PION Group — Interim / Quarterly Report 2008

Jul 18, 2008

Managing Director and CEO Johan Eriksson comments on Poolia s Interim Report for January 1 June 30, 2008

Poolia reports strong increase in operating margin

Poolia is investing in profitable growth and the activities initiated during the end of the preceding year have generated rapid results and contributed to a strong increase in operating margin during the year s first two quarters.

Revenues

The Group reported total revenues for the second quarter of SEK 367 M, an increase in the growth rate compared with the preceding year and the preceding quarter. The increase was 14% compared with the year-earlier period and was to a certain extent influenced by the quarter having three more working days, due to Easter, than the year-earlier period. Revenues for the first six months of the year totalled SEK 727 M, corresponding to growth of 10%. We continue to experience strong demand for Poolia s services in all markets with the exception of the UK, where competition became keener when demand decreased.

Healthcare staffing company Dedicare noted the highest growth rate during the second quarter. The increase rate for the quarter was 57% and the total for the first six months was 59%. Dedicare has signed a new agreement with Stockholm County Council that covers two years, with an option for an additional two years. The decision was also made to introduce Dedicare to Finland in the autumn.

Poolia Germany continued its strong trend and increased revenues by 38% in the quarter. The market assessment that was conducted resulted in the decision to open another office, this time in Hannover on June 1. However, the primary focus is to further increase volumes in existing offices through more customers and by supplying temporary consultants within all of Poolia s professional areas. We want to build a stable foundation for all offices that opened in the recent two-year period as soon as possible.

Poolia Sweden grew by 19% during the second quarter. In terms of revenues per working day, the increase was slightly more than 13% for the second quarter and the first six months of the year compared with the preceding year. Several new, major framework agreements for temporary staffing and permanent placements were signed in the second quarter.

Finland also had a very strong trend and experienced growth of 55% during the second quarter. The inflow of new customer assignments and candidates remained strong.

Due to the situation in the labour market, Denmark has a staffing market with many challenges. In spite of this, we were successful in turning around the negative trend in the second quarter and were able to once again report growth figures with good profitability.

Sales for Poolia UK continues to decline due to a decrease in demand and tougher competition, the decision to concentrate on the operation to London and focus on profitable customers, as well as the negative currency effect. The reduction in demand is primarily connected with customers in the finance sector in which Poolia UK has traditionally been strong. We continue our work to diversify our offering to include customer groups that are not as badly affected by the decline.

Earnings

As previously reported, Poolia is currently focusing highly on profitability. During the second quarter of the year, we continued to experience strong improvements in operating profit. The operating margin of 8.1%, an increase of a full 84%, was attributable to efficiency enhancements within all the Group s units. The corresponding revenue increase for the six months is 55%, which generated an operating margin of 8.0%.

Johan Eriksson

INTERIM REPORT JANUARY 1 JUNE 30, 2008

• Revenues totalled SEK 727.1 M (660.1).
• Operating profit amounted to SEK 58.0 M (37.5).
• Profit after financial items totalled SEK 59.6 M (38.7).
• Profit after taxes was SEK 43.1 M (28.9).
• Earnings per share amounted to SEK 2.37 (1.57).
• Cash flow from operating activities was SEK 53.9 M (34.0).

January June

Revenues

Group revenues rose 10% to SEK 727.1 M (660.1). Currency effects had a negative impact of 1.6% during the period. The strongest growth was reported from Dedicare, Germany and Finland, while revenues in the UK declined. Temporary Staffing was the predominant service area. The proportion of permanent placements declined from 11% to 10%. Accounting was the largest occupational segment in absolute terms.

Earnings

Profit after financial items amounted to SEK 59.6 M (38.7). Operating profit amounted to SEK 58.0 M (37.5). Operating margin was 8.0% (5.7). All segments reported positive operating profit. Operations in Sweden and Germany had the highest operating margins, 11.0% and 10.8%, respectively. Operations in Denmark and Finland reported strong margin improvements compared with the year-earlier period. The operation in the UK has turned the loss in the preceding year to a profit. Operating margin for Dedicare amounted to 6.4%, which is strong for the healthcare sector.

The Group s net financial items amounted to SEK 1.6 M (1.2). Non-distributed Parent Company costs amounted to SEK 7.2 M (8.6).

The tax rate for the Group was 28% (25%).

Second quarter

Revenues

Group revenues increased by 14% to SEK 366.9 M (322.5). Currency effects had a negative impact of 1.7% in the quarter. Temporary Staffing was the predominant service area. The number of permanent placements declined from 12% to 10%. Accounting was the largest occupational segment in absolute terms.

