Ework Group — Interim / Quarterly Report 2016

Oct 21, 2016

2016 INTERIM REPORT 3 JANUARY–SEPTEMBER 2016

Positive progress on a strong consulting market

Third quarter 2016 compared to the corresponding period 2015

• • Net sales increased by 25% to SEK 1,646 M (1,316).
• • Operating profit up by 10% to SEK 19.2 M (17.5).
• • Order intake amounted to SEK 1,864 M (1,453), a 28% increase.
• • Earnings per share after dilution were SEK 0.88 (0.85).

First nine months 2016 compared to the corresponding period 2015

• • Net sales increased by 21% to SEK 5,265 M (4,348).
• • Operating profit up by 13% to SEK 63.6 M (56.4).
• • Earnings per share after dilution were SEK 2.88 (2.61).
• • Demand was firm right through the period, with Ework estimating that it won market shares on a growing market.
• • Order intake for the first nine months of year was SEK 7,146 M (5,320).

Quarterly order intake

Net sales and operating profit

CEO ZORAN COVIC

Positive progress

We're in a really positive business cycle for the consulting sector. Ework expanded on a broad front, and our more recent initiatives in technology consulting, public sector assignments and our Polish operation performed positively.

he consulting market was really strong in the third quarter. Demand was positive across most consulting segments where Ework is active. The Ework Barometer

survey of September indicated that over 90% of consultants expect the market to remain strong over the coming year.

Ework continued to grow across a broad front in the quarter, with net sales up by 25% and order intake by 28%. These are positive outcomes, not least against the background of us comparing against a strong third quarter of the previous year.

To achieve our growth target for 2020, which we announced at the beginning of the year, we increased investing in digitalising and automating, and made some key appointments. This work went as expected. Earnings are in line with our plans for the year. The aim of these initiatives is to keep enhancing our operational efficiency and scalability, for the rapid ongoing expansion that we plan for the coming years.

Meanwhile, we are seeing positive payoffs from our previous efforts. Growth in the comparatively new segment of technology consultants is above our average. Our large-scale public sector assignments are progressing positively and we expect to achieve growing profitability over time. Our Polish business is performing well, with a major framework agreement in the financial sector and over 100 consultants on assignment.

We are continuing to advance Ework's positioning on the consulting market, while our long-term development projects are still going full speed ahead.

Zoran Covic, CEO

Stockholm, Sweden, 21 October 2016.

Positive progress on a strong consulting market

Market

The Nordic consulting market remained very strong in the third quarter of the year. Demand was high, or very high, across most skills segments where Ework is active.

Demand growth increased across Ework's consolidated offering, 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.

The supply of consultants for new assignments was healthy in most indemand consulting segments, although the number of applicants for new assignments was down year on year. Higher utilisation was also evident in the period through a tendency towards rising consultant pricing. Ework views the markets in Sweden and Denmark as strong. In Norway the private sector remained hesitant, although demand from the public sector was positive. The market in Finland normalised after faintly positive demand growth.

The Group's net sales

The Group's net sales for the third quarter were up by 25% to SEK 1,646 M (1,316). All geographical units and most consulting segments contributed to the increase. In the first nine months of 2016, net sales were up by 21% to SEK 5,265 M (4,348). The increase was sourced in the same manner as for the quarter.

The Group's profit

The Group's operating profit increased by 10% to SEK 19.2 M (17.5) in the third quarter 2016. In the first nine months, operating profit was SEK 63.6 M (56.4), a 13% increase.

As in previous quarters, operating profit for the period does include some investments relating to business and process development, executed with the aim of creating the potential for continued growth. This means that operating profit increases somewhat less than net sales.

Profit after financial items was SEK 19.8 M (17.6) for the third quarter 2016, and to SEK 64.8 M (56.4) for the first nine months of the year. Profit after tax was SEK 15.2 M (14.6) for the third quarter and SEK 49.5 M (44.6) for the first nine months of the year.

Comments on progress

Sales progressed positively in the third quarter. Order intake was up by 28% to SEK 1,864 M (1,453). The number of consultants on assignment continue to rise, peaking at 6,640. Takeover contracts and consultants on new assignments generated this increase.

