PION Group — Interim / Quarterly Report 2013

Oct 25, 2013

INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2013

Quarterly period July-September

• Poolia's revenue amounted to SEK 178.2 (217.8) million, a decline of 18.2% (18.5% in local currency).
• Operating profit/loss was SEK -14.1 (-0.7) million, with an operating margin of -7.9% (-0.3%). The figure includes goodwill impairment of SEK 12.8 million attributable to outplacement operations.
• Excluding goodwill impairment, operating profit/loss was SEK -1.3 million and the operating margin was -0.7%.
• Profit/loss before tax was SEK -14.2 (-0.8) million.
• Profit/loss after tax was SEK -14.3 (-0.8) million.
• Earnings per share was SEK -0.84 (-0.05).
• Cash flow from operations for the quarter amounted to SEK -6.1 (-2.6) million.

Other significant events

• Poolia's subsidiary Utvecklingshuset been restructured. Notice of an extraordinary general meeting to decide on the sale of the business to Uniflex AB has been issued.
• The subsidiary Talent Eye has been sold to Poolia AB's former CEO Monika Elling on 1 July 2013 following a resolution at an extraordinary general meeting.

From the CEO – "Focus on core business and intensive improvement work"

Poolia reported an operating profit/loss of SEK -14.1 (-0.7) million for the third quarter of 2013. Revenue for the quarter was SEK 178.2 (217.8) million, a decline of 18.5% in local currency.

The third quarter is normally a weak quarter in terms of earnings. Operating profit/loss for operations that are part of Poolia's core business was SEK 1.1 million for the third quarter. Utvecklingshuset's outplacement operations had an adverse effect of SEK 2.4 million on earnings. In addition, Poolia has written down the carrying amount of the associated goodwill by SEK 12.8 million. Market demand remains weak, with permanent placement revenue at low levels apart from in Germany. Prices continue to be stable. The stronger market we saw signs of during summer has not yet materialised.

Poolia Sweden reported an operating profit/loss of SEK - 15.8 (-3.6) million for the third quarter of 2013. The figure includes goodwill impairment of SEK 12.8 million. Revenue was SEK 127.9 (165.1) million, a decline of 23%. Demand for temporary staffing services remains stable but at a low level. The number of permanent placements is low compared with previous years.

The outplacement business, which is run by Utvecklingshuset, has been restructured and the staffing level has been reduced by about one-third.

Interim period January-September

• Poolia's revenue amounted to SEK 596.8 (752.6) million, a decline of 20.7% (20.2% in local currency).
• Operating profit/loss was SEK -16.2 (2.4) million, with an operating margin of -2.7% (0.3%). The figure includes goodwill impairment of SEK 12.8 million attributable to outplacement operations and costs of SEK 3.7 million in connection with former CEO's resignation.
• Excluding goodwill impairment, operating profit/loss was SEK -3.4 million and the operating margin was -0.6%.
• Profit/loss before tax was SEK -16.4 (2.4) million.
• Profit/loss after tax was SEK -16.6 (0.7) million.
• Earnings per share was SEK -0.97 (0.04).
• Cash flow from operations for the period was SEK 4.9 (17.0) million.
• The equity/assets ratio ended the period at 28.9% (36.0%), while the Group's equity per share was SEK 3.65 (6.13).

The operation will be sold to Uniflex AB pending approval at the extraordinary general meeting.

Poolia Germany's revenue for the quarter grew by 19% in local currency, which means that Poolia continues to gain market shares. Operating profit showed positive growth during the quarter. Development of the offices that are not yet showing stable profitability is continuing as planned.

At Poolia UK, the process of building up the business, mainly in Finance & Accounting, is continuing. Development of the core business needs to continue for some time still before the UK operations will be able to show positive results.

Poolia Finland's operations remain stable but profitability is being squeezed by the weak permanent placement market. Revenue is in line with the previous year, but operating profit is slightly lower.

With Poolia now placing a clear focus on business development of temporary staffing and permanent placement in Sweden, the management team's efforts to create a growing and profitable core business are being intensified.

Dag Sundström Acting Managing Director and CEO

Business concept

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

Poolia Quality

Poolia's business is the temporary staffing, permanent placement and outplacement of qualified professionals. We specialise in the areas of Finance & Accounting, Financial Services, Human Resources, Sales & Marketing, IT & Engineering, Office Support and Executive Search. This specialisation focuses our expertise and deepens our commitment to our clients' business operations. We understand our clients' staffing needs, and we have the processes and tests in place to ensure the client gets the right person.

