Slides
Page 1
Denis Machuel, CEO Valentina Ficaio, CFO Q2 2026 report 6 August 2026
Page 2
Disclaimer & note on terminology Forward-looking statements Information in this release may involve guidance, expectations, beliefs, plans, intentions or strategies regarding the future. These forward- looking statements involve risks and uncertainties. All forward-looking statements included in this release are based on information available to the Adecco Group AG as of the date of this release, and we assume no duty to update any such forward-looking statements. The forward- looking statements in this release are not guarantees of future performance and actual results could differ materially from our current expectations. Numerous factors could cause or contribute to such differences. Factors that could affect the Company’s forward-looking statements include, among other things: global GDP trends and the demand for temporary work; changes in regulation affecting temporary work; intense competition in the markets in which the Company operates; integration of acquired companies; changes in the Company’s ability to attract and retain qualified internal and external personnel or clients; the potential impact of disruptions related to IT; any adverse developments in existing commercial relationships, disputes or legal and tax proceedings. ‘Organic growth’ excludes the impact of currency, acquisitions, divestitures and reclassifications. This presentation refers to revenue growth yoy on an organic, trading days adjusted basis for the Adecco GBU, unless otherwise stated. This presentation refers to revenue growth yoy on an organic constant currency basis for Akkodis and LHH GBUs, unless otherwise stated. ‘EBITA’ refers to operating income before amortization and impairment of goodwill and intangible assets. This presentation refers to EBITA, EBITA margin and yoy margin development excluding one-offs, unless otherwise stated. ‘Net debt’ comprises short-term and long-term debt less cash and cash equivalents and short-term investments. ‘Free cash flow’ comprises cash flows from operating activities less capital expenditures. ‘Cash conversion’ is calculated as last 4 quarters of free cash flow before interest and tax paid (FCFBIT) divided by last 4 quarters of EBITA excluding one-offs. ‘Conversion ratio’ is calculated as EBITA excluding one-offs divided by gross profit. ‘Drop-down ratio’ is organic EBITA growth as a percentage of organic gross profit growth. Management believes the ratio provides important supplemental information as it reflects the efficiency with which gross profit growth is converted into EBITA growth. The company uses this metric to manage productivity and profitability. ‘Net debt to EBITDA’ is calculated as net debt at period end, excluding 50% of the hybrid bond, divided by the last four quarters of EBITDA excluding one-offs. Non-US GAAP measures used 2
Page 3
Q2 26 overview • Strong organic revenue growth of +5.6% TDA yoy. Akkodis returned to growth. • Gross margin 18.6%, with yoy comparison improving sequentially by 20 bps1 • EBITA €165 million excl. one-offs, +21% yoy1, consistent profitable growth • EBITA margin excl. one-offs 2.8%, +30 bps yoy, reflecting strong operating leverage. Organic drop-down ratio of 64% • Continued deleveraging momentum, with ND/EBITDA 0.5x lower yoy Revenues €6.0 bn +5.6% yoy org. TDA Gross Profit €1.1 bn 18.6% margin EBITA €165 mn 2.8% margin 5,775 5,776 5,958 5,658 5,997 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 1,090 1,107 1,141 1,063 1,113 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 141 195 225 148 165 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Basic EPS Adj. EPS < €23 mn -€14 mn Op CF FCF €0.28 €0.61 3 1 On an organic and constant currency basis 2 Cash conversion ratio < 83% -0.5x yoy LTM CCR2 ND/EBITDA 0% 3% 4% 5% 6% 18.9% 19.2% 19.1% 18.8% 18.6% 2.5% 3.4% 3.8% 2.6% 2.8%
Page 4
Signs of stabilization in permanent placementSustained market share gains Disciplined execution driving market share gains in an improving market 4 Relative revenue development (% yoy) FY 23 FY 24 FY 25 Q1 26 Q2 26 Adecco Group Key competitors +160 bps2+365 bps2 +890 bps +200 bps +245 bps +320 bps1 +335 bps1 Permanent placement, gross profit development by quarter (% yoy organic) Q2 23 Q2 24 Q2 25 Q2 26 Quarterly growth Last 4-quarter avg. 1 Last 4-quarter average 2 Quarterly figures
