Quick action led to positive results

Transcription

1 Quick action led to positive results Q year-on-year comparison Revenue decreased 12 per cent to SEK 1,062 million (1,200) EBITA and operating profit declined 75 per cent to SEK 10 million (40) EBITA and operating margin stood at 0.9 per cent (3.3) Basic earnings per share totalled SEK 0.19 (0.35) Cash flow from operating activities totalled SEK 44 million (-51) Financial overview Q1 Change Full year Group quarter 2012 Revenue, SEK million 1,062 1,200-12% 4,876 Other operating income, SEK million EBITA, SEK million % 110 EBITA margin, per cent Operating profit, SEK million % 110 Operating margin, per cent Profit after tax, SEK million % 78 Basic earnings per share, SEK % 1.11 Diluted earnings per share, SEK % 1.11 Cash flow from operating activities, SEK million Cash flow from operating activities per share, SEK Basic equity per share, SEK % 7.46 Return on equity, per cent

2 Contents Comments from CEO Lars Kry 3 Key events 4 Overview Group 5 Market development 8 Sweden 12 Norway 13 Finland 14 Denmark 15 Other disclosures 16 Q1 figures 18 About Proffice 25 Other information 26 About the Proffice Group Proffice aims to be the most successful staffing company in the Nordic region. Our main strategy is product leadership through specialisation, making us an attractive partner for individuals and companies. We will create value for our shareholders by growing faster than the staffing market in the prioritised segments in which we are represented, and through a balanced combination of organic growth and selective acquisitions. 2

3 Comments from Lars Kry, CEO Quick action led to positive results By reacting quickly and forcefully with an action plan in the autumn of 2012, we can report a positive EBITA margin of 0.9 per cent (3.3) for the quarter. The action plan is now concluded and has encumbered the quarter s profit by SEK 5 million. Total cost savings are expected to reach SEK 220 million annually with full effect by autumn. Revenue for the quarter fell 12 per cent to SEK 1,062 million (1,200), primarily due to lower demand and fewer working days in the first quarter in Sweden and Norway. These factors are having a strong impact on revenue and EBITA. Through more efficient processes, we have managed to improve our cash flow to SEK 44 million (-51). Positive results in Sweden despite continued weak market The Swedish economy has been affected by the turmoil in Europe. Continued relatively high lay-off statistics helped our outplacement business increase 33 per cent in the first quarter. Denmark and Finland benefit from our specialisation Proffice Denmark continued in the black for the fifth consecutive quarter. Proffice showed growth in Finland despite a tough economic climate, which is the result of the success of our specialist company, Proffice Aviation. Proffice Aviation s establishment in Denmark and Finland will continue to contribute to increased growth and a stronger market position. Cautious optimism There are obviously many questions remaining over where the economy is headed. During the quarter, the market in Sweden stabilised and we see some signs of increased activity. We are generating positive earnings in a continued weak economic climate, largely thanks to our action plan. With cost-consciousness, internal efficiency, and our proven high customer satisfaction, we will continue to be profitable even in the current business climate. Whatever the state of the economy, our competence, flexibility, and agility will become increasingly important in the labour market. The lower level of activity in the market affects our earnings, mainly in the form of increased guaranteed wage expenses and increased price pressure. EBITA for the quarter reached SEK 22 million (51), corresponding to a 2.8 per cent (5.5) EBITA margin. The positive result is a direct effect of the action plan, which was quickly initiated when the market weakened in autumn Despite the cautious business climate, we continued to generate new business during the period, with Eniro, the Swedish Association of Local Authorities And Regions, and others. Growth in Norway despite fewer work days Even comparing with a strong quarter last year, Norway s revenue increased 1 per cent in local currency in the first quarter. Norway is also being affected by the unstable world economy now. Tougher economic conditions and increased uncertainty among customers with the introduction of the socalled Vikarbyrå Directive *) impacted our operations in Norway during the first quarter. The EBITA margin for the quarter stood at 1.2 per cent (1.6) Our growth ambitions in Norway continue. The goal is to further strengthen our market position and continue the trend of increased market share. During the first quarter we signed and improved several important agreements, including one with HINAS that covers all regional health authorities in Norway and concerns hiring specialist physicians for Norwegian hospitals. Lars Kry President and CEO *) The Vikarbyrå Directive originates in the EU Staffing Directive. Entails that temporary workers have the same basic working and employment conditions as if they had been hired directly by the company to which they are subcontracted. 3