Sweden

This Swedish operation sustained its positive progress in a robust market. Net sales for the quarter were up by 22% to SEK 1,318 M (1,082). Net sales for the first nine months were up by 20% to SEK 4,315 M (3,588). The growth was broad based, with more recent skills segments such as technology consultants making an about-average contribution.

Operating profit was SEK 15.9 M (17.6) for the third quarter, and SEK 54.9 M (53.1) for the first nine months. The fact that quarterly earnings decreased despite increasing net sales is due to somewhat higher expenses for developing operations.

The Polish operation is still reported under the Sweden segment. This operation progressed positively, with the number of consultants on assignment

Sales by region

First nine months as a percentage of net sales

* Poland is reported under Sweden.

Consultants on assignment

passing 100 for the first time. A major framework agreement was signed with one of the largest financial institutions in Poland.

Denmark

The positive progress of the Danish operation continued on a strong market. Net sales were up by 45% to SEK 122.7 M (84.7 M). Net sales for the first nine months were SEK 338.6 M (256.6), a 32% increase.

Operating profit for the third quarter was SEK 2.5 M (1.8). Operating profit for the first nine months was SEK 5.2 M (5.0).

Norway

The revenues and earnings of the Norwegian operation continued to expand briskly thanks to high demand from the public sector. Net sales in

the quarter rose by 52% to SEK 111.3 M (73.2). For the nine-month period, net sales were SEK 335.4 M (258.0), a 30% increase.

The operating profit/loss was SEK 1.3 M (-0.9) in the quarter and SEK 5.0 M (0.0) for the first nine months.

Finland

The net sales of the Finnish operation rose by 22% in the third quarter to SEK 93.7 M (76.7). Net sales for the first nine months were SEK 276.4 M (245.3), up by 13%.

The operating profit/loss for the quarter was SEK -0.6 M (-1.0) and SEK -1.4 M (-1.7) for the first nine months of the year. The fact that earnings are increasing only marginally despite sales rising remains due to the sales mix.

Financial position

The equity/assets ratio was 5.9% (6.3) at the end of the period. Cash flow from operating activities for the third quarter was SEK -96.3 M (-0.3). 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.

Cash flow from operating activities in the nine-month period was SEK 57.4 M (-80.9). The group's net interest-bearing assets were SEK 27.1 M (35.8) at the reporting date.

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

Key performance data

SEK 000	July September 2016	July September 2015	January September 2016	January September 2015	Rolling 4 quarters October 2015- September 2016	Full year 2015
Net sales	1,646,169	1,316,388	5,265,312	4,348,340	7,006,051	6,089,079
Operating profit, EBIT	19,196	17,519	63,646	56,427	85,624	78,405
Profit before tax	19,801	17,552	64,794	56,402	86,250	77,858
Profit for the period	15,227	14,620	49,516	44,615	64,568	59,667
Sales growth, %	25.1	26.3	21.1	30.8	22.1	29.2
Operating margin, EBIT, %	1.2	1.3	1.2	1.3	1.2	1.3
Profit margin, %	1.2	1.3	1.2	1.3	1.2	1.3
Return on equity, %	59.1	65.8	58.6	52.9	61.0	50.0
Total assets	1,910,665	1,569,701	1,910,665	1,569,701	1,910,665	1,797,943
Equity	113,262	98,365	113,262	98,365	113,262	112,212
Equity/assets ratio, %	6	6	6	6	6	6
Acid test ratio, %	110	108	110	108	110	111
Average number of employees	214	185	211	173	202	176
Net sales per employee	7,692	7,116	24,954	25,135	34,683	34,597
Key performance data per share
Earnings per share before dilution	0.89	0.86	2.90	2.61	3.76	3.49
Earnings per share after dilution	0.88	0.85	2.88	2.61	3.75	3.48
Equity per share before dilution	6.6	5.8	6.6	5.8	6.6	6.6
Equity per share after dilution	6.6	5.7	6.6	5.7	6.6	6.6
Cash flow from operating activities per share before dilution	-5.60	-0.02	3.34	-4.73	2.90	-5.18
Cash flow from operating activities per share after dilution	-5.60	-0.02	3.34	-4.73	2.90	-5.16
Number of shares outstanding at end of period before dilution (000)	17,188	17,085	17,188	17,085	17,188	17,085
Number of shares outstanding at end of period after dilution (000)	17,206	17,107	17,206	17,107	17,206	17,130
Average number of shares outstanding before dilution (000)	17,119	17,018	17,096	16,995	17,094	17,018
Average number of shares outstanding after dilution (000)	17,136	17,112	17,112	17,106	17,110	17,111

