Zalaris Asa · OSL:ZAL

Zalaris Asa — Q1 2025 Earnings Presentation

26 slides from Zalaris Asa's earnings presentation, Apr 30, 2025

  1. Slide 1: Zalaris ASA Presentation of financial results Q1 2025

    30th of April, 2025 Zalaris ASA Presentation of financial results Q1 2025 © zalaris 2025

  2. Slide 2: Disclaimer

    Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. This presentation doe

  3. Slide 3: Agenda

    Agenda Today’s presenters Highlights Financial review Outlook Q&A Appendix: Company in brief Hans-Petter Mellerud Gunnar Manum CEO and Founder CFO © zalaris 2025

  4. Slide 4: Highlights

    Highlights © zalaris 2025

  5. Slide 5: Q1 2025: Another quarter of all time high revenue and adj. EBIT

    Q1 2025: Another quarter of all time high revenue and adj. EBIT Strong growth: Revenue increased 16.2% YoY to NOK 370 million High EBIT: adj. EBIT of NOK 52.1 million (14.1%), up from NOK 34.8 (10.9%) last year. Strong sales pipeline in both Managed Services and Zalaris Consulting (formerly Professi

  6. Slide 6: Good progress in sales to new names and existing customers

    Good progress in sales to new names and existing customers Managed Services • While deal signings started slowly, a significant Nordic payroll agreement covering 3,500 employees was finalized shortly after quarter-end. • The sales pipeline remains strong, with both expansions from existing clients a

  7. Slide 7: Managed Services grew 19% YoY to NOK 278m and 75% of total revenue

    Managed Services grew 19% YoY to NOK 278m and 75% of total revenue. Revenue** Managed Services NOK 277.8m (+19.4%) +19% 275.3 277.8 Revenue in Managed Services 270.3 grew by 19.4% YoY (+16.2% 253.7 growth YoY when adj. for 242.3 currency effects) 232.7 228.9 101% Net Revenue Retention 204.0 200.0 Yo

  8. Slide 8: Zalaris Consulting revenue was 7% higher YoY mainly from growth in APAC and Poland

    Zalaris Consulting revenue was 7% higher YoY mainly from growth in APAC and Poland Revenue** Zalaris Consulting (formerly Professional Services) Revenue in Zalaris NOK 91.5m (6.8%) Consulting was 6.8% higher 7% YoY (3.9% when adjusted 91.5 for currency effects). 87.9 89.0 Revenue increase is mainly

  9. Slide 9: Financial Review

    Financial Review © zalaris 2025

  10. Slide 10: Revenue increased by 16% for the quarter YoY in constant currency

    Revenue increased by 16% for the quarter YoY in constant currency Revenue NOK 370.2m (+16.2%) 16% 13% Revenue growth (as reported) 400 for the quarter YoY: +16.2% 370.2 360.2 350 Revenue growth +13.1% YoY in 318.5 constant currency* 300 MS +19.4% to NOK 278m 250 • Net retention of 101% 200 PS +6.8%

  11. Slide 11: Strong revenue visibility through 2025/26 - full annual effect of new BPO customers

    Strong revenue visibility through 2025/26 - full annual effect of new BPO customers should result in >14% revenue increase compared to revenue FY 2024 Revenue development based on signed MS contracts (NOKm) 345 Total annual revenue expected to increase by ~NOK 192m (+14%) vs. FY 2024 by Q1’26, based

  12. Slide 12: Another all-time high adj. EBIT for the quarter

    Another all-time high adj. EBIT for the quarter Adj. EBIT* (NOKm) and margin (%) Adj. EBIT NOK 52.1 (NOK 34.8m) +50% 14.1% 13.1% Adj. EBIT margin 14.1% (+3.2pp) 10.9% 10.9% EBIT and margin improvements from increased 8.8% revenue (lower unit cost) and operational improvements Germany (e.g. larger sh

  13. Slide 13: Condensed Profit and Loss

    Condensed Profit and Loss 2025 2024 2024 (NOK 1 000) Jan-Mar Jan-Mar Jan-Dec Revenue 370 150 318 518 1 346 282 License costs 28 046 25 007 108 074 % of revenue 7,6 % 7,9 % 8,0 % Personnel expenses 181 822 162 657 674 778 % of revenue 49,1 % 51,1 % 50,1 % Other operating expenses 88 424 82 354 347 64

