Shine Justice Ltd. · ASX:SHJ
Shine Justice — H1 FY2018 Earnings Presentation
26 slides from Shine Justice's earnings presentation, Feb 28, 2018
Slide 1: FY 2018 Half Year Results Investor Presentation
FY 2018 Half Year Results Investor Presentation 28 February 2018 Simon Morrison Ravin Raj MANAGING DIRECTOR CHIEF FINANCIAL OFFICER STRICTLY CONFIDENTIAL
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Shine Corporate Ltd and certain plans and objectives of the management of Shine Corporate Ltd. Such forward-looking statements involve both known an
Slide 3: Agenda
Agenda 1 FY18 H1 Highlights 2 FY18 H1 Financial Results 3 Strategic Priorities 4 Outlook 5 Questions STRICTLY CONFIDENTIAL FY18 H1 Results Presentation | ABN 93 162 817 905 3
Slide 4: Highlights
Highlights Simon Morrison – Managing Director STRICTLY CONFIDENTIAL FY18 H1 Results Presentation | ABN 93 162 817 905 4
Slide 5: Always Pursue Justice
Always Pursue Justice “Take it from me… now more than ever our community needs people to stand up for them against wrongdoing.” ERIN BROCKOVICH STRICTLY CONFIDENTIAL FY18 H1 Results Presentation | ABN 93 162 817 905 5
Slide 6: Corporate Overview
Corporate Overview Shine Group of Companies • One of Australia’s largest providers Shine Lawyers Other Subsidiaries of litigation and specialist resolution • Lean, standard, major • Sciaccas (QLD) services Personal Injury claims Personal Injury (motor vehicle, (motor vehicle, • SB Law t/as Stephen B
Slide 7: FY2018 H1 Highlights: a strong result
FY2018 H1 Highlights: a strong result 1 Operations Strong financial performance 2 Transformation rollout and integration underway $7.83M $16.48M Class Actions NPAT EBITDA 3 Growing pipeline $88.23M $6.49M Emerging practice areas Group Revenue GOCF 4 Continued growth opportunities EBITDA means Earnin
Slide 8: Our journey to become a more diversified Group continues
Our journey to become a more diversified Group continues FY 15 FY 16 FY 17 Emerging Practice 26% 22% 34% Areas have increased Emerging Practice Areas to 34% of total Group revenue over the past Personal Injury three years… 78% 74% 66% FY 15 FY 16 FY 17 … while the Group 46% 38% 35% now derives two-t
Slide 9: H1 result driven by our 2018 strategic priorities
H1 result driven by our 2018 strategic priorities CHAMPION INVEST GROW STRENGTHEN INNOVATE THE CLIENT • Growth opportunities • Develop national • Installed leadership • Delivered • Improving customer in Emerging Practice family law practice team with key transformation on experience with a Areas and
Slide 10: FY18 H1 Financial Results
FY18 H1 Financial Results Ravin Raj – Chief Financial Officer STRICTLY CONFIDENTIAL FY18 H1 Results Presentation | ABN 93 162 817 905 10
Slide 11: FY18 H1 Group Results
FY18 H1 Group Results $88.231m $7.826m $16.477m $6.487m 1.0cps Interim Dividend Revenue NPAT EBITDA1 GOCF1 (franked) Revenue NPAT EBITDA GOCF $88.231m $7.826m $16.477m $6.487m $73.955m $3.917m $10.192m $5.212m 50 60 70 80 90 100 0 5 10 0 5 10 15 20 3 4 5 6 7 1H 2018 1H 2017 1H 2018 1H 2017 1H 2018 1
Slide 12: FY18 H1 Financial Results: Detailed Profit and Loss
FY18 H1 Financial Results: Detailed Profit and Loss FY18 H1 FY17 H1 Variance Variance ($m) ($m) ($m) (%) • Revenue in FY18 H1 grew by Revenue 88.231m 73.955m 14.276m ↑ 19.30% $14.276m (19.3%) compared to FY17 H1, attributable to organic growth and the Mesh Class NPAT1 7.826m 3.917m 3.909m ↑ 99.78% A
Slide 13: FY18 H1 Results Overview: Financial Highlights
FY18 H1 Results Overview: Financial Highlights Variance FY18 H1 FY17 H1 (%) Revenue incl. WIP movement ($m) 88.23m 73.96m ↑ 19.30% NPAT1 ($m) 7.83m 3.92m ↑ 99.78% EBITDA2 ($m) 16.4m 10.19m ↑ 61.73% Gross Operating Cash Flow3 ($m) (GOCF) 6.49m 5.21m ↑ 24.57% EPS4 (cents) 4.52¢ 2.26¢ ↑ 100% 1.0¢ 0.6¢
