January 2019 The Adecco Group Baader Helvea conference ... · Our investment story The Adecco Group...

1

January 2019January 2019January 2019January 2019

Baader Helvea conference, Jan 2019The Adecco GroupThe Adecco GroupThe Adecco GroupThe Adecco Group

– The Adecco Group At A Glance

– Our Investment Story

– Q3 2018 results

– Performance History

– Other Information

Contents

The Adecco GroupThe Adecco GroupThe Adecco GroupThe Adecco Group 2

Contents

Baader Helvea conference, Jan 2019

Baader Helvea conference, Jan 2019The Adecco GroupThe Adecco GroupThe Adecco GroupThe Adecco Group 3

EuropeEuropeEuropeEurope

(62%)(62%)(62%)(62%)

NorthNorthNorthNorth

AmericaAmericaAmericaAmerica

(19%)(19%)(19%)(19%)

Rest ofRest ofRest ofRest of

the Worldthe Worldthe Worldthe World

(17%)(17%)(17%)(17%)

LHH LHH LHH LHH

(2%)(2%)(2%)(2%)

69

88

11

2

8

2

12

8

Revenue (%)Revenue (%)Revenue (%)Revenue (%)

Gross profit (%)Gross profit (%)Gross profit (%)Gross profit (%)

The Adecco Group: one company, many strengths2017 figures


TEMPORARYSTAFFING

PERMANENTPLACEMENT

CAREERTRANSITION

OUTSOURCING MSP & RPOTALENT

DEVELOPMENT

OUR BUSINESS LINES

General Staffing

Professional Staffing

Solutions

EUROPE REST OF THE WORLD

France 23% Japan 5%

UK & Ireland 9% Latin America 4%

Germany, Austria, Switzerland 9% Eastern Europe and MENA 3%

Benelux and Nordics 9% Asia 2%

Italy 8% Australia & New Zealand 2%

Iberia 4% India 1%

Contribution to Group revenues

76%

Office 24%

Industrial 52%


21%

Information Technology 10%

Finance & Legal 4%

Engineering & Technical 5%

Medical & Science 2%


3%

Career Transition & Talent Development 2%

Business Process Outsourcing 1%

OUR SERVICE LINES

OUR GEOGRAPHIES Figures refer to % of Group revenues

All figures FY 2017

Delivering progress: 5-year track record


4 4 4

6

13 14 15 16 17

4.4 4.8

5.2

5.0

4.9

13 14 15 16 17

EBITA margin

excluding one-offs (%)

80

105

87

83

80

13 14 15 16 17

Cash conversion (%)

2.00 2.10

2.40

2.40

2.50

13 14 15 16 17

Dividend per share (CHF)

1.1

0.9

0.8

0.7

0.8

13 14 15 16 17

Net debt to EBITDA

excluding one-offs

-1

18.3 18.5

19.0

18.8

18.4

13 14 15 16 17

Gross margin (%)

54

53

52 52 52

13 14 15 16 17

Days sales outstanding

14 15 16 17

Great Place To WorkTM ranking

13th

5th 2n

d

Europe Ranking

Europe Ranking

Europe Ranking

World Ranking

* TDA

7th

World Ranking

Organic revenue growth (%)

Our investment story

Baader Helvea conference, Jan 2019 7The Adecco GroupThe Adecco GroupThe Adecco GroupThe Adecco Group

The Adecco Group is taking the lead in this transformation

We are reshaping the world of work, reinventing existing ways of operating, and developing and acquiring new capabilities.

We provide innovative solutions that enable employers to flexibly manage their workforces and employees to flexibly manage their careers.

Global megatrends are changing the world of work

Employees will work when, where and how they wish, doing the work that matches their skills, interests and compensation needs.

Employers will hire workers to meet carefully defined needs, through a broad range of relationships across all skill levels.

Higher value, lower costs and less capital will drive shareholder returns

By combining data, technology and talent, we increase our value to clients and candidates and strengthen our competitive position.

