Adecco Group AG

Investor Presentation • Jul 23, 2003

Adecco SA Second Quarter 2003 Results

July 23, 2003

Disclaimer

We are going to discuss certain subjects that may contain forward-looking statements relating to such matters as anticipated financial performance, business prospects, new products, development activities and similar matters. We caution you that actual results could differ materially from those that will be projected in our discussions. Additional detailed information concerning a number of factors that could cause actual results to differ materially from the information that we will be giving you is readily available in our most recent report on Form 20-F and in our Form F-4 registration statement filed with the United States Securities & Exchange Commission.

Jérôme Caille

Chief Executive Officer

The Quarter: NIBA +35%

Q2 2003 vs Q2 2002, constant currency

Year to Date: NIBA +21%

1H 2003 vs 1H 2002, constant currency

Continued Improvement in NIBA Growth

G A d e c c o r o p u E U R i l l i m o n		2 0 0 3 A t l c a s u	2 0 0 2 A t l c a s u	% V a A t l c a s u	i t i r a o n C t t o n s a n C u r r e n c y
M h Q T D a r c	S l a e s	3 8 3 2 ,	4 0 6 1 ,	6 % -	2 %
	G M i r o s s a r g n	6 7 9	7 5 9	1 1 % -	2 % -
	O i E t p e r a n g x p e n s e s	( 5 6 6 )	( 6 3 3 )	1 0 % -	2 % -
	O i I t p e r a n g n c o m e	1 1 3	1 2 6	1 1 % -	0 %
	N I B A	6 5	6 8	4 % -	7 %
J Q T D u n e	S l a e s	4 0 3 4 ,	4 3 7 5 ,	8 % -	0 %
	G M i r o s s a r g n	6 9 2	8 0 7	1 1 % -	3 % -
	O i E t p e r a n g x p e n s e s	( ) 5 5 7	( 6 3 ) 5	1 % 5 -	6 % -
	O i I t p e r a n g n c o m e	1 3 5	1 2 7	7 %	1 6 %
	N I B A	8 7	6 9	2 6 %	3 % 5
J Y T D n e u	S l a e s	7 8 6 6 ,	8 4 3 6 ,	% 7 -	% 1
	G M i r o s s a r g n	1 3 7 1 ,	1 5 3 9 ,	% 1 1 -	% 2 -
	O t i E p e r a n g p e n s e s x	( ) 1 1 2 3 ,	( ) 1 2 8 6 ,	% 1 3 -	% 4 -
	O t i I p e r a n g n c o m e	2 4 8	2 5 3	% 2 -	% 8
	N I B A	1 5 2	1 3 7	1 1 %	% 2 1

Adecco SA, Second Quarter 2003 Results, July 23rd, 2003

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Further Improved Operating Gearing

Q1 2003 vs Q1 2002 and Q2 2003 vs Q2 2002 in constant currency

Performance of Key Business Units

Q2 2003 vs Q2 2002 in local currency

Growing Sales Faster than the Market

6 Quarters above Market Growth

France Temporary Staffing

Maintained Underlying Gross Margin Gross Margin in % of Sales, Q4 2002, Q1 and Q2 2003

Adecco SA, Second Quarter 2003 Results, July 23rd, 2003 10

Reduced YoY Gross Margin Decline

Adecco Group Gross Margin in % of Sales

USA-Adecco: Narrowing the Gross Margin Gap

% Temp Gross Margin on Sales

	Q 1 t t s a r e r u	Q 2 d t n a r e r u	f H l Y a e a r
P i Y r e o s e a r v u	1 4 6 7	1 4 8 1	1 4 9 7
U l t I n e m p o y m e n n s u r a n c e	0 3 1 -	0 2 3 -	0 2 7 -
W k i t o r e r s c o m p e n s a o n	1 3 1 -	0 9 2 -	1 1 0 -
M i C h a n g e x	0 3 0 -	0 3 0 -	0 3 0 -
U d l i i d t i n e r y n g m a r g n r e u c o	0 4 5 n -	0 2 7 -	0 3 8 -
C t r r e n e a r u y	1 2 3 9	1 3 0 9	1 2 7 5

