Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — Investor Presentation (December 2020)
29 slides from Omni Bridgeway's investor presentation, December 2020
Slide 1: Investor Presentation December 2020
Investor Presentation December 2020
Slide 2: Disclaimer
Disclaimer • The material in this presentation has been prepared by Omni Bridgeway (OBL) and is general background information about Omni Bridgeway's activities. The information is given in summary form and does not purport to be complete. • A number of terms used in this presentation may include, f
Slide 3: Contents
Contents • Executive summary • Leading business model in growth industry • Origination network and investment portfolio • Business model, financial performance, future prospects • Conclusion INVESTOR PRESENTATION | DECEMBER 2020 3
Slide 4: Executive Summary
Executive Summary
Slide 5: Presenting today
Presenting today Executive management team have deep experience of litigation finance Andrew Saker Stuart Mitchell Jeremy Sambrook Managing Director and CEO Group Chief Financial Officer Group General Counsel and Company PERTH SYDNEY Secretary PERTH T: +61 8 9225 2300 T: +61 2 8223 3518 T: +61 8 922
Slide 6: Who we are
Who we are World’s largest litigation funder by headcount and geographic footprint • Listed 2001 (IMF Bentham) – 19 years of solid growth and performance • IMF Bentham and Omni Bridgeway merger 2019 – forming the Omni Bridgeway Group • Omni Bridgeway invests via a mix of on-balance sheet and off-bal
Slide 7: What we do
What we do Tailored solutions from case inception to collection Present Future Merits funding Claims monetisation • Single claims • Judgment / Award acquisition • Working capital Downside risk management • Seed funding • Indemnity / ATE cover Portfolios Distressed Debt Investing • Corporates and law
Slide 8: Lifetime metrics: one of the longest and highest return track records in litigation finance
Lifetime metrics: one of the longest and highest return track records in litigation finance 18 10 160+ 25+ 1,029 725 304 A$2.2b Cities Countries Specialists Languages Total Completed Active Funds under investments2, 3, 4, 5 investments2, 3, 4, 5 investments5 management 37% 89% A$3.1b Total recoverie
Slide 9: Leading business model in growth industry
Leading business model in growth industry
Slide 10: Litigation finance: a large and rapidly growing market
Litigation finance: a large and rapidly growing market UNITED KINGDOM CANADA $20.5b $2.8b $1.4b UNITED STATES $43.3b $11.4b $5.7b ASIA $347.6b $125.1b $62.8b $2.9b AUSTRALIA $15.4b $3.1b $1.6b Estimated addressable market Total market legal spend (US$) Estimated litigation portion of total legal spe
Slide 11: Regulatory liberalisation and market acceptance driving industry momentum
Regulatory liberalisation and market acceptance driving industry momentum Litigation Funder Third Party Funding Legislation (Hong Kong) > US$9.5 billion AUM6 (US alone) Code of Conduct Administrative Insolvency practitioners IMF first publicly listed Fostif (UK) Resolution Supreme Court can use TPF
Slide 12: 2015-2020 Business Plan executed, driving stock outperformance
2015-2020 Business Plan executed, driving stock outperformance OBL share price vs. ASX 200 index (rebased to 100) 300 250 200 150 100 50 • Investment into infrastructure over past five years to develop platform for future of business OB ASX 200 • Diversification of risk was a critical strategic prio
Slide 13: 2020-2025 Business Plan to drive growth across geography and across products
2020-2025 Business Plan to drive growth across geography and across products Jurisdictional coverage • New markets include New Zealand, Latin America, Asia (South Korea, Japan and India) and Africa • Existing market expansion includes Canada and US Leverage scale in new and existing markets Investme
Slide 14: Reviewing our international listing options, including potential LSE
Reviewing our international listing options, including potential LSE Our opportunities: Medium term access to • Review designed to test various options in relation to growth capital / international listing venue, including dual vs sole expansion • Litigation finance continues to grow dynamically as
Slide 15: Origination network and investment portfolio
Origination network and investment portfolio