Page 5
Q2 26 client wins Phased AI reskilling for 1’000+ former employees, supporting career transition through technical AI expertise Telecommunication Strategic partner to cover systems IVVQ 1 , cloud infrastructure & security; replaced incumbent provider Defense 1 Integration, Verification, Validation, Qualification End-market penetration Growing onsite activity requiring workforce and operational optimization Automotive 5 Supporting scalable data center build-up through fast talent deployment and tech-enabled solution; primary supplier Data Centers
Page 6
Target increased from 50% to 70% of Adecco revenues enabled by agents by end of 2026 AI embedded into our core offering and processes 6 Responsible AI Leading the human side of AI transformation Responsible AI framework: - Human centric - Safe - Ethical - Lawful - Transparent Growth and efficiency fueled by agentic AI 2026 global expansion: + selected countries in APAC / LATAM, and >20 languages 2.2 million agent conversations to date Launched enabling agents (sales processes, cash collection) 50% of Adecco revenues already AI-enabled. New target: 70% by end-26 End-to-end recruiting agents live in 10 countries +10% in overall fill rate -40% time to submit +25-35% productivity (recruiter time saved) (achievements as of Q2)
Page 7
Higher volumes and productivity driving margin expansion • +60 bps market share gains • Flex +6%1, outsourcing +15%1, MSP +11%1, perm flat1. Flex continued to benefit from clients' demand for agility; perm improved sequentially • Growth was led by automotive, logistics, financial services, and ASD 2 • Gross profit improved, with solid margin reflecting current mix and firm pricing • EBITA +10%1; margin expansion driven by higher volumes and strong productivity, with DC/Selling FTE +10% 4,621 4,658 4,826 4,615 4,949 2% 4% 5% 7% 7% Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Revenues (EUR mn) % yoy, organic, TDA 146 182 191 141 161 3.2% 3.9% 4.0% 3.0% 3.3% Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 EBITA, excl. one-offs (EUR mn) EBITA margin, excl. one-offs Revenues €4.9 bn, +6.6% yoy EBITA €161 mn, 3.3% margin Share of Group 82% Share of Group 73% Americas, APAC, and EMEA excl. France strong MSP +11%1 France resilient Margin +10 bps yoy Higher volumes Strong productivity 7 1 On an organic, constant currency basis. 2 Aerospace & Defense
Page 8
Profitable growth in EMEA; resilient performance in France Revenues by country/region (% yoy org. TDA) Revenues Q2 26 Revenues Q1 26 EBITA excl. one-offs Q2 26 EUR mn % yoy org. TDA % yoy org. TDA EUR mn EBITA % Change bps yoy Adecco France 1,132 -1% +1% 35 3.0% (50) Adecco EMEA excl. France 2,364 +8% +7% 74 3.2% +20 GBU Revs 23% 13% 9% 8% 6% 4% 4% 3% France highlights • Resilient performance in a mixed market • Manufacturing and automotive strong; headwinds in logistics and healthcare • EBITA margin reflects lower volumes, actions taken to lower SG&A expenses • Focus on streamlining costs and performance improvement actions to support future profitable growth EMEA excl. France highlights • Strong broad-based growth resulting in market share gains • Iberia, EEMENA, Italy, UK&I, Nordics strong; DACH and Benelux resilient • Automotive, professional services and logistics strong • EBITA margin reflecting higher volumes and agile capacity management 8 -1 6 22 3 6 12 1 6 France Italy Iberia DACH UK & I EEMENA Benelux Nordics
Page 9
Americas & APAC: Strong growth and margin expansion • NAM: strong growth despite tougher comp, with SMEs +23%. Consumer goods, automotive and manufacturing strong • LatAm: broad-based growth, led by Brazil, Argentina and Colombia. Logistics, FMCG and retail very strong • EBITA margin expansion benefiting from strong volume growth and operating leverage • Strong broad-based growth, ahead of market • Sector growth led by consulting, aerospace & defense, manufacturing and professional services • EBITA margin reflects volume growth and disciplined cost management 9 18 9 11 13 9 NAM LatAm Japan Asia Aus. & NZ India GBU Revs 10% 7% 6% 4% 2% 1% Revenues Q2 26 Revenues Q1 26 EBITA excl. one-offs Q2 26 EUR mn % yoy org. TDA % yoy org. TDA EUR mn Margin % Change bps yoy Adecco Americas 789 +12% +15% 20 2.6% +90 Adecco APAC 664 +10% +8% 32 4.8% +20 Revenues by country/region (% yoy org. TDA) APAC highlightsAmericas highlights 9
Page 10
