Endava Plc · NYSE:DAVA
Endava — Q4 FY2019 Earnings Presentation
22 slides from Endava's earnings presentation, Sep 25, 2019
Slide 1: Investor Presentation Q4 FY2019
INVESTOR PRESENTATION Q4 FY2019
Slide 2: Disclaimer
DISCLAIMER This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation other than statements of historical facts, including, without limitations, statements regarding our future result
Slide 3: Large and fast growing market opportunity, strong growth and performance
LARGE AND FAST GROWING MARKET OPPORTUNITY DELIVER RAPID EVOLUTION BY STRONG GROWTH COMBINING NEXT-GEN AND FINANCIAL TECHNOLOGIES WITH FOUNDER-LED, EXPERIENCED PERFORMANCE DEEP INDUSTRY MANAGEMENT TEAM WITH EXPERTISE STRONG CULTURE IDEATION TO PRODUCTION CAPABILITIES, DISTRIBUTED AGILE AT SCALE, DOMA
Slide 4: We are a pure play next-gen technology company
ENGINEERING NEXT-GEN TECH ENTERPRISE AGILE WE ARE A PURE PLAY STRATEGY AUTOMATION NEXT-GEN TECHNOLOGY COMPANY USER EXPERIENCE TRADITIONAL CONSULTANTS IT SERVICES & AGENCIES 4
Slide 5: We serve a large addressable market
$622B 2022 % DIGITAL 17 TRANSFORMATION CAGR SERVICES* WE SERVE A LARGE ADDRESSABLE $390B * WORLDWIDE SEMIANNUAL DIGITAL 2019 TRANSFORMATION SPENDING GUIDE MARKET IDC OCTOBER 2018 5
Slide 6: Global staff and close to client nearshore delivery
GLOBAL STAFF 5,754 AS OF JUNE 30, 2019 CLOSE TO CLIENT NEARSHORE DELIVERY DENMARK, GERMANY, NETHERLANDS, EUROPEAN UNION: ROMANIA, BULGARIA; UNITED KINGDOM, UNITED STATES CENTRAL EUROPEAN COUNTRIES: MACEDONIA, MOLDOVA AND SERBIA; LATIN AMERICA: ARGENTINA, COLOMBIA, URUGUAY AND VENEZUELA Employee Geog
Slide 7: History of Endava
CONCISE COMPUDAVA ALPHEUS NICKELFISH VELOCITY PARTNERS UK MOLDOVA GERMANY USA USA & LATAM IT CONSULTANCY NEARSHORE CONSULTING DIGITAL, UX, & NA SALES & DELIVERY BUSINESS STRATEGY FIRM LATAM DELIVERY PS TECH ISDC BAIN SERBIA NETHERLANDS PARTNERSHIP AGILE DELIVERY & CE ANNOUNCED AGILE DELIVERY IPO FOU
Slide 8: We make our clients more agile, engaging, responsive and efficient
WE MAKE OUR CLIENTS MORE MORE & MORE ENGAGING RESPONSIVE EFFICIENT AGILE BUSINESS AUTOMATION DIGITAL CREATIVE INSIGHTS MOBILEDIGITAL DISTRIBUTEDSMART SOFTWARE TESTINGTEST CONTINUOUS APPLICATIONSADVANCED SERVICESMART STRATEGY THROUGH EXECUTION ARCHITECTURE AGILE DEV ENGINEERING AUTOMATIONSERVICES & C
Slide 9: Technology disruption waves and convergence
TODAY BANKING PAYMENTS HEALTHCARE RETAIL / CPG LOGISTICS TIME TECHNOLOGY DISRUPTION WAVES & CONVERGENCE 9
Slide 10: Domain expertise: payments
QUANTUM PROTOTYPING BIOMETRIC SCHEMELESS REAL OMNI-CHANNEL CRYPTOCURRENCY OPEN APIs CUSTOMER CENTRIC UX MICRO MERCHANTS SMART POS & NANO PAYMENTS SYSTEMS PSD2 FRICTIONLESS ROBOTIC IN APP P2P PAYMENTS AUTOMATION ROI OPPORTUNITY MESSAGE BLOCKCHAIN PAYMENTS APPS CHATBOTS PLATFORMS FINANCIAL INCLUSION 2
