6-K 1 d6k.htm MEDIA RELEASE WITH YEAR 2002 RESULTS Media Release with Year 2002 Results

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

REPORT OF FOREIGN ISSUER

 

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

 

For the month of February 2003

 

Commission # 0-25004

 

 

ADECCO S.A.

(Exact name of Registrant as specified in its charter)

 

Sägereistrasse 10

CH-8152 Glattbrugg

Switzerland

+41 1 878 88 85

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or 40-F

Form 20-F  x  Form 40-F  ¨

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is alsothereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934    Yes  ¨  No  x

 

This Report on Form 6-K contains:

 

  —   Adecco Year 2002 Results (Media Release; Figures as per 29 December 2002)

 

LOGO

 

MEDIA RELEASE

 

Adecco SA reports full year 2002 revenues of CHF 25.1

billion, income before amortisation of CHF 362 million,

cash flow from operations of CHF 647 million and net

debt reduction of CHF 553 million

 

Highlights:

 

Fourth Quarter

•   Group revenues up 3%, Adecco Staffing up 5%, Adecco Staffing USA up 12% (all in local currency)
•   Income before amortisation of CHF 40 million, affected by higher provisions for bad debt, workers compensation 1 and reorganisation charges
•   Cash flow from operations of CHF 359 million

 

Full Year

•   Group revenues for the year down 3% year over year (all in local currency)
•   Improving quarterly year over year sales
•   Market share up in France
•   Lee Hecht Harrison revenues up by 15%, profits up by 14% in local currency
•   Improved cost management and higher productivity– Group staff 1,000 below last year, despite acquisition of jobpilot and maintenance of branch network capacity
•   Average days sales outstanding (DSO) reduced by 3 days or 5%
•   Cash-flow from operations of CHF 647 million
•   Net debt reduced by CHF 553 million to CHF 2,047 million
•   Dividend of CHF 0.60 per share to be proposed to the Annual General Meeting
•   Change of reporting currency from Swiss Francs to Euro beginning in 2003

 

CHESEREX, SWITZERLAND, February 5, 2003 – Adecco SA, the global leader in HR Solutions today announced its results for the fiscal year ended December 29, 2002. Group revenues for the full year were CHF 25.1 billion, down 8% in CHF and down 3% in local currency. Operating income for the full-year was CHF 662 million, a decrease of 44% in CHF and of 40% in local currency compared to the same period a year ago. Income before amortisation amounted to CHF 362 million, a decline of 48% in CHF and of 44% in local currency over the same period last year. The Group generated cash-flow from operations of CHF 647 million and free cash-flow2 of CHF 499 million. Net debt was reduced by CHF 553 million.

 

In the fourth quarter, the company reported revenues of CHF 6.3 billion, up 3% in local currency, and operating income of CHF 90 million, down 56% in local currency. Net income before amortisation was CHF 40 million, down 65% in local currency. Adecco increased bad debt expenses to 0.6% on sales due to a deterioration of credit quality. In addition, the Group recorded a special charge for workers compensation in the US, following a recent worsening

 

1 US work-related injuries insurance

2 Free cash-flow: cash-flow from operations minus capital expenditures

 

1

of claim history, of CHF 32 million. Reorganisation charges for the quarter also affected the result. Due to the further appreciation of the Swiss Francs, there was a negative currency impact of 5% on revenues and of 2% on profits.

 

Jérôme Caille, Chief Executive Officer, commented: “In a challenging year, we improved Group sales sequentially year over year from -9% in Q1, -5% in Q2, -1% in Q3 to +3% in Q4. We have reduced our cost base and reorganised our business, while preserving network capacity. We have over 5,800 branches, the largest network in the industry, which ideally positions us to maximise opportunities in all geographies and fully benefit from the upturn. We have thoroughly revised our business processes, so as to increase the efficiency of our front and back-offices. Adecco is well positioned to benefit in 2003 from the reorganisation work done in 2002”.

