Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — FY2023 Earnings Presentation
24 slides from Omni Bridgeway's earnings presentation, Aug 23, 2023
Slide 1: FY23 results
OMNI ©) BRIDGEWAY FY?3 results 23 August 2023
Slide 2: Contents
Contents 01 Highlights 04 Strategy 02 Financial results 05 Annexure 03 Portfolio performance Certain terms used throughout this presentation, including but not limited to, total gross income and revenue, investment income, estimated portfolio value (EPV), implied embedded value (IEV), and commitment
Slide 3: Significant growth in key drivers
Significant growth in key drivers Highlights For the 12 months ended 30 June 2023 1 Total gross income and revenue Commitments Funds under management $333.0m +51% $544.2m +17% ~$2.5bn Financial results From diversified sources Achieved a new record Across a balanced portfolio including secondary mar
Slide 4: Financial highlights
Financial highlights Highlights Change from Change from $m 2H23 1H23 FY23 FY22 1H23 FY22 Consolidated Group 1 Litigation investments proceeds 139.6 96.1 45% 235.7 217.3 8% Financial results Cash proceeds on sale of participation in Fund 1 assets 47.7 – 47.7 – Litigation income proceeds (grossed up t
Slide 5: Financial summary
Financial summary Highlights For the 12 months ended 30 June 2023 +$61.1m NPAT 2H23 v 1H23 203% turnaround +31%% management fees on FY22 Financial results reflecting improved income, lower expenses and signalling momentum heading into FY24 $55.2m IYTBR of which 43% converted in Aug-23 Significant im
Slide 6: Optimised capital and operational efficiencies
Optimised capital and operational efficiencies Highlights Financial results Build out of platform Strong improvement in Value created by investment This efficiency is expected to substantially complete, readying operational efficiencies while managers (IMs) well in excess continue as the full contri
Slide 7: Securing portfolio growth to generate future income
Securing portfolio growth to generate future income Highlights 1 1 1 Investments carrying value EPV Commitments $741.8m $30.5bn $544.2m Financial results 544.2 30.5 R 16% % CAG 25 463.3 (67.5) 4% 27.2 GR R 3 CA 412.6 (114.1) G CA Portfolio performance 272.8 (118.2) 29.7 163.4 20.1 181.4 313.2 19.9 1
Slide 8: Balanced and diversified portfolio
1 Balanced and diversified portfolio Highlights • Consistent with mitigating concentration risk, the average investment size across the portfolio is $1.5 m ($0.8m for OBE investments, $2.3m for all other investments). • The 10 largest investments represent 22% of the total portfolio EPV compared to
Slide 9: Portfolio summary
Portfolio summary Highlights Amounts attributable Amounts attributable 1 2 to NCI to Omni Bridgeway Current funded investments Completed investments EPV Success rate Average Average conversion $ weighted At 30-Jun-23 Committed Capital Returns Capital Fees # duration EPV IEV # duration EPV rate avera
Slide 10: $30.5bn EPV
Highlights IEV is based on the realisation of the current unconditionally funded portfolio, utilising a normalised 15% EPV conversion rate. Financial results Estimated value from future completions ~$20m per annum $3.9bn $2.9bn Estimated 4 management fees Portfolio performance $30.5bn from NCI to OB
Slide 11: Management fees
1 Management fees Highlights $m FY19 FY20 FY21 FY22 FY23 FY24F • Includes management fees derived from Investment Management 2 Fund 1 n/a n/a n/a n/a n/a Agreements with the investors in Fund 4, Fund 5 and Fund 7 . Financial results Fund 4 $0.1m $1.2m $2.0m $2.6m $3.4m • Includes management and serv
Slide 12: Potential performance fees of funded portfolio
1 Potential performance fees of funded portfolio Highlights $m ROIC assumption Group historic -0.25x sensitivity +0.25x sensitivity Financial results ROIC 1.10x 0.85x 1.35x IEV- gross proceeds of Fund 4 and Fund 5 2,854 2,854 2,854 Return of investor capital (1.1x ROIC) 1,359 1,543 1,214 Profit 1,49
