Annual Report 2015

Review of segment performance
in millions, except share and per share information

France

 

 

 

 

in EUR

2015

2014

Variance %

 

 

 

 

Revenues

4,714

4,640

2

EBITA

331

280

18

EBITA margin

7.0%

6.0%

 

In 2015, revenues in France increased by 2% to EUR 4,714. Temporary hours sold increased by 2% and bill rates remained flat versus 2014. Revenues in Industrial, which accounts for approximately 85% of revenues in France, increased by 3%, while revenues in Office decreased by 1% and in Professional Staffing decreased by 10%. Permanent placement revenues in France were up 10%. EBITA amounted to EUR 331 in 2015 compared to EUR 280 in 2014. The EBITA margin was 7.0% in 2015 and included a favourable item related to prior years social security charges, which added approximately 40 bps to the EBITA margin. In 2014, the EBITA margin excluding EUR 4 of restructuring costs was 6.1%.

North America

 

 

 

Variance %

in EUR

2015

2014

EUR

Constant

currency

 

 

 

 

Revenues

4,670

3,854

21

2

EBITA

288

205

41

18

EBITA margin

6.2%

5.3%

 

 

In North America, revenues were EUR 4,670 in 2015, an increase of 21% or 2% in constant currency compared to 2014. Temporary hours sold grew by 1% and bill rates increased by 1% versus 2014 in constant currency. In North America, General Staffing accounts for approximately half of the revenues. Revenues in Industrial increased by 9%, whereas revenues in Office decreased by 5%, both in constant currency. Revenues in Professional Staffing grew by 1% (0% organically) in constant currency. Revenues increased by 1% in IT, 8% (6% organically) in Finance & Legal, 16% in Medical & Science and decreased by 8% in Engineering & Technical, all in constant currency. Permanent placement revenues in North America were up 16% in constant currency. EBITA in 2015 was EUR 288 compared to EUR 205 in the previous year. Included in EBITA in 2014 are restructuring costs of EUR 18 for the move to a single headquarters in North America. The EBITA margin was 6.2% in 2015, an increase of 40 bps when compared to the prior year excluding restructuring costs.

UK & Ireland

 

 

 

Variance %

in EUR

2015

2014

EUR

Constant

currency

 

 

 

 

Revenues

2,285

2,061

11

0

EBITA

60

49

22

10

EBITA margin

2.6%

2.4%

 

 

In 2015, revenues in the UK & Ireland increased by 11% or remained flat in constant currency. Temporary hours sold decreased by 3% and bill rates increased by 3% versus 2014 in constant currency. Approximately two-thirds of revenues come from Professional Staffing, which decreased by 2% in constant currency. Revenues decreased by 1% in IT and by 20% in Engineering & Technical, whereas revenues in Finance & Legal remained flat, all in constant currency. Within General Staffing, revenues in Office increased by 4%, whereas in Industrial revenues were up 2%, both in constant currency. Permanent placement revenues increased by 2% in constant currency. EBITA in 2015 amounted to EUR 60 compared to EUR 49 for the prior year. The EBITA margin was 2.6% in 2015 compared to 2.4% in 2014.

Germany & Austria

 

 

 

 

in EUR

2015

2014

Variance %

 

 

 

 

Revenues

1,713

1,687

2

EBITA

103

77

34

EBITA margin

6.0%

4.6%

 

In Germany & Austria, revenues were EUR 1,713 in 2015, an increase of 2% compared to the previous year. Temporary hours sold increased by 1% and bill rates grew by 1% versus 2014. Revenues in Industrial, which accounts for approximately 75% of the revenues in Germany & Austria, increased by 2%. Revenues in Professional Staffing were flat. EBITA amounted to EUR 103 in 2015 compared to EUR 77 in 2014. Included in 2014 were restructuring costs of EUR 14. The EBITA margin was 6.0% in 2015 compared to an EBITA margin, excluding restructuring costs, of 5.4% in 2014.

Japan

 

 

 

Variance %

in EUR

2015

2014

EUR

Constant

currency

 

 

 

 

Revenues

1,119

1,032

8

4

EBITA

54

57

(5)

(9)

EBITA margin

4.9%

5.5%

 

 

In Japan, revenues in 2015 were EUR 1,119, an increase of 8% or 4% in constant currency. Temporary revenues increased 3% in constant currency. Temporary hours sold were flat and bill rates increased by 2% versus 2014 in constant currency. Revenues in outsourcing were up 6% in constant currency. In General Staffing, where we are mainly exposed to the Office business, revenues increased by 3% in constant currency. In the Professional Staffing business, which comprises IT and Engineering & Technical, revenues increased by 6% in constant currency. EBITA was EUR 54 in 2015 compared to EUR 57 in 2014. The EBITA margin was 4.9% compared to 5.5% in 2014. Included in 2015 is the write-down of capitalised software of EUR 12. The EBITA margin excluding the write-down of capitalised software was 5.9% in 2015 compared to 5.5% in 2014.