USA - Adecco: Gross Margin Impact of Mix Change Share of Gross Margin by type of business, %

• Impact of business mix on gross margin: 120 bps

But…

• Strong focus on retail business enabled improvement of gross margin on new accounts from 18.5 % in January to over 20%

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Further Reduction of Operating Costs

Reported Adecco Group operating costs

Improved Operating Cost Ratio

Operating costs in % of Sales

Improved Productivity

Change of staff, Nr. of branches and productivity, Jan 2002 = 100

Productivity= Hours Sold per Employee

Improved Operating Income Margin

Operating Income as a % Sales

Felix Weber Chief Financial Officer

The NIBA Components

EUR millions

Strong Generation of Cash-Flow from Operations

Adecco SA, Second Quarter 2003 Results, July 23rd, 2003 20

Improved Cash Flow

Condensed Cash Flow Statement

		S i t h d d x m o n s e n e
	E U R M I L L I O N S	J 2 9 u n e , 2 0 0 3	J 3 0 u n e , 2 0 0 2
C A S H F O W S L	N I t e n c o m e -	1 0 5	1 3 6
F R O M O P E R A T I N G	D i i d A i i t t t e p r e c a o n a n m o r a o n z -	6 8	7 2
C S A T I V I T I E	O t h h l t i l i d t t i t e r c a r g e s e s s u z e r e s r u c u r n g r e s e r v e n e - ,	1 7	2 6
	C h f d i b l d b l t t t a n g e o r a e a c c o n s r e c e a e a n p a a e n e u v y - ,	( 9 5 )	( 1 1 8 )
	O t h t t e r c u r r e n a s s e s -	4 7	( ) 4 0
	N d l i b i l i i t t t o n- c r r e n a s s e s a n a e s u -	( 2 )	( 1 0 )
	C h f l f t i t i i t i a s o s r o m o p e r a n g a c e s w v	1 8 5	6 6
C A S H F L O W S	C i l d i t t a p a e p e n r e s x u -	( 3 1 )	( 5 1 )
O S G F R M I N V E T I N	f A i i t i t h i d c q u s o n s, n e o c a s a c q u r e -	-	( ) 5 8
A C T I V I T I E S	O h i i i i i t t t t e r n e s n g a c e s v v -	3	( 2 3 )
	C h f l d i i t i t i i t i a s o w s u s e n n v e s n g a c v e s	( 2 8 )	( 1 3 2 )
C A S H F O W S L	C h S h d L T d b t t t a n g e s o o r a n o n g e r m e -	( ) 5 7	2 3
O C G F R M F I N A N I N	D i i d d i d t h h l d v e n s p a o s a r e o e r s -	( 7 5 )	( 1 2 9 )
A C T I V I T I E S	C k i i d t t o m m o n s o c o p o n s e e r c s e x -	-	1 3
	O t h f i i t i i t i e r n a n c n g a c v e s -	1 0 9	4
	C f f h l d i i i t i i t i a s o w s u s e n n a n c n g a c v e s	( ) 2 3	( ) 8 9
C G E X H A N E R A T E	f f f E t h t h h e c o e x c a n g e r a e c a n g e s o n c a s	( 2 3 )	( 2 8 )
E F F E C T	N i / ( d ) i h d h i l t t e n c r e a s e e c r e a s e n c a s a n c a s e q u v a e n s	1 1 1	( ) 1 8 3

Adecco SA, Second Quarter 2003 Results, July 23rd, 2003 21

Reduced Net Debt* Net Debt, including off balance sheet

* Including off-balance sheet items of EUR 52 million in Q2 02, EUR 59 million in Q4 02 , and EUR 36 million in Q2 03.