 

Felix Weber, Chief Financial Officer, added: “The Adecco Group’s cash generation and strong balance sheet will enable us to continue to invest in future growth during challenging times. The free cash-flow generated this year provide leeway to invest in organic growth in the years to come, as well as in selected acquisitions supporting our strategy. The management of working capital, strengthened internal controls and the maintenance of a cost base, which balances long-term growth opportunities and short-term trading pressures remain priorities for the business.”

 

Divisional Performance

 

Adecco Staffing reported revenues of CHF 5.6 billion for the fourth quarter, up 1% in CHF and 5% in local currency over the fourth quarter last year. Profits for the quarter were affected by provisions. For the full-year, the division posted revenues of CHF 22.1 billion, 6% below last year’s figures in CHF and 1% down in local currency.

 

Ajilon Professional revenues for the fourth quarter declined to CHF 580 million, down 18% in CHF and down 13% in local currency. Ajilon’s four major well established business units, which constitute 70% of the Division’s revenues, continued to produce good return on sales. Overall profits were however impacted by strategic investment in reorganization in the twelve countries in Continental Europe where management sees huge long-term potential. Revenues remained stable month over month. Ajilon has adjusted its cost base to expected revenues going forward.

 

LHH Career Services reported revenues of CHF 108 million for the quarter, down 8% in CHF and flat on record fourth quarter 2001 in local currency. Profit margins continued to increase in the fourth quarter compared to the third quarter, leading to higher local currency profit contribution of this business. In the twelve months, the division reported a revenue increase of 15% in local currency to CHF 436 million.

 

jobpilot e-HR reported revenues of CHF 7 million for the quarter and CHF 21 million for the full year following the acquisition of jobpilot in May 2002.

 

“The Adecco Staffing division showed even faster sequential sales growth than the Group in 2002”, continued Jérôme Caille. “In the fourth quarter, the Division grew sales by 5% and showed positive, increasing year-over-year growth in eight of the top eleven major markets. The performance of the US team was particularly impressive in Q4 with Adecco Staffing US growing at 12 %. Adecco Japan also posted outstanding performance, growing 10% in the quarter and 9% for the full year. Adecco Staffing UK opened 50 branches in 2002, which performed well. The Adecco network in France outperformed the market in 2002. Adecco Spain posted an increase in contribution of over 30% in 2002, setting a new standard in operational efficiency. Ajilon continued to adapt its cost structure to the ongoing lower level of activities. The division’s much lower cost base will ensure high operating gearing in the upturn. Lee Hecht Harrison had a strong performance, growing 15% in local currency over an already strong 2001”.

 

Technology Update

 

Adecco’s Global IT strategy initiated five years ago continued to deliver results. Following Italy and Spain, the company has successfully deployed its standard web-centric technology platform in France and will extend it to an-

 

2

 

other 28 business units in 2003. Now around three quarters of our revenues are supported by new, web-enabled systems.

 

Jérôme Caille commented: “The sharing of candidates among branches will allow us to generate additional sales with our customers, provide better service to our candidates and enable our colleagues to spend more time with people, rather than paperwork.”

 

Outlook

 

“Despite uncertainty in the development of the world economy, we will adhere to our strategy of strengthening our market position and gaining share. In case of market improvement we are in a strong position to fully exploit such a situation. In case of continued sluggish economy we have the systems in place to further reduce cost accordingly.”, said Jérôme Caille.

 

Change of Reporting Currency

 

Beginning in 2003 the Adecco Group will change its reporting currency from the Swiss Franc to the Euro. This change is expected to reduce, but not eliminate the effects of currency fluctuations on the consolidated statements of operations. However, in the 2002 annual report, which is scheduled to be published in April 2003, consolidated results will still be reported in CHF, and the change of reporting currency will be reflected in the future quarterly releases and in the Annual Report 2003.

