Bravura Solutions Limited · ASX:BVS
Bravura Solutions — H1 FY2010 Earnings Presentation
20 slides from Bravura Solutions's earnings presentation, Feb 23, 2010
Slide 1: Half Year Results
` Half Year Results For the 6 month period ended 31 December 2009 Bravura Solutions Limited 23 February 2010 1
Slide 2: Agenda
Agenda Overview 3 Financial performance 7 Strategy and outlook 14 2
Slide 3: Overview
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Slide 4: 1H10 financial performance
1H10 financial performance 1H09 1H10 Actual Actual Chg. (%) Revenue¹ 73.0 53.0 (27.4) Revenue¹ excluding licence fees 53.8 47.5 (11.9) Expenses 61.9 46.9 (24.3) EBITDA 11.0 6.0 (45.3) EBITDA excluding licence fees (8.1) 0.5 106.1 Net profit after tax 2.6 (4.4) (265.7) Operating cash inflow 13.0 7.0
Slide 5: 1H10 - key outcomes
1H10 - key outcomes Recapitalisation Proposal approved with strong support, followed by solid take up of Rights Issue Solid operating cash flow despite operating environment Improvement in operating performance excluding licence fees Forecast to fall within end of full year guidance range Simon Wood
Slide 6: 1H10 – operational highlights
1H10 – operational highlights Completed TalisPension go-live for Statewide in Australia Completed TalisTrust implementation with ABSA in South Africa Undertook organisational restructure in APAC and EMEA to: Ensure greater product focus on Wealth Management and Transfer Agency Increase operational e
Slide 7: Financial performance
Financial performance
Slide 8: 1H10 revenue & EBITDA
1H10 revenue & EBITDA Revenue (A$m) Licence revenue impacted by lengthening sales cycle due to the GFC by $13.6m Professional services revenue declined 72.9 as client capital and operating expenses 67.4 53.0 restricted due to global economic conditions Sales pipeline is healthy with improved 1H08 1H
Slide 9: Turn-around in underlying performance
Turn-around in underlying performance Revenue excluding licence fees (A$m) Revenue excluding licence fees decreased by $6.4m for 1H10 from 1H09, due to completion of large 52.6 Asian implementation projects and 53.8 47.5 lower demand for professional services from existing customers GTAS acquisition
Slide 10: Product diversity is a strength
Product diversity is a strength Rufus – Transfer Agency Revenue by product excluding licence fees 1H10 (A$m) Rufus $22.0m/46% Strong installed client base Margin improvement as a result of Talisman $7.2m/15% efficiency measures Focusing on new sales opportunities Implementation of Rufus with GTAS $4
Slide 11: 1H10 regional performance
1H10 regional performance Revenue by region excluding licence fees (A$m) EMEA EMEA region benefited from GTAS revenue contribution of $4.9m (product acquired in December 2008) Professional services impacted by lower client 33.3 30.5 demand for discretionary spend, as well as restrictions placed on c
Slide 12: Operating costs and headcount
Operating costs and headcount Operating costs as a % of revenue (A$m) Operating expenses reduced by 110% 70.0 57.8 61.9 60.0 $15.0m 100% 46.9 50.0 Labour related costs as a percentage 90% 20% 24% 27% 40.0 of revenue decreased to 73% in 1H10 80% 30.0 from 76% in 1H09 70% 80% 76% 73% 20.0 Cost managem
Slide 13: Balance sheet
Balance sheet Balance Sheet A$m Dec-09 Jun-09 ASSETS Current assets December deferred acquisition Cash and cash equivalents Trade and other receivables Derivative Financial Instruments 5.5 34.4 - 4.0 40.5 - payment made through Other current assets Total current assets 1.9 41.9 2.9 47.4 existing fac
Slide 14: Reduction in net debt
Reduction in net debt Net debt decreased by $16.6m to $32.1m Net debt bridge (A$m) 48.7 1.5 32.1 10.4 4.8 (33.3) Net debt Rights Issue Underwriting Repayment of Operational Net debt 30 June 2009 proceeds costs FX contract cash flow 31 Dec 2009 14
Slide 15: Strategy and outlook
Strategy and outlook
Slide 16: International market positions EMEA Australia
International market positions Market leading position for transfer agency EMEA Continue to grow wealth management capabilities through UK Wrap, Life, SIPPs and pensions market Continue growth into Eastern Europe and South Africa across wealth management Potential expansion into Middle East and Nord
Slide 17: International market positions Asia New Zealand
International market positions Significant growth opportunities in both transfer Asia agency and wealth management Major provider in Asian life insurance market with opportunity to further penetrate Target industry participants in Vietnam, Hong Kong/China, Taiwan, South Korea, Thailand and India New
Slide 18: Growth through new / existing client in 1H10
Growth through new / existing client in 1H10 Five year agreement with JP Morgan for use of Rufus transfer agency system Five year agreement signed with Australian National University for Bravura’s Garradin investment management system Signed strategic multi-year agreement with Lloyds Banking Group t
Slide 19: Summary
Summary Met forecasts for first half of the year On track to fall within full year guidance range Conversion of sales pipeline within wealth management critical Good growth opportunities for life insurance software in Asia, the United Kingdom and South Africa 19
Slide 20: Thank you
Thank you