Alfa Financial Software Holdings PLC · LSE:ALFA
Alfa Financial Software — FY2017 Earnings Presentation
22 slides from Alfa Financial Software's earnings presentation, Mar 8, 2018
Slide 1: 2017 Annual Results Presentation
2017 Annual Results Presentation 8 March 2018
Slide 2: Disclaimer
Disclaimer 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 any of its contents. Information in the fo
Slide 3: Agenda
Agenda Introduction and business update Andrew Denton, CEO Financial review Viv Maclachlan, CFO Summary Andrew Denton, CEO Q&A Appendices 3
Slide 4: 2017 – at a glance
2017 – at a glance Financial and operational highlights £87.8 £41.2 20% 47% million million Adjusted EBIT Revenue Revenue growth(1) Adjusted EBIT(1) margin(1) Increased from £73.3 9% at constant currency Increased 26% on 2016 Increased from 45% in million in 2016 2016 329 95% 2 5 Completed Headcount
Slide 5: Market outlook
Market outlook A complex and highly regulated market with a myriad of challenges and opportunities Macro USA • A need to keep pace with innovations in technology • A healthy economic outlook, benefiting from a and increasing demands of consumers, whilst business-friendly administration continue to c
Slide 6: Focusing on customer
Focusing on customer Continuing to listen and deliver Delivering for our customers in 2017 • Two new customer wins in June 2017 served to further diversify our geographic footprint and industry verticals • Five successful software implementations delivered in 2017– record levels • First cloud implem
Slide 7: Enabling business agility
Enabling business agility We aspire to be ahead of the curve Adapting to changing regulation and market dynamics • Global focus on regulation, technology, efficiency, and operational gearing – accelerating the adoption of new systems and increased IT investment • Alfa Systems highly configurable and
Slide 8: Digital Directions
Digital Directions New channel to market Opening up original ways of operating, selling and improving • Alfa’s digital direction is focused on enabling new products and services that would be impossible without technology • Beyond omni-channel Key factors driving • Alfa Digital Gateway exposes Alfa
Slide 9: Leading with the best technology
Leading with the best technology Fast, lower friction techniques proven and cloud offering productised Fast, low-friction Alfa • Auto-start providing an edge in winning business with well progressed sales opportunities • Next steps − Point interfaces increasing − Containerisation – early progress •
Slide 10: Delivering with the best people
Delivering with the best people 20% net increase in headcount in 2017 with similar growth planned for 2018 Recruitment and retention • Headcount of 329 as at 31 December 2017 • Planned recruitment of 15-20% for 2018 • Focus on increase in supervision levels and productivity, to be continued in 2018
Slide 11: Financial Review
Financial Review Viv Maclachlan, CFO
Slide 12: 2017 Income statement analysis
2017 Income statement analysis An overview of key metrics 2017 2016 % Overview Key Financial Metrics £m £m Growth Revenue 87.8 73.3 20% • Revenue grew by 20% due to Revenue – constant currency 86.1 79.1 9% − Completed implementations Operating profit 33.8 16.6 104% Adjusted EBIT 41.2 32.8 26% − Incr
Slide 13: Revenue overview (by type)
2017 Income statement analysis Revenue overview (by type) Implementation • 5 completed customer implementations in 2017, with all Implementation 2017 2016 £million transitioning to ODS following completion Revenue excluding • Revenue excluding gains/losses on derivatives decreased 43.7 51.7 unrealis
Slide 14: High revenue visibility for 2018 and beyond
High revenue visibility for 2018 and beyond Total TCV as of 1 January 2018: £111m TCV • Total contracted value is calculated based on the following: £58m − Minimum of 3 years maintenance payments to allow ongoing access to the Alfa platform − Remaining time to complete on implementations £42m and de
Slide 15: Expenses and foreign currency
2017 Income statement analysis Expenses and foreign currency Costs by nature Cost overview 2017 2016 • Personnel costs increased due to headcount Personnel (including consultants, increases and personnel mix training and recruitment expenses) 34.6 30.8 Travel costs 4.1 2.6 • Foreign currency impacts
Slide 16: 2017 Cash flow data
2017 Cash flow data A high level analysis Summary Cash Flow Commentary £ million 2017 2016 • No debt and strong cash position Operating profit 33.8 16.6 Depreciation 0.5 0.4 • Cash outflow in period from pre-IPO dividends of Share based payments 4.4 16.2 £60.7 million, offset by settlement of loan t
Slide 17: 2017 Balance Sheet
2017 Balance Sheet A high level analysis Summary Balance Sheet Commentary £million 2017 2016 Total non-current assets 26.2 53.1 • Non-current assets decreased due to repayment of £27.0 million loan from the Parent. Current assets Trade receivables and accrued income 12.4 13.2 • Cash and cash equival
Slide 18: Summary
Alfa’ Summary Andrew Denton, CEO
Slide 19: Summary
Summary Momentum from recent wins provides a positive outlook for 2018 • 2 customer wins in the first half of 2017 Customer • March 2018 announcement of transnational implementation customer win focused • Strong and diverse pipeline with similar quantum of wins expected in 2018 • Continued focus on
Slide 20: Q&A
Q&A
Slide 21: Appendices
Appendices
Slide 22: Definitions
Definitions Measures not specifically defined by IFRS Adjusted EBIT Adjusted Earnings and Adjusted EPS, diluted • Adjusted EBIT is defined as profit from continuing operations before income • Adjusted Earnings is defined as profit for the period from continuing operations taxes, finance income, IPO-
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