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

4. Outlook

Revenue growth throughout the second quarter remained in double-digit territory, despite an increasingly more challenging base. In June, revenues were up 11% adjusted for trading days. July was a touch lower than June. In the current uncertain economic environment, the Company continues to see good demand from its clients, who value the flexibility the Company offers in terms of workforce solutions. Growth short-term will continue to be driven by the industrial staffing segment, and growth in the office business is expected to remain solid, while revenue growth in professional staffing is expected at levels similar to the second quarter.

On July 26, 2011, the Company announced the acquisition of Drake Beam Morin, Inc. (“DBM”). Combining Adecco’s Lee Hecht Harrison (“LHH”) business with DBM will create the world’s largest provider in the career transition and talent development services sector. The acquisition considerably expands the global footprint of LHH beyond its main markets, the USA and France, into new geographies, and enhances its scale in markets with an existing presence. The Company expects cost synergies of approximately EUR 10 and the transaction to be immediately EPS accretive in year one and EVA [1]-enhancing after one year. The transaction remains subject to customary closing conditions, including the receipt of certain regulatory approvals. It is expected to close in the third quarter of 2011.

Management remains confident that the current business environment will continue to offer attractive growth opportunities. Given the level of economic uncertainty which currently persists, a cost conscious approach to run the business remains key. The Company expects the cost base to remain stable sequentially at constant currency. With the growth and profitability levels achieved to date, the Company is well on track to reach the mid-term EBITA [2] margin target of over 5.5%.


[1]Economic Value Added (EVA) based on the Company’s internal hurdle rate of 10%.

[2]EBITA is a non-U.S. GAAP measure and refers to operating income before amortisation of intangible assets.