Slide 1: Zalaris ASA Interim report | Third quarter 2014
Zalaris ASA Interim report | Third quarter 2014 Thank you for joining us. The presentation will begin at 0900 CET. Please note: • All attendees will be in muted mode during the presentation. Attendance is anonymous for all participants with the exception of the presenters from Zalaris. • Please dial
Slide 2: Interim report | Third quarter 2014
Interim report | Third quarter 2014 Oslo, 30 October 2014
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 © 2014 Zalaris Page: 3
Slide 4: Another quarter with positive development
Another quarter with positive development Strong financials Strategic milestones • Revenues in Q3 2014 grew by • Signed a five-year agreement with 16.5 % compared to same period last industrial group Borregaard in year Norway and Dong Energy in Poland • Recurring revenues increased • Successful tran
Slide 5: Two new branded customer relationships underpinning our strategy
Two new branded customer relationships underpinning our strategy • Five-year agreement to provide • Five-year agreement to provide transactional HR services in Norway transactional HR services in Poland • Around 1,000 employees, operating • Around 70 employees one of the world’s most sophisticated b
Slide 6: Profitable growth continues
Profitable growth continues Revenues EBIT Revenues EBIT1 in NOK million in NOK million 100 • Revenue growth 10 • Profitable growth 84 16.5 %. In line with 8,3 expectations • Margin increase 80 72 8 6,7 from 9.3 to 9.9 % 1 • HR Outsourcing 60 main contributor to 6 • IPO related costs in 9.9 % Q3 amou
Slide 7: HR Outsourcing is key source of YOY Q3 growth
HR Outsourcing is key source of YOY Q3 growth HR Outsourcing Consulting Cloud services Revenues Revenues1 Revenues1 in NOK million in NOK million in NOK million 77,0 5,7 62,7 3,8 4,5 2,1 Q3 13 Q3 14 Q3 13 Q3 14 Q3 13 Q3 14 • Main engine for growth. • Part of Consulting capacity • All cloud related s
Slide 8: 99% of our revenue is coming from the Nordic
99% of our revenue is coming from the Nordic HR Outsourcing revenues 90 • HR Outsourcing represents 80 Baltics & Poland 1 % 92 % of total revenues Finland 14 % • Norway revenues increased 70 26 % from Q2 due to start-up of 60 Denmark 18 % Statoil contract 50 • Slight increase in revenues in Sweden 1
Slide 9: Strong cash flow and strengthened balance sheet
Strong cash flow and strengthened balance sheet Equity • Cash flow from operating In NOK million at end of quarter activities in Q3 14 was NOK 25 million 100 89 • NOK 68.8 million cash and cash 80 equivalents at the end of Q3, up from 47.5 million three months 44 % before 60 • NOK 15 million unused
Slide 10: Focus on automation and near/offshore initiatives with goal of further improving cost position
Focus on automation and near/offshore initiatives with goal of further improving cost positon • Dual approach to business improvement and value creation; growth and improved efficiency simultaneously • Initiatives implemented that will reduce monthly personnel costs by NOK 0.5 million from mid-2015
Slide 11: Rolling out new portal to improve scalability and customer satisfaction
Rolling out new portal to improve scalability and customer satisfaction • Successfully started migration of customers to new scalable portal with modernized user interface simplifying rolling out new cloud based functionality • Fully integrating SAP HCM, Successfactors talent management and other ke
Slide 12: Mobile solutions is another key focus area
Mobile solutions is another key focus area • New and renewing customers are increasingly selecting our mobile offering • Improved travel expense functionality supporting fully digitized travel expense process for users on the go • New travel expense functionality starting roll out in Q4 © 2014 Zalar
Slide 13: Climate for growth in all markets, opportunities abound
Climate for growth in all markets, opportunities abound • Companies increasingly look to oursource payroll and HR solutions, regardless of economic conditions • Our business pipeline remain enviable. We have identified numerous large Nordic and Northern European prospects and are currently targeting
Slide 14: Strong institutional investor base with long-only funds
Strong institutional investor base with long-only funds Pre IPO (Mellerud, CEO) Pre IPO (ex. NCP IV) Pre IPO (Hoegh) Pre IPO (Hoegh) Pre IPO (Horn) Pre IPO (Danielsen) © 2014 Zalaris Page: 14
Slide 15: Dividend policy remain as defined in IPO prospectus
Dividend policy remain as defined in IPO prospectus • The Company has not paid any dividends to date, whether in cash or in kind, but rather reinvested its capital in expanding and growing the Group. • Zalaris’ overall objective is to create value for its shareholders through an attractive and compe
Slide 16: Concluding remarks
Concluding remarks • Profitable growth expected to continue through 2014 • Ambition to maintain growth in the following years, leading to improved utilization of existing infrastructure and operations, and increased profitability and cash flow from operations • Will continue to concentrate on organi
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: Questions?
"\7 2ALARIS 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