Making people successful in a changing world - Annual Report 2012

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Adecco at a GlanceShare Price Performance• CHF 27.2 billion net service revenues• CHF 702 million income beforeamortisation of goodwill, restructuringcosts and one-time items• Over 30,000 Colleagues• Nearly 700,000 Associates placed onassignment each day• Over 250,000 Clients worldwideShare Price (CHF)• Nearly 6,000 offices in 58 countriesSince its creation in 1996, Adecco hasconsistently outperformed the SMI, thebenchmark for companies trading in theSwiss market.01.01.1996 01.01.1997 01.01.1998 01.01.1999 01.01.2000 01.01.2001 01.01.2002AdeccoSMI (re-based)Outstanding results in a challenging marketAdecco Group revenues increased by 2% toCHF 27.2 billion, while operating incomedropped 5% to CHF 1.2 billion. In localcurrency, revenues grew 5% and operatingincome fell 2%, indicating a 3% negativecurrency impact on Adecco’s consolidatedresults. The company reported incomebefore amortisation of goodwill,restructuring costs and one-time items, ofCHF 702 million, down 6% on 2000 figures,a 2% decline in local currency.In 2001 the Group generated substantialcash flows from operating activities in theamount of CHF 1.4 billion, which was to agreat extent used to repay debt and toinvest in infrastructure. A Eurobond issuein March 2001 further enhanced theGroup’s debt structure. Net debt (includingoff-balance sheet financing) decreased byCHF 739 million.The balance sheet evolved in line with ourbusiness growth. Days sales outstandingremained at last year’s level, as a result ofour strong focus on working capitalmanagement. Goodwill was furtheramortised to CHF 2.3 billion. In June 2001,the Financial Accounting Standards Boardissued statements SFAS No. 141 and SFASNo. 142 regarding “Business Combinations”and “Goodwill and Other Intangible Assets”.Starting 2002, goodwill and other intangibleassets with infinite lives that satisfy animpairment test, will no longer be amortised.This change will have a significant impactin Adecco’s accounts, with the eliminationof substantial goodwill amortisationcharges, which were estimated at CHF 850million (before tax effect) for 2002.Selected Financial HighlightsStatement of Operations Data:Year EndedDecember 30, 2001 December 31, 2000Net service revenues 27,247 26,628Operating income 1,179 1,237Income before amortisation of goodwill,restructuring costs and one-time items 702 746Per Share Data:Income per share before amortisation of goodwill,restructuring costs and one-time itemsBasic 3.77 4.06Fully diluted 3.68 3.92Basic and diluted net loss per share (2.30) (2.33)Basic and diluted weighted average shares 185,880,663 183,735,340Fully diluted shares 192,832,231 192,269,392Cash Flow Data:Cash flow from operating activities 1,390 23Cash flow from investing activities (528) (1,306)Cash flow from financing activities (780) 261Balance Sheet Data:Trade accounts receivables, net 4,636 5,297Goodwill, net 2,292 3,091Accounts payable and accrued expenses 4,309 4,353Net debt (including off-balance sheet financing) 2,600 3,339Shareholders’ equity 1,787 2,390Income before amortisation of goodwill, restructuring costs and one-time items is not meant toportray net income or cash flow in accordance with US generally-accepted accounting principles.Goodwill amortisation is a non-cash charge to operating income; however, income beforeamortisation of goodwill, restructuring costs and one-time items does not represent cash availableto shareholders. This may not be comparable to similarly entitled items reported by other companies.Adecco amortises its goodwill over five years. The information contained in this report may includeforward-looking statements regarding future events or future financial performance of Adecco.Such statements are subject to risks and uncertainties and actual events or performance may varymaterially from anticipated results. We refer you to documents Adecco files from time to time with theZurich Stock Exchange, US Securities and Exchange Commission and the New York Stock Exchangefor more information.4
