Ework Group — Interim / Quarterly Report 2013

Jul 26, 2013

Interim Report January - June 2013

Second quarter 2013 compared with 2012

• Net sales rose by 6 percent to SEK 931.8 million (877.2).
• Operating profit decreased by 22 percent to SEK 12.5 million (16.0).
• Order intake increased by 12 percent and amounted to SEK 1,226 million (1,090).
• Profit after tax per share was SEK 0.55 (0.71), the same amount before and after dilution.
• The market remained hesitant, which negatively affected the number of ongoing consultant appointments.

• However, interest in consolidating and MSP (managed service provider) business was high.

• An MSP deal was signed with Tetra Pak, expected to amount to over 10 percent of the Group's net sales.

• This agreement with TetraPak mainly relates to technology consultants, which marks a breakthrough for eWork in this segment.

First half-year 2013 compared with 2012

• Net sales increased by 8 percent to SEK 1,886.0 million (1,747).
• Operating profit decreased by 9 percent to SEK 27.3 (30.0) million.
• eWork judges that it won market share on a generally hesitant market. Its sales mix included a higher share of outsourcing and takeover contracts, which explains its lower operating margin.

SEK million	Apr–Jun 2013	Apr–Jun 2012	Jan–Jun 2013	Jan–Jun 2012	Rolling 4 quarters, Jul 2012–Jun 2013	Full year 2012
Net sales	931.8	877.2	1,886.0	1,747.0	3,664.0	3,525.1
Operating profit	12.5	16.0	27.3	30.0	59.3	61.9
Profit before tax	12.4	16.2	27.3	30.2	59.4	62.3
Profit after tax	9.4	11.9	21.0	22.3	45.4	46.7
Cash flow. operating activities	–7.3	26.0	–66.8	45.4	–46.6	65.6
Operating margin, %	1.3	1.8	1.4	1.7	1.6	1.8
Equity/assets ratio, %	10.7	10.8	10.7	10.8	12.3	12.4
Earnings per share before dilution (SEK)	0.55	0.71	1.24	1.34	2.68	2.75
Earnings per share after dilution (SEK)	0.55	0.71	1.24	1.33	2.67	2.74
Max number of consultants on assignment	3,025	3,003	3,025	3,003	3,150	3,150
Average number of employees	155	147	155	150	153	150
Sales per employee (SEK thousand)	6,012	5,967	12,168	11,647	23,948	23,500

Order intake

CEO's commentary

eWork achieved a major milestone in the quarter when we secured our second really large-scale MSP (managed service provider) deal, on this occasion with TetraPak. We also demonstrated once again that we're the strongest provider on the market, with a functional MSP concept for the whole Nordic region. Meanwhile, this deal is a breakthrough in the technology consultant segment.

eWork's Report for the second quarter 2013 illustrates an operation that is standing up well in a hesitant market. Order intake and net sales are growing, albeit not at the rate we're accustomed to. We're still seeing a hesitant market in terms of new consultant appointments, but growing interest in MSP and consolidating business. Our business mix is changing, and consists of more lower-margin business, which combined with our continued investment in IT and MSP business, explains our lower profit. We are continuing to invest for the long term and advance our positioning. Accordingly, we are creating favourable prospects for higher-margin business, when the economy improves and the number of new consultant appointments increases again.

We're especially pleased that in this quarter, we were able to present our second really large-scale MSP (managed service provider) deal. As we've concluded previously, MSP business generates high volumes, some initial costs and lower operating margins. What is positive is that these deals are long term and proven stable from a cyclical perspective.

It's also really pleasing that the TetraPak deal is mainly on technology consultants.

We're advancing our positioning on the market with new opportunities to grow across the Nordics. Firstly, the start-up of our technology consultant side opens up growth opportunities in a large segment in all the Nordic countries. Secondly, we've demonstrated that we are the strongest provider on the market, with a functional MSP model for the whole Nordic region. Our MSP assignments for TetraPak and Sony Mobile Communications make us a really strong player in the Öresund region; our southern Swedish and Danish businesses are collaborating on this delivery. Accordingly, we're standing out as the only player capable of delivering large-scale MSP solutions on the Danish market as we now encounter high interest in such deals. We've been building a similar collaboration in Norway for an extended period. We're also encountering interest in this model in Finland. In addition to the agreement with Tetra Pak, we have also signed contracts with new customers as Unisys, Storebrand and Migrationsverket.

