Bravura Solutions Limited · ASX:BVS
Bravura Solutions — H1 2019 Earnings Presentation
21 slides from Bravura Solutions's earnings presentation, Feb 27, 2019
Slide 1: 1H19 Results Presentation
1H19 Results Presentation Bravura Solutions Limited 27 February 2019
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 Key Highlights 4 Segment Highlights 10 FY19 Outlook 13 Appendices 14 BRAVURA SOLUTIONS 1H19 RESULTS 3
Slide 4: Outstanding 1H19 results across all key metrics
OUTSTANDING 1H19 RESULTS ACROSS ALL KEY METRICS ▪ In 1H19, Bravura delivered revenue growth of 24%1, EBITDA growth of 28%1, and NPAT growth of 15%1 ▪ Recurring revenue up 31%1 in 1H19 and comprised 72% of total revenue (68% in 1H18) ▪ Wealth Management 1H19 EBITDA margin expanded ~300bps to 33%, ref
Slide 5: 1H19 Key Highlights
1H19 KEY HIGHLIGHTS Continued strong revenue growth with increasing operating leverage A$m 1H18 1H19 % chg ▪ Bravura’s long-term growth is driven by clients’ need to address speed to market for new products, the growing importance of a seamless digital experience, ongoing changes in financial servic
Slide 6: Outstanding 1H19 results across all key metrics
OUTSTANDING 1H19 RESULTS ACROSS ALL KEY METRICS ▪ Wealth Management revenue up 24% and EBITDA up 36% A$m 1H18 1H19 $ chg % chg following two new Sonata contracts, expanding project work and increasing demand from existing clients Wealth Management 72.8 90.4 17.6 24% Funds Administration 30.1 37.0 6.
Slide 7: Strong growth in recurring revenue
STRONG GROWTH IN RECURRING REVENUE Recurring revenue (A$m) 221.5 ▪ Recurring revenue is up 31% in 1H19 compared to the pcp and Implementation fees (A$m) 10.2 comprises 72% of total revenue Licence fees (A$m) 191.9 ▪ Recurring revenue has grown as new clients are added and existing 184.7 clients broa
Slide 8: Strong revenue and earnings growth
STRONG REVENUE AND EARNINGS GROWTH Revenue (A$m) EBITDA (A$m) 1H 2H 221.5 1H 2H 38.6 191.9 184.7 32.6 152.1 118.6 20.0 25.0 89.9 98.4 14.4 80.4 17.5 11.9 9.4 127.4 23.8 94.8 102.9 18.2 18.5 93.5 71.7 13.1 8.1 FY15 FY16 FY17 FY18 1H19 FY15 FY16 FY17 1 FY18 1H19 1. FY17 EBITDA is presented on a pro fo
Slide 9: Strong financial position
STRONG FINANCIAL POSITION ▪ Bravura is in a robust financial position, with net cash of A$14.0m A$m 30 Jun 2018 31 Dec 2018 ▪ At balance date, A$12.0m was drawn down on the working capital facility Cash 36.9 26.0 Trade receivables 28.9 39.9 ▪ Bravura has significant investment capacity to take advan
Slide 10: Wealth Management
WEALTH MANAGEMENT ▪ Revenue up 24% and EBITDA up 36% resulted from two new A$m 1H18 1H19 $ chg % chg Sonata contracts, successful client implementations and the Segment revenue 72.8 90.4 17.6 24% commencement of several additional projects for new and existing Segment EBITDA 21.6 29.4 7.8 36% client
Slide 11: Expansion in Wealth Management R&D leverage
EXPANSION IN WEALTH MANAGEMENT R&D LEVERAGE ▪ Continued investment over time has led to A$m FY14 FY15 FY16 FY17 FY18 1H19 significant scale and depth in product functionality, and has further cemented Client development revenue 5.0 11.2 13.9 13.5 28.9 22.5 Bravura’s market-leading position Client de
Slide 12: Funds Administration
FUNDS ADMINISTRATION ▪ Revenue up 23% following increased implementation and A$m 1H18 1H19 $ chg % chg development work arising from a renewed and enhanced contract Segment revenue 30.1 37.0 6.9 23% with a significant global client, as well as improved utilisation of Segment EBITDA 12.8 13.7 0.9 7%
Slide 13: FY19 Outlook
FY19 OUTLOOK Strong sales pipeline ▪ Strong pipeline driven by sales opportunities from new clients and significant project activity from existing clients ▪ Bravura is well placed to take advantage of strong demand in the UK, Australia, New Zealand, South Africa and Asia ▪ Strong demand underpinned
Slide 14: Appendices
Appendices
Slide 15: Statutory Income Statement
STATUTORY INCOME STATEMENT A$m 1H18 1H19 $ chg % chg Wealth Management 72.8 90.4 17.6 24% Funds Administration 30.1 37.0 6.9 23% Revenue from continuing operations 102.9 127.4 24.5 24% Total operating expenses -84.4 -103.7 -19.3 23% EBITDA 18.5 23.8 5.3 28% Depreciation and amortisation -3.9 -2.9 1.
Slide 16: Statutory Statement of Financial Position
STATUTORY STATEMENT OF FINANCIAL POSITION A$m 30 Jun 2018 31 Dec 2018 Cash 36.9 26.0 Trade receivables 28.9 39.9 Other current assets 15.3 15.8 Total current assets 81.2 81.7 Intangible assets 112.7 113.3 Other non-current assets 18.5 26.6 Total non-current assets 131.2 139.8 Total assets 212.3 221.
Slide 17: Statutory Cash Flow Statement
STATUTORY CASH FLOW STATEMENT A$m 1H18 1H19 A$m 1H18 1H19 Receipts from customers 117.7 127.4 Payments to suppliers and employees -102.4 -116.7 EBITDA 18.5 23.8 Interest received 0.0 0.0 Trade, other debtors, and accrued revenue -1.4 -12.3 Income taxes paid -0.8 -2.7 Deferred revenue -3.6 -4.3 Total
Slide 18: What Sonata does
WHAT SONATA DOES A digital enterprise software solution supporting sophisticated financial services products across front, middle and back office, including digital delivery across multiple devices to advisors and end consumers. Products Wrap Superannuation & Life Private wealth & Funds Investment p
Slide 19: Sonata addresses key client challenges
SONATA ADDRESSES KEY CLIENT CHALLENGES Challenges faced by participants… … can be solved by Sonata Evolving and complex 1 regulatory environment ✓ Regulatory risk management Demand for mobile and 2 “self-directed” technology Increasing ✓ Leading technology and innovation demand Sonata for modern add
Slide 20: Sonata simplifies legacy client systems
SONATA SIMPLIFIES LEGACY CLIENT SYSTEMS Siloed, disparate legacy IT systems Unified, customer-centric solution Advisors & Clients Advisors & 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 Product
Slide 21: For more information, visit:
For more information, visit: www.bravurasolutions.com/investors/ investors@bravurasolutions.com