Bravura Solutions Limited · ASX:BVS
Bravura Solutions — FY2010 Earnings Presentation
26 slides from Bravura Solutions's earnings presentation, August 2010
Slide 1: Investor Presentation – 2010 Financial Results
Investor Presentation – 2010 Financial Results Full Year ended 30 June Simon Woodfull, Group CEO Full Year results for year ended Rebecca Norton, Chief Financial Officer August 2010
Slide 2: Agenda
BRAVURA SOLUTIONS INVESTOR PRESENTATION AGENDA Group Highlights FY10 Financial Results Group Strategy Transfer Agency Wealth Management Summary Question & Answers 2 2
Slide 3: Group Highlights
Group Highlights
Slide 4: Key Points
BRAVURA SOLUTIONS INVESTOR PRESENTATION KEY POINTS Strong financial position for future growth Strong EBITDA (ex licence fees) growth from loss of $10.1m in FY09 to a profit of $3m Operating cash flow of $14.2m represents an EBITDA to operating cash flow conversion of 142% Successful complet
Slide 5: FY10 Financial Results
FY10 Financial Results
Slide 6: FY10 Financial Performance
BRAVURA SOLUTIONS INVESTOR PRESENTATION FY10 FINANCIAL PERFORMANCE 2 Constant Constant Actual Currency Currency Results summary FY09 FY10 FY10 Chg. Chg. Revenue 1 133.5 101.4 113.8 (14.8%) (24.1%) Revenue excluding licence fees 106.8 94.4 105.5 (1.2%) (11.7%) Expenses 117.4 91.4 100.7 (14.2%) (22.2%
Slide 7: Turn-around in Underlying Performance
BRAVURA SOLUTIONS INVESTOR PRESENTATION Revenues excluding licence fees (A$m) 106.8 TURN-AROUND IN UNDERLYING 105.5 PERFORMANCE Underlying EBITDA excluding 94.4 licence fees improved by A$13.1m in 12 months FY09 FY10 FY10 Constant Currency EBITDA conversion to operating EBITDA excluding licence
Slide 8: FY10 Revenue Summary
BRAVURA SOLUTIONS INVESTOR PRESENTATION FY10 REVENUE SUMMARY Lines of Business Geography Industry/Product Line Licence & 7.5 New Zealand 4.1 Other 5.2 Asia Transfer Agency Australia 26.3 Professional 46.7 59.9 Services EMEA/UK Maintenance /Managed 65.8 Services Wealth 47.2 Management 41.5 FY10 FY10
Slide 9: Adjusted Income Statement
BRAVURA SOLUTIONS INVESTOR PRESENTATION ADJUSTED INCOME STATEMENT Constant Actual Currency A$m FY10 FY10 FY10 EBITDA includes Revenue 101.4 113.76 A$2.7m of non-recurring Expenses 91.4 100.7 expense items Reported EBITDA 10.0 13.1 Reported EBITDA 10% 11% Restructuring costs occurred Reported EBI
Slide 10: Operating Cost Management
BRAVURA SOLUTIONS INVESTOR PRESENTATION FTE, revenues and labour related costs $A000s * 650 250.0 OPERATING COST MANAGEMENT 600 193 200.0 171 Expenses reduced by A$26m 171 550 183 150.0 500 134.8 450 134.5 100.0 driven primarily by headcount 104.5 100.3 400 reductions 50.0 350 548 548 605 555 300
Slide 11: Balance Sheet
BRAVURA SOLUTIONS INVESTOR PRESENTATION BALANCE SHEET A$m Jun-09 Jun-10 Assets Gearing ratio reduced Cash 4.0 6.5 significantly Other current assets 43.5 28.5 Intangible assets 136.9 154.6 Impairment charge of A$7.6m Other non-current assets 23.7 26.3 Total assets 208.1 216.0 taken after review
Slide 12: Funding Profile
BRAVURA SOLUTIONS INVESTOR PRESENTATION FUNDING PROFILE Drawn Facility limit down value Due Date (m) (m) Working capital facility AUD revolving tranche facility $ 8.3 $ 5.5 Dec 12 GBP revolving tranche facility $ 3.5 $ 2.3 Dec 12 Amortising term facility AUD term tranche facility $ 4.8 $ 4.8 Dec 12
Slide 13: Group Strategy and Outlook
Group Strategy and Outlook
Slide 14: Group Strategy
BRAVURA SOLUTIONS INVESTOR PRESENTATION GROUP STRATEGY Leverage strong financial position for significant future growth across both Transfer Agency and Wealth Management divisions Expand our market leading solutions into the emerging markets within Asia Pacific Lower cost of development and su
Slide 15: Core Business
BRAVURA SOLUTIONS INVESTOR PRESENTATION CORE BUSINESS Our core business is to implement, support and maintain back office “data record keeping” software solutions across the Transfer Agency and Wealth Management divisions Transfer Agency The management of all aspects of investor record keeping
Slide 16: Transfer Agency
Transfer Agency
Slide 17: Transfer Agency
BRAVURA SOLUTIONS INVESTOR PRESENTATION TRANSFER AGENCY Market share increasing and over 80% of budgeted revenue is contracted Continue to drive international opportunities and support major Transfer Agency clients in their global expansion Compliment existing operations with low cost centre i
Slide 18: Global Clients and New Markets
BRAVURA SOLUTIONS INVESTOR PRESENTATION GLOBAL CLIENTS AND NEW MARKETS Current client base will assist in enabling entry into new and emerging markets Product roadmap progressing well with significant client participation in shaping our future product strategy Build out relationships with thir
Slide 19: MFT Integration
BRAVURA SOLUTIONS INVESTOR PRESENTATION MFT INTEGRATION Successful completion of MFT Acquisition on 17 June 2010 for 3.4 x EBITDA MFT‟s Global Funds Administration System (GFAS) system is a mature and stable transfer agency software solution Provides transfer agency and record-keeping function
Slide 20: Wealth Management
Wealth Management
Slide 21: Wealth Management
BRAVURA SOLUTIONS INVESTOR PRESENTATION WEALTH MANAGEMENT Well positioned to capitalise on changing industry trends and regulatory changes in Australia, UK and Asia Sonata, our new technology platform based on a SOA architecture utilising Oracle‟s latest database platform and Java, is now releas
Slide 22: UK Growth Opportunities
BRAVURA SOLUTIONS INVESTOR PRESENTATION UK GROWTH OPPORTUNITIES Third Party Administrators (TPA) Regulatory changes and the need to rapidly enter the market without large system build and costs will force more platform providers towards TPA‟s Build on relationships with existing TPA provider,
Slide 23: Emerging Markets
BRAVURA SOLUTIONS INVESTOR PRESENTATION EMERGING MARKETS Celent research predicts that insurance companies will move away from agency based distribution towards a more diverse „multi channel‟ distribution model i.e. banks, direct sales, financial advisors We are well positioned to provide techno
Slide 24: Summary
Summary
Slide 25: Key Summary Points
BRAVURA SOLUTIONS INVESTOR PRESENTATION KEY SUMMARY POINTS Strong financial and cash position for growth New global organisation structure to better align solutions to clients needs Improved internal processes and financial controls Successful acquisition of MFT and a clear integration plan
Slide 26: Q&A
Q&A