Zalaris

Earnings Release • Apr 27, 2017

ZALARIS: 2017 First Quarter Results

ZALARIS: 2017 First Quarter Results

Margins above target, multiple wins and expansion plans realized

Zalaris' Q1/17 revenues were up 8.0% to NOK 106.4 million, with an

EBIT margin of 10.1%. Multiple wins for international clients and an

agreement announced yesterday to acquire the company sumarum AG in

Germany kick off the company's expansion plans.

Zalaris, a leading provider of payroll and HR services, delivered

solid results in Q1/17 with continued strong growth and margins

above target. Sales increased 8.0% to NOK 106.4

million in Q1/17 from Q1/16, with a corresponding EBIT of NOK 10.7

million (10.1%) for the period.

"2017 started well with an encouraging level of activity and

numerous wins and developments that further strengthen Zalaris for

the future. Our record-high 203 000 employees served each month also

materialized in strong growth in Q1/17", says Hans-Petter Mellerud,

Zalaris' CEO and founder.

Continued growth for cloud

The cloud services business maintains a trend of significant

revenues growth with an increase of 171.3% up to NOK 13.6 million

(NOK 5.0 million). Cloud services now represent 14 per cent of total

operating profit.

"Both new and exisiting customers require solutions in the cloud,

which has boosted activity for our cloud division. This will

increase in importance also in the period to come", Mellerud says.

Multiple wins

Zalaris delivered multiple wins with multinational clients in the

quarter, such as Norsk Hydro ASA, a European energy champion and Siemens. An

extension agreement with Norsk Hydro ASA to provide payroll and HR

services to Hydro's 4 400 employees and 8 100 pensioners in Norway

was signed.

One of Europe's largest generator of renewable energy chose

Zalaris to deliver solutions and services to more than 3 000

employees in four countries, further supporting Zalaris' expansion

into the UK and Germany. A five-year renewal with the industrial

champion Siemens for its Swedish operations is also signed.

"These wins are evidence of our ability to deliver continued growth.

We see substantial opportunities for further growth on our scalable

platform", says Mellerud.

On 26 April Zalaris announced that it has acquired the leading

German HR Outsourcing company sumarum AG. Please see more

information in yesterday's release.

Contact

Hans-Petter Mellerud, CEO and founder

Mobile: +47 928 97 276

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

Nina Stemshaug, CFO

Mobile: +47 982 60 394

E-mail: nina.stemshaug@zalaris.com

About Zalaris

Zalaris excels in delivering comprehensive cloud- based HR and

payroll services. The company is certified as a SAP Business Process

Outsourcing (BPO) Partner and is a leading

SAP Human Capital Management (HCM) and SuccessFactors consulting

partner. Founded in 2000, Zalaris today operates in Denmark,

Estonia, Finland, India, Latvia, Lithuania, Norway, Poland, Sweden

and Germany, including local-language service centers with extensive

expertise in HR- related laws and regulations.

Learn more about Zalaris at www.zalaris.com