Report Ework Ework ¬ Annual Report 2020 Annual Report I N G A T P R R E O P F I O T 2 0 0 2 2 0 0 2 T 94.3 O I S E K P F MILLION E O R R A P T G I N THE POWER OF 5G Ericsson builds I perceive a leadership style here that focuses just new, lightning-fast as much on the individual as on the business. mobile networks They have understood that it’s employees who drive the company Responsive and forward. professional HAMPUS NORÉN PRODUCT MANAGER, contract for ISS EWORK. DIGITALISATION WITH VERAMA We boost the business with new digital platform eworkgroup.com 2020 19–21 Verama is an independent marketplace where talents and talent-seekers meet. The platform consists of two sides: Verama VMS (Vendor Management System) – for buyers of consultancy services, and Verama Marketplace – a place where talented individuals can find their next assignment. Verama Marketplace, Ework’s new, rapidly-growing digital vendor network, was launched under its own brand in the second quarter of 2020. verama.com 2 EWORK GROUP ANNUAL REPORT 2020 Contents 4 2020 in brief 6 CEO’s statement 9 Ework in brief 13 The journey to 2020 14 The power of 5G Ericsson builds lightning-fast connection 28 in the new generation mobile network. In collaboration with Ework, Galway-based Chipright provides Ericsson in Lund with experts in the fields of ASIC and FPGA. 19 Verama The launch of the new digital vendor network represents a shift for buyers and consultants. The new platform has had a flying start. 22 The market 2020 has taught us to work more digitally, 25 6 flexibly and efficiently. Sanna Svalstedt, Head of HR, sees how this is making Ework more competitive. 25 Tailor-made for ISS ISS – with operations in more than 50 countries – has signed a three-year deal with Ework. “With Ework we were able to tick every wish box,” says Michael Catalan, Head of Procurement at ISS. 19 28 CPD planning What role will people play in an increas- ingly digitalised world? Anna Gulliksen, Global Head of Talent Acquisition and Employer Brand at TietoEVRY, examines the concepts. 30 Profile 22 Meet Hampus Norén, Product Manager at Ework, who is impressed by manage- ment’s ability to make use of employees’ ambitions and to focus on the future. 35 News items For a full version of the Annual Report 2020, see eworkgroup.com 30 14 ANNUAL REPORT 2020 EWORK GROUP 3 2020 IN BRIEF THE YEAR IN BRIEF You can read more about the year in full in part two of the annual report. Full year 2020 NET SALES OPERATING PROFIT EARNINGS PER SHARE 12,238 94.3 4.02 SEK million SEK million SEK Net sales totalled The operating profit Earnings per share before SEK 12,238 million (12,621). for the period was and after dilution SEK 94.3 million (107.9). totalled SEK 4.02 (4.37). ORDER INTAKE NUMBER OF CONSULTANTS SWEDEN 16,888 10,542 -5% SEK million Order intake for the full year The number of consultants Net sales in Sweden totalled SEK 16,888 million on assignment peaked at decreased by 5 per cent to (17,594), a drop of 4 per cent. 10,542 (10,731). 9,886 million (10,358). NORWAY DIVIDEND VERAMA MARKETPLACE +10% 4.50 +30,000 SEK Norway increased net sales by 10%, The Board of Directors registered users Denmark increased by 13% while proposes a dividend of in the new network sales in Finland fell by 20%. SEK 4.50 per share (2.00). Verama Marketplace. 4 EWORK GROUP ANNUAL REPORT 2020 THE MARKET AND EWORK NET SALES AND OPERATING PROFIT EWORK IN 2020 The market was strong in early (SEKNettoomsättning MILLION) och rörelseresultat MSEK 2020, but changed rapidly 4,000 40 during March, with a serious drop in the number of enquiries. 3,000 30 6,134 The market was weak during the new enquiries. second quarter, before starting to recover during the summer 2,000 20 and especially in the autumn, and the year ended more 1,000 10 strongly than expected. Sweden and Finland were most 0 0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 affected by the weaker market, Quarter while it proved possible to main- 20l6 20l7 20l8 20l9 2020 tain the trend in Poland, Denmark Net sales (left) Operating profit (right) 7,631 and Norway, despite Covid-19. The new contracts. trend was particularly strong in Norway. Poland continued to grow and made a positive contribution QUARTERLYOrderingång per ORDER kvartal INTAKE (SEK MILLION) in 2020, and will be reported sepa- MSEK rately from 2021. 7,000 The transition to remote 6,000 working went incredibly quickly, not just internally but also for 5,000 17,650 consultants, whose assignments 4,000 extended contracts. were largely performed remotely. 