Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — Non-Deal Roadshow (March 2020)
24 slides from Omni Bridgeway's roadshow presentation, Mar 18, 2020
Slide 1: Investor Presentation
INVESTOR PRESENTATION | MARCH 2020 Investor Presentation 17 - 18 March 2020
Slide 2: First Half Highlights
INVESTOR PRESENTATION | MARCH 2020 First Half Highlights What worked: What didn’t: • Deferred completion of significant Wivenhoe investment PURCHASED OMNI BRIDGEWAY: • Modest returns on some case completions • Completed strategic expansion in Europe • The loss of two investments • Successfully raise
Slide 3: FY2020 – more to come (to 13 March 2020)
INVESTOR PRESENTATION | MARCH 2020 FY2020 – more to come (to 13 March 2020) AUD (millions) Balance sheet Fund 1 Funds 2&3 Fund 4 Fund 5 Fund 6 Total Recognised income Completed investments 49.5 42.8 12.7 29.5 - 8.7 143.2 Ongoing investments 12.3 7.1 0.5 - - - 19.9 Total income recognised in FY2020 6
Slide 4: Individual Case Performance (to 13 March 2020)
INVESTOR PRESENTATION | MARCH 2020 Individual Case Performance (to 13 March 2020) Litigation funding Net gain on contracts – derecognition of Initial Litigation funding derecognition intangible assets ROIC Commence commitment contracts – (incl. capitalised (incl. capitalised Attributed Attributed (i
Slide 5: Contribution from the purchased Omni Bridgeway business (since 8 November)
INVESTOR PRESENTATION | MARCH 2020 Contribution from the purchased Omni Bridgeway business (since 8 November) OB cost Omni Bridgeway Consolidated Group OB cost @ Consolidated since acquisition PPA value acquisition Proceeds Profit / (loss) ROIC IRR1 Profit / (loss) ROIC2 IRR3 # $m $m $m $m $m x % $m
Slide 6: Sources and Applications of Cash
INVESTOR PRESENTATION | MARCH 2020 Sources and Applications of Cash 1HY 2020 2HY 2019 1HY 2019 2HY 2018 $m $m $m $m • IFRS reporting requires the deferral of income Cash generation until recovery is certain, and in some instances Proceeds from litigation funding – intangible assets 91.0 19.3 23.9 15
Slide 7: Operating Expenditure
INVESTOR PRESENTATION | MARCH 2020 Operating Expenditure 1HY 2020 2HY 2019 1HY 2019 2HY 2018 • Operating expenditure has increased period on period $m $m $m $m reflecting our strategy to diversify, establish new offices As per Profit and Loss Statement in new jurisdictions and to address competition
Slide 8: Financial Results Overview
INVESTOR PRESENTATION | MARCH 2020 Financial Results Overview 1HY 2020 2HY 2019 1HY 2019 2HY 2018 % move from prior $m $m $m $m half Litigation contract income 142.8 19.7 15.3 22.4 ▲624% Revenue from cases 8.7 - - - ▲100% Litigation expenses (104.2) (25.9) (13.3) (18.8) ▲302% Net gain / (loss) (from
Slide 9: Balance Sheet Strength
INVESTOR PRESENTATION | MARCH 2020 Balance Sheet Strength 758.4 CASH & NET RECEIVABLES 324.8 NET ASSETS ($MILLION) ($MILLION) 423.5 62.1 5.6 226.1 46.3 515.5 2.4 296.6 170.8 38.3 23.2 144.9 22.5 367.8 10.6 49.7 5.5 15.9 168.3 175.4 10.1 142.5 334.9 139.3 134.2 132.8 206.3 130.1 2.4 203.9 218.9 185.9
Slide 10: Funding Funnel
INVESTOR PRESENTATION | MARCH 2020 Funding Funnel Funding applications continue to grow year on year as our geographic expansion takes hold. FUNDING APPLICATIONS ACTUAL AND BUDGETED FUNDING COMMITMENTS1 700 300 700 600 600 581 250 Deployed Investments (A$m) 500 516 500 Funds Committed (A$m) 467 458
Slide 11: Investment Portfolio
INVESTOR PRESENTATION | MARCH 2020 Investment Portfolio INVESTMENTS PORTFOLIO (EPV)2 ($MILLION) 622.1 ($MILLION) 9,726.0 161.0 1 180.5 7,956.2 2,419.0 427.0 1.2 568.7 28.6 77.8 321.3 37.6 2,709.0 3,007.2 50.8 5,642.8 9.1 206.7 198.9 1,312.5 190.9 189.6 3,781.9 3,164.3 10.3 402.8 2,699.7 2,758.4 180.