Slide 11: Scalability, brand, culture and M&A
SCALABILITY BRAND CULTURE M&A AS WE STRIVE TO BE THE TO SUPPORT THIS GROWTH, WE WE USE TUCK-IN ACQUISITIONS TO ASPIRATIONAL BRAND FOR IT NEED LEADERSHIP AND HAVE ACCELERATE OUR GROWTH PROFESSIONALS IN THE DEVELOPED THE ‘PASS IT ON’ STRATEGY - TO EITHER ESTABLISH REGIONS IN WHICH WE INITIATIVE WHICH
Slide 12: Financials
FINANCIALS 12
Slide 13: Financial highlights
FINANCIAL HIGHLIGHTS MASTER SERVICE AGREEMENTS WITH CLIENTS PRIMARILY T&M BASED PRICING LONG-TERM CLIENT RELATIONSHIPS STRONG REVENUE GROWTH HEALTHY MARGINS LOW CAPEX REQUIREMENTS POSITIVE ADJUSTED FREE CASH FLOW 13
Slide 14: Strong revenue growth
REVENUE (£m) 287.9 300m CAGR 36% 217.6 76.6 Q4 61.5 150m 73.1 Q3 58.6 71.8 Q2 50.0 84.1 115.4 159.4 217.6 287.9 47.5 66.4 Q1 0m FY15 FY16 FY17 FY17 FY19 _ 6m18 6m19 FY15 FY16 FY17 FY18 FY19 12M18 12M19 JUNE 30 JUNE 30 OVER LAST 5 YEARS, 88.8% OF REVENUE (ON AVERAGE) EACH FISCAL YEAR WAS GENERATED FR
Slide 15: Robust profitability
PROFIT BEFORE TAX (£m) ADJUSTED PROFIT BEFORE TAX (£m)* 35m 55m 51.9 30.1 CAGR 34% 24.6 13.5 Q4 33.5 10.5 Q4 6.7 17.5m 22.5m 9.7 13.2 Q3 5.5 7.6 Q3 8.5 6.0 13.5 Q2 7.5 9.4 Q2 15.2 20.8 21.7 24.6 30.1 6.4 2.6 Q1 16.1 22.8 25.2 33.5 51.9 7.8 11.7 Q1 0m 0m FY15 FY16 FY17 FY18 FY19 _ FY17 FY18 FY15 FY16
Slide 16: Deep client relationships
2-10 TOP CLIENT REVENUE % TOP CLIENT No. OF CLIENTS / REVENUE > £1m* 100% 70 66% 54% 49% 50% 35 42% 38% 39% 40% 50% 38% 36% 31% 28% 30% 30% 16% 16% 13% 11% 10% 9% 10% 18 26 34 46 63 46 63 0 0 FY15 FY16 FY17 FY17 FY17 - q218 q219 FY15 FY16 FY17 FY18 FY19 Q4FY18 Q4FY19 FY15FY15 FY16 FY17FY17 FY18 FY18
Slide 17: Increasing number and spend of clients
AVERAGE SPEND: AVERAGE SPEND: TOTAL No. OF CLIENTS TOP 10 CLIENTS (£000s) REMAINING CLIENTS (£000s) 300 11,00011000 700 8250 150 5,5005500 350 2750 112 154 188 258 275 258 275 5,510 6,200 7,820 9,040 10,870 2,400 3,070 284 434 504 597 699 216 231 0 00 0 FY15 FY16 FY17 FY17 FY17 _ FY17 FY18 FY15 FY16
Slide 18: Diverse revenue base: geography and industry verticals
N.AMERICA EUROPE REVENUE % BY REGION UK 100% 20% 10% 18% 16% 12% 21% 27% 26% 28% 18% 28% Q4 FY2019 34% 50% 34% 28% 31% 27% REVENUE % BY VERTICAL 52% 78% 64% 50% 45% 45% 43% 45% 0% FY15 FY16 FY17 FY17 FY17 _ FY17 FY18 PAYMENTS AND FINANCIAL SERVICES FY15 FY16 FY17 FY18 FY19 Q4FY18 Q4FY19 TECHNOLOGY,
Slide 19: Low capex and positive adjusted FCF
CAPITAL EXPENDITURES (£m) ADJUSTED FREE CASH FLOW (£m) (1) 29.8 28.7 8m 7.3 30.0030m 5.4 8.9 Q4 2.2 Q4 20.0020m 11.9 1.2 Q3 4m 1.7 0.9 7.2 10.0010m 11.4 Q3 2.0 Q2 1.2 7.4 9.2 Q2 2.1 2.7 6.5 5.4 7.3 1.6 1.9 Q1 9.5 10.1 11.2 28.7 29.8 2.2 0.3 0 0.000 Q1 FY15 FY16 FY17 FY18 FY18 _ FY17 FY180.3 FY15FY15
Slide 20: Appendix
APPENDIX 20
Slide 21: IFRS to non-IFRS reconciliation
IFRS TO NON-IFRS RECONCILIATION 21
Slide 22: Fendava
Fendava 22