AGI – Allianz Global Investors Europe GmbH.
AGM – Annual General Meeting.
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.
Adjusted earnings per share – Xchanging’s share of adjusted profit for the year divided by the weighted average basic number od Xchanging plc shares in issue for the year ended 31 December.
AR – AR Enterprises S.r.L.
Articles or Articles of Association – the Articles of association of Xchanging plc.
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.
BPS – Business Processing Services.
CAD – Computer-aided design.
CAM – Computer-aided manufacturing.
CAGR – compound annual growth rate.
Cambridge – Cambridge Solutions Limited has been renamed as Xchanging Solutions Limited.
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
CLASS – Claims Loss Advice and Settlement System.
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.
CRM system – customer relationship management system.
CSR – Corporate Social Responsibility.
CTA – Contractual Trust Arrangement.
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.
Directors – the Xchanging Board of Directors of are on http://www.xchanging.com/management-team.
Disclosure and Transparency Rules – the disclosure and transparency rules of the UK Listing Authority.
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.
EP – Enterprise Partnership, a corporate partnership between Xchanging and a customer.
ESG – Employee, Social and Governance.
ESOP – Executive Share Option Plan.
EU – European Union.
Executive Board – the Executive Board of Xchanging are on http://www.xchanging.com/investor-relations/board-directors.
FdB – Fondsdepot Bank GmbH, an EP between Xchanging and AGI in Germany.
FRS – Financial Reporting Standards.
FSA – Financial Services Authority, now the Financial Conduct Authority.
FSB – FondsServiceBank GmbH.
Four Part Action Plan – Xchanging’s Four Part Action Plan developed in 2011 includes performing a strategic and intrinsic value review, generating operational improvements, revenue growth and cash flow funding structure.
GPO – gain-share Procurement Outsourcing model.
Group – Xchanging plc and its subsidiaries and subsidiary undertakings.
HR – Human resources
IaaS – Infrastructure as a Service.
IAS – International Accounting Standards.
IFRIC – International Financial Reporting Interpretations Committee.
IFRS – International Financial Reporting Standards.
IMR – Insurers’ Market Repository.
IP – intellectual property.
IPO – initial public offering.
IRIS – International Insurance and Reinsurance Solution.
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.
JV – Joint venture.
Kedrios – Kedrios S.p.A. was merged with AR Enterprises S.r.L. to form Xchanging Italy S.p.A.
KPI – key performance indicator.
LCH – London’s Clearing House.
The Leading Edge Programme – Xchanging’s HR initiative which selects employees from each region and business to develop into the Company’s future executives.
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.
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.
Non-executive Directors – the Non-executive Directors of Xchanging are listed on http://www.xchanging.com/investor-relations/board-directors.
Offshore – another country or region where costs are lower.
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 movemens less capital expenditure and dividends to non-controlling interests.
OTC – over the counter.
PaaS– Platform as a Service.
PSP – Performance Share Plan.
PwC – PricewaterhouseCoopers.
Revenue visibility – recurring revenue comprising three components: annuity, volume at risk and renewals.
RFP – Request for Proposals.
RPI – Retail Price Index.
SaaS – Software as a Service.
SDF – service delivery framework.
SEE – social, ethical and environmental.
SIA S.p.A. – Formerly SIA-SSB S.p.A. A European financial and payment services systems provider and Xchanging’s partner in the Kedrios partnership. After the merger of Kedrios and AR, SIA S.p.A. holds a 1.3% non-controlling interest in Xchanging Italy S.p.A.
Six Sigma – a process optimisation methodology, which seeks to improve outputs through eliminating errors and variance.
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.
TESA – The Electronics Securities Architecture, our proprietary trading software.
TPA – Third party adviser.
TRC – Treasury Risk Committee.
TSR – Total shareholder return.
UK Corporate Governance Code – the UK Corporate Governance Code published in June 2010 by the Financial Reporting Council.
UK Critical National Infrastructure – The national infrastructure comprises the facilities, systems, sites and networks necessary for the delivery of the essential services upon which daily life in the UK depends.
UK GAAP – UK Generally Accepted Accounting Practice.
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 and AR formed on 1 February 2013.
Xchanging Malaysia Sdn. Bhd. – Joint venture with YTL Communications.
XIS – Ins-sure Holdings Limited, an EP between Xchanging, Lloyd’s of London and the International Underwriting Association in the UK.
XMB – Xchanging Management Board.
XPC – Xchanging Performance Committee.
XTB – Xchanging Transaction Bank GmbH, an EP between Xchanging, Deutsche Bank and Sal Oppenheim in Germany.
XTS – Xchanging Technology Services, Xchanging’s technology businesses in the UK.
Xuber – Xchanging’s Insurance software business.
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.