Zalaris

Earnings Release • Aug 25, 2022

Second quarter 2022 financial results

Second quarter 2022 financial results

Zalaris ASA (Zalaris, OSE:ZAL) reported record-high revenues in the second

quarter of 2022 of NOK 210.2 million, up 13.4 percent from the same period in

2021, reflecting strong underlying fundamentals.

"Zalaris continued its strong start to 2022 with another quarter of record-high

revenues, driven by new customer wins. The growth in demand for our services

remains strong, as customers look to digitise and improve their people

processes," says Hans-Petter Mellerud, Chief Executive Officer of Zalaris.

The reported revenues of NOK 210.2 million in the second quarter of 2022

compares to NOK 185.4 million in the second quarter 2021. Adjusted EBIT*,

excluding the recently launched APAC operations, was NOK 10.2 million in the

second quarter, compared to NOK 11.4 million in the second quarter of 2021. The

reported EBIT ended at NOK 1.2 million (3.1).

"The company grew almost 15 percent in the quarter in constant currency. We have

recently made several notable wins, which has given us a lot of attention

resulting in opportunities that have the potential to take us to the next

level," adds Mellerud.

Zalaris invested NOK 3.4 million in the planned market expansion in APAC in the

second quarter.

"We are very encouraged by the development of the APAC unit so far, having

recently entered into the first agreement for a new cloud-based HR solution. We

target positive EBIT starting from Q3 2022 and a doubling of the current monthly

revenue by the third quarter next year," says Mellerud.

Zalaris is well positioned and benefitting from an underlying positive market,

with double-digit growth rates for multi-country payroll and cloud-based HR

services.

"Our underlying fundamentals remain strong, and we have a solid pipeline of

potential new sales in all regions. As our services allow customers to focus on

their core business and streamlining their operations, we believe we will

continue to benefit from the current uncertainties in the market," Mellerud

concludes.

Zalaris will host a streamed management presentation at 08:30 CET followed by a

Q&A session. The webcast will be available on ir.zalaris.com or directly on

Teams (https://teams.microsoft.com/l/meetup

-join/19%3ameeting_MDc0YmUyNzUtNDk1ZC00MGNkLTkzYjEtMGUxMzA5Y2JjMTlj%40thread.v2/0

?context=%7B%22Tid%22%3A%22a16eb8e2-803d-4f22-849c

-f3f335a60a39%22%2C%22Oid%22%3A%22bf49dddc-8238-4b99-a279

-e3cd579293a1%22%2C%22IsBroadcastMeeting%22%3Atrue%2C%22role%22%3A%22a%22%7D&btyp

e=a&role=a).

The presentation of the second quarter 2022 financial result and the Board of

Director's report are enclosed.

Zalaris ASA Q2 2022 Presentation (https://ir.zalaris.com/wp

-content/uploads/sites/3/2022/08/Zalaris-ASA-Q2-2022-Presentation.pdf)

Zalaris ASA Q2 2022 Report (https://ir.zalaris.com/wp

-content/uploads/sites/3/2022/08/Zalaris-ASA-Q2-2022-Report.pdf)

*Adjusted EBIT and other alternative performance measures (APMs) are defined and

reconciled to the IFRS financial statements as a part of the APM section of the

second quarter 2022 financial report on page 24 and 26.

Contact:

Hans-Petter Mellerud, CEO

Mobile: +47 928 97 276

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

Gunnar Manum, CFO

Mobile: +47 951 79 190

E-mail: gunnar.manum@zalaris.com

About

Zalaris simplify HR and payroll administration, and empower you with useful

information so that you can invest more in people. We are a leading service

provider of Human Capital Management (HCM) solutions, serving more than 1.5

million employees monthly with an annual revenue of more than 80 million Euros.

We hold #1 or #2 positions in most of our markets, and carry over two decades of

experience in transforming HR and support creating sustainable businesses with

our clients. Simplify work life. Achieve more. For more information about us, go

to zalaris.com.

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements according

to section 5-12 of the Norwegian Securities Trading Act. The information was

submitted for publication by [Gunnar Manum], CFO, on behalf of the company on

the time and date set out above.