Zalaris

Earnings Release • Aug 26, 2021

Build-up of annual recurring revenue (ARR) continued in second quarter

Build-up of annual recurring revenue (ARR) continued in second quarter

Zalaris ASA, the provider of Payroll and HR Solutions, today posted an adj. EBIT

of 11.4 million and revenue of NOK 185.4 million.

Q2 highlights:

.    Revenue of NOK 185.4 million (NOK 198.4 million) - reduction mainly due to

currency movements of approx. NOK 11m

.    Adjusted EBIT of NOK 11.4 million (NOK 12.7 million) - higher margins

within Managed Services in the Nordics, offset by currency movements, and

temporary use of external consultants within Professional Services in Germany

.    Adjusted EBIT margin of 6.2% (6.4%)

.    High sales activity within Managed Services, resulting in a continued build

-up of future annual recurring revenue ("ARR") through several new BPO

agreements and extensions during the second quarter - total new BPO contracts

awarded year-to-date have expected ARR of NOK 71 million (net ARR NOK 43

million), when fully implemented

.    Successful completion of NOK 120.7 million equity issue, at NOK 60 per

share

.    Paid dividend of NOK 1.00 per share (NOK 19.6 million) for 2020

.    Cash and cash equivalents of NOK 212.0 million, +NOK 83.0 million from last

year

Subsequent to quarter end:

.    Completed the acquisition of ba.se service & consulting GmbH, a leading

provider of payroll and HR services within the German retail sector, providing a

platform for further growth in Germany and Central Europe. Ba.se will contribute

annual revenue of approx. EUR 6 million based on existing contracts, of which

almost 100% is ARR with favorable EBIT contribution.

Substantial growth in recurring revenue secured:

"New BPO contracts won, and revenue from ba.se GmbH, our newly acquired company

in Germany, represents an expected increase in total annual revenue for Zalaris

of >10% over the next 12 months." - says CEO and Founder Hans Petter Mellerud.

Zalaris will host a webcast for all shareholders and interested parties today at

08:30 CET. There will be a Q&A session following the management presentation.

The second quarter webcast will be available through ir.zalaris.com.

Contact:

Hans-Petter Mellerud, CEO and founder

Mobile: +47 928 97 276

E-mail: hans-petter.mellerud@zalaris.com

Gunnar Manum, CFO

Mobile: +47?951 79 190

E-mail: gunnar.manum@zalaris.com

About Zalaris

Zalaris (OSLO: ZAL) simplify HR and payroll administration, empower you with

useful information so that you can invest more in people. We are a leading

service provider of Human Capital Management (HCM) solutions across Europe,

serving more than 1.5 million employees with an annual revenue of ~78 million

Euros (2020). We hold #1 or #2 positions in most of our markets. Our consultants

have more than 21 years of experience in transforming HR with our clients.

Simplify work life. Achieve more. For more information, go to www.zalaris.com.

This information is subject to the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.