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© zalaris 2025 Zalaris ASA Presentation of financial results Q4 2024 28th of February 2025
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© zalaris 2025 © zalaris 2025 Page 2 The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or anyof its contents. This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Zalaris ASA (“Company”). The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions. This presentation includes and is based, inter alia, on forward-looking information and contains statements regarding the futurein connection with the Company’s growth initiatives, profit figures, outlook, strategies and objectives. All forward-looking information and statements in this presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for the Company. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar expressions. Important factors may lead to actual profits, results and developments deviating substantially from what has been expressed or implied in such statements. Although the Company believes that its expectations and the presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the presentation. The Company is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of thepresentation, and neither the Company nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use. Disclaimer
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© zalaris 2025 Agenda Highlights Financial review Outlook Q&A Appendix: Company in brief Hans-Petter Mellerud CEO and Founder Gunnar Manum CFO Today’s presenters
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© zalaris 2025 Highlights
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© zalaris 2025 Strong growth: Revenue increased 16.5% YoY to NOK 365 million with Net Revenue Retention in Managed Services of 104% High EBIT: adj. EBIT of NOK 47.4 million (13.1%), up from NOK 33.4 (10.7%) last year Strong sales pipeline in both Managed Services and Professional Services securing continued growth Improved cash flow: Operating cash flow of NOK 57 million, up from NOK 44 million last year The board will propose a dividend of NOK 0.90 per share for 2024 The strategic review process announced in April last year is still ongoing All time high revenue and adj. EBIT in Q4 2024
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© zalaris 2025 Positive development in sales continued in Q4 Global Payroll Outsourcing and SuccessFactors for IONOS for 5,400 employees in 25 locations, including Germany, Spain, the United Kingdom, Romania, France, the USA, Philippines, Poland, and Austria. Osnabrück TechnipFMC UK for PeopleHub (SaaS) Payroll for up to 3,000 employees Highest Sales Quarter to date in APAC with closing of 37 deals and a total of EUR 2.6 Million sold. City of Osnabrück for the first Privat Public Cloud contract covering 3,200 employees
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© zalaris 2025 Managed Services grew 20% YoY to MNOK 275 and 75% of total revenue. Revenue in Managed Services grew by 20.3% YoY (+17.3% growth YoY when adj. for currency effects) 104% Net Revenue Retention YoY in constant currency as existing customers expand their geographic footprint and functionalities Significant growth in all regions in local currency. DACH: +25% Northern Europe: +15% UK&I: +7% Revenue Managed Services NOK 275.3m (+20.3%) *Revenue in local currency converted to NOK using the avg. currency rate from the quarter last year. See the interim financial report for definitions of APMs 228.9 Q4-23 232.7 186.0 242.3 Q4-22 Q2-24 253.7 186.7 Q3-24 275.3 Q1-23 Q4-24 268.6 204.0 Q4-24 constant currency* Q2-23 200.0 Q3-23 Q1-24 +20%
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© zalaris 2025 Revenue in Professional Services was 3.5% lower YoY (-5.3% when adjusted for currency effects). Revenue reduction is mainly due to the partial completion of a large consulting project in UK Significant PS capacity being utilized to support Managed Services in implementing new customers (transformation projects) or delivering change orders. Particularly in Germany Consulting revenue was 3% lower YoY mainly due to less consulting projects in UK Revenue Consulting (Professional Services) NOK 72.7m (-3.5%) 75.3 Q4-23 76.8 61.9 69.7 Q4-22 Q2-24 71.670.5 Q3-24 71.4 Q1-23 Q4-24 constant currency* 72.3 Q2-23 72.9 Q4-24 72.7 Q3-23 Q1-24 -3.5% *Revenue in local currency converted to NOK using the avg. currency rate from the quarter last year. See the interim financial report for definitions of APMs
