Endava Plc · NYSE:DAVA
Endava — Q3 FY2020 Earnings Presentation
28 slides from Endava's earnings presentation, May 21, 2020
Slide 1: Investor Presentation Q3 FY2020
INVESTOR PRESENTATION Q3 FY2020
Slide 2: Disclaimer
Disclaimer This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation other than statements of historical facts, including, without limitations, statements regarding our future result
Slide 3: Reimagining the Relationship Between People & Technology
REIMAGINING THE RELATIONSHIP BETWEEN PEOPLE & TECHNOLOGY 3
Slide 4: Reimagining the Relationship Between People & Technology
REIMAGINING THE RELATIONSHIP BETWEEN PEOPLE & TECHNOLOGY We accelerate our clients’ ability to take advantage of new business models and market opportunities by ideating and delivering dynamic platforms and intelligent digital experiences that are designed to fuel rapid, ongoing transformation of th
Slide 5: Q3 FY2020 Opportunity & Approach
1 Q3 FY2020 Opportunity & Approach 55
Slide 6: The new reality / We enable change
The new reality We enable change IN OUR WORLD TODAY, MANY BUSINESSES WE ARE A LEADING NEXT-GEN TECHNOLOGY SERVICES PROVIDER AND HELP ARE PREPARING FOR POTENTIALLY ACCELERATE DISRUPTION BY DELIVERING RAPID EVOLUTION TO ENTERPRISES. EXTENDED PERIODS OF TIME DEFINED BY LIMITED PHYSICAL CONTACT BETWEEN
Slide 7: Large and fast growing market opportunity
LARGE AND FAST GROWING MARKET OPPORTUNITY DELIVER RAPID EVOLUTION BY STRONG GROWTH COMBINING NEXT-GEN AND FINANCIAL TECHNOLOGIES WITH PERFORMANCE DEEP INDUSTRY FOUNDER-LED, EXPERIENCED EXPERTISE MANAGEMENT TEAM WITH STRONG CULTURE IDEATION TO PRODUCTION CAPABILITIES, DISTRIBUTED AGILE AT SCALE, DOMA
Slide 8: ENGINEERING NEXT-GEN TECH ENTERPRISE AGILE STRATEGY AUTOMATION USER EXPERIENCE TRADITIONAL BUS. & TECH IT
ENGINEERING NEXT-GEN TECH ENTERPRISE AGILE STRATEGY AUTOMATION USER EXPERIENCE TRADITIONAL BUS. & TECH IT SERVICES CONSULTANTS DIGITAL AGENCIES 8
Slide 9: We serve a large addressable market
$796B 2023 % CAGR FOR DIGITAL TRANSFORMATION 15.3 SERVICES WE SERVE A LARGE ADDRESSABLE $451B 2019 MARKET * Worldwide Semiannual Digital Transformation Spending Guide IDC OCTOBER 2019 9
Slide 10: Global employees and nearshore delivery
GLOBAL EMPLOYEES 6,468 AS OF MAR 31, 2020 NEARSHORE DELIVERY CLOSE TO CLIENT European Union: Denmark Romania and Bulgaria Germany Netherlands Central European: United Kingdom North Macedonia, United States Moldova, and Serbia Latin America: Argentina, Colombia, Uruguay, and Venezuela 36 OFFICES // 3
Slide 11: History of Endava
CONCISE COMPUDAVA ALPHEUS NICKELFISH VELOCITY PARTNERS INTUITUS LTD UK MOLDOVA GERMANY USA USA & LATAM UNITED KINGDOM IT CONSULTANCY NEARSHORE CONSULTING DIGITAL, UX NA SALES & IT CONSULTANCY DELIVERY BUSINESS & STRATEGY LATAM PRIVATE EQUITY FIRM DELIVERY PS TECH ISDC BAIN EXOZET GmbH SERBIA NETHERL
Slide 12: We create value through the delivery of
WE CREATE VALUE THROUGH THE DELIVERY OF 12
Slide 13: Service capabilities
BUSINESS ANALYSIS PE DIGITAL & IT ADVISORY DATA & ANALYTICS PROGRAMME MANAGEMENT DIGITAL PRODUCT STRATEGY TECHNOLOGY STRATEGY AGILE APPLICATIONS MGMT ARCHITECTURE CLOUD INFRASTRUCTURE EXTENDED REALITY DEVSECOPS MACHINE LEARNING & AI SERVICE DELIVERY PRODUCT DESIGN SMART DESK USER EXPERIENCE DESIGN T
Slide 14: Technology disruption waves & convergence
TODAY BANKING PAYMENTS HEALTHCARE RETAIL / CPG LOGISTICS TIME TECHNOLOGY DISRUPTION WAVES & CONVERGENCE 14
Slide 15: Domain expertise: Payments
