EX-99.2
Published on November 16, 2021
Q1 FY2022 INVESTOR PRESENTATION
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,” “may,” “will” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, the statements regarding our business strategy and our plans and objectives for future operations, our addressable market, potential technological disruptions, and client demand for our services. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: our business, results of operations and financial condition may be negatively impacted by the COVID-19 pandemic and the precautions taken in response to the pandemic or if general economic conditions in Europe, the United States or the global economy worsen; our ability to manage our rapid growth or achieve anticipated growth; our ability to retain existing clients and attract new clients, including our ability to increase revenue from existing clients and diversify our revenue concentration; our ability to attract and retain highly-skilled IT professionals at cost-effective rates; our ability to penetrate new industry verticals and geographies and grow our revenue in current industry verticals and geographies; our ability to maintain favourable pricing and utilisation rates; our ability to successfully identify acquisition targets, consummate acquisitions and successfully integrate acquired businesses and personnel; the effects of increased competition as well as innovations by new and existing competitors in our market; our ability to adapt to technological change and innovate solutions for our clients; our ability to collect on billed and unbilled receivables from clients; our ability to effectively manage our international operations, including our exposure to foreign currency exchange rate fluctuations; our ability to remediate the identified material weaknesses and maintain an effective system of disclosure controls and internal control over financial reporting and our future financial performance, including trends in revenue, cost of sales, gross profit, selling, general and administrative expenses, finance income and expense and taxes, as well as other risks and uncertainties discussed in the “Risk Factors” section of our Annual Report on Form 20-F filed with the Securities and Exchange Commission (the “SEC”) on September 28, 2021. Except as required by law, we assume no duty to update any of these forward-looking statements after the date of this presentation to conform these statements to actual results or revised expectations. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this presentation. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements contained in this presentation. This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Neither we nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the date of this presentation. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk. By attending or receiving this presentation you acknowledge that you will be solely responsible for your own assessment of the market and our market position and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of our business. This presentation includes non-IFRS financial measures which have certain limitations and should not be considered in isolation, or as alternatives to or substitutes for, financial measures determined in accordance with IFRS. The non-IFRS measures as defined by us may not be comparable to similar non-IFRS measures presented by other companies. Our presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that our future results will be unaffected by these or other unusual or non-recurring items. See the IFRS to Non-IFRS Reconciliation section for a reconciliation of these non-IFRS financial measures to the most directly comparable IFRS financial measures. Disclaimer
REIMAGINING THE RELATIONSHIP BETWEEN PEOPLE & TECHNOLOGY 3
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 technologies, our agile, multi-disciplinary teams provide a combination of Product & Technology Strategies, Intelligent Experiences, and World Class Engineering to help our clients become more engaging, responsive, and efficient. REIMAGINING THE RELATIONSHIP BETWEEN PEOPLE & TECHNOLOGY 4
5 1 Opportunity & Approach Q1 FY2022
