Q4 & FY21 Results

Revenue momentum accelerates, margins strong

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

News provided by

The Adecco Group

Feb 24, 2022, 00:47 ET

ZURICH, Feb. 24, 2022 /PRNewswire/ --

Q4 HIGHLIGHTS

Revenues +3% sequentially, +1% yoy organic TDA¹, led by Modis +14%
Gross profit +7% organic yoy; led by Adecco +7% and LHH's Recruitment Solutions +c.35%
20.7% gross profit margin driven by portfolio, favourable mix and pricing
EBITA excluding one-offs² €259 million; 4.7% margin, reflecting cost discipline while investing in growth
Operating income €191 million; Net Income €184 million; Basic EPS €1.11, up 21% yoy

FULL YEAR HIGHLIGHTS

Revenues +9% yoy organic TDA¹; Gross profit +15% organic yoy
Leading gross profit margin of 20.4%, driven by portfolio, favourable mix and pricing
EBITA excluding one-offs² €953 million; 4.6% margin sector-leading
Operating income €780 million; Net Income €586 million; Basic EPS €3.62
Cash flow from operating activities €722 million; cash conversion 83%
Good strategic delivery: GBU organisation put in place; AKKA acquisition announced; LHH re-brand underway
Acquisition of majority stake in AKKA completed; good line of sight on €15 million 2022 EBITA synergies
Proposed dividend per share CHF 2.50, composed of CHF 1.25 gross plus CHF 1.25 from reserves not subject to withholding tax

Alain Dehaze, Adecco Group CEO, commented: "Good progress has been made in the first year of implementation of our Future@Work strategy. We have established all three GBUs as Global Leaders, and accelerated our pivot to higher value services, as evidenced by this year's record gross margin level. At the GBU level, Modis delivered outstanding performance in 2021, with strong top line growth and margin uplift, providing a strong foundation for the upcoming integration of AKKA. In LHH, Recruitment Solutions excelled, taking market share in permanent recruitment, while Career Transition navigated lower demand for their services. Adecco delivered sector-leading profitability through 2021, while continued investment supported improved sequential revenue momentum in the last quarter. Looking ahead, while recognising ongoing pandemic related challenges, we expect healthy demand for the Group's services in 2022, and are investing to accelerate sustainable, profitable growth."

FULL PRESS RELEASE

The Adecco Group, Investor Relations, +41 (0)44 878 88 88

Unless otherwise noted, all growth rates in this release refer to same period in prior year.
[1] On an organic and trading days adjusted basis.
[2] For further details on the use of non-GAAP measures in this release, refer to the Financial Information section and the Additional Information Section of the 2020 Annual Report.

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SOURCE The Adecco Group