Proffice grows on a stagnating market

Transcription

1 Proffice grows on a stagnating market Q year-on-year comparison Net sales increased 9 per cent to SEK 1,200 million (1,096) EBITA and operating profit declined 13 per cent to SEK 40 million (46) EBITA and operating margin amounted to 3.3 per cent (4.2) In Sweden, which accounts for 78 per cent of consolidated net sales, Proffice s net sales increased 9 per cent to SEK 930 million (850). Operating profit totalled SEK 51 million (56), representing an operating margin of 5.5 per cent (6.6). Cash flow from operating activities totalled SEK -51 million (15) Basic earnings per share totalled SEK 0.35 (0.43) Financial overview Full year Change Group quarter Net sales, SEK million 1,200 1,096 4,770 9% EBITA, SEK million % EBITA margin, per cent Operating profit, SEK million % Operating margin, per cent Profit after tax, SEK million % Basic earnings per share, SEK % Diluted earnings per share, SEK % Cash flow from operating activities, SEK million Equity per share, SEK % Return on equity, per cent

2 CEO comments The Proffice Group continues to grow Proffice had its strongest year ever in Against this background, the year-on-year consolidated net sales increase of 9 per cent for Q is considered particularly strong. Once again we show that despite a tougher market environment we can grow and gain market share. Profitability in Q1 was affected by continued efforts to build structural capital by implementing our Group-wide enterprise resource planning (ERP) system in Sweden, along with higher guaranteed wages due to lower growth rates. Our specialisation strategy continues to reap success, and in Q1 we developed the strategy further by acquiring the minority shares in Dfind IT. This gives us a strong position in a business area with high demand in the Nordic market. Our specialist companies in the Finance and Industry/Logistics areas are growing considerably more than the market. Sweden: Growth despite stagnant market In Sweden, Proffice grew 9 per cent in Q1 year-on-year. The staffing market in Sweden is highly competitive, and the growth rate slowed during the quarter. Despite this, several of our business areas continue to show good earnings. Industry/Logistics in Sweden grew 38 per cent year-on-year and sees strong demand ahead. Our initiatives in the Finance business area resulted in a sales increase of 35 per cent in Q1 year-on-year. Profitability for Proffice Sweden in Q1 was 5.5 per cent (6.6). Direct and operational costs associated with implementation of our new ERP system in Sweden encumbered profitability and liquidity in Q1 and will also affect the next two quarters. During the period, Proffice concluded several important agreements, including one with Region Skåne in which the company will be a supplier in the finance, medical secretary, HR, and communication occupational categories. Norway: Good results in favourable labour market Operations are developing as planned in Norway. Efforts to improve the operation are giving good results, and aspirations for the future continue to be high. Overall, sales grew in Norway by 12 per cent in Q1 year-on-year. The operating margin also improved during the period to 1.6 per cent (1.4). Proffice Norway concluded a number of important agreements in Q1, including one with NextGenTel AS. Denmark and Finland achieve stability In Denmark, previously implemented cuts resulted in a balanced operation with low costs. With a new salesoriented Managing Director, we believe in conservative growth and continued good cost control. Proffice Finland is on track and also shows stable development. Finland is an interesting market in which we continue to evaluate various growth opportunities. At Proffice, the people make all the difference We are currently experiencing a tougher economic climate with slower growth. Our business model continues to work well, but now we must also be able to quickly reorganise to meet a lower growth rate. Changing our ERP system will give us large competitive advantages in the long term. To achieve our long-term goals, we continue to work with that which drives our organisation forward: getting people and businesses to develop and grow. By creating a business environment in which entrepreneurship is part of the culture, we will be first with the best services and thus meet our clients and candidates needs. We are currently in the second round of Prolab, our internal entrepreneurial school in which our employees have the opportunity to develop themselves and their business concepts. In Q1, Proffice also concluded a partnership with Uppstart Malmö, in which we, together with young entrepreneurs, help highlight people s competence and help companies and entrepreneurs grow. Together, these initiatives give the Proffice Group even greater opportunities to offer both existing and new customers successful staffing solutions while becoming an increasingly important player in the Nordic labour market. With good cost control and driven, motivated employees, we will continue our persistent efforts to become the most successful staffing company in the Nordics. The Norwegian labour market is currently somewhat more stable than the Swedish with lower unemployment, which is confirmed in our Norwegian operation by a positive trend reversal, with increased sales in the Recruitment operating area. The specialisation strategy has also been successful in our Norwegian operation, and our Industry/Logistics and Care business areas increased their sales 19 and 31 per cent, respectively. Lars Kry, president and CEO 2

