Glossary

A

AGI – Allianz Global Investors Kapitalanlagesellschaft mbH.
AGM – Annual General Meeting.
Adjusted operating profit – excludes exceptional items,
acquisition costs, amortisation of intangible assets previously
unrecognised by an acquired entity, 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.
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,
Dennis Millard, Pat O’Driscoll, Michel Paulin and Bill Thomas.
BPO – Business Process Outsourcing. 

C

CAGR – compound annual growth rate.
Cambridge – Cambridge Solutions Limited and
its subsidiaries.
Cash conversion – is calculated as operating cash flow
divided by adjusted operating profit.
CEO – Chief Executive Officer.
CFO – Chief Financial Officer.
Cloud computing – is the provision of fully managed
consumption-based services over high speed
internet infrastructure.
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,
Dennis Millard, Pat O’Driscoll, Michel Paulin and Bill Thomas.
Disclosure and Transparency Rules – the disclosure and
transparency rules of the UK Listing Authority.

E

EBIT – see underlying operating profit.
EBITDA – underlying operating profit before depreciation
and amortisation.
ECF2 – Electronic Claims File.
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
includes performing a Strategic and intrinsic value review,
generating operational improvements, revenue growth and
cash flow funding structure.

G

Group – Xchanging plc and its subsidiaries and subsidiary undertakings.

H

HR – human resources.

I

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.

K

Kedrios – Kedrios S.p.A., representing the partnership
between Xchanging and SIA-SSB 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 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 40 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 noncontrolling
interests.
OTC – over the counter.

P

PSP – Performance Share Plan.
PwC – PricewaterhouseCoopers.

R

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

S

SDF – service delivery framework.
SEE – social, ethical and environmental.
SIA-SSB – 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.
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.
Underlying earnings per share (EPS) – Xchanging’s share
of underlying profit for the year divided by the weighted
average basic number of Xchanging plc shares in issue for
the year ended 31 December.
Underlying operating profit – underlying operating profit
excludes exceptional items, acquisition costs, and
amortisation of intangible assets previously unrecognised by
acquired entities.

X

XBS – Xchanging Broking Services Limited.
Xchanging – Xchanging plc and its subsidiaries and
subsidiary undertakings.
XIS – Ins-sure Holdings Limited, an EP between Xchanging,
Lloyds of London and the International Underwriting
Association in the UK.
XISG – Xchanging Investmentservices GmbH, an Xchanging
Group company.
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.