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The issuer is solely responsible for the content of this announcement. =--------------------------------------------------------------------- =------------- Profitability significantly increased compared to the second quarter Q3 HIGHLIGHTS (Q3 2009 versus Q3 2008) * Revenues of EUR 3.7 billion, down 27% (-28% in constant currency) * Gross margin of 17.4% on an adjusted[1] basis, down 60 bps * Strong SG&A reduction of 22% adjusted[1] and in constant currency * Adjusted EBITA[2] margin at 3.4% * DSO improved by 6 days to 53 days in Q3 2009 Key figures +-------------------------------------------------------------------+ | | Q3 2009 | Q3 2009 | Q3 2009 | Q3 2009 | | | reported | reported | | adjusted[1] | | | | growth | adjusted[1] | in | | in EUR | | | | constant | | millions | | | | currency | |---------------+-----------+-----------+-------------+-------------| | Revenues | 3,718 | -27% | 3,718 | -28% | |---------------+-----------+-----------+-------------+-------------| | Gross profit | 658 | -28% | 647 | -31% | |---------------+-----------+-----------+-------------+-------------| | EBITA | 135 | -47% | 125 | -52% | |---------------+-----------+-----------+-------------+-------------| | Operating | 127 | -48% | | | | income | | | | | |---------------+-----------+-----------+-------------+-------------| | Net income | | | | | | attributable | 90 | -46% | | | | to Adecco | | | | | | shareholders | | | | | +-------------------------------------------------------------------+ Zurich, Switzerland, November 5, 2009: Adecco Group, the worldwide leader in Human Resource services, today announced results for Q3 2009. Revenues declined by 28% in constant currency to EUR 3.7 billion. The gross margin declined by 60 bps to 17.4% on an adjusted basis. SG&A was reduced by 22% adjusted and in constant currency, resulting in an adjusted EBITA margin of 3.4%, up 100 bps sequentially. DSO improved by 6 days to 53 days in the third quarter. Patrick De Maeseneire, Chief Executive Officer of the Adecco Group, said: "Market conditions have improved during the third quarter, especially in general staffing, and we have seen a gradual improvement of the revenue trend for the Adecco Group. Our efforts to structurally optimise our operations have led to a clearly lower SG&A base. The positive revenue trend and the reduction in costs have resulted in an adjusted EBITA margin of 3.4%, a material sequential increase of 100 basis points. As in the past, we will act in a highly disciplined way with regards to pricing and further optimise our underlying cost base". Q3 2009 FINANCIAL PERFORMANCE Revenues Group revenues in Q3 2009 were down 27% to EUR 3.7 billion compared to Q3 2008, or by 28% on a constant currency basis and organically[3]. Permanent placement revenues amounted to EUR 40 million in Q3 2009, a decline of 54% and outplacement revenues totalled EUR 65 million, an increase of 31%, both in constant currency. Gross Profit The gross margin in Q3 2009 was at 17.7%, a decline of 30 bps compared to the prior year. On an adjusted basis, the gross margin amounted to 17.4%, a decline of 60 bps versus Q3 2008. The negative impact on gross margin from the temporary staffing business and the weak permanent placement business was partially compensated by the positive contribution of the outplacement business. As expected in this phase of the economic cycle, the pricing environment in the temporary staffing business became more challenging during the quarter under review. Adecco could limit the decrease in the temporary staffing gross margin in Q3 2009 to 90 bps compared to the prior year. Selling, General and Administrative Expenses (SG&A) In Q3 2009, SG&A was reduced by 21% compared to Q3 2008. On an adjusted basis and in constant currency, SG&A declined by 22% compared to the prior year's period. Sequentially, SG&A declined by 6% adjusted and in constant currency. Restructuring costs amounted to EUR 1 million in Q3 2009 (EUR 4 million for various countries, partly offset by EUR 3 million reversal of restructuring costs in France). FTE employees were reduced by 21% (-7,600) compared to Q3 2008, while the branch network was reduced by 15% (-1,000 branches). At the end of the third quarter of 2009, the Adecco Group operated a network of more than 5,700 offices and had over 28,000 FTE employees. FTE employees at the end of Q3 2009 declined by 4% compared to the end of the second quarter of 2009. EBITA In the period under review, EBITA declined by 47% to EUR 135 million, resulting