the case across the world to one organization and really the same is true from an M's D perspective we feel very good about our offering there and the evolution that we've seen with our clients in our M's P business is really.

Suddenly.

Or a lot less productive and that is clearly the value proposition that our RP offering addresses so whilst we're seeing the activity today.

Getting impacted by the hiring levels from the permanent recruitment side on the on the Rps side from the business model and value proposition perspective, we feel very good about the opportunities that we have in RPM, because when hiring starts up again and you need to increase.

<unk> your recruiters from 10 to 100, we can do that very very quickly and our customers appreciate the flexibility both operational and strategic flexibility that provides to them in one particular country or in our case across the world to one organization and really the <unk>.

It is true from an MSP perspective, we feel very good about our offering there and the evolution that we've seen with our clients in our MSP business is really in the value of the insights that we derive from the significant data sets that we look at it and advise our clients.

Speaker 7: Really the the value of the insights that we derive from the significant data sets that we look at and advise our clients on how they should think about their workforce. And if you look at the expansion of our offerings, you know beyond temporary staffing or it resourcing into statement of work and you know beyond. From there you can really see that our clients are leaning into this offering and we are able to expand our products and services that we provide within the M's P umbrella.

On how they should think about their workforce and if you look at the expansion of our offerings beyond temporary staffing or it resourcing into statement of work and.

Beyond from there.

Can really see that our clients are leaning.

Into this offering and we are able to expand our products and services that we provide within the MSP umbrella. So both of these cases, we feel really good that we can address noncore activities for many corporations in a better way than they can themselves and that we provide them with the APA.

Speaker 30: So in both of these cases we feel really good that we can address non core activities for many corporations in a better way than they can themselves and that we provide them of the operational and strategic flexibility to boot. So it is a tougher time for the R? P business today, as we would expect, but we feel really good about the opportunity, does not, that liizes ahead once the markets stabilizesus and starts to go the other way.

<unk> strategic flexibility to boot so.

Is a tougher time for the <unk> business to date as we would expect but we feel really good about the opportunity that lies ahead once the market stabilizes and starts to go the other way.

Speaker 29: If I could ask a question about right management, what do your most forward-looking KPIs tell you and how do they inform you on the risk of further or more widespread layoffs?

If I could ask a question about right management once a year.

Most forward looking Kpis tell you and how did they inform you on.

The risk of.

Further a more widespread way.

Layoffs.

Speaker 10: I would say that the current time the industry verticals that we're seeing pressure on from an enterprise perspective, in our experience and manpower, are the same industry verticals where we're seeing the opportunities in right management. So I would not characterize our outplacement business to be strong because of broad based layouts. That is not the case.

I would say that at the current time the industry verticals that we're seeing pressure on from an enterprise perspective.

Our experienced and manpower or the same industry verticals, where we're seeing the opportunities in right management. So I would not characterize our outplacement business to be strong because the raw debased layoffs that is not the case. It is industry specific it is in certain geographies.

Speaker 4: It is industry specific, it is in certain geographies and that is what we're seeing from a right management business, and remember that last year amongst the hiring boom is of course also when we saw very low right management outplacement activity. So the strength that we're seeing today is really from the same sectors that are feeling the pressure on the enterprise side from emppower and experience, notably in the U's and the U K, but it's not broad based.

And that is what we're seeing from our right management business and remember that last year.

Amongst the hiring boom there.

Is of course also when we sold very low right management outplacement activity. So.

The strength that we're seeing today is really from the same sectors that are feeling the pressure.

On the enterprise side for manpower and experienced a notably in the U S and the UK, but it's not broad based.

Speaker 46: Thank you.

Thank you.

Speaker 2: Our next question. Comfort comes from cartek meta with North Coast research. Your line is open.

Our next question comes from it comes from Kartik Mehta with Northcoast Research. Your line is open.

Speaker 47: Good morning. I think you obviously talked about kind of pricing what, what it's doing now and it seems to be be.having- everybody seems to be behaving fairly well. I'm wondering, when you look at previous downturns or previous contraction, what? When does pricing become an issue? Do do, do you see your competitors waiting until we're fairly into the contraction?

Hey, Good morning, I think you, obviously talked about kind of pricing what it what it is.