 

“By reporting in Euro, we expect to eliminate a substantial amount of currency-related volatility from our reported results”, explained Felix Weber, Chief Financial Officer. “We generate approximately 50% of our revenue and have a similar share of costs in Euros, which makes it sensible in future to report in this currency. Certain key figures in the annual report will also be shown in USD and in Swiss Francs. The accounts of Adecco S.A., the Swiss Holding Company, will continue to be reported in Swiss Francs.”

 

Dividend to be proposed at the Annual General Meeting

 

The Board of Directors of Adecco will propose a dividend of CHF 0.60 per share (CHF 1.00 in 2001) for the approval of shareholders at the Annual General Meeting scheduled to take place on April 16, 2003. The dividend will be paid on April 28, 2003 to shareholders of record on that date.

 

US GAAP Results

 

For the full-year ended December 29, 2002, Adecco reported under US Generally Accepted Accounting Principles (US GAAP) revenues of CHF 25.1 billion and a net income of CHF 354 million, including CHF 8 million amortisation of other intangibles.

 

According to Chief Financial Officer, Felix Weber, “Adecco continues to consider operating income and income before amortisation to be the most relevant benchmarks of the company’s financial performance, as they measure our operational performance and our ability to fund growth and distribute dividends.”

 

Effective from fiscal year 2002, Adecco has adopted SFAS No. 142 and ceased amortisation of goodwill. Based on the impairment tests performed, there was no impairment charge in 2002.

 

3

 

Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to risks and uncertainties. The Adecco Group’s actual results may differ materially from the results anticipated in these forward-looking statements as a result of certain factors as set forth in the Adecco Group’s reports on Form 20-F made pursuant to the Securities Exchange Act of 1934. For instance, the Adecco Group’s results of operations may differ materially from those anticipated in the forward-looking statements due to, among other things: our ability to successfully implement our growth and operating strategies, fluctuations in interest rates or foreign currency exchange rates, changes in economic conditions, changes in the law or government regulations in the countries in which the Adecco Group operates, instability in domestic and foreign markets, our ability to obtain commercial credit, and changes in general political, economic and business conditions in the countries or regions in which Adecco operates. In addition, the market price of the Company’s stock may be volatile from time to time as a result of, among other things: the Adecco Group’s operating results, the operating results of other staffing service providers, and changes in the performance of global stock markets in general.

 

                                                                                                                                                                                                           

 

About Adecco

 

Adecco S.A. is a Forbes 500 company and the global leader in HR Solutions. The Adecco network connects over 650,000 associates with business clients each day through its network of over 29,000 employees and over 5,800 offices in 63 countries around the world. Registered in Switzerland, and managed by a multinational team with expertise in markets spanning the globe, the Adecco Group delivers an unparalleled range of flexible staffing and career resources to corporate clients and qualified associates.

 

The Adecco Group comprises four Divisions, Adecco Staffing, Ajilon Professional, LHH Career Services and jobpilot e-HR Services. In Adecco Staffing, the Adecco staffing network focuses on flexible staffing solutions for global industries in transition, including automotive, banking, electronics, logistics and telecommunications; Ajilon Professional offers an unrivalled range of specialized branded businesses; LHH Career Services encompasses our portfolio of outplacement and coaching; jobpilot e-HR focuses on online recruiting activities for the Adecco Group.

 

Adecco S.A. is registered in Switzerland and is listed on the Swiss Exchange (ADEN / trading on Virt-x: 1213860), NYSE (ADO), Euronext Premier Marché (12819).

 

Further information can be found at the Investor Relations page at www.adecco.com.

