PION Group — Interim / Quarterly Report 2018

Oct 29, 2018

INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2018

Quarterly period July-September

Reported revenue, earnings, cash flow and financial ratios relate to continuing operations, and do not include Poolia UK.

• Poolia's revenue amounted to SEK 172.7 (181.2) million.
• Operating profit amounted to SEK -3.6 (7.6) million, with an operating margin of -2.1% (4.2%).
• Operating profit was negatively affected by non-recurring items of SEK 4.3 million.
• Profit before tax was SEK -3.8 (7.7) million.
• Profit after tax was SEK -5.7 (5.5) million.
• Earnings per share amounted to SEK -0.33 (0.31).
• Cash flow from operations for the quarter was SEK 1.4 (6.0) million.

From the CEO

The market situation is largely the same as in recent quarters. This means that we have good demand for permanent placement and temporary staffing services in Poolia's three countries of operation. Unfortunately, there is still a major shortage of candidates and a tendency for our temps to take employment with clients, which means that we are not able to fully meet market demand in the temporary staffing business. However, we can see some signs that demand for temporary staffing services may slow down a little in the period ahead. This normally enables better access to candidates, who also stay longer in their assignments.

Poolia's total revenue for the quarter was SEK 172.7 million, compared with SEK 181.2 million in the same period in 2017 – a decline of 5%. Poolia Sweden's revenue for the third quarter fell by SEK 6.5 million to SEK 114.3 million, a decline of 5% compared with the same quarter the previous year.

Poolia Germany's revenue for the quarter showed a decline of 7% and amounted to SEK 48.0 million, compared with SEK 51.6 million in the third quarter of 2017. Revenue for the Finnish operations amounted to SEK 10.4 (8.8) million during the quarter, an increase of SEK 1.6 million or 18%.

Finland continues to have one of Europe's fastest-growing economies (about 3%), which also has a positive effect on Poolia, with increased demand for our services, particularly in permanent placement.

Poolia's operating profit for the quarter was SEK -3.6 (7.6) million. Operating profit for the period was affected by mergerrelated costs of SEK 4.3 million. The operating margin was - 2.1% (4.2%).

In Sweden, operating profit for the quarter was SEK -6.2 (2.2) million after merger-related costs of SEK 4.3 million. The operating margin in Sweden was -5.4% (1.8%). Excluding non-recurring items, operating profit for the third quarter amounted to SEK -1.9 million, with an operating margin of - 1.6%.

The German operations reported an operating profit of SEK 2.0 (5.2) million, with an operating margin of 4.2% (10.1%). Poolia Finland's operating profit amounted to SEK 0.6 (0.2) million, with an operating margin of 5.8% (2.3%).

Interim period January-September

Reported revenue, earnings, cash flow and financial ratios relate to continuing operations, and do not include Poolia UK.

• Poolia's revenue amounted to SEK 572.8 (574.9) million.
• Operating profit amounted to SEK -7.8 (21.0) million, with an operating margin of -1.4% (3.7%).
• Operating profit was negatively affected by non-recurring items of SEK 14.1 million.
• Profit before tax was SEK -7.8 (20.7) million.
• Profit after tax was SEK -10.1 (14.8) million.
• Earnings per share amounted to SEK -0.59 (0.85).
• Cash flow from operations for the period was SEK -6.3 (13.3) million.

Cash flow from operations for the period amounted to SEK 1.4 (6.0) million. The Group's liquidity and financial position are good.

The Swedish Companies Registration Office has now given the go-ahead for Poolia's acquisition of Uniflex AB through a statutory merger under the Swedish Companies Act. The merger will be completed on 31 October. The merged company will offer a considerably broader service offering, giving us significant market advantages, particularly in terms of large resource temp buyers. The revenue increases are expected to have an earnings effect of SEK 10 million in the medium term. Annual cost savings are estimated at SEK 20 million.

The merger of Poolia and Uniflex is being carried out at book values, which means that goodwill arising from the merger will not appear in Poolia's balance sheet. The merger process is proceeding according to plan and Uniflex CEO Jan Bengtsson takes over as Managing Director of Poolia on 1 November.

