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Proffices interim report January September 2011

Proffice’s interim report January – September 2011

Profitability improves again July-September 2011 year-on-year

•           Proffice’s revenue continued upward during the third quarter, increasing by 18 per cent.

•           Proffice’s operating profit increased to SEK 68 million (42), representing an operating margin of 5.6 per cent (4.1)

•           Basic earnings per share improved to SEK 0.65 (0.32)

•           In Sweden, Proffice’s operating profit increased to SEK 64 million (45) and reached an operating margin of 7.1 per cent (6.2)

•           Proffice acquired Komet Holding AB during the period, thereby strengthening its offering in staffing with students and young professionals

January-September 2011 year-on-year

•           Proffice’s revenue grew 18 per cent and operating profit grew 72 per cent

•           Basic earnings per share improved to SEK 1.57 (0.74)

•           In Sweden, which accounts for more than three-quarters of consolidated sales, Proffice’s revenue increased 25 per cent and operating profit increased 49 per cent

After period’s end

•           Proffice expanded its collaboration with Sandvik

•           Proffice and ICA signed contract on manage business services

Financial overview

          July-September January-September

          2011     2010     2011     2010

Revenue, SEK million   1,208   1,028   3,486   2,959

Operating profit, SEK million     68         42         163       95

Operating margin, %     5.6       4.1       4.7       3.2

Profit after tax, SEK million       47         25         117       62

Basic earnings per share, SEK   0.65     0.32     1.57     0.74

Diluted earnings per share, SEK 0.65     0.32     1.57     0.74

Cash flows from operating activities, SEK million           51         22         28         -48

Basic equity per share, SEK     9.86     9.21     9.86     9.21

Return on equity, %       7.0       4.0       18.2     9.9

CEO comments

July-September 2011

Inquiries from our customers continue to increase, and the market for staffing services has never been greater. Proffice Group sales in the third quarter totalled SEK 1,208 million (1,028), an 18 per cent increase over the same quarter last year. Operating profit increased to SEK 68 million (42), representing an operating margin of 5.6 per cent (4.1) – an improvement of 37 per cent and our best quarter ever.

Sweden growing significantly with high profitability

In Sweden, sales totalled SEK 909 million (721), up 26 per cent from the same quarter last year. Operating profit totalled SEK 64 million (45), representing an operating margin of 7.1 per cent (6.2). It was the second quarter in a row with very good profitability. Our success in Sweden is largely attributable to the 26 per cent growth in Sweden’s largest operating segment: Temporary Staffing. The new specialist organisation continues to strengthen due to an attractive customer offer and a clear focus on sales.

Solid profitability in Norway

In Norway, operating profit totalled SEK 16 million (16), representing an operating margin of 6.0 per cent and sales of SEK 265 million (275). In local currency, sales increased 5.0 per cent. Our efforts to increase earnings are going as planned. We are already seeing positive effects from having the same specialist strategy and organisation as in our Swedish operation.

Denmark breaks even and Finland improves profitability

In Denmark, total sales decreased to SEK 6 million (7) and operating profit totalled SEK 0 million (-5). After sharp cost reductions and a major focus on profitability, third quarter numbers were in the black for the first time during a quarter in four years.

In Finland, sales increased to SEK 28 million (25), which is 12 per cent more than the same quarter last year. Operating profit totalled SEK 1 million (-2).

Specialisation and acquisitions for long-term growth

Dfind Finance, our specialist company that focuses on business administrators and executives, grew 59 per cent in September compared to the same month last year. This growth surpassed the market’s and is clear proof that our focus delivers results.

During the third quarter, Proffice acquired student staffing company Komet Holding AB in Sweden. The acquisition is in line with our strategy of increased specialisation and our plan for increased earnings and growth. Its integration into the Group is going well, and Komet remains a specialised unit with its own brand and a unique offering. The unit has the same organisation as the rest of the Proffice Group and is already contributing heavily to increased growth and profitability.

A stronger Proffice emerging

Our efforts last spring to establish long-term profitability and growth are beginning to bear fruit. Proffice is stronger than ever, and staffing services have never been so relevant and in demand among our customers. Our plan to build a more successful Proffice continues with new services, common, efficient processes, and a strong, distinct sales culture in all countries and companies. Through our financial strength and flexible organisation, we are able to manage movements in the market better than ever.

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