Glossary

A

AGI – Allianz Global Investors
Kapitalanlagesellschaft mbH.
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 of
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.

B

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.

C

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.

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.
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.
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.
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 listed on pages 48 to 49.

F

FdB – Fondsdepot Bank GmbH, an EP between
Xchanging and AGI in Germany.
FRS – Financial Reporting Standards.
FSA – Financial Services 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.

G

GPO – Gainshare Procurement Outsourcing
model.
Group – Xchanging plc and its subsidiaries and
subsidiary undertakings.

H

HR – Human resources

I

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.

J

JV – Joint venture.

K

Kedrios – Kedrios S.p.A., representing the
partnership between Xchanging and SIA S.p.A.
in Italy.
KPI – key performance indicator.

L

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.

N

Nearshore – near to the customer’s premises,
typically in a cheaper region of the same
country.
Non-executive Directors – the Non-executive Directors of Xchanging are listed on pages 46 to 47.

O

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 movements less
capital expenditure and dividends to
non-controlling interests.
OTC – over the counter.

P

PaaS– Platform as a Service.
PSP – Performance Share Plan.
PwC – PricewaterhouseCoopers.

R

Revenue visibility – recurring revenue
comprising three components: annuity, volume
at risk and renewals.
RFP – Request for Proposals.
RPI – Retail Price Index.

S

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 systems
services provider and Xchanging’s partner in
the Kedrios partnership.
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.

T

TESA – The Electronics Securities Architecture,
our proprietary trading software.
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 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.

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 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.

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.