RevenuesProfitsGeographical DistributionCHF billion30,00025,00020,00015,00010,0005,00027,24726,62818,47115,30811,4328,524AdeccoOlstenCareer StaffDelphiTADAdiaEcco7,609800700600500400300200100702746528403CHF million30720228%3%9%60%EuropeNorth AmericaAsia PacificRest of World2001 2000 1999 1998 1997 1996 199502001 2000 1999 1998 1997 1996Income before amortisation of goodwill , restructuring costs and one-time itemsSince its inception, Adecco has delivered animpressive track record of revenue growthabove market through a combination oforganic development and acquisitions. Itsgeographic and divisional coverage hasenabled this to be sustained even in acontracting global economy, as in 2001.Since its creation in 1996, sustainedprofitable growth has vindicated Adecco’smanagement decisions and the corporatestrategy. Through its ability to manage costsand widespread use of technology, Adeccohas built a cost-efficient organization withenhanced earnings capacity, which ensuresmaximum profit conversion.Adecco continues to reinforce its presencein traditional markets and to pioneer theconcept of Staffing and Human Resourcesservices in emerging markets. The Groupoperates in 58 countries and furtherexpansion is underway.Segment PerformanceActivity DistributionProfit ConversionRevenues (CHF million)28,00043827,00026,0003,27125,00024,00023,0002893,571Adecco StaffingAjilon Staffing &Managed ServicesCareer Services &e-Business12%2%Adecco StaffingAjilon Staffing &Managed ServicesCareer Services &e-BusinessRevenues2%12%86%Profits*11%15%74%Adecco StaffingAjilon Staffing &Managed ServicesCareer Services &e-Business22,00021,00023,53822,76886%0Dec. 30, 2001 Dec. 31, 2000*ContributionIn October 2001, Adecco announced itsredefined organizational structure to fosterfurther expansion into human resourcesand business services. Adecco divisionswere formed to build capabilities inmainstream staffing, professional staffingand managed services, career services,e-recruiting and other human resourcesservices.The Group’s business portfolio spansgeneralist, professional/specialist industrysector and career services activities.Adecco’s redefined division-based structurewill facilitate the company’s penetrationand development into high growth, highprofit areas of business.Adecco strives to enhance its businessportfolio to achieve an optimum balanceamongst its divisions, creating a businessmix that maximizes profitability and securesstrong volumes, while reducing businessvolatility.Office NetworkOffices7,0006,0005,0004,0003,0002,0001,00005,9785,365Europe3,5172001 2000 1999North AmericaAsia PacificRest of WorldIn 2001, Adecco continued to expandbranch capacity in growing markets.Adecco’s unmatched office network remainsone of the pillars of the Group’s growthstrategy, ensuring widespread marketcoverage and cost-effective serviceprovision.Market Share35% 34%32%23% 22%17% 15%10%9%8% 7% 7% 5%Italy 1France 1Spain 1Switzerland 1Scandinavia 2Australia 1Belgium 2UK 2Canada 1Japan 1USA 1Netherlands 5Germany 2UK & USA figures have been restated according to REC’s and ASA’s surveysEach year, Adecco strengthens its leadershippositions in the main market places aroundthe globe, improving market share andrankings. The Group nowadays ranksnumber 1 or number 2 in 12 of the 13largest markets in the world and has anestimated 12% global market share.Market Size250200150100500CHF billion2001 2000 1999 1998UK & USA figures have been restated according to REC’s and ASA’s surveysDespite the market contraction experiencedduring the 2001 economic recession, marketgrowth is expected to resume fueled bythe economic recovery, changes in labourlegislation and market deregulation, thusincreasing the relevance of the staffingindustry in the global economy.5
Page 1 and 2: ANNUAL REPORT 2001Operational Revie
Page 3: Table of ContentsAdecco at a Glance
Page 7 and 8: Klaus J. JacobsChairmanPhilippe For
Page 9: For all those people seeking to fin
Page 12 and 13: Strong management delivers resultsR
Page 15 and 16: Adecco: 30,000 entrepreneursseizing
Page 17 and 18: Patrick DeMaeseneire, AjilonStaffin
Page 19 and 20: Social change and the fitness of th
Page 21 and 22: The Agenda for ChangeLength of Assi
Page 23 and 24: Drivers inTechnologyPeople, Bricks
Page 25 and 26: And to ensure that all Adecco and s
Page 27 and 28: Hewlett Packard in South Korea -Mob
Page 29 and 30: Adecco Learning CentresAdecco UK op
Page 31 and 32: Drivers inEmerging MarketsThe appet
Page 33 and 34: Ajilon Staffing &Adecco Staffing Di
Page 35 and 36: Directors, Management and AuditorsB
Page 37 and 38: ANNUAL REPORT 2001Financial ReviewM
Page 39 and 40: Table of ContentsFinancial Review 4
Page 41 and 42: Financial reviewIn millions, except
Page 43 and 44: Selected Financial Information - Un
Page 45 and 46: Consolidated Statements of Operatio
Page 47 and 48: Consolidated Statements of Changes
Page 49 and 50: Notes to Consolidated Financial Sta
Page 55 and 56:
Notes to Consolidated Financial Sta
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Page 61 and 62:
Report of the Group Auditors to the
Page 63 and 64:
Statements of Operations (Holding C
Page 65 and 66:
Notes to Financial Statements (Hold
Page 67 and 68:
Major Consolidated SubsidiariesGrou
Page 69 and 70:
Investor InformationStock Price Per
Page 71 and 72:
Directors, Management and AuditorsB
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