STRONG MARGIN AND CONTINUED GROWTH IN Q2 2017

STRONG MARGIN AND CONTINUED GROWTH IN Q2 2017

Putting the strategy into action and delivering excellent productivity and cash conversion

Summary and highlights

• Revenue growth momentum maintained at 6% organically[1] and trading days adjusted

• Q2 EBITA[2] margin 4.8%, negatively impacted by the timing of bank holidays; H1 EBITA margin up 20 bps while investing for the future

• Strong productivity continues, with FTE employees up only 1% and SG&A excluding one-offs[3] up 2%, both organically

• Net income attributable to Adecco Group shareholders EUR 192 million

• Excellent cash conversion and strong balance sheet, with 0.8x net debt[4] to EBITDA excluding one-offs[5]

• Further progress on digital strategy, including a new global partnership with Mya Systems, a leading artificial intelligence (AI) player in HR technology

• Revenues in June 2017 up 6%, organically and trading days adjusted

“In Q2 2017, we made further progress on our strategic agenda of Perform, Transform, and Innovate, thanks to the engagement of our more than 33,000 colleagues. Our performance continued: revenue growth was robust, driven in particular by strength in France, Italy, Iberia and Benelux. We maintained our focus on productivity, with an increase of only 1% in FTE employees to deliver 6% underlying revenue growth, and cash conversion was again strong.

Alongside driving our performance, we are continuing to transform and innovate to capture the opportunities we see in our markets. Implementation of our segmentation strategy is driving strong growth with small- and medium- sized clients and with our onsite delivery model for large clients. We are investing in IT infrastructure and Digital innovation: we signed a new global partnership agreement with Mya Systems, a leading AI player in HR tech; we launched our digital Active Placement model in Lee Hecht Harrison; and we commenced the rollout in the UK of Adia, our end-to-end online staffing platform.”

Alain Dehaze, Group Chief Executive Officer

Note to Editors:

The Adecco Group CEO Alain Dehaze will provide the company highlights and outlook also as part of a video news release for broadcasters available as of 08:00 CET. LINK TO VNR

[1] Organic growth is a non-US GAAP measure and excludes the impact of currency, acquisitions and divestitures.

[2] EBITA is a non-US GAAP measure and refers to operating income before amortisation and impairment of goodwill and intangible assets.

[3] In Q2 2016, SG&A included one-offs of EUR 2 million.

[4] Net debt is a non-US GAAP measure and comprises short-term and long-term debt less cash and cash equivalents and short-term investments.

[5] Net debt to EBITDA excluding one-offs is a non-US GAAP measure and is calculated as net debt at period end divided by the last 4 quarters of EBITA excluding one-offs plus depreciation.