Half Year Report 2012

Adecco Group –
Operating and financial review and prospects
in millions, except share and per share information

3. Cash flow, net debt and Days Sales Outstanding (“DSO”)

Cash flows from operating activities amounted to EUR 81 in the first six months of 2012, compared to cash used in operating activities of EUR 30 in the same period of 2011. Cash used in investing activities amounted to EUR 174 in the first six months of 2012 and included EUR 87 net cash paid for VSN Inc and EUR 48 capital expenditures. This compared to cash used in investing activities of EUR 97 in the first six months of 2011 which included EUR 50 capital expenditures. Cash used in financing activities totalled EUR 11 in the first six months of 2012 and included payment of dividends of EUR 256, as well as net inflows of EUR 260 related to the net increase in short- and long-term debt. In the first six months of 2011, cash used in financing activities amounted to EUR 21 and included payment of dividends of EUR 149 and purchase of treasury shares of EUR 134, mostly offset by net inflows of EUR 259 related to the net increase of short- and long-term debt.

Net debt increased by EUR 352 to EUR 1,244 at the end of June 2012 compared to December 2011, mainly due to the payment of dividends (EUR 256), the acquisition of VSN (EUR 87), capital expenditures (EUR 48), partly offset by EUR 81 cash flows from operating activities.

DSO was 54 days in the first six months of 2012 compared to 55 days in the first six months of 2011.