eg operational intelligence® Elizabeth Gooch | March 2015
© eg solutions plc 2
eg
solutions plc
Enterprise Workforce Optimisation solutions for the Back Office
Operational Management Practice &
Accredited Training Operational
Intelligence Software Suite
Implementation & Training Services
•
Most complete purpose built Back Office WFO Software Suite•
Implementation methodology based on production management techniques•
Fixed cost, fixed timescale and guaranteed benefit implementations with ROI in 6 months•
20-40% improvement in productivity while improving the end customer experienceTransforming
Back Office
Operations
Delivering Guaranteed Benefits in Customer Service,
Operational Efficiency & Compliance
Developed market leading Back Office Workforce Optimisation product and pioneered a new technology market.
About
eg
Rapid deployment methodology providing guaranteed ROI for global customers. Re-seller agreement with Aspect software
International blue chip client base of over 50 major brands; financial services, outsourcers & utilities. High client retention rates and referenceability
Over 100,000 licences sold throughout the world. Increasing recurring revenues with Managed Cloud Services
$3.0 bn market potential rapidly emerging with few competitors
50+
Major brands
100,000+
licences
$3.0bn
Market potential Initial IPO June
2005 to develop product and market
Strategic objective to become the undisputed global market leader
4
© eg solutions plc
The Back Office Problem
•
Varied, complex and multi-stage processes•
Many input channels•
Variety of new and legacy systems•
High degree of manual interaction despite the investment in technology•
Many locations and varied working patternsThe Requirement:
Improve customer service and quality, demonstrate compliance & reduce cost
The Challenge:
Achieving these “conflicting variables” with the same or less resources
The Solution:
Enterprise Back Office Workforce Optimisation Back Office Workforce Optimisation
Real-Time Work Management
• Multi-Channel Transaction Capture
• Virtual Queue Creation & Capacity Planning
• Work Prioritisation & Allocation
• Intra-process Management
• Performance Monitoring
• Quality Assurance
Service Delivery
• Operations
• Quality Assurance
Reporting and Analytics
• Performance Reports (Service; Throughput; Productivity; Skills; Quality)
• Performance Scorecards & Dashboards
• End-to-End Process Analytics
• Standard; Personalised and Diagnostic
Performance Management and Business Improvement
• Operations
• MI Teams
• Process Improvement Teams Strategic Planning and
Forecasting • Forecasting
• Resource Scheduling
• What-if Modelling
• Activity Based Costing
• Holiday Planning
• Agent Self Service
Planning & Forecasting • Strategic Planners
• Operations
• Centralised Planning
• Finance
• Marketing
eg operational intelligence
®Unique Functionality
6
© eg solutions plc
Increasing Regulation
Increasing requirement for greater
transparency in all sectors
Technology + Business
Transformation
Customer service provision remains a people intensive business
Improving Economies
Companies remain cost conscious
£
Controlling workforce costs and increasing transparency are key business objectives throughout the world - major consultancies building £50m Workforce Optimisation practices in response to this demand
Saturated Markets
Retain customers with improved service and increase
profitability.
