Zalaris Asa · OSL:ZAL
Zalaris Asa — Q4 2018 Earnings Presentation
22 slides from Zalaris Asa's earnings presentation, Feb 28, 2019
Slide 1: Interim report | Full year and fourth quarter 2018
– Value people Interim report | Full year and fourth quarter 2018 28 February 2019
Slide 2: Presenters and agenda
Presenters and agenda 1. Highlights 2. Financial performance in Q4/18 and full year 2018 3. Market update and conclusion Hans-Petter Mellerud Nina Stemshaug Founder and CEO CFO © zalaris 2019 Page 2
Slide 3: Year of integration, enabling pan-European reach
Highlights | Strategy and operations Year of integration, enabling pan-European reach • Acquisition-driven growth in 2018 • Full year revenues of NOK 745 million in 2018, up 29 percent year-over-year due to businesses acquired at the end of 2017 in Continental Europe and the UK. • Moving in the righ
Slide 4: Improved profitability over the past quarters
Highlights | Financial Improved profitability over the past quarters • 2018 group revenues of 745 million, an Key figures FY increase of 29 percent Y/Y related to M&A activities. NOK Million 2018 2017 Revenues 745 577 • Q4/18 revenues amounted to NOK 194 million, a marginal growth compared to Adjust
Slide 5: Revenue distribution quite stable in Q4/18
Geographical revenue split Revenue distribution quite stable in Q4/18 Distribution of revenues by geography (in per cent) 3 4 2 3 4 • Nordics & Baltics the largest region, delivering 60 percent of the company’s 40 38 40 41 36 revenues. • Revenues in Nordics & Baltics driven by higher cloud revenues
Slide 6: Key financials
Key financials Fourth quarter 2018
Slide 7: Quarterly revenues in line with Q4/17
Group revenues Quarterly revenues in line with Q4/17 Group revenues (in NOK million) • Revenues for Q4/18 amounted to 194 million, 194 194 marginally higher than Q4/17. 186 189 176 • Although cross-selling of products and services increased in Q4/18, the benefits of the acquisitions of sumarum AG an
Slide 8: Improved profitability in Q4/18 vs Q4/17
Group adjusted EBIT Improved profitability in Q4/18 vs Q4/17 Group adjusted EBIT (in NOK million) ▪ Group adjusted EBIT for Q4/18 amounted to 10 million (9.4 million). Corresponding EBIT margin of 5.2 % 11,3 (4.8%). 9,4 10,0 ▪ Profit margins improved in Q4/18 vs Q4/17. Efforts throughout 2018 proves
Slide 9: Cash balance almost unchanged compared to Q3/18
Financial position Cash balance almost unchanged compared to Q3/18 Cash and cash flows Q4/18 Changes in balance sheet and cash flows (in NOK million) 120 ▪ Increase in total assets by 30.7 million during -3,8 3,3 Q4/18 to 725.6 million at 31 December 2018 100 -1,3 ▪ Increase in equity from 95.6 mill
Slide 10: Key financials | Business segment
Key financials | Business segment Fourth quarter 2018 Segment reporting includes only external revenues and external profit
Slide 11: Revenue growth in the Cloud Services segment
Revenues by segment Revenue growth in the Cloud Services segment HR Outsourcing Consulting Cloud Services (NOK million) (NOK million) (NOK million) ▪ Q4/18 revenues amounted to 106.5 ▪ Revenues declined by 4.0 million ▪ The Cloud services segment’s million (105.5 million). Slight to 50.1 million in
Slide 12: Improved margins in Consulting and Cloud Services
Adjusted EBIT by business segment Improved margins in Consulting and Cloud Services HR Outsourcing Consulting Cloud Services (NOK million) (NOK million) (NOK million) ▪ EBIT amounted to 7.1 million ▪ EBIT amounted to 10.8 (1.9 ▪ EBIT of 7.3 million (1.3 million) in (14.4 million) in Q4/18. million)
Slide 13: Market update and concluding remarks
Market update and concluding remarks
Slide 14: Everest cites Zalaris a Star Performer in Multi Process Outsourcing
Everest cites Zalaris a Star Performer in the Multi Process Outsourcing Provider Landscape as only European HQed player © zalaris 2019 Page 14
Slide 15: We are part of fast growing markets
We are part of fast growing markets. How can we take and increase our share? Global Market European Market Source: Everest Group © zalaris 2019 Page 15
Slide 16: Everest estimates Zalaris has approximately 9% of HRO deals
Everest estimates Zalaris to have approximately 9% of the number of HRO deals in the European Multi-process HR market • Multi-process human resources outsourcing (MPHRO) market growth 6- 7% • Zalaris with a strong footprint in North and Central Europe with 9 % share of the European market MPHRO mark
Slide 17: Our target is to continue 18 years of uninterrupted growth
Our target is to continue 18 years of uninterrupted growth 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q2’18 renewed BPO in UK Selected major contracts won extends Revenues (NOKm) 156 745 397 421 374 326 226 262 202 213 218 136 168 47 60 81 2 6 19 36 200
Slide 18: Tuning organization to focus on customer needs
Tuning organization with goal of focusing on customer needs, addressing multi country growth ambition and reducing overhead Centrally managed support functions: • F&A • HR • IT and Infrastructure • Marketing and Communications Group organization for Managed Services Professional Services to define b
Slide 19: Returning to customer focus – and growth
Concluding remarks Returning to customer focus – and growth • Strong growth in 2018, reflecting the two acquired businesses in Germany and the UK late 2017. • The fourth quarter of 2018 marks the end of an exciting and demanding year for Zalaris. Extensive efforts have been made to integrate our new
Slide 20: 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 21: We open for questions
“Ay ZALARIS We open for questions
Slide 22: Thank you!
Zalaris ASA Thank you! PO Box 1053 NO-0218 Oslo Hans-Petter Nina Stemshaug Mellerud CEO & Founder CFO +47 4000 3300 hans-petter.mellerud@zalaris.com nina.stemshaug@zalaris.com www.zalaris.com