blue prism group plc · blue prism group plc ... and the related verbal presentation ... at persons...

Commercial In Confidence Commercial In Confidence

blueprism.com

Blue Prism Group plc H1 Results

Six months ended 30 April 2017

27 June 2017

Commercial In Confidence

2

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 or 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 of 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


blueprism.com

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


4

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

Tota

l Rev

enu

e

Recurring revenue

Non-recurringlicence revenue

Professionalservices

Other revenue

+154%


5

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

0

50

100

150

200

250

300

FY12 FY13 FY14 FY15 FY16 H1 16 H1 17

Nu

mb

er o

f cu

sto

mer

s

Direct customers Indirect customers


blueprism.com

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

operating 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: April 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…


blueprism.com

Financials


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

Mill

ion

s

Other Revenue

Professional Services

Non-recurringRevenue

Recurring Revenue0%

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


blueprism.com

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 of 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


blueprism.com

Questions

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blueprism.com

Appendix


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Where are software robots positioned? IT Resourced & Delivered

Business Resourced

Vo

lum

e o

f w

ork

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 operation

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

Typical contract term based on 10 robots at £8,000 per robot p.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

Jason Kingdon 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 of 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

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