Slide 12: Investment Portfolio Profile
INVESTOR PRESENTATION | MARCH 2020 Investment Portfolio Profile • Past performance indicates that litigation funding investments have generated average gross revenue of approximately 15% of the EPV of the investment at the time it is completed. • For first generation funds, which include Funds 1, 2
Slide 13: Omni Bridgeway’s (formerly IMF) ROIC Track Record
INVESTOR PRESENTATION | MARCH 2020 Omni Bridgeway’s (formerly IMF) ROIC Track Record (excluding data in respect to investments within the purchased Omni Bridgeway business) ROIC • ROIC in non-US investments have remained relatively stable 165% 163% over the period. 153% 156% 154% 149% • ROIC in US i
Slide 14: Fund Summary
INVESTOR PRESENTATION | MARCH 2020 Fund Summary Accumulated Accumulated Accumulated Capital called USDm Uncalled capital USDm preferred return special distribution management fee USDm USDm USDm FUND 1 Total Investors OB Total Investors OB Investors Investors OB 99% committed 166.7 125.0 41.7 - - - 2
Slide 15: Fund Performance and Commitments
INVESTOR PRESENTATION | MARCH 2020 Fund Performance and Commitments Conditionally funded and Completed investments Incomplete investments IC approved investments Deployed Deployed amount amount (excl (excl Committed Committed Commence overheads) overheads) amount EPV amount Fund size date Number A$m
Slide 16: Non-Controlling Interests
INVESTOR PRESENTATION | MARCH 2020 Non-Controlling Interests NCI Fund 1 Funds 2&3 Fund 4 Fund 6 Total A$m A$m A$m A$m A$m • First Generation Funds remain within the 100% proceed (& profit) distribution to NCI Opening (202.5) (68.6) (25.5) - (296.6) stage of the distribution waterfall. Acquired durin
Slide 17: Common Fund Orders / Contingency Fees
INVESTOR PRESENTATION | MARCH 2020 Common Fund Orders / Contingency Fees • The High Court’s decision on CFOs in December 2019 caused some consternation amongst industry participants but has not resulted in a wholesale change in the interest in class actions. The implications are yet to be felt on co
Slide 18: Wivenhoe
INVESTOR PRESENTATION | MARCH 2020 Wivenhoe • The decision was handed down in November 2019 in favour of our funded clients, and which found the defendants Sunwater, Seqwater and the State of Queensland (State) liable in negligence to group members. Subsequently Sunwater and Seqwater have commenced
Slide 19: Economic Climate Impact
INVESTOR PRESENTATION | MARCH 2020 Economic Climate Impact Fears of a COVID-19 pandemic have negatively impacted global share OMNI BRIDGEWAY SHARE PRICE markets with further falls experienced and expected. SARS Swine Flu Topic Impact $5.00 During the SARS $4.50 outbreak in 2003, SHARE PRICE Omni Bri
Slide 20: The future
INVESTOR PRESENTATION | MARCH 2020 The future INTEGRATION Operations | Rebrand STRATEGY Business plan | Human resources FOOTPRINT Capital deployment | Cross selling | Alternative products TECHNOLOGY Artificial Intelligence GROWTH OPPORTUNITIES Corporates | Strong pipelines | Global coordination ONGO
Slide 21: Risk Mitigation
INVESTOR PRESENTATION | MARCH 2020 Risk Mitigation Risk Potential impact Strategic response PORTFOLIO Potential for a funded case to be lost = OBL investment lost and • Deliberate transition from idiosyncratic risk to systemic risk of a portfolio CONCENTRATION exposure to adverse costs • Portfolio r
Slide 22: Glossary of terms and notes
INVESTOR PRESENTATION | MARCH 2020 Glossary of terms and notes ESTIMATED PORTFOLIO VALUE (EPV) EPV for an investment where the OBL funding entity earns a percentage of the resolution proceeds as a funding commission, is OBL’s current estimate of the claim’s recoverable amount after considering the p
Slide 23: Disclaimer & Authorisation
INVESTOR PRESENTATION | MARCH 2020 Disclaimer & Authorisation • The material in this presentation has been prepared by Omni Bridgeway (OBL) and is general background information about OBL's activities. The information is given in summary form and does not purport to be complete. • A number of terms
Slide 24: Office locations and contacts
INVESTOR PRESENTATION | MARCH 2020 ASIA AUSTRALIA CANADA EUROPE, MIDDLE EAST & AFRICA UNITED STATES OF AMERICA Hong Kong Adelaide Perth Montreal Amsterdam Geneva Dubai Houston New York +852 3978 2629 +61 8 8122 1010 +61 8 9225 2300 +1 514 257 691 +31 (0) 70 338 4343 +41 (0) 22 818 +971 4321 0029 +1