4 Key events First quarter Proffice Care renewed agreement with HINAS. HINAS Helseføretakenes Innkjopsservice renewed its trust in Proffice Care AS by signing a new framework agreement. The agreement governs hiring specialists for Norwegian hospitals throughout the country. The new agreement took effect 1 February 2013 and is valid for two years with the option of a two-year extension. Annika Nordlander appointed new sales director for Proffice Nordic Sales. Annika is a cofounder of Dfind IT and she also served as its CEO for four years. She took up her new post 25 March, succeeding Carina Björkefors. Eniro choosed Proffice as Nordic partner. Proffice was contracted to manage Eniro s recruitment of sales reps and customer service staff in Sweden, Norway, and Denmark. The agreement runs for two years. After end of quarter Changes to Proffice s Board at the AGM. Christer Hägglund and Katrina Mellström resigned as board members. Lars Johansson and Susanna Marcus were elected new members of the Board of Directors of Proffice AB (publ) at the 2013 AGM. Proffice Aviation continued its expansion and gets established in the Danish market. The operation will involve about 100 cabin crew employees. Dfind Finance was named Recruiting Company of the Year. After just three years in business, CFO World magazine awarded Dfind Finance with its distinguished Recruiting Company of the Year award. More than 400 CFOs and finance managers answered which supplier they prefer most. SKL Kommentus Central Purchasing Organisation (SKI) choosed Proffice as staffing partner. SKI awarded Proffice a framework agreement for supplying staffing services. The framework agreement runs until the end of November 2014 with the option of a two-year extension. Proffice finished eighth in terms of proportion of women holding senior positions in Swedish listed companies. This information was published in the 2013 Allbright Report, which is a gauge of gender equality in the Swedish economy. 4

5 Overview Group 5

6 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q1 revenue and operating profit Consolidated revenue for Q1 totalled SEK 1,062 million (1,200), a 12 per cent decline compared year-on-year. The decrease is mainly attributable to continued reduced demand in the Staffing operating area in Sweden. Consolidated operating profit for Q1 totalled SEK 10 million (40). The operating margin was 0.9 per cent (3.3) for the quarter. Operating profit was impacted by calendar effects in Q1. Due to the current economic situation, particularly in Sweden, demand continued to decrease in Q1, resulting in increased expenses for guaranteed wages. Increased price pressure also affected the quarter s operating profit. The operating margin in Sweden declined to 2.8 per cent (5.5) during the quarter. Proffice sees a continued weak market with low demand, as well as the burden of high guaranteed wage expenses. The Group will continue to be cost-conscious and focus on internal efficiency in order to generate profit. SEK million Revenue and operating margin Revenue Operating margin % 6,0 5,0 4,0 3,0 2,0 1,0 0,0-1,0-2,0 The negative calendar effects for Q1 2013, together with continued cutbacks in the Swedish labour market, mean reduced demand for staffing services and increased expenses for guaranteed wages for the quarter. In Q1, Sweden had two fewer work days than last year and Norway had four fewer work days than last year, which also affected results for the quarter. For the rolling twelve-month period as per 31 Mar 2013, revenue totalled SEK 4,738 million and operating profit totalled SEK 81 million. % 6,0 5,0 4,0 3,0 2,0 1,0 0,0-1,0-2,0 Operating margin and number of work days Num. of work days Financial position Num. of work days Consolidated equity at the end of the quarter totalled SEK 508 million (538) and the equity/assets ratio was 30.7 per cent (29.0). Liquidity and cash flow Operating margin Cash and cash equivalents at the balance sheet date totalled SEK 53 million (47). Unappropriated liquid assets totalled SEK 158 million (252), including unused credit undertakings. SEK million Operating profit Cash flow from operating activities in Q1 improved yearon-year and totalled SEK 44 million (-51), of which change in working capital totalled SEK 50 million (-59). This is a result of more efficient processes. The implementation of a new enterprise resource planning (ERP) system in Sweden in 2012 had a negative impact on cash flow, particularly in Q1 and Q2. Cash flow recovered during Q3 and Q4 of the same year. Calendar effects Proffice s revenue and earnings are affected by seasonal fluctuations due to the number of work days. Normally, Q1 and Q2 are weaker than the rest of the year due to fewer work days. 6

