Corporate presentation May 2011
Corporate presentation
November 5, 2009May 2011
Content
• Our visionO l b l h• Our global reach
• Our strategy• Our business• Our corporate social responsibility• Our results• Our future perspective
May 2011Corporate Presentation
Slide 2
Our vision
May 2011Corporate Presentation
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Our vision
We inspire individuals and organisations to work more effectively and efficiently, and create greater choice in the domain of work, for the benefit of all concerned. As the world’s leading Human Resources services group aworld s leading Human Resources services group – a business that has a positive impact on millions of people every day – we are conscious of our global role.every day we are conscious of our global role.
For more information:
May 2011Corporate Presentation
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www.adecco.com/AboutAdecco
Our global reach
May 2011Corporate Presentation
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Our global reach
Adecco Group operatesAdecco Group operates in over 60 countries and territories worldwide
We help over 700,000 people find work every day through our network
The Adecco Group is the world’s leading provider of HR solutions The servicesevery day through our network
of more than 32,000 full-time employees and over 5,500 offices in over 60 countries and territories.
provider of HR solutions. The services offered fall into the broad categories of temporary staffing, permanent placement, outsourcing, consulting and outplacement.
May 2011Corporate Presentation
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Our strategy
May 2011Corporate Presentation
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Adecco Group strategyOverview of staffing and other HR-related services marketg
For more information:
VMS (Vendor Management System)
May 2011Corporate Presentation
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www.adecco.com/AboutAdecco
Adecco Group strategyOur twofold approach to the marketpp
May 2011Corporate Presentation
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Our business
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Our businessGeneral staffing*: global reachg g
• Industrial and office focusFlexible staffing solutions
Geographical split of general staffing*FY 2010 75% of total group revenues• Flexible staffing solutions
• Serve large global clients and mid-sized enterprisesT d t
FY 2010, 75% of total group revenues
36% FRANCE
13% NORTH AMERICA• Temporary and permanent placement
• Assessment, training and integrated h l ti
4% UK & IRELAND
7% GERMANY & AUSTRIA
8% JAPAN
5% ITALY
4% IBERIAhuman resources solutions 4%4% NORDICS
5% BENELUX
3% SWITZERLAND
2% AUSTRALIA & NEW ZEALAND
9% EMERGING MARKETS
* Based on dedicated branches
9% EMERGING MARKETS
*As of January 1 2011 our business line structure has changed
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* Based on dedicated branches*As of January 1, 2011, our business line structure has changed. The current slide still reflects the 2010 business structure.
Our businessGeneral staffing* – office: our activities
• Administrative / clerical
g
Office
• Assistance • Customer service • Human resources • Import/export • Project management • Purchasing • Secretarial / PA
etc.
Adecco Office provides associates with serial assignments, ensuring continuity in the relationship. Skills are enhanced through continuous S s a e e a ced t oug co t uouslearning in challenging projects.
*A f J 1 2011 b i li t t h h d
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*As of January 1, 2011, our business line structure has changed. The current slide still reflects the 2010 business structure.
Our businessGeneral staffing* – industrial: our activitiesg
• Assembly
Industrial
• Production • Machine operation • Mechanical trades• Warehousing• Packaging• Packaging• Shipping and receiving • Bindery and fulfilment
etc.
Specialised solutions have been developed for:
• Aerospace• Automotive
Construction• Construction• Transport and logistics
etc.
*As of January 1 2011 our business line structure has changed
May 2011Corporate Presentation
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*As of January 1, 2011, our business line structure has changed. The current slide still reflects the 2010 business structure.
Our businessProfessional business*: global reachg
• Professional business lines• High level specialist points of
Geographical split of professional business*FY 2010 25% of total group revenues• High level specialist points of
contact• Longer-lasting assignments• Quality placements and services
FY 2010, 25% of total group revenues
12% FRANCE39% NORTH AMERICA• Quality placements and services
• Short to long-term projects• Secondment, permanent
placements temporary recruitment
23% UK & IRELAND5% GERMANY & AUSTRIA4% JAPAN2% ITALY3% IBERIAplacements, temporary recruitment
solutions, outplacement, consulting and managed solutions
3% IBERIA4% NORDICS3% BENELUX1% SWITZERLAND4% AUSTRALIA & NEW ZEALAND
< 0 5% EMERGING MARKETS
* Based on dedicated branches
< 0.5% EMERGING MARKETS
*As of January 1 2011 our business line structure has changed
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* Based on dedicated branches*As of January 1, 2011, our business line structure has changed. The current slide still reflects the 2010 business structure.
