Bravura Solutions Limited · ASX:BVS
Bravura Solutions — FY2009 Earnings Presentation
27 slides from Bravura Solutions's earnings presentation, Aug 27, 2009
Slide 1: 2009 Financial Results
2009 Financial Results Full year ended 30 June Iain Dunstan, Group CEO & Managing Director Rebecca Norton, Chief Financial Officer 27 August 2009
Slide 2: Disclaimer
Disclaimer This document is a presentation of general background information about Bravura’s activities at the date of the presentation, 27 August 2009. It is information in summary form and does not purport to be comprehensive. It is to be read in conjunction with the Bravura Full Year Results file
Slide 3: Content
Content Results summary 4 Financial performance 12 Strategy and outlook 23 3
Slide 4: Results summary
Results summary Iain Dunstan, Group CEO & Managing Director 4
Slide 5: Creditable 2009 financial performance
Creditable 2009 financial performance FY08 FY09 FY09 Chg. (%) Chg. (%) Actual Actual Constant Actual Constant Currency1 Currency Revenue² 135.8 133.5 137.4 (2) 1 EBITDA 18.6 16.1 17.2 (13) (8) Net profit after tax 1.6 1.6 3.6 - 125 Operating cash inflow 5.2 12.8 146 Impacted by: Difficult sales envi
Slide 6: Key achievements
Key achievements Clients globally manage funds of A$1.5 trillion using Bravura Major contract wins, contract extensions and upgrades Sales pipeline remains strong Agreements delayed not foregone Integration of Citigroup’s Warsaw transfer agency platform Operating cash flow increased by $7.6m to $12.
Slide 7: New client wins
New client wins Northern Health Myer Family JP Morgan Bao Viet Trust Super Office 3 year 5 year 5 year 6 year 5 year contract contract contract contract contract agreement agreement agreement agreement agreement Investment Transfer Life eBusiness Portfolio and agency insurance software administra- s
Slide 8: New contracts/extensions with existing clients
New contracts/extensions with existing clients Equity Trustees limited signed a five year deal to upgrade to our portfolio administration solution Legal and General extended their contract to use our transfer agency solution Scottish Friendly expanded its agreement to enable it to service Aviva’s Li
Slide 9: Geographic diversity is a strength
Geographic diversity is a strength EMEA likely to further increase its importance in the medium term Revenue by region (A$m) EMEA Mature markets provide opportunities 82.8 85.1 Legacy systems require replacing Growth opportunities in Rufus and 46.3 39.9 8.5 Talisman 6.7 AUS/NZ Asia EMEA FY08 FY09 Au
Slide 10: Product diversity is a strength
Product diversity is a strength Opportunities to cross- cross-sell product range to existing customers Revenue by product FY09 (A$m) Rufus Strong installed base Rufus $64.6m/ 48% Efficiency measures to improve Talisman $32.1m/ 24% margins Focusing on new sales opportunities Implementing JP Morgan WS
Slide 11: Strong shareholder support for Rights Issue
¹Strong shareholder support for Rights Issue 103.4 million acceptances for new shares Underwriter to subscribe for 119.5 million shares Ironbridge Capital’s interest remains below 50% Ironbridge Capital's Holding in Bravura Solutions Shares (m) % Post-Recapitalisation² 120.6 33 Post-Option Exercise³
Slide 12: Financial performance
Financial performance Rebecca Norton, Chief Financial Officer 12
Slide 13: Stable revenue and EBITDA performance
Stable revenue and EBITDA performance FY09 EBITDA performance impacted by one- one-off expenses Revenues (A$m) Revenue 137.4 FY09 revenue in line with FY08 at 3.9 $133.5m FY09 revenue growth of $1.6m in 135.8 133.5 Constant Currency 100.1 FY07 FY08 FY09 FY09 Constant Currency EBITDA FX EBITDA (A$m)
Slide 14: Income statement
Income statement FY09 EBITDA impacted by non- non-recurring items of $9.3m Income Statement Underlying FY09 EBITDA of Constant Constant $25.4m an increase of $2.3m Actual Actual Currency Currency Actual A$m FY08 FY09 FY09 Chg. (%) Chg. (%) Restructuring costs incurred in Revenue 135.8 133.5 137.4 1%
Slide 15: Foreign exchange impact
