Ework Group — Interim / Quarterly Report 2016

Feb 17, 2017

Strong finish to a new record year

Fourth quarter 2016 compared to the corresponding period 2015

• • Net sales increased by 33% to SEK 2,320 M (1,741).
• • Operating profit up by 33% to SEK 29.3 M (22.0).
• • Order intake amounted to SEK 3,917 M (2,949) in the fourth quarter, a 33% increase.
• • Earnings per share after dilution rose to SEK 1.34 (0.88).
• • The number of consultants on assignment passed 7,000, peaking at 7,240.

Net sales and operating profit

Full year 2016 compared to full year 2015

• • Net sales increased by 25% to SEK 7,585 M (6,089).
• • Operating profit up by 19% to SEK 92.9 M (78.4).
• • Earnings per share after dilution increased by 21% to SEK 4.21 (3.48).
• • Demand was strong right through the period, with Ework estimating that it won market shares on a growing market.
• • Order intake for the full year was SEK 11,063 M (8,271), up by 34%.
• The Board of Directors has decided to propose a dividend of SEK 4.00 (3.25) per share to the AGM.

Quarterly order intake

CEO ZORAN COVIC

Strong finish to a new record year

When we set new targets for Ework's onward growth journey at the beginning of last year, we aimed high. We can now look back on a 2016 when we beat our targets, with continued high sales growth and increasing earnings per share. We also continued to invest in our future.

e've made good progress on

our way to building the new Ework, which will be Europe's biggest consultant provider by 2020. In the year, we took major actions in a number of busi-

ness-critical segments.

We advanced our market positioning and won market shares on all our markets. Our operations in Denmark and Norway clearly attained a new level, with yearly sales exceeding half a billion kronor in both markets, with good profitability. Our Polish start-up has been really successful, with the number of consultants on assignment in high growth.

Our ability to match consultants to assignments is one of our prime competitive edges, and the foundation of our growth. In the year, we invested in digitalising our matching process to streamline and enhance its quality. We also reinforced our organisation, making key appointments in marketing, sales and delivery. Our business development work has been intensive, and will continue in 2017.

We've achieved all this while growing net sales by 25%, and earnings per share by 21%. The fourth quarter concluded the year even more strongly, with sales and operating profit increasing by over 30%. Our order intake passed the SEK 10 and 11 billion milestones on an annualized basis for the first time.

The targets we're working towards are an average 20% yearly sales growth and an average 20% EPS growth in 2016-2020, and this year, we beat those targets.

The outlook for Ework is good for the current year and longer term. The market is really strong, and we think it will remain so through the year.

Zoran Covic, CEO Stockholm, Sweden, 17 February 2017.

A strong consulting market

Market

The Nordic consulting market remained very strong in the fourth quarter of the year. Demand was high, or very high, in the skills segments where Ework operates. Demand increased for Ework's consolidated role, and remained high for consultants for new assignments. Ework judges that it outgrew the consulting market, and thus continued to win market shares. Ework's demand indicators such as assignment enquiries and the orientation of indicated skill segments continued to increase year on year.

All Ework's geographical markets were strong, although this was less pronounced in Finland and the Norwegian private sector.

The Group's net sales

The Group's net sales for the fourth quarter 2016 were up by 33% to SEK 2,320 M (1,741). Net sales for the full year 2016 were 2016 were SEK 7,585 M (6,089), a 25% increase. All operating segments contributed to the growth in the fourth quarter and year. The Denmark, Norway and Finland operating segments increased their share of yearly sales to 18.6% (17.2).

The Group's profit

The Group's operating profit was SEK 29.3 M (22.0) for the fourth quarter 2016, a 33% increase on the corresponding quarter of the previous year. For the full year 2016, operating profit was SEK 92.9 M (78.4), up by 19%. The improvement in operating profit is due to sales growth, mainly by an increased number of new consultant appointments.

Operating profit increased in all segments, with the Norwegian operation contributing the highest profit growth in the quarter and full year. The profit performance of the Swedish operation was below the group average in percentage terms, mainly due to this business being more heavily charged by expenses for new appointments to ensure the group's continued growth.

The above comments apply to the quarter and full year.

