ENGLISH VERSION OF THE INTERIM REPORT PUBLISHED ON 29 APRIL 2009 MD and CEO Johan Eriksson comments on Poolia s interim report for 1 January 31 March 2009 Poolia posts a healthy report in a tough market Despite a clear drop in demand for staffing services, Poolia is continuing the positive trend from 2008 and posting a healthy profit for the first quarter of the year. Growth is declining in most markets except healthcare, where Dedicare has not yet been affected by the economic downturn. It is primarily in the service area of permanent placement that the slowdown is most tangible. In order to cope with the fall in demand, we have intensified sales and marketing initiatives while at the same time continuing to adapt the business to the prevailing market situation. MD and CEO Johan Eriksson comments on Poolia s interim report for 1 January 31 March 2009 The rapid slowdown in the economy that we saw at the end of last year was clearly felt during the first quarter of this year. January is usually a month that starts quite slowly, and this year it took longer than usual for demand to take off after the Christmas and New Year holiday. The initiatives that had been launched in 2008, to generate both greater market presence and increased efficiency, have contributed towards our strong quarterly report. Quarterly revenues dropped by 1.8% to a total of MSEK 353.5 (360.1). The operating profit was MSEK 18.4 (28.3). Cash flow from operating activities was MSEK -1.2 (24.0). The equity/assets ratio was 56.6% (59.3) and the operating margin 5.2% (7.8). The business during the first quarter of 2009 Poolia stands for quality and a high degree of specialisation in the business areas of Finance & Accounting, Financial Services, Human Resources, Sales & Marketing, IT & Engineering, Office Support and Executive. Revenues within Poolia Sweden fell by 12.4% Revenues from permanent placement fell by no less than 55%. Thanks to our experienced, skilled employees, we have quickly been able to adapt the business to the new conditions that an economic downturn brings with it. Decisions were made during the period to start up new local offices in Gävle and Linköping. The operating margin for the quarter was 8.1% (10.9). The market in the UK continues to be tough, and here too we see a reduction in the number of permanent placement assignments. During the course of one year we have managed to adapt the business to the prevailing market, but we have now reached a point where we must generate more volume to achieve a positive operating profit. In the banking sector, which was the sector that shrank most of all last year, we can now see slight increase in demand on the temporary staffing side. The Finance & Accounting area continues to be stable, while things are very tough in Office Support. The operating margin for the quarter was -2.7% (1.7). In Germany we can also see a reduction in the area of permanent placement, which is also having a negative effect on the operating margin. This is to some extent balanced by the fact that there is continued growth in
temporary staffing. Our main focus has been on work to extend the range of what we offer. Even if not all offices were profitable before the economic downturn came along, it is our objective to be able to retain our geographical platform so that we are in a strong position when the economic trend turns. The operating margin for the quarter was 7.5% (11.7). In Finland we have held on to the strong position that we created in 2008. The market has been tougher during the first quarter of the year, but we have performed very well in terms of both revenues and operating margin. Revenues from permanent placement fell by 31%, which was compensated by revenues from temporary staffing, which rose by 37%. The operating margin for the quarter was 5.7% (6.6). The market in Denmark has continued to worsen. We do, however, still believe that there is good potential, and with increased collaboration within the Öresund region we believe that the trend in 2009 will take a positive turn. The operating margin for the quarter was negative. Dedicare, our business in the field of healthcare staffing, has not yet been affected by the economic downturn. We are also seeing demand continue to be high in both Sweden and Norway. In Finland, where we launched a new