Doing now and it seems to be behaving everybody seems to be behaving fairly well I'm wondering when you look at previous downturns.

Previous contractions.

When does pricing become an issue do do you see your competitors waiting until we're fairly into the contraction.

Just wondering how in the past it's played out.

Speaker 5: I'm just wondering how, in the past, it's played out.

Well I think it very much depends on the depth of any economic cycle and.

Speaker 7: But I think it very much depends on the depth of any economic cycle and you know as as we mentioned early on in this call as well as in our last quarter call all of the data that we're looking at inside our company on the industry data is indicative of a but we will characterize as a Garden variety recession but you know we're not economists it could be a technical recession it could be an economics sload on whatever it is our industry is operating at a moderate economic downturn level and if you combine that with very strong and resilient labor markets that so far haven't shown.

As I as we mentioned early on in this call as well as in our last quarter call. All of the data that we're looking at inside our company on the industry data is indicative of a what we would characterize as a garden variety recession, but we're not economists it could be a technical recession, it could be an economic slowdown what it.

It is our industry is operating at a moderate economic downturn level and if you combine that with very strong and resilient labor markets that so far hasnt shown any sign from a broad perspective of softening in a material way.

Speaker 48: Any sign.

Speaker 10: From a broad perspective of softening in a material way. You know we feel very good about our ability to maintain pricing levels because access to talent is so important and labor markets are tight and talent shortages about and you know, if there was a deeper recession, that would of course, be a time when you could think about whether, you know, pricing would be impacted.

We feel very good about our ability to maintain.

Pricing levels, because access to talent is so important and labor markets are tight and talent shortages abound.

And if there was a deeper recession that would of course be a time when you could think about whether pricing would be impacted as the.

Speaker 10: As you know, the market would contract significantly and then competitors would try to maintain share and compete on price. But we're certainly not seeing that today. The fundamental drivers of the strength of the labor market, if you look at demographics, if you look at technological change, if you look at our move up into higher skill sets, both in experience and in manpower, through our specialization initiatives, you know tend to.

The market would contract significantly and then competitors would try to maintain share and compete on price.

But we're certainly not seeing that today, but the fundamental drivers of the strength of the labor market. If you look at demographics. If you look at technological change if you look at our move up into higher skill sets, both in experience and manpower to our specialization initiatives.

Speaker 36: You know, go for profiles that are.

<unk> two.

Gulfport profiles that are in demand today and will be an even greater demand into the future and that should provide us with additional pricing strength that could offset any other any other pricing pressure, but at this point as I mentioned earlier, we believe.

Speaker 7: In demanded today.

Speaker 10: En will be even greater demand into the future and that should provide us with additional pricing strength that could offset any any other pricing pressure. But at this point, as I mentioned earlier, we believe that pricing is rational, but it is always a very competitive market, So we are competing for every deal, but the overall demand is still positive from a pricing perspective.

That pricing is rational but it is always a very competitive market. So we are competing for every deal but the overall demand is still positive from a pricing perspective.

Speaker 47: And then Jack on the French business tax. I think when we've talked in past or you data that kind of the NE data point is September of this year. Is that still accurate? Has anything changed for that?

And then Jack on the French business tax I think when we've talked in past or stated that kind of the next data point is September of this year is that still accurate or has anything changed.

For that.

Speaker 29: Yes Carter, take. Yeah, that's still accurate. I think at this point and when we see that plliminary budget for next year- that usually comes out mid-september- that's what we expect to see: more, more color. We do know that President mccrone continue to have very strong feelings that the French business tax, the repeal of the French business tax- this final component is very important to the future of the competitiveness of frances.

Yes, Kartik, yeah, that's still accurate I think at this point and when we see the preliminary budget.

For next year that usually comes out mid September that's when we expect to see more more color, we do know that president mccrone.

Continues to have very strong feelings that the French business tax the repeal of the French business tax. This final component is very important to the future of competitiveness of France. So that makes us feel good that there is a very good chance that that will go through as planned.

Speaker 5: So that makes us feel good that there's a very good chance that that will go through as planned. But we really WOn't know until to confirm it, until we see it in the preliminary budget, and'll know in a couple ofmonth and, as we said before, when that happens, that that is a significant benefit for us. That will improve our global effective rate by another one and a half percent downward.

