Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — H1 2023 Earnings Presentation
21 slides from Omni Bridgeway's earnings presentation, Feb 23, 2023
Slide 1: 1H23 Results
1H23 Results 23 February 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: Strong portfolio growth
1H23 RESULTS | 23 FEBRUARY 2023 Highlights Strong portfolio growth For the 6 months ended 31 December 2022 Financial results Total gross income and revenue New commitments1 Funds under management2 $170.2m $304.2m ~$3bn From diversified sources and a 55% of FY23 target Across a balanced portfolio sec
Slide 4: Successful execution of strategic and operational objectives
1H23 RESULTS | 23 FEBRUARY 2023 Highlights Successful execution of strategic and operational objectives • Substantial growth in commitments of $304.2m, adding $5.1bn EPV and up 60% on 1H22 (+191% for the US) Financial results • On track to achieve FY23 commitments target of $550 million through stro
Slide 5: Financial highlights
1H23 RESULTS | 23 FEBRUARY 2023 Highlights Financial highlights Change • Diverse sources of revenue from litigation completions, a secondary Financial results $m 1H23 1H22 from 1H22 market sale, management fees, interest Consolidated Group grossed up to include all Funds at 100% Litigation investmen
Slide 6: Optimised capital and operational efficiencies
1H23 RESULTS | 23 FEBRUARY 2023 Highlights Optimised capital and operational efficiencies Value created through scaling our team of legal asset specialists improved operational efficiencies Financial results Demonstrating our ability to attract, retain and develop the best talent in the industry The
Slide 7: Securing portfolio growth to generate future income
1H23 RESULTS | 23 FEBRUARY 2023 Highlights Securing portfolio growth to generate future income Investments carrying value1,2 EPV1,2 Commitments1,2 Financial results $642.9m $29.8bn $304.2m FY23 target $550m to $600m (42.2) Portfolio performance 123.9 (73.5) 30-Dec-22 642.9 Strategy 1H23 304.2 Annexu
Slide 8: Balanced and diversified portfolio
1H23 RESULTS | 23 FEBRUARY 2023 Highlights Balanced and diversified portfolio1 • Diversification provides mitigation to risk of competition and regulatory intervention and portfolio concentration • Consistent with reducing concentration risk, the average investment size across the portfolio is $1.7m
Slide 9: Portfolio summary
1H23 RESULTS | 23 FEBRUARY 2023 Highlights Portfolio summary Amounts attributable Amounts attributable to investors to Omni Bridgeway Current investments Completed investments EPV Success rate Financial results Average Average conversion $ weighted At 31-Dec-22 Committed Capital Returns Capital Fees
Slide 10: Provisional attribution from estimated future completions
1H23 RESULTS | 23 FEBRUARY 2023 Highlights Provisional attribution from estimated future completions1 $1.2bn of IEV and fees provisionally attributed to OBL is based on the realisation of the current unconditionally funded portfolio and utilising past performance of 15% EPV conversion and management
Slide 11: A strong platform for growth
1H23 RESULTS | 23 FEBRUARY 2023 Highlights A strong platform for growth Financial results Our FY23 goals include: FY25 target • $550m to $600m commitment target (20% to 30% yoy • $5bn FUM We are an alternative asset manager and investor in litigation growth) with continued focus on high-quality • $1
Slide 12: Annexure
Annexure
Slide 13: Structure of established Funds
1H23 RESULTS | 23 FEBRUARY 2023 Highlights Structure of established Funds • 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 Financial result
Slide 14: Fund summary
1H23 RESULTS | 23 FEBRUARY 2023 Highlights Fund summary Accumulated Accumulated special Accumulated Capital called Uncalled capital preferred return distribution management fee FUND 1 USA USD million Total Investor Omni Total Investor Omni Investors Investors Omni Launched Feb-17 Called 166.7 125.0
Slide 15: Investment income
1H23 RESULTS | 23 FEBRUARY 2023 Highlights Investment income Funds • $129.4m investment income (recognised and yet to be Balance recognised) comprising: $m sheet 1 2&3 4 5¹ 6 7 Total Investment income – $98.5m attributable to providers of third-party capital, with ~$40m of this relating to our first
Slide 16: Non-controlling interest (NCI) in Group balance sheet
1H23 RESULTS | 23 FEBRUARY 2023 Highlights Non-controlling interest (NCI) in Group balance sheet • Accelerated returns to investors from first generation funds with $71m distributed to providers of third-party capital • Fund 6 have retained and recycled proceeds into investments during the period Fi
Slide 17: IP portfolio in focus – a growing risk adjusted opportunity
1H23 RESULTS | 23 FEBRUARY 2023 Highlights IP portfolio in focus – a growing risk adjusted opportunity Growth opportunity High returns with unique risk mitigants • Fastest area of growth in OBL’s portfolio • Rigorous underwriting by award-winning, global team of former IP litigators from top law Fin
Slide 18: Regulatory reform
1H23 RESULTS | 23 FEBRUARY 2023 Highlights Regulatory reform Financial results US • Some US courts have set rules requiring disclosure of litigation funding arrangements. New Zealand Omni Bridgeway continues to review and consider the implications of such rules. • In June 2022, Aotearoa New Zealand
Slide 19: Provisional attribution from estimated future completions of current portfolio
1H23 RESULTS | 23 FEBRUARY 2023 Highlights Provisional attribution from estimated future completions of current portfolio Assumptions and notes Refer to slide 10 The attribution of implied embedded value (IEV) between OBL equity and non controlling Management fee assumptions: Financial results inter
Slide 20: Disclaimer
1H23 RESULTS | 23 FEBRUARY 2023 Highlights Disclaimer • 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 ter
Slide 21: This presentation is authorised for release to the market by the Board.
This presentation is authorised for release to the market by the Board. 21