Blue Prism Group plc H1 Results Six months ended 30 April 2017 27 - - PowerPoint PPT Presentation

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Blue Prism Group plc H1 Results Six months ended 30 April 2017 27 - - PowerPoint PPT Presentation

Blue Prism Group plc H1 Results Six months ended 30 April 2017 27 June 2017 blueprism.com Commercial In Confidence Commercial In Confidence Disclaimer This document (the "Slides") and the related verbal presentation (together the


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Blue Prism Group plc

H1 Results Six months ended 30 April 2017

27 June 2017

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Disclaimer

This document (the "Slides") and the related verbal presentation (together the "Presentation") relating to Blue Prism Group plc) (the "Company” or “Blue Prism”) do not constitute or form part of, and should not be construed as an offer or invitation to sell or issue or any solicitation of, any offer to purchase or subscribe for any securities in the Company in any jurisdiction. The presentation and its contents are confidential and may not be distributed, published, reproduced (in whole or in part) by any medium or in any form, or disclosed or made available by recipients, to any other person. This presentation is directed solely at persons in the United Kingdom who are “qualified investors” within the meaning of article 2(1)(e) of the Prospectus Directive 2003/71/EC and who have professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of, or persons falling within Article 49(2)(a) to (d) (High Net Worth Companies etc) of, the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended or replaced) (all such persons together being referred to as "relevant persons"). Any person who is not a relevant person should not act or rely on or attend this Presentation or any of its content and should take no other action. Nothing in this Presentation constitutes investment advice

  • r a recommendation regarding the securities of the company.

The information in this Presentation is given in confidence and the recipients of this Presentation should not engage in any behaviour in relation to qualifying investments or related investments (as defined in the Financial Services and Markets Act 2000 (FSMA) and the Code of Market Conduct (or equivalent) made pursuant to FSMA) which would or might amount to market abuse for the purposes

  • f FSMA.

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained in the Presentation. Neither the Company, nor any of the Company's advisers or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from the Presentation or its contents or otherwise arising in connection with the Presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and as such it may change materially. Neither the Company, nor any of the Company's other advisers or representatives, shall have an obligation to update, complete, revise, verify or amend the Presentation. The information communicated in the Presentation contains certain statements that are or may be forward looking. These statements typically contain words such as "expects" and "anticipates" and words of similar import. By their nature forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Investment in the Company will also involve certain risks. The Presentation and the information contained herein may not be copied, distributed, published or reproduced, in whole or in part, or disclosed, in whole or in part, and, in particular, are not for publication or distribution, directly or indirectly to persons in the United States (within the meaning of Regulation S under the US Securities Act of 1933, as amended (the "Securities Act")) or to entities in Canada, Australia or Japan. The securities in the Company have not been and will not be registered under the Securities Act and may not be offered or sold in the United States except to certain persons in offshore jurisdictions in reliance on Regulation S. The Presentation may not be taken or transmitted into or distributed in Canada, Australia, Japan or any other jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of the United States or other national securities laws. By receiving the slides and attending the Presentation such recipient and/or attendee agrees to be bound by the provision of this disclaimer.

The world’s most successful digital workforce

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GROUP OVERVIEW

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Blue Prism Group plc is a UK-based software company and a leader in the new global technology category of Robotic Process Automation (“RPA”). Blue Prism’s RPA software delivers the world’s most successful digital workforce. The Company was formed in 2001, and successfully listed on AIM in March 2016. What we do How we do it How customers benefit

The Digital Workforce

Enabling organisations to automate existing everyday user actions

Software robots

Versatile, flexible, trainable and reliable

Back office tasks

Taking over the granular work, freeing up people to perform

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Financial highlights

*EBITDA loss adjusted to exclude share-based payments.

  • Recognised revenue increased 133% to £9.3m (H1 16:

£4.0m)

  • Recurring revenue represented 91% of total revenue (H1 16:

83%; FY 16: 85%)

  • Exit run-rate (recognised, recurring license revenue)

increased 161% to £1.72m per month (H1 16: £0.66m per month; FY 16: £0.95m per month)

  • Adjusted EBITDA loss of £2.7m (H1 16: Loss: £1.4m)*
  • Cash and cash equivalents at 30 April 2017 stood at £10.6m

(H1 16: £11.2m; FY 16 £11.8m) Financial highlights H1 17 Revenue analysis Revenue by region

83% 51% 61%

85% 61%

0% 20% 40% 60% 80% 100%

H1 16 H1 17 APAC Americas EMEA £0.0m £2.0m £4.0m £6.0m £8.0m £10.0m FY14 FY15 FY16 H116 H117 Total Revenue Recurring revenue Non-recurring licence revenue Professional services Other revenue +154%

