Bravura Solutions Limited · ASX:BVS
Bravura Solutions — H1 2024 Earnings Presentation
28 slides from Bravura Solutions's earnings presentation, Feb 20, 2024
Slide 1: 1H24 Results Presentation
For personal use only 1H24 Results Presentation 20 February 2024
Slide 2: Presenters and Agenda
Presenters Agenda For personal use only 01 1H24 Summary Andrew Russell, Group CEO and MD 02 1H24 Results Details 03 Key Takeaways 04 Q&A Neil Montford, CFO 05 Appendix Bravura Solutions 1H24 Results Presentation 2
Slide 3: Headlines
Headlines For personal use only 01 We are making good progress with our “reset and energise” strategy and the business has returned to profitability in 1H24, ahead of plan on a cash EBITDA performance basis 02 As we right size the Bravura operating cost base, forecast annualised FY24 gross cost out
Slide 4: 1H24 Financial Results
1H24 Financial Results Improving and ahead of previous guidance for FY24 For personal use only Revenue Profitability Cash Position 1H24 Gross Revenue EBITDA Net Closing Cash $127.0m $7.9m $88.3m Up 7.4% vs 1H23 Up $11.5m vs 1H23 Now Cash EBITDA positive3 1H24 Recurring Revenue Adjusted NPAT 1H24 Net
Slide 5: Agenda
Agenda For personal use only 01 1H24 Summary 02 1H24 Results Details 03 Key Takeaways 04 Q&A 05 Appendix Results 1H24 (ASX: BVS) Bravura Solutions 1H24 Results Presentation 5
Slide 6: "Reset and Energise" focus in 1H24 delivering strong results
“Reset and Energise” focus in 1H24 delivering strong results RESET AND ENERGISE ACCELERATE FINANCIAL PERFORMANCE For personal use only FY24/FY25 Realigning around Market-leading Growing with Building a quality Strategic Pillars the core Technology existing clients business Re-align to key markets
Slide 7: Bravura returned to cash EBITDA profitability during 1H24
Bravura returned to cash EBITDA profitability during 1H24 For personal use only Cash EBITDA (A$m) Revenue and Costs (A$m) 10.4 Employee expense (inc capitalised) Third party costs Other expenses ex restructure Revenue 6.4 132 134 131 0.3 21 127 17 118 13 15 14 13 14 1H22 2H22 1H23 2H23 1H24 11 12 14
Slide 8: Organisational change program tracking to deliver $65m annualised gross savings
The ongoing organisational change program is tracking to deliver $65m total annualised gross savings For personal use only Revised FY23 Actual 1H24 Actual 2H24 Forecast Tracking against Annualised Gross $m $m $m plan savings $m Organisational Realignment 25 25 External Cost Reductions 5 5 Optimising
Slide 9: FY24 Guidance Update
FY24 Guidance Update For personal use only 2023 AGM Guidance for FY24 FY24 Updated Guidance Group Revenue Group Revenue Around the same as FY23 Around the same as FY23 EBITDA1 EBITDA1 $10m – $15m $18m – $22m Capex2 and Lease costs Capex2 and Lease costs $16m $16m Annualised Gross Cost Out Annualised
Slide 10: Agenda
Agenda For personal use only 01 1H24 Summary 02 1H24 Results Details 03 Key Takeaways 04 Q&A 05 Appendix Results 1H24 (ASX: BVS) Bravura Solutions 1H24 Results Presentation 10
Slide 11: 1H24 Results – Takeaways
1H24 Results – Takeaways For personal use only 01 We are successfully executing in line with our strategic pillars for FY24 and FY25 02 The business is transforming at a fast pace and we have realigned our business around regions, products and clients 03 The business is stable and well capitalised w
Slide 12: Agenda
Agenda For personal use only 01 1H24 Summary 02 1H24 Results Details 03 Key Takeaways 04 Q&A 05 Appendix Results 1H24 (ASX: BVS) Bravura Solutions 1H24 Results Presentation 12
Slide 13: Questions
For personal use only Questions Bravura Solutions 1H24 Results Presentation
Slide 14: Agenda
Agenda For personal use only 01 1H24 Summary 02 1H24 Results Details 03 Key Takeaways 04 Q&A 05 Appendix Results 1H24 (ASX: BVS) Bravura Solutions 1H24 Results Presentation 14
Slide 15: Appendix Index
Appendix Index For personal use only 01 Financial Detail – Operating Results, Reconciliation of EBITDA, Cash EBITDA and Operating EBITDA, Balance Sheet, Cash Flow 02 Cash position tracker 03 FY24 and FY25 Strategy on a page 04 Bravura operations global snapshot 05 Bravura software value proposition
Slide 16: 1H24 Operating Results
01 1H24 Operating Results A$m 1H24 1H23 $ chg % chg Key Callouts For personal use only Wealth Management 83.9 77.3 6.6 8.5% Funds Administration 43.1 41.0 2.1 5.1% 1. Total revenue increased 7.4% in 1H24 vs the pcp, driven by more Total Revenue 127.0 118.3 8.7 7.4% project work and upgrades, coupled
Slide 17: Reconciliation of EBITDA, Cash EBITDA and Operating EBITDA
01 Reconciliation of EBITDA, Cash EBITDA and Operating EBITDA A$m 1H24 1H23 $ chg % chg Descriptions For personal use only EBITDA Revenue 127.0 118.3 8.7 7.4% 1. EBITDA adds back depreciation on Right of Use assets and Less: Operating Expenses (122.8) (125.3) 2.5 2.0% interest on Lease Liabilities (
Slide 18: Balance Sheet
01 Balance Sheet A$m 31 Dec 2023 30 Jun 2023 Key Callouts For personal use only Cash 88.3 75.7 1 Trade receivables 40.0 56.6 2 1. Cash has increased due to strong collection activities and cash cost Contract assets 21.8 26.8 savings from reduced employment expenses. Intangible assets 35.9 36.4 3 2.
Slide 19: Cash Flow
01 Cash Flow A$m 1H24 1H23 1H24 Cashflow A$m For personal use only Receipts from customers 166.2 114.4 Cash at 30 Jun 2023 75.7 Payments to suppliers and employees (147.5) (110.6) Interest received Operating cash flow 18.8 1.1 0.0 Income taxes paid Investing cash flow (1.5) (1.0) (1.6) Total operati
Slide 20: Cash burn stabilised and turned to cash generating
02 Cash burn stabilised and turned to cash generating Cash Balance For personal use only A$M 100 90 80 70 Historical cash burn prior to Cash trend now positive in FY24 60 Capital Raise in March 2023 50 Capital management strategy under consideration 40 30 20 10 - Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 S
Slide 21: 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 22: 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 23: Bravura value proposition: simplify complexity, automate, reduce risk
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 24: Our technology provides leading Registry, Digital, Data and Automation products
05 Our technology provides leading Registry, Digital, Data and Automation products For personal use only Core Registry Leadership Market focused product capability Best of breed Digital Advice DaaS Market level Data Deep Automation integration Scalable cloud first SaaS model Technology f
Slide 25: Glossary
06 Glossary APAC Operating EBITDA Asia and Pacific Region Operating revenue minus operating costs (including lease costs) adding back For personal use only capitalised development costs Cash EBITDA Operating revenue minus operating costs less development costs, capex and lease Organisational Realign
Slide 26: 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 27: 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 28: For more information
For personal use only For more information, visit: www.bravurasolutions.com/investors investors@bravurasolutions.com Bravura Solutions 1H24 Results Presentation