PION Group — Interim / Quarterly Report 2009

Feb 12, 2010

ENGLISH VERSION OF THE INTERIM REPORT PUBLISHED ON 11 FEBRUARY 2010

Poolia's year-end report, 1 January – 31 December 2009

• Revenues totalled MSEK 1,311.1 (1,437.8)
• The operating profit was MSEK 28.4 (105.3)
• The profit before tax was MSEK 30.6 (109.6)
• The profit after tax was MSEK 18.5 (82.6)
• Earnings per share totalled SEK 1.04 (4.61)
• Cash flow from operating activities was MSEK 35.8 (105.7)
• A dividend is proposed of SEK 1.50 (4.50) per share

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

2009 was an eventful year for Poolia. The global financial crisis we faced was characterised by redundancies, bankruptcies and a global economy in turmoil.

The crisis also made its mark in the staffing sector. After a good start with a stable first quarter, demand slowed down during the second and third quarters, mainly in the Permanent Placement service segment. By means of significant cost adjustments and efficiency improvements we managed to reduce the recession's effect on the financial results and maintained a positive cash flow from operating activities.

The slowdown was particularly noticeable during the second quarter and the summer months. The situation gradually stabilised during the end of the third quarter and the fourth quarter. We see clear indications of a better market in the days ahead and we are well equipped to cope with increased demand for our services.

Activities in the field of healthcare staffing continued their positive trend during the year. Growth was no less than 26%, with an operating margin that continued to be healthy.

During the fourth quarter we undertook structural measures to achieve additional efficiency improvements in the business. These measures charged the operating profit to the order of MSEK 2.6 during the period.

Despite developments during 2009, we have a stable financial position with no external financing whatsoever. It is therefore pleasing to propose a dividend of SEK 1.50/share, corresponding in total to MSEK 25.7.

Johan Eriksson

Poolia's year-end report, 1 January – 31 December 2009

• Revenues totalled MSEK 1,311.1 (1,437.8)
• The operating profit was MSEK 28.4 (105.3)
• The profit before tax was MSEK 30.6 (109.6)
• The profit after tax was MSEK 18.5 (82.6)
• Earnings per share totalled SEK 1.04 (4.61)
• Cash flow from operating activities was MSEK 35.8 (105.7)
• A dividend is proposed of SEK 1.50 (4.50) per share

January - December

Revenues

The Group's revenues fell by 8.8% to MSEK 1,311.1 (1,437.8) as a consequence of the global recession. The exchange rate effect had a positive effect on revenues of 1.0% during the period. Temporary staffing is the largest service area, with the Finance occupational segment being the biggest within this area. The proportion of permanent placement fell from 9% to 5%, partly because of the dramatic fall in demand for permanent placement services, and partly because activities within Dedicare, which continue to expand strongly, do not offer permanent placement. The Finland and Dedicare segments report growth for the whole year of 4.7% and 26.4% respectively.

Earnings

The profit before tax was MSEK 30.6 (109.6). The operating profit was MSEK 28.4 (105.3) and the operating margin 2.2% (7.3). The businesses in Sweden, Germany, Finland and Dedicare report operating profits. The businesses in the UK and Denmark report losses. The highest operating margins are in Dedicare and Finland, at 7.3% and 6.7% respectively. During the year adjustments were made on an ongoing basis in the cost structure in order to deal with the lower level of demand in the market. It was not, however, possible to retain margins, largely because of the drop in revenues from permanent placement, but also because of pressure on prices, which is also forcing down margins.

The consolidated profit after net financial items was MSEK 2.2 (4.3). Non-distributed parent company costs totalled MSEK -21.8 (-17.7). This item includes the impairment of a fixed asset, an IT system developed for implementation in the UK that was shut down during the period, to the value of MSEK 5.6. The decision to shut this down does not affect the business's efficiency.

The tax rate for the Group was 39% (25%). The tax rate is affected by a non-posted tax asset on the loss for the year, the impairment of a previously posted deferred tax asset relating to tax loss carryforwards and an adjustment of previous years' tax.

