Glossary

A

ACORD – International Industry standard for data-driven insurance
processing
ACORD LOMA a ‘bootcamp’ to train in ACORD
Adjusted earnings per share – Xchanging’s share of adjusted profit for the
year divided by the weighted average basic number of Xchanging plc shares in
issue for the year ended 31 December
Adjusted operating profit – excludes exceptional items, amortisation of
intangible assets previously unrecognised by an acquired entity, acquisition
costs, and non-recurring operational items that the Directors believe will aid
the reader’s understanding of the accounts
AES – Application & Engineering Services
AFC – Automatic Fare Collection. A collaboration between Malaysia Ekspres
railway and Xchanging to provide more and better ticketing channels where
customers’ smartphones become their ticket
AMS – Alexander Mann Solutions Ltd
Analytics – the discovery and communication of meaningful patterns in data
AGI – Allianz Global Investors Europe Gmbh
AGM – Annual general meeting
Aon – Aon Limited
Aromo – meeting app on X-presso
Articles or Articles of Association – the articles of association of
Xchanging plc
Australian Workers’ Compensation – Xchanging currently offers workers’
compensation services in Australia and personal injury administration
services in Australia and the UK

B

B2B – Business-to-business
BAE Systems – Xchanging delivered HR services to BAE Systems until 2013
BaFin – German Federal Financial Supervisory Authority overseeing banking,
insurance, securities and asset management
Board of Directors – The Board of Directors of Xchanging plc, comprising
Geoff Unwin, Ken Lever, David Bauernfeind, Michel Paulin, Bill Thomas,
Stephen Wilson, Saurabh Srivastava and Ian Cormack
BPaaS – Business processing as a Service
BPO – Business process outsourcing
BPO 4.0 – driving cost reductions by process optimisation through cloud
based analytics
BPS – business processing services. Insurance and financial services form a
significant part of our BPS offering

C

CAD – Computer-aided design
CAM – Computer-aided manufacturing
CAAGR – compound average annual growth rate
CAGR – compound annual growth rate
Cash conversion – is calculated as operating cash flow divided by adjusted
operating profit
Cedent – a party to an insurance contract who passes financial obligation for
certain potential losses to the insurer
CEO – Chief Executive Officer
CFO – Chief Financial Officer
CIO – Chief Information Officer
Cloud computing – is the provision of fully managed consumption-based
services over high speed internet infrastructure
CO2e – equivalent carbon dioxide
Combined Code – the Combined Code published in June 2008 by the
Financial Reporting Council.
​Company – Xchanging plc
Competency Centre – teams with specific expertise to develop innovative
ideas into products. Based around the world
COO – Chief Operating Officer
CRC Energy Efficiency Scheme – mandatory scheme aimed at cutting
emissions in large UK organisations
CRM system – customer relationship management system
CSR – Corporate Social Responsibility
CTA – Contractual Trust Arrangement

D

DI – Data Integration Limited, one of the UK’s leading networking, security and
communication technology providers, acquired by Xchanging in June 2010
DB – Deutsche Bank AG. XTB was delivered through Enterprise Partnership
between DB and Xchanging. On 1 September 2013 DB purchased the
remaining 51% of the shares
Deal Gym – where innovative ideas are evaluated and refined
Diageo – Xchanging has a contract to provide procurement services to Diageo
Directors – the Xchanging Board of Directors are on:
http://www.xchanging.com/management-team
Disclosure and Transparency Rules – the disclosure and transparency rules
of the UK Listing Authority

E

EBIT – see Adjusted operating profit
EBITDA – Adjusted operating profit before depreciation and amortisation
Economic profit – Adjusted operating profit less a charge for tax and a charge
for cost of invested capital
EdW – Entschädigungseinrichtung der Wertpapierhandelsunternehmen
e-enabled – using the internet to do business or to communicate
Employee Engagement Survey – an annual opportunity for employees to
give their feedback to management. Conducted in late 2013
EP – Enterprise Partnership, a corporate partnership between Xchanging and
a customer
ERP – Enterprise Resource Planning. Software to show business processes
in real time
ESG – Employee, Social and Governance.
ESOP – Executive Share Option Plan
eSourcing – the use of secure web-based tools by suppliers and procurement
professionals which support procurement activity
EU – European Union
Executive Board – the Executive Board of Xchanging are on
http://www.xchanging.com/investor-relations/board-directors

F

FdB – Fondsdepot Bank GmbH, an EP between Xchanging and
AGI in Germany
FCA – Financial Conduct Authority
FRC – Financial Reporting Council
FRS – Financial Reporting Standards

G

Going for Gold – the umbrella of Xchanging’s transformation programmes to
become a world class company
GPO – Gainshare Procurement Outsourcing model
Group – Xchanging plc. and its subsidiaries and subsidiary undertakings
Gyro – automation framework that helps manage the entire testing lifecycle

H

HR – Human resources

I

IaaS – Infrastructure as a Service
IAS – International Accounting Standards
Idea Pipeline – route by which innovative ideas arrive at global repository
IFRIC – International Financial Reporting Interpretations Committee
IFRS – International Financial Reporting Standards
IMR – Insurers’ Market Repository
IMR4BROKERS – Insurers’ Market Repository accessible via mobile app
on X-presso
Innovation Board – leaders across the business as innovation champions
Innovation Showcase – monthly forum in which employees’ innovative
contributions are highlighted and rewarded
IoT – Internet of Things. Data is collected from real world objects, stored and
analysed to provide valuable information
IP – intellectual property
IPO – initial public offering
IT – information technology
ITIL – information technology infrastructure library
ITO – information technology outsourcing
IUA – International Underwriting Association of London is the world’s largest
representative organisation for international and wholesale insurance and
reinsurance companies

