Corporate presentation

Corporate presentation
Adecco Group
November
5, 2009
August
2010
Content
•
Our vision
•
Our global reach
•
Our strategy
•
Our business
•
Our corporate social responsibility
•
Our results
•
Our future perspective
Corporate Presentation
August 2010
Slide 2
Our vision
Corporate Presentation
August 2010
Slide 3
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 – a
business that has a positive impact on millions of people
every day – we are conscious of our global role.
For more information:
www.adecco.com/AboutAdecco
Corporate Presentation
August 2010
Slide 4
Our global reach
Corporate Presentation
August 2010
Slide 5
Our global reach
Adecco Group operates
in over 60 countries
and territories worldwide
We help over 700,000 people find work
every day through our network
of more than 31,000 full-time employees
and over 5,500 offices in
more than 60 countries and territories.
The Adecco Group is the world’s leading
provider of HR solutions. The services
offered fall into the broad categories of
temporary staffing, permanent placement,
outsourcing, consulting and outplacement.
Corporate Presentation
August 2010
Slide 6
Our strategy
Corporate Presentation
August 2010
Slide 7
Adecco Group strategy
Overview of staffing and other HR-related services market
For more information:
www.adecco.com/AboutAdecco
Corporate Presentation
August 2010
Slide 8
Adecco Group strategy
Our twofold approach to the market
Corporate Presentation
August 2010
Slide 9
Our business
Corporate Presentation
August 2010
Slide 10
Our business
General staffing: global reach
• Industrial and office focus
• Flexible staffing solutions
• Serve large global clients and midsized enterprises
• Temporary and permanent
placement
• Assessment, training and integrated
human resources solutions
Geographical split of general staffing*
FY 2009, 80% of total group revenues
36%
11%
5%
7%
9%
5%
5%
4%
6%
3%
1%
8%
FRANCE
NORTH AMERICA
UK & IRELAND
GERMANY & AUSTRIA
JAPAN
ITALY
IBERIA
NORDICS
BENELUX
SWITZERLAND
AUSTRALIA & NEW ZEALAND
EMERGING MARKETS
* Based on dedicated branches
Corporate Presentation
August 2010
Slide 11
Our business
General staffing – office: our activities
Office
• Administrative / clerical
• Assistance
• Customer service
• Human resources
• Import/export
• Project management
• Purchasing
• Secretarial / PA
etc.
Adecco Office provides external colleagues
with serial assignments, ensuring continuity
in the relationship.
Skills are enhanced through continuous
learning in challenging projects.
Corporate Presentation
August 2010
Slide 12
Our business
General staffing – industrial: our activities
Industrial
•
•
•
•
•
•
•
•
•
•
•
•
Assembly
Production
Machine operation
Mechanical trades
Warehousing
Packaging
Shipping and receiving
Bindery and fulfilment
etc.
Specialized solutions have been
developed for:
Aerospace
Automotive
Construction
Transport and logistics
etc.
Corporate Presentation
August 2010
Slide 13
Our business
Professional business: global reach
• Professional business lines
• High level specialist points of
contact
• Longer-lasting assignments
• Quality placements and services
• Short to long-term projects
• Secondment, permanent
placements, temporary recruitment
solutions, outplacement, consulting
and managed solutions
Geographical split of professional business*
FY 2009, 20% of total group revenues
17%
33%
FRANCE
NORTH AMERICA
12%
UK & IRELAND
7%
GERMANY & AUSTRIA
8%
JAPAN
3%
ITALY
4%
IBERIA
6%
NORDICS
4%
BENELUX
2%
SWITZERLAND
4%
AUSTRALIA & NEW ZEALAND
< 0.5%
EMERGING MARKETS
* Based on dedicated branches
Corporate Presentation
August 2010
Slide 14
Our business
Professional business lines – our activities
Information Technology
• Sourcing and deploying highly skilled IT specialists
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 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.
Corporate Presentation
August 2010
Slide 15
Our business
Professional business lines – our activities
Finance & Legal
• Serving our clients across commerce and industry,
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 AG
Finance and Jonathan Wren
Medical & Science
• Global outsourcing (nursing homes in Norway,
occupational medicine in Spain)
• Quality management (quality controllers in Hospitals
for Italy and France)
• International Mobility (doctors and nurses coming from
South America to Spain)
Corporate Presentation
August 2010
Slide 16
Our business
Professional business lines – our activities
Sales, Marketing & Events
• Serving our clients with temporary assignments,
recruitment and selection of professionals to fully
managed teams
• Specialized in all your B-to-B and B-to-C touch points,
from call center solutions, promotions, merchandising,
sales to events
Human Capital Solutions
• Restructuring and talent management solutions for
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
Corporate Presentation
August 2010
Slide 17
Our corporate social responsibility
Corporate Presentation
August 2010
Slide 18
Adecco corporate social responsibility
Prioritising activities
Stakeholders
Society
Clients & shareholders
Employees
Global Programmes
Excellence
Excellence Awards
Skills
Win4Youth
Integration
IOC/IPC Athlete Career Programme
For more information:
www.adecco.com/Corporate social responsibility
Corporate Presentation
August 2010
Slide 19
Our results
Corporate Presentation
August 2010
Slide 20
Q2 2010 results summary
Reported
Variance (10 vs. 09) in percent
0
EUR m
Revenues
0
4,646
Gross profit
0
0.0%
825
17.8%
SG&A
0
0.0%
657
14.1%
175
3.8%
3)
EBITA before integration costs
3)
% of rev.