Profit after financial items amounted to SEK 29.4 M (21.5) for the fourth quarter 2016, and SEK 94.2 M (77.9) for the 12 months of the year. Profit after tax was SEK 24.4 M (15.1) for the fourth quarter 2016, and SEK 73.9 M (59.7) for the full year 2016.

Comments on progress

The Group's order intake in the fourth quarter was SEK 3,917 M (2,949), the highest number ever.

For the full year, order intake was up by 34% to SEK 11,063 M (8,271). The number of consultants on assignment continued to grow, peaking in the quarter at 7,240 (5,490).

Sweden

The net sales of the Swedish operation increase by 28% in the fourth quarter to SEK 1,862 M (1,454). Operating profit rose by 10% to SEK 20.6 M (18.6). In full-year terms, sales were up by 22% to SEK 6,177,M (5,042). Operating profit increased to SEK 75.5 M (71.7), with the primary explanation for the sales increase being positive demand and Ework's strong market position. The technology consultants skills segment grew, representing a rising sales share.

The operations in Poland are currently reported in the Sweden segment. Ework is experiencing high client demand and delivered consultants for new assignments on several new accounts in the quarter.

Denmark

The progress of the Danish operation was positive right through the year, and concluded with especially robust sales gains in the fourth quarter. Net sales were up by 70% to SEK 165.2 M (97.3). Operating profit for the quarter increased to SEK 3.5 M (2.4). For the full year, sales were SEK 504 M (354), a 42% increase. Operating profit was SEK 8.8,M (7.4).

Consultants on assignment

Full year as a percentage of net sales

* Poland is reported under Sweden.

Norway

The net sales of the Norwegian operation rose by 68% in the fourth quarter to SEK 166.8 M (99.5). Operating profit for the period rose to SEK 3.7 M (1.2). Fullyear net sales were up by 40% to SEK 502.2 M (357.6). Operating profit was SEK 8.7 M (1.3). The positive progress of the Norwegian operation is due to healthy demand, mainly on existing client accounts, primarily in the public sector.

Finland

The Finnish operation achieved an improvement in the fourth quarter. Net sales rose by 39% to SEK 125.7 M (90.3). Operating profit/loss was SEK 1.4 M (-0.3). Rising net sales are mainly due to high demand on existing client accounts; the Finnish operation went from loss to profit. For the full year, net sales increased by 20% to SEK 402.1 M (335.6). Operating profit/loss was SEK 0.04 M (-2.0).

Financial position

The equity/assets ratio was 5.9% (6.2) as of 31 December 2016. The lower equity/assets ratio is due to higher working capital, resulting from higher sales compared to the previous year. Cash flow from operating activities in the fourth quarter was SEK 39.5 M (-7.6). For the full year, cash flow from operating activities was SEK 96.9 M (-88.5). Changes in working capital at different reporting dates are mainly due to all payments from clients and consultants being made at month-ends. Accordingly, a modest shift in payments made or received can have a significant effect on cash flow at a specific time. The Group's net interest-bearing assets were SEK 62.2 M (27.0) at the reporting date.

The company has a non-terminable revolving funding facility of SEK 70 M. Accounts receivable have been pledged as collateral for the facility.

Workforce

The average number of permanent employees of the Group in the fourth quarter was 219 (187) excluding consultants employed on a project basis. The average number of permanent employees for the full year was 213 (176) excluding consultants employed on a project basis. The growth of personnel remains lower than sales growth, due to the scalability of Ework's business and continuous work on streamlining operations. Consultants employed on a project basis on client assignments are included in the "cost of consultants on assignment" item under operating costs.

Parent Company

The Parent Company's net sales for the fourth quarter were SEK 1,846 M (1,449). Profit before financial items was SEK 78.2 M (20.2) and profit after tax was SEK 16.8 M (14.9).