3 Key events during the period Proffice acquired the minority share in Dfind AB early. Since 2005, Proffice has held 51 per cent of shares in Dfind. A buy-out of minority shares was originally planned for early 2013 but was advanced, and an agreement to acquire the shares was signed on 12 January The purchase price for the remaining 49 per cent of shares totalled SEK 159 million and is due no later than 1 February The acquisition does not involve any management changes in the company. Dfind is a very successful player in IT staffing and aims to continue to grow on the Nordic market. Proffice was named a supplier to Region Skåne. Proffice signed an agreement with Region Skåne to supply staffing services. The contract runs two years and has an optional two-year extension. Proffice invested in specialist area Proffice Aviation. The Proffice Aviation specialist area mainly concentrates on staffing, recruitment, training, and subcontracting in the flight and travel industries. Lars Kry, president and CEO, designated 2012 Manager of the Year. The Manager of the Year award was instituted in 2003 by Sweden s Chef magazine. The purpose of the award is to recognise and reward good examples among Swedish executives and spread their message of good management and leadership. He received the award at a gala in Stockholm on 14 March. In the justification, he is described as a role model for his entire industry, and an opinion-maker that helps ensure people can enter the labour market. Key events after period s end Proffice grows in Industry/Logistics. On 1 April, Proffice Industry/Logistics was further specialised. Contracting solutions were placed in a separate company, Proffice Logistic Solutions AB. At the same time, the operation is expanding into four more strategically important locations in Sweden: Eskilstuna, Norrköping, Linköping and Jönköping. Proffice was named a supplier to Posten Logistik. Posten Logistik AB chose Proffice AB as one of five nationwide suppliers in Sweden. The framework agreement runs for three and a half years with the option of a two-year extension. Proffice and Uppstart Malmö in partnership for jobs. Proffice and the Uppstart Malmö Foundation began a partnership to support entrepreneurs in order to create more jobs in the Malmö region. Uppstart Malmö is a private, non-profit foundation with the purpose of creating 1,000 new jobs over a three year period by supporting entrepreneurs with things like investment capital, advice, and coaching. Proffice s role is to recruit personnel for various business projects and to help new companies grow. 3

4 Overview Group Net sales and operating profit for first quarter Consolidated net sales for Q1 totalled SEK 1,200 million (1,096), a 9 per cent rise in sales compared year-on- year. The increase is largely attributable to growth in the Staffing operating area in Sweden and Norway. Sales in the Outplacement operating area continue to be slow as expected. figures were affected by the acquisition of Komet, which was implemented in Q In Q1 2012, Komet contributed SEK 42 million to Group sales. Consolidated operating profit for Q1 amounted to SEK 40 million (46). The operating margin was 3.3 per cent (4.2) during the same period. The operating margin in Sweden in particular declined to 5.5 per cent (6.6) during the quarter. In Sweden, implementation of a new ERP system is in progress, which means a temporary increase in overhead and thus a decline in operating margin. Higher guaranteed wages due to a lower growth rate also had a negative effect on the operating margin during the quarter. SEK million Q Revenue and operating margin Q Q Q Q Revenue Q Q Q Q Q Q Q Operating margin % SEK million Q Q Q Operating profit Q Q Q Q Q Q Q Q Q Liquidity and financial position Cash and cash equivalents at the closing date totalled SEK 47 million (120 at 31 December 2011). Unappropriated liquid assets amounted to SEK 252 million (325 at 31 December 2011), including unused credit commitments. Consolidated financial position changed from Q4 of last year due to reducedd cash flow from operating activities and a dividend of SEK 15 million paid to minority shareholders in Dfind AB. Group equity at period s end totalled SEK 538 million (700 at 31 December 2011) and the equity/assets ratio was 29.0 per cent (35.7 at 31 December 2011). Consolidated non-restricted equity for Q1 was affected by the acquired minority interests in Dfind AB, SEK 150 million, and a dividend of SEK 37 million. Of the total dividend amount, SEK 15 million was paid out. 4