" We're advancing our positioning on the market with new opportunities to grow across the Nordics.

We anticipate a continued hesitant market for the rest of the year. We expect lower growth in 2013 than in 2012, but we are standing strong, and consolidating our positioning through the positive progress of our MSP and consolidating business. We judge our prospects of continuing to grow and take market share with long-term positive profit performance as good.

Claes Ruthberg, President and CEO Stockholm, Sweden, 26 July 2013

Market and operations

eWork is a full-range consulting provider in the Nordic consulting market in IT, technology, telecom and business development. eWork is the leader in the Nordic consulting broker market.

Market

The Nordic consulting market remained hesitant in the second quarter of the year. Interest in consolidating business, where existing consultant deliveries are integrated onto one or a few providers, was brisk. eWork successfully demonstrated how complete purchasing functions for consultant delivery can be outsourced to a single provider, which contributed to greater interest in similar business setups on all eWork's markets. eWork judges that the IT consultant market contracted somewhat in the period in year-on-year terms, but that the consultant broker market segment grew, and continued to win share on the consultant market.

Rapid transitions between different specialist competences have become more common. This applies not only to the IT segment. Interest in the broker model has grown in the technology consultant segment, where for some time, eWork has been conducting a goal-oriented initiative. In terms of scale, this segment is comparable with the IT consultant market segment, but consultant brokers have controlled a very small market share to date. However, this market share has started to grow, not least through eWork's new deal with Tetra Pak.

In the quarter, the Swedish market was more hesitant than the corresponding period of the previous year. The Norwegian market was stable. The Finnish market has stabilised, albeit at a fairly low activity level. The Danish market was weak, and demand remained hesitant, although growing interest in consolidating business was apparent.

eWork's demand indicators, such as the number of client enquiries received, applications, the share of indicated skills segments etc. indicated a continued weak, but stable, market. The number of applicants per assignment was stable at a fairly high level, indicating fairly low capacity utilisation for the

market overall, and thus continued good access to consultants for eWork. Overall, eWork anticipates a continued hesitant market for the rest of the year.

The Group's net sales

The Group's net sales for the second quarter increased by 6 percent and amounted to SEK 931.8 million (877.2). In the first half-year 2013, net sales were up by 8 percent to SEK 1,886.0 million (1,747.0). The sales increase is sourced from operations in Sweden and Norway. Growth largely consisted of MSP business, while the share of new consultant appointments reduced due to poor demand in the market.

The Group's profit

The Group's operating profit for the second quarter fell by 22 percent to SEK 12.5 million (16.0). Operating profit was SEK 27.3 million (30.0) in the first half-year 2013, a 9 percent decrease.

The profit downturn is mainly due to the altered sales mix, with a higher share of MSP and consolidating business, with their lower margins, and profit being charged with costs for continued long-term investments in the MSP offering and IT. Profit after financial items was SEK 12.4 million (16.2) for the second quarter 2013, and SEK 27.3 million (30.2) for the first half-year 2013. Profit after tax was SEK 9.4 million (11.9) for the second quarter 2013, and SEK 21.0 million (22.3) for the first half-year 2013.

The Group's positive operating profit is mainly sourced from the Swedish business, although Norway also made a positive operating profit contribution, after group-wide expenses.

Sales breakdown

Max. no. of consultants on assignment

Operational developments

The Group's sales increased in the second quarter, and order intake was up by 12 percent to SEK 1,226 million (1,090). The maximum number of consultants on assignment was 3,025.

MSP assignments, as well as specific selection and takeover contracts, represented most of the increase, while the order intake from standard business with ongoing consultant appointments was unchanged.

eWork's competitiveness on ongoing consultant appointments remained strong, and has increased somewhat compared to the corresponding period of 2012.

Work on the new MSP deal with TetraPak announced in June concluded in the quarter, and delivery work commenced. This deal is one of eWork's largest, expected to generate over 10 percent of the Group's sales. MSP collaborations provide more stable revenues than standard contracts, although their operating margins are lower, especially in the initial phase.

In the period, eWork also signed two smaller-scale but promising pan-Nordic framework agreements with Unisys.