And but we really won't know until two.

To confirm it until we see it in the preliminary budget and so we'll know in a couple of months and as we said before when that happens that that is a significant benefit for us that will improve our global effective rate.

By another one 5% downward so we're looking forward to that and look forward to giving an update on that on our next earnings call.

Speaker 5: So we're looking forward to that and look forward to giving an update on that on our next earnings call.

Speaker 47: robec. Thank you very much, appreciate it.

Perfect. Thank you very much appreciate it.

Speaker 2: Thank you. Our next question comes from Stephanie o with jefffriy, your line is OP.

Thank you. Our next question comes from Stephanie more with Jefferies. Your line is open.

Speaker 49: Hi good morning. Thank you. I'm hoping I you to talk a little bit about what you're saying, saying in your IA Pacific segment, or Asia Pacific, Middle East.

Hi, Good morning. Thank you I was kind of wondering if you could talk a little bit about what youre seeing in your Asia Pacific segment, Our Asia Pacific Middle East does seem to be one area.

Speaker 49: Seems to be, you know, one area of where this a little bit more strength compared to your other region. So any color there would be helpful. Thank you.

Or are they still a little bit more strength comparing that to other region. So any color there would be helpful. Thank you.

Yes, sure Stephanie Yeah, we're seeing some strength both in Asia Pac and also in Latin America and they they are regions, where we have very strong market positions.

Speaker 4: Yes sure, stephanany. Yet we're seeing some strength both in Asia, Pac and also in Latin America.

Speaker 7: They they are regions where we have very strong market positions. The labor markets are also resilient in those in those areas and if we specifically talked about Asia Pacific, in Japan, our business there has just concluded the 30 fifth consecutive quarter of strong growth. We feel very good about the Japanese business and the next two businesses in terms of size.

The labor markets are also resilient.

In those in those areas and if we specifically talked about Asia Pacific and in Japan. Our business. There has just concluded the 35th consecutive quarter of strong growth, we feel very good about our Japanese business and the next two businesses in terms of size.

Speaker 36: India and Australia are also performing well. We're rebalancing our client mix there to some degree, but we are seeing good profitability levels there in those markets. So we feel very good about our footprint. Asia Pac and frankly, also in Latin America, where we have very strong positions in markets that are Demographically strong. They are great locations for near shoring as it relates to North America activities and, of course Asia, and in particular, has a, you know, a very strong position in terms of I resources, both on shore but also offshore resources that we benefit from from an experienced perspective.

And Australia are also performing well, we're rebalancing our our client mix.

They are to some degree, but we are seeing good profitability levels. There in those markets. So we feel very good about our footprint in Asia Pac and frankly also in Latin America, where we have very strong positions in markets that are demographically strong they are great locations.

For near shoring as it relates to North American activities and of course Asia and India. In particular has a you know.

<unk> strong position in terms of.

Resources, both onshore, but also offshore resources that we benefit from from an experience perspective. So we're very pleased with the performance.

Speaker 10: So we're we're very pleased with the performance that we have in Asia Pac and in Latin America, given given the broader picture.

We have in in Asia Pac and in Latin America, given given the broader picture.

Speaker 24: sephanie, I would just add on the guide for aapme. You can see on the revenue side, based on what yonis mentioned and some of the mix related changes we're making in some of the tighter margins- staffing margin countries like India and australia- that's impacting the revenue trend but the bottom line is still very strong for apme and we expect that to continue and be a stable contributor on OP dollars into the third quarter.

Stephanie I would just add on the guide for <unk> you can see on the revenue side based on what Jonas mentioned in some of the.

Mix related changes, we're making and some of the tighter margin staffing margin countries like India and Australia.

That's impacting the revenue trend, but the bottom line is still very strong for <unk> and we expect that to continue to be a stable contributor on OUP dollars into the third quarter.

Speaker 49: Great Thank you. And then just lastly for me, you know, as you look at your third quarter outlook, could you may be talking a little bit about some put and tags embeddive within your your gross margin guidance.

Great. Thank you and then just lastly for me as you look at your.

Third quarter outlook could you maybe talk a little bit about.

