Proffice Interim Report January-June 2015

Regulatory News:

PRESS RELEASE

Proffice (STO:PROEB)

Continued investments for profitable growth

Q2 2015

· Revenue amounted to SEK 1,045 million (1,078). Adjusted for the sale of Aviation, revenue for the continuing operation increased by 5 per cent.

· EBITA increased by 24 per cent to SEK 31 million (25). Other operating income affected EBITA by SEK 10 million, attributable to the disposal of Aviation.

· The EBITA margin totalled 3.0 per cent (2.3).

· Cash flow from operating activities totalled SEK -35 million (24).

· Basic earnings per share totalled SEK 0.38 (0.25).

YTD 2015

· Revenue amounted to SEK 2,054 million (2,074). Adjusted for the sale of Aviation, revenue for the continuing operation increased by 4 per cent.

· EBITA increased by 18 per cent to SEK 53 million (45). Other operating income affected EBITA by SEK 10 million, attributable to the disposal of Aviation.

· The EBITA margin totalled 2.6 per cent (2.2).

· Write-down of goodwill totalled SEK 36 million.

· Cash flow from operating activities totalled SEK -1 million (23).

· Basic earnings per share totalled SEK 0.07 (0.44).

Key events

Q2

New financial targets and revised strategy. The Board adopted new long-term financial targets related to profitability, growth, and capital structure. The Group’s strategy was also revised in conjunction with this.

AGM resolved to approve the Board’s dividend proposal. A dividend of SEK 0.90 per share (0.60) totalling SEK 61 million was approved.

Proffice Group sells Aviation area of competence. Aviation was sold to OSM Aviation AS. The sale affects all four Nordic countries as of 17 April 2015.

Acquisition of treasury shares. The Board agreed to acquire a maximum of 4,500,000 B shares up until the 2016 Annual General Meeting (AGM).

After end of quarter

Proffice Care in Norway concluded agreement with HINAS. Proffice Care AS will supply nurses to Norwegian hospitals. The client is HINAS, the purchasing organisation of Norwegian health companies. The agreement applies from 1 October 2015 and will run for two years with the possibility of a one plus one year extension.

Financial overview

Comments by Henrik Höjsgaard, CEO

Continued investments for profitable growth

Proffice continued to invest in its employees and systems support in Q2. The Group invested SEK 11 million in IT systems and the investments will continue throughout the year as planned. This means that Proffice will be able to utilise the Group’s collective resources more efficiently. Together with the new sales organisation, these initiatives will pave the way for a more efficient sales process.

The Aviation area of competence was sold in Q2. Revenue for continuing operations increased by five per cent, indicating good demand for the Group’s services.

Strong Swedish operation

The Swedish market remained favourable, as demonstrated by the revenue increase in the Industry & Logistics area of competence. All operating areas grew, and adjusted for the sale of Aviation, revenue increased by seven per cent in the Swedish operation during the quarter. Profitability is in focus and the performance of the Swedish operation continued to be positive, resulting in a better margin.

Weaker market in Other Nordic Countries

Norway’s macroeconomic situation has hit the staffing industry hard, leading to declines in staffing and recruitment, while outplacement activities increased. In order to better meet these challenges and strengthen our position in the Norwegian market, a new director was appointed in Q1. A new management team was appointed in Q2 just as the establishment of a new sales organisation was begun.

Happily, we were able to announce after the end of the quarter that Proffice Care was one of those chosen to sign agreements with the purchasing organisation of the Norwegian health companies (HINA) to supply nurses to Norwegian hospitals. Great emphasis was placed on quality, and our internal team together with our nurses and specialist nurses received high quality scores.

New financial targets for a more stable and consistently profitable Proffice

The Board took decisions on new long-term financial targets during the quarter. Strategies were revised in order to attain the new financial targets, where the main strategy is product leadership through skills specialisation. That this is the right path forward was particularly demonstrated by the Life Science area of competence, which grew by 37 percent during the quarter. It is important for customers and candidates to meet specialists who understand their challenges and circumstances.

The EBITA margin totalled 3 per cent during the quarter and the Group had good underlying growth. The strengthened sales organisation and investments in systems support have laid the foundation for Proffice to grow at least in pace with the market. The Board initiated a share buyback program, and treasury shares were bought back during the quarter in order to adjust the company’s capital structure to line up with its financial targets.

Continued investments ensure efficiency

By investing in a more efficient basic platform and a strong sales organisation, we are now creating the conditions for achieving our long-term financial targets and becoming the most successful staffing and recruitment company in the Nordic region.

Henrik Höjsgaard

President and CEO

This is a translation from Swedish. In the event of any discrepancies between the Swedish and the translation, the former shall have precedence.

Proffice Group is one of the Nordic region's largest specialists within staffing, recruitment and outplacement. Our commitment and service help people and companies to find solutions to develop. The Proffice Group consists of Proffice, Dfind and Antenn and it has around 10,000 employees. The Proffice share is listed on Nasdaq Stockholm, Mid Cap. www.proffice.com

Information in this interim report is such that Proffice AB (publ) is obligated to disclose it pursuant to the Swedish Securities Markets Act. The information was released for publication on 18 August 2015 at 8 am CET.

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