Zalaris

Earnings Release • Feb 25, 2016

ZALARIS: 2015 Fourth Quarter Results

ZALARIS: 2015 Fourth Quarter Results

Continued growth in 2015

Annual revenue up 14.6%, reaching NOK 374 million, with 9.1%

EBIT.

Earnings per share nearly tripled to NOK 1.11 compared to

fiscal 2014.

Zalaris, a leading provider of payroll and HR services,

generated solid results for its 2015 fiscal year, continuing to

advance the financial performance. The company grew sales 14.6%

to NOK 374 million and EBIT of NOK 33.8 million (9.1%) for the

period, which ended 31, December 2015. Earnings per share

nearly tripled to NOK 1.11 from 0.38 in 2014.

"The results for 2015 show continued strong growth for Zalaris.

In addition, we experience a promising potential in the Nordic

and European markets for outsourced HR services", says Hans-

Petter Mellerud, Zalaris CEO and founder.

Fourth-quarter revenues decreased 2.8% to NOK 94.6 million

compared to fourth quarter 2014, with a corresponding EBIT of

NOK 8.9 million (9.4%). 2015 EBIT came in at the lower end of

Zalaris' targeted range as the company focused on expanding its

business pipeline.

"Although growth was somewhat below our expectations, we see

ample opportunities ahead. We have intentions ultimately to

establish a more pan-European presence. This includes further

strengthening internal delivery capability as well as exploring

partnership possibilities", says Mr. Mellerud.

In addition to providing strategic HR guidance and

comprehensive cloud-based human capital management innovations,

Zalaris offers multi country mobile enabled payroll, time and

travel expense solutions to companies in Northern Europe. The

company's new service center located in Chennai in India,

provides many other advantages and already represents 13% of

the company's total service and support hours.

"This ramp-up parallels headcount reductions in Zalaris' Nordic

service centers, where corresponding cost savings are planned

to take effect beginning in Q2 2016", says Mellerud.

Zalaris' operations serve more than 190,000 employees today,

including some of the largest companies in the Nordic region.

The total number of employees covered by Zalaris solutions was

10.5% higher at the end of the fourth quarter compared to the

same period in 2014. Generally tougher economic conditions work

in Zalaris' favor as companies look to reduce costs and

increase efficiency. However, Zalaris also experiences that

some potential new clients are postponing their decisions.

Among key Q4 wins, one of Zalaris' largest customers expanded

its existing agreement to include SAP's SuccessFactors, a cloud

based human capital management solution, for their 32,500

employees. SuccessFactors enables Zalaris to deliver an even

broader range of strategic HR services.

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 and Sweden, including local-language

service centers with extensive expertise in HR-

related laws and regulations. Learn more about

Zalaris at www.zalaris.com