Shine Justice Ltd. · ASX:SHJ
Shine Justice — H1 FY2021 Earnings Presentation
25 slides from Shine Justice's earnings presentation, Feb 24, 2021
Slide 1: FY21 Half Year Results Investor Presentation
24 February 2021 Shine Justice Ltd (SHJ) FY21 Half Year Results Investor Presentation Attached is a copy of the FY21 Half Year Results Investor Presentation. Authorised for release by the Board Annette O’Hara Company Secretary Shine Justice Ltd Tel: 07 3837 9448 aohara@shine.com.au For more informat
Slide 2: Half Year Results Investor Presentation
Shine Justice Ltd Half Year Results Investor Presentation February 2021 Simon Morrison Ravin Raj MANAGING DIRECTOR & CEO CHIEF FINANCIAL OFFICER
Slide 3: Important Notice
Important Notice This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Shine Justice Ltd and certain plans and objectives of the management of Shine Justice Ltd. Such forward-looking statements involve both known
Slide 4: Shine Justice One Unifying Message
Shine Justice One Unifying Message We are a Purpose-driven company Personal Injury New Practice Areas Family Law (motor vehicle, workplace, public liability – lean, standard, major claims) • Class actions • Best Wilson Buckley • Professional and medical Family Law (QLD) • Shine Lawyers negligence •
Slide 5: Agenda
Agenda FY21 H1 Investing in Shine FY21 H1 Financial Justice & Operating Highlights Results Environment 2021 Strategic Priorities and Questions Outlook FY21 H1 Results Presentation | ABN 93 162 817 905 | 4
Slide 6: Responding to COVID-19
Responding to COVID-19… Our People, Clients and Community Despite uncertainty in Our People Our Operations Our Clients short term outlook, our • Throughout the pandemic, • Delivered uninterrupted • Developed new ways core fundamentals the health and safety of our service to our clients to connect wi
Slide 7: Highlights
Highlights Simon Morrison Managing Director & CEO FY21 H1 Results Presentation | ABN 93 162 817 905 | 6
Slide 8: Key Financial Metrics
$93.57m $10.05m $24.29m $33.91m +4.6% +13.9% +12.1% +324.4% Revenue NPAT EBITDAI 1 GOCF 1 2.00¢ 5.80¢ +33.3% +14.2% Key Financial Metrics Interim Dividend (unfranked) EPS (basic) 1 EBITDAI and GOCF are not IFRS calculations which appear in the financial statements, and have not been audited. FY21 H1
Slide 9: Half Year in Review
• Half year result reflects resilient nature of business and demonstrated growth despite macroeconomic uncertainty and Covid-19 • FY21 priorities underpin growth and profitability post pandemic • Underlying profit in line with guidance expectations despite Covid headwinds • Continue to monitor futur
Slide 10: Financial Results
Financial Results Ravin Raj Chief Financial Officer FY21 H1 Results Presentation | ABN 93 162 817 905 | 9
Slide 11: Detailed Profit and Loss
Financial Results PI Revenue – reduction in revenue primarily due Detailed Profit and Loss to impact of consolidation and restructuring in NSW and Victoria and downsizing of non- FY21 H1 FY20 H1 Variance Variance performing work types in prior periods ($m) ($m) ($m) (%) Revenue 93.57 89.44 +4.13 +4.
Slide 12: Financial Highlights
Financial Results Growth in EPS due to Financial Highlights improved profitability FY21 H1 FY20 H1 Variance ($m) ($m) (%) Interim dividend EPS (basic) (cents) 5.80 5.08 +14.2 increased as business Interim dividend per share continues to improve 2.00 1.50 +33.3 (cents) Dividends unfranked FY21 H1 Res
Slide 13: Balance Sheet
Financial Results Balance Sheet Growth in EPS due to improved profitability AS AT ($’000) 31 Dec 20 30 June 20 Cash on hand at 31 December stood at $49.5m Cash 49,515 32,812 Receivables 18,951 12,404 Interim dividend Contract assets increased as business continues - work in progress 287,797 to impro
Slide 14: Gross Operating Cash Flow
FY21 H1 Financial Results Gross Operating Cash Flow (1,3) (1) (1,2) (1,2) (1) 1 From FY19, the GOCF result improved through adoption of AASB 16 2 The FY20 cashflows relating to disbursement funding have been reclassified to be consistent with the current year presentation 3 GOCF includes Mesh class
Slide 15: Shine Cash Funded Disbursements (Net)
FY21 H1 Financial Results Shine Cash Funded Disbursements (Net) Shine Equity Funded Disbursements (Net) • Cash flow improvement strategy commenced FY17 to secure: • Long term disbursement funder • Litigation funding of all new Class Actions • Return of significant Shine equity funds back into the bu
Slide 16: Investing in Shine Justice & Operating Environment
Investing in Shine Justice & Operating Environment Simon Morrison Managing Director & CEO FY21 H1 Results Presentation | ABN 93 162 817 905 | 15
Slide 17: Why invest in Shine Justice? Well positioned with growth opportunities
Why invest in Shine Justice? Well positioned with growth opportunities Our Points of Difference Strong financial model Sustainable growth Capabilities • Strong Balance Sheet • Trusted brand leader (Australia and NZ) • World class technology partners • Consistent growth rate > 40 years • Proven track
Slide 18: Diversified technologies for scale to support long term strategy
Diversified technologies for scale to support long term strategy Deliver end-to-end Industry trends confirm our Build momentum automation across every strategy and approach Smart engagement line of business • Simplified assisted on-boarding process • Matter management • Solutions to facilitate autom
Slide 19: Class Actions – Federal Inquiry
Class Actions – Federal Inquiry Litigation funding and class actions report recommendations* - Increased disclosure obligations on funders and law firms - Court approval of litigation funding agreement to be enforceable Market Update - Adopt 'measured and steady' approach to contingency fees Class A
Slide 20: Strategic Priorities and Outlook
2021 Strategic Priorities and Outlook Shine Justice is a long-term growth- oriented business well positioned to increase market share across our diversified services FY21 H1 Results Presentation | ABN 93 162 817 905 | 19
Slide 21: Outlook 2021
Outlook 2021 Our long-term strategy remains unchanged Grow Strengthen Innovate Champion Shine Justice Shine Justice Shine Justice the Client • Pursue strategic and value • Maintain strong capital • Continue to invest in • Broaden client offerings, accretive opportunities in PI management innovative
Slide 22: Questions
Questions FY21 H1 Results Presentation | ABN 93 162 817 905 | 21
Slide 23: Appendices
Appendices FY21 H1 Results Presentation | ABN 93 162 817 905 | 22
Slide 24: Anticipated Industry Trends 2021+
Class Actions Personal Injury PI Client Market Segmentation • Motor vehicle accidents - growth COVID-19 in line with historical trends due • Workplace / home based to population growth and incidents expected to increase increase in car ownership Aged over 55 • Aged care facilities • Workplace Health
Slide 25: Sustainability and Community
Sustainability and Community Shine A Light Social Impact Shine A Light Foundation supports charitable Social and physical organisations that promote prevention, initiatives to improve well rehabilitation, education and safety programs for being and mental illness. people impacted by injury, injustic