Post on 31-Aug-2019
transcript
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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
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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%
Contribution to Group revenues
21%
Information Technology 10%
Finance & Legal 4%
Engineering & Technical 5%
Medical & Science 2%
Contribution to Group revenues
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
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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 (%)
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Our investment story
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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
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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
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The Adecco Group is strongly positioned to expand its leadership
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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
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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
The Adecco GroupThe Adecco GroupThe Adecco GroupThe 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
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Investing in GrowTogether & New Ventures to drive growth and margin
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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
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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
The Adecco GroupThe Adecco GroupThe Adecco GroupThe Adecco Group
Co-created with Infosys
Co-created with Microsoft
Digital Platforms
Staffing Permanent RecruitmentFreelance
Digital Skills
Upskilling and Reskilling
15
Other Partnerships and Investments
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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
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“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
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• 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
The Adecco GroupThe Adecco GroupThe Adecco GroupThe Adecco Group
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
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Our path to 2020: investments to drive sustainable margin improvement
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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
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Moderation in organic revenue growth in Q3, driven by Europe
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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
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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
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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%
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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
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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
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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
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Revenues by segment, 2016-17
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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
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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
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Net debt at 30 September 2018
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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
7-year guaranteed Euro medium-term notes EUR 500 2022 1.50% 500500500500
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
6-year guaranteed Euro medium-term notes EUR 214 2019 2.75% 214214214214
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
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-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
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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
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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
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Key Dates
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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
Nicholas.delagrense@adeccogroup.com +41 44 296 9192
Tommaso Scalese, CFA Investor Relations
tommaso.scalese@adeccogroup.com +41 44 878 8934
Investor Relations
Investor.relations@adeccogroup.com +41 44 878 8888
Investor Relations Team
Baader Helvea conference, Jan 2019The Adecco GroupThe Adecco GroupThe Adecco GroupThe Adecco Group 38
Disclaimer and note on terminology
Baader Helvea conference, Jan 2019The Adecco GroupThe Adecco GroupThe Adecco GroupThe Adecco Group 39
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.
Baader Helvea conference, Jan 2019The Adecco GroupThe Adecco GroupThe Adecco GroupThe Adecco Group 40