THE ADECCO GROUP PRESENTS FUTURE@WORK - ITS PLAN FOR NEXT STRATEGY CYCLE AND NEW FINANCIAL GOALS
Zurich, Switzerland, 1 December 2020: The Adecco Group, the world's leading human capital solutions provider, is today holding a virtual Capital Markets Day. Management will elaborate on key achievements under the 'Perform, Transform and Innovate' cycle (2017-2020), present the Group's upcoming 'Future@Work' strategy cycle, and outline new financial goals.
Future@Work will build on the achievements of the previous cycle, focusing the Group around three distinct business units: Adecco, Talent Solutions and Modis. This brand-driven organisation structure, which completes a process begun in 2017, will further improve focus, reduce complexity and enhance resource allocation, while accelerating the digitalisation of the Group and allowing client and candidate strategy to account for differences in end-markets.
- For the Adecco brand, focus will be on growing market share and margins through accelerating digitisation and diversifying its services portfolio.
- Talent Solutions, brings together the Group's professional recruitment, career transition, and up- and reskilling capabilities, allowing for an integrated offering to support the skills and transformation needs of clients.
- In Modis, the Group is building a market leader in technology consulting, focused on the attractive 'smart industry' segments.
The distinct business unit strategies are underpinned by three Group-wide transformation enablers: Customer Experience, Differentiation and Digital.
Alain Dehaze, Chief Executive Officer, said: "As a leader in the industry, we see tremendous opportunities as we build on the achievements from the last strategy cycle to accelerate and scale the Group's transformation to a fully customer driven and digital organisation. Through Future@Work, we will positively impact the work lives of even more individuals and continue to play an important role in supporting the growth of our clients and the wider economies in which we operate. Our updated strategy will allow us to accelerate growth, enhance our margin and deliver increased total shareholder returns going forward."
New financial goals will be presented, underpinning the Adecco Group's commitment to deliver leading total shareholder returns. These commitments are:
(1) A dual revenue growth strategy: gaining market share in Adecco, and investing in the faster growth segments of Talent Solutions and Modis.
(2) A higher EBITA margin corridor of 3.0-6.0%, through the cycle (compared to 2.5-5.0% in the previous economic cycle), driven by further productivity gains and mix shift towards higher margin segments.
(3) Strong cash flow: delivering cash conversion of greater than 90% on average through the cycle, supporting investments and a progressive dividend.
The Adecco Group has a clear opportunity to strengthen its competitive advantage and drive economies of scale and scope through its digital investments. To support this ongoing transformation and build on progress to-date, investments in Future@Work will be maintained at around the level of current strategic investments.
Coram Williams, Chief Financial Officer, commented: "We have a strong and resilient business model, which has been demonstrated during the current Covid-19 crisis. Our ambitious financial goals, aligned with our new strategy, are a natural evolution to the progress made in the last strategy cycle. We are confident in our ability to accelerate profitable growth, while continuing to generate strong cash flow and returns to shareholders."
Trading update
Trading in the period since the Q3 2020 results announcement on 3 November has been modestly ahead of management's expectations. The impact of recent lockdown measures in most European countries has had a lesser-than-expected impact on demand for the Group's services, with the rate of revenue decline in October and November showing a continued trend of gradual improvement.
Reporting structure changes
To align with Adecco Group's updated organisational structure, from 1 January 2021, the Group's primary and secondary segment reporting structure will change.
Primary segments will be defined by Business Unit, with the Adecco Business Unit further split by geography. The new primary segments will consist of: Adecco (comprising sub-segments: France; Northern Europe; DACH; Southern Europe and EEMENA; Americas; and APAC); Talent Solutions; and Modis.
Secondary segments will be defined by Service Line, consisting of: Flexible Placement; Permanent Placement; Career Transition; Outsourcing, Consulting and Other services; Training, Upskilling and Reskilling.
For further information please contact:
The Adecco Group Investor Relations
investor.relations@adeccogroup.com or +41 (0) 44 878 88 88
The Adecco Group Press Office
media@adeccogroup.com or +41 (0) 44 878 87 87
adeccogroup.com
Facebook: facebook.com/theadeccogroup
Twitter: @AdeccoGroup
Financial Agenda
Q4 2020 results 25 February 2021
Q1 2021 results 4 May 2021
Q2 2021 results 5 August 2021
Q3 2021 results 2 November 2021
About the Adecco Group
The Adecco Group is the world's leading human capital solutions company. We believe in making the future work for everyone, and every day enable more than 3.5 million careers. We skill, develop, and hire talent in 60 countries, enabling organisations to embrace the future of work. As a Fortune Global 500 company, we lead by example, creating shared value that fuels economies and builds better societies. Our culture of inclusivity, entrepreneurship and teamwork empowers our 35,000 employees. We are proud to have been consistently ranked one of the 'World's Best Workplaces' by Great Place to Work.
The Adecco Group AG is headquartered in Zurich, Switzerland (ISIN: CH0012138605) and listed on the SIX Swiss Exchange (ADEN) and powered by nine global brands: Adecco, Adia, Badenoch + Clark, General Assembly, Lee Hecht Harrison, Modis, Pontoon, Spring Professional and Vettery.
