Adecco : 2023 Half Year results Presentation

Q2 2023 report

Denis Machuel, CEO & Coram Williams, CFO

3 August 2023

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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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Q2 highlights

		Strong revenue growth,
		further market share gain			Relative revenue growth		Consulting revenues		Stellar performance in
		Executing G&A savings			+800 bps in Q2			Career Transition
					+12%
		plan
				Revenues +5%, growth				Margin returned to
						Tech staffing challenged
		New CDIO appointed			across all regions			target corridor

Q2 2023 results

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Reinforcing leadership in a mixed market environment

Continued relative revenue growth outperformance

Adecco Group		Competitors

5%		6%	5%
4%			4%
		3%

+100 bps

qoq

Q1 22

Q2 22

Q3 22

Q4 22

Q1 23

Q2 23

Improved focus on customer activity

Adecco GBU, sales intensity

+15%

yoy

Q1 22

Q2 22

Q3 22

Q4 22

Q1 23

Q2 23

Improved productivity, more to come

Adecco Group, GP/FTE

Peak of Adecco

Investment

Plan

Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23

Q2 2023 results

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Q2 Client wins

Major 5 year North American consulting win, defence sector. Delivering project and software engineering expertise

European-wide EV battery tech up- and re-skilling programme, autos sector. Extending LHH/Adecco partnership, adding Akkodis expertise

Significant coaching win, Fortune 100 company. Delivering coaching and key skills training to ~3,000 leaders

Revenue synergy

Cross-sell win, aerospace sector. Delivering +100 engineering consulting experts with specific tech skills. Academy to train engineers pre/post deployment

added value for our clients

• Depth of consulting and software engineering expertise, incl. latest AI / machine-learning
• Skills complementary to JV partners

•	Ability to deliver multiple	•	Scalability of Ezra's coaching	•	Staffing plus consulting
	services with deep domain		service; 50 countries, 10	•	engineering expertise
•	know-how	•	languages	Subject Matter Experts (SME) in
First training centre in Europe	Goal-oriented approach with		Germany, India, US
	for battery-related professionals		measurable results

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