Bravura Solutions Limited · ASX:BVS
Bravura Solutions — FY2023 Earnings Presentation
28 slides from Bravura Solutions's earnings presentation, Aug 25, 2023
Slide 1: FY23 Results Presentation
For personal use only FY23 Results Presentation 25th August 2023
Slide 2: Presenters and Agenda
Presenters Agenda For personal use only 01 FY23 Summary Andrew Russell, CEO 02 FY23 Results Details 03 Key Takeaways 04 Q&A Neil Montford, CFO 05 Appendix Bravura Solutions FY23 Results Presentation 2
Slide 3: Today's Presentation Headlines
Today’s Presentation Headlines 01 Bravura’s poor performance has driven the requirement and urgency for change. This has For personal use only resulted in a new CEO, Chair and refreshed board joining Bravura in H2 FY23 02 Bravura remains a strong business with great technology, customers and people.
Slide 4: FY23 Financial Results
FY23 Financial Results Achieved guidance across all metrics with a significant closing cash balance For personal use only Revenue Profitability Cash Position Gross Revenue Operating EBITDA Net Closing Cash (Debt free) $249.6m ($8.1m) $75.7m Guidance of $240m-$245m Guidance of ($10m) – ($5m) Contract
Slide 5: Organisational Change Program progress
Organisational Change Program progress Ahead of schedule announced in H1FY23, completed by 30th June 24 For personal use only Expected Annualised Savings Impairment $40m $233.4m in FY23 Cost to achieve is $27.8m $175.9m in December 2022 (FY23 H1) Completed by 30 June 2024 $57.5m in June 2023 as a re
Slide 6: FY23 Summary and Progress
FY23 Summary and Progress For personal use only Strategic Progress Customer Product Aware Super Go-Live Integrated our Implemented $25m in gross Lighthouse Sonata Alta Automation solutions into annual run rate savings solution, migrating 1.1m+ Rufus members Identified $15m in gross Merged two super
Slide 7: Agenda
Agenda For personal use only 01 FY23 Summary 02 FY23 Results Details 03 Key Takeaways 04 Q&A 05 Appendix Results FY23 (ASX: BVS) Bravura Solutions FY23 Results Presentation 7
Slide 8: Contracted recurring revenue has grown over the last three years
Contracted recurring revenue has grown over the last three years For personal use only Historical revenue reporting comparison (A$m) Revenue reporting by segment (A$m) Contracted Attached Project Licence WM FA 16.8 18.2 11.9 7.9 47.4 12.7 93.8 33.3 35.7 80.9 97.1 50.1 25.3 82.9 86.0 73.1 65.5 95.4 7
Slide 9: Bravura's cost base is too high and expenses are now being rationalised
Bravura’s cost base is too high and expenses are now being rationalised For personal use only ▪ Increased head count as a result of meeting customer obligations and anticipated wins in pipeline that did not materialize ▪ Increase in overhead costs EBITDA (A$m) EBITDA Bridge (A$m) ▪ Costs associated
Slide 10: Employee expenses have peaked and run rate operating expenses are trending down
Employee expenses have peaked and run rate operating expenses are now trending to drive Bravura back to profitability For personal use only FY23 Total employment expenses (A$m)1 Q4 Employee expenses (A$m)1 Incorporates employee salary increases 16.4 16.0 48.3 48.0 47.3 14.9 44.9 2.1 2.0 6.2 6.0 6.5
Slide 11: Organisational change program is underway with $40m of cost out identified
Organisational change program is underway and we have identified $40m of annualised gross cost out opportunities, with $25m realised For personal use only Organisational Optimising Operating External Cost Reductions Right-sizing Re-alignment Model BENEFIT Expected $25m $4m annualized savings $5m $6m
Slide 12: Cash burn is reducing, with a stable cash balance going into FY24
Cash burn is reducing, with a stable cash balance going into FY24 For personal use only Available cash headroom Jan 2022 to Aug 2023 (A$m) 100 Cash burn is stabilising 80 Historic cash burn in the business prior to capital raise 60 FY24 Organisational Change Program costs to still be incurred 40 20
