Shine Justice Ltd. · ASX:SHJ
Shine Justice — Shine Corporate — Morgans QLD Conference 2016
21 slides from Shine Justice's conference presentation, Oct 13, 2016
Slide 1: Shine Corporate Ltd Morgans QLD Conference
For personal use only SHINE CORPORATE LTD MORGANS QLD CONFERENCE COURTNEY PETERSEN DANIEL WILKIE MANAGING DIRECTOR & CEO CFO & COMPANY SECRETARY ABN 93 162 817 905 | 14 OCTOBER 2016
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Shine Corporate Ltd and certain plans and objectives of the management of Shine Corporate Ltd. Such forward-looking stateme
Slide 3: For personal use only
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Slide 4: FY16 Overview
For personal use only FY16 OVERVIEW COURTNEY PETERSEN MANAGING DIRECTOR & CEO
Slide 5: Shine Corporate Business Structure
SHINE CORPORATE BUSINESS STRUCTURE For personal use only Shine Lawyers Other subsidiaries > Personal Injury (Motor Vehicle, Workplace, > Personal Injury (Motor Vehicle, Workplace, Public Liability) Public Liability) − Lean, Standard, Major claims − Sciaccas (Qld) − Super & Disability − Stephen Brown
Slide 6: Operating Highlights FY16
OPERATING HIGHLIGHTS FY16 For personal use only > Achieved revised EBITDA and GOCF guidance for FY16 > Disciplined execution – FY16 Ignite (transformation) program implemented > Strengthened operating model: − Work in Progress adequately provisioned – focused on recoverability − Continue to diversif
Slide 7: FY16 Headline Results
FY16 HEADLINE RESULTS For personal use only FY16 REVISED FY16 RESULT GUIDANCE Statutory EBITDA $25.0m $24-$28m Gross Operating Cash Flow $18.8m 40% of EBITDA > Record year for fees billed > Record year for Gross Operating Cash Flow > Net Debt to Equity reduced from 19.0% (31 Dec 15) to 10.9% > Final
Slide 8: Transformation Program Delivered on FY16 Objectives
TRANSFORMATION PROGRAM For personal use only DELIVERED ON FY16 OBJECTIVES STRENGTHEN PROTECT CHAMPION INNOVATE GROW SHINE SHINE THE CLIENT SHINE SHINE > Record fees billed > Strengthened > DePuy class > Established > Successful governance and action settlement Insolvency and new marketing > Improvem
Slide 9: Differentiated Business Model
DIFFERENTIATED BUSINESS MODEL For personal use only > Focused on market for loss recovery > Specialist in compensation or damages based work types > Footprint in key national markets > Expansion through organic growth and responsibly sized value accretive acquisitions 9
Slide 10: Diversification: Broadening Shine Lawyers Revenue Mix
DIVERSIFICATION For personal use only BROADENING SHINE LAWYERS REVENUE MIX INCREASING REVENUE FROM INCREASING REVENUE EMERGING PRACTICE AREAS OUTSIDE OF QLD PI 100% 100% 90% 90% 80% 80% 2016: 62% REVENUE OUTSIDE QLD PI 70% 70% PRACTICE AREA 60% 2016: EMERGING 60% 62 50% PRACTICE AREAS 50% 54 HAVE IN
Slide 11: Other Subsidiaries Performance in FY16
OTHER SUBSIDIARIES PERFORMANCE IN FY16 For personal use only > Improved H2 performance from Subsidiaries – H2 EBITDA up vs H1 > Other subsidiaries’ EBITDA FY15 vs FY16 increase by $3.3m (29%) > Strong cash flow generation SUBSIDIARY OPERATIONAL PERFORMANCE Sciaccas H1 performance impacted by Qld Wor
Slide 12: FY16 Financial Results
For personal use only FY16 FINANCIAL RESULTS DANIEL WILKIE CFO & COMPANY SECRETARY
Slide 13: FY16 Results at a Glance
FY16 RESULTS AT A GLANCE For personal use only AS AT FY16 H1 FY16 H2 FY2016 FY2015 Revenue1 ($m) 64.0 87.5 151.5 150.9 Statutory EBITDA ($m) 2.1 22.9 25.0 44.0 Normalised EBITDA2 ($m) 2.5 23.1 25.6 45.4 Statutory NPAT ($m) 1.3 13.5 14.8 29.6 Normalised NPAT3 ($m) 1.6 13.7 15.3 30.6 Gross operating c
Slide 14: Gross Operating Cash Flow (GOCF)
GROSS OPERATING CASH FLOW (GOCF) For personal use only GOCF $m > GOCF increased from $13m to $18.8m 20 > The increase in GOCF was driven by: 18 − strong billings in May and June 2016 18.8 16 − internal focus on improving timeframes 14 for cash collection 12 13.0 − net disbursement funding grew 10 by
Slide 15: Cash Flow Shine Lawyers
CASH FLOW SHINE LAWYERS For personal use only SHINE LAWYERS: FEES BILLED IN FY16 BY YEAR IN > Work in Progress is realised WHICH WIP PERFORMED in operating cash flow over a number of years (see chart) 2016 30% > The level of operating cash flow is dependent on the overall value of fees billed and op
Slide 16: Balance Sheet
BALANCE SHEET For personal use only AS AT ($M) 30 JUNE 16 30 JUNE 15 STRONG BALANCE SHEET: Cash and receivables 33.4 29.9 > Cash on hand at 30 June increased by $2.7m to $12.1m Work in progress 203.0 190.7 > Net WIP grew by 6.45% or $12.3m to Unbilled disbursements 52.9 48.6 $203m primarily from org
Slide 17: Provisioning Update FY16
PROVISIONING UPDATE FY16 FOCUSED ON EXECUTION For personal use only > Adjustment to WIP and disbursements provisioning methodology and debtors: − One-off $17.5m adjustment in H1 FY16 > Strengthened provisioning methodology: − Provisions against WIP are made monthly based on historical recoverability
Slide 18: FY17 Outlook
For personal use only FY17 OUTLOOK COURTNEY PETERSEN MANAGING DIRECTOR & CEO
Slide 19: Transformation Program FY17 Key Initiatives
TRANSFORMATION PROGRAM For personal use only FY17 KEY INITIATIVES STRENGTHEN PROTECT CHAMPION INNOVATE GROW SHINE SHINE SHINE THE CLIENT SHINE > Refined operating > Improved vendor > Client onboarding > Implement > Stronger focus on model and contract and case selection Enterprise Legal growing Emer
Slide 20: Expectations for Operating Outlook
EXPECTATIONS FOR OPERATING OUTLOOK For personal use only > Legal market continues to be challenging > Strong pipeline from Emerging Practice Areas (in particular class actions) > Continue to seek profitable opportunities for growth organically or by acquisition in Personal Injury or Emerging Practic
Slide 21: For personal use only
For personal use only