Interim report
January – March 2013
Lars Kry, President and CEO
Benno Eliasson, CFO
1
Agenda
Report in brief
Market and trends
Financial development
1
1
Introductory comments Q1-2013
Quick action led to positive earnings
Market continues to be tough, but cautiously optimistic
Action plan is completed
Improved cash flow
Outplacement business increased in Sweden
Agreements in Q1:
Dfind Finance
Recruitment
1
Q1 in brief
2013 2012 Change
quarter
2012
Revenue, SEK million 1,062 1,200 -12% 4,876
EBITA, SEK million 10 40 -75% 110
EBITA, per cent 0,9 3,3 - 2.3
Profit after tax, SEK million 13 26 -50% 78
Basic earnings per share, SEK 0.19 0.35 -46% 1.11 Cash flow from operating activities, SEK million 44 -51 - 0
1st Quarter Full Year
Less demand and fewer
workdays in Sweden
and Norway
A lower activity level on
the Swedish market
affects the result, mainly
through its downward
pressure on prices
Guaranteed wage
expenses
1
1
Purchasing Managers’ Index
30
35
40
45
50
55
60
65
70
Total index, adjusted for season
Total index, not adjusted for season
Source: Swedbank
1
Redundancy notices recorded by the Swedish
Public Employment Service, 2008-2013
3 638 2 318 4813 2398 4065 7989 19907 17960 17049 15802 13019 8731 9997 4412 5370 7634 5704 4746 6757 4644 3751 2968 1865 4811 3144 2609 3045 4644 2933 2646 4540 5666 6463 4838 6644 4974 3682 5175 3692 7329 10260 9868 5695 6745 3888 6570 5512
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
20 000
jan
-08
ma
r-0
8
ma
j-08
jul
-08
s
e
p
-0
8
no
v
-08
jan
-09
ma
r-0
9
ma
j-09
jul
-09
s
ep
-09
no
v
-09
jan
-10
ma
r-1
0
ma
j-10
jul
-10
s
ep
-10
no
v
-10
jan
-11
ma
r-1
1
ma
j-11
jul
-11
s
ep
-11
no
v
-11
jan
-12
ma
r-1
2
ma
j-12
jul
-12
s
ep
-12
no
v
-12
jan
-13
ma
r-1
3
Affected persons
1
Print ads from Proffice’s ad system
2011
2012
2013
Number
of ads
1
Market shares in Sweden 2011-2012
23.8% 17.4% 12.3% 7.5% 6.6% 21.3% 17.6% 12.2% 7.2% 6.4%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
Manpower
Proffice
Adecco
Uniflex Bemanning Lernia Bemanning
2011
2012
1
Market shares in Norway 2011-2012
24.7% 23.4% 7.0% 6.5% 4.4% 23.0% 22.3% 6.9% 6.6% 4.2%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
Adecco
Manpower
Jobzone
Proffice
ISS Personalhuset
2011
2012
1
Financial Development
1
Income statement
SEK million 2013 2012 2012
Revenue 1,062 1,200 4,876
Other operating income - - 40
Operating expenses
Employee expenses -909 -1,002 -4,165
Other operating expenses -140 -154 -625
Depreciation and amortisation of assets -3 -4 -16
EBITA 10 40 110
Operating profit 10 40 110
Profit after financial items 16 37 100
Tax -3 -11 -22
Profit for the period 13 26 78
1
Revenue and operating margin
-2
0
2
4
6
600
700
800
900
1000
1100
1200
1300
1400
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Revenue (MSEK)
Operating margin (%)
1
Countries
1st quarter Full year
SEK million 2013 2012 Change
quarter 2012 Revenue Sweden 790 930 -15% 3,679 Norway 242 244 -1% 1,110 Finland 24 20 20% 68 Denmark 6 6 0% 19 Total 1,062 1,200 -12% 4,876 EBITA Sweden 22 51 -57% 129 Norway 3 4 -25% 36 Finland 0 0 0% -4 Denmark 0 0 0% 0 Other -15 -15 0% -51 Total 10 40 -75% 110
EBITA, per cent
Sweden 2.8 5.5 - 3.5
Norway 1.2 1.6 - 3.2
Finland - - - -
1
Operating areas
SEK million 2013 2012 Change
quarter 2012 Revenue Staffing 989 1,128 -12% 4,611 Recruitment 45 51 -12% 183 Outplacement 28 21 33% 82 Total 1,062 1,200 -12% 4,876
1
Business area Staffing
SEK million 2013 2012 Change
quarter
2012
Revenue
Office & Customer Service 359 417 -14% 1,554
Industry & Logistics 322 363 -11% 1,728
Finance 81 99 -18% 365
IT 119 125 -5% 491
Care 78 86 -9% 342
Life Science 30 38 -21% 131
Total 989 1,128 -12% 4,611