The revenue trend in the Swedish market shows continued growth compared with the previous year. Revenues for the quarter amounted to SEK 226.5 M (190.1), an increase of 19%. If the effect from the number of working days was excluded, growth was 13%. Growth was reported in all professional areas and regions, with the strongest trend in the city areas. The proportion of permanent placements decreased from 11% to 10%.

Revenues in Denmark totalled SEK 4.5 M (4.3). The proportion of permanent placements increased from 33% to 50%.

Revenues in Finland increased by 55% to SEK 7.8 M (5.1). The proportion of permanent placements decreased from 20% to 19%.

Revenues in Germany increased by 38% to SEK 23.5 M (17.0). The highest growth was in Frankfurt and Mannheim. A new office was opened in Hannover on June 1. The proportion of permanent placements decreased from 19% to 16%.

In the UK, sales declined by 34% to SEK 44.6 M (67.9), due partly to reduced demand within the banking sector, and partly Poolia s decision to focus on the London market and profitable customers. The proportion of permanent placements decreased from 16% to 14%.

Dedicare, which includes temporary staffing of doctors and nurses in Sweden and Norway, increased sales by 57% to SEK 60.0 M (38.1). A decision was made to establish operations in Finland in the autumn.

Earnings

Profit after financial items totalled SEK 30.1 M (16.8). Operating profit amounted to SEK 29.7 M (16.1) and the operating margin was 8.1% (5.0).

Poolia Sweden reported operating profit of SEK 25.3 M (18.9). The operating margin was 11.2% (9.9). The improved profitability was an effect of increased efficiency and more working days.

Operating profit for Denmark and Finland was SEK 0.5 M (0.2) and SEK 0.8 M (0.0), respectively, and the operating margins were 10.9% (4.5) and 10.0% (0.0), respectively. The margin improvement in Finland was due to increased sales focus and increased efficiency.

Germany s operating profit totalled SEK 2.3 M (1.7). The operating margin was 9.9% (9.9). Establishments under expansion (offices in Cologne and Hannover) had a negative impact of SEK 1.0 M (0.4).

In the UK, operating profit for the period was SEK 0.3 M (loss: 3.2). The change to positive results was due to the decision to focus on the operation in London combined with the adjustment of joint expenses implemented at the end of the preceding year.

Operating profit for Dedicare was SEK 4.3 M (2.6) and the operating margin was 7.2% (6.8).

Non-distributed Parent Company costs amounted to SEK 3.8 M (4.1).

Information on operating segments and geographic regions

January June

Revenues and operating results

	2008 Jan-June	2008 Jan-June	2007 Jan-June	2007 Jan-June
	Operating revenues	Operating profit/loss	Operating revenues	Operating profit/loss
Poolia Sweden	451.6	49.9	396.7	44.4
Poolia Finland	14.7	1.2	10.6	0.0
Poolia Denmark	9.2	0.8	9.3	0.5
Poolia Germany	46.5	5.0	32.8	3.7
Poolia UK	94.1	1.2	140.7	-6.7
Dedicare	111.0	7.1	70.0	4.2
Non-distributed Parent Company costs		-7.2		-8.6
Total	727.1	58.0	660.1	37.5

April June Revenues and operating results

	2008 Apr-June	2008 Apr-June	2007 Apr-June	2007 Apr-June
	Operating revenues	Operating profit/loss	Operating revenues	Operating profit/loss
Poolia Sweden	226.5	25.3	190.1	18.9
Poolia Finland	7.8	0.8	5.1	0.0
Poolia Denmark	4.5	0.5	4.3	0.2
Poolia Germany	23.5	2.3	17.0	1.7
Poolia UK	44.6	0.3	67.9	-3.2
Dedicare	60.0	4.3	38.1	2.6
Non-distributed Parent Company costs		-3.8		-4.1
Total	366.9	29.7	322.5	16.1

Liquidity and financing

On June 30, 2008, the Group s cash and cash equivalents amounted to SEK 80.2 M (78.3). Cash flow from operating activities during the period was SEK 53.9 M (34.0). Dividends totalling SEK 46.2 M (46.2) were paid. At the Annual General Meeting on April 14, 2008, the Board of Directors was authorized to acquire not more than 10% of Poolia s shares. On April 25, 2008, 921,800 Poolia B shares were acquired, 5% of the total number of shares, for SEK 30.6 M. The equity/assets ratio was 52.7% (55.2).

