Endava Plc · NYSE:DAVA
Endava — Q4 FY2022 Earnings Presentation
31 slides from Endava's earnings presentation, Sep 27, 2022
Slide 1: Q4 FY2022 Investor Presentation
Q4 FY2022 INVESTOR PRESENTATION
Slide 2: Forward-looking statements
2 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, are forward-looking statements. The words “believe,” “estimate,” “expect,” “ma
Slide 3: Reimagining the Relationship Between People & Technology
REIMAGINING THE RELATIONSHIP BETWEEN PEOPLE & TECHNOLOGY 3
Slide 4: We accelerate our clients' ability to take advantage of new business models
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 their businesses. By leveraging next-generation technologie
Slide 5: Opportunity & Approach Q4 FY2022
5 1 Opportunity & Approach Q4 FY2022
Slide 6: We are a leading next-gen technology services provider
6 WE ARE A LEADING NEXT-GEN TECHNOLOGY SERVICES PROVIDER AND HELP ACCELERATE DISRUPTION BY DELIVERING RAPID EVOLUTION TO ENTERPRISES. OUR PEOPLE SYNTHESIZE CREATIVITY, TECHNOLOGY, AND DELIVERY AT SCALE IN MULTI-DISCIPLINARY TEAMS, ENABLING US TO SUPPORT OUR CLIENTS FROM IDEATION TO PRODUCTION. FROM
Slide 7: Large and fast growing market opportunity
LARGE AND FAST GROWING MARKET OPPORTUNITY DELIVER RAPID EVOLUTION BY COMBINING NEXT-GEN TECHNOLOGIES WITH DEEP INDUSTRY EXPERTISE STRONG GROWTH AND FINANCIAL PERFORMANCE IDEATION TO PRODUCTION CAPABILITIES, DISTRIBUTED AGILE AT SCALE, DOMAIN EXPERTISE AND NEAR-SHORE LOCATIONS FOUNDER-LED, EXPERIENCE
Slide 8: Traditional IT services, consultants, engineering and digital agencies positioning
8 TRADITIONAL IT SERVICES BUS. & TECH CONSULTANTS ENGINEERING ENTERPRISE AGILE AUTOMATION NEXT-GEN TECH STRATEGY USER EXPERIENCE DIGITAL AGENCIES
Slide 9: We serve a large addressable market
We serve a large addressable market. * IDC Worldwide Digital Transformation Spending Guide, May 2022 update. 16.6 % FOR DIGITAL TRANSFORMATION INVESTMENTS 9 $1.8T 2021 - 2025 CAGR 2022 FORECAST
Slide 10: Endavans by geography
10 ENDAVANS BY GEOGRAPHY FY19 FY20 FY21 FY22 Western Europe 254 448 493 602 Central Europe - EU Countries 3,062 3,368 4,469 6,093 3,316 3,816 4,962 6,695 Central Europe - Non-EU Countries 1,583 1,810 2,361 2,842 Latin America 780 895 1,244 1,927 North America 75 103 311 348 APAC 5 38 Middle East 3 5
Slide 11: Close to client
11 CLOSE TO CLIENT Australia Austria Canada Denmark Germany Ireland Netherlands Singapore Switzerland United Kingdom United Arab Emirates United States NEARSHORE LOCATIONS European Union: Bulgaria, Croatia, Poland, Romania and Slovenia Central Europe: Bosnia & Herzegovina, Moldova, North Macedonia a
Slide 12: History of Endava
HISTORY OF ENDAVA 11,853 FOUNDED IN COMPUDAVA ALPHEUS NICKELFISH PS TECH ISDC EXPAND TO CE VELOCITY PARTNERSCONCISE UK IT CONSULTANCY 60 240 1,000 2000 2022 EXPAND TO USA EXPAND TO LATAM IPO NYSE JULY 2018 MOLDOVA NEARSHORE LOCATION GERMANY CONSULTING BUSINESS USA DIGITAL, UX & STRATEGY FIRM USA & L
Slide 13: We create value through the delivery of
13 WE CREATE VALUE THROUGH THE DELIVERY OF
Slide 14: Service capabilities
14 BUSINESS ANALYSIS DATA & ANALYTICS DIGITAL PRODUCT STRATEGY PE DIGITAL & IT ADVISORY PROGRAMME MANAGEMENT TECHNOLOGY STRATEGY AUTOMATED TESTING. CLOUD NATIVE SOFTWARE ENG. CONTINUOUS DELIVERY . DISTRIBUTED AGILE DELIVERY INTELLIGENT AUTOMATION SECURE DEVELOPMENT AGILE APPLICATIONS MGMT CLOUD INFR
Slide 15: Disruption waves and convergence
15 TODAY TIME TECHNOLOGY DISRUPTION WAVES & CONVERGENCE MOBILITY PAYMENTS RETAIL / CPG CAPITAL MARKETS HEALTHTECH INSURANCE
Slide 16: Payments industry trends
2012 2017 NOW 2030 2040+20352025 PAYMENTS INDUSTRY TRENDS OPEN BANKING REAL TIME PAYMENTS CRYPTO WALLETS INSTANT/DIGITAL ISSUING EMBEDDED FINANCE DLT IN CROSS BORDER PAYMENTS CLOSED LOOP PAYMENT ECOSYSTEM ISO 20022 ADOPTION VERTICALLY-INTEGRATED PAYMENTS CROSS BORDER PAYMENTS MICROPAYMENTS BNPL BIOM
