PION Group — Interim / Quarterly Report 2010

Apr 28, 2010

Poolia's Interim Report 1 January – 31 March 2010

• Revenues totalled MSEK 308.3 (353.5)
• The operating profit was MSEK 1.4 (18.4)
• The profit before tax was MSEK 1.4 (18.9)
• The profit after tax was MSEK 0.5 (13.5)
• Earnings per share totalled SEK 0.03 (0.79)
• Cash flow from operating activities was MSEK -11.0 (-1.2)

Johan Eriksson, Poolia's MD and CEO, comments on the financial results:

Since the fourth quarter of 2009 the market for staffing services has gradually improved. With the trend that we have seen during the first quarter 2010, we can confirm a continued rise in demand in the areas of both temporary staffing and permanent placement. As permanent placement is one of our focus areas just now, it feels particularly pleasing that this activity is booming so early in the recovery phase. In 2009, when the permanent placement ratio declined significantly, it became especially clear to us how important it is for our margins. We believe that the pattern that we are now seeing will also continue during the second quarter, which indicates a positive trend.

Last year we were forced to make cutbacks in the workforce. The growth that we are currently seeing in the market means that we are now expanding the organisation again so that we can better meet our clients' needs. It should be emphasised that the rise in demand will not be immediately visible in the profit and that last year's first quarter was relatively unaffected by the recession.

The market in healthcare staffing has not been as favourable, but declined during the first quarter in both Sweden and Norway. This indicates that this segment is later in the cycle than our other activities.

We have continued to develop a new business area, Outplacement, since autumn 2009. This business area is still a small one in Poolia, and only operates within the Swedish business.

Our focus continues to be on offering our clients the competence and quality that are Poolia's hallmark. The rationalisation measures that we implemented last year mean that we can now continue work to improve our profitability. With the recession behind us, we are optimistic about the future and look forward to a rewarding year of collaboration with all of our clients and candidates.

Johan Eriksson

Poolia's Interim Report 1 January – 31 March 2010

• Revenues totalled MSEK 308.3 (353.5)
• The operating profit was MSEK 1.4 (18.4)
• The profit before tax was MSEK 1.4 (18.9)
• The profit after tax was MSEK 0.5 (13.5)
• Earnings per share totalled SEK 0.03 (0.79)
• Cash flow from operating activities was MSEK -11.0 (-1.2)

January - March

Revenues

Revenues for the Group fell by 12.8% to MSEK 308.3 (353.5). The exchange rate effect had a negative effect on revenues of 1.5% during the quarter. Temporary staffing is the largest service area. The permanent placement service area has returned to growth and the proportion of business in permanent placement has risen from 6% to 7%. The situation for all segments is that the global recession did not have a major impact on the outcome for the first quarter of 2009, which means that the comparative figures are relatively strong in terms of both revenues and operating profit.

Revenues for Poolia Sweden totalled MSEK 174.5 (197.1), a fall of 11% compared with the corresponding period in the previous year. The permanent placement area in Poolia Sweden recorded strong growth, with revenues rising by 61%. The proportion of business in permanent placement increased during the period from 5% to 9%. There are geographical variations in the trend. The biggest downturn was seen in Stockholm, followed by Örebro and Norrköping.

Revenues in Denmark fell by 36% to MSEK 1.6 (2.5). The proportion of business in permanent placement increased from 36% to 48%.

Revenues in Finland fell by 12% to MSEK 7.4 (8.4). The exchange rate effect had a negative impact on revenues of 8% during the quarter. The proportion of business in permanent placement increased from 12% to 14%.

Revenues in Germany fell by 20% to MSEK 22.4 (28.0). The exchange rate effect had a negative impact on revenues of 7% during the quarter. The proportion of business in permanent placement fell from 14% to 10%.

In the UK revenues fell by 17% to MSEK 29.6 (35.5). The exchange rate effect had a negative impact on revenues of 6% during the quarter. The proportion of business in permanent placement remains unchanged at 12%.