Sweden

Sales rose in Sweden. Net sales increased by 10 percent in the quarter to SEK 753.7 million (687.1) despite a hesitant market. In the first half-year, net sales increased by 10 percent to SEK 1,520.2 million (1,382.0). The volume of standard contracts was unchanged, but also shifted to some extent towards the MSP setup, which alongside specific selection and takeover contracts, increased.

eWork signed a new MSP deal with TetraPak at the end of the period, conforming to the model established through its collaboration with Sony Mobile Communications. This agreement means that eWork's previous collaboration with Tetra Pak, which has run for many years, becomes deeper and broader based, by applying eWork's MSP model. eWork has created a team for this assignment, and will have staff on site with the client.

The upscaled initiative on technology consultants announced a year ago also made a breakthrough through this deal. Technology consultants are an important focus for eWork, because this is a large, and to date, fairly unexplored market segment. Sales work in the period also secured new framework agreements for clients including the Swedish Migration Board, Telenor in Sweden and SKL/Kommentus (the latter becoming formally effective after the end of the period).

Operating profit was SEK 12.6 million (15.1) for the second quarter, and SEK 26.9 million (29.0) for the first halfyear. The profit decrease relates to the altered sales mix, with a higher share of MSP assignments.

Finland

In Finland, net sales for the second quarter were SEK 54.5 million (82.9). Net sales for the first half-year were SEK 114.1 million (160.3). The decrease is due to continued poor demand, and costs have been adapted to a lower revenue level. Operating profit/loss after deducting for group-wide expenses was SEK –0.1 million (0.8), and SEK 0.9 million (1.3) for the half-year.

eWork still regards the Finnish market as weak, but stable. eWork's initiative in technology consultants encountered significant market interest. eWork has consolidated its sales organisation since the previous quarter, and is continuing to follow its plan to re-establish growth and profitability in this business.

Denmark

Net sales were SEK 37.0 million (38.2) in the second quarter; net sales were SEK 73.5 million (81.9) in the first half-year.

The operating profit/loss was negative in the second quarter, at SEK –1.2 million (–0.5). The profit/loss for the first half-year was SEK –2.3 million (–0.3). There was high activity in sales efforts, with results including a deeper collaboration with a Nordic leader in the financial sector, which appointed eWork as its sole partner on takeover contracts. eWork's southern-Swedish MSP deals with TetraPak and Sony Mobile Communications strengthen the Danish business firstly through collaboration on these deliveries, and secondly, by eWork demonstrating that the company is the only player on the Danish market capable of offering this type of largescale outsourcing. Interest in this type of business is high.

Norway

Operations in Norway maintained their positive sales performance. Net sales for the quarter were up by 26 per cent to SEK 86.7 million (68.9). This increase is primarily sourced from continued successful progress of a number of large-scale assignments, one being an MSP deal. Operating profit after group-wide expenses was SEK 1.2 million (0.5). The share of takeover and MSP contracts remained fairly high, explaining the relatively low profit in terms of sales.

Net sales for the first half-year were SEK 178.2 million (122.8), up by 45 percent. Operating profit/loss after groupwide expenses for the first half-year was SEK 1.8 million (–0.0). Market conditions were fairly stable and the number of consultants on assignment continued to increase. eWork signed a new framework agreement with Storebrand.

Financial position

The equity/assets ratio was 10.7 percent (10.8) on 30 June 2013. Cash flow from operating activities for the second quarter was SEK –7.3 million (26.0). Cash flow from operating activities for the first half-year was SEK –66.8 million (45.4). Changes in working capital at different reporting dates are mainly due to all payments from clients and to consultants being made at month-ends. For this reason, a small timing difference in payments made or received can have a major effect on cash flow at a specific time.

The Group's net interest-bearing assets were SEK 45.2 million (128.5) at the end of the reporting period.

Workforce

The number of employees of the Group continued to increase somewhat year on year, due to operational growth. The average number of permanent employees of the Group in the second quarter 2013 was 155 (147). For the first half-year, the number was 155 (150). Consultants employed on a project basis are included in 'cost of consultants on assignment' under operating costs.

Parent Company

The Parent Company's net sales for the second quarter were SEK 753.7 million (687.1). Profit before financial items was SEK 12.6 million (15.1) and profit after tax was SEK 10.6 million (11.2).

For the first half-year, the Parent Company's net sales were SEK 1,520.2 million (1,382.0). Profit before financial items was SEK 26.9 million (29.0) and profit after tax was SEK 21.1 million (21.2).