5 SEK Cash and cash equivalents at period's end million Q Q Q Q Q Q Q Q Q Q Q Q Cash flow Cash flow from operating activities in Q1 amounted to SEK -51 million (15), of which change in working capital totalled SEK -59 million (3). The ongoing implementation of the new ERP system affected cash flow negatively in the form of a temporary delay in invoicing and increased overhead. The reduced volume in Q compared to Q had a negative influence due to reduced operating receivables and liabilities. During the quarter, consolidated cash flow was affected by investments in non-current assets of SEK 6 million, of which SEK 4 million was for the ERP system and SEK 2 million for equipment. In addition, SEK 37 million was distributed to minority shareholders in Dfind AB, of which SEK 15 million was paid out. SEK 2 million of consolidated interest-bearing liabilities was amortised during the quarter. SEK million Q Cash flows from operating activities Q Q Q Q Q Q Q Q Q Q Q Taxes Consolidated tax expense for January-March amounted to SEK -11 million (-13). The effective tax rate for the period was 29.7 per cent (28.3). Tax expense is calculated on the basis of the current tax rate for the Parent Company and each subsidiary. Temporary differences and existing deficit deductions are taken into consideration. Employees The average number of full-time employees in the Group was 8,139 (7,546), an increase of 593 FTEs or 8 per cent. Komet, which was acquired in Q3 2011, accounted for 336 FTEs. 5

6 Market development by country Proffice s operations are organised and monitored with regard to the countries in which the Group is active. Sweden, Norway, Finland, and Denmark have been defined as operating segments. Internal pricing between operating segments is based on market-based conditions. Breakdown by country net sales and operating profit/loss SEK million Net sales Sweden Norway Finland Denmark Total Full year , ,200 1,096 4,770 Change quarter 9% 12% - -25% 9% Operating profit/loss Sweden Norway Finland Denmark Group-wide Total % 33% - 100% -25% -13% Group-wide The Parent Company s operation is included in the Group-wide item. During the period, Parent Company expenses increased due to initiatives whose purpose is to increase efficiency through centralised functions and increased scalability. Breakdown by country first quarter net sales Sweden 78 % Norway 20 % Finland 2 % Denmark 0 % 6

7 Net sales by operating area Within each country, Proffice s operations are divided into three operating areas: Staffing, Recruitment, and Outplacement. Staffing is the basis of our operations and means that Proffice can provide personnel for shorter or longer assignments. The Recruitment operating area provides recruitment consultants with broad experience in Proffice s specialist areas. The Outplacement operating area works with outplacement programs. SEK million Net sales Staffing Recruitment Outplacement Total Full year ,128 1,021 4, ,200 1,096 4,770 Change quarter 10% 6% -22% 9% Breakdown by country first quarter net sales by operating area SEK million Net sales Sweden Norway Finland Denmark Total Staffing Recruitment Outplacement , Total ,200 Breakdown by operating area first quarter net sales Staffing 94% Recruitment 4% Outplacement 2% Group-wide, Staffing was up 10 per cent, Recruitment was up 6 per cent, and Outplacement was down 22 per cent. The growth in Staffing is primarily attributable to sales success in Sweden and Norway. Percentage of consolidated sales in cent (2). Q1: Staffing 94 per cent (93), Recruitment 4 per cent (5), Outplacement 2 per 7

8 Breakdown by business area net sales in Staffing operating area Staffing, Proffice s largest operating area, is divided into six business areas: Office/Customer service, Industry/Logistics, Finance, IT, Care, and Life Science. SEK million Net sales Office/Customer service Industry/Logistics Finance IT Care Life Science Total Full year , , ,128 1,021 4,499 Change quarter 3% 32% 22% 8% -18% -3% 10% Breakdown by business area Staffing first quarter net sales Office/Customer service 36,9% Industry/Logistics 32,2% Finance 8,8% IT 11,1% Care 7,6% Life Science 3,4% Compared to Q4 2011, growth was subdued except for the Finance business area, which grew 9 per cent. Year-on-year growth in Q1 was primarily in the Industry/Logistics and Finance business areas. The decrease in the Care business area was primarily due to termination of the partnership with Örebro Municipality in Q

9 Sweden Net sales by operating area Full year Change SEK million quarter Net sales Staffing ,431 11% Recruitment % Outplacement % Total ,667 9% Development of net sales by business area in Staffing SEK million Q Q Q Q Q Q Q Office/Customer service Industry/Logistics Finance IT Care Life Science In Sweden, Q1 net sales rose 9 per cent compared year-on-year. The sales increase is mainly attributable to increased demand at Proffice in the Staffing operating area. Proffice Sweden stood for 78 per cent (77) of consolidated sales in Q1 for a total of SEK 930 million (850). Within the Staffing operating area in Sweden in Q1, the Office/Customer service business area accounted for 34.9 per cent of net sales, while Industry/Logistics accounted for 32.4 per cent. Growth in Office/Customer service decreased 1 per cent, while Industry/Logistics grew 38 per cent compared year-on-year. figures were affected by the acquisition of Komet, which was implemented in Q In Q1 2012, Komet contributed SEK 42 million to the Group s Swedish sales. Komet operates mainly within the Staffing operating area. Sales within Staffing are allocated over all business areas in the Group with the exception of Life Science and Care. The decrease in sales in Q compared to Q and the ongoing implementation of the new ERP system had a negative impact on the operating margin. The operating margin decreased to 5.5 per cent (6.6) in Q1. 9

