Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — H1 FY2021 Earnings Presentation
18 slides from Omni Bridgeway's earnings presentation, Feb 24, 2021
Slide 1: Half-Year Results FY2021
Half-Year Results FY2021 Half-Year Ended 31 December 2020 From Subject Received Size Categories Ken Epstein RE: Offering Valuation Opinions of Legal Assets 5/11/2020 355 KB
Slide 2: First Half Summary
First Half Summary Financials: Non-Financial: • Statutory loss attributable to: OBE: • Provision for impairment • The acquired EMEA business has exceeded its first year new growth target • Foreign exchange adjustments by 80%, entitling the sellers to their full first year variable consideration paym
Slide 3: Westgem and Fund 4 Impairments
Westgem and Fund 4 Impairments • Previously announced setbacks in two key investments that have been required to be impaired to comply with accounting standards. As both investments have positive prospects of success on appeal, commercially these investments are retained in full in our analysis of E
Slide 4: Statutory Overview
Statutory Overview 1HY 2021 2HY 2020 1HY 2020 2HY 2019 $m $m $m $m Litigation Contract Income 43.9 114.7 142.8 19.7 Revenue from cases - 22.7 8.7 - Litigation Expenses (34.2) (67.2) (99.9) (25.3) Net gain / (loss) from investments 9.7 70.2 51.6 (5.6) Management & Performance Fees 1.4 0.9 0.5 0.1 Oth
Slide 5: Sources and Applications of Cash
Sources and Applications of Cash 1HY 2021 2HY 2020 1HY 2020 2HY 2019 • IFRS reporting does not necessarily represent the cash $m $m $m $M generating capacity of the business given revenue recognition Cash generation principles and capitalisation of certain expenses into intangibles. Proceeds: – from
Slide 6: Operating Expenditure (excluding impairments)
Operating Expenditure (excluding impairments) 1HY 2021 2HY 2020 1HY 2020 2HY 2019 • Operating expenditure has remained $m $m $m $m As per Profit and Loss Statement reasonably flat from last half. Claims portfolio expense (0.6) (8.3) (6.2) - • Significant increase in other expenses relates Finance co
Slide 7: Balance Sheet Strength and Investment Portfolio
Balance Sheet Strength and Investment Portfolio Cash and Net Receivables ($m) Net Assets ($m)1 799.2 788.4 350 329.1 300 243.3 249.6 250 525.5 191.7 185.9 191.7 200 367.8 150 201.4 206.3 100 50 0 FY16 FY17 FY18 FY19 FY20 HY21 FY16 FY17 FY18 FY19 FY20 HY21 Balance Sheet Fund 1 Funds 2&3 Fund 4 Fund 6
Slide 8: Movements in Investments
Movements in Investments • The decrease in intangibles carrying Intangibles Movements value is attributable to the two material impairments, derecognition of completed matters and FX adjustments • During the period the net increase of new investments and additions to existing investments exceeded co
Slide 9: Conversion rates and EPV on completions
Conversion rates and EPV on completions • LTCR after losses has remained above our historical LTCR over Long term conversion rate and EPV ($b)1,2 the past several periods • EPV conversion has been lumpy throughout the period, 30% 3.1 29% 2.9 reflecting the transition from balance sheet investor to f
Slide 10: Actual and anticipated revenue from completions to date
Actual and anticipated revenue from completions to date Possible Completion EPV A$m Funds EPV Balance A$m FY2021 FY2022 FY2023 FY2024+ Income AUD million Sheet 1 2 &3 4 5 6 7 Total Balance Sheet 1,063.2 469.5 335.2 257.6 0.9 FY 2021 Fund 1 2,384.3 67.7 1,756.7 291.7 268.2 Recognised income Funds 2 &
Slide 11: Total Portfolio Diversification
Total Portfolio Diversification EPV by Geography EPV by Investment Type 8% 12% 15% 33% 3% 20% 14% 7% 3% 6% 7% 21% 4% 33% 14% Asia Australia Canada EMEA United States Antitrust and competition law Bank and Capital Market law – Securities claims Bilateral investment treaty Breach of contract OBE Group
Slide 12: Fund Summary
Fund Summary Investors Omni Bridgeway Possible Completion EPV A$m Legal ROIC (excl. IRR (excl. Capital Returns Capital Fees EPV $ Weighted outcome overheads overheads Fund size Committed A$m A$m A$m A$m A$m FY2021 FY2022 FY2023 FY2024+ # average (%) (%) (%) (%) Fund 1 USD 172m 100% 72.1 44.2 54.3 6.
Slide 13: First Generation Funds
First Generation Funds We have been asked how we analyse the ability of the first generation funds to First Generation Fund EPV1 and LTCR return value to OBL shareholders based on their current portfolios and returns to date. Whilst Omni Bridgeway does not provide earnings guidance or Possible Compl
Slide 14: Outlook
Outlook • Key focus areas for next half include: • Continued geographic and product expansion consistent with our five-year plans • Consideration of follow on fund for Fund 6 given current capacity • Continuing consideration of a potential change of listing venue • Possible relocation to the US in A
Slide 15: Disclaimer
Disclaimer • The material in this presentation has been prepared by Omni Bridgeway 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 including: ROIC, EPV
Slide 16: 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 17: 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
Slide 18: HALF-YEAR RESULTS | FY2021
HALF-YEAR RESULTS | FY2021 18