7 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Consolidated liquidity and cash flow in Q1 was impacted by a cash payment of SEK 159 million for the remaining 49 per cent of shares in Dfind AB, which was acquired in February SEK 22 million was paid as a dividend liability to Dfind AB s minority shareholders. During the quarter, an additional consideration of SEK 5 million was paid for the acquisition of Komet. During the quarter, SEK 4 million was invested in noncurrent assets, of which SEK 3 million was for the ERP system and SEK 1 million for equipment. Group borrowings increased by SEK 106 million during the quarter. In Q1, the Group entered into an agreement on long-term financing with a maturity of 36 months. SEK million Liquidity SEK million Taxes Consolidated tax expense for the quarter totalled SEK -3 million (-11), representing an effective tax rate of 20.5 per cent (30.3). 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 Cash flow from operating activities The average number of full-time employees (FTEs) in the Group was 7,393 (8,139), a decrease of 746 FTEs compared year-on-year. Cash and cash equivalents Unappropriated liquid assets 7

8 Market development 8

9 Breakdown by country revenue and operating profit/loss Proffice s operations are organised and monitored by the countries in which the Group operates: Sweden, Norway, Finland, and Denmark. Internal pricing between operating segments is based on market-based conditions. Q1 Change Full year SEK million quarter 2012 Revenue Sweden % 3,679 Norway % 1,110 Finland % 68 Denmark 6 6 0% 19 Total 1,062 1,200-12% 4,876 Other operating income Sweden Norway Total Operating profit/loss Sweden % 129 Norway % 36 Finland 0 0 0% -4 Denmark 0 0 0% 0 Group-wide % -51 Total % 110 Group-wide The Parent Company s operation is included in the Group-wide item. Breakdown by country Q1 revenue Sweden 74 % Norway 23 % Finland 2 % Denmark 1 % 9

10 Revenue by operating area Within each country, Proffice s operations are divided into the operating areas Staffing, Recruitment, and Outplacement. Staffing is the basis of the 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. Q1 Change Full year SEK million quarter 2012 Revenue Staffing 989 1,128-12% 4,611 Recruitment % 183 Outplacement % 82 Total 1,062 1,200-12% 4,876 Breakdown by country Q1 revenue by operating area SEK million Staffing Recruitment Outplacement Total Revenue Sweden Norway Finland Denmark Total ,062 Breakdown by operating area Q1 revenue Staffing 93% Recruitment 4% Outplacement 3% Q1 Group-wide, Staffing decreased 12 per cent year-onyear. The Staffing decrease is primarily attributable to reduced demand in Sweden due to cutbacks in the Swedish labour markets. During Q1, sales in the Outplacement area increased 33 per cent compared year-on-year. Percentage of consolidated revenue in Q1: Staffing 93 per cent (94), Recruitment 4 per cent (4), Outplacement 3 per cent (2). 10

11 Breakdown by business area Staffing Proffice s largest operating area is Staffing, which is divided into six business areas: Office & Customer Service, Industry & Logistics, Finance, IT, Care, and Life Science. Q1 Change Full year SEK million quarter 2012 Revenue Office & Customer Service % 1,554 Industry & Logistics % 1,728 Finance % 365 IT % 491 Care % 342 Life Science % 131 Total 989 1,128-12% 4,611 Breakdown by business area Q1 revenue from Staffing Office & Customer Service 36% Industry & Logistics 33% Finance 8% IT 12% Care 8% Life Science 3% Q1 The continued uncertain economic situation affected demand in all business areas. 11

