Zalaris

Earnings Release • Oct 26, 2016

ZALARIS: 2016 Third Quarter Results

ZALARIS: 2016 Third Quarter Results

Continued growth, solid margin improvement

Zalaris' Q3/16 revenues were up 5.4% to NOK 97.7 million,

with an EBIT margin at 9.4%. Top analysts continue to

recognize Zalaris as top performer in a healthy growth

market.

Zalaris, a leading provider of payroll and HR services,

delivered solid results in Q3/16 with continued growth and

margins close to target. Sales increased 5.4% to NOK 97.7

million in Q3/16 from Q3/15, with a corresponding EBIT of

NOK 9.2 million (9.4%) for the period.

"We continued growing in Q3 and delivered operational

improvements resulting in robust margins. Prospects are

promising based on both internal improvements and recent

market developments, says Hans-Petter Mellerud, Zalaris' CEO

and founder.

Zalaris' Chennai-based service center celebrated one-year

anniversary with doubled workforce, advancing improvements

for the company. The service center represented more than 20

per cent of the company's total service and support hours in

Q3/16.

"Our Chennai service center increasingly enables us to

optimize customer service at lower cost levels. The shift

towards increased production in Chennai continues with full

force, and full margin effect is expected in Q2/17",

Mellerud comments.

Zalaris served more than 200,000 employees on a monthly

basis in Q3/16. The company adapted organizational structure

to support market changes and potential to expand into other

countries.

"Many companies are starting to respond to the opportunities

from digitalization, embarking on new business models and

partnerships. Talent management and HR are at the core of

enabling the change and leaders are increasingly looking for

more modern and flexible HR support. Top industry analysts

continue to recognize Zalaris as "Star Performer" in this

healthy growth market", Mellerud says.

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