Zalaris Asa · OSL:ZAL
Zalaris Asa — Q1 2016 Earnings Presentation
17 slides from Zalaris Asa's earnings presentation, Apr 28, 2016
Slide 1: Interim report | First quarter 2016
Interim report | First quarter 2016 Oslo, 28 April 2016
Slide 2: Presenters and agenda
Presenters and agenda Agenda • Highlights for the first quarter 2016 Hans-Petter Mellerud • Financial performance Founder and CEO • Regional trends • Outlook Nina Stemshaug CFO © 2016 2014 Zalaris Page: 2
Slide 3: A good start of the year. Prospects on track.
A good start of the year. Prospects on track. Positive pipeline of new opportunities Financial indicators Strategic milestones • Q1 2016 revenues up 4.6 % from 2015 • Successfully launched payroll services for Fortune 500 in Sweden and Finland on • EBIT reached NOK 9.3 million, Zalaris’ platform cor
Slide 4: Q1 2016 revenues increased 4.6% from last year
Q1 2016 revenues increased 4.6 % from last year • Cloud Services business segment Operating revenues main reason for year-on-year growth • Q1 2016 up 4.1 % compared to previous quarter – NOK 3.3 million increase in HR Outsourcing – NOK 2.1 million growth in Cloud Services • HR Outsourcing segment re
Slide 5: Operating profit in line with expectations
Operating profit in line with expectations • Operating profit in Q1 2016 was Operating profit NOK 9.3 million or 9.4 % before extraordinary costs. Profit margin in % • Q1 2016 includes a NOK 1.6 million charge related to initiative to identify growth 10.5 % 9.4 % opportunities • Net financial items
Slide 6: HR Outsourcing segment: Revenue in line with Q1 2015, increased from Q4 2015
HR Outsourcing segment: Revenue in line with Q1 2015, increased from Q4 2015 Operating revenues Operating profit and margin • HR Outsourcing revenues were stable • Lower level of variable revenue impact Q1 2016 vs Q1 2015 operating profit margin for the quarter • Launch of HR and payroll services fo
Slide 7: Major projects on track - employees served reach 196'
Operational key performance indicators Major projects on track - employees served reach 196’ Employees served (1000’) Employees and productivity • Number of employees served by Zalaris • Stable growth in productivity: Average systems relatively stable during the past number of employees served per q
Slide 8: Positive cash flow from operations, strong financial position
Positive cash flow from operations, strong financial position Cash and cash flows Q4 15 • Cash flow from operating activities in Q1 2016 was negative NOK 14.8 million • Impacted by increased accounts receivables, partly a result of milestone invoicing • NOK 51.2 million cash and cash equivalents at
Slide 9: Major projects delivered in Q1 exemplifying Zalaris capability
Major projects delivered in Q1exemplifying Zalaris capability • Telecom infrastructure with HQ in • Railway operations • Telecom the Nordics • Approx. 6’000 employees in • Approx. 12’000 employees in • Approx. 20’000 employees in Norway Norway, Sweden and Denmark Sweden, Finland, Denmark and • 5 yea
Slide 10: Analysts and advisors increase Zalaris visibility as shown with Everest Groups coverage
Analysts and advisors increase Zalaris visibility as shown with Everest Groups coverage Zalaris a Major Contender in Multi Zalaris as 4th in terms of # Multi Process HR Deals Country Payroll (MCPO) by Everest in EMEA by Everest Everest Group in March 2015: • “Multi-Country Payroll Outsourcing (MCPO)
Slide 11: Analyst firm NelsonHall positions Zalaris as one of the Leaders in Multi Process HR Outsourcing
Analyst firm NelsonHall positions Zalaris as one of the Leaders in Multi Process HR Outsourcing (MPHRO) “As organizations adopt cloud HR technology, HR BPaaS capabilities necessarily become increasingly important along with corresponding cloud services. Zalaris has established itself as a leader for
Slide 12: Digital disruption and Cloud are key drivers supporting Zalaris business model
Digital disruption and Cloud are key drivers supporting Zalaris business model directly or indirectly IDC Futurshape predictions: Prediction 1: Digital Transformation — By the End of 2017, Two-Thirds of the CEOs of Global 2000 Enterprises Will Have Digital Transformation at the Center of Their Cor
Slide 13: Positive development of actively worked opportunities over the last 12 months
Positive development of actively worked opportunities over the last 12 months Source: Annual contract value of opportunities with probability higher than 5% that are actively being sold to by Zalaris in Zalaris CRM © 2016 2014 Zalaris Page: 13
Slide 14: Concluding remarks: Good start of the year
Concluding remarks: Good start of the year • Continued forcus on costs through xShoring We are continuing to realize improvements from utilizing our near and offshore centers. In Q1 2016 14 % of produced hours were delivered from Chennai, India, climbing towards 20 % by the end of 2016 • Investing i
Slide 15: Important Notice
Important Notice This Presentation includes certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements relate to future circumstances and results and other statements that are not
Slide 16: Questions?
Questions?
Slide 17: Thank you!
Thank you! Hans-Petter Mellerud CEO & Founder Zalaris HR Services AS hans-petter.mellerud@zalaris.com PO Box 1053 Nina Stemshaug NO-0218 Oslo CFO Tel: +47 4000 3300 nina.stemshaug@zalaris.com www.zalaris.com