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 PROOF OF CONCEPT, TO PROTOTYPE, TO PRODUCTION, WE USE OUR ENGINEERING EXPERTISE TO DELIVER ENTERPRISE PRODUCTS AND PLATFORMS CAPABLE OF HANDLING MILLIONS OF TRANSACTIONS PER DAY. IN THIS NEW REALITY, WE’LL BUILD THE EXPERIENCES, TECHNICAL SCAFFOLDING, AND INFRASTRUCTURE DESIGNED TO ENABLE AN ENTIRELY NEW SET OF INTERACTIONS BETWEEN PEOPLE AND TECHNOLOGY. We enable change IN OUR WORLD TODAY, MANY BUSINESSES ARE PREPARING FOR EXTENDED PERIODS OF TIME DEFINED BY LIMITED PHYSICAL CONTACT BETWEEN HUMANS. AN ORGANIZATION’S ABILITY TO OPERATE PRIMARILY IN A DIGITAL LANDSCAPE MAY DICTATE ITS ABILITY TO BOTH SURVIVE AND SUCCEED. WE BELIEVE, MOVING FORWARD, TRUE DIGITAL TRANSFORMATION AND THE ESTABLISHMENT OF A FLEXIBLE BUSINESS MODEL WILL BECOME MISSION CRITICAL FOR BUSINESSES. The new reality
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 DELIVERY FOUNDER-LED, EXPERIENCED MANAGEMENT TEAM WITH STRONG CULTURE 7
8 TRADITIONAL IT SERVICES BUS. & TECH CONSULTANTS ENGINEERING ENTERPRISE AGILE AUTOMATION NEXT-GEN TECH STRATEGY
USER EXPERIENCE DIGITAL
AGENCIES
WE SERVE A LARGE ADDRESSABLE MARKET * IDC’s Future Scape: Worldwide Digital Transformation 2021 Predictions 2020 $6.8T 2023 15.5% CAGR FOR DIGITAL
TRANSFORMATION
INVESTMENTS 9
ENDAVANS BY GEOGRAPHY FY17 FY18 FY19 FY20 FY21 Q1FY21 Q1FY22 Western Europe 233 232 254 448 493 465 520 Central Europe - EU Countries 2,314 2,578 3,062 3,368 4,469 3,638 4,833 2,547 2,810 3,316 3,816 4,962 4,103 5,353 Central Europe - Non-EU 1,073 1,279 1,583 1,810 2,361 2,117 2,494 Latin America 68 665 780 895 1,244 879 1,419 North America 56 65 75 103 311 100 345 APAC 5 5 3,744 4,819 5,754 6,624 8,883 7,199 9,616 CLOSE TO CLIENT Australia Austria Denmark Germany Ireland Netherlands Singapore
Switzerland United Kingdom United States NEARSHORE DELIVERY European Union:
Bulgaria, Croatia, Romania and Slovenia
Central European:
Bosnia & Herzegovina, Moldova, North Macedonia and Serbia
Latin America:
Argentina, Colombia, Mexico,
Uruguay and Venezuela 9,616 AS OF SEP 30, 2021 GLOBAL EMPLOYEES 10 51 OFFICES / / 49 CITIES / / 23 COUNTRIES
HISTORY OF ENDAVA 9,616 FOUNDED IN COMPUDAVA ALPHEUS NICKELFISH PS TECH ISDC EXPAND
TO CE VELOCITY PARTNERSCONCISE UK IT CONSULTANCY 60 240 1,000 2000 2021 EXPAND
TO USA EXPAND
TO LATAM IPO NYSE JULY 2018 MOLDOVA
NEARSHORE
DELIVERY GERMANY
CONSULTING BUSINESS USA
DIGITAL, UX
& STRATEGY
FIRM USA & LATAM
NA SALES & LATAM DELIVERY SERBIA
AGILE DELIVERY NETHERLANDS
& CE
AGILE DELIVERY 2,000 BAIN PARTNERSHIP ANNOUNCED HEADCOUNT Q1 FY22 INTUITUS UNITED KINGDOM
IT CONSULTANCY PRIVATE EQUITY EXOZET GERMANY DIGITAL AGENCY 11 COMTRADE ADRIATIC REGION
SOFTWARE ENGINEERING SERVICES FIVE USA, CROATIA DIGITAL AGENCY LEVVEL USA TECH STRATEGY CONSULTING & ENGINEERING 5,000
12 WE CREATE VALUE THROUGH THE DELIVERY OF
13 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 INFRASTRUCTURE
DEVSECOPS
SERVICE DELIVERY SMART DESK
TELEMETRY & MONITORING ARCHITECTURE EXTENDED REALITY MACHINE LEARNING & AI
PRODUCT DESIGN USER EXPERIENCE DESIGN VISUAL DESIGN
14 TODAY TIME TECHNOLOGY DISRUPTION WAVES & CONVERGENCE BANKING PAYMENTS RETAIL / CPG LOGISTICS HEALTHCARE
RO I O PP OR TU NI TY 2016 2017 2018 2019 2020 2021 15 DOMAIN EXPERTISE: PAYMENT PROTOTYPING PAYMENTS PLATFORMS ROBOTIC
AUTOMATION REAL OMNI-CHANNEL CUSTOMER CENTRIC UX FINANCIAL INCLUSION CHATBOTS MICRO MERCHANTS & NANO PAYMENTS SCHEMELESS BIOMETRIC IN APP P2P BLOCKCHAIN QUANTUM CRYPTOCURRENCY PSD2 OPEN APIs MESSAGE
APPS FRICTIONLESS PAYMENTS SMART POS SYSTEMS AR COMPUTER VISION
16 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 ACCELERATE OUR GROWTH STRATEGY - TO EITHER ESTABLISH OURSELVES IN A NEW GEO OR TO ESTABLISH A NEW AREA OF EXPERTISE AND MARKET GROWTH. BRAND CULTURE M&A Scalability
17 ENDAVA’S FIVE KEY SUSTAINABILITY FOCUS AREAS
18 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 follow sound environmental practices to lower our energy footprint, reduce waste, choose greener infrastructures and equipment, and promote environmentally friendly ways of working. We help our clients to accelerate industry transformation by reimagining the relationship between people and technology, while safeguarding our clients’ privacy and protecting the assets entrusted to us according to industry standards. We contribute to the societies we are part of, and more broadly the Technology & Services industry, through community and fundraising activities in the areas of Education, Health and the Environment. We apply the highest standards of business conduct and ethics to work situations and strive to make the right decisions that benefit our people, inventors, customers, suppliers and society.
