Zalaris (ZAL) investor relations material

Executive summary

• Achieved record Q1 revenue of NOK 371.9 million, up 0.5% year-on-year (2.1% in constant currency), driven by strong Managed Services growth and new contract wins, while Consulting revenue declined due to project completions.

• Managed Services accounted for 80% of total revenue, with 7.9% growth in constant currency and significant new long-term contracts totaling NOK 75 million in annual recurring revenue.

• Adjusted EBIT was NOK 42.3 million (11.4% margin), down from NOK 52.1 million last year, mainly due to lower Consulting activity and increased business development investments.

• Net profit for the quarter was NOK 25.8 million, nearly flat compared to NOK 25.5 million last year, with total comprehensive income of NOK 6.9 million.

• Board unanimously recommended a voluntary cash offer for all shares at NOK 100 per share, with no dividend proposed for 2025.

Financial highlights

• Q1 revenue reached NOK 371.9 million (+0.5% YoY); Managed Services revenue: NOK 296.1 million (+7.9% in constant currency); Consulting revenue: NOK 75.0 million (-15.5% in constant currency).

• Adjusted EBIT was NOK 42.3 million (11.4% margin); EBIT was NOK 29.3 million (7.9% margin), both down year-on-year due to Consulting slowdown.

• Net interest-bearing debt decreased by NOK 26 million sequentially to NOK 190.7 million.

• Operating cash flow was NOK 11.5 million, in line with last year.

• Interest expenses reduced by 55% year-on-year due to improved refinancing terms.

Outlook and guidance

• Strong revenue visibility for 2026 and beyond, with signed contracts under implementation projecting over 6% growth versus 2025 and new BPO contracts expected to add NOK 53 million in annual recurring revenue.

• Targeting NOK 2 billion run-rate revenue and 13–15% adjusted EBIT margin by Q4 2028, with 10% annual productivity improvement through AI and automation.

• Maintains guidance of 1.5-3% annual churn and 10% average annual revenue growth.

• Consulting revenue upside and additional Managed Services contracts anticipated in coming months.

• No dividend proposed for 2025 due to the recommended voluntary offer for all shares.