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© zalaris 2025 Financial Review
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© zalaris 2025 Revenue increased by 17% for the quarter YoY in constant currency Q4-22 Q1-23 Q2-23 Q3-23 313.2 Q4-23 Q1-24 Q2-24 Q3-24 364.9 Q4-24 356.2 Q4-24 in constant currency* 17% 14% Revenue NOK 364.9m (+16.5%) *See the interim financial report for definitions of APMs Revenue growth (as reported) for the quarter YoY: +16.5% Revenue growth +13.6% YoY in constant currency* MS +20.3% to NOK 275m • Net retention of 104% PS -3.5% to NOK 73m Net new SaaS/BPaaS contracts signed, but yet to go live, has annual recurring revenue* of ~NOK 57m
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© zalaris 2025 Strong revenue visibility through 2025/26 - full annual effect of new BPO customers should result in >12% revenue increase compared to revenue FY 2024 Total annual revenue expected to increase by ~NOK 168m (+12%) vs. FY 2024 by Q1’26, based on already signed contracts (assuming no material churn and based on avg. currency rates for Q4’24) Estimated future revenue increased by NOK 44m vs. Q3’24, due to new contracts in Q4’24 (NOK 28m) and higher recurring revenue from existing customers in the quarter The new contracts will normally generate full monthly recurring revenue when the customer has gone live on the PeopleHub platform • All current contracts expected to be fully implemented by Q1’26 Estimated future annual revenue assumes MS change order level at historical ~12% of recurring revenue, and revenue from PS & APAC FY 2024 992 1 049 1 175 1 514 126 339 ARR* MS Q4-24 57 ARR net new signings yet to go live Contracted ARR Q4- 2024 Change orders MS Est. new annual revenue MS PS revenue & APAC FY 2024 Estimated future annual revenue *The ARR for the quarter is an estimate calculated by annualising the actual recurring revenue (according to contract revenue and additional services) for the quarter, for customers at the end of the quarter. Please refer to the APMs section of the interim financial report for further details. Contracted ARR* development over time (NOKm) 992 Q4-24 977 Q1-25 1 000 Q2-25 1 014 Q3-25 1 014 Q4-25 1 049 Q1-26 Revenue development based on signed MS contracts (NOKm)
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© zalaris 2025 33.4 10.7% Q4-23 34.8 10.9% Q1-24 28.4 8.8% Q2-24 37.0 10.9% Q3-24 Q4-24 47.4 13.1% Adj. EBIT NOK 47.7 (NOK 33.4m) +42% Adj. EBIT margin 13.1% (+2.4pp) EBIT and margin improvements from increased revenue (lower unit cost) and operational improvements in NE and Germany (e.g. larger share of services in MS delivery from near-shore and offshore locations) APAC contributing with a positive EBIT for the quarter MS: Adj EBIT NOK 45.4m (NOK 29.3m) +55% Positively impacted by operational improvements in NE and Germany (ref. above) PS: Adj. EBIT NOK 5.7m (10.7m) -47% Adversely impacted by lower revenue, however increased utilisation vs. Q3’24 had a positive impact on margins Adj. EBIT* (NOKm) and margin (%) All time high adj. EBIT for the quarter 30.6 13.4% Q4-23 32.7 14.1% Q1-24 33.4 13.8% Q2-24 45.4 17.9% Q3-24 Q4-24 57.1 20.7% 10.7 14.2% Q4-23 9.9 12.9% Q1-24 2.3 3.3% Q2-24 5.2 7.3% Q3-24 Q4-24 5.7 7.8% MS – adj. EBIT* (NOKm) and margin (%) PS – adj. EBIT* (NOKm) and margin (%) *See the interim financial report for definitions of APMs
