PRESIDENT AND CEO ERIK STRAND S COMMENTS ON POOLIA S THIRD QUARTER Press information, November 5 Poolia AB Poolia halved its rate of losses compared with the year-earlier period. The improved operating result shows that the Group s cost-cutting measures during the year have yielded results. Further measures will be necessary to reach profitability. Market and business climate The market showed no signs of recovery during the period. The demand situation was slightly better than in the second quarter, although still below our expectations since the third quarter is normally the most profitable period and has the most days of invoicing. We are focusing on continued productivity improvements. Poolia Professionals During the period, Poolia Professionals signed a major framework agreement with the public sector. The agreement became effective on October 1, 2003. The independent market research company Exido conducts bi-annual surveys targeting decision makers with staffing and recruitment responsibilities. The latest autumn survey revealed that Poolia Professionals Sweden had the most satisfied customers in the industry. Uniflex The Uniflex subsidiary posted an operating profit for the period, largely attributable to sales growth. Uniflex reported year-on-year sales growth of 22% during the period. For further information, please contact: Erik Strand, President and Chief Executive Officer (Tel: +46-8-555 650 60) Kjell-Åke Jägenstedt, Chief Financial Officer (Tel: +46-8-555 650 09) Poolia is a leading player in the market for professional staffing and is active in approximately 20 locations in Sweden, Norway, Denmark, Finland and Germany. Operations include the Temporary Staffing, Recruitment/Search and Outsourcing service areas. Poolia is divided into two brands Poolia Professionals and Uniflex. Poolia Professionals provides professional staffing in the Accounting, Bank & Finance, IT, Office, Human Resources, Payroll, Technical, Sales & Marketing, Legal, Healthcare and Life Science service segments. The subsidiary Uniflex is one of the largest companies in the generalist staffing segment in Sweden. Uniflex offers services in the receptionist, customer service, switchboard, call-center, industry & warehousing and facility services areas.
INTERIM REPORT FOR JANUARY 1 SEPTEMBER 30, 2003 Sales declined 3.5% to SEK 567.8 M (588.5). A loss of SEK 16.9 M was reported after tax (loss: 31.1). The loss per share was SEK 0.73 (loss: 1.35). A loss after financial items of SEK 16.1 M (loss: 40.2) and an operating loss of SEK 25.3 M (loss: 51.9) were reported. The Group s operating loss for the third quarter was a SEK 1.2 M improvement compared with the third quarter of 2002. Uniflex reported an operating profit for the third quarter. Sales Sales declined 3.5% to SEK 567.8 M (588.5). Sales from operations outside Sweden amounted to SEK 106.0 M (101.6). Sales related to the operations of the subsidiary Uniflex AB amounted to SEK 127.5 M (97.2). Temporary Staffing continues to be the predominant service area. Accounting is the largest occupational segment in absolute terms. Sales were distributed as follows by service area: Jan - Sep Jan - Sep % change % share % share SEK M 2003 2002 2003 2002 Temporary Staffing 531.7 551.7-3.6 94 94 Recruitment 22.3 24.1-7.6 4 4 Outsourcing 13.8 12.7 8.7 2 2 Total 567.8 588.5-3.5 100 100 Earnings The Group reported a loss of SEK 16.1 M after financial items (loss: 40.2). The operating loss amounted to SEK 25.3 M (loss: 51.9). The improvement in operating result was attributable to cost savings. Earnings during the third quarter were a SEK 1.2 M improvement on the corresponding period of the preceding year. Poolia Professionals Sweden incurred costs of SEK 2.2 M related to the change of President. Cost-saving measures compensated for excess consultant capacity and the drop in sales. Uniflex reported an operating profit for the quarter, which was primarily attributable to sales growth. Earnings in the other Nordic countries continue to improve as a result of implemented cost savings. German operations showed improved level of earnings due to stringent cost control. The Group s financial net for the period amounted to income of SEK 9.2 M (11.7).
Information about operating sectors and geographic regions Jul Sep Professionals Professionals Professionals Professionals Sweden Other Nordic Germany Total Uniflex Total countries SEK M 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 External sales 98.7 115.1 14.0 11.0 22.5 25.7 135.2 151.8 43.0 35.3 178.2 187.1 Operating profit/loss -3.2-1.1-1.1-2.4-1.9-3.3-6.2-6.8 1.4 0.8-4.8-6.0 Financial items 2.5 3.8 Loss after financial items -2.3-2.2 Tax -0.4 0 Net loss -2.7-2.2 Jan Sep Poolia Poolia Poolia Poolia Professionals Professionals Professionals Professionals Sweden Other Nordic Germany Total Uniflex Total countries MSEK 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 External sales 334.3 389.7 41.0 28.0 65.0 73.6 440.3 491.3 127.5 97.2 567.8 588.5 Operating loss -10.9-16.7-5.9-12.6-8.0-12.2-24.8-41.5-0.5-10.4-25.3-51.9 Financial items 9.2 11.7 Loss after financial items -16.1-40.2 Tax -0.8 9.1 Net loss -16.9-31.1 Liquidity and financing On September 30, 2003, the Group s liquid assets amounted to SEK 361.2 M (365.6). Cash flow from operations during the period was negative in an amount of SEK 6.1 M (negative: 27.1). The equity/assets ratio was 75.3% (76.3). Investments The Group s investments in fixed assets during the period amounted to SEK 2.5 M (42.4). Employees The average number of annual employees during the period was 1,844 (1,986). The total number of employees on September 30, 2003 was 2,312 (2,060), which included an increasing share of part-time employees. Parent Company The Parent Company engages in general corporate management, development and financial management activities. The Parent Company reported sales of SEK 5.0 M (4.8) and profit of SEK 7.4 M (13.2) after financial items.
