Robert W' Baird Conference

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Robert W. Baird Conference

• February 25, 2009

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Tim Payne

• CEO

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Forward-Looking Statements
All information presented that is not historical
should be considered forward-looking statements
that are subject to certain risks, uncertainties
or assumptions and may be affected by certain
other factors, including but not limited to the
specific factors discussed in the Companys
periodic filings with the SEC. Should one or
more of these risks, uncertainties or other
factors materialize, or should underlying
assumptions prove incorrect, actual results,
performance or achievements expressed or implied
by such forward-looking statements may vary
materially from those expressed or implied in
this presentation. Forward-looking statements
are not guarantees of performance and the Company
undertakes no obligation to update publicly any
of the information presented in light of new
information or future events.
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Todays Topics

• MPS Group Overview
• Current Professional Hiring Environment
• Financial Position
• Discussion

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MPS Group

• One of the worlds largest providers of
  white-collar staffing services
• Contract
• Permanent Placement
• 2008 Revenue 2.2 billion
• 115.4 million in operating income (before SFAS
  142 charge)
• 224 offices in 12 countries

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Geographic Expansion
Shanghai
United States 58.5 United Kingdom
33.9 Canada 1.8 Europe 4.8
Australia 0.8 Asia 0.2
Percentages based on 2008 revenue
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Brand Strategy
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Mix of Services
Accounting
Healthcare
Information Technology
Engineering
Legal
Percentages based on 2008 revenue
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Why White Collar Staffing?
1970 1975 1980
1985 1990
1995 2000 2005
2007
Bureau of Labor Statistics Early 2008
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Current Professional Hiring Environment
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Professional Hiring Environment

• Current recession dates to December 2007
• Professional hiring remained fairly strong
  through first half of 2008
• Not true for blue collar / administrative
• September 2008 financial crisis created a shock
  to the system
• Resulting in poor professional hiring conditions
  for remainder of 2008

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Temp Employment YOY Change
MPS Group grew until October 2008
Recession began December 2007
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The Hiring Cycle
Early Recession Temping cut as companies cut costs
Bull Economy
Strong Economy
Bull Economy Temping slows as focus switches to
perm resources
Improving Economy With huge backlog, hesitant to
hire FTEs, companies turn to temping companies
Strong Economy Temping demand high as skilled
workers in shortage
2006
Dec. 2007
2003 - 2004 - 2005
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Shed Happens

• We know clients will shed temporary workers
  during downturns
• We have an operating model that adjusts
  simultaneous with shedding
• Variable cost model
• Changes made after last recession

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Last Time Around
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Company Position Today

• High demand professional specialties
• Diverse service offerings
• Variable cost business model
• Strong balance sheet
• Experienced management team

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Investment Considerations

• Long term supply of and demand for white collar
  talent
• Anticipated duration of current recession
• Secular trend toward greater use of temporary
  white collar talent
• Historical behavior of employment-related stocks
  in an improving economy

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Tyra Tutor

• SVP Corporate Development

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Financial Position
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Full-Year Revenue
s in billions
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Full-Year Operating Income
s in millions
Before non-cash charge
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FAS 142 Goodwill Write-down

• Each fourth quarter the goodwill valuation is
  reviewed
• With declining valuations for our peer group and
  uncertain economic conditions, fourth-quarter
  review resulted in goodwill impairment charge
• Charge was non-cash and does not impact
  availability of borrowings from credit facility
• Goodwill balance at 12/31/08 was 282 million

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2008 Revenue Margins
Before non-cash charge
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Fourth Quarter 2008 Results

• On February 5th, we released 4Q08 results
• Earnings per share was at high-end of
  managements October guidance
• Revenue was below guidance due to volatile,
  negative valuation of the British pound
• Generated 49 million in operating cash flow

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4Q2008 Revenue Margins
Before non-cash charge
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Variable Cost Business Model

• Temporary Staffing
• Expense of a temporary employee ends
  simultaneously with an assignment end
• Variable compensation (commissions and bonuses)
  reduced
• Permanent Placement Fees
• Variable compensation reduced

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Balance Sheet Highlights-12/31/08
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Cash Flow From Operations
s in millions

• Strong cash flow from operations
• Have 250 million credit facility, which contains
  favorable borrowing terms and expires Nov. 2011
• 7 million drawn on line as of 12/31/08

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Working Capital

• When operations slow, cash flow typically
  accelerates
• We pay temporary employees weekly and receive
  payment from clients about seven weeks later
• As we slow, the cost of temporary employees stops
  immediately, but we continue to collect the
  receivables
• Favorable income tax deduction
• In the U.S., our previous acquisitions provide a
  50 million tax deduction through 2011, making
  our cash taxes less than the tax provision
• Cost reduction measures in place

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Cash Flow Trends
s in millions
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First Quarter 2009 Guidance

• First quarter revenue and EPS guidance was
  provided on February 5, 2009
• EPS 0.02 to 0.07
• Revenue 410 to 450 million
• If 1Q09 revenue is at mid-point of guidance
  (assume 425 million), the year-over-year revenue
  decrease is approximately 25
• Using the same assumption, but on a constant
  currency basis, revenue decrease is approximately
  15

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Financial Summary

• Strong cash position
• Strong cash flow, even in downturn
• Line of credit in place
• Expense control
• Variable cost business model
• Cost reduction measures in place

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Discussion
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Reg. G Reconciliations

• Non-GAAP to GAAP

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2008 Operating Income/Margin
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4Q2008 Operating Margin
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U.S. Unemployment Rate
Overall Rate at 7.6
Where we focus
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2008 Revenue Gross Margin