It takes embedded within your gross margin guidance.

Speaker 5: You know I'd be happy to Stef A. I think it's actually pretty straightforward when you consider what happened in the second quarter. So you know, I think in our prepared comments and then our walk you can see that perm recruitments really was the big, the big swing factor in the second quarter. So perm, you know, came off a bit more then we expected in the second quarter.

Yes, I'd be happy to Stephanie So I think it's actually pretty straightforward when you consider what happened in the second quarter. So I think.

Our prepared comments and then our walk you can see that.

Perm recruitment really was the big.

The big swing factor in the second quarter, So perm.

It came off a bit more than we expected in the second quarter. That's why we had a bit more pressure on the GP margin.

Speaker 5: That's why we had a bit more pressure on the G? P margin. With that being said, you know 17.8 know is still holding up fairly well in the current environment. So down 40 bits going into the third quarter. It's really that continuation of perm. So you know, we are taking a bit of a cautious stance, anticipating that perm came off a little bit more than we expected in Q2.

With that being said 17.8.

It's still.

Holding up fairly well in the current environment, So down 40 bps going into.

The third quarter, it's really that continuation of Perm. So we are taking a bit of a cautious stance anticipating that perm came off a little bit more than we expected in Q2. So we're anticipating the perm is going to continue to come off a bit more into Q3, that's really what's driving the mark.

Speaker 5: So we're anticipating the perm going to continue to come off a bit more into Q3. That's really what's driving the margin change. So sequentially we go from that 17.8 to 17.4 at the midpoint and that really is just perm continuing to run off. We can, you know, just based on the conversation we just had and you gave a lot of color on staffing margin, stpping margin is continuing to hold up very well and that is in our forecast for the for the third quarter.

<unk> change so sequentially. We go from that 17 eight to $17 four at the midpoint and that really is just perm continuing to run off we can just based on the conversation. We just had and Unionist gave a lot of color on staffing margin staffing margin is continuing to hold up.

Very well and that is in our forecast for the for the third quarter and I think that the one item that's been helpful to offset the pressure on Perm is right management. So we are saying that you can see it in the GP Bridge and we expect right management to continue to have positive trends into the third quarter, as well, which will help offset partially.

Speaker 29: And I think that the one item that's been helpful to offset the pressure on perm is right management. So we are seeing that you can see, in the G? P bridge and we expect right management to continue to have positive trends into the third quarter as well, which will help offset, partially offset, some of that perm pressure that we're anticipating.

Offset some of that Perm pressure that we're anticipating.

Speaker 49: Great okay, Thank you so much.

Great. Okay. Thank you so much.

Speaker 50: Yeah.

Speaker 2: Thank you. Our next question comes from the nov patnick with Barclay, your line is open.

Thank you. Our next question comes from Manav Patnaik with Barclays. Your line is open.

Speaker 33: Hi this is princely thomason for Mona. Thanks for taking my question.

Hi, This is principally Thomas on for Manav. Thanks for taking my question can.

Speaker 33: Can you assess where you are in regards to the investments made to date around digital?

Can you assess where you are in regards to the investments made to date around digitization the impact on the business and what's to come specifically I know.

Speaker 33: The impact on the business and what's to come.

Speaker 33: Specifically I know power sweet cloud back office.

Power suite cloud back office as opposed to accelerate growth and productivity. We wanted to just get I guess does impacts around Gen AI and how man is positioned to benefit with the need to happen.

Speaker 33: Supposed to accelerate growth and productivity.

Speaker 33: We wanted to just get ideas of impacts around genai and how MAN is positioned to benefit.

Speaker 33: With the new human lab.