The merger has been well received by clients, suppliers and personnel. There is a high level of confidence and optimism for the future within the company.

Morten Werner Managing Director and CEO

Business concept

Poolia's business concept is to provide companies and organisations with the skills that meet their temporary or permanent needs for qualified professionals.

Poolia Quality

Poolia's business is the temporary staffing and permanent placement of qualified professionals. We specialise in the areas of Finance & Accounting, IT, Office Support, Human Resources, Sales & Marketing, Life Science & Engineering, Legal and Executive Search. This specialisation focuses our expertise and sharpens our knowledge of 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 5% to SEK 172.7 (181.2) million. Currency effects had a positive impact of SEK 2.8 million (2%) on revenue. Temporary staffing is the largest service area. Permanent placement's share of revenue declined a little in the third quarter, falling from 13% to 12%.

Earnings

Market conditions

staffing industry.

Operating profit amounted to SEK -3.6 (7.6) million, with an operating margin of -2.1% (4.2%). The Group's net financial items amounted to SEK -0.2 (0.1) million. Profit before tax was SEK -3.8 (7.7) million. The Group's tax was SEK -1.9 (-2.3) million.

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

Demand for temporary staffing and permanent placement services in Poolia's three operating segments is strong. GDP for all three countries is expected to grow by 2-3% in 2018. We maintain our positive view of the long-term outlook for the

also contribute. This is what we call Poolia Quality.

Poolia's segments during the quarter

POOLIA SWEDEN

Revenue

Poolia Sweden's revenue amounted to SEK 114.3 (120.8) million, a decline of 5% compared with the same period the previous year. Permanent placement's share of revenue was 10% (11%) during the quarter.

Earnings

Poolia Sweden's operating profit was SEK -6.2 (2.2) million. The operating margin was -5.4% (1.8%). Earnings were negatively affected by merger-related costs of SEK 4.3 million. Poolia Sweden's operating profit net of these non-recurring items was SEK -1.9 million, with an operating margin of -1.6%. However, the decline in revenue and operating profit net of non-recurring items is disappointing and measures are being taken to reverse the trend.

POOLIA GERMANY

Revenue

Poolia Germany's revenue amounted to SEK 48.0 (51.6) million, a decline of 7%. Currency effects had a positive impact of SEK 2.3 million (4%) on revenue during the quarter. Permanent placement's share of revenue increased to 14% (12%).

Earnings

Poolia Germany's operating profit was SEK 2.0 (5.2) million. The operating margin was 4.2% (10.1%)

The German market remains challenging, particularly in the temporary staffing area, given the regulatory changes that have taken place in the sector. The candidate shortage and clients' acquisition of our temps continue on a large scale, but measures taken to reverse the trend have already yielded certain results in the third quarter.

POOLIA FINLAND

Revenue

Poolia Finland's revenue for the quarter amounted to SEK 10.4 (8.8) million, an increase of 18%. Currency effects had a positive impact of SEK 0.5 million (4%) on revenue during the quarter. Permanent placement's share of revenue was 12% (7%)

Earnings

Poolia Finland's operating profit was SEK 0.6 (0.2) million, with an operating margin of 5.8% (2.3%).

The sales and marketing drive that has been in progress for some time has now produced effects.

Operating segments

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

Poolia's geographical segments are Sweden, Finland and Germany. All Parent Company expenses are allocated to the operating segments.

