Second-quarter and half-year results 2009

Second quarter shows stabilisation in revenue decline, costs lowered by 22% and an improved debt position Almere, 24 July 2009, 07:00 AM CET Q2 2009 highlights * In the second quarter, the decline in revenue stabilised; the group revenue fell by 31% in the second quarter compared to last year (corrected for the difference in the number of working days between Q2 2008 and Q2 2009, this decline came to 28%) * Operating cash flow rose to ¤ 25 million (Q2 2008: ¤ 22 million) * The net debt position fell by ¤ 18 million to ¤ 485 million in the second quarter; the net borrowings from the banks, excluding subordinated loans, amounted to ¤ 333 million on 30 June (31 December 2008: ¤ 352 million); the debt position was partly lowered as a result of factoring of a part of the trade receivables to a maximum of ¤ 50 million * The bank covenants were satisfied, the senior leverage ratio amounted to 2.1 at the end of the second quarter and the interest coverage ratio came to 5.7; the bank covenants were relaxed with effect from the third quarter. The senior leverage ratio is raised from 2.5 to 3.0 and the interest coverage ratio is lowered from 4.0 to 3.0 * The underlying operating expenses declined by 22% compared to last year * The underlying EBITA came to ¤ 12 million (2008: ¤ 63 million) Key figures Results Q2 Q2 6 months 6 months (in ¤ 2009* 2008 growth to June 2009* to June growth millions) 2008 Revenue 722 -31% 1,477 2,004 -26% 1,040 Gross 163 -36% 341 495 -31% result 257 Operating 145 -22% 304 366 -17% expenses * 187 EBITDA 18 -74% 129 -71% 70 37 EBITA 12 -81% 115 -80% 63 23 Net result -97% -100% 1 32 0 61 EPS (in ¤ ¤ ¤ ¤ 0.95 euro) 0.01 0.49 0.00 * underlying results, excluding reorganisation costs and unrealised value changes in interest-rate derivatives "We saw some stabilisation in the decline in revenue in the last few months," said Rob Zandbergen, CFO and interim CEO of USG People. "A few markets are once again showing slight improvement and others seem to be stabilising, although recovery is not yet clearly evident here. If the markets manage to pick up again, our commercial efforts will have more effect since we have drastically cut costs. In the second quarter we lowered our operating expenses by 22% compared to last year through restructuring. Our organisation has become more streamlined as a result and we have become more decisive, which means we will be able to fully benefit from a recovering market. Our expertise and years of experience in Human Resource services and in the small and medium-sized enterprise sector remain our foundation for high-quality service provision towards our customers and an appealing work environment for our candidates. We took preventative measures in the second quarter to provide extra security for our financing. The debt position has been lowered by factoring of a part of the trade receivables to a maximum of ¤ 50 million and stringent working capital management. Additionally, the conditions for the bank covenants were relaxed within the existing credit facilities. In the coming months we will continue to focus on further improving the balance sheet. I would like to thank all the employees of USG People for their dedication to the organisation in today's challenging circumstances." FOR THE FULL PRESS RELEASE PLEASE OPEN THE ENCLOSED PDF FILE This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.