business in the fourth quarter of 2008, we have not yet achieved a critical mass. In Norway Dedicare has been awarded a framework agreement with the four so-called Health regions, which gives Dedicare an opportunity to continue its expansion and to offer Norwegian- and Swedish-speaking healthcare staff assignments all over the country. The agreements cover temporary staffing with doctors, nurses and doctors secretaries. A national organisation will be created in order to guarantee deliveries. During the quarter we made sure that all units in Dedicare had quality certification in accordance with ISO 9001:2000. The operating margin for the quarter was 7.5% (5.5). During the quarter we have been forced to adapt the business to compensate for lower demand, which has meant extra expenses this quarter. These measures are expected to have a positive effect on the profit figure for the next quarter. Looking ahead Exactly how the economic situation will develop in future is difficult to assess at present. Poolia is well equipped to deal with the economic downturn in which we find ourselves at the moment, and is well prepared to take further action if the market situation continues to worsen. We are focusing on an increased market presence, but also on continued, strong cost control. At the same time we are also endeavouring to be well placed to satisfy the market when the economy starts to recover. We are convinced that companies will in future strive to achieve even more flexibility in their staffing, and for this reason the penetration rate in our industry will rise even more during the next economic boom. We will be on that train! Johan Eriksson 2
Poolia interim report 1 January 31 March 2009 Revenues totalled MSEK 353.5 (360.1). The operating profit was MSEK 18.4 (28.3). The profit before tax was MSEK 18.9 (29.5). The profit after tax was MSEK 13.5 (21.5). Earnings per share totalled SEK 0.79 (1.17). Cash flow from operating activities was MSEK -1.2 (24.0). January - March Revenues Revenues for the Group fell by 1.8% to MSEK 353.5 (360.1). The exchange rate effect had a positive impact on revenues of 1.7% during the quarter. Temporary staffing is the largest service area. The proportion of business in permanent placement fell from 10% to 6%, partly because the significantly expanding operation within Dedicare does not offer permanent placement, and partly because of a drop in demand for permanent placement services. Revenues in the Swedish market totalled MSEK 197.1 (225.1), a drop of 12% compared with the corresponding period in the previous year. Revenues in permanent placement have essentially been halved, while the downturn in temporary staffing is more limited. The proportion of business in permanent placement for Poolia Sweden fell from 9% to 5%. The picture is also fragmented in geographical terms. The biggest downturn was seen in Göteborg, followed by Stockholm and Malmö. Revenues have increased outside the major urban regions. Revenues in Denmark were MSEK 2.5 (4.6). The proportion of business in permanent placement increased from 34% to 36%. Revenues in Finland rose by 23% to MSEK 8.4 (6.8). The exchange rate effect had a positive effect on revenues of 17% during the quarter. The proportion of business in permanent placement dropped from 21% to 12%. Revenues in Germany rose by 21% to MSEK 28.0 (23.1). The exchange rate effect had a positive effect on revenues of 17% during the quarter. The highest growth rates were recorded in Frankfurt, Mannheim and Cologne. The proportion of business in permanent placement dropped from 17% to 14%. In the UK revenues fell by 29% to MSEK 35.5 (49.5). The exchange rate effect was -1%. The drop in revenues is due to a general fall in demand in the market, especially in the field of permanent placement. We can see a slight rise in demand for temporary staffing in the banking sector, the Finance & Accounting area continues to be stable, while the trend in Office Support remains weak. The proportion of business in permanent placement for Poolia UK dropped from 14% to 12%. 1