3,000 There was no negative impact for consultants on the number of 2,000 hours compared with the previ- 1,000 ous year. 0 16 17 18 19 20 16 17 18 19 20 16 17 18 19 20 16 17 18 19 20 Quarter Q 1 Q 2 Q 3 Q 4 OUTLOOK FOR 2021 The general uncertainty in the 25,281 economy as a consequence of the new and extended contracts global Covid-19 pandemic will – one every five minutes, on continue to affect Ework’s oper- average throughout the year. KEY INDICATORS ations, with a risk of reduced (SEK MILLION UNLESS OTHERWISE SPECIFIED) revenues. Ework has a positive view of the long-term potential 2020 2019 for continued growth and, as Net sales 12,238 12,621 was the case in earlier economic Operating profit 94.3 107.9 downturns, business opportu- Profit before tax 84.9 96.6 nities can open up that Ework is Profit after tax 69.3 75.3 well placed to make use of. Cash flow, operating activities 378.5 21.9 15,255 Previously announced Operating margin, % 0.8 0.9 consultants on assignment cost savings of SEK 50 million Equity/assets ratio, % 6.3 4.1 during the year. compared with 2019 are expected Earnings/share before dilution, SEK 4.02 4.37 to have achieved full effect during Earnings/share after dilution, SEK 4.02 4.37 2021. It is considered that reve- Max. number of consultants on nues and profitability could be assignment 10,542 10,731 improved in 2021 compared with Average number of employees 283 306 2020. Sales per employee 43.2 41.2 ANNUAL REPORT 2020 EWORK GROUP 5 CEO’S STATEMENT A Enhanced digital offering secures the future for Ework The digitalisation of Ework’s operations in recent years has meant both hard work and significant investments. The dividend came in 2020, when the whole world was forced to make a rapid transition to work remotely. Our newly developed Verama platform, in which purchasers and vendors of consultancy services can interact directly with each other, was an instant success and resulted in a number of large new assignments. An enhanced digital offering means that we continue to win market shares, while successful cost savings mean that we have been able to cope with the dip in the market caused by the pandemic. One important lesson learned is that our primary success factor is our innovative ability. It is also a precondition for us to secure our position as a leading consultant broker. Illustration: Madelen Lindgren 6 EWORK GROUP ANNUAL REPORT 2020 t present, most people are no cost effects in a way that quickly longer tied to a physical work- creates value for clients, even in place. This is one effect of the times when the economy is weak. technological development that We also introduced Verama’s Our goal remains we have long been predicting and vendor portal, the part of the new unchanged, to be preparing for. In 2020, this transi- digital platform that is aimed at tion became a stark reality, as the Northern Europe’s consultants and consultant pandemic closed down borders leading consultant vendors. Verama radically Aand workplaces overnight, and broker. improves consultants’ opportuni- remote working became the new ties to find relevant assignments normal. ZORAN COVIC with the aid of a modern interface, One of my main objectives in CEO, EWORK GROUP. new and enhanced functionality recent years has been to prepare and AI support. A new app was also Ework ahead of an increased digi- launched for consultants, in which talisation of the workplace and they can see and look for assign- to make use of the potential that ments via their mobile. this means for the business. It has At the end of 2020, Ework had resulted in a bold initiative in new 10,020 consultants on assign- platforms and tools, with the aim ment. It does not cost anything to of rationalising the management be part of Ework’s network and of assignments for both clients 10,020 to look for assignments, although and consultants. The starting Number of consultants on since 2020 consultants have point has been, and remains, assignment at the end been billed a small fee for new combining all our knowledge of of 2020. assignments. This sum includes the consultancy market with the all the service that Ework opportunities provided by digital provides to consultants. This new technology. We have now come a source of revenue will strengthen long way with these investments our future opportunities to and can start to benefit from the further develop the business.