19 2 Financials Q1 FY2022
20 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
21 STRONG REVENUE GROWTH FY17 FY17 FY19 FY20 FY21 _ 6m18 6m19 147.595.1446.3351.0287.9217.6159.4 CAGR 29.4% OVER LAST 5 YEARS, 88.5% OF REVENUE (ON AVERAGE) EACH FISCAL YEAR WAS GENERATED FROM CLIENTS IN THE PREVIOUS YEAR. FY17 JUNE 30 SEP 30 Q1FY21 Q1FY22FY18 FY19 +55.0% YOYRevenue (£m) FY20 FY21
22 FY17 FY18 FY19 FY20 FY21 _ FY21 FY22 24.98.754.425.330.124.621.7 ROBUST PROFITABILITY FY17 FY18 FY19 FY20 FY21 _ FY21 FY22 34.818.292.168.651.933.525.2 15.8% 19.2% 23.6%MARGIN FY17 FY18 15.4%9.2% FY17 JUNE 30SEP 30 Q1FY21 Q1FY22FY18 FY19 FY19 18.0% SEP 30 Q1FY21 Q1FY22 16.9% * See page 28 for reconciliation of IFRS to Non-IFRS metrics CAGR 38% Adjusted Profit Before Tax (£m)*Profit Before Tax (£m) 13.6%MARGIN 11.3% 10.5% FY20 7.2% FY20 19.5% 18.3 FY21 12.2% 20.6% FY21 18.5 JUNE 30
DEEP CLIENT RELATIONSHIPS FY17 FY19 FY21 Q1FY21 93668565634634 FY17 FY19 FY21 Q1FY21 36%39%35%38%38%42%49% TOP TEN FY17 JUNE 30 FY17 JUNE 30 FY18 FY18Q1FY22 SEP 30 FY19 FY19 23* Calculated on a 12 month rolling basis. Top Client Revenue % No. of Clients / Revenue > £1m* FY20 SEP 30 FY20 Q1FY21 Q1FY22Q1FY21FY21 FY21
24 INCREASING NUMBER & SPEND OF CLIENTS FY17 FY19 FY21 Q1FY21 658501615416275258188 FY17 FY18 FY19 FY20 FY21 - Q1FY21 Q1FY22 274218697647699597504 0 3898 7795 11693 15590 FY17 FY18 FY19 FY20 FY21 Q1FY21Q1FY22 5,3103,74015,59013,38010,8709,0407,820 FY17 JUNE 30 FY18 FY19 FY20 Q1FY21 Q1FY22 Total No. of Clients Average Spend: TOP TEN CLIENTS (£000s) Average Spend: REMAINING CLIENTS (£000s) FY17 JUNE 30 FY18 FY19 Q1FY21 Q1FY22 SEP 30 FY20 FY17 JUNE 30 FY18 FY19 FY20FY21 SEP 30 FY21 Q1FY21 Q1FY22 SEP 30 FY21
DIVERSE REVENUE BASE: GEOGRAPHY & INDUSTRY VERTICALS 25% 25% 50% PAYMENTS AND FINANCIAL SERVICES TECHNOLOGY, MEDIA & TELECOMMUNICATIONS OTHER REVENUE % BY VERTICAL Q1 FY22 FY17 FY18 FY19 FY20 FY21 _ Q1FY21 Q1FY22 0.30.30.30.3 36% 29%31%29% 27% 21% 16% 20%25%24%24%28%34% 34% 41%43%42%44%45%45%50% UK EUROPE N.AMERICA RoW * FY17 JUNE 30 SEP 30 Q1FY21 Q1FY22FY18 FY19 3% 25 * Other includes consumer products,
healthcare, mobility and retail verticals Revenue by Region 3% FY20 3% FY21 3%
LOW CAPEX & POSITIVE ADJUSTED FCF 0.00 20.75 41.50 62.25 83.00 FY17 FY18 FY19 FY20 FY21 _ Q1FY21 Q1FY22 16.521.282.731.529.828.711.2 FY17 FY19 FY21 Q1FY21 3.50.65.99.77.35.46.5 FY 7 Q1FY21 Q FY22FY18 % OF REVENUE 7.0% 22.3% 11.2% FY17 JUNE 30 FY18 13.2%4.1% 0.6% 2.3%2.5% JUNE 30 SEP 30 FY 9 2.5% FY19 10.4% 26* See page 28 for reconciliation of IFRS to Non-IFRS metrics Capital Expenditures (£m) Adjusted Free Cash Flow (£m)* FY20 2.8% FY20 9.0% SEP 30 Q1FY21 Q1FY22FY 1 1.3% FY21 18.5% 32.6