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Operational highlights

Momentum

  • 209 software deals secured during the period, 118

new customers (HI 16: 33 new customers)

  • Customer base increased to 271 (H1 16: 90)

Customer licence expansion

  • 83 upsells secured across 53 customers (H1 16: 28

upsells)

  • Eight renewals, amounting to 100% renewal rate

Product innovation

  • Launched new Operating System and Technology

Alliance Programme, supported by the announcement of version 6.0

Channel partner focus

  • All new customers secured through our partner

ecosystem

US growth

  • 32 new US customers signed, 19 upsells and one

renewal

  • Customer base now stands at 58

Brought forward investment

  • Global employee base increased from 86 (FY 16) to

127, of which 46 are US employees

Positive market dynamics

  • An increasingly large and global RPA market, that

we continue to capitalise on

Significant client momentum

11 12 16 23 29 26 29 5 16 34 124 64 242

50 100 150 200 250 300 FY12 FY13 FY14 FY15 FY16 H1 16 H1 17

Number of customers

Direct customers Indirect customers

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Operational progress

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Leading position in the RPA market

#1 for compliance

The Forrester Wave™: Robotic Process Automation Q1 2017

Competition Product Execution

Intensifying with market growth Industry analyst coverage Market discerning between desktop and true RPA software Blue Prism’s clear focus on enterprise proving successful Gaining traction in new geographies: progress in US, entry into Japan Enterprise-grade build from inception Ranked #1 for execution in the 2017 HfS RPA Blueprint grid Best of breed partners for areas such AI, cognitive technology R&D growth in real terms YoY EY ‘30-50% of RPA projects not delivering’ – not due to software, but execution Over a decade of implementation experience and development of robotic

  • perating model

Recognised for providing secure, scalable and central management of digital workforces

Version 6.0 announced

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Blue Prism World – The RPA Revolution

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Indirect sales focus – effective and efficient

Global strategic partners Specialist resellers Blue Prism initiatives

  • Introduction of autonomous training kits and

first training partner signed

  • Partner delivery enablement and

certification, quality assurance and development of best practices All new customers in H1 were indirect

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Addressing the RPA skills shortage

Blue Prism training the next generation of RPA experts:

Apr pril il 2017 2017

Basic awareness Foundation course Mandatory guides Mandatory tutorials Mentoring Accreditation exam

Robiquity announced as first Blue Prism authorised training partner. Robiquity expects to train 500+ new experts in robotic process automation (RPA) this year in its world-first Blue Prism software training academy Ascension becomes first North American authorized training partner. A contributing member in the development of standards for RPA (with the Institute of Electrical and Electronics Engineers), Ascension brings transformational as well as practical experience to its engagements Authorised Blue Prism Training Partners Blue Prism’s authorised training partners (currently six in total) are approved to offer industry class training to any enterprise or partner, looking to establish, improve or industrialise their RPA (Robotic Process Automation) with a resilient, scalable, secure, and governed Digital Workforce.

Other partners include: Digital Workforce, Reveal Group, Symphony and Wonderbotz

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Increasing US presence

  • The world’s leading technology economy remains a strategic

focus for the Group

  • 46 employees in the US, significant investment in sales
  • 32 new customer wins (all indirect); 19 upsells and one renewal
  • Revenues increased to £3.3m in H1 2017 (35% of Group)
  • Continued focus on developing channel partner ecosystem

US revenue growth shows initial investment success

San Francisco Chicago New York Miami Austin HQ and Tech Hub

East to West

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Executing against strategy

Building a scalable sales and delivery channel Increasing business with the Group’s customers Executing on the Group’s US market strategy Reinforcing the Group’s market leadership

  • Addressing skills shortage in the market place
  • Continuing investments in sales and marketing
  • Technical Alliance Programme and our partner certification programme
  • Partners opening up new geographies
  • Record 83 upsells across 53 customers
  • Eight renewals; 100% renewal rate
  • 32 new customers signed, 58 in total
  • 19 upsells and one renewal
  • 46 employees
  • Defined product roadmap, enterprise focus
  • 24/7 global customer support
  • Utilising the best of breed partners for technological edge
  • Blue Prism World

What we are doing… What we said…

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Financials

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Revenue by region

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Financial analysis

Revenue analysis

83% 51% 61%

£0 £2 £4 £6 £8 £10 FY 14 FY 15 FY 16 H1 17 Millions Other Revenue Professional Services Non-recurring Revenue Recurring Revenue 0% 20% 40% 60% 80% 100% H1 2016 H1 2017 APAC Americas EMEA

