Zalaris

Quarterly Report • Apr 29, 2015

Service Excellence, Quality-Focused Processes and Employees – Our Key Asset

Interim Report January-March 2015

KEY FIGURES Q1 2015

	2015	2014	2014
All figures in NOK 1 000	Jan-Mar	Jan-Mar	Jan-Dec
Revenue	94 183	74 135	326 145
Growth (y-o-y)	27,0 %	25,2 %	246,3 %
Operating profit	9 851	8 451	14 861
Operating profit margin	10,5 %	11,4 %	4,6 %
Operating profit excl. IPO related & one off costs*	9 851	8 451	31 663
Operating profit margin excl. IPO related & one off costs	10,5 %	11,4 %	9,7 %
Ordinary Profit before tax	9 734	8 203	12 023
Profit for the period	7 169	5 988	8 793
Earnings per share**	0,33	1,59	0,38
Net cash from operating activities	(7 496)	593	37 318
Headcount end of the period	443	401	441
* One off IPO related costs	-	-	11 948
* One off accelerated depreciation costs	-	-	4 854
** Weighted number of shares for the period Increase in number of shares from end of 2013 to end of 2014 by 1) a	19 124 263	3 371 480	19 031 313

share split in the ratio 1:5 due to a share capital increase and 2) issue of new shares.

HIGHLIGHTS Q1 2015

• Revenue grew 27% compared to Q1 2014 increasing to NOK 94.2 million
• Operating profit (EBIT) reached 10.5%
• Expanded contract for an existing customer in the Nordics and Baltics for implementation of SuccessFactors.
• Employee transfer to Zalaris Sweden from new customer, Swedish Global Fortune 500-company with approximately 20.000 employees.
• Strong pipeline of new opportunities

2015 – Delivering on Customer and Stakeholder

Expectations

"We began 2015 with strong overall results for the first three months: 27% year-over-year growth and EBIT of 10.5% for the period. The achievements included a combination of revenue from new customers, seasonal effects, strong subcontractor leverage as well as increased overall productivity.

Hans-Petter Mellerud, CEO

Insights from the CEO

We began 2015 with strong overall results for the first three months of the year. This quarter typically reflects high activity levels related to prior year-end closing and implementing changes for customers. In addition, this year we realized the effect of including revenue from significant recent customer wins - resulting in a 27% Q1 revenue increase year-over-year while maintaining an EBIT of 10.5%.

Revenue per employee grew nearly 15% due to a variety of productivity improvements, strong leverage of external resources, and shifting more internal staff to revenue-generating activities.

Successfully integrating Swedish operations for new Swedish Fortune 500 company

Zalaris signed a major agreement in January with a Swedish Fortune 500 company with approximately 20'000 employees in the Nordic region. As a result of the agreement, 13 of their employees transferred to Zalaris in the beginning of March, with revenue impact also commencing that month. This occurred one month earlier than anticipated, as previously announced. The transformation activities correlate to overall production start-up targeted for January 2016 on Zalaris' cloud infrastructure, progressing according to plan.

Healthy interest in cloud services

We are experiencing strong interest in our cloud solutions offering. Related developments include one of our key customers signing its commitment to implement with Zalaris a fully integrated SuccessFactors solution. This encompasses administering their Learning Processes, with intent to go live on the new solution in November 2015.

Our new mobile app was launched in Q1, supporting

100% paper-free travel expense processes. A number of customers have already signed up for the new functionality. We believe interest in mobile access will continue to gain momentum throughout 2015.

Strengthening of Indian operations on track

As previously announced, Zalaris is establishing its own India-based service operations in Chennai. As a result, the current service team, operated by a partner, will be transferred to Zalaris and become localized this summer in Zalaris' own premises in India. The transition activities are progressing as expected, and we anticipate completion by August of this year.

