Adecco : 2023 First Quarter results Presentation

Q1 2023 report

Denis Machuel, CEO & Coram Williams, CFO

4 May 2023

1

Disclaimer & note on terminology

Forward-looking statements

Information in this release may involve guidance, expectations, beliefs, plans, intentions or strategies regarding the future. These forward- looking statements involve risks and uncertainties. All forward-looking statements included in this release are based on information available to the Adecco Group AG as of the date of this release, and we assume no duty to update any such forward-looking statements. The forward- looking statements in this release are not guarantees of future performance and actual results could differ materially from our current expectations. Numerous factors could cause or contribute to such differences. Factors that could affect the Company's forward-looking statements include, among other things: global GDP trends and the demand for temporary work; the impact of the global outbreak of novel coronavirus disease (COVID); changes in regulation affecting temporary work; intense competition in the markets in which the Company operates; integration of acquired companies; changes in the Company's ability to attract and retain qualified internal and external personnel or clients; the potential impact of disruptions related to IT; any adverse developments in existing commercial relationships, disputes or legal and tax proceedings.

Non-US GAAP measures used

'Organic growth' excludes the impact of currency, acquisitions and divestitures. This presentation refers to revenue growth yoy on an organic, trading days adjusted basis, unless otherwise stated.

This presentation refers to gross margin development yoy on an organic basis, unless otherwise stated.

'EBITA' refers to operating income before amortisation and impairment of goodwill and intangible assets. This presentation refers to EBITA, EBITA margin and yoy margin development excluding one-offs, unless otherwise stated.

'Net debt' comprises short-term and long-term debt less cash and cash equivalents and short-term investments.

'Free cash flow' comprises cash flows from operating activities less capital expenditures.

'Cash conversion' is calculated as last 4 quarters of free cash flow before interest and tax paid (FCFBIT) divided by last 4 quarters of EBITA excluding one-offs.

'Conversion ratio' is calculated as EBITA excluding one-offs divided by gross profit.

'Net debt to EBITDA' is calculated as net debt at period end divided by last 4 quarters of EBITA excluding one-offs plus depreciation.

Q1 2023 results

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Q1 highlights

Effectively delivering Simplify-Execute-Grow plan

Strong market share gains, revenue growth and gross margin

Broad-based market

share gains

Relative revenue growth

+600 bps in Q1

Double-digit growth in APAC, Germany, LatAm,

EEMENA

Integration well

progressed

Strong momentum in

Consulting

Standout performance in

Career Transition

Headwinds in

Recruitment Solutions

Q1 2023 results

TCV = total contract value won, in revenue terms

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Q1 23 financial overview

Revenues

€5,892 mn	+3% yoy
	+8% reported

Adj. EPS

€0.72

(5)% yoy

Gross profit

€1,254 mn	+5% yoy
21.3% margin	+20 bps reported

Balance Sheet

Net debt / EBITDA

2.7x

EBITA excl. one-offs

€184 mn

3.1% margin

(30) bps yoy

Cash Flow

Cash conversion

47%

Q1 2023 results

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How we win in a dynamic talent market

Market opportunities remain

Flex resilient throughout Q1

Adecco GBU, flex & outplacement volumes, YTD1

Volumes		YoY trend	YTD avg.
	-2% yoy

Focused on driving growth, market share

EXAMPLES

Revenue growth % yoy, organic TDA basis

Adecco Group		Market

Logistics customer

Adecco share gain; only partner offering global capabilities

Divergent trends by region (and sector)

Adecco GBU, flex volumes by region, YTD1 (in bps)

			-2o bps
			yoy
EMEA	Americas	APAC	Total

Q1 22

Q2 22

Q3 22

Q4 22

Q1 23

A value-add ecosystem of talent services

Adecco Group gross profit breakdown, Q1 23

Flex

Perm

CT

Outsourcing, Consulting

Up- & Reskilling

Autos customer

Combined strength of Adecco and Akkodis international expertise

Tech sector

Multiple CT wins due to scale and best-in-market proposition

decrease

increase

0%

20%

40%

60%

80%

100%

Q1 2023 results

1 Source: Adecco GBU, from 1 Jan 2023 until 14 Apr 2023

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