Slide 1: Q1 2018 results
Q1 2018 results 8 May 2018 Q1 2018 results The Adecco Group © May 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 Q1 2018 – 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 Q1 2018 results The Adecco Group © May 2018 3
Slide 4: Highlights Q1 2018
Highlights Q1 2018 Alain Dehaze Group CEO Q1 2018 results The Adecco Group © May 2018 4
Slide 5: Key highlights from the Q1 2018 results
Key highlights from the Q1 2018 results Q1 2018 financial summary o Revenue growth 6% organically and trading days adjusted o Strong performance in permanent placement, revenues up 18% organically o Gross margin 18.1%; down 60 bps organically, impacted by timing of bank holidays (-25 bps), higher si
Slide 6: Financial performance
Financial performance Hans Ploos van Amstel Group CFO Q1 2018 results The Adecco Group © May 2018 6
Slide 7: Positive revenue momentum continues
Positive revenue momentum continues Group revenue growth Segment revenue growth Organic revenue growth, trading days adjusted 8 Q1 2018 vs market 7 France 10% = Organic revenue growth, TDA (%) 7% 6 NA, UK&I General Staffing -1% NA - / = UK&I 6% 6% 6% 6% 6% NA, UK&I Professional Staffing -2% NA + / -
Slide 8: EBITA margin impacted by gross margin non-underlying effects and strategic investments
EBITA margin impacted by gross margin non-underlying effects and strategic investments Group EBITA margin YoY Segment EBITA margins YoY EBITA margin excluding one-offs Q1 2018 Variance (60) bps Gross margin 4.8% 4.8% (60) bps France 5.2% (80) bps non-underlying effects (35) bps NA, UK&I General Staf
Slide 9: Underlying gross margin trend slightly improved, SG&A increase driven by investments
Underlying gross margin trend slightly improved, SG&A increase driven by investments in FTEs and strategic initiatives Gross margin YoY SG&A productivity 9 bps FY 2017 Q1 2018 8 8% Reported (40) (70) 7 Organic YoY change (%) Acquisitions/divestments (10) 10 6% 6 Currency 10 (20) 5 4% 4% Organic (40)
Slide 10: Strong balance sheet
Strong balance sheet Cash conversion Net debt o Cash flows from operations of EUR 16 million in o Net debt EUR 1,143 million at end of March 2018, Q1 2018, compared to EUR 115 million in Q1 2017 vs. EUR 994 million at end of December 2017 o For Q1 2018, cash conversion was 75%, compared to o Net deb
Slide 11: Growth momentum continues into March and April 2018
Growth momentum continues into March and April 2018 Exit rate o Revenues in March & April 2018 up 5-6%, organically and trading days adjusted o In Q2 2018, bank holiday phasing will be favourable and is expected to positively impact Group gross margin by approximately 15 bps compared to Q2 2018 Q1 2
Slide 12: Strategic and operational progress
Strategic and operational progress Alain Dehaze Group CEO Q1 2018 results The Adecco Group © May 2018 12
Slide 13: GrowTogether: transforming our processes and customer experience
GrowTogether: transforming our processes and customer experience 1) New front-office tools - fully integrated with customer facing platforms • France: Candidate App ‘Adecco et Moi’ o Today >176,000 downloads, 32% of temps using the App o End 2018 300,000 downloads, 50% of temps using the App 2) Time
Slide 14: General Assembly is a pioneer in education and career transformation
General Assembly is a pioneer in education and career transformation “General Assembly is the solution to the global skills gap” Jake Schwartz, CEO & Co-Founder GA offers employer-focused, practitioner-taught technical skills training and development in high-demand 21st-century digital skills, such
Slide 15: General Assembly delivers Consumer and Enterprise solutions across multiple channels
General Assembly delivers Consumer and Enterprise solutions across multiple channels Students New Employee Upskill / Reskill Talent Pipeline as a Service Bootcamps Bootcamps (TPaaS) Acquire skills to get a job Bespoke programmes to Transform the skills of Source, train and onboard or a promotion onb
Slide 16: Combination creates unique solutions
Combination creates unique solutions Synergies for the Adecco Group Synergies for General Assembly o Responds to strong client demand for o Access to 100,000+ enterprise up-skilling and re-skilling services clients to support lead generation and cross-selling o Enhances value proposition of Lee Hech
Slide 17: General Assembly fulfils the Adecco Group's acquisition criteria
General Assembly fulfils the Adecco Group’s acquisition criteria “Buy-and-build” acquisition strategy General Assembly… means that with any acquisition… We accelerate our strategic Expands the Adecco Group’s development, broadening and up-/re-skilling solutions, responding to diversifying our offeri
Slide 18: Concluding messages of Q1 2018
Concluding messages of Q1 2018 o Positive revenue growth continues, with March/April combined up 5-6%, organically and trading days adjusted o Continued investment in our Perform, Transform, Innovate agenda o Margin trend will improve from Q2, as non-underlying impacts reduce and returns on strategi
Slide 19: Questions & Answers
Questions & Answers Q1 2018 results The Adecco Group © May 2018 19
Slide 20: Key Dates 2018
Key Dates 2018 Date Event 9 August 2018 Q2 2018 results 19 September 2018 Investor Day 6 November 2018 Q3 2018 results Q1 2018 results The Adecco Group © May 2018 20
Slide 21: The Adecco Group
A THE ADECCO GROUP