Highlights for Q1 2007
Amounts in € million Q1 2007 Q1 2006 Increase Organic Growth *
Sales 1,939.7 1,724.2 +12% +9%
Gross Profit 373.7 316.8 +18% +13%
Operating Income 73.4 51.7 +42% +34%
Net Income 44.7 31.1 +44%
Net Income per share (in Euro) 0.26 0.18 +44%

* All growth percentages quoted in this media release have been calculated on an organic basis which excludes the impact of currency effects, acquisitions and disposals. Currency effects decreased both sales and operating income by 1%.

Operating income increased by 34%
- Traditional staffing up 48%
- Engineering staffing up 44%
- Education staffing up 13%
Conversion ratio strong at 19.6% (Q1 2006: 16.3%)
Increase in gross margin to 19.3% (Q1 2006: 18.4%)
29% increase in permanent placement fees
Global network extended to 50 markets following expansion into Thailand

CEO’s Statement
Zach Miles said, “These quarterly results are the best ever achieved in Q1, reflecting the progress we have made in implementing the Group’s strategy and taking us closer towards our margin targets.”
We experienced strong growth in profits and sales within many of our traditional staffing markets. In addition, we have seen very good performances this quarter in a number of our professional/ executive sectors.

Change to Reporting Analysis
In order to better reflect the successful development of Group activities, we have expanded the scope of our geographic reporting to include a number of additional markets, namely Belgium, Spain, Australia & New Zealand, and Canada. The results for the equivalent quarter in the prior year have been provided for comparison purposes.
With a focus on improving profitability rather than market share, we have also decided to disclose the percentage increase in our gross profit within each major market.
These refinements to our reporting analysis will enable investors to better monitor our progress towards achieving our strategic objectives.

Q1 2007 Review
Sales increased overall this quarter by 9%, with strong increases across key markets worldwide. Gross profit was up 13% and operating income increased by 34%.
Demand for permanent placement grew during the quarter resulting in a 29% organic increase in placement fees. Permanent placement fees more than doubled in France. Permanent placement now represents 3.8% of Group sales compared to 2.9% in Q1 2006.
Gross profit was €373.7 million compared to €316.8 million in Q1 2006. Our focus on higher margin business and increased permanent placement fees helped to improve gross margin to 19.3% from 18.4% in Q1 2006. The gross margin earned from the supply of temporary staffing also increased.
We continue to deliver greater operational efficiencies. As a result, our conversion ratio (operating income divided by gross profit) increased to 19.6% from 16.3%. As a percentage of sales, costs were 15.5% (Q1 2006: 15.4%).
Operating income was €73.4 million, an increase of 34%. This strong growth in profit was led by our brands in the traditional, engineering, education and legal sectors. The Group operating margin (operating income as a percentage of sales) was 3.8% - an improvement of 80 basis points over Q1 200

Business Development
In Q1 2007, we completed the acquisition of Major Players, a leading provider of marketing/media and creative recruitment services in the UK.
During the quarter, we also continued our active organic growth programme including expansion of existing operations in France, Australia, Latin America, mainland China and Thailand. The addition of Thailand to our network means that Vedior is now active in 50 countries worldwide. Compared to the same quarter last year, the Group’s network has been extended by 187 offices to a total of 2,486 offices worldwide.

Management Outlook
Trends in April have continued to reflect the positive environment we experienced in Q1 2007 and we expect to see another strong performance in Q2, especially in continental Europe.
The social security authorities in France have recently issued additional guidance on the calculation of certain social security charges relating to temporary workers, with retroactive effect from 1 January 2006. Detailed calculations are in the course of preparation but we estimate at this stage that the impact will be to increase operating margin in France by between 1% to 1.5% for 2006 and the first quarter of 2007.
We will continue to focus on improving the mix of our business and developing our leading market position in the professional/executive recruitment sectors.