PION Group — Annual Report 2016

Apr 21, 2017

ANNUAL REPORT 2016

Notice of the Annual General Meeting

The shareholders of Poolia AB (publ) are hereby given notice of the Annual General Meeting to be held on Wednesday 3 May 2017 at 4 p.m. at the Company's offices in Stockholm at Kungsgatan 57A, 4th floor.

Registration

Shareholders wishing to attend the AGM must be entered in the share register held by Euroclear Sweden AB as at Thursday 26 April 2017, and must have notified Poolia of their intention to attend by Thursday 26 April 2017.

Shareholders may notify the Company of their intention to attend by contacting: Poolia AB Attn: Tarja Roghult Box 207 SE-101 24 Stockholm

Notification may also be made by telephone: 08-555 650 33 e-mail: tarja.roghult@poolia.com

The notification must include the name, telephone number, personal identity number or company registration number and the number of advisors. Shareholders with nominee-registered shares who wish to attend the Annual General Meeting must have their shareholding registered in their own name so that their shares are registered well before 26 April 2017.

Dividend

The Board proposes that the Annual General Meeting adopt a dividend of SEK 0.6 per share, to a total value of SEK 10,273,198.

CONTENTS

Shareholder information	2
Poolia in brief	3
From the CEO	5
Poolia's values and operations	7
Sustainable business	10
Markets	13
The Poolia share	15
Five-year summary	17
Directors' Report	18
Corporate Governance Report	24
Group Management	30
Board of Directors	31
Swedish Management Team	32
Consolidated Financial Statements	33
Financial Statements, Parent	37
Notes	40
Declaration by the Board	53
Audit Report	54
Definitions	60
Addresses	61

Financial calendar

Interim report Jan–Mar 3 May 2017 Interim report Jan–Jun 21 July 2017 Interim report Jan–Sep 27 October 2017 Year-end report 2017 16 February 2018

ISIN code: SE0000567539 NASDAQ OMX ticker: POOL B

Photos: Christian Gustavsson, Jeanette Hägglund, Martin Wärn

Poolia's history

1989

Björn Örås founds Ekonompoolen (Pool of Accountants) in Stockholm. A new act on the deregulation of temporary staffing comes into force in Sweden in 1992.

2000

Poolia become Sweden's second fastest-growing company and third largest staffing company. Operations start in Denmark and Finland.

2007

Poolia Healthcare and Poolia Doctor are separated from Poolia and placed in a separate company, Dedicare. Poolia continues as the owner.

1993

Teknikerpoolen (Pool of Engineers) is founded. Deregulation of the permanent placement market.

2001

Acquisition of Competence Sköterskejouren, leading to the start of Poolia Healthcare. Operations start in Germany with the acquisition of A&Z.

2010

2015

results.

Poolia reports growth and prepares to gain market shares. Acquisition of Utvecklingshuset.

The focus on profitability improvements, strategic and organisational development and sales begins to produce

1997

The Company adopts a new strategy to become a fullservice supplier in the staffing industry and is renamed Poolia. A new business area, Poolia Kontor, is established with the acquisition of Kontorsvikarien.

2002

Poolia adopts a new strategy and reverts to a business that specialises purely in qualified professionals. Other activities, primarily Warehouse & Industry, are moved to the new company Uniflex, which is completely separate, but owned by Poolia.

2011

Dedicare is distributed to shareholders and listed on the Stock Exchange. Poolia starts up new business areas, Poolia Executive Search and Talent Eye, and establishes a presence in Umeå and Sundsvall.

2016

The operating margin is close to the Company's long-term target.

1999

Poolia is launched on the Stock Exchange and becomes the first company in Sweden with a Legal business area.

2004

Acquisition of UK company Parker Bridge, with operations in London and Edinburgh. Uniflex is distributed to shareholders and listed on the Stock Exchange.

2013

Poolia's strategy is focused on the core business of temporary staffing and permanent placement of professionals. All other activities are discontinued. Focus on sales and employee development.

2014

The year is marked by restructuring and adaptation of the business with a focus on sales and marketing.

share of revenue by segment revenue, sek millions

operating profit/loss, sek millions

2012–2014 relate only to continuing operations.

percentage of employees by country, average

-1.5 -1.0 -0.5 0 0.5 1.0 1.5 2012 2013 2014 2015 2016 SEK

2012–2014 relate only to continuing operations.

Sweden 64% Finland 7% gender profile

earnings per share, sek

FROM THE CEO

Poolia's positive development continued in 2016. Revenue increased by 3.6% to SEK 785 million, while operating profit rose by 44% to SEK 23.0 million. The growth does not reach our targets, but profitability is developing in line with our expectations, due to the effects of the restructuring programme that has been in progress for about 3 years. It is pleasing that Poolia Sweden is showing a positive operating profit for the first time since 2011. Poolia's financial situation is stable, as we operate in an industry with continued strong demand for our services.

The market

Demand for staffing services has been generally good during 2016. Some regional and occupational differences have arisen. Statistics show that large cities have the highest growth and demand is slowly but surely being increasingly concentrated there. Most of the growth in the sector is still in occupational categories that benefit from the strong industrial economy, such as factories, warehouses and logistics. Poolia's occupational categories, which are primarily staff functions, had another year of moderate growth in 2016.

Competition is still intense and there is clear price pressure in the market, particularly in the temporary staffing business. During the year, there was a change from competing to get more clients and assignments, now that there were plenty of candidates, to competing to find candidates and getting them to choose our clients in particular. In other words, there is a shortage of workers in the white collar segment. We therefore need to work longer to meet our clients' needs, while they are increasingly employing our temps.

The 6.5% unemployment in Sweden appears to be structural in the sense that it is unlikely to fall appreciably, even if the current economic climate persists. In the occupational categories and locations in which Poolia operates, unemployment is very low.

Poolia 2016

The restructuring programme in Sweden continued during the year and led to improved profitability. The programme is expected to be fully implemented during the first half of 2017. Poolia will then have the structure and staffing that we consider optimal for us to achieve our short and long-term goals.

The markets in Germany and Sweden were changed in 2016 as a result of the high economic situation. There was a shortage of candidates, both in the permanent placement and temporary staffing business.

In order to meet our permanent placement clients' growing needs for more employees, we needed to devote significantly more time and resources to finding the right candidates in the search process. Once the candidates are presented, it is important for the client to be quick and decisive so that the candidates do not choose another employer.

Another phenomenon, which is a function of the current strong economy, is that our temporary staffing clients are increasingly employing our temps. The effects of this are significant for us. Firstly, it means that we lose sales and profitability now that the client no longer engages our temps. Secondly, it means that we have to go out and win new clients, which takes time. Thirdly, it means that we will need to supply these new clients with temps, who are currently in short supply.

The staffing industry is quite atypical in that macro conditions are not automatically favourable to growth during an economic upturn. This impedes the achievement of our growth targets, but helps to improve the negotiating position with our clients. We now make profitability a higher priority in the assignments we decide to work on.

As mentioned above, our German operations are affected by the current economic situation, with low unemployment in the cities in which we are established and in the occupational categories we serve. We started a new business in Stuttgart during summer 2016. This is not yet contributing to a positive operating profit, but is developing according to plan. Stuttgart is one of Germany's largest industrial cities, with a large market for both temporary staffing and permanent placement services within our occupational areas.

Our Finnish operations were treading water in a relatively poor economy in 2016. Work on restructuring and costsaving has been implemented to keep profitability up. Towards the end of the year, there were clear signs that the Helsinki capital region was beginning to recover from the prolonged recession. In response, we have initiated a marketing and sales drives. We expect to see the results of these in th latter part of 2017.

Internally, Poolia is functioning increasingly better. Our nine-month "No Roof Leadership" development programme was completed in June. The participants were very satisfied with the programme and the autumn Employee Satisfaction Index showed that leadership has improved significantly in most parts of the organisation and that managers feel stronger in their roles.

The survey also showed that 95% of employees are conversant with our goals and strategies and that confidence in management is strong.

Those of us who work at Poolia feel proud and grateful to be able to work on something that is both difficult and important. Many analyses show that managers find recruiting employees the most difficult aspect of their job. For many ambitious people, one of the most important things in life is having a stimulating job that allows development both in their occupational role and as a person. This difficult matching is an area in which Poolia excels. We help the economies of Finland, Germany and Sweden to develop better and faster through our services.

There is strong confidence in the future within Poolia.

Morten Werner Managing Director and CEO Poolia AB

POOLIA'S VALUES AND OPERATIONS

Poolia's business concept is to provide companies and organisations with the skills that, either temporarily or permanently, meet their needs for qualified professionals.

Poolia is one of Sweden's leading companies in the field of temporary staffing and permanent placement of qualified professionals. The Company was founded by Björn Örås in 1989, and in 2016 had 1,469 employees in Sweden, Finland and Germany and a turnover of SEK 785 million.

Our vision is to be our clients' preferred choice for temporary staffing and permanent placement of professionals, regardless of the economic climate. Poolia is an authorised recruitment company and a dedicated employer with a high employee satisfaction rate. We offer our private and public sector clients proven and quality-assured processes and professional partnership in the area of staffing.

Poolia is represented at 18 locations in three countries. The Company's head office is in Stockholm. Out of Poolia's 1,469 employees, 944 are based in Sweden, 424 in Germany and 101 in Finland. About 87% of our employees work as temps at our clients' offices. The rest are internal staff and work as key account managers, candidate managers, consultants, permanent placement consultants or in other staff functions

Poolia Sverige AB was certified under SS-EN ISO 9001:2008 Quality Management System and SS-EN ISO 14001:2004 Environmental Management System in 2012. In 2016, Poolia was awarded certification under the standards SS-EN ISO 9001:2015 and SS-EN ISO 14001:2015.

Poolia offers a high level of expertise in the core areas of permanent placement and temporary staffing. The permanent placement and temporary staffing services are divided into several specialist areas: Finance & Accounting, IT, Office Support, Human Resources, Sales & Marketing, Life Science & Engineering and Legal. Another specialist area is executive recruitment through Poolia Executive Search.

Poolia's values

Poolia's fundamental values form the basis of the Company's business operations and they are ingrained in everything we do. We want our values to get our employees to grow and feel satisfaction in their work.

• I am important
• I try the untried

• I always do my best

• I put business first

• I take responsibility
• I am here with heart and soul
• We are the good company

We want to express our credibility through our values – not just in our cooperation with our clients, but also in our contacts with candidates, shareholders and other stakeholders. To achieve this, we must be able to attract the best employees, which is why it is our aim to be the best employer in the business. Poolia's clearly defined, relevant values are a strength and are essential to the achievement of our goals.

People – the foundation of Poolia's business

At Poolia we are well aware that our temps are our single most important asset and that satisfied employees perform better. Even though most of our employees spend the majority of their time working in other companies, it is important to us that they understand they are a part of Poolia.

Learning organisation with strategic expertise

Poolia works constantly to be a learning organisation providing strategic expertise. This means we focus on sustainability and work in a long-term framework by having the right expertise in the right place at the right time in order to achieve our business objectives. Our managers are responsible for creating a good learning and skills development environment. However, each employee is expected to take personal responsibility for developing their skills and also for sharing knowledge and experience.

Provision of strategic expertise means using the Company's business concept as a basis for formulating key skills, from core competencies at a general level to competence contracts at an individual level. We use a method to analyse skills gaps and fill them with the right content. On this basis we procure training courses, which can be individual, group-wide or niched, according to the position. Employee development is conducted with a carefullyplanned, systematic approach.

Leadership

It is essential that we practise good leadership so that Poolia's employees are able to develop continuously and contribute to the achievement of our common goals. Leaders set an example to others by demonstrating responsibility, empathy and courage. Poolia's values are the foundation for everything we do, and together we build a strong company.

All Poolia's employees are entitled to good leadership Leadership must be based on mutual trust and acceptance. Poolia's managers must have courage, equal values and promote diversity. They must also demonstrate decisive, effective leadership that inspires confidence, and be able to manage with the Company's goals and visions as their starting-point.

Poolia's leadership development is based on our leadership philosophy, which requires us to be a company that attracts highly-qualified, ambitious and business-oriented people with humanistic values. This means that Poolia's managers have

• a focus on results
• courage in their leadership
• a coaching approach
• equal values.

Poolia's portfolio of services

Poolia supports clients with staffing needs by providing temporary staffing and permanent placement, regardless of the economic climate.

Fundamental to our permanent placement and temporary staffing activities is that our consultants and permanent placement consultants are experts within their respective fields. Lawyers are recruited by lawyers, economists by economists and so on. Other examples include our specialists at Poolia Executive Search who recruit professionals at managerial level. This means we can guarantee that we always provide clients with the right expertise.

Temporary staffing

Temporary staffing is one of Poolia's core business activities, serving clients in need of qualified professionals. Poolia has 28 years' experience of placing qualified professionals in temporary positions at all levels – from office assistants to specialists and managers. We help companies of all sizes to quickly and effectively cover temporary peaks in production, scheduled leave, sick leave and other situations where extra resources are needed. We quickly and efficiently find the right candidate for each assignment, whether the client is seeking someone with a particular skill or needs to staff an entire department.

Permanent placement

Permanent placement is our other core business activity. Our methods have been developed and improved during the 28 years we have worked in this area and we have created quality-assured processes that are suited to companies of all sizes in the private and public sectors. The fact that we get specialists in an occupational segment to recruit within that segment means we can always quickly and accurately match the right candidate to each job.

Poolia's specialist areas

Finance & Accounting.

Poolia's broad network of economists forms the basis of Poolia's business. We are one of the companies with the longest experience in temporary staffing and permanent placement of economists in Sweden. We have a broad range of skills in finance, accounting and controlling – from financial assistants and controllers to chief accountants and CFOs. We also have a high level of banking finance expertise in the areas of administration, debt management, credit and insurance.

IT

Poolia was the first in Sweden to offer qualified resource temps within the area of IT. We are experts in the temporary and permanent provision of specialist skills at all levels – from project assignments to IT managers.

Office Support

Poolia has a wide range of administrative support services. We can help companies with temporary staffing and permanent placement needs by providing office managers, office assistants, managerial PAs, order administrators and other qualified and experienced staff.

Human Resources

University-educated human resources specialists with previous HR experience are available for temporary or permanent placements through Poolia. We can provide businesses with qualified HR managers, specialists and administrators. We can also work with our clients alongside their own HR departments.

Sales & Marketing

In sales and marketing we offer professional staffing solutions in the areas of information and marketing – from project managers, salespersons, buyers, public information officers and web designers to marketing and information managers.

Life Science & Engineering

We work with leading Swedish companies in the pharmaceutical, processing, food, energy and life science industries. Poolia offers its clients experienced temps, such as biochemical and chemical technology engineers, with a

background in science. In Engineering, we offer highlyqualified engineers and technicians in construction/property, mechanics and electronics, as well as architectural expertise in both development and infrastructure.

Legal

Poolia Legal was the first company in Sweden to specialise in the temporary staffing and permanent placement of lawyers. Our ambition is to create a lasting relationship with our clients by providing them with the right strategic skills and assisting them in employee development over time.

Poolia Executive Search

Recruitment of senior executives and board members requires special processes and specific knowledge. Poolia Group has concentrated expertise in executive recruitment within the company Poolia Executive Search AB, with more than 70 years' collective experience in headhunting.

To guarantee the quality of each individual assignment, we use special recruitment methods tailored to senior executive recruitment. These include a specially developed search method that systematically identifies the right candidates for the position, i.e. headhunting or executive search. We involve ourselves in every stage of the recruitment process and in each specific assignment we work with a team of two senior consultants and one researcher. We also work with a registered selection psychologist to understand more about the capabilities and skills of the candidate.

Poolia Executive Search also works with Interim Management and Management Audit.

Quality-certified processes

Poolia has 28 years' experience of permanent placement and temporary staffing and has developed quality-assured processes that enable us to consistently deliver superior quality to our clients. We continuously assess our resource temps and our undertakings, both during and after the assignment, to ensure that we meet our clients' requirements and preferences at all times. In 2016, we exceeded our customer satisfaction index target.

Our quality objectives

• A customer satisfaction index of 4.2 out of 5
• Temps and internal personnel people are the heart of Poolia's business. We remain committed to being an attractive employer and having satisfied employees who do a better job.
• Processes we shall ensure compliance with our ISO quality management systems.

SUSTAINABLE BUSINESS

The fundamental values of Poolia Sverige AB are based on the ethos of equal value for all people and fair conditions for different individuals and groups. No one shall be discriminated against on grounds of ethnicity, religion, beliefs, physical or mental disability, age, gender, sexual orientation or for any other reason. Our discrimination policy is driven by our fundamental values.

For Poolia, social responsibility is about minimising the negative impact the Company may have on people and the environment. This is something we do by respecting all people and their rights, and complying with labour law principles, and prescribed environmental standards and guidelines. It is also our goal to cooperate exclusively with suppliers who actively pursue their own sustainability work.

Poolia is a registered recruitment company. We comply with current legislation and good business practice in the industry in all respects.

Poolia is certified under ISO 14001 and ISO 9001, is a member of Swedish Staffing Agencies and has collective agreements with Unionen and the Swedish University Graduates Union. Poolia is also a member of Almega, the employer and trade organisation for the Swedish service sector.

Poolia complies with current laws, regulations and mandatory requirements and translates them into appropriate measures in all areas of the business.

Continuous improvements since 1989

Since it was founded in 1989, Poolia has had quality as a guiding principle. Today, quality issues are an integral and natural part of the daily work of employees at all levels. We have high quality targets in the areas of client, temp and employee satisfaction.

Client satisfaction

An evaluation is conducted after each completed assignment. Action plans are drawn up based on the results. The measured client satisfaction for 2016 was 4.3 (target 4.2).

Temp satisfaction

About 1,300 individuals, the vast majority of Poolia's employees, work as resource temps at our clients' offices. We devote considerable resources to ensuring they are satisfied, including personal development plans, frequent temp contacts with consultants, creating affiliation with

employers and clients, training and health promotion. In addition, the consultant has clear and specific work environment responsibilities.

Through the Company's employee satisfaction survey VOICE, we conduct annual measurements of temp satisfaction – one of our most important tools for business development. The survey takes the temperature of our temps' opinions about Poolia as an employer and company. The measured temp satisfaction for 2016 was 686 (target 700).

Employee satisfaction

We measure the satisfaction of Poolia's employees, excluding temps, annually (internal staff). This is also a crucial tool for the Company's business development. The survey provides a measure of the internal staff 's opinions about Poolia as an employer. In the event of deviations, action plans are drawn up and followed up by senior management. Poolia's measured internal employee satisfaction in 2016 was 76% (target 80%).