Pipeline remains strong

We are confident 2015 will be another banner year for Zalaris, our associates and customers across all markets we serve today – and tomorrow. Our business pipeline remains strong, with growing interest in Zalaris products and services evident in all the countries where we currently do business. We've grown our selling capacity and also look to build on our communicated growth strategy through additional agreements in progress. These include negotiations to expand our geographic and functional footprint with current customers.

Market conditions favor Zalaris, such as the movement toward outsourcing and other cost-saving endeavors, as companies increase focus on their respective core competencies. We are in prime position to capitalize!

Hans-Petter Mellerud, CEO

Income statement

Revenue

Group revenue for Q1 2015 was NOK 94.2 million, an increase of 27% compared to Q1 2014. The growth reflects Go-Live of new long term HR Outsourcing customers in the last 12 months.

The revenue was stable from last quarter with a minor decrease of NOK 3.1 million, or 3.2% due to a higher level of change orders in Q4 2014. Year-end activites within the core HR outsourcing business unit were high for both quarters.

Profit/loss

Group operating profit amounted to NOK 9.9 million, with an operating margin of 10.5% for the first quarter. This is well in line with expectations, but a minor decrease in profitablility compared to Q1 2014. Last year's first quarter result was positively effected by a high utilization of the consulting capacity due to finalizing implementation projects for new HR outsourcing customers.

Net financial items for the first quarter amounted to NOK -0.1 million, and profit after tax was NOK 7.2 million. In the first quarter of 2014 were net financial items of NOK -0.3 and profit after tax NOK 6.0 million.

Segment Information

in NOK 1000
Segment	FY 2014	Q1/14	Q2/14	Q3/14	Q4/14	Q1/15
HR Outsourcing	308 843	71 586	68 907	77 032	91 319	90 223
Consulting	10 685	2 421	1 886	2 111	4 267	3 702
Cloud	6 617	128	258	4 498	1 733	258
Total	326 146	74 135	71 051	83 640	97 319	94 183

HR Outsourcing

In Q1 2015, HR Outsourcing total revenue amounted to NOK 90.2 million, 25% higher compared to same period last year, but slightly lower compared to Q4 2014. In Q1 2015, as well as in Q4 2014, 98% of Zalaris' outsourcing business came from the Nordic region.

Norway had a slight increase of 3% in revenue, from Q4 2014 to Q1 2015, attributable to normal seasonal variation for delivery of year-end work and partly by higher revenue from additional invoicing and change orders.

Comparing Q1 2015 with Q4 2014, a more substantial revenue increase of 15% characterized Sweden. In Sweden, the increase was mainly due to delivery of year-end work and additional invoicing.

In Denmark, a decrease of 27% has been registered for Q1 2015 compared to Q4 2014, because of a high number of change orders at the end of 2014.

Revenue in Finland for the period decreased 7% compared to Q4 2014. This is mainly attributable to the contract termination with a major customer.

'Baltics & Poland' registered a positive trend for the quarter. The growth resulted mainly from a higher change order turnover in Q1 2015 compared to Q4 2014.

Consulting

Total revenue for the consulting business showed a minor decrease in the Q1 2015 compared to Q4 2014. Consulting revenue is in general affected by the usage of consulting capacity in implementation projects for new HR outsourcing customers and deliveries of change orders to customers in the Outsourcing unit.

Share of Consulting business over total external revenue in Q1 2015 is 4%, amounting to a value of NOK 3.7 million, distributed as follows: Norway 87%, Sweden 9%, Finland 3% and Baltics & Poland 2%.

We see increased consulting activites in Finland and the "Baltics & Poland" in Q1 2015 due to a customer Upgrade Project in Finland and an increase of utilization of hours on consulting customer activities in the Baltics.

Cloud Services

Zalaris sees a good growth potential in this area, with significant related revenue increases expected later in 2015. Zalaris has signed an agreement for the implementation of SuccessFactors cloud solution with one of our major customers.

The contribution to total external revenue from our Cloud services unit was below 1% for Q1 2015.