Digitising our processes reduces our cost-to-serve, and improves our capital efficiency. This will help us to expand our operating margin and generate strong cash flow.

New employment models bring exciting growth opportunities

We are the largest provider of workforce solutions, yet we have less than a 2% share of the total addressable market for flexible and permanent HR solutions.

Strengthening and expanding our service offerings will allow us to grow our market share. Digital investments raise barrier-to-entry and increase economies of scale.

Megatrends are reshaping the world of work


Geopolitical & economic

uncertainty

Organisations recognise that flexibility and agility are the key to prospering in an uncertain and fast-changing world. Having the right skills ‘on-demand’ is becoming the new normal.

Automation, AI &

machine learning

Combining automation with flexible HR solutions will drive a step change in productivity, for our clients and for the Adecco Group.

Digitisation, big

data & analytics

New distribution channels and data-driven business models are emerging as HR solutions go digital.

New demographic mix

Populations are ageing and the workforce is shrinking in many countries, leading to talent shortages. Individuals are choosing to work in ‘retirement’, often flexibly. Millennials are digital-natives and expect different things from their careers.

Skills imbalances

New jobs require new skills, which remain in short supply. A new approach to education, and especially up-skilling and re-skilling, must be embraced if the economy and society are to prosper.

The ‘gig’ economy

People are choosing to work ‘gigs’ – performing shorter tasks or services –instead of traditional full-time jobs. Online platforms are helping to efficiently match supply and demand.

Digital and rising complexity will encourage consolidation of the highly fragmented industry

The Adecco Group is the global

market leader with only 5% market

share

The Group’s digital evolution:

• raises barriers-to-entry

• increases economies of scale

• allows access to new

markets/segments

• creates opportunities to

differentiate

The Adecco GroupThe Adecco GroupThe Adecco GroupThe Adecco Group

Remainder of the market75%75%75%75%

Global peer 15%5%5%5%

The Adecco Group5%5%5%5%

Global peer 24%4%4%4%

Smaller global & large regional peers11%11%11%11%

€460billion

Source: the Adecco Group. Includes temporary staffing, permanent recruitment, career transition and talent development

9Baader Helvea conference, Jan 2019

The Adecco Group is strongly positioned to expand its leadership


Knowledge of complexlabour regulations

Our competitive strengths

Trusted on compliance & data security

Largest scope of end-to-endHR solutions (incl. up/reskilling)

Ability to manage large contingent workforces

Global distribution (>100,000 clients)

Most comprehensive portfolio of digital HR platforms

GrowTogether – a fundamental upgrade of our core capabilities

Rich workforcedata assets

Strong brandportfolio

Our unique assetsSome competitors Few competitors

A complete 360° HR solutions offeringSupporting candidates and companies at every stage of the work lifecycle


Outsourcing6%6%6%6%

MSP & RPO3%3%3%3%

General Staffing (Temp)52%52%52%52%

Permanent Placement11%11%11%11%

Professional Staffing (Temp)18%18%18%18%

Career Transition, Talent Development, Up/reskilling10%10%10%10%

360OOOO

Gross profit (FullGross profit (FullGross profit (FullGross profit (Full----year 2017)year 2017)year 2017)year 2017)

• Broadest solutions

offering

• Leading unique

positions in

career transition and

up/reskilling

• Elevating client

discussions

to the C-suite.

