Burford Capital Limited · LSE:BUR
Burford Capital — H1 2017 Earnings Presentation
16 slides from Burford Capital's earnings presentation, Jul 27, 2017
Slide 1: Investor Presentation: Burford Capital Limited 1H 2017 Results
Investor Presentation Burford Capital Limited 1H 2017 Results This presentation is for the use of Burford’s public shareholders and is not an offering of any Burford private fund.
Slide 2: Burford Capital is the titan of litigation finance – Bloomberg
“Burford Capital is the titan of litigation finance.” – Bloomberg 30 May 2017
Slide 3: 1H 2017 Highlights
1H 2017 Highlights Income Profit after tax* Cash receipts $ in millions $ in millions $ in millions 175.5 142.7 173.7 94.7 98.8 76.2 52.8 40.6 42.2 27.4 23.7 21.9 19.5 16.6 8.4 1H13 1H14 1H15 1H16 1H17 1H13 1H14 1H15 1H16 1H17 1H13 1H14 1H15 1H16 1H17 3.05¢ $488m £175m NEW COMMITMENTS INTERIM SUCCES
Slide 4: Equity highlights
Equity highlights • $2.7 billion market capitalisation (£2.0 billion) • Total shareholder return – Six months since January 2017: 72% – Since 2009 IPO: 1,040%; 37% annualised • 24 members of management team own 14% of shares outstanding – Share-based LTIP launched for all employees • Liquid, tradeab
Slide 5: Record-setting income
Record-setting income Generated more income and profit in the first six months of 2017 than Burford has ever generated before in a full year of operation $163.4m $175.5m $103.0m $82.0m $60.7m $76.2m $40.6m $27.4m $19.5m 2013 2014 2015 2016 1H2017 First six months of income Annual income 5
Slide 6: Continued growth in cash generation
Continued growth in cash generation “ Cash generation across the business $185.7m $7.4m $4.6m Burford Capital has reported record earnings. $125.1m And the company is deploying its $7.8m $173.7m investments in increasingly audacious ways, $103.9m $5.1m marking a bold scaling up for the New York- bas
Slide 7: Secondary market transaction: Petersen claims
Secondary market transaction: Petersen claims Sold 25% interest for $106 million cash in an asset in which Burford has invested ~$18 million while retaining a 75% interest • In late 2016 and early 2017 Burford sold 10% of its interest for $40 million to a number of institutional investors valuing Bu
Slide 8: Teinver: Significant success in 2010 vintage
Teinver: Significant success in 2010 vintage Burford’s entitlement from arbitration award estimated to be around $140 million • Arbitration tribunal released decision on 21 July 2017 against Argentina for $324 million plus interest in connection with airline expropriation. • Current investment appro
Slide 9: Balance sheet investments: Scale and diversification
Balance sheet investments: Scale and diversification $400m $1,151m $751m Current Undrawn Investment investments commitments portfolio 9
Slide 10: Burford: Global leader in finance for law
Burford: Global leader in finance for law The combination of Burford and GKC is proving to be as potent as we had hoped • Combined firm has $3.1 billion invested in and available for legal finance – $1.4 billion in Burford direct investing (portfolio + available cash) – $1.7 billion AUM in investmen
Slide 11: Record-breaking 1H 2017 commitments
Record-breaking 1H 2017 commitments Upfront Multiple Ownership Balance Fund & Other Capital Binary Paths to Interest in Sheet Vehicle Outlay Risk Recovery Asset Commitments Commitments Single case Binary legal risk on a X X $20.4m 9% $14.2m 6% finance single claim investment Legal claim risk with Po
Slide 12: Capitalising the business for future growth
Capitalising the business for future growth Successfully issued 3rd listed bond • Over-subscribed offering that closed in June • Raised £175 million 9½ year debt, 5.0% coupon • Redeemed $43.75 million of acquisition loans – Annual cash savings to Burford of $2.6 million Strong and conservative capit
Slide 13: Summary income statement
Summary income statement $’000 30 June 2017 % change 30 June 2016 Investments income 161,633 65,267 Investment management income 7,534 - Insurance income 4,626 5,113 New initiatives income 897 5,313 Other income 834 522 Total income 175,524 130% 76,215 Operating expenses – investments (10,611) (9,81
Slide 14: Segmental balance sheet – 1H 2017 and 1H 2016
Segmental balance sheet – 1H 2017 and 1H 2016 Other 30 June 2017 Investment Litigation New corporate $’000 Investments management insurance initiatives activity Total Non-current assets 790,756 379 410 3,723 168,729 963,997 Current assets 70,668 1,871 13,755 820 145,365 232,479 Total assets 861,424
Slide 15: Public and private capital combined: Greater versatility, profitability and stability
Public and private capital combined: Greater versatility, profitability and stability Management fees: 1 – 2% Annually Investment returns Burford Capital Performance fees: 15 – 50% Carry (1) Balance Sheet Investment Management Pre-Settlement Post- Other “Litigation Finance” Settlement Investments In
Slide 16: 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