Shine Justice Ltd. · ASX:SHJ
Shine Justice — FY2020 Earnings Presentation
25 slides from Shine Justice's earnings presentation, Aug 28, 2020
Slide 1: FY20 Results Investor Presentation ASX cover letter
For personal use only 28 August 2020 Shine Justice Ltd (SHJ) FY20 Results Investor Presentation Attached is a copy of Shine Justice Ltd’s FY20 Results Investor Presentation. Authorised for release by the Board Annette O’Hara Company Secretary Shine Justice Ltd Level 13, 160 Ann Street Brisbane QLD 4
Slide 2: Shine Justice Ltd FY20 Results Investor Presentation
For personal use only Shine Justice Ltd FY20 Results Investor Presentation August 2020 Simon Morrison Ravin Raj MANAGING DIRECTOR & CEO CHIEF FINANCIAL OFFICER
Slide 3: Important Notice
For personal use only Important Notice This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Shine Justice Ltd and certain plans and objectives of the management of Shine Justice Ltd. Such forward-looking statemen
Slide 4: Kathryn Gill & Others vs. Ethicon Sarl & Others
For personal use only Kathryn Gill & Others vs. Ethicon Sarl & Others Historic judgment against Ethicon for 3 lead applicants representing thousands of women affected by faulty Mesh implants Shine a light on injustice and make the world a better place, one client at a time 3
Slide 5: Agenda
For personal use only 1 2 3 4 5 FY20 FY20 Investing in 2021 Questions Highlights Financial Shine Justice Strategic Results & Operating Priorities and Environment Outlook Agenda 4
Slide 6: FY20 Highlights
For personal use only FY20 Highlights Simon Morrison Managing Director & CEO 5
Slide 7: Key Financial Metrics
For personal use only $183.03m $21.55m $51.15m $42.52m $34.56m $25.93m +2.90% +53.6% +7.80% +10.90% +10.6% +17.1% Revenue NPAT1 EBITDAI 2,3 Underlying GOCF 2,4 Underlying EBITDAI GOCF Key Financial 2.75¢ 4.25¢ 12.40¢ +10% +13.3% +53.8% Metrics Final Dividend Total Dividend EPS (unfranked) ¹ FY19 NPA
Slide 8: Year in Review
• Strong market position and diversification • Assessment of strong pipeline of Mesh strategy achieves solid earnings growth and group member claims expected to follow for For personal use only delivery on guidance despite COVID-19 a number of years challenges • Robust class-action pipeline • Resili
Slide 9: FY20 Financial Results
For personal use only FY20 Financial Results Ravin Raj Chief Financial Officer 8
Slide 10: FY20 Financial Results: Detailed Profit and Loss
FY20 Financial Results For personal use only Detailed Profit and Loss FY20 FY19 Variance Variance ($m) ($m) ($m) (%) Revenue 183.03 177.90 +5.13 +2.9 • PI Revenue – reduction in revenue primarily due to write-offs, impact of restructuring and downsizing of non- NPAT 21.55 14.03 +7.52 +53.6 performin
Slide 11: FY20 Financial Results: Financial Highlights
FY20 Financial Results For personal use only Financial Highlights Variance FY20 FY19 (%) • Growth in EPS due to improved profitability EPS (cents) 12.40 8.06 +53.8 Final dividend per share • Final and total dividend increased 2.75 2.50 +10.0 (cents) as business continues to improve Total FY20 divide
Slide 12: FY20 Financial Results: Balance Sheet
FY20 Financial Results Balance Sheet For personal use only AS AT ($’000) 30 June 20 30 June 19 Cash 32,812 26,697 Receivables 12,404 11,723 • Cash on hand at 30 June 2020 stood Contract assets - work in progress 305,102 282,971 at $32.8m Income tax receivable 322 306 • Net WIP grew by 8% primarily f
Slide 13: FY20 Financial Results: Gross Operating Cash Flow
FY20 Financial Results Gross Operating Cash Flow For personal use only 12
Slide 14: Shine Cash Funded Disbursements (Net)
FY20 Financial Results Shine Cash Funded Disbursements (Net) For personal use only Shine Equity Funded Disbursements (Net) • Cash flow improvement strategy commenced FY17 to secure: • Long term new disbursement funder • Litigation funding of all new Class Actions • Return of significant Shine equity
Slide 15: Investing in Shine Justice & Operating Environment
For personal use only Investing in Shine Justice & Operating Environment Simon Morrison Managing Director & CEO 14
Slide 16: Shine Justice: One Unifying Message
Shine Justice For personal use only One Unifying Message We are a Purpose-driven company Personal Injury (motor New Practice Areas Personal Injury (motor vehicle, workplace, public • Class actions vehicle, workplace, public liability) • Professional and medical liability) • Lean, standard, major cla
Slide 17: Why invest in Shine Justice? Our Market Opportunities
Why invest in Shine Justice? Our Market Opportunities Strong outlook for growth We have 37 Class Actions either commenced or in the pipeline For personal use only Market share growth opportunities in PI 21 Class Actions Pipeline by Sector 16 Current Filed Class Actions PI Market Share 1. PFAS 11. We
Slide 18: We welcome our new Board Directors
For personal use only We welcome our new Board Directors Graham Bradley AM Teresa Dyson David Bayes Chairman Non-Executive Director Non-Executive Director Graham Bradley is an experienced company Ms Dyson is an experienced company director, Mr Bayes is Chairman of Plarre Foods Pty Ltd director and i
Slide 19: Regulatory Update & COVID-19
Regulatory Update & COVID-19 For personal use only Regulatory Update – Class Actions COVID-19 Response and Operational Update Key Summary Points Key Summary Points • The majority of Shine cases across all work types are “long-tail” • 1 July 2020 Supreme Court of Victoria approved contingency fee mod
Slide 20: 2021 Strategic Priorities and Outlook
2021 Strategic For personal use only Priorities and Outlook 19
Slide 21: Outlook 2021
Outlook 2021 For personal use only Grow Strengthen Innovate Champion Shine Justice Shine Justice Shine Justice the Client Focus on growth Execute on WIP Apply technology Improve on client opportunities, management solutions from Claimify communication particularly organic improvement initiatives, to
Slide 22: Appendices
For personal use only Appendices 21
Slide 23: Financial Discipline for Sustainable Growth
Financial Discipline for For personal use only Sustainable Growth Growth Capital Operations • Invest in organic growth/ acquisitions • Optimise capital, litigation and • Simplify business structure and operations using our skills and resources disbursements funding • Identify and develop talent • De
Slide 24: Anticipated Industry Trends 2021+
Class Actions PI Client Market Segmentation For personal use only COVID-19 • Workplace / home based incidents expected to increase • Aged care facilities Aged over 55 • Tourism 26.0% Aged under 35 34.2% Personal Injury • Motor vehicle accidents - growth in line with historical trends due to populati
Slide 25: Sustainability and Community
For personal use only Social Impact Energy & Climate Social and physical Energy efficiency and initiatives to improve well alternative sources to being and mental illness minimise our footprint Shine a Light Actively supporting schools and Shine A Light Foundation supports sporting organisations as