 

Contacts at Adecco m & c:

 

Corporate Investor Relations

investor.relations@adecco.com or ++41 1 878 8884

 

Chief Financial Officer

felix.weber@adecco.com or ++41 1 878 8880

 

4

 

Selected Financial Highlights

 

      

Three months ended

     

% change

  
      

December 29,

2002

     

December 30, 2001

     

CHF

     

Constant

  
      

CHF millions

  

Net service revenues

     

6,278

     

6,377

 

   

-2

%

   

3

%

Operating income

     

90

     

215

 

   

-58

%

   

-56

%

Income before amortisation and one-time items(1)

     

40

     

123

 

   

-67

%

   

-65

%

Net income / (loss) (2)

     

37

     

(85

)

              

 

    

Twelve months ended

     

% change

  
    

December 29,

2002

   

December 30,

2001

     

CHF

     

Constant

  
    

CHF millions

  

Net service revenues

   

25,086

   

27,247

 

   

-8

%

   

-3

%

Operating income

   

662

   

1,179

 

   

-44

%

   

-40

%

Income before amortisation and one-time items(1)

   

362

   

702

 

   

-48

%

   

-44

%

Net income / (loss) (2)

   

354

   

(427

)

              

Income per share before amortisation of intangibles

                          

and one-time items (1)

                          

Basic

   

1.94

   

3.77

 

   

-48

%

       

Diluted

   

1.91

   

3.68

 

   

-48

%

       

Weighted average shares

   

186,527,178

   

185,880,663

 

              

Diluted shares

   

193,469,123

   

192,832,231

 

              

 

(1) In the first quarter 2001, one-time items include internet investment write-down of CHF 15 million and the cumulative effect of change in accounting principles, net of tax, of CHF 8 million.

 

(2) For the twelve months ended December 30, 2001, net income / (loss) and net income / (loss) per share include goodwill amortisation. For the twelve months ended December 30, 2001, the adjusted net income (under SFAS No. 142) is CHF 561 million; the adjusted basic EPS is CHF 3.02 and the adjusted diluted EPS is CHF 2.95.

 

Income before amortisation of intangibles and one-time items is not meant to portray net income or cash flow in accordance with U.S. generally accepted accounting principles. Amortisation is a non-cash charge to operating income; however, income before amortisation of intangibles and one-time items does not represent cash available to shareholders. This may not be comparable to similarly entitled items reported by other companies. Up to December 30, 2001, Adecco amortised goodwill over its estimated life of five years. In fiscal year 2002, goodwill is no longer amortised.

 

5

 

Revenues by Division and Geographical Segment

 

Net Services Revenues

     

Three months ended

   

% change

  
    

December 29,

2002

     

December 30,

2001

   

CHF

     

Constant

  

By Division

                            

Adecco Staffing

     

5,583

     

5,554

   

1

%

   

5

%

Ajilon Professional

     

580

     

705

   

-18

%

   

-13

%

Career Services

     

108

     

117

   

-8

%

   

0

%

e—HR & Others

     

7

     

1

   

n.m.

 

   

n.m.

 

By Region

                            

Europe

     

3,841

     

3,816

   

1

%

   

1

%

North America

     

1,653

     

1,733

   

-5

%

   

5

%

Asia Pacific

     

626

     

611

   

2

%

   

11

%

Rest of World

     

158

     

217

   

-27

%

   

-1

%

      
    
  
  

Total

     

6,278

     

6,377

   

-2

%

   

3

%

      
    
  
  

 

      

Twelve months ended

   

% change

  

Net Services Revenues

     

December 29,

2002

     

December 30,

2001

   

CHF

     

Constant

  

By Division

                            

Adecco Staffing

     

22,119

     

23,476

   

-6

%

   

-1

%

Ajilon Professional

     

2,510

     

3,363

   

-25

%

   

-21

%

Career Services

     

436

     

406

   

7

%

   

15

%

e—HR & Others

     

21

     

2

   

n.m.

 

   

n.m.

 

By Region

                            

Europe

     

15,364

     

16,471

   

-7

%

   

-4

%

North America

     

6,652

     

7,559

   

-12

%

   

-5

%

Asia Pacific

     

2,391

     

2,423

   

-1

%

   

8

%

Rest of World

     

679

     

794

   

-14

%

   

10

%

      
    
  
  

Total

     

25,086

     

27,247

   

-8

%

   

-3

%

      
    
  
  

 

Additional information available upon request.