JULY – SEPTEMBER GROUP

Revenue

The Group's revenue declined by 18.2% to SEK 178.2 (217.8) million. Currency effects had a positive impact of 0.3% on revenue. Temporary staffing is the largest service area. Permanent placement's share of revenue declined from 12% to 11%.

Earnings Operating profit/loss amounted to SEK -14.1 (-0.7) million, while the operating margin was -7.9% (-0.3%). Goodwill impairment attributable to the outplacement operations amounted to SEK 12.8 million. The Group's net financial income/expense was SEK -0.1 (-0.1) million. Profit/loss before tax amounted to SEK -14.2 (-0.8) million. The Group's tax was SEK -0.1 (0.0) million. Tax is affected by the fact that goodwill impairment is not tax deductible.

Our experience, specialisation, commitment and working methods combine to create the quality that gives our clients a crucial advantage: employees who not only perform, but also contribute. This is what we call Poolia Quality.

Market conditions

The market has moved from a somewhat circumspect to a cautiously optimistic mood. At the end of the third quarter, some companies increased their staffing with resource temps. However, many are still holding back from making permanent placements. The third quarter is historically the market's weakest quarter, as the number of professionals placed on assignments falls in summer. We maintain our positive view of the long-term outlook for the staffing industry.

POOLIA SWEDEN

Revenue

Poolia Sweden's revenue amounted to SEK 127.9 (165.1) million, a decline of 23% compared with the same period the previous year.

Permanent placement/outplacement's share of revenue declined from 11% to 10% during the period.

Earnings

Poolia Sweden's operating profit/loss amounted to SEK -15.8 (-3.6) million. The operating margin was -12.4% (-2.2).

The negative Q3 operating profit/loss for Sweden was largely due to a weak permanent placement market. The number of temporary staffing assignments is stable but at a low level. Operating profit/loss for the core business was SEK -0.6 million. Unfavourable development and a restructuring of Utvecklingshuset's outplacement business had an adverse effect of SEK 2.4 million on earnings for the quarter. Impairment testing conducted as a result of Utvecklingshuset's weak performance has revealed that the fair value of the outplacement business is lower than the carrying amount of goodwill related to this business. Goodwill impairment of SEK 12.8 million has therefore been recognised. It is expected that the business will be able to report positive earnings after the restructuring is completed. Utvecklingshuset will be sold to Uniflex AB, pending approval at an EGM. Utvecklingshuset focuses primarily on outplacement within the Swedish Trade Union Confederation, which is not part of Poolia's core business.

POOLIA GERMANY

Revenue

Poolia Germany's revenue amounted to SEK 31.9 (26.2) million, an increase of 22%. Currency effects had a positive impact of 3% on revenue during the quarter. Permanent Placement's share of revenue declined from 16% to 13%, although the proportion varied from office to office.

Earnings

Poolia Germany's operating profit was SEK 2.3 (1.6) million. The operating margin was 7.1% (6.0%).

The German business continues to perform well, which means that the offices can grow with new employees. Both revenue and operating profit showed positive growth. The operating margin has now reached a satisfactory level. Market shares for Poolia Germany are continuously increasing.

POOLIA UK

Revenue

Poolia UK's revenue amounted to SEK 9.7 (18.3) million, a decline of 47%. Currency effects had a negative impact of 3% on revenue during the quarter. Permanent placement's share of revenue increased from 14% to 16%.

Earnings

Poolia UK's operating profit/loss for the period was SEK -0.8 (0.4) million. The operating margin was -7.9% (2.1%).

The UK business continues to have an adverse impact on the Group's earnings. However, with the new team developing according to plan and creating good business, the Q3 loss was lower than in the earlier quarters, although the business is still affected by unbalanced high overhead costs. The UK business is planning for organic growth, and costs are expected to be significantly reduced in 2014.

Poolia UK

Share of Group revenue in the quarter

POOLIA FINLAND

Revenue

Poolia Finland's revenue amounted to SEK 8.7 (8.3) million, an increase of 5%. Currency effects had a positive impact of 3% on revenue during the quarter. Permanent Placement's share of revenue declined from 16% to 6%.