10 Norway Net sales by operating area Full year Change SEK million quarter Net sales Staffing % Recruitment % Outplacement Total % Development of net sales by business area in Staffing SEK million Q Q Q Q Q Q Q Office/Customer service Industry/Logistics Finance IT Care Net sales increased to SEK 244 million (218) in Q1, up 12 per cent compared year-on-year. Operating profit totalled SEK 4 million (3). The operating margin improved to 1.6 per cent (1.4) in Q1. Adjusted for currency effects, sales increased 9 per cent corresponding to NOK 18 million. Adjusted for currency effects, operating profit rose 14 per cent corresponding to NOK 0.4 million. Operations in Norway are influenced by seasonal variations and, in view of this, earnings development was positive in Q1. The Staffing operating area constitutes 96 per cent of Norway s net sales. Office/Customer service is the largest business area within Staffing in Norway, making up 42.7 per cent of total net sales. Growth in Office/Customer service increased 14 per cent compared year-on-year. The specialist strategy continues in Norway. 10

11 Finland Net sales by operating area Full year Change SEK million quarter Net sales Staffing % Recruitment % Outplacement Total Development of net sales by business area in Staffing SEK million Q Q Q Q Q Q Q Office/Customer service Industry/Logistics Finance IT Net sales in Finland in Q1 totalled SEK 20 million (20), which is unchanged compared year-on-year. Operating profit for Q1 totalled SEK 0 million (0). Denmark Net sales by operating area Full year Change SEK million quarter Net sales Staffing % Recruitment Outplacement Total % In Q1, Denmark had an operating profit of SEK 0 million (-1). Net sales decreased to SEK 6 million (8) in Q1. 11

12 Other disclosures The Proffice share The number of shares at 31 March 2012 amounted to 68,677,773, of which 64,677,773 are class B shares. The Proffice share is listed on the Nasdaq OMX Stockholm, Mid Cap. At Proffice s AGM on 4 May 2011, the board was authorised to determine whether to acquire and transfer own shares. No shares have been acquired since the 2011 AGM. Full year Number of shares at end of period 68,677,773 68,623,773 68,677,773 Average number of basic shares 68,677,773 68,184,854 68,184,854 Average number of diluted shares 68,677,773 68,621,406 68,212,892 Transactions with related companies In conjunction with utilisation of the option to acquire the minority share in Dfind AB, transactions took place with the company s CEO and previous minority owners. The transaction totalled SEK 159 million. The nature of other transactions with related companies is unchanged in Q1 as compared to previous periods. Transactions with related companies are disclosed in the 2011 Annual Report, Note 19 (p. 31). Besides the usual transactions between Group companies, there were no transactions with related parties that materially affected the company s position and earnings during the period. Risks and uncertainty factors The Group s and Parent Company s most significant risk and uncertainty factors consist chiefly of sensitivity to economic fluctuations and market changes. The supply of qualified employees is also considered to be an uncertainty factor. Apart from this and owing to its Nordic presence, Proffice is exposed to financial risks mainly in the form of currency risks. Influencing factors and financial risk management are described in detail in the 2011 Annual Report, Note 2 (pp ) and Note 4 (p. 20). Apart from the risks described there, no other significant risks were deemed to have emerged. Company acquisitions In 2005, the Group acquired 51 per cent of the shares in unlisted company Dfind AB for SEK 1 million. On 22 February 2012, the remaining 49 per cent of the Dfind Group shares were acquired for SEK 159 million. Payment of the purchase price will be made on the 1 February 2013 due date. Dfind is a very successful player in IT staffing. Through this acquisition, the Group is expecting continued growth on the Nordic market. On the date of acquisition, the share of net assets for non-controlling interest totalled SEK 2 million, and the purchase price totalled SEK 159 million. A discount rate of 4.5 per cent equalling SEK 7 million was calculated on the purchase price up to the due date. The effect on equity was SEK 150 million and, on the whole, affected consolidated retained earnings in Q1. Acquisition-related expenditures Acquisition-related expenditures totalled SEK 1 million and were related to consultant fees in connection with the acquisition. These expenditures were recognised as other operating expenses in the consolidated statement of comprehensive income. In the Parent Company, the expenditures are included in the cost of acquisition of the subsidiary. 12