Stickier relationships

Clear strategic agenda for the Adecco Group


Perform

Segmentation, Pricing, ‘PERFORM’

Operating discipline,

strong cash flow generation,

and progressive dividend TransformAdapting our core business to

differentiate and take profitable

market share

GrowTogetherInnovateCapturing new growth

opportunities, leveraging

the megatrends

New Ventures


Investing in GrowTogether & New Ventures to drive growth and margin


GrowTogether

Market expansion to ‘new frontiers’Profitable market share gains

Efficiency savings starting 2018,

growing to EUR 250m p.a. in 2020

New Ventures

Higher-margin new businesses

EUR 245m total

programme costs 2017-20

Accelerating digital ventures 2018-19;

c.25bps p.a. EBITA margin impact

Capital expenditure EUR 10-20m p.a.

and selective external investments

Approximately EUR 200m total

restructuring costs 2018-19

RevenuesRevenuesRevenuesRevenues

MarginsMarginsMarginsMargins

InvestmentInvestmentInvestmentInvestment

GrowTogether: digitisation and automation drive performance


Market Insights

Branch Dashboard

Procurement System

Documents and E-Documents and

Admin Automation

Chatbots

Pooling / Planning

automation

Timesheet Digitisation

Sales Effectiveness

Client Portal

Recruiting Efficiency

Candidate Portal

Middle-&back-office process optimisation

New Ventures: a clear digital strategy - online platforms and skills development


Co-created with Infosys

Co-created with Microsoft

Digital Platforms

Staffing Permanent RecruitmentFreelance

Digital Skills

Upskilling and Reskilling

15

Other Partnerships and Investments


Delivering attractive shareholder returns while investing for the future

Committed to investment

grade credit rating

Exploit buy-and-build

M&A opportunities

Return excess cash

to shareholders

Maintain progressive dividend policy

with payout of 40-50% and

DPS at least in-line with prior year

Invest in profitable growth

The Adecco GroupThe Adecco GroupThe Adecco GroupThe Adecco Group 16Baader Helvea conference, Jan 2019

1.2x

0.9x

1.3x

0.8x

1.1x

0.7x0.8x 0.8x

1.4x

Jun-14Dec-14 Jun-15 Dec-15 Jun-16Dec-16 Jun-17 Dec-17 Jun-18 Dec-

18F

Strong balance sheet and sustainable dividend

17

Note: Net Debt to EBITDA excludes one-offs

The Adecco GroupThe Adecco GroupThe Adecco GroupThe Adecco Group Baader Helvea conference, Jan 2019

Dividend sustainable under stress

0

200

400

600

800

1,000

1,200

2006200720082009 2010 2011 2012 2013 2014 2015 2016 2017

Free Cash Flow

2006-08 structural improvement in working capital

Dividend for 2017:EUR 350 M

Net Debt/EBITDA to decline by year-end

• Net Debt expected to decline by year-end

2018; seasonally higher H2 cash flow and

proceeds from sale of Beeline stake

• Working Capital absorbs/releases cash

countercyclically when compared to EBITA

• 2017 dividend would have been covered by

Free Cash Flow even in 2009-10

“Buy-and-build” acquisition strategy


“Buy-and-build” acquisition strategymeans that with any acquisition…

We accelerate our strategic development, broadening and diversifying our offering

We are a ‘better owner’ of the business, achieving revenue and/or cost synergies with our existing activities

We create value for our shareholders delivering positive EVA within 3 years

1

2

3

More growth, stronger margin, progressive dividend


• Progressive dividend policy

• Value-enhancing M&A

and/or capital returns

• Market share gains

• Expansion into

‘new frontiers’

• True structural

growth

• Value-added

services

• Efficient delivery

models

• Higher margin

businesses

Cash flow

EBITA margin

Revenue growth

• High cash conversion

• Self-funded investments to

drive growth and margin

Leading TSR

Our commitment


Deliver leading Total Shareholder ReturnDeliver leading Total Shareholder ReturnDeliver leading Total Shareholder ReturnDeliver leading Total Shareholder ReturnDeliver leading Total Shareholder ReturnDeliver leading Total Shareholder ReturnDeliver leading Total Shareholder ReturnDeliver leading Total Shareholder Return

Drive revenue growth

Accelerate structural

organic revenue growth

Strengthen margin

Drive sustained EBITA

margin improvement

Deliver strong cash flow

Maintain a progressive

dividend policy

Our commitments

EUR 250m p.a.