Shareholders

As of 30 September 2016	No. of shares	Votes and equity
Staffan Salén and family through companies1	4,689,945	27.3%
Försäkringsaktiebolaget Avanza Pension	3,186,699	18.5%
Investment AB Öresund	1,722,759	10.0%
Veralda Investment Ltd	1,032,705	6.0%
PSG Micro Cap	410,261	2.4%
Patrik Salén and family through companies12	374,000	2.2%
Jan Pettersson	349,000	2.0%
Claes Ruthberg	300,000	1.7%
Unionen	300,000	1.7%
Danica pension	284,017	1.7%
Total	12,649,386	73.6%
Other	4,538,189	26.4%
Total	17,187,575	100%

1 Salénia AB 2 Jippa Investment AB

The Ework share

Workforce

The average number of employees increased to 214 (185) excluding consultants employed on a project basis. The increase is due to higher sales, futureoriented initiatives and the new start-up in Poland.

Parent Company

The Parent Company's net sales for the third quarter were SEK 1,302 M (1,081). Profit before financial items was SEK 15.7 M (18.4) and profit after tax was SEK 13.2 M (14.4).

The Parent Company's net sales for the first three quarters were SEK 4,290 M (3,588). Profit before financial items was SEK 56.3 M (54.3) and profit after tax was SEK 45.3 M (42.0).

The Parent Company's equity at the end of the third quarter was SEK 105.2 M (96.1) and the equity/assets ratio was 6.5% (7.1).

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 its financial targets for the period 2016-2020, i.e. of achieving average annual sales growth of 20% and average earnings per share increasing by 20% per year. Essentially, Ework is retaining its judgement of the outlook for 2016 presented in the Year-end Report for 2015.

Ework judges that in future, a growing share of the workforce will operate as consultants. The market's long-term consolidation trend is expected to continue, and is expected to generate positive growth potential for Ework in the period 2016 to 2020.

Ework expects demand on the Nordic consulting market to remain strong in the remainder of 2016 and the consulting market as a whole to grow. This means that the number of new consultant assignments on the market will continue to increase. In addition, new outsourcing deals are anticipated. This trend is expected to generate positive business potential for Ework. Ework has a strong market position and a competitive offering. Accordingly, Ework is expected to continue to outgrow the underlying consulting market on existing geographical markets and in existing skills segments. This means that Ework has the potential to achieve good sales growth with corresponding profit performance in the full year 2016.

Zoran Covic, CEO

Stockholm, Sweden, 21 October 2016

The information disclosed in this Interim 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 21 October 2016 through the agency of the CEO.

EWORK IN THE PUBLIC SECTOR

Assisting Norway's most up-to-date public body

Being perceived as Norway's most up-to-date public body. In pursuit of this vision, the Norwegian State Educational Loan Fund (the Norwegian equivalent of Sweden's CSN) modernised all its IT structures and solutions. Step one was to develop digital services on a new platform for young, mobile students. Step two involved focusing on systems for internal collaboration and communi-cation, including storing data on the cloud. Ework Norway has been delivering the right external competence for this project since spring 2016.

The Fund started its IT initiative by producing a new solution platform for communicating with its end-customers, i.e. students.

I

"Our 1 million customers are young and 100% of them are mobile communication users. This means we have to offer solutions tailored accordingly. The outcome of our work on new digital solutions was successful—research demonstrates that our customers are very satisfied," re-ports Sigurd Eriksson, the Norwegian State Educational Loan Fund's IT Director.