13 Parent Company Parent Company operations consist of managing joint functions in a number of areas, including finance, HR, IT, marketing, premises, and information. The Parent Company s operating loss totalled SEK -15 million (-12) in Q1. Profit after financial items amounted to SEK 21 million (-5). The Parent Company received SEK 38 million in dividends from subsidiaries. Investments in non-current assets totalled SEK 6 million in Q1, of which SEK 4 million was for the ERP system and SEK 2 million for equipment. Investments in non-current financial assets totalled SEK 153 million and referred to acquisition of 49 per cent of the shares in Dfind AB. At period s end, unappropriated liquid assets totalled SEK 218 million (267 at 31 December 2011), including credit commitments of SEK 205 million (205 on 31 December 2011). Accounting policies The interim report for the Group was prepared pursuant to IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act, and the Swedish Securities Market Act. The interim report for the Parent Company was prepared pursuant to Chapter 9, on interim reporting, of the Swedish Annual Accounts Act and the Swedish Securities Market Act, which complies with the regulations of the Swedish Financial Reporting Board s RFR 2. The accounting policies and bases of calculation used in the latest annual report were used for the Group and Parent Company. New 2012 accounting policies New or revised IFRS standards and interpretive statements from the IFRS Interpretations Committee have had no effect on the Group s or Parent Company s earnings, financial position, or disclosures. This interim report was not reviewed by the company s auditors. Stockholm, 3 May 2012 Proffice AB (publ) Lars Kry President and CEO 13

14 Consolidated statement of comprehensive income, condensed Full year SEK million Net sales 1,200 1,096 4,770 Operating costs Employee expenses -1, ,925 Other operating expenses Depreciation, amortisation and write-downs of assets Operating profit Earnings from financial items Financial income Financial expenses Exchange differences Profit after financial items Tax Profit for the period Other comprehensive income Translation differences in foreign subsidiaries for the period Total comprehensive income for the period Period s profit attributable to: Parent Company owners Non-controlling interests Comprehensive income for the period attributable to: Parent Company owners Non-controlling interests Basic earnings per share, SEK Diluted earnings per share, SEK

15 Consolidated statement of financial position, condensed 31 Mar 31 Mar 31 Dec SEK million Assets Intangible non-current assets Property, plant and equipment Other investments held as fixed assets Non-current receivables Deferred tax assets Current receivables 1, ,163 Cash and cash equivalents Total assets 1,852 1,698 1,959 Equity and liabilities Equity Deferred tax liability Interest-bearing non-current liabilities Interest-bearing current liabilities Non-interest-bearing current liabilities 1,069 1,004 1,166 Total equity and liabilities 1,852 1,698 1,959 Pledged assets Contingent liabilities Key ratios Full year Group Operating margin, per cent Profit margin, per cent Return on equity, per cent Net debt, SEK million Equity/assets ratio, per cent Average FTEs 8,139 7,546 8,607 15

16 Consolidated statement of changes in equity, condensed Equity attributable to Parent Company owners Retained earnings including profit for the year Total attributable to Parent Company owners Noncontrolling interests Share Other capital Total SEK million capital contributions Reserves equity Equity, 1 January Comprehensive income Profit for the year Other comprehensive income Exchange differences Total comprehensive income for the period Transactions with shareholders Dividend Transactions with shareholders for the period Equity 31 March Equity, 1 January Comprehensive income Profit for the year Other comprehensive income Exchange differences Total comprehensive income for the period Transactions with shareholders Acquisition of non-controlling interest Dividend Transactions with shareholders for the period Equity 31 March

17 Consolidated statement of cash flow, condensed Full year SEK million Operating activities Profit after financial items Adjustments for items not included in cash flow Reversal of amortisation, depreciation, and impairment losses Other Tax paid Cash flow from operating activities before changes in working capital Change in working capital Change in operating receivables Change in operating liabilities Total change in working capital Cash flow from operating activities Investing activities Acquisition of business, less acquired cash and cash equivalents Acquisition of intangible non-current assets Acquisition of property, plant, and equipment Cash flow from investing activities Financing activities Dividend Loans raised Warrant buy-back Payments from warrants Amortisation of liabilities Cash flow from financing activities Cash flow for the period Cash and cash equivalents at period s start Exchange-rate difference in cash and cash equivalents Cash and cash equivalents at period s end

