Endava Plc · NYSE:DAVA
Endava — Q4 FY2020 Earnings Presentation
28 slides from Endava's earnings presentation, Sep 15, 2020
Slide 1: Investor Presentation Q4 FY2020
INVESTOR PRESENTATION Q4 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: Q4 FY2020 Opportunity & Approach
1 Q4 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 EXTENDED PERIODS OF ACCELERATE DISRUPTION BY DELIVERING RAPID EVOLUTION TO ENTERPRISES. TIME DEFINED BY LIMITED PHYSICAL CONTACT BETWEEN HUMANS. OUR
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 6,624 AS OF JUN 30, 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 // 31
Slide 11: History of Endava
CONCISE COMPUDAVA ALPHEUS NICKELFISH VELOCITY PARTNERS INTUITUS COMTRADE UK MOLDOVA GERMANY USA USA & LATAM UNITED KINGDOM IT CONSULTANCY NEARSHORE CONSULTING DIGITAL, UX NA SALES & IT CONSULTANCY DIGITAL SERVICES ADRIATIC REGION DELIVERY BUSINESS & STRATEGY LATAM PRIVATE EQUITY SOFTWARE FIRM DELIVE
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 and 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: Q4 FY2020 Financials
2 Q4 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: Strong revenue growth
Revenue (£m) +21.9% YOY CAGR 33.1% 351.0 287.9 Q4 90.5 76.6 Q3 92.2 73.1 85.9 71.8 Q2 84.1 115.4 159.4 217.6 287.9 351.0 66.4 82.4 Q1 FY15 FY16 FY17 FY17 FY19 FY20 _ 6m18 6m19 FY15 FY16 FY17 FY18 FY19 FY20 12M19 12M20 JUNE 30 JUNE 30 OVER LAST 5 YEARS, 89.4% OF REVENUE (ON AVERAGE) EACH FISCAL YEAR
Slide 21: Robust profitability
Adjusted Profit Profit Before Tax (£m) Before Tax (£m)* 30.1 CAGR 34% 68.6 25.3 51.9 15.215.2 6.8 Q4 10.510.5 Q4 18.3 13.513.5 16.0 Q3 7.6 18.3 13.2 Q3 20.5 Q2 13.5 9.4 17.5 15.2 20.8 21.7 24.6 30.1 25.3 2.6 17.5 Q1 16.1 22.8 25.2 33.5 51.9 68.6 11.7 16.9 Q1 FY15 FY16 FY17 FY18 FY19 FY20 _ FY17 FY18
Slide 22: Deep client relationships
Top Client Revenue % TOP TEN No. of Clients / Revenue > £1m* 66% 54% 49% 42% 38% 38% 40% 40% 18 26 34 46 63 65 63 65 FY15 FY16 FY17 FY17 FY17 FY17 q218 q219 FY15 FY16 FY17 FY18 FY19 FY20 Q4FY19 Q4FY20 FY15FY15 FY16 FY17FY17 FY18 FY18FY19 FY20 _ Q4FY19 FY18Q4FY20 JUNE 30 JUNE 30 JUNE 30 JUNE 30 DEEP
Slide 23: Increasing number & spend of clients
Total No. of Clients Average Spend: Average Spend: TOP TEN CLIENTS (£000s) REMAINING CLIENTS (£000s) 13380 10035 6690 3345 112 154 188 258 275 416 275 416 5,510 6,200 7,820 9,040 10,870 13,380 3,070 3,630 284 434 504 597 699 647 231 232 0 FY15 FY16 FY17 FY17 FY17 FY20 _ FY17 FY18 FY15 FY16 FY17 FY18
Slide 24: Diverse revenue base: geography & industry verticals
RoW N.AMERICA EUROPE Revenue by Region UK 3% 3% 0.3 0.3 20% 10% 18% 16% 12% 21% 27% 28% 29% 18% 31% 28% Q4 FY20 34% 34% 28% 24% 27% REVENUE % 24% BY VERTICAL 52% 78% 64% 50% 45% 45% 44% 45% 42% FY15 FY16 FY17 FY18 FY19 FY20 _ FY19 FY20 PAYMENTS AND FINANCIAL SERVICES FY15 FY16 FY17 FY18 FY19 FY20 Q4
Slide 25: Low capex & positive adjusted FCF
Adjusted Free Capital Expenditures (£m) Cash Flow (£m)* 31.5 9.7 0.90.4 Q4 31.50 29.8 Q4 1.8 7.3 23.63 Q3 8.98.9 9.6 Q3 2.2 2.2 8.0 15.75 1.2 Q2 Q2 11.4 3.2 2.0 7.88 9.2 2.1 2.7 6.5 5.4 7.3 9.7 1.9 2.5 9.5 10.1 11.2 28.7 29.8 31.5 0.3 13.5 Q1 0.00 0.3 Q1 FY15 FY16 FY17 FY18 FY18 FY20 _ FY17 FY18 FY1
Slide 26: Q4 FY2020 Appendix
3 Q4 FY2020 Appendix 26
Slide 27: IFRS to Non-IFRS Reconciliation
IFRS TO NON-IFRS RECONCILIATION 27
Slide 28: Bendava
Bendava