Zalaris

Earnings Release • Aug 18, 2020

Increased revenue and EBIT in the second quarter

Increased revenue and EBIT in the second quarter

Zalaris ASA, the provider of Payroll and HR Solutions, today posted second

quarter adj. EBIT of 12.7 million, an increase of 72% from last year.

Key financial figures for Q2:

· Revenue of NOK 198.4 million (NOK 187.5 million), an increase of 5.8% from

last year

· Adjusted EBIT of NOK 12.7 million (NOK 7.4 million), an increase of 71.6%

· Results for the period of NOK 22.4 million (NOK -3.3 million)

· Cash of NOK 129.0 million (NOK 59.6 million), an increase of NOK 69.4

million (116.4%) from last year

Continuing positive development in margins and cash

· Proactively and successfully servicing our customers in a challenging Covid

-19 environment, the vast majority of team members worked from home. Signed

several new agreements and expansions

· Covid-19 resulted in a slow-down in closing new contracts during the

quarter. However, the pipeline remains strong, and is expected to grow due to an

increased focus on outsourcing and digitalization

· Cost reduction initiatives carried out is having a positive effect on EBIT

margins, and has strengthened cash generation. We continue to target 10% EBIT

margin

· Based on the current financial performance of the Company the Board will

propose a dividend of minimum NOK 0.5 per share for 2020

Maintaining revenue with zero churn despite Covid-19

"Many of our customers are adjusting headcount and business volumes downward as

a result of Covid-19.  However, we have maintained overall revenue development

through supporting customers with additional services resulting from the

pandemic." - says CEO and Founder Hans-Petter Mellerud.

"Working from anywhere has become the new normal driving the need for fully

digitised people processes. This is the core of what we have been delivering for

twenty years.." -  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

Mobil: +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 Experience Management (HXM) solutions across Europe,

serving more than1.5 million employees with an annual revenue of 77 million

Euros (2019). We hold #1 or #2 positions in most of our markets. Our consultants

have more than 20 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.