PION Group — Interim / Quarterly Report 2007

Feb 22, 2008

ENGLISH VERSION OF THE YEAR-END REPORT PUBLISHED ON FEBRUARY 21

Managing Director and CEO Johan Eriksson comments on Poolia s Year-end Report for 2007

Positive trend in Sweden, Germany and Dedicare Restructuring completed in the UK

Revenues

In 2007, Poolia became larger than ever before. With revenues of SEK 351 M in the fourth quarter, we achieved full-year revenues of SEK 1,340 M, equal to growth of 10% compared with 2006. However, the growth was unevenly distributed among our markets. The strongest trend was reported by Poolia Germany, which gained momentum after last year s restructuring and grew during the year by a total of 85% within comparable units. Healthcare company, Dedicare, which is now market leading in Sweden in temporary nurse staffing, also had a very positive trend during 2007, growing 62% during the year.

In contrast, Poolia UK reported weaker revenues than in 2006, in both the fourth quarter and the full year. This was partly due to the smaller offices outside London that were discontinued during the fourth quarter requiring considerable management resources. We will establish more offices in the UK in the future, but this will not be realised until we have a significantly more stable and profitable base in London. We will also continue to work to reduce our dependence on the banking sector and broaden our client base in the UK.

Our largest unit, Poolia Sweden, grew by a total of 14% during the year. A large number of newly recruited employees and insufficient pressure on sales resulted in Sweden losing momentum at mid-year, and the fourth quarter also included an employee-friendly Christmas with two working days fewer than 2006, which also affected growth. The measures that were implemented were fruitful and, calculated per working day, fourth quarter revenues were significantly higher than the year-earlier level and displayed a rising trend.

Earnings

The operating margin for the Group totalled 3.7% for the quarter and 5.2% for the full year. Similar to the growth pattern, earnings were unevenly distributed among the Group s units. Sweden, Germany and Dedicare all had margins ranging between 8% and 10% during the year, while the UK reported a loss.

Excluding the approximately SEK 15 M representing costs for the discontinued offices during the year, earnings in the UK were nevertheless positive. In conjunction with the closure, we adapted the organisation and reduced overhead expenses in order to better adapt to the new direction involving a full focus on London. The reduction in overheads, which was implemented in two stages during the second half of the year, resulted in a halving of the number of employees within staffing and support functions. The former managing director of Poolia UK left the company and was succeeded by the sales director, Shaun Greenfield as acting managing director.

During the fourth quarter, Poolia Sweden conducted a comprehensive marketing effort, which meant that 40% of the year s advertising costs in Sweden were charged against that quarter. The three commercials with high profile businessmen Jan Carlzon, Claes Dahlbäck and Olof Stenhammar were very well received and led to a significant increase in recognition for Poolia by the target groups. Poolia is now associated with the recruitment and staffing of professionals by 50% of the general public, which is our desired market position.

Market

The uncertainty presently prevailing concerning the economic trend in Western Europe had no negative effects on demand for Poolia s services. However, we are carefully monitoring developments and are prepared to take action if needed.

Johan Eriksson

Poolia s year-end report 2007

• Revenues amounted to SEK 1,339.7 M (1,212.4)
• Operating profit amounted to SEK 70.0 M (74.7)
• Profit after financial items amounted to SEK 72.8 M (76.6)
• Profit after taxes amounted to SEK 65.3 M (55.3)
• Earnings per share amounted to SEK 3.54 (3.00)
• Cash flow from operating activities amounted to SEK 77.7 M (24.7)
• Dividend proposed amounts to SEK 2.50 per share (2.50), of which SEK 1.50 is an extraordinary dividend

January - December

Revenues

Revenues for the Group rose 10% to SEK 1,339.7 M (1,212.4). Exchange-rate changes had only a marginal effect on revenues for the period. The strongest growth was reported by the operations in Germany and Dedicare. Sweden grew 14%. Revenues for the UK declined, partly due to the smaller offices in London that were discontinued during the fourth quarter requiring considerable management resources. During the year, these offices generated revenues totalling SEK 9.0 M. Temporary Staffing was the predominant service area. The portion of recruitment increased from 10% to 11%. Finance/accounting was the largest professional area in absolute terms.