Key performance data

SEK 000	October December 2016	October December 2015	Full year 2016	Full year 2015
Net sales	2,320,130	1,740,739	7,585,442	6,089,079
Operating profit, EBIT	29,301	21,979	92,947	78,405
Profit before tax	29,360	21,457	94,154	77,858
Profit for the period	22,998	15,053	72,514	59,667
Sales growth, %	33.3	25.3	24.6	29.2
Operating margin, EBIT, %	1.3	1.3	1.2	1.3
Profit margin, %	1.3	1.3	1.2	1.3
Return on equity, %	73.8	57.2	58.4	50.0
Total assets	2,328,965	1,797,943	2,328,965	1,797,943
Equity	137,345	112,212	137,345	112,212
Equity/assets ratio, %	5.8	6.2	5.8	6.2
Acid test ratio, %	107.8	111.0	107.8	111.0
Average number of employees	219	187	213	176
Net sales per employee	10,594	9,309	35,612	34,597
Key performance data per share
Earnings per share before dilution, SEK	1.34	0.88	4.22	3.49
Earnings per share after dilution, SEK	1.34	0.88	4.21	3.48
Equity per share before dilution, SEK	7.9	6.6	7.9	6.6
Equity per share after dilution, SEK	7.9	6.6	7.9	6.6
Cash flow from operating activities per share before dilution, SEK	2.30	-0.44	5.64	-5.18
Cash flow from operating activities per share after dilution, SEK	2.29	-0.44	5.63	-5.16
Number of shares outstanding at end of period before dilution (000)	17,188	17,085	17,188	17,085
Number of shares outstanding at end of period after dilution (000)	17,206	17,130	17,206	17,130
Average number of shares outstanding before dilution (000)	17,188	17,085	17,119	17,018
Average number of shares outstanding after dilution (000)	17,205	17,125	17,135	17,044

Shareholders

As of 31 December 2016	No. of shares	Votes and equity
Staffan Salén and family through company1	4,689,945	27.3%
Försäkringsaktiebolaget Avanza Pension	3,167,655	18.4%
Investment AB Öresund	2,022,759	11.8%
Veralda Investment Ltd	1,032,705	6.0%
Katarina Salén, private and through family company2	463,962	2.7%
PSG Micro Cap	410,261	2.4%
Patrik Salén and family through company3	397,000	2.3%
Jan Pettersson	349,000	2.0%
Claes Ruthberg	290,000	1.7%
Danica Pension	282,517	1.6%
Sub-total	13,105,804	76.3%
Other	4,081,771	23.7%
Total	17,187,575	100%

1 Salénia AB 2 Polhavet AB 3 Jippa Investment AB

The Ework share

The Parent Company's net sales for the full year were SEK 6,136 M (5,037). Profit before financial items was SEK 21.9 M (20.2) and profit after tax was SEK 16.8 M (14.9). The Parent Company's equity at the end of the period was SEK 122 M (111) and the equity/assets ratio was 6.3% (7.0). Otherwise, the above comments regarding the Group's financial position also apply to the Parent Company where appropriate.

Material risks and uncertainty factors

Ework's material business risks, for the Group and Parent Company, consist of reduced demand for consulting services, difficulties in attracting and retaining skilled staff, credit risks, and to a lesser extent, currency risks. The Company is not aware of any new material business risks in the forthcoming six months. For a more detailed review of material risks and uncertainty factors, please refer to Ework's Annual Report.

Subsequent events

No significant events have occurred after the end of the reporting period.

Outlook

Ework is retaining the financial targets set at the beginning of 2016 for the period 2016-2020: to achieve average annual sales growth of 20% and increase average earnings per share by 20% per year.

Ework thinks that a growing share of the workforce will operate as consultants on the labour market of the future. The market's long-term consolidation trend is expected to continue, which is expected to create good business opportunities for Ework. Ework enjoys a strong market position and competitive offering. Accordingly, Ework expects to keep outgrowing the underlying consultant market in its current geographical markets and skills segments. In addition, it anticipates business opportunities opening up in new geographical markets.

Ework expects demand on the Nordic consulting market to remain strong in 2017 and the consulting market as a whole to grow. In addition, new outsourcing deals may be possible.

Overall, Ework judges that it has good potential for the full year 2017 to continue to progress in line with its long-term targets.

Dividend

Based on its confidence in the company's future progress and the company's strong Balance Sheet, the Board of Directors is proposing a dividend of SEK 4.00 (3.25) to the AGM, totalling SEK 68.8 M (51.3), corresponding to 95% of profit after tax.

Annual General Meeting

The AGM will be held at 2 p.m. on Monday 24 April 2017 at Ework's premises at Mäster Samuelsgatan 60, 7th floor, Stockholm, Sweden. Notification of the meeting will be published in a press release and announcement in the Swedish Official Gazette, Swedish daily newspaper Svenska Dagbladet, as well as being published on Ework's website.

