Interim Report January-March 2013

PRESS
RELEASE
                  Stockholm 2013-05-23

Interim Report January-March 2013

Quick action led to positive results

Q1 2013 year-on-year comparison

  · Revenue decreased 12 per cent to SEK 1,062 million (1,200)
  · EBITA and operating profit declined 75 per cent to SEK 10 million (40)
  · EBITA and operating margin stood at 0.9 per cent (3.3)
  · Basic earnings per share totalled SEK 0.19 (0.35)
  · Cash flow from operating activities totalled SEK 44 million (-51)

Financial overview

                            Q1            Change   Full year
Group                       2013   2012   quarter  2012
Revenue, SEK million        1,062  1,200  -12%     4,876
Other operating income,     -      -      -        40
SEK million
EBITA, SEK million          10     40     -75%     110
EBITA margin, per cent      0.9    3.3    -        2.3
Operating profit, SEK       10     40     -75%     110
million
Operating margin, per cent  0.9    3.3    -        2.3
Profit after tax, SEK       13     26     -50%     78
million
Basic earnings per share,   0.19   0.35   -46%     1.11
SEK
Diluted earnings per        0.19   0.35   -46%     1.11
share, SEK
Cash flow from operating    44     -51    -        0
activities, SEK
million
Cash flow from operating    0.64   -0.74  -        0.00
activities per share, SEK
Basic equity per share,     7.40   7.83   -5%      7.46
SEK
Return on equity, per cent  12.6   25.2   -        12.9

Comments from Lars Kry, CEO

Quick action led to positive results
By reacting quickly and forcefully with an action plan in the autumn of 2012, we
can report a positive EBITA margin of 0.9 per cent (3.3) for the quarter. The
action plan is now concluded and has encumbered the quarter’s profit by SEK 5
million. Total cost savings are expected to reach SEK 220 million annually with
full effect by autumn.

Revenue for the quarter fell 12 per cent to SEK 1,062 million (1,200), primarily
due to lower demand and fewer working days in the first quarter in Sweden and
Norway. These factors are having a strong impact on revenue and EBITA.

Through more efficient processes, we have managed to improve our cash flow to
SEK 44 million (-51).

Positive results in Sweden despite continued weak market
The Swedish economy has been affected by the turmoil in Europe. Continued
relatively high lay-off statistics helped our outplacement business increase 33
per cent in the first quarter.

The lower level of activity in the market affects our earnings, mainly in the
form of increased guaranteed wage expenses and increased price pressure. EBITA
for the quarter reached SEK 22 million (51), corresponding to a 2.8 per cent
(5.5) EBITA margin. The positive result is a direct effect of the action plan,
which was quickly initiated when the market weakened in autumn 2012.

Despite the cautious business climate, we continued to generate new business
during the period, with Eniro, the Swedish Association of Local Authorities And
Regions, and others.

Growth in Norway despite fewer work days
Even comparing with a strong quarter last year, Norway’s revenue increased 1 per
cent in local currency in the first quarter.

Norway is also being affected by the unstable world economy now. Tougher
economic conditions and increased uncertainty among customers with the
introduction of the so-called Vikarbyrå Directive*) impacted our operations in
Norway during the first quarter. The EBITA margin for the quarter stood at 1.2
per cent (1.6) Our growth ambitions in Norway continue. The goal is to further
strengthen our market position and continue the trend of increased market share.

During the first quarter we signed and improved several important agreements,
including one with HINAS that covers all regional health authorities in Norway
and concerns hiring specialist physicians for Norwegian hospitals.

Denmark and Finland benefit from our specialisation
Proffice Denmark continued in the black for the fifth consecutive quarter.
Proffice showed growth in Finland despite a tough economic climate, which is the
result of the success of our specialist company, Proffice Aviation. Proffice
Aviation’s establishment in Denmark and Finland will continue to contribute to
increased growth and a stronger market position.

Cautious optimism
There are obviously many questions remaining over where the economy is headed.
During the quarter, the market in Sweden stabilised and we see some signs of
increased activity. We are generating positive earnings in a continued weak
economic climate, largely thanks to our action plan. With cost-consciousness,
internal efficiency, and our proven high customer satisfaction, we will continue
to be profitable – even in the current business climate.

Whatever the state of the economy, our competence, flexibility, and agility will
become increasingly important in the labour market.

Lars Kry
President and CEO

*) The Vikarbyrå Directive originates in the EU Staffing Directive. Entails that
temporary workers have the same basic working and employment conditions as if
they had been hired directly by the company to which they are subcontracted.

If you have questions about this interim report, please contact:

Lars Kry, President and CEO, telephone +46 8787 17 00, lars.kry@proffice.com
Benno Eliasson, CFO, telephone +46 8 787 17 00, benno.eliasson@proffice.com

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

Proffice is the specialised flexible staffing company with more than 10,000
employees in the Nordic region. We provide temporary staffing, recruitment
services, and outplacement. Proffice is listed on the NASDAQ OMX 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 23 may 2013 at 8 am CET.