Financial results for year ended 30 June 2012

Transcription

1 INVESTOR PRESENTATION Financial results for year ended 30 June 2012 Tony Klim, Chief Executive Officer Rebecca Norton, Chief Financial Officer August 2012

2 AGENDA Corporate overview Group highlights FY2012 financial results Market commentary Corporate strategy Operating divisions Summary PAGE 2

3 GROUP HIGHLIGHTS CORPORATE OVERVIEW PAGE 3

4 CORPORATE OVERVIEW 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 *Verified internally July 2012 PAGE 4

5 CORE BUSINESS Implement, support and maintain data record keeping software and managed services across Transfer Agency and Wealth Management divisions > 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 > 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

6 OUR OFFERING ebusiness Web Portal Business Services 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 Corporate superannuation Corporate super Industry funds Defined contribution Group pension schemes Private wealth & portfolio administration Managed accounts IMA / SMA / MDA Master trusts / IDPS SMSF / DIY super Fund managers Unit pricing Private clients Transfer agency SICAVs / SICAFs and FCPs OEICs UCITS Unit trusts Money market funds Investment trusts Equities Cash Business Intelligence Messaging Hub PAGE 6

7 GROUP HIGHLIGHTS GROUP HIGHLIGHTS PAGE 7

8 GROUP HIGHLIGHTS 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

9 GROUP FY2012 FINANCIAL HIGHLIGHTS RESULTS FY2012 FINANCIAL RESULTS PAGE 9

10 FY2012 FINANCIAL PERFORMANCE FY12 constant currency 1 % change constant currency 1 $Am FY11 actual FY12 actual % change actual Revenue Expenses (5) (2) EBITDA Net profit / (loss) after tax (21.1) Operating cash flow N/A 0 29 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 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

11 KEY RESULTS INDICATOR FY12 PAGE 11

12 PAGE 12 REVENUE SUMMARY

13 COST OF OPERATIONS 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

14 BALANCE SHEET $Am Jun-11 Jun-12 ASSETS Cash Other current assets Intangible assets Other non-current assets Total assets LIABILITIES Borrowings Deferred consideration 0 0 Other current liabililties MFT earn-out Other non-current liabilities Total liabilities Net assets Contributed equity Reserves (1.3) (2.8) Accum (losses) / retained profits (29.5) (24.0) Total equity 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 PAGE 14

15 FUNDING PROFILE 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 Dec-12 Amortising term facility AUD term tranche facility $3.9 $3.9 Dec-12 GBP term tranche facility Dec-12 Total debt ($: 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 ratio 1 <3.0x 1.07 Interest cover ratio 2 >4.0x 14.9 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 PAGE 15

16 GROUP MARKET HIGHLIGHTS COMMENTARY MARKET COMMENTARY PAGE 16

17 GROWTH OPPORTUNITIES APAC 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 PAGE 17 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

18 GROUP CORPORATE HIGHLIGHTS STRATEGY CORPORATE STRATEGY PAGE 18

19 CORPORATE STRATEGY 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

20 GROUP DIVISIONS HIGHLIGHTS OPERATING DIVISIONS PAGE 20

21 TRANSFER AGENCY OVERVIEW > Key clients Bank of New York Mellon JP Morgan Lloyds Banking Group Schroders Legal & General Citi PAGE 21 > 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 *Verified internally July 2012 > 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

22 WEALTH MANAGEMENT OVERVIEW > Key clients Russell Investments Partners Life Perpetual Northern Trust BaoViet Life CBA Citi PAGE 22 > 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 *Verified internally July 2012 > 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

23 GROUP IN SUMMARY HIGHLIGHTS IN SUMMARY PAGE 23

24 IN SUMMARY IN SUMMARY 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 PAGE 24

25 INVESTOR PRESENTATION Committed to growth Thank you Bravura Solutions Limited