Earnings

Poolia Finland's operating profit was SEK 0.2 (0.9) million. The operating margin was 2.2% (10.8%).

Operations in Finland continue to be stable and have outperformed the market. The lower operating margin compared

with 2012 is attributable to the lower share of revenue for permanent placement.

Share of Group revenue in the quarter

JANUARY – SEPTEMBER GROUP

Revenue

The Group's revenue declined by 20.7% to SEK 596.8 (752.6) million. Currency effects had a negative impact of 0.5% on revenue. Temporary staffing is the largest service area. Permanent placement's share of revenue increased from 12% to 13%. The chart below shows the Group's revenue by segment during the period.

Earnings

Operating profit/loss amounted to SEK -16.2 (2.4) million, while the operating margin was -2.7% (0.3%). Earnings includes goodwill impairment of SEK 12.8 million and costs of SEK 3.7 million associated with the former CEO's resignation. The Group's net financial income/expense was SEK -0.2 (0.0) million. Profit/loss before tax was SEK - 16.4 (2.4) million. The Group's tax was SEK -0.2 (-1.7) million. Tax is affected by the fact that goodwill impairment is not tax deductible.

Liquidity and financing

The Group's cash and cash equivalents at 30 September 2013 were SEK 4.9 (6.9) million. Cash flow from operating activities during the period was SEK 4.9 (17.0) million. The equity/assets ratio at 30 September 2013 was 28.9% (36.0%). Intra-Group transactions with one and the same bank/lender are offset in the consolidated balance sheet. The Parent Company's credit balances or credit utilisation are recognised in the Parent Company. The Group's Swedish business has a joint cash pool and an overdraft facility of SEK 60 (40) million. At 30 September 2013, SEK 14.9 (9.7) of this amount had been utilised.

Investments

The Group's investments in non-current assets for the period January to September amounted to SEK 1.9 (4.7) million.

Pledged assets and contingent liabilities

Poolia AB has pledged shares in subsidiaries as security for its bank overdraft facility. Goodwill impairment has affected the reported pledge value in the Group.

The share

The Poolia share is listed on NASDAQ OMX Stockholm AB under the ticker POOL B. The number of shares issued is 17,121,996. The price on the reporting date was SEK 12.40. During the period, 1,299,371 shares were traded at a total value of SEK 15.5 million.

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.

Employees

The average number of full-time equivalents was 1,405 (1,742). The total number of employees at 30 September 2013 was 1,442 (1,879). The CEO of Poolia AB resigned during the period. Board member Dag Sundström is acting CEO until a new CEO is recruited.

Seasonal variations

Number of working days in the year:

	Sweden	UK	Germany	Finland
Jan-Mar	62(64)	63(64)	62(64)	63(63)
Apr-Jun	60(59)	62(60)	60(59)	63(63)
Jul-Sep	66(65)	64(64)	66(64)	63(63)
Oct-Dec	62(62)	63(63)	62(60)	63(63)
Full year	250(250)	252(251)	250(247)	252(252)

Parent Company

Group management, development and financial and IT management are centralised in the Parent Company. All Parent Company expenses are allocated to the operating segments. Revenue during the period was SEK 26.3 (19.5), million. Profit/loss after financial items was SEK -0.3 (-6.5) million. A dividend of SEK 2.1 million was received from Poolia Finland.

Significant risks and uncertainties

Risks and risk management are described in Poolia's 2012 Annual Report. The risks can be summarised as economic fluctuations, dependence on clients and individuals, legislation and regulations, and financial risks. Significant risks and uncertainties at 30 September 2013 were unchanged from those at 31 December 2012.

Events after the end of the period

Notice of an Extraordinary General Meeting on 12 November 2013 has been issued. The Board of Directors proposes that the meeting adopt the sale of the outplacement operations of Utvecklingshuset COM AB to Uniflex AB.

Related party transactions

There were no related party transactions during the period that had a significant effect on the Company's financial position and earnings. Under an agreement dated 26 June 2013, resigning CEO Monika Elling has acquired the subsidiary Talent Eye AB. The acquisition was approved at an Extraordinary General Meeting of Poolia AB on 23 August 2013. Poolia does not recognise revenue or earnings from Talent Eye after 30 June 2013.

