Adecco Group –
Operating and financial review and prospects
in millions, except share and per share information

3. Cash flow, net debt and Days Sales Outstanding (“DSO”)

Cash used in operating activities amounted to EUR 30 in the first six months of 2011, compared to cash flows from operating activities of EUR 30 in the same period of 2010. Cash used in investing activities amounted to EUR 97 in the first six months of 2011 and included EUR 50 for capital expenditures. This compared to cash used in investing activities of EUR 874 in the first six months of 2010 which included EUR 831 net cash paid for the acquisition of MPS in January 2010 and EUR 45 for capital expenditures. Cash used in financing activities totalled EUR 21 in the first six months of 2011 and included payment of dividends of EUR 149 and purchase of treasury shares of EUR 134 partly offset by net inflows of EUR 259 related to the net increase of short- and long-term debt. In the first six months of 2010, cash used in financing activities amounted to EUR 222 and mainly comprised repayment of long-term debt in the amount of EUR 139 and payment of dividends of EUR 91.

Net debt increased by EUR 434 to EUR 1,185 at the end of June 2011 compared to December 2010, largely due to the payment of dividends (EUR 149), purchase of treasury shares (EUR 134), and capital expenditures (EUR 50).

DSO was 54.6 days in the first six months of 2011 compared to 53.5 days in the first six months of 2010.