Cash flow, investments and balance sheet items

Q1 2015 cash flow from operating activities amounted to NOK -7.5 million compared to NOK 0.6 million Q1 2014. This number includes a cash flow related to customer implementation projects from new outsourcing contracts of NOK -6.2 million compared to NOK -10.5 million Q1 2014.

Cash flow from investing activities was NOK -3.0 million in Q1 2015 compared to NOK -1.3 million Q1 2014. Investment activities in Q1 2015 are mainly related to implementation of new portal functionalities to our customers and the establishment of Zalaris' own service center in Chennai, India.

Cash and cash equivalents amounted to NOK 64.5 million at the end of Q1 2015 compared to NOK 9.4 million at the end of Q1 2014. The Group has an unused credit facility of NOK 15.0 million at the end of the reporting period.

Equity

At the end of Q1 2015, equity was NOK 99.9 million, which corresponds to an equity ratio of 48.8%. At the end of Q1 2014, the equity was NOK 45.7 million, equivalent to 36.3%.

Employees

The Group's headcount was 443 at the end of Q1 2015. This represents an increase of 10% compared to Q1 2014. These figures include 30 employees engaged by Zalaris' provider of offshore services.

The number of employees was stable for all units in Q1 2015 compared to Q4 2014. The diagram shows number of employees per region for the group.

Within the HR outsourcing unit, with 336 employees, 18% of the resouces are located in the Baltics and Poland (Nearshore) and the equivalent percentage for India (Offshore) is 9%. For our Consulting unit, the resources in the Baltics and Poland represents 34% of the number of employees.

The number of FTEs (Full Time Equivalents) at the end of the quarter was 409, compared to 375 in Q1 2014. The increase is mainly a result of new HR Outsourcing contracts with employee transfer to Zalaris.

Group Headcount

Outlook

Our pipeline of new opportunities in our core markets is increasing as a result of increased sales efforts and publicity from recently won contracts. The opportunities are in different stages of the sales lifecycle and support our target growth rate.

Our strategy of servicing our existing customers with additional cloud-based HR funtionality and geographic coverage is well received.

For 2015, we will continue our dual focus in maintaining satisfied customers and cost reduction. The Net Promoter Score concept helps identify improvement areas in day-to-day service. Our planned increase in capacity of our Chennai, India, center will improve our capability to reach our strategic targets of customer satisfaction, high quality deliveries and cost reductions.

Oslo, April 28, 2015 Board of Directors

_________________________ _________________________

Lars Laier Henriksen Narve Reiten (chairman)

Liselotte Hägertz Engstam Tina Steinsvik Sund

_________________________ _________________________

_________________________ Jan M. Koivurinta

This interim report was not reviewed by The Company's auditors

Interim consolidated condensed financial statements

Consolidated Statement of Profit and Loss

		2015	2014	2014
(NOK 1000)	Notes	Jan-Mar	Jan-Mar	Jan-Dec
		unaudited	unaudited
Revenue	2	94 183	74 135	326 145
Operating expenses
License costs		4 580	2 482	13 031
Personell expenses	3	53 760	41 410	184 920
Other operating expenses		19 201	16 608	72 111
Depreciations		212	183	733
Amortisation intangible assets	4	1 869	1 460	6 652
Amortisation implementation costs customer projects	5	4 710	3 540	17 037
IPO related costs		0		11 948
One off extraordinay impairment		0		4 854
Total operating expenses		84 332	65 684	311 284
Operating profit		9 851	8 451	14 861
Financial items
Financial income		610	195	708
Financial expense		-726	-444	-3 546
Net financial items		-117	-249	-2 838
Ordinary profit before tax		9 734	8 203	12 023
Income tax expense
Tax expense on ordinary profit		2 565	2 215	3 230
Total tax expense		2 565	2 215	3 230
Profit for the period		7 169	5 988	8 793
Profit attributable to:
- Owners of the parent		6 354	5 356	7 312
- Non-controlling interests		815	632	1 481
Earnings per share:
- Basic and diluted		0,03 %	0,16 %	0,04 %
- NOK		0,33	1,59	0,38