Dedicare, which deals in the temporary staffing of doctors and nurses in Sweden, Norway and Finland, increased its revenues by 61% to MSEK 82.1 (51.0). The level of enquiries has remained strong. Earnings The operating profit was MSEK 18.4 (28.3) and the operating margin 5.2% (7.8). During the quarter adaptations were made in the cost structure in order to deal with the lower level of demand in the market. These changes generated a total of MSEK 1.1 in extra costs of a one-off nature for the Group in the first quarter. The operating profit in Poolia Sweden was MSEK 16.0 (24.6). The operating margin was 8.1% (10.9). Costs of a one-off nature relating to wages for employees who had been served notice and were not assigned work totalled MSEK 0.8. A lower proportion of business in permanent placement means a lower operating margin. The operating loss for Denmark was MSEK -0.8 (0.3). Work on change to achieve a greater focus on sales and better collaboration in the Öresund region has continued, involving measures such as personnel changes. The operating profit in Finland was MSEK 0.5 (0.4), and the operating margin was 5.4% (6.5). A lower proportion of business in permanent placement means a lower operating margin. The operating profit in Germany was MSEK 2.1 (2.7). The operating margin was 7.5% (11.7). New branches under construction (the offices in Cologne and Hanover) created a negative contribution of MSEK 1.6 (0.3). The UK reported an operating loss for the period of MSEK -1.0 (profit: 0.8). Compared with the previous year there was an adaptation of shared costs, but higher revenue volumes are required to produce a profit. Costs of a one-off nature totalled MSEK 0.2 during the quarter. The operating profit for Dedicare was MSEK 6.2 (2.8), and the operating margin was 7.5% (5.5). The increase in the profit relates partly to volume, but is also a consequence of the business in Norway having been rationalised during the period. Non-distributed parent company costs totalled MSEK -4.6 (-3.3). The profit before tax was MSEK 18.9 (29.5). The tax rate for the Group was 28% (27%). Information about operational branches and geographical regions The basis for division into segments is described in the most recent annual report for 2008. There has been no change in this division in 2009. Nor have there been any significant changes in total assets. Jan Mar Revenues and operating results 2009 Jan-Mar Operating revenues 2009 Jan-Mar Operating profit (loss) 2008 Jan-Mar Operating revenues 2008 Jan-Mar Operating profit (loss) Poolia Sweden 197.1 16.0 225.1 24.6 Poolia Finland 8.4 0.5 6.8 0.4 Poolia Denmark 2.5-0.8 4.6 0.3 Poolia Germany 28.0 2.1 23.1 2.7 2
Poolia UK 35.5-1.0 49.5 0.8 Dedicare 82.1 6.2 51.0 2.8 Non-distributed parent company -4.6-3.3 costs Total 353.5 18.4 360.1 28.3 Liquidity and financing On 31 March 2009 the Group s cash and cash equivalents totalled MSEK 114.3 (129.6). Cash flow from operating activities during the period was MSEK -1.2 (MSEK 24.0). The deviation compared with the previous year is partly because Easter 2008 fell at the end of March, which meant a lower amount tied up in current receivables. A higher proportion of the Group s revenue also comes from the Dedicare business, which has a higher amount tied up in operating capital. The equity/assets ratio was 56.6% (59.3). Investments The Group s investments in fixed assets totalled MSEK 0.5 (2.9). 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 2,007 (2,100). On 31 March 2009 the total number of employees was 2,266 (2,351). Parent company The parent company engages in general corporate management, development, financial management and IT administration. Revenues during the period totalled MSEK 5.2 (5.5), and there was a loss after financial items of MSEK 4.6 (loss: 3.1). Market trend The financial crisis and the subsequent slowdown in the economy have had a negative effect on all markets where Poolia operates, primarily in respect of demand for permanent placement services. No negative impact on the healthcare market where Dedicare operates has been noted. Exactly how the economic situation will affect the staffing sector in the short term is difficult to assess at present. In the longer term we are convinced that companies in future will strive to achieve even greater flexibility in their staffing solutions, which will bring a greater penetration rate in the next economic boom. 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 customers 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. 3