Environmental work

Poolia has held environmental certification under ISO 14001 since 2012. This was a natural step based on Poolia's 'good company' value. The environmental management system describes the environmental activities we are currently engaged in and what we want to achieve in the future from an environmental perspective.

Laws and regulations

Poolia complies with statutory requirements and regulations. In the event of any change to current environmental laws, information is sent to all managers in the organisation and an updated list of laws is also published on Poolia's intranet.

Environmental policy

The Company's environmental policy describes and establishes a common view regarding environmental impacts and the management of environmental issues within Poolia. The policy highlights the importance of having an

environmental approach in everything we do and following mandatory requirements for the business when also interacting with suppliers.

Environmental goals

Every year, we conduct an environmental review, which includes a SWOT analysis of the environmental aspects that Poolia can influence. The year's environmental goals are then defined on the basis of this. One environmental goal that has been there from day one is that all of our suppliers must have an environmental policy. In 2016, it was decided to reduce paper consumption in the Company by 10%. Poolia's travel policy requires employees to use methods of travel with the least possible environmental impact.

Respect for the candidate

In all selection processes, we follow Poolia's policies, and the laws and regulations of the country in question. All applicants must receive individual and professional treatment, regardless of how far they go in the process. This includes ensuring that all applicants receive immediate confirmation of their application. It also means that all applicants must be notified within a reasonable time that they have not been selected, or must be informed how we will proceed.

Poolia's strategy for a healthy work climate and healthy employees

Having a long-term strategy for our health work is an important success factor for developing our business activities. In addition to increased job satisfaction and reduced sick leave costs, healthy employees who are happy at work are a quality assurance factor for our clients.

We are convinced that the main reason for Poolia's good health record is that our employees feel happy in their work at Poolia. To maintain this positive trend, we base our work on the results of our employee satisfaction surveys. We are also convinced that it is crucial for employees to feel motivated in order to improve their health. We work pro-actively to identify and minimise the number of ill-health factors in order to create a healthy working climate for everyone. All employees are also entitled to fitness subsidies.

In the area of work environment, Poolia has delegated work environment responsibility and check lists for monitoring/information on the work environment for both clients and temps. Poolia also has a work environment policy, which is revised continuously.

Poolia has a special web-based system for registration of rehabilitation, which is carried out in accordance with a specified rehabilitation process.

Social consideration

Women's and men's conditions, rights, and development and career opportunities must be equal or equivalent throughout the Company. Every employee must be able to perceive their situation as equal. No one shall be discriminated against on grounds of gender, age, ethnicity, religion, beliefs, physical or mental disability, sexual orientation or for any other reason. Poolia has drawn up an ethical code which includes policies on equality, sexual harassment and diversity.

Professionalism – ethics and morality in business Poolia is an authorised company and applies the Swedish Staffing Agencies' general terms of delivery for staffing and recruitment services, which clarify the division of responsibilities between suppliers and clients.

An absolute prohibition on the giving and receiving of benefits that constitute bribery or corruption applies within Poolia. All of Poolia's employees are obliged to comply with the prohibition on bribery and corruption in their dealings with clients, suppliers and similar business contacts. There are no exceptions to this prohibition.

Information security

Ever since it was founded in 1989, Poolia has incorporated a security approach into the handling of information. We have complied with the Swedish Personal Data Act (PUL) since it came into force in 1998. Security has always been an integral and natural part of the daily work of employees at all levels.

Poolia is careful to ensure that information about individual candidates' job applications, CVs or references is not disseminated or does not fall into the wrong hands. In the same way, the Company ensures that client-specific information, such as financial disclosures, is not passed to unauthorised persons.

Being an employee of Poolia involves a commitment not to disclose to any third party, or take advantage of, the Company's business secrets without authorisation. This also applies to information relating to and arising in connection with work at the client's premises.

We are a listed company and as such we comply with the Swedish Financial Supervisory Authority's rules and regulation for listed companies, and the Swedish Corporate Governance Code.

External involvement

'We are the good company' is a key component of Poolia's values. This means that working actively on sustainability issues – not only internally, but also externally – is a natural part of our daily life. An example of active internal sustainability is that Poolia was the first company in Sweden to sign the green lease agreement. The green lease agreement is the property industry's first common standard template for reduced environmental impacts. Several external sustainability initiatives are conducted both centrally from Poolia and also locally through Poolia's local offices. Below are some examples.

Poolia cooperates with the Quick route

The Quick route (Korta vägen) is a cooperation between colleges and universities, the Swedish Public Employment Service and Folkuniversitetet. The Quick route is designed for foreign-born graduates with a university degree or at least three years of academic studies in their home country. The training strongly increases their chances of obtaining a position in their profession.

Contributions to SOS Children's Villages

SOS Children's Villages works to uphold every child's right to a home. SOS Children's Villages gives a new home to children who have lost everything and support to families who are breaking up.

Contributions to Doctors Without Borders

Poolia is a corporate partner of Doctors Without Borders. Doctors Without Borders (MSF) is a medical humanitarian organisation that saves lives and relieves distress where the need is greatest. It assists people affected by crises, wars and natural disasters, regardless of political views, religion or ethnicity.

Support for Junior Achievement Sweden

By being a gold sponsor, Poolia contributes financial resources and provides support through personal commitment to Junior Achievement Sweden (Ung Företagsamhet). This is a non-political, non-profit educational organisation that trains junior and secondary students in entrepreneurship, thereby giving children and young people the opportunity to practise and develop their creativity, business enterprise and entrepreneurship.

Poolia supports Portionskampen

Portionskampen is a food donation campaign run by Uppsala City Mission. The campaign aims to reduce social exclusion, and to spread knowledge about vulnerability in Uppsala.

Free recruitment of Operational manager for RFSL

Poolia provided the entire recruitment process, free of charge, for a managerial position within RFSL. RFSL (Swedish Federation for Lesbian, Gay, Bisexual, Transgender and Queer Rights) is a non-profit organisation founded in 1950. RFSL's goal is that LGBTQ people should have the same rights and opportunities as everyone else in society.

MARKETS

Poolia focuses on the professional service area and has a presence in the markets of Sweden, Germany and Finland.

Morten Werner Managing Director of Poolia Sweden

Poolia Sweden

In 2016, the Swedish staffing market had a turnover of approx. SEK 31.4 billion1) and a penetration rate of 1.6%1).

Poolia Sweden's revenue amounted to SEK 552.7 million, an increase of 4.6%. Operating profit was SEK 5.1 million and the operating margin for the full year was 0.9%. Poolia's Swedish operations accounted for 70.4%

of the Group's revenue. Temporary staffing accounted for 87% of revenue, while permanent placement accounted for 13%. During the year, restructuring measures were conducted in the organisation at a cost of SEK 6.4 million. Poolia has now shown a profit in Sweden for the first time since 2011. Growth for temporary staffing was not satisfactory in 2016, partly due to a shortage of candidates. The permanent placement business performed well.

Relates only to continuing operations.

Tobias Rebenich Managing Director of Poolia Germany

Poolia Germany

Poolia Germany's revenue amounted to SEK 190.1 million, which is an increase of 6.4% compared with the previous year. Operating profit was SEK 17.0 million and the operating margin was 8.9%. The business accounts for 24.2% of Poolia's revenue. Temporary staffing accounted for 88% of revenue, while permanent placement

accounted for 12%. Poolia Germany continued to perform well in 2016. The establishment of the office in Stuttgart is progressing according to plan. The labour market is challenging, but Poolia is succeeding, despite a lack of candidates.

germany: revenue and operating margin

1) The most recent statistics available for the Swedish staffing market's turnover from the trade association Swedish Staffing Agencies.

Jose Majanen Managing Director of Poolia Finland

Poolia Finland

Poolia Finland's revenue amounted to SEK 41.9 million, which is a decline of 16.0% compared with the previous year. Operating profit was SEK 0.9 million and the operating margin was 2.1%. The business accounts for 5.3% of Poolia's revenue. Temporary staffing accounted for 91% of revenue, while permanent placement

accounted for 9%. The long recession is still having an adverse effect on Poolia's Finnish operations. We noted a slight increase in demand towards the end of the year. The company has intensified its marketing and sales work in the region.

finland: revenue and operating margin

THE POOLIA SHARE

Poolia's shares were admitted to trading on the Stockholm Stock Exchange on 23 June 1999. Share capital on 31 December 2016 was SEK 3,424,399 divided into 17,121,996 shares (4,023,815 class A shares and 13,098,181 class B shares), with a par value of SEK 0.20. All shares carry equal rights to a share of the Company's assets and profits. Class A shares carry entitlement to one vote and class B shares to 1/5 vote.

Share price movement

The share price was SEK 12.35 at the beginning of the year and SEK 15.60 on 31 December 2016. The highest listing for the Poolia share during the year was SEK 16.80, while the lowest was SEK 10.75.

Stock exchange trading

Poolia's shares are listed on NASDAQ OMX Stockholm AB under the ticker POOL B. A round lot consists of 1 share and the par value is SEK 0.20.

Dividend policy

The Board of Directors' long-term dividend policy is that the annual dividend shall normally exceed 50% of the Group's profit after tax.

the 10 largest swedish shareholders at 31 december 2016

Name	A shares	B shares	Holding, %	Votes, %
Örås, Björn	4,023,815	3,251,445	42.49	70.36
AB Traction		1,407,000	8.22	4.24
Palmstierna, Fredrik		1,236,279	7.22	3.72
PSG Micro Cap		851,162	4.97	2.56
Wilkne, Thord		600,000	3.50	1.81
Kungl. Konstakademien		400,000	2.34	1.20
Pizzignacco, Jenny		261,140	1.53	0.79
Örås, Sara		256,600	1.50	0.77
Örås, Caroline		250,000	1.46	0.75
Försäkringaktiebolaget, Avanza Pension		247,651	1.45	0.75
Total	4,023,815	9,692,299	80.12	89.75

shareholdings at 31 december 2016

No. of shares	Shareholders Holding, %		Votes, %
1 – 1,000	1,578	2.49	1.29
1,001 – 5,000	188	2.69	1.39
5,001 – 50,000	55	4.09	2.11
50,001 –	27	90.72	95.22
Total	1,848	100.00	100.00

the 10 largest foreign shareholders at 31 december 2016

		Holding,	Votes,
Name A shares	B shares	%	%
Placeringsfond småbolagsfond, Norden, Finland	529,222	3.09	1.59
UBS Switzerland AB/Clients Account, Switzerland	401,800	2.35	1.21
JP Morgan Bank Luxembourg S.A. UK	100,000	0.58	0.30
UBS Switzerland AG-Sparnord S.A. Denmark	100,000	0.58	0.30
Svenska Handelsbanken AB for PB, Luxembourg	63,400	0.37	0.19
Nordea 1 SICAV, Luxembourg	13,176	0.08	0.04
UB Securities AB, Finland	10,000	0.06	0.03
CBLDN-Pohjola Bank Plc Client A/C, UK	6,450	0.04	0.02
KAS Bank Client Acc Winterflood, Netherlands	4,775	0.03	0.01
Sardal, Karin Ulrika	4,000	0.02	0.01
Total	1,232,823	7.20	3.71

per-share data

	2016	2015	2014	2013	2012
Number of shares, average	17,121,996	17,121,996	17,121,996	17,121,996	17,121,996
Number of shares, outstanding	17,121,996	17,121,996	17,121,996	17,121,996	17,121,996
Earnings per share, SEK	0.801	0.931	0.111	0.151	-1.101
Equity per share, SEK	4.76	4.41	3.96	3.52	4.62
Dividend per share, SEK	0.602	0.50	0.00	0.00	0.00
Share price 31 Dec, SEK	15.60	12.40	11.10	11.35	10.70
P/E ratio	19.5	13.3	100.9	neg	neg

1) Continuing operations only.

2) According to the Board's proposal.

ownership categories

share capital development (issued shares)

Year	Event	Change in share capital	Total share capital	Change in number of shares	Total number of shares
1997	Bonus issue	50,000	100,000	500	1,000
1999	Split	–	100,000	4,999,000	5,000,000
1999	New issue	7,301.76	107,301.76	365,088	5,365,088
1999	Bonus issue	965,715.84	1,073,017.60	–	5,365,088
1999	New issue	266,660.20	1,339,677.80	1,333,300	6,698,388
2000	New issue	193,599.80	1,533,277.60	968,000	7,666,388
2001	Bonus issue	3,066,555.20	4,599,832.80	15,332,776	22,999,164
2003	Share redemption	-913,148.80	3,686,684.00	-4,565,744	18,433,420
2004	Reduction	-184,401.90	3,502,282.10	–	18,433,420
2004	New issue	1,354.00	3,503,636.10	6,770	18,440,190
2004	Bonus issue	184,401.90	3,688,038.00	–	18,440,190
2005	New issue	956.00	3,688,994.00	4,780	18,444,970
2006	New issue	4,307.20	3,693,301.20	21,536	18,466,506
2009	Share redemption	-268,902.20	3,424,399.00	-1,344,510	17,121,996

FIVE-YEAR SUMMARY

The tables below present condensed financial information for the financial years 2012-2016. Income statements and certain key ratios for 2012-2015 have been restated to reflect the discontinued operations in the UK and Utvecklingshuset.

Amounts in SEK millions	2016	2015	2014	2013	2012
condensed income statement
Operating income	784.7	757.1	700.6	729.1	888.5
Operating expenses	-696.8	-680.0	-691.7	-722.8	-900.5
EBITDA	26.7	18.9	8.9	6.3	-12.0
Depreciation/amortisation of non-current assets	-3.7	-2.9	-3.3	-3.9	-6.5
Impairment of non-current assets	–	–	–	–	-4.7
Operating profit/loss	23.0	16.0	5.6	2.4	-23.2
Financial items	-2.5	6.5	-0.3	-0.1	0.2
Profit/loss before tax	20.5	22.5	5.3	2.3	-23.0
Taxes	-6.8	-6.5	-3.4	0.2	4.2
Profit/loss for the year, continuing operations	13.7	16.0	1.8	2.5	-18.8
Profit/loss after tax, discontinued operations	-2.0	-0.7	-1.7	-22.4	-6.7
Profit/loss for the year	11.7	15.3	0.1	-19.9	-25.5
condensed balance sheet
assets
Goodwill	18.7	18.5	12.4	12.2	27.7
Other non-current assets	5.1	7.3	5.7	7.6	9.5
Deferred tax assets	11.2	11.6	14.1	15.7	14.8
Current receivables	174.4	175.2	149.6	172.9	209.5
Cash and cash equivalents	36.6	20.2	19.0	12.7	12.7
Total assets	246.0	232.9	200.9	221.2	274.2
equity and liabilities
Equity	81.6	75.5	67.8	60.3	79.2
Deferred tax liabilities	–	–	–	–	–
Liabilities to credit institutions	14.2	1.9	5.5	20.4	12.4
Other current liabilities	150.2	155.5	127.6	140.4	182.6
Total equity and liabilities	246.0	232.9	200.9	221.2	274.2
key financial ratios
Operating margin, %1	2.9	2.1	0.8	0.3	-2.6
Profit margin, %1	2.6	2.9	0.8	0.3	-2.6
Return on equity, %	14.9	21.3	0.2	-28.4	-26.6
Return on capital employed, %	26.7	28.5	5.1	-23.1	-26.1
Return on total assets, %	9.3	9.9	1.8	-8.0	-9.5
Equity/assets ratio, %	33.2	32.4	33.8	27.3	28.9
Risk-bearing capital, %	33.2	32.4	33.8	27.3	28.9
Number of FTEs, average1	1,469	1,353	1,189	1,282	1,522
Income per employee, SEK 0001	534	560	589	569	584
Earnings per share, SEK	0.80	0.93	0.11	0.15	-1.10

1) Continuing operations.

Definitions of the financial ratios above can be found on page 60.

DIRECTORS' REPORT

Poolia AB (publ) CRN 556447-9912

The Board of Directors and the Managing Director of Poolia AB (publ), registered office Stockholm, Sweden, hereby present the Parent Company's annual accounts and the consolidated financial statements for the 2016 financial year. The following income statements, statements of comprehensive income, balance sheets, specifications of equity, cash flow statements and report of the accounting policies applied and notes represent Poolia's official financial statements. The Corporate Governance Report can be found on pages 24-29.

Business description

Poolia's business concept is to provide companies and organisations with the skills that, either temporarily or permanently, meet their needs for qualified professionals. Poolia focuses on temporary staffing and permanent placement in the business areas of Finance & Accounting, IT, Office Support, Human Resources, Sales & Marketing, Life Science & Engineering, Legal and Executive Search. Poolia conducted operations in three countries during the year: Sweden, Finland and Germany. The UK operations were divested on 28 February 2014 and are not included in the Group's revenue, earnings and financial ratios.

Poolia's segment reporting is based on internal reporting, which means that the segment reporting format is geographical regions. Poolia's geographical segments are Sweden, Finland and Germany. This is the level at which Poolia's chief operating decision-maker analyses the business operations. Poolia UK is reported under discontinued operations.

The poolia share

Poolia is listed on NASDAQ OMX Stockholm AB under the ticker POOL B. The Company's largest shareholder, Björn Örås, controlled 70.36% of the voting rights and 42.49% of the capital at the end of 2016. Björn Örås is also Chairman of the Board of Poolia AB. No other shareholder had a holding corresponding to voting rights of 10% or more.

the 10 largest shareholders at 31 december 2016

			Holding	Votes
Name	A shares	B shares	%	%
Örås, Björn	4,023,815	3,251,445	42.49	70.36
AB Traction		1,407,000	8.22	4.24
Palmstierna, Fredrik		1,236,279	7.22	3.72
PSG Micro Cap		851,162	4.97	2.56
Wilkne, Thord		600,000	3.5	1.81
Placeringsfond Småbolagsfond, Norden		529,222	3.09	1.59
UBS Switzerland AG/Clients Account, Switzerland		401,800	2.35	1.21
Kungliga Konstakademien		400,000	2.34	1.20
Pizzignacco, Jenny		261,140	1.53	0.79
Örås, Sara		256,600	1.50	0.77
Total	4,023,815	9,194,648	77.21	88.25

The total number of shares issued is 17,121,996, of which 4,023,815 are A shares and 13,098,181 B shares. Each A share entitles the holder to one vote and each B share to 1/5 vote.

	segment subsidiary holding share of sales establishment
Poolia Sweden	Poolia Sverige AB (incl. commission subsidiary) Poolia Malmö AB	100% 100%	70.5%	Gävle, Gothenburg, Jönköping, Linköping Malmö, Stockholm, Sundsvall, Umeå Uppsala, Örebro
	Poolia Executive Search AB Poolia Danmark A/S	91% 100%
Poolia Finland	Poolia Suomi Oy Poolia IT Oy	100% 100%	5.3%	Helsinki
Poolia Germany	Poolia GmbH	100%	24.2%	Düsseldorf, Frankfurt, Hamburg, Hanover, Cologne, Mannheim, Munich, Stuttgart

There are no restrictions on the transferability of shares by reason of the provisions of the Articles of Association. The Company is not aware of any agreements between shareholders that would restrict the right to transfer shares. Nor are there any significant agreements to which the Company is a party and which take effect, alter or terminate upon a change of control following a takeover bid.