The Swedish market According to SPUR (the Swedish Association of Temporary Work Businesses and Staffing Services), sales in the Swedish staffing services sector totaled SEK 4,372 M during the first half of 2003. The groups market share in the period was 7.3%. Poolia Professional s market share was 9.8%, an increase of 0.4 % compared to 2002. Uniflex s market share in the same period was 5.6 %. Condensed consolidated income statement Jan-Sep Jan-Sep Jul-Sep Jul-Sep Full year SEK M 2003 2002 2003 2002 2002 Net sales 567.8 588.5 178.2 187.1 792.5 Personnel costs -519.8-547.7-162.6-167.4-730.7 Other expenses -56.4-74.9-14.8-19.7-101.8 Profit/loss before depreciation -8.4-34.1 0.8 0.0-40.0 Depreciation of tangible fixed assets -8.9-10.2-2.9-3.5-13.8 Goodwill amortization -8.0-7.6-2.7-2.5-10.7 Operating loss -25.3-51.9-4.8-6.0-64.5 Financial items 9.2 11.7 2.5 3.8 15.7 Loss after financial items -16.1-40.2-2.3-2.2-48.8 Tax -0.8 9.1-0.4 0.0 4.5 Net loss for the period -16.9-31.1-2.7-2.2-44.3 Loss per share, SEK -0.73-1.35-0.12-0.10-1.93 Condensed consolidated balance sheet SEK M Sep 30, 2003 Sep 30, 2002 Dec 31, 2002 Assets Goodwill 114.8 122.3 124.8 Other fixed assets 13.0 23.5 20.6 Deferred tax receivable 12.1 9.3 11.6 Current receivables 154.1 176.5 144.0 Liquid assets 361.2 365.6 376.8 Total assets 655.2 697.2 677.8 Shareholders equity and liabilities Shareholders equity 493.2 531.8 519.2 Restructuring costs 1.7 4.2 3.5 Deferred tax liability 11.3 12.5 10.0 Long-term liabilities 6.4 3.5 5.1 Current liabilities 142.6 145.2 140.0 Total liabilities and shareholders equity 655.2 697.2 677.8 Assets pledged and contingent liabilities 1.6 1.1 1.6 Change in Group shareholders equity Jan-Sep Jan-Sep SEK M 2003 2002 Amounts on January 1 519.2 571.0 Option program 0.1 0.6 Dividend -5.7-5.7 Translation differences -3.5-3.0 Net loss for the period -16.9-31.1 Amounts on September 30 493.2 531.8
Condensed cash flow statement, Group Jan-Sep Jan-Sep Jul-Sep Full year SEK M 2003 2002 2003 2002 Cash flow from continuing operations -6.1-27.1-5.4-16.3 Cash flow from investing -2.3-44.9-0.1-46.1 Cash flow from financing -4.3-1.7 0.0-0.1 Cash flow during the period -12.7-73.7-5.5-62.5 Liquid assets on January 1 376.8 441.8 369.4 441.8 Exchange-rate differences in liquid assets -2.9-2.5-2.7-2.5 Liquid assets at period end 361.2 365.6 361.2 376.8 Key figures Jan-Sep Jan-Sep Jul-Sep Jul-Sep Full year SEK M 2003 2002 2003 2002 2002 Earnings per share before dilution, SEK* -0.62-1.25-0.44-0.49-1.93 Shareholders equity per share, before dilution, SEK* 21.67 23.20 21.67 23.20 22.58 Operating margin, % -4.5-8.8-2.7-3.2-8.1 Profit margin, % -2.8-6.8-1.3-1.2-6.2 Return on capital employed, % N/A N/A N/A N/A -8.7 Return on total capital, % N/A N/A N/A N/A -6.8 Equity/assets ratio, % 75.3 76.3 75.3 76.3 76.6 Share of risk-bearing capital, % 77.0 78.1 77.0 78.1 78.1 Number of employees, average for period 1 844 1 986 1 745 1 938 2 013 Revenues per employee, SEK thousands N/A N/A N/A N/A 394 Average number of shares, before dilution*(thousands) 22 999 22 999 22 999 22 999 22 999 Number of shares outstanding, before dilution* (thousands) 22 999 22 999 22 999 22 999 22 999 Earnings per share before dilution, SEK* -0.73-1.35-0.12-0.10-1.93 Shareholders equity per share, before dilution, SEK* 21.44 23.20 21.44 23.12 22.58 * The option programs outstanding do not give rise to dilution. When calculating key figures, the redemption of shares was not taken into account.
Significant events after period end: Payment was made in October for redemption of 4,565,744 Poolia shares corresponding to a total value of SEK 137.0 M. Erik Strand assumed office as the new President and CEO on October 1. Forthcoming financial reports February 20, 2004 Year-end Report, 2003 Stockholm, November 5, 2003 Erik Strand President and Chief Executive Officer Information This interim report has been prepared in accordance with the Financial Accounting Standards Council s Recommendation RR20 Interim Reporting. The accounting and calculation principles are unchanged compared with the 2002 Annual Report. From 2003 onwards, the Financial Accounting Standards Council s Recommendation RR25 on segment accounting is applicable. Poolia s primary segments are Professionals Sweden, Professionals Other Nordic Countries, Professionals Germany and Uniflex. This interim report has not been reviewed specifically by the Company s auditors. For further information, please contact: Erik Strand, President and Chief Executive Officer (Tel: +46-8-555 650 60) Kjell-Åke Jägenstedt, Chief Financial Officer (Tel: +46-8-555 650 09) Poolia AB (publ) Warfvinges väg 20 Box 30081 S-104 25 Stockholm Tel: +46-8-555 650 00 Fax: +46-8-555 650 01 Org.no: 556447-9912 www.poolia.se