CONDENSED CONSOLIDATED COMPREHENSIVE INCOME

	2013	2012	2013	2012	2012
Amounts in SEK millions	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
Operating income	178.2	217.8	596.8	752.6	981.4
Operating expenses
Staff costs	-162.0	-198.7	-545.8	-681.0	-906.3
Other expenses	-16.6	-18.3	-51.4	-64.7	-93.6
Depreciation and amortisation of assets	-0.9	-1.5	-3.0	-4.5	-6.7
Impairment of assets	-12.8	-	-12.8	-	-4.7
Operating profit/loss	-14.1	-0.7	-16.2	2.4	-29.9
Financial items	-0.1	-0.1	-0.2	0.0	0.2
Profit/loss before tax	-14.2	-0.8	-16.4	2.4	-29.7
Tax	-0.1	0.0	-0.2	-1.7	4.2
Profit/loss for the period	-14.3	-0.8	-16.6	0.7	-25.5
Other comprehensive income
Items to be transferred to income statement
Translation differences	-0.2	-1.2	0.0	-1.4	-1.0
Total comprehensive income for the period	-14.5	-2.0	-16.6	-0.7	-26.5
Operating margin, %	-7.9	-0.3	-2.7	0.3	-3.0
Profit margin, %	-8.0	-0.4	-2.7	0.3	-3.0
Profit/loss for the period attributable to:
Shareholders of the Parent	-14.3	-0.8	-16.6	0.7	-25.5
Non-controlling interests	0.0	0.0	0.0	0.0	0.0
Basic and diluted earnings per share, SEK	-0.84	-0.05	-0.97	0.04	-1.49
Total comprehensive income attributable to:
Shareholders of the Parent	-14.5	-2.0	-16.6	-0.7	-26.5
Non-controlling interests	0.0	0.0	0.0	0.0	0.0

CONDENSED CONSOLIDATED BALANCE SHEET

Amounts in SEK millions	30/09/2013	30/09/2012	31/12/2012
Assets
Non-current assets
Goodwill	14.9	27.6	27.7
Other non-current assets	9.5	17.5	10.4
Deferred tax assets	14.9	10.8	14.8
Current assets
Current receivables	171.9	229.1	209.5
Cash and cash equivalents	4.9	6.9	4.0
Total assets	216.1	291.9	266.4
Equity and liabilities
Equity	62.5	105.0	79.2
Non-controlling interest in equity	0.0	0.0	0.0
Non-current liabilities	0.9	1.9	0.9
Current liabilities to credit institutions	1.8	0.0	3.7
Other current liabilities	150.9	185.0	182.6
Total equity and liabilities	216.1	291.9	266.4
Pledged assets and contingent liabilities	1.8	26.0	8.7

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

	2013	2012	2013	2012	2012
Amounts in SEK millions	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
Profit/loss before tax	-14.2	-0.8	-16.4	2.4	-29.7
Adjustments	13.7	1.5	15.8	4.5	12.1
Income tax paid	-2.2	-1.7	-4.8	-5.8	-8.1
Cash flow from operating activities before changes in working capital	-2.7	-1.0	-5.4	1.1	-25.7
Increase (-)/decrease (+) in current receivables	22.5	26.3	42.0	35.9	48.9
Increase (+)/decrease (-) in current liabilities	-25.9	-27.9	-31.7	-20.0	-12.5
Cash flow from operating activities	-6.1	-2.6	4.9	17.0	10.7
Cash flow from investing activities	0.0	-0.3	-1.9	-4.6	-5.4
Cash flow from financing activities	1.8	-	-1.9	-11.8	-8.0
Cash flow for the period	-4.3	-2.9	1.1	0.6	-2.7
Cash and cash equivalents at beginning of period	9.4	10.7	4.0	7.5	7.5
Exchange differences	-0.2	-0.9	-0.2	-1.2	-0.8
Cash and cash equivalents at end of period	4.9	6.9	4.9	6.9	4.0

CONDENCED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	2013	2012	2012
Amounts in SEK millions	Jan-Sep	Jan-Sep	Jan-Dec
Opening balance	79.2	113.1	113.1
Dividend	-	-7.4	-7.4
Total comprehensive income for the period attributable to shareholders of the Parent	-16.6	-0.7	-26.5
Closing balance attributable to shareholders of the Parent	62.5	105.0	79.2
Non-controlling interest in equity	0.0	0.0	0.0
Closing balance including non-controlling interest	62.5	105.0	79.2