20.0
Reported
13
EBITA
0
0.0%
168
3.6%
Operating income/(loss)
0
0.0%
154
3.3%
0.0%
97
2.1%
Net income/(loss) attributable
to Adecco shareholders
0.0
6
0
40.0
60.0
Adjusted1) organic2)
80.0
29
29
8
46
39
453
430
1) Adjusted is a non US GAAP measure excluding in Q2 2009 the negative impact on SG&A of EUR 54 million related to restructuring costs and, for better comparison,
excluding in Q2 2009 the French business tax of EUR 15 million in costs of services and EUR 1 million in SG&A as those business tax components are shown as
income tax as of 2010. Based on the new French business tax law, which is effective since January 1, 2010, a part of the business tax is computed based on added
value and therefore under US GAAP classified as income tax.
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/(loss) before amortisation and impairment of goodwill and intangible assets.
Corporate Presentation
August 2010
Slide 21
Revenues and EBITA by geography
Q2 2010 vs. Q2 2009
EBITA2)
Revenues
Revenues in percent
EUR m
organic 1)
yoy growth
1,412
EUR m
margin
20%
53
3.8%
30%
France
20%
North America
925
15%
45
4.9%
9%
UK & Ireland
411
-3%
5
1.3%
7%
Japan
314
-14%
16
5.2%
6%
Germany & Austria
290
20%
14
4.6%
5%
Benelux
215
8%
4
1.9%
4%
Italy
210
25%
11
5.4%
4%
Iberia
177
11%
6
3.6%
4%
Nordics
181
14%
10
5.5%
2%
Australia & New Zealand
105
13%
2
2.3%
2%
Switzerland
93
4%
9
9.0%
7%
Emerging Markets
313
27%
9
2.6%
Corporate
Adecco Group
-16
4,646
13%
168
3.6%
1) Organic growth is a non US GAAP measure and excludes the impact of currency, acquisitions and divestures.
2) EBITA is a non US GAAP measure and refers to operating income/(loss) before amortisation and impairment of goodwill and intangible assets.
Corporate Presentation
August 2010
Slide 22
FY 2009 results summary
1)
Reported
Revenues
Variance (09 vs. 08) in percent
Adjusted
EUR m % of rev.
EUR m % of rev.
14,797
14,797
-26
-27
Gross profit
2,649 17.9%
2,631 17.8%
SG&A
2,350 15.9%
2,229 15.1%
3)
EBITA
299
2.0%
Operating income
65
0.4%
8
0.1%
Net income attributable to
Adecco shareholders
402
1) organic2) organically2)
Reported Adjusted
Adjusted1)
•Reported
-28
-29
-15
-19
-67
2.7%
-57
-91
-98
1) Adjusted is a non US GAAP measure excluding in 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. It also excludes in 2008 the impact of French social charges, the provision for
the antitrust procedure in France, and the impact of restructuring costs.
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.
Corporate Presentation
August 2010
Slide 23
Revenue development by business lines
FY 2009 vs. FY 2008 in constant currency
Revenues1) 2)
Revenue growth
EUR m
in %, in constant currency
Office
Industrial
3,465
7,389
Information Technology
Engineering & Technical
Finance & Legal
Medical & Science
Sales, Marketing & Events
Human Capital Solutions
1,100
615
336
245
355
341
Emerging Markets3)
Adecco Group
-25
-34
-5
-24
-29
-10
-12
26
951
14,797
2
-26
1) Breakdown of revenues is based on dedicated branches. The 2009 information includes certain changes in the allocation of branches to business lines, most notably
from Sales, Marketing & Events to Office and Emerging Markets to Office and Industrial. In addition since Q4 2009, Mexico previously reported together with Emerging
Markets is now reported within Office & Industrial. The 2008 information has been restated to conform to the current year presentation.
2) In 2009 revenues changed organically in Information Technology by -18%, Engineering & Technical by -24%, Finance & Legal by -33%, Medical & Science by -11%
and Adecco Group by -27%.
3) Emerging Markets excluding professional business lines.
Corporate Presentation
August 2010
Slide 24
Our future perspective
Corporate Presentation
August 2010
Slide 25
Our future perspective
Global trends
Governments
1. Regulation
2. Flexibility imperative
3. Job creation
People
1. Demographics
2. Skills mismatch
3. Lifestyle changes
Companies
Adecco Group
1. Productivity and flexibility
2. Talent shortage
3. Changing labour force
Technology
1. Job search engines
2. e-intermediaries
3. eLearning
Corporate Presentation
August 2010
Slide 26
Thank you
Corporate Presentation
August 2010
Slide 27