Slide 16: Market-leading origination, monitoring and enforcement network
Market-leading origination, monitoring and enforcement network Geographic expansion Current locations Proposed locations Organic Agents Litigation Capital Omni Bridgeway Augusta Burford Harbour Longford Parabellum Therium Woodsford Management Fund size (~US$m) $1,500 330 $2,900 $1,000 $220 $1,000 $6
Slide 17: Strength reflected in rapidly growing applications and commitments
Strength reflected in rapidly growing applications and commitments Funding applications continue to grow year-on-year as our geographic expansion takes hold. Investments from year-to-year largely track funding commitments. Funding Applications Funding Commitments1 1,400 1,296 400 700 1,200 350 600 9
Slide 18: Highly diversified portfolio of cases
Highly diversified portfolio of cases EPV by Geography EPV by Investment Type 1% 1% 1% 6% 2% 10% 10% 27% 43% 11% 18% 13% 21% 23% 13% Commercial Multi Party United States UK & EMEA Australia Arbitration OBE Group Patent Law Firm Asia Canada Insolvency Corporate Funding Whistleblower Other (Appeal, De
Slide 19: Business model, financial performance, future prospects
Business model, financial performance, future prospects
Slide 20: Simple business model
Simple business model • Managing ~US$1.5bn of capital across 7 Funds Management and transaction • Existing LPs are high quality international investors fees on AUM • Generating management and performance fees across all Funds • Deploying our own capital via co-investment in each Fund Return on Co-In
Slide 21: Committed capital at September 2020
Committed capital at 30 September 2020 Distributional entitlements to investors Distributional entitlements to OBL Capital Returns Capital Returns and fees EPV Commence date Fund size Committed A$m A$m A$m A$m A$m Fund 1 10-Feb-17 USD 172m 100% 77.7 43.5 58.5 6.5 2,666.1 Funds 2 & 3 3-Oct-17 AUD 180
Slide 22: FY21, FY22 and FY23 expected to be strong years for realisations
FY21, FY22 and FY23 expected to be strong years for realisations Quarterly portfolio update 30 September 2020 Possible Completion EPV AUD million FY21 FY22 FY23 FY24+ Total Balance Sheet 588.9 264.1 259.3 1.0 1,113.3 Fund 1 1,150.9 978.0 248.3 288.9 2,666.1 Funds 2 & 3 674.7 1,604.5 786.0 31.5 3,096
Slide 23: Balance sheet strength and investment portfolio
Balance sheet strength and investment portfolio 312.2 Cash & Net Receivables Net Assets ($m) ($m) 767.2 217.6 139.1 142.4 515.5 141.8 367.8 • Material growth in all key metrics including 201.4 206.3 income, liquid assets, net assets, investments and portfolio. FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18
Slide 24: Historic Earnings
Historic Earnings Revenues Profit after tax ($m) ($m) 314.3 20.9 15.4 17.6 • Earnings might fluctuate year-on-year but FY18 FY19 this franchise builds fundamental balance 103.2 116.3 FY16 FY17 FY20 sheet value. 77.8 (7.8) 45.0 • With case duration of c.3 years, FY20 is the first year to materially e
Slide 25: Investment Commitments p.a (A$m)
FUM target by year 6,000 1,200 Investment Commitments p.a (A$m) 5,000 1,000 FUM (A$m) 4,000 800 3,000 600 2,000 400 1,000 200 - - FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 (target) (target) (target) (target) (target) FUM (Actual & Potential New Funds) NET Investmen
Slide 26: Conclusion
Conclusion
Slide 27: Conclusion
Conclusion A listing in London is being Best practice origination, reviewed and would give underwriting and the group access to the enforcement model capital required to fuel growth The global leader in financing and Litigation finance industry managing legal risk Multi-faceted model that continues
Slide 28: Risk Mitigation
Risk Mitigation Risk Potential impact Strategic response PORTFOLIO Potential for a funded case to be lost = Omni Bridgeway • Deliberate transition from idiosyncratic risk to systemic risk of a portfolio CONCENTRATION investment lost and exposure to adverse costs • Portfolio represents increased numb
Slide 29: Glossary of Terms and Notes
Glossary of Terms and Notes ESTIMATED PORTFOLIO VALUE (EPV) EPV for an investment where the funding entity earns: (i) a percentage of the resolution proceeds as a funding commission, is the current estimate of the investment’s recoverable amount after considering the perceived capacity of the defend
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