Edison issues outlook on CREALOGIX Group (CLXN)

Edison Investment Research Limited Edison issues outlook on CREALOGIX Group (CLXN) 21-Nov-2018 / 15:29 GMT/BST London, UK, 21 November 2018 Edison issues outlook on CREALOGIX Group (CLXN) CREALOGIX (CLXN) has established a strong track record of delivering software solutions to the banking industry in Switzerland and is transitioning the business to international markets. FY18 numbers were below expectations, mainly due to the faster than anticipated switch to SaaS, which spreads out revenue. International revenues represent 57% of the total (50% in FY17). CREALOGIX acquired the 80% remainder of Elaxy BS&S in July, have acquired Innofis to target the Middle Eastern markets earlier this year. The stable, cash-generative nature of Elaxy BS&S balances the higher-risk, stronger growth profile of Innofis. Given the attractive industry dynamics, and with CREALOGIX ideally positioned to capitalise on these, the shares look attractive on c 21x our FY20e EPS. A DCF scenario incorporating 10% organic revenue CAGR over 2019-29e falling thereafter to 2%, operating margins tapering up to a level of 15% from FY22e, along with a 9% WACC, would suggest a valuation of CHF217, 68% above the current share price. Increasing the margin target to 20% lifts the valuation to CHF284, while reducing the margin to 10% cuts it to CHF150. These valuations are after the dilution impact from the outstanding convertible bonds. Click here to view the full report. All reports published by Edison are available to download free of charge from its website www.edisoninvestmentresearch.com About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information please contact Edison: Richard Jeans, [phone] Katherine Thompson, [phone] [e-mail] Learn more atwww.edisongroup.com and connect with Edison on: LinkedInhttps://www.linkedin.com/company/edison-investment-research Twitterwww.twitter.com/Edison_Inv_Res YouTubewww.youtube.com/edisonitv Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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749693  21-Nov-2018