835 818 830 750 743 -6% -3% -1% -1% 1% -5% -1% 2% 0% 1% Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Revenues (EUR mn) % yoy, org CC C&S % yoy, org CC Return to growth, Germany stabilizing • Consulting & Solutions (C&S) +1%, Talent +1%; ASD strong, at +20% • France +4%, with ASD +15%. Spain & Italy +8%, strong automotive; UK +4% • Germany -3%, stabilizing (-5% in Q1). Strong ASD +9% and manufacturing +13%, partly offsetting automotive headwinds • NAM +4%, C&S +3%. Growth led by ASD, energy and automotive • APAC mixed: Japan +3%, manufacturing strong; Australia -13% in tough market • EBITA margin increase reflecting C&S growth, higher project margins, and cost mitigation in Germany. Utilization rate strong at 91% Revenues €743 mn, +1% yoy Share of Group 12% EMEA +4% yoy NAM +4% yoy APAC -5% yoy Margin +180 bps yoy Germany stabilizing 13 37 59 31 26 1.6% 4.5% 7.0% 4.2% 3.4% Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 EBITA, excl. one-offs (EUR mn) EBITA margin, excl. one-offs EBITA €26 mn, 3.4% margin Share of Group 11% 10
Page 11
Akkodis: Delivering results on the transformation program Strengthen RUN Returned to revenue growth • Broad-based growth across markets and in both Consulting & Solutions and Talent Capturing momentum in aerospace & defense • 20% revenue growth in Q2 • France +15%, Germany +9% Germany turnaround • Right-sizing to adjust to current conditions • Repositioning capabilities to higher-growth end markets Sales transformation & global accounts • Global Accounts revenue grew 3% • Global Delivery transformation acceleration reaching 3,000+ FTE organically in near-shore and offshore centers Strengthening portfolio and capabilities • Strengthening capabilities in ASD and Engineering, and increasing Global Delivery footprint, partly funded by redeploying capital • Divestment1 of Entegee, non-core tech staffing • Acquisition2 of Axiscades ASD and Engineering Services, and Sogéclair Airframe and Cabin Engineering AI leadership • Physical AI3 practice launched with strong traction in Automotive & Semiconductors 1 Closed in June 2026 2 Expected closing in H2 2026 3 Robots, autonomous systems, drones, autonomous vehicles and intelligent industrial infrastructure, that can perceive, decide and ac t in real-world environments 11 Accelerate CHANGE
Page 12
Growth in both PRS and CT, perm placement stabilizing • PRS was back to growth, +1% and improving sequentially, with US growing at 7%. Productivity rose by 30%, with billing FTEs -15% yoy. RPO soft. Perm placement stabilizing • CT modest growth from a high base, continuing to gain market share. APAC, UK & Spain grew strongly. Healthy pipeline • CS: Ezra +3%, solid on a demanding comparison, good pipeline. GA -31%, as it pivots from B2C to B2B, which grew +19% • EBITA +19% yoy; strong margin, driven by growth in PRS and CT, productivity improvements and cost discipline. Direct contribution per selling FTE +15% yoy Revenues €326 mn, flat yoy EBITA €36 mn, 11.0% margin Professional Recruitment Solutions (PRS) +1% yoy Career Transition (CT) +2% yoy Coaching & Skilling (CS) -10% yoy Margin +150 bps yoy Favorable mix Productivity, cost management Share of Group 6% Share of Group 16% 337 320 325 311 326 -1% 4% 2% -1% 0% Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Revenues (EUR mn) % yoy, org CC 32 29 31 34 36 9.5% 9.0% 9.7% 11.0% 11.0% Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 EBITA, excl. one-offs (EUR mn) EBITA margin, excl. one-offs 12
Page 13
53 12 8 23 4 Healthy gross margin reflecting current business mix; firm pricing Gross margin bridge (as % of revenues yoy, in bps) 18.9% (15) 0 0(25) +20 Q2 25 Q2 26Outsourcing, Consulting & Other Career Transition Permanent Placement Flexible Placement FX Training, Up/Re- skilling 18.6% % Gross Profit by service line (10) 5 -1 2 10 -1 Revenues by service line (% yoy org. CC) Flexible Placement Permanent Placement Career Transition Outsourcing, Consulting & Other Training, Up/Re-skilling 13
Page 14
Improved profitability with organic drop-down ratio of 64% Productivity (DC/Selling FTE) +6% yoy FTEs 33,543 -2% yoy organic G&A 3.2% revenues SG&A excl. one-offs €953 mn 0% yoy, reported; 15.9% revenues -60 bps yoy 2.5% Q2 25 Q2 26 2.6% +60(10) (20) EBITA bridge, excl. one-offs (as % of revenues yoy, in € mn and bps) 14 0 < KPIs 141 165 2.8% yoy, organic CC basis 141 165 FESCO JV FX SG&AGross margin
Page 15
