Bravura Solutions Limited · ASX:BVS
Bravura Solutions — FY2019 Earnings Presentation
22 slides from Bravura Solutions's earnings presentation, Aug 23, 2019
Slide 1: FY19 Results Presentation
FY19 Results Presentation 23 August 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 1 Key Highlights 2 Segment Highlights 3 FY20 Outlook 4 Appendices
Slide 4: Outstanding FY19 results across all key metrics
OUTSTANDING FY19 RESULTS ACROSS ALL KEY METRICS ▪ In FY19, Bravura delivered revenue growth of 16%1, EBITDA growth of 27%1, and NPAT growth of 21%1 ▪ Recurring revenue up 31%1 in FY19 and comprised 76% of total revenue (67% in FY18) ▪ The FY19 result was driven by robust growth across the Bravura pr
Slide 5: FY19 Key Highlights
FY19 KEY HIGHLIGHTS Continued strong revenue growth with increasing operating leverage A$m FY18 FY19 % chg ▪ Bravura’s long-term growth is driven by clients’ need to address speed to market for new products, the growing importance of a seamless digital experience, ongoing changes in financial servic
Slide 6: Outstanding FY19 results across all key metrics
OUTSTANDING FY19 RESULTS ACROSS ALL KEY METRICS ▪ Wealth Management revenue up 14% and EBITDA up 17% following A$m FY18 FY19 $ chg % chg new contracts, increasing project work, a number of go lives during the period and increasing demand from new and existing clients Wealth Management 155.1 176.8 21
Slide 7: Strong growth in recurring revenue
STRONG GROWTH IN RECURRING REVENUE Recurring revenue (A$m) ▪ Recurring revenue is up 31% in FY19 compared to the pcp and Project fees (A$m) comprises 76% of total revenue Licence fees (A$m) 257.7 ▪ Recurring revenue has grown as new clients are added and existing 11.9 clients broaden their use of fu
Slide 8: Strong revenue and earnings growth
STRONG REVENUE AND EARNINGS GROWTH Revenue (A$m) EBITDA (A$m) 1H 2H 1H 2H 257.7 49.1 221.5 191.9 38.6 184.7 130.3 32.6 25.3 152.1 118.6 89.9 98.4 25.0 20.0 14.4 80.4 17.5 11.9 127.4 9.4 102.9 23.8 94.8 93.5 18.2 18.5 71.7 13.1 8.1 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 1 FY18 FY19 1. FY17 EBITDA is
Slide 9: Strong financial position
STRONG FINANCIAL POSITION ▪ Bravura is in a robust financial position, with net cash of A$194.8m A$m FY18 FY19 ▪ Equity raising successfully completed on 8 May 2019 to enhance balance sheet Cash 36.9 194.8 flexibility and provide additional capacity to take advantage of organic and Trade receivables
Slide 10: Wealth Management
WEALTH MANAGEMENT ▪ Revenue up 14% and EBITDA up 17% resulted from new contracts, A$m FY18 FY19 $ chg % chg successful client implementations and the commencement of Segment revenue 155.1 176.8 21.7 14% additional projects for new and existing clients Segment EBITDA 46.2 53.9 7.7 17% ▪ Sonata contin
Slide 11: Funds Administration
FUNDS ADMINISTRATION ▪ Revenue up 22% following increased implementation and project A$m FY18 FY19 $ chg % chg work arising from a renewed and enhanced contract with a Segment revenue 66.4 80.9 14.5 22% significant global client, as well as improved utilisation from the Segment EBITDA 26.7 32.3 5.6
Slide 12: Bravura acquires Midwinter
BRAVURA ACQUIRES MIDWINTER ▪ Bravura has entered into an agreement to acquire Midwinter Financial Services (Midwinter) for A$50m. The acquisition will be funded by cash and is expected to be EPS accretive in the first year of ownership. ▪ Midwinter’s award-winning financial planning software, Advice
Slide 13: Midwinter offers attractive growth potential
MIDWINTER OFFERS ATTRACTIVE GROWTH POTENTIAL Attractive growth ✓ Regulatory change is driving further technology adoption following the Royal Commission 1 market ✓ There is significant potential to support financial advice delivery with differentiated technology ✓ Award-winning cloud-based SaaS tech
Slide 14: FY20 Outlook
FY20 OUTLOOK Strong sales pipeline ▪ Strong pipeline driven by significant project activity from existing clients and sales opportunities from new clients, supported by expansion into new markets and acquisitive growth opportunities ▪ General UK market and political uncertainty may impact timing of
Slide 15: Appendices
gy bravur v solutions Appendices
Slide 16: Statutory income statement
STATUTORY INCOME STATEMENT A$m FY18 FY19 $ chg % chg Wealth Management 155.1 176.8 21.7 14% Funds Administration 66.4 80.9 14.5 22% Interest income 0.0 0.5 0.5 nm Revenue from continuing operations 221.5 258.2 36.7 17% Total operating expenses -181.3 -206.6 -25.4 14% Depreciation and amortisation -8
Slide 17: Statutory statement of financial position
STATUTORY STATEMENT OF FINANCIAL POSITION A$m FY18 FY19 Cash 36.9 194.8 Trade receivables 28.9 23.7 Other current assets 15.3 18.1 Total current assets 81.2 236.6 Intangible assets 112.7 113.5 Other non-current assets 18.5 30.0 Total non-current assets 131.2 143.5 Total assets 212.3 380.2 Borrowings
Slide 18: Statutory cash flow statement
STATUTORY CASH FLOW STATEMENT A$m FY18 FY19 A$m FY18 FY19 Receipts from customers 255.7 285.5 Payments to suppliers and employees -206.8 -232.6 EBITDA 38.6 49.1 Interest received 0.0 0.5 Trade, other debtors, and contract assets -2.9 2.3 Income taxes paid -2.7 -6.9 Other current assets -1.1 -0.8 Tot
Slide 19: What Bravura does
WHAT BRAVURA DOES Bravura provides digital enterprise software solutions 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 and Life Private wealth a
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 Advisors and Clients Advisors 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: For more information, visit: www.bravurasolutions.com/investors/
For more information, visit: www.bravurasolutions.com/investors/ investors@bravurasolutions.com