Endava Plc · NYSE:DAVA

Endava — Q2 FY2019 Earnings Presentation

21 slides from Endava's earnings presentation, Feb 28, 2019

  1. Slide 1: Investor Presentation Q2 FY2019

    INVESTOR PRESENTATION Q2 FY2019

  2. Slide 2: Disclaimer

    DISCLAIMER This presentation includes forward-looking statements. All statements contained in this presentation other than statements of historical facts, including statements regarding our future results of operations and financial position, our business strategy and plans and our objectives for fut

  3. Slide 3: Large and fast growing market opportunity; strong growth; deep industry expertise

    LARGE AND FAST GROWING MARKET OPPORTUNITY DELIVER RAPID EVOLUTION BY STRONG GROWTH COMBINING NEXT-GEN AND FINANCIAL TECHNOLOGIES WITH FOUNDER-LED, EXPERIENCED PERFORMANCE DEEP INDUSTRY MANAGEMENT TEAM WITH EXPERTISE STRONG CULTURE IDEATION TO PRODUCTION CAPABILITIES, DISTRIBUTED AGILE AT SCALE, DOMA

  4. Slide 4: We are a pure play next-gen technology company

    ENGINEERING NEXT-GEN TECH ENTERPRISE AGILE WE ARE A PURE PLAY STRATEGY AUTOMATION NEXT-GEN TECHNOLOGY COMPANY USER EXPERIENCE TRADITIONAL CONSULTANTS IT SERVICES & AGENCIES 4

  5. Slide 5: We serve a large addressable market

    $668B 2021 % DIGITAL 20 TRANSFORMATION CAGR SERVICES* WE SERVE A LARGE ADDRESSABLE $390B * WORLDWIDE SEMIANNUAL DIGITAL 2018 TRANSFORMATION SPENDING GUIDE MARKET IDC NOVEMBER 2017 5

  6. Slide 6: Global staff and employee geography

    GLOBAL STAFF 5,3 89 AS OF DECEMBER 31, 2018 CLOSE TO CLIENT DENMARK, GERMANY, NETHERLANDS, UNITED KINGDOM, UNITED STATES NEARSHORE DELIVERY EUROPEAN UNION: ROMANIA, BULGARIA; CENTRAL EUROPEAN COUNTRIES: MACEDONIA, MOLDOVA AND SERBIA; LATIN AMERICA: ARGENTINA, COLOMBIA, URUGUAY AND VENEZUELA Employee

  7. Slide 7: History of Endava

    CONCISE COMPUDAVA ALPHEUS NICKELFISH VELOCITY PARTNERS UK MOLDOVA GERMANY USA USA & LATAM IT CONSULTANCY NEARSHORE CONSULTING DIGITAL, UX, & NA SALES & DELIVERY BUSINESS STRATEGY FIRM LATAM DELIVERY PS TECH ISDC BAIN SERBIA NETHERLANDS PARTNERSHIP AGILE DELIVERY & CE ANNOUNCED AGILE DELIVERY IPO EXP

  8. Slide 8: We make our clients more agile, engaging, responsive and efficient

    WE MAKE OUR CLIENTS MORE MORE & MORE ENGAGING RESPONSIVE EFFICIENT AGILE BUSINESS AUTOMATION DIGITAL CREATIVE INSIGHTS MOBILEDIGITAL DISTRIBUTEDSMART SOFTWARE TESTINGTEST CONTINUOUS APPLICATIONSADVANCED SERVICESMART STRATEGY THROUGH EXECUTION ARCHITECTURE AGILE DEV ENGINEERING AUTOMATIONSERVICES & C

  9. Slide 9: Technology disruption waves and convergence

    TODAY BANKING PAYMENTS HEALTHCARE RETAIL / CPG LOGISTICS TIME TECHNOLOGY DISRUPTION WAVES & CONVERGENCE 9

  10. Slide 10: Scalability, brand, culture and M&A

    SCALABILITY BRAND CULTURE M&A AS WE STRIVE TO BE THE TO SUPPORT THIS GROWTH, WE WE USE TUCK-IN ACQUISITIONS TO ASPIRATIONAL BRAND FOR IT NEED LEADERSHIP AND HAVE ACCELERATE OUR GROWTH PROFESSIONALS IN THE DEVELOPED THE ‘PASS IT ON’ STRATEGY - TO EITHER ESTABLISH REGIONS IN WHICH WE INITIATIVE WHICH

