Slide 1: Zalaris ASA Interim report | Fourth quarter 2014
Zalaris ASA Interim report | Fourth quarter 2014 Thank you for joining us. The presentation will begin shortly. Please note: • Use the provided phone based dial-in instructions for listening to the presentation; • All attendees will be in muted mode during the presentation; • We will open up for que
Slide 2: Interim report | Fourth quarter 2014
Interim report | Fourth quarter 2014 Oslo, 26. February 2015
Slide 3: Presenters and agenda
Presenters and agenda Agenda • Highlights for the quarter Hans-Petter Mellerud • Recent business acquisition Founder and CEO • Financial performance • Regional trends Nina Stemshaug CFO • Outlook © 2015 2014 Zalaris Page: 3
Slide 4: A strong quarter
A strong quarter Strong financials Strategic milestones • Revenues in Q4 2014 grew by • We are delivering on our growth 34.8 % compared to same period last ambitions for 2014 year • Swedish Global Fortune 500 • Outsourcing revenues increased company signed up as Nordic HR significantly from Q3 14 an
Slide 5: Revenue growth according to expectations with y-o-y quarterly revenue up 35% and full year 24%
Revenue growth according to expectations with y-o-y quarterly revenue up 35% and full year 24% Revenues in fourth quarter Revenues full year Revenues Revenues in NOK million in NOK million • Strong revenue 350 326 • Delivering on our 97 100 growth; 35% YoY growth ambitions 300 262 80 • High activity
Slide 6: Growth is profitable with operating EBIT full year on positive trend to 9,7%
Growth is profitable with operating EBIT full year on positive trend to 9,7% EBIT in fourth quarter EBIT full year EBIT1 EBIT1 in NOK million in NOK million • Margin somewhat 35 • Profitable growth 11,8 31,7 12 lower than last year continues 10,1 due to periodization 30 10 effects in 2013 24,6 • Mai
Slide 7: Recurring revenue from HR Outsourcing remains main driver for growth
Recurring revenue from HR Outsourcing remains main driver for growth HR Outsourcing Consulting Cloud services Revenues Revenues1 Revenues in NOK million in NOK million in NOK million 93 3,9 4,3 67 1,1 0,6 Q4 13 Q4 14 Q4 13 Q4 14 Q4 13 Q4 14 • Main engine for growth, • Consulting revenue more • Q4 14
Slide 8: Revenue from outside Norway increased to 56% in Q4
Revenue from outside Norway increased to 56% in Q4 HR Outsourcing revenues 100 • Norway revenues in Q4 14 Baltics & Poland 2 % 90 increased 11 % from Q3 due to full effect of new contract, change 80 Finland 13 % orders and revenue recognition on 70 projects Denmark 22 % 60 • Growth in Denmark (48 %)
Slide 9: Strong cash flow from operating activities increased cash with NOK 13.2 million in Q4
Strong cash flow from operating activities increased cash with NOK 13.2 million in Q4 Equity • Cash flow from operating activities in Q4 14 was NOK 15.9 million In NOK million at end of quarter • NOK 75.2 million cash and cash 100 93 equivalents at the end of Q4, up from 68.8 million three months be
Slide 10: Selected by global Swedish Fortune 500 to provide Nordic transactional HR services
Selected by global Swedish Fortune 500 to provide Nordic transactional HR services • 20’000 employees in Sweden, Finland, Denmark and Norway • 16 positions to transfer to Zalaris on 1. April 2015 • Full transformation based on implementing Zalaris’ SAP Human Capital Management based best practice pr
Slide 11: Contract backlog has increased considerably since IPO reflecting contract renewal mechanics and low churn
Contract backlog has increased considerably since IPO reflecting contract renewal mechanics and low churn • Increased contract reserve from top 20 customers • Combination of new agreements and automatic renewals © 2015 2014 Zalaris Page: 11
Slide 12: Decision to set up own offshore operations driven by balanced global delivery ambition
Decision to set up own offshore operations driven by balanced global delivery ambition • Existing Chennai, India based operations with approx. 30 employees have been hosted and managed by local partner • Agreement with partner made to set up own service center with floor space to accommodate between
Slide 13: Increased focus on aligning to new business models gives results as exemplified with our mobile solution
Increased focus on aligning to new business models gives results as exemplified with our mobile solution • Improved travel expense functionality supporting fully digitized travel expense process for users on the go • Four of our existing customers have signed agreements for implementing the mobile s
Slide 14: A number of factors are driving a positive growth outlook
A number of factors are driving a positive growth outlook • Outsourcing continues to increase in favor as an integrated services model1 • Economic conditions motivate companies to look for cost reductions and ways to maximize the value of their Human Capital • Cloud computing focus is driving increa
Slide 15: Four focus areas for 2015 supporting growth and cost reduction targets
Four focus areas for 2015 supporting growth and cost reduction targets • Focus on improving existing customer satisfaction through focus on Net Promoter Score development • Strengthen our market position in SE, DK and FI and ambition to expand further into Europe • Sell cloud based additional servic
Slide 16: End of lock up period for pre IPO investors strengthened institutional investor base with long-only funds
End of lock up period for pre IPO investors strengthened institutional investor base with long-only funds Pre IPO (Mellerud, CEO) Pre IPO (ex. NCP IV) Pre IPO (Hoegh) New Pre IPO (Horn) Pre IPO (Danielsen) Pre IPO (NCP IV) © 2015 2014 Zalaris Page: 16
Slide 17: To conclude - we remain positive to meet the expectations that we have created
To conclude - we remain positive to meet the expectations that we have created • Long term focus on customer satisfaction • Actively nurturing own Human Capital through various initiatives • Continuous effort in optimizing operating model including the use of own offshore capacity • Continue explore
Slide 18: 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 19: Questions?
"\7 2ALARIS Questions?
Slide 20: 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