Good morning. I'm Hans-Petter Mellerud, the CEO and founder of Zalaris, and joining me today for this webcast presentation of Zalaris 2026 Q1 results is our CFO, Gunnar Manum.

Please note that the presentation is being recorded, and you can access the recording in the investor section of our website. In today's presentation, I will first walk you through the key highlights of the quarter.

Gunnar will then provide a detailed review of the financial performance, and after that, I'll return to discuss the outlook for our business before we conclude with our regular Q&A session, where you can submit questions through the chat function. Let's start with the highlights.

We're seeing continued strength in managed services, while consulting slowed temporarily this quarter. That consulting slowdown is the main driver behind the lower EBIT and margin versus last year.

Managed services revenue was 296 million, up 8% year-on-year in constant currency, and now maintains its revenue share of 80% from last quarter. Adjusted EBIT was 42.3 million, with an 11.4% margin.

We are focused on restoring consulting's utilization as activity normalizes. We also signed new long-term managed services contracts in Q1 totaling approximately 75 million in annual recurring revenue, and we continued to strengthen the balance sheet.

Operating cash flow was 11.5 million, and net interest-bearing debt is down 26 million quarter-on-quarter to 191 million. In Q1, we signed deals that increase ARR, as mentioned, with 75 million, and we are delivering on the sales target required to sustain 15% growth in managed services.

Momentum is improving because customers are prioritizing digital transformation, increasing focus on core activities and cost reduction, exactly where our managed offerings create measurable value. We also have strong confidence signal from the pipeline; agreements are in contracting and signing phase.

We are seeing more deals with targeted signature within the next three months. We have clear proof points from some of the larger wins we secured in the quarter: NAV public sector SaaS payroll and HR for 24,000 employees in Norway; UK-headquartered customer with multi-country outsourced payroll for 6,000 employees across EMEA; Swiss MedTech five-year outsourced payroll for 6,000 employees in Switzerland and Germany; and a German carve-out five-year global payroll, time and absence, travel expenses, and HR for 1,200 employees.

Next, we will convert the near-term pipeline, deliver these contracts, and build ARR consistently throughout the year. On the 13th of March, we announced a voluntary cash offer for Zalaris.

The offer was launched on 15th of April, and the offer period runs from 16th of April to the 30th of April, that is this Thursday. The board of directors has unanimously recommended the offer.

The key terms are NOK 100 per share with a minimum acceptance condition of more than 90% of the outstanding shares. As a result of the offer, the board intends to propose that no dividend is paid for the financial year 2025.

Shareholders should refer to the offer documentation and related stock exchange releases for full details. If you have not received information directly, then you will find a link to the offer and a description on how to accept it on the Zalaris website, that is the IR pages, ir.zalaris.com.

We will continue to keep the market updated as the process progresses. Those were the highlights.

Let's have Gunnar going through our financials.

Thank you, Hans-Petter. Our managed services revenue grew by 6.5% year-on-year, reaching 300 million and accounting for 80% of our total revenue.

When adjusted for currency effect, the growth was 8%—8%. We achieved a net revenue retention of 104% year-on-year in constant currency, and we saw good growth in all regions, with Germany growing by 9%, Northern Europe by 5%, and UK and Ireland by 57% in local currency.

Managed services adjusted EBIT for the quarter was 48.8 million down—48.8 million, down 5.9 million from last year, mainly due to higher business development costs, including sales commission from securing 75 million in annual recurring revenue in the first quarter, expanding market presence into Benelux, and other growth initiatives. Zalaris Consulting had a weak quarter, with revenue down 18% year-on-year and 15% in constant currency.

This revenue reflects lower activity in Germany and Poland following the completion of several large projects last year. With lower volume, adjusted EBIT was slightly negative at -0.7 million, also impacted by continued business development investments that we are maintaining to support the pipeline and ensure future growth.

Zalaris Consulting continues to support managed services growth, especially in Germany, and most regions are experiencing high utilization since reduced revenue has been offset by relying less on external consultants. The condensed profit and loss slide provides a detailed overview of our financial performance, highlighting our key cost components.

The increase in license costs is attributed to higher revenue from our payroll and HR solutions, which incurs license costs, including SuccessFactors. The increase in personnel cost was mainly due to annual pay increases from July last year, less cost capitalized to customer projects of 5.6 million, and a small increase of 12 FTEs.

Other operating expenses decreased by 8 million and was mainly due to less use of external consultants in Zalaris Consulting. The EBIT was 29.3 million for the quarter compared to 41.7 million last year.

Net financial expenses were 3.6 million, which included a currency gain of 9 million. Interest expenses were reduced by 5 million year-on-year, mainly due to the improved terms after refinancing in Q4.

Net profit for the period was 25.8 million compared to 25.5 million last year. Our net operating cash flow was 11.5 million for the first quarter, which was approximately in line with the figure last year.

During the quarter, we reduced the amount drawn on the revolving credit facility, which replaced the bond loan in the fourth quarter last year, by 34 million. The net interest-bearing debt as of 31 March decreased by 26 million during the quarter to 191 million, which converts to a leverage ratio, measured by the interest-bearing debt divided by the adjusted EBITDA, of 0.7, down from 0.8 the previous quarter.

