Litigation Capital Management Ltd · LSE:LIT
Litigation Capital Management — HY21 Earnings Presentation
21 slides from Litigation Capital Management's earnings presentation, Mar 16, 2021
Slide 1: Interim results presentation
Interim results presentation Six months ended 31 December 2020 Litigation Capital Management Limited ACN 608 667 509
Slide 2: HY21 – Progress on near-term priorities
HY21 – Progress on near-term priorities At the latest year end, we identified the following priorities on which we expect to focus and achieve growth in the shorter to medium term: Supplementing LCMs balance sheet capital to meet increasing demand • Secured a US$50 million (A$65 million) credit faci
Slide 3: HY21 – Highlights
HY21 – Highlights Committed 64% of first third party fund by 31 December and 70% by 8 March with first resolution Third party fund recognised shortly after the half year end Gross revenue of $8.1m includes the resolution of two single case investments as well as two investments Revenue in our acquis
Slide 4: Building scale
Building scale Maintenance of Measures of growth investment standards Increase in AUM Number of applications 266 9.5 year cumulative ROIC Capital committed in year 1 135% Total assets under management $67m 9.5 year cumulative IRR $322m 78% 2 Capital invested $40m Capital invested Capital committed A
Slide 5: Interim results highlights
Interim results highlights – exclusive of third-party fund (A$) HY 2021 HY 2020 Change % Credit Facility Gross revenue $7.7m $24.1m (68%) $65m 5 Gross profit $5.0m $12.2m (59%) Adjusted (loss)/profit before tax1 ($0.6m) $6.9m Gross Revenue Statutory (loss)/profit before tax1 ($1.2m) $6.7m $7.7m Cash
Slide 6: HY21 Balance sheet overview
HY21 Balance sheet overview – exclusive of third-party fund (A$) Capital invested ($m) Total equity ($m) 80.4 80.6 22.3 70.3 18.4 12.8 6.6 15.4 HY18 HY19 HY20 HY21 HY18 HY19 HY20 HY21 Cash generation ($m) Cash as at period end ($m) 52.6 11.0 10.6 9.2 34.7 1 26.9 0.1 0.4 $5.8m HY18 HY19 HY20 HY21 HY1
Slide 7: Organic cash generation (A$)
Organic cash generation (A$) Litigation Investments Operating activities HY 2021 Cash Flow Waterfall1 Investing activities (A$ in millions) Financing activities 10.6 0.01 (21.9) 21.1 26.9 24.9 (6.8) (0.9) (0.03) (0.1) 5.8 Cash balance Cash Security Capital Expenses Cost for fund Property, Ef
Slide 8: Current portfolio of direct investments
Current portfolio of direct investments Portfolio by industry Portfolio by industry Portfolio by region Balances as at (estimated A$ capital sector sector 8 March 2021 (estimated A$ capital (number of projects) commitment)¹ (A$ millions) commitment)¹ 1% $108 million 8 9 $25 16% Direct 100% investmen
Slide 9: LCM Global Alternative Returns Fund
LCM Global Alternative Returns Fund Portfolio by industry Portfolio by individual Third party fund Balances as at sector capital commitment commitments 8 March 2021 (estimated A$ capital (estimated A$ capital (estimated A$ capital commitment)¹ (A$ millions) commitment)¹ commitment)¹ 11% 70% 25% 30%
Slide 10: Combined portfolio profile
Combined portfolio profile Portfolio by claim size Portfolio by LFA maturity1 (A$) (months) 27 17 10 6 7 6 7 9 months 7 4 5 9.5 year average 3 2 time to completion <10m 11-20m 20-50m 51 - 100 - 201m - 501m> <6 7-12 13-24 25-36 37-48 100m 200m 500m LCM’s entire portfolio comprising LCM’s entire portf
Slide 11: Market conditions
Market conditions Investing in disputes in an LCM’s business benefits from counter- uncorrelated investment class cyclical features • Disputes in the form of litigation or arbitration are • In times of economic uncertainty, or instability, businesses tend to unaffected by political, economic or othe
Slide 12: US$50m Credit facility
US$50m Credit facility Accelerating growth Credit Facility Terms Credit facility available US$50m • Supplements LCM’s balance sheet capital Available use General corporate purposes • Provides greater flexibility in LCM’s capital structure Overall term 4 years Coupon & LIBOR base rate 8% • Provides a
Slide 13: Outlook
Outlook Increased applications from our other strategic alliances with global firms as we introduce innovation to those relationships Increased demand for LCM’s capital from corporate clients as instability and uncertainty remain present in global economies Increased applications for insolvency and
Slide 14: Appendix
Appendix LCM
Slide 15: Consolidated income statement
Consolidated income statement For the period ended 31 December 2020 Consolidated Consolidated LCM only Fund HY21 HY20 A$m A$m A$m A$m Revenue from contracts with customers Litigation service revenue 7.5 - 7.5 24.1 Portfolio revenue 0.2 0.4 0.6 - Performance fees 0.02 - 0.02 - 7.7 0.4 8.1 24.1 Litiga
Slide 16: Adjusted profit & EBITDA reconciliation
Adjusted profit & EBITDA reconciliation For the period ended 31 December 2020 Consolidated Consolidated LCM only Fund HY21 HY20 A$m A$m A$m A$m Statutory profit after tax (1.05) (0.1) (1.2) 4.8 Add: Depreciation & interest 0.03 - 0.03 0.04 Tax expense (0.2) - (0.2) 1.9 EBITDA (1.22) (0.1) (1.4) 6.7
Slide 17: Consolidated statement of financial position
Consolidated statement of financial position As at 31 December 2020 Consolidated Consolidated LCM only Fund HY21 FY20 A$m A$m A$m A$m Current assets Cash and cash equivalents 5.8 9.6 15.4 31.8 Trade and other receivables 11.6 - 11.6 15.3 Contract costs 20.9 - 20.9 15.7 Portfolio costs 1.4 4.0 5.4 -
Slide 18: Consolidated statement of cash flows
Consolidated statement of cash flows For the period ended 31 December 2020 Consolidated Consolidated LCM only Fund HY21 HY20 A$m A$m A$m A$m Cash flows from operating activities Proceeds from litigation contracts - settlements, fees and reimbursements 10.6 - 10.6 9.2 Payments to suppliers and employ
Slide 19: Glossary
Glossary Completed means, in respect of a Case or Litigation Project, that it has been settled or for which there has been a judgment or from which LCM has elected to withdraw from funding or for which proceedings have been discontinued & LCM has received its financial entitlements. Internal Rate of
Slide 20: Important notices and disclaimer
Important notices and disclaimer Disclaimer The information in this presentation or on which this presentation is based has been obtained from sources that LIT believes to be reliable and accurate. However, none of LIT, LIT’s directors, officers, employees, its shareholders or any of their respectiv
Slide 21: Contact Information
Contact Information Offices Brisbane Sydney Level 54, Level 12, The Chifley Tower 111 Eagle Street, 2 Chifley Square, Brisbane QLD 4000 Sydney NSW 2000 T +61 7 3012 6478 T +61 2 8098 1390 Singapore London Marina Bay Financial Centre Bridge House Tower 1, Level 11 181 Queen Victoria Street 8 Marina B
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