Zalaris Asa · OSL:ZAL
Zalaris Asa — Q3 2017 Earnings Presentation
22 slides from Zalaris Asa's earnings presentation, Nov 9, 2017
Slide 1: Interim report | Third quarter 2017
Interim report | Third quarter 2017 Oslo, 9 November 2017
Slide 2: Presenters and agenda
Presenters and agenda Agenda • Recent highlights Hans-Petter Mellerud • Financial performance in the Founder and CEO third quarter of 2017 • The ROC acquisition • Outlook Nina Stemshaug CFO © 2017 2014 Zalaris Page: 2
Slide 3: Highlights | Strategy and operations: Another milestone quarter
Highlights | Strategy and operations Another milestone quarter • Expanding into UK and Ireland, Europe’s largest market for BPO, with acquisition of ROC Global Solutions • Important step on our journey to provide seamless services to companies operating across Northern Europe, supporting them in the
Slide 4: Highlights | Financial: Strong growth through acquisitions
Highlights | Financial Strong growth through acquisitions Key figures • 2017 a year of growth through NOK million Q3/17 Q3/16 YTD17 YTD16 acquisitions Revenues 151 98 383 291 • Revenues shown include Operating profit 6.7 9.1 24.6 25.6 sumarum full quarterly effect. Profit for the period 3.8 6.2 4.6
Slide 5: Revenues split: Broadened presence across Northern Europe
Revenues split Broadened presence across Northern Europe Distribution of revenues • sumarum and ROC acquisitions will significantly by geography (in per cent) change Zalaris geographical footprint. ROC will be included from Q4 5 4 5 • Customers in Norway represented 12 14 19 14 30 approx. 30% of rev
Slide 6: Customer reach: Number of employees served by Zalaris systems
Customer reach Number of employees served by Zalaris systems Number of employees • Number of employees served in Q2 increased served (1000’) due to the integration of sumarum. • The decrease in Q3 was mainly due to a 272 266 change in scope for one large customer, with minor effect on revenues 200 2
Slide 7: Key financials Third quarter 2017
Key financials Third quarter 2017
Slide 8: Group operating revenues: Boost by acquisitions
Group operating revenues Boost by acquisitions Operating revenues • Total revenue for Zalaris group in Q3/17 (in NOK million) reached NOK 150.6 million with a growth of 54.1% compared to Q3/16. 151 • Growth mainly a result of the recently acquired 127 sumarum business, which contributed NOK 45.9 mil
Slide 9: Revenues by segment: Continued strong growth in Cloud
Revenues by segment Continued strong growth in Cloud HR Outsourcing Consulting Cloud Services (amounts in NOK million) (amounts in NOK million) (amounts in NOK million) • Revenue increased by 12.1% • Growth in both Q2 and Q3 is • Cloud revenues increased and 5.1% compared to Q3/16 entirely attributa
Slide 10: Group operating profit | Temporary weakening of margins as new experts are onboarded
Group operating profit | Temporary weakening of margins as new experts are onboarded Group operating profit1 • Operating profit was NOK 6.7 million or 4.4 %. (in NOK million) • Year-on-year decrease stems from higher level of personnel costs and other operating 12,4 expenses. 10,7 • The latter refle
Slide 11: Profit by business segment: HR Outsourcing delivers the profits in Q3
Profit by business segment HR Outsourcing delivers the profits in Q3 HR Outsourcing Consulting Cloud Services (amounts in NOK million) (amounts in NOK million) (amounts in NOK million) • Operating margin in the • NOK 4.7 million loss in Q3/17 • Operating margin in the segment was 11.5% in Q3/17 • No
Slide 12: Strong financial position: Balance sheet marked by recent acquisitions
Strong financial position Balance sheet marked by recent acquisitions Cash and cash flows Q3/17 Comments to changes in balance sheet (in NOK million) 91,5 • Total assets as of 30.9.17 was NOK 558 million. Total 140 equity was NOK 128 and equity ratio was 23 %, down from 28 % on 30.6.17, mainly as a
Slide 13: Financial positions remains strong after significant changes as result of strategic acquisitions
Financial positions remains strong after significant changes as result of strategic acquisitions © 2017 2014 Zalaris Page: 13
Slide 14: Concluding remarks
Concluding remarks —
Slide 15: From 30 to 230 million = 7x
Adding market facing operations to Germany and UK/Ireland increases the market for selling our outsourcing services with an estimated 7x Population of: • Nordics and Baltics as served by original Zalaris of 30 million • DACH with 97 million, UK/Ireland with 71 million and Poland with 38 million • Fr
Slide 16: The MCPO market has grown rapidly at a CAGR of ~21%
The MCPO market has grown rapidly at a CAGR of ~21% from 2014 to 2016 to cross US$1.5 billion. This momentum is expected to continue over the next few years © 2017 2014 Zalaris Page: 16
Slide 17: With sumarum and ROC joining the Zalaris family our market footprint has doubled
With sumarum and ROC joining the Zalaris family our market footprint and advisory capability has doubled Highlights Description Highlights Description » German-speaking countries. 97 mill » UK/Ireland 66 +5 million, DACH 97 people in DE, A, CH mill and Poland with 36 million people Market Market » S
Slide 18: Acquisitions support ambition of being a one stop shop to the HR function
In addition to giving us the ability to serve our customers in the markets that they operate the acquisitions supports our ambition of being a one stop shop to the HR function Consulting & Outsourcing Cloud and International Multi Country Advisory © 2017 2014 Zalaris Page: 18
Slide 19: Concluding remarks | Priority to margin improvement and market activities going forward
Concluding remarks | Priority to margin improvement and market activities going forward • Zalaris continues to serve customers across an increasingly diverse range of industries and geographies. Our business pipeline remains solid and we focus on implement our proven Cloud and BPO sales models in ou
Slide 20: 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 21: We open for questions
We open for questions
Slide 22: 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