Nomination Committee

The Nomination Committee for the AGM 2017 has the following members: Chairman of the Board Staffan Salén, Magnus Berglind and Öystein Engebretsen. Magnus Berglind is Chairman of the Nomination Committee. Shareholders desiring to contact the Nomination Committee can do so by email at: valberedningen@ework.se

Zoran Covic, CEO Stockholm, Sweden, 17 February 2017

The information disclosed in this Year-end Report is mandatory for Ework Group AB (publ) to publish pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. This information will be submitted for publication at 8:00 a.m. (CET) on 17 February 2017 through the agency of the CEO. This Year-end Report has not been reviewed by the company's auditor.

A SOPHISTICATED TOOL

One of Ework's main strengths is its ability to match the right competence with the right assignment. Ework is now developing a digital process with the potential to make this even more accurate. It also minimises the risk of discrimination by eliminating emotional criteria like sex, ethnicity, age and appearance.

A smart and sustainable way to match competence and assignments

ood for the client. Good for the consultant. And good for society. Ework's new matching process is a win-win. The aim is an even

more accurate, fast and efficient way to match the right consultant with the right assignment.

"In the future, we expect companies to need even better access to the right competence at the right time to evolve at the speed necessary to stay competitive," explains Tim Kolga, a psychologist and the creator of Ework's new matching process.

Against a background of the need for more consultants in the Fourth Industrial Revolution—the technological revolution we are now on the verge of, which will fundamentally transform the way we live, interact and work—Ework has taken this revolutionary grasp of the search and

selection process. The aim is to produce an accurate methodology which dispenses with everything that is irrelevant or based on prejudice.

"We want to be the sector leader in producing smart methods for making better recruitment decisions, and that fits a new, intelligent way to work. Apart from us wanting to eliminate everything that could be discriminatory, we also wanted to provide our clients with superior delivery, and our consultants with more job satisfaction, by mapping soft values. Accordingly, we look at the critical feature of each assignment. Is it social skills? Working quickly under pressure? Or having highly developed strategic capacity?"

"Our aim is for the client to have fewer, but better candidates to choose from," explains Tim.

If you're looking for a Java consultant, for example, you could find either

someone who delivers best alone, or someone who performs best in a group. Being an extrovert, which is often associated with being successful, a good salesperson and energetic, is a quality that many people appreciate and most employees rate highly, but it might not be at all relevant for the assignment, and the client may erroneously deselect the more competent, introverted individual.

The test is based on mathematical algorithms and is divided into two parts, one part focuses on the logical problem solving and the other part focuses on personality.

"We have a dedicated team continuously refining and developing our matching process in the light of the feedback we get. We want to lead the trend when it comes to fast, accurate and non-discriminatory matching of each assignment with the right skills" adds Tim.

G

ACCOUNTS

Consolidated Statement of Comprehensive Income

SEK 000 Note	October December 2016	October December 2015	Full year 2016	Full year 2015
Operating income
Net sales 1	2,320,130	1,740,739	7,585,442	6,089,079
Work performed by the company for its own use and capitalized	3,106	0	9,554	0
Other operating income	0	19	30	21
Total operating income	2,323,236	1,740,758	7,595,026	6,089,100
Operating costs
Cost of consultants on assignment	-2,217,914	-1,658,710	-7,241,348	-5,799,219
Other external costs	-22,677	-17,263	-76,110	-57,992
Personnel costs	-53,045	-42,596	-183,681	-152,683
Depreciation, amortisation and impairment of property, plant & equipment and intangible non-current assets	-299	-210	-940	-801
Total operating costs	-2,293,935	-1,718,779	-7,502,079	-6,010,695
Operating profit	29,301	21,979	92,947	78,405
Profit/loss from financial items
Net financial income/expense	59	-522	1,207	-547
Profit after financial items	29,360	21,457	94,154	77,858
Tax	-6,362	-6,404	-21,640	-18,191
Profit for the period	22,998	15,053	72,514	59,667
Other comprehensive income/costs
Items that have been reclassified, or are reclassifiable, to profit or loss
Translation differences on translation of foreign
operations for the period	-343	-1,205	2,289	-1,709
Other comprehensive income/costs for the period	-343	-1,205	2,289	-1,709
Comprehensive income for the period	22,655	13,848	74,803	57,958
Earnings per share
before dilution (SEK)	1.34	0.88	4.22	3.49
after dilution (SEK)	1.34	0.88	4.21	3.48
Number of shares outstanding at end of the reporting period:
before dilution (000)	17,188	17,085	17,188	17,085
after dilution (000)	17,206	17,130	17,206	17,130
Average number of outstanding shares:
before dilution (000)	17,188	17,085	17,119	17,018
after dilution (000)	17,205	17,125	17,135	17,044