 

6

 

Consolidated Statements of Operations

 

CHF millions

      

Three months ended

            

Twelve months ended

         
      

December 29,

2002

       

December 30,

2001

     

% change

     

December 29,

2002

     

December 30, 2001

     

% change

  
          

Net service revenues

     

6,278

 

     

6,377

 

   

-2

%

   

25,086

 

   

27,247

 

   

-8

%

Direct costs of services

     

(5,207

)

     

(5,230

)

          

(20,611

)

   

(22,127

)

       
      
    
         
  
      

Gross Margin

     

1,071

 

     

1,147

 

          

4,475

 

   

5,120

 

       

%

     

17.1

%

     

18.0

%

          

17.8

%

   

18.8

%

       

Selling, general & administrative expenses

     

(981

)

     

(932

)

          

(3,813

)

   

(3,941

)

       

%

     

15.6

%

     

14.6

%

          

15.2

%

   

14.5

%

       
      
    
         
  
      

Operating income

     

90

 

     

215

 

   

-58

%

   

662

 

   

1,179

 

   

-44

%

%

     

1.4

%

     

3.4

%

          

2.6

%

   

4.3

%

       

Interest income

     

5

 

     

9

 

          

17

 

   

32

 

       

Interest expense

     

(39

)

     

(52

)

          

(164

)

   

(242

)

       

Other expense

     

(6

)

     

(4

)

          

(12

)

   

(12

)

       

Provision for income taxes

     

(10

)

     

(45

)

          

(141

)

   

(254

)

       

Income applicable to minority interest

     

—  

 

     

—  

 

          

—  

 

   

(1

)

       
      
    
         
  
      

Income before amortisation of intangibles and one-time items (1)

     

40

 

     

123

 

   

-67

%

   

362

 

   

702

 

   

-48

%

%

     

0.6

%

     

1.9

%

          

1.4

%

   

2.6

%

       

Amortisation of intangibles

     

(3

)

     

(208

)

          

(8

)

   

(1,106

)

       

One-time items (1)

     

—  

 

     

—  

 

          

—  

 

   

(23

)

       
      
    
         
  
      

Net income / (loss) (2)

     

37

 

     

(85

)

          

354

 

   

(427

)

       
      
    
         
  
      

Net income / (loss) per share (2)

                                              

Basic

                            

1.90

 

   

(2.30

)

       

Diluted

                            

1.88

 

   

(2.30

)

       

Income per share before amortisation of intangibles and one-time items (1)

                                              

Basic

                            

1.94

 

   

3.77

 

   

-48

%

Diluted

                            

1.91

 

   

3.68

 

   

-48

%

Weighted average shares

                            

186,527,178

 

   

185,880,663

 

       

Diluted shares

                            

193,469,123

 

   

192,832,231

 

       

 

(1) In the first quarter 2001, one-time items include internet investment write-down of CHF 15 million and the cumulative effect of change in accounting principles, net of tax, of CHF 8 million.

 

(2) For the twelve months ended December 30, 2001, net income / (loss) and net income / (loss) per share include goodwill amortisation. For the twelve months ended December 30, 2001, the adjusted net income (under SFAS No. 142) is CHF 561 million; the adjusted basic EPS is CHF 3.02 and the adjusted diluted EPS is CHF 2.95.

 

Income before amortisation of intangibles and one-time items is not meant to portray net income or cash flow in accordance with U.S. generally accepted accounting principles. Amortisation is a non-cash charge to operating income; however, income before amortisation of intangibles and one-time items does not represent cash available to shareholders. This may not be comparable to similarly entitled items reported by other companies. Up to December 30, 2001, Adecco amortised goodwill over its estimated life of five years. In fiscal year 2002, goodwill is no longer amortised.

