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 | 2 |
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 | 3 |
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 | 4 |
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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Disclaimer
Adecco Group AG published this content on 03 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2023 06:31:32 UTC.