Consolidated Statement of Comprehensive Income

		2015	2014	2014
(NOK 1000)	Notes	Jan-Mar	Jan-Mar	Jan-Dec
		unaudited	unaudited
Profit for the period		7 169	5 988	8 793
Other comprehensive income
Items that will be reclassified to profit and loss in subsequent periods
Currency translation differences		-194	-563	-377
Total other comprehensive income		-194	-563	-377
Total comprehensive income		6 974	5 425	8 416
Total comprehensive income attributable to:
- Owners of the parent		6 159	4 793	6 935
- Non-controlling interests		815	632	1 481

Consolidated Statement of Financial Position

		2015	2014	2014
(NOK 1000)	Notes	31. Mar	31. Mar	31. Dec
ASSETS		unaudited	unaudited
Non-current assets
Intangible assets
Other intangible assets	4	30 636	22 389	29 624
Total intangible assets		30 636	22 389	29 624
Deferred tax asset		5 683	5 466	6 041
Fixed assets
Office equipment		175	308	224
Property, plant and equipment		1 910	1 719	2 083
Total fixed assets		2 084	2 027	2 308
Total non-current assets		38 403	29 882	37 973
Current assets
Trade accounts receivable		67 928	53 439	64 306
Customer projects	5	26 842	25 753	25 317
Other short-term receivables		7 070	7 551	4 346
Cash and cash equivalents		64 459	9 433	75 354
Total current assets		166 300	96 177	169 324
TOTAL ASSETS		204 703	126 058	207 297

Consolidated Statement of Financial Position

		2015	2014	2014
(NOK 1000)	Notes	31. Mar	31. Mar	31. Dec
EQUITY AND LIABILITIES		unaudited	unaudited
Equity
Paid-in capital
Share capital		1 912	339	1 912
Own shares - nominal value		-6	-6	-6
Share premium		67 498	18 441	67 498
Total paid-in capital		69 404	18 774	69 404
Retained earnings		25 913	22 915	19 753
Equity attributable to equity holders of the parent		95 317	41 689	89 157
Non-controlling interests		4 545	4 053	3 730
Total equity		99 862	45 742	92 887
Non-current liabilities
Deferred tax		1 498	3 542	1 531
Interest-bearing loans and borrowings		2 202	2 672	2 471
Employee defined benefit liabilities		0	101	28
Total long-term debt		3 700	6 315	4 031
Current liabilities
Trade accounts payable		8 156	12 128	12 493
Interest-bearing loan from shareholders		0	0	0
Income tax payable		3 265	3 274	3 399
Public duties payable		23 179	19 108	24 546
Other short-term debt		66 541	39 492	69 941
Total short-term debt		101 141	74 002	110 379
Total liabilities		104 841	80 317	114 410
TOTAL EQUITY AND LIABILITIES		204 703	126 058	207 297

Consolidated Statement of Cash Flow

		2015	2014	2014
(NOK 1000)	Notes	Jan-Mar	Jan-Mar	Jan-Dec
Cash Flow from operating activities		unaudited	unaudited
Operating profit		9 851	8 451	14 861
Depreciations and impairments		212	183	5 586
Amortisation intangible assets		1 869	1 460	6 652
Amortisation implementation costs customer projects		4 710	3 540	17 037
Customer projects		-6 235	-10 457	-23 518
Taxes paid		-2 342	-2 167	-3 633
Changes in accounts receivable and accounts payable		-7 959	1 691	-8 811
Changes in other short term debt and disposals		-7 602	-2 109	29 143
Net cash flow from operating activities		-7 496	593	37 318
Cash flows from investing activities
Purchase of fixed and intangible assets		-3 013	-1 248	-14 411
Net cash flow from investing activities		-3 013	-1 248	-14 411
Cash flows from financing activities
Net financial items		-117	-249	-2 838
Purchase of own shares			-
Proceeds from issue of new borrowings			-	2 880
Repayments of borrowings		-269	-464	-3 033
Changes in factoring debt			-	-
Dividend payments to non-controlling interest			-	-1 172
Proceeds from issue of new shares				49 274
IPO Costs of equity				-3 464
Net cash flow from financing activities		-386	-713	41 647
Net changes in cash and cash equivalents		-10 895	-1 368	64 553
Cash and cash equivalents at the beginning of the period		75 355	10 802	10 802
Cash and cash equivalents at the end of the period		64 459	9 433	75 355
Unused credit facilities		15 000	14 547	15 000

