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Continued growth and strategic progress in q1 2018
May 8, 2018


Good underlying growth; one-offs and investments impact profitability

Summary and highlights

  • Revenue growth 6% organically1 and trading days adjusted
  • Strong performance in permanent placement, revenues up 18% organically
  • Gross margin impacted by the timing of bank holidays (-25 bps), higher sickness rates and strikes in Germany (-10 bps), and lower CICE (-15 bps). Trend in price and mix slightly improved (-10 bps)
  • EBITA2 margin excluding one-offs3 3.8%; down 100 bps, due to lower gross margin, FTE growth and strategic investments. Trend to improve from Q2, as impact of investments reduces and bank holidays are favourable
  • Net income attributable to Adecco Group shareholders EUR 130 million
  • Revenues in March and April up 5-6%, organically and trading days adjusted
  • Acquisition of General Assembly will expand the Adecco Group’s up-/re-skilling offering, creating unique solutions to address clients’ unmet needs for in-demand 21st-century skills

“In Q1 2018, we continued to invest in the transformation and digitalisation of the Adecco Group, within the framework of our Perform, Transform and Innovate agenda. On the Perform pillar, underlying revenue growth remained good, including an acceleration to 10% in France, where we are again growing in-line with the market. The EBITA margin was negatively impacted by several non-underlying factors and ongoing investments in our strategic initiatives. These effects will reduce during the remainder of 2018. In addition, we will further intensify our focus on driving strong productivity growth from recent headcount investments. GrowTogether is also on track to deliver EUR 50 million of benefits in the second half of 2018.

On the Transform and Innovate agendas, new systems such as our Integrated Front-Office (InFO) and customer portals are transforming the way we interact with clients, candidates and associates. The recently announced acquisition of General Assembly is a further significant development, creating a unique combined value proposition, at the intersection of education and employment.

Over the last 12 months, significant progress has been made in the strategic development of the Group. We are embedding best practices and deploying new tools to strengthen our core businesses. And we have expanded our solutions portfolio, organically and via targeted M&A, to include leading platforms in online staffing (Adia), freelance (YOSS), digital permanent recruitment (Vettery) and now up-/re-skilling (General Assembly). With these actions we are leveraging the workforce megatrends and taking the Group into attractive adjacent markets, supporting our commitment to accelerate structural revenue growth, improve margins and drive continued strong cash flow.

I look forward to more progress during 2018, as we further embed our strategic programmes, and would like to thank our more than 34,000 colleagues for their commitment to that cause.”

Alain Dehaze, Group Chief Executive Officer

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

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

3In Q1 2018, EBITA included one-offs of EUR 19 million, relating to restructuring costs; in Q1 2017, EBITA included one-offs of EUR 3 million, relating to restructuring costs.

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