  11. Slide 11: Financials

    FINANCIALS 11

  12. Slide 12: 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 FREE CASH FLOW 12

  13. Slide 13: Revenue: strong revenue growth

    REVENUE (£m) 220m CAGR 37.3% 138.2 110m 97.5 71.8 Q2 50 84.1 115.4 159.4 217.6 47.5 66.4 Q1 0m FY15 FY16 FY17 FY17 _ 6m18 6m19 FY15 FY16 FY17 FY18 6M18 6M19 JUNE 30 DEC 31 OVER LAST 5 YEARS, 89.1% OF REVENUE (ON AVERAGE) EACH FISCAL YEAR WAS GENERATED FROM CLIENTS IN THE PREVIOUS YEAR. *SEE PAGE 20

  14. Slide 14: Robust profitability

    PROFIT BEFORE TAX (£m) ADJUSTED PROFIT BEFORE TAX (£m)* 35m 35m CAGR 27.7% 25.2 17.5m 17.5m 15.3 12.4 12.0 13.5 Q2 7.5 6.0 9.4 Q2 15.2 20.8 21.7 24.6 6.4 2.6 Q1 16.1 22.8 25.2 33.5 7.8 11.7 Q1 0m 0m FY15 FY16 FY17 FY18 _ FY17 FY18 FY15 FY16 FY17 FY18 _ FY17 FY18 FY15 FY16 FY17 FY18 6M18 6M19 FY15 FY

  15. Slide 15: Deep client relationships

    2-10 TOP CLIENT REVENUE % TOP CLIENT No. OF CLIENTS / REVENUE > £1m 100% 60 66% 54% 49% 42% 45% 45% 30 50% 38% 38% 50% 38% 36% 31% 33% 28% 33% 28% 16% 16% 13% 11% 12% 10% 12% 10% 18 26 34 46 42 60 0 0 FY15 FY16 FY17 FY17 _ FY17 FY18 - q218 q219 FY15 FY16 FY17 FY18 6M18 6M19 Q2FY18 Q2FY19 FY15FY15 FY

  16. Slide 16: Increasing number and spend of clients

    AVERAGE SPEND: AVERAGE SPEND: TOTAL No. OF CLIENTS TOP 10 CLIENTS (£000s) REMAINING CLIENTS (£000s) 300 9,0009000 600 6750 150 4,5004500 300 2250 112 154 188 258 197 271 5,510 6,200 7,820 9,040 4,407 5,246 2,240 2,730 284 434 504 597 360 456 209 263 0 00 0 FY15 FY16 FY17 FY17 _ FY17 FY18 FY15 FY16 F

  17. Slide 17: Diverse revenue base: geography and industry verticals

    N.AMERICA EUROPE REVENUE % BY REGION UK 100% 20% 10% 15% 18% 16% 12% 21% 27% 18% 27% Q2 FY2019 34% 50% 34% 37% 28% REVENUE % BY VERTICAL 53% 78% 64% 50% 45% 48% 45% 0% FY15 FY16 FY17 FY17 _ FY17 FY18 PAYMENTS AND FINANCIAL SERVICES FY15 FY16 FY17 FY18 Q2FY18 Q2FY19 TECHNOLOGY, MEDIA, & TELECOMMUNICA

  18. Slide 18: Low capex and positive FCF

    CAPITAL EXPENDITURES (£m) FREE CASH FLOW (£m) (1) 8m 30.0030m 20.0020m 3.9 4m 2.8 9.7 9.5 10.0010m 2.0 1.2 Q2 7.5 9.2 Q2 2.1 2.7 6.5 5.4 1.6 1.9 Q1 9.5 10.1 11.2 28.7 2.2 0.3 0 0.000 FY15 FY16 FY17 FY18 _ FY17 FY180.3 Q1 FY15FY15 FY16 FY17FY17 FY18 _ 6M18 FY186M19 FY15 FY16 FY17 FY18 6M18 6M19 JUNE

  19. Slide 19: Appendix

    tt. APPENDIX

  20. Slide 20: IFRS to non-IFRS reconciliation

    IFRS TO NON-IFRS RECONCILIATION 20

  21. Slide 21: Endava

    Pendava 21

Endava — Q2 FY2019 Earnings Presentation on 6ix