Cerillion Plc · LSE:CER
Cerillion — H1 2023 Earnings Presentation
24 slides from Cerillion's earnings presentation, May 15, 2023
Slide 1: Cerillion plc - Interim Results
AN INNOVATOR IN BILLING, CHARGING & CUSTOMER MANAGEMENT SYSTEMS Cerillion plc - Interim Results for the half-year ended 31 March 2023 15 May 2023
Slide 2: Presentation Team
PRESENTATION TEAM Louis Hall Andrew Dickson, FCA Founder & CEO CFO ▪ Led the MBO of the original ▪ Joined as CFO in February 2022 business from Logica plc in 1999 ▪ Formerly Group Director of ▪ Over 30 years’ experience in the Finance at The Vitec Group plc, software industry global provider of prem
Slide 3: Cerillion at a Glance
CERILLION AT A GLANCE Mission critical CRM & billing software for the global telecoms market H1 2023 REVENUE c. 80 customers across c. 44 £20.5m countries (2022 £16.1m) H1 2023 ADJ PBT £9.2M (2022 £6.3m) c. 320 staff London, c. 100 India, c. 200 Sofia, c. 20 H1 Revenue by Type H1 Revenue by Region C
Slide 4: Cerillion Product Suite
Cerillion Product Suite PRODUCT Dealer Portal INTEGRATION DOMAIN DOMAIN DOMAIN SALES • Dealer Sales CRM Plus Self Service • Omni-channel • Online Sales Mobile App • Lead & Opportunity Mgt • Account Management • Android / iOS Apps • Catalogue Management • Configure-Price-Quote (CPQ) • Service Managem
Slide 5: Products and Delivery
PRODUCTS AND DELIVERY SaaS • Cloud or • Pre-integrated SUPPORT On-premise BSS/OSS* modules • End-to-end or • SaaS licence model modular delivery HOSTING MODULAR CLOUD ENTERPRISE • Large • Sticky, long-term m PRODUCT transformation customers SUITE projects MANAGED SERVICE *BSS/OSS in telecommunicatio
Slide 6: Market Drivers
MARKET DRIVERS UPGRADE CYCLE REVENUE Stimulate Monetise network Create data Personalise GROWTH increased usage capabilities services value services OPERATIONAL Reduce Revenue Consolidate Reduce EFFICIENCY time-to-market assurance BSS/OSS Systems OPEX Network consolidation Digital customer TECHNOLOGY
Slide 7: Telco/CSP Priorities
TELCO/CSP PRIORITIES During the past year, CSPs have been prioritizing their CM&X related projects/activities1 : 1. Digitisation of sales and support channels 2. Support for new product types and business models 3. Improvement of customer lifetime value 4. Improvement of customer experience and enga
Slide 8: Markets and Channels
MARKETS AND CHANNELS Market Segments Channel Partners Tier 1 & 2 Operator Other Tier 2 & 3 CSPs Groups Verticals Point Innovative National Challengers: Subscription solutions / Operators: BSS End-to-end billing and Best of breed consolidation End-to-end transformation usage-based sales to for multi-
Slide 9: Global Customer Base
GLOBAL CUSTOMER BASE 26-May-23 Commercial-In-Confidence c. 80 CUSTOMERS IN c. 44 COUNTRIES 9
Slide 10: Competitive Landscape
COMPETITIVE LANDSCAPE Large ISVs* Equipment Vendors Small ISVs* Independent Analysis OUR DIFFERENTIATORS OUR DIFFERENTIATORS OUR DIFFERENTIATORS ▪ Shorter time to ▪ Shorter time to ▪ Greater breadth and market market depth ▪ More flexible ▪ More flexible ▪ Broader references ▪ Scaling to Tier-2/3 ▪
Slide 11: Key Highlights
KEY HIGHLIGHTS Six months to 31 March 2023 > Very strong trading with new record highs across all major KPIs : > Revenue up 27% to £20.5m (H1 22: £16.1m) Value of Largest Contract (£m) > Adj. EBITDA up 38% to £10.0m (H1 22: £7.2m) 16 > Net cash up 43% to £23.6m (H1 22: £16.5m) 14 12 > Significant in
Slide 12: H1 2023 KPIs
H1 2023 KPIs Record New Highs H1 Revenue (£m) 20.5 9.2 H1 Net Cash (£m) 23.6 16.1 H1 Adj PBT3 (£m) 16.5 12.8 6.3 10.2 8.4 3.8 7.0 7.7 4.8 1.1 1.7 2.5 2.6 (0.2) 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 H1 New Orders 23.6 H1 Back Order2 (£m)42.1 39.7 43
Slide 13: H1 2023 Financial Highlights
