The Adecco Group: Q2 2023 Results

AD HOC ANNOUNCEMENTpursuant to Art. 53 Listing Rules of SIX Swiss Exchange

ZURICH,Aug. 3,2023 -- Q2 2023 Results

Strong revenue growth,further market share gain,good cost management

Revenues +4%yoy organic TDA; excellent performance in Adecco,+5%,with growth across all regions,in Akkodis consulting,+12%,and in LHH Career Transition,+101%

Further market share gain;Adecco's relative revenue growth +800 bps in Q223

Healthy 20.7% gross margin,50bps lower organically,mainly reflecting current business mix

SG&A excl. one-offs lower,at 17.7% of revenues,from 17.9% in Q2 22 and 18.4% in Q1 23,supported by a reduction in G&A costs and productivity improvement

Group productivity +3%yoy; Adecco productivity +3% qoq with FTEs -2% qoq

Robust 3.1%EBITA margin excl. one-offs; underlying sequential improvement of 30 basis points when excluding the timing impact of FESCO JV income

On track to deliver G&A savings; year-end expected run-rate €60 million

Operating income €117 million,flat year-on-year

Basic EPS €0.37; Adjusted EPS €0.67

Denis Machuel,Adecco Group CEO,commented:

"The Group delivered another quarter of revenue acceleration and market share gain. The Adecco business achieved growth across all regions at a level that continued to outpace its competitors,and with underlying margin improvement. Adecco US saw sequential improvement and further signs of turnaround progression. In LHH,both the Career Transition and Ezra businesses delivered record quarters and profitability strengthened for the GBU overall. Akkodis delivered strong growth in consulting with excellent progress in the US; while the staffing side of the business was hindered by hiring contraction in the tech sector. Integration work and synergy capture is advancing smoothly. Across the Group we continue to drive productivity and cost discipline,with G&A down in the quarter and delivery against the committed savings plan firmly on track. Looking ahead,whilst recognising a challenging macro-economic environment,we see positive momentum,driven by the strength of our unique portfolio and our relentless focus on performance."

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