Bravura Solutions Limited · ASX:BVS
Bravura Solutions — FY2024 Earnings Presentation
32 slides from Bravura Solutions's earnings presentation, Aug 14, 2024
Slide 1: FY24 Results Presentation
For personal use only FY24 Results Presentation 14th August 2024
Slide 2: Presenters and Agenda
Presenters Agenda For personal use only 01 FY24 Summary Andrew Russell, Group CEO and MD 02 FY24 Results Details 03 Key Takeaways 04 Q&A Neil Montford, CFO 05 Appendix Bravura Solutions FY24 Results Presentation 2
Slide 3: Headlines
Headlines For personal use only 01 We have outperformed our upgraded guidance, delivering FY EBITDA of $25.8m and Cash EBITDA of $10m, with revenue of $250.4m in line with market guidance 02 The cost base has been materially reduced with an accumulated annualised $67m gross cost out including $15m d
Slide 4: FY24 Financial Results
FY24 Financial Results Materially improved financial results and exceeded guidance for FY241 For personal use only Profitability Revenue Cash Position EBITDA FY24 Gross Revenue Net Closing Cash $25.8m $250.4m $90.0m Up $26.1m vs FY23 Up 0.3% vs FY23 Up $14.3m vs FY23 Cash EBITDA FY24 Net cash operat
Slide 5: Agenda: FY24 Results Details
Agenda For personal use only 01 FY24 Summary 02 FY24 Results Details 03 Key Takeaways 04 Q&A 05 Appendix Results FY24 (ASX: BVS) Bravura Solutions FY24 Results Presentation 5
Slide 6: Reset and Energise focus delivering accelerated performance
“Reset and Energise” focus delivering accelerated performance For personal use only RESET AND ENERGISE ACCELERATE FINANCIAL PERFORMANCE FY24/FY25 Realigning around Market-leading Growing with Building a quality Strategic Pillars the core Technology existing clients business ▪ Listened to our clients
Slide 7: Updated commercial partnership with Fidelity
Our updated commercial partnership with Fidelity delivers a material strategic and financial upside to BVS For personal use only Strategic Rationale What changes Financial implications ▪ Allows Fidelity to continue to leverage ▪ A small number of Bravura’s team who ▪ £29m paid to BVS in FY25 in two
Slide 8: Bravura has been stabilised and reset with profitability increasing
Bravura has been stabilised and reset with profitability now increasing For personal use only Revenue and Costs (A$m) Cash EBITDA (A$m) Employee expense (inc capitalised) Third party costs Other expenses ex restructure Revenue 132 134 131 127 123 118 17 21 13 14 15 14 13 12 14 13 11 14 93 99 100 88
Slide 9: Pace and results of change program exceeded plan
The pace and results of the change program have exceeded plan Annualised gross cost savings $m For personal use only FY23 1H24 2H24 Total savings Exceeded plan Organisational Realignment 25 25 External Cost Reductions 5 5 Optimising Operating Model 12 4 16 Right Sizing 15 6 21 Total 25 27 15 67 COST
Slide 10: Surplus capital to be returned to shareholders in FY25
Surplus capital to be returned to shareholders in FY25 subject to approvals For personal use only Strategic Rationale Options for consideration Decisions and next steps ▪ Bravura continues to maintain a robust ▪ Capital Return ▪ The Board announced a proposed Capital capital position with a surplus
Slide 11: FY25 Guidance Summary
FY25 Guidance Summary For personal use only Revenue Profitability Profitability FY25 Gross Revenue1 EBITDA Cash EBITDA $235m - $240m $36m - $40m $28m - $32m Down 6% - 4% Up 40% - 55% Up 180% - 220% [3: Cash EBITDA variance to FY24 due to: Revenue variance to FY24 primarily due to: ▪ Full year impact
Slide 12: Agenda: Key Takeaways
Agenda For personal use only 01 FY24 Summary 02 FY24 Results Details 03 Key Takeaways 04 Q&A 05 Appendix Results FY24 (ASX: BVS) Bravura Solutions FY24 Results Presentation 12
Slide 13: FY24 Results – Takeaways
FY24 Results – Takeaways For personal use only 01 We are successfully executing in line with our strategic pillars for FY24 and FY25 and are now able to turn our focus to building sustainable business growth 02 Our FY25 priority is to focus on solving clients pain points with our software and profes
Slide 14: Agenda: Q&A
Agenda For personal use only 01 FY24 Summary 02 FY24 Results Details 03 Key Takeaways 04 Q&A 05 Appendix Results FY24 (ASX: BVS) Bravura Solutions FY24 Results Presentation 14
Slide 15: Questions
For personal use only Questions Bravura Solutions FY24 Results Presentation
Slide 16: Agenda: Appendix
Agenda For personal use only 01 FY24 Summary 02 FY24 Results Details 03 Key Takeaways 04 Q&A 05 Appendix Results FY24 (ASX: BVS) Bravura Solutions FY24 Results Presentation 16
Slide 17: Appendix Index