Consolidated Statement of Changes in Equity

				Total	Cumul.		Non
	Share	Own	Share	paid-in	translation	Other	controlling	Total
(in NOK 1000)	capital	shares	premium	equity	differences	equity	interests	equity
Equity at 01.01.2015	1 912	-6	67 499	69 404	-792	20 545	3 730	92 887
Profit of the period				-		6 354	815	7 169
Other comprehensive income				-	-194		-	-194
Other changes				-		-		-
Purchase/sale of own shares (net)				-				-
Dividend				-				-
Equity at 31.03.2015	1 912	-6	67 499	69 404	-986	26 898	4 545	99 862
(unaudited)
Equity at 01.01.2014	339	-6	18 442	18 774	-414	18 536	3 421	40 317
Profit of the period				-		5 356	632	5 988
Other comprehensive income				-	-563			-563
Other changes				-				-
Transaction costs related to IPO				-				-
Issue of new shares				-				-
Purchase/sale of own shares (net)				-				-
Dividend				-				-
Equity at 31.03.2014	339	-6	18 442	18 774	-978	23 892	4 053	45 742
(unaudited)
Equity at 01.01.2014	339	-6	18 442	18 774	-415	18 536	3 421	40 317
Profit of the year				-		7 312	1 481	8 793
Other comprehensive income				-	-377			-377
Other changes				-		-484		-484
Transaction costs related to IPO				-		-3 464		-3 464
Issue of new shares (20.06.2014)	217		49 057	49 274		-		49 274
Issue of new shares (13.05.2014)	1 356			1 356		-1 356		-
Purchase/sale of own shares (net)				-				-
Dividend							-1 172	-1 172
Equity at 31.12.2014	1 912	-6	67 499	69 404	-792	20 545	3 730	92 887

Notes to the interim consolidated condensed financial statements

Note 1 – General Information and basis for preparation

General information

Zalaris ASA is a public limited company incorporated in Norway. The Group's main office is located in Hovfaret 4, Oslo, Norway. The Group delivers full-service outsourced personnel and payroll services.

Zalaris' interim financial statements for the first quarter of 2015 were authorized for issue by the board of directors on 28.04.2015.

Basis for preparation

These interim consolidated condensed financial statements are prepared in accordance with International Accounting Standard 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (EU). The condensed interim financial statements do not include all of the information and disclosures required by International Financial Reporting Standards (IFRS) for a complete set of financial statements, and these condensed interim financial statements should be read in conjunction with the annual financial statements. The interim condensed consolidated financial statements for the nine months ended 30 September have not been audited or reviewed by the auditors.

A description of the significant accounting policies is included in Zalaris' annual financial statements for 2014, and applies to these interim consolidated condensed financial statements. New and amended standards applicable for the period starting 1 January 2015 did not have any effect for the company.

Going concern

With reference to the Norwegian Accounting Act § 3-3, the Board confirms its belief that conditions exist for continuing operations and that these interim consolidated condensed financial statements have been prepared in accordance with the going concern principle.