Dedicare, which deals in the temporary staffing of doctors and nurses in Sweden and Norway, saw its revenues fall by 11% to MSEK 73.0 (82.1). This slowdown, which was first seen in the segment during the previous quarter, continued during this quarter. This quarter is the first to see a fall in revenues in this economic cycle.

Financial results

The profit before tax was MSEK 1.4 (18.9). The operating profit was MSEK 1.4 (18.4) and the operating margin 0.5% (5.2). The profit includes the costs of business expansion with a view to meeting an increase in demand from clients.

The operating profit in Poolia Sweden was MSEK 5.1 (16.0). The operating margin was 2.9% (8.1). The profit was under pressure from a fall in margins in temporary staffing as well as costs associated with preparations for growth. The profit includes one-off costs to the order of MSEK 1.8 (0.8).

The operating profit for Denmark was MSEK 0.2 (-0.8). The operating margin was 12.8% (neg.). The operating loss has been turned into a profit because of the consolidation of the business that was implemented last year.

The operating profit in Finland was MSEK 0.4 (0.5), and the operating margin was 5.8% (5.6). A higher proportion of business in permanent placement means a slightly higher operating margin.

The operating profit in Germany was MSEK 0.1 (2.1). The operating margin was 0.5% (7.5). A lower proportion of business in permanent placement has an effect on the operating margin The offices in Cologne and Hanover are small, relatively new units, which are making a negative contribution to the profit.

The UK reported an operating loss for the period of MSEK 1.8 (loss: 1.0). Intensive work is now being undertaken to achieve the increased revenue volumes required to generate a profit.

The operating profit for Dedicare was MSEK 3.3 (6.2), and the operating margin was 4.5% (7.5). The profit was affected by lower volumes and increased competition putting pressure on margins.

Non-distributed parent company costs totalled MSEK 5.9 (4.6). Consolidated profit after financial items was MSEK 0.0 (0.5). The tax rate for the Group was 61% (28%). The tax rate is affected by a non-posted tax asset for business activity that generated a loss during the period.

Information about operational branches and geographical regions

Poolia applies segment reporting based on internal reporting, which means a division into both geographical regions and business segments. Poolia's geographical segments are Sweden, Finland, Denmark, Germany and the UK. One business segment is made up of healthcare operations, temporary staffing of doctors and other healthcare professionals, and the second is Poolia's other operations, i.e. temporary staffing and permanent placement of skilled professionals. Healthcare activities form an independent segment as the market, clients, candidate structure and business logic differ from Poolia's other activities. Healthcare activities are conducted under their own operational management and are established in Sweden, Norway and Finland. These activities are not reported separately according to the geographical division due to their relatively limited scope in Norway and Finland. There was no change in this division in 2010. Nor were there any significant changes in total assets or the distribution of assets within or between segments.

Jan – Mar Revenues and operating profit (loss)

	2010 Jan-Mar Operating revenues	2010 Jan-Mar Operating profit (loss)	2009 Jan-Mar Operating revenues	2009 Jan-Mar Operating profit (loss)
Poolia Sweden	174.5	5.1	197.1	16.0
Poolia Finland	7.4	0.4	8.4	0.5
Poolia Denmark	1.6	0.2	2.5	-0.8
Poolia Germany	22.4	0.1	28.0	2.1
Poolia UK	29.6	-1.8	35.5	-1.0
Dedicare	73.0	3.3	82.1	6.2
Non-distributed parent company		-5.9		-4.6
costs
Total	308.3	1.4	353.5	18.4

Liquidity and financing

The Group's cash and cash equivalents as at 31 March 2010 totalled MSEK 54.2 (114.3). Cash flow from operating activities during the period was MSEK -11.0 (MSEK -1.2). The equity/assets ratio as of 31 March 2010 was 49.9% (56.6).

Investments

The Group's investments in fixed assets in the period January-March totalled MSEK 0.1 (0.5).

