Bravura Solutions Limited · ASX:BVS
Bravura Solutions — FY2018 Earnings Presentation
23 slides from Bravura Solutions's earnings presentation, Aug 28, 2018
Slide 1: FY18 Results Presentation
FY18 Results Presentation Bravura Solutions Limited 28 August 2018
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 14 Appendices 15 BRAVURA SOLUTIONS FY18 RESULTS 3
Slide 4: FY18 Key Highlights
FY18 KEY HIGHLIGHTS SONATA UNDERPINS FY18 PERFORMANCE, WITH OUTSTANDING RESULTS ACROSS KEY METRICS ▪ In FY18, Bravura delivered revenue growth of 15%1, EBITDA growth of 18%1, and underlying NPAT growth of 27%1 ▪ Achieved client wins in all key markets, comprising the UK, Australia, New Zealand and S
Slide 5: FY18 Key Highlights
FY18 KEY HIGHLIGHTS Continued strong revenue growth with increasing operating leverage A$m FY17 FY18 % chg ▪ Bravura's growth profile is underpinned by a continually evolving regulatory environment, end-consumer demand for an intuitive digital interface, and the need to deliver operational efficienc
Slide 6: Outstanding FY18 Results Across Key Metrics
OUTSTANDING FY18 RESULTS ACROSS KEY METRICS ▪ Wealth Management revenue up 26% and EBITDA up 52% A$m FY171 FY18 $ chg % chg following new client wins, continuing project work and increasing Wealth Management 122.7 155.1 32.4 26% demand from existing clients Funds Administration 69.2 66.4 -2.8 -4% To
Slide 7: Strong Growth in Recurring Revenue
STRONG GROWTH IN RECURRING REVENUE Recurring revenue (A$m) 221.5 ▪ Recurring revenue is up 14% in FY18 compared to the pcp and Implementation fees (A$m) 10.2 comprises 67% 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 94.8 102.9 18.2 18.5 93.5 71.7 13.1 8.1 FY15 FY16 FY17 FY18 FY15 FY16 FY17 1 FY18 1. FY17 EBITDA is presented on a pro forma basis BRAVURA SOL
Slide 9: Strong Funding Position
STRONG FUNDING POSITION ▪ The balance sheet is in a robust financial position, with net cash of A$24.8m A$m 30 Jun 2017 30 Jun 2018 ▪ At balance date, A$12.2m was drawn down on the working capital facility Cash 17.1 36.9 Trade and other receivables 39.5 42.4 ▪ Bravura has significant investment capa
Slide 10: Wealth Management
WEALTH MANAGEMENT A$m FY17 FY18 $ chg % chg ▪ Revenue up 26% and EBITDA up 52% following new client wins, continuing project work and increasing demand from existing Segment revenue 122.7 155.1 32.4 26% clients Segment EBITDA 30.3 46.2 15.9 52% ▪ Sonata revenue up 32% and now makes up 55% of total r
Slide 11: Key Sonata Metrics
KEY SONATA METRICS Consistent growth in Sonata customers Strong growth in Sonata revenue (A$m) 1H 2H 122.5 92.8 65.8 66.8 24 50.9 20 41.4 31.7 16 12 24.0 56.7 35.1 41.9 17.4 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Rising Sonata revenue per client (A$m) ▪ Clients across investment products and wrap p
Slide 12: Continuing Expansion in Sonata R&D Leverage
CONTINUING EXPANSION IN SONATA R&D LEVERAGE ▪ Net Sonata development was a significant A$m FY14 FY15 FY16 FY17 FY18 improvement on prior periods Sonata client development revenue 5.0 11.2 13.9 13.5 28.9 ▪ Capitalised R&D expenditure has declined to Sonata client development costs -5.4 -12.0 -11.1 -1
Slide 13: Funds Administration
FUNDS ADMINISTRATION ▪ Revenue down 4% following the previously flagged contract expiry A$m FY17 FY18 $ chg % chg in 1H18. 2H18 revenue increased 8% on 2H17 and increased 20% Segment revenue 69.2 66.4 -2.8 -4% on 1H18, with FY18 EBITDA margin at 40% Segment EBITDA 31.7 26.7 -5.0 -16% Segment EBITDA
Slide 14: FY19 Outlook
FY19 OUTLOOK Strong sales pipeline ▪ Bravura is well placed to take advantage of strong demand in the UK, Australia, New Zealand, and South Africa ▪ Strong demand underpinned by the need for digital capabilities, evolving regulation, and extracting operational efficiencies ▪ Both Wealth Management a
Slide 15: Appendices
Appendices
Slide 16: Statutory Income Statement
STATUTORY INCOME STATEMENT A$m FY17 FY18 $ chg % chg Wealth Management 122.7 155.1 32.4 26% Funds Administration 69.2 66.4 -2.8 -4% Revenue from continuing operations 191.9 221.5 29.6 15% Total operating expenses -156.5 -182.9 -26.4 17% IPO transaction costs -2.8 0.0 2.8 nm EBITDA 32.6 38.6 6.0 18%
Slide 17: FY17 Income Statement Reconciliation
FY17 INCOME STATEMENT RECONCILIATION pre-IPO post-IPO A$m reported pro forma pro forma Wealth Management 122.7 122.7 122.7 Funds Administration 69.2 69.2 69.2 Revenue from continuing operations 191.9 191.9 191.9 Wealth Management 30.3 30.3 30.3 Funds Administration 31.7 31.7 31.7 Corporate -29.4 -29
Slide 18: Statutory Balance Sheet
STATUTORY BALANCE SHEET A$m 30 Jun 2017 30 Jun 2018 Cash 17.1 36.9 Trade and other receivables 37.2 39.1 Other current assets 4.1 5.2 Total current assets 58.4 81.2 Intangible assets 110.0 112.7 Other non-current assets 13.7 18.4 Total non-current assets 123.6 131.1 Total assets 182.0 212.3 Borrowin
Slide 19: Statutory Cash Flow
STATUTORY CASH FLOW A$m FY17 FY18 A$m FY17 FY18 Receipts from customers 208.8 255.7 Payments to suppliers and employees -187.4 -206.8 EBITDA 32.6 38.6 Payments of IPO transaction costs -3.9 0.0 Trade, other debtors, and accrued revenue -17.9 -2.9 Income taxes paid -1.6 -2.7 Deferred revenue 1.3 11.7
Slide 20: What Sonata Does
WHAT SONATA DOES An enterprise digital 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 21: 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 22: 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 23: For more information, visit: www.bravurasolutions.com/investors/
For more information, visit: www.bravurasolutions.com/investors/ investors@bravurasolutions.com