Burford Capital Limited · LSE:BUR
Burford Capital — H1 2019 Earnings Presentation
19 slides from Burford Capital's earnings presentation, Jul 25, 2019
Slide 1: Investor Presentation 1H 2019 Results
INVESTOR PRESENTATION 1H 2019 RESULTS 25 JULY 2019 This presentation is for the use of Burford’s public shareholders and is not an offering of any Burford private fund.
Slide 2: Highlights
Highlights Income Profit After Tax Cash Receipts Increase in income ($ in millions) ($ in millions) ($ in millions) $287 $225 $310 $299 $205 $166 $176 $126 $143 $186 Increase in PAT $76 $101 $104 $53 $184 $41 $24 Increase in total assets 1H15 1H16 1H17 1H18 1H19 1H19 1H15 1H16 1H17 1H18 1H19 1H19 1H
Slide 3: New investment commitments and deployments
New investment commitments and deployments • Burford committed more capital than ever before in a half-year period: $751 million, a 36% increase (1H 2018: $553 million) • Core litigation finance commitments saw impressive growth: $381 million, a 47% increase (1H 2018: $259 million) - Commitments inc
Slide 4: Burford's evolution
Burford’s evolution LEGAL RISK MANAGEMENT New 1H 2019 investment commitments CORE LITIGATION FINANCE 2% 7% • Burford Worldwide Insurance Limited • Financing to corporate clients and law created to provide global, large dollar 15% firms against value of legal claims adverse cost coverage 51% • Client
Slide 5: Burford invests broadly across the legal industry
Burford invests broadly across the legal industry located around the world $1,612 $2.8 billion current investment portfolio ($ in millions) $128 $395 Balance sheet investments Funds and other vehicle investments qualified in US, UK, Australia, Germany, Switzerland, Hong Kong and Israel SWF investmen
Slide 6: Demand continues to increase
Demand continues to increase • Surveyed more than 500 CFOs and senior finance professionals from the US, UK and Canada “How likely would you be to “Our company has chosen to forgo “Legal cost management is an urgent recommend litigation finance to your claims due to impact of associated issue for co
Slide 7: Innovation continues
Innovation continues CONTINUED DEVELOPMENT OF SECONDARY MARKET Burford sold a further 10% of its Petersen entitlement for $100 million implying a $1 billion valuation for Burford’s entire entitlement - 11 investors participated in this secondary sale and more than 40 investors have participated in t
Slide 8: Investment commitments across the business
Investment commitments across the business Balance sheet Fund and other vehicle Sovereign wealth fund Total ($ in millions) commitments commitments commitments commitments Single case finance $40.4 11% $21.6 8% $18.6 17% $80.6 Investments subject to binary legal risk, such as financing the costs of
Slide 9: Large and widely diversified balance sheet portfolio
Large and widely diversified balance sheet portfolio Balance sheet portfolio Balance sheet investment portfolio ($ in millions) 5% 8% $773 $2,404 17% $1,631 70% Recourse/ Current Undrawn Total investment Total Portfolio Single ComplexComplex Asset investments commitments portfolio investment case st
Slide 10: Balance sheet: Concluded core litigation investments
Balance sheet: Concluded core litigation investments • $1.2 billion in recoveries from investments Portfolio returns Investment recoveries & weighted average duration of concluded portfolio made on Burford’s balance sheet ($ in millions) 98% 2.0 $1,500 • Recoveries generated profits of $573 million
Slide 11: Balance sheet: Concluded core litigation investments
Balance sheet: Concluded core litigation investments 11
Slide 12: Investment management business
Investment management business • Burford is the largest investment manager focused on legal finance • Burford has 8 funds with $2.8 billion in AUM* - 4 of the funds are actively investing capital and 4 are in harvest mode • Burford closed a new $300 million Burford Alternative Investment Fund (“BAIF
Slide 13: Cash bridge
Cash bridge 1H 2019 cash waterfall ($ in millions) $297 $277 $171 Cash balance Cash Operating Finance Investment Net change in Cash balance Investment Cash balance with at beginning generated expenses costs + deployments receivables and at 30 June 2019 receivables paid paid investment of year from o
Slide 14: Burford's broad-based capital structure
Burford’s broad-based capital structure Core litigation finance investments • 25% balance sheet, 50% SWF partnership, 25% BOF now allocated: • Between direct allocation and SWF allocation, the balance sheet ends up with 42% of investment and is entitled to 60% of the profits generated from the inves
Slide 15: Appendix
[Burford Appendix
Slide 16: Statement of comprehensive income
Appendix | Statement of comprehensive income 16 Reconciliation of consolidated statement of comprehensive income For the six months ended 30 June 2019 Consolidated uss000 Investmentincome Investment management income Ineurance income New intathves income other Thirparty (gains in consolidated ‘otal
Slide 17: Appendix
Appendix * Elimination of third-party interests is the net of the entities and adjustments and eliminations figures shown in Note 16 to the consolidated financial statements. Notes 7 and 8 to the consolidated financial statements also provide a reconciliation of the investments and due from settleme
Slide 18: Notice and disclaimer
Notice and disclaimer This presentation (“Presentation”) does not constitute or form part of, and should not be construed as, an issue for sale or subscription of, or solicitation of any offer or invitation to subscribe for, underwrite or otherwise acquire or dispose of any securities of Burford Cap
Slide 19: | Burford
| Burford