According to the Articles of Association, Board members are appointed annually at the AGM. The Articles of Association do not contain any restrictions in respect of the appointment or dismissal of Board members or in respect of amendments to the Articles of Association.

Decisions made must be in accordance with the Swedish Companies Act. There are no agreements between the Company and Board members or employees that define compensation in the event of resignation, dismissal without reasonable cause or termination of employment following a takeover bid, other than the agreements between the Company and senior executives described in note 8, which include termination benefits of up to 12 months' salary for the Managing Director and other senior executives.

Significant events in 2016

In brief

• Poolia continues to win contracts.
• Focus on public market begins.

Market conditions

The positive trend in the Swedish market continued in 2016. Sweden's economic boom is giving rise to a shortage of candidates.

In Germany, market demand for Poolia's services remains high as a result of the strong German economy. However, the lack of candidates has led to a lower conversion rate.

Poolia Finland's business showed a decline due to the country's protracted and deep recession.

A description of market conditions for each country can be found on pages 13-14.

Seasonal variations

Revenue from the temporary staffing business is highly dependent on the number of working days in the month and on holidays. Of these two factors, the number of days has the greater impact on earnings, mainly because some of the temps receive a fixed monthly salary, regardless of the number of working days. This is most common in

Sweden and Germany. In Sweden, approx. 14% of temps receive a fixed monthly salary.

Revenue from temp assignments extends over a longer period than permanent placement revenues. Both temporary staffing and permanent placement revenues are lower during summer holiday periods.

Revenue

The Group's revenue for continuing operations increased by 3.6% to SEK 784.7 (757.1) million. Currency effects had a positive impact of 0.5% on revenue in 2016.

Temporary staffing continued to be the dominant service area, accounting for 88% (89%) of revenue. Permanent placement's share of revenue increased to 12% (11%).

The Swedish and German operations showed an increase in revenue compared with the previous year, both in temporary staffing and permanent placement. Poolia Finland experienced a decline in revenue for both.

Poolia Sweden's revenue was SEK 552.7 (528.6) million, an increase of 4.6%. Poolia Finland showed a decline in revenue, which fell by 16.0% to SEK 41.9 (49.9) million. Currency effects had a positive impact of 1.6% on revenue. Poolia Germany's revenue amounted to SEK 190.1 (178.6) million, an increase of 6.4%. Currency effects had a positive impact of 1.7% on revenue.

Earnings

Operating profit/loss for continuing operations was SEK 23.0 (16.0) million. Profit before tax amounted to SEK 20.5 (22.5) million. The operating margin was 2.9% (2.1%). Poolia Sweden reported an operating profit of SEK 5.1 (-1.6) million, with an operating margin of 0.9% (-0.3%). Poolia Finland's operating profit was SEK 0.9 (1.2) million, with an operating margin of 2.1% (2.4%). Poolia Germany's operating profit was SEK 17.0 (16.4) million, with an operating margin of 8.9% (9.2%). Poolia UK's operating profit/loss is reported under discontinued operations, and was SEK -0.7 (-0.7) million for the year.

The Group's net financial items amounted to SEK -2.5 (6.5) million. The positive net financial items during 2015 were due to a currency effect. The Group's tax expense was SEK -6.8 (-6.5) million.

Financial position

The Group's cash and cash equivalents at 31 December 2016 were SEK 36.6 (20.2) million. The Group's Swedish business has an overdraft facility of SEK 40 (40) million. SEK 14.2 (1.9) million of this amount had been utilised at 31 December 2016. Cash flow from operating activities for continuing operations during the period was SEK 13.2 (18.4) million. The equity/assets ratio at 31 December 2016 was 33.2% (32.4%).

The policies that apply for financial risk management and exposure to various types of risks are described in note 4.

Investments

The Group's investments in non-current assets amounted to SEK 1.4 (2.0) million.

Goodwill

The Group's goodwill totalled SEK 18.7 (18.5) million. No impairment was identified during the annual testing. Measurement principles and a summary of the distribution of cash-generating units are shown in note 14.

Employees

The average number of full-time equivalents was 1,469 (1,353). The total number of employees at 31 December 2016 was 1,517 (1,551).

The vast majority of Poolia's employees are employed temps who go on short or long-term placements with clients in various sectors.

Internal staff, responsible for sales, follow-up and administration, make up about 13% of the entire workforce.

Poolia has a consistent, long-term human resources programme. Vital ingredients are regular employee satisfaction surveys and performance appraisals, skills development opportunities and good internal communication.

Poolia consistently complies with applicable laws and regulations in each country, in areas which include employment and wage models, working time, work environment and healthcare. For Poolia, equality in the workplace is a natural principle.

Environmental Information

Poolia does not engage in any operations that are subject to permit or notification requirements under the Swedish Environmental Code. One of the Company's core values is "to be the good company", and an integral part of this is taking environmental responsibility. This involves the

Company comfortably fulfilling each country's requirements under environmental law for companies engaged in Poolia's type of business. Environmental adaptation is based on what is technically feasible, financially reasonable and environmentally justified, taking into account the Group's size and resources. Poolia was awarded ISO environmental certification under SS-EN ISO 14001:2004 Environmental Management System in 2012 and SS-EN ISO 14001:2015 in 2016.

Guidelines for remuneration of senior executives

The 2016 Annual General Meeting adopted guidelines for remuneration of senior executives. In 2016, the Company's senior executives were the Group management team, consisting of the CEO/Managing Director of the Parent Company, Country Managers in Sweden, Finland and Germany, the CFO and the HR Manager. The Board of Directors will propose to the 2017 AGM that the guidelines for remuneration of senior executives remain unchanged.

Policy

It is Poolia's aim to offer market conditions that enable the Company to recruit and retain qualified personnel. Remuneration of senior executives consists of a fixed salary, variable remuneration, a pension and other standard benefits.

Remuneration is based on the individual's commitment and performance against pre-established targets – both individual and Company-wide. Individual performance is evaluated continuously.

Fixed salary

The fixed salary is normally subject to an annual review, which takes into account the quality of the individual's performance. The Managing Director and other senior executives will receive market-based fixed salaries.

Variable remuneration

Variable remuneration is based on the individual's area of responsibility and the Group's revenue and/or earnings growth. Senior executives' variable remuneration can amount to a maximum of 40% of the fixed salary. The actual figure was a SEK 0.8 (1.1) million.

Decisions about share-based and share-price-related incentive schemes for senior executives are made at the AGM.

Other benefits and terms of employment

In addition to retirement benefits under the Swedish National Insurance Act, the Managing Director also has a personal defined-contribution pension agreement. Other senior executives are covered by defined-contribution pension plans that are essentially equivalent to the premium level of the ITP plan. The minimum retirement age for all senior executives is 65.

Senior executives are entitled to three, six or twelve months' notice for voluntary and involuntary termination of employment. A monthly salary is payable throughout the period of notice, subject to deduction for any other pay received during this period. There are no agreements on additional termination benefits for senior executives.

Derogation from the guidelines

The Board is entitled to derogate from the guidelines if it determines that there are special grounds for doing so in a particular case.

Parent Company

The Parent Company engages in general Group management, development, IT operation and system administration and financial management. The Parent Company's revenue for 2016 was SEK 16.8 (20.4) million. Profit/loss after financial items was SEK 8.8 (-0.7) million.

Risks and uncertainties

All business activities involve some degree of risk. Poolia continuously assesses what risks the Company is exposed to and minimises them through preventive measures and action plans for dealing with any risk-related situations that arise. The risks that the Poolia Group faces can be divided into three categories – operational risks, legal risks and financial risks.

Operational risks

The economy and demand

Although there is underlying structural growth in the staffing sector, the volume is also affected by economic fluctuations. There is a high level of correlation between growth in the staffing sector and in the economy in general.

It is usually the case that when general economic growth slows or stagnates, the staffing services market suffers a reverse. This is because so far when the economy has weakened, client companies have found themselves overstaffed, with less need to bring in temporary workers from outside. During a recession, the need for permanent placement services also decreases significantly. A challenge for Poolia is to respond to economic fluctuations while maintaining profitability.

Risks in a strong economy

During periods of increased growth, the business is dependent on how successfully Poolia is in attracting and recruiting qualified professionals. One success factor is the availability of the skills that are in demand, and the rate of growth will be largely determined by this.

Risks in a weak economy

In an economic downturn, Poolia's profitability depends on how quickly the Company perceives and interprets market signals and how well it adapts costs during the downturn. We also work constantly to increase the proportion of variable costs.

The largest expense item is payroll costs and the Company has variable payroll systems for temps and internal staff. At present, most of Poolia employees have partly variable remuneration. For fixed costs such as premises and IT, we strive constantly to optimise the commitment period in relation to cost and to create flexibility by paying per-user with regard to IT-related costs.

Client dependence

Poolia's business is based on delivering quality that creates satisfied clients who then continue to purchase services from Poolia. We follow up our assignments with with a survey to ensure client satisfaction. This means we are able to obtain quality assurance for individual assignments and to develop our processes.

Generating a large proportion of revenue from a small number of individual clients or clients in one sector always presents a risk for a company like Poolia. We work actively on client segmentation to create a good spread of sectors and client sizes in order to reduce our dependence on individual client companies and sectors. In 2016, the ten largest clients accounted for 29% of the Group's total revenue, which is unchanged from the previous year. No single client accounts for more than 10% of total Group revenues.

Staff dependence

Like all service companies, Poolia is dependent on the employees within the business. We work in line with our ISO processes to minimise staff dependence and achieve higher efficiency and quality in what we deliver.

Liability risks

Poolia's liability risks are primarily the risks of a temp causing damage to a client's business or property, and employee injuries. Poolia's policy is to avoid assuming responsibility for supervision, but rather to provide the client with the requested competence. Information about the temp's skills and background that is relevant to the assignment is routinely provided for all assignments. The Group has adequate insurance cover for liability risks, in accordance with Poolia's general terms of delivery.

Property risks

Poolia's operations are conducted in leased premises that are exposed to the risk of break-ins, sabotage and fire. Poolia leases all the computers, with the value being protected by the lease and its insurance. Poolia also works continuously to process digital information in accordance with ISO 27001 (information security), thereby reducing the risk of loss of digital information.

As Poolia's entire IT operations are outsourced, Poolia IT platform has a high level of flexibility, security and availability. This enables Poolia to quickly start operations at a new location.

Legal risks

Demand for Poolia's services is largely dependent on the laws and regulations that affect the labour market and staffing sector in the countries where we operate. This means that future amendments to these laws and regulations may affect Poolia, both positively and negatively. Country managers are responsible for closely monitoring developments in this area, and this includes obtaining information from the trade association in their own country.

Financial risks

Poolia is exposed to various types of financial risks. The Company's overall policy for financial risk management is to endeavour to minimise the negative effects of market fluctuations on the Group's earnings at all times. However, there is no hedging of currency exposure arising on transactions with foreign subsidiaries. The Company works to ensure that, whenever possible, profit in foreign entities is distributed to the Swedish parent company. The Group's financial policy is established annually by the Board and regulates how financial risks are managed and what financial instruments may be used.

Currency risk

Currency risk is the risk that the Group's earnings will be adversely affected by exchange rate movements. Poolia's currency exposure arises from intra-group financing and the translation of foreign subsidiaries' balance sheets and income statements to Swedish kronor. Translation

exposure refers to translation from EUR, GBP and DKK. The financial policy states that translation exposure shall not be hedged. Translation of foreign subsidiaries had a positive effect of SEK 3.0 (-7.6) million on consolidated equity in 2016. Poolia does not have any other currency exposure at present.

Interest rate risk

Interest rate risk is the risk that the Group's net interest income will be adversely affected by changes in market interest rates. The Group's interest rate risk exposure was insignificant at the reporting date. Poolia does not have any holdings of interest-bearing financial liabilities other than the overdraft facility of SEK 40 (40) million, and the Company's interest-bearing financial assets consist primarily of unrestricted bank funds. A one percentage point change in market interest rates would affect all of the Group's interest-bearing assets and liabilities. The impact on earnings before tax would be approx. SEK 0.1 million.

Credit and counterparty risk

Credit and counterparty risk is the risk that the counterparty to a transaction will be unable to discharge its obligations, thereby causing the Group to incur a loss. The Group is exposed to credit and counterparty risk if excess liquidity is invested in financial assets. In order to limit counterparty risk, only counterparties with a high credit rating in accordance with the financial policy are accepted. There were no derivatives at 31 December 2016.

Poolia's largest operating assets are trade receivables. Bad debts may arise in a business relationship or a dispute after a client has become insolvent. Poolia's receivables from a single client are relatively small in relation to to the outstanding trade receivables portfolio. This means that the risk of client defaults is insignificant. The Group applies a credit policy that includes credit checks and careful payment tracking. Commercial credit risk within the Group is minimal as there is no significant credit risk concentration in respect of a particular client, counterparty or geographical region. The maximum credit risk corresponds to the carrying amount of Poolia financial assets.

Liquidity risk and cash flow risk

Liquidity risk is the risk that the Group will encounter difficulty in obtaining funds to meet its obligations associated with financial instruments. At present, Poolia's cash and cash equivalents are placed in accounts or short-term deposits with banks. The Group currently has no need of refinancing.

Expected future development

The economies of Sweden and Germany showed growth in 2016, It is our assessment that this will also be the case in 2017. The strong economy is having a positive effect on demand for both temporary staffing and permanent placement services, but growth in temporary staffing is being adversely affected by a shortage of candidates. Finland is still in a recession, but we have started to see improved demand.

The effects of the economy on Poolia's business are described in more detail in the section Risks and uncertainties above.

Events after the reporting date

There were no significant events to report after the end of the period.

Proposed distribution of profits

With positive earnings, Poolia's operations generate a positive cash flow in excess of working capital requirements. The goal for the return to shareholders, according to the dividend policy, is that the dividend shall normally exceed 50% of the Group's profit after tax. The Company's growth strategy is mainly concerned with organic growth. Acquisitions may be relevant in exceptional cases, particularly when entering new markets.

The Group's profit after tax for continuing operations for the 2016 financial year is SEK 11.7 million. The Board proposes that the Annual General Meeting adopt a dividend of SEK 0.6 per share, to a total value of SEK 10,273,198.

The proposed dividend represents 88 percent of net profit for the year and is justified by the Group's strong balance sheet and confidence in the Group's future development. Poolia's equity/assets ratio after the proposed dividend will be 30.3 percent. The proposed dividend is reasonable pursuant to the second and third paragraphs of section 17:3 of the Companies Act.

The following amounts (in SEK) are at the disposal of the AGM

	13,920,576
Profit/loss for the year	8,225,112
Retained earnings	5,695,464

The Board proposes that the profits be distributed as follows:

Payment to shareholders	10,273,198
Carried forward	3,647,378
	13,920,576

CORPORATE GOVERNANCE REPORT

Description of Poolia

Poolia AB is a Swedish public company with its registered office in Stockholm. The Company is the parent company of the Poolia Group (Poolia). In 2016, the Group conducted operations in Sweden, Finland and Germany. Poolia's B shares are listed on NASDAQ OMX Stockholm AB.

Regulatory framework

Poolia's corporate governance is regulated by Swedish law, primarily the Swedish Companies Act, and the Stockholm Stock Exchange's Rules for Issuers, which also include the Swedish Corporate Governance Code (the Code). In addition to legislation, regulations and recommendations, the Articles of Association are also central to the governance of the Company. The Articles of Association are available at www.poolia.com.

Poolia's application of the Code

Poolia applies the Code with no derogations.

Corporate governance

largest shareholders, by shareholder group, 31 dec 2016

Shares	Votes (%)
7,275,260	70.36
1,407,000	4.24
1,236,279	3.72
851,162	2.56
600,000	1.81
532,222	1.60
401,800	1.21
400,000	1.20
261 140	0.79
256,600	0.77

* Representative on the Nomination Committee

ownership categories

	Shareholding (%)
Swedish private individuals	69.44
Foreign owners	7.34
Financial companies	9.69
Other financial companies	8.22
Public sector	2.34
Representative organisations	0.83
Other	2.20

Annual General Meeting

The Annual General Meeting of Poolia AB is the Company's highest decision-making body through which shareholders exercise their influence as owners of the Company. Among the AGM's main tasks are adoption of the balance sheets and income statements and to make decisions on the appropriation of profits, remuneration guidelines for senior executives and the discharge from liability of the Board and Managing Director and CEO.

Following proposals from the Nomination Committee, the Meeting elects Board members to serve until the end of the next AGM and adopts principles for appointing a Nomination Committee for the next AGM. All shareholders who are recorded in the share register and notify the Company of their intention to attend in accordance with the issued Notice are entitled to participate in the AGM. Each class B share represents 1/5 of a vote, while each class A share represents one vote. However, all shares carry equal rights to a share of the Company's assets and profits.

2016 Annual General Meeting

The most recent AGM was held on 27 April 2016 in Stockholm. The Meeting was attended by shareholders representing 80.67% of the voting rights and 62.48% of the capital. On the proposal of the Nomination Committee, Björn Örås, Dag Sundström, Anna Söderblom and Lennart Pihl were re-elected to the Board and Marika Skärvik was elected as a new member. Björn Örås was reelected as Chairman of the Board. No Deputy Chairman was elected. The AGM also approved Board fees of SEK 500,000 (500,000) to be paid to the Chairman and SEK 185,000 (185,000) to each of the Board members not employed by the Company.

The AGM adopted the 2015 income statements and balance sheets in accordance with the Board's proposal. The Meeting also discharged the Board members and the Managing Director from liability for the 2015 financial year. In addition, the Meeting adopted:

• The Nomination Committee's proposed principles for appointing the Nomination Committee.
• The guidelines for remuneration of senior executives.

2017 Annual General Meeting

The Annual General Meeting dealing with the 2016 financial year will be held at the Company's premises in Stockholm, at Kungsgatan 57 A, 4th floor, at 4 p.m. on 3 May 2017. The Annual Report will be available from 11 April 2017 on the Company's website www.poolia.com. The Notice of the Meeting has been published in the Official Swedish Gazette and as an announcement in Dagens Industri on 29 March 2017. Shareholders wishing to have

business considered at the Meeting can find the submission deadline and address on the Company's website.