Note 2 – Segment Information

The company has three operating segments, which are Outsourcing, Cloud Services and Consulting Outsourcing, offering a full range of payroll and HR outsourcing services including payroll processing, time and attendance and travel expenses. Consulting delivers turnkey projects based on Zalaris template or implementation of customer-specific functionality. They also assist customers with cost-effective maintenance and support of customers' own on-premise solutions. The Cloud services unit is offering additional cloud-based HR functionality to existing outsourcing customers as talent management, digital personnel archive, HR analytics, mobile solutions, etc., and was divided into its own reporting segment from 2014.

Information is organized by business area and geography. The reporting format is based on the Group's management and internal reporting structure. Items that are not allocated are mainly intercompany sales, interest-bearing loans and other associated expenses and assets related to administration of the Group. The Group's key management is the chief decision maker in the Group. The investing activities comprise total expenses in the period for the acquisition of assets that have an expected useful life of more than one year.

Jan-Mar 2015

(NOK 1.000)	Outsourcing	Cloud	Consulting	Non allocated	Total
Other operating income, external	90 222	258	3 703		94 183
Other operating expenses	-75 961	-227	-1 352		-77 540
Depreciation and amortisation	-6 704	-6	-82		-6 792
Operating profit/(loss)	7 557	25	2 269	-	9 851
Cash flow from investing activities				-3 013	-3 013

Jan-Mar 2014

(NOK 1.000)	Outsourcing	Cloud	Consulting	Non allocated	Total
Other operating income, external Other operating expenses	71 585 -60 095	128 -108	2 421 -298		74 135 -60 501
Group depr. and amortisation	-5 127	-3	-54		-5 183
Operating profit/(loss) Cash flow from investing activities	6 364	17	2 070	- -1 248	8 451 -1 248

2014

(NOK 1.000)	Outsourcing	Cloud	Consulting	Non allocated	Total
Other operating income, external	308 843	6 617	10 685		326 145
Other operating expenses	-255 542	-5 199	-9 321		-270 062
Depreciation and amortisation	-29 145	-33	-98		-29 275
IPO related costs				-11 948	-11 948
Operating profit/(loss)	24 156	1 386	1 266	-11 948	14 861
Cash flow from investing activities				-14 411	-14 411

Geographic Information

The Group's operations are carried in several countries, and information regarding revenue based on geography is provided below. Information is based on location of the entity generating the revenue, which to a large extent, corresponds to the geographical location of the customers.

Revenue from external customers attributable to:

		2015		2014		2014
(NOK 1000)	as % of total	Jan-Mar	as % of total	Jan-Mar	as % of total	Jan-Dec
Norway	49 %	45 962	42 %	31 496	46 %	151 480
Sweden	21 %	20 109	24 %	17 692	20 %	64 923
Denmark	16 %	14 749	18 %	13 377	19 %	60 598
Finland	12 %	11 482	14 %	10 677	14 %	44 610
Other	2 %	1 881	1 %	893	1 %	4 534
Total	100 %	94 183	100 %	74 135	100 %	326 145

Information about major customers

		2015		2014		2014
(NOK 1000)	as % of total	Jan-Mar	as % of total	Jan-Mar	as % of total	Jan-Dec
5 largest customer	48 %	45 022	45 %	33 316	47 %	153 930
10 largest customer	66 %	62 199	65 %	48 106	65 %	212 002
20 largest customer	81 %	75 901	80 %	59 277	80 %	260 308

Note 3 – Personnel Costs

	2015	2014	2014
(NOK 1000)	Jan-Mar	Jan-Mar	Jan-Dec
Salary	43 892	40 718	122 968
Bonus	1 562	1 525	4 684
Social security tax	3 824	5 098	16 669
Pension costs	4 429	3 816	11 355
Other expenses	8 102	2 389	58 382
Capitalised development expenses	-2 086	-512	-2 897
Capitalised implementation costs customer projects	-5 963	-11 624	-26 240
Total salary expenses	53 760	41 410	184 920
Average number of employees:	407	363	301
Average number of FTEs:	375	338	261

