Slide 1: Full Year 2017 Results Presentation
Full Year 2017 Results Presentation Bravura Solutions Limited 23rd August 2017
Slide 2: Important notice and disclaimer
Important notice and disclaimer The information contained in this document (including this notice) or 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 o
Slide 3: Today's presenters
Today’s presenters Tony Klim Martin Deda Chief Executive Officer Chief Financial Officer BRAVURA SOLUTIONS | PRESENTATION PAGE 3
Slide 4: Agenda
Agenda Full Year 2017 highlights Financial performance by Segment Full Year 2018 Outlook Q&A Appendix – Additional financial information Who we are BRAVURA SOLUTIONS | PRESENTATION PAGE 4
Slide 5: Full Year 2017 highlights
Full Year 2017 highlights a bravura solutions
Slide 6: Full year 2017 highlights
Full year 2017 highlights Sonata’s modern, open architecture and digital capabilities have driven client adoption and developed a market leading position • FY 2017 pro forma1 results exceeded prospectus forecasts across key metrics • Four major new Sonata sales in Australia, UK, and South Africa • S
Slide 7: Prospectus pro forma forecasts exceeded
Prospectus pro forma1 forecasts exceeded Revenue, pro forma1 EBITDA and NPAT, outperform prospectus forecasts • Revenue of $191.9 million exceeded prospectus forecast of FY 2017 1 FY 2017 Change A$m Pro forma IPO Forecast % $187.6 million by 2.3% Group: Revenue 191.9 187.6 2.3% • Pro forma 1 EBITDA
Slide 8: FY 2017 financial results
FY 2017 financial results Significant growth on FY 2016, with EBITDA margin expansion of 6.1% Pro forma1 financials Commentary Constant A$m Growth currency2 Growth • Group revenue growth versus pcp on an FY 2017 FY 2016 A$m % FY 2016 % actual and constant currency2 basis Revenue 191.9 184.7 7.2 3.9%
Slide 9: Financial performance by Segment
Financial performance by Segment
Slide 10: Wealth Management pro forma EBITDA and Margin
Wealth Management pro forma EBITDA and Margin New sales of Sonata driving Wealth Management segment revenue growth Pro forma financials Commentary Constant 1 A$m FY 2017 FY 2016 Growth % currency Growth % • Wealth Management segment revenue growth driven by FY 2016 new Sonata sales and increase in p
Slide 11: Wealth Management (continued)
Wealth Management (continued) Sonata now represents 48% of group revenues and is expected to continue to drive strong financial performance Constant Currency1 Revenue Growth (A$m) Commentary 200.0 191.9 60% 48% • Sonata revenue of 92.8 million in line with prospectus forecast 164.3 50% of 92.0 milli
Slide 12: Funds Administration pro forma EBITDA and margin
Funds Administration pro forma EBITDA and margin High margin Funds Administration business beats prospectus forecast and continues to provide stable, strong cash flows Pro forma financials Commentary Constant A$m FY 2017 FY 2016 Growth % currency1 Growth % FY 2016 • Revenue and costs are denominated
Slide 13: Strong recurring revenue growth
Strong recurring revenue growth 1 Driven by increase in existing client spend and new sales of Sonata $m Revenue Category Split (% of Total Revenue) 200 180 8% 8% 160 7% 3% 140 7% 7% 120 Licence Fees 68% 100 57% Recurring Revenue 69% Project Fees (1-3 years 80 75% visibility) 78% 60 62% 40 47.0 24%
Slide 14: Investing in Sonata
Investing in Sonata Significant investment in human capital to meet new client demand # of Sonata FTE Growth in FTE's and number of Sonata clients (June year end) clients 1,200 25 1,000 20 800 15 600 10 400 5 200 0 0 FY2013 FY2014 FY2015 FY2016 FY2017 Number of FTE's (30th June) Cumulative Sonata Cl
Slide 15: Sonata research and development
Sonata research and development Development capital expenditure is expected to decrease following FY 2017 as non- client funded development reduces and more development is client funded Development Expenditure (A$m) Commentary FY 2014 FY 2015 FY 2016 FY 2017 IPO Forecast Sonata Development Revenue 5
