Zalaris Asa · OSL:ZAL
Zalaris Asa — Q3 2015 Earnings Presentation
15 slides from Zalaris Asa's earnings presentation, Oct 28, 2015
Slide 1: Interim report | Third quarter 2015
Interim report | Third quarter 2015 Oslo, 28 October 2015
Slide 2: Presenters and agenda
Presenters and agenda Agenda • Highlights for the quarter Hans-Petter Mellerud • Financial performance Founder and CEO • Regional trends • Outlook Nina Stemshaug CFO © 2015 2014 Zalaris Page: 2
Slide 3: Q3 2015 at a glance: Strong growth, positive outlook
Q3 2015 at a glance: Strong growth, positive outlook Financial indicators Strategic milestones • Revenue growth of 10.7 % in Q3 and • New Indian delivery center up and 22 % year to date, both compared to running. 50 new colleagues on board same periods last year • Long term contract with Norwegian •
Slide 4: Growth continues in all business segments
Growth continues in all business segments Operating revenues In NOK million • Total group revenues grew by 100 10.7 % to NOK 92.6 million Other 1 % 90 (83.6 million in Q3 14), 80 Finland 13 % reflecting recent HR Denmark 16 % Outsourcing contracts 70 60 • Growth in all business Sweden 18 % segments
Slide 5: Operating profit in line with expectations
Operating profit in line with expectations Operating profit EBIT in NOK million Profit margin in % 11,7 • NOK 6.3 million operating profit in 12 line with expectations 10 9,9 • Increase in operating costs driven by 8,9 new service centers, people transfer 8,3 8 related to new business and group 9.9
Slide 6: HR Outsourcing segment: Steady y-o-y revenue growth, seasonal variations
HR Outsourcing segment: Steady y-o-y revenue growth, seasonal variations Operating revenues Operating profit and margin • Growth driven by go-live of new • Seasonal effects mark Q3 2015 outsourcing customers: Statoil and and Q2 2014 TeliaSonera in Norway, Ericsson in • Costs related to transfer of t
Slide 7: HR Outsourcing segment: Winning new customers, improving productivity
HR Outsourcing segment: Winning new customers, improving productivity Employees served (1000’) Employees and productivity • Stable growth indicating ability to • Zalaris headcount slightly down win new outsourcing customers • 684 employees served per Zalaris • An average 190K employees FTE in Q3 201
Slide 8: Positive cash flow from operations, strong financial position
Positive cash flow from operations, strong financial position Cash and cash flows Q3 2015 • Cash flow from operating activities in Q3 15 was NOK 6.2 million In NOK million 60 • Investments mainly related to 6.2 6.2 1.4 product development, functionality improvements and establishment of Chennai serv
Slide 9: A key focus area is reducing operating costs through utilization of our new Chennai delivery center
A key focus area is reducing operating costs through utilization of our new Chennai delivery center • Located in modern office facilities provided by SP InfoCity in Chennai, India • Capacity: 138 seats in one shift – possible with 2 shifts • Current utilization: 50 employees • 100 % of employees wit
Slide 10: Our focus is in line with our customers' needs
Our focus is in line with our customers’ needs © 2015 2014 Zalaris Page: 10
Slide 11: The market acceptance for cloud delivered Business Process as a Service is a positive driver for Zalaris
The market acceptance for cloud delivered Business Process as a Service is a positive driver for Zalaris © 2015 2014 Zalaris Page: 11
Slide 12: Concluding remarks: Strong growth. Positive outlook
Concluding remarks: Strong growth. Positive outlook • Growth continues Year-to-date numbers show continued growth in revenues and profit. Productivity improvements set to continue with addition of new delivery centers • Investment in product development to expand range of services and functionality,
Slide 13: 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 14: Questions?
Questions?
Slide 15: Thank you!
Thank you! Hans-Petter Mellerud CEO & Founder Zalaris ASA 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