REVENUE PER OPERATING SEGMENT

	2018	2017	2018	2017	2017
Amounts in SEK millions	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
Poolia Sweden	114.3	120.8	390.7	393.2	534.5
Poolia Germany	48.0	51.6	149.6	152.8	197.6
Poolia Finland	10.4	8.8	32.5	28.9	39.2
Total revenue	172.7	181.2	572.8	574.9	771.3

OPERATING PROFIT/LOSS PER OPERATING SEGMENT

	2018	2017	2018	2017	2017
Amounts in SEK millions	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
Poolia Sweden	-6.2	2.2	-13.9	7.6	7.8
Poolia Germany	2.0	5.2	4.8	12.6	12.9
Poolia Finland	0.6	0.2	1.3	0.8	1.3
Total operating profit/loss, continuing operations	-3.6	7.6	-7.8	21.0	22.0
Discontinued operations
Poolia UK	0.0	0.0	0.0	-0.6	-0.6
Total operating profit/loss	-3.6	7.6	-7.8	20.4	21.4
Reversal of discontinued operations	0.0	0.0	0.0	0.6	0.6
Financial items	-0.2	0.1	0.0	-0.3	-1.7
Profit/loss before tax and discontinued operations	-3.8	7.7	-7.8	20.7	20.3

JANUARY – SEPTEMBER GROUP

Revenue

Revenue for the Group's operations declined a little compared with the same period in 2017 and amounted to SEK 572.8 (574.9) million. Currency effects had a positive impact of 2% on revenue. Temporary staffing is the largest service area, representing 87% of revenue.

The chart below shows the Group's revenue by segment during the period.

Liquidity and financing

The Group's cash and cash equivalents at 30 September 2018 were SEK 31.5 (40.5) million. Cash flow from operating activities during the period was SEK -6.3 (13.3) million. The equity/assets ratio at 30 September 2018 was 30.0% (36.6%). Group transactions with one and the same lender are offset in the consolidated balance sheet. The Parent Company's credit utilisation is recognised in the Parent Company's financial statements. The Group's Swedish business has a joint cash pool and an overdraft facility of SEK 40 (40) million. At 30 September 2018, SEK 27.5 (19.3) million of this amount had been utilised.

Earnings

Operating profit amounted to SEK -7.8 (21.0) million, with an operating margin of -1.4% (3.7%). The Group's net financial items amounted to SEK 0.0 (-0.3) million. Profit before tax was SEK -7.8 (20.7) million. The Group's tax expense was SEK -2.3 (-5.9) million.

Investments

The Group's investments in non-current assets during the period were SEK 3.1 (0.9) million. In addition, an impairment loss of SEK 2.6 million on IT systems has been recognised.

Pledged assets and contingent liabilities

Poolia AB has pledged shares in subsidiaries as security for its bank overdraft facility.

The share

Poolia's shares are listed on NASDAQ Stockholm under the ticker POOL B. The number of shares issued is 17,121,996. The price on the reporting date was SEK 11.90. During the period, 651,807 shares were traded at a total value of SEK 7.9 million.

Dividend policy

According to Poolia's dividend policy, the annual dividend shall normally exceed 50% of the Group's profit after tax.

Employees

The average number of full-time equivalents was 1,142 (1,280). The number of employees at 30 September 2018 was 1,280 (1,384).

Seasonal variations

Number of working days in 2018:

	Sweden	Germany	Finland
Jan-Mar	63(64)	63(65)	62(63)
Apr-Jun	60(59)	60(59)	62(63)
Jul-Sep	65(65)	65(65)	65(63)
Oct-Dec	62(63)	62(60)	62(63)
Full year	250(251)	250(249)	251(252)

Parent

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 8.2 (9.1) million. Profit after financial items was SEK -7.3 (-2.6) million. Costs of SEK 7.8 million related to the planned merger with Uniflex had a negative effect on earnings.

Significant risks and uncertainties

Risks and risk management are described in Poolia's 2017 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 30/09/2018 are unchanged from those at 31/12/2017.

Events after the end of the period

On 26 July, Poolia AB's extraordinary general meeting approved the merger plan adopted by the boards of Poolia AB (publ) and Uniflex AB (publ) and dated 4 June 2018. On 10 October, the Swedish Companies Registration Office granted Poolia AB (publ) and Uniflex AB (publ) permission to implement the merger plan between the two companies.

Related party transactions

There were no related party transactions during the period that had a significant effect on the Company's financial position and performance.

