Further Progress

The year in review

2018 highlights

2018 has been a year of strategic transformation and investment while we continued to deliver solid financial and non-financial performance for our stakeholders.

Organic revenue growth 3% Growth slowed, as the economic environment became more challenging
EBITA1 margin excluding one-offs 4.5% Impacted by investments, regulatory changes in France and German business transformation
Gross margin 18.6% Positive impact of General Assembly, Vettery, and strong Permanent placement growth
Cash conversion2 84% Strong underlying cash flow even after increased investments in strategic initiatives
Dividend per share3 CHF 2.50 Stable year on year and representing a 48% payout ratio
Net debt to EBITDA4 excluding one-offs 1.0x Ending the year in a strong financial position
Capital returned to shareholders during 2018 EUR 460m Returning excess capital to shareholders, in line with our capital allocation policy
Days Sales Outstanding 53 days An increase of one day year on year

1. EBITA is a non-US GAAP measure and refers to operating income before amortisation and impairment of goodwill and intangible assets.
2. Cash conversion is a non-US GAAP measure and is calculated as free cash flow before interest and tax paid divided by EBITA excluding one-offs. Free cash flow is a non-US GAAP measure and is calculated as cash flows from operating activities less capital expenditures.
3. For 2018, as proposed by the Board of Directors.

4. Net debt to EBITDA is a non-US GAAP measure and is calculated as net debt at period end divided by last 4 quarters EBITA excluding one-offs plus depreciation. Net debt is a non-US GAAP measure and comprises short-term and long-term debt less cash and cash equivalents and short-term investments.
5. Equivalent to a reduction in the SG&A as a percentage of revenues of 100 bps.

Number of permanent placements c.130,000 People placed in permanent employment
Number of associates on assignment/day c.700,000 Provided with flexible employment every day
Apprentices and interns trained 11,000+ Work-based training provided within our own operations and in co-operation with our clients
Income taxes paid EUR 290m Complying fully with both letter and spirit of the applicable tax laws
Great Place to Work® Ranking 5th Out of more than 7,000 participating companies globally
CEO for One Month applications 204,000+ Candidates attracted by our flagship programme that helps increase the employability and work-readiness of young people
IOC Career+ and IPC Athlete Career Programme 4,500+ Athletes engaged in 2018
Win4Youth 8.6m Converted kilometers, resulting in a donation of CHF 500,000 to Plan International, our global NGO partner

Our Global Footprint

Contribution to group revenues