Slide 1: Interim report | Fourth quarter and full year 2015
Interim report | Fourth quarter and full year 2015 Oslo, 25 February 2016
Slide 2: Presenters and agenda
Presenters and agenda Agenda • Highlights for the fourth quarter Hans-Petter and full year 2015 Mellerud Founder and CEO • Financial performance • Regional trends • Outlook Nina Stemshaug CFO © 2016 2014 Zalaris Page: 2
Slide 3: Growth continues, positive outlook
Growth continues, positive outlook Financial indicators Strategic milestones • Revenue growth of 14.6% in 2015, in the • Offshoring strategy shows positive results, lower range of our own expectations Chennai service center produced 13% of total hours in Q4 15. • Q4 15 revenues slightly below Q4 14
Slide 4: Revenues slightly lower than fourth quarter 2014
Revenues slightly lower than fourth quarter 2014 – with normalized revenues showing slight increase • Revenues in Q4 15 increased Operating revenues to NOK 94.6 million from NOK 92.6 million in Q3 15, slightly down from Q4 14 Other 3% Finland 13% Denmark 16% • Normalized revenues in Q4 2014 reflect
Slide 5: Operating profit in line with expectations, lower than target of 10%
Operating profit in line with expectations – however lower than our communicated target of 10% • Operating profit in Q4 15 came Operating profit in at 8.9 million, lifting the EBIT margin for the year to 9.1 % Profit margin in % • Adjusted for extraordinary revenues in Q4 14, EBIT margin in Q4 15 in
Slide 6: HR Outsourcing segment: Somewhat lower total sales Q/Q but margin improvement
HR Outsourcing segment: Somewhat lower total sales Q/Q - but margin improvement Operating revenues Operating profit and margin • HR outsourcing revenue experienced a • The operating margin in Q4 2015 was 4.1% decline in Q4 15 Q/Q due to extra- NOK 6 million (NOK 4.9 million) ordinary high revenue le
Slide 7: HR Outsourcing segment: Major projects on track
HR Outsourcing segment: Major projects on track- employees severed above 191’ Employees served (1000’) Employees and productivity • In Q4 15 the average number of • Average number of employees served employees served per month was 191 per FTE grew up to 692 and represents thousand, 10.5% higher comp
Slide 8: Positive cash flow from operations, strong financial position
Positive cash flow from operations, strong financial position Cash and cash flows Q4 15 • Cash flow from operating activities in Q3 15 was NOK 21.6 million • Investments mainly related to migration of web pages and system functionality (e.g. new payment solution) • NOK 67.7 million cash and cash equ
Slide 9: A key Q4 win upselling Cloud based HR to a large customer
A key Q4 win upselling Cloud based HR to a large customer visualize the potential of our cloud offering • Large customer expand services to include SuccessFactors Cloud solution for their 32’500 employees • SuccessFactors Employee Central for maintaining global employee master data • Onboarding func
Slide 10: Our mobile solutions is receiving praise from pilot users
Our mobile solutions is receiving praise from pilot users in SE and DK of one of our largest Nordic customers • «Looks very good!, user friendly and fast!» • «Wow! Great!» • «Exciting!» • ”Super App!” • ”I just approved workflows in the new App – this is a great tool (”kongeværktøj…”)” • ”Thank you
Slide 11: Utilizing scalable SAP infrastructure and strong balance sheet to grow market access
We are continuously evaluating how to utilize our scalable SAP infrastructure combined with strong balance sheet to grow market access • Strengthening delivery capability internally as well as through partnerships to cover new geographic markets • Increased visibility due to our market success and s
Slide 12: Concluding remarks: Strong growth, cost reduction, positive outlook
Concluding remarks: Strong growth. Continued focus on cost reduction. Positive outlook • Growth continues Year-to-date figures show continued growth • EBIT enhancement from increased focus on cost reductions and increased efficiency resulting from both xShoring and automation efforts • Productivity
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 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