CONDENSED CONSOLIDATED COMPREHENSIVE INCOME

	2018	2017	2018	2017	2017
Amounts in SEK millions	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
Operating income	172.7	181.2	572.8	574.9	771.3
Operating expenses
Staff costs	-155.3	-157.1	-525.9	-508.1	-688.8
Other expenses	-17.7	-15.7	-49.9	-43.8	-57.9
Depreciation and amortisation of assets	-3.3	-0.7	-4.8	-2.0	-2.6
Operating profit/loss	-3.6	7.6	-7.8	21.0	22.0
Finance income	-0.1	0.0	0.6	0.2	0.1
Finance costs	-0.1	0.1	-0.6	-0.5	-1.8
Profit/loss before tax	-3.8	7.7	-7.8	20.7	20.3
Tax	-1.9	-2.3	-2.3	-5.9	-7.8
Profit/loss for the period from continuing operations	-5.7	5.5	-10.1	14.8	12.5
Discontinued operations
Profit/loss for the period from discontinued operations	-	1.1	-	0.5	0.5
Profit/loss for the period	-5.7	6.6	-10.1	15.3	13.0
Other comprehensive income
Items that will be reclassified to the income statement
Translation differences	-0.6	-1.1	1.8	1.5	3.9
Total comprehensive income for the period	-6.3	5.5	-8.3	16.8	16.9
Operating margin, continuing operations, %	-2.1	4.2	-1.4	3.7	2.9
Profit margin, continuing operations, %	-2.2	4.2	-1.4	3.6	2.6
Profit/loss for the period attributable to:
Shareholders of the Parent	-5.7 0.0	6.5 0.1	-10.1 0.0	15.2 0.1	13.0 0.0
Non-controlling interests
Basic and diluted earnings per share, SEK
Earnings per share from continuing operations
and discontinued operations	-0.33	0.37	-0.59	0.88	0.76
Earnings per share from continuing operations	-0.33	0.31	-0.59	0.85	0.73
Total comprehensive income attributable to:
Shareholders of the Parent	-6.3	5.4	-8.3	16.7	16.9
Non-controlling interests	0.0	0.1	0.0	0.1	0.0

7

Amounts in SEK millions	30/09/2018	30/09/2017	31/12/2017
Assets
Non-current assets
Goodwill	18.8	19.3	18.8
Other non-current assets	5.3	7.2	6.9
Deferred tax assets	10.4	9.9	10.4
Current assets
Current receivables	166.3	170.0	173.9
Cash and cash equivalents	31.5	40.5	42.8
Total assets	232.3	247.0	252.8
Equity and liabilities
Equity	69.6	87.8	88.2
Non-controlling interests	0.0	0.1	0.0
Total equity	69.6	87.9	88.2
Current liabilities
Interest-bearing liabilities	27.5	19.3	20.4
Other current liabilities	135.2	139.8	144.2
Total equity and liabilities	232.3	247.0	252.8

CONDENSED CONSOLIDATED BALANCE SHEET

CONDENSED CONSOLIDATED CASH

FLOW STATEMENT

	2018	2017	2018	2017	2017
Amounts in SEK millions	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
Profit/loss before tax	-3.8	7.5	-7.8	20.5	20.3
Adjustments	-2.2	0.2	5.2	2	3.8
Income tax paid	3.8	-2.0	-2.3	-5.9	-4.7
Cash flow from operating activities before changes in working capital	-2.2	5.7	-4.9	16.6	19.4
Increase (-)/decrease (+) in current receivables	16.9	-4.9	7.6	-1.5	3.0
Increase (+)/decrease (-) in current liabilities	-13.3	5.2	-9.0	-1.8	-8.5
Cash flow from operating activities	1.4	6.0	-6.3	13.3	13.9
Cash flow from investing activities	-0.1	-2.8	-3.1	-4.3	-4.9
Dividend to shareholders	0.0	0.0	-10.3	-10.3	-10.3
Borrowings/Repayment of borrowings	2.3	0.5	7.1	5.1	6.3
Cash flow from financing activities	2.3	0.5	-3.2	-5.2	-4
Cash flow for the period	3.6	3.7	-12.6	3.8	5
Cash flow for the period, discontinued operations	0.0	0.0	0.0	0.0	0.0
Cash and cash equivalents at beginning of period	29.1	37.1	42.8	36.6	36.6
Exchange differences	-1.2	-0.3	1.3	0.1	1.2
Cash and cash equivalents at end of period	31.5	40.5	31.5	40.5	42.8