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Strong Balance Sheet

O S E U R M I L L I N	J 2 9 u n e , 2 0 0 3	D b 3 0 e c e m e r , 2 0 0 2
S S S A E T
C h d h i l t a s a n c a s e q a e n s u v	3 2 3	2 1 2
T d i b l t t r a e a c c o n s r e c e a e n e u v ,	3 0 2 3 ,	2 9 0 6 ,
P t i & l h l d i t r o p e r y e q u p e a s e o m p r o v n e , .,	3 8 1	4 3 5
O t h t e r a s s e s	7 4 3	7 9 0
G d i l l d i t i b l t o o w a n n a n g e s, n e	1, 3 7 2	1, 4 7 7
T l t t o a a s s e s	8 4 2 5 ,	8 2 0 5 ,
I A B I I T I E S L L
S h d b t- t t o r e r m e	1 7 7	2 2 8
A b l d d t c c o n s p a a e a n a c c r e e p e n s e s u y u x	2 9 0 7 ,	2 8 1 5 ,
L d b t t o n g e r m e -	1, 2 9 4	1, 3 3 5
O t h l i b i l i t i e r a e s	9 2	1 0 3
T t l l i b i l i t i o a a e s	4 4 7 0 ,	4 4 8 1 ,
M i i I t t t n o r y n e r e s s	-	-
S h h l d ' i t a r e o e r s e q u y	1, 3 7 2	1, 3 3 9
T t l l i b & h h l d ' i t o a a s a r e o e r s e q u y	5 8 4 2 ,	5 8 2 0 ,
N t d b t i l f f b l h t d b t e e n c o a a n c e s e e e	1, 1 8 4	1, 4 1 0

Adecco SA, Second Quarter 2003 Results, July 23rd, 2003 23

Jérôme Caille

Chief Executive Officer

Growth Strategy

Continue to grow our business organically and through acquisitions for a 20% market share in the business segments we are in through

Capturing new, exciting opportunities through deregulation

• Use technology to sustain our competitive advantage and transform our branch model
• Attract, develop and retain the most talented people to create a culture of innovation

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New Opportunities in Germany

The Candidate

• Better salaries

• • Salary increases over 4 years
• • Salary bonuses for experience
• • Less barriers for immigrants

The Client

• • More flexible solutions
• • Less legal and financial risks than with outsourcing solutions

• • Temps cost less or the same as internal headcount

• • New flexible solutions now clearly defined by law and wage agreements

• • Limited bench risk through flexible working hours

• • Renewal of contract 3 times

• X Understanding of the new legislation

• X Appropriate IT systems
• X Training capabilities
• X Sales & Marketing strategy

Italy: major new opportunities for Adecco

XExclusivity clause eliminated: agencies can operate in perm, staff leasing, outplacement, recruiting, training

X More job categories open for temp staffing

X Limit to the ratio of temps to total workforce abolished

X 1997 legislation replaced

• X Largest network in Italy (500 branches)
• X First job portal
• X The best IT systems
• X The largest client base
• X Largest market share and brand awareness

IT Strategic Direction … as defined 3 years ago

• – A unique web-based database fully integrated with the branch database with a set of matching functionalities.
• – All the business transactions are executed by the branches: internet will be another enabling channel, but better and faster.

Current capabilities, future potential

Available Today Under Development Local Tools

Transforming the Branch Model

• of the total candidates placed had been exchanged across branches (23,000)
• 20% of the total new candidates in the database were sourced from the Internet (40,000)
• 100 mio of sales were achieved with candidates exchanged across branches plus internet candidates + internet clients

of Ajilon associates recruited by Adecco

Standard Platform …

Economies of Scale

project costs

• • Italy (2000-2001)
  • – Project costs 7,000 k€
  • – Hosting Costs/Year 3,000 k€

• •UK (2003-2004)

• – Project costs 1,300 k€

• – Hosting Costs/Year 800 k€
• • Czech Republic (2003)
  • – Project costs 50 k€
  • – Hosting Costs/Year 30 k€

Managing Innovation

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Managing Innovation: Adecco UK

Richard MacMillan

Adecco UK Sales Y-o-Y Progression in 2003

• • Adecco position: number 1 with 10% market share
• • Project leader for branch network expansion at low cost
• • Achievements: Opened to date 85 new branches for the cost of 40, which led to market share gains, gross margin increase and outstanding profit growth.

Managing Innovation: Adecco Spain

Enrique Sanchez

• • Adecco position: number 1 with 30% market share
• • Project leader for pricing program
• • Achievements: negotiation of preferential large contract terms, producing 100 bps increase in gross margin and remarkable profit growth.

