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Milestone quarter, new markets opened up


Zalaris' Q2/17 revenues were up 33.2% to NOK 126.9 million (incl. 
sumarum AG which was acquired in the quarter and included from 18 
May), with an EBIT margin of 5.7%. First half-2017 pro forma 
revenues for the combined entity are 15.4% higher compared to the 
same period in 2016.

Zalaris, a leading provider of payroll and HR services, announced 
mid-May the acquisition of sumarum AG. Through the acquisition, 
Zalaris is gaining an immediate access into Germany, Europe's 
largest economy with more than 80 million people and a high 
concentration of medium-size and large international companies. 

"Q2 of 2017 has been a milestone quarter for Zalaris staking out a 
new direction for growth. We are also happy to deliver continued 
growth as new customers have come aboard in this quarter, says Hans-
Petter Mellerud, Zalaris' CEO and founder.

The acquisition also introduces the company to other German speaking 
countries on the continent, notable Switzerland and Austria.

Twofold growth
Growth continues, both organically and through the acquisition of 
sumarum. Sales increased 33.2% to NOK 126.9 million in Q2/17, 
including sumarum. On a stand-alone basis, Zalaris grew 7.9%, 
booking revenues of NOK 102.9 million for the quarter.
 
Profit in Q2 was marked by the usual seasonal variations for both 
Zalaris and sumarum. After a strong Q1/17, EBIT, excluding other 
costs, reached NOK 7.2 million or a profit margin of 5.7% in the 
quarter. NOK 10.8 million in other costs were related to the 
acquisition of sumarum.

Continued growth for cloud
The cloud services business maintains a trend of significant 
revenues growth up to NOK 18.9 million (NOK 6.0 million) in Q2/17. 
Cloud services now represent 14.9% of total revenues.

"All customers now require cloud solutions, boosting demand and 
activity for our Cloud business. We believe this trend will continue 
and perhaps even gain further momentum in the coming years", 
Mellerud says.

Zalaris' Cloud business added five-year contract to deliver SAP 
SuccessFactors-based cloud services to China Euro Vehicle 
Technology, a Sweden-based automotive innovator with an estimated 2 
000 employees and contractors. Statkraft chose Zalaris to deliver 
solutions and services to more than 3 000 employees in four 
countries.

New colleagues in Germany
On 26 April Zalaris announced the acquisition of the leading German 
HR outsourcing company sumarum AG. The DACH area, comprising 
Germany, Austria and Switzerland, now represents the second most 
important geographical market for Zalaris after Norway (in Q3/17). 

Pro forma revenues for the combined entity in H1/17 of NOK 305.6 
million represents a 15.4 per cent growth compared to 50% of the FY 
2016 as presented in the information memorandum describing the 
transaction.

"Whether looking internally at our operations or externally at 
market opportunities, we have never been in a better position to 
become a leading international provider of innovative cloud-based 
payroll and HR services", Mellerud states.

All integration efforts are progressing well in accordance with 
overall plans. 


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