Speaker 4: Sure as we mentioned our prepared remarks towards the end of this year we will have substantially all of our major markets on our global power suet platform and so where that brings digitizations strategy is that we have common websites across the world in all of our major markets we have the same front office platform in all of our major markets we're working on back office cloud enabled applications as well so that we are creaking a global back office infrastructure also and you know those are investments that we've been making over a number of the years and the implementations of G very well it's difficult in the this business where you operating so many different countries and operating environments to implemented one application suite that is then being deployed at scale we feel very good about the work that we've done here but the most importantly we feel very good about the opportunities that this gives us both to generate data and insightites to drive accelerated innovation but driving growth initiatives as well as driving productivity through recruit efficiency and having the best best of we tools for our recruiters on our front line people should really give us some very good growth opportunities going forward but Jack maybe you want to a little bit more colorin terms of the size of theinvestments and where we are in the cycle of those investments be happy to Prince I would say we feel really good about how those investments are paying off for us so far So you know there is we've been talking about the frt office implementation for the last couple years in those markets where we've implemented early we then move into adoption of the recruiters we're we look at the adoption CA the eyes and we feel really good about the progress we're making and we know that's going to increase we know that's going to increase our recruiter productvity and we're seeing that in the marke where we've implemented early So So we feel good about the return on that investment you'll see that clearly in a more pronounced way when we get more operational volume in operational leverage back into the business and you know typically as as you said on that frontoffice we're at the very and of that process by the end of 2023 with you know 75% majority of our business on that front office system as we look at across we're also doing implementations and other parts of the business the back office is something you've heard me talk about in the past as well another cloud enabled industry leading platform that we're in the process of putting in gone live on five countries we continue very phase rollouts there and we feel really good about the additional efficiency that that's going to give us into the future as well so that will'll continue for this year and and we're going to move more from the front office to more waves of back office which will continue through 24 twenty five and we'll start to see the benefit of that really come through nicely and our operational efficiency as we get into 24 and and move forward in you'll see it in front office more immediately but you'll see it in the back office metrics as we move more from the end of 24 into twenty five So a little color on timing there and.

Sure, Yes, no as we mentioned in our prepared remarks towards the end of this year, we will have substantially all of our major markets on our global power suite platform, and so where that brings us in our Digitization strategy is that we have.

<unk> web sites across the world in all of our major markets. We have the same front office platform in all of our major markets. We are working on back office cloud enabled.

Applications as well so that we are creating a global back office infrastructure also and.

And those are investments that we've been making over a number of years and the implementations have gone very well it's difficult in the service business, where you're operating so many different countries and operating environments to implement one application suite that has been being deployed at scale.

And we feel very good about the work that we've done here, but most importantly, we feel very good about the opportunities that this gives us both to generate data and insights to drive accelerated innovation, but driving growth initiatives as well as driving productivity through.

Recruiter efficiency in having the best.

Best of breed tools for our recruiters and our frontline people should really gave us some very good growth opportunities going forward, but Jack maybe you want to give a little bit more color in terms of the size of the investments and where we are in the cycle of those investments, yes, we'd be happy to.

Principally I would say, we feel really good about.

How those investments are paying off for us so far so.

There is we've been talking about the front office implementation for the last couple of years in those markets, where we've implemented early.

We then move into adoption of the recruiters, where we look at the adoption Kpis and we feel really good about the progress, we're making and we know thats going to increase.

We know that's going to increase our recruiter productivity and we're seeing that in the markets, where we've implemented early so so we feel good about the return on that investment Youll see that clearly in a more pronounced way when we get more operational volume and operational leverage back into the business.

And typically as Jonas said on that front office, where we're at the very end of that process by the end of 2023 with 75% majority of our business on that front office system.

As we look at our price. We're also doing implementations in other parts of the business. The back office is something you've heard me talk about in the past as well.

Another cloud enabled industry, leading platform that we're in the process of putting in gone live on five countries. We continue very phased rollouts, there and we feel really good about the additional efficiency that that's going to give us into the future as well. So that will continue for this year end and we're going to move.

More from the front office to more.

<unk> a back office, which will continue through 'twenty four 'twenty five and we'll start to see the benefit of that really come through nicely in our operational efficiency as we get into 'twenty four and <unk>.

Move forward and you'll see it in our front office more immediately but youll see it in the back office metrics as we move more from the end of 2014 to 25, so a little color on timing there.

And.

I think that covers the main area that you were looking for.

Speaker 5: I think that covers the main area that you were looking for.

Speaker 33: Yes it does, Thank you. And then for my follow-up, can you provide? What you're seeing is them.

Yes. It does thank you and then for my follow up can you provide what youre seeing in some key puts and takes for your regional performance and outlook, specifically, France, but can you also impact by month for the quarter and what you Didnt seen for the first three weeks of July.

