ZALARIS: 2017 First Quarter Results

Margins above target, multiple wins and expansion plans realized 

Zalaris' Q1/17 revenues were up 8.0% to NOK 106.4 million, with an 
EBIT margin of 10.1%. Multiple wins for international clients and an 
agreement announced yesterday to acquire the company sumarum AG in 
Germany kick off the company's expansion plans.

Zalaris, a leading provider of payroll and HR services, delivered 
solid results in Q1/17 with continued strong growth and margins 
above target. Sales increased 8.0% to NOK 106.4 
million in Q1/17 from Q1/16, with a corresponding EBIT of NOK 10.7 
million (10.1%) for the period. 

'2017 started well with an encouraging level of activity and 
numerous wins and developments that further strengthen Zalaris for 
the future. Our record-high 203 000 employees served each month also 
materialized in strong growth in Q1/17', says Hans-Petter Mellerud, 
Zalaris' CEO and founder.

Continued growth for cloud
The cloud services business maintains a trend of significant 
revenues growth with an increase of 171.3% up to NOK 13.6 million 
(NOK 5.0 million). Cloud services now represent 14 per cent of total 
operating profit.

'Both new and exisiting customers require solutions in the cloud, 
which has boosted activity for our cloud division. This will 
increase in importance also in the period to come', Mellerud says.

Multiple wins
Zalaris delivered multiple wins with multinational clients in the 
quarter, such as Norsk Hydro ASA, a European energy champion and Siemens. An 
extension agreement with Norsk Hydro ASA to provide payroll and HR 
services to Hydro's 4 400 employees and 8 100 pensioners in Norway 
was signed. 

One of Europe's largest generator of renewable energy chose 
Zalaris to deliver solutions and services to more than 3 000 
employees in four countries, further supporting Zalaris' expansion 
into the UK and Germany. A five-year renewal with the industrial 
champion Siemens for its Swedish operations is also signed.

'These wins are evidence of our ability to deliver continued growth. 
We see substantial opportunities for further growth on our scalable 
platform', says Mellerud.

On 26 April Zalaris announced that it has acquired the leading 
German HR Outsourcing company sumarum AG. Please see more 
information in yesterday's release. 

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, Sweden 
and Germany, including local-language service centers with extensive 
expertise in HR- related laws and regulations. 

Learn more about Zalaris at www.zalaris.com