Investments

The Group s investments in fixed assets amounted to SEK 7.5 M (7.7).

Seasonal variations

The number of working days during the year:

	Jan-Mar	Apr - June	Jul-Sep	Oct-Dec	Full-year
Sweden	62(64)	62(59)	66(65)	62(62)	252(250)
Germany	62(64)	62(59)	66(65)	61(63)	251(251)
UK	61(64)	63(61)	64(64)	63(63)	251(252)

Employees

The average number of annual employees was 2,108 (2,109). On June 30, 2008, the number of employees was 2,432 (2,408).

Parent Company

The Parent Company engages in general corporate management, development, financial and IT management. Revenues during the period amounted to SEK 11.4 M (5.1) and a loss after financial items of SEK 1.7 M (loss: 2.6). Profit includes gains from the divestment of subsidiaries of SEK 5.6 M. Profit for 2007 included dividends of SEK 5.6 M from subsidiaries.

Market trend

Demand in all of Poolia s markets was positive during the quarter with the exception of the UK, where demand declined primarily within the banking sector. In several markets, competition for professional candidates is keen, particularly IT and accounting specialists.

Significant risks and uncertainties

Risks and risk management are described in Poolia s Annual Report for 2007. The risks can be summarized as changes in the economic trend, customer and individual dependence, legislation and regulations and financial risks. All significant risks and uncertainties for Poolia that existed on December 31, 2007 also existed on June 30, 2008.

	Jan-June	Jan-June	Apr-June	Apr-June	Jan-Dec
SEK M	2008	2007	2008	2007	2007
Operating revenues	727.1	660.1	366.9	322.5	1 339.7
Personnel costs	-606.3	-561.8	-307.6	-276.2	-1 139.7
Other costs	-59.5	-57.4	-28.0	-28.1	-122.7
Depreciation of fixed assets	-3.3	-3.4	-1.6	-2.1	-7.3
Operating profit	58.0	37.5	29.7	16.1	70.0
Financial items	1.6	1.2	0.4	0.7	2.8
Profit after financial items	59.6	38.7	30.1	16.8	72.8
Tax	-16.5	-9.8	-8.5	-4.3	-7.5
Profit for the period	43.1	28.9	21.6	12.5	65.3
Attributable to Parent Company shareholders	43.0	28.9	21.5	12.5	65.3
Minority share in profit for the period	0.1	-	0.1	-	-
Earnings per share, SEK	2.37	1.57	1.21	0.68	3.54

Condensed consolidated income statement, Group

Condensed consolidated balance sheet, Group

SEK M	June 30, 2008June 30, 2007Dec 31, 2007
Assets
Goodwill	93.2	99.6	98.8
Other fixed assets	32.5	24.9	28.7
Deferred tax assets	17.9	7.4	17.9
Current receivables	256.4	260.8	244.2
Cash and cash equivalents	80.2	78.3	111.4
Total assets	480.2	471.0	501.0
Shareholders equity and liabilities
Shareholders equity	252.3	260.2	293.6
Minority share of shareholders equity	0.8	-	-
Long-term liabilities	2.1	0.2	2.1
Current liabilities	225.0	210.6	205.3
Total shareholders equity and liabilities	480.2	471.0	501.0
Pledged assets and contingent liabilities	0.8	0.6	0.2

Change in Group shareholders equity

	Jan-June	Jan-June
SEK M	2008	2007
Amount at the beginning of the period	293.6	275.4
Own shares acquired	-30.6	0
Dividends	-46.2	-46.2
Translation differences	-7.5	2.1
Profit for the period attributable to the Parent Company shareholders	43.0	28.9
Amount at the end of the period attributable to Parent Company shareholders	252.3	260.2
Minority share of shareholders equity	0.8	-
Amount at the end of the period including minority share	253.1	260.2

Condensed cash-flow statement, Group

	Jan-June	Jan-June	Apr-June	Jan-Dec
SEK M	2008	2007	2008	2007
Cash flow from operating activities	53.9	34.0	29.9	77.7
Cash flow from investing activities	-6.3	-7.7	-3.3	-15.3
Cash flow from financing activities	-76.8	-46.2	-76.8	-46.2
Cash flow for the period	-29.2	-19.9	-50.2	16.2
Cash and cash equivalents at the beginning of the period	111.4	95.5	129.6	95.5
Exchange-rate differences in cash and cash equivalents	-2.0		2.7 0.8	-0.3
Cash and cash equivalents at the end of the period	80.2	78.3	80.2	111.4