Speaker 33: He puts and takes for your regional performance and outlooks.

Speaker 33: Quickly France. But can you also impact by month for the quarter and what you've been seeing for the first three weeks of July ?

Speaker 29: You know. So what I'd say Prince, we're a little short on time. We're actually trying to get to a couple other quick questions. What I would say is I think I talked to the a quarter previously from one of the earlier questions and we covever that off, I think, in terms of the guide overall, I think the main takeaway is, you know, pretty consistent from a revenue trend perspective.

Yeah, So what I would say Prince you were a little short on time, we're actually trying to get to a couple of other quick questions. What I would say is I think I talked to the intra quarter previously from one of the earlier questions and we cover that off I think in terms of the guide overall.

I think the main takeaway is.

Pretty consistent from a revenue trend perspective, we talked about that organic days adjusted trend into Q3 being minus three and a half.

Speaker 5: We talked about that organic days adjusted trend into Q3 being a through minus three and a half, pretty much in line with what we just saw. Really, what that reflects is, you know the, the adjustment for Q2 for the? U's market trend and the improvement in France from what we guide it in Q2, continuing into the third quarter. So stable trend for the most part across a lot of our major markets.

Pretty much in line with what we just saw really what that reflects is.

The adjustment for Q2 for the U S market trend and the improvement.

In France from what we guided in Q2, continuing into the third quarter. So stable trends for the most part across a lot of our major markets and again, we were cautious in that outlook. So I would say that's the main main item I think as you think about the third quarter to your last point as we do.

Speaker 29: And again, you know we were cautious in that outlook. So I would say that's the main main item. I think, as you think about the third quarter to your last point is: we do know in Europe August is always a lower activity month with the holidays and we anticipate- you know coming out of August into September is always a bit difficult to predict depending on how Europe comes back from the holidays from a Manu facturing perspe ctive.

No in Europe August is always a lower activity month with the holidays.

And we anticipate coming out of August into September is always a bit difficult to predict depending on how Europe comes back from the holidays from a manufacturing perspective, but right now we're anticipating ongoing stability.

Speaker 5: But right now we're anticipating ongoing stability in that guide, again being cautious on an overall basis. But that's a little more color on what we're expecting into the third quarter. Thanks, Thank you.

In that guide again being cautious on an overall basis, but that's a little more color on what we're expecting into the third quarter. Thanks.

Thank you.

Speaker 2: Thank you. Our next question comes from Andrew sinerman. With JP Morgan, your line is open.

Thank you. Our next question comes from Andrew Steinman with J P. Morgan Your line is open.

Speaker 31: Hi good morning. This is stephaniee stefing in for Andrew. I wanted to clarify your comments earlier about the staffing industry already being in a Garden variety recession. I wanted to clarify whether you're speaking just to perm activity as opposed to temporary staffing, because temporary staffing hours are down but pricing, as you mentioned earlier, is still holding up very well, So it's supporting the overall revenue growth, I guess, for the industry and Board manpower.

Hi, Good morning. This is Stephanie <unk> stepping in for Andrew.

I wanted to clarify your comments earlier about the staffing industry already been in a garden variety recession.

I just wanted to clarify whether you're speaking just to perm activity as opposed to temporary staffing because temporary staffing hours are down but pricing as Hugh mentioned earlier is still holding up very well. So it's supporting the overall revenue growth I guess point the industry and for manpower.

Speaker 31: So just clarity on whether temporary staffing is also in what you would characterize as a Garden variety of recession at this point.

So just.

Clarity on what their temporary staffing is also.

You would characterize as a garden variety recession at this point.

Speaker 10: You know, I would say that, get to my stakke.

Yes, I would say that my statement was related to the 10th data that you see from prison in France. The U S. The UK Netherlands, Sweden.

Speaker 4: Was was related to the TEM data that you see from prison in France. The? U', S the UK.

Speaker 4: Netherlands, Sweden.

