Interim Report January September 2012

Transcription

1 Interim Report January September 2012 Lars Kry, President and CEO Magnus Uvhagen, acting CFO 21 November 2012 This presentation was prepared in Swedish and translated into English. In the event of any discreptancies between the Swedish version and the translation, the former shall have precedence. 1

2 Agenda Report in brief Highlights Financial development Strategy going forward 2

3 Report in brief 3

4 Introductory comments Q Positive start of Q3, followed by increased uncertainty in the market. Tangible actions in Q2 improved cash flow and stabilised liquidity in Q3. Turnover in Q3 declined 2% to SEK 1,182 million (1,208). Decreasing demand resulted in higher adjustment costs due to higher costs for guarantee wages. Continued implementation of ERP system during Q4 and Growth continued in Norway. After end of quarter: Proffice initiated an action plan to lower annual administration costs by SEK 250 million. 4

5 Q in brief 3rd quarter YTD Full year Change quarter Revenue, SEK million 1,182 1,208 3,677 3,486 4,770-2% EBITA, SEK million % EBITA, per cent Profit after tax, SEK million % Basic earnings per share, SEK % Cash flow from operating activities, SEK million Top-line -2% EBITA for Q3 down -54% compared year-on-year Costs related to implementation of new ERP system in Sweden affected EBITA negatively Concrete actions and more aligned processes over the period resulted in good cash flows 5

6 Highlights

7 Key events Q Contracts with new customers including the Swedish Public Employment Service (Arbetsförmedlingen), Swerock and Bauhaus in Sweden. Launch of Dfind Engineering AS in Norway. Benno Eliasson named new CFO of Proffice, starting on 1 December. Significant events after Q The action plan was initiated. Proffice entered a partnership with Newsec to form a staffing pool for the real estate industry. Proffice Aviation was established in Finland. New customer agreements with PostNord, Swedish National Board of Health and Welfare (Socialstyrelsen) and others. Appointed by AstraZeneca as its Managed Service Provider for all staffing services for AstraZeneca's operations in Sweden 7

8 Balanced products Staffing Sales, Group: -2% Sales, Sweden: -2% Recruitment Sales, Group: -3% Sales, Sweden: 0% Outplacement Sales, Group: -6% Sales, Sweden: -6% 8

9 Sales Q to Q SEK million EBITA, per cent ,0 8,0 6,0 4,0 2,0 0,0 Long-term EBITA goal 800-2, ,0 600 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q ,0 Staffing Recruitment Outplacement Proffice Uniflex Poolia Lernia 9

10 Illustration: Chris Sharp, FreeDigitalPhotos.net Sweden 10

11 12000 Redundancies recorded by the Swedish Public Employment Service, July-October July August September October Affected persons Source: The Swedish Public Employment Service 11

12 Swedish market growth SEK billion 6,00 5,00 4,00 3,00 2,00 1,00 0, Source: Swedish Staffing Agencies 12

13 Market share: Swedish market Q vs. Q % 25% 20% 15% 10% 5% Q Q % Source: Swedish Staffing Agencies 13

14 Sweden Q Sales declined 2% to SEK 894 million, compared with a record strong Q EBITA 2.8% (7.0%). New customer agreements with the Swedish Public Employment Service, Swerock, Bauhaus and others. Clear slowdown in the Swedish labour market in September. Increased number of redundancies. Increased price pressure. Increased costs due to the new ERP system. After end of quarter: The action plan was initiated. 14

15 Illustration: Chris Sharp, FreeDigitalPhotos.net Norway 15

16 Norwegian market growth NOK billion 4,00 3,50 3,00 2,50 2,00 1,50 1, Source: NHO Service 16

17 Norwegian market shares % 25% 20% 15% 10% Adecco Norge Manpower Proffice AS Jobzone ISS Personalhuset AS 5% 0% Source: NHO Service 17

18 Norway Q Sales up 2% to SEK 270 million (265). EBITA margin 3.3% (6.0), affected by investments into increased growth, including Dfind Engineering and Dfind Finance. Proffice won market share. Several new customer agreements and closer relationships with existing customers in manufacturing, pharmaceuticals, energy and the public sector. Labour market continued to be favourable. 18

19 Illustration: Chris Sharp, FreeDigitalPhotos.net Denmark & Finland 19

20 Denmark & Finland Q Denmark Turnover: SEK 4 million (6) EBITA: SEK 0 million (0) Continued focus on profitability and increased sales. Finland Turnover: SEK 14 million (28) EBITA: SEK -1 million (1) Macroeconomic instability had a significant impact on Finland growth trend weakened. After end of quarter: Proffice Aviation was established in Finland and employs about 100 cabin crew based in Helsinki. 20

