Zalaris

Earnings Release • Feb 28, 2023

Fourth quarter 2022 financial results

Fourth quarter 2022 financial results

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

quarter of 2022 of NOK 250.6 million, up 24.2 percent from the same period in

2021, reflecting strong underlying fundamentals.

"The company grew more than 22 percent in the quarter in constant currency. We

made several good wins in the fourth quarter, and several potential large new

contracts are in the final contracting stage. We are well positioned to deliver

on the landmark of generating NOK 1 billion in revenue by the end of 2023." says

Hans-Petter Mellerud, Chief Executive Officer of Zalaris.

The reported revenues of NOK 250.6 million in the fourth quarter of 2022

compares to NOK 201.7 million in the fourth quarter 2021. Adjusted EBIT*,

excluding the APAC operations launched in the first quarter, was NOK 15.9

million in the fourth quarter, compared to NOK 10.2 million in the fourth

quarter of 2021. The reported EBIT ended at NOK 9.7 million compared to NOK 1.5

million to the fourth quarter of 2021.

To increase earnings, a detailed plan for annual EBIT improvements of 40 - 50

million by the end of 2023 has been launched and is progressing according to

plan. The increase will come through direct cost improvements, as increased use

of delivery centers in Latvia, Poland and India, improved scheduling of

resources and contribution from new signed contracts.

Zalaris is well positioned with global delivery capability and is ready to take

on new, large projects. The aim is to help customers simplify work life and

achieve more.

"There are many challenges facing businesses right now in these unsettling times

with high inflation, wage hikes and soaring energy bills. Corporations need to

be resilient, yet agile, disciplined innovation is also crucial. But enterprises

cannot cope alone. They need to reduce and variablise costs and in parallel

access skills and capabilities that also evolve. As our market success proves,

outsourcing is seen as a solution. It's why it is going through a significant

pivot point, particularly in payroll and HR solutions and services." - Mellerud

concludes.

Zalaris will host a streamed management presentation at 08:30 CET today 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_YmFiOTgzMzctYWY4My00YWU0LWFiYzktY2EyYmJlNDc3YjI4%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 fourth quarter 2022 financial result and the financial

report are enclosed.

· Zalaris ASA Q4 2022 Presentation (https://ir.zalaris.com/wp

-content/uploads/sites/3/2023/02/Zalaris-ASA-Q4-2022-Presentation.pdf)

· Zalaris ASA Q4 2022 Report (https://ir.zalaris.com/wp

-content/uploads/sites/3/2023/02/Zalaris-ASA-Q4-2022-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 fourth quarter 2022 financial report on page 24 to 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

Zalaris (OSLO: ZAL) simplifies 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 Experience Management (HXM) solutions across Europe,

serving more than 1.5 million employees with an annual revenue of NOK 893m

(2022). We hold #1 or #2 positions in most of our markets. Our consultants have

more than 21 years of experience in transforming HR with our clients. Simplify

work life. Achieve more. For more information, go to www.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.