productivity savings

(100bps of revenue)

Achieve continued strong

FCF after investments

Increase GDP multiplier

(from 3x to 4x)By 2020

Profitable share gains

Expanding to ‘new

frontiers’

Productivity

improvements Digital

ventures mix benefit

Value-enhancing M&A

and/or capital returns

Proof points


Our path to 2020: investments to drive sustainable margin improvement


Investments/savings in Investments/savings in Investments/savings in Investments/savings in EURmEURmEURmEURm 2017201720172017 2018201820182018 2019201920192019 2020202020202020 2021202120212021

GT efficiency savings 0 50

(65)

120 250 250

GT programme costs (50) (65) (65) 0

GrowTogether net benefits (50) (15) 55 185 250

New ventures (10) (60) (65)

Combined investment/savings (60) (75) (10) 185 250

Incremental YoY (EURm) (60) (15) 65 195 65

Incremental YoY margin impact (approx.) (25) bps (5) bps 25 bps 75 bps 25 bps

• Total GrowTogether programme costs EUR 245 million (2017-2020)

• GrowTogether efficiency savings ramp-up through 2019, with net positive

contribution

• New Ventures investments continue to be a net drag in 2019

Q3 2018 results

6 November 20186 November 20186 November 20186 November 2018

22The Adecco GroupThe Adecco GroupThe Adecco GroupThe Adecco Group Baader Helvea conference, Jan 2019

Moderation in organic revenue growth in Q3, driven by Europe


o Growth slowed to +2% organically and trading days adjusted, driven by Europe

o Revenues in September and October combined up 1%, TDA

Group revenue growth Segment revenue growth

o Most European markets softened in Q3, as economic growth moderated

o Outperformance in France, Switzerland, Nordics and Career Transition

o Underperformance in Germany and Benelux

Organic revenue growth, Organic revenue growth, Organic revenue growth, Organic revenue growth, trading days adjustedtrading days adjustedtrading days adjustedtrading days adjusted

Q3 2018Q3 2018Q3 2018Q3 2018 vs marketvs marketvs marketvs market

France 5% + NA, UK&I General Staffing 0% NA = / = UK&INA, UK&I Professional Staffing -2% NA = / = UK&IGermany, Austria, Switzerland -2% G&A - / + CHBenelux and Nordics -3% BEN - / + NOR

Italy 6% =Japan 4% =Iberia 0% =Rest of World 7% =Career Transition & Talent Dev. -4% +

Adecco GroupAdecco GroupAdecco GroupAdecco Group 2%2%2%2%

+ above market, = in-line with market, – below market

6% 6%

7%

6%

4%

2%

0

1

2

3

4

5

6

7

8

9

10

Q2 Q3 Q4 Q1 Q2 Q3

Organic revenue growth, TDA (%

)

2017 2018


Q3 2017

excl. one-offs

CICE reduction Strategic

investments

German Integration Underlying

improvement

Q3 2018

excl. one-offs

5.4%

5.0%

(30) bps

(15) bps

(20) bps25 bps

Underlying improvement partially offsetting EBITA margin headwinds


o France positive product mix and productivity partlyoffsets CICE (-60 bps) and strategic investments

o Iberia and Benelux & Nordics: timing differences between revenue slowdown and cost actions

o CTTD includes consolidation of General Assembly

o EBITA margin excluding one-offs -40 bps YoY

o CICE reduction (-15 bps), strategic investments (-30 bps), Germany integration (-20 bps)

o GrowTogether productivity savings starting to boost underlying profitability

Group EBITA margin YoY Segment EBITA margins YoYEBITA marginEBITA marginEBITA marginEBITA margin