12 Q Q Q Q Q Q Q Q Sweden Revenue by operating area Q1 Change Full year SEK million quarter 2012 Revenue Staffing % 3,455 Recruitment % 145 Outplacement % 79 Total % 3,679 Revenue by business area from Staffing SEK million Office & Customer service Industry & Logistics Finance IT Care Life Science Q1 In Sweden, Q1 revenue decreased 15 per cent to SEK 790 million (930) compared year-on-year. The uncertain economic situation in Sweden led to reduced demand, primarily in the Staffing operating area. The Recruitment operating area was not affected as strongly, with revenue declining only 3 per cent compared year-onyear. The Outplacement operating area increased 35 per cent. Proffice s operations in Sweden stood for 74 per cent (78) of Group revenue in Q1. Industry & Logistics and Office & Customer Service, the two largest business areas in Sweden, decreased their revenue by 15 and 24 per cent, respectively, compared year-on-year. Operating profit in Sweden for Q1 totalled SEK 22 million (51). Operating profit and operating margin were affected by the fact that there were two fewer work days than in Q Continued cuts by customers that led to reduced demand affected the quarter by increasing expenses for guaranteed wages, among others. Increased price pressure also affected the quarter s operating profit. The operating margin decreased to 2.8 per cent (5.5) in Q1. Proffice sees a continued weak market with low demand, as well as the burden of high guaranteed wage expenses. The Group will continue to be cost-conscious and focus on internal efficiency in order to generate profit. 12

13 Q Q Q Q Q Q Q Q Norway Revenue by operating area Q1 Change Full year SEK million quarter 2012 Revenue Staffing % 1,079 Recruitment % 28 Outplacement 1 1 0% 3 Total % 1,110 Revenue by business area from Staffing SEK million Office & Customer service Industry & Logistics Finance IT Care Q1 Revenue declined 1 per cent to SEK 242 million (244) in Q1, compared year-on-year. Adjusted for currency effects, revenue rose by NOK 2 million which is 1 per cent increased. Increased uncertainty by customers is partly due to Norway s adoption of the Vikarbyrå Directive on 1 January The Vikarbyrå Directive originates from the EU Staffing Directive. In Q1, Norway had four fewer work days than last year, which significantly affected results for the quarter. Operating profit totalled SEK 3 million (4). The operating margin declined to 1.2 per cent (1.6) in the period. The operating profit in local currency amounted to NOK 3 million (3). The Staffing operating area constitutes 98 per cent (96) of Norway s revenue. In Staffing in Norway, Office & Customer Service is the largest business area, constituting 45 per cent of total revenue for the operating segment. 13

14 Q Q Q Q Q Q Q Q Finland Revenue by operating area Q1 Change Full year SEK million quarter 2012 Revenue Staffing % 62 Recruitment % 6 Outplacement Total % 68 Revenue by business area from Staffing SEK million Office & Customer service Industry & Logistics Finance Q1 Revenue in Finland in Q1 totalled SEK 24 million (20), which is a 20 per cent increase compared year-on-year. Operating profit for Q1 totalled SEK 0 million (0). Proffice Aviation was established in Finland in Q1. The operation comprise around 100 cabin personnel. Proffice Aviation s establishment in Finland will continue to contribute to increased growth and a stronger market position. 14

15 Q Q Q Q Q Q Q Q Denmark Revenue by operating area Q1 Change Full year SEK million quarter 2012 Revenue Staffing 5 5 0% 15 Recruitment 1 1 0% 4 Outplacement Total 6 6 0% 19 Revenue by business area from Staffing SEK million Office & Customer service Care Q1 Revenue totalled SEK 6 million (6) in Q1. Denmark achieved an operating profit of SEK 0 million (0). Proffice Aviation continued its expansion and becomes established in the Danish market. The operation will involve about 100 cabin crew employees. Proffice Aviation s establishment in Denmark will continue to contribute to increased growth and a stronger market position. The Care business area was discontinued in Denmark in

