Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — IMF Bentham — FY2016 Earnings Presentation
23 slides from Omni Bridgeway's earnings presentation, August 2016
Slide 1: FY2016 Full Year Results Investor Presentation
FY2016 Full Year Results August 2016 Investor Presentation
Slide 2: Overview of IMF Bentham Limited
OVERVIEW OF IMF BENTHAM LIMITED IMF has delivered a MOIC of 1.55x since listing. IMF is continuing to execute its growth strategy including international expansion, diversification and capital management. IMF Fast Facts Detail A leading global litigation Listed on ASX in 2001. funder Market cap
Slide 3: North American Business
NORTH AMERICAN BUSINESS IMF commenced its geographical diversification strategy in 2011 with its first international office in New York. Item Description Expanded footprint in US Opened its first office in New York in August 2011. Offices subsequently opened in Los Angeles in September 2013 and
Slide 4: Organisation Chart
ORGANISATION CHART Board of Directors Managing Director and Chief Executive Officer Andrew Saker Chief Executive us Charlie Goliow Chief investment Officer us Ralph Sutton Investment Management Team New York, Los Angeles, San Francisco US Marketing Team US Support Staff IMF BENTHAM INTERNATIONAL LIT
Slide 5: Investment Process – 7 steps
INVESTMENT PROCESS – 7 steps 2. Investment 3. Investment 4. Funding 1. Claim Manager Committee offer • Confidentiality • Evaluation of the • Due diligence report • Agreement executed Agreement signed opportunity reviewed by all parties • Initial assessment • Prepare due diligence • Consideration of
Slide 6: Consistent Risk Management
CONSISTENT RISK MANAGEMENT Risk management process includes: – Case selection, – Investment Committee review, and – Case Management. Case selection must meet minimum legal, factual and commercial criteria before recommendation to the Investment Committee. Rigorous Investment Committee process
Slide 7: Opportunities vs Funding (IMF Bentham Group)
OPPORTUNITIES vs FUNDING (IMF Bentham Group) 7
Slide 8: Agenda
AGENDA 1. Result overview and FY16 Highlights 2. Financial Performance 3. Outlook & Key Priorities 4. Appendices 8
Slide 9: Result Overview and Highlights
RESULT OVERVIEW and HIGHLIGHTS FY2014 FY2015 FY2016 FY2016 v FY2015 Contract Income $75.9M $92.3M $99.7M 8% Litigation Expenses $(34.5)M $(49.1)M $(33.9)M 31% Losses $(16.1)M $(28.6)M $(12.9)M 55% Net Income (from cases) $25.3M $14.6M $53.0M 263% Total Revenue $27.9M $27.1M $56.4M 108% Ope
Slide 10: Investment Portfolio at 30 June 2016
INVESTMENT PORTFOLIO AT 30 JUNE 2016 IMF has generated average gross revenue in excess of 15% of the portfolio value at the time the matter is completed. (b) (b) (b) (a) Proportion Possible Possible Possible Estimated Number of Claim value range of total completion completion completion claim value
Slide 11: Implementation of Strategy
IMPLEMENTATION OF STRATEGY We have achieved a number of key outcomes: Increased geographic footprint in North America with the opening of our office in Canada in January 2016; Increased the number of matters funded from 39 to 54 and the portfolio from $2.0BN to $3.4BN; Increased our infrastr
Slide 12: Agenda
AGENDA 1. Result overview and FY16 Highlights 2. Financial Performance 3. Outlook & Key Priorities 4. Appendices 12
Slide 13: Profit and Loss Statement 30 June 2016
PROFIT AND LOSS STATEMENT 30 JUNE 2016 OTHER INCOME $’000 $’000 Revenue 3,448 Litigation settlements and judgments 99,797 Other income 52,971 Litigation expenses (22,540) Finance costs (596) Litigation written‐down (11,389) Depreciation expense (451) Net gain on derecognition of intangible assets 65
Slide 14: Balance Sheet 30 June 2016
BALANCE SHEET 30 JUNE 2016 $’000 ASSETS Cash and cash equivalents 142,529 Trade and other receivables 49,207 Intangible assets 145,634 INTANGIBLE ASSETS $’000 Other assets 2,145 Capitalised external costs 119,472 TOTAL ASSETS 339,515 Capitalised internal costs 17,565 Capitalised borrowing costs 8,59
Slide 15: Balance Sheet Strength
BALANCE SHEET STRENGTH Cash Investments1 Net Assets $M $M $M $142.53 $145.60 3 $130.11 2 $201.39 $191.13 $185.90 $105.57 $98.64 $99.48 $86.13 $125.50 $111.70 $67.98 $66.00 $62.40 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 1 Investments includes capitalised overheads r
Slide 16: Funding Track Record
FUNDING TRACK RECORD IMF’s track record to 30 June 2016 Settlements Summary 187 cases commenced and completed since Won listing. MOIC of 1.55x. 13 Average investment period of 2.4 years. Generated total revenue of $1,847M: 187 Cases $1,162M to Clients (63%); 123 Completed $685M to IMF co
Slide 17: Agenda
AGENDA 1. Result overview and FY16 Highlights 2. Financial Performance 3. Outlook & Key Priorities 4. Appendices 17
Slide 18: European Exit
EUROPEAN EXIT In July 2016 IMF completed the sale of its interest in the European JV to its former JV partner for €4.01M, recognising a profit before tax on disposal of approximately $4M. IMF is now restrained from funding in certain parts of Europe for a period of 12 months. IMF entered into th
Slide 19: Growth Strategy
GROWTH STRATEGY The Company’s focus for the next 12 months includes: Further geographic expansion requiring the assessment of additional offices in the US and possibly in Asia where IMF is currently funding two cases in Hong Kong Consider new products to be launched including a family law offe
Slide 20: Capital Management
CAPITAL MANAGEMENT One of key priorities for FY17 will be implementing a capital management plan to fund US investments. Exploring opportunities with placement agents and US lawyers. Key benefits for IMF include risk mitigation, improved returns to shareholders through an alternative revenue s
Slide 21: Agenda
AGENDA 1. Result overview and FY16 Highlights 2. Financial Performance 3. Outlook & Key Priorities 4. Appendices 21
Slide 22: EBIT Invested Capital & Returns
EBIT INVESTED CAPITAL & RETURNS EBIT Invested Capital & Returns 350,000 60% 300,000 50% 250,000 40% 200,000 30% 150,000 20% 100,000 50,000 10% ‐ 0% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 EBIT Invested Capital (Cash + Intangible Assets) EBIT/Invested Capital 22
Slide 23: NPAT, Equity and ROE
NPAT, EQUITY AND ROE IMF NPAT, Equity and ROE 250,000 45% 40% 200,000 35% 30% 150,000 25% 20% 100,000 15% 50,000 10% 5% ‐ 0% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 NPAT Equity ROE 23