 

7

 

Net Service Revenues and Operating Income by Division & Geographical Segment

 

Q4 2002

   

Net Services Revenues

   

Operating Income*

(CHF Millions)

   

2002

   

2001

   

Variance        %

   

2002

   

2001

   

Variance        %

          

As

Reported

   

Constant FX Rate

         

As Reported

   

Constant FX Rate

Staffing Services

                                        

Europe

   

3,579

   

3,516

   

2

   

2

   

120

   

121

   

-2

   

-2

North America

   

1,267

   

1,253

   

1

   

11

   

-59

   

23

   

-354

   

-383

Asia Pacific

   

579

   

568

   

2

   

11

   

20

   

8

   

154

   

180

Rest of World

   

158

   

217

   

-27

   

-1

   

-22

   

4

   

-689

   

n.m.

    
  
  
  
  
  
  
  

Total

   

5,583

   

5,554

   

1

   

5

   

59

   

156

   

-62

   

-61

    
  
  
  
  
  
  
  

Professional Staffing and Services

                                        

Europe

   

244

   

291

   

-16

   

-16

   

-7

   

6

   

-219

   

-221

North America

   

294

   

375

   

-22

   

-14

   

9

   

16

   

-42

   

-35

Asia Pacific

   

42

   

39

   

9

   

9

   

0

   

-1

   

n.m.

   

n.m.

Rest of World

                                        
    
  
  
  
  
  
  
  

Total

   

580

   

705

   

-18

   

-13

   

2

   

21

   

-95

   

-94

    
  
  
  
  
  
  
  

Career Services

                                        

Europe

   

11

   

8

   

32

   

32

   

0

   

1

   

-25

   

-24

North America

   

92

   

105

   

-13

   

-4

   

32

   

39

   

-19

   

-11

Asia Pacific

   

5

   

4

   

27

   

32

   

0

   

-1

   

n.m.

   

n.m.

Rest of World

                                        
    
  
  
  
  
  
  
  

Total

   

108

   

117

   

-8

   

0

   

32

   

39

   

-17

   

-9

    
  
  
  
  
  
  
  

e-HR and Other Services

                                        

Europe

   

7

   

1

   

n.m.

   

n.m.

   

-3

   

-1

   

n.m.

   

n.m.

North America

                                        

Asia Pacific

                                        

Rest of World

                                        
    
  
  
  
  
  
  
  

Total

   

7

   

1

   

n.m.

   

n.m.

   

-3

   

-1

   

n.m.

   

n.m.

    
  
  
  
  
  
  
  

the Adecco Group

                                        

By Division

                                        

Staffing Services

   

5,583

   

5,554

   

1

   

5

   

59

   

156

   

-62

   

-61

Professional Staffing and Services

   

580

   

705

   

-18

   

-13

   

2

   

21

   

-95

   

-94

Career Services

   

108

   

117

   

-8

   

0

   

32

   

39

   

-17

   

-9

e-HR and Other Services

   

7

   

1

   

n.m.

   

n.m.

   

-3

   

-1

   

n.m.

   

n.m.

By Region

                                        

Europe

   

3,841

   

3,816

   

1

   

1

   

110

   

127

   

-15

   

-15

North America

   

1,653

   

1,733

   

-5

   

5

   

-18

   

78

   

-123

   

-125

Asia Pacific

   

626

   

611

   

2

   

11

   

20

   

6

   

207

   

240

Rest of World

   

158

   

217

   

-27

   

-1

   

-22

   

4

   

-689

   

n.m.

    
  
  
  
  
  
  
  

Total

   

6,278

   

6,377

   

-2

   

3

   

90

   

215

   

-58

   

-56

    
  
  
  
  
  
  
  

*) Central Cost Allocated to Division/Geographical Segment based on Gross Margin

 

8

 

Net Service Revenues and Operating Income by Division & Geographical Segment

 

Full Year 2002

   

Net Services Revenues

   

Operating Income*

(CHF Millions)

   

2002

   

2001

   

Variance        %

   

2002

   

2001

   

Variance        %

          

As

Reported

   

Constant FX Rate

         

As Reported

   

Constant FX Rate

Staffing Services

                                        

Europe

   

14,278

   

15,136

   

-6

   

-3

   

462

   