High Growth Markets
Remain competitive and avoid the
problems of the past
6
Market Opportunity
Global Workforce Management Drivers
$3.4bn
Back Office WFO Addressable
Market
$500m
Growth rate c.20% with projected annualrevenue of $500m by 2018
*
Research by Leading WFO Analyst, Donna Fluss, President of DMG Consulting:
2
Only two vendors really specialise in
Back Office WFO: eg & Verint
eg
has the “most
complete purpose
built back office
optimisation
product available”
*•
Five key players in Back Office WFO: Verint, Nice,
Aspect/eg
, Genesys, AOMi
•
No player has more than £25m turnover per annum currently
•
eg
winning deals with product leadership & domain expertise: Citi, =LV
© eg solutions plc 8
£3m
Investing to Grow
• Strengthen our balance sheet to get the best possible deals
• Accommodate the sales cycle & payment terms of bigger
companies
• Ensure growth is not restricted by available cash & bank covenants
£1.0m
Working Capital
• Continue to invest to remain market leader
• Complete Forecasting module
• Accelerate mobile & social developments
£0.5m
Product Development
• We are a “well kept secret”, need a greater share of voice and to be recognised as the thought leader
• Develop pipeline in new verticals & territories
£0.5m
Marketing/Communication
• Build the leadership team of a business of scale
• Increase Sales & Delivery teams to achieve global growth forecast and secure recurring revenues
• If sales stretch we won’t need to cut resources
£1.0m
Management & Sales
Placing raised £3.0m net to accelerate growth, maintain technological edge &
secure market leadership
Introduction to eg
Preliminary Results FY 2014/15
New contract wins from new and existing customers include Telecoms, Utilities and Local Government
Order Book including 69% increase in
Recurring Revenue
Strong balance sheet
£15.4m
£4.3m
10
Significant increase in all key financial metrics:• Adj.EBITDA to £1.3m from loss of (£0.5m)
• Operating Profit £0.5m from loss of (£1.48m)
• Cash from operations £1.7m from (£0.4m)
Increase in Revenues on prior year to £7.5m
69%
Increase in licences sold to 100,000+ users
throughout the world
20%
Following £3.0m (net) fund raise
Cash
Strong Board & Management Team
Duncan McIntyre - Chairman
John Brougham - Chairman Audit Committee Mark Brady - Chairman RemCo
Elizabeth Gooch - Chief Executive Officer Jonathan Kay - Chief Financial Officer
10
© eg solutions plc
Current Trading & Financials
Transforming our Financial Performance
Investing for Growth
Financial Year Ending 31 January
2010 2011 2012 2013 2014 2015
Revenue 4150 5148 4714 4951 4456 7542
Gross Margin % 69.8% 70.8% 73.8% 64.8% 65.1% 70%
Adj EBITDA 478 899 829 410 (502) 1,263
Adj EBITDA % 12 17 18 8 (11) 17
PBT 99 355 146 (458) (1479) 407
Acquisition & integration of XTAQ Ltd.
Investment in global customers 2012 - 2014
Investment in: • Aspect Reseller
• Expanded delivery team • Changing Revenue Model
• Increased Sales Team & Executive
69% growth in sales
Investing in product & market development
£407k PBT £1.3m EBITDA
New Board & Management Team
£1.7m cash from operations
Capitalising on the investments made
Acquired Xtaq product, client list and pilot
projects Pilot projects with global enterprise customers Aspect Reseller providing global distribution channel Increased Delivery Team to support Global Deployments Cloud Services product to increase recurring revenues & visibility Increased Sales & Marketing to seize the market opportunity
Changing Revenue Model
Current Trading & FinancialsMigration of revenues from 72% one-time services to 76% product with 50% recurring fees*
29% increase in recurring fees in 2013
36% increase in recurring fees in 2014
Growing revenues for the future with repeat and recurring hosting contracts
+29% +36%
£15.4m
Order book over next four years76%
69% increase in recurring fees in 2015 (YTD)
+69%
12
© eg solutions plc
Product Development
Strategic objective is to maintain product leadership and develop/enhance products
to meet the digital needs of global enterprise customers
New Product Launches in 2015 • Strategic Planning & Forecasting
• eg mobile™ to support the ‘virtual back office’
Merge business and personal technology to improve performance and exploit digital literacy of millennials
Social
The rule not the exception. Enable and efficiently allocate the mobile workforce and evaluate their performance
Mobile
The analytics game is flipping from historical reporting to predictive analytics embedded within solutions
Information
First for some but an option for most - cloud, on-premise & hybrid deployment options
Cloud
Source: Gartner Nexus of Forces. All statements in this report attributable to Gartner represent eg’s interpretation of data, research opinion or viewpoints published as part of a syndicated subscription service by Gartner, Inc., and have not been reviewed by Gartner. Each Gartner publication speaks as of its original publication date (and not as of the date of this presentation. The opinions expressed in Gartner publications are not representations of fact, and are subject to change without notice.
Current Trading and Outlook
Current Trading & FinancialsStrong platform for growth • Leading Back Office Workforce
Optimisation product
• Successful global enterprise
customers looking to expand usage
• Strategic partnership in place with global market presence
1 2 3
Increased investment in direct & partner channels • Increased eg sales &
marketing teams
• Combined pipeline of £36m Direct and Aspect partner opportunities (2014:24m)
Now need to exploit this position to achieve growth in revenues and profits
Additional capital raised to:
• Increase investment in Sales and Marketing
• Maintain product development
• Provide the balance sheet required for major enterprise deals.
£36m
eg operational intelligence® Elizabeth Gooch | March 2015