Italy

 

 

 

 

in EUR

2015

2014

Variance %

 

 

 

 

Revenues

1,300

1,098

18

EBITA

94

65

45

EBITA margin

7.2%

5.9%

 

Revenues in Italy increased by 18% in 2015 compared to the previous year, as temporary hours sold grew by 16% and
bill rates increased by 1% versus 2014. The EBITA margin in 2015 was 7.2%, up 130 bps compared to 2014.

Benelux

 

 

 

 

in EUR

2015

2014

Variance %

 

 

 

 

Revenues

1,089

982

11

EBITA

47

45

6

EBITA margin

4.3%

4.5%

 

In 2015, revenues in Benelux increased by 11%. Temporary hours sold increased by 11% and bill rates remained flat versus 2014. The EBITA margin was 4.3% in 2015 and included a non-cash expense related to changing the defined benefit pension plan in the Netherlands to a defined contribution pension plan, which negatively impacted the EBITA margin by approximately 70 bps. In 2014, the EBITA margin was 4.5%.

Nordics

 

 

 

Variance %

in EUR

2015

2014

EUR

Constant

currency

 

 

 

 

Revenues

726

821

(12)

(8)

EBITA

9

23

(61)

(59)

EBITA margin

1.3%

2.9%

 

 

In 2015, revenues in the Nordics decreased by 12% or by 8% in constant currency. Temporary hours sold decreased by 9% and bill rates remained flat versus 2014 in constant currency. Sweden delivered strong revenue growth, while revenues declined in Norway, where the market environment was challenging. The EBITA margin was 1.3% in 2015 compared to 2.9% in 2014.

Iberia

 

 

 

 

in EUR

2015

2014

Variance %

 

 

 

 

Revenues

898

789

14

EBITA

39

31

27

EBITA margin

4.4%

3.9%

 

Revenues increased in Iberia by 14% in 2015 compared to the previous year. Temporary hours sold increased by 15% and bill rates increased by 2%. Revenues in outsourcing increased by 7% compared to 2014. The EBITA margin was 4.4% in 2015 compared to 3.9% in 2014.

Australia & New Zealand

 

 

 

Variance %

in EUR

2015

2014

EUR

Constant

currency

 

 

 

 

Revenues

367

350

5

5

EBITA

0

0

(166)

(286)

EBITA margin

–0.1%

0.1%

 

 

Revenues in Australia & New Zealand increased by 5% in constant currency in 2015 compared to the previous year. Temporary hours sold increased by 6% and bill rates increased by 1% versus 2014 in constant currency. The EBITA margin was –0.1%, compared to 0.1% in 2014.

Switzerland

 

 

 

Variance %

in EUR

2015

2014

EUR

Constant

currency

 

 

 

 

Revenues

477

427

12

(1)

EBITA

32

38

(16)

(26)

EBITA margin

6.6%

8.8%

 

 

Revenues in Switzerland increased by 12% or decreased by 1% in constant currency in 2015 compared to the previous year. Temporary hours sold decreased by 2% and bill rates remained flat versus 2014 in constant currency. The EBITA margin was 6.6% compared to 8.8% in 2014. Factors negatively impacting profitability in 2015 included the strength of the Swiss Franc, continued pricing pressure, unfavourable mix effects, and costs related to adapting our business to the development in market conditions.

Emerging Markets

 

 

 

Variance %

in EUR

2015

2014

EUR

Constant

currency

 

 

 

 

Revenues

2,256

1,925

17

14

EBITA

82

68

21

19

EBITA margin

3.6%

3.5%

 

 

Revenues in the Emerging Markets increased by 17% or by 14% in constant currency. The EBITA margin was 3.6% in 2015 compared to 3.5% in 2014.

Lee Hecht Harrison

 

 

 

Variance %

in EUR

2015

2014

EUR

Constant

currency

 

 

 

 

Revenues

396

334

19

9

EBITA

104

98

6

(6)

EBITA margin

26.2%

29.3%

 

 

Revenues of Lee Hecht Harrison, Adecco’s Career Transition & Talent Development business, amounted to EUR 396, an increase of 19% or 9% in constant currency, or 1% organically. EBITA amounted to EUR 104 and the EBITA margin was 26.2%. Included in 2015 are integration costs of EUR 11 relating to the acquisition of Knightsbridge. The EBITA margin excluding integration costs was 28.9% compared to an EBITA margin of 29.3% in 2014.