Our businessProfessional business lines* – our activities
• Sourcing and deploying highly skilled IT specialistsi i t d i h t h l i t t li t ‘
Information Technology
in mainstream and niche technologies to meet clients‘ temporary, permanent and project needs.
• Serving clients with structured HR solutions such as infrastructure management, testing services, recruitment process outsourcing and multi language help deskprocess outsourcing, and multi-language help desk.
Engineering & Technical
• Providing the appropriate skilled engineers and technical specialists for temporary, longer-term secondment, and work package-based assignments.
• Major sectors of expertise including electronics automotive and transportation, energy, oil & gas, utilities, medical products, aerospace, chemicals & raw materials.
*As of January 1 2011 our business line structure has changed
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*As of January 1, 2011, our business line structure has changed. The current slide still reflects the 2010 business structure.
Our businessProfessional business lines* – our activities
• Serving our clients across commerce and industry, fi i l i b ki i bli ti
Finance & Legal
financial services, banking, insurance, public practice, law firms and corporate law departments
• Our global network consists of over 200 branch offices in 17 countries operating under the following brands: Adecco Finance Ajilon Finance Ajilon Legal DIS AGAdecco Finance, Ajilon Finance, Ajilon Legal, DIS AG Finance, Jonathan Wren and Badenoch & Clark
Medical & Science• Global outsourcing
• Quality management
• International Mobility
*As of January 1 2011 our business line structure has changed
May 2011Corporate Presentation
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*As of January 1, 2011, our business line structure has changed. The current slide still reflects the 2010 business structure.
Our businessProfessional business lines* – our activities
• Serving our clients with temporary assignments, recruitment and selection of professionals to fully
Sales, Marketing & Events
recruitment and selection of professionals to fully managed teams
• Specialised in all your B-to-B and B-to-C touch points, from call center solutions, promotions, merchandising, sales to eventssales to events
• Restructuring and talent management solutions for
Human Capital Solutionsg g
companies and organisations aiming to optimise their human capital
• Under the global brand name of Lee Hecht Harrison, the business line provides consulting services to companies and organisations, while helping individuals develop their career and leadership potential
*As of January 1 2011 our business line structure has changed
May 2011Corporate Presentation
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*As of January 1, 2011, our business line structure has changed. The current slide still reflects the 2010 business structure.
Our businessProfessional business lines* – our activities
• RPO serves companies to outsource the permanent recruiting process (distinct from executive search and
Recruitment Process Outsourcing (RPO)
g p (traditional permanent staffing).
• RPO provides any or all in-house/corporate recruiting dept. Services
Managed Service Provider (MSP) & VMS• MSP supports a company’s outsourced contingent work-
force programme, i.e. management of the order fulfillmentprocess while the supplier network focuses on the recruitment process The MSP programme delivers speed
Managed Service Provider (MSP) & VMS
recruitment process. The MSP programme delivers speed,quality cost and compliance measured by service and operational level agreements. Management of SOW andthird party service contracts may also be part of MSP.
• The Beeline VMS software provides organisations a leadingThe Beeline VMS software provides organisations a leadingedge platform to manage contingent, temporary and consul-ting personnel. It enables companies to manage costs and risks and supplier performance while giving comprehensiveinsight and unparalleled business intelligence.
May 2011Corporate Presentation
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*As of January 1, 2011, our business line structure has changed. The current slide still reflects the 2010 business structure.
Our corporate social responsibility
May 2011Corporate Presentation
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Adecco corporate social responsibility Prioritising activitiesg
EmployeesCustomers & ShareholdersSociety
Stakeholders Global Programmes
ExcellenceExcellence AwardsSkillsWi 4Y th
For more information:
yWin4YouthIntegrationIOC Athlete Career ProgrammeIPC Athlete Career Programme
May 2011Corporate Presentation
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www.adecco.com/Corporate social responsibility
Our results
May 2011Corporate Presentation
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Q1 2011 results summary
Reported Variance (11 vs. 10) in percent0 EUR m % of rev.
