Shine Justice Ltd. · ASX:SHJ
Shine Justice — FY2023 Earnings Presentation
25 slides from Shine Justice's earnings presentation, Aug 29, 2023
Slide 1: FY23 Results Presentation
Simon Morrison Ravin Raj MANAGING DIRECTOR & CEO CHIEF FINANCIAL OFFICER 29 August 2023 (LICENCED OFFICE) FY23 FY23 Results Results Presentation| 1| 1 Presentation
Slide 2: Shine Justice – Important Notice
Shine Justice – Important Notice This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Shine Justice Ltd and certain plans and objectives of the management of Shine Justice Ltd. Such forward-looking statements inv
Slide 3: Purpose driven, resilient and determined to seek justice for our clients
PURPOSE DRIVEN, RESILIENT AND DETERMINED TO SEEK JUSTICE FOR OUR CLIENTS NPA1 Personal Injury Shine Lawyers Motor vehicle, workplace, Class actions public liability, abuse Superannuation and disability • Shine Lawyers* Head trauma • Sciaccas (QLD) Catastrophic injuries • Stephen Browne (WA) Dust dis
Slide 4: Agenda
Agenda 1 Overview 2 Financial Results 3 Operating Update 4 Strategic Priorities and Outlook 5 Questions FY23 Results Presentation | 4
Slide 5: Simon Morrison, Managing Director & CEO
Simon Morrison Managing Director & CEO (LICENCED OFFICE) FY23 FY23 Results Results Presentation| 5| 5 Presentation
Slide 6: Key Financial Metrics
Revenue NPAT $231.64m $3.31m +7.67% -89.39% Key Financial Adjusted EBITDA 1 GOCF1 Metrics $61.61m -2.35% -$3.91m -110.69% Total Dividend (unfranked) EPS (basic) 1.5c 1.92c -75% -89.34% 1 EBITDA and GOCF are not IFRS calculations which appear in the financial statements and have not been audited. Adj
Slide 7: Overview
Overview Learnings Achievements Intentions - Post covid fatigue still present - QLD core PI business continues to be a - FY24 will show significant - Delayed settlements / approvals significant contributor to Group results improvement in cashflow affected cashflows significantly - Settled 6 class ac
Slide 8: Past Four-Year Performance
Past Four-Year Performance 231.6 215.1 187.2 183.0 51.1 55.2 63.1 61.6 FY20 FY21 FY22 FY23 Actual Actual Actual Actual * EBITDA ($'m) Revenue ($'m) * FY23 is Adjusted EBITDA FY23 Results Presentation | 8
Slide 9: Healthy Forward Book of Work
Healthy Forward Book of Work 58% complete 53% complete 55% complete 630 671 69% complete 538 441 386 305 299 332 FY20 FY21 FY22 FY23 Actual Actual Actual Actual WIP ($'m) TOTAL Cabinet (Est Fee $'m) NB: Values shown are for current and active workbook only and exclude settled, and on pause matters F
Slide 10: Ravin Raj, Chief Financial Officer
Ravin Raj Chief Financial Officer FY23 FY23 Results Results Presentation| 10 Presentation | 10 (LICENCED OFFICE)
Slide 11: Financial Results – Detailed Profit and Loss
Financial Results – Detailed Profit and Loss FY23 ($m) FY22 ($m) Variance (%) Revenue 1 231.64 215.13 ↑ 7.67 NPAT 3.31 31.21 ↓ 89.39 ↓ 2.35 1,2 Adjusted EBITDA 61.61 63.09 ↑ 10.50 1 Employee Benefits Expense 123.30 111.58 ↑ 19.52 1 Overheads 69.93 58.51 1 Discontinued operations (Emanate) eliminated
Slide 12: Earnings
Earnings FY23 FY22 Variance (%) Earnings per share 1.92 18.02 ↓ 89% • EPS impacted by Ethicon adjustment (cents) • No final dividend due to low cash conversion Final dividend in FY23 0.00 3.50 ↓ 100% per share (cents) Full year dividend 1.50 6.00 ↓ 75% per share (cents) FY23 Results Presentation | 1
Slide 13: Normalised EBITDA Bridge