Revenues for the Temporary Staffing operations were distributed in the following professional areas:

Finance/accounting	43%
Administration	25%
IT	14%
Engineering	4%
Healthcare (Dedicare)	15%

Earnings

Profit after financial items amounted to SEK 72.8 M (76.6). Operating profit totalled SEK 70.0 M (74.7). The operating margin was 5.2% (6.2). The outcome in the preceding year included SEK 5.0 M for the reversal of restructuring reserves in Germany.

Poolia Sweden reported operating profit of SEK 77.6 M (72.0) and an operating margin of 9.9% (10.4). Operating profit for other Nordic countries, including Denmark and Finland, was SEK 0.5 M (0.1). In Germany, operating profit totalled SEK 7.0 M (loss: 1.1) and the operating margin was 9.7%. In the UK, an operating loss of SEK 12.5 M (profit: 7.6) was reported for the period. Operating profit for Dedicare was SEK 13.7 M (6.9) and its operating margin was 7.9% (6.4).

Earnings include operations under establishment in Düsseldorf, Cologne and London/Canary Wharf amounting to a loss of SEK 2.0 M (loss: 2.3). During the fourth quarter, a decision was made to discontinue the smaller offices in the UK, located outside London. Including all costs in conjunction with the closure, the UK reported a loss of SEK 14.7 M (loss: 4.5) for the period.

The Group s financial items amounted to SEK 2.8 M (1.9). Non-distributed Parent Company costs amounted to SEK 16.3 M (10.8). These costs increased compared with the preceding year, partly as a result of the earlier implemented switch of managing director and partly increased central expenses to support operations outside Sweden.

The tax rate for the Group was 10% (28). The lower tax rate was due to the positive earnings trend in Germany resulting in a revaluation of this unit s accumulated loss carryforwards and deferred tax assets.

Fourth quarter

Revenues

Revenues for the Group increased by 8% to SEK 351.1 M (325.9). Exchange-rate changes had a negative impact of 0.3% during the quarter. Temporary Staffing was the largest service area. The proportion of Permanent Recruitment increased from 9% to 10%. Finance/accounting was the largest professional area in absolute terms.

The number of working days during the quarter was 62 (63).

Revenues in the Swedish market displayed continued growth. Revenues for the quarter amounted to SEK 213.1 M (200.3), up 6%. During the third quarter, the Stockholm and Eastern regions reported lower growth rates than earlier in the year. Measures were taken to increase sales power, which were effective and revenues per working day throughout Sweden for the fourth quarter were 8% higher than in the fourth quarter in 2006. This represents an increase compared with the corresponding figure for the third quarter, which was 6% above the third quarter of 2006.

Revenues in Other Nordic countries were SEK 10.1 M (13.1). The proportion of permanent recruitment increased significantly. The outcome for 2006 included revenues of SEK 1.0 M for the operation in Oslo, which was discontinued in December 2006.

Revenues in Germany totalled SEK 19.9 M (11.2). All regions reported growth with the strongest development in Munich.

In the UK, sales decreased by 17% to SEK 57.5 M (69.7). The decrease in local currency was 14%. The decrease was due to several factors, partly Poolia s decision to discontinue a number of businesses with low margins within the banking sector, partly the weak quarter in the banking segment and finally the discontinuation of the smaller offices outside London.

Dedicare (formerly Poolia Healthcare), which comprises healthcare operations in Sweden and Norway, had sales totalling SEK 50.5 M (31.6). Growth was strong in both markets.

Earnings

Profit after financial items totalled SEK 14.2 M (18.9). Operating profit amounted to SEK 13.1 M (18.2) and the operating margin was 3.7% (5.6).

