Bravura Solutions Limited · ASX:BVS
Bravura Solutions — H1 2022 Earnings Presentation
23 slides from Bravura Solutions's earnings presentation, Feb 25, 2022
Slide 1: 1H22 Results Presentation
1H22 Results Presentation 25 February 2022
Slide 2: Agenda
Agenda 1 Who we are 2 Group results 3 Strategy 4 Outlook & Guidance BRAVURA SOLUTIONS 1H22 RESULTS 2
Slide 3: Our Purpose and Mission
OUR PURPOSE Making our clients successful OUR MISSION We develop innovative technology solutions that power the world’s financial institutions BRAVURA SOLUTIONS 1H22 RESULTS 3
Slide 4: Our Values
OUR VALUES We are people who strive to deliver excellence in everything we do We are people who respect and embrace our diversity We are people who achieve through collaboration BRAVURA SOLUTIONS 1H22 RESULTS 4
Slide 5: Why We Matter
WHY WE Greater than 80% recurring revenue1 Majority of revenue underpinned by 7-13 year long-term MATTER client contracts ~A$260m Strong net cash revenue over last position 12 months1 Developing mission critical core record keeping systems to power the worlds leading financial companies Presence in
Slide 6: What we do
What we do Bravura provides digital software solutions supporting sophisticated financial services products Core record keeping Process support Capabilities ▪ Investment products ▪ Automation ▪ Cloud deployment ▪ Wrap platforms ▪ New product creation ▪ On-premises and hybrid cloud ▪ Superannuation a
Slide 7: Value Chain Coverage
Value Chain Coverage BRAVURA End Investor Advisor Platform Transfer Agent Fund Manager Superfund Midwinter Sonata Rufus Garradin GFAS Delta GTAS Microservices BRAVURA SOLUTIONS 1H22 RESULTS 7
Slide 8: Social Responsibility
Social Responsibility Diversity and Inclusiveness People Sustainability ✓ The Global D&I Leadership Team champions ✓ Enhanced parental leave offering for primary ✓ Established an environmental working employee networks for Gender, LGBT+, and secondary carers group to support our application for ISO
Slide 9: Group Results
Group Results BRAVURA SOLUTIONS 1H22 RESULTS 9
Slide 10: 1H22 Result – Growth
1H22 Result – Growth Revenue EBITDA NPAT EPS $132.3m $25.3m $15.3m 6.2c ▪ Revenue growth of ▪ EBITDA grew 61% 1 to ▪ NPAT grew 69% 1 to ▪ EPS up 68% to 6.2c, 14%1 A$25.3m A$15.3m dividend declared of 3.7cps ▪ Recurring Revenue ▪ Group EBITDA margin comprised 81% of 1H22 19% (14% in 1H21) group reven
Slide 11: 1H22 Result – Growth
1H22 Result – Growth A$m 1H21 1H22 $ chg % chg ▪ Wealth Management revenue grew 10% and EBITDA grew 7%. EBITDA margin2 decreased to 24% (25% in 1H21). $4.1m of the Wealth Management 1 75.2 82.6 7.4 10% revenue growth was attributable to a full period of Delta. Funds Administration 40.5 49.7 9.2 23%
Slide 12: Long-term Revenue and EBITDA
Long-term Revenue and EBITDA 300.0 70.0 ▪ Revenue increased by 14% and EBITDA1 by 56% on pcp. 60.0 250.0 24.8 32.3 ▪ The improved revenue result was 33.5 achieved through a 20% increase 50.0 of the Contracted Recurring 200.0 20.1 139.1 130.3 Revenue highlighting the value of 14.4 127.3 40.0 long ter
Slide 13: Recurring Revenue – 81% in 1H22
Recurring Revenue – 81% in 1H22 Licence fees (A$m) Project fees (A$m) ▪ Recurring Revenue comprises revenue that is contracted for the contract Recurring Revenue, attached (A$m) term plus project work post initial implementation. Majority of the revenue Recurring Revenue, contracted (A$m) has contra
Slide 14: Research & Development Investment of $29.7m
Research & Development Investment of $29.7m ▪ Expensed and client-funded (A$m) ▪ 1H22 group R&D investment was A$29.7m, of which 38% was capitalised ▪ Expensed and BVS-funded (A$m) (A$11.3m). ▪ Capitalised . (A$m) ▪ Bravura’s current R&D program is focused on consumption-based services predominantly
Slide 15: Strong Balance Sheet
Strong Balance Sheet ▪ Bravura is in a robust financial position, with cash of A$50.6m at balance date. ▪ Operating cash flow1 (excluding taxes paid) was A$17.5m, reflecting operating Bravura continues to evaluate a pipeline of additional acquisitive, organic cashflow to EBITDA conversion of 69% (61
Slide 16: Cash Flow Statement
Cash Flow Statement A$m 1H21 1H22 A$m 1H21 1H22 Receipts from customers 113.8 130.9 Payments to suppliers and employees -104.4 -113.4 EBITDA1 15.8 25.3 Interest received 0.2 0.0 Trade, other debtors, and contract assets -4.5 -5.3 Income taxes paid -1.4 -3.4 Other current assets 0.0 0.0 Total operati
Slide 17: Strategy Update
Strategy Update BRAVURA SOLUTIONS 1H22 RESULTS 17
Slide 18: Bravura’s Strategy
Bravura’s Strategy Superannuation Fund Market dynamics Value Chain Disruption Margin Pressure Digitalisation Regulatory Change Consolidation Technology strategy Microservices Cloud Digital and Automation Commercial strategy Smoother client fees over the contract term Consumption-based pricing Cl
Slide 19: Vectors for Growth
Vectors for Growth ▪ New Geographies Expanding Expanding distribution geographies ▪ Currently supporting clients in UK, South Africa, Australia, network New Zealand, also running business in Luxembourg, Dublin, USA Resellers Asia ▪ Opportunity for further expansion into continental Europe and USA ▪
Slide 20: Outlook & Guidance
Outlook & Guidance BRAVURA SOLUTIONS 1H22 RESULTS 20
Slide 21: Outlook and Guidance
Outlook and Guidance Outlook FY22 guidance ✓ Industry structural demand for BPaaS, ✓ We expect revenue growth to continue in 2H22, resulting in full year revenue growth in microservices, cloud and consumption-based excess of 10% against FY21 services is strengthening ✓ In order to support further re
Slide 22: 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 23: For more information, visit
For more information, visit: www.bravurasolutions.com/investors/ investors@bravurasolutions.com BRAVURA SOLUTIONS 1H22 RESULTS 23