Slide 17: Automotive industry trends
2012 2017 NOW 2030 2040+20352025 AUTOMOTIVE INDUSTRY TRENDS FUEL ECONOMY INDIVIDUAL CAR LEASING APPLE CARPLAY ANDROID AUTO SEMI-AUTONOMOUS DRIVING AIDS CAR SUBSCRIPTION USAGE-SPECIFIC INSURANCE INTELLIGENT ROUTING PARKING, TRAFFIC JAM 5G NEW ( INDUCTIVE) CHARGING INFRASTRUCTURE DIGITAL SALES PROCESS
Slide 18: Brand, culture, M&A, scalability
18 AS WE STRIVE TO BE THE ASPIRATIONAL BRAND FOR IT PROFESSIONALS IN THE REGIONS IN WHICH WE OPERATE, WE ATTRACT HIGH QUALITY TALENT. TO SUPPORT THIS GROWTH, WE NEED LEADERSHIP AND HAVE DEVELOPED THE ‘PASS IT ON’ INITIATIVE WHICH DRIVES LOYALTY AND LOWERS ATTRITION. WE USE TUCK-IN ACQUISITIONS TO AC
Slide 19: Endava's five key sustainability focus areas
19 ENDAVA’S FIVE KEY SUSTAINABILITY FOCUS AREAS
Slide 20: Key sustainability commitments
20 KEY SUSTAINABILITY COMMITMENTS OUR PEOPLE SOCIAL IMPACT OPERATING RESPONSIBILITY INNOVATION & DATA INTEGRITY ENVIRONMENTAL IMPACT We enable our people to be the best they can be by fostering an inclusive culture, providing career and progression opportunities, and supporting their wellbeing. We f
Slide 21: Financials Q4 FY2022
21 2 Financials Q4 FY2022
Slide 22: Financial Highlights
22 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 Financial Highlights
Slide 23: Strong revenue growth
23 STRONG REVENUE GROWTH FY18 FY19 FY20 FY21 FY22 _ FY21 FY22 180.4 133.6 169.2 112.3 157.7 105.2 147.595.1654.8446.3351.0287.9217.6 CAGR 31.7% OVER LAST 5 YEARS, 88.6% OF REVENUE (ON AVERAGE) EACH FISCAL YEAR WAS GENERATED FROM CLIENTS IN THE PREVIOUS YEAR. FY18 JUNE 30 JUNE 30 12M21 12M22FY19 FY20
Slide 24: Robust profitability
19.2% 12M Q2 Q1 24 FY18 FY19 FY20 FY21 FY22 _ FY21 FY22 32.5 18.5 25.9 16.5 19.1 10.6 24.98.7102.454.423.429.123.0 ROBUST PROFITABILITY FY18 FY19 FY20 FY21 FY22 _ FY21 FY22 36.3 29.3 34.2 23.9 33.0 20.6 34.818.2138.392.166.751.031.8 14.6% 19.2% 23.6%MARGIN FY18 FY19 17.7%12.2% FY18 JUNE 30JUNE 30 12
Slide 25: Deep client relationships
JUNE 30 DEEP CLIENT RELATIONSHIPS FY18 FY20 FY22 Q4FY21 1348513485656346 FY18 JUNE 30 FY19 FY20 25* Calculated on a 12 month rolling basis. No. of Clients / Revenue > £1m* FY21 Q4FY21 Q4FY22 JUNE 30 FY18 FY19 FY20 FY21 FY22 Q4FY21 Q4FY22 32%36%34%35%38%38%42% TOP TEN FY18 JUNE 30 FY19 Q4FY22FY20 Top
Slide 26: Increasing number and spend of clients
26 INCREASING NUMBER & SPEND OF CLIENTS FY18 FY20 FY22 Q4FY21 732615732615416275258 Total No. of Clients FY18 JUNE 30 FY19 FY20 Q4FY21 Q4FY22 JUNE 30 FY21 FY22 JUNE 30 FY18 FY19 FY20 FY21 FY22 - Q4FY21 Q4FY22 312260841697647699597 Average Spend: REMAINING CLIENTS (£000s) FY18 JUNE 30 FY19 FY20 FY21
Slide 27: Diverse revenue base: geography and industry verticals
DIVERSE REVENUE BASE: GEOGRAPHY & INDUSTRY VERTICALS 24% 25% 51% PAYMENTS AND FINANCIAL SERVICES TECHNOLOGY, MEDIA & TELECOMMUNICATIONS OTHER REVENUE % BY VERTICAL Q4 FY22 FY18 FY19 FY20 FY21 FY22 _ Q4FY21 Q4FY22 3%2%3%3% 35%37%35% 31%29% 27% 21% 22%21%21%24%24%28%34% 40%40%41%42%44%45%45% UK EUROPE
Slide 28: Low capex and positive adjusted FCF
12M Q2 Q1 1.6% 2.4% LOW CAPEX & POSITIVE ADJUSTED FCF 0.00 27.00 54.00 81.00 108.00 FY18 FY19 FY20 FY21 FY22 _ FY21 FY22 43.4 32.6 16.1 10.2 31.2 18.7 16.521.2107.282.731.529.828.7 FY18 FY20 FY22 FY21 3.7 1.6 2.7 1.4 3.8 1.7 3.50.613.75.27.36.13.7 FY18 12M21 12M22FY19 % OF REVENUE 13.2% 18.5% 16.4%
Slide 29: Appendix Q4 FY2022
3 Appendix Q4 FY2022 29
Slide 30: IFRS to Non-IFRS reconciliation
30 IFRS TO NON-IFRS RECONCILIATION 2020(1) 2021(1) 2022 2021(1) 2022 Reconciliation of Revenue Growth at Constant Currency to Revenue Growth as Reported under IFRS Revenue Growth as Reported under IFRS 21.9 % 27.2 % 46.7 % 47.7 % 35.0 % Foreign exchange rates impact (0.9)% 2.4 % 0.9 % 7.2 % (4.1)% R
Slide 31: Pendava
Pendava