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Adecco Group AG Investor Presentation 2003

May 23, 2003

806_ip_2003-05-23_b5718f7d-4d3d-4e16-bb8f-0491cb352737.pdf

Investor Presentation

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Adecco SA First Quarter 2003 Results

April 15, 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

New Results Format

  • • Consolidated results: all in Euro going forward
  • • Segment reporting: corporate costs reported as a separate line (previously allocated to divisions)
  • • Half-year and FY results: presentation in London
  • • Throughout operating income refers to operating income before amortisation

Key Financials Q1 2003 vs Q1 2002

Favorable Sequential Revenue Evolution

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6

Steady sales recovery in Adecco and Ajilon

Adecco SA, First Quarter 2003 Results, April 15th, 2003

Adecco Staffing: Growing Revenues

Gearing Restored in Adecco Staffing Q1 2003 vs Q1 2002

* Operating income at the Adecco Group level

Adecco Staffing Ranking

Q1 2003 vs Q1 2002 in local currency

10

Ajilon Professional: Recovering momentum

Quarterly revenues Y-o-Y change

Ajilon Staffing: Runner-up

  • • Nr 3 in the Professional Staffing market, close to Nr. 2 and Nr. 1
  • • Sales: EUR 413 million
  • • EUR 13 million contribution (3.2% contribution margin)
  • • Potential for continued increase in profitability:
    • – Massive cost reduction (10% reduction division costs)
    • – Focus on gross margin increase

LHH Career Services: 1st Runner-up

  • • Nr 2 in the outplacement market
  • • Anti-cyclical nature: sales down 8% in local currency, as employment market accelerates
  • • 3% cost reduction achieved in the quarter
  • • Profits down 16%, but still contributes with 15% of Group profits

LHH/Career Services: anti-cyclicality

14

Sequential Gross Margin Restoration

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15

Gross Margin Drivers

Adecco SA, First Quarter 2003 Results, April 15th, 2003

Substantial Reduction of Operating Costs

Euro millions

633

* Excluding jobpilot costs. Jobpilot started to be consolidated in May 2002.

Improved Branch and Staff Productivity

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18

Improved Operating Costs % Sales

Operating Costs % Sales

Q1 2002 Q1 2003

19

Felix Weber

Chief Financial Officer

Q1 03 Results in Detail

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* Net income before amortisation

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Sequential Reduction of Operating Costs

Q4 2002

Q1 2003

* All translated at March 2003 exchange rates

22

Improved Net Income Before Amortization, excluding forex impact

Continuing Cash Generation

Condensed Statement of Cash Flows

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Reduced Net Debt*, Cash Flow Generation

* Including off-balance sheet items of EURO 59 million in Q1 02 and Q4 02, and EURO 37 million in Q1 03.

25

New Syndicated Loan Facility Successfully Launched

  • • Facility increased from EUR 400 million to EUR 580 million
  • • Terms & conditions:
    • – Multi-currency revolving credit
    • – Maturity: five years
    • – Oversubscribed, favorable conditions
    • – Mandated lead arrangers:
      • • Banc of America Securities
      • • SG Investment Banking
      • • The Royal Bank of Scotland

Strong Balance Sheet

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Jérôme Caille

Chief Executive Officer

Adecco SA, First Quarter 2003 Results, April 15th, 2003

Consistent Strategy

The Employer of Choice The Supplier of Choice

Growth beyond market

Market leadership

Optimized business mix

  • •Organic growth 50% above market
  • •Acquisitions and organic growth
  • • No 1 or No 2 in all major markets with 20% + market share
  • • Quality/Cost enhancement through Technology
  • • Specialty business focus
  • • Evolution from staffing to HR services

Technology Update

  • • Rollout of web-based technology completed in France and UK in Q1.
  • • Deployment will continue in other European countries in 2003
  • •4.5 million candidates presently managed in shared databases
  • •System pioneered in Italy where 14,000 candidates were shared among over 500 branches in Q1.
  • •All accomplished with 43% less CAPEX than in 2002

Conclusion and Outlook

Adecco SA, First Quarter 2003 Results, April 15th, 2003

Thank You!

To participate in the Q&A session, please dial: Europe: +44 (0) 208 400 6314 USA: +1 416 640 4127

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