Seasonal fluctuations

The number of working days during the year is:

	Jan-Mar	Apr-Jun	Jul-Sep	Oct-Dec	Full year
Sweden	62(62)	61(60)	66(66)	64(63)	253(251)
Germany	63(63)	60(59)	66(66)	63(63)	252(251)
UK	60(64)	61(61)	64(64)	68(64)	253(253)

Employees

The average number of annual employees was 1 746 (2 007). As of 31 March 2010 the total number of employees was 2 058 (2 266).

Parent company

The parent company engages in general corporate management, development and financial management and IT administration. Revenues during the period totalled MSEK 5.1 (5.2), and there was a loss after financial items of MSEK 5.9 (loss: 4.6).

Market trend

Last year the global recession had an extremely negative impact on all markets where Poolia operates. At present we are seeing a positive change in our order books, primarily in the demand for permanent placement services. We believe that this change is sustainable, which means that the business is now being adjusted for growth and, in the long term, increased profitability. The exception is the healthcare business Dedicare, where we saw a drop in demand during this period.

We believe that the economy, which has a strong influence on our business, is in a positive trend. We have for some time now seen more optimistic signs, signs that are now being translated into business. In the longer term we feel that a healthier economy will boost demand for permanent placement services and also increase market penetration, improving the proportion of hired personnel.

Significant risks and uncertainty factors

Risks and risk management are described in Poolia's annual report for 2009. The risks can be summarised as economic fluctuations, dependence on clients and individuals, legislation and regulation, and financial risks. All significant risks and uncertainty factors that existed on 31-12-2009 also exist on 31-03-2010.

			Summary statement of consolidated comprehensive income
--	--	--	--------------------------------------------------------

	Jan-Mar	Jan-Mar	Jan-Dec
MSEK	2010	2009	2009
Operating revenues	308.3	353.5	1 311.1
Personnel expenses	-278.4	-307.1	-1 163.4
Other costs	-26.3	-25.9	-104.7
Depreciation and impairment of fixed assets	-2.2	-2.1	-14.6
Operating profit (loss)	1.4	18.4	28.4
Financial items	0.0	0.5	2.2
Profit before tax	1.4	18.9	30.6
Tax	-0.9	-5.4	-12.1
Profit (loss) for the period	0.5	13.5	18.5
Other comprehensive income
Translation differences	-5.8	4.8	0.1
Comprehensive income for the period	-5.3	18.3	18.6
Profit for the period attributable to:
Parent company's shareholders	0.4	13.3	17.8
Minority shareholders	0.1	0.2	0.7
Basic and diluted earnings per share, SEK	0.03	0.79	1.04
Comprehensive income attributable to:
Parent company's shareholders	-5.4	18.1	17.9
Minority shareholders	0.1	0.2	0.7

Summary of the consolidated balance sheet

MSEK		31-03-2010 31-03-2009 31-12-2009
Assets
Goodwill	88.0	93.6	91.5
Other fixed assets	22.8	33.6	24.9
Deferred tax assets	16.7	17.5	16.8
Current receivables	250.2	267.2	221.8
Cash and cash equivalents	54.2	114.3	67.8
Total assets	431.9	526.2	422.8
Equity and liabilities
Equity	213.6	296.3	219.0
Minority share of equity	2.0	1.4	2.0
Long-term liabilities	2.4	8.3	2.4
Current liabilities	213.9	220.2	199.4
Total equity and liabilities	431.9	526.2	422.8
Pledged assets and contingent liabilities	0.2	0.2	0.2

Change in Group equity

	Jan-Mar	Jan-Mar
MSEK	2010	2009
Opening amount	219.0	278.2
Comp. income for period attributable to the parent company's shareholders	-5.4	18.1
Closing amount attributable to the parent company's shareholders	213.6	296.3
Minority share of equity	2.0	1.4
Closing amount including minority share	215.6	297.7

Summary of the consolidated cash flow statement

		Jan-Mar Jan-Mar	Jan-Dec
MSEK	2010	2009	2009
Cash flow from operating activities	-11.0	-1.2	35.8
Cash flow from investment activities	-0.1	-0.5	-6.0
Cash flow from financing activities	-	-	-77.0
Cash flow for the period	-11.1	-1.7	-47.2
Opening cash and cash equivalents	67.8	116.5	116.5
Exchange rate difference in cash and cash equivalents	-2.5	-0.5	-1.5
Closing cash and cash equivalents	54.2	114.3	67.8