Board of Directors

Responsibilities of the Board

Poolia's Board of Directors has overall responsibility for the organisation and management of the Company and for ensuring that guidelines for the management of the Company's funds are appropriately structured and complied with. The Board is also responsible for preparing and evaluating Poolia's overall long-term strategies and goals, determining budgets and business plans, reviewing and approving financial statements, adopting general guidelines, making decisions on matters relating to acquisitions and disposals of operations and deciding on major investments and significant changes to Poolia's organisation and operations. The Board assists the Nomination Committee in preparing proposals for the Company's auditor and the auditor's remuneration and is also responsible for maintaining regular contact with the Company's auditor. The Board appoints the Managing Director and draws up the Managing Director's written instructions. The Board defines salaries and benefits received by the Managing Director and other senior executives based on the guidelines adopted by the Annual General Meeting. The Board must work in the best interests of the Company and all of its shareholders at all times.

Composition of the Board

Following the 2016 AGM, Poolia's Board has consisted of five members. The Managing Director does not serve on the Board, but may attend meetings in a reporting capacity with the Company's CFO. Other officials of the Company may also attend in a reporting capacity. For a more detailed presentation of the Board members, see page 31.

Board independence

The members of Poolia's Board are considered independent of the Company and its shareholders, apart from Björn Örås who as principal owner is not considered independent.

Nomination Committee

The Nomination Committee is the body charged by the AGM to prepare the Meeting's resolutions for election and remuneration issues. In accordance with a decision by the 2016 AGM, the Chairman of the Board shall, no later than the end of the third quarter of the year before the meeting, contact the three largest shareholders of the Company, who will then each appoint one member to serve on the Nomination Committee. If any of the three largest shareholders waive their right to appoint a member to the Nomination Committee, the next shareholder in size is asked to appoint a member. The term of office for the Nomination Committee lasts until a new Committee

is appointed. The composition of the Nomination Committee shall be announced no later than the publication of the Company's Q3 report or as a special public notice no later than six months before the AGM. This ensures that all shareholders receive information at the same time about the persons to contact for nomination matters.

The Nomination Committee is constituted on the basis of known shareholdings in the Company as of 31 August of the year before the AGM. If an owner who did not appoint a member of the Nomination Committee becomes one of the three largest shareholders after the Committee has been formed, the Nomination Committee may, if it considers it necessary, offer this owner the opportunity to appoint a member of the committee. Changes to the Nomination Committee must be made public immediately.

The Nomination Committee prepares and presents to the AGM proposals on:

• Election of a person to chair the Meeting.
• Election of the Chairman and other members of the Company's Board.
• Board fees for the Chairman and other Board members and payment for any committee work.
• Election of auditors, deputy auditors and their fees (if applicable).

Members of the Nomination Committee shall not receive any remuneration. The Nomination Committee may, with the approval of the Chairman, charge the Company for consultancy and other expenses necessary for the Committee to fulfil its duties.

Poolia's Nomination Committee was appointed on 01 December 2016. The Nomination Committee until the 2017 AGM consists of Petter Stillström, AB Traction, Emil Ahlberg, PSG Capital and Björn Örås. Emil Ahlberg was appointed Chairman of the Nomination Committee. The Nomination Committee has held two meetings prior to the adoption of the Annual Report.

Chairman of the Board

The Chairman leads the Board's work, ensuring that it is conducted in accordance with laws and regulations. The Chairman monitors the business operations through dialogue with the Managing Director and is responsible for ensuring that the other Board members receive sufficient information and decision-support material for their work. The Chairman coordinates the annual evaluation of the work of the Board and the Managing Director, and notifies the Nomination Committee of the results. The Chairman is also involved in the evaluation and development of the Group's senior executives. The Chairman represents the Board both externally and internally. Björn Örås was

re-elected as Chairman at the 2016 Annual General Meeting. He has been Chairman of the Board since 2000.

Work of the Board

The work of the Board in 2016

The Board held six regular meetings, one strategy meeting and one statutory meeting in 2016. At these meetings, the Board discussed the fixed items on the agenda of each meeting. These items included the business status, market conditions, financial reporting, budgets, forecasts and projects. In addition, overall strategic issues relating to the Company's focus, the external environment and growth opportunities were analysed. The Managing Director and CFO have been co-opted onto the Board and attend all meetings, apart from those that consider matters related to remuneration of senior executives and the evaluation of the work of the Board and the Managing Director. One or more country managers or heads of staff functions have attended Board meetings on three occasions during the year to present the results of their operations.

The Board comprised the following AGM-elected members: Björn Örås (Chairman), Lennart Pihl, Marika Skärvik, Dag Sundström and Anna Söderblom. (For information about Board members' principal assignments outside the Group and their shareholdings in the Company, see page 31.) Meeting attendance is reported below.

Audit Committee

In 2016, the Audit Committee consisted of the Board in its entirety. The Audit Committee is responsible for preparing the Board's work, ensuring quality in Poolia's financial reporting, meeting the Company's auditor to discuss issues including the external audit and views on the Company's risks, establishing guidelines on the non-auditing services that Poolia may procure from its auditors, evaluating the auditing work and informing the Nomination Committee of this, and assisting the Nomination Committee in producing proposals for the election of auditors and remuneration of audit work. The Audit Committee also monitors the effectiveness of Poolia's risk management and internal control over financial reporting. The Audit Committee meets Poolia's auditor at least twice a year, and at least one of these occasions must be without the presence of executive management.

Remuneration Committee

In 2016, the Remuneration Committee consisted of the Board in its entirety. The Committee deals with terms of employment and benefits for the Managing Director. The Committee also deals with issues related to remuneration of other senior executives. The Committee will receive information on the Company's total remuneration of senior executives. If incentive schemes such as share option or

Member	Elected	Position	Attendance	and its Management	Independent of the Company Independent of the Company's major shareholders
Björn Örås	1989	Chairman	8/8	Yes	No
Marika Skärvik	2015	Member	8/8	Yes	Yes
Dag Sundström	2011	Member	8/8	Yes	Yes
Anna Söderblom	2013	Member	7/8	Yes	Yes
Lennart Pihl	2013	Member	8/8	Yes	Yes

board structure and attendance

similar programmes are proposed to executive management or other employees, decision-support material must be provided to shareholders prior to the meeting and this material must clearly show the motives, important conditions, any dilution and the estimated cost of the programme to Poolia in the case of different outcomes.

Managing Director (CEO)

The Managing Director leads the Company's operations within the framework defined by the Board of Directors. The most recent instructions for the Managing Director were approved by the Board on 27 April 2016 and stipulate the role of the Managing Director in the Company. The Managing Director provides necessary information and decision-support material for Board meetings. The Managing Director or his representative acts as a rapporteur to the Board. The Managing Director keeps the Board of Directors and the Chairman regularly informed about the Company's financial position and performance. The Board annually evaluates the Managing Director's working methods and performance.

Group Management

The Managing Director of Poolia AB leads Group Management, which, in addition to the MD, consists of the executives appointed by him. Management represents a consulting body to the Managing Director and pursues overall policy and development issues within Poolia. Group Management convenes in the manner determined by the Managing Director. Group management meets once a week to go through the current status for each country. The CFO is required to report to the Board. The aim of this reporting obligation is to ensure that all significant financial information reaches the Board.

group management at 1 march 2017

Name	Position	Employed
Morten Werner	CEO	2014
Fredrik Johansson	CFO	2017
Tobias Rebenich	MD Poolia Germany	2011
Jose Majanen	MD Poolia Finland	2007

Internal management and control

The Board is responsible for ensuring that the Company has satisfactory internal control and formalised procedures for achieving compliance with established financial reporting and internal control policies and that the Company's financial statements are prepared in accordance with legal requirements, applicable accounting standards and other requirements for listed companies.

Financial reporting

Interim and year-end reports are dealt with by the Board and issued by the Managing Director on behalf of the Board. The Managing Director is responsible for ensuring that the accounting records of Group companies are maintained in accordance with the law and that finances are managed responsibly.

Consolidated accounts are prepared on a monthly basis and submitted to the Board and Group Management. The systems and IT environment at Poolia have been harmonised into common systems for all companies. A common financial manual and monthly check lists have been implemented as tools for ensuring correct reporting. Each month, the Country Managers and their Financial Managers prepare a report describing the previous period, the current situation and an outlook for the coming period. The purpose of these reports is to provide an update on the business status and the financial situation and to highlight any risks that have arisen. In addition to these tools, monthly analysis and follow-up meetings have been introduced for each segment between the Managing Director, the CFO and/or Financial Controller and the Country Manager and Financial Manager.

Internal audit

It is the Board's assessment that Poolia does not need to create a separate audit function in addition to its existing internal control processes and functions. The monitoring conducted by the Board and management is considered to fulfil the need. However, an assessment is conducted annually to ascertain whether such a function is necessary to maintain effective controls within the Company.

Auditors

The 2016 AGM appointed Deloitte AB as Poolia's auditing company, with Henrik Nilsson as Chief Auditor, for a period of one year. Henrik Nilsson is an authorised public accountant and partner at Deloitte AB. It is Poolia's assessment that Henrik Nilsson does not have any relationship to Poolia or associates of Poolia that might affect the auditor's independence in relation to the Company. Henrik Nilsson is also considered to possess the requisite expertise to perform the duties as Poolia's auditor. During the year, Henrik Nilsson attended two Board meetings at which he gave a verbal and written report on the audit.

The Board's description of internal control over financial reporting

The Board of Directors is responsible for internal control in accordance with the Swedish Companies Act and the Swedish Corporate Governance Code. The internal control description is based on the framework issued by the Committee of Sponsoring Organizations of the Treadway Commission, COSO. The five framework components on which the report is based are the control environment, risk assessment, control activities, information and communication, and monitoring.

Control environment

Effective Board work is the foundation of good internal control. The Board has established structured processes and rules of procedure for its work. An important task of the Board is to develop and approve basic rules and guidelines. Employees have access to the guidelines, via Poolia's intranet and other channels. It is Poolia's aim for the control environment to be permeated by the Company's "good company" values, i.e., adherence to laws and regulations, professionalism and creation of trust.

A further aim of the Board's work is to ensure that the organisation is structured and transparent, with responsibilities and processes that are conducive to the effective management of operational risks and that facilitate goal achievement. Poolia's internal and external reporting is divided according to functions, and the associated responsibility is defined. Responsibility is distributed across the different segments (Poolia Sweden, Poolia Finland and Poolia Germany). The responsibilities of the staff functions are divided into administration, accounting, payroll, finance and IT.

Poolia has a conceptual framework that guides all the decisions and actions throughout the organisation. The basis of this framework is the business plan, our ISO processes, the financial manual and guidelines designed to achieve an efficient, structured and coherent approach within the Company. The guidelines include instructions

for the CEO and the Managing Directors of subsidiaries, the financial policy, information policy and decisionmaking rules. Authorisation rules are in place to enhance control on decisions regarding investment, costs and contractual relations. Regular reviews are conducted to ensure that guidelines and policy documents are up to date. In addition, there are procedures for them to be adapted if so required by external circumstances.

Risk assessment

Risk assessment procedures that are incorporated into operating activities and follow-up processes ensure the preparation of accurate financial reporting. The Financial Managers of the subsidiaries and the CFO have special responsibility for risk analysis, the application of laws and regulations and the quality of financial reporting.

Integrated systems, established monitoring procedures and analysis of key ratios are important components in identifying risks of material misstatement in the financial statements. Risk assessment, risk identification and improvement of procedures is based on the CEO defining specific areas of the financial reporting process that will be prioritised and focused on. The CFO and Financial Managers of the subsidiaries work though the focus areas together. The process aims to ensure that material risks are identified and any required measures are reported to the CEO and Managing Directors of the subsidiaries. Areas covered include procedures for monitoring liquidity, trade receivables, deviation analyses, credit, insurance cover, revenue and payroll processes, management processes and approval and authorisation processes.

To monitor market trends, the Managing Directors of the subsidiaries prepare monthly reports, which show the company's position in relation to the market and competitors. The reports are followed with regard to the market, demand, earnings trends and any necessary organisational changes.

Control activities

The Company has built up a control structure based on its most critical processes. The purpose is to prevent, detect and correct any errors or discrepancies that arise in financial reporting, and to prevent irregularities and different types of incidents that may be hostile to the Company. The risks that are monitored are those considered most significant according to the risk assessment.

The CFO and the Financial Managers of the subsidiaries set requirements for accurate financial reporting and relevant monitoring and, if necessary, deviation analysis. Monitoring is a continuous process and mainly takes the form of monthly reports which the Financial Managers of the subsidiaries prepare and present to the CFO, CEO and Managing Directors of the subsidiaries. Poolia's monthly reports include financial and non-financial key performance indicators.

The reports are reviewed by the Managing Director and Financial Managers of each country and the CEO, CFO and/or Financial Controller at monthly teleconferences. Monthly reports are based on information from the financial system. Standardisation of reporting makes it easier to review and monitor the growth, performance and risk analysis for each country.

Information and communication

The Company's main policy documents in the area of regulations, guidelines and manuals, insofar as they relate to financial reporting, are regularly updated and communicated via the intranet, internal meetings and other targeted distribution of policy documents. Overall strategic polices are communicated throughout the organisation to ensure that all employees have fully understood their content and thereby act in accordance with them.

To ensure effective dissemination of internal communication, there are guidelines and procedures on how financial information is communicated between management and employees, and between the Parent Company and subsidiaries. The Board has established an information policy on communication with external parties. The policy provides guidelines on what should be communicated, who should communicate it and how it should be communicated. The purpose of the policy is to ensure that information obligations are fulfilled in a correct and complete way. For shareholders and other external stakeholders wishing to follow the Company's progress, up-to-date financial information is published regularly on Poolia's website.

Monitoring

Monitoring internal control and its effectiveness is an integral part of day-to-day operations. The Board's work includes regular monitoring of the effectiveness of internal controls and discussion of significant issues in the area of accounting and reporting.

The Board's evaluation of the business performance and results is part of the responsibility structure, and is conducted using an appropriate package of reports containing results, forecasts and analyses of key factors. Control and monitoring of activities comes under the management of the Parent Company and subsidiaries, but is also the responsibility of employees in the course of their duties. Any shortcomings and errors in the internal control and monitoring systems must be reported to the immediate superior.

Policies, guidelines and procedures are updated and evaluated as necessary, but at least annually. The Board is responsible for communicating and keeping general policy documents updated. The Managing Director or head of the staff function concerned is responsible for other documents. Recommendations from external auditors conducting independent audits of internal controls within the framework of the statutory audit are reported to management and the Board. The recommendations are followed up and, if necessary, measures are implemented to control the potential risk.

Poolia will continue to work pro-actively on risk management and internal controls by annually assessing and updating internal policy documents and guidelines. The aim of this work is to ensure that internal controls are maintained at a satisfactory level.

Poolia AB's role in the Group is to work on overall policy and development issues, Group-wide support functions and the provision of support to the operational entities. The country managers have full responsibility for the operations in their own country, including the income statement and balance sheet, sales and marketing, finance, business development and HR.

GROUP MANAGEMENT

Morten Werner CEO of Poolia AB, Managing Director of Poolia Sweden Born 1949 Employed at Poolia since 2014.

education: MBA, University of Southern California.

background: Managing Director of Hasselfors Garden, Pandora Management, Orasolv and Feelgood Svenska, Managerial positions at GE Capital.

shareholding: 200,000 and 200,000 through insurance.

Fredrik Johansson CFO Born 1981 Employed at Poolia since 2017.

education: Master's degree in Economics, specialising in Business Administration, Uppsala University.

background: CFO Wasa Kredit AB, Audit Senior at Deloitte AB.

shareholding: 0

Tobias Rebenich Managing Director of Poolia Germany Born 1971 Employed at Poolia since

education: Banking apprenticeship, Chamber of Commerce, Economics studies.

2011.

background: Area Manager, Amadeus FiRe Germany, Senior Manager, Robert Half Germany, Branch Manager, Manpower Germany.

shareholding: 0

Jose Majanen Managing Director of Poolia Finland Born 1969 Employed at Poolia since 2007.

education: Degree in Economics and Sociology, University of Bremen.

background: Regional Manager, Manpower Finland, Industrial Liaison Officer, Centre for International Mobility in Finland.

shareholding: 0

BOARD OF DIRECTORS

Björn Örås Chairman of the Board Born 1949 Board Member since establishment in 1989.

education: B.A. (Econ), Lund University.

background: Product Manager, Pierre Robert, Product Group Manager, IKEA, MD and Advertising Agency Director, Appel & Falk, Blanking, Managing Director, Poolia. Own business: Björn Örås Marketing, Karat Utveckling, SMA.

directorships: Chairman of Uniflex AB, Dedicare AB, Bro Hof Slott.

shareholding: 7,275,260

Lennart Pihl Born 1950 Board Member since 2013. education: M.Sc (Econ).

background: Own consulting business since 2004. Formerly MD of Bong Ljungdahl and Acrimo. Consultant assignments:

interim MD of Green Cargo, Konstruktions-Bakelit, Brio Lek & Lär and AuraLight directorships: Chairman of Nordic Room

Improvement AB, Green Cargo AB, Bertex AB, Olivetree AB, Ingape AB, Heatex Holding AB, Board member of Avega Group AB. shareholding: 10,000

Marika Skärvik Born 1963 Board Member since 2015.

education: Market economy at RMI Berghs. Studies in Economics and Law at Stockholm University.

background: MD Performance Potential AB. Previous positions as Sales Manager Saven AB, Business Development Microsoft, MD NetCenter, Business Area Manager Tieto, MD Carlson Wagonlit, MD Hudson Norden.

directorships: Chairman of STCC AB, Board member of Optronic i Norden AB, Springlife AB.

shareholding: 500

Dag Sundström Born 1955 Board Member since 2011.

education: M.Sc. (Eng. Physics), Royal Institute of Technology, Stockholm, M.Sc. (Econ), Stockholm School of Economics.

background: Management Consultant, Director, McKinsey & Company Inc., Managing Director and CEO, Teleca AB, XLENT Consulting Group, own business Dag Sundström Consulting AB, InterPares Management Consultants.

directorships: Raoul Wallenbergskolorna AB, DS Holding AB, Dedicare AB.

shareholding: 3,000

Anna Söderblom Born 1963 Board Member since 2013.

education: Mathematics graduate, Lund University, PhD (Econ), Stockholm School of Economics.

background: Researcher and tutor at Stockholm School of Economics. Formerly Marketing Director at Microsoft Nordic and Posten Brev, and Investment Manager at Industrifonden.

directorships: Chairman of Avega Group AB, Advenica AB, Board member of Almi Företagspartner AB, Excanto AB, Länsförsäkringar Liv Försäkringsaktiebolag.

shareholding: 15,000

SWEDISH MANAGEMENT TEAM

Morten Werner CEO of Poolia AB, Managing Director of Poolia Sweden Born 1949 Employed at Poolia since 2014.

education: MBA, University of Southern California.

background: Managing Director of Hasselfors Garden, Pandora Management, Orasolv and Feelgood Svenska, Managerial positions at GE Capital.

shareholding: 200,000 and 200,000 through insurance.