	2018	2017	2017
Amounts in SEK millions	Jan-Sep	Jan-Sep	Jan-Dec
Opening balance	88.2	81.6	81.6
Total comprehensive income for the period attributable to shareholders of the Parent	-8.3	16.5	16.9
Dividend to shareholders of the Parent	-10.3	-10.3	-10.3
Closing balance attributable to shareholders of the Parent	69.6	87.8	88.2
Non-controlling interests	0.0	0.1	0.0
Total equity, closing balance	69.6	87.9	88.2

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

CONDENSED INCOME STATEMENT – PARENT COMPANY

	2018	2017	2018	2017	2017
Amounts in SEK millions	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
Operating income	2.4	3.0	8.2	9.1	12.9
Operating expenses
Staff costs	-2.0	-2.9	-12.7	-8.5	-12.0
Other expenses	-1.5	-0.6	-2.7	-2.2	-2.9
Depreciation, amortisation and impairment of assets	-0.1	-0.1	-0.3	-0.4	-0.6
Operating profit/loss	-1.2	-0.6	-7.5	-2.0	-2.6
Finance income	0.0	-0.1	0.7	0.0	56.1
Finance costs	-0.1	0.2	-0.5	-0.6	-2
Profit/loss after financial items	-1.3	-0.5	-7.3	-2.6	51.5
Group contributions	0.0	-	0.0	-	5.0
Tax	0.0	0.1	0.0	0.6	-0.1
Profit/loss for the period	-1.3	-0.4	-7.3	-2.0	56.4
Other comprehensive income	-	-	-	-	-
Total comprehensive income for the period	-1.3	-0.4	-7.3	-2.0	56.4

CONDENSED BALANCE SHEET – PARENT COMPANY

Amounts in SEK millions	30/09/2018	30/09/2017	31/12/2017
Assets
Non-current assets
Investments in Group companies	23.6	23.6	23.6
Deferred tax assets	3.0	3.7	3.0
Other non-current assets	0.7	1.2	1.1
Current assets
Current receivables	4.9	23.7	2.5
Receivables from Group companies	53.2	20.6	59.1
Total assets	85.4	72.8	89.3

Amounts in SEK millions	30/09/2018	30/09/2017	31/12/2017
Equity and liabilities
Equity	45.8	5.1	63.5
Liabilities to Group companies	0.6	44.8	0.7
Interest-bearing liabilities	27.5	19.3	20.4
Other current liabilities	11.5	3.6	4.7
Total equity and liabilities	85.4	72.8	89.3

THE GROUP'S KEY FINANCIAL RATIOS BY QUARTER ¹

	2018	2018	2018	2017	2017	2017	2017	2016
	Jul-Sep	Apr Jun	Jan Mar	Oct Dec	Jul-Sep	Apr Jun	Jan Mar	Oct Dec
Operating income	172.7	199.7	200.4	196.8	181.2	194.2	199.2	198.9
Growth, %	-4.7	2.7	0.6	-1.1	-1.3	-3.8	-0.5	-5.3
Growth in local currency, %	-2.4	-0.5	-0.8	-3.3	1.1	-5.0	-1.3	-4.6
Operating margin, %	-2.1	-4.5	2.4	0.7	4.2	3.1	3.5	4.4
Profit margin, %	-2.2	-4.6	2.6	0.0	4.2	2.9	3.5	4.4
Return on capital employed2, %	-6.0	4.9	18.5	21.2	27.2	28.3	32.4	24.2
Return on total assets2, %	-2.5	2.0	7.9	8.7	11.7	11.2	12.3	8.8
Return on equity2, %	-16.7	-0.8	13.1	15.4	24.8	22.6	22.0	14.9
Equity/assets ratio, %	30.0	31.1	35.0	34.9	35.6	33.8	37.3	33.2
Risk-bearing capital, %	30.0	31.1	35.0	34.9	35.6	33.8	37.3	33.2
Number of FTEs, average	1,142	1,197	1,187	1,229	1,275	1,291	1,273	1,271
Revenue per employee, SEK 000	151	167	169	160	142	140	156	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 share3, SEK	-0.33	-0.47	0.22	-0.11	0.37	0.21	0.28	0.30
Equity per share, SEK	4.06	4.43	5.48	5.16	5.13	4.83	5.16	4.76

