Bravura Solutions Limited · ASX:BVS
Bravura Solutions — FY2020 Earnings Presentation
24 slides from Bravura Solutions's earnings presentation, Aug 26, 2020
Slide 1: FY20 Results Presentation
FY20 Results Presentation 26 August 2020
Slide 2: 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 3: Agenda
Agenda 1 Key Highlights 2 Segment Highlights 3 FY21 Outlook 4 Appendices
Slide 4: Bravura continues strong growth
BRAVURA CONTINUES STRONG GROWTH ▪ Bravura delivered revenue growth of 6.4%1, EBITDA growth of 19.0%1,2,3 and NPAT growth of 22.3%1,4. Acquisitions delivered NPAT of A$3.0m ▪ Group EBITDA margin expanded to 21.1%2,3 (18.8%2,3 in FY19) reflecting continued operating leverage expansion ▪ Recurring reve
Slide 5: Impact of COVID-19
IMPACT OF COVID-19 ▪ A significant proportion of Bravura’s products and services are delivered remotely, so Bravura was well equipped to handle the change to remote working entirely. ▪ Effective contingency planning led to continued support for existing clients without disruption. ▪ Bravura’s smooth
Slide 6: FY20 key highlights
FY20 KEY HIGHLIGHTS Market needs continue to evolve A$m FY19 FY20 % chg ▪ Bravura’s long-term growth is driven by clients’ need to address speed to market for new products, the growing importance of a seamless digital experience, ongoing changes in financial services regulation, and pressure to incr
Slide 7: Bravura continues strong growth
BRAVURA CONTINUES STRONG GROWTH ▪ Wealth Management revenue up 2.0% and EBITDA down 1.8%. EBITDA A$m FY19 FY20 $ chg % chg margin decreased to 29.3% in FY20 (30.5% in FY19). The lower EBITDA and margin result reflected lower licence fees of A$7.9m in FY20, Wealth Management1 176.8 180.4 3.6 2% compa
Slide 8: Strong long-term revenue and earnings growth
STRONG LONG-TERM REVENUE AND EARNINGS GROWTH Revenue (A$m) EBITDA (A$m) 1H 2H 274.2 1H 2H 257.7 57.8 221.5 48.6 191.9 139.1 184.7 130.3 38.6 32.3 152.1 118.6 32.6 25.3 89.9 98.4 25.0 20.0 80.4 14.4 17.5 11.9 127.4 135.1 102.9 9.4 23.8 25.5 94.8 93.5 71.7 18.2 18.5 13.1 8.1 1 2 FY15 FY16 FY17 FY18 FY
Slide 9: Strong growth in recurring revenue
STRONG GROWTH IN RECURRING REVENUE Recurring revenue (A$m) ▪ Recurring revenue is up 7% in FY20 compared to the pcp and Project fees (A$m) comprises 77% of total revenue Licence fees (A$m) 274.2 ▪ Recurring revenue has grown as new clients are added and existing 257.7 clients broaden their use of fu
Slide 10: Strong financial position
STRONG FINANCIAL POSITION ▪ Bravura is in a robust financial position, with cash of A$99.1m at balance date. A$m FY19 FY20 Bravura continues to evaluate a pipeline of additional acquisitive and organic growth opportunities. Cash 194.8 99.1 Trade receivables 23.7 43.8 ▪ Bravura acquired Midwinter, a
Slide 11: Wealth Management
WEALTH MANAGEMENT ▪ Revenue up 2.0% and EBITDA down 1.8%. EBITDA margin decreased to A$m FY19 FY20 $ chg % chg 29.3% in FY20 (30.5% in FY19) Segment revenue 176.8 180.4 3.6 2% ▪ The lower EBITDA and margin result reflected lower licence fees of Segment EBITDA 53.9 52.9 -1.0 -2% A$7.9m in FY20, compa
Slide 12: Funds Administration
FUNDS ADMINISTRATION ▪ Revenue up 16.0% and EBITDA up 32.8%. EBITDA margin increased to A$m FY19 FY20 $ chg % chg 45.8% in FY20 (40.0% in FY19) Segment revenue 80.9 93.8 12.9 16% ▪ Excluding licence fees, the segment saw EBITDA growth of 9.3% and Segment EBITDA 32.3 43.0 10.6 33% margin expansion of
Slide 13: Key market themes
