Acando : Interim Report January 1 - June 30, 2016

SECOND QUARTER APRIL 1 - JUNE 30, 2016

• Net sales of SEK 578 m (566)
• Operating profit SEK 62 m (38)
• Operating margin 10.7% (6.7)
• Profit after tax was SEK 62 m (27)
• Earnings per share were SEK 0.60 (0.27)

ACCUMULATED JANUARY 1 - JUNE 30, 2016

• Net sales of SEK 1,104 m (1,124)
• Operating profit SEK 96 m (85)
• Operating margin 8.7% (7.5)
• Profit after tax was SEK 86 m (56)
• Earnings per share were SEK 0.83 (0.54)
• Cash and cash equivalents totaled SEK 64 m (36)

Statement by Carl-Magnus Månsson, CEO

The operations posted a positive trend in all geographies during the quarter, driven by continued confidence among both established and new customers. A gradual increase in utilization rates, combined with efficiency measures and more working days in the quarter, led to significant margin improvements. We noted the same effect with rising margins in all countries over the first six months. Our sales growth also continued in Germany and Norway.

During the quarter, we launched Itch, a digital innovation agency comprising some of the leading digital profiles in Sweden, to unleash the power of true digital innovation combined with Acando's total expertise in strategic change. We believe that our history, culture and ability to create lasting value make us unique, and our ambition to take a leading position in a world of opportunities remains firm. To succeed with this mission, we must continue to adapt our offering and develop our expertise in line with the needs around us.

We can now see the effects of our changes over the past two years in the form of a clearer digital offering, a strong and comprehensive capability around business system implementation and management consultancy operations that form an integral part of our total offering. We have adjusted the structure of our delivery centers and chosen to focus on the Baltics, and created a clear operational focus to drive our customer interaction and delivery processes.

The proportion of project-based deliveries is growing and customers are increasingly seeing Acando as an alternative, due to our high level of efficiency and ability to drive full-service assignments. Several customers have commented on how our consultants are taking personal responsibility far beyond the limits of their own assignments and we are proud of the culture we are creating together, and recreating in our assignments. Our Banking and Finance focus is growing, driven by our ability to lead large-scale transformations. A major trading Group has engaged us to build a new e-commerce solution based on efficient delivery, and we are creating a collaboration solution for one of Sweden's largest industrial companies based on our ability to understand unique conditions. We have created a structure that enables growth and continued operating efficiency enhancement, and although we are proud of the improvements we see, we are not satisfied. We can, and want, to do more!

Attracting talent is a prerequisite for success and Acando needs to continue recruiting in all areas. Acando's strategy is to create tomorrow's leading consultants through a well-developed trainee program. We are proud that Universum has nominated Acando as 'Employer Branding Company of the Year.'

This report comprises information that Acando AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 a.m. CET on August 16, 2016.

For further information, please contact:
Carl-Magnus Månsson, President and CEO [phone]
Anneli Lindblom, CFO [phone]

Acando is a consulting company whose business concept is, in partnership with its customers, to create business value by enhancing and streamlining processes, organizations and digital solutions. We stand out due to our ability to combine skills in strategy and business operations with sound technical expertise and deep understanding of how organizations function. The Group has approximately 1,600 employees allocated over five countries. Acando had sales of close to SEK 2 billion in 2015 and is listed on the Nasdaq Stockholm.

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