The Parent Company's shareholders' equity at the end of the quarter amounted to SEK 100.9 million (104.8), and the equity/assets ratio was 10.9 percent (12.9). Otherwise, where appropriate, the above comments regarding the Group's financial position also apply to the Parent Company.

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 since the end of the reporting period.

Shareholders, eWork's five largest owners (28 June 2013)

Name	No. of shares	%
Salénia AB	4,147,546	24.5%
Magnus Berglind (endowment insurance)	3,000,000	17.7%
Öresund Investment AB	1,303,284	7.7%
PSG Small Cap	1,228,859	7.2%
Anders Ström Core Holdings Ltd	928,257	5.5%

Outlook

eWork expects the demand for IT and business development consultants to be fairly hesitant in 2013. The trend of clients implementing rationalisation measures, such as reducing the number of suppliers, is continuing. Demand for MSP projects, where all of a client's consultant contracts are subcontracted to one party, is expected to increase.

eWork believes it has the right prospects to keep performing positively. eWork's structural capital, in the form of a

large and growing number of framework agreements, a base of some 60,000 consultants and systems and processes accumulated to manage client business effectively, is a contributory factor. In addition, eWork is continuing to conduct business development to sharpen its competitiveness, extend its offering and streamline delivery.

Continued streamlining and economies of scale through increased volumes are expected to make a positive contribution to profitability in the long term. The sales mix and cyclical reduction in demand for ongoing consultant appointments is expected to have a negative impact on operating profit.

Overall, the Board of Directors' opinion is that eWork has good prospects of continuing to grow and strengthen its position on a relatively weak market.

Share price and turnover

Reporting calendar

25 October 2013 Interim Report July – September 2013

Contacts for more information

Claes Ruthberg, President and CEO, +46 (0)8 506 05500 Magnus Eriksson, CFO, +46 (0)8 506 05500, +46 (0)73 382 8480

On the reporting date, questions should be addressed to Magnus Eriksson in the first instance.

Claes Ruthberg President and CEO Stockholm, Sweden, 26 July 2013

This Report has not been subject to review by the company's auditor.

The information disclosed in this Interim 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 26 July 2013.

Consolidated Statement of Comprehensive Income

		April –	April –	January –	January –	Rolling 4 quarters, July 2012 –	Full year
SEK thousand	Note	June 2013	June 2012	June 2013	June 2012	June 2013	2012
Operating income
Net sales	1	931,835	877,165	1,886,034	1,747,037	3,664,049	3,525,052
Other operating income		2	–	5	1	5	1
Total operating income		931,837	877,165	1,886,039	1,747,038	3,664,054	3,525,053
Operating costs
Cost of consultants on assignment		–873,927	–817,246	–1,766,115	–1,628,404	–3,426,937	–3,289,226
Other external costs		–12,323	–10,584	–24,533	–21,114	–46,686	–43,267
Personnel costs		–32,794	–33,022	–67,487	–67,012	–129,969	–129,494
Depreciation, amortisation and impairment of property, plant & equipment and intangible non-current assets		–304	–292	–593	–553	–1,181	–1,141
Total operating costs		–919,348	–861,144	–1,858,728	–1,717,083	–3,604,773	–3,463,128
Operating profit		12,489	16,021	27,311	29,955	59,281	61,925
Profit/loss from financial items
Net financial items		–90	132	–55	216	121	392
Profit after financial items		12,399	16,153	27,256	30,171	59,402	62,317
Tax		–3,044	–4,253	–6,206	–7,829	–13,982	–15,605
Profit for the period		9,355	11,900	21,050	22,342	45,420	46,712
Other comprehensive income/costs Translation differences for the period regarding non-Swedish operations		1,568	–281	127	–799	–710	–1,636
Other comprehensive income/costs for the period		1,568	–281	127	–799	–710	–1,636
Comprehensive income for the period		10,923	11,619	21,177	21,543	44,710	45,076
Earnings per share
before dilution (SEK)		0.55	0.71	1.24	1.34	2.68	2.75
after dilution (SEK)		0.55	0.71	1.24	1.33	2.67	2.74
Number of shares outstanding at end of the reporting period: before dilution (thousands)		16,958	16,725	16,958	16,725	16,958	16,958
after dilution (thousands)		17,029	16,781	17,029	16,781	17,029	17,030
Average number of outstanding shares:
before dilution (thousands)		16,958	16,725	16,958	16,725	16,958	16,842
after dilution (thousands)		17,036	16,796	17,049	16,786	17,165	16,902

