Zalaris Asa · OSL:ZAL
Zalaris Asa — SEB Nordic Seminar 2023
20 slides from Zalaris Asa's conference presentation, January 2023
Slide 1: Zalaris ASA Leading Provider of Payroll and HR Solutions and Services overview
January 2023 Zalaris ASA Leading Provider of Zalaris Payroll and HR Company Solutions and Services overview
Slide 2: Agenda
Agenda Introduction Products and operations Financials Business plan “The Great Reset”
Slide 3: Introduction
Introduction Simplify work life. Achieve more.
Slide 4: Payroll & HR solutions that enable digital organizations
Payroll & HR solutions that enable digital organizations One global IT platform with local presence Geographical footprint Zalaris is a leading European provider of payroll and human capital management solutions delivered through software as a service, outsourcing, or consulting delivery models Supp
Slide 5: Zalaris’ Product offering covering the whole employee life cycle
Zalaris’ Product offering covering the whole 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 Work
Slide 6: Services delivered by two integrated business units with majority recurring revenues
Services delivered by two integrated business units with the majority of revenues being recurring of nature Managed services (MS) Professional services (PS) Zalaris’ cloud solution and comprehensive payroll and HR outsourcing Consulting services including delivery of traditional consulting services
Slide 7: Diversified customer base across a wide range of industries
Diversified customer base across a wide range of industries Customer traits Bank, Insurance & Financial services Health & Life Science Infrastructure & Transportation Managed services >1,000 employees >2 countries IT, Technology & Telecom Offshore & Energy Product & Industrials Software agnostic Pro
Slide 8: Product and operations
Product and operations Simplify work life. Achieve more.
Slide 9: Services are powered by Zalaris PeopleHub | One-stop HR and payroll platform
Services are powered by Zalaris PeopleHub | One-stop HR and payroll platform State-of-the-art global HR and payroll SaaS Platform simplifying HR administration for a large platform unifying payroll and HR master data number of users Robust and scalable platform with SAP HXM as the core supporting 10
Slide 10: Accelerating growth visualized by majority of new customer wins won in past two years
Accelerating growth visualized by majority of new customer wins won in past two years 12 largest customers won (by revenue) Revenues won Existing Workforce Travel and Year won Geography HR system Payroll Talent mgmt. in past 5 years ACV (NOKm) provider mgmt. expense #1 2021 XXX In-house Global #2 20
Slide 11: Financials
Financials Simplify work life. Achieve more.
Slide 12: Managed services coming out of Covid with strong growth
Managed services coming out of Covid with strong growth of 14.5% per Q3 2022LTM LTM managed services revenues December 2020 – September 2022 NOKm Comments 700 LTM growth (%) 14.5% growth resulting from 580 new contracts coming live, 600 567 540 551 559 1 1 (72)% and a strong increase in both 532 1 5
Slide 13: Use of PS capacity for managed services implementation projects has resulted in a small decline in PS revenues
Use of PS capacity for managed services implementation projects has resulted in a small decline in PS revenues LTM professional services revenues December 2020 – September 2022 NOKm Comments 254 253 256 256 254 252 252 252 252 253 249 LTM growth (%) Professional services 246 245 246 244 243 241 244
Slide 14: Business plan
Business plan Simplify work life. Achieve more.
Slide 15: Strong revenue visibility to 2023 target of ~13% growth and NOK ~965m revenue
Strong revenue visibility to 2023 TARGET of ~13% growth and NOK ~965m revenue Revenue, NOKm Comments 965 NOK 55m in new MS contracts 16 are based on already signed contracts yet to go live 24 ~15% growth in professional services where APAC will 14 contribute with NOK 24m increase and other regions w
Slide 16: New contracts and EBIT improvement program to increase annual EBIT by minimum NOK 40-60m
New contracts and EBIT improvement program to increase annual EBIT by minimum NOK 40-60m by end of 2023 EBIT, NOKm Contribution margin from already contracted and secured revenue 5 3 4 ~90-100 95 2 3 1-5 1 8-10 9 5 30 6-8 7 11 19 41 2022 annualised adj. EBIT1 Add contribution (margin) Improve custom
Slide 17: “The Great Reset”
“The Great Reset” Simplify work life. Achieve more.
Slide 18: Marginal impact to date from Covid and Ukraine
Marginal impact to date from Covid and Ukraine Continued delivering on all customer commitments with all employees working from home Managed trough Covid with revenue impact primarily from some reduced staffing at customers and reduced travel expense processing. Estimated impact 3-5 MNOK per quarter
Slide 19: Well protected to changes in global macro picture
Well protected to changes in global macro picture Higher inflation Most long-term contracts have a provision for annual indexation based on salary and CPI increases Experiencing some pressure on salary levels in a competitive market for resources Large “margin reserve” in increased automation and of
Slide 20: Thank you!
We simplify HR and payroll administration, and empower you with useful information so that you can invest more in people. Thank you! Hans-Petter Mellerud CEO and Founder hans-petter.mellerud@zalaris.com Simplify work life. Achieve more.