Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — IMF Bentham — H1 FY2018 Earnings Presentation
22 slides from Omni Bridgeway's earnings presentation, February 2018
Slide 1: FY2018 Half Year Results Investor Presentation
FY2018 Half Year Results February 2018 Investor Presentation
Slide 2: Disclaimer
DISCLAIMER The material in this presentation has been prepared by IMF Bentham Limited (IMF) and is general background information about IMF's activities. The information is given in summary form and does not purport to be complete. This presentation is provided for general information purposes.
Slide 3: Summary
SUMMARY During the course of the last half of the year, IMF launched two funds to provide non-recourse leveraged capital for funding investments in jurisdictions outside of the US (RoW Funds) The RoW Funds are a further step in the transition from investing entirely on IMF’s balance sheet to inv
Slide 4: Overview of IMF Bentham Limited
OVERVIEW OF IMF BENTHAM LIMITED IMF’s strategic focus has been to diversify risk in its investments, geography and capital sources. H1FY18 reflects the execution of that strategy. IMF Fast Facts Detail A leading global litigation Listed on ASX in 2001. IMF has collected more than $2.1 billion for
Slide 5: Financial Results Overview
FINANCIAL RESULTS OVERVIEW 1HY 2018 2HY 2017 1HY 2017 2HY 2017 v 1HY 2018 Contract Income $48.8M $46.6M $66.7M ▲5% Litigation Expenses 1 $(36.1)M $(23.7)M $(35.6)M ▼52% Net Income (from cases) $12.7M $23.0M $31.1M ▼45% Other income (foreign exchange & interest) $0.1M $(2.4)M $5.4M ▲104% Net Operatin
Slide 6: Sources and Uses of Funds
SOURCES AND USES OF FUNDS 1HY 18 2HY 17 1HY 17 $M $M $M Cash inflows from operating activities Proceeds from litigation funding - settlements, fees and reimbursements 80 17 99 Cash outflows from operating activities Payments to suppliers and employees (27) (21) (21) Income tax paid (11) (2) (10) Net
Slide 7: Sale of US Portfolio
SALE OF US PORTFOLIO On 5 February 2018, IMF announced the sale of the majority of its investments in its US investment portfolio to Fund 1, and the upsizing of Fund 1 to US$166.3 million IMF has received gross consideration of US$57.4 million of which IMF invested US$9.6 million as its pro rata
Slide 8: Balance Sheet Strength
BALANCE SHEET STRENGTH 1 2 3 1. IMF raised capital during FY2016 totalling $32 million through the issue of fixed rate notes. IMF raised capital during FY2017 totalling $40 million through the issue of fixed rate notes. HY18 Cash and Net Assets includes pro forma amount for net cash realised after s
Slide 9: HY2018 Operational Highlights
HY2018 OPERATIONAL HIGHLIGHTS 1HFY18 applications are consistent with 1HFY17, notwithstanding the increased level of competition in each jurisdiction Potentially reflect some seasonality, particularly with the US operations Expanded footprint in Asia, Canada and Europe to increase opportunitie
Slide 10: IMF's Track Record of Success
IMF’s TRACK RECORD OF SUCCESS $2.1 billion $1.3 billion Revenue Summary Total recoveries Returns for funded Revenue to funded claimants $1,347M 62% claimants Revenue to IMF: SETTLEMENTS Reimbursement of funded amounts (40%) $335M 15% WON Net income (excluding overheads) (60%) $502M 23% 90% 2.6 years
Slide 11: Cases and Commitments
CASES AND COMMITMENTS Growth derived from: Increase in number of Investment Managers Maturing offices in North America, Asia and Europe Launch of new product offerings for corporates Increased targets for funding for Investment Managers 11
Slide 12: Investment Portfolio at 31 December 2017
INVESTMENT PORTFOLIO AT 31 DECEMBER 2017 Increase in number of investments currently funded to 77 3 further investments conditionally funded, and 7 investments approved for funding by the Investment Committee at 31 December 2017 12
Slide 13: Investment Portfolio at 31 December 2017
INVESTMENT PORTFOLIO AT 31 DECEMBER 2017 (see Notes) IMF Group (RoW), Fund 2 and Fund 3 – Estimated Portfolio Value Possible Possible Possible completion Number of EPV completion completion FY2020 and investments $m FY2018 FY2019 later $m $m $m IMF Group (RoW) 28 1,528.1 576.5 548.2 403.4 Fund 2 and
Slide 14: IMF Capital Plans
IMF CAPITAL PLANS IMF has now launched three funds for investments; Fund 1 in the US and the RoW Funds (Fund 2 and Fund 3) After the end of half-year, IMF sold the majority of its balance sheet investments in the US to Fund 1 which now has headroom capacity of $45.3M IMF will commence consider
Slide 15: US Fund - Commitments, Deployed, Capacity
US FUND - COMMITMENTS, DEPLOYED, CAPACITY Rate of commitment was on schedule prior to sale of investments to Fund 1 Fund 1 structured to accommodate sale of balance sheet investments Investments were subjected to third-party due diligence, and accepted by Fortress, endorsing the quality of the
Slide 16: RoW Funds Commitments, Deployed, Capacity
RoW FUNDS COMMITMENTS, DEPLOYED, CAPACITY RoW Funds commenced in October 2017, and is ahead of schedule in terms of commitments The contribution from non-Australian investments is ahead of schedule, and may require an increase in geographic caps, or the launch of a new, non-Australian fund 16
Slide 17: Strategy
STRATEGY IMF has identified significant opportunities for growth and risk diversification. Item Opportunity Major growth opportunities Focus on development of corporate funding in all jurisdictions Only funder in Australia with infrastructure to manage group claims Recommenced operations in Lo
Slide 18: Concentration Risk Issues
CONCENTRATION RISK ISSUES Over the past two and a half years IMF has focused on transitioning away from idiosyncratic risk to systemic risk of a portfolio, which has been reflected in the increased number of investments, across a broader range of case types, sizes and jurisdictions There remains
Slide 19: Key Risks - IMF
KEY RISKS - IMF Item Description Investments in cases which are If a funded case is lost, IMF will lose not only its investment but may, in jurisdictions in which the lost “loser pays” rule applies have to pay the defendant’s costs. Portfolio concentration risk IMF’s financial performance in eac
Slide 20: Worldwide Funding Solutions
Worldwide Funding Solutions QUEBEC SAN FRANCISCO CITY LONDON TORONTO LOS ANGELES NEW YORK HOUSTON HONG KONG SINGAPORE BRISBANE PERTH SYDNEY ADELAIDE MELBOURNE IMF is one of the most experienced and successful litigation funding companies in the world. We are pioneers of the litigation funding indust
Slide 21: Notes to Investment Portfolio at 31 December 2017
NOTES TO INVESTMENT PORTFOLIO AT 31 DECEMBER 2017 Notes to the Group’s Investment Portfolio Investments Included in Portfolio The Investment Portfolio includes investments for which the IMF group or the Funds have entered into an unconditional commitment to fund and includes investments where a prev
Slide 22: Contact details
Website: www.imf.com.au Email: info@imf.com.au Telephone: 1800 016 464