Slide 1: Fourth Quarter 2023
Fourth Quarter 2023 February 8, 2024 Karin Schreil, President & CEO Klas Rewelj, Executive Vice President & CFO
Slide 2: Focus on strong customers and upgraded operating model in a mixed market
Focus on strong customers and upgraded operating model in a mixed market • The mixed market dynamics continued • Industries and clients with stronger demand were in focus • Regained trust from several existing clients and new frame agreement wins • Strengthened customer experience in recent survey Ø
Slide 3: Varying market dynamics with continued demand for experts and specialists
Varying market dynamics with continued demand for experts and specialists Ework Professionals on assignment development per market 170 • A mixed market with stronger demand among certain 160 150 Denmar k industries and select clients: 140 Pol and + Automotive and Life Science 130 120 Fi nland - Publ
Slide 4: New operating model for increased client value
New operating model for increased client value • Implementing an updated operating model as of Q1 this year • The upgraded model is the result of a thorough internal process over the past 12 months • The model will contribute to: − Increased focus on sales and client development − More efficient- an
Slide 5: Progress of strategic growth initiatives
Progress of strategic growth initiatives • Project initiated to upgrade internal IT backbone based on standard solutions, aiming to improve operational efficiency and quality • Additional benefits developed for our partner & professionals network: − Extended offer of education and skill training pro
Slide 6: Q4 Financials
Q4 Financials Klas Rewelj, EVP & CFO
Slide 7: Lower order intake, increase in extensions and higher average rates on new contracts
Lower order intake, increase in extensions and higher average rates on new contracts Order intake, quarter 10 000 • Order intake -6,4% to MSEK 8,327 (8,895) 9 000 • Number of New & Extended Assignments -5% 8 000 − New assignments -23% − Extended assignments 3% 7 000 6 000 • Big differences between s
Slide 8: Operating profit improved by 6.2%
Operating profit improved by 6.2% Net sales and operating profit MSEK Net sales -0.6% to SEK 4,657 million Net sales Operating profit 5 000 70 • Slightly down compared to record quarter Q4 22 4 500 60 • Mainly due to lower business volumes and thus fewer 4 000 billable consulting hours. 3 500 50 Ope
Slide 9: Negative volume effect mitigated by price and currency
Negative volume effect mitigated by price and currency MSEK Net Sales 4800 4700 4687 60 4657 99,7 2,5 4600 4500 -192,2 4400 4300 4200 4100 4000 Q4 2022 Volume Price/Mix Add-on Services Currency Q4 2023 • Negative volume effect due to 4% fewer hours billed in the quarter • Price/mix, incl. higher fee
Slide 10: Increased result despite lower volumes
Increased result despite lower volumes MSEK EBIT 65 2,6 60 10,4 58,2 -2,3 -0,3 55 54,8 50 -7 45 40 35 30 Q4 2022 Volume Price/Mix Add-on Services Total Cost Currency Q4 2023 • Negative volume effect of 7 MSEK • Focus on value and profitable business in our delivery • Positive effect on margin due to
Slide 11: Q4 operating margin
Q4 operating margin Operating margin, basis points • Operating margin (EBIT) of 125 bps (120) MSEK 140 • Reduced revenue growth limiting positive margin impact 120 • Positive impact from “one-off” items 100 • Adjusted margin on same level as 2022 80 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 11
Slide 12: Dividend proposal
Dividend proposal Dividend 8 • The Board of Directors propose a dividend of SEK 7 per 7 share (6,5), an increase of 8% 6 • The dividend corresponds to 94% of net profit for 2023 • Ordinary dividend share of net profit 91% (excl. “pandemic 5 effect”) 4 • Dividend policy to distribute a minimum 75% of
Slide 13: 2024 Outlook
2024 Outlook • Ework expects a gradually stronger demand and, consequently, growth by the end of 2024. • A decrease in net sales is expected during H1 due to lower demand and order intake 2023, as previously reported. A limited decrease in net sales is forecasted for FY 2024. • Through increased foc
Slide 14: 2023 Summary
2023 Summary • Q4 operating profit +6.2% to SEK 58.2 m and +6.4% for 2023 to SEK 195 m, despite a challenging year. • The mixed market dynamics continued with growth in some industry segments and markets, and dampened demand in others. • The number of requests for new assignments was lower than Q4 2
Slide 15: Appendix
Appendix
Slide 16: Market Units Sweden
Market Units Sweden • Order intake -5.6% mainly due to lower demand in Telecom, Market Units Sweden Energy and Retail. Automotive showed stronger demand 7 0 00 • Net sales decline -1.6% 6 0 00 • Net sales growth in Public sector was driven by more 5 0 00 customers and compensate for a decline in the
Slide 17: Market Units Northern & Central Europe
Market Units Northern & Central Europe • Order intake -8.8% Market Units Northern & Central Europe 2 500 • Positive development in Consulting, Life Science and Manufacturing 2 000 • Net sales +2.2% with growth in 3 out of 4 Market Units • Profit in line with last year 1 500 • High growth in order in