Shine Justice Ltd. · ASX:SHJ
Shine Justice — FY2021 Earnings Presentation
22 slides from Shine Justice's earnings presentation, Aug 27, 2021
Slide 1: Shine Justice Ltd (SHJ) FY21 Results Presentation
27 August 2021 Shine Justice Ltd (SHJ) FY21 Results Presentation Attached is Shine Justice Ltd’s full year results presentation for the financial year ended 30 June 2021. Authorised for release by the Board Annette O’Hara Company Secretary Shine Justice Ltd Tel: 07 3837 9448 aohara@shine.com.au For
Slide 2: Shine Justice Ltd Results Investor Presentation
Shine Justice Ltd Results Investor Presentation August 2021 Simon Morrison Ravin Raj MANAGING DIRECTOR & CEO CHIEF FINANCIAL OFFICER ABN 93 162 817 905
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 Personal Injury New Practice Areas Family Law (motor vehicle, workplace, • Shine Lawyers • Best Wilson Buckley public liability, head trauma) (QLD) • Class actions Strong base • Shine Lawyers • Carr & Co (WA) • Abuse law established for future • Sciaccas (QLD) Gr
Slide 5: Agenda
Agenda 1 FY21 Highlights 2 FY21 Financial Results 3 Investing in Shine Justice & Operating Environment 4 FY22 Strategic Priorities and Outlook 5 Questions Shine Justice Ltd | ABN 93 162 817 905 FY21 Results Presentation | 4
Slide 6: FY21 Highlights
FY21 Highlights Simon Morrison Managing Director & CEO Shine Justice Ltd | ABN 93 162 817 905 FY21 Results Presentation | 5
Slide 7: Key Financial Metrics
Revenue NPAT Key Financial $193.65m $25.59m +18.75% Metrics +5.80% Underlying EBITDA1 GOCF1,2 EBITDA $47.44m $54.65m $56.16m +11.57% +58.13% +9.79% Final Dividend (unfranked) EPS (basic) 3.25c $14.75c +18.18% +18.95% 1 EBITDA and GOCF are not IFRS calculations which appear in the financial statement
Slide 8: FY21 Highlights
FY21 Highlights Resilient performance in a tough market Assessment of Mesh class Strong market position and Diversification of services and action group member claims diversification strategy achieves geography continues to underpin expected to follow for a number solid earnings growth and sustainab
Slide 9: FY21 Financial Results
FY21 Financial Results Ravin Raj Chief Financial Officer Shine Justice Ltd | ABN 93 162 817 905 FY21 Results Presentation | 8
Slide 10: Financial Results: Detailed Profit & Loss
FY21 Financial Results: Detailed Profit & Loss FY21 ($m) FY20 ($m) Variance ($m) Variance (%) • Improvement in revenue mainly due to growth in Revenue 193.65 183.03 ↑10.62 ↑5.80 NPA segment NPAT 25.59 21.55 ↑4.04 ↑18.75 • Growth in NPAT due to revenue growth and lower EBITDA1 56.16 51.15 ↑5.01 ↑9.79
Slide 11: Financial Results: Financial Highlights
FY21 Financial Results: Financial Highlights FY21 FY20 Variance Variance (%) • EPS growth reflects growth in NPAT Earnings per share 14.75 12.40 ↑2.35 ↑18.95 (cents) • Final and full year Final dividend per dividend payout ratio 3.25 2.75 ↑0.50 ↑18.18 share (cents) increased as outlook for Full year
Slide 12: Financial Results: Balance Sheet
FY21 Financial Results: Balance Sheet AS AT ($’000) 30 June 21 30 June 20 • Cash on hand includes Mesh class Cash 55,992 32,812 action funds received in December 2020 Receivables 15,272 12,404 Work in progress 299,312 305,102 • WIP levels sustained even disregarding receipt of partial Mesh Unbilled
Slide 13: Financial Results: Gross Operating Cash Flow
FY21 Financial Results: Gross Operating Cash Flow 60 54.65 50 20.74 GOCF $m 40 34.56 31.3 30 21.9 21.46 20 18.7 19.2 24.7 33.91* 13.0 15.4 15.2 14 10 9.7 13.10 5.2 6.5 6.6 3.3 3.5 0 FY15 FY16 FY17 FY18 FY19 FY20 FY21 1H 2H * Includes Mesh Class Action cash of $20.91 million, net of GST. Shine Justic
Slide 14: Investing in Shine Justice & Operating Environment
FY21 Investing in Shine Justice & Operating Environment Simon Morrison Managing Director & CEO Shine Justice Ltd | ABN 93 162 817 905 FY21 Results Presentation | 13
Slide 15: Key Financial Highlights
Key Financial Highlights A defensive and scalable business over 45 years Revenue and EBITDA1 Margin (A$m) EBITDA Margin • Resilience 1 • Performed strongly throughout COVID-19 headwinds 22.1% 21.0% 26.6% 177.9 28.0% 183.0 29.0% 193.6 179.4 165.0 FY17 FY18 FY19 FY20 FY21 Revenue Composition (%) • Div
Slide 16: Class Actions Initiatives & Update
Class Actions Initiatives & Update • Litigation funding utilised in majority of class actions • Expected improvement in FY22 gross operating cashflow • Historically WIP absorbed until completion of class action but now monthly invoicing and cash collections for all funded matters • Competitive advan
Slide 17: FY22 Strategic Priorities and Outlook
FY22 Strategic Priorities and Outlook Shine Justice Ltd | ABN 93 162 817 905 FY21 Results Presentation | 16
Slide 18: Outlook FY22
Outlook FY22 Well positioned to increase market share across our diversified services Champion Prioritise Grow Strengthen Innovate the Client People Shine Justice Shine Justice Shine Justice • Implement online tracker • Increased Manager and • Investment in new and • Maintain strong capital • Commit
Slide 19: Appendices
Appendices Shine Justice Ltd | ABN 93 162 817 905 FY21 Results Presentation | 18
Slide 20: Our People and Shine Justice
Our People and Shine Justice Australia & New Zealand Learning & Development Social Equality & Justice • 10 business divisions • Long term investment • Always standing up for across the Group approach in learning the little guy and and capabilities shining a light on • 978 staff in Qld, NSW, injustic
Slide 21: Sustainability and Community
Sustainability and Community Supporting Community Supporting the Environment We actively support charitable and We ensure communities have access to We recognise our activities impact the not-for-profit organisations that deliver the justice they deserve through environment meaningful contributions
Slide 22: COVID-19 Update and Impact
COVID-19 Update and Impact Despite the ongoing • Provided opportunities to be adaptable • Little or no impact to revenue, cash and innovative conversion and new file openings challenges in the global economy, our • Employees have returned to working in • Ongoing business and risk mitigation the offi