Strong cash conversion, robust financial structure • OCF €23 mn, from €81 mn in Q2 25 • Cash result reflects working capital absorption for growth and normal seasonality • Disciplined working capital management; DSO 53 days, best-in-class • Capex -€37 mn; FCF -€14 mn • Adecco Group’s cash generation is H2 weighted • ND/EBITDA ratio 0.5x lower yoy • Net debt € 2,647 mn, €235 mn lower yoy • Firmly committed to net debt/EBITDA ≤1.5x1 by end-27 • 79% debt fixed; interest rate sensitivity +/- 1% = ~€7 mn • No covenants on outstanding debts • Undrawn €750 mn RCF, undrawn €250 mn credit lines • CHF 100 mn bond to be redeemed in Q3 2026 • 2027 EUR 500 mn maturity pre-funded • Q2 interest expense €20 mn LTM CASH CONVERSION 83% ROBUST FINANCIAL STRUCTURE NET DEBT / EBITDA 2.7x 1 Absent any major macroeconomic or geopolitical disruption 15 WELL-BALANCED BOND MATURITY PROFILE 500 300 500 300 50108 325 44 32 38 500 450 2026 2027 2028 2029 2030 2031 2032 2033 2034 2039 EUR CHF NOK JPY EUR hybrid Notional values in EUR mn
Page 16
Positive momentum in volumes has continued this quarter to date. For Q3, the Group expects a modest sequential improvement in gross margin. It expects SG&A expenses excluding one-offs to be lower sequentially. Management is rigorously executing the Group’s strategy and run-and-change priorities, focusing on market share gains while actively controlling costs and managing capacity to continue driving profitable growth and deleveraging. Near-term outlook 16
Page 17
17 Key takeaways 1 Strong growth and sustained market share gains; Akkodis back to growth Rigorous execution, end-market penetration, accelerated agentic AI deployment Organic revenue growth of +5.6% TDA yoy Operating leverage and cost discipline driving profitability 18.6% gross margin, with yoy comparison improving sequentially by 20 bps1 EBITA margin excl. one-offs 2.8%, +30 bps yoy Continued deleveraging momentum ND/EBITDA -0.5x yoy 2 3 1 On an organic and constant currency basis
Page 18
Q&A
Page 19
Appendix
Page 20
Additional financial framework 1 Of which, EUR 46 mn related to Akkodis Germany turnaround. 2 Depreciation across COS and SG&A. 3 Tax rate including discrete events. EUR mn, unless otherwise stated 2025 2026e Q1 26 Q2 26 Q3 26e One-off costs (60)1 ~(60) (7) (36) ~(15) Depreciation2 (153) ~(160) (37) (39) ~(40) Amortization (61) ~(75) (14) (20) ~(20) Interest expense, gross (68) ~(80) (15) (20) ~(20) Other income/(expenses), net (70) ~(20) +1 (20) ~0 Effective tax rate 32%3 ~37% 38.9%3 33%3 ~37% Capital expenditure (130) ~(150) (22) (37) ~(40) 2025 2026e Q1 26 Q2 26 Q3 26e Foreign exchange impact on revenues (at current rates, yoy) (1.3)% ~(1.5)-(2.0)% (4.1)% (1.7)% (0.1)% Trading Days Adjustment (difference in trading hours, yoy) (0.3)% +0.2% +0.1% -0.1% +0.3% 20
Page 21
Company profiles 21 About AXISCADES About SOGECLAIR AXISCADES Technologies Limited (NSE: AXISCADES ) (BSE: 532395) is a publicly listed Indian aerospace and engineering company. Post the Engineering Services Divestment Programme concluded today, AXISCADES is structured around four strategic growth platforms — Aerospace Manufacturing / Supply Chain Integration / MRO (at the Company's DAC, MAC and DAL facilities), ACAT (the defense arm — Defense Manufacturing, Strategic Electronics and System Integration), XiDA Inc (AI-centric ESAI — the US-driven Electronics and Semiconductor platform), and the newly established Space division (satellite bus manufacturing and system integration). The Company is executing its publicly committed Power 930 plan — approximately Rs 9,000 crore revenue and approximately Rs 960 crore PAT by FY2030. www.axiscades.com Supplier of innovative high added-value solutions for safer and less- consuming mobility, SOGECLAIR brings its skills in high-quality engineering and production to a broad range of cutting-edge sectors notably aeronautics, space, vehicle, rail and defense. Supporting its customers and partners from the design and simulation stages through to the end of the product’s lifetime, all along the production chain through to entry into service, the collaborators are working worldwide to offer a high-quality and proximity service to all its customers. SOGECLAIR is listed on Euronext Growth Paris - Indice Euronext® Family Business - Code ISIN: FR0000065864 / (Reuters SCLR.PA – Bloomberg SOG.FP) www.sogeclair.com
Page 22
investor.relations@adeccogroup.com 22