Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — H1 2022 Earnings Presentation
26 slides from Omni Bridgeway's earnings presentation, Feb 18, 2022
Slide 1: 1H22 Results
1H22 Results 18 February 2022
Slide 2: Agenda
1H22 RESULTS | FEBRUARY 2022 1 Highlights 2 Financial results 3 Portfolio performance 4 Strategy 5 Annexure Further information on terms used in this announcement is available at https://omnibridgeway.com/investors/omni-bridgeway-glossary ("Notes" and “Glossary”). The Notes and the Glossary contain
Slide 3: Result snapshot
1H22 RESULTS | FEBRUARY 2022 Highlights Result snapshot For the 6 months ended 31 December 2021 Financial results Record first half income New commitments2 Funds under management $127.1m $190m ~$2.4bn Driven by 31 completions 37% of FY22 target with 40% yet to be committed and a 2Q22 skew plus $151m
Slide 4: Record first half income production
1H22 RESULTS | FEBRUARY 2022 Highlights Record first half income production • $127m income achieved from diversified sources in 1H22 generating more stable income with 3Q22 completions looking strong Financial results • There have been numerous successful judgments and agreed settlements that may ge
Slide 5: Financial results
1H22 RESULTS | FEBRUARY 2022 Highlights Financial results Change $m 1H21 1H22 from 1H21 Litigation investments – intangible proceeds 43.9 108.6 147% ▲ Litigation investments – claims portfolio proceeds <0.1 3.4 Litigation investments – purchased claims proceeds <0.1 3.6 Financials Financial results
Slide 6: Investment income
1H22 RESULTS | FEBRUARY 2022 Highlights Investment income1 Funds Balance Financial results $m sheet 1 2&3 4 5 6 7 Total Investment income Investments completed in 1H22 8.0 26.5 4.2 36.8 - 9.5 - 85.0 • Investment income of $115.5m recognised in 1H22 Investments completed in prior periods 1.7 0.1 - -
Slide 7: Cash and OBL financial capacity
1H22 RESULTS | FEBRUARY 2022 Highlights Cash $m $m Consolidated Group 1H21 1H22 OBL financial capacity Operational inflows Proceeds from litigation Investments – claims portfolio 8.2 7.4 Financial results Proceeds from litigation Investments – purchased claims - 3.5 Proceeds from litigation Investme
Slide 8: Portfolio growth will drive future income generation
1H22 RESULTS | FEBRUARY 2022 Highlights Portfolio growth will drive future income generation Increasing commitments and EPV improve operational efficiency Financial results Investments carrying value1 EPV1,2 Commitments1,2 CAGR >27% CAGR >41% CAGR >43% $m $bn $m 23.2 20.1 Portfolio performance (58.8
Slide 9: Provisional attribution future investment completions
1H22 RESULTS | FEBRUARY 2022 Highlights Provisional attribution future investment completions Financial results Possible completion period ~$1.2bn provisionally attributable to OBL based on the realisation of our current pipeline of investments, assuming At 31-Dec-2021 6 mths to they occur in line w
Slide 10: Balanced portfolio created by diversified EPV
1H22 RESULTS | FEBRUARY 2022 Highlights Balanced portfolio created by diversified EPV • EPV grew to $23.2 billion1 at 31 December 2021 • Diversification provides mitigation to risk of competition and regulatory intervention and portfolio concentration Financial results EPV1 by region EPV1 by investm
Slide 11: Portfolio summary
1H22 RESULTS | FEBRUARY 2022 Highlights Portfolio summary Amounts attributable Amounts attributable Current investments2 Completed investments3 to investors to Omni Bridgeway Success rate Financial results Financial EPV Legal outcome4 Launch Fund Average Average conversion outcome4 $ weighted At 31-
Slide 12: Creating value through our diversified model
1H22 RESULTS | FEBRUARY 2022 Highlights Creating value through our diversified model Strategic focus on growth in US market, with a target to double commitments Strategic priorities and targets1 Status at 31 December 2021 Financial results FY22 commitments of ~$520m with ~$330m in deployments $190m
Slide 13: Annexure
Annexure Michael.morris@northleafcapital.com