Once this was complete, our next in step in 2015 was to focus on modernising our IT systems for internal collaboration and communication. Our aim was to streamline the management of in-formation, while simultaneously making it more available. One stage in this process was becom-ing the first Norwegian public body to plan storing data on the cloud. This also involved extensive legal work.

"The outcome of our work on new digital solutions was successful—research demonstrates that our customers are very satisfied," Sigurd Eriksson, IT Director of the Norwegian State Educa-tional Loan Fund.

There were some concerns that we would lose competence, but the opposite has been true.

Sigurd Eriksson, I T D I R E C T O R O F T H E N O R W E G I A N S T A T E E D U C A T I O N A L L O A N F U N D .

Partnering with Ework since spring 2016

The Norwegian State Educational Loan Fund is endeavouring to remain at the leading edge of IT progress—but only if this also results in greater cost-efficiency. Efficiency should also feature in all other parts of our business, such as consultant purchasing. The Fund's some 300 employees are continuously supported by some 25 consultants.

"Previously we had a raft of different providers, which was resource-intensive to administer. This got me thinking about the possibility of using a single provider like Ework, who could give us ac-cess to the whole consulting market, while also meaning we had just one counterparty. Good references from other clients persuaded us to adopt the solution after the customary tendering process," continues Sigurd.

"We signed our contract with Ework in April 2016."

"There were some concerns that we would lose competence, but the opposite has been true. We're also freeing up time by cutting the number of interviews. Now, Ework sends us two or three candidates that are all really qualified for the assignment, instead of as previously, meeting and interviewing a far greater number. Another bonus is that we avoid processing paper, and that I can now sign off contracts digitally on my mobile," he adds.

"We now hope to be able to inspire other people to think in new ways."

ACCOUNTS

Consolidated Statement of Comprehensive Income

SEK 000 Not	July September 2016	July September 2015	January September 2016	January September 2015	Rolling 4 quarters Oct.'15 – Sep.'16	Full year 2015
Operating income
Net sales 1	1,646,169	1,316,388	5,265,312	4,348,340	7,006,051	6,089,079
Work performed by the company for its own use and capitalized	1,948	0	6,448	0	6,448	0
Other operating income	0	2	30	2	49	21
Total operating income	1,648,117	1,316,390	5,271,790	4,348,342	7,012,548	6,089,100
Operating costs
Cost of consultants on assignment	-1,571,069	-1,251,837	-5,023,434	-4,140,509	-6,682,144	-5,799,219
Other external costs	-17,536	-12,427	-53,433	-40,728	-70,697	-57,992
Personnel costs	-40,097	-34,398	-130,636	-110,087	-173,232	-152,683
Depreciation, amortisation and impairment of property, plant & equipment and intangible non-current assets	-219	-209	-641	-591	-851	-801
Total operating costs	-1,628,921	-1,298,871	-5,208,144	-4,291,915	-6,926,924	-6,010,695
Operating profit	19,196	17,519	63,646	56,427	85,624	78,405
Profit/loss from financial items
Net financial income/expense	605	33	1,148	-25	626	-547
Profit after financial items	19,801	17,552	64,794	56,402	86,250	77,858
Tax	-4,574	-2,932	-15,278	-11,787	-21,682	-18,191
Profit for the period	15,227	14,620	49,516	44,615	64,568	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	838	168	2,632	-504	1,427	-1,709
Other comprehensive income/costs for the period	838	168	2,632	-504	1,427	-1,709
Comprehensive income for the period	16,065	14,788	52,148	44,111	65,995	57,958
Earnings per share
before dilution (SEK)	0,89	0,86	2,90	2,61	3,76	3,49
after dilution (SEK	0,88	0,85	2,88	2,61	3,75	3,48
Number of shares outstanding at end of the reporting period:
before dilution (000)	17,188	17,085	17,188	17,085	17,188	17,085
after dilution (000)	17,206	17,107	17,206	17,107	17,206	17,130
Average number of outstanding shares:
before dilution (000)	17,119	17,018	17,096	16,995	17,094	17,018
after dilution (000)	17,136	17,112	17,112	17,106	17,110	17,111

