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Vedior NV (0J9M)


Thursday 27 July, 2006

Vedior NV

Q2 results 2006

Vedior NV
27 July 2006

Amsterdam, The Netherlands

                           Diverse worldwide presence
                            drives growth in Q2 2006
                     For release at 7.00am on 27 July 2006

Highlights for Q2 2006

Amounts in € million           Q2 2006       Q2 2005     Increase        Organic Growth*
Sales                          1,925.0       1,718.3         +12%                +8%
Operating Income                  72.2          59.9         +21%               +11%
Net Income*                       42.4          36.8         +15%                 -
Net Income per share (€)*         0.25          0.21         +19%                 -

* Excluding profit from the sale of TriNet in Q2 2005.

•    Operating income up in France by 18%, US by 26%, Netherlands by 32%,
     and Australia by 38%

•    Increase in gross margin to 18.5% (Q2 2005: 17.8%)

•    Five acquisitions completed, improving diversity and increasing
     exposure to professional/executive recruitment sector

•    Growing demand for permanent placement - fees increase by 31%

CEO's Statement

Zach Miles said, 'We continue to make good progress in improving our mix of
business and profitability while maintaining our investment in promising market
sectors and expanding our office network.

During this quarter, we completed a number of important acquisitions in line
with our strategy to increase the proportion of sales from professional/
executive recruitment sectors.

With a presence in 44 countries, we have also been able to take advantage of
positive business trends in markets such as Australia, India and Latin America
where our network continues to grow.'

Q2 2006 Review

*All growth percentages have been calculated on an organic basis which excludes
the impact of currency effects, acquisitions and disposals. Currency effects
were not material this quarter.

Overall, sales increased in all our major markets.

Demand for permanent placement provided a 31% organic increase in placement
fees. Permanent placement now represents 3.2% of Group sales compared to 2.4% in
Q2 2005.

Gross profit was €355.7 million compared to €305.7 million in Q2 2005. The
temporary gross margin was stable but the continuing development of permanent
placement activities had a beneficial effect on the Group's gross margin which
increased from 17.8% in Q2 2005 to 18.5% this quarter.

Operating expenses increased by 9% including the cost of our ongoing business
development programme.

In France, our new permanent placement offering is developing above our
expectations with a strong performance coming from Vedior's professional/
executive recruitment brands. Changes in business mix combined with the growth
in permanent placement revenue led to an 18% improvement in operating income
while sales increased by 5%.

In the UK, excluding acquisitions, operating income decreased by 21% with sales
4% lower than the same quarter in 2005. Some of our professional/executive
recruitment sectors exhibited good growth, particularly engineering. The
traditional, IT and healthcare sectors experienced lower demand and pricing
pressure. Education sales declined by 10% due to the late timing of Easter but
the underlying trend is positive. UK companies acquired in the first half of
2006 did well. Blomfield given its focus on the financial services sector, is
experiencing strong growth.

In the US, operating income increased by 26% and sales by 15%. The strongest
growth was achieved in the IT, accounting/finance and traditional staffing
sectors. Demand for permanent placement remained strong, increasing by 27%
compared to the same quarter in 2005.

In the Netherlands, operating income increased by 32% while sales grew by 16%.
We experienced exceptionally strong demand for finance and accounting personnel,
and notable performances from our education, healthcare and interim management
brands. Traditional staffing sales also grew with good performances from both
the Vedior and Dactylo brands. Given its mix of business, Dactylo's progress in
improving sales and profits reflects the recovery of the Dutch SME sector.

In the 'Rest of Europe' region, operating income increased by 11% and sales were
up 9%. Belgium had a very good quarter while profits continue to improve in
Switzerland, Spain and Portugal. Once again, we saw very satisfactory sales
performances within the emerging markets of Central/Eastern Europe.

In our 'Rest of World' region, operating income and sales both increased by 20%.
Australia increased operating income by 38% with sales up by 14% with particular
strength in the traditional, IT, healthcare and education sectors. Elsewhere, we
saw strong demand in the Asian market, as well as Latin America and Canada.

Cash flow absorbed by operating activities increased by €12 million to €37
million compared to the same quarter in 2005 mainly due to increases in working
capital reflecting normal seasonal patterns and growth of the business.

