Half Year Report 2012

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

4. Outlook

In June, the Company’s revenues declined by 3% organically and adjusted for business days. While the revenue decline rate during Q2 2012 was relatively stable, the revenue development in July was slightly weaker, mainly driven by France and Japan. Geographically, developments continue to be diverse. Europe is weakening further. On the other hand, business in North America is accelerating, also driven by the IT Professional Staffing business. In the Emerging Markets, revenue growth continues to be healthy.

Given these diverging economic trends, price discipline and a proactive approach to cost management are key. The gross margin improvement in Q2 2012 reflects management’s focus on profitability and value creation. In Q3 2012, SG&A is expected to remain approximately in line with Q2 2012, on an organic basis and before restructuring costs. In the second half of 2012, the Company plans to invest approximately EUR 10 related to the full consolidation of several data centres in North and South America. The plans in France to merge the networks of Adecco and Adia under the single Adecco brand are fully on track. The Company is convinced that the total expected investments of EUR 45 in France will result in an even better offering for the Company’s customers and will ensure sustainable and leading profitability.

Building on its strategic priorities, the Company continues to focus its efforts on constantly improving its HR solutions, delivery models and the cost base, and the Company remains convinced that it will achieve an EBITA [1] margin of over 5.5% midterm.


[1]EBITA is a non-U.S. GAAP measure and refers to operating income before amortisation of intangible assets.