Slide 13: Outlook
Outlook Highlights We are an alternative asset Our FY24 goals include: Medium term target Financial results manager and investor in • Achieving $625m new commitments or • $1bn annual new commitments or equivalent value through improved pricing equivalent value through improved pricing litigation and
Slide 14: Annexure
Annexure FY23 RESULTS | 23 AUGUST 2023 14
Slide 15: Provisional attribution from estimated future completions
1 Provisional attribution from estimated future completions Highlights $1.0bn of IEV provisionally attributable to OBL, excluding estimated management fees and potential performance fees, is based on the realisation of the current unconditionally funded portfolio and utilising a normalised 15% EPV c
Slide 16: Structure of Funds
1 Structure of Funds Highlights • If an investment is successful, the defendant will pay an agreed amount to the claimant's lawyers trust account. • The lawyer will deduct the fees owing to the Group and pay the balance of funds to the client. • If the claim fails, the Group is responsible for payin
Slide 17: Fund summary at June 2023
Fund summary at 30 June 2023 Highlights Accumulated Accumulated special Accumulated Funds 2&3 Capital called Uncalled capital preferred return distribution management fee Rest of world AUD million Total Investors Omni Total Investors Omni Investors Investors Omni Called 162.8 130.2 32.6 26.2 20.9 5.
Slide 18: Investment income
Investment income Highlights Balance Funds • $338.6m investment income (from income recognised, $m sheet 1 2&3 4 5¹ 6 7 8 Total income yet to be recognised and secondary market Investment income transaction) comprising: Investments completed in FY23 22.0 30.6 17.0 2.7 47.8 18.3 – – 138.4 – $218.8m p
Slide 19: Non-IFRS cashflow and receivables
Non-IFRS cashflow and receivables Highlights Consolidated Group (non-IFRS presentation) $m FY23 FY22 Proceeds from litigation investments - claims portfolio 4.8 13.4 Proceeds from litigation investments - purchase claims 0.7 6.4 Financial results Proceeds from litigation investments - intangible ass
Slide 20: Non-controlling interest (NCI) in Group balance sheet
Non-controlling interest (NCI) in Group balance sheet Highlights • Accelerated returns to investors from first generation funds with $93.2m distributed to providers of third-party capital. • Fund 6 has retained and recycled proceeds to cover the management and servicing contribution during FY23. Fin
Slide 21: Developing regulatory landscape UK
Developing regulatory landscape UK Highlights • In late July 2023, in PACCAR Inc v Competition Appeal Tribunal, the UK Supreme Court overturned earlier decisions in the case and held that the litigation funding agreements (LFAs) at US issue were damages-based agreements (DBA) within the meaning of t
Slide 22: Assumptions relating to the provisional attribution of implied embedded value
Assumptions relating to the provisional attribution of implied embedded Highlights value, estimated management fees and potential performance fees IEV assumptions and notes – refer to slides 10 and 15 Estimated portfolio value (EPV) assumptions: • EPV includes all Portfolio Investments, irrespective
Slide 23: Disclaimer
Disclaimer Highlights • The material in this presentation has been prepared by Omni Bridgeway (OBL) and is general background information about Omni Bridgeway's activities. The information is given in summary form and does not purport to be complete. • A number of terms used in this presentation inc
Slide 24: Global office locations
Americas Asia-Pacific Europe, Middle East & Africa Chicago Minneapolis Montreal Montevideo Melbourne Hong Kong Amsterdam London Dubai +1 872 260 2057 +1 612 488 9211 +1 514 257 6971 +1 514 257 6971 +61 3 9913 3301 +852 3978 2629 +31 70 338 4343 +44 203 968 6061 +971 4 514 4608 500 West Madison 60 So