Share information

Adecco S.A. shares are registered in Switzerland (ISIN: CH0012138605) and listed on the SIX Swiss Exchange (ADEN). Adecco is a constituent of the Swiss Market Index (SMI), Switzerland’s most important stock market index, containing the 20 largest and most liquid Swiss stocks.

Investor relations

The Adecco investor relations team focuses on providing transparent and consistent information and interactive communication. We strive for an open dialogue with the financial community, the media and all key stakeholders, to enhance understanding of the business as well as to explain the implied risks and opportunities.

The Adecco Group is committed to providing regular updates on key value drivers, business strategy, threats and opportunities, as well as key ratios used by the Group to track its own performance.

The investor relations team is dedicated to providing true, fair and up-to-date information to every interested stakeholder, so that the share price reflects the inherent value of the Company.

In addition to the release of our comprehensive quarterly results – which management discusses with the financial community via a conference call and webcast – we also offer meetings with management and investor relations at roadshows, industry or market conferences, and at our Headquarters. In addition, we strive to ensure clear and transparent communication of other price-sensitive information through press releases and comprehensive content on our website. At the same time, we respect the legal obligations relating to confidentiality and disclosure, and make every effort to guarantee equal distribution of price-sensitive information.

In keeping with this strategy, we maintained an efficient and open dialogue with the market through our investor relations activities in 2010, devoting 53 days to market communication around the time of our quarterly results releases, compared with 49 days in 2009. We participated in 9 broker conferences and 35 roadshows in Europe and North America during 2010.

On September 23 and 24 2010, we hosted our biannual Investor Days in Miami with a total of 70 participants. The theme of the event was ‘best positioned for new highs’ with the aim to provide the financial community and the media with more detailed information on how Adecco intends to achieve its EBITA margin target of above 5.5% mid-term. Besides presentations from the CEO and CFO on the Group’s strategy and financials, the event also featured presentations on Adecco’s North American operations, the progress on the integration of the acquired MPS Group in North America, Adecco’s offering in Managed Services Programmes (MSP), Beeline (Vendor Management Software), India as an attractive growth market for Adecco and the impact of social media and web trends on our business.

In addition to the above, the Investor Relations section on the Adecco website, www.adecco.com/InvestorRelations, aims to provide the investment community with a broad source of up-to-date information at all times.

Coverage

Adecco’s share price development is closely monitored by the financial community. The majority of the financial analysts covering Adecco perceived the Company’s strategy, results and valuation as positive in the first half of 2010. Peak confidence was reached in June with 67% of analysts recommending to buy, 14% recommended to hold and 19% recommended to sell the shares. Fears over a renewed global recession led to downgrades of recommendations during the late summer months. At the end of September only 48% of analysts recommended to buy the stock, 24% recommended holding, while 28% of analysts recommended selling. Upbeat presentations at the Adecco Investor Days in Miami, evading fears over a double-dip, coupled with solid third-quarter results boosted confidence in the fourth quarter of 2010 which led to upgrades in earnings estimates and recommendations. The year 2010 ended with 54% of the analysts being positive, 25% being neutral and 21% being negative on Adecco shares.

Over 25 brokers are covering Adecco, maintaining regular contact with the IR department. They include: ABN Amro, Bank am Bellevue, Bank of America Merrill Lynch, Bank Vontobel, Berenberg, Cheuvreux, Citigroup, Credit Suisse, Deutsche Bank, Evolution Securities, Exane BNP Paribas, Goldman Sachs, Helvea, HSBC, ING, JP Morgan Cazenove, Kepler, MainFirst, Morgan Stanley, Natixis, Neue Zürcher Bank, Société Générale, Rabo Bank, RBS, UBS and Zürcher Kantonalbank.

Dividend history

From 2002 until 2007, the Company saw a steady increase in its dividend, from CHF 0.60 for 2002 to CHF 1.50 for 2007, a level it maintained in 2008. Thanks to the healthy financial position of the Company and despite difficult economic conditions, which led to a strong decline in revenues and earnings, Adecco paid a dividend of CHF 0.75 per share for 2009, in line with the historical payout ratio of 25% to 30% of adjusted net earnings. For 2010, the Board of Directors will propose a dividend of CHF 1.10 per share, equivalent to a 30% payout ratio on adjusted net earnings.

