Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — IMF Bentham — H1 FY2019 Earnings Presentation
23 slides from Omni Bridgeway's earnings presentation, February 2019
Slide 1: FY2019 Half Year Results Investor Presentation
For personal use only FY2019 Half Year Results February 2019 Investor Presentation
Slide 2: Summary
Summary During the first half of FY19, IMF continued with developing the infrastructure and resources necessary to support the execution of its For personal use only strategic five-year plan, unconstrained by delays during the period in investment completions: Equity Capital raising: Raised $7
Slide 3: Overview of IMF
Overview of IMF For personal use only IMF’s strategic focus since FY16 has been to diversify risk in its investments, geography and capital sources. H1FY19 reflects the execution of that strategy. IMF Fast Facts Detail A leading global litigation Listed on ASX in 2001. IMF has collected more than
Slide 4: Industry Dynamics
Industry Dynamics For personal use only Total Estimated Addressable Market for United Kingdom Total Estimated Annual Market Legal Spend: $54.9b 74% 26% 13% 86.4% 13.7% 7% Total Estimated Total Estimated Addressable Market Addressable Market for United States for Canada Total Estimated Annual Total E
Slide 5: IMF's Track Record of Success
IMF’S Track Record of Success For personal use only A$2.3b 2.6 years 90% $871m total recoveries average duration success rate IMF’s revenue 166 A$1.4b 80 184 144% ROIC returns for funded active investments funded 2.4x MOIC Delivering claimants investments to completion results for over 17 years 18 3
Slide 6: Financial Results Overview
Financial Results Overview For personal use only 1HY 2019 2HY 2018 1HY 2018 2HY 2018 v 1HY 2019 $M $M $M % Litigation Contract Income 15.3 22.4 48.8 ▼32% Litigation Expenses (15.2) (18.8) (36.1) ▼19% Net gain/(loss) (from cases) 0.1 3.6 12.7 ▼97% Other income (foreign exchange & interest) 6.2 6.7 0.
Slide 7: Cash Accounting
Cash Accounting For personal use only 1HY 2019 2HY 2018 1HY 2018 $M $M $M Cash inflows from operating activities Proceeds from litigation funding - settlements, fees and reimbursements 23.9 14.9 80.0 Cash outflows from operating activities Payments to suppliers and employees (16.4) (17.3) (27.0) Inc
Slide 8: Balance Sheet Strength
Balance Sheet Strength For personal use only Cash 2 Investments 1,2,3 Net Assets 2 ($ Million) ($ Million) ($ Million) 202.6 218.2 198.8 175.4 38.2 257.8 2.4 10.3 203.9 201.4 192.4 191.1 26.0 185.9 195.1 5.5 180.6 153.1 145.6 142.5 139.4 134.2 130.1 122.5 105.6 99.5 98.6 HY19 FY14 FY15 FY16 FY17 FY1
Slide 9: Funding Applications
Funding Applications For personal use only Continued to experience high volumes of applications, with FY19 on track to exceed FY18; demonstrating 5 years of growth. Applications are up on 1HFY18, (457 v. 394), and reasonably consistent with 2HY18 (457 v. 472). Strong contributions from new geo
Slide 10: Recent Completions By Region (since July 2011)
Recent Completions By Region (since 1 July 2011) For personal use only Success rate # of Average Success rate by $ IRR IRR completed investment by number weighted (excluding (including investments length of cases average ROIC overhead) overhead) Rest of World (balance sheet & RoW Fund 2/3) 64 3.00 8
Slide 11: Investments and Commitments
Investments and Commitments For personal use only Growth continuing to be derived from: Increase in number of Investment Managers Maturing offices in North America, Asia and Europe Launch of new product offerings for corporates Increased targets for funding for Investment Managers as a conse
Slide 12: Investment Portfolio at December 2018
Investment Portfolio at 31 December 2018 91 investments For personal use only including 11 Conditionally Funded and Increase in number of investments IC Approved currently funded to 80. investments 3 further investments conditionally funded and 8 investments approved for funding by the Investmen
Slide 13: Investment Portfolio at December 2018
Investment Portfolio at 31 December 2018 (See notes to Investment Portfolio at 31 December 2018 (slide 20) for further details) For personal use only 2 Posssible completion EPV $M Priority Preferred IMF IMF share of # of capital return capital residual Investments EPV1 FY 2019 FY 2020 FY 2021 + call
Slide 14: IMF Capital Plans
IMF Capital Plans For personal use only Fund IMF has commenced preparation and planning of a new Fund for non-US investments (Fund 5). Investments will propagate this new Fund once the committed capital available in RoW Fund 2/3 has been utilised. As at 31 January, $140m was committed to inves
Slide 15: Commitments, Deployed, Capacity
Commitments, Deployed, Capacity at 31 January 2019 For personal use only US Fund (#1) had committed 89.1% of available capacity. Investment Commitments reflect, generally fixed, capital commitments. There are no conditionally funded or Investment Committee approved but not yet funded investments
Slide 16: Strategy
Strategy For personal use only IMF continues to identify opportunities for growth and risk diversification. Item Opportunity Major growth opportunities Focus on development of corporate funding and commercial arbitration in all jurisdictions. Exploring opportunities in Europe including M&A optio
Slide 17: Continuing Concentration Risk Issues
Continuing Concentration Risk Issues For personal use only There remain two material idiosyncratic risks on IMF’s balance sheet, being the Wivenhoe and Westgem investments. Our views on prospects have not changed, but if lost, they will have a material adverse impact on IMF’s profit and loss and
Slide 18: Risk Mitigation
Risk Mitigation For personal use only Risk Potential Impact Strategic Response Portfolio Concentration Potential for a funded case to be lost = IMF investment Deliberate transition from idiosyncratic risk to systemic risk of a portfolio lost and exposure to adverse costs Portfolio represents inc
Slide 19: Risk Mitigation
Risk Mitigation For personal use only Risk Potential Impact Strategic Response IT & Data Security Loss of data due to software or hardware failure Continuous adaptation to be nimble Theft or corruption of data or trade secrets due to social Audits by external security and IT providers engineerin
Slide 20: Notes to the Investment Portfolio at December 2018
Notes to the Investment Portfolio at 31 December 2018 Notes to the Group’s Investment Portfolio For personal use only Investments Included in Portfolio Possible Completion Periods The Investment Portfolio includes investments for which the IMF Group have The possible completion period is IMF’s curre
Slide 21: Disclaimer
Disclaimer For personal use only The material in this presentation has been prepared by IMF Bentham Limited (IMF) and is general background information about IMF's activities. The information is given in summary form and does not purport to be complete. A number of terms used in this presentatio
Slide 22: For personal use only
For personal use only www.imf.com.au info@imf.com.au 1800 016 464
Slide 23: Notes
For personal use only Notes 23