18 Income statement for Parent Company, condensed Full year SEK million Net sales Operating costs Employee expenses Other external costs Depreciation and amortisation of tangible and intangible assets Operating loss Earnings from financial items Earnings from shares and participating interests in Group companies Interest income and similar items Interest expenses and similar items Exchange differences Profit/loss after financial items Appropriations Tax Profit/loss for the period Statement of comprehensive income for Parent Company, condensed Full year SEK million Comprehensive income Profit/loss for the year Other comprehensive income Comprehensive income for the year Balance sheet for Parent Company, condensed 31 Mar 31 Mar 31 Dec SEK million Assets Intangible non-current assets Property, plant and equipment Non-current financial assets Current receivables Cash and bank balances Total assets 1,500 1,080 1,600 Equity and liabilities Equity Untaxed reserves Interest-bearing non-current liabilities 8-8 Interest-bearing current liabilities ,059 Non-interest-bearing current liabilities Total equity and liabilities 1,500 1,080 1,600 Pledged assets Contingent liabilities

19 About Proffice Proffice offers solutions in Staffing, Recruitment and Outplacement Proffice s customers include private and public companies and organisations Proffice has more than 10,000 employees in about 100 offices in Sweden, Norway, Finland and Denmark Proffice negotiates a new job every four minutes Proffice originated in Snabbstenografen, founded in 1960 Proffice shares are listed on the NASDAQ OMX Stockholm, Mid Cap Market development Economic conditions in the Nordic countries are more subdued and the outlook is difficult to forecast. However, an uncertain market can be a positive climate for our business, as customer needs for flexible employee staffing increases. Vision Proffice aims to be the most successful staffing company in the Nordic region. Business concept Proffice enables people and businesses to develop and grow by being a committed, responsive, solution-oriented staffing company. Strategies Proffice s main strategy is product leadership through specialisation. Distinct sales culture Proffice has a distinct sales culture that is manifested through leadership and organisational structure. Balanced products Proffice s operating areas Staffing, Recruitment and Outplacement have reversed economic cycles. This provides more balanced net sales and earnings over time. Specialisation and Innovation Increased specialisation means more satisfied customers and higher margins. Our organisational structure increases specialisation and proximity to customers. One Proffice Proffice strives for an organisation with standardised procedures to facilitate efficiency and scalability. Selective acquisitions Proffice s high growth targets require a focus on both organic growth and selective acquisitions. 19

20 Other Company/Industry-specific glossary Outplacement Process in which job coaches provide support and assistance in the outplacement process. The job coach helps individuals transition from one job to another. Staffing Personnel in various, specific areas who are employed by Proffice but can be hired out for short or extended periods by other companies. Recruitment/recruitment process Process for employing the persons a company needs to ensure qualified employees. Needs analyses, searches, interviews, tests, and follow-ups are included in the process. Definitions of key ratios EBITA Earnings before interest, taxes, amortisation, and write-downs of goodwill and other intangible assets that arise in conjunction with acquisitions EBITA margin EBITA as a percentage of net sales Equity per share Equity divided by number of shares at period s end Average number of employees Total hours worked during the year divided by normal hours worked per year for a full-time employee Net debt The sum of cash and cash equivalents plus investments in securities less interest-bearing liabilities Earnings per share Earnings after tax attributable to Parent Company owners divided by average number of basic and diluted shares. Return on equity Earnings after tax as a percentage of average equity Operating margin Operating profit/loss as a percentage of net sales Equity/assets ratio Equity divided by total assets Profit margin Profit/loss after financial income as a percentage of net sales 20

21 If you have questions about this interim report, please contact: Lars Kry, President and CEO, phone , lars.kry@proffice.com Magnus Uvhagen, acting CFO, phone , magnus.uvhagen@proffice.com 2012 financial information Interim Report January June 2012: 23 August 2012, 8:00 am Interim Report, January October 2012: 21 November 2012, 8:00 am Full Year Report, January December 2012: 19 February 2013, 8:00 am The information in this interim report is such that Proffice AB (publ) is obligated to disclose it pursuant to the Swedish Securities Markets Act. The information was released for publication on 3 May at 8:00 am CET. All forward-looking statements in this report are based on the company s best estimate at the time of the report. As with all forecasts, such statements contain risks and uncertainties that may entail a different outcome. 21