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Outlook: Entering a Challenging H2

• • Markets remain very tough
• • We are making the best out of it: growing market share
• • We continue working on gross margin improvement: pricing, new products, Ajilon and LHH contributions
• • Our costs are under control and supporting our results without damaging our opportunities of growth

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In summary

• 1. Operational gearing extended at Group level: flat Sales converted into + 16% EBIT growth
• 1. We have the right cost base ( -110 BP SG&A vs last year ) without putting in danger potential growth
• 1. Despite economic environment, Return on Sales = 3.4% ( + 50 bps vs last year ). Cash Flow x 3 at 180 M. Euros
• 1. France, despite tough market conditions, makes 7% Profit growth
• 1. At Adecco Staffing US, +6% Sales, far above market, Return on Sales of 1.3% including workers compensation impact
• 1. Ajilon tripled profits, thanks to productivity improvement and brought Division Return on Sales to 4.1% ( vs Adecco 3.6% )

Thank You! To participate in the Q&A session, please dial:

Europe: +44 (0) 207 984 7582 USA: +1 719 457 2698

In summary

• 1. Operational gearing extended at Group level: flat Sales converted into + 16% EBIT growth
• 1. We have the right cost base ( -110 BP SG&A vs last year ) without putting in danger potential growth
• 1. Despite economic environment, Return on Sales = 3.4% ( + 50 bps vs last year ). Cash Flow x 3 at 180 M. Euros
• 1. France, despite tough market conditions, makes 7% Profit growth
• 1. At Adecco Staffing US, +6% Sales, far above market, Return on Sales of 1.3% including workers compensation impact
• 1. Ajilon tripled profits, thanks to productivity improvement and brought Division Return on Sales to 4.1% ( vs Adecco 3.6% )

Appendices

Appendix 1: Adecco Staffing – Growing Revenues

A d e c c o	S f f i t a n g	2 0 0 3 A l t c a s u	2 0 0 2 A l t c a s u	% V a A l t c a s u	i t i r a o n C t t o n s a n C u r r e n c y
M h Q T D a r c	S l a e s C t i b t i o n r u o n	3 3 4 9 , 1 0 0	3 4 3 7 , 9 9	4 % - % 2	3 % % 8
J Q T D n e u	S l a e s C t i b t i o n r u o n	3 9 5 7 , 1 2 9	3 8 2 1 , 1 2 3	6 % - % 3	1 % % 9
J Y T D u n e	S l a e s C t i b t i o n r u o n	6 9 2 8 , 2 2 9	2 9 4 7 , 2 2 2	% 5 - 3 %	2 % 9 %

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Appendix 2: Ajilon - Nearly Closed Sales Gap

A j i l o n		2 0 0 3	2 0 0 2	% V i t i a r a o n
		A t l c u a s	A t l c u a s	A t l c u a s	C t t o n s a n C r r e n c u y
M h Q T D a r c	S l a e s C t i b t i o n r u o n	1 3 4 1 3	0 6 5 1 6	1 8 % - 2 1 % -	8 % - 6 % -
Q J T D u n e	S l a e s C i b i t t o n r o n u	3 9 3 1 6	4 7 9 6	% 1 8 - 2 3 4 %	% 6 - 3 0 3 %
J Y T D u n e	S l a e s C t i b t i o n r u o n	8 0 6 2 9	9 8 5 2 2	% 1 8 - 3 6 %	% 7 - 6 3 %

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Appendix 3: LHH Career Services – Growth in Europe

L H H		2 0 0 3	2 0 0 2	% V i t i a r a o n
		A l t c a s u	A l t c a s u	A l t c a s u	C t t o n s a n C u r r e n c y
Q M h T D a r c	S l a e s C t i b t i o n r u o n	6 4 2 0	8 2 2 9	% 2 3 - 3 0 % -	% 8 - 1 6 % -
J Q T D n e u	S l a e s C t i b t i o n r u o n	5 5 1 7	1 7 2 2	2 1 % - % 2 4 -	% 5 - % 7 -
J Y T D u n e	S l a e s C i b i t t o n r u o n	1 1 9 3 7	1 5 3 5 1	% 2 2 - 2 8 % -	% 6 - 1 2 % -

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