Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — FY2022 Earnings Presentation
26 slides from Omni Bridgeway's earnings presentation, Aug 30, 2022
Slide 1: FY22 Results
OMNI BRIDGEWAY FY? Results 30 August 2022
Slide 2: Contents
Contents 01 Highlights 04 Strategy and innovation 02 Financial results 05 Annexure 03 Portfolio performance Further information on terms used in this announcement is available at https://omnibridgeway.com/investors/omni-bridgeway-glossary (Glossary). The notes on slide 24 and the Glossary contain im
Slide 3: Highlights: Strong growth across key metrics
FY22 RESULTS | AUGUST 2022 Highlights Strong growth across key metrics For the 12 months ended 30 June 2022 Financial results Total gross income and revenue Record commitments Funds under management 1 $221.0m $463.3m ~$3bn From diversified sources Up 12% New enforcement fund launched Portfolio perfo
Slide 4: Momentum in progressing strategic priorities
FY22 RESULTS | AUGUST 2022 Highlights Momentum in progressing strategic priorities Financial results FY22 has been a transformational year for our fund management business We have achieved significant portfolio growth and successfully executed upon critical pillars of our five year business plan Ach
Slide 5: Financial highlights
FY22 RESULTS | AUGUST 2022 Highlights Financial highlights Change FY22 FY21 $m from FY21 Financial results Consolidated Group grossed up to include all Funds at 100% Litigation investment proceeds 210.4 280.6 (25)% Less third party interest of Fund 5 (12.6) (9.0) (40)% • Net profit after tax of $6.5
Slide 6: Optimised capital and operational efficiencies
FY22 RESULTS | AUGUST 2022 Highlights Optimised capital and operational efficiencies Change Consolidated Group $m FY22 FY21 from FY21 Financial results Working capital Cash and cash equivalents 159.0 142.6 12% The Group continues to maintain a strong financial position based on: Current trade and ot
Slide 7: Portfolio growth will drive future income generation
FY22 RESULTS | AUGUST 2022 Highlights Portfolio growth will drive future income generation Investments carrying value1,2 EPV1,2 Commitments1,2 Financial results $635.1m $27.2bn $463.3m FY23 target $550m to $600m 27.2 34.0 163.4 Portfolio performance 19.9 206.8 463.3 152.0 (152.9) 105.2 20.1 412.6 42
Slide 8: Balanced and diversified portfolio
FY22 RESULTS | AUGUST 2022 Highlights Balanced and diversified portfolio1 • Diversification provides mitigation to risk of competition and regulatory intervention and portfolio concentration • Consistent with reducing concentration risk, the average investment size across the portfolio is $1.8m ($0.
Slide 9: Portfolio summary
FY22 RESULTS | AUGUST 2022 Highlights Portfolio summary Amounts attributable Amounts attributable Current investments Completed investments to investors to Omni Bridgeway EPV Success rate Financial results Average Average At 30-Jun-22 Committed Capital Returns Capital Fees # EPV IEV # EPV conversion
Slide 10: Provisional attribution from estimated future completions
FY22 RESULTS | AUGUST 2022 Highlights Provisional attribution from estimated future completions1 $1.2bn of IEV and fees provisionally attributed to OBL is based on the realisation of the current unconditionally funded portfolio and utilising past performance of 15% EPV conversion and management fees
Slide 11: Leading innovation in legal risk management
FY22 RESULTS | AUGUST 2022 Highlights Leading innovation in legal risk management Enterprise-wide capability in developing unique products and fund structures to expand market reach, scale and improve returns Financial results Secondary market evolution Unique fund structure and scope • Reflects sec
Slide 12: New global enforcement fund launched
FY22 RESULTS | AUGUST 2022 Highlights New global enforcement fund launched Focused on investing up Limited recourse debt of up After full establishment of Fund 8, funds under Financial results to €300 million to €270m is expected to be in place end of 1H23 management will increase to ~$3bn The follo
Slide 13: Secondary market transactions
FY22 RESULTS | AUGUST 2022 Highlights Secondary market transactions “Litigation finance is an area that provides attractive Financial results • Disposed a partial interest in two investments in Funds 2&3 and uncorrelated returns for our investors. Executing in the emerging secondary market enabling
Slide 14: A strong platform for growth
FY22 RESULTS | AUGUST 2022 Highlights A strong platform for growth Financial results Our FY23 goals include: FY25 target We are an alternative asset manager and • $550m to $600m commitment target • $5bn FUM investor in litigation and enforcement (20% to 30% yoy growth) with continued • $1bn annual c
Slide 15: Annexure
Annexure
Slide 16: Funding structure overview
FY22 RESULTS | AUGUST 2022 Highlights Funding structure overview1 Our funding strategy has evolved over time to diversify investment risk, from initially investing on balance sheet to bringing in third party capital while maintaining a meaningful minority stake in each of our Funds Financial results
Slide 17: Fund summary
FY22 RESULTS | AUGUST 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 Called 166.7 125.0 41.7
Slide 18: Investment income
FY22 RESULTS | AUGUST 2022 Highlights Investment income Funds Balance $m sheet 1 2&3 4 51 6 7 Total Investment income • Over $250m investment income (recognised and yet to be Financial results recognised) was generated: Investments completed in FY22 13.3 27.0 7.8 56.1 8.3 18.3 - 130.8 Investments co
Slide 19: Track record of success
650% FY22 RESULTS | AUGUST 2022 600% Highlights Track record of success 550% 513% 500% Internal 450% rate of return (IRR)1,2 Return on invested capital (ROIC)1,3,4 Financial results 400% 1000% 3.50 903% 3.14x 2.98x 350% 750% 3.05x 3.00 3.06x 513% 500% 300% 2.50 Portfolio performance 250% 2.21x 2.00
Slide 20: Non-controlling interest (NCI) in Group balance sheet
FY22 RESULTS | AUGUST 2022 Highlights Non-controlling interest (NCI) in Group balance sheet Financial results $m Fund 11 Funds 2&3 Fund 4 Fund 5 Fund 6 Total Opening 30-Jun-21 (147.5) (80.4) (85.1) - (117.5) (430.5) • Accelerated returns to investors from first generation funds with $113.3m distribu
Slide 21: EPV outcomes ≥70% of forecasts
FY22 RESULTS | AUGUST 2022 Highlights EPV outcomes ≥70% of forecasts • We have a strong track record of effectively assessing EPV over the life cycle of our investments Financial results • This is attributed to our robust investment and risk management framework • Three investment committees are com
Slide 22: The investment process
FY22 RESULTS | AUGUST 2022 Highlights The investment process In FY22, of the 1,415 applications received, 521 were reviewed. A total of 54 investments were funded. Financial results 1. Origination • Opportunities are primarily originated through potential clients, advisors, other third parties or in
Slide 23: Regulatory reform
FY22 RESULTS | AUGUST 2022 Highlights Regulatory reform Financial results US US • Some US courts have set rules requiring disclosure of litigation funding New Zealand arrangements. Omni Bridgeway continues to review and consider the • Aotearoa New Zealand Law implications of such rules. Commission h
Slide 24: Provisional attribution from estimated future completions: assumptions and notes
FY22 RESULTS | AUGUST 2022 Highlights Provisional attribution from estimated future completions of current portfolio Assumptions and notes Refer to slide 10 Financial results The attribution of implied embedded value (IEV) between OBL equity and non controlling Management fee assumptions: interests
Slide 25: Disclaimer
FY22 RESULTS | AUGUST 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 • A
Slide 26: This presentation is authorised for release to the market by the Board
This presentation is authorised for release to the market by the Board. 26