eWork Group (EWRK) ABGSC Investor Days summary

Business overview and strategy

• Acts as a bridge connecting organizations with freelance and consulting talent, focusing on IT, digitalization, green transition, and strategic development.

• Operates in six markets with 12 sites, recently expanding into Slovakia to meet client demand and serve global clients in 50 countries.

• Core skill is building and managing a global talent network of 170,000 consultants and 25,000 partner firms, with Sweden as the main market.

• Offers acquisition, management, and total talent solutions, including managed service provider and permanent recruitment services.

• Responds to megatrends like agile workforce needs, digitalization, and compliance with evolving European labor legislation.

Financial targets and performance

• Aims to grow faster than the market, focusing on organic and profitable growth through strong client relationships.

• Expanding in Europe, especially Poland and Slovakia, with plans for further geographic growth based on client demand.

• Focused on increasing margins via add-on services, operational efficiency, and investments in a new AI-based digital platform.

• Set an ambitious EPS growth target of 30%, but has not achieved it due to prolonged recession; targets will be reviewed for the next 3–5 years.

• Maintains a strong financial position with low debt, positive cash flow, and a dividend policy of 75% of net profit, often exceeded.

Q3 2023 results and market trends

• Reported Q3 revenue of SEK 3.2 billion and annual 2023 revenue of SEK 17.2 billion, with 11,500 consultants on assignment in Q3.

• Q3 saw increased order intake and higher margins, especially from core business and add-on services, despite lower net sales due to recession.

• EBIT operating profit for Q3 increased by 3.1% year-over-year, with strong performance in the automotive sector driven by digitalization and electrification.

• Sweden remains the largest market, with Poland and Denmark showing growth; Norway faces challenges from new labor legislation.

• Continues to grow its consultant network by about 10,000 per quarter and maintains a healthy balance sheet for future investments.