Speaker 10: There are very few markets that you can point in Europe and in the U's where you not seeing as operate in a much softer environment, which would be the equivalent of what we, in the pastlast, would have expected to see in this Garden variety recession description. That all then, I'm using just to give you a sense of a more shallow economic cycle that what we've seen in the last to recessions- one generated by the pandemic, short lived and driven by a pandemic, and the other one obviously being the great recession, but in the past, when we've seen shorter or shallow economic cycle downturns these, these levels of activities that the industry data is reflecting for temporary staffing would be, would be equivalent to what was then eventually, a Garden variety recession, if you allow me that that term and the sorry for the lack of precision on what exactly a Garden variety recession is, but it is.

There are very few markets that you can point that in Europe and in the U S.

Were you not seeing us operate in a much softer environment, which would be the equivalent of what we in the past would have expected to see in this garden variety recession description that al.

Then I'm using just to give you a sense of a more shallow economic cycle than what we've seen in the last two.

Recessions one generated by the pandemic short lived and driven by year end that make and the other one obviously being the great recession, but in the past when we've seen shorter or shallower economic cycle downturns.

These levels of activities that the industry data is reflecting for temporary staffing.

Would be which would be <unk>.

Equivalent to what was then eventually.

Garden variety recession, if you allow me that that that term and sorry for the lack of precision on what exactly a garden variety recession is but it is it is shallower than what we've seen in the last in the last couple of recessions put it that way.

Speaker 30: It is shallower than what we've seen in last, in the last couple of recessions. Put it that way.

Speaker 33: Ok okay, I appreciate that. I'm sorry, just to take that, maybe just extrapolate a step further. So the U's economy, for example, is- I guess we wouldn't necessarily characterize that as being in a Garden variety of recession, because the labor market, the unemployment rate, is still very low. So if the economy or in a recession, safe to say that, the staffing industry would see probably further decoine.

Okay. Okay, I appreciate that and sorry that maybe just.

Extrapolate further so the U S economy for example, or I guess, we werent necessarily characterize that as being in a garden variety recession, because the labor market. The unemployment rate is now very low.

The economy, we're in a recession safe to say that the staffing industry would see probably part there.

Claim.

Speaker 36: Well as you know, our industry tends to be a leading indicator of what is then to come. We are often concurrence to an economic cycle we later on signed out was, in fact, economic slowdown, although not and parent as it is you the the, the statistics and all of the rest are lagging the economy So, and so our labour markets for that matterbut I think, your point being that you, we are seeing a strong, a strong and labour with strong, resilient labour market, you is exactly the reason why we would expect, for instance, per could to come down a little bit further, because that strong labour market is, in many markets, one of the contributing factors to continueed high inflation.

Well as you know our.

Industry tends to be a leading indicator of what is then to come in we are often concurrent to an economic cycle. The late draw to find out was in fact a.

Economic slowdown, although not apparent as it is.

The account.

The statistics and all of the rest are lagging the.

Condoms, so and so our labor markets for that matter.

But I think your point being is that we are seeing a strong brought a strong and labor with strong resilient labor market.

Is exactly the reason why we would expect for instance, perm recruitment to come down a little bit further because that strong the labor market is in many markets. One of the contributing factors to continued high inflation. So we would expect late but the broader labor market eventually to reflect what we as a temporary.

Speaker 4: So we would expect labour, but the broader labour market, eventually to reflect what we, as a temporary staffing industry, are seeing in euro and Europe , just as we would in any normal sector, and then ultimately, we would also expect our industry to rebound before the labour market then generally rebounds, because we are also a leading indicator of a rebound.

<unk> industry are seeing in U S and Europe, just as we would in any normal sector and then ultimately we would also expect our industry to rebound before.

The labor market than generally rebounds, because we are also a leading indicator of a rebound. So that's how we that's how we're thinking about it and I hope I hope I've managed to clarify our how we are how we're seeing it from our business perspective.

Speaker 4: So that's how we, that's how we're thinking about it, and I hope, I hope I managed to clarify you- our we re seeing it from our business perspective.

Speaker 31: Yes that's very good. Thank you very much.

Yes, that's fair.

Good thank you very much.

Speaker 51: Thank you.

Thank you.

Speaker 2: Thank you. That's all the time we have for questions today. Thank you for your participation. This does include the program and you may now disconnect everyone. Have a great day.

Thank you that's all the time, we have for questions. Today. Thank you for your participation. This does conclude the program and you may now disconnect everyone have a great day.