Cerillion Plc · LSE:CER
Cerillion — FY2023 Earnings Presentation
26 slides from Cerillion's earnings presentation, Nov 20, 2023
Slide 1: Final Results for the year to 30 September 2023
AN INNOVATOR IN BILLING, CHARGING & CUSTOMER MANAGEMENT SYSTEMS Final Results for the year to 30 September 2023 20 November 2023
Slide 2: Presentation Team
PRESENTATION TEAM Louis Hall Andrew Dickson Founder & CEO CFO ▪ Led the MBO of the original ▪ Joined in 2022 business from Logica plc in 1999 ▪ Over 20 years’ experience; early ▪ Over 30 years’ experience in the career at Deloitte LLP. software industry ▪ Previously Group Director of ▪ Previously he
Slide 3: Key Highlights
KEY HIGHLIGHTS Year to 30 September 2023 Customer View > New record highs across key financial measures – including revenue, PBT, EPS Telesur Major transformation > Annualised recurring revenue at financial year-end up 19% y/y project for the main to £14.8m (2022: £12.4m) telecoms services provider
Slide 4: Cerillion at a Glance
CERILLION AT A GLANCE Mission critical BSS/OSS1 software for the global telecoms market 2023 REVENUE c. 80 customers across c. 45 £39.2m countries (2022 £32.7m) 2023 ADJ PBT £16.8M (2022 £11.9m) c. 350 staff London, c. 110 India, c. 210 Sofia, c. 30 1. Business Support Systems/Operations Support Sys
Slide 5: Linking Network Infrastructure to Customers
LINKING NETWORK INFRASTRUCTURE TO CUSTOMERS Business Support Operations Support Systems (BSS) Systems (OSS) Digital Engagement Planning Product Offerings Capacity Management Infrastructure Customers Sales Service Connection Network Work-Flow Work-Flow Customer Care Balance Management Billing Chargin
Slide 6: 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 7: Delivery Model
DELIVERY MODEL SOFTWARE-AS-A-SERVICE MANAGED SERVICE ▪ Cloud or on- ▪ Pre-integrated SUPPORT premise BSS/OSS modules deployment LICENSE ▪ Common product ▪ Term licensing for all customers PRIVATE MODULAR CLOUD PUBLIC CLOUD ENTERPRISE m ▪ 5+ year PRODUCT ▪ End-to-end or subscription SUITE modular del
Slide 8: Markets and Channels
MARKETS AND CHANNELS Market Segments Channel Partners Tier 1/2 Operator Other Tier 2/3 CSPs Groups Verticals Innovative National Challengers: Operators: Subscription BSS Point solutions / End-to-end billing and Standardising Best of breed End-to-end transformation usage-based for multi- sales to sup
Slide 9: Global Customer Base
GLOBAL CUSTOMER BASE 16-Nov-23 Commercial-In-Confidence c. 80 CUSTOMERS IN c. 45 COUNTRIES 9
Slide 10: Revenue by Year in Which Customers Were Won
REVENUE BY YEAR IN WHICH CUSTOMERS WERE WON 40 2023 35 2022 30 2021 2020 Revenue (£m) 25 20 2019 15 2018 2017 10 2016 5 Pre-2016 - 2016 2017 2018 2019 2020 2021 2022 2023 Annual revenue before 2023 has been restated at FY23 FX rates for constant comparison 10
Slide 11: 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 ▪ Market bias towards ▪
Slide 12: Sales Pipeline Overview
SALES PIPELINE OVERVIEW Prospective Prospective Customers Customers Existing Customers 243 39 Unweighted (£m)1 38 Unweighted Unweighted (£m) (£m) 1 1 37 209 35 33 119.8 101.0 146 22 79.1 122 19 101 59.1 79 59 20172017 2018 2019 2018 2020 2019 2021 20222020 2023 2017 2018 2019 2020 2021 2022 2023 Pro
Slide 13: FY 2023 KPIs
FY 2023 KPIs Key KPIs at Record Levels Revenue (£m) 39.2 Recurring Revenue Run 12.4 14.8 Managed Service Revenue 5.7 32.7 26.1 Rate1 (£m) 9.9 Run Rate (£m) 4.1 20.8 7.9 17.4 18.8 2.4 4.3 5.0 1.8 0.3 0.6 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 New Ord
Slide 14: FY 2023 Financial Highlights (Audited)
FY 2023 FINANCIAL HIGHLIGHTS (AUDITED) > Record highs across key KPIs £m FY23 FY22 New orders 31.6 29.4 ▪ Record sales pipeline Back-order book1 45.4 45.4 and continuing strong Total revenue 39.2 32.7 back-order book providing good Software2 21.1 12.9 visibility Services 15.5 18.3 ▪ Substantial swin
Slide 15: Cash Generation
CASH GENERATION > Strong cash generation £m FY23 FY22 Adj. EBITDA 18.1 13.8 Decrease/(increase) in working capital (5.8) 0.1 ▪ Free cash flow used to fund dividend and Cash generated from operations 12.3 13.9 lease payments Capitalisation of development costs (1.1) (1.0) ▪ Closing net cash of Purcha
Slide 16: Audited Summary Consolidated Income Statement
AUDITED SUMMARY CONSOLIDATED INCOME STATEMENT 1 Year to Year to (£’000) 30 Sep 2023 30 Sep 2022 ▪ Adjusted EBITDA Total revenue 39,170 32,726 margin increase due to higher proportion of Cost of sales (8,364) (7,221) license fees in revenue Gross profit 30,806 25,505 mix Gross profit margin 78.6% 77.