Now that concludes the financial section, and I hand over to Hans-Petter to present the outlook.

Thank you again, Gunnar. Let's now turn to our positive outlook for Zalaris.

We continue with strong revenue visibility for '26 and onwards. These graphs show our expected managed services revenue growth based on signed contracts under implementation, excluding known churn, with strong visibility and a projected increase of more than 6% versus fiscal year '25.

The gross ARR effect from new agreements under implementation is 119 million. Due to a large customer's scope reduction referenced in our Q3 '24 report, the net effect is an ARR increase of 53 million.

On top of recurring managed services revenue, change orders are approximately 12% of recurring revenue. Zalaris Consulting delivered 337 million in revenue over the last 12 months, supporting an estimated minimum future annual revenue of 1.59 billion.

Looking ahead, there is an upside from higher Zalaris Consulting revenue versus '25, and additional new contract signings in managed services in the coming months. Our communicated target is 10% organic growth, driven by managed services of 15% and consulting 5%.

That takes us to about 2 billion in annualized revenue by end of '28 with an EBIT margin of 13% to 15%. As we scale, managed services increase from roughly 80% of revenue today to around 85%.

Growth won't necessarily be linear because contract sizes vary, but based on our track record and our constantly improving market position supported by industry analyst coverage, we see this trajectory as both realistic and beatable. Our strategy remains anchored in three pillars: multi-country payroll for the mid-market and enterprise customers; HR services and our global capability center offering; and a full suite of SAP consulting run as a global business unit with a strong base of recurring and reoccurring revenue from application maintenance services.

To deliver, we're balancing new logo wins with account expansion while extending into new geographies. Our ambition is a footprint across all G20 countries with full Western European coverage as the first milestone.

Setting up our business in Benelux in this quarter is another step in this direction. On the financial path, 2025 revenue landed at 1.5 billion, and around 100 million is already secured for '26.

Combined with expected net additions beyond contracted churn for '27 and a strong pipeline, we believe the target is well within reach. We did experience project execution challenges and cost overruns in APAC in Q4.

Corrective measures are in place now in Q1, and we're back on plan with additional improvements in the coming. Looking ahead, margin improvement is driven by AI and automation, continued nearshoring and scale.

Hitting 13% to 15% EBIT implies 260 to 300 million by 2028, and as I'll outline next, our ambitions go beyond that range. For '26 to '28, we are targeting 10% annual productivity improvements, driven by digitization, process standardization, and a structured AI deployment across our delivery model.

We have already started adjusting capacity in parts of the organization to reflect this trajectory. These efficiency gains are expected to more than offset incremental costs of migrating our SAP infrastructure to SAP Cloud.

Our objective remains clear: deliver profitability within our communicated 13% to 15% EBIT margin target, with potential for margin expansion beyond this range over time as productivity and operating leverage continue to build. To execute, we have launched a company-wide program to make AI a daily productivity tool, supported by mandatory training and clear governance under our CTO.

In managed services, all core processes are under review for AI-enabled automation, with several already digitized and partially automated. AI is being applied across sales, support, software development, and project execution.

Our shared services model lets us leverage AI investments across a multi-customer base, increasingly positioning our delivery model as services as a software. All initiatives are governed by defined business cases and strict oversight, and we operate fully within GDPR and EU AI Act frameworks with data governance and security embedded by design.

Finally, we benefit from SAP's embedded AI in SuccessFactors and S/4HANA, allowing us to capture ecosystem innovation with efficient allocation of capital. Let me conclude with the key takeaways for Q1 2026.

First, we had an all-time high Q1, maintaining managed services momentum. With consulting temporarily underdelivering on revenue and margin, the overall result was on the lower end of our target.

Managed services revenue was 296 million and represented 80% of quarterly revenue, underlining the strength of our recurring model. Second, our commercial momentum and visibility continue to improve, with new long-term managed services contracts adding 75 million ARR, securing 53 million increase in ARR after known churn when fully implemented.

Third, we remain firmly execution focused, with AI deployment supporting our 10% annual productivity target, and we are working toward ambition of a 2 billion run rate revenue and adjusted EBIT of 13% to 15% by Q4 '28. We do, of course, remain attentive to the Zalaris Consulting slowdown that hit revenue and EBIT this quarter, and we will continue to bring that back on track.

Lastly, we have exciting days ahead with a voluntary cash offer of NOK 100 per share, which is concluding on Thursday the 30th this week. With that, I will stop here and open for the Q&A.

Gunnar, do we have any questions?

We do not have any questions, Hans-Petter. Maybe you could just, on the final note, just remind everyone of the details around the voluntary cash offer.

Yeah. Details,

I think the key element is you should all read the offer material that you'll find on our website unless you have received it. If you like the offer, you should be sure to read how to accept it.

If you're an investor located in Norway, there's also a link on our website that will make it easy for you to accept in a digital process. I think with that, yeah, thank you for your attention, and have a great day.

Thank you.