Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — IMF Bentham — Shareholder Meeting (November 2015)
31 slides from Omni Bridgeway's shareholder meeting presentation, Nov 20, 2015
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING 20 November 2015
Slide 2: Welcome to the Annual General Meeting
ANNUAL GENERAL MEETING Welcome to the Annual General Meeting of IMF Bentham Limited Michael Kay ‐ Non‐Executive Chairman 2
Slide 3: Managing Director's Presentation
Managing Director’s Presentation November 2015
Slide 4: 2015 Operational Highlights
2015 OPERATIONAL HIGHLIGHTS New Chair, Michael Kay, and Managing Director, Andrew Saker, appointed to drive long term strategy prioritising growth, diversification (geography, case size and type), risk reduction and earnings consistency. In FY2015 we experienced a strong first half with growth a
Slide 5: FY2015 Highlights
FY2015 HIGHLIGHTS FY2014 FY2015 % Gross Income (from ( cases)) $ $75.9M $ $92.3M 22% Net Income (from cases) $25.3M $14.6M 42% NPBT $15.6M $ $9.2M $ 41% NPAT $9.9M $6.3M 36% Dividends (cents per share) 10 cents 10 cents ‐ EPS 6.56 3.78 42% Net Asset Backing $1.16 $1.11 4% Net Cash $57 8M
Slide 6: FY2015 Income
FY2015 INCOME MATTER PORTFOLIO GROSS NET INCOME VALUE INCOME USA Case 003 1H15 $65M $17 3M $17.3M $11 3M $11.3M Premium Income Fund 1H15 $75M $18.3M $7.7M USA Case 008 1H15 $100M $16.1M $7.6M ABC LLearning i (2 cases)) 1H15 $150M $16 7M $16.7M $5 1M $5.1M Confidential Aust. Matter 1H15 $25M $2.4M $1
Slide 7: Balance Sheet Strength
BALANCE SHEET STRENGTH Cash Investments1 Net Assets $M $M $M $130.11 $98.64 $99.48 2 $105.57 $191.13 $185.90 $86.13 $66.00 $67.98 $59.63 $125.50 $62.40 $111.70 $55 01 $55.01 $87.19 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 1 Investments includes capitalised overheads
Slide 8: Historical NPAT and Portfolio Value
HISTORICAL NPAT AND PORTFOLIO VALUE IMF Bentham NPAT & Portfolio Value 2008 to 2015 $50 M $2 50 B $2.50 $45 M $40 M $2.0 B ortfolio Value $35 M NPAT $30 M $1.50 B Po $25 M $20 M $1.0 B NPAT $15 M $10 M $0.50 B NPAT Average $5 M IMF Portfolio att 30 JJune $M $0.0 B 2008 2009 2010 2011 2012 2013 2014
Slide 9: Lost Cases
LOST CASES IMF has only lost 10 cases since listing in 2001 (6%), as follows: Name of Case: Investment Initial Court Appeal P&L Impact Time from ID Investment Loss Decision Decision Decision Year to P&L ( (including g Impact adverse costs) (Years) $ Essington FY2004 N/A FY2005 FY2005 2 $0.1M Marmint
Slide 10: Consistent Risk Management
CONSISTENT RISK MANAGEMENT Risk management process includes: Case selection; Investment Committee review; and Case Management. Case selection C l ti mustt meett minimum i i llegal,l ffactual t l and d commercial i l criteria it i b before f recommendation to the Investment Committee. Rig
Slide 11: Funding Track Record
FUNDING TRACK RECORD IMF’s track record to 30 June 2015 S ttl Settlements t Summary 175 cases commenced and completed since Won listing. ROI off 158% 158%. Average investment period of 2.4 years. 13 Generated revenue of $1.63B: 117 175 Cases $1037M to Clients (64%); Completed $591M to IM
Slide 12: Investment Portfolio at 30 September 2015
INVESTMENT PORTFOLIO AT 30 SEPTEMBER 2015 IMF expects to generate average gross revenue of 15% of the portfolio value over 3 years. % of Possible Possible Possible Est. Claim No of Claim C a Value a ue Range a ge Total oa Completion Co pe o Completion Co pe o Completion Co pe o V l 1 Value C Cases V
Slide 13: Investment Portfolio at 30 September 2015
INVESTMENT PORTFOLIO AT 30 SEPTEMBER 2015 During the September quarter the Group has continued to implement its growth and portfolio diversification strategy. The portfolio includes three new funded matters. The Investment Committee has approved 10 matters for funding, which have not yet resulted
Slide 14: Possible Completions in FY2016
POSSIBLE COMPLETIONS IN FY2016 Below is a list of matters that may complete in FY2016. Other matters may also complete in that period. Matter p Description Bank Fees On 4 February 2014 Justice Gordon delivered judgment in the ANZ Bank Fees matter. The findings in favour of IMF's clients were tha
Slide 15: Growth Strategy and Competitive Strengths
GROWTH STRATEGY AND COMPETITIVE STRENGTHS IMF has identified significant opportunities for growth and diversification. Item Opportunity Major growth opportunities Renewed focus on the insolvency market with new products. onshore Additional products being developed to be launched in FY2016. Lev
Slide 16: Implementation of New Strategy