J

JV – joint venture

K

KPI – key performance indicator

L

LCH – London’s Clearing House
Leading Edge Programme – Xchanging’s HR initiative which selects
employees from each region and business to develop into the Company’s
future executives
Lloyd’s – Lloyd’s of London. The world’s specialist insurance market providing
insurance services in over 200 countries and territories
LME – London Metal Exchange
London insurance market – comprises insurance and reinsurance
companies, Lloyd’s syndicates, P & I clubs, and brokers with the core of
its activity being the conduct of internationally traded insurance
and reinsurance business
LMA – London Market Association provides professional, technical support to
the Lloyd’s underwriting community and represents their interests
LME – London Metal Exchange. Following the acquisition of the LME
by the Hong Kong Stock Exchange, a much smaller contract will follow
from May 2014
London insurance market – comprises insurance and reinsurance
companies, Lloyd’s syndicates, P & I clubs, and brokers with the core of
its activity being the conduct of internationally traded insurance
and reinsurance business

M

McKinsey – an American global management consulting firm that focusses
on solving issues of concern to senior management
MM4 – SBB Services inc. trading as MarketMaker4. Business acquisition
bringing Xchanging into to US market, direct procurement and eSourcing

N

Nearshore – near to the customer’s premises, typically in a cheaper region of
the same country.
Net revenue – Net revenue excludes principal spend on procurement
contracts that arises from supplier costs that are passed on to the customer
Netsett – global net settlement platform launched in September 2012
Non-executive Directors – the Non-executive Directors of Xchanging are
listed on http://www.xchanging.com/investor-relations/board-directors

O

Offshore – another country or region where costs are lower.
One Xchanging – We will enhance competitive edge by establishing shared
services, optimising cost of delivery through standardisation and
simplification, and enhancing provision of management information
On-site – where Xchanging operations are located at the customer’s site
Operating cash flow – is calculated as operating profit (EBIT) plus non-cash
items and working capital movement less capital expenditure and dividends
to non-controlling interests
OTC – over the counter

P

PaaS– Platform as a Service
P&C – property & casualty (insurance)
PLM – Product Lifecycle Management
POC – Proof of Concept
Point solution – Solving a particular problem without considering
related issues
PSP – Performance Share Plan
PwC – PricewaterhouseCoopers

R

Revenue visibility – recurring revenue comprising three components:
annuity, volume at risk and renewals
RFP – Request for Proposals
ROI – Return on Investment
ROIC – Return on Invested Capital – Net operating profit less adjusted taxes
divided by invested capital
RPI – Retail Price Index

S

S2P – Source to Person (procurement)
SaaS – Software as a Service
SDF – service delivery framework
SEE – social, ethical and environmental
SIA S.p.A. – a European financial and payment services systems provider
which holds a 1.3% non-controlling interest in Xchanging Italy S.p.A. until
January 2014
Six Sigma – a process optimisation methodology, which seeks to improve
outputs through eliminating errors and variance
SMAC – social, mobile, analytics and cloud. The fifth wave of
corporate computing
SMEs – small and medium-sized enterprises
Solvency II – the updated set of regulatory requirements for insurance firms
operating in the European Union, effective 1 January 2013
Special Economic Zone – a region within a country where economic growth is
promoted through local economic and legal incentives
SPP – Share Purchase Plan
SWIFT – Society for Worldwide Interbank Financial Telecommunication

T

Technology-platform – an underlying computer system on which application
programs can run
TESA – The Electronics Securities Architecture, our proprietary
trading software
Torque – automation framework that helps manage the entire testing lifecycle
TPA – Third party adviser
TRC – Treasury Risk Committee
TSR – Total shareholder return

U

UK Corporate Governance Code – the UK Corporate Governance Code
published in June 2010 by the Financial Reporting Council
UK GAAP – UK Generally Accepted Accounting Practice

V

Vault – spend & savings management
VCS – Volume Claims Service (aka Xoom). A professional adjusting service
for low value claims which developed out of the Ken’s Den scheme.

X

XBS – Xchanging Broking Services Limited
Xchanging – Xchanging plc. and its subsidiaries and subsidiary undertakings
Xchanging Italy S.p.A. – an Xchanging company comprised of Kedrios S.p.A
and Enterprise S.r.L formed on 1 February 2013
Xchanging Malaysia Sdn. Bhd. – joint venture with YTL Communications
XCS – Xchanging Claims Services. An EP between Xchanging and Lloyd’s
of London
XHRS – Xchanging HR Services. HR outsourcing contract with BAE Systems.
Following a contract extension in 2012, the contract finished at the end of 2013
XIS – Ins-sure Holdings Limited, an EP between Xchanging, Lloyd’s of London
and the International Underwriting Association in the UK
XMM – supports different messaging standards
Xoom – winner of Ken’s Den 2012. Web-based mobile app for WorkCover
(Australian Workers’ Compensation Scheme)
X-presso – mobile app repository for insurance market
XTB – Xchanging Transaction Bank GmbH, an EP between Xchanging,
Deutsche Bank and Sal Oppenheim in Germany. Sold to Deutsche Bank
1st September 2013
XTS – Xchanging Technology Services, Xchanging’s technology businesses
in the UK
Xuber – Xchanging’s Insurance software business

Y

YTL – YTL Communications Sdn. Bhd. of Malaysia, a subsidiary of YTL Power
International Berhad, and joint venture partner with Xchanging in Xchanging
Malaysia Sdn. Bhd

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