excluding oneexcluding oneexcluding oneexcluding one----offsoffsoffsoffs

Q3 2018Q3 2018Q3 2018Q3 2018 VarianceVarianceVarianceVariance

France 6.5% (30) bps

NA, UK&I General Staffing 3.6% 30 bps

NA, UK&I Professional Staffing 5.4% 0 bps

Germany, Austria, Switzerland 4.8% (210) bps

Benelux & Nordics 3.6% (100) bps

Italy 8.6% 40 bps

Japan 7.0% 60 bps

Iberia 4.9% (50) bps

Rest of World 4.0% 30 bps

Career Transition & Talent Dev. 14.7% (1,120) bps

Adecco GroupAdecco GroupAdecco GroupAdecco Group 5.0% (40) bps(40) bps(40) bps(40) bps

(20) bps

(30) bps

5.0%

5.4% (15) bps

25 bps 5.0%


bps Q2 2018 Q3 2018

ReportedReportedReportedReported 0000 20202020

Acquisitions/divestments 15 30

Currency (15) 0

OrganicOrganicOrganicOrganic 0000 (10)(10)(10)(10)

Temporary staffing (15) (30)

Permanent placement 20 30

Career Transition (15) (10)

Other 10 0

Organic gross margin trend similar to Q2


o Q3 2018 gross margin up 20 bps; General Assembly and Vettery improving the mix

o Organic gross margin -10 bps

o Temp staffing gross margin -30 bps driven by CICE reduction (-15 bps) and price/mix (-15 bps)

Gross margin YoY SG&A productivity

o Full-time equivalent (FTE) employees up 1% organically

o SG&A +3% organically, of which approximately 1% related to strategic initiatives (N.B. the majority of incremental strategic investments is in M&A)

2% 2%

1%

3%

1%

0

1

1

2

2

3

3

4

Revenues,

TDA

Revenues Gross

profit

SG&A excl.

one-offs

FTE

employees

Organic YoY change (%

)

1,072 994

1,143

1,576

1,239

Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018Net debt in EUR millions

Net debto Net debt EUR 1,239 million at end of September

2018, vs. EUR 1,576 million at end of June 2018

o Net debt to EBITDA excl. one-offs 1.1x at 30 September 2018 vs 1.4x at 30 June 2018, and 0.8x at 30 September 2017

o Share buy back in progress (EUR 150 million)

Strong balance sheet and cash flow

Cash conversiono Cash flows from operations of EUR 165 million in

Q3 2018, compared to EUR 188 million in Q3 2017

o For Q3 2018, cash conversion was 78% for the last four quarters, compared to 80% in FY 2017

o DSO 54 days in Q3 2018 up from 53 days in Q2 2018 and in Q3 2017


0.8x

1.1x

= net debt to EBITDA excluding one-offs

27

PerformPerformPerformPerform

o Solid performance despite slower market growth

o Good underlying profitability - cost adjustments to protect our margin

TransformTransformTransformTransform

o GrowTogether scaling up and delivering results

o Will deliver first EUR 50 million savings in 2018, while establishing true

differentiation to drive growth

InnovateInnovateInnovateInnovate

o General Assembly and Vettery driving exciting innovation in our industry

Baader Helvea conference, Jan 2019The Adecco GroupThe Adecco GroupThe Adecco GroupThe Adecco Group

Concluding messages of Q3 2018

o Revenue growth in September and October combined was 1%, organically and

trading days adjusted

o In France, the transition from CICE to new social charge reductions will mean

no subsidies are paid for December. One-time negative impact on Group gross

margin of approx. 25 bps in Q4 2018, in addition to the continuing impact of the

reduction of CICE from 7% to 6%

o The Group will deliver the targeted EUR 50 million GrowTogether productivity

savings in 2018

Outlook


Revenues by segment, 2016-17


Revenues EUR millionsRevenues EUR millionsRevenues EUR millionsRevenues EUR millions Change % % of revenues