Key ratios, Group

	Jan-June	Jan-June	Apr-June	Apr-June	Jan-Dec
SEK M	2008	2007	2008	2007	2007
Operating margin, %	8.0	5.7	8.1	5.0	5.2
Profit margin, %	8.2	5.9	8.2	5.2	5.4
Return on capital employed, %,
(12-month rolling basis)	36.8	30.3	-	-	25.6
Return on total capital, %,
(12-month rolling basis)	19.9	16.9	-	-	15.0
Return on shareholders equity, %,
(12-month rolling basis)	31.0	22.1	-	-	23.0
Equity/assets ratio, %	52.7	55.2	52.7	55.2	58.6
Share of risk-bearing capital, %	53.1	55.2	53.1	55.2	59.0
Average number of annual employees	2 108	2 109	2 116	2 114	2 136
Revenue per employee, SEK 000s	345	313	173	153	627
Average number of shares (000)	18 127	18 467	17 788	18 467	18 467
Number of shares outstanding (000)	17 545	18 467	17 545	18 467	18 467
Earnings per share, SEK,
before and after dilution	2.37	1.57	1.21	0.68	3.54
Shareholders equity per share, SEK	14.38	14.09	14.38	14.09	15.90

The key ratios Return on shareholders equity, Earnings per share and Shareholders equity per share are calculated excluding minority share.

Parent Company s income statement, summary

	Jan-June	Jan-June	Apr-June	Apr-June	Jan-Dec
SEK M	2008	2007	2008	2007	2007
Net sales	11.4	5.1	5.8	2.6	9.9
Personnel costs	-9.7	-8.3	-5.1	-4.6	-16.6
Other costs	-8.9	-5.4	-4.5	-2.1	-9.6
Operating loss	-7.2	-8.6	-3.8	-4.1	-16.3
Financial items	5.5	6.0	5.2	0.1	10.5
Profit/loss after financial items	-1.7	-2.6	1.4	-4.0	-5.8
Tax	2.0	0.7	1.2	1.1	5.6
Profit/loss for the period	0.3	-1.9	2.6	-2.9	-0.2

Parent Company s balance sheet, summary

SEK M	June 30, 2008June 30, 2007Dec 31, 2007
Assets
Participations in Group companies	122.4	128.2	128.2
Other fixed assets	11.4	-	-
Current receivables	61.5	97.4	116.0
Cash and cash equivalents	18.0	9.9	45.8
Total assets	213.3	235.5	290.0
Shareholders equity and liabilities
Shareholders equity	207.4	231.2	283.9
Current liabilities	5.9	4.3	6.1
Total shareholders equity and liabilities	213.3	235.5	290.0

Events after the close of the report period

There are no significant events to report.

Related-party transactions

In accordance with the Annual General Meeting resolution, 4% of the shareholdings in Dedicare AB was sold to Dedicare s Managing Director, Stig Engcrantz, on May 1, 2008. Otherwise, there were no transactions with related parties that significantly affected the company s position and revenues during the period.

Forthcoming financial reporting dates

October 29, 2008 at 8:00 a.m.	Interim report January September 2008
February 12, 2009 at 8:00 a.m.	Year-end Report 2008
April 28, 2009 at 4:00 p.m.	Annual General Meeting 2009

Accounting principles

The interim report was prepared in accordance with IAS 34 and the Annual Accounts Act and for the Parent Company in accordance with the Annual Accounts Act and RFR 2.1, Reporting for legal entities. The consolidated accounting was prepared in accordance with IFRS. The same accounting principles and valuation methods were applied in this interim report as in the most recent annual report.

The Board of Directors and Managing Director and CEO hereby certify that the interim report provides a fair view of the Parent Company and the Group s operations, position and revenues and describes significant risks and uncertainties facing the company and the companies included in the Group.

Stockholm, July 18, 2008

Björn Örås Per Uebel Chairman of the Board Board member

Board member Board member

Curt Lönnström Monica Caneman

Margareta Barchan Johan Eriksson Board member CEO

This interim report has not been reviewed by the company s auditors.

For further information, please contact:

Johan Eriksson, Managing Director and CEO, Tel: +46 (0)8-555 650 60 Mats Påhlson, Chief Financial Officer, Tel: +46 (0)8-555 650 20

Poolia AB (publ) Warfvinges väg 20 Box 30081 SE-104 25 Stockholm Tel: +46 (0)8-555 650 00 Fax: +46 (0)8-555 650 01 Corp. Org. No. 556447-9912 www.poolia.com