CONDENSED STATEMENT OF COMPREHENSIVE INCOME – PARENT COMPANY

	2013	2012	2013	2012	2012
Amounts in SEK millions	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
Net sales	6.8	6.5	26.3	19.5	28.3
Operating expenses
Staff costs	-3.4	-3.9	-15.7	-14.0	-16.0
Other expenses	-3.6	-3.9	-10.9	-11.3	-19.7
Depreciation, amortisation and impairment of assets	-0.5	-1.1	-1.9	-3.2	-9.9
Operating profit/loss	-0.7	-2.4	-2.2	-9.0	-17.3
Financial items	-0.1	-0.1	1.9	2.5	2.6
Profit/loss after financial items	-0.8	-2.5	-0.3	-6.5	-14.7
Appropriations	-	-	-	-	4.9
Tax	0.2	0.6	0.5	2.4	2.9
Profit/loss for the period	-0.6	-1.9	0.2	-4.1	-6.9
Statement of comprehensive income Profit/loss for the period Other comprehensive income	-0.6 -	-1.9 -	0.2 -	-4.1 -	-6.9 -
Total comprehensive income for the period	-0.6	-1.9	0.2	-4.1	-6.9

CONDENSED BALANCE SHEET – PARENT COMPANY

Amounts in SEK millions	30/09/2013	30/09/2012	31/12/2012
Assets
Non-current assets
Investments in Group companies	24.4	24.4	24.4
Other non-current assets	6.6	11.9	7.9
Current assets
Current receivables	62.5	67.1	65.2
Cash and bank balances	0.0	0.0	0.0
Total assets	93.5	103.4	97.5
Equity and liabilities
Equity	67.2	69.8	67.0
Untaxed reserves	-	4.9	-
Provisions	1.2	0.5	1.2
Current liabilities to credit institutions	10.0	16.3	13.0
Other current liabilities	15.1	11.9	16.3
Total equity and liabilities	93.5	103.4	97.5
Pledged assets and contingent liabilities	15.1	14.6	15.1

OVERVIEW OF KEY FINANCIAL RATIOS FOR THE QUARTER

	2013	2013	2013	2012	2012	2012	2012	2011
	Jul-Sep	Apr-Jun	Jan-Mar	Oct Dec	Jul-Sep	Apr-Jun	Jan-Mar	Oct Dec
Operating income	178.2	204.7	214.0	228.8	217.8	258.1	276.7	292.0
Growth, %	-18.2	-20.7	-22.7	-21.7	-17.4	-8.9	-2.4	-1.2
Growth in local currency, %	-18.5	-19.7	-22.0	-20.9	-16.6	-9.5	-2.6	-1.0
Operating margin, %	-7.9	-2.6	1.6	-14.1	-0.3	0.1	1.0	-0.6
Profit margin, %	-8.0	-2.7	1.5	-14.0	-0.4	0.2	0.9	-0.5
Return on capital employed1, %	-56.7	-37.6	-29.4	-29.1	1.6	4.9	9.2	15.5
Return on total assets1, %	-18.9	-12.0	-9.9	-9.9	0.6	1.6	3.3	5.6
Return on equity1, %	-51.2	-32.0	-25.4	-26.5	1.9	4.7	7.8	12.9
Equity/assets ratio, %	28.9	30.2	31.4	29.7	36.0	33.2	35.4	34.9
Risk-bearing capital, %	28.9	30.2	31.4	29.7	36.5	33.8	35.8	35.3
Number of FTEs, average	1338	1439	1438	1572	1690	1776	1760	1877
Revenue per employee, SEK 000	133	142	149	146	129	145	157	156
Number of shares, average (000)	17,122	17,122	17,122	17,122	17,122	17,122	17,122	17,122
Number of shares, outstanding (000)	17,122	17,122	17,122	17,122	17,122	17,122	17,122	17,122
Basic earnings per share2, SEK	-0.84	-0.27	0.13	-1.53	-0.05	0.00	0.08	0.08
Equity per share, SEK	3.65	4.50	4.69	4.62	6.13	6.24	6.66	6.60

¹Trailing 12 months.

²No dilutive effects.