IMPLEMENTATION OF NEW STRATEGY • Significant growth in aggregate referrals for the 12 month period to 31 October 2015 (over 50%) • Significant uplift in referrals relating to insolvency matters from March 2015 (launch of new offering in Australia) Referrals by month (12mths to end of Oct) 70 60 50 4
Slide 17: Target for Funding New Cases
TARGET FOR FUNDING NEW CASES Target set for 2016 to 2018 as follows: DESCRIPTION 2014 2015 2016 2017 2018 Cases funded 8 21 37 54 61 Funds committed $42M $54M $86M $107M $123M (A$M) 21 new cases were funded in FY2015 which committed funds of $54M. Diversification achieved in 2015 from a larger n
Slide 18: Outlook
OUTLOOK IMF has significant earnings power and has delivered 158% ROI since listing. New strategic phase of growth, international expansion, diversification and capital management. The Company is undertaking a strategic review of its capital and is considering its short and medium term financi
Slide 19: Key Risks
KEY RISKS Item Description Choosing, and remaining in, a If a funded case is lost, IMF will lose not only its investment but may also have to pay the defendant’s funded case that is ultimately costs. lost Reliance on key management IMF depends substantially on its executive directors, senior man
Slide 20: Resolution 1
RESOLUTION 1 "That, "Th t pursuantt to t and d in i accordance d with ith section ti 250R(2) of the Corporations Act and for all other purposes approval is given by the Shareholders for purposes, the adoption of the Remuneration Report on the terms and conditions in the Explanatory Memorandum." 20
Slide 21: Resolution 2
RESOLUTION 2 "That, "Th t pursuantt to t and d in i accordance d with ith Listing Rule 14.4, with article 6.3 of the C tit ti and Constitution d for f allll other th purposes, Mr M Michael Kay, Director, who was appointed as a casuall vacancy on 1 JJuly l 2015 2015, retires ti and being eligible is
Slide 22: Resolution 3
RESOLUTION 3 "That, "Th t pursuantt tot andd in i accordance d with ith article 6.3 of the Constitution and for all other th purposes, M Mr H Hugh hMMcLernon, L Director, retires and being eligible, is re‐elected l t d as a Director Di t on th the tterms and d conditions in the Explanatory M Memoran
Slide 23: Resolution 4
RESOLUTION 4 "That, "Th t pursuantt tot andd in i accordance d with ith article 6.3 of the Constitution and for all other th purposes, M Mr Ald Alden HHalse, l DiDirector, t retires and being eligible, is re‐elected as a Di t on th Director the tterms andd conditions diti iin th the Explanatory Memo
Slide 24: Resolution 5
RESOLUTION 5 "That, "Th t pursuantt tot and d in i accordance d with ith article 6.3 of the Constitution and for all other th purposes, M Ms W Wendy d MMcCarthy, C th Director, retires and being eligible, is re‐elected l t d as a Director Di t on th the tterms and d conditions in the Explanatory M M
Slide 25: Resolution 6
RESOLUTION 6 "Thatt pursuantt to "Th t and d in i accordance d with ith clause 6.5 of the Constitution, Listing Rule 10 17 and 10.17 d ffor allll other th purposes, ththe maximum aggregate remuneration that may be b paid id tto the th non‐executive ti Di Directors t in any year be set at $700,000, t
Slide 26: Resolution 7
RESOLUTION 7 “That, for “Th f the h purposes off ASX Listing Li i Rule R l 7.2 (Exception 9(b)) and Chapter 2D of the C Corporations ti A Actt and d ffor allll other th purposes, approval is given for the Company to adopt a long l term t iincentive ti plan, l b being i theth IMF Bentham Limited Long
Slide 27: Resolution 8
RESOLUTION 8 "That, subject "Th bj to the h passing i off Resolution R l i 7 and pursuant to and in accordance with Li ti Rule Listing R l 10 10.14 14 andd Chapter Ch t 2D off the th Corporations Act and for all other purposes, Sh h ld approve th Shareholders the iissue off Performance Rights to Mr
Slide 28: Resolution 9
RESOLUTION 9 "That, subject "Th bj to the h passing i off Resolution R l i 7 and pursuant to and in accordance with Li ti Rule Listing R l 10 10.14 14 andd Chapter Ch t 2D off the th Corporations Act and for all other purposes, Sh h ld approve th Shareholders the iissue off Performance Rights to Mr
Slide 29: Resolution 10
RESOLUTION 10 “That, pursuant to and in accordance with Chapters 2D and 2E of the Corporations Act and for all other purposes approval be given to the Company to: (a) indemnify each Officer, during their Office and after the cessation of that Office, in respect of certain claims made against that Of
Slide 30: Resolution 11
RESOLUTION 11 “That, “Th t pursuantt to t and d in i accordance d with ith subsection 195(4) of the Corporations Act and d for f allll other th purposes, Shareholders Sh h ld approve the transactions contemplated in R l ti 10." Resolution 10 " 30
Slide 31: Questions
ANNUAL GENERAL MEETING Questions 31