Annual Report 2014

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

France

 

 

 

 

in EUR millions

2014

2013

Variance %

 

 

 

 

Revenues

4,640

4,735

(2)

EBITA

280

224

25

EBITA margin

6.0%

4.7%

 

In 2014, revenues in France decreased by 2% to EUR 4,640. Temporary hours sold decreased by 3% and bill rates increased by 1% versus 2013. Revenues in Industrial, which accounts for approximately 85% of revenues in France, remained flat, while revenues in Office decreased by 19% and in Professional Staffing decreased by 5%. Permanent placement revenues in France were up 10%. EBITA amounted to EUR 280 in 2014 compared to EUR 224 in 2013. Included in EBITA are restructuring costs of EUR 4 in 2014 and EUR 19 in 2013. The EBITA margin excluding restructuring costs was 6.1% in 2014 compared to 5.1% in 2013. In 2014, CICE (tax credit for competitiveness and employment) had a further positive effect year-on-year, due to the increase in the credit on employee salaries up to 2.5 times the minimum wage, from 4% in 2013 to 6% for 2014.

North America

 

 

 

Variance %

in EUR millions

2014

2013

EUR

Constant

currency

 

 

 

 

 

Revenues

3,854

3,726

3

5

EBITA

205

168

22

24

EBITA margin

5.3%

4.5%

 

 

In North America, revenues were EUR 3,854 in 2014, an increase of 3% or an increase of 5% in constant currency compared to 2013. Temporary hours sold grew by 5% and bill rates decreased by 1% versus 2013 in constant currency. In North America, General Staffing accounts for approximately half of the revenues. In Industrial revenues increased by 11%, whereas in Office revenues decreased by 1%, both in constant currency. Revenues in Professional Staffing grew by 2% in constant currency. Revenues increased by 3% in IT, 5% in Finance & Legal, 8% in Medical & Science and decreased by 1% in Engineering & Technical, all in constant currency. Permanent placement revenues in North America were up 11% in constant currency. EBITA in 2014 was EUR 205 compared to EUR 168 in the previous year. Included in EBITA are restructuring costs of EUR 18 in 2014, for the move to a single headquarters in North America, and EUR 6 in 2013. The EBITA margin excluding restructuring costs was 5.8% in 2014, an increase of 110 bps when compared to the prior year.

UK & Ireland

 

 

 

Variance %

in EUR millions

2014

2013

EUR

Constant

currency

 

 

 

 

 

Revenues

2,061

1,907

8

3

EBITA

49

37

33

27

EBITA margin

2.4%

1.9%

 

 

In 2014, revenues in the UK & Ireland increased by 8% or by 3% in constant currency. Temporary hours sold decreased by 1% and bill rates increased by 3% versus 2013 in constant currency. Approximately two-thirds of revenues come from Professional Staffing, which grew by 5% in constant currency. Revenues increased by 6% in IT and by 3% in Finance & Legal, whereas revenues in Engineering & Technical declined by 14%, all in constant currency. Within General Staffing, the majority of revenues are in Office, which decreased by 1% in constant currency. Permanent placement revenues increased by 8% in constant currency. EBITA in 2014 amounted to EUR 49 compared to EUR 37 in the same period of the prior year. The EBITA margin was 2.4% in 2014 compared to 1.9% in 2013 or 2.1% excluding restructuring costs of EUR 3 in 2013.

Germany & Austria

 

 

 

 

in EUR millions

2014

2013

Variance %

 

 

 

 

Revenues

1,687

1,620

4

EBITA

77

88

(13)

EBITA margin

4.6%

5.5%

 

In Germany & Austria, revenues were EUR 1,687 in 2014, an increase of 4% compared to the previous year. Temporary hours sold increased by 2% and bill rates grew by 2% versus 2013. Revenues in Industrial, which accounts for approximately 70% of the revenues in Germany & Austria, increased by 7%. Revenues in Professional Staffing decreased by 3%. EBITA amounted to EUR 77 in 2014 compared to EUR 88 in 2013. Included in 2014 are restructuring costs of EUR 14. The EBITA margin excluding restructuring costs was 5.4% in 2014 compared to an EBITA margin of 5.5% in 2013.