Poolia Sweden reported operating profit of SEK 17.2 M (24.6). The operating margin was 8.1% (12.3). Profitability was favourable in all regions. Costs for an extensive marketing campaign during the quarter impacted the operating margin. Operating profit for the other Nordic countries was SEK 0.4 M (loss: 0.8). The outcome for 2006 included a loss of SEK 1.3 M for the operations in Oslo that were discontinued in December 2006.

In Germany, operating profit totalled SEK 1.2 M (loss: 2.3). The operating margin was 6.0% (neg). The operations under establishment (offices in Düsseldorf and Cologne) made a negative contribution of SEK 0.1 M (1.1).

In the UK, an operating loss of SEK 5.9 M (loss: 2.2) was reported for the period. All offices outside London were discontinued during the fourth quarter. The loss from these offices during the quarter was SEK 2.9 M. In conjunction with the closure of offices, the organisation and central overhead were adapted, which resulted in extra expenses of approximately SEK 2 M being charged against the fourth quarter. The reduction of overheads that occurred in two phases during the second half of the year resulted in nearly a halving of the number of employees within staffing and support functions.

Operating profit for Dedicare was SEK 4.5 M (2.5) and the operating margin was 8.9% (7.9). Increased price pressure was offset by greater efficiency on the part of temporary recruitment consultants and volume benefits pertaining to overheads.

Non-distributed Parent Company costs amounted to SEK 4.3 M (3.6).

Information about operating sectors and geographic regions

January - December

Revenues and operating results

	2007 Jan-Dec Operating revenues	2007 Jan-Dec Operating profit/loss	2006 Jan-Dec Operating revenues	2006 Jan-Dec Operating profit/loss
Poolia Sweden	783.3	77.6	689.8	72.0
Poolia, Other Nordic	38.3	0.5	51.0	0.1
Poolia Germany	72.5	7.0	47.6	-1.1
Poolia UK	271.9	-12.5	316.5	7.6
Dedicare	173.7	13.7	107.5	6.9
Non-distributed Parent Company costs		-16.3		-10.8
Total	1,339.7	70.0	1 212.4	74.7

October December Revenues and operating results

	2007 Oct-Dec Operating revenues	2007 Oct-Dec Operating profit/loss	2006 Oct-Dec Operating revenues	2006 Oct-Dec Operating profit/loss
Poolia Sweden	213.1	17.2	200.3	24.6
Poolia, Other Nordic	10.1	0.4	13.1	-0.8
Poolia Germany	19.9	1.2	11.2	-2.3
Poolia UK	57.5	-5.9	69.7	-2.2
Dedicare	50.5	4.5	31.6	2.5
Non-distributed Parent Company costs		-4.3		-3.6
Total	351.1	13.1	325.9	18.2

Liquidity and financing

On December 31, 2007, the Group s cash and cash equivalents amounted to SEK 111.4 M (95.5). Cash flow from operating activities during the year amounted to SEK 77.7 M (24.7). Dividend payments on shares totalled SEK 46.2 M. The equity/assets ratio was 58.6% (58.6).

Investments

The Group s investments in fixed assets amounted to SEK 16.1 M (10.9).

Employees

The average number of annual employees was 2,136 (2,047). The total number of employees on December 31, 2007 was 2,391 (2,238).

Parent Company

The Parent Company engages in general corporate management, development and financial management activities. Revenues during the period amounted to SEK 9.9 M (10.7) and a loss after financial items of SEK 5.8 M (loss: 3.6) was reported. Financial items included a dividend of SEK 9.8 M (6.7) from subsidiaries.

Market trend

Demand in all of Poolia s markets remained favourable during the period. This applied to both temporary staffing and, even more so, to permanent recruitment. In several of the markets, competition for professional candidates is keen, particularly specialists in IT and finance/accounting.