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Income statement

Income statement for the six month period ended 30 April 2017 Commentary

  • H1 17 licence revenues exceed FY 16
  • PS revenues contain a higher proportion of IP

revenues through training revenues

  • Recurring revenue now +90% of total revenue

(H1 16: 83%)

  • H1 17 exit run-rate of £1.72m per month (H1

16: £662k, FY 16: £946k)

  • Increased costs due to
  • investments in period, mostly sales staff

and marketing expenditure; and

  • policy of expensing sales commissions on

multi-year licences as soon as invoiced

For the six months ended 30 April (£'000) H1'17 H1'16 % change FY'16 Licence revenue 8,517 3,369 253% 8,304 Professional services & training 833 648 129% 1,340 Total revenue 9,350 4,017 233% 9,644 Staff costs (8,342) (3,747) 226% (10,187) Other expenses (3,697) (1,658) 223% (3,906) Adjusted loss from operations (2,689) (1,388)

  • (4,449)

Adjusted EBITDA (2,650) (1,373)

  • (4,410)

Share based payments (417) (60)

  • (362)

IPO costs

  • (502)
  • 502

Total exceptional costs (417) (562)

  • (864)

EBITDA pre-exceptional costs (3,067) (1,935)

  • (5,274)

Loss before tax (3,106) (1,944)

  • (5,249)

Loss after tax (3,106) (1,944)

  • (5,318)

FD EPS (p) (4.99) (5.03)

  • (10.53)

(1) Billings are defined as invoices raised in the period, and future contracted revenue is defined as the future value of the contract which has not yet been invoiced to the customer

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Balance sheet

Balance sheet as at 30 April 2017 Commentary

  • Cash decreased due to planned investments
  • Includes £2.0m from a small number of

customers who paid their three year license fees in advance

  • Deferred income +58% on FY 16 reflecting

significant increase in new business and prepayment

  • RCF of £2.0m unutilised
  • No intangibles and R&D fully expensed

As at 30 April (£'000) H1'17 H1'16 FY'16 Non-current assets 216 152 158 Trade and other receivables 9,517 2,582 5,585 Cash and cash equivalents 10,639 11,193 11,788 Current assets 20,156 13,775 17,373 Total assets 20,372 13,927 17,531 Deferred income 16,459 5,897 10,437 Trade creditors 382 353 574 Accruals 1,713 620 2,031 Other 506 115 619 Current liabilities 19,060 6,985 13,661 Total liabilities 19,060 6,985 13,661 Net assets 1,312 6,942 3,870 Share capital & premium 11,355 11,224 11,224 Share based payment reserve 704 60 287 Retained losses (10,747) (4,342) (7,641) Equity attributable to shareholders 1,312 6,942 3,870

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Cash flow statement

Consolidated cash flows as at 30 April 2017 Commentary

  • Net cash decreased as a result of planned

investment into primarily sales & marketing resources

  • Further benefited from £2.0m received from

a small number of customers who paid their three year license fees in advance

  • Strong trading in the period means the

business cash position still strong

  • Strong cash position enabled us to bring

forward investments

For the six months ended 30 April (£'000) H1'17 H1‘16 FY'16 EBITDA (3,067) (1,935) (5,274) Cash inflow / (outflow) from operations (1,185) (1,266) 93 Interest received / paid 3 6 25 Tax received / paid

  • (2)

Capital expenditure (98) (56) (154) Financing 143 10,158 9,475 Cash inflow / (outflow) (1,149) 8,842 9,437 Net cash inflow / (outflow) (1,149) 8,842 9,437 Cash at bank b/f 11,788 2,351 2,351 Cash at bank c/f 10,639 11,193 11,788

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Summary & Outlook

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Summary & Outlook

2017 H1: A period of expansion

  • 118 new customers; 100% via channel partners
  • 83 upsells across 53 customers and 8 renewals
  • US growth; 32 new customers and 19 upsells
  • Market dynamics, strong pipeline and competitive landscape merits

continued investment

  • Maintaining our position as the leading global RPA technology provider
  • Positioning as the execution platform for third-party AI technologies
  • Focus on quality of delivery through the certification and accreditation
  • f partners and their employees
  • Great partner backing at Blue Prism World (London and New York)
  • Roll-out global customer and partner support
  • Delighted with H1 17 progress
  • Strong pipeline gives us confidence for further growth in H2 17

Emerging and exciting global market Focusing on partner strategy 2017 H2: Continued momentum

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Questions

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Appendix

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Where are software robots positioned?