Japan

 

 

 

Variance %

in EUR millions

2014

2013

EUR

Constant

currency

 

 

 

 

 

Revenues

1,032

1,118

(8)

2

EBITA

57

66

(13)

(5)

EBITA margin

5.5%

5.9%

 

 

In Japan, revenues in 2014 were EUR 1,032, a decrease of 8% or an increase of 2% in constant currency. Temporary revenues remained flat in constant currency. Temporary hours sold decreased by 2% and bill rates increased by 2% versus 2013 in constant currency. Revenues in outsourcing were up 6% in constant currency. In Office, which accounts for approximately 75% of total revenues in Japan, revenues decreased by 1% in constant currency. In the Professional Staffing business, which comprises IT and Engineering & Technical, revenues increased by 7% in constant currency. EBITA was EUR 57 in 2014 compared to EUR 66 in 2013. The EBITA margin was 5.5% compared to 5.9% in 2013.

Italy

 

 

 

 

in EUR millions

2014

2013

Variance %

 

 

 

 

Revenues

1,098

960

14

EBITA

65

58

12

EBITA margin

5.9%

6.0%

 

Revenues in Italy increased by 14% in 2014 compared to the previous year, as temporary hours sold grew by 14% and bill rates remained flat versus 2013. The EBITA margin in 2014 was 5.9%, down 10 bps compared to 2013.

Benelux

 

 

 

 

in EUR millions

2014

2013

Variance %

 

 

 

 

Revenues

982

929

6

EBITA

45

39

15

EBITA margin

4.5%

4.2%

 

In 2014 revenues in Benelux increased by 6%. Temporary hours sold increased by 6% and bill rates remained flat versus 2013. The EBITA margin was 4.5% in 2014 compared to 4.2% in the previous year.

Nordics

 

 

 

Variance %

in EUR millions

2014

2013

EUR

Constant

currency

 

 

 

 

 

Revenues

821

815

1

6

EBITA

23

21

11

16

EBITA margin

2.9%

2.6%

 

 

In 2014, revenues in the Nordics increased by 1% or by 6% in constant currency. Temporary hours sold increased by 4% and bill rates increased by 2% versus 2013 in constant currency. The EBITA margin was 2.9% in 2014 compared to 2.6% in 2013.

Iberia

 

 

 

 

in EUR millions

2014

2013

Variance %

 

 

 

 

Revenues

789

662

19

EBITA

31

18

73

EBITA margin

3.9%

2.7%

 

Revenues increased in Iberia by 19% in 2014 compared to the previous year. Temporary hours sold increased by 20% and bill rates increased by 1%. Revenues in outsourcing increased by 17% compared to 2013. The EBITA margin was 3.9% in 2014 compared to 2.7% or 3.0% excluding restructuring costs of EUR 2 in 2013.

Australia & New Zealand

 

 

 

Variance %

in EUR millions

2014

2013

EUR

Constant

currency

 

 

 

 

 

Revenues

350

423

(17)

(11)

EBITA

0

8

(96)

(95)

EBITA margin

0.1%

1.9%

 

 

Revenues in Australia & New Zealand decreased by 17% or by 11% in constant currency in 2014 compared to the previous year. Temporary hours sold decreased by 16% and bill rates increased by 3% versus 2013 in constant currency. The EBITA margin was 0.1%, compared to 1.9% in 2013.

Switzerland

 

 

 

Variance %

in EUR millions

2014

2013

EUR

Constant

currency

 

 

 

 

 

Revenues

427

411

4

3

EBITA

38

34

11

9

EBITA margin

8.8%

8.3%

 

 

Revenues in Switzerland increased by 4% or by 3% in constant currency in 2014 compared to the previous year. Temporary hours sold grew by 3% and bill rates remained flat versus 2013 in constant currency. The EBITA margin was 8.8%, up 50 bps compared to 2013.

Emerging Markets

 

 

 

Variance %

in EUR millions

2014

2013

EUR

Constant

currency

 

 

 

 

 

Revenues

1,925

1,878

3

11

EBITA

68

65

5

14

EBITA margin

3.5%

3.4%

 

 

Revenues in the Emerging Markets increased by 3% or by 11% in constant currency. The EBITA margin was 3.5% in 2014 compared to 3.4% in 2013.

LHH

 

 

 

Variance %

in EUR millions

2014

2013

EUR

Constant

currency

 

 

 

 

 

Revenues

334

319

5

6

EBITA

98

88

11

13

EBITA margin

29.3%

27.5%

 

 

Revenues of LHH, Adecco’s Career Transition & Talent Development business, amounted to EUR 334, an increase of 5% or 6% in constant currency. EBITA amounted to EUR 98 and the EBITA margin was 29.3%. This compares to an EBITA margin of 27.5% in 2013 or 28.2% excluding restructuring costs in 2013.