Af Legal Group Limited · ASX:AFL
Af Legal — Investor Presentation (October 2022)
24 slides from Af Legal's investor presentation, Oct 19, 2022
Slide 1: Australian Family Lawyers proposed merger with GTC Legal Group presentation and webinar
ASX Announcement 19 October 2022 Australian Family Lawyers proposed merger with GTC Legal Group presentation and webinar AF Legal Group Ltd (ASX:AFL, AFL or the Company) will host an investor webinar to discuss the proposed merger with GTC Legal Group on Wednesday, 19 October at 2pm AEDT. Grant Dear
Slide 2: Proposed Merger with GTC Legal Group
PROPOSED MERGER WITH GTC LEGAL GROUP 19 October 2022 www.australianfamilylawyers.com.au
Slide 3: Transaction Overview
| Australian BR Family Lawyers 01 TRANSACTION OVERVIEW
Slide 4: Transaction Overview
Transaction Overview • AF Legal Group Limited (“AFL”) has entered into an agreement to acquire 100% of GTC Legal Group Holdings Pty Ltd, the holding company of Armstrong Legal and GTC Lawyers (“GTC”) Transaction Overview • The transaction will create one of the largest personal services legal firms
Slide 5: Directors unanimously recommend shareholders vote in favour of the transaction
The Directors of AFL unanimously recommend that AFL shareholders vote in favour of the transaction Delivers immediate scale, increased revenue and profitability and a more diversified earnings base Greatly expanded and diversified legal offering from family law only to an additional six practice
Slide 6: Introduction to GTC Legal Group
02 INTRODUCTION TO GTC LEGAL GROUP
Slide 7: Founded in 2009 as a legal referral service, GTC is now a diversified legal offering
Founded in 2009 as a legal referral service, GTC is now a diversified legal offering Strong financial profile with Australia’s busiest legal Family Law FY22 revenue of $20m and hotline fielding over 80,000 EBITDA of $5m enquiries each year Criminal Law Australia’s two largest legal Australia’s large
Slide 8: History of GTC
History of GTC Legal referral and First solicitor 100 employees, 700 legal Centralized front Over 110 employees, court agency employee hired referral partners. Website and back office website hits 450,000+ businesses hits 100,000 users per support functions per month, turnover launched month. Turnov
Slide 9: Connecting Australians to good, affordable lawyers
Connecting Australians to good, affordable lawyers GTC OFFERS AUSTRALIANS THE SITUATION FOR The two biggest legal reference websites in the country MOST AUSTRALIANS > Finding a lawyer is a difficult and daunting process A true Legal Hotline, 7am-midnight, 7 days – talk to a lawyer any time > ‘Where
Slide 10: Generates revenue from two distinct brands
Generates revenue from two distinct brands • Traditional Law firm model (versus traditional “partner equity” • Non traditional “Consultant” platform model – ultra fast growing model) model in the UK • High calibre experienced lawyers operating from Armstrong offices • High calibre experienced self-e
Slide 11: Over 450,000 website hits per month with no paid online advertising
A key competitive advantage of GTC is that it attracts over 450,000 hits via its websites per month with NO paid online advertising Website Activity Hyper Local Search Traffic Extensive Local Directories • Over 450,000+ website visits per month • Hyper local traffic “lawyer near me” • Over 125+ Goog
Slide 12: What is the non traditional Consultant platform model?
What is the non traditional “Consultant” platform model? A law firm where lawyers are typically self employed and keep the bulk of client fees, with the remainder going to a central platform for admin, branding and support services GTC provides its Consultant Lawyers with infrastructure and support
Slide 13: The Consultant platform model – the UK experience
The “Consultant” platform model – the UK experience Consultant law firms in the UK are disrupting the legal market The Consultancy Model: Growth Trajectory 67% 60,000 50,000 40,000 33% of lawyers prefer a hybrid home/office work model 30,000 Atlas Cloud, 2020 22% 20,000 10,000 0 of lawyers could be
Slide 14: Merged Group Overview
| Australian BR Family Lawyers 03 MERGED GROUP OVERVIEW
Slide 15: A synergistic approach to driving growth and creating shareholder value
A synergistic approach to driving growth and creating shareholding value Australian Family Lawyers + GTC Legal Group = Merged Group Family, Criminal, Contested Estates, Civil Legal Service offering 1 practice area (Family law only) 7 practice areas (incl. family law) & Commercial, Administrative, Ag
Slide 16: A much larger and more diversified law firm with a difference
We will be a much larger and more diversified law firm with a difference +26 Darwin Family Law offices Criminal Law Alice Springs Sunshine Coast +203 Contested Estates employees Brisbane Gold Coast Civil & Commercial +27% Perth Administrative Adelaide Sydney Canberra FY22 revenue growth Agency Melbo
Slide 17: Addressable market expanded from $1bn to over $20bn
Our addressable market has expanded from $1bn to over $20bn Australia’s personal legal industry is highly fragmented and ripe for disruption Average number of lawyers per firm is 3 – 97.5% of all legal firms employee less than 20 people Family Personal Legal Law $1bn Services Market 18,748 private f
Slide 18: Multi channel revenue sources supported by centralised services function
Multi channel revenue sources supported by a group centralised services function Traditional Owner Operator Non Traditional “Consultant” • Corporatised legal model • Partner Owner Model • No ownership – all consultants are sole traders or run their own firm • 100% subsidiaries • More than 51% majori
Slide 19: A diversified legal offering across a group of quality brands
A diversified legal offering across a group of quality brands Revenue per area of law Operating Brands 5% 7% 23% 63% Family Criminal Contested Estates Civil & Commercial Other Note: “Other” includes Administrative, Agency and Immigration 17
Slide 20: Scalable centralised front office and back office to deliver synergies
Significant and scalable regionally located centralised front office and back office from GTC will deliver synergies across the group upon integration Back office Front office Practice Accounting and Information Human Resources Remote Reception Legal Hotline Digital Marketing Management Payroll Tech
Slide 21: Pro Forma Financial Overview
Pro Forma Financial Overview • Pro forma numbers exclude Pro Forma Profit & Loss FY20 FY21 FY22 Merged Merged Merged immediate and long term revenue and A$’000s Group Group AFL GTC Group expense synergies which are currently Revenue 28,803 32,113 20,462 20,372 40,834 being quantified and expected to
Slide 22: Investment Highlights
Investment Highlights One of the largest specialised personal legal services firms in Australia $20bn+ potential market opportunity $41m Disrupting the legal personal services market with alternative law structures, more scalable labour models and centralized support FY22 Revenue First mover advanta
Slide 23: Disclaimer
Disclaimer The information contained in this presentation or subsequently provided to any recipient of this presentation whether orally or in writing by or on behalf of AF Legal Group Limited ACN 063 366 487 (“AF Legal” or the Company”) or its respective employees, agents or consultants (Information
Slide 24: Thank You
THANK YOU
AF Legal Group — Investor Presentation (October 2022) on 6ix