1
Balance sheet
31 Mar 31 Mar
SEK million 2013 2012 2012
Assets
Intangible non-current assets 624 633 632
Property, plant, and equipment 12 18 13
Other investments held as non-current assets 1 1 1
Non-current receivables 1 4 2
Deferred tax assets 16 22 22
Current receivables 947 1,127 1,031
Cash and cash equivalents 53 47 94
Total assets 1,654 1,852 1,795
Equity and liabilities
Equity 508 538 512
Deferred tax liability 38 47 38
Interest-bearing non-current liabilities 83 8 8
Interest-bearing current liabilities 121 190 254
Non-interest-bearing current liabilities 904 1,069 983
Total equity and liabilities 1,654 1,852 1,795
Pledged assets 447 245 516
Contingent liabilities - - -
1
Cash flow from operating activities
44
-80
-60
-40
-20
0
20
40
60
80
100
120
SEK million
Q
2
20
11
Q
3
20
11
Q
4
20
11
Q
1
20
12
Q
2
20
12
Q
3
20
12
Q
4
20
12
Q
1
20
13
1
Cash flow from operating activities
16
44
5
-27
109
-59
-20
0
20
40
60
80
100
120
Profit after
financial items
Adjustment for
non-cash items
Tax paid
Decrease in
operating
receivables
Decrease in
operating
liabilities
SUM
SEK million
1
Days sales outstanding (DSO)
37
39
41
43
45
47
49
51
53
55
Q
2-20
11
Q
3-20
11
Q
4-20
11
Q
1-20
12
Q
2-20
12
Q
3-20
12
Q
4-20
12
Q
1-20
13
Number
of days
1
1
Looking ahead
Flexibility – a success factor for more and more employers
Im a g e s b y: S ta rt M il e s a n d Da vi d Ca sti ll o , A m b ra , F re e Di g ita lP h o to s.n e t,
Correct skillset – still in short supply
Companies are looking for temporary employees
We focus on expanding our customer base and increasing
customer satisfaction
1
Does your organisation need to recruit new
employees during the coming three months?
48%
52%
Source: Proffices arbetsmarknadsanalys – flexibilitet och matchning 2013 (performed by TNS Sifo)
1
28
50
18
3
0
10
20
30
40
50
60
We have little or no difficulty adapting
We have some difficulty adapting
We have somewhat large difficulty
adapting
We have significant difficulty adapting
%
Source: Proffices arbetsmarknadsanalys – flexibilitet och matchning 2013 (performed by TNS Sifo)
Swedish companies that
believe flexibility is a success
factor: 77%
Respondents that find it
difficult to adapt their
organisation to external
demands: 71%
Employers that feel an
increasing need to quickly
change the size and structure
of their workforce: 65%
1
Flexible employment options in demand
5
10
37
49
0
10
20
30
40
50
60
Other
Hiring from a staffing or other type of consulting
company
Short-term employment (temporary, project
employment or other temporary employment form)
Permanent employment
%
In your opinion, what is the best way to handle an increasing need for resources?
1
Lack of correct skillset blocks flexibility
How would you weight the following obstacles to quickly adapting the staffing of
your business?
19
16
13
15
10
6
4
24
26
26
22
19
20
13
29
30
35
31
36
37
29
17
20
16
24
26
25
35
11
8
9
9
9
13
19
0
10
20
30
40
50
60
70
80
90
100
Employment Protection Act
Inability to make decisions internally/by
management
Other rules and laws
Owners or board members
Difficulty to make correct, reliable business
forecasts
Difficulty retaining the correct skillset
Difficulty to find and retain the correct skillset
1 = Not at all important
2
3
4
5 = Very important
%
1
Focus areas 2013
Sales
Industrial & Logistics
Norway
Effectiveness
Sourcing
Annika Nordlander Nordic Sales Director
Proffice AB
Michael Gozzi Business Unit Director Proffice Industrial & Logistics
Stein André Haugerud Business Unit Director
Proffice Norge Ci Taylor Commercial Director Proffice AB Anna Lindqvist Sourcing Manager Proffice Adm & Customer Solutions
1
Demand
Margin
Costs
1