The fourth quarter

Revenues

Revenues for the Group fell by 12.7% to MSEK 315.5 (361.5). The exchange rate effect did not have any impact on total revenues during the quarter. The proportion of permanent placement fell from 7% to 6%.

Revenues in the Swedish market totalled MSEK 173.6 (207.3), a fall of 16% compared with the corresponding period in the previous year. Revenues in permanent placement fell by 24%. The proportion of permanent placement during the period for Poolia Sweden was unchanged at 8%. There are geographical variations in the trend. The biggest downturn was seen in Stockholm, followed by Gothenburg and Malmö.

Revenues in Denmark fell by 62% to MSEK 1.1 (2.9). The proportion of permanent placement fell from 41% to 32%.

Revenues in Finland fell by 6% to MSEK 8.1 (8.6). The exchange rate effect had a positive effect on revenues of 3% during the quarter. The proportion of permanent placement fell from 17% to 5%.

Revenues in Germany fell by 13% to MSEK 23.1 (26.7). The exchange rate effect did not affect revenues during the quarter. The proportion of permanent placement fell from 10% to 7%.

In the UK revenues fell by 19% to MSEK 31.0 (38.1). The exchange rate effect had a negative effect on revenues of 4% during the quarter. The proportion of permanent placement fell from 10% to 7%.

Dedicare, which deals in the temporary staffing of doctors and nurses in Sweden and Norway, increased its revenues by 1% to MSEK 78.6 (77.9).

Earnings

The operating profit was MSEK 1.5 (18.3) and the operating margin 0.5% (5.1). Also during the fourth quarter some adjustments were made to the cost structure in order to deal with the fall in demand in the market, and these charge the profit to the order of MSEK 2.6. The profit was, however, put under severe pressure by lower revenues from permanent placement and pressure on temporary staffing margins, especially in Sweden and the UK.

The operating profit in Poolia Sweden was MSEK 5.2 (18.2). The operating margin was 3.0% (8.8). The profit was put under pressure by a fall in volume in permanent placement and a reduction in margins in temporary staffing. The profit included one-off costs to the order of MSEK 0.7.

The operating loss in Denmark was MSEK 0.7 (loss: 0.9). The operating profit was put under pressure by the drop in volumes in both temporary staffing and permanent placement, and also included a one-off cost of MSEK 0.2 relating to the restoration of rented premises.

The operating profit in Finland was MSEK 1.1 (1.3), and the operating margin was 13.1% (15.2). A lower proportion of business in permanent placement means a slightly lower operating margin.

The operating loss in Germany was MSEK 0.8 (1.7). The operating margin was -3.3% (6.4). The profit included one-off costs relating to organisational changes to the order of MSEK 0.7. Here too, a drop in the proportion of permanent placement affected the operating margin.

The UK reported an operating loss for the period of MSEK 3.5 (loss: 0.9). Higher revenues are required to generate a profit. The loss included one-off costs relating to staff redundancies and premises to a total of MSEK 1.0.

The operating profit for Dedicare was MSEK 4.2 (5.4), and the operating margin was 5.3% (7.0). Tougher competition is also putting pressure on margins in this segment.

Non-distributed parent company costs totalled MSEK 4.0 (6.5).

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 comprises healthcare activities, the other one Poolia's other activities. 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 2009. Nor were there any significant changes in total assets or the distribution of assets within or between segments.

