Slide 1: Full Year Results for the year to 30 September 2022
AN INNOVATOR IN BILLING, CHARGING & CUSTOMER MANAGEMENT SYSTEMS Full Year Results for the year to 30 September 2022 28 November 2022
Slide 2: Presentation Team
PRESENTATION TEAM Louis Hall Andrew Dickson Co-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
Slide 3: Business Overview
BUSINESS OVERVIEW Cerillion develops, installs and supports enterprise CRM and billing software for the global telecoms market ▪ Well-established provider of mission-critical software to global FY 2022 REVENUE telecoms market – core product IP is owned by Cerillion £32.7m (2021: £26.1m) ▪ Long custo
Slide 4: Products and Delivery
PRODUCTS AND DELIVERY SaaS • Cloud or On- • Pre-integrated SUPPORT premise BSS/OSS modules deployment • End-to-end or modular delivery • SaaS or HOSTING MODULAR CLOUD licence/support ENTERPRISE • Large m PRODUCT transformation model SUITE projects • Sticky customers/long relationships MANAGED SERVIC
Slide 5: Product Suite
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 Management • Acco
Slide 6: Key Highlights Year to September 2022
KEY HIGHLIGHTS Year to 30 September 2022 New Customer > Key financial performance measures – including revenue, PBT, EPS - at record highs Cable & Wireless Seychelles Major transformation > Annualised recurring revenue at year end up 25% y/y to £12.4m project for the main telecoms services provider
Slide 7: FY 2022 KPIs
FY 2022 KPIs Key KPIs at Record Levels Revenue (£m) 32.7 Recurring Revenue Run 12.4 Managed Service Revenue 4.1 26.1 9.9 20.8 Rate1 (£m) 7.9 Run Rate (£m) 17.4 18.8 2.44 16.0 1.79 4.3 4.3 5.0 0.59 0.22 0.3 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 New
Slide 8: FY 2022 Financial Highlights (Audited)
FY 2022 FINANCIAL HIGHLIGHTS (AUDITED) > Record highs across key KPIs £m FY22 FY21 New orders 29.4 33.3 ▪ Record back-order Back-order book1 45.4 42.1 book provides strong visibility of revenues Total revenue 32.7 26.1 Software2 12.9 13.4 ▪ Increase in services revenue due to Services 18.3 11.9 conc
Slide 9: Cash Generation
CASH GENERATION > Strong cash generation £m FY22 FY21 Adj. EBITDA 13.8 10.5 Decrease/(increase) in working capital 0.1 (0.3) ▪ Free cash flow used to fund dividend, Cash generated from operations 13.9 10.2 employee share Capitalisation of development costs (1.0) (1.0) options and lease payments Purc
Slide 10: Audited Summary Consolidated Income Statement
AUDITED SUMMARY CONSOLIDATED INCOME STATEMENT 1 Year to Year to (£’000) 30 Sep 2022 30 Sep 2021 ▪ Gross margin Total revenue 32,726 26,071 maintained despite change in revenue mix Cost of sales (7,221) (5,662) Gross profit 25,505 20,409 ▪ Higher tax charge due Gross profit margin 78% 78% to increase
Slide 11: Audited Summary Consolidated Balance Sheet
AUDITED SUMMARY CONSOLIDATED BALANCE SHEET (£’000) Consolidated 30 Sep 2022 30 Sep 2021 Non-current assets Goodwill 2,053 2,053 Other intangible assets 2,653 3,572 Property, plant and equipment 980 759 Right of use asset 3,057 3,706 Trade and other receivables 2,171 2,015 Deferred tax 260 209 11,174
Slide 12: Audited Summary Consolidated Cash Flow Statement
AUDITED SUMMARY CONSOLIDATED CASH FLOW STATEMENT Year to Year to 30 Sep 2022 30 Sep 2021 Consolidated (£’000) Operating cash flows before movements in working capital 13,750 10,515 (Increase) / decrease in trade and other receivables (1,182) (238) Increase / (decrease) in trade and other payables 1,
Slide 13: Analysis of FY 2022 Revenue
ANALYSIS OF FY 2022 REVENUE Revenue by Software / Services / Third-party 5% 3% 39% £32.7m 56% £26.1m 46% 51% FY 2021 FY 2022 Services Software & Support Third-party pass through 13
Slide 14: 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: solutions / Operators: Subscription BSS End-to-end Best of breed billing and Standardising End-to-end transformation sales to usage-based for multi- tra
Slide 15: 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 16: Global & Diversified Customer Base
GLOBAL & DIVERSIFIED CUSTOMER BASE REVENUE BY GEOGRAPHY INDUSTRY VERTICALS 10% 4% 24% £32.7m FY 2022 62% 8% 7% 13% £26.1m FY 2021 72% c. 80 CUSTOMERS IN c. 45 COUNTRIES Europe Americas 16 Asia-Pacific MEA
Slide 17: Analysis of FY 2022 Revenue Concentration
ANALYSIS OF FY 2022 REVENUE CONCENTRATION Reducing Revenue Concentration TOP CLIENT TOP 5 CLIENTS TOP 10 CLIENTS 2022 2022 2022 14.7% 51.0% 74.5% (2021: 19.9%) (2021: 51.6%) (2021: 75.9%) ▪ Top five customers are typically major new customers undergoing implementation and generally change each year
Slide 18: Sticky Customer Base Generates High Levels of Predictable Income
STICKY CUSTOMER BASE GENERATES HIGH LEVELS OF PREDICTABLE INCOME Revenue Sources (£m) 0.50 1.04 >80% 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 5.06 FY 2014 FY 201
Slide 19: Sales Pipeline Overview
SALES PIPELINE OVERVIEW Prospective Prospective Customers Customers Existing Customers 39 Unweighted Unweighted (£m) (£m) 1 1 209 Unweighted (£m)1 37 35 119.8 33 101.0 146 122 22 79.1 101 19 59.1 79 59 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2017 2018 2019 2020 2021 2022 Prospective Custom
Slide 20: Summary & Outlook
SUMMARY & OUTLOOK > Cerillion has greater revenue visibility than at the start of any other financial year, supported by record back-order book Dividend Record (p) 9.1 > Rising level of recurring revenue 7.1 > Strong pipeline of new prospects 4.5 4.9 5.5 3.9 4.2 > Favourable market backdrop as telec
Slide 21: Supplementary Information
AN INNOVATOR IN BILLING, CHARGING & CUSTOMER MANAGEMENT SYSTEMS Supplementary Information ▪ Board of Directors ▪ Major Shareholders ▪ Financial Summary
Slide 22: 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 23: Major Shareholders
MAJOR SHAREHOLDERS1 As at 4 November 2022 MAJOR SHAREHOLDER % SHAREHOLDING Louis Hall 30.45 Canaccord Genuity Wealth Management 12.48 Gresham House Asset Management 12.21 Investec Wealth & Investment 5.91 Charles Stanley 5.60 JP Morgan Asset Management 4.05 Hargreaves Lansdown, stockbrokers (EO) 2.5
Slide 24: Financial Summary (Cerillion Technologies Ltd)
FINANCIAL SUMMARY (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 are non GAAP measures. Adju