Slide 17: Audited Summary Consolidated Balance Sheet
AUDITED SUMMARY CONSOLIDATED BALANCE SHEET (£’000) Consolidated 30 Sep 2023 30 Sep 2022 Non-current assets Goodwill 2,053 2,053 Other intangible assets 2,374 2,653 Property, plant and equipment 780 980 Right of use asset 2,352 3,057 Trade and other receivables 5,105 2,171 Deferred tax 268 260 12,932
Slide 18: Audited Summary Consolidated Cash Flow Statement
AUDITED SUMMARY CONSOLIDATED CASH FLOW STATEMENT Year to Year to 30 Sep 2023 30 Sep 2022 Consolidated (£’000) Operating cash flows before movements in working capital 18,083 13,750 (Increase) / decrease in trade and other receivables (6,468) (1,182) Increase / (decrease) in trade and other payables
Slide 19: Summary & Outlook
SUMMARY & OUTLOOK > Record back-order book provides a high degree of visibility at the start of FY24 Dividend Record (p) 11.3 ― recent closure of a €12.4m new contract with a new Tier-1 9.1 customer 7.1 5.5 > Very strong pipeline of new prospects, including further 3.9 4.2 4.5 4.9 large contract opp
Slide 20: Supplementary Information
AN INNOVATOR IN BILLING, CHARGING & CUSTOMER MANAGEMENT SYSTEMS Supplementary Information ▪ Board of Directors ▪ Major Shareholders ▪ Capital Allocation Policy ▪ Sticky Customer Base ▪ Financial Summary ▪ Market Drivers
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 6 November 2023 MAJOR SHAREHOLDERS % MAJOR SHAREHOLDERS % Louis Hall 30.45 Royal London Asset Management 1.19 Gresham House Asset Management 11.87 WH Ireland, stockbrokers 1.10 Investec Wealth & Investment 7.25 Herald Investment Management 1.03 Canaccord Genuity Wealth Mana
Slide 23: Capital Allocation Policy
Capital Allocation Policy Maximising shareholder returns Organic Dividend Strategic Other growth policy investments considerations Continued Progressive Strategic investments Maintain strong investment to: dividend policy: to support longer balance sheet to ▪ enhance offering term growth support str
Slide 24: Sticky Customer Base Generates High Levels of Predictable Income
STICKY CUSTOMER BASE GENERATES HIGH LEVELS OF PREDICTABLE INCOME Revenue Sources (£m) 0.40 >90% 0.50 Annual income typically derived from existing customers 1.04 30.30 0.69 24.70 3.75 4.34 18.44 1.03 3.00 3.76 15.07 3.90 9.97 10.79 8.90 8.88 5.80 6.65 6.59 7.50 8.50 3.60 3.60 3.81 4.10 4.13 4.21 5.0
Slide 25: Financial Summary
FINANCIAL SUMMARY (CERILLION TECHNOLOGIES LTD) Long-Term Track Record (£m) 39.2 32.7 26.1 20.8 17.4 18.8 18.1 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 FY2023 Revenue Adjusted EBITDA EBITDA and Adjusted EBITDA are non-GA
Slide 26: 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