FRICTIONLESS PAYMENTS QUANTUM PROTOTYPING BIOMETRIC SCHEMELESS REAL CRYPTOCURRENCY OMNI-CHANNEL OPEN APIs CUSTOMER CENTRIC UX MICRO MERCHANTS SMART POS & NANO PAYMENTS PSD2 SYSTEMS COMPUTER VISION IN APP P2P ROBOTIC AUTOMATION ROI OPPORTUNITY MESSAGE PAYMENTS APPS CHATBOTS BLOCKCHAIN PLATFORMS AR FI
Slide 16: Scalability, brand, culture, M&A
Scalability BRAND CULTURE M&A AS WE STRIVE TO BE THE TO SUPPORT THIS GROWTH, WE NEED WE USE TUCK-IN ACQUISITIONS TO ASPIRATIONAL BRAND FOR IT LEADERSHIP AND HAVE DEVELOPED ACCELERATE OUR GROWTH STRATEGY - PROFESSIONALS IN THE REGIONS IN THE ‘PASS IT ON’ INITIATIVE WHICH TO EITHER ESTABLISH OURSELVES
Slide 17: COVID-19 Response Priorities
COVID-19 Response Priorities Where we stand ENSURING THE HEALTH & WELL BEING OF OUR CURRENTLY CLOSE TO 100% OF OUR EMPLOYEES ARE WORKING EMPLOYEES AND THEIR FAMILIES FROM HOME. WORKING WITH OUR CLIENTS TO ADAPT THE CITIES IN WHICH WE OPERATE HAVE EXCELLENT CONNECTIVITY TO THE CURRENT ENVIRONMENT AND
Slide 18: Q3 FY2020 Financials
2 Q3 FY2020 Financials 18
Slide 19: Financial Highlights
Financial Highlights MASTER SERVICE AGREEMENTS WITH CLIENTS PRIMARILY T&M BASED PRICING LONG-TERM CLIENT RELATIONSHIPS STRONG REVENUE GROWTH HEALTHY MARGINS LOW CAPEX REQUIREMENTS POSITIVE ADJUSTED FREE CASH FLOW 19
Slide 20: Revenue (£m) - Strong Revenue Growth
Revenue (£m) CAGR 36% +23% YOY 260.5 211.3 92.2 Q3 73.1 85.9 71.8 Q2 84.1 115.4 159.4 217.6 287.9 66.4 82.4 Q1 FY15 FY16 FY17 FY17 FY19 _ 6m18 6m19 FY15 FY16 FY17 FY18 FY19 9M19 9M20 JUNE 30 MARCH 31 OVER LAST 5 YEARS, 88.8% OF REVENUE (ON AVERAGE) EACH FISCAL YEAR WAS GENERATED FROM CLIENTS IN THE
Slide 21: Profit Before Tax and Adjusted Profit Before Tax
Profit Before Tax (£m) Adjusted Profit Before Tax (£m)* 18.5 CAGR 34% 53.4 38.4 16.0 Q3 19.6 18.3 18.3 Q3 13.2 7.6 20.5 Q2 13.5 9.4 15.2 20.8 21.7 24.6 30.1 2.6 17.517.5 16.1 22.8 25.2 33.5 51.9 11.7 16.9 Q1 Q1 FY15 FY16 FY17 FY18 FY19 _ FY17 FY18 FY15 FY16 FY17 FY18 FY19 _ FY17 FY18 FY15 FY16 FY17
Slide 22: Top Client Revenue % - Deep Client Relationships
Top Client Revenue % TOP TEN No. of Clients / Revenue > £1m* 66% 54% 49% 42% 38% 36% 38% 40% 36% 66% 54% 49% 42% 38% 36% 38% 40% 36% 18 26 34 46 63 67 67 FY15 FY16 FY17 FY17 FY17 6M19 6M20 q218 q219 FY15 FY16 FY17 FY18 FY19 9M19 9M20 Q3FY19 Q3FY20 FY15FY15 FY16 FY17FY17 FY18 FY18FY19 FY17Q3FY19 Q3FY
Slide 23: Increasing Number & Spend of Clients
Total No. of Clients Average Spend: Average Spend: TOP TEN CLIENTS (£000s) REMAINING CLIENTS (£000s) 11000 8250 5500 2750 112 154 188 258 275 280 395 5,510 6,200 7,820 9,040 10,870 7,537 9,826 2,940 3,340 284 434 504 597 699 578 534 222 243 0 FY15 FY16 FY17 FY17 FY17 _ FY17 FY18 FY15 FY16 FY17 FY18
Slide 24: Diverse Revenue Base: Geography & Industry Verticals
RoW N.AMERICA EUROPE Revenue by Region UK 3% 0.3 21% 10% 18% 16% 12% 21% 27% 27% 27% 18% 25% Q3 FY20 34% 34% 28% 27% 25% REVENUE % BY VERTICAL 54% 78% 64% 50% 45% 45% 46% 45% FY15 FY16 FY17 FY18 FY19 _ FY19 FY20 PAYMENTS AND FINANCIAL SERVICES FY15 FY16 FY17 FY18 FY19 Q3FY19 Q3FY20 TECHNOLOGY, MEDIA
Slide 25: Low Capex & Positive Adjusted FCF
Capital Expenditures (£m) Adjusted Free Cash Flow (£m)* 7.9 31.1 30.00 2.2 22.50 20.9 9.6 5.1 Q3 Q3 8.0 1.2 15.00 Q2 3.2 Q2 11.4 2.0 7.50 9.2 2.1 2.7 6.5 5.4 7.3 1.9 2.5 9.5 10.1 11.2 28.7 29.8 0.3 13.5 Q1 0.00 0.3 Q1 FY15 FY16 FY17 FY18 FY18 _ FY17 FY18 FY15FY15 FY16 FY17FY17 FY18 FY18FY19 FY179M19
Slide 26: Q3 FY2020 Appendix
3 Q3 FY2020 Appendix 26
Slide 27: IFRS to Non-IFRS Reconciliation
IFRS TO NON-IFRS RECONCILIATION 27
Slide 28: Endava
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