According to statistics from the Swedish Association of Staffing Agencies, the 125 largest member companies reported revenues of nearly SEK 20 billion during 2007. The 35 largest companies, which are the basis of the calculation of market shares, reported revenues of SEK 15.6 billion during the same period, up 18% compared with 2006. The market in which Poolia is active, temporary staffing and permanent recruitment within the professional sector, reported revenues of approximately SEK 7.8 billion during the year, an increase of 22%. In this market, Poolia s share was 10.1% during 2007, a decrease compared with 10.8% in 2006.

Significant risks and uncertainties

Risker och riskhantering finns beskrivet i Poolias årsredovisning för 2006. Riskerna kan sammanfattas i konjunkturförändringar, kund- och personberoende, ansvarsrisker, lagstiftning och regleringar samt finansiella risker. Samma väsentliga risker och osäkerhetsfaktorer för Poolia som förelåg per 2006-12-31 föreligger per 2007-12-31.

Condensed consolidated income statement

	Jan-Dec	Jan-Dec	Oct-Dec	Oct-Dec
SEK M	2007	2006	2007	2006
Operating revenues	1,339.7	1,212.4	351.1	325.9
Personal costs	-1,139.7	-1,029.2	-300.2	-272.7
Other costs	-122.7	-103.7	-36.2	-32.7
Depreciation of fixed assets	-7.3	-4.8	-1.6	-2.3
Operating profit	70.0	74.7	13.1	18.2
Financial items	2.8	1.9	1.1	0.7
Profit after financial items	72.8	76.6	14.2	18.9
Tax	-7.5	-21.3	7.4	-5.3
Profit for the period	65.3	55.3	21.6	13.6
Earnings per share
before dilution, SEK	3.54	3.00	1.17	0.73
Earnings per share
after dilution, SEK	3.54	3.00	1.17	0.73

Condensed consolidated balance sheet

SEK M	Dec.31, 2007Dec.31, 2006
Assets
Goodwill	98.8	99.5
Other fixed assets	28.7	21.5
Deferred tax assets	17.9	7.4
Current receivables	244.2	246.3
Cash and cash equivalents	111.4	95.5
Total assets	501.0	470.2
Shareholders equity and liabilities
Shareholders equity	293.6	275.4
Long-term liabilities	2.1	0.5
Current liabilities	205.3	194.3
Total shareholders equity and liabilities	501.0	470.2
Pledged assets and contingent liabilities	0.2	1.5

Change in Group shareholders equity

	Jan-Dec	Jan-Dec
SEK M	2007	2006
Amount at the beginning of the period	275.4	226.8
New share issues	0	0.3
Dividend	-46.2	-4.6
Translation differences	-0.9	-2.4
Net profit for the period	65.3	55.3
Amount at the end of the period	293.6	275.4

Condensed cash flow statement, Group

	Jan-Dec	Jan-Dec	Oct-Dec
SEK M	2007	2006	2007
Cash flow from operating activities	77.7	24.7	28.7
Cash flow from investing activities	-15.3	-10.8	-3.7
Cash flow from financing activities	-46.2	-4.4	-
Cash flow during the period	16.2	9.5	25.0
Cash and cash equivalents on January 1	95.5	88.2	87.5
Exchange-rate differences in cash and cash equivalents	-0.3	-2.2	-1.1
Cash and cash equivalents at the end of the period	111.4	95.5	111.4

Key figures
	Jan-Dec	Jan-Dec	Oct-Dec	Oct-Dec
SEK M	2007	2006	2007	2006
Operating margin, %	5.2	6.2	3.7	5.6
Profit margin, %	5.4	6.3	4.0	5.8
Return on capital employed, %,
(12 month rolling basis)	25.6	30.5	-	-
Return on total capital, %,
(12 month rolling basis)	15.0	17.8	-	-
Return on shareholders equity, %	23.0	22.0	-	-
(12 month rolling basis)
Equity/assets ratio, %	58.6	58.6	58.6	58.6
Share of risk-bearing capital, %	59.0	58.6	59.0	58.6
Average number of annual employees	2,136	2,047	2,178	2,093
Revenues per employee, SEK 000s	627	592	161	156
Average number of shares,
before dilution	18,467	18,461	18,467	18,467
Number of shares outstanding,
before dilution (000)	18,467	18,467	18,467	18,467
Average number of shares,
after dilution * (000)	18,467	18,461	18,467	18,467
Number of shares outstanding,
after dilution * (000)	18,467	18,467	18,467	18,467
Earnings per share,
before dilution	3.54	3.00	1.17	0.73
Shareholders equity per share,
before dilution, SEK	15.90	14.91	15.90	14.91
Earnings per share,
after dilution, SEK*	3.54	3.00	1.17	0.73
Shareholders equity per share,
after dilution, SEK*	15.90	14.91	15.90	14.91