Slide 13: Agenda
Agenda For personal use only 01 FY23 Summary 02 FY23 Results Details 03 Key Takeaways 04 Q&A 05 Appendix Results FY23 (ASX: BVS) Bravura Solutions FY23Results Presentation 13
Slide 14: FY23 Results – Takeaways
FY23 Results – Takeaways For personal use only 01 Bravura remains a strong business with great technology, customers and people. Our focus will be to rebuild trust and value to shareholders 02 Our plan is to achieve a positive Cash EBITDA run rate by the end of FY241. Our forecast cash burn in FY24
Slide 15: What to expect from here
What to expect from here For personal use only Finalising our 3 year Strategy Investor Day End of October Fast tracking and resetting the Organisational Change Program for the business AGM Update full year guidance Early November Bravura Solutions FY23 Results Presentation 15
Slide 16: Agenda
Agenda For personal use only 01 FY23 Summary 02 FY23 Results Details 03 Key Takeaways 04 Q&A 05 Appendix Results FY23 (ASX: BVS) Bravura Solutions FY23 Results Presentation 16
Slide 17: Questions
For personal use only Questions Bravura Solutions FY23 Results Presentation
Slide 18: Agenda
Agenda For personal use only 01 FY23 Summary 02 FY23 Results Details 03 Key Takeaways 04 Q&A 05 Appendix Results FY23 (ASX: BVS) Bravura Solutions FY23 Results Presentation 18
Slide 19: The Bravura value proposition is to simplify complexity, automate and reduce risk
The Bravura value proposition is to simplify complexity, automate for efficiency and reduce operational risk For personal use only Two Key Lines of Business Underpinning Financial Services Products Solving Customer Pain Points ▪ Wrap platforms Simplify complexity of manual Wealth back-office process
Slide 20: Our technology provides leading Registry, Digital, Data and Automation products
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 focu
Slide 21: Servicing blue chip customers in EMEA and APAC regions
Servicing blue chip customers in EMEA and APAC regions Europe (including UK) For personal use only Funds Admin o 8 customers @ Global Assets Under £ 3.3TN FUA Wealth Management $USD 176 Trillion1 40.6 o 7 customers @ 51.9 £ 135BN FUA 10.3 Pension and Super Funds 1.9 Australia Wealth Insurance Fu
Slide 22: FY23 Operating Results
FY23 Operating Results A$m FY22 FY23 $ chg % chg Earnings impacted by revenue headwinds, cost increases For personal use only Wealth Management 169.5 163.6 (5.9) (3.5%) Funds Administration 97.1 86.0 (11.1) (11.4%) ▪ Total revenue declined 6.4% in FY23 vs the pcp, driven by: Total Revenue 266.6 249.
Slide 23: Cash Flow detail
Cash Flow detail A$m FY22 FY23 A$m For personal use only Receipts from customers 273.0 242.0 Cash at 30 Jun 2022 48.7 Payments to suppliers and employees (225.8) (245.2) Dividend paid (8.0) Interest received 0.0 0.5 Net Proceeds from issue of shares 75.3 Income taxes paid (5.1) (2.8) Restructure cos
Slide 24: Balance Sheet
Balance Sheet A$m 30 Jun 2022 30 Jun 2023 Key Callouts For personal use only Cash 48.7 75.7 1 Trade receivables 39.8 56.6 2 1. Cash across H2 includes the net Capital Raise proceeds of $75m, offset by $9.5m of external debt repayment and H2 Contract assets 30.6 26.8 cash burn of $22.7m. Intangible a
Slide 25: Glossary
Glossary Attached Recurring Revenue FUA For personal use only comprises system upgrades, enhancements and in-production Funds Under Administration professional services from ongoing client demand (attached services) FX CAGR Foreign Exchange Compound Annual Growth Rate Licence fees Cash EBITDA Earned
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). For personal use only The Presentation is subject to the conditions outline
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, visit
For personal use only For more information, visit: www.bravurasolutions.com/investors investors@bravurasolutions.com