for personal use only · improved financial position ebitda growth from $19.0m to $23.2m – a 22%...
TRANSCRIPT
Financial results for year
ended 30 June 2012
INVESTOR PRESENTATION
Tony Klim, Chief Executive Officer
Rebecca Norton, Chief Financial Officer
August 2012
For
per
sona
l use
onl
y
Corporate overview
Group highlights
FY2012 financial results
Market commentary
Corporate strategy
Operating divisions
Summary
PAGE | 2
AGENDA F
or p
erso
nal u
se o
nly
GROUP HIGHLIGHTS Bravura Solutions Ltd
PAGE | 3
CORPORATE OVERVIEW
For
per
sona
l use
onl
y
Bravura Solutions is a leading global supplier of wealth
management and transfer agency applications, delivered
on premise or on demand.
> Operations across
Australia
New Zealand
Asia
India
UK
Europe
Luxembourg
South Africa
> Employees
Over 700 employees
located in 16 offices
around the world
44% of people
employed for 5 years
or more
> FUM
More than *A$1.35
trillion in funds
management on our
applications
PAGE | 4
CORPORATE OVERVIEW
*Verified internally July 2012
For
per
sona
l use
onl
y
> Transfer Agency Management of all aspects of
record keeping and reporting
in relation to mutual funds
across both retail and
institutional investors
Transfer agents interface with
other entities such as fund
managers, distributors,
trustees, custodians and fund
accountants
Implement, support and maintain data record keeping software
and managed services across Transfer Agency and Wealth
Management divisions
> Wealth Management
End-to-end processing
capability facilitating
streamlined administration to
support all back office
functions relating to daily
management of investment,
superannuation/pensions,
private wealth & portfolio
administration and life
insurance markets
PAGE | 5
CORE BUSINESS F
or p
erso
nal u
se o
nly
PAGE | 6
OUR OFFERING
Transfer
agency
SICAVs / SICAFs and FCPs
OEICs
UCITS
Unit trusts
Money market funds
Investment trusts
Equities
Cash
Business Intelligence
Private wealth
& portfolio
administration Managed accounts
IMA / SMA / MDA
Master trusts / IDPS
SMSF / DIY super
Fund managers
Unit pricing
Private clients
Messaging Hub
Business Services
eBusiness Web Portal
Corporate
superannuation
Corporate super
Industry funds
Defined contribution
Group pension schemes
Life insurance
Individual life insurance
Group life insurance
Life pensions
Unit linked life
Whole of life &
endowments
Investment /
trust / wrap
Master trusts
Retail investment
Institutional investment
IDPS / wrap
Unit trusts
UK wrap. GIA, ISA
OEICs, bonds (on / off)
Superannuation
Retail super master trusts
Allocated annuity / pensions
Variable annuity / pensions
KiwiSaver & PIE
UK SIPP
For
per
sona
l use
onl
y
GROUP HIGHLIGHTS Bravura Solutions Ltd
GROUP HIGHLIGHTS Bravura Solutions Ltd
PAGE | 7
GROUP HIGHLIGHTS
For
per
sona
l use
onl
y
Improved financial position
EBITDA growth from $19.0m to $23.2m – a 22% increase
Sales revenue growth from $120.7m to $126.6m – a 5% increase
Operating cash flow improved from $16.0m to $20.7m – a 29% increase
Strong client sales, retention and maintenance
Five new contracts with existing clients
Three implementations successfully went live
79 upgrade projects undertaken globally
Strengthened key strategic client relationships with BNYM, Citi and Russell
Maintained cost management focus
Further increased use of lower cost resources in Poland and India
Doubled Indian operations for development and support capability
PAGE | 8
GROUP HIGHLIGHTS F
or p
erso
nal u
se o
nly
GROUP HIGHLIGHTS Bravura Solutions Ltd
FY2012 FINANCIAL RESULTS Bravura Solutions Ltd
PAGE | 9
FY2012 FINANCIAL RESULTS
For
per
sona
l use
onl
y
Strong results with growth in sales revenue, EBITDA, NPAT and cash flow
Exchange rates continue to impact results as GBP declined a further 5%
from prior year
