Shine Justice Ltd. · ASX:SHJ
Shine Justice — H1 FY2019 Earnings Presentation
24 slides from Shine Justice's earnings presentation, Feb 27, 2019
Slide 1: FY19 Half Year Results Investor Presentation
FY19 Half Year Results Investor Presentation Simon Morrison Ravin Raj MANAGING DIRECTOR CHIEF FINANCIAL OFFICER 27 February 2019 ABN 93 162 817 905
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Shine Corporate Ltd and certain plans and objectives of the management of Shine Corporate Ltd. Such forward-looking statements involve both known an
Slide 3: Agenda
Agenda 1 FY19 H1 Highlights 2 FY19 H1 Financial Results 3 Strategic Priorities 4 Outlook 5 Questions FY19 H1 Results Presentation 3
Slide 4: Highlights
Highlights Simon Morrison – Managing Director STRICTLY CONFIDENTIAL FY19 H1 Results Presentation 4
Slide 5: Always Pursue Justice
Always Pursue Justice “Take it from me… now more than ever our community needs people to stand up for them against wrongdoing.” ERIN BROCKOVICH FY19 H1 Results Presentation 5
Slide 6: Corporate Overview
Corporate Overview Shine Group of Companies Shine Lawyers • One of Australia’s largest diversified providers of litigation and specialist resolution services Personal Injury • Lean, standard, major Personal Injury • Sciaccas (QLD) (motor vehicle, claims (motor vehicle, • Continues an ‘inch wide mile
Slide 7: FY19 H1 Highlights – H1 Group Results
FY19 H1 Highlights – H1 Group Results $86.39m $19.56m $7.21m $2.21m $6.62m 1.25 cps NPAT Interim Dividend Revenue EBITDAI¹≠ NPAT GOCF¹* (pre-Impairment) (unfranked) Revenue EBITDAI NPAT GOCF $86.393m $19.556m $2.21m $6.618m $16.477m $7.826m $6.489m $88.231m 50 60 70 80 90 100 0 5 10 15 20 0 5 10 3 4
Slide 8: FY2019 H1 Highlights
FY2019 H1 Highlights Executive Summary • FY19 H1 earnings consistent with historical seasonal experience. • Outlook for 2019 remains on track • Impairment of Goodwill ($5m before income tax) for Land, Energy and Resources due to delay in major infrastructure initiatives and national and State energy
Slide 9: Driving and Diversifying Revenue Growth
Driving and Diversifying Revenue Growth Investment in our people and culture remains our competitive advantage Organic Growth Strategic Acquisitions Carr & Co acquisition is a key step in developing Strong growth in new Shine digital the national family strategy file openings and marketing campaign
Slide 10: Organic Growth – Investment to Drive Growth
Organic Growth – Investment to Drive Growth Increase in total file openings to 31 December 2018 Focus on driving actionable enquiries, increased conversion of file openings, and underlying improvement in organic growth rate Improvements and lift in quality of digital enquiries YoY conversion
Slide 11: Growth through Acquisition
Growth through Acquisition Overview of ACA Lawyers Overview of Carr & Co • Specialist family law practice • Established in 2013 • Established in 1995 • Strong management and reputation as Corporate Class Action specialists • Strong management team • Integrated with Shine Class Actions team in Sydney
Slide 12: FY19 H1 Financial Results
FY19 H1 Financial Results Ravin Raj – Chief Financial Officer STRICTLY CONFIDENTIAL FY19 H1 Results Presentation 12
Slide 13: FY19 H1 Financial Results: Detailed Profit and Loss
FY19 H1 Financial Results: Detailed Profit and Loss FY19 H1 FY18 H1 Variance Variance • Marginal drop in Group revenue, but ($m) ($m) ($m) (%) revenue growth in core business • EBITDAI growth due to adoption of Revenue 86.393 88.231 (1.838) (2.08%) new AASB16 accounting standard, which requires re-c
Slide 14: FY19 H1 Results Overview: Financial Highlights
FY19 H1 Results Overview: Financial Highlights • Reportable EBITDAI and GOCF result Variance FY19 H1 FY18 H1 improved by adoption of new AASB16 (%) accounting standard, whereby operating EBITDAI11 ($m) 19.556m 16.477m 18.69% lease payments are removed from operating cash outflows and reclassified as
Slide 15: FY19 H1 Financial Results: Balance Sheet
FY19 H1 Financial Results: Balance Sheet AS AT ($’000) 31 Dec 18 30 Jun 18 Cash 13,613 22,549 • Cash on hand at 31 December 2018 - lower than expected, offset by higher receivables Receivables 19,293 13,424 Work in progress 268,548 257,037 • Operational Balance sheet items consistent with 30 June 20
Slide 16: FY19 H1 Financial Results: Gross Operating Cash Flow
FY19 H1 Financial Results: Gross Operating Cash Flow * 1H 2H * Includes impact of AASB16 leases and delay in Class Actions billing recovery. FY19 H1 Results Presentation 16
Slide 17: Strategic Priorities
Strategic Priorities STRICTLY CONFIDENTIAL FY19 H1 Results Presentation 17
Slide 18: Committed to Our Long Term Strategy
Committed to Our Long Term Strategy Organic Growth Earnings Growth Growth opportunities in Emerging Practice Improving customer experience with a focus Areas and Personal Injury on quality Build on our national brand and support Invest in organic growth revenue pipeline Optimise cost structure and o
Slide 19: Outlook
Outlook STRICTLY CONFIDENTIAL FY19 H1 Results Presentation 19
Slide 20: Outlook 2019
Outlook 2019 CHAMPION INVEST GROW STRENGTHEN INNOVATE THE CLIENT • Invest in growth • Establish national family • Revenue growth • Elite integration and • Improve customer reflecting opportunities in law practice remains a key objective other technological experience EPA and PI whilst improving init
Slide 21: Questions
Questions STRICTLY CONFIDENTIAL FY19 H1 Results Presentation 21
Slide 22: Appendices
Appendices STRICTLY CONFIDENTIAL FY19 H1 Results Presentation 22
Slide 23: PI Market Profile
PI Market Profile Market Share Client Market Segmentation % of Firms / State TAS 2% ACT 1% SA 6% 7% 9% 23% WA 32% 13% 9% NSW Tasmania 31% QLD Australian Capital Territory 20% New South Wales 76% Victoria 45% VIC 26% Shine Corporate Ltd Over 55 Queensland Maurice Blackburn Western Australia 35 to 54
Slide 24: Sustainability and Community
Sustainability and Community Shine a Light Social Impact Shine A Light Foundation Social and physical supports charitable initiatives to improve organisations that promote well being and mental prevention, rehabilitation, illness education and safety programs for people impacted by injury, injustice