651

   

-29

   

-27

North America

   

4,963

   

5,332

   

-7

   

0

   

-20

   

127

   

-116

   

-117

Asia Pacific

   

2,199

   

2,214

   

-1

   

10

   

76

   

75

   

1

   

14

Rest of World

   

679

   

794

   

-14

   

10

   

-9

   

29

   

-130

   

-145

    
  
  
  
  
  
  
  

Total

   

22,119

   

23,476

   

-6

   

-1

   

509

   

882

   

-42

   

-39

    
  
  
  
  
  
  
  

Professional Staffing and Services

                                        

Europe

   

1,027

   

1,306

   

-21

   

-19

   

1

   

55

   

-99

   

-99

North America

   

1,312

   

1,861

   

-29

   

-25

   

35

   

123

   

-71

   

-69

Asia Pacific

   

171

   

196

   

-13

   

-10

   

1

   

5

   

-88

   

-87

Rest of World

                                        
    
  
  
  
  
  
  
  

Total

   

2,510

   

3,363

   

-25

   

-21

   

37

   

183

   

-80

   

-79

    
  
  
  
  
  
  
  

Career Services

                                        

Europe

   

38

   

27

   

42

   

45

   

3

   

1

   

175

   

186

North America

   

377

   

366

   

3

   

11

   

120

   

118

   

1

   

10

Asia Pacific

   

21

   

13

   

58

   

68

   

2

   

0

   

751

   

531

Rest of World

                                        
    
  
  
  
  
  
  
  

Total

   

436

   

406

   

7

   

15

   

125

   

119

   

5

   

14

    
  
  
  
  
  
  
  

e-HR and Other Services

                                        

Europe

   

21

   

2

   

n.m.

   

n.m.

   

-9

   

-5

   

n.m.

   

n.m.

North America

                                        

Asia Pacific

                                        

Rest of World

                                        
    
  
  
  
  
  
  
  

Total

   

21

   

2

   

n.m.

   

n.m.

   

-9

   

-5

   

n.m.

   

n.m.

    
  
  
  
  
  
  
  

the Adecco Group

                                        

By Division

                                        

Staffing Services

   

22,119

   

23,476

   

-6

   

-1

   

509

   

882

   

-42

   

-39

Professional Staffing and Services

   

2,510

   

3,363

   

-25

   

-21

   

37

   

183

   

-80

   

-79

Career Services

   

436

   

406

   

7

   

15

   

125

   

119

   

5

   

14

e-HR and Other Services

   

21

   

2

   

n.m.

   

n.m.

   

-9

   

-5

   

n.m.

   

n.m.

By Region

                                        

Europe

   

15,364

   

16,471

   

-7

   

-4

   

457

   

702

   

-35

   

-33

North America

   

6,652

   

7,559

   

-12

   

-5

   

135

   

368

   

-63

   

-61

Asia Pacific

   

2,391

   

2,423

   

-1

   

8

   

79

   

80

   

-2

   

10

Rest of World

   

679

   

794

   

-14

   

10

   

-9

   

29

   

-130

   

-145

    
  
  
  
  
  
  
  

Total

   

25,086

   

27,247

   

-8

   

-3

   

662

   

1,179

   

-44

   

-40

    
  
  
  
  
  
  
  

*) Central Cost Allocated to Division/Geographical Segment based on Gross Margin

 

9

 

Consolidated Balance Sheets

 

      

December 29,

2002

       

December 30,

2001

  
      

IN CHF MILLIONS

  

ASSETS

                  

Current Assets

                  

Cash and cash equivalents

     

309

 

     

552

 

Trade accounts receivable, net

     

4,225

 

     

4,636

 

Other current assets

     

484

 

     

499

 

      
    

Total current assets

     

5,018

 

     

5,687

 

Property, equipment and leasehold improvements, net

     

632

 

     

735

 

Goodwill, net

     

2,125

 

     

2,285

 

Other intangibles, net

     

22

 

     

7

 

Other assets

     