Summary statement of consolidated comprehensive income Jan-Mar Jan-Mar Jan-Dec MSEK 2009 2008 2008 Operating revenues 353.5 360.1 1 437.8 Personnel expenses -307.1-298.5-1 209.9 Other costs -25.9-31.7-115.2 Depreciation of fixed assets -2.1-1.6-7.4 Operating profit 18.4 28.3 105.3 Financial items 0.5 1.2 4.3 Profit before tax 18.9 29.5 109.6 Tax -5.4-8.0-27.0 Profit for the period 13.5 21.5 82.6 Other items that affect comprehensive income Translation differences 4.8-9.1-10.0 Comprehensive income for the period 18.3 12.4 72.6 Profit for the period attributable to: Parent company s shareholders 13.3 21.5 82.1 Minority shareholders 0.2-0.5 Basic and diluted earnings per share, SEK 0.79 1.17 4.61 Comprehensive income attributable to: Parent company s shareholders 18.1 12.4 72.1 Minority shareholders 0.2-0.5 Summary of the consolidated balance sheet MSEK 31-03-2009 31-03-2008 31-12-2008 Assets Goodwill 93.6 92.8 89.6 Other fixed assets 33.6 29.6 34.0 Deferred tax assets 17.5 17.9 17.5 Current receivables 267.2 246.1 244.0 Cash and cash equivalents 114.3 129.6 116.5 Total assets 526.2 516.0 501.6 Equity and liabilities Equity 296.3 306.0 278.2 Minority share of equity 1.4-1.2 Long-term liabilities 8.3 2.1 8.3 Current liabilities 220.2 207.9 213.9 Total equity and liabilities 526.2 516.0 501.6 Pledged assets and contingent liabilities 0.2 0.2 0.2 Change in Group equity Jan-Mar Jan-Mar MSEK 2009 2008 Opening amount 278.2 293.6 Comp. income for period attributable to the parent company s shareholders 18.1 12.4 Closing amount attributable to the parent company s shareholders 296.3 306.0 Minority share of equity 1.4 - Closing amount including minority share 297.7 306.0 4
Summary of the consolidated cash flow statement Jan-Mar Jan-Mar Jan-Dec MSEK 2009 2008 2008 Cash flow from operating activities -1.2 24.0 105.7 Cash flow from investment activities -0.5-2.9-11.8 Cash flow from financing activities - - -87.7 Cash flow for the period -1.7 21.1 6.2 Opening cash and cash equivalents 116.5 111.4 111.4 Exchange rate difference in cash and cash equivalents -0.5-2.9-1.1 Closing cash and cash equivalents 114.3 129.6 116.5 The Group s key ratios Jan-Mar Jan-Mar MSEK 2009 2008 Jan-Dec 2008 Operating margin, % 5.2 7.8 7.3 Profit margin, % 5.3 8.2 7.6 Return on capital employed, % (12 months rolling) 33.1 26.9 38.4 Return on total capital, % (12 months rolling) 19.2 15.6 22.0 Return on equity, % (12 months rolling) 24.9 23.5 28.9 Equity/assets ratio, % 56.6 59.3 55.7 Share of risk-bearing capital, % 58.2 59.3 57.4 Average number of annual employees 2 007 2 100 2 108 Revenues per employee, KSEK 176 171 682 Number of shares, average (,000) 17 122 18 467 17 808 Number of shares, outstanding (,000) 17 122 18 467 17 122 Basic and diluted earnings per share, SEK 0.79 1.17 4.61 Equity per share, SEK 17.31 16.57 16.25 The key ratios Return on equity, Earnings per share and Equity per share are calculated excluding the minority share. 5
Summary of the parent company s income statement Jan-Mar Jan-Mar Jan-Dec MSEK 2009 2008 2008 Net revenues 5.2 5.5 22.4 Personnel expenses -4.8-4.4-19.5 Other costs -4.7-4.5-20.5 Depreciation of fixed assets -0.3 - -0.2 Operating profit -4.6-3.4-17.8 Financial items - 0.3-2.6 Profit/loss after financial items -4.6-3.1-20.4 Appropriations - - -18.5 Tax 1.2 0.9 9.3 Loss for the period -3.4-2.2-29.6 Summary of the parent company s balance sheet MSEK 31-12-2009 31-12-2008 31-12-2008 Assets Participations in Group companies 122.4 128.2 122.4 Other fixed assets 16.3 7.4 15.2 Current receivables 109.3 115.7 99.5 Cash and cash equivalents 2.2 35.6 15.4 Total assets 250.2 286.9 252.5 Equity and liabilities Equity 221.0 281.7 224.4 Untaxed reserves 18.5-18.5 Current liabilities 10.7 5.2 9.6 Total equity and liabilities 250.2 286.9 252.5 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-Jun 21 Jul 2009, 13:00 Interim Report, Jan-Sep 28 Oct 2009, 08:00 Year-end Bulletin, 2009 Feb 2010 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. 6
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. Stockholm, 28 April 2009 Board of Directors 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 Mats Påhlson, Chief Financial Officer, tel. +46 (0)8-555 650 20 Poolia AB (publ) Warfvinges väg 20 Box 30081 SE-104 25 Stockholm Tel.: +46 (0)8-555 650 00 Fax: +46 (0)8-555 650 01 Corp. ID no.: 556447-9912 www.poolia.com 7