Note 4 – Other Intangible Assets

		Internally	Internally developed software
	Licenses and	developed	under
(NOK 1000)	software	software	construction	Total
Acquisition cost
Accumulated 1 January 2014	30 850	28 753	6 068	65 671
Additions of the period	-	389	1 174	1 563
Disposals of the period	-	-	-389	-389
Currency effects	-63	-20		-83
Accumulated 31 March 2014	30 787	29 122	6 852	66 761
Accumulated 31. December 2014	35 684	39 466	4 373	79 523
Additions of the period	-	457	2 977	3 434
Disposals of the period			-457	-457
Currency effects	-164	-89		-253
Accumulated 31. March 2015	35 520	39 834	6 893	82 247
Amortisation
Accumulated 1 January 2014	22 997	19 988	-	42 985
Disposals of amortisation and currency effects	-55	-18		-73
This periods ordinary amortisation	686	774		1 460
Accumulated 31 March 2014	23 628	20 745	-	44 372
This periods ordinary amortisation	686	774	-	1 460
Disposals of amortisation and currency effects	-130	-28		-158
This periods ordinary amortisation	647	1 222	-	1 869
Accumulated 31. March 2015	1 203	1 969	-	3 172
Book value
Book value at 31 December 2013	7 852	8 765	6 068	22 685
Book value at 31. March 2014	7 159	8 378	6 852	22 389
Book value at 31 December 2014	9 833	15 417	4 373	29 624
Book value at 31. March 2015	9 152	14 591	6 893	30 636

Note 5 – Customer Projects

Costs related to delivering outsourcing contracts are recognized as they are incurred. However, a portion of costs incurred in the initial phase of outsourcing contracts (transition and/or transformation costs) may be deferred when they are specific to a given contract, relate to future activity on the contract and/or will generate future economic benefits, and are recoverable. These costs are allocated to work-in-progress (customer projects), and any prepaid revenues by the client are recorded as a deduction from the costs incurred in the balance for customer projects. The deferred costs are expensed evenly over the period the outsourcing services are provided and included in the line item "Amortization implementation cost customer projects."

	2015	2014	2014
(NOK 1000)	Mar	Mar	Dec
Deferred costs related to customer projects	69 455	60 915	69 729
Deferred revenue related to customer projects	-42 613	-35 163	-44 412
Net customer implementation costs	26 842	25 752	25 317

Note 6 – Transactions with Related Parties

There have been no material transactions with related parties during the reporting period 1st of January to 31st of March 2015. Please refer to the annual financial statements for further information.

Note 7 – Events after Balance Sheet Date

There have been no events after the balance sheet date significantly affecting the Group's financial position.

The quarter in pictures

Swedish Global Fortune 500 company selects Zalaris as Nordic HR and Payroll Outsourcing Partner.

Biorefinery Leader Borregaard goes live with Zalaris services including payroll, travel expense, time and attendance through thirdparty integration as well as personnel administration services.

Zalaris employees Girts Arnitis and Janis Bicans succeeded to win the cup and take our sponsored basketball team in Riga, BK Zalaris/Emerald, to 1st in the league.

For questions, please contact

Nina Stemshaug CFO nina.stemshaug@zalaris.com +47 982 60 394

Hans-Petter Mellerud CEO hans-petter.mellerud@zalaris.com +47 928 97 276

Zalaris ASA Hovfaret 4B 0275 Oslo Norway

Financial information

Annual report 2014 April 23, 2015 Interim report Jan. – Mar. 2015 April 29, 2015 Interim report Apr. – Jun. 2015 August 20, 2015 Interim report Jul. – Sep. 2015 October 28, 2015 Interim report Oct. – Dec. 2015 Ultimo Feb., 2016

All financial information is published on Zalaris' website: www.zalaris.com, investor relations section.

18 Zalaris Interim Report 2015-Q1 www.zalaris.com Financial reports can also be ordered from Zalaris ASA PO Box1053 Hoff 0218 Oslo Norway

or by e-mail: ir@zalaris.com