663

 

     

609

 

      
    

Total Assets

     

8,460

 

     

9,323

 

      
    

LIABILITIES

                  

Current Liabilities

                  

Short-term debt and current maturities of long-term debt

     

331

 

     

995

 

Accounts payable and accrued expenses

     

4,093

 

     

4,309

 

      
    

Total current liabilities

     

4,424

 

     

5,304

 

Long-term debt

     

1,940

 

     

2,047

 

Other liabilities

     

149

 

     

183

 

      
    

Total liabilities

     

6,513

 

     

7,534

 

      
    

Minority Interests

     

—  

 

     

2

 

      
    

SHAREHOLDERS’ EQUITY

                  

Common shares and participation certificates

     

187

 

     

186

 

Additional paid-in capital

     

3,172

 

     

3,144

 

Accumulated deficit

     

(1,301

)

     

(1,468

)

Accumulated other comprehensive income

     

(102

)

     

(66

)

      
    
      

1,956

 

     

1,796

 

Less: Treasury stock, at cost

     

(9

)

     

(9

)

      
    

Shareholders’ equity

     

1,947

 

     

1,787

 

      
    

Total liabilities and shareholders’ equity

     

8,460

 

     

9,323

 

      
    

 

10

 

Consolidated Statement of Cash Flows

 

      

December 29,

2002

       

December 30,

2001

  
      

CHF millions

  

CASH FLOWS FROM OPERATING ACTIVITIES

                  

Net income / (loss)

     

355

 

     

(427

)

Adjustments to reconcile net income / (loss) to

                  

net cash and cash equivalents from operating activities:

                  

Depreciation

     

213

 

     

194

 

Amortisation

     

8

 

     

1,106

 

Deferred income tax, net

     

(11

)

     

(84

)

Cumulative effect of change in accounting principle

     

—  

 

     

8

 

Investment write-down

     

8

 

     

15

 

Utilisation of restructuring reserve

     

(49

)

     

(73

)

Other charges

     

144

 

     

90

 

Changes in operating assets and liabilities, net of acquisitions:

                  

Trade accounts receivable

     

7

 

     

492

 

Accounts payable and accrued expenses

     

3

 

     

39

 

Other current assets

     

2

 

     

37

 

Non-current assets and liabilities

     

(33

)

     

(7

)

      
    

Cash flows from operating activities

     

647

 

     

1,390

 

      
    

CASH FLOWS FROM INVESTING ACTIVITIES

                  

Capital expenditures

     

(154

)

     

(297

)

Proceeds from sales of assets

     

6

 

     

7

 

Acquisitions, net of cash acquired (jobpilot)

     

(89

)

     

—  

 

Other investing activities

     

(28

)

     

(238

)

      
    

Cash flows used in investing activities

     

(265

)

     

(528

)

      
    

CASH FLOW FROM FINANCING ACTIVITIES

                  

Net increase / (decrease) in short-term debt

     

(1,127

)

     

(227

)

Increase in long-term debt

     

576

 

     

1,052

 

Repayment of long-term debt

     

(34

)

     

(1,478

)

Dividends paid to shareholders

     

(188

)

     

(185

)

Common stock options exercised

     

21

 

     

31

 

Other financing activities

     

167

 

     

27

 

      
    

Cash flows from / (used in) financing activities

     

(585

)

     

(780

)

      
    

Effect of exchange rate changes on cash

     

(40

)

     

(17

)

      
    

Net increase / (decrease) in cash and cash equivalents

     

(243

)

     

65

 

Cash and cash equivalents:

                  

Beginning of period

     

552

 

     

487

 

      
    

End of period

     

309

 

     

552

 

      
    

 

11

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

ADECCO SA

(Registrant)

By:

  

/s/    FELIX WEBER        

   

Felix Weber

Chief Financial Officer

 

By:

  

/s/    HANS R. BRÜTSCH

   

Hans R. Brütsch

Corporate Secretary

 

Dated: 6 February 2003