16 Other disclosures The Proffice share The number of shares at 31 March 2013 stood at 68,677,773, of which 64,677,773 are class B shares. The Proffice share is listed on the NASDAQ OMX Nordic Exchange Stockholm, Mid Cap. At Proffice's AGM on 23 April 2013, the Board was authorised to make decisions on acquisition and transfer of company-owned shares. No shares have been acquired since the 2013 AGM. Q1 Full year Number of shares at end of period 68,677,773 68,677,773 68,677,773 Average number of shares, basic 68,677,773 68,677,773 68,677,773 Average number of shares, diluted 68,677,773 68,677,773 68,677,773 Transactions with related companies The nature of transactions with related companies is unchanged in Q1 as compared to previous periods. Transactions with related companies are disclosed in the 2012 Annual Report, Note 19 (p. 43). Besides the usual transactions between Group companies, there were no transactions with related companies that materially affected the Group s or Parent Company s position and earnings during the quarter. 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 2012 Annual Report, Note 2 (pp ) and Note 3 (p. 31). Apart from the risks described there, no other significant risks were deemed to have emerged. Acquisitions No acquisitions were made in Q Parent Company Parent Company operations consist of managing joint functions such as Finance, HR, IT, Marketing, Facilities Management, and Communication for Group companies. The Parent Company s operating loss totalled SEK -15 million (-15) for the quarter. Loss after financial items totalled SEK -7 million (21). Financial items in Q were impacted by dividends from Dfind AB, a jointly-owned subsidiary at the time. Expenditures on non-current assets totalled SEK 4 million (6) during the quarter, of which SEK 3 million (4) was for the ERP system and SEK 1 million (2) for equipment. Unappropriated liquid assets totalled SEK 52 million (218) at the end of the quarter, and included borrowing facilities of SEK 100 million (205). In Q the Parent Company s borrowing facilities included transferred accounts receivables from Proffice Sverige AB. As of Q2 2012, short-term borrowing of accounts receivables is done directly from subsidiary Proffice Sverige AB. Estimates and assessments Preparation of the interim report requires company management to make assessments and estimates, and to make assumptions that affect application of the accounting policies and the recognised amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates and assessments. The critical assessments and sources of uncertainty in estimates are the same as in the most recent Annual Report. 16

17 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 2013 accounting policies New or revised IFRS standards and interpretive statements from the IFRS Interpretations Committee 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, 23 May 2013 Proffice AB (publ) Lars Kry President and CEO 17

18 Q1 figures 18

19 Consolidated statement of earnings and other comprehensive income, condensed Q1 Full year SEK million Revenue 1,062 1,200 4,876 Other operating income Operating expenses Employee expenses ,002-4,165 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 Net profit Other comprehensive income Items that have been transferred or can be transferred to net profit Translation differences in foreign subsidiaries for the period Items that cannot be transferred to net profit Other comprehensive income for the period Total comprehensive income for the period Net profit attributable to: Parent Company shareholders Non-controlling interests Net profit Comprehensive income for the period attributable to: Parent Company shareholders Non-controlling interests Comprehensive income for the period Basic earnings per share, SEK Diluted earnings per share, SEK

20 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 non-current assets Non-current receivables Deferred tax assets Current receivables 947 1,127 1,031 Cash and cash equivalents Total assets 1,654 1,852 1,795 Equity and liabilities Equity Deferred tax liability Interest-bearing non-current liabilities Interest-bearing current liabilities Non-interest-bearing current liabilities 904 1, Total equity and liabilities 1,654 1,852 1,795 Pledged assets Contingent liabilities The carrying amount is considered to represent a reasonable estimate of fair value for all financial assets and financial liabilities. Key ratios quarterly summary Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Group Revenue, SEK million 1,182 1,208 1,284 1,200 1,295 1,182 1,199 1,062 Operating profit/loss, SEK million Operating margin, per cent Profit margin, per cent Cash flow from operating activities, SEK million Cash flow from operating activities per share, SEK Basic equity per share, SEK Return on equity, per cent Net debt, SEK million Equity/assets ratio, per cent Number of work days

21 Consolidated statement of changes in equity, condensed Other contributed capital Retained earnings including profit/loss for the year Total attributable to Parent Company shareholders Noncontrolling interests Share Total SEK million capital 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 Acquisition of non-controlling interests 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 interests Other Dividend Transactions with shareholders for the period Equity, 31 March

22 Consolidated statement of cash flow, condensed Q1 Full year SEK million Operating activities Profit after financial items Adjustment for non-cash items Reversed depreciation and write-downs Deviation between actual and estimated additional consideration 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 Obtained amortisation of loans receivable 1-2 Cash flow from investing activities Financing activities Dividend Loans raised Loan repayment Cash flow from financing activities Cash flow for the period Cash and cash equivalents at start of period Exchange-rate difference in cash and cash equivalents Cash and cash equivalents at end of period

23 Income statement for Parent Company, condensed Q1 Full year SEK million Revenue Operating expenses Employee expenses Other external expenses Depreciation and amortisation of tangible and intangible assets Operating loss Earnings from financial items Earnings from shares and participating interests in Group companies Impairment of 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 Net profit/loss Statement of earnings and other comprehensive income for Parent Company, condensed Q1 Full year SEK million Net profit/loss Other comprehensive income Items that have been transferred or can be transferred to net profit/loss Items that cannot be transferred to net profit/loss Other comprehensive income for the period Comprehensive income for the period