Jan – Dec Revenues and operating profit (loss)

	2009 Jan-Dec Operating revenues	2009 Jan-Dec Operating profit/loss	2008 Jan-Dec Operating revenues	2008 Jan-Dec Operating profit/loss
Poolia Sweden	700.2	31.0	845.4	88.1
Poolia Finland	32.6	2.2	31.1	3.4
Poolia Denmark	5.9	-3.5	15.6	0.0
Poolia Germany	97.4	2.4	100.8	10.0
Poolia UK	133.2	-6.9	174.4	0.2
Dedicare	341.8	25.1	270.5	21.2
Non-distributed parent company costs		-21.8		-17.7
Total	1 311.1	28.4	1 437.8	105.2

Oct – Dec Revenues and operating profit (loss)

	2009 Oct-Dec Operating revenues	2009 Oct-Dec Operating profit/loss	2008 Oct-Dec Operating revenues	2008 Oct-Dec Operating profit/loss
Poolia Sweden	173.6	5.2	207.3	18.2
Poolia Finland	8.1	1.1	8.6	1.3
Poolia Denmark	1.1	-0.7	2.9	-0.9
Poolia Germany	23.1	-0.8	26.7	1.7
Poolia UK	31.0	-3.5	38.1	-0.9
Dedicare	78.6	4.2	77.9	5.4
Non-distributed parent company costs		-4.0		-6.5
Total	315.5	1.5	361.5	18.3

Liquidity and financing

The Group's cash and cash equivalents as at 31 December 2009 totalled MSEK 67.8 (116.5). Cash flow from operating activities during the period was MSEK 35.8 (MSEK 105.7). A share dividend of MSEK 77.0 (46.2) was paid. In the previous year during this period the company bought its own shares to a value of MSEK 41.3. The equity/assets ratio as of 31 December 2009 was 52.3% (55.7).

Investments

The Group's investments in fixed assets in the period January-December totalled MSEK 5.9 (12.9).

Seasonal fluctuations

The number of working days during the year is:

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

Employees

The average number of annual employees was 1 888 (2 108). On 31 December 2009 the total number of employees was 2 039 (2 380).

Parent company

The parent company engages in general corporate management, development and financial management and IT administration. Revenues during the period totalled MSEK 21.1 (22.4), and there was a loss after financial items of MSEK 25.6 (loss: 20.4). The loss includes the impairment of fixed assets to the order of MSEK 5.6 and the impairment of shares in subsidiaries to the order of MSEK 7.3. A share dividend was received from a subsidiary to the order of MSEK 2.5. The previous year's financial result included a capital gain of MSEK 5.6 from the sale of a subsidiary and the impairment of shares in subsidiaries to the order of MSEK 6.7 in connection with the payment of a shareholders' contribution.

On 11 August 2009 the Swedish Companies Registration Office gave permission for a reduction of the share capital in accordance with a decision at the Annual General Meeting. The 1 344 510 shares that the company had previously bought back were then withdrawn, after which the share capital totals SEK 3 424 399, divided into 17 121 996 shares.

Market trend

The global recession has had a negative impact on all markets in which Poolia operates, primarily with regard to demand for permanent placement services. The exception is Dedicare, which continued to enjoy healthy demand and strong growth in both Sweden and Norway, supported by new contracts won during the year.

It is believed that the market situation has stabilised and we expect demand to increase, primarily in the field of permanent placement services. The economic trend, which has a major impact on the business, is difficult to predict, but for some time now there have been signs of light at the end of the tunnel. 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 temporary staff.

Significant risks and uncertainty factors

Risks and risk management are described in Poolia's annual report for 2008. 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 31-12-2008 also exist on 31-03-2009.

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

MSEK	Jan-Dec 2009	Jan-Dec 2008	Oct-Dec 2009	Oct-Dec 2008
Operating revenues	1 311.1	1 437.8	315.5	361.5
Personnel expenses	-1 163.4	-1 209.9	-283.3	-310.7
Other costs	-104.7	-115.2	-27.8	-30.1
Depreciation and impairment of fixed assets	-14.6	-7.4	-2.9	-2.4
Operating profit	28.4	105.3	1.5	18.3
Financial items	2.2	4.3	1.1	1.5
Profit before tax	30.6	109.6	2.6	19.8
Tax	-12.1	-27.0	-2.9	-1.9
Profit (loss) for the period	18.5	82.6	-0.3	17.9
Other comprehensive income
Translation differences	0.1	-10.0	2.0	-5.8
Comprehensive income for the period	18.6	72.6	1.7	12.1
Profit for the period attributable to:
Parent company's shareholders	17.8	82.1	-0.4	17.8
Minority shareholders	0.7	0.5	0.1	0.1
Basic and diluted earnings per
share, SEK	1.04	4.61	-0.03	1.02
Comprehensive income attributable to:
Parent company's shareholders	17.9	72.1	1.6	12.0
Minority shareholders	0.7	0.5	0.1	0.1