Performance report

After an outstanding share price performance of 59% in 2009, the Adecco share price started the year at CHF 57.05. Within the first week of January the shares continued to rise by more than 10% to CHF 63.10. During the rest of January and most of February uncertainty on the strength of the economic recovery weighed on equity markets and the Adecco share price declined to CHF 52.75 a few days ahead of the Company’s Q4 and FY 2009 results release. A solid fourth quarter/full year result and a new raised EBITA margin target of above 5.5% to be reached mid-term, strengthened investors’ confidence in the business recovery and the share price performed strongly until the end of April, when the all-year high of CHF 66.15 was reached.

The news in early May about Greece requiring financial support from the European Union and the moves of other countries to avoid becoming delinquent resulted in increasing fears of a potential economic double-dip and declining equity markets, which also negatively affected the Adecco share price. Neither the Company’s Q1 2010 results release in May, nor the Q2 2010 update in August, both showing a strong recovery in business conditions, could dampen worries over worsening economic conditions. The de-coupling of share price performance versus company results, as a consequence of expected grim economic conditions, had Adecco shares reach their lowest level in 2010 of CHF 46.22 at the end of August.

At the end of September, Adecco held its Investor Days in Miami, USA. The presentations held by the Group CEO and CFO as well as other senior management were well regarded and, with an overall improved mood towards equities and fading fears over a renewed global recession, the shares constantly gained in value. Further support for the share price was the announcement of Adecco’s Q3 2010 results in early November. From the low in August until the fourth quarter high in December at CHF 63.40, the Adecco shares posted a strong increase of 37%.

Over the year 2010, the Adecco shares rose 7%, reaching CHF 61.25 on December 31, 2010, compared with CHF 57.05 on December 31, 2009. Adecco shares outperformed the Swiss Market Index (SMI) by 9% (in CHF) and also outperformed a basket of key competitors in the staffing industry also by 9% (market-capitalisation weighted in EUR). Adecco’s market capitalisation was CHF 11.6 billion at the end of 2010, compared with CHF 10.8 billion a year earlier.

Shareholder base

Adecco has a broad investor base of over 18,000 shareholders. At the same time, the shareholder base is concentrated, with 64% of all issued shares held by institutional investors, 26% held by insiders and Adecco S.A., and only 4% held by retail investors. Some year-on-year changes were observed within the group of institutional shareholders. North American institutional shareholders increased their holdings in Adecco to 27% of issued shares at the end of 2010 compared with 23% at the end of 2009. The percentage held by European institutions declined by 2% to 35%, while the percentage of holdings by institutions from the rest of the world remained constant compared with 2009.

Investor structure

in % of shares issued

2010

2009

2008

 

 

 

 

Institutional:

 

 

 

• Europe

35%

37%

29%

• North America

27%

23%

21%

• Rest of world

2%

2%

2%

Retail

4%

4%

6%

Insider and treasury

26%

29%

31%

Unassigned

6%

5%

11%

Insider and treasury holdings

as of year-end 2010

in % of shares issued

 

 

 

Group represented by Jacobs Holding AG

 

18.4%

Treasury shares

 

7.7%

Management and Board

 

0.04%

Key data

 

2010

2009

 

 

 

Shares issued

189,263,506

   189,263,506

Treasury shares

14,561,480

15,184,075

Shares outstanding

174,702,026

174,079,431

Weighted-average shares [1]

192,113,079

177,606,816

Basic earnings per share in EUR

2.20

0.04

Diluted earnings per share in EUR

2.17

0.04

Dividend per share in CHF

1.10 [2]

0.75

Year-end share price in CHF

61.25

57.05

Highest share price in CHF

66.15

57.85

Lowest share price in CHF

46.22

31.50

Year-end market capitalisation [3] in CHF m

11,592

10,797

Price/earnings ratio [4]

22.3

n.m.

Enterprise value [5]/EBITA

13.9

24.8

[1]Includes weighted-average outstanding shares and shares deliverable under the prepaid forward
(for details refer to Note 15)

[2]Proposed by the Board of Directors

[3]Based on shares issued

[4]Based on basic earnings per share and share price at year-end CHF/EUR per year end 2010: 1.25

[5]Enterprise value equals market capitalisation plus net debt at year-end; CHF/EUR per year-end 2010: 1.25;
2009: 1.48