Continued focus on underlying operations and cost management strategies
PAGE | 10
FY2012 FINANCIAL PERFORMANCE
Notes
1. Constant currency assumes foreign exchange rates in FY2012 remained constant at FY2011 rates
2. Revenue excludes interest income
3. For reconciliation between EBITDA and net profit / (loss) after tax, please refer to the Remuneration Report in the Financial Report for
the year ended 30 June 2012
$Am
FY11
actual
FY12
actual
FY12
constant
currency1
% change
constant
currency1
% change
actual
Revenue2 120.7 126.6 131.5 9 5
Expenses 101.7 103.4 106.8 (5) (2)
EBITDA3 19.0 23.2 24.7 30 22
Net profit / (loss) after tax (21.1) 5.4 6.0 128 126
Operating cash flow 16.0 20.7 N/A 0 29
For
per
sona
l use
onl
y
PAGE | 11
KEY RESULTS INDICATOR
FY12
For
per
sona
l use
onl
y
PAGE | 12
REVENUE SUMMARY F
or p
erso
nal u
se o
nly
R&D spend increased in FY2012 with
continued investment in products
Total costs per FTE reduced by 17%
Continued focus on discretionary cost
management
Higher professional staff utilisation
generating margin improvements
Implemented new data centre
facilities for UK managed services
Increased headcount significantly in
India to support wealth management
business
PAGE | 13
COST OF OPERATIONS F
or p
erso
nal u
se o
nly
PAGE | 14
BALANCE SHEET
Positive net current asset position
excluding debt facilities
Intangibles continued to amortise
with no impairment for FY2012
Borrowing includes finance lease
for UK data centre
Nil earn outs remaining at end of
financial year
Share buy back 95% complete
$Am Jun-11 Jun-12
ASSETS
Cash 3.7 4.6
Other current assets 31.7 38.0
Intangible assets 121.0 114.9
Other non-current assets 17.4 22.8
Total assets 173.8 180.3
LIABILITIES
Borrowings 24.9 28.4
Deferred consideration 0 0
Other current liabililties 32.4 37.9
MFT earn-out 1.5 0
Other non-current liabilities 8.0 7.4
Total liabilities 66.8 73.7
Net assets 107.0 106.6
Contributed equity 137.8 133.4
Reserves (1.3) (2.8)
Accum (losses) / retained profits (29.5) (24.0)
Total equity 107.0 106.6
For
per
sona
l use
onl
y
PAGE | 15
FUNDING PROFILE
Notes
1. Leverage ratio is defined as total debt as at the end of the relevant period of pro-forma EBITDA for the prior 12 months
2. Interest cover ratio is defined as EBITDA for the prior 12 months to interest expense for the corresponding period
Facility limit
(m)
Draw down
value (m)
Due
date
Working capital facility
AUD revolving tranche facility $8.3 $0.0 Dec-12
GBP revolving tranche facility £3.5 £0.0 Dec-12
Amortising term facility
AUD term tranche facility $3.9 $3.9 Dec-12
GBP term tranche facility £11.4 £11.4 Dec-12
Total debt facilities @1.5367 ($:£ exchange rate) $35.1 $21.4
Balance (m)
Cash and cash equivalents $4.6
Covenant Jun-12 Status
Net assets >$65.0m $106.6m
Leverage ratio1 <3.0x 1.07
Interest cover ratio2 >4.0x 14.9
For
per
sona
l use
onl
y
GROUP HIGHLIGHTS Bravura Solutions Ltd
MARKET COMMENTARY Bravura Solutions Ltd
PAGE | 16
MARKET COMMENTARY
For
per
sona
l use
onl
y
Regulatory change relating to
enforcement of Australia’s Future of
Financial Advice (FoFA) and
continued rollout of Australia’s
Stronger Super initiative driving
revenue from product configuration,
development and enhancement
Dealer group consolidation
Wider range of platform providers for
advisers
Wealth managers broadening product
suite
Enhancement of platforms to cater for
high net worth individuals
New players launching platforms
offering specialist niche services
APAC
EMEA
Regulatory change relating to
enforcement of UK Retail Distribution
Review (RDR) driving revenue from
product configuration, development
and enhancement
Emergence of wrap platforms and
fund supermarkets providing broader
investment administration services
Large service providers moving to
broader wealth management
provision
Transfer agents developing services