Foreign exchange impact Stable operating results impacted by FX translation of foreign subsidiaries FY09 FX translation impact (A$m)¹ Approximately 70% of Bravura’s revenue and earnings generated by overseas 0.8 subsidiaries resulting in potential foreign 1.8 exchange translation movements 1.3 FY09s
Slide 16: Operating cost and headcount
Operating cost and headcount FY09 operating costs in line with FY08 FY09 operating costs in line with FY08 Operating costs as a % of revenue 117.2 117.4 FY09 impacted by significant non recurring items 17% 108.2 relating to acquisition integration and restructuring 24% 86.8 21% Labour related costs
Slide 17: Income tax
Income tax Revisiting of R&D claims and deductions in overseas tax filings has resulted in a significant tax credit Tax reconciliation Tax credit of $1.0m recognised in (A$m) FY09 FY09 Profit before tax 0.7 Tax charge at 30% 0.2 Additional R&D tax claims made to Difference in overseas tax rates (0.3
Slide 18: Balance sheet
Balance sheet Small increase in shareholders’ equity Balance sheet A$m Jun-09 Jun-08 Non-current assets ASSETS Current assets Cash and cash equivalents 4.0 2.7 No goodwill impairment Trade and other receivables Derivative financial instruments 40.5 - 40.0 0.6 Intangible assets increased Other curren
Slide 19: Debt position (post-Rights Issue)
Debt position (post-Rights Issue) Net proceeds of $27.7m from recapitalisation will be used to repay debt and outstanding FEC (27.7) (0.1) 48.7 6.7 27.8 Net debt 30 June 2009 Rights Issue proceeds Repayment of FEC Net cash flow to Proforma net debt at allotment date allotment FEC = Foreign exchange
Slide 20: Leverage position (post-Rights Issue)
Leverage position (post-Rights Issue) Continued compliance with all banking covenants Rights Issue will reduce gearing and interest expense Key covenants pro-forma basis Pro-forma post Covenant recapitalisation Gross debt A$32.6m Net Assets >65m $110m Leverage ratio 1 <3.0x 1.54x Interest cover rati
Slide 21: Funding profile
Funding profile1 Debt profile as at 30 June 2009 Drawn down Facility limit value ($m) ($m) Due Working capital facility 24.4 21.8 Aug 09 Amortising term facility 35.0 31.6 Dec 11 Total debt facilities 59.4 53.4 Hedge contract 1 6.7 Aug 09 Total funding liabilities 60.1 Proposed lending facilities po
Slide 22: Cash flow statement
Cash flow statement Solid improvement in FY09 cash flow Cash flow statement Operating cash flow improved by (A$m) FY09 FY08 $7.6m to $12.8m Profit for the year 1.6 1.6 Driven by strong turnaround in net Non cash items 1.6 10.5 Movement in NWC 9.6 (6.8) working capital Total operating cash flow 12.8
Slide 23: Strategy and outlook
Strategy and outlook Iain Dunstan, Group CEO & Managing Director 23
Slide 24: Expanding our footprint in three key regions
Expanding our footprint in three key regions Bravura supports more than 180 financial institutions globally with offices across APAC and EMEA UK-EMEA 570 employees are located in 14 offices across 9 Norway countries Edinburgh Manchester London Most recent acquisition of Warsaw Luxembourg the GTAS di
Slide 25: Strong market position internationally
Strong market position internationally Australia and New Zealand • Continue to grow and support existing customer base • Expand life and pensions/superannuation market share • Invest R&D by completing development of corporate superannuation functionality in the Sonata Suite • Win new opportunities w
Slide 26: Client-oriented strategy
Client-oriented strategy Focus on delivering to our clients: Superior products through continued R&D spend Improved speed to market Greater efficiency Reduced costs Better service for their customers Benefits for Bravura: Increased barriers to entry Long-term client relationships Top line growth and
Slide 27: Outlook
Outlook Stronger balance sheet to support continued growth Strong pipeline of sales opportunities Improving sentiment reflected in customer discussions Uncertainty surrounding timing of customer contracts remains Focusing on improving EBITDA margins Delivering benefits on acquisition integration Ini