Consolidated Statement of Financial Position

	31 December	31 December
SEK 000 Assets	2016	2015
Non-current assets
Intangible non-current assets	9,911	313
Property, plant and equipment	3,584	1,419
Non-current receivables	4,290	486
Deferred tax asset	0	1,358
Total non-current assets	17,785	3,576
Current assets
Accounts receivable—trade	2,128,139	1,667,576
Prepaid expenses and accrued income	45,950	12,479
Other receivables	24,889	18,734
Cash and cash equivalents	112,202	95,578
Total current assets	2,311,180	1,794,367
Total assets	2,328,965	1,797,943
Equity and liabilities Equity
Share capital	2,234	2,221
Other paid-up capital	41,967	51,494
Reserves	-3,740	-6,029
Retained earnings including profit for the period	95,456	64,526
Total equity	135,917	112,212
Non-current liabilities
Non-current interest-bearing liabilities	50,008	68,590
Total non-current liabilities	50,008	68,590
Current liabilities
Accounts payable—trade	2,081,920	1,567,447
Tax liabilities	3,434	484
Other liabilities	28,821	24,301
Accrued expenses and deferred income	28,865	24,909
Total current liabilities	2,143,040	1,617,141
Total equity and liabilities	2,328,965	1,797,943

Consolidated Statement of Changes in Equity

		Other paid-up	Translation	Retained earnings incl. profit for the
SEK 000	Share capital	capital	reserve	period	Total equity
Opening equity, 1 Jan. 2015	2,207	62,526	-4,320	65,999	126,412
Comprehensive income for the period
Profit for the period				59,667	59,667
Other comprehensive income/costs for the period			-1,709		-1,709
Comprehensive income for the period			-1,709	59,667	57,958
Transactions with the Group's shareholders
Dividends		-15,288		-61,140	-76,428
Warrants exercised by staff	14	4,256			4,270
Closing equity, 31 Dec. 2015	2,221	51,494	-6,029	64,526	112,212
Opening equity, 1 Jan. 2016	2,221	51,494	-6,029	64,526	112,212
Comprehensive income for the period
Profit for the period				72,514	72,514
Other comprehensive income/costs for the period			2,289		2,289
Comprehensive income for the period			2,289	72,514	74,803
Transactions with the Group's shareholders
Dividends		-13,942		-41,584	-55,526
Warrants exercised by staff	13	4,415			4,428
Closing equity, 31 Dec. 2016	2,234	41,967	-3,740	95,456	135,917

Consolidated Statement of Cash Flows

	October	October
SEK 000	December 2016	December 2015	Full year 2016	Full year 2015
Operating activities
Profit after financial items	29,360	21,456	94,154	77,858
Adjustment for items not included in cash flow	299	210	940	801
Income tax paid	-4,440	1,737	-17,363	-11,052
Cash flow from operating activities before changes in working capital	25,219	23,403	77,731	67,607
Cash flow from changes in working capital	14,259	-30,997	19,172	-156,064
Increase (-)/Decrease (+) in operating receivables	-399,965	-208,565	-485,546	-458,184
Increase (+)/Decrease (-) in operating liabilities	414,224	177,568	504,718	302,120
Cash flow from operating activities	39,478	-7,594	96,903	-88,457
Investing activities
Acquisition of property, plant & equipment	-2,007	0	-2,873	-993
Acquisition of intangible assets	-3,190	0	-9,788	-24
Disposal of tangible assets	0	16	0	0
Cash flow from investing activities	-5,197	16	-12,661	-1,017
Financing activities
Warrants exercised	0	0	4,428	4,270
Dividend paid to Parent Company shareholders	0	0	-55,526	-76,428
Borrowings	0	41,387	0	68,590
Repayment of loans	-20,012	0	-18,582	0
Cash flow from financing activities	-20,012	41,387	-69,680	-3,568
Cash flow for the period	14,269	33,809	14,562	-93,042
Cash and cash equivalents at beginning of period	97,155	63,021	95,578	190,506
Exchange rate difference	778	-1,252	2,062	-1,886
Cash and cash equivalents at end of period	112,202	95,578	112,202	95,578