¹The periods Jan-Sep 2018 and Jan-Sep 2017 have been restated according to IFRS 15

² Trailing 12 months, incl. discontinued operations.

³ No dilutive effects.

THE GROUP'S KEY FINANCIAL RATIOS BY PERIOD

	2018	2017
	Jan-Sep	Jan-Sep
Operating margin, %	-1.4	3.7
Profit margin, %	-1.4	3.6
Basic earnings per share1, SEK	-0.59	0.88
Equity per share, SEK	4.06	5.13

¹ No dilutive effects.

NOTES

NOTE 1 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.

NOTE 2 DISTRIBUTION OF REVENUE

IFRS 15 Revenue from Contracts with Customers has replaced existing standards related to revenue recognition with effect from 2018. The Company applies IFRS 15 with full retrospective application. This means that the revenue is reported when the client obtains control of the sold service and can use and benefit from the service. Under IFRS 15, the permanent placement service is seen as one entire performance obligation that is to be recognised at one point in time. This means that Poolia will recognise the revenue at a later point in time than under the current principles and the effects are shown in the tables below. The effects are entirely related to the Swedish operations, as other countries already report in this way. A more detailed description of accounting policies under IFRS 15 can be found in Poolia's 2017 Annual Report.

The Group's revenue by segment

Amounts in SEK millions

Jan-Sep 2018	Sweden	Finland	Germany	Total	Elimination	Group
Operating income
Temporary staffing	338.4	28.7	131.7	498.8	-	498.8
Permanent placement	52.3	3.8	17.9	74.0	-	74.0
Total operating income	390.7	32.5	149.6	572.8	-	572.8
Timing of revenue recognition Performance obligation satisfied at one point
in time	52.3	3.8	17.9	74.0	-	74.0
Performance obligation satisfied over time	338.4	28.7	131.7	498.8	-	498.8
Total	390.7	32.5	149.6	572.8	-	572.8
SEK millions
Jan-Sep 2017	Sweden	Finland	Germany	Total	Elimination	Group
Operating income
Temporary staffing	338.7	26.5	135.4	500.7	-	500.7
Permanent placement	54.5	2.3	17.4	74.2	-	74.2
Total operating income	393.2	28.9	152.8	574.9	-	574.9
Timing of revenue recognition Performance obligation satisfied at one point
in time	54.5	2.3	17.4	74.2	-	74.2
Performance obligation satisfied over time	338.7	26.5	135.4	500.7	-	500.7
Total	393.2	28.9	152.8	574.9	-	574.9

Effects on income, expenses and profit for the period

	01/01/2017- 30-09/2017	01/01/2017- 31/12/2017
Recognised operating income	574.7	771.5
Restatement according to IFRS 15
Increase/decrease due to changed timing of permanent placement
revenue recognition	0.2	-0.2
Restated Operating income	574.9	771.3
Recognised tax	-5.9	-7.8
Restatement according to IFRS 15
Increase/decrease in Tax	0.0	0.0
Restated tax	-6.0	-7.8
Recognised Profit for the period	15.1	13.1
Restatement according to IFRS 15 Increase/decrease in Profit for the
period	0.2	-0.1
Restated Profit for the period	15.3	13.0

