Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — IMF Bentham — Shareholder Meeting (November 2017)
27 slides from Omni Bridgeway's shareholder meeting presentation, Nov 24, 2017
Slide 1: Release to ASX: Chairman's Address and MD's Presentation, 2017 AGM
For personal use only RELEASE TO AUSTRALIAN SECURITIES EXCHANGE FRIDAY, 24 NOVEMBER 2017 CHAIRMAN’S ADDRESS AND MANAGING DIRECTOR’S PRESENTATION TO SHAREHOLDERS AT 2017 ANNUAL GENERAL MEETING In accordance with Listing Rule 3.13.3, please refer to the following attached documents: Part One: Chairman
Slide 2: Address by Chairman Michael Kay to the AGM
Page 2 of 5 ADDRESS BY IMF BENTHAM LIMITED CHAIRMAN MICHAEL KAY TO THE ANNUAL GENERAL MEETING 24 NOVEMBER 2017 For personal use only Ladies and gentlemen, welcome to the annual general meeting of IMF Bentham Limited for 2017. My name is Michael Kay and I am the Chairman of IMF Bentham Limited. This
Slide 3: Chairman's address: strategy progress and capital developments
Page 3 of 5 At the 2015 meeting we spoke about an unfortunate run of case losses (not at all in keeping with IMF’s track record over many years); the enhancement of our strategy to diversify our risk through funding a greater number of cases across different jurisdictions; and our confidence that de
Slide 4: Chairman's address: FY17 results and funds
Page 4 of 5 track record of success over many years of investing in litigation. All three funds have been funded by different investors. This diversity gives us confidence there is an appetite for the type of alternative or non-correlated assets we manage and that provided we maintain our track reco
Slide 5: Presentation by Managing Director Andrew Saker
Page 5 of 5 PRESENTATION BY IMF BENTHAM LIMITED MANAGING DIRECTOR ANDREW SAKER TO THE ANNUAL GENERAL MEETING 24 NOVEMBER 2017 For personal use only
Slide 6: Annual General Meeting November 2017
For personal use only ANNUAL GENERAL MEETING 24 November 2017
Slide 7: Worldwide Funding Solutions
Worldwide Funding Solutions IMF BENTHAM For personal use only Five Australian offices and one Asian office funding cases SAN FRANCISCO throughout TORONTO NEW YORK Australia, Asia LOS ANGELES and New HOUSTON Zealand. BENTHAM SINGAPORE IMF Five North BRISBANE American offices PERTH funding cases SYDNE
Slide 8: Overview of IMF Bentham Limited
OVERVIEW OF IMF BENTHAM LIMITED IMF has delivered a global ROIC of 1.6x since listing on the ASX in 2001. IMF is continuing to execute its growth strategy For personal use only including international expansion, diversification and capital management. IMF Fast Facts Detail A leading global litigatio
Slide 9: IMF's Track Record of Success
IMF’s TRACK RECORD OF SUCCESS For personal use only Revenue Summary Revenue to funded claimants $1,310M 62% Revenue to IMF: 128 133 Reimbursement of costs $306M 15% Net income (excluding overheads) $486M 23% IMF total revenue $792M 38% Total revenue generated $2,102M 100% 14 14 15 Completions by Reg
Slide 10: Financial Results Overview
FINANCIAL RESULTS OVERVIEW For personal use only FY2017 FY2016 FY2017 v FY2016 Contract Income $113.3M $99.8M 14% Litigation Expenses $(59.2)M $(46.8)M 26% Net Income (from cases) $54.1M $53.0M 2% Net Operating Expenses $(28.4)M $(26.8)M 5% NPBT $25.7M $26.2M 1% EPS (cents per share) 9.04 cents
Slide 11: Accounting Tax and Tax Payable
ACCOUNTING TAX AND TAX PAYABLE For personal use only Statutory Annual Report FY2017 FY2016 Net Profit Before Income Tax $25.7M $26.2M Income Tax Expense $(10.3)M $(5.3)M Income Tax Expense as % of NPBT 40% 20% Net Profit After Tax $15.4M $20.9M EPS (cents per share) 9.0 cents 12.4 cents Applicable T
Slide 12: Balance Sheet Strength
BALANCE SHEET STRENGTH Cash Investments1 Net Assets For personal use only $M $M $M Cash Investments Net Assets ($ Million) ($ Million) ($ Million) 3 4 2 206.3 201.4 190.9 191.1 185.9 145.6 144.9 142.5 130.1 125.5 105.6 99.5 98.6 86.1 68.0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2
Slide 13: FY2017 Operational Highlights
FY2017 OPERATIONAL HIGHLIGHTS For personal use only Improved sourcing of potential investment opportunities. Rapidly growing and dynamic asset class. High potential for IMF to lead market globally, given existing scale and increasing diversity. 8
Slide 14: Cases and Commitments