Net debt increased by €129 million compared to June 2005 to €656 million
primarily due to the cost of acquisitions and the payment of dividends which,
unlike the prior year, were distributed exclusively in cash. On 20 July, Vedior
successfully completed a private debt placement of US$215 million (€170 million)
in 7/10 year maturity notes with US institutional investors in order to
diversify the Group's sources of finance.

Business Development

During Q2 2006, Vedior made five acquisitions.

The largest acquisition was CNC Global Ltd, Canada's leading provider of IT
recruitment and resource management solutions reinforcing our strong position in
the North American IT sector. We acquired a majority interest in The Blomfield
Group, a leading financial recruitment services provider in the UK and Ireland,
including the Joslin Rowe, Firth Ross Martin and Origin brands. Other
acquisitions included MOT Models, one of the UK's leading model agencies, Rest
Personal, a provider of qualified personnel to the oil and gas industry in
Argentina and Walker-Cox, one of the UK's fastest growing interim management

The total consideration paid for these acquisitions was €108 million.

In July, we disposed of our interest in ISU Personaldienstleistungen, a small
regional provider of light industrial personnel in Germany.

We have continued our development programme, extending our office network in
areas of high demand and launching new products and services in a variety of
markets. Vedior's global network has increased by 112 offices to 2,371 compared
to Q2 2005 of which 39 have been added by acquisition. The most active network
expansion has been in emerging markets.

Management Outlook

Our second quarter results demonstrated continued progress towards achieving the
Group's strategic and financial targets. For the remainder of the year, we
anticipate further progress being made, most notably in improving our operating
margins and business mix.

For further information on these results, please join today's conference call at
9.00am (CET). Details can be found on our website at

Zach Miles, Chief Executive                              Tel: +31 (0)20 573 5609
Frits Vervoort, CFO
Jelle Miedema, Company Secretary

Investor Information at:

Company Profile

Vedior is one of the world's largest recruitment companies and is a full-service
recruitment provider with a diversified portfolio of brands targeting a broad
range of industry sectors.

From its global network of offices spanning Europe, North America, Australasia,
Asia, South America and Africa, Vedior offers temporary and permanent
recruitment as well as a number of complementary employment-related services
such as outplacement, HR outsourcing, payrolling and training.

Vedior has a leading market position in the provision of professional/executive
recruitment in sectors such as information technology, healthcare, accounting,
engineering and education. We also have a significant global network providing
administrative/secretarial and light industrial recruitment.

Financial Agenda

26 October 2006         Publication of third quarter results
8 February 2007         Publication Q4 and annual 2006 results
27 April 2007           Publication of first quarter results and AGM
26 July 2007            Publication of second quarter results
25 October 2007         Publication of third quarter results

Safe Harbour

This media release includes forward-looking statements that reflect our
intentions, beliefs or current expectations and projections about our future
results of operations, financial condition, liquidity, performance, prospects,
growth, strategies, opportunities and the industry in which we operate.
Forward-looking statements include all matters that are not historical fact. We
have tried to identify these forward-looking statements by using words including
'may', 'will', 'should', 'expect', 'intend', 'estimate', 'project', 'believe',
'plan', 'seek', 'continue', 'appears' and similar expressions or their negative.

These forward-looking statements are subject to a number of risks,
uncertainties, assumptions and other factors that could cause our actual results
of operations, financial condition, liquidity, performance, prospects or
opportunities, as well as those of the markets we serve or intend to serve, to
differ materially from those expressed in, or suggested by these forward-looking
statements. Important factors that could cause those differences include, but
are not limited to our financial position and our ability to implement our
business strategy and plans and objectives of management for future operations,
our ability to develop, balance and expand our business, our ability to
implement our long- term growth strategy (including through organic growth and
acquisitions), our ability to make improvements to our capital structure,
industry and market trends and volumes, including the speed and strength at
which the staffing services industry and the sectors in which we operate,
rebound from economic slowdowns and recessions, the effects of regulation
(including employment and tax regulations), our ability to improve the
efficiency of our operations and to reduce expenses in our operating companies
and their network of offices, litigation and our ability to take advantage of
new technologies.

In light of these risks, uncertainties, assumptions and other factors, the
forward-looking events described in this media release might not occur.
Additional risks that we may deem immaterial or that are not presently known to
us could also cause the forward-looking events discussed in this media release
not to occur. Except as otherwise required by applicable law, we undertake no
obligations to update publicly or revise publicly any forward-looking
statements, whether as a result of new information, future events, changed
circumstances or any other reason after the date of this media release.

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