Slide 1: The Adecco Group Q2 2018 results
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Slide 2: Disclaimer & note on terminology
Disclaimer & 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
Slide 3: Agenda
Agenda © Highlights Q2 2018 - Alain Dehaze, Group CEO © Financial Performance - Hans Ploos van Amstel, Group CFO o Strategic and Operational Progress - Alain Dehaze, Group CEO © Questions & Answers Q2 2018 results A The Adecco Group © August 2018 3
Slide 4: Highlights
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Slide 5: Key highlights from the Q2 2018 results
Key highlights from the Q2 2018 results Q2 2018 financial summary © Revenue growth 4% organically and trading days adjusted (TDA) © Return to growth in North America General Staffing, +3% TDA © Continued strong performance in permanent placement, revenues up 18% organically © Gross margin 18.3%; sta
Slide 6: Financial performance
A THE ADECCO GROUP NN Financial performance Hans Ploos van Amstel Group CFO
Slide 7: Slower but more balanced revenue growth
Slower but more balanced revenue growth Group revenue growth Segment revenue growth Organic revenue growth, trading days adjusted Q2 2018 vs market zg ° France 8% + A 8 NA, UK&l General Staffing A% NA= / + UK&l - ’ a NA, UK&l Professional Staffing -2% NA= / - UK&l 3 : 6% 6% 6% be Germany, Austria, S
Slide 8: EBITA margin impacted by investments
EBITA margin impacted by investments Group EBITA margin YoY 4.8% o bps (20) bps (10) bps 4.5% Q22018 Gross margin, | SG&A/revenues, Currency Qi2018 excl. one-offs organic organic & M&A excl. one-offs © EBITA margin excluding one-offs -30 bps YoY © Strategic investments had a negative impact of 30 bp
Slide 9: Gross margin stable, SG&A increase driven by investments in strategic initiatives and FTEs
Gross margin stable, SG&A increase driven by investments in strategic initiatives and FTEs Gross margin YoY SG&A productivity bps Q12018 | Q2 2018 Reported (70) fe) Acquisitions/divestments 10 5 Currency (20) (15) Organic (60) fo) Temporary staffing (60) (15) Permanent placement 20 20 Career Transit
Slide 10: Strong balance sheet and cash flow
Strong balance sheet and cash flow Cash conversion Net debt © Cash flows from operations of EUR 303 million in o Net debt EUR 1,576 million at end of June 2018, Q2 2018, compared to EUR 237 million in Q2 2017 vs. EUR 1,143 million at end of March 2018 © For Q2 2018, cash conversion was 78% for the l
Slide 11: Outlook
Outlook Exit rate and gross margin o Revenue growth in June and July combined was 4%, organically and trading days adjusted © In Q3 2018, there are not anticipated to be any significant one-off effects on the Group gross margin o The Group is on track to deliver EUR 50 million GrowTogether productiv
Slide 12: Strategic and operational progress
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Slide 13: Portfolio management: sale of IQN/Beeline Holdings stake
Portfolio management: sale of IQN/Beeline Holdings stake © Beeline, a leading Vendor Management System (VMS) platform, joined the Adecco Group as part of the MPS Group acquisition in 2010 o Synergies with Pontoon’s Managed Service Provider (MSP) business have reduced as client preferences moved towa
Slide 14: General Assembly acquisition completed in May
General Assembly acquisition completed in May o GA, a leader in digital skills transformation, officially joined the Group on 31 May 2018 © Positive response from clients - strong interest to explore the Group's enhanced workforce transformation possibilities © First joint meetings with clients conf
Slide 15: Concluding messages of Q2 2018
Concluding messages of Q2 2018 © Slower but more balanced revenue growth. June/July combined up 4%, organically and trading days adjusted © Continued investment in our Perform, Transform, Innovate agenda o GrowTogether initiatives are improving recruiting efficiency, sales effectiveness and our back
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Slide 17: Key Dates 2018 & 2019
Key Dates 2018 & 2019 Date Event 19 September 2018 Analyst and Investor Seminar 6 November 2018 Q3 2018 results 28 February 2019 Q4 2018 results 7 May 2019 Qi 2019 results 8 August 2019 Q2 2019 results Q2 2018 results A The Adecco Group © August 2018 W
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A THE ADECCO GROUP