H1 2023 FINANCIAL HIGHLIGHTS Record Highs £m H1 23 H1 22 ▪ Annualised recurring New orders 15.3 10.9 revenue now at £13.1m (H1 Back-order book1 43.0 39.7 22: £9.8m); increasing SaaS revenue is key driver Total revenue 20.5 16.1 ▪ Increase in margins driven Software2 10.5 6.1 by higher proportion of
Slide 14: Cash Generation
CASH GENERATION > Strong cash generation £m H1 23 H1 22 Adj. EBITDA 10.0 7.2 (Increase)/decrease in working capital (2.2) 0.7 ▪ Increase in working Cash generated from operations 7.8 7.9 capital, as expected, Capitalisation of development costs (0.5) (0.5) due to higher proportion of software Purcha
Slide 15: Summary Consolidated Income Statement
SUMMARY CONSOLIDATED INCOME STATEMENT 1 Unaudited Unaudited H1 H1 (£’000) 31 Mar 2023 31 Mar 2022 Total revenue 20,497 16,140 Cost of sales (3,790) (3,476) ▪ Increase in gross margin Gross profit 16,707 12,664 driven by higher proportion Gross margin 81.5% 78.5% of software licence revenue Operating
Slide 16: Summary Consolidated Balance Sheet
SUMMARY CONSOLIDATED BALANCE SHEET Unaudited Unaudited (£’000) Consolidated 31 Mar 2023 31 Mar 2022 Non-current assets Goodwill 2,053 2,053 Intangible assets (software 2,172 3,097 development) Property, plant and equipment 951 678 Right of use asset 2,704 3,367 Trade and other receivables 3,619 2,68
Slide 17: Summary Consolidated Cash Flow Statement
SUMMARY CONSOLIDATED CASH FLOW STATEMENT Unaudited Unaudited H1 to H1 to Consolidated (£’000) 31 Mar 2023 31 Mar 2022 Operating cash flows before movements in working capital 10,017 7,248 (Increase) / decrease in trade and other receivables (4,061) (1,805) Increase / (decrease) in trade and other pa
Slide 18: Sales Pipeline Overview
SALES PIPELINE OVERVIEW Prospective Customers Existing Customers Unweighted 54 Unweighted (£m)1 51 (£m) 119.8 (£m) 212 101.0 172 33 32 79.1 28 131 59.1 120 21 101 76 2018 2017 2019 2020 2018 2021 2019 2022 2020 2023 2018 2019 2020 2021 2022 2023 Prospective Customers Existing Customers Weighted* Wei
Slide 19: Summary & Outlook
SUMMARY & OUTLOOK > Very strong results delivered in H1 H1 Dividend Record (p) > Strong back-order book - Cerillion has maintained its strong order book, providing very good visibility of forward revenues 3.3 2.6 > 23% increase in the pipeline of new customer prospects – 2.1 1.5 1.6 1.75 potential t
Slide 20: Supplementary Information
AN INNOVATOR IN BILLING, CHARGING & CUSTOMER MANAGEMENT SYSTEMS Supplementary Information ▪ Board of Directors ▪ Major Shareholders ▪ Financial Summary
Slide 21: Board of Directors
BOARD OF DIRECTORS Guy O’Connor Mike Dee Alan Howarth Louis Hall Andrew Dickson Non-executive Non-executive Chairman CEO CFO Director Director Alan Howarth has Louis Hall is the CEO and Andrew joined Cerillion as Guy is a co-founder of Mike Dee served as CEO of extensive senior executive founder of
Slide 22: Major Shareholders
MAJOR SHAREHOLDERS1 As at 21 April 2023 MAJOR SHAREHOLDERS % MAJOR SHAREHOLDERS % Louis Hall 30.45 Shore Capital, stockbrokers (ND) 1.25 Gresham House Asset Management 12.16 Royal London Asset Management 1.25 Canaccord Genuity Wealth Management (Inst) 8.16 WH Ireland, stockbrokers 1.05 Investec Weal
Slide 23: Financial Summary - Sticky Customer Base Generates Predictable Income
FINANCIAL SUMMARY - STICKY CUSTOMER BASE GENERATES HIGH LEVELS OF PREDICTABLE INCOME Revenue Sources (£m) 0.50 1.04 >70% Annual income typically derived from existing 0.69 customers 24.70 3.75 4.34 18.44 1.03 3.00 3.76 15.07 3.90 10.79 9.97 8.90 8.88 5.80 6.65 6.59 7.50 3.60 3.60 3.81 4.10 4.13 4.21
Slide 24: Financial Summary - Long Term Track Record
FINANCIAL SUMMARY – LONG TERM TRACK RECORD (CERILLION TECHNOLOGIES LTD) Long-Term Track Record (£m) 32.7 26.1 20.8 17.4 18.8 14.8 16.0 13.3 14.0 13.8 10.5 4.6 5.8 2.8 2.9 3.1 3.6 3.9 FY2014 FY2015 FY2016 FY2017 FY 2018 FY2019 FY2020 FY2021 FY2022 Revenue Adjusted EBITDA EBITDA and Adjusted EBITDA ar