21 Financial Development Magnus Uvhagen, acting CFO 21

22 Income statement Financial development 3rd quarter YTD Full year SEK million Revenue 1,182 1,208 3,677 3,486 4,770 Other operating income Operating costs Employee expenses -1,019-1,001-3,104-2,886-3,925 Other operating expenses Depreciation and amortisation of assets EBITA Write down of intangible assets Operating profit Profit after financial items Turnover declined by 2% Demand for Staffing in Sweden declined during the second half of the quarter. One less working day: 65 (66) Operating margin 2.6% (5.6) Significant increase in guaranteed wages in the second half of the quarter Temporarily increased costs in conjunction with ERP implementation Tax Profit for the period

23 Countries Financial development 3rd quarter YTD Full year SEK million Change quarter Revenue Sweden ,816 2,672 3,667-2% Norway % Finland % Denmark % Total 1,182 1,208 3,677 3,486 4,770-2% EBITA Sweden % Norway % Finland Denmark Other % Total % EBITA % Sweden Norway Finland Diminished growth in Sweden 2% Growth in Norway 2% Profit Sweden 2.8% (7.0%), lower than PY due to: increased costs for guaranteed wages in the latter part of the quarter implementation of new ERP system one less working day Profit Norway 3.3% (6.0%), lower than PY due to building-up new specialist areas Dfind Engineering and Dfind Finance One less working day Finland operational management was replaced after the end of the third quarter. Denmark remains stable Denmark Other Total

24 Operating areas Financial development 3rd quarter YTD Full year SEK million Change quarter Revenue Staffing 1,130 1,154 3,475 3,286 4,499-2% Recruitment % Outplacement % Total 1,182 1,208 3,677 3,486 4,770-2% All operating areas diminished growth Staffing decreased -2% Sweden -2% Norway 3% Recruitment decreased -3% Sweden 0% Norway -17% 24

25 Business area Staffing Financial development 3rd quarter YTD Full year SEK million Change quarter Revenue Office & Customer Service ,196 1,292 1,767-17% Industry & Logistics ,291 1,019 1,409 14% Finance % IT % Care % Life Science % Total 1,130 1,154 3,475 3,286 4,499-2% Continued specialization results in growth Office & Customer Service -17%, uncertainties about the ongoing recession affected demand I&L 14%, showed decreased growth during the latter part of the quarter IT 14% Care -16%, management change during year has not yet produced the desired effect 25

26 Balance sheet 30 Sep 30 Jun 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 1,159 1,300 1,163 Cash and cash equivalents Total assets 1,914 2,009 1,959 Equity and liabilities Equity Change, Net cash, due to ERP system (temporary delay in invoicing) Some recovery in Q3 has slowed due to the economic situation Change due to acquisition Dfind IT, dividend Interest-bearing current liabilities, Dfind IT and temporary short-term loan Temporary short-term loan was amortized with 45 Deferred tax liability Interest-bearing non-current liabilites Interest-bearing current liabilities Non-interest-bearing current liabilies 1,054 1,116 1,166 Total equity and liabilities 1,914 2,009 1,959 Pledged assets Contingent liabilites

27 Cash flow Financial development 2012 YTD Full year SEK million Q3 Q Operating activities Profit after financial items Adjustment 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 higher due to measures implemented to avoid delays in invoicing seen in earlier quarters Cash flow from financing activities was -47. Temporary short-term loan was amortized Change in working capital Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Cash flow for the period Cash and cash equivalents, at period s start Cash and cash equivalents, at period s end

28 Strategy Going Forward 28

29 Proffice s long-term goals Market goal Customer goal Personnel goal Financial goal Revenue growth - We aim to outgrow the market by 5 percentage points each year. Customer satisfaction 1. We aim to increase customer satisfaction by at least one point every year (long-term target of 75) % of our revenue shall come from small and mid-sized enterprises (SMEs). Satisfied managers index - We aim to increase manager satisfaction by at least one point every year (long-term target 68). Profitability - Profitability: we aim for an operating margin (EBITA) above 6%. Proffice declined 2% in Q3. 1. Satisfied Customer Index: currently 70.2 points target SME-KAM ratio: currently Satisfied Managers Index: currently 72, target 68 Currently 2012: 2.6% Sweden: 2.8% Norway 3.3% 29

30 Proffice s short-term focus Q2-Q Adjust cost base Increase sales 2 Finalize implementation of new ERP system 3 4 Cash flow < < Business plan, strategy

31 Halfway there now we re picking up speed 1 Adjust cost base Increase sales 2 Finalize implementation of new ERP system 31

32 Halfway there now we re picking up speed 1 Adjust cost base Increase sales Action plan SEK 250 million Double no. of sales visits Staff cuts Review other overhead costs Will impact earnings by MSEK, mainly in Q4 32

33 Proffice s strategies for achieving goals

34 The Nordic market room for growth Norway Market: 18,000 MSEK Sweden Market: 25,000 MSEK Finland Market: 9,000 MSEK Proffice 0.7% Proffice 7% Denmark Proffice 18.4% Market: 5,500 MSEK Proffice 0.1% 34

35 KEEP IMPROVING 35