Summary of the consolidated balance sheet

MSEK		31-12-2009 31-12-2008
Assets
Goodwill	91.5	89.6
Other fixed assets	24.9	34.0
Deferred tax assets	16.8	17.5
Current receivables	221.8	244.0
Cash and cash equivalents	67.8	116.5
Total assets	422.8	501.6
Equity and liabilities
Equity	219.0	278.2
Minority share of equity	2.0	1.2
Long-term liabilities	2.4	8.3
Current liabilities	199.4	213.9
Total equity and liabilities	422.8	501.6
Pledged assets and contingent liabilities	0.2	0.2

Change in Group equity

	Jan-Dec	Jan-Dec
MSEK	2009	2008
Opening amount	278.2	293.6
Acquisition of own shares	-	-41.3
Dividend	-77.0	-46.2
Comp. income for period attributable to the parent company's shareholders	17.8	72.1
Closing amount attributable to the parent company's shareholders	219.0	278.2
Minority share of equity	2.0	1.2
Closing amount including minority share	221.0	279.4

Summary of the consolidated cash flow statement

		Jan-Dec Jan-Dec Oct-Dec		Oct-Dec
MSEK	2009	2008	2009	2008
Cash flow from operating activities	35.8	105.7	21.4	30.7
Cash flow from investment activities	-6.0	-11.8	-1.0	-3.2
Cash flow from financing activities	-77.0	-87.7	-	-10.9
Cash flow for the period	-47.2	6.2	20.4	16.6
Opening cash and cash equivalents	116.5	111.4	46.9	100.4
Exchange rate difference in cash and cash equivalents	-1.5	-1.1	0.5	-0.5
Closing cash and cash equivalents	67.8	116.5	67.8	116.5

The Group's key ratios

	Jan-Dec	Jan-Dec	Oct-Dec	Oct-Dec
MSEK	2009	2008	2009	2008
Operating margin, %	2.2	7.3	0.5	5.1
Profit margin, %	2.3	7.6	0.8	5.5
Return on capital employed, %
(12 months rolling)	12.4	38.4	-	-
Return on total capital, %
(12 months rolling)	6.7	22.0	-	-
Return on equity, %
(12 months rolling)	7.4	28.9	-	-
Equity/assets ratio, %	52.3	55.7	52.3	55.7
Share of risk-bearing capital, %	52.8	57.4	52.8	57.4
Average number of annual employees	1 888	2 108	1 755	2 099
Revenues per employee, KSEK	694	682	180	172
Number of shares, average (,000)	17 122	17 808	17 122	17 356
Number of shares, outstanding (,000)	17 122	17 122	17 122	17 122
Basic and diluted
earnings per share, SEK	1.04	4.61	-0.03	1.02
Equity per share, SEK	12.79	16.25	12.79	16.25

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

	Jan-Dec	Jan-Dec	Oct-Dec	Oct-Dec
MSEK	2009	2008	2009	2008
Net revenues	21.1	22.4	5.5	5.7
Personnel expenses	-16.5	-19.5	-3.7	-6.8
Other costs	-18.7	-20.5	-5.0	-5.5
Depreciation and impairment of fixed assets	-7.6	-0.2	-0.8	-0.2
Operating profit (loss)	-21.7	-17.8	-4.0	-6.8
Financial items	-3.9	-2.6	-3.9	-8.5
Profit/loss after financial items	-25.6	-20.4	-7.9	-15.3
Appropriations	14.2	-18.5	14.2	-18.5
Tax	1.6	9.3	1.6	6.3
Profit (loss) for the period	-9.8	-29.6	7.9	-27.5