Effect on calculation of earnings per share

	01/01/2017- 30/09/2017	01/01/2017- 31/12/2017
Increase/decrease in Basic earnings per share	0.01	-0.01
Increase/decrease in Diluted earnings per share	0.01	-0.01

Effects on assets, liabilities and equity,

1 January 2017
----------------	--

	Recognised balance sheet items	Restatement according to IFRS 15	Restated balance sheet items
Assets
Deferred tax assets	11.2	0.0	11.2
Current receivables	174.4	0.0	174.4
Total equity
Equity	81.6	0.0	81.6

Effects on assets, liabilities and equity,

30 September 2017
	Recognised balance sheet items	Restatement according to IFRS 15	Restated balance sheet items
Assets
Deferred tax assets	9.9	0.0	9.9
Current receivables	170.1	-0.1	170.0
Total equity
Equity	87.9	-0.1	87.8

Effects on assets, liabilities and equity,

31 December 2017

	Recognised balance sheet items	Restatement according to IFRS 15	Restated balance sheet items
Assets
Deferred tax assets	10.4	0.0	10.4
Current receivables	174.0	-0.1	173.9
Total equity
Equity	88.3	-0.1	88.2

Ref:

A) Under IFRS 15, the permanent placement service is seen as one entire performance

obligation that is to be recognised at one point in time. This means that Poolia will recognise the revenue at a later date than under the current principles. The effects are entirely related to the Swedish operations, as other countries already report in this way.

IFRS 9 Financial Instruments has replaced IAS 39 Financial Instruments: Recognition and Measurement with effect from 2018. IFRS 9 contains new principles for classification and measurement of financial assets, and new rules on impairment testing of financial assets. An analysis based on historical loss levels has been conducted and as no significant effects have been identified, opening balances for 2018 have not been adjusted.

DEFINITIONS

KEY RATIOS DEFINED UNDER IFRS

Earnings per share

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

KEY RATIOS NOT DEFINED UNDER IFRS

Growth Increase in operating income compared with the same period the previous year, expressed as a percentage. Risk-bearing capital Equity, including non-controlling interests and provisions for taxes, as a percentage of total assets. Return on equity Profit/loss after tax divided by average equity. Return on capital employed Profit/loss before tax plus finance costs divided by average capital employed. Return on total assets Profit/loss before tax 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. Operating margin Operating profit 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 total current liabilities, including provisions for taxes. Profit margin Profit before tax as a percentage of operating income. Operating profit Operating income less operating expenses. Non-recurring costs Non-recurring costs are one-time costs that are not part of the normal operating activities.

RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES

In the interim report, Poolia presents certain alternative performance measures (APM) that are not defined under IFRS. Poolia believes that these measures provide useful supplementary information for investors and Company management as they allow for an evaluation of relevant trends. As not all companies calculate financial performance measures in the same way, these are not always comparable with measures used by other companies. These financial performance measures should therefore not be seen as a replacement for measures defined under IFRS. In the key ratios below, the average is the sum of the opening and closing values divided by two. Poolia has chosen to present the Company's alternative performance measures as a separate

appendix, in accordance with the guidelines of the European Securities and Markets Authority (ESMA). The appendix is

published at www.poolia.com.

OPERATIONAL MEASURES

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.

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 that the Parent Company and Group companies face.

Future reporting dates

Year-end report 2018	19 February 2019
Interim report January-March 2019	3 May 2019
Interim report January-June 2019	26 July 2019
Interim report January-September 2019	23 October 2019

Stockholm, 25 October 2018

Björn Örås Chairman of the Board

Anna Söderblom Board member

Dag Sundström Board member

Morten Werner 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 2018 to 30 September 2018. 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 International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information Performed 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 ISA 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, 25 October 2018

Deloitte AB

Daniel de Paula Authorised Public Accountant

Contact person: Morten Werner Managing Director and CEO Tel. +46 70-636 25 25 morten.werner@poolia.se

POOLIA AB (PUBL)

Kungsgatan 57 A Box 207 SE-101 24 Stockholm Tel: 08-555 650 00 Corp. ID no.: 556447-9912 www.poolia.com