2017201720172017 2016 EURConstant currency Organic Organic, TDA1 2017 2016

France 5,3505,3505,3505,350 4,947 8% 8% 8% 9% 23% 22%

N. America, UK & I. General Staffing 3,0173,0173,0173,017 3,079 -2% 1% 1% 2% 13% 13%

N. America, UK & I. Prof. Staffing 3,6083,6083,6083,608 3,769 -4% -1% 0% 0% 15% 17%

Germany, Austria, Switzerland 2,1852,1852,1852,185 2,175 0% 1% 1% 2% 9% 10%

Benelux and Nordics 2,0792,0792,0792,079 1,897 10% 10% 9% 9% 9% 8%

Italy 1,8371,8371,8371,837 1,464 25% 25% 25% 26% 8% 6%

Japan 1,2761,2761,2761,276 1,276 0% 5% 5% 3% 5% 6%

Iberia 1,0851,0851,0851,085 979 11% 11% 11% 11% 4% 4%

Rest of World 2,7992,7992,7992,799 2,690 4% 5% 7% 7% 12% 12%

Lee Hecht Harrison 424424424424 432 -2% -1% -4% -4% 2% 2%

Adecco GroupAdecco GroupAdecco GroupAdecco Group 23,66023,66023,66023,660 22,70822,70822,70822,708 4%4%4%4% 6%6%6%6% 6%6%6%6% 6%6%6%6% 100%100%100%100% 100%100%100%100%

1 TDA = trading days adjusted


EBITA excluding oneEBITA excluding oneEBITA excluding oneEBITA excluding one----offsoffsoffsoffs Variance % EBITA margin excluding oneEBITA margin excluding oneEBITA margin excluding oneEBITA margin excluding one----offsoffsoffsoffs Variance bps

EUR millions 2017201720172017 2016 EURConstant currency 2017201720172017 2016

France 342342342342 321321321321 7% 7% 6.4%6.4%6.4%6.4% 6.5%6.5%6.5%6.5% (10) bps

N. America, UK & I. General Staffing 95959595 116116116116 -17% -15% 3.2%3.2%3.2%3.2% 3.8%3.8%3.8%3.8% (60) bps

N. America, UK & I. Professional Staffing 210210210210 219219219219 -5% -2% 5.8%5.8%5.8%5.8% 5.8%5.8%5.8%5.8% 0 bps

Germany, Austria, Switzerland 95959595 114114114114 -16% -16% 4.3%4.3%4.3%4.3% 5.2%5.2%5.2%5.2% (90) bps

Benelux and Nordics 72727272 73737373 -2% -1% 3.5%3.5%3.5%3.5% 3.9%3.9%3.9%3.9% (40) bps

Italy 141141141141 114114114114 23% 23% 7.7%7.7%7.7%7.7% 7.8%7.8%7.8%7.8% (10) bps

Japan 86868686 84848484 3% 8% 6.8%6.8%6.8%6.8% 6.6%6.6%6.6%6.6% 20 bps

Iberia 56565656 42424242 32% 32% 5.2%5.2%5.2%5.2% 4.3%4.3%4.3%4.3% 90 bps

Rest of World 92929292 74747474 24% 27% 3.3%3.3%3.3%3.3% 2.7%2.7%2.7%2.7% 60 bps

Lee Hecht Harrison 121121121121 120120120120 1% 2% 28.6%28.6%28.6%28.6% 27.7%27.7%27.7%27.7% 90 bps

Corporate (150)(150)(150)(150) (145)(145)(145)(145) 4% 5%

Adecco GroupAdecco GroupAdecco GroupAdecco Group 1,1601,1601,1601,160 1,1321,1321,1321,132 2222%%%% 4%4%4%4% 4.9%4.9%4.9%4.9% 5.0%5.0%5.0%5.0% (10) bps(10) bps(10) bps(10) bps

