Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — Bentham IMF — ASX Spotlight Conference 2014
19 slides from Omni Bridgeway's conference presentation, May 27, 2014
Slide 1: ASX Spotlight Conference
ASX SPOTLIGHT CONFERENCE Hong Kong – 27 May 2014 For personal use only Singapore – 29 May 2014 Clive Bowman Executive Director / Director of Operations
Slide 2: Contents
CONTENTS What is Litigation Funding? For personal use only Overview of Bentham IMF Limited HY2014 Highlights Balance Sheet Dividend Di id d Hi History t Investment Portfolio Investment Portfolio History Possible Completions in 2H14 Track Record Wivenhoe Dam Claim Structured Fin
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 relevant
Slide 4: Overview of Bentham IMF Limited
OVERVIEW OF BENTHAM IMF LIMITED 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. litig
Slide 5: Overview of Bentham IMF Limited: growth opportunities
OVERVIEW OF BENTHAM IMF LIMITED For personal use only IMF has identified significant growth opportunities Item Description Major growth IMF confirmed it would fund the Wivenhoe Dam case in Australia, which is expected opportunities onshore to be its largest case funded to date. IMF also recently
Slide 6: HY2014 Highlights
HY2014 HIGHLIGHTS For personal use only HY2013 HY2014 % Gross Income (from cases) $ $20.6M $ $33.6M 63% Net Income (from cases) $10.5M $16.9M 61% NPBT $8.7M $13.6M 56% NPAT $5.6M $9.1M 63% Interim Dividend (cents per share) Nil 5 cents 5 cents EPS 4.55 6.70 47% Net Asset Backing (cents per
Slide 7: Balance Sheet Strength
BALANCE SHEET STRENGTH For personal use only Cash Investments1 Net Assets $M $M $M $85.80 $98.50 $196.902 $70 90 $70.90 $70 00 $70.00 $86.00 $62.40 $74.20 $69.19 $66.00 $52.31 $125.50 $117.30 $111.70 $ $92.97 HY12 FY12 HY13 FY13 HY14 HY12 FY12 HY13 FY13 HY14 HY12 FY12 HY13 FY13 HY14 1 Investments in
Slide 8: Dividend History
DIVIDEND HISTORY For personal use only Average dividend paid to shareholders of 10 cents per share paid to shareholders over the last 5 years, all fully franked. Date Cents per share FY2009 15 Fully franked FY2010 5 Fully franked FY2011 15 Fully franked FY2012 10 Fully franked FY2013 5 Fully franked
Slide 9: Investment Portfolio
INVESTMENT PORTFOLIO For personal use only Case Investment Portfolio as at 31 March 2014 % of Possible Possible Possible Claim Value Est. Claim No 2 Total ota Completion Co p et o Completion Co p et o Completion Co p et o R Range V l Value off Cases C Value FY20143 FY20153 FY2016+3 <$10M $27M 5 1% $
Slide 10: 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 11: Possible Completions in 2H14
POSSIBLE COMPLETIONS IN 2H14 For personal use only Given the nature of litigation, the expected completion allocation of the portfolio between years may change. This occurred in the September assessment as Court dates for two large cases moved into FY2015 and again in March when both the Lehman case
Slide 12: Track Record
TRACK RECORD For personal use only IMF’s track record to 30 April 2014 Summary 155 cases commenced and completed since listing. Average investment period of 2.3 years. Generated revenue of $1 $1.4B: 4B: $919M to Clients (65%); 35 $498M to IMF comprising: Withdrawals • $175M reimbursement o
Slide 13: Wivenhoe Dam Claim
WIVENHOE DAM CLAIM For personal use only Feb 2012: IMF announced an investigation into: i. whether the Dam was negligently operated in January 2011 and, iff so; ii. whether funded parties suffered sufficient unnecessary loss to make proceedings against the State of Queensland viable. Jan 2013: I
Slide 14: Structured Finance Ratings Claims
STRUCTURED FINANCE RATINGS CLAIMS For personal use only Sep 2012 Judgment against distributor – Lehman Brothers Australia. Nov 2012 Judgment against ratings agency S&P, ABN and Local Government Financial Services (LGFS). Nov 2012 Filed further claim against S&P and ABN Amro in Australia. Dec 2012 Cr
Slide 15: New Cases
NEW CASES For personal use only The following matters have been funded since 1 January 2014: Matter Description Forge IMF is funding claims against Forge and/or its directors for alleged b breaches h byb Forge F off its i continuous i disclosure di l obligations bli i in i connection i with the West
Slide 16: Future Outlook
FUTURE OUTLOOK For personal use only Australia Building B ildi th the investment i t t portfolio tf li >$2B. $2B Competition. Regulation. Taking funding international Expansion in the United States Bentham US 9 funded cases to date. Expansion into the United Kingdom. Fundingg of intern
Slide 17: Key Risks
KEY RISKS For personal use only Reliance on key management 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 b no detrimental be d l
Slide 18: Key Risks
KEY RISKS For personal use only Growth IMF is currently pursuing a strategy of international expansion, having recently opened an office in Los Angeles and entered into a joint venture to fund cases in Europe. There are always risks attendant upon growth strategies. There h is a risk, k for f inst
Slide 19: Key Risks
KEY RISKS For personal use only Changes in the law It is possible that statute law or the interpretation of the common law may change in a way which is adverse to the interests of IMF. There are now numerous Court decisions in Australia and the UK (both single Judge and Courts off Appeall ) suppor