0Re en es 4 915 24
0.0 50.0 100.0Reported Organic1)
0
0
Revenues
Gross profit
4,915
8540.0% 17.4%
24
20
14
18
13
0.0%SG&A 0
175EBITA2) before integration costs
682 13.9%
3.6%
14
48
6
43
Operating income 0 0.0%
0
3.2%
3.5%EBITA2)
158
0.0% 172 53
57
47
100 2.0%0.0%Net income attributable toAdecco shareholders
77
1) Organic growth is a non US GAAP measure and excludes the impact of currency and acquisitions
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1) Organic growth is a non US GAAP measure and excludes the impact of currency and acquisitions.2) EBITA is a non US GAAP measure and refers to operating income before amortisation of intangible assets.
Revenues and EBITA by segmentQ1 2011 vs. Q1 2010
EUR m EUR m
29% France 1 408 23% 37 2 6%
Revenues EBITA2)
marginorganic1)
yoy growth
29% France 1,408 23% 37 2.6%
19% North America 921 17% 34 3.7%
8% UK & Ireland 411 3% 8 1.8%
7% Japan 352 1% 19 5.5%
7% Germany & Austria 356 38% 29 8 1%
Revenues in percent
7% Germany & Austria 356 38% 29 8.1%
5% Benelux 230 17% 11 4.7%
5% Italy 237 38% 13 5.3%
4% Nordics 200 23% 3 1.2%
4% Iberia 181 11% 5 2.8%8 52% Australia & New Zealand 120 15% 3 2.7%
2% Switzerland 104 26% 9 9.0%
7% Emerging Markets 338 19% 9 2.7%
1% LHH 57 -23% 11 19.8%
Corporate (19)
Adecco Group 4,915 18% 172 3.5%
1) O i th i US GAAP d l d th i t f d i iti
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1) Organic growth is a non US GAAP measure and excludes the impact of currency and acquisitions.2) EBITA is a non US GAAP measure and refers to operating income before amortisation of intangible assets.
Revenue development by business linesQ1 2011 vs. Q1 2010
Revenues1) Revenue growthEUR m in %, organically
Offi 1 302 Office 1,302 Industrial 2,467 General Staffing 3,769
1127
21
Information Technology 536 Engineering & Technical 252 Finance & Legal 187 Medical & Science 96
50%17%
9%914
514
Professional Staffing 1,071
Solutions 75
24%10
-14
Adecco Group 4,915
1) Breakdown of staffing revenues into Office, Industrial, Information Technology, Engineering & Technical, Finance & Legal and Medical & Science is based on dedicated
18
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branches. Solutions include revenues from Human Capital Solutions, Managed Service Programmes (MSP), Recruitment Process Outsourcing (RPO) and Vendor Management Systems (VMS). The 2010 information has been restated to conform to the current year presentation.
FY 2010 results summary
Reported Variance (10 vs. 09) in percent0 EUR m % of rev.
0Revenues 18 65626
0.0 20.0 40.0 60.0 80.0Reported Adjusted1) organic2)
17.8%
0
0
Revenues
Gross profit
18,656
3,3290.0%26
11
12
6
2,607 14.0%
EBITA
0
0.0% 722
0.0%SG&A
0 3.9%
11
142
0
34
Net income attributable toAdecco shareholders
667Operating income 0 0.0%
423 2.3%0.0%
3.6%
1) Adjusted is a non US GAAP measure excluding in FY 2009 , for better comparison, the French business tax of EUR 60 million in costs of services and EUR 4 million in SG&A as those business tax components are shown as income tax as of 2010. It also excludes in FY 2009 the positive impact on gross profit of EUR 25 million due to favorable developments in France resulting in the reassessment of existing accruals and the negative impact of EUR 7 million on gross profit due to a sales tax accrual in the UK related to prior years, as well as the negative impact on SG&A of EUR 121 million associated with restructuring costs.
2) O i th i US GAAP d l d th i t f i iti d di t
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2) Organic growth is a non US GAAP measure and excludes the impact of currency, acquisitions and divestures.3) EBITA is a non US GAAP measure and refers to operating income before amortisation and impairment of goodwill and intangible assets.
Our future perspective
May 2011Corporate Presentation
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Our future perspectiveGlobal trends
Governments
1. Regulation2. Flexibility imperative3. Job creation
Adecco Group 1. Productivity and flexibility2 Talent shortage
1. Demographics 2. Skills mismatch
CompaniesPeople
2. Talent shortage3. Changing labour force3. Lifestyle changes
Technology
1. Job search engines2. e-intermediaries3. eLearning
gy
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Thank you
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