Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — IMF Bentham — ASX Spotlight Conference 2013
19 slides from Omni Bridgeway's conference presentation, Oct 29, 2013
Slide 1: ASX Spotlight Conference
ASX SPOTLIGHT CONFERENCE For personal use only Singapore – 29 October 2013 Hong Kong – 31 October 2013 Diane Jones Chief Operating Officer
Slide 2: Contents
CONTENTS For personal use only What is Litigation Funding IMF Overview FY2013 Financials FY2013 Income Balance Sheet Dividend History Investment Portfolio Investment Portfolio History Possible bl Completions l FY2014 Lehman Australia Wivenhoe Dam Track Record Future Outlook
Slide 3: What is Litigation Funding?
WHAT IS LITIGATION FUNDING? For personal use only As a “litigation funder”, IMF provides funding on a contingency basis to businesses and individuals with claims for loss and damage. IMF provides funding for the client’s case or to the client and, in jurisdictions where adverse costs are relevan
Slide 4: IMF Overview
IMF OVERVIEW IMF is the pre‐eminent litigation funding company operating in Australia and has, by far, For personal use only the major portion of the litigation funding business in that country. Item Description Australia’s leading Formed in 1999 and listed on ASX in 2001. litigation funder Mark
Slide 5: IMF Overview: growth opportunities
IMF OVERVIEW For personal use only IMF has identified significant growth opportunities Item Description Major growth IMF is presently investigating whether it should fund the Wivenhoe Dam case, which, opportunities onshore if it proceeds, could be the largest case funded by IMF to date. IMF is a
Slide 6: FY2013 Financials
FY2013 FINANCIALS For personal use only FY2013 FY2012 FY2011 Gross Income (from cases) $43.9M $117.8M $57.9M Net Income (from cases) $23.8M $70.5M $38.0M NPBT $20.1M $61.4M $32.8M NPAT $13.8M $43.0M $22.9M Dividend (cents per share) 5.0 Franked 10.0 Franked 15.0 Franked EPS 11.21 34.87 18.56 Net Ass
Slide 7: FY2013 Income
FY2013 INCOME For personal use only FY2013 matter income came from the following cases: Matter Gross Income Net Income LGFS $17.4M $8.8M Lehman Australia $11 0M $11.0M $7 7M $7.7M Confidential USA Matter $5.1M $2.3M Confidential Australian Matter $2.8M $1.9M Collyer Bristow $1.8M $1.6M Uniloc $4.0M
Slide 8: Balance Sheet Strength
BALANCE SHEET STRENGTH For personal use only Cash Investments1 Net Assets $M $M $M $70.00 $125.50 $86.00 $62.40 $111.70 $61.24 $55.01 $66.00 $87.19 $59.63 $42.99 $72.54 $64.78 $40.49 $ $32.28 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 ¹ Investments includes capitalise
Slide 9: Dividend History
DIVIDEND HISTORY For personal use only Average of 10 cents per share paid to shareholders over the last 5 years years, all fully franked: Date Cents per share FY2009 15 Fully franked FY2010 5 F ll franked Fully FY2011 15 Fully franked FY2012 10 F ll ffranked Fully k d FY2013* 5 Fully franked * Annou
Slide 10: Investment Portfolio
INVESTMENT PORTFOLIO For personal use only As at 30 June 2013: % of Possible Possible Possible Claim Value Est. Claim Est No Total Completion Completion Completion Range Value* of Cases Value FY2014 FY2015 FY2016 <$10M $20M 4 1% $5M $15M ‐ $10M ‐ $50M $300M 14 18% $125M $145M $30M >$50M $1,315M 11 8
Slide 11: Investment Portfolio History
INVESTMENT PORTFOLIO HISTORY For personal use only IMF has exceeded its expectation of generating income of 15% of the claim value included in the investment portfolio. Matters Completed in the Financial year FY2009 FY2010 FY2011 FY2012 FY2013 Claim value included in the investment portfolio $437M $
Slide 12: Possible Completions FY2014
POSSIBLE COMPLETIONS FY2014 For personal use only Matter Description Lehman Australia See separate slide Bank of Queensland The case against Bank of Queensland franchisees in New South Wales for alleged misleading and deceptive conduct, primarily concerning business that could or would be generated
Slide 13: Lehman Australia
LEHMAN AUSTRALIA For personal use only IMF is funding 85 council, charities and churches with claims against Lehman Brothers Australia Ltd (“Lehman Australia”). Judgment in the class action on common issues and claims of three representatives delivered on 21 September 2012 – claims wholly succes
Slide 14: Wivenhoe Dam Claim
WIVENHOE DAM CLAIM For personal use only Feb 2012: IMF announced an investigation into: i. whether the Dam was negligently g g y operated p in Januaryy 2011 and, if so; ii. whether funded parties suffered sufficient unnecessary loss to make proceedings against the State of Queensland viable. Jan 2
Slide 15: Track Record
TRACK RECORD For personal use only IMF has commenced and completed 149 cases since listing with an average investment of 2.3 years. Generated revenue of $1.278B: $849M $ to Clients; l $429M to IMF comprising: ‾ $148M reimbursement of costs; ‾ $281M net revenue to IMF (excluding overheads); G
Slide 16: Future Outlook
FUTURE OUTLOOK For personal use only Australia Building the investment portfolio (Wivenhoe (Wivenhoe, Brisconnections, Brisconnections CDOs, others). Competition. Regulation. Regulation Taking funding international Expansion into the United States First completion in FY2013. Bentham Capi
Slide 17: Key Risks
KEY RISKS Reliance on key management For personal use only IMF depends substantially on its executive directors and senior management and key personnel to oversee the day‐to‐day operations and the strategic management of IMF. There can be no assurance given that there will be no detrimental impact
Slide 18: Key Risks
KEY RISKS For personal use only Poor case selection The central task in IMF’s business is to choose successful cases. If poor case selection occurs then this will cause oss to IMF tthrough loss oug pay payment e t of o tthee client’s c e t s legal ega eexpenses pe ses aand d pay payment e toof tth
Slide 19: Key Risks
KEY RISKS For personal use only Offshore investment The Company has invested in litigation funding agreements in countries other than Australia. The Company as ag has agreed eed to fund u d cases in tthee US aand d tthee U UK aand d may ay agree ag ee to fund u d other ot e cases in tthese ese aan