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Blue Prism Group plc
H1 Results Six months ended 30 April 2017
27 June 2017
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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H1 Results Six months ended 30 April 2017
27 June 2017
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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
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
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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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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*EBITDA loss adjusted to exclude share-based payments.
£4.0m)
83%; FY 16: 85%)
increased 161% to £1.72m per month (H1 16: £0.66m per month; FY 16: £0.95m per month)
(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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Momentum
new customers (HI 16: 33 new customers)
Customer licence expansion
upsells)
Product innovation
Alliance Programme, supported by the announcement of version 6.0
Channel partner focus
ecosystem
US growth
renewal
Brought forward investment
127, of which 46 are US employees
Positive market dynamics
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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#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
Recognised for providing secure, scalable and central management of digital workforces
Version 6.0 announced
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Global strategic partners Specialist resellers Blue Prism initiatives
first training partner signed
certification, quality assurance and development of best practices All new customers in H1 were indirect
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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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focus for the Group
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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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
What we are doing… What we said…
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Revenue by region
14
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 for the six month period ended 30 April 2017 Commentary
revenues through training revenues
(H1 16: 83%)
16: £662k, FY 16: £946k)
and marketing expenditure; and
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)
Adjusted EBITDA (2,650) (1,373)
Share based payments (417) (60)
IPO costs
Total exceptional costs (417) (562)
EBITDA pre-exceptional costs (3,067) (1,935)
Loss before tax (3,106) (1,944)
Loss after tax (3,106) (1,944)
FD EPS (p) (4.99) (5.03)
(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 as at 30 April 2017 Commentary
customers who paid their three year license fees in advance
significant increase in new business and prepayment
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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Consolidated cash flows as at 30 April 2017 Commentary
investment into primarily sales & marketing resources
a small number of customers who paid their three year license fees in advance
business cash position still strong
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
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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2017 H1: A period of expansion
continued investment
Emerging and exciting global market Focusing on partner strategy 2017 H2: Continued momentum
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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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Operational Assurance Analogous to Existing Workforce
Controlled by the
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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Year 1 Year 3 Year 2 Year 4 Total Contracted Revenue: £240k
Typic pical l con
based on
10 rob
s at £8 £8,00 000 pe per rob
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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Jaso son Ki Kingdo don Non-Executive Chairman
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
Advisory Board
Alastair Bathgate Chief Executive Officer & Co-Founder
improvement at Bradford & Bingley Building Society and four years delivering enterprise software solutions to major customers such as Barclays Bank at Lynx Financial Systems
Gary Johnson Chief Financial Officer
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
Charmaine Eggberry Non-Executive Director
Managing Director and CMO from 2002-2008 and Nokia as Global Senior Vice President from 2010-2012
Non-Executive Director
GB Group plc, Avanti Communications Group Plc and Chairperson of Buzzmove Ken Lever Non-Executive Director
Xchanging plc and held senior executive director roles at a number of listed businesses including Alfred McAlpine plc, Albright & Wilson plc and Tomkins plc
Strategic plc, Biffa plc and F.M. Insurance Company Limited Chris Batterham Non-Executive Director
sector, previously FD of Unipalm plc, until 2001 and CFO of Searchspace until 2005
Director of SDL plc, NCC Group plc and Toumaz Limited.
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An enterprise-grade “Digital Workforce” powered by software robots, with live blue-chip customers
Sales momentum Blue Prism formed
consultancy
automation best- practice
London office established
version 3.0
Idea of productizing emerges
beta partners in Financial Services
Product ready for “industrial” use Gartner Cool Vendor
14 new clients in FY14
deployed globally
2001 2005 2008 2012 2014 2015
Version 4.2 released
Workforce
Industrialization Scaling-up & momentum Services Product idea AIM IPO
2016
Version 5 released
2017
International expansion