Consolidated Statement of Financial Position

	30 September	30 September	31 December
SEK 000	2016	2015	2015
Assets
Non-current assets
Intangible non-current assets	6,763	373	313
Property, plant and equipment	1,838	1,597	1,419
Non-current receivables	528	497	486
Deferred tax asset	218	3,115	1,358
Total non-current assets	9,347	5,582	3,576
Current assets
Accounts receivable—trade	1,763,989	1,472,400	1,667,576
Tax receivables	0	5,701	0
Prepaid expenses and accrued income	24,434	14,332	12,479
Other receivables	15,740	8,665	18,734
Cash and cash equivalents	97,155	63,021	95,578
Total current assets	1,901,318	1,564,119	1,794,367
Total assets	1,910,665	1,569,701	1,797,943
Equity and liabilities Equity
Share capital	2,234	2,221	2,221
Other paid-up capital	41,967	51,494	51,494
Reserves	-3,397	-4,824	-6,029
Retained earnings including profit for the period	72,458	49,474	64,526
Total equity	113,262	98,365	112,212
Non-current liabilities
Non-current interest-bearing liabilities	70,020	27,203	68,590
Total non-current liabilities	70,020	27,203	68,590
Current liabilities
Accounts payable—trade	1,677,956	1,403,777	1,567,447
Tax liabilities	1,654	0	484
Other liabilities	26,302	21,530	24,301
Accrued expenses and deferred income	21,471	18,826	24,909
Total current liabilities	1,727,383	1,444,133	1,617,141
Total equity and liabilities	1,910,665	1,569,701	1,797,943

Consolidated Statement of Changes in Equity

SEK 000	Share capital	Other paid-up capital	Translation reserve	Retained earnings incl. profit for the 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				44,615	44,615
Other comprehensive income/costs for the period			-504		-504
Comprehensive income for the period			-504	44,615	44,111
Transactions with the Group's shareholders
Dividends		-15,288		-61,140	-76,428
Warrants exercised by staff	14	4,256			4,270
Closing equity, 30 Sep. 2015	2,221	51,494	-4,824	49,474	98,365
Opening equity, 1 Oct. 2015	2,221	51,494	-4,824	49,474	98,365
Comprehensive income for the period
Profit for the period				15,052	15,052
Other comprehensive income/costs for the period			-1,205		-1,205
Comprehensive income for the period			-1,205	15,052	13,847
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				49,516	49,516
Other comprehensive income/costs for the period			2,632		2,632
Comprehensive income for the period			2,632	49,516	52,148
Transactions with the Group's shareholders
Dividends		-13,942		-41,584	-55,526
Warrants exercised by staff	13	4,415			4,428
Closing equity, 30 Sep. 2016	2,234	41,967	-3,397	72,458	113,262

Consolidated Statement of Cash Flows

SEK 000	July September 2016	July September 2015	January September 2016	January September 2015	Rolling 4 quarters Oct.'15 – Sep.'16	Full year 2015
Operating activities
Profit after financial items	19,801	17,552	64,794	56,402	86,250	77,858
Adjustment for items not included in cash flow	219	209	641	591	851	801
Income tax paid	-4,254	-4,220	-12,923	-12,789	-11,186	-11,052
Cash flow from operating activities before changes in working capital	15,766	13,541	52,512	44,204	75,915	67,607
Cash flow from changes in working capital	-112,081	-13,888	4,913	-125,067	-26,084	-156,064
Increase (-)/Decrease (+) in operating receivables	60,623	184,293	-85,581	-249,619	-294,146	-458,184
Increase (+)/Decrease (-) in operating liabilities	-172,704	-198,181	90,494	124,552	268,062	302,120
Cash flow from operating activities	-96,315	-347	57,425	-80,863	49,831	-88,457
Investing activities Acquisition of property, plant & equipment Acquisition of intangible assets	-60 -1,984	-140 0	-866 -6,598	-1,009 -24	-850 -6,598	-993 -24
Cash flow from investing activities	-2,044	-140	-7,464	-1,033	-7,448	-1,017
Financing activities Warrants exercised	4,428	4,270	4,428	4,270	4,428	4,270
Dividend paid to Parent Company shareholders	0	0	-55,526	-76,428	-55,526	-76,428
Borrowings	0	27,203	1,430	27,203	42,817	68,590
Cash flow from financing activities	4,428	31,473	-49,668	-44,955	-8,281	-3,568
Cash flow for the period	-93,931	30,986	293	-126,851	34,102	-93,042
Cash and cash equivalents at beginning of period	191,357	32,333	95,578	190,506	63,021	190,506
Exchange rate difference	-271	-298	1,284	-634	32	-1,886
Cash and cash equivalents at end of period	97,155	63,021	97,155	63,021	97,155	95,578