3 Appendix Q1 FY2022 27
28 IFRS TO NON-IFRS RECONCILIATION 2019 2020 2021 2020 2021 Reconciliation of Revenue Growth at Constant Currency to Revenue Growth as Reported under IFRS Revenue Growth as Reported under IFRS 32.3 % 21.9 % 27.2 % 15.5 % 55.0 % Foreign exchange rates impact (1.2)% (0.9)% 2.4 % 1.4 % 5.8 % Revenue Growth at Constant Currency Including Worldpay Captive 31.1 % 21.0 % 29.6 % 16.9 % 60.8 % Impact of Worldpay Captive - 3.2 % 0.8 % 3.2 % - Proforma Revenue Growth Rate at Constant Currency Excluding Worldpay Captive 31.1 % 24.2 % 30.4 % 20.1 % 60.8 % Reconciliation of Adjusted Profit Before Tax and Adjusted Profit for the Period £ in 000s Profit/ (Loss) before Tax 30,100 25,256 54,355 8,725 24,922 Adjustments: Share based compensation expense 12,022 15,663 24,427 5,931 9,158 Discretionary EBT bonus - 27,874 - - - Amortization of acquired intangible assets 3,472 4,075 6,725 1,166 2,461 Foreign currency exchange (gains) losses, net (2,945) (2,054) 6,546 2,412 (1,757) Initial public offering expensses incurred 1,055 - - - - Secondary offering expenses incurred 1,009 - - - - Stamp duty on transfer of shares 10 - - - - Sarbanes-Oxley compliance readiness expenses incurred 1,440 - - - - Fair value movement of contingent consideration 5,805 - - - - Net gain on disposal of subsidiary - (2,215) - - - Total Adjustments 21,868 43,343 37,698 9,509 9,862 Adjusted Profit Before Tax 51,968 68,599 92,053 18,234 34,784 Margin % (Adjusted Profit Before Tax as a percentage of Revenue) 18.0 % 19.5 % 20.6 % 19.2 % 23.6 % Profit/ (Loss) for the Period 24,007 21,410 43,441 6,708 20,545 Adjustments: Adjustments to profit before tax 21,868 43,343 37,698 9,509 9,862 Tax impact of adjustments (3,969) (8,787) (7,241) (1,550) (2,107) Adjusted Profit for the Period 41,906 55,966 73,898 14,667 28,300 Reconciliation of Net Cash from Operating Activities to Adjusted Free Cash Flow Net Cash from Operating Activities 35,348 40,243 88,352 21,470 19,909 Adjustments: Grant received 1,784 888 228 309 1 Net purchase of non-current assets (tangible and intangible) (7,326) (9,685) (5,920) (576) (3,450) Adjusted Free Cash Flow 29,806 31,446 82,660 21,203 16,460 Margin % (Adjusted Free Cash Flow as a percentage of Revenue) 10.4 % 9.0 % 18.5 % 22.3 % 11.2 % SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION TWELVE MONTHS ENDED JUNE 30 THREE MONTHS ENDED SEPTEMBER 30
