Bravura Solutions Limited · ASX:BVS
Bravura Solutions — Investor Presentation (May 2021)
24 slides from Bravura Solutions's investor presentation, May 5, 2021
Slide 1: Bravura Solutions Investor Presentation
For personal use only Bravura Solutions Investor Presentation 5 May 2021
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: Company Overview
For personal use only Company Overview
Slide 4: Our purpose and mission
For personal use only OUR PURPOSE. Making our customers successful. OUR MISSION. We develop innovative technology solutions that power the world’s financial institutions.
Slide 5: Who we are
For personal use only 86% recurring Strong net cash position revenue Significant operating ~A$255m revenue leverage over last 12 months1 Who A$210m+ invested across the product suite Blue chip clients we are 5-year revenue CAGR of Presence in 6 countries 13%2 with 1,400+ FTEs Bravura is a market-lea
Slide 6: Products and Services
For personal use only Products and Services
Slide 7: Products and Services
PRODUCTS AND SERVICES For personal use only 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 Processes Features
Slide 8: Bravura's Products
BRAVURA’S PRODUCTS For personal use only Sonata Microservices AdviceOS Financial planning software that Customer-centric solution that allows financial advisers to provide streamlines the administration of a Microservice products include comprehensive face to face financial range of financial produc
Slide 9: Bravura addresses key client challenges
BRAVURA ADDRESSES KEY CLIENT CHALLENGES Challenges faced by participants… … can be solved by Bravura technology For personal use only Evolving and complex 1 regulatory environment ✓ Regulatory risk management Demand for mobile and 2 “self-directed” technology Increasing ✓ Leading technology and inno
Slide 10: Sonata simplifies legacy client systems
SONATA SIMPLIFIES LEGACY CLIENT SYSTEMS Unified, customer-centric solution For personal use only Siloed, disparate legacy IT systems Advisers and clients Advisers and clients Move to a Call centre Call centre Call centre true customer- One common customer database and registry 1 2 3 centric solution
Slide 11: Strategy
For personal use only Strategy
Slide 12: Strategy
STRATEGY For personal use only Fund managers moving Reduced interest in Underserviced middle Need for lower Need to improve end- Market developments to provide a wealth large-scale customer experience tier of clients administration costs management capability implementations Technology strategy Co
Slide 13: Total Addressable Market
TOTAL ADDRESSABLE MARKET1 For personal use only UK total addressable market Australia total addressable market UK ▪ Total addressable market (TAM) in the UK is estimated at ~GBP1.2b ~A$1.0b ~GBP1.2b per annum of client IT spend. ▪ The TAM comprises funds administration, platforms, DFMs, corporate DC
Slide 14: Traditional to subscription-based transition
TRADITIONAL TO SUBSCRIPTION-BASED TRANSITION Bravura’s transition from traditional contracts to subscription-based contracts is underway, underpinned by R&D, For personal use only product componentisation, Sonata Alta development, digital products and recent acquisitions. Traditional client revenue
Slide 15: 1H21 Results
For personal use only 1H21 Results
Slide 16: 1H21 result in line with guidance
1H21 RESULT IN LINE WITH GUIDANCE ▪ Wealth Management revenue down 17% and EBITDA2 down 29%. For personal use only A$m 1H20 1H21 $ chg % chg EBITDA margin2 decreased to 25% (29% in 1H20). The lower result was attributable to a COVID-related decline in UK professional services Wealth Management 1 91.
Slide 17: 1H20 to 1H21 revenue bridge
1H20 to 1H21 REVENUE BRIDGE For personal use only 1H20 to 1H21 revenue waterfall bridge (A$m) ▪ Bravura saw group revenue decline 14% in 1H21 compared to 1H20. ▪ addition . to revenue ▪ reduction . to revenue ▪ The revenue decline was entirely attributable to lower revenues in the 5.5 UK. -21.3 -3.6
Slide 18: Long-term revenue and EBITDA
LONG-TERM REVENUE AND EBITDA For personal use only Revenue (A$m) EBITDA1 (A$m) 1H 2H 274.2 1H 2H 257.7 57.8 221.5 48.6 191.9 139.1 184.7 130.3 38.6 32.3 152.1 118.6 24.8 98.4 32.6 89.9 20.1 80.4 14.4 20.2 17.5 135.1 7.7 127.4 115.7 102.9 9.4 23.7 25.5 94.8 93.5 71.7 18.2 18.5 15.8 12.5 8.1 2 3 FY15
Slide 19: Recurring revenue by half-year
RECURRING REVENUE BY HALF-YEAR Licence fees (A$m) Project fees (A$m) Bravura’s commercial strategy is to grow our Recurring Revenue base For personal use only Recurring revenue, attached (A$m) Recurring revenue, contracted (A$m) ▪ Contracted Recurring Revenue was up 8% in 1H21 compared to the pcp. 5
Slide 20: Strong financial position
STRONG FINANCIAL POSITION ▪ Bravura is in a robust financial position, with cash of A$56.4m at balance date. For personal use only A$m 30 Jun 2020 31 Dec 2020 Bravura continues to evaluate a pipeline of additional acquisitive and organic growth opportunities. Cash 99.1 56.4 ▪ Bravura acquired Delta
Slide 21: Research and Development (R&D)
RESEARCH AND DEVELOPMENT (R&D) ▪ Expensed and client-funded (A$m) ▪ R&D relative to sales has historically ranged from 15 to 20%. ▪ Expensed and BVS-funded (A$m) For personal use only ▪ R&D capitalisation has historically ranged from 10 to 30%. ▪ Capitalised . (A$m) 7.9 ▪ Bravura’s current R&D progr
Slide 22: Looking forward - no change to FY21 guidance
LOOKING FORWARD - NO CHANGE TO FY21 GUIDANCE For personal use only Outlook ✓ Industry structural demand for SaaS, microservices, cloud and subscription-based services is strengthening ✓ COVID-19 has accelerated digital transformation ✓ Bravura is starting to see increasing market confidence as a res
Slide 23: 2H21 bridge to guidance
2H21 BRIDGE TO GUIDANCE For personal use only 1H21 to 2H21 revenue waterfall bridge (A$m) 1H21 to 2H21 NPAT waterfall bridge (A$m) ▪ addition . to revenue ▪ addition . to NPAT ▪ reduction . to revenue ▪ reduction . to NPAT ~3-5 ~1-2 5.5 ~1 ~4-6 ~5-8 5.7 ~8-10 ~23-26 1 ~128+ 115.7 9.0 1H21 revenue 1H
Slide 24: For more information
For personal use only For more information, visit: www.bravurasolutions.com/investors/ investors@bravurasolutions.com