Alfa Financial Software Holdings PLC · LSE:ALFA
Alfa Financial Software — FY2018 Earnings Presentation
21 slides from Alfa Financial Software's earnings presentation, Mar 7, 2019
Slide 1: 2018 Annual Results Presentation
2018 Annual Results Presentation 7 March 2019
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 key highlights Andrew Denton, CEO Financial review Viv Maclachlan, CFO Business and sales update Andrew Denton, CEO Summary Andrew Denton, CEO Q&A Definitions
Slide 4: Introduction and key highlights
Introduction and key highlights Andrew Denton, CEO
Slide 5: FY 2018 – at a glance
FY 2018 – at a glance Financial and operational highlights £71.0m (16%) £22.4m 32 % Operating profit Revenue Revenue movement(1) Operating profit margin 2017: £87.8m At constant currency 2017: £41.2m Adj EBIT(1) 2017: 47% Adj EBIT margin(1) 312 88% 4 16 Ongoing Headcount Staff retention rate Impleme
Slide 6: Financial Review
Financial Review Viv Maclachlan, CFO
Slide 7: Income Statement analysis: key metrics overview
2018 Income Statement analysis An overview of key metrics FY FY Overview 2017 2018 % Key Financial Metrics £m £m Change Change Revenue 87.8 71.0 (16.8) (19%) • 2018 revenue primarily impacted by: Revenue – constant currency 84.4 71.1 (13.3) (16%) − Paused software implementation customer Operating p
Slide 8: Income Statement analysis: Software implementation revenues
2018 Income Statement analysis Software implementation revenues No. of 7 6 5 5 4 Software implementation revenues customers 60 • New revenue (+£3.1 million) from the March 51.7 2018 customer win: 50 − 2019 – Phase I completes 43.7 − Discussions ongoing for a further phase in 40 the Americas • Ongoin
Slide 9: Income Statement analysis: ODS revenues
2018 Income Statement analysis ODS revenues No. of customers 8 14 16 15 16 ODS revenues > £200k 30 • Customer numbers increased (+2) due to recently gone live customers, pre-contract 25 23.9 customers and existing customers upgrading • New revenue (+£6.9 million) from: 20.8 20 − Customers who went l
Slide 10: Income Statement analysis: Maintenance revenues
2018 Income Statement analysis Maintenance revenues No. of 26 30 30 28 28 Maintenance revenues customers 30 • Ongoing maintenance (+£1.3 million) increased by 10% due to: 25 3.7 − Underlying annual increases generally agreed 20 17.9 in May; and £millions − Benefits of increased portfolio sizes in pr
Slide 11: Income Statement analysis: Expense analysis
2018 Income Statement analysis Expense analysis £m 2017 2018 Expenses Personnel related expenses 34.5 37.0 • Operating expenses, excluding exceptional Advertising and marketing 0.9 0.8 items, increased by £2.1 million Depreciation and amortisation 0.5 0.9 • Personnel related expenses (+£2.5 million)
Slide 12: Cash flow data
2018 Cash flow data A high level analysis £m 2017 2018 Cash and cash equivalents Operating profit 33.8 22.4 • Cash and cash equivalents increased by £13.7 Depreciation and amortisation 0.5 0.9 million to £44.9 million Share based payments 4.4 0.3 • 2018 Free Cash Flow Conversion of 86% Unrealised (g
Slide 13: Balance Sheet
2018 Balance Sheet A high level analysis £m 2017 2018 Balance sheet Total non-current assets 26.2 27.4 • Non-current assets increased (+£1.2 million) due Current assets to investment in HR and finance system Trade receivables and accrued income 12.4 13.8 • Trade receivables and accrued income increa
Slide 14: Business and sales update
Business and sales update Andrew Denton, CEO
Slide 15: Enabling business agility…
Enabling business agility… Defining the leasing agenda for the future Market update We continue to see the following trends in 2018 and into 2019: • Driven by technology − API strategy − Digital gateway − Platform • Operational efficiency − Simplification and harmonization of systems processes − Glo
Slide 16: Focusing on customers…
Focusing on customers… The year of customer upgrades Ongoing customer relationships • Upgraded 6 customers around the world in 2018 • 4 ongoing customer implementations and 1 paused - Delivering Auto Start solution to America’s largest used car retailer • Ongoing commitment to Europe • Alfa user gro
Slide 17: Delivering with the best people…
Delivering with the best people… Creating a high performance organisation Investing in our team • Offering a supportive, diverse and collaborative working environment − Organisational changes − New delivery organization − Global Director of People − Product engineering division − Unified business de
Slide 18: Summary
Alfa’ Summary Andrew Denton, CEO
Slide 19: Summary
Summary • 4 ongoing software implementations and 1 paused Customer • ODS customers include a pre-contract implementation customer focused • Pipeline still strong although pace of conversion has not changed materially • Secular growth trends including responding to regulatory change Business • Trend
Slide 20: Q&A
Alfa’ Q&A
Slide 21: Definitions
Definitions Measures not specifically defined by IFRS Adjusted EBIT Total contracted value • Adjusted EBIT is defined as profit from continuing operations before income • TCV is calculated by analysing future contracted revenue based on the taxes, finance income, IPO-related expenses and share based
Alfa Financial Software Holdings — FY2018 Earnings Presentation on 6ix