Summary of the parent company's balance sheet

MSEK		31-12-2009 31-12-2008
Assets
Participations in Group companies	117.9	122.4
Other fixed assets	12.6	15.2
Current receivables	44.9	99.5
Cash and cash equivalents	1.9	15.4
Total assets	177.3	252.5
Equity and liabilities
Equity	159.6	224.4
Untaxed reserves	4.3	18.5
Current liabilities	13.4	9.6
Total equity and liabilities	177.3	252.5

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 and AGM

Interim Report, Jan-Mar	27 April 2010, 13:00
Interim Report, Jan-Jun	20 July 2010, 13:00
Interim Report, Jan-Sep	27 October 2010, 08:00

The Annual General Meeting will be held at the company's premises in Stockholm, at Warfvinges väg 20, fifth floor, on 27 April 2010 at 16:00. The annual report will be available as from 31 March 2010 on the company's website www.poolia.com.

Shareholders wishing to have a matter dealt with at the AGM must submit a written request to the Board of Directors in sufficiently good time for the matter to be included in the invitation to the meeting. Such a request must be received by the Board of Directors no later than seven weeks before the meeting, addressed to: "Styrelsen, Poolia AB, Box 30081, 104 25 Stockholm, Sweden."

Proposed appropriation of profits

Poolia's business generates cash flow that correlates closely with the financial result, which in the event of a profit generates liquidity that exceeds the need for operating capital. The dividend policy has been revised during the year; the ambition is that the yield to shareholders shall exceed 50 per cent of the Group's profit after taxes. The company's growth strategy is based on continued organic growth and growth by acquisition; the latter applies mainly in connection with the penetration of new markets.

The Board of Directors believes that Poolia's financial position is good and that the dividend proposed below does not prevent the company from performing its obligations in the short and the long term, and that it also does not prevent the company from undertaking necessary investments. The Group's cash holding as of 31- 12-2009 totals MSEK 67.8, and during 2010 the Group expects to continue to generate a positive cash flow. The proposed dividend is thus authorised with due regard to the requirements specified in section 17:3(2) and (3) of the Swedish Companies Act. It is proposed that 5 May 2009 be the reconciliation date.

The Board of Directors proposes a total dividend of SEK 1.50 (4.50) per share. This means that a total of MSEK 25.7 (77.0) will be paid in dividend to shareholders. Poolia's equity/assets ratio after the proposed dividend will total 49 per cent.

Available to the Annual General Meeting
Retained earnings	166 016 056
Loss for the year	-9 823 497
Total	156 192 559
The Board of Directors and the Managing Director and CEO propose that the earnings be disposed of as follows:
Dividend	25 682 994
Carried forward to the new accounts	130 509 565
Total	156 192 559

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 2.2 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.

New accounting policies 2009

Amended IAS 1 Presentation of Financial Statements is applied as from 1 January 2009. The change means, among other things, that income and expenses previously recorded directly in equity are now recorded as an element in a report on comprehensive income. Another change is that new names can be used for the financial statements, although this is not mandatory. The Group has chosen to retain the old names, although from 2009 it will present a report on comprehensive income. As from 1 January 2009 the Group is also applying IFRS 8 "Operating Segments". The application of IFRS 8 has not caused any change to the Group's reportable segments, but it does involve additional disclosure requirements. Other new or revised IFRSs and interpretive statements from IFRIC have not had any effect on the Group's or the parent company's financial position or profit.

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, 11 February 2010

Björn Örås Per Uebel Chairman of the Board Board member

Board member Board member

Curt Lönnström Monica Caneman

Margareta Barchan Johan Eriksson Board member MD/CEO

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 104 25 Stockholm Sweden Tel: +46 (0)8-555 650 00 Fax: +46 (0)8-555 650 01 Corp. ID no.: 556447-9912 www.poolia.com