KEY MARKET THEMES Bravura provides best-in-class, innovative solutions that provide mission critical infrastructure to the world’s leading financial solutions. Key market themes: ✓ Digital solutions. Accelerated by the global pandemic, demand has grown for enhanced digital solutions across our produ
Slide 14: FY21 outlook
FY21 OUTLOOK Strong sales pipeline with a growing number of transformational opportunities ▪ While the increased market uncertainty arising from COVID-19 provides opportunities for Bravura across digital, automation and microservices ecosystems, timing of deal closure is more difficult to predict ▪
Slide 15: Appendices
gy bravur v solutions Appendices
Slide 16: Statutory income statement
STATUTORY INCOME STATEMENT A$m FY19 FY20 $ chg % chg Revenue from contracts with customers 257.7 272.4 14.7 6% Other income 0.5 2.8 2.3 463% Depreciation and amortisation1 -9.0 -19.4 -10.5 117% Foreign exchange gain/(loss) -0.9 -1.4 -0.5 58% Finance costs2 -0.2 -2.8 -2.6 nm Total other operating exp
Slide 17: Statutory statement of financial position
STATUTORY STATEMENT OF FINANCIAL POSITION A$m FY19 FY20 Cash 194.8 99.1 Trade receivables 23.7 43.8 Other current assets 18.1 21.9 Total current assets 236.6 164.8 Intangible assets 113.5 196.2 Other non-current assets 30.0 73.8 Total non-current assets 143.5 270.1 Total assets 380.2 436.8 Borrowing
Slide 18: Statutory cash flow statement
STATUTORY CASH FLOW STATEMENT A$m FY19 FY20 A$m FY19 FY20 Receipts from customers 285.5 270.6 Payments to suppliers and employees -232.6 -239.4 NPAT 32.8 40.1 Interest received 0.5 1.2 Depreciation and amortisation 9.0 19.4 Income taxes paid -6.9 -13.0 Financing costs 0.2 2.8 Total operating cash fl
Slide 19: Bravura's ecosystem
BRAVURA’S ECOSYSTEM Bravura provides digital enterprise software solutions supporting sophisticated financial services products across front, middle and back office, including digital delivery across multiple devices to advisers and end consumers. Products Wrap Superannuation Life Private wealth and
Slide 20: Bravura addresses key client challenges
BRAVURA ADDRESSES KEY CLIENT CHALLENGES Challenges faced by participants… … can be solved by Bravura technology Evolving and complex 1 regulatory environment ✓ Regulatory risk management Demand for mobile and 2 “self-directed” technology Increasing ✓ Leading technology and innovation demand Bravura
Slide 21: Sonata simplifies legacy client systems
SONATA SIMPLIFIES LEGACY CLIENT SYSTEMS Siloed, disparate legacy IT systems Unified, customer-centric solution Advisers and Clients Advisers and Clients Move to a Digital multi-channel delivery Call centre 1 Call centre 2 Call centre 3 true customer Single, configurable code base centric Product Pro
Slide 22: Midwinter – financial planning software
MIDWINTER – FINANCIAL PLANNING SOFTWARE Revenue components ▪ Bravura acquired Midwinter for A$50m in August 2019. InvestmentLink ▪ Midwinter tools allow financial advisers to provide comprehensive face to face financial advice. Superannuation funds also use Midwinter tools to provide self-directed d
Slide 23: FinoComp – registry agnostic microservices
FINOCOMP – REGISTRY AGNOSTIC MICROSERVICES Revenue components ▪ Bravura acquired FinoComp for A$25m in October 2019. ▪ FinoComp builds unique, registry agnostic and highly flexible software called microservices. Recurring Features ▪ The demand for microservices continues to grow, driven by: ▪ An inc
Slide 24: For more information, visit: www.bravurasolutions.com/investors/
For more information, visit: www.bravurasolutions.com/investors/ investors@bravurasolutions.com