Normalised EBITDA Bridge 67,000 445 66,000 4,186 65,000 Adjusted EBITDA $m 64,000 63,000 66,231 62,000 61,000 61,600 60,000 59,000 Reported Adjusted EBITDA Adverse / Delayed Subsequent Balance Sheet Adjustments Normalised EBITDA Events FY23 Results Presentation | 13
Slide 14: Financial Results – Balance Sheet
Financial Results – Balance Sheet AS AT ($’000) 30 June 23 30 June 22 Cash 21,088 51,864 Receivables 13,332 15,754 Work in progress 380,581 332,476 Unbilled disbursements 89,404 104,249 PP&E and other 19,408 15,739 Intangibles 47,068 46,998 • Cash in hand reduction due to low cash Right of Use Asset
Slide 15: Financial Results – Gross Operating Cash Flow
Financial Results – Gross Operating Cash Flow 60.0 54.6 50.0 20.9 40.0 34.6 31.3 30.7 30.0 21.9 GOCF $m 19.2 21.5 21.6 20.0 18.7 24.7 24.0 13.0 15.4 10.0 15.2 14.0 9.7 13.1 12.1 3.3 3.5 5.2 6.5 6.6 6.7 5.0* 0.0 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 -8.9 -10.0 -3.9 FY23 -20.0 1H 2H Ethicon Proceeds
Slide 16: Gross Operating Cash Flow Bridge (GOCF)
GOCF $m Gross Operating Cash Flow Bridge (GOCF) FY23 Results Presentation | 16
Slide 17: Simon Morrison, Managing Director & CEO
Simon Morrison Managing Director & CEO FY23 FY23 Results Results Presentation| 17 Presentation | 17 (LICENCED OFFICE)
Slide 18: Diversity in Class Action Portfolio
Diversity in Class Action Portfolio Current Class Actions Filed FY23 Class Actions Under Class Actions Investigation 12% 8% 7% 12% 8% 33% 33% 36% 21% 12% 27% 7% 23% 33% 29% Employment Product Liability2 Indigenous Interest Financial Services1 Securities Travel Other3 40 Class Actions commenced, in t
Slide 19: Ten-Year Company Performance
Ten-Year Company Performance # of Offices & Staff # Clients & Fee Earner FTEs 60 1,200 14,000 700 50 1,000 12,000 600 Fee Earner FTEs 10,000 500 # of Offices # of Clients 40 800 Total Staff 8,000 400 30 600 6,000 300 20 400 4,000 200 10 200 2,000 100 - - - - FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 F
Slide 20: FY23 Results Presentation
FY23 FY23 Results Results Presentation| 20 Presentation | 20 (LICENCED OFFICE)
Slide 21: GOCF Outlook
GOCF Outlook • Strategies to improve FY24 cash flow • H1 cash to be boosted by Class Actions settlements Class Action Receipts • Multi-site Contamination Class Action $123 million settlement approved by Federal Court on 25 August 2023, including fees to Shine of $8.45m Cost BAU Reduction Operations
Slide 22: Reset Cost Base for Growth and Efficiency
Reset Cost Base for Growth and Efficiency Footprint • Refocus on PI and CA market share Initiatives underpin future EBITDA • Reset total cost structure • Commenced broad review of business and programs • Improved marketing strategies • Simplify business structure and operations Working Capital • Tar
Slide 23: FY23 Results Presentation
FY23 FY23 Results Results Presentation| 23 Presentation | 23 (LICENCED OFFICE)
Slide 24: Sustainability and Community
Sustainability and Community Supporting Community We actively support charitable and not-for-profit organisations that deliver meaningful contributions to communities and align with the Group’s Purpose and Values. This includes: • Continuation of our Shine A Light Foundation, supporting charitable o
Slide 25: Personal Injury Update: Shine Continues to Grow Market Share
Personal Injury Update: Shine Continues to Grow Market Share Shine Justice 9.4% $2B Industry at a glance Revenue Allegro Funds p.a (Slater & Gordon) 8.4% Products & Services Segmentation Maurice Blackburn 7.4% 35.5% 36.5% 28.0% Motor Workplace Other vehicle injuries personal accidents injury claims