Consolidated Statement of Financial Position

SEK thousand	30 Jun 2013	30 Jun 2012	31 Dec 2012
ASSETS
Non-current assets
Intangible non-current assets	1,069	1,349	1,037
Property, plant and equipment	1,420	1,433	1,589
Non-current receivables	442	875	655
Deferred tax recoverable	3,287	3,311	3,233
Total non-current assets	6,218	6,968	6,514
Current assets
Accounts receivable - trade	1,003,821	817,509	917,924
Prepaid expenses and accrued income	10,127	17,971	11,784
Other receivables	1,025	563	1,792
Cash and cash equivalents	45,236	128,526	154,599
Total current assets	1,060,209	964,569	1,086,099
TOTAL ASSETS	1,066,427	971,537	1,092,613
EQUITY AND LIABILITIES
Equity
Share capital	2,204	2,174	2,204
Other paid-up capital	61,320	54,643	61,320
Reserves	–5,400	–4,690	–5,527
Retained earnings including profit for the period	56,114	53,090	77,460
Total equity	114,238	105,217	135,457
Non-current liabilities
Deferred tax liability	3,237	-	3,237
Current liabilities
Accounts payable - trade	914,862	820,090	908,789
Tax liabilities	1,182	8,194	8,606
Other liabilities	14,065	18,739	16,980
Accrued expenses and deferred income	18,843	19,297	19,544
Total current liabilities	948,952	866,320	953,919
TOTAL EQUITY AND LIABILITIES	1,066,427	971,537	1,092,613

Consolidated Statement of Changes in Equity

	Share	Other paid-up	Translation	Retained earnings incl.	Total
SEK thousand	capital	capital	reserve	profit for the period	equity
Opening equity, 1 Jan. 2012	2,174	54,643	–3,891	61,689	114,615
Comprehensive income for the period
Profit for the period				22,342	22,342
Other comprehensive income/costs for the period			–799		–799
Comprehensive income for the period			–799	22,342	21,543
Transactions with the Group's shareholders
Dividends				–30,941	–30,941
Closing equity, 30 Jun. 2012	2,174	54,643	–4,690	53,090	105,217
Opening equity, 1 Jul. 2012	2,174	54,643	–4,690	53,090	105,217
Comprehensive income for the period
Profit for the period				24,370	24,370
Other comprehensive income/costs for the period			–837		–837
Comprehensive income for the period			–837	24,370	23,533
Transactions with the Group's shareholders
Share options exercised by staff	30	6,408			6,438
Premiums deposited on issuing share warrants		269			269
Closing equity, 31 Dec. 2012	2,204	61,320	–5,527	77,460	135,457
Opening equity, 1 Jan. 2013	2,204	61,320	–5,527	77,460	135,457
Comprehensive income for the period
Profit for the period				21,050	21,050
Other comprehensive income/costs for the period			127		127
Comprehensive income for the period			127	21,050	21,177
Transactions with the Group's shareholders
Dividends				–42,396	–42,396
Closing equity, 30 Jun. 2013	2,204	61,320	–5,400	56,114	114,238

Consolidated Statement of Cash Flows

					Rolling
SEK thousand	April – June 2013	April – June 2012	January – June 2013	January – June 2012	4 quarters, July 2012 – June 2013	Full year 2012
Operating activities
Cash flow from operating activities before changes in working capital	8,346	13,839	14,258	25,504	42,711	53,957
Cash flow from changes in working capital	–15,628	12,155	–81,015	19,896	–89,287	11,624
Cash flow from operating activities	–7,282	25,994	–66,757	45,400	–46,576	65,581
Cash flow from investing activities	–385	–495	–363	–675	–578	–890
Cash flow from financing activities	–42,396	–30,941	–42,396	–30,941	–35,689	–24,234
Cash flow for the period	–50,063	–5,442	–109,516	13,784	–82,843	40,457
Cash and cash equivalents at beginning of period	93,972	134,225	154,599	115,450	128,526	115,450
Exchange rate differences	1,327	–257	153	–708	–447	–1,308
Cash and cash equivalents at end of period	45,236	128,526	45,236	128,526	45,236	154,599