beyond traditional record keeping
Technology consolidation and
common service provision due to
fragmented market
PAGE | 17
GROWTH OPPORTUNITIES F
or p
erso
nal u
se o
nly
GROUP HIGHLIGHTS Bravura Solutions Ltd
CORPORATE STRATEGY Bravura Solutions Ltd
PAGE | 18
CORPORATE STRATEGY
For
per
sona
l use
onl
y
Accelerated adoption of Sonata as wealth management
application of choice for APAC and EMEA
Greater focus on Asia growth strategy catering to increased levels
of demand for life insurance applications
Develop managed services model in APAC to replicate EMEA
success
Enhanced strategic relationships with key clients, providing
additional products and services to administration models
Utilise low cost development and support capability through
further expansion of operations in India and Poland for cost
management purposes
Review suitable acquisition opportunities
PAGE | 19
CORPORATE STRATEGY F
or p
erso
nal u
se o
nly
GROUP HIGHLIGHTS Bravura Solutions Ltd
DIVISIONS Bravura Solutions Ltd
PAGE | 20
OPERATING DIVISIONS
For
per
sona
l use
onl
y
PAGE | 21
TRANSFER AGENCY OVERVIEW
> Key clients
Bank of New York Mellon
JP Morgan
Lloyds Banking Group
Schroders
Legal & General
Citi
> Environment
Macro economic stability continuing to
build in Europe
TA products support over *A$1.3 trillion
in assets under management
3 of out of top 5 UK fund managers
(58% market) use our applications
> Strategy
Continue to drive international opportunities and support major clients in
global expansion
Drive further business with existing clients arising from significant regulatory
change
Penetrate less mature markets including those where incumbent technology
is not capable of meeting market requirements
Continue to support legacy platform consolidation on to our technology
within existing client base
Develop and market surround technology applications adding value to
existing core environment
*Verified internally July 2012
For
per
sona
l use
onl
y
PAGE | 22
WEALTH MANAGEMENT OVERVIEW WEALTH MANAGEMENT
> Key clients
Russell Investments
Partners Life
Perpetual
Northern Trust
BaoViet Life
CBA
Citi
> Environment
WM products support over *A$65 billion
in funds under management
Largest provider of New Zealand
KiwiSaver
Increasing level of interest as evidenced
by the volume of requests for
information and proposals
> Strategy
Leverage current success from Sonata implementations at Partners Life and
Russell Investments
Continue to position Sonata as core WM administration engine with major blue
chip clients, extending relationships and building on success with Citi in support
of Aviva and Nucleus wrap platforms
Focus on high growth Asia region where life insurance market offers opportunity
Drive further client business arising from significant regulatory change
Major releases and client upgrades for Talisman, Garradin, ePASS, SuperB
and Calibre continue to drive recurring revenue streams
*Verified internally July 2012
For
per
sona
l use
onl
y
GROUP HIGHLIGHTS Bravura Solutions Ltd
IN SUMMARY Bravura Solutions Ltd
PAGE | 23
IN SUMMARY
For
per
sona
l use
onl
y
FINANCIAL
Strong sales revenue, EBITDA and net profit growth
Solid and continuously improving cash position
CLIENT
Strong long-term relationships with blue chip clients
Driving new business with key industry players
Introduce managed services model in APAC market to replicate European
success
PRODUCT
Successful roll out of wealth management platform, Sonata
Targeted product R&D in line with strategic plan
MARKET
Favourable market drivers for sector growth despite continuing general
concerns in financial services
IN SUMMARY Bravura Solutions Ltd
PAGE | 24
IN SUMMARY F
or p
erso
nal u
se o
nly
Committed to growth
INVESTOR PRESENTATION
Thank you
Bravura Solutions Limited 15 111 148 826
For
per
sona
l use
onl
y