Charlotte Järeby Hellman Deputy Managing Director Born 1973 Employed at Poolia since 2001. education: Service Management programme,

Gothenburg University. background: Account

Manager Manpower Nyckelkunder, Sales Manager Provobis Frimurarehollet, Linkoping. shareholding: 0

Fredrik Johansson CFO Born 1981 Employed at Poolia since 2017.

education: Master's degree in Economics, specialising in Business Administration, Uppsala University.

background: CFO Wasa Kredit AB, Audit Senior at Deloitte AB.

shareholding: 0

Anna Svanberg Deputy Managing Director Born 1966 Employed at Poolia since 2015.

education: B.A. in Information Science, Political Science, Psychology, Uppsala University.

background: Business Area Manager, Sales Manager, Regional Manager Manpower, Consultant Patos Konsult AB, CEO Proffice Care.

shareholding: 0

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Amounts in SEK 000	Note	2016	2015
operating income	6	784,751	757,115
operating expenses
Other expenses	9,16	-61,290	-58,169
Staff costs	8	-696,768	-680,003
Depreciation and amortisation of assets	15,16	-3,655	-2,937
Operating profit/loss	7	23,038	16,006
profit/loss from financial investments
Interest and similar income	11	106	6,802
Interest and similar expense	12	-2,591	-322
Profit/loss after financial items		20,553	-22,486
Tax	13	-6,803	-6,528
Profit/loss for the year from continuing operations		13,750	15,958
discontinued operations
Profit/loss for the year from discontinued operations	26	-2,058	-662
Profit/loss for the year		11,692	15,296
other comprehensive income
items that may be reclassified to profit or loss
Translation differences	4	2,951	-7,629
Comprehensive income for the year		14,643	7,667
profit/loss for the year attributable to:
Shareholders of the Parent		11,692	15,296
Non-controlling interests		0	0
Basic and diluted earnings per share from continuing and
discontinued operations, SEK	21	0.68	0.89
Basic and diluted earnings per share from continuing operations, SEK	21	0.80	0.93
comprehensive income for the year attributable to:
Shareholders of the Parent		14,643	7,667
Non-controlling interests		0	0

CONSOLIDATED BALANCE SHEET

Amounts in SEK 000	Note	31/12/2016	31/12/2015
assets
non-current assets
Goodwill	14	18,689	18,504
Other intangible assets	15	4,172	5,647
Property, plant & equipment	16	944	1,679
Deferred tax assets	13	11,195	11,624
Total non-current assets		35,000	37,454
current assets
Trade receivables	18,25	115,409	115,597
Current tax receivables		7,026	8,873
Other receivables		280	160
Prepayments and accrued income	19	51,613	50,579
Cash and cash equivalents	25,27	36,631	20,204
Total current assets		210,959	195,413
Total assets		245,959	232,867
equity and liabilities
equity
Share capital	20	3,424	3,424
Other paid-in capital		187,658	187,658
Provisions		-5,697	-8,648
Retained earnings	21	-103,813	-106,944
Non-controlling interests		9	9
Total equity		81,581	75,499
current liabilities
Current liabilities to credit institutions	23	14,163	1,874
Trade payables	25	16,538	22,014
Other liabilities		49,761	47,388
Accruals and deferred income	24,25	83,916	86,092
Total current liabilities		164,378	157,368
Total equity and liabilities		245,959	232,867

CONSOLIDATED CASH FLOW STATEMENT

Amounts in SEK 000	Note	2016	2015
operating activities
Profit/loss after financial items		20,553	22,486
non-cash items
Depreciation, amortisation and impairment charges in the income statement		3,655	2,937
Exchange gains/losses		2,025	-6,702
Income tax paid		-6,426	-1,461
Cash flow from operating activities before changes in working capital		19,807	17,260
changes in working capital
Increase (–)/decrease (+) in current receivables		-966	-11,720
Increase (+)/decrease (–) in current liabilities		-5,604	12,824
Cash flow from operating activities, continuing operations		13,237	18,364
Cash flow from operating activities, discontinued operations		-765	–
investing activities
Acquisition of equipment		-396	-1,091
Acquisition of intangible assets		-977	-937
Acquisition of shares in subsidiaries	22	–	-10,697
Cash flow from investing activities, continuing operations		-1,373	-12,725
Cash flow from investing activities, discontinued operations		–	–
financing activities
Borrowings/Repayment of borrowings from credit institutions		12,289	-3,610
Dividends to shareholders		-8,561	–
Cash flow from financing activities, continuing operations		3,728	-3,610
Cash flow from financing activities, discontinued operations		–	–
Cash flow for the year, continuing operations		15,592	2,029
Cash flow for the year, discontinued operations	26	-765	–
Cash and cash equivalents at beginning of year		20,204	18,973
Exchange differences		1,600	-798
Cash and cash equivalents at end of year	27	36,631	20,204

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

		Other paid-in	Translation	Retained	Non- controlling	Total
Amounts in SEK 000	Share capital	capital	reserve	earnings	interest	equity
Opening balance, 1 Jan 2015	3,424	187,658	- 1,019	-122,240	9	67,833
comprehensive income
Profit/loss for the year				15,296	0	15,296
Other comprehensive income
Items that will be reclassified to the income statement
Translation differences			-7,629		–	-7,629
Closing balance, 31 Dec 2015	3,424	187,658	-8,648	-106,944	9	75,499
comprehensive income
Profit/loss for the year				11,692	0	11,692
Other comprehensive income				–		–
Items that will be reclassified to the income statement
Translation differences			2,951		–	2,951
Owner transactions
Dividends to shareholders				-8,561		-8,561
Closing balance, 31 Dec 2016	3,424	187,658	-5,697	-103,813	9	81,581

The Group's accumulated translation differences recognised directly in equity totalled -5,697 (-8,648).

	STATEMENT OF COMPREHENSIVE INCOME, PARENT COMPANY
--	---------------------------------------------------	--	--

Amounts in SEK 000	Note	2016	2015
operating income		16,767	20,385
operating expenses
Other external expenses	9	-8,482	-11,440
Staff costs	8	-10,264	-10,638
Depreciation and amortisation of assets	15,16	-719	-590
Operating profit/loss		-2,698	-2,283
profit/loss from financial investments
Profit/loss from investments in Group companies	10	5,740	-2,989
Group contributions received		8,560	741
Interest and similar income	11	80	4,316
Interest and similar expense	12	-2,886	-529
Profit/loss after financial items		8,796	-744
Tax	13	-571	-784
Profit/loss for the year		8,225	-1,528
other comprehensive income
Other comprehensive income		–	–
Total comprehensive income for the year		8,225	-1,528

BALANCE SHEET, PARENT COMPANY

Amounts in SEK 000	Note	31/12/2016	31/12/2015
assets
non-current assets
Intangible assets
Other intangible assets	15	761	977
Total intangible assets		761	977
Property, plant and equipment
Equipment	16	0	0
Total property, plant and equipment		0	0
Financial assets
Investments in Group companies	17, 29	23,588	23,588
Deferred tax assets	13	3,117	3,688
Total financial assets		26,705	27,276
current assets
Current receivables
Receivables from Group companies		51,636	37,681
Other receivables		432	559
Prepayments and accrued income	19	135	518
Total current receivables		52,203	38,758
Cash and cash equivalents		–	–
Total assets		79,669	67,011

BALANCE SHEET, PARENT COMPANY, CONT'D

Amounts in SEK 000	Note	31/12/2016	31/12/2015
equity and liabilities
equity
Restricted equity
Share capital	20	3,424	3,424
Total restricted equity		3,424	3,424
Unrestricted equity
Retained earnings	21	5,696	15,785
Profit/loss for the year	21	8,225	-1,528
Total unrestricted equity		13,921	14,257
Total equity		17,345	17,681
current liabilities
Trade payables		289	1,371
Liabilities to Group companies		44,623	42,737
Current liabilities to credit institutions	23,25	14,163	1,874
Other liabilities		976	969
Accruals and deferred income	24	2,273	2,378
Total current liabilities		62,324	49,329
Total equity and liabilities		79,669	67,011

CASH FLOW STATEMENT, PARENT COMPANY

Amounts in SEK 000	Note	2016	2015
operating activities
Profit/loss after financial items		8,796	-744
non-cash items
Depreciation, amortisation and impairment charges in the income statement		719	590
Financial items		-145	-1,219
Group contributions		-8,560	-741
Cash flow from operating activities before changes in working capital		810	-2,114
changes in working capital
Increase (–)/decrease (+) in current receivables		-4,741	-11,904
Increase (+)/decrease (–) in current liabilities		706	17,916
Cash flow from operating activities		-3,225	3,898
investing activities
Acquisition of intangible assets		-503	-288
Cash flow from investing activities		-503	-288
financing activities
Borrowings/Repayment of borrowings from credit institutions		12,289	-3,610
Dividends to shareholders		-8,561	–
Cash flow from financing activities		3,728	-3,610
Cash flow for the year		0	0
Cash and cash equivalents at beginning of year		–	–
Cash and cash equivalents at end of year	27	–	–

STATEMENT OF CHANGES IN EQUITY, PARENT COMPANY

Amounts in SEK 000	Share capital	Retained earnings	Profit/loss for the year	Total
Opening balance, 1 Jan 2015	3,424	35,025	-19,240	19,209
Profit/loss for previous year brought forward		-19,240	19,240	0
comprehensive income
Profit/loss for the year			-1,528	-1,528
Other comprehensive income		–	–	–
Closing balance, 31 Dec 2015	3,424	15,785	-1,528	17,681
Profit/loss for previous year brought forward		-1,528	1,528	0
total comprehensive income
Profit/loss for the year			8,225	8,225
Other comprehensive income		–	–	–
owner transactions
Dividends to shareholders		-8,561	–	-8,561
Closing balance, 31 Dec 2016	3,424	5,696	8,225	17,345

NOTES All amounts are in SEK thousands, unless otherwise specified

note 1 general information

The Board of Directors approved the consolidated financial statements for publication on 11 April 2017, and they will be presented for adoption at the Parent Company's Annual General Meeting on 3 May 2017.

note 2 accounting policies

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) as adopted by the European Union. The Group also applies RFR 1 Supplementary Accounting Rules for Groups, which specifies additional disclosures to IFRS that are required under the Swedish Annual Accounts Act. The Parent Company's annual financial statements have been prepared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities.

The International Accounting Standards Board (IASB) has published certain new and amended standards that have come into force and are applicable for the 2016 financial year. These have not had any material effect on the Group's financial reports.

New and amended standards and interpretations that have been issued but are effective for annual periods beginning after 1 January 2017 have not yet been applied by the Group.

IFRS 9 Financial Instruments will replace IAS 39 Financial Instruments: Recognition and Measurement. The standard has been issued in phases, with the version issued in July 2014 replacing all previous versions. Application of IFRS 9 is mandatory for annual periods beginning on or after 1 January 2018 and has now been adopted by the EU. IFRS 9 contains new requirements for classification and measurement of financial instruments, derecognition and impairment, as well as general rules on hedge accounting. Management has not yet made a detailed analysis of the effects of the application of IFRS 9.

IFRS 15 Revenue from Contracts with Customers, issued on 28 May 2014, will replace IAS 18 Revenue and IAS 11 Construction Contracts. IFRS 15 provides a revenue recognition model for virtually all revenue arising from contracts with customers, except for leases, financial instruments and insurance contracts. The basic principle for revenue recognition under IFRS 15 is that an entity should recognise revenue in a manner that reflects the transfer of the promised goods or services to the customer, and at the amount to which the entity expects to be entitled in exchange for the goods or services. Revenue is recognised when the customer obtains control of the goods or service. IFRS 15 provides considerably more guidance for specific areas and there are also a number of disclosure requirements. IFRS 15, which was adopted by the EU in 2016, is effective for annual reporting periods beginning on or after 1 January 2018 and earlier application is permitted. Management has not yet made a detailed analysis of the effects of the application of IFRS 15.

IFRS 16 Leases was issued on 13 January 2016 and will replace IAS 17 Leases. IFRS 16 introduces a right of use model and requires the lessee to recognise virtually all leases in the balance sheet, with no classification into operating and financial leases. Leases with a lease term of 12 months or less and leases where the underlying asset has a low value are exempt from recognition. Depreciation of the asset and interest charges on the liability are recognised in the income statement. The standard contains more disclosure requirements than the current standard. For lessors, IFRS 16 does not involve any real differences compared with IAS 17. IFRS 16 is effective for annual reporting periods beginning on or after 1 January 2019 and earlier application is permitted provided IFRS 15 is applied at the same time. The standard is expected to be adopted by the EU in 2017. Management has not yet made a detailed analysis of the effects of the application of IFRS 16.

Basis of consolidation

The consolidated financial statements include Poolia AB (publ) and all subsidiaries. Information on the Group's composition can be

found in note 17. The Group does not have any significant non-controlling interests. Subsidiaries are entities over which the Group has control. Control exists when the Group has exposure or rights to variable returns from its holding in an entity and the ability to affect those returns through power over the entity. A subsidiary is a company in which the Group owns or controls more than half of the voting rights. Subsidiaries are consolidated from the date on which control is transferred to the Group until the date on which control ceases.

Subsidiaries are accounted for using the acquisition method. Identifiable assets acquired and liabilities and contingent liabilities assumed are measured at their acquisition date fair value. The acquisition date purchase consideration also includes assets and liabilities arising from any contingent consideration agreement. All acquisitionrelated costs are recognised in the income statement as incurred. If the cost of the acquired shares exceeds the total fair value of identifiable assets acquired and liabilities assumed, the difference is reported as goodwill. If the cost is less than the fair value calculated as above, the difference is recognised immediately in the income statement.

Non-controlling interests are initially measured as the minority's proportionate share of the fair value of the net assets. These interests are recognised in the consolidated financial statements as a component of equity, separately from the Parent Company's equity. Items relating to non-controlling interests are included in the consolidated statement of comprehensive income and reported separately from the Parent Company's income and comprehensive income as a proportion of these results for the period.

Changes in the Parent Company's interest in a subsidiary that do not result in a loss of control are reported as equity transactions (i.e., owner transactions). Any difference between the amount by which non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and classified as attributable to owners of the Parent.

All intra-Group transactions and balances are eliminated on consolidation.

Segment reporting

The Poolia Group's segment information is be presented using a management approach, and operating segments are identified on the basis of internal reporting to the Company's chief operating decision-maker. The Group has identified the Parent Company's Managing Director as its chief operating decision maker, and the internal reporting system, which is used by the Managing Director to review operating results and make decisions about the allocation of resources, is the basis for the segment information presented. Poolia's segment reporting format is geographical regions. Poolia's geographical segments are Sweden, Finland and Germany. Poolia UK is reported under discontinued operations.

All of the segments use the same accounting policies as those applied by the Group.

Revenue recognition

• (a) Sale of services: Operating income includes the sale of services in the areas of Temporary staffing and Permanent placement. Revenues are recognised in the accounting period in which the services are rendered.
• (b) Interest income: Interest income is distributed over the term of the interest-bearing investment using the effective interest method.
• (c) Dividend income: Dividend income is recognised when the right to receive payment is established.

Leases

A finance lease is an agreement that transfers from the lessor to the lessee substantially all the risks and rewards incident to ownership of an asset. All other leases are classified as operating leases. The Group as lessee

Assets held under finance leases are reported under non-current assets in the consolidated balance sheet, and are recognised at the commencement of the lease term at the lower of the fair value of the asset and the present value of the minimum lease payments. The equivalent liability is reported as a liability to the lessor in the balance sheet. Lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated during the lease term in such a way as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The depreciation policy for assets held under financial leases is consistent with that for owned assets. If there is no reasonable certainty that Poolia will take over the asset at the end of the lease the asset is depreciated over the shorter of the lease term or the life of the asset.

For operating leases, the lease payments are recognised as an expense on a systematic basis over the lease term. At present, the Group only has operating leases.

Employee benefits

Employee benefits (wages, paid holidays, paid sick leave etc.) and pensions are recognised as they are earned. Pensions and other post-employment benefits are classified as defined-contribution or defined-benefit plans.

Defined-contribution plans

In the case of defined-contribution plans, the Company pays fixed contributions into a separate independent legal entity and has no obligation to pay further contributions. The costs are recognised in the consolidated income statement as the benefits are earned, which is normally the date on which the premium is paid.

Defined-benefit plans

The only defined-benefit plan in the Group is an ITP plan insured with Alecta. This is a multi-employer plan and is classified a definedbenefit pension plan under IAS 19. However, as Alecta has not been able to provide sufficient information to enable the ITP plan to be reported as a defined-benefit plan, it is reported as a defined-contribution plan.

In Finland there is a statutory old-age and invalidity pension scheme regulated by the Occupational Pension Act which covers all Finnish companies. The pension obligation under the Occupational Pension Act is reported according to the rules for defined-contribution plans, which means that premiums paid are recognised as an expense as the contributions are paid and the benefits are earned.

Foreign currency

Foreign currency transactions in Group entities are reported in the entity's functional currency using the exchange rate prevailing at the transaction date. Foreign currency monetary assets and liabilities are translated at the closing rate on the reporting date. Exchange differences arising on translation are included in net income for the period. Exchange differences on non-current intra-group loans are recognised directly in equity, as this type of balance is not intended to be settled.

When preparing consolidated financial statements, the balance sheets of the Group's foreign operations are translated from their functional currency into Swedish kronor using the closing rate on the reporting date. Income statements are translated using the average rate for the period and any translation differences are recognised in the translation reserve in equity. On disposal of a foreign operation, the cumulative translation difference for that foreign operation is reclassified as part of the gain or loss on disposal. Goodwill and fair value adjustments attributable to the acquisition of an operation with a functional currency other than SEK are accounted for as assets and liabilities in the currency of the acquiree and are translated using the closing rate on the reporting date.

Intangible assets

Goodwill

Goodwill is the amount by which the cost of acquisition exceeds the fair value of the Group's share of the acquired subsidiary's net identifiable assets on the date of acquisition. If the fair value of assets acquired, liabilities assumed and contingent liabilities exceeds the cost of acquisition, the surplus is recognised directly as income in the income statement.

Goodwill has an indefinite useful life and is recognised at cost less accumulated impairment. On disposal of an operation, the residual portion of goodwill attributable to the operation is included in the calculation of the gain or loss on disposal.