OVERVIEW OF KEY FINANCIAL RATIOS FOR THE PERIOD

	2013	2012
	Jan-Sep	Jan-Sep
Operating margin, %	-2.7	0.3
Profit margin, %	-2.7	0.3
Basic earnings per share1, SEK	-0.97	0.04
Equity per share, SEK	3.65	6.13

¹No dilutive effects.

DEFINITIONS

Risk-bearing capital

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

Number of FTEs, average

The total number of hours worked during the period divided by the normal number of working hours for a full-time employee.

Return on equity

Profit/loss after tax divided by average equity.

Return on capital employed

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

Return on total assets

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

Equity per share

Equity divided by the number of shares outstanding.

Revenue per employee

Operating income divided by the average number of FTEs.

Earnings per share

Profit/loss for the period after tax divided by the average number of shares.

Operating margin

Operating profit/loss as a percentage of operating income.

Equity/assets ratio

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

Capital employed

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

Profit margin

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

Operating segments

Poolia's segment reporting is based on internal reporting, which means that the segment reporting format is geographical regions.

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, and for which separate financial information is available. The operating segment's operating results are reviewed regularly by the Company's

REVENUE BY OPERATING SEGMENT

chief operating decision maker, i.e. the Poolia Group's management team, in order to allocate resources to the segment and assess its performance.

Poolia's geographical segments are Sweden, Finland, Germany and the UK. With effect from 2013, all Parent Company expenses are allocated to the operating segments.

	2013	2012	2013	2012	2012
SEK millions	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
Poolia Sweden	127.9	165.1	453.1	592.9	773.0
Poolia UK	9.7	18.3	30.0	62.7	76.9
Poolia Germany	31.9	26.2	87.3	70.9	97.1
Poolia Finland	8.7	8.3	26.3	26.0	34.3
Total revenue	178.2	217.8	596.8	752.6	981.4

OPERATING PROFIT/LOSS BY OPERATING SEGMENT

Total operating profit/loss	-14.1	-0.7	-16.2	2.4	-29.9
Poolia Finland	0.2	0.9	1.1	2.2	2.7
Poolia Germany	2.3	1.6	2.8	2.2	0.7
Poolia UK	-0.8	0.4	-3.0	-1.6	-2.7
Poolia Sweden	-15.8	-3.6	-17.1	-0.4	-30.5
SEK millions	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
	2013	2012	2013	2012	2012

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 Accounting for Legal Entities. Unless specified otherwise below, the accounting policies applied for the Group and the Parent Company are consistent with the accounting policies applied when preparing the most recent annual report.

New and amended IFRS standards and IFRIC interpretations which come into effect in 2013 have not had any significant effect on the Group's financial reporting.

The Board of Directors and CEO hereby certify that the interim report provides a true and fair view of the operations, financial position and financial performance of the Parent Company and the Group, and describes the material risks and uncertainties to which the Parent Company and Group companies are exposed.

Future reporting dates

Year-end report 2013 13 February 2014

Stockholm, 24 October 2013

Björn Örås Chairman of the Board

Monica Caneman Board member

Anna Söderblom Board member

Lennart Pihl Board member

Dag Sundström Board member Acting Managing Director and CEO

Auditor's Review Report

Introduction

We have conducted a review of the interim report for Poolia AB (publ) for the period 1 January 2013 until 30 September 2013. The Board of Directors and the Managing Director are responsible for producing and presenting this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim financial information on the basis of our review.

Focus and scope of the review

We have conducted our review in accordance with the Standard for Review Engagements (SÖG) 2410, Review of Interim Financial Information by the Independent Auditor of the Entity. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially more limited in scope compared to an audit conducted in accordance with International Standards on Auditing and generally accepted auditing practice. The review procedures do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. The conclusion expressed is based on a review and therefore does not have the same level of certainty of a conclusion expressed on the basis of an audit.

Conclusion

On the basis of our review, nothing has come to our attention that causes us to believe that the interim report has not been prepared, in all material respects, on behalf of the Group in accordance with IAS 34 and the Swedish Annual Accounts Act, and on behalf of the parent company in accordance with the Swedish Annual Accounts Act.

Stockholm, 24 October 2013

Deloitte AB

Henrik Nilsson Authorised Public Accountant

For further information, please contact: Dag Sundström, Acting Managing Director and CEO, tel: +46 (0)70-511 64 58

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