Appendix Index For personal use only Financial Detail – Operating Results, Reconciliation of EBITDA, 01 Cash EBITDA, Balance Sheet, Cash Flow, Revenue Walk 02 Cash position tracker 03 FY24/5 Strategy and product strategy 04 Bravura operations global snapshot 05 Bravura software value proposition 06
Slide 18: FY24 Operating Results
01 FY24 Operating Results A$m FY24 FY23 $ chg % chg Key Callouts For personal use only Wealth Management 163.1 163.6 (0.5) (0.3%) Funds Administration 87.3 86.0 1.3 1.5% 1. Total revenue increased 0.3% in FY24 vs the pcp, driven by price increases in underlying contracts and offset by a slower profe
Slide 19: Reconciliation of EBITDA and Cash EBITDA
01 Reconciliation of EBITDA and Cash EBITDA For personal use only A$m FY24 FY23 $ chg % chg Descriptions EBITDA to Cash EBITDA 1. EBITDA Operating Revenue minus Operating Costs adding back capitalised development costs and depreciation on right of use Revenue 250.4 249.6 0.8 0.3% assets and interest
Slide 20: Balance Sheet
01 Balance Sheet A$m 30 June 2024 30 June 2023 $ chg % chg Key Callouts For personal use only Cash 90.0 75.7 14.3 18.9% 1 Trade receivables 39.6 56.6 (17.0) (30.0%) 2 1. Cash has increased due to strong collection activities and cash cost Contract assets 19.2 26.8 (7.6) (28.4%) savings from reduced
Slide 21: Cash Flow to June 2024
01 Cash Flow to June 2024 A$m FY24 FY23 For personal use only FY24 Cashflow A$m Receipts from customers 298.4 242.0 Cash at 30 June 2023 75.7 Payments to suppliers and employees (267.3) (245.2) Interest received Operating cash flow 30.2 2.4 0.5 Income taxes paid Investing cash flow (6.5) (3.3) (2.8)
Slide 22: FY24 to FY25 revenue walk
01 FY24 to FY25 revenue walk For personal use only Bravura Solutions FY24 Results Presentation 22
Slide 23: Cash burn stabilised and turned to cash generating
02 Cash burn stabilised and turned to cash generating For personal use only Cash closing balance 100 90 80 70 Historical cash burn prior to Cash trend now positive in FY24 60 Capital Raise in March 2023 $m 50 40 30 20 10 - June 22 Sept 22 Dec 22 March 23 June 23 Sept 23 Dec 23 March 24 June 24 Bravu
Slide 24: Strategy on a page
03 Strategy on a page Together we create technology that reshapes how organisations and people prosper For personal use only Our market leading platforms power the core for wealth providers and fund managers and enables them to secure their customers’ financial future RESET AND ENERGISE ACCELERATE F
Slide 25: Product strategy addressing client pain points
03 Our product strategy focuses on addressing client pain points whilst creating sustainable future products only Sustainability Quality and Supportability Simplification Modernisation ▪ Maintaining and improving our ▪ Streamlining and standardising our ▪ Updating our product capabilities Businesses
Slide 26: Servicing blue chip customers in EMEA and APAC regions
04 Servicing blue chip customers in EMEA and APAC regions For personal use only Europe (including UK) Funds Admin ▪ £ 3.3TN FUA Babel ▪ £ 11TN deal/transactions processed per annum Australia Digital Advice ▪ 3.4m+ Australians have access to our digital advice solution Sonata Alta ▪ Over 3.4m transac
Slide 27: Bravura value proposition
05 The Bravura value proposition is to simplify complexity, automate for efficiency and reduce operational risk For personal use only Two Key Lines Underpinning Financial Solving Customer of Business Services Products Pain Points ▪ Wrap platforms ▪ Simplify complexity of Wealth manual back-office ▪
Slide 28: Leading Registry, Digital, Data and Automation products
05 Our technology provides leading Registry, Digital, Data and Automation products For personal use only WEALTH AND ADVICE FUNDS ADMIN ▪ Core Registry Leadership CUSTOMER REGISTRY ▪ Market focused product capability DIGITAL ▪ Best of breed Digital Advice ▪ Market level Data AUTOMATION ▪ Deep Automat
Slide 29: Glossary
06 Glossary APAC FUA Asia and Pacific Region Funds Under Administration For personal use only Cash EBITDA / EBITDAC Gross cost out Operating revenue minus operating costs less development costs, capex, lease Cost savings resulting from structural or other permanent change. This does not costs and on
Slide 30: 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 31: Important Notice and Disclaimer
Important Notice and Disclaimer PAST PERFORMANCE For personal use only Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon (and is not) an indication of future performance. DISCLAIMER The information is supplied in summary for
Slide 32: For more information
For personal use only For more information, visit: www.bravurasolutions.com/investors investors@bravurasolutions.com Bravura Solutions FY24 Results Presentation