IT Resourced & Delivered Business Resourced

Volume of work Business Processes

Enterprise IT Operational Ownership

Operational Scripts Virtual Workforce

Powered by

Software Robots SDK / IT Developed

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Building a mature capability

Operational Assurance Analogous to Existing Workforce

Controlled by the

  • peration

Flexible Pipeline Management

Supported and hosted by IT

Enterprise Infrastructure Regulatory Compliance Supported Platform Secured Environment Scalable Cloud Deployment Ease of Demand Management Autonomy - Faster to Deliver Ability to adapt to detailed Insight Rapid Change Model

Powered by

Software Robots Virtual Workforce

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Commercial model

Year 1 Year 3 Year 2 Year 4 Total Contracted Revenue: £240k

Typic pical l con

  • ntract term based

based on

  • n 10

10 rob

  • bots

s at £8 £8,00 000 pe per rob

  • bot p.

p.a. a.

Recognised Revenue: £40k Recognised Revenue: £80k Recognised Revenue: £80k Recognised Revenue: £40k Invoiced Revenue: £80k Invoiced Revenue: £80k Invoiced Revenue: £80k

Typical ‘initialise’ partner deal

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Board of Directors

Jaso son Ki Kingdo don Non-Executive Chairman

  • Substantial experience in technology software start-ups
  • Co-founder of University College London ("UCL") Intelligent System Lab and co-

founder and CEO of Searchspace Limited, twice named as one of the 50 fastest growing technology companies in the UK in Deloitte's Technology Fast 50 list. Searchspace was sold in 2005 to US private equity group Warburg Pincus for an estimated $140 million

  • Ernst & Young Entrepreneur of the Year in 2003 and a member of UCL’ Enterprise

Advisory Board

  • PhD in Computer Sciences from University College London

Alastair Bathgate Chief Executive Officer & Co-Founder

  • Over 30 years’ experience in enterprise software, manufacturing and banking
  • Co-founded Blue Prism in 2001, having previously spent eight years in process

improvement at Bradford & Bingley Building Society and four years delivering enterprise software solutions to major customers such as Barclays Bank at Lynx Financial Systems

  • MBA from Leeds University Business School

Gary Johnson Chief Financial Officer

  • Over 20 years’ experience in senior finance roles across the technology sector
  • Joined Blue Prism in February 2015 and was most recently Finance Director of

Testronic Laboratories, a digital testing company covering digital TV, video games and movies. His previous experience includes roles as COO at Sony Psygnosis and finance director of Acorn Computers plc and Rage plc

  • Member of the Institute of Chartered Accountants in England & Wales

Charmaine Eggberry Non-Executive Director

  • Previously held senior board level positions at Research in Motion as

Managing Director and CMO from 2002-2008 and Nokia as Global Senior Vice President from 2010-2012

  • Currently

Non-Executive Director

  • f

GB Group plc, Avanti Communications Group Plc and Chairperson of Buzzmove Ken Lever Non-Executive Director

  • Currently Group Chairman at RPS Group plc. Previously CEO of

Xchanging plc and held senior executive director roles at a number of listed businesses including Alfred McAlpine plc, Albright & Wilson plc and Tomkins plc

  • Currently Non-Executive Director of Vertu Motors plc, Gresham House

Strategic plc, Biffa plc and F.M. Insurance Company Limited Chris Batterham Non-Executive Director

  • Significant experience in senior finance roles across the technology

sector, previously FD of Unipalm plc, until 2001 and CFO of Searchspace until 2005

  • Currently non-executive chairman of Eckoh plc and Non-Executive

Director of SDL plc, NCC Group plc and Toumaz Limited.

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The story so far…

An enterprise-grade “Digital Workforce” powered by software robots, with live blue-chip customers

Sales momentum Blue Prism formed

  • Automation

consultancy

  • Establishing

automation best- practice

London office established

  • Release of

version 3.0

  • Scale testing

Idea of productizing emerges

  • Developed with

beta partners in Financial Services

Product ready for “industrial” use Gartner Cool Vendor

  • Established US office

14 new clients in FY14

  • Network of partners
  • 1,000s robotic “FTEs”

deployed globally

2001 2005 2008 2012 2014 2015

Version 4.2 released

  • Enterprise Virtual

Workforce

Industrialization Scaling-up & momentum Services Product idea AIM IPO

  • RPA market validation

2016

Version 5 released

2017

International expansion

  • Sydney office opened