Parent Company Income Statement

	October December	October December	Full year	Full year
SEK 000	2016	2015	2016	2015
Operating income
Net sales	1,846,043	1,448,635	6,135,584	5,036,537
Work performed by the company for its own use and capitalized	3,106	0	9,554	0
Other operating income	3,267	2,339	13,709	11,576
Total operating income	1,852,416	1,450,974	6,158,847	5,048,113
Operating costs
Cost of consultants on assignment	-1,770,079	-1,383,792	-5,876,251	-4,808,636
Other external costs	-20,680	-14,710	-65,633	-48,796
Personnel costs	-39,587	-32,137	-138,107	-115,554
Depreciation, amortisation and impairment of property, plant & equipment and intangible non-current assets	-206	-161	-687	-628
Total operating costs	-1,830,552	-1,430,800	-6,080,678	-4,973,614
Operating profit	21,864	20,174	78,169	74,499
Profit/loss from financial items
Other interest income and similar items	0	181	2,304	206
Interest expense and similar items	-243	-1,125	-490	-1,434
Profit after financial items	21,621	19,230	79,983	73,271
Tax	-4,834	-4,345	-17,869	-16,426
Profit for the period *	16,787	14,885	62,114	56,845

* Profit for the period corresponds to comprehensive income for the period.

Parent Company Balance Sheet

SEK 000	31 December 2016	31 December 2015
Assets
Non-current assets
Intangible non-current assets	9,911	313
Property, plant and equipment	2,840	832
Financial non-current assets
Other non-current receivables	3,795	45
Participations in Group companies	22,084	22,072
Total financial non-current assets	25,879	22,117
Total non-current assets	38,630	23,262
Current assets
Accounts receivable—trade	1,785,431	1,466,885
Receivables from Group companies	36,280	22,390
Tax receivables	0	0
Other receivables	412	5,952
Prepaid expenses and accrued income	19,562	6,922
Cash and bank balances	61,104	64,555
Total current assets	1,902,789	1,566,704
Total assets	1,941,419	1,589,966
Equity and liabilities Equity
Restricted equity
Share capital (17,085,075 shares with par value of SEK 0.13)	2,234	2,221
Statutory reserve	6,355	6,355
Development fund	9,554	0
Total restricted equity Non-restricted equity	18,143	8,576
Share premium reserve	49,950	45,535
Retained earnings	-8,235	0
Profit for the period	62,114	56,845
Total non-restricted equity	103,829	102,380
Total equity	121,972	110,956
Non-current liabilities
Liabilities to credit institutions	50,008	68,590
Total non-current liabilities	50,008	68,590
Current liabilities
Accounts payable—trade	1,721,795	1,375,339
Tax liabilities	1,647	794
Other liabilities	24,805	20,098
Accrued expenses and deferred income	21,192	14,189
Total current liabilities	1,769,439	1,410,420
Total equity and liabilities	1,941,419	1,589,966

Accounting principles

The Year-end Report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and the appropriate provisions of the Swedish

Annual Accounts Act. The Interim Report for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act. The same accounting principles and basis of calculation have been applied as in the Annual Report for 2015. The operations in Poland are reported in the Sweden segment for the present.

