Adecco Group Ag Unsp/Adr

Good morning, ladies and gentlemen, and thank you for standing by. My name is Kelvin, and I will be your conference operator today. At this time, I would like to welcome everyone to the ADECO Group Q3 Results 2025. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. Thank you. I would now like to turn the call over to Benita Barreto, Head of Investor Relations. Please go ahead.

Good morning. Thank you for joining the EDECO Group's Q3 results conference call. I'm Benita Barreto, the Group's Head of Investor Relations, and with me are the EDECO Group's CEO, Denny Mashuel, and CFO, Coram Williams. Before we begin, please take note of the disclaimer on slide two. Today's presentation will reference both GAAP and non-GAAP financial results and operating metrics. This conference call will include forward-looking statements, which are based on current assumptions and, as always, present opportunities as well as risks and uncertainties. With that, I will now hand over to Denny.

Thank you, Anita, and a warm welcome to all of you who've joined the call today. So today I want to share an important leadership update, which also underscores the strength of our succession planning and our commitment to continuity. At the end of this year, Coram Williams will step down as Chief Financial Officer after five years of outstanding service. Coram has played an absolutely pivotal role in guiding the ADECO group through a period of significant transformation and strengthening our financial foundations. His disciplined approach and strategic insight have been absolutely instrumental in achieving the strong Q3 results we announced today. We warmly thank Coram for his tremendous contribution and wish him every success as he takes on a CFO role in the automotive sector in Germany, a move that reflects his passion for this sector and also brings him closer to his family. And I'm pleased to announce that Valentina Ficaio will succeed Corum as CFO effective January 1st, 2026. Valentina is a proven leader with deep knowledge of our business and strong financial and strategic acumen. She's been part of our global finance leadership team, most recently leading financial planning, controllership, and strategy, and has acted as Coram's deputy for the past three and a half years. Her appointment follows a rigorous selection process. and represents an internal promotion to the CFO role, which is a testament to the strength of our talent pipeline. This leadership transition is well planned and we remain focused on delivering sustainable growth, improving margins and creating long-term shareholder value. Let's now turn to our results and starting with slide four and an overview for the quarter. We gained significant market share this quarter with the group and ADECO leading key competitors by 375 and 300 basis points respectively. The group delivered 5.8 billion euros in revenues, 3.4% higher year-on-year on an organic trading days adjusted basis. Revenue trends improved sequentially across all GBUs. Additionally, we observed a strong performance from ADECO US with revenues increasing by 20% year-on-year. Gross profit reached 1.1 billion euros with a gross margin of 19.2%. While this represents a modest year-on-year decrease of 10 basis points on an organic basis, it is a 30 basis points sequential improvement fully matching our Q3 guidance. Gross margins benefited from reduced pressure in Akkodes, Germany, where the turnaround plan is progressing well. EBIT A excluding one offs was 195 million euros with a 3.4% margin. Disciplined execution drove good operating leverage with productivity up 8% year on year and higher in all GBUs. Adjusted EPS was 67 cents. Cash conversion was very strong at 110% and the group generated a solid operating cash flow of 200 million euros up 79 million euros from the prior year period. In summary, the group delivered a strong performance this quarter and remains on track to achieve the 3% EBITDA margin floor for the full year. Moving now to slide five. The group delivered a further increase in market share this Q3. In Q2, the group gained 205 basis points in market share and a deco gain in 130 basis points. In Q3, The group gained 375 basis points of share and ADECO gained 300 basis points. We have seen a consistent improvement in flex volumes year to date across the ADECO GBU. In Q3, we were encouraged to see volumes move clearly into modest growth territory with a meaningful uptake in demand from the largest ADECO countries. Now, as we move to slide six, you'll see case studies that demonstrate our strong wind momentum in the market. First, in the life sciences sector, ADECO and ACODIs were selected as the preferred suppliers for global solutions due to the group's global footprint and breadth of services. The client was impressed by our technology expertise, reporting quality, market insights, all of which are underpinned by strong data analytics. Second, Accodis was selected as a Tier 1 supplier to a leading German aerospace company. Our comprehensive suite of advanced system engineering solutions covering landing gear and system design and installation supports the client's strategic need for innovation to improve operational efficiency and sustainability. ACODIS's global presence, which maximizes responsiveness and cross-fertilization of ideas, was key to be selected. Third, LHH's ESRA won a multi-year contract with a leading US software provider for AI and human coaching services beating a major competitor. Ezra will coach over 27,000 employees, creating a measurable business impact. With that, I will now hand over to Coram for further details on the Q3 results.