Slide 1: Q3 24 report
Q3 24 report Denis Machuel, CEO & Coram Williams, CFO 5 November 2024
Slide 2: Disclaimer & note on terminology
Disclaimer & note on terminology Forward-looking statements Non-US GAAP measures used Information in this release may involve guidance, expectations, beliefs, ‘Organic growth’ excludes the impact of currency, acquisitions and divestitures. plans, intentions or strategies regarding the future. These
Slide 3: Q3 24 highlights
Q3 24 highlights Solid revenue result given market conditions, high comparison base; volumes stabilising Robust margins, reflecting lower volumes, current business mix, firm pricing and strong G&A savings Selectively protecting sales and delivery capacity to capture growth opportunities, gain market
Slide 4: Resilient performance given market headwinds, high comparison base
Resilient performance given market headwinds, high comparison base Revenues €4.4 bn, -5% yoy EBITA €150 mn, 3.4% margin • Organic revenues -3%, with flex -3.5%, perm Share of Group 77% Share of Group 68% -2.5%, outsourcing +1%. Enterprise soft, 3% 5% 4% 3% 1% 4.1% SMEs +1%1 -2% 3.5% 3.5% 3.8% 3.4% 3
Slide 5: Growth across Asia, LatAm, Iberia, EEMENA; RoW challenging
Growth across Asia, LatAm, Iberia, EEMENA; RoW challenging Market EBITA and EBITA margin Revenues share excl. one-offs • France: tougher market qoq. Logistics, By Segment As % of Q3 24 Q3 24 Q3 24 Q3 24 Change, manufacturing, healthcare pressured. Q3 24 Right-sizing continues Group € mn % yoy € mn m
Slide 6: Robust Consulting performance led by APAC
Robust Consulting performance led by APAC Revenues €869 mn, -5% yoy EBITA €44 mn, 5.1% margin Share of Group 15% Share of Group 20% • Consulting & Solutions +2%1, ahead of market 12% 8% 3% 5% 4% 8.8% 2% 4.8% 5.2% 6.2% 5.8% 4.9% 5.1% • EMEA soft: France -2%, Germany –7%. Autos, 4% -1% -3% -5% -2% -2%
Slide 7: Career Transition healthy; Recruitment Solutions stabilising
Career Transition healthy; Recruitment Solutions stabilising Revenues €424 mn, -7% yoy EBITA €26 mn, 6.0% margin Share of Group 8% Share of Group 12% 2% 0% 0% 7.6% 8.0% 7.3% 7.5% -2% 6.8% 7.0% 6.0% -5% -7% -7% • RS: Gross profit -9%, with US -10%, ahead of market, stabilising qoq in a soft market •
Slide 8: Robust margins reflecting lower volumes, current business mix, G&A savings
Robust margins reflecting lower volumes, current business mix, G&A savings Selectively protecting sales and delivery capacity Gross profit bridge EBITA bridge, excl. one-offs As % of revenues yoy, in bps As % of revenues +5 (60) (10) (10) (15) 0 +5 (95) (5) +25 +0 20.8% 20.3% 19.4% 4.0% 3.3% Q3 23 Q
Slide 9: Solid cash generation, financing structure
Solid cash generation, financing structure Cash generation Balance sheet & financing metrics • Q3 Cash Conversion 72% • End-Q3 net debt/EBITDA 3.1x • Q3 Operating Cash Flow +€121 mn • Net debt €2,925 mn – YoY development driven by lower business income, plus • €300 mn, 8-year bond successfully issue
Slide 10: Near term outlook
Near Near term outlook term outlook • Volumes stabilising throughout Q3 and in October 2024 • For Q4, the Group expects its revenues, on a year-on-year organic TDA basis, gross margin, and SG&A expenses excluding one-offs as a percent of revenues, to be similar to Q3 2024 outcomes, including seasona
Slide 11: Continued delivery of Simplify-Execute-Grow agenda
Continued delivery of Simplify-Execute-Grow agenda Delivering strong market share gains Achieving further G&A savings Building a GenAI powered business, at pace Relative revenue development Net G&A savings run-rate, by quarter (% change, reported, in EUR terms) (EUR mn, organic, budget rate) Acceler
Slide 12: Building a GenAI powered business, at pace
Building a GenAI powered business, at pace IT/digital roadmap introduced: clear priorities established for next 2-3 years Accelerate investment in innovation, GENAI Enhanced by strategic partnerships • Expanding Global Delivery solution to improve fill rates, Salesforce: expanded agreement to signif
Slide 13: Focus on growing market share and adding value
Focus on growing market share and adding value Q3 client case studies Luxury goods client, Italy Public Services client, UK Life Sciences client, Germany New partnership with global potential. New client, leveraging Australian track- Cross-sell via CT relationship. Global, Multi-year contract. recor
Slide 14: Q3 Results: key takeaways
Q3 Results: key takeaways Relative revenue growth +850 bps since introduction of Simplify-Execute- Grow agenda Relentless focus on G&A savings run-rate end-24 lifted to €171 mn market share gain, Reprioritised IT/digital roadmap accelerating adoption of AI, expanding improved Global Delivery t
Slide 15: Q&A
Q&A
Slide 16: Appendix
Appendix
Slide 17: Additional financial framework
Additional financial framework EUR mn, unless otherwise stated FY 2023 FY 2024 Est. Q1 2024 Q2 2024 Q3 2024 Q4 2024 Est. One-off costs (133)1 ~ (90) (13) (45) (3) ~ (30) Depreciation (154) ~ (160) (41) (43) (40) ~ (35) Amortisation (102) ~ (80) (22) (21) (21) ~ (16) ~ (75) Interest expense (77) (17)
Slide 18: investor.relations@adeccogroup.com
18 investor.relations@adeccogroup.com