Slide 14: FY18 H1 Financial Results: Balance Sheet
FY18 H1 Financial Results: Balance Sheet AS AT ($’000) 31 Dec 17 30 Jun 17 Cash 28,877 14,188 • Cash on hand at 31 December 2017 was Receivables 13,701 15,458 $28.8m Work in progress 247,610 226,334 • Net WIP grew by 9% ($21m) to $247.6m, primarily from organic growth within Shine Unbilled disbursem
Slide 15: FY18 H1 Financial Results: Gross Operating Cash Flow
FY18 H1 Financial Results: Gross Operating Cash Flow GOCF for each half year period ($m) 20 19.2 18.8 18 16 14 13 12 14.0 10.5 15.2 10 8 9.7 6 10.1 4 6.49 5.2 2 3.6 3.3 0.4 0 FY14 FY15 FY16 FY17 FY18 1H 2H STRICTLY CONFIDENTIAL FY18 H1 Results Presentation | ABN 93 162 817 905 15
Slide 16: Net Debt
Net Debt 50 45 (2) 4 - 40 3 - 35 30 AUD Millions 25 43 20 38 15 10 5 - 30-Jun-17 Earnout / Def. Consid. Asset purchases Operating cash flow less 31-Dec-17 dividend paid STRICTLY CONFIDENTIAL FY18 H1 Results Presentation | ABN 93 162 817 905 16
Slide 17: Strategic Priorities and Outlook
Strategic Priorities and Outlook STRICTLY CONFIDENTIAL FY18 H1 Results Presentation | ABN 93 162 817 905 17
Slide 18: We are committed to our long term strategy by…
We are committed to our long term strategy by… 1. Undertaking a Target Operating Model process across the Group to improve efficiencies and integrate our subsidiary businesses 2. Improving the capability of our service offerings with better training, client service focus and execution 3. Identifying
Slide 19: Marketing & Brand – Shine's Proposition
Marketing & Brand – Shine’s Proposition Grow Shine • Strong brand awareness in key areas of operation • An integrated portfolio of businesses and services Improve Client conversion National brand experience rates • Digital strategy to support the client journey • Increased focus on key strategic par
Slide 20: Outlook
Outlook STRICTLY CONFIDENTIAL FY18 H1 Results Presentation | ABN 93 162 817 905 20
Slide 21: Outlook 2018: anticipating and responding to change
Outlook 2018: anticipating and responding to change Operations & Financial Opportunities & Growth FY18+ Priorities Optimise our business platform Investment in innovation Invest in Capital EPA pipeline technology discipline Enhance client experience National marketing and brand strategy Strong balan
Slide 22: Questions
Questions STRICTLY CONFIDENTIAL FY18 H1 Results Presentation | ABN 93 162 817 905 22
Slide 23: Appendices
Appendices STRICTLY CONFIDENTIAL FY18 H1 Results Presentation | ABN 93 162 817 905 23
Slide 24: PI Market Profile
PI Market Profile Market Share Client Market Segmentation % of Firms / State 7% 11% QLD 23% 20% 13% Shine 32% 13% NSW Over 55 Slater & Gordon 9% 35 to 54 VIC Maurice Blackburn Other Under 35 WA 71% 30% 26% Other 45% Source: IBISWorld Industry Report OD5519: Personal and Workplace Injury Lawyers in A
Slide 25: Our People
Our People PFAS Contamination Oakey, Katherine, Townsville, Darwin, Wodonga • Personal injury (motor vehicle, Key Practice workplace, public liability) Areas • Superannuation and disability • Abuse law • Class actions • Product Liability • Aviation Skills and • Professional and medical negligence Ca
Slide 26: Sustainability and Community
Sustainability and Community Shine A Light Foundation supports charitable organisations that promote prevention, rehabilitation, education and safety programs for people impacted by injury, injustice and adversity. Actively supporting schools and sporting organisations as part of promoting health an