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3rd Quarter Results 
strong performance in an uncertain environment 
Improving revenue trend and leading margin performance in Q3 2020 
Summary and highlights 
 · Revenues down 15% year-on-year organically1 and trading days adjusted (TDA), 
    and down 18% on a reported basis, with broad-based improvement as the 
    quarter progressed 
 · September revenues down 14% organically and TDA, and October volumes showed 
    further gradual improvement 
 · Gross margin up 20 bps yoy to 19.6% (up 40 bps organically), supported by 
    strong performance of LHH (career transition), pricing discipline and 
    reduced Covid-19 related impact 
 · Resilient EBITA2 margin excluding one-offs3 of 4.5%, with organic recovery 
    ratio at 64%, supported by strength and balance of portfolio, and agile cost 
 · Strong cash flow and balance sheet with cash conversion of 153% and net 
    debt/EBITDA excluding one-offs at 0.5x 
 · Restructuring charge of EUR 89 million in Q3 2020, primarily related to real 
    estate rationalisation and transformation of the Group's operations in 
 · Continued investment and progress in the Group's strategic priorities 
"While the market environment remained challenging in Q3, we saw a gradual 
recovery in business activity as lockdowns were eased. Against a backdrop of 
uncertainty, we continued to successfully navigate the crisis ??" putting the 
health and safety of our people first, delivering on the evolving needs of our 
clients, and supporting almost 150,000 associates back to work since the trough 
of the crisis. 
The scale and breadth of our business and proactive account management approach 
has positioned us well to benefit from the increased demand in sectors such as 
e-commerce and logistics. Despite lower revenues overall, profitability was 
strong as we maintained price discipline and demonstrated agile cost management. 
The balanced portfolio we have built continues to be a differentiator, with LHH 
delivering double-digit growth and our outsourcing, consulting and 
up/re-skilling businesses proving more resilient than traditional staffing and 
recruitment. Cash flow continues to be a focus and was strong again in the 
We have maintained focus on our strategy to Perform, Transform and Innovate. It 
is clear that recent investments in IT infrastructure and digital products have 
been enablers during this crisis and we continue to develop and roll out new 
technology and tools in line with our long-term transformation and product 
Looking ahead, we are prepared for the recovery to be bumpy given the rapidly 
evolving Covid-19 situation. While much uncertainty prevails, we are confident 
in our ability to steer through these turbulent times and are focused on 
emerging stronger from the crisis, by maintaining focus on our strategic 
priorities. As an essential service provider, the Adecco Group also has an 
important role to play in supporting economies and individuals to get back to 
I would like to thank our valued customers for placing their trust in us, and 
share my deep gratitude to our employees and associates for their continued hard 
work, endurance and tenacity." 
Alain Dehaze, Group Chief Executive Officer 
1Organic growth is a non-US GAAP measure and excludes the impact of currency, 
acquisitions and divestitures. 
2EBITA is a non-US GAAP measure and refers to operating income before 
amortisation and impairment of goodwill and intangible assets. 
3In Q3 2020, EBITA included one-offs of EUR 89 million; in Q3 2019, EBITA 
included one-offs of EUR 16 million. 
Note to Editors 
Additional information is provided under the following links: 
 · About the Adecco Group 
 · The Adecco Group brands 
Press Release 
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(END) Dow Jones Newswires

November 03, 2020 01:00 ET (06:00 GMT)