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© zalaris 2025 2024 2023 2024 2023 * (NOK 1 000) Oct-Dec Oct-Dec Jan-Dec Jan-Dec Revenue 364 876 313 211 1 346 282 1 133 971 License costs 28 711 26 498 108 074 103 231 % of revenue 7,9 % 8,5 % 8,0 % 9,1 % Personnel expenses 174 545 153 650 674 778 589 845 % of revenue 47,8 % 49,1 % 50,1 % 52,0 % Other operating expenses 92 107 81 229 347 642 287 068 % of revenue 25,2 % 25,9 % 25,8 % 25,3 % (Gain)/loss on sale of assets (10 503) - Amortisation implementation costs customer projects 15 542 9 915 49 581 33 765 Depreciation, amortisation and impairments 16 253 15 719 63 058 59 940 EBIT 37 718 26 200 113 652 60 122 Adjustment items** 9 710 7 200 33 862 35 647 Adjusted EBIT 47 428 33 400 147 514 95 768 Net financial income/(expense) (12 993) (15 693) (64 196) (74 630) Profit/(loss) for the period 13 404 20 881 33 446 (2 962) Total comprehensive income 15 966 22 473 56 864 26 798 * 2023 accounts are reclassified with vyble from discontinued to continued operations Condensed Profit and Loss License costs: Increased due to higher revenue from Payroll/HR solutions that incurs license costs Personnel expenses: Revenue per FTE in constant currency increased by ~9%. Cost increase mainly due to increased number of FTEs YoY (+44) and currency impact. Other op. exp.: Reduced as a % of revenue (-0.7pp). Higher expenses mainly from use of external payroll providers for global payroll, external hosting, **Items excluded in adjusted EBIT Q4 2024: share-based payments (NOK 5.1m), amortization of excess values on acquisitions (NOK 3.6m), strategic process costs (NOK 0.8m) and negative EBIT vyble (NOK 0.3m) - see definition of adj. EBIT under APMs in the interim financial report
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© zalaris 2025 Cash flow from operating activities of NOK 57.4m vs. NOK 44.1m last year Cash balance at 31 December NOK 221.8m (+NOK 41.7m from Q3) Net interest-bearing debt of NOK 247.5m vs. NOK 286.4m at the end of previous quarter -2.2 Other****Cash Q3-24 72.2 EBITDA* -15.0 Revenue recognised customer projects (non-cash) -2.0 Customer projects** -8.8 Lease payments*** -9.3 Net interest 180.1 221.813.3 Net working capital -4.9 Capex -1.6 Share options settled in cash Cash Q3-24 Operating cash flow increased by NOK 13m YoY to NOK 57m Development in cash balance (NOKm) * Before share based payment costs (ex. payroll taxes) ** Revenue deferred less project costs capitalised *** Relates mainly to rental costs for office premises **** Including currency movements
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© zalaris 2025 Outlook
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© zalaris 2025 Results from introducing AI tools start to show as faster speed, improved productivity and quality German improvement program deliveries in Q4 now support revising EBIT target range from 12-15% to 13-15% to materialized by end of the year Revenue growth ahead of target run rate of NOK 1.5 billion by 2026 as this likely will be met in 2025. On track delivering target revenue of NOK 1.5bn by 2026 and tightening adj. EBIT target to 13-15% based on 2024 actuals Key growth and margin initiatives 1 2 3 73% 27% 2021 2022 2023 2024 2026 Target 775 893 1,131 1,346 1,630 NOKm MS PS 68% 32% 72% 28% ~80% ~20% Revenue share % Revenue development and revenue target 1,500 75% 25%
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© zalaris 2025 Summary: Q4 all-time high revenue and EBIT as improvements in Germany continue to materialize • Revenue grew 16,5% to NOK 365 million for the quarter and well positioned to deliver revenue target of 1,5 billion in 2025 • Growth continue with contract signings of almost 140 million to be recognized over the coming years • EBIT improvements continued delivering more than 13% EBIT in the quarter. Support tightening target EBIT range going forward from 12-15% to 13-15% • Cash flow of 57 million, up from 44 million last year. Cash reserves increased almost 90 million Y-o-Y • Board will propose a dividend of NOK 0.90 per share • Strategic Review is progressing
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© zalaris 2025 Q&A
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© zalaris 2025 Simplify work life. Achieve more. Thank you! We simplify HR and payroll administration, and empower you with useful information so that you can invest more in people. Zalaris ASA | +47 4000 3300 | www.zalaris.com