Bravura Solutions Limited · ASX:BVS
Bravura Solutions — Investor Presentation (April 2019)
17 slides from Bravura Solutions's investor presentation, Apr 30, 2019
Slide 1: Investor Presentation
Investor Presentation Bravura Solutions Limited April 2019
Slide 2: Important notice and disclaimer
Important notice and disclaimer The information contained in this document (including this notice) and discussed at this presentation (collectively, the Presentation) has been prepared by Bravura Solutions Limited (Bravura). The Presentation is subject to the conditions outlined below. Your receipt
Slide 3: Who We Are
WHO WE ARE Bravura is a market leading provider of enterprise software and software-as-a- service to the wealth management and funds administration industries ✓ High degree of recurring revenue ✓ A$130m+ invested in Sonata ✓ Long-term, sticky, customer contracts ✓ 70+ blue chip clients ✓ Significant
Slide 4: Segment Overview
SEGMENT OVERVIEW Wealth Management Funds Administration Revenue contribution1 71% 29% EBITDA contribution1 68% 32% Number of clients2 64 13 Fidelity, Prudential, Scottish Friendly, Mercer, Westpac NZ, Bank of New York Mellon, Legal & General, Schroders and TAL, Partners Life, Suncorp and STANLIB Wea
Slide 5: Strong Revenue and Earnings Growth
STRONG REVENUE AND EARNINGS GROWTH Revenue (A$m) EBITDA (A$m) 1H 2H 221.5 1H 2H 38.6 191.9 184.7 32.6 152.1 118.6 20.0 25.0 89.9 98.4 14.4 80.4 17.5 11.9 9.4 127.4 23.8 94.8 102.9 18.2 18.5 93.5 71.7 13.1 8.1 FY15 FY16 FY17 FY18 1H19 FY15 FY16 FY17 1 FY18 1H19 1. FY17 EBITDA is presented on a pro fo
Slide 6: Continued Improvement in Margins and Returns
CONTINUED IMPROVEMENT IN MARGINS AND RETURNS EBITDA margin1 Return on assets1, 2 19% 17% 17% 22% 20% 18% 11% 11% 12% 8% FY15 FY16 FY17 FY18 1H19 FY15 FY16 FY17 FY18 1H19 1. Based on FY15 and FY16 pro forma EBITDA 2. Return on assets is based on annualised EBITDA over average total assets BRAVURA SOL
Slide 7: Why Clients Choose Sonata
WHY CLIENTS CHOOSE SONATA Challenges faced by participants… … can be solved with Bravura technology 1 Evolving and complex regulatory and tax environment ✓ Solves complex regulatory and tax environments 2 Demand for digital and “self-directed” ✓ Fully accessible through API/web services to self- dev
Slide 8: Bravura's Flagship Product – Sonata
BRAVURA’S FLAGSHIP PRODUCT – SONATA Sonata is the essential software for financial institutions to administer a wide range of financial products. This ranges from allowing front office functions to originate and distribute financial products, middle office functions to assess risk and align the prod
Slide 9: Sonata Simplifies Legacy Client Systems
SONATA SIMPLIFIES LEGACY CLIENT SYSTEMS Siloed, disparate legacy IT systems Unified, customer-centric solution Advisors & Clients Advisors & Clients Move to a Digital multi-channel delivery Call centre 1 Call centre 2 Call centre 3 true customer Single, configurable code base centric Product Product
Slide 10: Strong Growth in Recurring Revenue
STRONG GROWTH IN RECURRING REVENUE Recurring revenue (A$m) 221.5 ▪ Recurring revenue was up 31% in 1H19 compared to the pcp and Implementation fees (A$m) 10.2 comprised 72% of total revenue Licence fees (A$m) 191.9 ▪ Recurring revenue has grown as new clients are added and existing 184.7 clients bro
Slide 11: Expansion in Wealth Management R&D Leverage
EXPANSION IN WEALTH MANAGEMENT R&D LEVERAGE ▪ Continued investment over time has led to A$m FY14 FY15 FY16 FY17 FY18 1H19 significant scale and depth in product functionality, and has further cemented Client development revenue 5.0 11.2 13.9 13.5 28.9 22.5 Bravura’s market-leading position Client de
Slide 12: 1H19 Key Highlights
1H19 KEY HIGHLIGHTS Continued strong revenue growth with increasing operating leverage A$m 1H18 1H19 % chg ▪ Bravura’s long-term growth is driven by clients’ need to address speed to market for new products, the growing importance of a seamless digital experience, ongoing changes in financial servic
Slide 13: Strategic Growth Priorities
STRATEGIC GROWTH PRIORITIES Growth drivers Execution of growth drivers Expanding Expanding ✓ distribution geographies UK Life & Pensions regulatory changes and moves to digital driving network system upgrades Asia ✓ Resellers Next generation Australian & New Zealand wrap and investment platforms dri
Slide 14: Multiple Growth Opportunities
MULTIPLE GROWTH OPPORTUNITIES Bravura is actively exploring a number of growth opportunities to expand into adjacent markets in existing geographies, and new or existing markets in new geographies Acquisition and product expansion opportunities Non-binding indicative proposal to acquire GBST ▪ Bravu
Slide 15: FY19 Outlook
FY19 OUTLOOK Strong sales pipeline ▪ Strong pipeline driven by sales opportunities from new clients and significant project activity from existing clients ▪ Bravura is well placed to take advantage of strong demand in the UK, Australia, New Zealand, South Africa and Asia ▪ Strong demand underpinned
Slide 16: Q&A
Q&A
Slide 17: For more information
For more information, visit: www.bravurasolutions.com/investors/ investors@bravurasolutions.com
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