CASES AND COMMITMENTS For personal use only Growth derived from: Increase in number of Investment Managers. Maturing offices in US, Canada and Singapore. Launch of new product offerings for corporates and insolvency. Increased targets for funding for Investment Managers. 9
Slide 15: Investment Portfolio at September 2017
INVESTMENT PORTFOLIO AT 30 SEPTEMBER 2017 For personal use only Increase in number of cases currently funded to 70 matters. Increase in estimated portfolio value to $4 billion. Increase in investment in cases represented by intangible asset value of $195 million. 10
Slide 16: Investment Portfolio at September 2017: EPV and capital
INVESTMENT PORTFOLIO AT 30 SEPTEMBER 2017 Australia and Asia – Estimated Portfolio Value For personal use only Possible Possible Possible Number of EPV completion completion completion EPV Range cases $M FY2018 FY2019 FY2020 and later $M $M $M Less than $50M 18 363.2 165.0 116.2 82.0 Greater than $5
Slide 17: Investment Portfolio: Notes to Case Investment Portfolio
INVESTMENT PORTFOLIO AT 30 SEPTEMBER 2017 Notes to the Group’s Case Investment Portfolio For personal use only Past Performance Past performance is not necessarily an indication of future performance. Both the Long Term Conversion Rate and IMF’s global and US ROIC may vary materially over time. By p
Slide 18: Cases Funded Since September 2017
CASES FUNDED SINCE 30 SEPTEMBER 2017 For personal use only IMF has announced unconditional funding of two cases since 30 September 2017: Commonwealth Bank of Australia class action (9 October 2017) Santanol (13 November 2017) IMF has also announced conditional funding of the following cases: W
Slide 19: Case Pipeline at October 2017
CASE PIPELINE AT 31 OCTOBER 2017 For personal use only Exposure to multiple jurisdictions - developed, high growth and emerging. 14
Slide 20: IMF Capital Plans
IMF CAPITAL PLANS For personal use only IMF has now launched a US and RoW fund to fund all new matters from 2017 for the next three years (or until fully deployed). The funds, together with the issue of bonds in 2016 and 2017, have provided IMF with access to approximately $480 million in funds
Slide 21: US Fund Economics and Hypothetical Investment
US FUND ECONOMICS AND HYPOTHETICAL INVESTMENT For personal use only IMF’s US Fund provides an opportunity for IMF to considerably enhance its risk adjusted returns via non- recourse equity finance. Key fund dynamics: Investor IMF Total capital commitments of USD133m with mutual upsize IMF US F
Slide 22: RoW Fund Economics and Hypothetical Investment
RoW FUND ECONOMICS AND HYPOTHETICAL INVESTMENT For personal use only IMF’s RoW Fund, coupled with the ATE cover, provides an opportunity for IMF to fully deploy the fund in a risk managed, non-recourse leveraged equity structure. Key fund dynamics: Investor IMF Total capital commitments of $15
Slide 23: ATE Policy
ATE POLICY ATE policy with “A” grade insurer. For personal use only Limit of $30 million, after excess of $7.5 million. Covers all cases written for the next three years in the RoW fund, irrespective of date of completion. Cost of $10.3 million plus GST and stamp duty, paid out of RoW fund d
Slide 24: Enhanced Risk Management
ENHANCED RISK MANAGEMENT For personal use only IMF’s risk management process includes Case selection, Investment Committee review, and Case Management. Case selection must meet minimum legal, factual and commercial criteria before recommendation to the Investment Committee. Rigorous Investment
Slide 25: Growth Strategy
GROWTH STRATEGY IMF has identified significant opportunities for growth and risk diversification. For personal use only Item Opportunity Major domestic growth Renewed focus on the insolvency market and corporate funding. opportunities Potential opportunities with common fund orders with open cla
Slide 26: Key Risks - IMF
KEY RISKS - IMF Item Description For personal use only Investments in cases which are If a funded case is lost, IMF will lose not only its investment but may, in jurisdictions in which the lost “loser pays” rule applies have to pay the defendant’s costs. Portfolio concentration risk IMF’s financ
Slide 27: Contact details
For personal use only Website: www.imf.com.au Email: info@imf.com.au Telephone: 1800 016 464