Other intangible assets

Other intangible assets, primarily customer relationships and new investments and improvements to administrative systems, are carried at cost less accumulated amortisation and impairment losses. Internally generated intangible assets are only recognised as assets if an identifiable asset has been created, it is likely that the asset will generate future economic benefits and the cost of developing the asset can be measured reliably. If the asset does not qualify for recognition as an internally generated asset in the balance sheet, development expenditure is recognised as an expense in the period in which it is incurred.

Customer relationships are amortised over 5 years. Other intangible assets are amortised on a straight-line basis over their estimated useful life, which has been defined as 3–5 years. Regular adjustments to basic investments are normally written off directly as an IT expense, or are capitalised for up to 3 years.

Property, plant and equipment

Items of property, plant and equipment are recognised as assets in the balance sheet when it is probable that future economic benefits associated with the asset will flow to the Company and the cost of the asset can be measured reliably. Property, plant and equipment, mainly equipment and computers, is recognised at cost less accumulated depreciation and impairment losses. Items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful life.

The following percentages have been applied: Equipment and computers: 20-33%

Impairment

On each reporting date, an assessment is made to determine whether there is any indication of impairment of the Group's assets. If this is the case, the asset's recoverable amount is calculated. Goodwill is allocated to cash-generating units and is subject to annual impairment testing, along with intangible assets with indefinite useful lives and intangible assets not yet available for use, whether or not there is any indication of impairment. However, impairment testing is carried out more frequently if there are indications that an asset may be impaired. The recoverable amount is the higher of an asset's value in use and the amount that would be received if it were sold to an independent party (the net selling price). The value in use is the present value of future cash inflows and outflows attributable to the asset during the period when it is expected to be used in the business, plus the present value of the net selling price at the end of its useful life. If the calculated recoverable amount is less than the carrying amount, the asset is written down to its recoverable amount

and an impairment loss is recognised in the income statement. Impairment losses are reversed if there has been a change in the assumptions on which the original impairment was based or if the impairment no longer exists. An impairment loss is reversed only to the extent that it does not increase the carrying amount to more than what the depreciated historical cost would have been if the impairment had not been recognised. Reversals of impairment are recognised in the income statement. Goodwill impairment is not reversed. Taxes

The Group's total income tax consists of current tax and deferred tax. Current tax is the amount of income taxes payable or recoverable in respect of the taxable profit or loss for the current year and any adjustments relating to prior years. Deferred tax is recognised for differences between the carrying amounts of the Company's assets and liabilities and their corresponding tax bases. Deferred tax is accounted for using the balance sheet liability method. Deferred tax liabilities

are recognised for essentially all taxable temporary differences, while deferred tax assets are recognised to the extent that it is probable that the amounts can be utilised against future taxable profit.

The carrying amount of a deferred tax asset is reviewed at each reporting date and is reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the deferred tax asset to be utilised fully or partly.

Deferred tax is calculated using the tax rates that are expected to apply in the period when the carrying amount of the asset or liability is recovered or settled. Deferred tax is reported as income or expense in the income statement, except when it relates to transactions or events that have been recognised directly in equity, in which case, the deferred tax is also recognised directly in equity.

Deferred tax assets and deferred tax liabilities are offset when they are attributable to the same tax authority and the Group intends to settle on a net basis.

Provisions

A provision is recognised in the balance sheet when the Company has an obligation, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each reporting date

Financial instruments

A financial asset or liability is recognised in the balance sheet when the Company becomes a party to the contractual provisions of the instrument. A financial asset is derecognised when the rights to the cash flows from the financial asset are realised, expire or the Company loses control of them. A financial liability is derecognised when the contractual obligation is discharged or extinguished in some other way.

Acquisitions and disposals of financial assets are recognised on the trade date except when the Company acquires or disposes of listed securities, in which case settlement date accounting is applied instead. Financial instruments are recognised at amortised cost or fair value, depending on their initial classification under IAS 39.

At each reporting date, the Company assesses whether there is objective evidence that a financial asset or group of financial assets is impaired.

Fair value measurement of financial instruments

Official quoted market prices on the reporting date are used to measure the fair value of current investments and borrowings. If a market for a financial instrument is not available, the fair value is established by using generally accepted methods such as discounting future cash flows to the quoted market rate for each period. Translation to SEK is conducted at the exchange rate quoted on the reporting date.

Offsetting financial assets and liabilities

Financial assets and a financial liabilities may be offset and the net amount presented in the balance sheet if the Company has a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

Cash and cash equivalents

Cash and cash equivalents consist of cash balances with financial institutions and short-term deposits with an original maturity of 3 months or less, which are subject to an insignificant risk of changes in value. Cash and cash equivalents are recognised at their nominal amounts.

Short-term investments

Short-term investments are measured at amortised cost.

Trade receivables

Trade receivables are classified as "Loans and receivables", and as such are measured at amortised cost. As the expected maturity is short, the value is recognised at a nominal amount without discounting. Doubtful debts are individually assessed and a provision is recognised in the balance sheet based on the recoverable amount. Any impairment is reported under operating expenses.

Other receivables

Other receivables are receivables that arise when the Company provides money without any intention of trading the receivable. If the expected holding period is less than 12 months they are reported as other current receivables. These receivables are classified as "Loans and receivables" under IAS 39. Assets in this category are carried at amortised cost.

Derivative instruments

Poolia did not have any derivative instruments in 2016 and 2015.

Liabilities

Poolia's amounts due to credit institutions, trade payables and other liabilities are classified as Other liabilities and are measured at amortised cost. Any borrowing costs are recognised in profit or loss over the term of the loan using the effective interest method. Non-current liabilities are due for settlement more than 12 months after the reporting date, while current liabilities are due within 12 months of the reporting date As trade payables are expected to be of short duration, the liability is recognised at a nominal amount without discounting.

The Parent Company's accounting policies

The Parent Company's annual financial statements have been prepared in accordance with the Swedish Annual Accounts Act, RFR 2 Accounting for Legal Entities and applicable statements from the Swedish Financial Reporting Board. RFR 2 requires the Parent Company, as a legal entity, to prepare its annual financial statements in compliance with all IFRS standards and IFRIC interpretations endorsed by the EU, to the extent possible within the framework of the Swedish Annual Accounts Act and the Pension Obligations Vesting Act, taking into account the relationship between tax expense (income) and accounting profit. The recommendation also specifies exceptions from and additions to IFRS. The amendments to RFR 2 Accounting for Legal Entities, effective for the financial year 2016, have not had any material effect on the Parent Company's financial reports. The amendments effective from 1 January 2017 are also not expected to have any material effect. The Parent Company's financial reporting is consistent with the Group's accounting policies, except as stated below.

Taxes

Swedish tax laws allow transfers to special reserves and funds. This means that companies can, within certain limits, allocate and retain reported profits in the business without such profits being subject to immediate taxation. Untaxed reserves are not taxed until they are reversed. Should the business incur a loss, the untaxed reserves may be used to cover the loss without being taxed.

Accumulated accelerated depreciation

Tax depreciation allowances are calculated in accordance with current tax legislation. Accelerated tax depreciation allowances are regarded as accelerated depreciation and reported as an untaxed reserve. Changes in this reserve are recognised as an appropriation in the income statement.

Group contributions

Group contributions received are accounted for in the same way as ordinary dividends and are therefore reported under finance income.

note 3 significant accounting estimates and judgements

Accounting estimates and judgements are evaluated regularly. They are largely based on historical experience and other factors, including expectations about future events that are considered reasonable in the present circumstances.

Poolia makes judgements and assumptions concerning the future. These result in accounting estimates, which, by definition, rarely correspond with the actual outcome. Estimates and assumptions that involve considerable risk of material adjustments to the carrying amounts of assets and liabilities during the next financial year are described below.

a. Goodwill impairment testing

Poolia conducts annual goodwill impairment testing, in accordance with the accounting policy described in note 2. However, impairment testing is carried out more frequently if there are indications of impairment during the year.

The recoverable amounts for cash-generating units have been determined by calculating the value in use. These calculations require certain estimates to be made. Further information and a sensitivity analysis can be found in note 14.

b. Income taxes

Poolia has a total of SEK 11.2 (11.6) million in recognised deferred tax assets arising mainly from historical tax losses in the business. These tax assets represent 85% (70%) of the total potential tax that can be recovered when operations generate taxable profits. The tax assets are calculated according to current tax legislation in the countries concerned and the expected development of taxable profit for the different countries.

If future taxable profit is lower than management's estimate at 31 December 2016, this may mean that the tax assets have a lower value than the figure now reported.

Conversely, if it is higher, the actual tax assets could exceed the reported figure.

note 4 financial risk management

Poolia is exposed to various types of financial risks. The Company's overall policy for financial risk management is to minimise the negative effects of market fluctuations on the Group's earnings at all times. The Group's financial policy is established annually by the Board and regulates how financial risks are managed and what financial instruments may be used.

Currency risk

Currency risk is the risk of the Group's earnings and equity being adversely affected by exchange rate movements. Poolia's currency exposure arises from intra-group financing and the translation of foreign subsidiaries' balance sheets and income statements to Swedish kronor (translation exposure).

The translation exposure concerns translation from EUR, GBP and DKK. The financial policy states that translation exposure shall not be hedged. Translation of foreign subsidiaries had a positive effect of 2,951 on consolidated equity in 2016, compared with a negative effect of 7,629 the previous year.

Poolia does not have any other currency exposure at present.

currency effects in the consolidated income statement 2016 (2015) sek millions

Currency	Operating income Operating profit/loss	Net profit/loss
EUR	2.8(6.3)	0.2(0.5)	0.2(0.4)
Total	2.8(6.3)	0.2 (0.5)	0.2 (0.4)

translation exposure in the consolidated balance sheet, net of any tax effects 2016 (2015) sek millions

Currency	Net Investment	Effect on equity of 1% change
EUR	89.5(75.3)	0.9(0.8)
DKK	1.6(1.0)	0.2(0.0)
GBP	-16.6(-14.9)	0.2(0.1)

Interest rate risk

Interest rate risk is the risk that the Group's net interest income will be adversely affected by changes in market interest rates. The Group's interest rate risk exposure was insignificant at the reporting date. Poolia does not have any significant holdings of interest-bearing financial liabilities. The Group has an overdraft facility of SEK 40 (40) million, SEK 14.2 (1.9) million of which had been utilised at the reporting date. Interest-bearing financial assets consist primarily of unrestricted bank funds. A one percentage point change in market interest rates would affect all of the Group's interest-bearing assets and liabilities. The impact on earnings would be SEK 0.1 million.

Credit and counterparty risk

Credit and counterparty risk is the risk that the counterparty to a transaction will be unable to discharge its obligations, thereby causing the Group to incur a loss. The Group is exposed to credit and counterparty risk when excess liquidity is invested in financial assets. In order to limit counterparty risk, only counterparties with a high credit rating in accordance with the financial policy are accepted. There were no derivative instruments in 2016 and 2015.

Commercial credit risk within the Group is minimal as there is no significant credit risk concentration in respect of a particular client, counterparty or geographical region. The maximum credit risk corresponds to the carrying amount of Poolia financial assets.

Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in obtaining funds to meet its obligations associated with financial instruments. At present, Poolia's cash and cash equivalents are placed in accounts or short-term deposits with banks. The Group currently has no need of refinancing. See the maturity analysis in note 25 .

note 5 intra-group purchases and sales

The Parent Company's net sales comprise the provision of services to subsidiaries. 11.8% (13.5%) of the Parent Company's other external expenses and –% (–%) of its staff costs relate to purchases from other Group companies.

note 6 operating income

Operating income by service area

		SEK millions	Change		Share %
Group	2016	2015	%	2016	2015
Temporary staffing	687.3	673.1	2.1	88	89
Permanent placement	97.4	84.0	16.0	12	11
Total	784.7	757.1	3.6	100	100

note 7 segment information

Poolia's segment reporting is based on internal reporting, which means that the segment reporting format is geographical regions. Poolia's geographical segments are Sweden, Finland and Germany. Poolia UK is reported under discontinued operations. Poolia UK's operations were divested on 28 February 2014. No single customer accounts for more than 10% of the Group's operating income.

continuing operations discontinued operations
2016 SEK 000	Sweden	Finland		Germany Group-wide	Total	UK	Elimination	Total
operating income
Temporary staffing	480,732	38,110	168,497		687,339	–		687,339
Permanent placement	71,996	3,777	21,639		97,412	–		97,412
Operating income	552,728	41,887	190,136		784,751	–		784,751
Operating profit/loss	5,148	949	16,941		23,038	-765		22,273
Finance income								106
Finance costs								-2,741
Tax								-7,946
Profit/loss for the year								11,692
Assets	135,798	20,200	108,468	-25,704	238,762	–	7,197	245,959
Liabilities	-115,536	-8,413	-28,617	-1,922	-154,488	-13,384	3,494	-164,378
Investments	1,011	163	199	–	1,373	–		1,373
Depreciation/amortisation and impairment	-3,379	-49	-227	–	-3,655	–		-3,655

continuing operations			discontinued operations
2015 SEK 000	Sweden	Finland		Germany Group-wide	Total	UK	Elimination	Total
operating income
Temporary staffing	466,237	46,602	160,303		673,142	–		673,142
Permanent placement	62,335	3,294	18,344		83,973	–		83,973
Operating income	528,572	49,896	178,647		757,115	–		757,115
Operating profit/loss	-1,606	1,212	16,400		16,006	-662		15,344
Finance income								6,802
Finance costs								-322
Tax								-6 528
Profit/loss for the year								15,296
Assets	153,431	17,807	88,384	-8,008	251,614	402	-19 149	232 867
Liabilities	-66,221	-16,420	-69,923	-591	-153,155	-15,321	11,108	-157,368
Investments	11,963	–	168	–	12,131	–		12,131
Depreciation/amortisation and impairment	-2,686	–	-251	–	-2,937	–		-2,937

note 8 personnel

		No. of employees	Of which male
Average no. of employees	2016	2015	2016	2015
Parent	7	7	3	3
Subsidiaries	1,462	1,346	499	476
Group total	1,469	1,353	502	479

		No. of employees	Of which male
Geographical breakdown	2016	2015	2016	2015
Sweden	944	823	288	252
Finland	101	115	64	79
Germany	424	415	150	148
Group total	1,469	1,353	502	479

The Parent Company's Board of Directors consists of three men and two women. Other senior executives in the Group consisted of three men and two women in 2016.

Salaries and other benefits		Senior executives1)	Other employees
SEK 000	2016	2015	2016	2015
Parent	4,011	4,528	1,408	1,438
Subsidiaries	13,779		11,071 461,077	435,334
Group total	17,790		15,599 462,485	436,772

1) Includes current and former Board Members and current and former Managing Directors and other senior executives.

Salaries and other			Salaries and other benefits	Social security contributions		Pension costs
benefits SEK 000		2016	2015	2016	2015	2016	2015
Parent		5,419	5,966	2,159	1,785	1,495	1,705
Subsidiaries			474,856 446,405 126,184 116,999 33,627				29,515
Group total		480,275			452,371 128,343 118,784 35,122 31,220

3,687 (4,011) of the Group's pension costs relate to Boards and Managing Directors.

Senior executives' employment conditions and remuneration

The AGM in April 2016 adopted the Board's proposed guidelines for the remuneration of senior executives. The full Board served as a remuneration committee during the year. In accordance with the decision of the AGM, Parent Company Board fees are 185 per member. The Chairman of the Board Björn Örås receives 500. Morten Werner is entitled to a fixed annual salary of 2,040. In addition, he is entitled to annual performance-based pay of up to 3,672. He has received 2,244 (2,652) in salary and a total of 41 (20) in holiday allowance and deductions for sick leave/leave of absence. Other senior executives consist of the Managing Directors of Poolia Germany and Poolia Finland and the CFO. The Managing Directors of the foreign subsidiaries have a variable salary model based on their company's performance. Other senior executives of the Swedish companies have fixed salaries. With these pay models, the total salaries for other senior executives in 2016 could have been in the range of 4,595 to 5,748, plus holiday pay and deductions for sick leave/leave of absence. Other senior executives received a total of 5,220 (4,658). The Acting CFO did not receive fixed remuneration but worked on a consultancy basis.

The Managing Directors and other senior executives of the companies are entitled to 3 or 6 months' notice for voluntary termination of employment and 3, 9 or 12 months' notice for involuntary termination. There are no agreements on additional termination benefits for senior executives. Morten Werner is entitled to a contribution of 497 in pension and insurance premiums per year. In 2015, the Managing Director had additional pension premiums of 476 under cost neutrality contracts for the Company concerning salaries and non-wage labour costs. Other senior executives are entitled to pension benefits largely in accordance with the regulations of collective agreements under the ITP plan. Some senior executives also have company cars. The value reported under Other benefits in the table below. The minimum retirement age for all senior executives is 65.

Board	Born	Member since	Shareholding
Lennart Pihl	1950	2013	10,000 B
Marika Skärvik	1963	2015	500 B
Dag Sundström	1955	2011	3,000 B
Anna Söderblom	1963	2013	15,000 B
Björn Örås	1949	Founding	4,023,815 A 3,251,445 B

Pensions

The Group's pension plans are defined-contribution plans apart from in Sweden. For salaried employees in Sweden, the ITP 2 plan's defined-benefit retirement and family pension obligations are covered by insurance with Alecta. According to the Swedish Financial Reporting Board's statement UFR 10, Classification of ITP Plans Financed by Insurance in Alecta, this is a multi-employer defined-benefit pension plan. The Company did not have access to sufficient information for the 2016 financial year to report its proportionate share of the plan's obligations, plan assets and costs, which meant that it was not possible to report the plan as a defined-benefit plan. Consequently, the ITP 2 pension plan insured through Alecta is reported as a defined-contribution plan. The premium for the defined-benefit retirement and family pension is calculated individually and is based on factors that include salary, previously earned pensions and the expected remaining period of service. Expected contributions in the next reporting period for ITP 2 insurance covered by Alecta are SEK 10.0 (8.7) million. The Group's share of the total contributions to the plan is 0.058580% (0.04537%), while its share of the total number of active members in the plan is 0.06353% (0.06483%). The collective consolidation level is the market value of Alecta's assets as a percentage of its insurance obligations calculated by reference to Alecta's actuarial methods and assumptions. This is not consistent with IAS 19. The collective consolidation level may normally vary between 125% and 155%. If Alecta's collective consolidation level falls below 125% or exceeds 155%, measures must be taken to create the right conditions for the level to return to the normal range. If the consolidation level is low, an appropriate measure could be to increase the agreed price for new insurance and extension of existing benefits. If the consolidation level is high, premium reductions could be introduced. At the end of 2016, Alecta's surplus, in the form of a collective consolidation level, was 149% (153%). Poolia AB has a pension obligation of 1,431 (1,431) to former Managing Director and CEO Monika Elling, which is covered by payments into endowment insurance (see note 29).

