Slide 1: Interim report | Second quarter and first half year 2017
Interim report | Second quarter and first half year 2017 Oslo, 16 August 2017
Slide 2: Presenters and agenda
Presenters and agenda Agenda • Recent highlights Hans-Petter Mellerud • Financial performance in Founder and CEO second quarter and first half of 2017 • sumarum acquisition Nina Stemshaug • Outlook CFO © 2017 2014 Zalaris Page: 2
Slide 3: Growth continued in a milestone quarter for Zalaris
Growth continued in a milestone quarter for Zalaris Financial indicators Strategic milestones and trends • Q2/17 revenues of 127 million represent • Acquisition of sumarum AG completed, an increase of 33 % from Q2/16. combination of business well underway, opening new markets for Zalaris • Revenues
Slide 4: Significant increase in number of employees served due to acquisition of sumarum
Significant increase in number of employees served due to acquisition of sumarum Number of employees served (1000’) 300 272 250 • Number of customer employees served indicates volume of transactions and 200 200 201 203 services delivered by Zalaris. The scope 200 of services provided varies for each
Slide 5: Operational key performance indicators, efficiency on par y-o-y
Operational key performance indicators, efficiency on par y-o-y FTEs and productivity • Average number of employees served HR Outsourcing per FTE (full time equivalent) by HR Outsourcing was 620 in Q2/17, 400 850 slightly down from previous quarters, on par with Q2/16 350 800 • Increase in local res
Slide 6: Q2 revenues increased 8% year-on-year. Cloud business continues to grow in importance
Q2 revenues increased 8 % year-on-year. Cloud business continues to grow in importance • Group revenues in Q2/17 was 126.9 Operating revenues million, including 24 million from the acquired sumarum group 140 • Excluding sumarum y-o-y revenue growth 130 127 for Zalaris was 7.9 %, while Q2/17 compared
Slide 7: sumarum acquisition has opened new markets for Zalaris
sumarum acquisition has opened new markets for Zalaris Q1/17 revenues by geography Q2/17 revenues1 by geography Other Other FIN 4% FIN 4% 11 % NOR 14 % NOR 33 % DEN 13 % 41 % DEN 16 % 19 % 25 % 20 % DACH2 SWE SWE 1 sumarum revenues included from closing of transaction on 18 May 2 DACH = Germany, Aus
Slide 8: Solid revenue and profit growth for the combined company in H1/17
Solid revenue and profit growth for the combined company in H1/17 H1/17 vs H1/16 pro forma revenues for H1/17 vs H1/16 pro forma EBIT for the the combined entity* combined entity* • The revenue growth for the combined entity was 15.4 per cent in H1/17 vs H1/16*. • sumarum acquired two companies Aug/
Slide 9: Q2/17 operating margin slightly down, reflecting normal seasonal variations
Q2/17 operating margin slightly down, reflecting normal seasonal variations Group operating profit1 • Operating profit for Q2/17 was 7.2 million, with profit margin of 5.7 %, reflecting 12,4 normal season variations. 12 10,7 • Operating expenses was 130.5 million, of which 22.7 million was attributa
Slide 10: Cloud services segment: Consistent and strong growth in demand
Cloud services segment: Consistent and strong growth in demand Revenues per quarter • Consistent and strong demand for cloud services 20 shift revenue composition for 18 Zalaris. 16 • Significant revenues growth 14 up to NOK 18.9 million (NOK 12 6.0 million) in Q2/17 (NOK 10 14.5 million ex. sumarum
Slide 11: HR Outsourcing: Growth in y-o-y revenues and operating profit
HR Outsourcing: Growth in y-o-y revenues and operating profit. Seasonal variations as usual Operating revenues Operating profit and margin • HR Outsourcing segment revenue grew • Operating profit improved in nominal terms by 5 % y-o-y. and as a percentage of revenues • This growth is fully attributa
Slide 12: Positive cash flow from operations, strong financial position
Positive cash flow from operations, strong financial position Cash and cash flows Q2/17 • Acquisition of sumarum, partly financed by debt and new equity, had significant impact on financial position and liquidity. • Total assets at 30.6.17 was 431 million compared with 190 million three months befor
Slide 13: Bringing significant volumes to the Zalaris customer portfolio
Bringing significant volumes to the Zalaris customer portfolio • 70 000+ employees per month receiving sumarum outsourcing services • 1 million+ employees per month receiving payroll from customers’ on premise SAP Payroll solutions where sumarum is responsible for application maintenance © 2017 2014
Slide 14: sumarum services and products cover the whole specter of SAP HCM and SuccessFactors solutions
sumarum services and products cover the whole specter of SAP HCM and SuccessFactors solutions sumarum Solutions sumarum services sumarum tools sumarum academy - Consulting – HRO and Cloud • SAP HCM and • HR and Payroll • SAP Document • Education center Payroll Outsourcing management • Education • An
Slide 15: Synergies focus on driving growth
Synergies focus on driving growth • Expanding services and support to existing Zalaris customers in the German-speaking market • Increased organic growth from access to larger market • Leverage Zalaris scalable cloud concept to offer packaged solutions to defined segments and customer groups • Cost
Slide 16: Concluding remarks: Growth continued in a milestone quarter for Zalaris
Concluding remarks: Growth continued in a milestone quarter for Zalaris • Acquisition of sumarum AG completed, combination of business well underway as new revenue opportunities and markets are opening up in German-speaking countries. • Pipeline of new business remains strong. Zalaris has grown, and
Slide 17: 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 18: We open for questions
We open for questions
Slide 19: 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