in an EBITA margin of 3.6%, compared to 5.0% in the prior year. The adjusted EBITA was EUR 125 million in the quarter under review, a decline of 52% in constant currency. The adjusted EBITA margin was 3.4% in Q3 2009, up 100 bps sequentially. The contribution of the counter-cyclical US Human Capital Solutions business to Adecco Group's adjusted EBITA amounted to 12% in the third quarter, compared to 27% in Q2 2009. Amortisation of Intangible Assets Amortisation of intangible assets amounted to EUR 8 million in the third quarter of 2009 compared to EUR 10 million in Q3 2008. Operating Income In Q3 2009, the Adecco Group reported operating income of EUR 127 million, which compares to EUR 244 million in Q3 2008. Interest Expense and Other Income / (Expenses), net The interest expense in the period under review amounted to EUR 17 million, EUR 2 million higher than in Q3 2008. Other income / (expenses), net was an expense of EUR 1 million in Q3 2009 compared to income of EUR 2 million in the third quarter of 2008. Interest expense is expected to be slightly below EUR 60 million for the full year 2009. Provision for Income Taxes The effective tax rate in Q3 2009 was 18% compared to 27% in Q3 2008. The effective tax rate in Q3 2009 was positively impacted by a change in the mix of earnings. Net Income attributable to Adecco shareholders and EPS Net income attributable to Adecco shareholders in Q3 2009 was down 46% to EUR 90 million compared to EUR 168 million in Q3 2008. Basic EPS was EUR 0.52 (EUR 0.96 for Q3 2008). Cash flow, Net Debt[4] and DSO The operating cash flow generated in the first nine months of 2009 amounted to EUR 349 million compared to EUR 669 million in the same period last year. The Company paid dividends of EUR 173 million, invested EUR 64 million in capital expenditure and deposited cash of EUR 128 million for the Spring Group acquisition in an escrow account. Net debt at the end of September 2009 was EUR 702 million compared to EUR 617 million at year end 2008. DSO improved by 6 days to 53 days in the third quarter of 2009. Currency Impact In Q3 2009, currency fluctuations had a positive impact of approximately 1% on revenues and EBITA. GEOGRAPHICAL PERFORMANCE (The pie charts are visible in the PDF version of the report) In France, revenues declined by 27% to EUR 1.3 billion in Q3 2009, following a decline of 34% in Q2 2009. Throughout the quarter, the Company experienced an increase in demand in the automotive, chemical and transport sectors. EBITA declined by 33% to EUR 47 million and was positively impacted by EUR 14 million, primarily due to a reassessment of existing accruals and a reversal of restructuring costs. Adjusted EBITA declined by 53% to EUR 33 million in Q3 2009. The adjusted EBITA margin was 2.5% in Q3 2009, up 90 bps sequentially. In the USA & Canada, revenues and EBITA declined by 25% in constant currency, resulting in an EBITA margin of 4.4% despite the slowing growth rates encountered in the Human Capital Solutions business. The Human Capital Solutions business contributed 67% to EBITA in USA & Canada in Q3 2009, compared to 80% in Q2 2009. In Germany, Q3 2009 revenues decreased by 39% to EUR 247 million. On a sequential basis, the German business significantly improved profitability with an EBITA of EUR 20 million, corresponding to an EBITA margin of 8.1%. Better bench management and cost cutting measures positively contributed to this quarter's result. In Q3 2009, revenues in Japan amounted to EUR 298 million, a decline of 28% in constant currency. EBITA declined by 36% in constant currency and the EBITA margin was 6.7%, down 80 bps compared to Q3 2008. Japan was the only region besides the Emerging Markets to experience a worsening in the revenue decline rate in the third quarter compared to the second quarter of this year, mainly due to our late cyclical clerical business. The efficient delivery model, strict cost management and price discipline again contributed to an excellent EBITA margin. In the UK & Ireland, revenues in Q3 2009 were down 28% in constant currency. In terms of EBITA, the region was at break-even. In Italy, revenues declined by 43% in the third quarter of 2009. Italy reported an EBITA of EUR 5 million, corresponding to an EBITA margin of 3.4%. Cost cutting measures initiated in previous quarters positively contributed to this result. Revenues in the Benelux declined by 18% or 24% organically, while in the Nordics, revenues declined by 35% in constant currency and in Iberia by 33%.

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