Slide 1: Q4 and FY 2017 results
Q4 and FY 2017 results 1 March 2018 Q4 and FY 2017 results The Adecco Group © March 2018 1
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 o Highlights Q4 & FY 2017 – Alain Dehaze, Group CEO o Financial Performance – Hans Ploos van Amstel, Group CFO o Strategic and Operational Progress – Alain Dehaze, Group CEO o Questions & Answers Q4 and FY 2017 results The Adecco Group © March 2018 3
Slide 4: Highlights Q4 & FY 2017
Highlights Q4 & FY 2017 Alain Dehaze Group CEO Q4 and FY 2017 results The Adecco Group © March 2018 4
Slide 5: Key highlights in the Q4 & FY 2017 results
Key highlights in the Q4 & FY 2017 results Q4 2017 o Revenue growth accelerated to 7% organically and trading days adjusted o EBITA margin excluding one-offs of 4.6%; down 50 bps yoy impacted by timing of bank holidays (-20 bps), unfavourable year-on-year impact from accruals (-20 bps), strategic in
Slide 6: Financial performance
Financial performance Hans Ploos van Amstel Group CFO Q4 and FY 2017 results The Adecco Group © March 2018 6
Slide 7: Positive momentum continues with improvement in revenue growth
Positive momentum continues with improvement in revenue growth Group revenue growth Segment revenue growth Organic revenue growth, trading days adjusted 8 Q4 2017 vs market 7 France 9% - Organic revenue growth, TDA (%) 7% 6 NA, UK&I General Staffing 2% NA - / + UK&I 6% 6% 6% 6% NA, UK&I Professional
Slide 8: EBITA margin impacted by timing of public holidays, investments, accruals
EBITA margin impacted by timing of public holidays, investments, accruals Group EBITA margin YoY Segment EBITA margins YoY EBITA margin excluding one-offs Q4 2017 Variance 5.1% 5.1% (70) bps (70) bps After investing 25 bps France 6.3% (40) bps in strategic initiatives NA, UK&I General Staffing 3.0%
Slide 9: Continued strong productivity; underlying gross margin trend unchanged
Continued strong productivity; underlying gross margin trend unchanged Gross margin YoY SG&A productivity 8 bps H1 2017 Q3 2017 Q4 2017 7% 7% 7 Reported (40) (20) (90) Organic YoY change (%) Acquisitions/divestments (10) (10) (10) 6 Currency 10 0 (10) 5% 5 Organic (40) (10) (70) 4 Temporary staffing
Slide 10: Strong cash conversion and balance sheet
Strong cash conversion and balance sheet Cash conversion Net debt o Cash flows from operations of EUR 198 million in o Net debt EUR 994 million at end of December 2017, Q4 2017, resulting in a total of EUR 730 million in vs. EUR 1,072 million end of September 2017 FY 2017, compared to EUR 687 millio
Slide 11: Dividend of CHF 2.50 per share and 2018 share buyback announced
Dividend of CHF 2.50 per share and 2018 share buyback announced Dividend 2018 share buyback o CHF 2.50 proposed dividend for 2017, +4% yoy o Net debt to EBITDA excluding one-offs 0.8x at year-end 2017 o Payout ratio 46% of Adjusted EPS, consistent with payout range of 40-50% o Acquisition of Vettery
Slide 12: Growth momentum continues into January and February 2018
Growth momentum continues into January and February 2018 Exit rate o Revenues in January & February 2018 up 5%, organically and trading days adjusted o In Q1 2018, bank holiday phasing unfavourable, with negative impact on gross margin of 30 bps Q4 and FY 2017 results The Adecco Group © March 2018 1
Slide 13: Strategic and operational progress
Strategic and operational progress Alain Dehaze Group CEO Q4 and FY 2017 results The Adecco Group © March 2018 13
Slide 14: Continued progress on our strategic agenda in Q4 2017
Continued progress on our strategic agenda in Q4 2017 PERFORM TRANSFORM INNOVATE Deployment of Integrated Front Office in InFO France, Spain, US and the UK Adia Rolled-out in three markets within 10 months (Germany in Q4) YOSS “Go-live” in France in February Vettery Gateway Platform for online Profe
Slide 15: Building our Digital Portfolio
Building our Digital Portfolio Investments Internal Development Co‐Creation and/or Acquisitions Flexible Staff Just-in-time Online Staffing Management staffing for large events Connecting Freelance Freelancers & Enterprises Online Permanent Permanent Recruitment Recruitment Leveraging Big Recruitmen
Slide 16: Vettery acquisition: entering professional permanent recruitment
o Highly fragmented professional permanent recruitment market; the Adecco Group has less than 1% market share o Vettery uses machine learning algorithms to attract in-demand talents and to connect the best candidates to its clients for permanent positions o Reduces time-to-hire and improves quality
Slide 17: Concluding messages of Q4 2017
Concluding messages of Q4 2017 o Further progress on Perform, Transform and Innovate agenda o Driving our strategic agenda and working on our strategic initiatives o In Q4 2017, positive growth momentum continued and we achieved another quarter of strong productivity o In January and February combin
Slide 18: Questions & Answers
Questions & Answers Q4 and FY 2017 results The Adecco Group © March 2018 18
Slide 19: Key Dates 2018
Key Dates 2018 Date Event 19 April 2018 Annual General Meeting 8 May 2018 Q1 2018 results 9 August 2018 Q2 2018 results 6 November 2018 Q3 2018 results Q4 and FY 2017 results The Adecco Group © March 2018 19
Slide 20: The Adecco Group
A THE ADECCO GROUP