Endava Plc · NYSE:DAVA
Endava — Q2 FY2021 Earnings Presentation
28 slides from Endava's earnings presentation, Feb 17, 2021
Slide 1: Q2 FY2021 Investor Presentation
Q2 FY2021 INVESTOR PRESENTATION
Slide 2: Forward-looking statements
2 This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation, other than statements of historical facts, are forward-looking statements. The words “believe,” “estimate,” “expect,” “ma
Slide 3: Reimagining the Relationship Between People & Technology
REIMAGINING THE RELATIONSHIP BETWEEN PEOPLE & TECHNOLOGY 3
Slide 4: We accelerate our clients' ability to take advantage of new business models
We accelerate our clients’ ability to take advantage of new business models and market opportunities by ideating and delivering dynamic platforms and intelligent digital experiences that are designed to fuel rapid, ongoing transformation of their businesses. By leveraging next-generation technologie
Slide 5: Opportunity & Approach Q2 FY2021
5 1 Opportunity & Approach Q2 FY2021
Slide 6: We are a leading next-gen technology services provider
6 WE ARE A LEADING NEXT-GEN TECHNOLOGY SERVICES PROVIDER AND HELP ACCELERATE DISRUPTION BY DELIVERING RAPID EVOLUTION TO ENTERPRISES. OUR PEOPLE SYNTHESIZE CREATIVITY, TECHNOLOGY, AND DELIVERY AT SCALE IN MULTI-DISCIPLINARY TEAMS, ENABLING US TO SUPPORT OUR CLIENTS FROM IDEATION TO PRODUCTION. FROM
Slide 7: Large and fast growing market opportunity
LARGE AND FAST GROWING MARKET OPPORTUNITY DELIVER RAPID EVOLUTION BY COMBINING NEXT-GEN TECHNOLOGIES WITH DEEP INDUSTRY EXPERTISE STRONG GROWTH AND FINANCIAL PERFORMANCE IDEATION TO PRODUCTION CAPABILITIES, DISTRIBUTED AGILE AT SCALE, DOMAIN EXPERTISE AND NEAR-SHORE DELIVERY FOUNDER-LED, EXPERIENCED
Slide 8: Positioning versus traditional IT services, consultants and agencies
8 TRADITIONAL IT SERVICES BUS. & TECH CONSULTANTS ENGINEERING ENTERPRISE AGILE AUTOMATION NEXT-GEN TECH STRATEGY USER EXPERIENCE DIGITAL AGENCIES
Slide 9: We serve a large addressable market
WE SERVE A LARGE ADDRESSABLE MARKET * Worldwide Semiannual Digital Transformation Spending Guide IDC OCTOBER 2020 $478B 2020 $815B 2024 14.3 % CAGR FOR DIGITAL TRANSFORMATION SERVICES 9
Slide 10: Employee geography
EMPLOYEE GEOGRAPHY ( INCLUDING DIRECTORS): FY16 FY17 FY18 FY19 FY20 Q2FY20 Q2FY21 Western Europe 237 233 232 254 448 431 465 Central Europe - EU Countries 1,572 2,314 2,578 3,062 3,368 3,171 3,809 1,809 2,547 2,810 3,316 3,816 3,602 4,274 Central Europe - Non-EU Countries 928 1,073 1,279 1,583 1,810
Slide 11: History of Endava
HISTORY OF ENDAVA 7,464 FOUNDED IN COMPUDAVA ALPHEUS NICKELFISH PS TECH ISDC EXPAND TO CE VELOCITY PARTNERSCONCISE UK IT CONSULTANCY 60 240 1,000 2000 2021 EXPAND TO USA EXPAND TO LATAM IPO NYSE JULY 2018 MOLDOVA NEARSHORE DELIVERY GERMANY CONSULTING BUSINESS USA DIGITAL, UX & STRATEGY FIRM USA & LA
Slide 12: We create value through the delivery of
12 WE CREATE VALUE THROUGH THE DELIVERY OF
Slide 13: Service capabilities
13 BUSINESS ANALYSIS DATA & ANALYTICS DIGITAL PRODUCT STRATEGY PE DIGITAL & IT ADVISORY PROGRAMME MANAGEMENT TECHNOLOGY STRATEGY AUTOMATED TESTING. CLOUD NATIVE SOFTWARE ENG. CONTINUOUS DELIVERY . DISTRIBUTED AGILE DELIVERY INTELLIGENT AUTOMATION SECURE DEVELOPMENT AGILE APPLICATIONS MGMT CLOUD INFR
Slide 14: Disruption waves and convergence across industries
14 TODAY TIME TECHNOLOGY DISRUPTION WAVES & CONVERGENCE BANKING PAYMENTS RETAIL / CPG LOGISTICS HEALTHCARE
Slide 15: Domain expertise: Payments