The Group's key ratios

	Jan-Mar	Jan-Mar	Jan-Dec
MSEK	2010	2009	2009
Operating margin, %	0.5	5.2	2.2
Profit margin, %	0.4	5.3	2.3
Return on capital employed, %
(12 months rolling)	5.2	33.1	12.4
Return on total capital, %
(12 months rolling)	2.8	19.2	6.7
Return on equity, %
(12 months rolling)	2.2	24.9	7.4
Equity/assets ratio, %	49.9	56.6	52.3
Share of risk-bearing capital, %	50.5	58.2	52.8
Average number of employees	1 726	2 007	1 888
Revenues per employee, KSEK	177	176	694
Number of shares, average (,000)	17 122	17 122	17 122
Number of shares, outstanding (,000)	17 122	17 122	17 122
Basic and diluted earnings per share, SEK	0.03	0.79	1.04
Equity per share, SEK	12.47	17.31	12.79

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

Summary of the parent company's income statement

MSEK	Jan-Mar 2010	Jan-Mar 2009	Jan-Dec 2009
Net revenues	5.1	5.2	21.1
Personnel expenses	-4.6	-4.8	-16.5
Other costs	-5.8	-4.7	-18.8
Depreciation and impairment of fixed assets	-0.6	-0.3	-7.6
Operating profit (loss)	-5.9	-4.6	-21.8
Financial items	-	-	-3.9
Profit/loss after financial items	-5.9	-4.6	-25.7
Appropriations	-	-	14.2
Tax	1.5	1.2	1.7
Profit (loss) for the period	-4.4	-3.4	-9.8
Other comprehensive income
Group contributions	-	-	30.0
Tax effect of Group contributions	-	-	-7.9
Comprehensive income for the period	-4.4	-3.4	12.3

Summary of the parent company's balance sheet

MSEK		31-03-2010 31-03-2009 31-12-2009
Assets
Participations in Group companies	117.9	122.4	117.9
Other fixed assets	12.0	16.3	12.6
Current receivables	40.1	109.3	40.9
Cash and cash equivalents	0.2	2.2	1.9
Total assets	170.2	250.2	173.3
Equity and liabilities
Equity	155.2	221.0	159.6
Untaxed reserves	4.3	18.5	4.3
Current liabilities	10.7	10.7	9.4
Total equity and liabilities	170.2	250.2	173.3

Events after the end of the period

There are no significant events to report.

Transactions with related parties

No transactions with related parties that had a significant effect on the company's position and profit took place during the period.

Future reports

Interim Report, Jan-Jun	20 July 2010, 13:00
Interim Report, Jan-Sep	27 October 2010, 08:00
Year-end Report, 2010	Feb 2011

Accounting policies

The Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act, and for the parent company in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2.3 Reporting for Legal Entities. Unless specified otherwise below, the accounting policies applied for the Group and the parent company correspond with the accounting policies used to produce the last annual report.

The Board of Directors and the Managing Director and CEO hereby certify that the interim report provides a fair view of the activities, financial position and financial results of the parent company and the Group, and describes significant risks and uncertainty factors faced by the company and the companies that are part of the Group.

Stockholm, 27 April 2010

Björn Örås Per Uebel Chairman of the Board Board member

Board member Board member

Margareta Barchan Johan Eriksson Board member MD/CEO

Curt Lönnström Monica Caneman

This interim report has not been the subject of a special examination by the company's auditors.

For further information, please contact:

Johan Eriksson, Managing Director and CEO, tel. +46 (0)8-555 650 60, +46 (0)70-616 74 47 Lotta Nilsson, CFO, tel. +46 (0)8-555 650 64, +46 (0)73-944 50 64

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. ID no.: 556447-9912 www.poolia.com