Note1 on the financial statements

The Group's operating segments

January-December 2016 compared to the corresponding period 2015

	Sweden Jan-Dec		Finland Jan-Dec		Denmark Jan-Dec		Norway Jan-Dec		Total Jan-Dec
SEK 000	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015
Income from clients		6,177,410 5,042,009	402,076	335,599	503,709	353,910	502,247		357,561 7,585,442 6,089,079
Profit per segment	142,153	133,412	5,043	2,158	12,985	10,658	12,629	4,725	172,810	150,953
Group-wide expenses	-66,678	-61,710	-5,008	-4,109	-4,222	-3,258	-3,955	-3,471	-79,863	-72,548
Operating profit/loss	75,475	71,702	35	-1,951	8,763	7,400	8,674	1,254	92,947	78,405
Net financial items	-	-	-	-	-	-	-	-	1,207	-547
Profit/loss for the period before tax									94,154	77,858

Fourth quarter 2016 compared to the corresponding period 2015

		Sweden Oct-Dec		Finland Oct-Decc		Denmark Oct-Dec	Norway Oct-Dec			Total Oct-Dec
SEK 000	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015
Income from clients		1,862,494 1,453,557	125,650	90,324	165,152	97,326	166,834		99,532 2,320,130 1,740,739
Profit per segment	47,641	45,633	3,107	426	4,030	3,092	4,755	2,080	59,533	51,231
Group-wide expenses	-27,070	-27,002	-1,636	-711	-485	-685	-1,041	-854	-30,232	-29,252
Operating profit/loss	20,571	18,631	1,471	-285	3,545	2,407	3,714	1,226	29,301	21,979
Net financial items	-	-	-	-	-	-	-	-	59	-522
Profit/loss for the period before tax									29,360	21,457

The Board of Directors and President hereby certify that this Year-end Report gives a true and fair view of the company's and the Group's operations, financial position and results of operations and states the significant risks and uncertainty factors facing the company and Group companies.

Magnus Berglind Board member

Johan Qviberg Board member Anna Storåkers Board member

Dan Berlin Board member Mernosh Saatchi Board member

Erik Åfors Board member

Stockholm, Sweden, 17 February 2017

Staffan Salén Chairman of the board

Zoran Covic Chief Executive Officer

The information disclosed in this Year-end Report is mandatory for Ework Scandinavia AB (publ) to publish pursuant to the Swedish Securities Markets Act. This information will be submitted for publication at 08:00 a.m. (CET) on 17 February 2017. This Year-end Report has not been reviewed by the company's auditor.

Definitions

A number of measures and key indicators appearing in the Interim Report are defined below. Most should be considered generally accepted, and of such nature that they could be expected to be presented in this Interim Report to give a view of the Group's results of operations, profitability and financial position. Most measures and key indicators are directly reconcilable with the financial statements.

Earnings per share Profit after tax in relation to the number of shares. Consultants on assignment The number of consultants working on active full or part-time assignments

Equity/assets ratio Equity in relation to total assets.

Equity per share Equity in relation to the number of shares outstanding before dilution at the end of the period.

Interest-bearing assets Cash and cash equivalents.

Net interest-bearing assets Cash and cash equivalents less non-interest-bearing liabilities

Operating margin, EBIT Operating profit in relation to net sales. Operating profit, EBIT Operating profit

Profit margin Profit before tax in relation to net sales.

Order intake Ordered net sales on new or extended consulting assignment contracts in the period.

Quick ratio Current assets in relation to current liabilities.

Return on equity Profit after tax in relation to average equity.

Sales growth Net sales for the period less net sales for the comparative period in relation to net sales for the comparative period.

Working capital Current assets less current liabilities.

Ework Group is a market-leading, independent consultant provider active in northern Europe focusing on IT, telecom, technology and business development. With no consultants employed, Ework is able to match each assignment with appropriate competence from the whole market impartially. Ework was founded in Sweden in 2000, and is now active in Sweden, Denmark, Norway, Finland and Poland. The Company has framework agreements with over 160 leading corporations in most sectors, and some 7,000 consultants on assignment. Ework's headquarters are in Stockholm, Sweden. Ework's shares are quoted on Nasdaq Stockholm.

www.eworkgroup.com

Ework Group AB (publ)

Mäster Samuelsgatan 60 SE-111 21 Stockholm Sweden Tel: +46 (0)8 506 05500 Corporate ID no. 556587-8708

Reporting calendar

Annual Report 2016 Early April 2017 First-quarter Interim Report 24 April 2017 Semi-annual Report 19 July 2017 Nine-month Interim Report 26 October 2017

Contacts for more information

Zoran Covic, CEO +46 (0)8 50 60 55 00 +46 (0)706 65 65 17 Magnus Eriksson, Deputy CEO & CFO +46 (0)8 50 60 55 00 +46 (0)733 82 84 80