Key performance data

					Rolling
SEK thousand	April – June 2013	April – June 2012	January – June 2013	January – June 2012	4 quarters, July 2012 – June 2013	Full year 2012
Sales growth, %	6.2	30.7	8.0	36.4	19.0	35.0
Operating margin, %	1.3	1.8	1.4	1.7	1.6	1.8
Return on equity (annualised), %	34.0	41.6	38.4	40.6	41.4	37.4
Equity per share, SEK	6.7	6.3	6.7	6.3	6.7	8.0
Cash flow from operating activities per share, SEK	–0.4	1.5	–3.9	2.7	–2.7	3.9
Equity/assets ratio, %	10.7	10.8	10.7	10.8	12.3	12.4
Acid test ratio, %	112	111	112	111	115	114
Average number of employees	155	147	155	150	153	150
Sales per employee	6,012	5,967	12,168	11,647	23,948	23,500

Parent Company Income Statement

					Rolling 4 quarters,
	April –	April –	January –	January –	July 2012 –	Full year
SEK thousand	June 2013	June 2012	June 2013	June 2012	June 2013	2012
Operating income
Net sales	753,699	687,102	1,520,227	1,382,019	2,919,555	2,781,347
Other operating income	1,774	2,604	4,214	5,194	6,950	7,930
Total operating income	755,473	689,706	1,524,441	1,387,213	2,926,505	2,789,277
Operating costs
Cost of consultants on assignment	–707,512	–640,477	–1,424,719	–1,289,079	–2,730,883	–2,595,243
Other external costs	–10,169	–8,301	–20,735	–16,297	–39,959	–35,521
Personnel costs	–24,881	–25,532	–51,502	–52,362	–99,227	–100,087
Depreciation, amortisation and impairment of property, plant & equipment and intangible
non-current assets	–284	–255	–548	–506	–1,067	–1,025
Total operating costs	–742,846	–674,565	–1,497,504	–1,358,244	–2,871,136	–2,731,876
Operating profit	12,627	15,141	26,937	28,969	55,369	57,401
Profit/loss from financial items
Other interest income and similar items	1,153	274	289	466	2,534	2,711
Interest expense and similar items	–114	–235	–114	–645	–1,391	–1,922
Profit after financial items	13,666	15,180	27,112	28,790	56,512	58,190
Appropriations	-	-	-	-	–14,713	–14,713
Tax	–3,040	–4,017	–6,043	–7,632	–10,019	–11,608
PROFIT FOR THE PERIOD*	10,626	11,163	21,069	21,158	31,780	31,869

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

Parent Company Balance Sheet

SEK thousand	30 Jun 2013	30 Jun 2012	31 Dec 2012
ASSETS
Non-current assets
Intangible non-current assets	1,069	1,349	1,037
Property, plant and equipment	922	1,109	1,080
Financial non-current assets
Participations in Group companies	15,829	15,829	15,829
Total financial non-current assets	15,829	15,829	15,829
Total non-current assets	17,820	18,287	17,946
Current assets
Accounts receivable - trade	859,334	666,185	763,959
Receivables from Group companies	19,122	32,503	32,652
Other receivables	101	140	48
Prepaid expenses and accrued income	6,271	9,468	5,734
Cash and bank balances	19,261	88,798	107,381
Total current assets	904,089	797,094	909,774
TOTAL ASSETS	921,909	815,381	927,720
EQUITY AND LIABILITIES Equity Restricted equity
Share capital (16,958,475 shares with par value of SEK 0.13)	2,205	2,174	2,205
Statutory reserve	6,355	6,355	6,355
Total restricted equity	8,560	8,529	8,560
Non-restricted equity
Share premium reserve	55,360	48,682	55,360
Retained earnings	15,924	26,450	26,450
Profit for the period	21,069	21,158	31,869
Total non-restricted equity	92,353	96,290	113,679
Total equity	100,913	104,819	122,239
Untaxed reserves	14,713	-	14,713
Current liabilities
Accounts payable - trade	780,279	675,081	754,912
Tax liabilities	1,586	9,441	8,929
Other liabilities	11,321	10,792	12,157
Accrued expenses and deferred income	13,097	15,248	14,770
Total current liabilities	806,283	710,562	790,768
TOTAL EQUITY AND LIABILITIES	921,909	815,381	927,720

Parent Company pledged assets and contingent liabilities

SEK thousand	30 Jun	30 Jun	31 Dec
	2013	2012	2012
Pledged assets	None	None	None
Contingent liabilities	None	None	None

Notes on the financial statements

Accounting principles

The Interim 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 2012.