24 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 1,016 1,500 1,030 Equity and liabilities Equity Untaxed reserves Interest-bearing non-current liabilities Interest-bearing current liabilities Non-interest-bearing current liabilities Total equity and liabilities 1,016 1,500 1,030 Pledged assets Contingent liabilities The carrying amount is considered to represent a reasonable estimate of fair value for all financial assets and financial liabilities. 24

25 About Proffice Proffice in brief 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 90 offices in Sweden, Norway, Finland, and Denmark Proffice negotiates a new job every four minutes Proffice originated in Snabbstenografen, founded in 1960 The Proffice share is listed on the NASDAQ OMX Nordic Exchange Stockholm, Mid Cap 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 passionate, attentive, solutionoriented 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 Temporary Staffing, Recruitment, and Outplacement operating segments have reversed economic cycles. This provides more balanced revenue and earnings over time Specialisation & Innovation Increased specialisation results in more satisfied customers and higher margins 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 Business model STAFFING We give our customers the right expertise and create effective solutions that increase mobility. RECRUITMENT Finding talented employees is difficult. Proffice helps you find your next star. OUTPLACEMENT Proffice offers support and strategy for individuals and companies in change. Value drivers Proffice s operation is controlled and influenced by these market trends: Globalisation and international competition Increased migration of the labour force between countries Shorter production cycles Technological developments that raise competence requirements Many people retiring at the same time Declining influx of young people entering the job market Increasing competition for talent 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 competence management increases. 25

26 Other information Definitions of key ratios Number of work days Total number of work days in Sweden, less Saturday, Sunday, and public holidays, in accordance with salaried employee contracts 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 revenue Equity per share Equity divided by number of basic shares at end of period Cash flow from operating activities per share Cash flow from operating activities divided by number of basic shares at end of period Average number of employees Total hours worked during the period divided by normal hours worked for a full-time employee Net debt Interest-bearing liabilities less cash and cash equivalents, including short-term investments Earnings per share Profit/loss after tax attributable to Parent Company shareholders divided by average number of basic and diluted shares Return on equity Profit/loss after tax for the last 12 months as a percentage of average equity for the last 12 months Operating margin Operating profit/loss as a percentage of revenue Equity/assets ratio Equity as a percentage of the balance sheet total Profit margin Earnings after financial income as a percentage of revenue Company/Industry-specific glossary Staffing Directive A European Union directive. Entails that temporary workers have the same basic working and employment conditions as if they had been hired directly by the company to which they are subcontracted. The Norwegian Vikarbyrå Directive originates from the EU Staffing Directive Outplacement Job coaches provide support and assistance in the transition process from one job to another Staffing Personnel with various specific skills who are employed by Proffice but can be subcontracted for short or extended periods by other companies Recruitment/Recruitment process Process for hiring the persons a company needs to ensure qualified employees. Needs analyses, searches, interviews, tests, and follow-ups are included in the process. 26

27 If you have questions about this interim report, please contact: Lars Kry, President and CEO, telephone , Benno Eliasson, CFO, telephone , benno.eliasson@proffice.com 2013 financial information Interim report, January-June 2013: 21 August 2013, 8 am Interim report, January-September 2013: 21 November 2013, 8 am Year-end report 2013: 20 February 2014, 8 am The information in this report is such that Proffice AB (publ) is required to publish it pursuant to the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was released for publication on 23 May at 8 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. All amounts in this interim report are stated in Swedish krona, rounded to the nearest million. Rounding to SEK million may mean that the financial tables and figures do not always tally. 27

28 Administration and Office // Construction // Executive Recruitment and Interim Management Finance // Electrical, Telecommunications, and Technical Services // Engineering Aviation, Travel, and Tourism // Industry, Warehouse, and Logistics // IT // Customer Service Life Science // Media, Information, and Communication // Mining // Health Care // Student Staffing PROFFICE AB (PUBL) Regeringsgatan 65, Box 70368, SE Stockholm, Sweden, Telephone: , Fax info@proffice.com 28