Slide 14: Provisional attribution future investment completions: assumptions and notes
1H22 RESULTS | FEBRUARY 2022 Highlights Provisional attribution future investment completions Assumptions and notes Refer to slides 9 and 17 Financial results The attribution of IEV between OBL equity and non controlling interests (NCI) has been Notes prepared on the basis of the following assumptio
Slide 15: Fund summary
1H22 RESULTS | FEBRUARY 2022 Highlights Fund summary Capital called Accumulated Accumulated special Accumulated Uncalled capital preferred return distribution management fee FUND 1 USA USD million Total Investor Omni Total Investor Omni Investors Investors Omni Launched Feb-17 166.7 125 41.7 5.0 3.8
Slide 16: Non-controlling interests (NCI)
1H22 RESULTS | FEBRUARY 2022 Highlights Non-controlling interests (NCI) $m Fund1 Funds 2&3 Fund 4 Fund 5 Fund 6 Total • First generation funds remain within the 100% Financial results Opening 30-Jun-21 (147.5) (80.4) (85.1) - (117.5) (430.5) proceeds distribution to NCI stage of the waterfall Called
Slide 17: Impairment update
1H22 RESULTS | FEBRUARY 2022 Highlights Impairment update • Several investments have been impaired to comply with our policy and accounting standards, even though, for some, the legal processes (via appeals) continue • Wivenhoe, Westgem and a Fund 4 investment have positive prospects of success on a
Slide 18: Balance sheet, Fund 1 and Funds 2&3 cash generation
1H22 RESULTS | FEBRUARY 2022 Highlights Balance sheet, Fund 1 and Funds 2&3 cash generation1,2 Implied embedded value (IEV) attribution FUND 1 FUNDS 2&34 Estimated portfolio value (EPV)) Possible completion profile 10% EPV 15% EPV 20% EPV 10% EPV 15% EPV 20% EPV # 6 mths to At 31-Dec-21 conversion c
Slide 19: OBL value > second generation funds (Fund 4, Fund 5)
1H22 RESULTS | FEBRUARY 2022 Highlights OBL value > second generation funds (Fund 4, Fund 5) Indicative analysis1 of the second generation funds’ return to OBL parent entity based on illustrative example Financial results Example investment return Estimated portfolio value and implied embedded value
Slide 20: OBL value > purchased funds (Fund 6, Fund 7)
1H22 RESULTS | FEBRUARY 2022 Highlights OBL value > purchased funds (Fund 6, Fund 7) Indicative analysis of the fund return value to OBL parent entity based on based on current portfolio Financial results Return profile Estimated portfolio value and implied embedded value Purchase Possible completio
Slide 21: Fund structure
1H22 RESULTS | FEBRUARY 2022 Highlights Fund 61 structure • OBL through OBI (of which OBH has a 100% Omni Bridgeway interest in) is a 5% co-investor, alongside a third Third Party LP Limited (OBL) party LP in Fund 6 (OB Capital) Financial results LP investment • OB Capital holds B-shares in OBBV whi
Slide 22: Fund summary
1H22 RESULTS | FEBRUARY 2022 Highlights Fund 61 summary Financial results Individual case by case level waterfall Fund waterfall (European) Case types Fund 6 obligations1 Fund 6 entitlements1 After individual case level waterfalls 1. Return of all capital to LPs New merits funding Funding 100% of 10
Slide 23: Fund summary financials
1H22 RESULTS | FEBRUARY 2022 Highlights Fund 6 summary financials Fund 6, OBBV cash income, Recycling Accounting Management and Service Contribution • OBBV will only distribute after tax profits • All case revenues, investments and all costs Financial results • From merger completion1 to 31-Dec-21,
Slide 24: Regulatory reforms
1H22 RESULTS | FEBRUARY 2022 Highlights Regulatory reforms • Continued push for regulatory reform for litigation finance industry in Australia, Europe and US • We have consistently been and will continue to be an advocate for fit for purpose regulation of the industry Financial results US Europe Aus
Slide 25: Disclaimer
1H22 RESULTS | FEBRUARY 2022 Highlights 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. Financial results •
Slide 26: This presentation is authorised for release to the market by the Board
1H22 RESULTS | FEBRUARY 2022 This is presentation is authorised for release to the market by the Board. 26