Shine Justice Ltd. · ASX:SHJ
Shine Justice — FY2017 Earnings Presentation
22 slides from Shine Justice's earnings presentation, Aug 25, 2017
Slide 1: FY17 Results Investor Presentation
FY17 Results Investor Presentation 25 August 2017 STRICTLY CONFIDENTIAL
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Shine Corporate Ltd and certain plans and objectives of the management of Shine Corporate Ltd. Such forward-looking statements involve both known an
Slide 3: Agenda
Agenda 1 FY2017 Highlights 2 FY2017 Financial Results 3 FY2018 Strategic Priorities & Outlook STRICTLY CONFIDENTIAL Shine Corporate Ltd ABN 93 162 817 905 3
Slide 4: 2017 Highlights
2017 Highlights Simon Morrison – Managing Director STRICTLY CONFIDENTIAL Shine Corporate Ltd ABN 93 162 817 905 4
Slide 5: Shine Corporate Overview
Shine Corporate Overview Achieved Guidance Management restructure completed Results underpin long-term sustainability Continue to diversify and grow PI outside QLD Engine Room completed and rollout underway STRICTLY CONFIDENTIAL Shine Corporate Ltd ABN 93 162 817 905 5
Slide 6: FY2017 Highlights
FY2017 Highlights Group Strategy Financial • Financial results within Guidance • Continued focus - inch wide, mile deep • Group revenue 9% higher strategy • Engine room to deliver integrated and • EBITDA up $11.5m (46%) to $36.5m flexible solutions • Develop existing emerging practice areas in marke
Slide 7: FY2017 Highlights
FY2017 Highlights Significant 5912 $648m Australian Client Class Damages Matters Settled for Clients Action J&J Mesh Landmark 855 Decision Northern Employees Territory Asbestos STRICTLY CONFIDENTIAL Shine Corporate Ltd ABN 93 162 817 905 7
Slide 8: FY2017 Highlights – Key Segments
FY2017 Highlights – Key Segments FY 15 FY 16 FY 17 28% 34% 22% Emerging Practice Areas Personal Injury 78% 72% 66% Emerging Practice Areas have increased to 34% of total group revenue while the group now derives two-thirds of its revenue outside QLD PI. FY 15 FY 16 FY 17 46% 38% 35% All other revenu
Slide 9: FY2017 Highlights – Subsidiaries
FY2017 Highlights – Subsidiaries Subsidiary Operational Highlights Sciaccas Appointment of Advisory Board in Q4 FY17 to seek new market share; key staff retained Emanate Legal Improvement in the CSG sector late FY17 . Business well placed to capitalise on improving economic conditions in mining and
Slide 10: FY2017 Financial Results
FY2017 Financial Results Ravin Raj – Chief Financial Officer STRICTLY CONFIDENTIAL Shine Corporate Ltd ABN 93 162 817 905 10
Slide 11: Group Results FY2017
Group Results FY2017 $165m $20.2m $36.5m $19.25m 2.0cps Final Dividend Revenue NPAT EBITDA GOCF (franked) +9% +36% +46% 53% of EBITDA +4% Revenue NPAT EBITDA GOCF 110 120 130 140 150 160 170 0 5 10 15 20 25 0 10 20 30 40 15 16 17 18 19 20 2017 2016 2017 2016 2017 2016 2017 2016 1. EBITDA and GOCF ar
Slide 12: Results at a Glance FY2017
Results at a Glance FY2017 FY17 ($m) FY16 ($m) Variance ($m) Variance (%) Revenue 165.0 151.5 + 13.5 + 9% NPAT 20.2 14.8 + 5.4 + 36% Impairment Charge 5.0 0.0 N/A N/A EBITDA 36.5 25.0 + 11.5 + 46% Pre-tax 25.5 18.5 + 7.0 + 39% 1. EBITDA and GOCF are not an IFRS calculation which appear in the financ
Slide 13: FY2017 Financial Results
FY2017 Financial Results NPAT to EBITDA Reconciliation - $000's Gross Operating Cash Flow (GOCF) GOCF $m 40,000 xx% 20.0 18.8 19.25 xx% 35,000 18.0 EBITDA growth from $25.2m to $36.5m 30,000 16.0 20,155 14.0 13.0 25,000 12.0 10.5 20,000 10.0 14,822 8.7 15,000 8.0 5,335 6.0 10,000 3,604 4.0 8,290 5,0
Slide 14: FY 2017 Results – GOCF / EBITDA ratio
FY 2017 Results – GOCF / EBITDA ratio Net revenue GOCF as a EBITDA ($m) GOCF ($m) ($m) % of EBITDA Core PI Business 128.9 27.7 15.3 55% & Subsidiaries New Practice Areas 36.1 8.8 4.0 45% & Class Actions Total 165.0 36.5 19.3 53% New Practice Areas include: • Transport • Insolvency • Family Law • Med
Slide 15: FY2017 Results: Balance Sheet
FY2017 Results: Balance Sheet As at ($m) 30-Jun-17 30-Jun-16 • Balance sheet remains strong Cash & Receivables 33.2 33.0 • Cash on hand at 30 June 17 was $14.18m Work in Progress 226.3 203.0 • Net WIP growth of $23.3M Unbilled disbursements 64.2 52.9 • Debt increased $19.1m to $52m PP&E and intangib
Slide 16: Net Debt movement (AUD Millions)
Net Debt 60 50 11 ( 11 ) 40 - AUD Millions 10 30 7 20 - 38 10 21 - 30-Jun-16 Acquisitions Earnout / Def. Consid. Asset purchases Capital additions Operating cash flow 30-Jun-17 less dividend paid STRICTLY CONFIDENTIAL Shine Corporate Ltd ABN 93 162 817 905 16
Slide 17: 2018 Strategic Priorities and Outlook
2018 Strategic Priorities and Outlook STRICTLY CONFIDENTIAL Shine Corporate Ltd ABN 93 162 817 905 17
Slide 18: 2018 Initiatives
2018 Initiatives Growth Engine Room / Innovation Quality Quality Grow Innovate Shine Shine Protect Strengthen Champion Shine Shine Shine Time Resources Time Resources • Continue to develop, invest and build new growth channels • Initial rollout commenced in QLD August 2017 • Continued diversificatio
Slide 19: 2018 Initiatives
2018 Initiatives Operations and Client Brand and Marketing Client PI and EPA Shine Engine Room Operational Efficiency • Focus on team culture • Significant increase in marketing investment in 2018 • Improving cashflow conversion, recoverability, disbursement • Strong brand and growing market awarene
Slide 20: PI Market Profile – 2016-17
PI Market Profile – 2016-17 Market Share Client Market Segmentation % of Firms / State 7% 11% QLD 23% 20% 13% Shine 32% 13% NSW Over 55 Slater & Gordon 9% 35 to 54 VIC Maurice Blackburn Other Under 35 WA 71% 30% 26% Other 45% Source: IBISWorld Industry Report OD5519: Personal Injury and Workplace In
Slide 21: Outlook 2018
Outlook 2018 Operations and Financial Opportunities and Growth Strong balance sheet + substantial unused Significant investment in business funding facilities improvement and innovation Improved organic growth and economies Continue to seek value accretive opportunities of scale across the Group thr
Slide 22: Questions
Questions STRICTLY CONFIDENTIAL Shine Corporate Ltd ABN 93 162 817 905 22