  14. Slide 14: Operating cash flow increased by NOK 14m YoY

    Operating cash flow increased by NOK 14m YoY Development in cash balance (NOKm) -11.0 Cash flow from -6.3 -8.4 operating activities of -8.0 NOK 21.6m vs. NOK 74.1 -3.4 7.2m last year -23.7 -4.3 227.6 Cash balance as of 31 -3.2 221.8 March NOK 227.6m (+NOK 5.8m from Q4) Net interest-bearing debt of N

  15. Slide 15: Outlook

    © Zotrisarcapabioctsening © tis ere abeady serving © Zaats offcalocxtons mae ¢ © zaais 2005 @ zalaris

  16. Slide 16: Zalaris is well-positioned to benefit from macroeconomic uncertainties

    Zalaris is well-positioned to benefit from macroeconomic uncertainties • 2025 presents a complex global landscape, including growing macroeconomic uncertainties • Business model anchored in long-term contracts delivering essential services like payroll • Value proposition delivering cost savings and

  17. Slide 17: We start to see positive effects from AI Driving the Next Wave of Transformation

    We start to see positive effects from AI Driving the Next Wave of Transformation • In early 2024, launched strategic initiative defining roadmap for leveraging artificial intelligence to enhance customer-facing innovation and internal efficiency. • Started to see meaningful results—from reducing sys

  18. Slide 18: On track to overdeliver on NOK 1.5bn target for 2026; NOK 2bn by 2028

    On track to overdeliver on NOK 1.5bn target for 2026. Now setting sights on reaching revenue of NOK 2bn with adj. EBIT of 13-15% by 2028. Key growth and margin initiatives Revenue development and revenue target Preferred partner for multi-country 2,000 payroll and transactional HR NOKm 1 services to

  19. Slide 19: Summary: Q1 another all-time high revenue and EBIT

    Summary: Q1 another all-time high revenue and EBIT. • Revenue grew 16.2% to NOK 370 million for the quarter and well positioned to deliver revenue target of 1.5 billion in 2025 • Pipeline with large deals continue developing positively supporting maintaining our 10% growth target in the coming years

  20. Slide 20: Q&A

    Q&A © zalaris 2025

  21. Slide 21: Appendix: Company in brief

    Appendix: Company in brief Simplify work life. Achieve more. © zalaris 2025

  22. Slide 22: Payroll & HR solutions that enable digital organizations

    Payroll & HR solutions that enable digital organizations Zalaris is a leading European provider of global payroll and human capital management solutions delivered through software as a service, 1,500,000 ~1,100 340,000+ outsourcing, or consulting delivery models Employees served monthly Zalaris empl

  23. Slide 23: Zalaris' Product offering covering the full employee life cycle

    Zalaris’ Product offering covering the full employee life cycle HR system Benefits Country specific Employee self Organizational Employee Co2 Document management locations services structures footprint archive Payroll Cloud Global Payroll Payroll payroll payroll hr-automation HR-transformation Workf

  24. Slide 24: Services delivered by two integrated business units with most revenues being recurring

    Services delivered by two integrated business units with most revenues being recurring of nature Managed services (MS) Professional services (PS) Zalaris’ cloud solution and comprehensive payroll and HR outsourcing services Consulting services including delivery of traditional consulting projects as

  25. Slide 25: Diversified and large customer base comprising blue-chips across multiple industries

    Diversified and large customer base comprising blue-chips across multiple industries Managed Services Professional Services Private and public >1,000 employees >2 countries Software agnostic >1,000 employees SAP integration sector BERLIN Bank, Insurance & Financial services Health & Life Science Inf

  26. Slide 26: Thank you!

    We simplify HR and payroll administration, and empower you with useful information so that you can invest more in people. Thank you! Zalaris ASA | +47 4000 3300 | www.zalaris.com Simplify work life. Achieve more. © zalaris 2025

Zalaris — Q1 2025 Earnings Presentation on 6ix