Zalaris Asa · OSL:ZAL
Zalaris Asa — Q1 2017 Earnings Presentation
19 slides from Zalaris Asa's earnings presentation, Apr 27, 2017
Slide 1: Interim report | First quarter 2017
Interim report | First quarter 2017 Oslo, 27 April 2017
Slide 2: Presenters and agenda
Presenters and agenda Agenda • Recent highlights Hans-Petter Mellerud • Financial performance in first Founder and CEO quarter of 2017 • Expanding into D-A-CH through acquisition of sumarum AG Nina Stemshaug • Outlook CFO © 2017 2014 Zalaris Page: 2
Slide 3: Second quarter on a row with revenues above hundred million mark, several important wins
Second quarter on a row with revenues above hundred million mark, several important wins Financial indicators Strategic milestones and trends • Q1/17 revenues was 106.4 million, up • Norsk Hydro renewed agreement for 8.0 % year-on-year 10,000 employees and pensioners • Operating profit before other
Slide 4: All-time high average of employees served in Q1/17
All-time high average of employees served in Q1/17 Employees served (1000’) 203 200 200 201 200 196 • Number of customer employees served 190 indicates volume of transactions and services delivered 180 • Growth in average number of employees served in Q1 compared to last quarter, is 170 the result o
Slide 5: Operational key performance indicators, efficiency flattens as result of taking on new customers
Operational key performance indicators, efficiency flattens as result of taking on new customers HR Outsourcing • Average number of employees served Employees and productivity per FTE (full time equivalent) by HR Outsourcing was 648 in Q1/17, up 340 from 620 in Q1/16. 820 320 • Transfer of transacti
Slide 6: Q1/17 revenues increased 8% year-on-year. Cloud business continues to grow in importance
Q1/17 revenues increased 8 % year-on-year. Cloud business continues to grow in importance Operating revenues • Group revenues in Q1/17 was 106.4 million, above hundred million mark for the second consecutive quarter 110 106,4 105,2 • Growth in cloud services continued, 98,5 97,7 reaching revenue of
Slide 7: Operating margin stayed above 10% target, well above Q1/16
Operating margin stayed above 10 % target, well above Q1/16 Group operating profit1 • Operating profit for Q1/17 was 10.7 14 million, with profit margin of 10.1 % 12,4 12 • Operating expenses increased 98.7 10,7 million in Q1/17, including 3.1 million in 10 9,3 9,2 other costs • Group revenues and c
Slide 8: Cloud services segment: Consistent and strong growth in demand
Cloud services segment: Consistent and strong growth in demand 16 Revenues per quarter 14 • Consistent and strong demand for cloud services 12 shift revenue composition for Zalaris 10 8 • Step-up in Q1/17 mainly due to launch of service 6 delivery to customers in Sweden 4 2 • Cloud services now at a
Slide 9: HR Outsourcing segment: Steady growth in profit compared with Q1 in previous years
HR Outsourcing segment: Steady growth in profit compared with Q1 in previous years Operating revenues Operating profit and margin • Revenues in Q1/17 was 90.6 million, • Profit in Q1/17 was 8.2 million, up 1.1 same level as Q1/16 million from Q4/16 • Marginally down from Q4/16, which was • Personnel
Slide 10: Positive cash flow from operations, strong financial position
Positive cash flow from operations, strong financial position Cash and cash flows Q1/17 • Group cash and cash equivalents was 36.2 million at end of Q1/17 45 • Cash from operating activities was 40 negative 2.9 million, mainly due to 2,8 capitalized implementation project costs 35 0,3 4,7 and other
Slide 11: Expanding into D-A-CH through acquisition of sumarum AG
Expanding into D-A-CH through acquisition of sumarum AG (previously known as IT2 Solutions AG)
Slide 12: Transaction rationale – joining forces with sumarum to speed organic growth
Transaction rationale – joining forces with sumarum to speed organic growth and serving customers footprint • Combined entity becomes HCM powerhouse with more than 650 passionate professionals with hearths beating for HR and payroll based on SAP and SuccessFactors and more than MNOK 550 revenue • St
Slide 13: Being focused on SAP HCM and Payroll since 2001 – sumarum AG is a perfect fit
Being focused on SAP HCM and Payroll since 2001 – sumarum AG is a perfect fit for Zalaris’ entrance into DACH ▪sumarum is one of the largest ▪SAP HCM and payroll specialists independent HCM consulting companies in Germany ▪178 employees in 5 German locations ▪ISAE 3402 and DIN ISO 9001 certified ▪Fu
Slide 14: Sumarum and Zalaris key figures will have more than MNOK 550 annual revenue and 650+ employees
Sumarum and Zalaris key figures will have more than MNOK 550 annual revenue and 650+ employees © 2017 2014 Zalaris Page: 14
Slide 15: Deal structure and timeline
Deal structure and timeline • Zalaris acquires 95,1% of shares from founder and senior management with the goal of acquiring the remaining 100% of the shares based on an Enterprise value of EUR 19,2 million • Financed with approx. 85% debt and 15% equity • Existing management will become Zalaris sha
Slide 16: Concluding remarks: Another strong quarter and a milestone strategic acquisition completed
Concluding remarks: Another strong quarter and a milestone strategic acquisition completed • Revenues above the NOK 100 million mark for second quarter on a row, with an 8 % growth year-on-year, delivering a profit above our 10 % target • Customer satisfaction is intrinsic and vital to Zalaris’ cont
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