NOTE 1 The Group's operating segments

		Sweden	Finland		Denmark		Norway		Total
SEK thousand	Jan–Jun	Jan–Jun	Jan–Jun	Jan–Jun	Jan–Jun	Jan–Jun	Jan–Jun	Jan–Jun	Jan–Jun	Jan–jun
	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012
Income from clients	1,520,227	1,382,019	114,112	160,320	73,508	81,942	178,187	122,755	1,886,034	1,747,037
Profit per segment	48,471	54,101	2,369	3,527	–1,326	997	3,545	1,653	53,059	60,278
Group-wide expenses	–21,534	–25,131	–1,444	–2,243	–1,001	–1,259	–1,769	–1,691	–25,748	–30,324
Operating profit/loss	26,937	28,970	925	1,284	–2,327	–262	1,776	–38	27,311	29,954
Net financial items	-	-	-	-	-	-	-	-	–55	216
Profit/loss for the period before tax									27,256	30,170

First half-year 2013 compared to 2012

Second quarter 2013 compared to 2012

		Sweden	Finland		Denmark		Norway		Total
SEK thousand	Apr–Jun	Apr–Jun	Apr–Jun	Apr–Jun	Apr–Jun	Apr–Jun	Apr–Jun	Apr–Jun	Apr–Jun	Apr–Jun
	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012
Income from clients	753,699	687,102	54,498	82,934	36,970	38,232	86,668	68,897	931,835	877,165
Profit per segment	22,126	27,726	555	1,941	–836	148	1,917	1,392	23,762	31,207
Group-wide expenses	–9,499	–12,584	–621	–1,121	–411	–627	–742	–855	–11,273	–15,187
Operating profit/loss	12,627	15,142	–66	820	–1,247	–479	1,175	537	12,489	16,020
Net financial items	-	-	-	-	-	-	-	-	–90	132
Profit/loss for the period before tax									12,399	16,152

eWork's Business Concept

eWork's business concept is to cost-efficiently provide the client with consultants who have the right specialist competence for each assignment, and to manage the related administration, quality assurance and follow-up. Correspondingly, consultants that sell their services via eWork are provided with challenging and profitable assignments.

eWork's Business Model

eWork does not have any consultants on the payroll, but instead collaborates with experienced, competent and specialist people, many of whom come from small consulting firms. eWork has a unique network of consultants where an objective and professional selection is made upon each inquiry. eWork's business model is based on a unique matching method that enables purchasers to rapidly find consultants with optimal skills on site. eWork is a contractual partner with the client, and enters into an equivalent agreement with the consultant, in addition to managing all administration and follow-up on each assignment.

eWork's Glossary

Completion frequency	Contracted assignments in relation to received consultant inquiries.
Consultant broker	Companies that provide consultant purchasers with consultants who are not their
	employees, by entering into an agreement with both the client and the consultant.
	Framework agreement An agreement with the consultant purchaser that enables eWork to provide consultants for particular requirements, although most often without a guaranteed volume.
MSP	Managed service provider: term describing eWork's function on outsourcing assignments. Outsourcing is a type of collaboration where eWork's role is to manage the client's
	operational procurement function for consultant purchasing for consultant delivery. All
	the client's consultant purchasing is contracted via eWork.
Specific selection	The client selects a specific consultant for an assignment, but contracts the consultant via eWork.
Standard contract	eWork finds the right consultant for the client at the right price and at the right time for a new assignment.
Takeover contracts	eWork takes over an existing consultant agreement during an ongoing consultant delivery.
Volume business	General description of larger transactions, often referring to outsourcing of consultant
	purchasing, but also covering large-scale takeover contracts, for example.

eWork Scandinavia AB is a complete consultant supplier with over 3,000 consultants on assignment within the fields of IT, telecoms, technology, and business development. eWork offers an objective selection of specialists from the largest consultant network on the market, offering clients better pricing, quality and time efficiency. eWork has framework agreements with more than 130 clients among the Nordic region's leading companies active in most sectors.

The Company's share is listed on NASDAQ OMX Stockholm.