Slide 16: Summary 2017
Summary 2017 A record year, driven by new Sonata sales • Listed on the Australian Stock Exchange (BVS:ASX) on the 16th November 2016 • Key financial metrics above prospectus forecast and well above pcp • Strong revenue growth up 3.9% to $191.9m (up 16.8% in constant currency) • Strong pro forma EBIT
Slide 17: Large addressable market with significant tailwinds
Large addressable market with significant tailwinds Bravura operates in attractive industries, that are experiencing sustained growth driven by the need to reduce costs, simplify legacy systems, meet evolving regulatory requirements, grow assets under management and focus on client centric solutions
Slide 18: Outlook for FY 2018
Outlook for FY 2018 • Sales pipeline remains strong with no visible impact from BREXIT other than FX • Continue roll out of Sonata in core geographies, and expand sales of Sonata into new geographies • Additional new pipeline opportunities for Sonata in the Funds EPS Growth in Administration Segment
Slide 19: solutions
solutions
Slide 20: Full Year 2017 Financial results Appendix
Full Year 2017 Financial results APPENDIX
Slide 21: Income Statement
Income Statement Statutory Result Pro forma1 Result IPO IPO Change Change A$m Actual Forecast Actual Forecast (%) (%) 2017 2017 2017 2017 Wealth Management revenue 122.7 121.6 0.9% 122.7 121.6 0.9% Funds Administration revenue 69.2 66.0 4.9% 69.2 66.0 4.9% Revenue 191.9 187.6 2.3% 191.9 187.6 2.3% T
Slide 22: Balance sheet
Balance sheet Actual Actual Commentary A$m 30-Jun-17 30-Jun-16 17.1 29.1 • Bank debt and redeemable preference shares paid out at IPO Cash and cash equivalents Trade and other receivables 37.2 18.9 • Intangible assets include the goodwill, IP and client contacts acquired through acquisitions as well
Slide 23: Net free cash flow
Net free cash flow Statutory Result Pro forma Result Actual Forecast Actual IPO Commentary June year end, A$m Forecast 2017 2017 2017 2017 • Bank debt and redeemable preference EBITDA 29.9 29.8 32.6 32.3 shares paid out at IPO Changes in working capital (12.4) (2.4) (8.5) (0.3) • Continued strong op
Slide 24: Statutory Cash flow versus pcp
Statutory Cash flow versus pcp Actual Actual Commentary A$000 30-Jun-17 30-Jun-16 • Bank debt and redeemable preference shares paid Receipts 208.8 220.1 out at IPO Payments (187.4) (190.1) • Strong cash generation in FY 2017 Payments of IPO transaction fees (4.0) - • Continued strong operational cas
Slide 25: Who we are
Who we are _ bravura solutions
Slide 26: Who we are
Who we are Bravura is a market leading global provider of enterprise software and software-as-a- service (SaaS) to the wealth management and funds administration industries Attractive financial profile, demonstrated by high revenue growth and increasing operating leverage $192m FY2017 revenue 108%
Slide 27: Sonata has taken significant market share and has a huge market opportunity
Sonata has taken significant market share and has a huge market opportunity Sonata enables clients to consolidate multiple legacy IT platforms into a unified, customer-centric solution Siloed, disparate legacy IT systems Unified, customer-centric solution Advisors & Clients Advisors & Clients Digita
Slide 28: Sonata addresses the key challenges faced by participants in a range of market segments
Sonata addresses the key challenges faced by participants in a range of market segments Bravura’s flagship product supports a wide range of financial products and supporting processes in a number of geographies Financial Products Supported Investment Wrap Superannuation (incl. Life Private wealth &
Slide 29: Thank you
bravura solutions