Senior executives 2016 SEK 000	Salary/Board fee	Variable remuneration	Other benefits	Pension cost	Total
Chairman of the Board Björn Örås	500				500
Board member Anna Söderblom	185				185
Board member Marika Skärvik	185				185
Board member Lennart Pihl	185				185
Board member Dag Sundström	185				185
Managing Director and CEO Morten Werner	2,081	204		724	3,009
Other senior executives (5 individuals)	4,595	625	150	812	6,182
Total	7,916	829	150	1,536	10,431
Senior executives 2015 SEK 000	Salary/Board fee	Variable remuneration	Other benefits	Pension cost	Total
Chairman of the Board Björn Örås	500				500
Board member Anna Söderblom	185				185
Board member Marika Skärvik	185				185
Board member Lennart Pihl	185				185
Board member Dag Sundström	185				185
Managing Director and CEO Morten Werner	2,060	612		973	3,645
Other senior executives (4 individuals)	4,190	468	112	706	5,476

note 9 remuneration of auditors

		Group	Parent
SEK 000	2016	2015	2016	2015
Deloitte, annual audit	1,162	770	357	200
Deloitte, other auditing	65	163	–	–
Deloitte, tax advisory services	20	–	20	–
Deloitte, other services	65	225	–	–
Total	1,312	1,158	377	200

The item 'annual audit' refers to the auditor's remuneration for the statutory audit. This comprises examination of the annual financial statements, accounting records and administration of the business by the Managing Director and Board, and fees for advice relating to observations made during the audit. 'Other auditing' refers mainly to the auditing of interim reports.

note 10 profit/loss from investments in group companies

Parent Company SEK 000	2016	2015
Anticipated dividends from subsidiaries	5,740	–
Impairment of receivables from Group companies	–	-2,989
Total	5,740	-2,989

An impairment loss was recognised on receivables from Poolia UK Holdings Ltd in 2015.

note 11 interest and similar income

		Group	Parent
SEK 000	2016	2015	2016	2015
Interest	106	100	80	108
Exchange differences, net	–	6,702	–	4,208
Total	106	6,802	80	4,316

80 (–) of the Parent Company's interest income relates to income from Group companies.

note 12 interest and similar expense

		Group	Parent
SEK 000	2016	2015	2016	2015
Interest	-592	-64	-862	-452
Exchange differences, net	-1,999	–	-2,024	–
Other	–	-258	–	-77
Total	-2,591	-322	-2,886	-529

524 (344) of the Parent Company's interest expenses comprise interest to Group companies. Operating profit/loss for the year was not affected by exchange differences.

note 13 taxes

		Group		Parent
Tax expense for the year SEK 000 2016		2015	2016	2015
Current tax	-6,380	-4,316	–	–
Deferred tax	-423	-2,212	-571	-784
Tax expense for the year	-6,803	-6,528	-571	-784
Relationship between the tax expense for the year and accounting profit
Group SEK 000			2016	2015
Recognised profit/loss before tax			20,553	21,824
Tax based on applicable domestic tax rate in each country			-6,339	-6,660
Tax effect of non-deductible expenses			-226	-289
Tax effect of non-taxable income			–	1,383
Tax effect of non-capitalised tax loss carryforwards			129	-954
Tax effect of prior year adjustments			-367	-8
Tax expense for the year			-6,803	-6,528
Parent CompanySEK 000			2016	2015
Recognised profit/loss after financial items			8,796	-744
Tax based on Swedish tax rate			-1,935	164
Tax effect of non-deductible expenses			-65	-28

Tax effect of non-taxable income	1,263	–
Effect of impairment of receivables from Group companies	–	-658
Tax effect of prior year adjustments	166	-262
Tax expense for the year	-571	-784

Deferred tax assets

Deferred tax, i.e., the difference between the income tax actually reported in this year's and previous years' income statements (expensed tax) and, on the other hand, the income tax that the Company will eventually be charged in respect of the operations of this and previous financial years (full tax), is as follows:

deferred tax assets

Group SEK 000		2016	2015
Relating to the carryforward of unused tax losses		8,960	11,328
Relating to temporary differences		2,235	296
Total tax value		11,195	11,624

Total	296	1,939	2,235
Intangible asset	0	1,590	1,590
Endowment insurance	296	349	645
Temporary difference SEK 000	Opening	Change	Closing

A deferred tax asset is recognised in the consolidated balance sheet for unused tax losses to the extent that they can be utilised by reversing untaxed reserves, or if it is highly probable that they can be utilised in the foreseeable future. Total deferred tax assets in Denmark amounted to 2,035 (2,617) and were not recognised. In Denmark, the right to utilise tax loss carryforwards continues indefinitely.

Deferred tax assets in Sweden amounted to 11,195 (11,624), of which 11,195 (11,624) was recognised. 3,117 (4,417) of this amount relates to the Parent Company.

Tax rates are as follows: Sweden 22%, UK 20%, Finland 20%, Denmark 22% and Germany approx. 32%.

note 14 goodwill
Group SEK 000	2016	2015
Opening cost	139,043	136,907
Through acquisitions	–	6,397
Translation differences	3,977	-4,261
Closing accumulated cost	143,020	139,043
Opening impairment		-120,539 -124,469
Translation differences	-3,792	3,930
Closing accumulated impairment	-124,331	-120,539
Closing balance	18,689	18,504

Goodwill is tested for impairment (including a sensitivity analysis) annually or more frequently if there are indications of impairment. Goodwill is monitored and tested for impairment by management at country level. The countries constitute cash-generating units and their recoverable amounts have been calculated as value in use based on financial budgets approved by the Board. The assessment is based on the 2017 budget and management's net cash flow projections for the next four years based on the most important assumptions, which are income and operating expenses. All assumptions for the five-year forecast are made individually for each cash-generating unit based on its market position and the conditions and development of its market. The forecasts represent management's assessment and are based on external factors, past experience and market expectations. Estimated annual growth for the five-year forecast is between 2.5% and -5 %. For precautionary reasons, growth has not been estimated for a period beyond five years. Poolia's pre-tax weighted average cost of capital for 2016 was 14.4% (14.3 %). This has been used as the discount rate for determining the recoverable amounts. A sensitivity analysis of the above assumptions has been conducted and indicates that reasonable changes in income, operating expenses or the discount rate would not result in impairment. The sensitivity analysis shows that if the estimated volume growth over the five years after 2016 turned out to be half of the Company's estimate at 31 December 2016, this would not result in any impairment. A sensitivity analysis of operating expenses has also been made and indicates that an increase of five percentage points would not result in any impairment. If the revised estimated pre-tax discount rate used to discount cash flows turned out to be five percentage points higher than the Company's estimate, this would not result in any impairment.

The annual goodwill impairment testing did not identify any impairment. The table below shows the carrying amount of goodwill with an indefinite useful life distributed by country.

SEK 000	2016	2015
Poolia Sweden	14,600	14,600
Poolia Germany	4,089	3,904

note 15 other intangible assets
Customer relationships
Group SEK 000	2016	2015
Opening cost	3,039	–
Acquisitions during the year	–	3,039
Closing cost	3,039	3,039
Opening amortisation	-416	–
Amortisation for the year	-604	-416
Closing accumulated amortisation	-1,020	-416
Carrying amount	2,019	2,623

Group	2016	2015
Opening cost	31,906	30,984
Acquisitions during the year	977	937
Sales/disposals	-430	–
Reclassification	1,475	–
Exchange differences	–	-15
Closing cost	33,928	31,906
Opening amortisation	-28,882	-27,694
Sales/disposals	51	15
Amortisation for the year	-1,469	-1,203
Reclassification	-1,475	–
Closing accumulated amortisation	-31,775	-28,882
Carrying amount	2,153	3,024
Total carrying amount	4,172	5,647
Parent Company	2016	2015
Opening cost	8,001	7,713
Acquisitions during the year	503	288
Sales/disposals	–	–
Closing accumulated cost	8,504	8,001
Opening amortisation	-7,024	-6,435
Sales/disposals	–	–
Amortisation for the year	-719	-589
Closing accumulated amortisation	-7,743	-7,024
Carrying amount	761	977

Expenditure on business support systems was capitalised in 2016 and 2015.

note 16 property, plant and equipment

Group SEK 000	2016	2015
Opening cost	11,340	10,939
Purchases	396	1,071
Sales/disposals	-471	-573
Translation differences	123	-97
Closing accumulated cost	11,388	11,340
Opening depreciation	-9,662	-8,529
Sales/disposals	909	103
Depreciation for the year	-1,582	-1,318
Translation differences	-109	82
Closing accumulated depreciation	-10,444	-9,662
Carrying amount	944	1,679

The Group holds cars and computers under leases. Agreed lease payments under these contracts are 3,767 (3,465), of which 1,377 (1,913) relates to 2017 and the remainder to 2018 and 2019. The leases are all operating leases. The year's lease payments for computers and cars were 2,070 (2,273). The Group also leases premises with contracted annual rents of 14,470 (15,165). Most of these lease agreements were commenced between 2011 and 2016 and remain in force for 1-6 years.

Parent Company	2016	2015
Opening cost	341	341
Sales/disposals	–	–
Closing accumulated cost	341	341
Opening depreciation	-341	-341
Depreciation for the year	–	–
Closing accumulated depreciation	-341	-341
Carrying amount	0	0

note 17 investments in group companies

		Size	Value
		No. of Share of		Nom. Carrying
Reg'd office	sharesequity %			value amount
shares in swedish subsidiaries
Poolia Sverige AB CRN 556426-7655, Stockholm 1,000,000			100 TSEK100	14,164
Poolia Ekonomi AB CRN 556363-8039, Stockholm	1,000	100	–	–
Poolia IT AB CRN 556447-9581, Stockholm	1,000	100	–	–
Poolia Office Professionals AB CRN 556532-4240, Stockholm	1,000	100	–	–
Poolia Sälj & Marknad AB CRN 556532-5221, Stockholm	1,000	100	–	–
Poolia Life Science & Engineering AB CRN 556532-4232, Stockholm	1,000	100	–	–
Poolia Väst AB CRN 556399-9621, Stockholm	1,000	100	–	–
Poolia Syd AB CRN 556417-7581, Stockholm	1,000	100	–	–
Poolia Juridik AB CRN 556420-3841, Stockholm	1,000	100	–	–
Poolia Jönköping AB CRN 556557-4067, Jönköping	1,000	100	–	–
Poolia Umeå AB CRN 556501-9246, Stockholm	1,000	100	–	–
Poolia Örebro AB CRN 556889-7473, Stockholm	500	100	–	–
Poolia Linköping AB CRN 556889-7622, Stockholm	500	100	–	–
Poolia Sundsvall AB CRN 556889-7614, Stockholm	500	100	–	–
Poolia Uppsala AB CRN 556584-1748, Stockholm	1,000	100	–	–
Poolia Gävle AB CRN 556599-5999, Stockholm	1,000	100	–	–
Poolia Rekrytering AB CRN 556558-8141, Stockholm	1,000	100	–	–
Poolia Malmö AB CRN 556801-5035, Stockholm	1,200	100	–	–
Studentkraft Partnerbolag AB CRN 556830-9917, Stockholm	500	100	–	–
Poolia Executive Search AB CRN 556573-6336, Stockholm	1,000	91	91	91
SHARES IN SWEDISH SUBSIDIARIES
Poolia Suomi OY CRN 1614293-5, Helsinki	140,000		100 TEUR 118	3,410
Poolia IT Oy CRN 2774648-6, Helsinki	1,000		100 TEUR 2.5	–
Poolia Danmark A/S CRN 25507835, Copenhagen	902		100 TDKK 902	700
Poolia Deutschland GmbH CRN HRB 56837, Düsseldorf	-	100	–	5,223
Poolia UK Holdings Ltd CRN 04731846, London	101,414	100	TGBP 10	–
Poolia UK Ltd CRN 2442269, London	1,000,000	100	–	–
Total				23,588

note 18 trade receivables

Group SEK 000	2016	2015
Trade receivables, gross	115,473	115,741
Opening provision for doubtful debts	-144	-17
Provisions for the period	-103	-188
Actual losses	–	–
Reversal of provisions	189	58
Translation differences	-6	3
Closing provision for doubtful debts	-64	-144
Trade receivables, net	115,409	115,597
Past due but not considered doubtful	2016	2015
1-30 days	3,883	3,033
31-90 days	623	558
91-180 days	153	235
>180 days	352	595
Total	5,011	4,421

All reported amounts are expected to be paid.

note 19 prepayments and accrued income

	Group		Parent
SEK 000	2016	2015	2016	2015
Accrued fee income	43,668	39,594	–	–
Other prepayments and accrued income	7,945	10,985	135	518
Total	51,613	50,579	135	518

note 20 share capital

	A shares	B shares	Total
1 January 2015	4,023,815	13,098,181	17,121,996
31 December 2015	4,023,815	13,098,181	17,121,996
31 December 2016	4,023,815	13,098,181	17,121,996

Class A shares carry entitlement to one vote and class B shares to 1/5 vote. The par value is SEK 0.20 per share. There were no share-based incentive schemes in 2016 and 2015.

Capital management

Capital refers to equity. The Group's objective for capital management is to safeguard the Group's status as a going concern and its freedom of action and to ensure that shareholders continue to receive a return on their investments.

In order to maintain and adapt the capital structure, the Group may distribute funds, increase equity by issuing new shares or capital contributions, repurchase shares or reduce or increase its liabilities. According to the Group's dividend policy, the aim is that the dividend will normally exceed 50% of net profit after tax. The statement of changes in equity shows the different components of equity and the changes during the period.

note 21 earnings per share and distribution of profit

SEK 000	2016	2015
Profit/loss for the year	11,692	15,296
Profit/loss for the year attributable to shareholders of the Parent	11,692	15,296
Average number of shares (000)	17,122	17,122
Average number of shares, diluted (000)	17,122	17,122
Earnings per share, SEK	0.68	0.89
Diluted earnings per share, SEK	0.68	0.89
Proposed/paid dividend per share, SEK	0.60	0.50
Proposed/paid dividend, SEK	10,273,198 8,560,998

The Group's profit after tax for continuing operations for the 2016 financial year is SEK 11.7 million. The Board proposes that the Annual General Meeting adopt a dividend of SEK 0.6 per share, to a total value of SEK 10,273,198.

The proposed dividend represents 88 percent of net profit for the year and is justified by the Group's strong balance sheet and confidence in the Group's future development. Poolia's equity/assets ratio after the proposed dividend will be 30.3 percent. The proposed dividend is reasonable pursuant to the second and third paragraphs of section 17:3 of the Companies Act.

The following amounts (in SEK) are at the disposal of the AGM

Retained earnings	5,695,464
Profit/loss for the year	8,225,112
	13,920,576

The Board proposes that the profits be distributed as follows: Payment to shareholders 10,273,198

Carried forward	3,647,378
	13,920,576

note 22 corporate acquisitions

In 2015, 100% of the shares in Joblink Norden AB were acquired for a purchase consideration of SEK 10.7 million, including transaction costs of SEK 0.6 million. The acquisition was financed from the Company's own funds and had a cash flow effect of SEK -10.7 million. The acquisition generated goodwill and other surplus values of SEK 9.5 million. The acquired business had about 70 employees, and its impact on revenue for 2016 was SEK 22.1 million and on operating profit SEK -0.5 million, including transaction costs.

note 23 liabilities to credit institutions

Group transactions with one and the same bank/lender are offset in the consolidated balance sheet. The Parent Company's credit balances and credit utilisation are recognised in the Parent Company's financial statements. The Group's Swedish business has an overdraft facility of 40,000 (40,000), of which 14,163 (1,874) has been utilised.

note 24 accruals and deferred income

	Group		Parent
SEK 000	2016	2015	2016	2015
Holiday pay liability	28,165	29,484	47	102
Personnel-related taxes and contributions	8,284	8,002	506	419
Accrued salaries	39,099	39,661	237	712
Other accruals and deferred income	8,368	8,945	1,483	1,145
Total	83,916	86,092	2,273	2,378

note 25 financial assets and liabilities

Carrying amount of each class of financial instrument

Group SEK 000	2016	2015
ASSETS
Cash and cash equivalents	36,631	20,204
Trade receivables	115,409	115,597
Accrued fee income	43,668	39,594
Total	195,708	175,395
liabilities
Trade payables	16,538	22,014
Accrued salaries	39,099	39,661
Liabilities to credit institutions	14,163	1,874
Total	69,800	63,549

Because all financial assets and liabilities are of a short-term nature, their carrying amount represents a good approximation of their fair value, unless otherwise stated in the notes.

Maturity analysis	2016	2015
assets
Cash and cash equivalents
1-30 days	36,631	20,204
Trade receivables
1-30 days	95,247	100,091
31-90 days	20,162	15,506
Total	115,409	115,597
Accrued fee income
1-30 days	7,770	6,961
31-90 days	35,898	32,633
Total	43,668	39,594
Financial assets	195,708	175,395
Maturity analysis	2016	2015
liabilities
Trade payables
1-30 days	16,538	22,014
Accrued salaries
1-30 days	39,099	39,661
Liabilities to credit institutions
1-30 days	14,163	1,874
Financial liabilities	69,800	63,549

note 26 profit/loss from discontinued operations

The UK operations were divested on 28 February 2014 and are reported under discontinued operations. Operating profit for 2015 and 2016 includes costs of ongoing administration during the closure process for the UK companies. After an analysis of the tax situation in the United Kingdom, a need to recognise a tax provision for the gain on the sale of the business in 2014 was identified.