15 DOMAIN EXPERTISE: PAYMENT RO I O PP OR TU N IT Y 2016 2017 2018 2019 2020 PROTOTYPING PAYMENTS PLATFORMS ROBOTIC AUTOMATION REAL OMNI-CHANNEL CUSTOMER CENTRIC UX FINANCIAL INCLUSION CHATBOTS MICRO MERCHANTS & NANO PAYMENTS SCHEMELESS BIOMETRIC IN APP P2P BLOCKCHAIN QUANTUM CRYPTOCURRENCY PSD2 OPE
Slide 16: Brand, culture and M&A scalability
16 AS WE STRIVE TO BE THE ASPIRATIONAL BRAND FOR IT PROFESSIONALS IN THE REGIONS IN WHICH WE OPERATE, WE ATTRACT HIGH QUALITY TALENT. TO SUPPORT THIS GROWTH, WE NEED LEADERSHIP AND HAVE DEVELOPED THE ‘PASS IT ON’ INITIATIVE WHICH DRIVES LOYALTY AND LOWERS ATTRITION. WE USE TUCK-IN ACQUISITIONS TO AC
Slide 17: COVID-19 response
17 ENSURING THE HEALTH & WELL-BEING OF OUR EMPLOYEES AND THEIR FAMILIES WORKING WITH OUR CLIENTS TO ADAPT TO THE CURRENT ENVIRONMENT RETAINING OUR PEOPLE AND THEIR INCOMES THROUGH THIS CRISIS PERIOD Priorities CURRENTLY OVER 90% OF OUR EMPLOYEES ARE WORKING FROM HOME. THE CITIES IN WHICH WE OPERATE
Slide 18: Q2 FY2021 Financials
oo Q2 Fy2021 Financials 18
Slide 19: Financial Highlights
19 MASTER SERVICE AGREEMENTS WITH CLIENTS PRIMARILY T&M BASED PRICING LONG-TERM CLIENT RELATIONSHIPS STRONG REVENUE GROWTH HEALTHY MARGINS LOW CAPEX REQUIREMENTS POSITIVE ADJUSTED FREE CASH FLOW Financial Highlights
Slide 20: Strong revenue growth
20 STRONG REVENUE GROWTH FY15 FY16 FY17 FY17 FY19 FY20 _ 6m18 6m19 105.2 85.9 95.182.4351.0287.9217.6159.4115.484.1 CAGR 33.1% OVER LAST 5 YEARS, 89.4% OF REVENUE (ON AVERAGE) EACH FISCAL YEAR WAS GENERATED FROM CLIENTS IN THE PREVIOUS YEAR. FY15 FY16 FY17 JUNE 30 DEC 31 6M20 6M21FY18 FY19 +19.1% YO
Slide 21: Robust profitability
21 FY15 FY16 FY17 FY18 FY19 FY20 _ FY17 FY18 10.6 8.717.525.330.124.621.720.815.2 ROBUST PROFITABILITY FY15 FY16 FY17 FY18 FY19 FY20 _ FY17 FY18 20.620.5 18.216.968.651.933.525.222.816.1 19.2% 19.7% 15.8% 22.2% 19.4%MARGIN FY15 FY16 FY17 JUNE 30 FY18 15.4% 0.1%MARGIN FY15 FY16 FY17 JUNE 30 DEC 31 6M
Slide 22: Deep client relationships
DEEP CLIENT RELATIONSHIPS FY15 FY17 FY18 _ FY18 7565656346342618 FY15 FY16 FY17 FY17 FY17 FY17 q218 q219 q218 q219 37%37%38%39%38%38%42%49%54%66% TOP TEN FY15 FY16 FY17 JUNE 30 FY15 FY16 FY17 JUNE 30 FY18 FY186M20 Q2FY21 DEC 31 FY19 FY19 22* Calculated on a 12 month rolling basis. Top Client Revenue
Slide 23: Increasing number and spend of clients
23 INCREASING NUMBER & SPEND OF CLIENTS FY15 FY16 FY17 FY17 FY17 FY20 _ FY17 FY18 521367416275258188154112 FY15 FY16 FY17 FY18 FY18 FY18 - Q218 Q219 Q218 Q219 229258401440647699597504434284 0 3345 6690 10035 13380 FY15 FY16 FY17 FY18 FY19 FY20 Q218 Q219 Q218 Q219 3,8603,1907,5806,51013,38010,8709,04
Slide 24: Diverse revenue base: geography and industry verticals
DIVERSE REVENUE BASE: GEOGRAPHY & INDUSTRY VERTICALS 23% 28% 49% PAYMENTS AND FINANCIAL SERVICES TECHNOLOGY, MEDIA & TELECOMMUNICATIONS OTHER REVENUE % BY VERTICAL Q2 FY21 FY15 FY16 FY17 FY18 FY19 FY20 _ FY19 FY20 0.30.20.3 29%29%29% 27% 21% 16%18% 10% 27% 23%24%28%34% 34% 18% 12% 42%45%44%45%45%50%
Slide 25: Low capex and positive adjusted FCF
LOW CAPEX & POSITIVE ADJUSTED FCF 0.00 8.00 16.00 24.00 32.00 FY15 FY16 FY17 FY18 FY18 FY20 _ FY17 FY18 18.7 8.0 21.213.531.529.828.711.210.19.5 FY15 FY17 FY18 _ FY18 1.7 3.2 0.62.59.77.35.46.52.72.1 MARGIN FY15 FY16 FY17 6M20 6M21FY18 % OF REVENUE 11.3% 8.8% 7.0% 12.7% 19.9% FY15 FY16 FY17 JUNE 30
Slide 26: Appendix Q2 FY2021
3 Appendix Q2 FY2021 26
Slide 27: IFRS to Non-IFRS Reconciliation
27 IFRS TO NON-IFRS RECONCILIATION
Slide 28: Endava
Pendava