Acando Interim report January 1 - March 31, 2018

First quarter January 1–March 31, 2018

• Net sales totaled SEK 703 m (621)
• Operating profit SEK 76 m (75) Operating profit before non-recurring items SEK 80 m
• Operating margin 11% (12)
• Profit after tax was SEK 59 m (54)
• Earnings per share were SEK 0.56 (0.52)
• Cash and cash equivalents totaled SEK 44 m (84)

Statement by Carl-Magnus Månsson, CEO

In many ways, 2018 started the same way that 2017 ended. Demand for Acando’s services remained strong in a market driven by demand for innovation, increased data-driven customer insight and, especially, by extremely high activity in terms of using technology to realize completely new possibilities for efficiency. Our position in such transformation-driven segments as retail, the public sector and manufacturing generates new opportunities on a daily basis. We are continuing to grow with sustained profitability in a strong market. We grew 13 percent year-on-year and earnings are up slightly more than 6 percent.

During the quarter, we completed the establishment of several new operational activities in new geographies to thereby continue to develop and adapt our offering to the fastest-growing market sectors.

The acquisition of Anywhere.24 in Germany, which was completed on January 1, 2018, fully established Acando’s already strong Dynamics 365 operations across Germany. The area is one of Acando’s fastest growing and by collaboration across national borders, we expect to also capture a leading position in the German market.

In 2017, Acando acquired the service-design agencies Transformator Design and Daytona. Together with two of Acando’s units, the agencies have now been integrated under the itch brand. The itch brand has already been established as Acando’s own innovation agency and, going forward, it will become Sweden’s largest business design and development studio. Essentially, Acando’s business is based on creating unforgettable customer experiences. We have been particularly good at delivering the above in relation to our customers — now we want to come closer to the end customer experience. Unifying our agencies’ extensive expertise under the itch brand will be a natural part of continuing to deliver impact and value across the chain. Itch currently has 160 employees and the studio is represented in Stockholm, Gothenburg, Malmö and Oslo. There is also some representation in Germany and further expansion plans for Europe.

2018 started with exciting projects, many new employees and a strong sense of being very central for our customers. The only certainty is that we will continue to develop and our ability to change in pace with our operating environment will be decisive to our success. We believe the world will increasingly be driven by technology but that understanding human behavior will always be key to creating the best solutions. It’s what we are — Technology Driven and Behavior Centric.

This report comprises information that Acando AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. This information was submitted through the agency of the contacts for publication on May 8, 2018 at 08:00 p.m. (CET).

For further information, please contact:
Carl-Magnus Månsson, President and CEO, +46 (0)8 699 70 00
Anneli Lindblom, CFO, +46 (0)8 699 70 00

Acando is a consulting company that leverages an equal balance of specialist technical expertise and human behavioral insight to innovate, streamline and mobilize organizations for sustainable change. The Group has approximately 2,000 employees allocated over five countries. Acando had sales of more than SEK 2.4 billion in 2017 and is listed on Nasdaq Stockholm.