Poolia UK
SEK 000	2016	2015
operating expenses
Other expenses	-765	-662
Operating profit/loss	-765	-662
profit/loss from financial investments
Interest and similar expense	-150	–
Profit/loss before tax	-915	-662
Tax on profit/loss for the year	-1,143	–
Profit/loss for the year	-2,058	-662
other comprehensive income
Translation differences	1,396	-4,081
Comprehensive income for the year	-662	-4,743
Balance sheet
Assets held for sale	–	–
Liabilities held for sale	–	–
Poolia UK
Cash flow from discontinued operations	2016	2015
Cash flow from operating activities	-765	–
Cash flow from financing activities	–	–

Cash flow for the year -765 –

note 27 cash flow statement

		Group		Parent
Cash and cash equivalents SEK 000 2016		2015	2016	2015
Cash and bank balances	36,631	20,204	–	–
Balance at end of year	36,631	20,204	–	–

Disclosure of interest paid

The Group's interest received during the year was 106 (87). The Group's interest paid during the year was 636 (322). The Parent Company's interest received during the year was – (–). The Parent Company's interest paid during the year was 344 (344).

note 28 related party transactions

Poolia has certain partnership agreements and commercial transactions with Uniflex AB. Poolia's Chairman of the Board and largest shareholder, Björn Örås, is also Chairman and largest shareholder of that company. In 2016, Poolia invoiced Uniflex AB SEK – (2.4) million for services rendered. Poolia's purchases from Uniflex AB 2016, which were not exclusively related to re-invoicing, amounted to SEK – (0.1) million. At 31 December 2016, Poolia's liabilities to Uniflex AB were SEK 4.7 (5.5) million, primarily attributable to services for which re-invoicing was conducted on behalf of clients. Poolia's receivables from Uniflex AB at 31 December were SEK – (0.2) million. No provision was required in 2016 or 2015 for Poolia's receivables from related companies or persons.

note 29 pledged assets and contingent liabilities

pledged assets and contingent liabilities, group

Pledged assets SEK 000	2016	2015
Investments in Group companies	17,441	21,590
Pledged endowment insurance for former CEO, see Note 8	1,431	1,431
Total pledged assets	18,872	23,021
Contingent liabilities
Bank guarantee, rent	1,435	169
Tax dispute about consult./empl. relationship	–	1,329
Total contingent liabilities	1,435	1,498
Total pledged assets and contingent liabilities	20,307	24,519
pledged assets and contingent liabilities, parent company
Pledged assets	2016	2015
Investments in Group companies	14,164	14,164
Endowment insurance for former CEO, see Note 8	1,431	1,431
Total pledged assets	15,595	15,595
Contingent liabilities
Total contingent liabilities	–	–
Total pledged assets and contingent liabilities	15,595	15,595

note 30 events after the reporting period

There are no significant events to report.

The Board of Directors and the Managing Director hereby certify that the annual accounts have been prepared in accordance with the Annual Accounts Act and RFR 2 and provide a true and fair view of the Company's financial position and financial performance, and that the Board of Directors' Report provides a true and fair view of the Company's operations, financial position and financial performance and describes material risks and uncertainties faced by the Company.

The Board of Directors and the Managing Director hereby certify that the consolidated financial statements have been prepared in accordance with the Annual Accounts Act and International Financial Reporting Standards (IFRS) as adopted by the EU, and provide a true and fair view of the Group's financial position and financial performance, and that the Board of Directors' Report for the Group provides a true and fair view of the Group's operations, financial position and financial performance and describes material risks and uncertainties faced by the Group's companies.

Stockholm, 11 April 2017

Chairman of the Board Member of the Board Member of the Board

Björn Örås Lennart Pihl Marika Skärvik

Dag Sundström Anna Söderblom Morten Werner Member of the Board Member of the Board Managing Director

Our audit report was submitted on 11 April 2017

Deloitte AB

Henrik Nilsson Authorised Public Accountant

AUDIT REPORT

to the general meeting of the shareholders of poolia ab (publ) corporate identity number 556447-9912

Report on the annual accounts and consolidated accounts

Opinions

We have audited the annual accounts and consolidated accounts of Poolia AB (publ) for the financial year 1 January 2016 to 31 December 2016, with the exception of the Corporate Governance Report on pages 24-29. The Company's annual accounts and consolidated accounts are included in this document on pages 18-23 and 33-53.

In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the Parent Company at 31 December 2016 and its financial performance and cash flows for the year then ended in accordance with the Annual Accounts Act. The consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the Group at 31 December 2016 and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, and the Annual Accounts Act. Our opinions do not cover the Corporate Governance Report on pages 24-29. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts.

We therefore recommend that the general meeting of shareholders adopt the income statement and balance sheet for the Parent Company and the Group.

Our opinions in this report on the annual accounts and consolidated accounts are consistent with the content of the additional report that has been submitted to the Parent Company's Audit Committee, pursuant to Article 11 of Regulation (EU) no. 537/2014 of the European Parliament on specific requirements regarding statutory audits.

Basis for opinions

We conducted the audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under these standards are further described in the Auditor's Responsibilities section. We are independent of the Parent Company and the Group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the annual accounts and consolidated accounts of the current period. These matters were addressed in the context of our audit of the annual accounts and consolidated accounts as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters.

Revenue recognition

The Group's reported revenue as at 31 December 2016 is SEK 784.8 million and includes sales of services in temporary staffing and permanent placement. Revenue is recognised in the accounting period in which the services are rendered. It is our assessment that completeness and recognition of revenue has a material impact on the financial reporting.

Revenue recognition is based on information from the company's time ledger, which calculates revenue based on hours worked. The process of calculating accrued revenue is performed on a monthly basis and includes manual elements. Hence there is a risk of errors unless appropriate control activities are in place to manage the risk. Furthermore, the accounting information is derived from system-generated data that may contain errors regarding prices and other relevant terms if there are weaknesses in the controls that handle input and maintenance of data.

For further information on accounting policies for revenue recognition, see note 2 and for additional disclosures, see note 6.

Our audit procedures

As part of our audit of revenue recognition, we have performed a number of audit procedures, where some of the most important procedures include:

• We have obtained an understanding of significant transaction flows and critical business systems, and have evaluated whether the Company's key controls for managing the risk of errors in financial reporting are appropriately designed and implemented.

• We have audited the company's procedures for revenue recognition with a focus on (1) ensuring the input of data, (2) the completeness and accuracy of data transfer or extraction from the system, and (3) review of the accounting documents and reconciliation against subsequent billing.
• We have performed an analytical review of reported revenue and margins in order to identify significant fluctuations for further investigation.
• We have examined a sample of individual revenue transactions to verify that they have been priced according to current client contracts and that revenue has been recognised in the period in which the Company fulfilled its commitment.
• We have examined whether the information disclosed in the Annual Report is consistent with the requirements of the Annual Accounts Act and IFRS.

Accounting for staff costs

The Group's reported staff costs as at 31 December 2016 amount to SEK 696.8 million and consist largely of costs relating to temporary staffing. Temporary staffing costs are recognised in the accounting period in which the services are rendered. It is our assessment that completeness and allocation of staff costs has a material impact on the financial statements.

Temporary staffing costs are calculated based on time reported. Provisions for accrued staff costs are partly based on standardised amount calculations.

For further information on accounting policies for reporting staffing costs, see note 2 and for additional disclosures, see note 8.

Our audit procedures

As part of our audit of staff costs related to temporary staffing, we have performed a number of audit procedures, where some of the most important procedures include:

• We have obtained an understanding of significant transaction flows and critical business systems, and have evaluated whether the Company's key controls for managing the risk of errors in financial reporting are appropriately designed and implemented.

• We have examined the procedures for reporting of staff costs with a focus on (1) ensuring the input of data into systems, (2) the completeness and accuracy of the data transfer or extraction from the system, (3) examination of the accounting documents and reconciliation against payments and the approval processes and controls associated with reported hours worked and payroll disbursements.

• We have performed an analytical review of the period's staff costs compared with prior periods, taking into account the change in the number of full-time employees and wage index in order to identify significant fluctuations for further investigation.

• We have examined whether the information disclosed in the Annual Report is consistent with the requirements of the Annual Accounts Act and IFRS.

Valuation of goodwill

The Group's reported goodwill as at 31 December 2016 was SEK 18.7 million. Goodwill has been recognised in the balance sheet as a result of acquisitions at values exceeding the acquired businesses' net assets at the acquisition date. Our assessment is that goodwill measurement is an important area of financial reporting, given that there is a risk that the valuation cannot be justified and that the valuation of goodwill is based on a high degree of judgement, such as future cash flows.

For further information on accounting policies for goodwill, see note 2 and for additional disclosures, see note 14.

Our audit procedures

As part of our goodwill audit, we have performed a number of audit procedures, where some of the most important procedures include:

• We have evaluated whether the models used by management to calculate the value of the cash-generating units comply with the requirements of IAS 36 Impairment of Assets.
• We have analysed the forecast cash flows used in the valuation models to determine whether they are reasonable in terms of the Company's expected future development in each cash-generating unit.
• We have validated the assumptions used to calculate the discount rate.
• We have conducted sensitivity analyses of key assumptions, including sales growth and operating expenses.
• We have examined whether the information disclosed in the Annual Report is consistent with the requirements of the Annual Accounts Act and IFRS.

Accounting for deferred tax assets

The Group's reported deferred tax assets as at 31 December 2016 were SEK 11.2 million. Our assessment is that the measurement of deferred tax assets is an important area of financial reporting, given that the measurement is based on a high degree of judgement in terms of the possibility of utilising loss carryforwards against future profits.

For further information on accounting policies for deferred tax assets relating to utilised loss carryforwards, see note 2 and for additional disclosures, see note 13.

Our audit procedures

As part of our audit of deferred tax assets, we have performed a number of audit procedures, where some of the most important procedures include:

• We have checked that disclosures on loss carryforwards are consistent with the tax return and tax calculations.
• We have been provided with the budget for 2017 and business plans for subsequent periods, and have evaluated the Company's assessment regarding the reasonableness of significant assumptions used in the reporting of deferred tax relating to loss carryforwards.
• We have examined whether the information disclosed in the Annual Report is consistent with the requirements of the Annual Accounts Act and IFRS.

Information other than the annual accounts and consolidated accounts

This document also contains information other than the annual accounts and consolidated accounts, which is presented on pages 2-17 and 30-32. The Board of Directors and the Managing Director are responsible for this other information.

Our opinion on the annual accounts and consolidated accounts does not cover this other information and we do not express any form of assurance or conclusion regarding this other information.

In connection with our audit of the annual accounts and consolidated accounts, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the annual accounts and consolidated accounts. In this procedure, we also take into account our knowledge otherwise obtained in the audit and assess whether the information appears to be materially misstated.

If, based on the work performed concerning this information, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors and the Managing Director

The Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and consolidated accounts and for ensuring that they give a fair presentation in accordance with the Annual Accounts Act and, concerning the consolidated accounts, in accordance with IFRS as adopted by the EU. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error.

In preparing the annual accounts and consolidated accounts, the Board of Directors and the Managing Director are responsible for the assessment of the Company's and the Group's ability to continue as a going concern. They disclose, as applicable, matters related to the going concern and use of the going concern basis of accounting. The going concern basis of accounting is, however, not applied if the Board of Directors and the Managing Director intend to liquidate the Company, cease operations, or have no realistic alternative but to do so.

The Board's Audit Committee shall, without prejudice to the Board's responsibilities and tasks in general, among other things, oversee the company's financial reporting process.

Auditor's responsibility

Our objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users made on the basis of these annual accounts and consolidated accounts.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of the Company's internal control relevant to our audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors and the Managing Director.
• Draw a conclusion on the appropriateness of the Board of Directors' and the Managing Director's use of the going concern basis of accounting in preparing the annual accounts and consolidated accounts. We also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertainty exists related to events or conditions that may cast significant doubt on the Company's and the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the annual accounts and consolidated accounts or, if such disclosures are inadequate, to modify our opinion about the annual accounts and consolidated accounts. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However, future events or conditions may cause a company and a group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the annual accounts and consolidated accounts, including the disclosures, and whether the annual accounts and consolidated accounts represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated accounts. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our opinions.

We must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. We must also inform them of significant audit findings during our audit, including any significant deficiencies in internal control that we identified.

We must also provide the Board with a statement that we have complied with relevant ethical requirements regarding independence, and communicate to them all relationships and other matters that may be reasonably thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the annual accounts and consolidated accounts, including the most important assessed risks of material misstatement, and these are therefore the key audit matters. We describe these matters in the auditor's report unless law or regulation precludes disclosure of the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in the auditor's report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements

Opinions

In addition to our audit of the annual accounts and consolidated accounts, we have also audited the administration of the Board of Directors and the Managing Director of Poolia AB (publ) for the financial year 1 January 2016 to 31 December 2016 and the proposed appropriations of the Company's profit or loss.

We recommend to the general meeting that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year.

Basis for opinions

We conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities in this regard are further described in the Auditor's Responsibilities section. We are independent of the Parent Company and the Group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.

Responsibilities of the Board of Directors and the Managing Director

The Board is responsible for the proposal concerning appropriations of the Company's profit or loss. Proposing a dividend includes an assessment of whether the dividend is justifiable considering the requirements that the nature, scope and risks of the Company's and the Group's operations place on the size of the Parent Company's and the Group's equity, consolidation requirements, liquidity and position in general.

The Board of Directors is responsible for the Company's organisation and the administration of its affairs. This includes, among other things, continuous assessment of the Company's financial situation and ensuring that the Company's organisation is designed so that accounting, management of assets and the Company's financial affairs are otherwise controlled in a reassuring manner. The Managing Director shall manage the ongoing administration according to the Board of Directors' guidelines and instructions, and, among other matters, shall take measures that are necessary to handle the Company's accounting in accordance with law and to conduct the management of assets in a reassuring manner.

Auditor's responsibility

Our objective for the audit of the administration, and therefore our opinion regarding discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect has:

• undertaken any action or been guilty of any omission which could give rise to liability to the Company; or
• in any other way acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association.

Our objective for the audit of the proposed appropriations of the Company's profit or loss, and therefore our opinion regarding same, is to assess with a reasonable degree of assurance whether the proposal is in accordance with the Companies Act.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the Company, or that the proposed appropriations of the Company's profit or loss are not in accordance with the Companies Act.

As part of an audit in accordance with generally accepted auditing standards in Sweden, we exercise professional judgement and maintain professional scepticism throughout the audit. The examination of the administration and the proposed appropriations of the Company's profit or loss is based primarily on the audit of the accounts. Additional audit procedures performed are based on our professional judgement, with a starting point in risk and materiality. This means that we focus the examination on such actions, areas and relationships that are material for operations and where deviations and violations would

have particular importance for the Company's situation. We examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to our opinion concerning discharge from liability. As a basis for our opinion concerning the Board of Directors' proposed appropriations of the Company's profit or loss, we have examined the Board's explanatory statement, and a selection of the evidence in order to assess whether the proposal is in accordance with the Companies Act.

Auditor's review of the Corporate Governance Report The Board is responsible for the Corporate Governance Report on pages 24-29 and for ensuring it is prepared in accordance with the Swedish Annual Accounts Act.

Our review has been conducted in accordance with FAR's standard RevU 16 on reviewing corporate governance statements. This means that our review of the Corporate Governance Report has another focus and is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that this review provides a sufficient basis for our opinions.

A Corporate Governance Report has been prepared. Disclosures pursuant to Chapter 6, section 6, second paragraph (2-6) of the Annual Accounts Act and Chapter 7, section 31, second paragraph of the same act are consistent with the other parts of the annual accounts and consolidated accounts and are in accordance with the Annual Accounts Act.

Stockholm, 11 April 2017

Deloitte AB

Henrik Nilsson Authorised Public Accountant

DEFINITIONS

Average number of employees Total hours worked during the year divided by the average number of hours worked per full-time employee.

Capital employed Total assets less non-interest-bearing liabilities, including provisions for taxes.

Earnings per share Profit/loss after tax for the year divided by the average number of shares.

Equity/assets ratio

Equity, including non-controlling interests, as a percentage of total assets.

Equity per share Equity divided by the number of shares outstanding.

Income per employee Operating income divided by the average number of FTEs.

Operating margin Operating profit/loss as a percentage of operating income.

Operating profit/loss Operating income less operating expenses.

P/E ratio

Share price on the closing date divided by earnings per share.

Profit margin

Profit/loss after financial items as a percentage of operating income.

Return on capital employed Profit/loss after financial items plus finance costs divided by average capital employed.

Return on equity Profit/loss after tax divided by average equity.

Return on total assets Profit/loss after financial items plus finance costs divided by average total assets.

Risk-bearing capital Equity, plus non-controlling interests and provisions for taxes, as a percentage of total assets.

OPERATIONAL MEASURES

Growth

Increase in operating income compared with the same period the previous year, expressed as a percentage.

Restructuring costs

Costs that are not considered part of normal operations and are determined to be non-recurring. They are reported under operating expenses in the income statement.

ADDRESSES

HEAD OFFICE

POOLIA AB POOLIA STOCKHOLM Kungsgatan 57 A Box 207 SE-101 24 Stockholm Tel: 08-555 650 00 Fax: 08-555 650 01 info@poolia.se

SWEDEN

POOLIA GOTHENBURG Kungsgatan 42 SE-411 15 Gothenburg Tel: + 46 (0)31-743 20 00 gbg@poolia.se

POOLIA JÖNKÖPING Norra Strandgatan 4 SE-553 20 Jönköping Tel: + 46 (0)36-17 32 60 jonkoping@poolia.se

POOLIA LINKÖPING Platensgatan 8 SE-582 20 Linköping Tel: + 46 (0)13-36 86 50 linkoping@poolia.se

POOLIA MALMÖ Gustav Adolfs Torg 12 SE-211 39 Malmö Tel: + 46 (0)40-661 25 00 malmo@poolia.se

POOLIA SUNDSVALL Universitetsallén 32 SE-851 71 Sundsvall Tel: + 46 (0)60-64 10 30 sundsvall@poolia.se

POOLIA UMEÅ Storgatan 43

SE-903 26 Umeå Tel: + 46 (0)90-16 05 30 umea@poolia.se

POOLIA UPPSALA Kungsängsgatan 5B SE-753 22 Uppsala Tel: + 46 (0)18-16 93 60 uppsala@poolia.se

POOLIA ÖREBRO Rudbecksgatan 7 SE-0702 11 Örebro Tel: + 46 (0)19-766 37 00 orebro@poolia.se

FINLAND

POOLIA HELSINKI Kalevankatu 6 FI-00100 Helsinki Tel: +358,207,290,830 info@poolia.fi

GERMANY

POOLIA DÜSSELDORF Graf-Adolf-Straße 70 DE-40210 Düsseldorf Tel: +49 211 936 56 40 duesseldorf@poolia.de

POOLIA FRANKFURT Stresemannallee 30 DE-60596 Frankfurt Tel: +49 692 193 090 frankfurt@poolia.de

POOLIA HAMBURG Mönckebergstraße 5 DE-20095 Hamburg Tel: +49 403 231 07 90 hamburg@poolia.de

POOLIA HANOVER Grupenstrasse 2 DE-30159 Hannover Tel: +49 511 763 57 90 hannover@poolia.de

POOLIA COLOGNE Hohenzollernring 37 DE-50672 Cologne Tel: +49 221 277 94 50 koeln@poolia.de

POOLIA MANNHEIM N2, 4 DE-68161 Mannheim Tel: +49 621 150 32 90 mannheim@poolia.de

POOLIA MUNICH Schleissheimer Strasse 141 DE-80797 München Tel: +49 892 4294 80 muenchen@poolia.de

POOLIA STUTTGART Wilhelmsplatz 11 DE-70182 Stuttgart Tel: +49 711 213 92 40 stuttgart@poolia.de