Parent Company Income Statement

SEK 000	July September 2016	July September 2015	January September 2016	January September 2015	Rolling 4 quarters Oct.'15 – Sep.'16	Full year 2015
Operating income
Net sales	1,302,267	1,081,219	4,289,541	3,587,902	5,738,176	5,036,537
Work performed by the company for its own use and capitalized	1,948	0	6,448	0	6,448	0
Other operating income	3,366	3,041	10,442	9,237	12,781	11,576
Total operating income	1,307,581	1,084,260	4,306,431	3,597,139	5,757,405	5,048,113
Operating costs
Cost of consultants on assignment	-1,247,347	-1,030,629	-4,106,172	-3,424,844	-5,489,964	-4,808,636
Other external costs	-14,773	-9,921	-44,953	-34,086	-59,663	-48,796
Personnel costs	-29,600	-25,186	-98,520	-83,417	-130,657	-115,554
Depreciation, amortisation and impairment of property, plant & equipment and intangi ble non-current assets	-161	-161	-481	-467	-642	-628
Total operating costs	-1,291,881	-1,065,897	-4,250,126	-3,542,814	-5,680,926	-4,973,614
Operating profit	15,700	18,363	56,305	54,325	76,479	74,499
Profit/loss from financial items
Other interest income and similar items	1,360	106	2,447	25	2,628	206
Interest expense and similar items	-120	0	-390	-309	-1,515	-1,434
Profit after financial items	16,940	18,469	58,362	54,041	77,592	73,271
Tax	-3,760	-4,110	-13,035	-12,081	-17,380	-16,426
Profit for the period *	13,180	14,359	45,327	41,960	60,212	56,845

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

Parent Company Balance Sheet

SEK 000	30 September 2016	30 September 2015	31 December 2015
Assets
Non-current assets
Intangible non-current assets	6,763	372	313
Property, plant and equipment	1,000	944	832
Financial non-current assets
Other non-current receivables	45	45	45
Participations in Group companies	22,084	20,972	22,072
Total financial non-current assets	22,129	21,017	22,117
Total non-current assets	29,892	22,333	23,262
Current assets
Accounts receivable—trade	1,454,766	1,254,486	1,466,885
Receivables from Group companies	28,770	19,940	22,390
Tax receivables	0	4,566	0
Other receivables	502	421	5,952
Prepaid expenses and accrued income	11,599	7,135	6,922
Cash and bank balances	74,104	35,044	64,555
Total current assets	1,569,741	1,321,592	1,566,704
Total assets	1,599,633	1,343,925	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	2,221
Statutory reserve	6,355	6,355	6,355
Development fund	6,448	0	0
Total restricted equity	15,037	8,576	8,576
Non-restricted equity
Share premium reserve	51,296	45,535	45,535
Retained earnings	-6,448	0	0
Profit for the period	45,327	41,960	56,845
Total non-restricted equity	90,175	87,495	102,380
Total equity	105,212	96,071	110,956
Non-current liabilities
Liabilities to credit institutions	70,020	27,203	68,590
Total non-current liabilities	70,020	27,203	68,590
Current liabilities
Accounts payable—trade	1,386,353	1,189,448	1,375,339
Tax liabilities	1,067	0	794
Other liabilities	23,279	19,578	20,098
Accrued expenses and deferred income	13,702	11,625	14,189
Total current liabilities	1,424,401	1,220,651	1,410,420
Total equity and liabilities	1,599,633	1,343,925	1,589,966

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 Re-port for the Parent Company has been prepared in accordance with the Swedish Annual Ac-counts 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.

