Half Year Report 2012

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

1.2 Segment performance

The segment breakdown of revenues and operating income for the six months ended June 30, 2012 and June 30, 2011 is presented in the following table:

Download xls sheet

 

 

 

Variance %

in EUR

2012

2011

EUR

Constant
currency

 

 

 

 

 

Revenues

 

 

 

 

France

2,646

3,004

(12)

(12)

North America [1]

1,876

1,728

9

1

UK & Ireland

929

817

14

8

Germany & Austria [2]

786

738

7

7

Japan [2]

810

682

19

7

Italy

477

520

(8)

(8)

Benelux

452

469

(4)

(4)

Nordics

408

400

2

0

Iberia

331

367

(10)

(10)

Australia & New Zealand

266

245

9

1

Switzerland

208

221

(6)

(11)

Emerging Markets [1]

884

781

13

14

LHH [2]

157

109

44

38

Adecco Group [2]

10,230

10,081

1

(1)

 

 

 

 

 

Operating income

 

 

 

Download xls sheet

France

68

94

(28)

(28)

North America [1]

83

66

25

16

UK & Ireland

14

15

(1)

(7)

Germany & Austria

43

48

(10)

(10)

Japan

48

40

19

7

Italy

26

34

(23)

(23)

Benelux

15

20

(27)

(27)

Nordics

13

6

111

113

Iberia

10

11

(5)

(5)

Australia & New Zealand

10

7

42

31

Switzerland

16

20

(22)

(26)

Emerging Markets [1]

28

28

3

4

LHH

42

21

98

89

Corporate expenses

(49)

(39)

 

 

Operating income before amortisation of intangible assets

367

371

(1)

(4)

 

 

 

 

 

Amortisation of intangible assets

(27)

(27)

 

 

 

 

 

 

 

Adecco Group

340

344

(1)

(4)

[1]In 2012, Mexico, previously included in North America, is reported under Emerging Markets. The 2011 information has been restated to conform to the current year presentation.

[2]In the first six months of 2012, revenues changed organically in Germany & Austria by 4%; in Japan by –4%; in LHH by 1%; and in Adecco Group by –2%.


France

In the first six months of 2012, revenues in France decreased by 12% and operating income amounted to EUR 68 compared to EUR 94 in the first six months of 2011. Included in the first six months of 2012 were restructuring expenses of EUR 8. The operating income margin was 2.6% in the first six months of 2012.

North America

In North America, revenues increased by 9% or by 1% in constant currency, compared to the first six months of 2011. Operating income in the first six months of 2012 was EUR 83, an increase of 16% in constant currency. Furthermore, in the first six months of 2012, the operating income margin increased by 60 bps to 4.4%.

UK & Ireland

In the first six months of 2012, revenues in the UK & Ireland increased by 14% or by 8% in constant currency and operating income amounted to EUR 14 compared to EUR 15 in the first six months of 2011. The operating income margin was 1.5% in the first six months of 2012.

Germany & Austria

In Germany & Austria, revenues increased by 7% or by 4% organically compared to the first six months of 2011. Operating income amounted to EUR 43 compared to EUR 48 in the same period of 2011. The operating income margin was 5.5% in the first six months of 2012 compared to 6.5% in the first six months of 2011.

Japan

In Japan, revenues increased by 19% or decreased by 4% organically, compared to the first six months of 2011. Operating income was EUR 48 in the first six months of 2012 compared to EUR 40 in the first six months of 2011. The operating income margin for the first six months of 2012 was unchanged at 5.9% when compared to the first six months of 2011.

Italy

Revenues in Italy decreased by 8% compared to the first six months of 2011. The operating income margin was down 100 bps to 5.4% in the first six months of 2012 compared to the same period of 2011.

Benelux

In the first six months of 2012, revenues in Benelux decreased by 4%. The operating income margin decreased by 100 bps to 3.3% in the first six months of 2012 compared to the first six months of 2011.

Other

Revenues in the Nordics increased by 2% and were flat in constant currency. The operating income margin was 3.2% compared to 1.5% in the first six months of 2011.

In Iberia, revenues decreased by 10%, as economic conditions in the region remained challenging.

In the first six months of 2012, Australia & New Zealand’s revenues increased by 9% or by 1% in constant currency.

Switzerland’s revenues declined by 6% or by 11% in constant currency in the first six months of 2012 compared to the same period in 2011.

Emerging Markets continued to perform strongly in the first six months of 2012 with revenues up 14% in constant currency, mainly driven by Latin America and India.

In the first six months of 2012, revenues of Lee Hecht Harrison (“LHH”), Adecco’s career transition and talent development business, amounted to EUR 157, an increase of 44% or 1% organically. Operating income amounted to EUR 42 and the operating income margin was 26.9%.