EBITA excluding one-offs by segment, 2016-17


Net debt at 30 September 2018


As of 30 As of 30 As of 30 As of 30 September September September September 2018201820182018Principal at maturityPrincipal at maturityPrincipal at maturityPrincipal at maturity

in millions in millions in millions in millions MaturityMaturityMaturityMaturity Fixed interest rateFixed interest rateFixed interest rateFixed interest rate Total in EUR millionsTotal in EUR millionsTotal in EUR millionsTotal in EUR millions

8-year guaranteed Euro medium-term notes EUR 500 2024 1.00% 497497497497


4-year guaranteed Euro medium-term notes USD 300 2021 2.625% 253253253253

8-year Swiss Franc fixed rate notes CHF 125 2020 2.625% 110110110110

8-year Swiss Franc fixed rate notes CHF 100 2026 0.875% 87878787


Committed multicurrency revolving credit facility EUR 600 2023 Variable rate ----

French commercial paper programme 2018 Variable rate 290290290290

Other 58585858

Short- & long-term debt 2,0092,0092,0092,009

Cash & short-term investments 770770770770

Net debt 1,2391,2391,2391,239

Long-term revenue performance versus peers


-30%

-20%

-10%

0%

10%

20%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Year-on-Year organic revenue growth

Peer 1 Adecco Group Peer 2

Continuing EBITA margin leadership


Note: ‘Adjusted’ means excluding formally disclosed one-offs; 2005-9 includes the negative impact of the French Business Tax, at the time reported in EBITA

0%

1%

2%

3%

4%

5%

6%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Adjusted EBITA margin

Peer 1 Adecco Group Peer 2

Cash conversion has averaged 90% in last 9 years


0%

20%

40%

60%

80%

100%

120%

140%

160%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Cash Conversion

Average 2009-17 = 90%

Average 2005-17 = 98%

Note: ‘Cash conversion’ is calculated as last 4 quarters of free cash flow before interest and tax paid (FCFBIT) divided by last 4 quarters of EBITA excluding one-offs

Key Dates


DateDateDateDate EventEventEventEvent

28 February 2019 Q4 2018 results

7 May 2019 Q1 2019 results

8 August 2019 Q2 2019 results

Nicholas de la Grense, CFA Head of Investor Relations

[email protected] +41 44 296 9192

Tommaso Scalese, CFA Investor Relations


Investor Relations


Investor Relations Team


Disclaimer and note on terminology


Forward-looking statements

Information in this release may involve guidance, expectations, beliefs, plans, intentions or strategies regarding the future. These forward-looking

statements involve risks and uncertainties. All forward-looking statements included in this release are based on information available to Adecco

Group AG as of the date of this release, and we assume no duty to update any such forward-looking statements. The forward-looking statements

in this release are not guarantees of future performance and actual results could differ materially from our current expectations. Numerous

factors could cause or contribute to such differences. Factors that could affect the Company’s forward-looking statements include, among other

things: global GDP trends and the demand for temporary work; changes in regulation affecting temporary work; intense competition in the

markets in which the Company operates; integration of acquired companies; changes in the Company’s ability to attract and retain qualified

internal and external personnel or clients; the potential impact of disruptions related to IT; any adverse developments in existing commercial

relationships, disputes or legal and tax proceedings.

Non-US GAAP measures used

‘Organic growth’ excludes the impact of currency, acquisitions and divestitures.

‘EBITA’ refers to operating income before amortisation and impairment of goodwill and intangible assets.

‘Net debt’ comprises short-term and long-term debt less cash and cash equivalents and short-term investments.

‘Free cash flow’ comprises cash flows from operating activities less capital expenditures.

‘Cash conversion’ is calculated as last 4 quarters of free cash flow before interest and tax paid (FCFBIT) divided by last 4 quarters of EBITA excluding one-offs.

‘Net debt to EBITDA’ is calculated as net debt at period end divided by last 4 quarters of EBITA excluding one-offs plus depreciation.

January 2019 The Adecco Group Baader Helvea conference ... · Our investment story The Adecco Group...

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