Note 1 on the financial statements

The Group's operating segments

January-September 2016 compared to the corresponding period 2015

	Sweden Jan-Sep		Finland Jan-Sep		Denmark Jan-Sep		Norway Jan-Sep		Total Jan-Sep
SEK 000	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015
Income from clients		4,314,916 3,588,452	276,426	245,275	338,557	256,584	335,413		258,029 5,265,312 4,348,340
Profit per segment	94,512	87,779	1,936	1,732	8,955	7,566	7,874	2,645	113,277	99,722
Group-wide expenses	-39,608	-34,707	-3,372	-3,398	-3,737	-2,573	-2,914	-2,617	-49,631	-43,295
Operating profit/loss	54,904	53,072	-1,436	-1,666	5,218	4,993	4,960	28	63,646	56,427
Net financial items	-	-	-	-	-	-	-	-	1,148	-25
Profit/loss for the period before tax									64,794	56,402

Third quarter 2016 compared to the corresponding period 2015

	Sweden Jan-Sep		Finland Jan-Sep		Denmark Jan-Sep		Norway Jan-Sep		Total Jan-Sep
SEK 000	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015
Income from clients	1,318,465	1,081,769	93,659	76,670	122,713	84,747	111,332	73,202	1,646,169	1,316,388
Profit per segment	27,849	27,953	256	152	3,977	2,696	2,305	-104	34,387	30,697
Group-wide expenses	-11,935	-10,399	-835	-1,122	-1,462	-861	-959	-796	-15,191	-13,178
Operating profit/loss	15,914	17,554	-579	-970	2,515	1,835	1,346	-900	19,196	17,519
Net financial items	-	-	-	-	-	-	-	-	605	33
Profit/loss for the period before tax									19,801	17,552

Auditor's report

To the Board of Directors of Ework Group AB (publ) Corporate ID no. 556587-8708

Introduction

We have conducted a review of the Interim Report of Ework Group AB (publ) as of 30 September 2016, and the nine-month period that concluded on this date. The Board of Directors and CEO are responsible for the preparation and presentation of this Interim Report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on the Interim Re-port based on our review.

Focus and scope of review

We have conducted our review in accordance with the International Standard on Review En-gagements ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is significantly limited in scope compared to the focus and scope of an audit conducted in accordance with the International Standards on Accounting (ISA) and general-ly accepted auditing standards in Sweden. The procedures performed in

Mattias Johansson Authorised Public Accountant KPMG AB

Stockholm, Sweden, 21 October 2016

a review do not allow us to obtain a level of assurance that would make us aware of all significant matters that might have been identified in an audit. Therefore, the conclusion expressed based on a review does not pro-vide the same level of assurance as a conclusion expressed on the basis of an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the Interim Report has not been prepared, in all material respects, for the group in accordance with IAS 34 and the Swedish Annual Accounts Act and for the parent company in accordance with the Annual Accounts Act.

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.

Consultants on assignment

The number of consultants working on active full or part-time assignments

Earnings per share Profit after tax in relation to the number of shares.

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

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

Profit margin Profit before tax in relation to net sales.

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, while simultaneously managing 6,000 consultants on assignment. Ework's headquarters are in Stockholm, Sweden. Ework's shares are quoted on Nasdaq Stockholm.

www.ework.se

Ework Group AB (publ).

Klarabergsgatan 60, 3rd floor SE-111 21 Stockholm Sweden Tel: +46 (0)8 506 05500 Corporate ID no. 556587-8708

Reporting calendar

17 February 2017 Year-end Report 2016

Contacts for more information

Zoran Covic, CEO +46 (0)8 506 05500 +46 (0)70 665 6517 Magnus Eriksson, deputy CEO and CFO +46 (0)8 506 05500 +46 (0)73 382 8480