*The dilution effects of the options programmes outstanding from 2003 have been taken into account. On December 31, 2007, there were no outstanding options programmes..

Parent Company s income statement, summary

	Jan-Dec	Jan-Dec	Oct-Dec	Oct-Dec
SEK M	2007	2006	2007	2006
Net sales	9.9	10.7	2.2	3.2
Personnel costs	-16.6	-11.9	-4.2	-3.4
Other costs	-9.6	-9.5	-2.3	-3.7
Operating loss	-16.3	-10.7	-4.3	-3.9
Financial items	10.5	7.1	0.3	6.5
Loss after financial items	-5.8	-3.6	-4.0	2.6
Tax	5.6	2.9	2.4	1.2
Profit/loss for the period	-0.2	-0.7	-1.6	3.8

Parent Company s balance sheet, summary

SEK M	Dec.31, 2007Dec.31, 2006
Assets
Participations in Group companies	128.2 128.2
Current receivables	116.8 127.2
Cash and cash equivalents	45.8 41.4
Total assets	290.8 296.8
Shareholders equity and liabilities
Shareholders equity	283.9 279.9
Current liabilities	6.9 16.9
Total shareholders equity and liabilities	290.8 296.8

Events after the end of the report period

There are no significant events to report.

Transactions with related parties

There were no transactions with related parties that significantly affected the company s position and revenues during the period.

Forthcoming financial reporting dates and Annual General Meeting

Interim Report January March	April 24, 2008 at 1:00 p.m.
Interim Report January June	July 18, 2008 at 1:00 p.m.
Interim Report January September	October 29, 2008 at 8:00 a.m.

The Annual General Meeting will be held at the company s offices in Stockholm at Warfvinges väg 20, 5th floor, on April 14, 2008 at 4:00 p.m. The Annual Report will be available from March 31 and will be distributed to all shareholders.

Dividend proposal

In a situation of organic growth, Poolia s operations are generating cash flow that exceeds the requirement for working capital and the dividend to be paid shareholders according to the dividend policy (30% profit after tax). The company s growth strategy includes both organic growth and acquisitions, the latter primarily when entering new markets.

In view of this, the Board of Directors wants to make an adjustment ofshareholders equity by SEK 28 M. Accordingly, the Board proposes a total dividend of SEK 2.50 per share (2.50), of which SEK 1.50 per share is an extraordinary dividend.

Thus, a total of SEK 46 M will be distributed to shareholders. Poolia s equity/assets ratio will amount to 54.4% following the proposed ordinary and extraordinary dividends.

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. The consolidated accounts were prepared in accordance with IFRS. As of January 1, 2007, IFRS 7, the addendum to IAS 1 and IFRIC 7, 8, 9 and 10 are applied. These new regulations had no impact on this report, but will affect Poolia s annual report for 2007. 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 the Managing Director hereby certify that the interim report provides an accurate overview of the Parent Company and the Group s operations, position and earnings, and describes significant risks and uncertainties that face the company and Group companies.

Stockholm, February 21, 2008

Björn Örås Per Uebel Chairman of the Board Board member

Margareta Barchan Monica Caneman Board member Board member

Johan Eriksson Managing Director and CEO

Curt Lönnström Mats Sundström Board member Board member

This 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. Reg. No: 556447-9912 www.poolia.com