Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — FY2024 Earnings Presentation
36 slides from Omni Bridgeway's earnings presentation, Aug 29, 2024
Slide 1: FY24 results
FY24 results 29 August 2024 > << > Llu = Za =a Om O
Slide 2: Contents
Contents 01 Highlights 04 Strategic priorities 02 Portfolio & fair value 05 Annexure 03 Financial results Please read the further information on the terms used in this presentation and the notes detailed on slide 32. FY24 RESULTS | 29 August 2024 2
Slide 3: Highlights
Highlights Highlights For the 12 months ended 30 June 2024 1,2 5 Investment income and fee revenue Portfolio fair value Cash and receivables Portfolio & fair value A$277.0m -10% on FY23 A$2.8bn +11% on 1H24 A$121.4m Plus A$140.9m total IYTBR >A$1 bn of OBL-only fair value Including A$28.7m of OBL sh
Slide 4: Status of transition and strategic priorities
Status of transition and strategic priorities Highlights Achieved / Completed On Track Pending Portfolio & fair value Reporting and disclosures Portfolio investment performance Improving • Provided a strategic update on OBL. 2.7x MOIC for the year, significantly performance exceeding our long term t
Slide 5: Status of transition and strategic priorities (cont'd)
Status of transition and strategic priorities (cont'd) Highlights Achieved / Completed On Track Pending Portfolio & fair value New investments and fund capital Platform and cost management Target of A$625 Successfully expanded in the UK. 67 new investments, and A$631m in new fair value Strengthening
Slide 6: Industry leading investment performance metrics
Industry leading investment performance metrics Highlights • Generated a market leading uncorrelated return of 2.7x MOIC from a diversified set of 77 full and partial completions. 6 7,10 • This compares to 2.2x MOIC and 77% IRR full life to date. Portfolio & fair value • Investments reported as IYTB
Slide 7: Continued portfolio growth to generate future income
Continued portfolio growth to generate future income Highlights 5 5 Investments carrying value New fair value and commitments for the year 631 A$896.3m A$631.2m Portfolio & fair value 75 317 544 979 (85) 484 463 799 772 413 711 Financial results $896.3m 648 (99) 313 427 223 Strategic priorities Fair
Slide 8: Portfolio diversification and concentration
Portfolio diversification and concentration Highlights • The portfolio remains well diversified geographically and by area of law. • Continued low concentration of fair value and commitments on 10 largest investments. Portfolio & fair value Fair value by region Fair value by investment type Fair val
Slide 9: Portfolio fair value and OBL-only fair value
Portfolio fair value and OBL-only fair value Highlights Portfolio & fair value Total portfolio fair value OBL-only fair value • Total portfolio value of A$2.8bn20 at 30-Jun-2024, up +11% +12% 11% on 31-Dec-2023. A$2.8bn A$1,042m • A$1,042m attributable to OBL, A$2.5bn Financial results A$928m up 12%
Slide 10: Fair value movement bridge in 2H24
Fair value movement bridge in 2H24 Highlights Portfolio & fair value A$256m A$61m A$2.8bn • New commitments in FY24 have 3 added A$631 million of fair value, (A$50m) achieving full year value generation A$2.5bn goal of A$625m. Financial results • Fair value per dollar of new commitments was 1.30x in
Slide 11: Illustrative OBL-only fair value P&L for 2H24
Illustrative OBL-only fair value P&L for 2H24 Highlights Portfolio & fair value A$m 2H24 • The illustrative OBL only FV P&L (on a non-IFRS basis) provides for a better understanding of the overall net Cash litigation investments proceeds 23.6 value generation in the period, which is not brought gain
Slide 12: FY24 Financial results - Consolidated Group
FY24 Financial results - Consolidated Group Highlights A$m FY24 FY23 Consolidated Group • Total statutory income of A$205.4m, up 76% on FY23. Portfolio & fair value Litigation investments proceeds 216.8 235.7 Proceeds from secondary market transaction 31.5 47.7 Litigation income proceeds (grossed up
Slide 13: Non-IFRS OBL-only cash P&L
Non-IFRS OBL-only cash P&L Highlights A$m FY24 FY23 • The non-IFRS OBL only cash P&L provides for a better Portfolio & fair value understanding of the net cash generation in the period, excluding Litigation investments proceeds 83.7 73.4 the impact of the consolidation of the funds and the associate
Slide 14: Improving cost coverage ratio
Improving cost coverage ratio Highlights Management and other fee income Increased management and other fee income: A$30m 28,29,30 • Up 50% on FY23. R Portfolio & fair value AG • A$25m in management and other fee income, 33% C A$25m Fund 1 Funds 2&3 exceeding our initial target of A$22 million. This
Slide 15: Reduced operating expenses
Reduced operating expenses Highlights 12M trailing cash opex $100m Continuous focus on cost management... $99m • Cash opex for FY24 of A$89.7m, below the target of A$95m. Portfolio & fair value $98m $97m $96m A$95m FY24 • These cost savings reflect the first results of our cost opex target $95m effe
Slide 16: OBL-only cashflows and liquidity
OBL-only cashflows and liquidity36 Highlights • Our average annual net cash outflows over the last 4 years was just below A$35 million, including deployments and interest, but excluding debt draw downs, repayments and dividends. • In aggregate, we have A$121m for operational expenses, interest payme
Slide 17: Illustrative FY25 OBL-only cashflow and liquidity
Illustrative FY25 OBL-only cashflow and liquidity Highlights Liquidity anticipated to improve driven by: • Cash proceeds from completions and IYTBR in 2H24. • Potential completions during FY25. Portfolio & fair value • Potential for accelerated realisations through secondary capital market transacti
Slide 18: FY25 Strategic and operational goals
FY25 Strategic and operational goals Highlights Portfolio & fair value 01 The company believes the current share price is not reflective of the embedded fair value of OBL’s Strategic goals Targets FY25 assets, nor of the value of our leading global fund management platform for legal assets. • Contin
Slide 19: Board update
Board update Highlights Portfolio & fair value Michael Kay Michael Green Following November’s 2024 The Board has resolved to elect Initially, the Board will continue Financial results AGM, Michael Kay will have Michael Green as the incoming with three non-executive directors completed an impressive
Slide 20: Annexure
Annexure FY24 RESULTS | 29 August 2024 20
Slide 21: Portfolio duration
Portfolio duration Highlights Balanced maturity profile of the portfolio Portfolio & fair value 37 37,38 Completed investments by duration Deployment by investment vintage (A$m) 30% 100% 30% 100% 25% 24% Financial results 75% 21% 21% 75% 20% 18% 20% 15% 15% 15% 14% 50% 50% 12% 12% 10% 8% 10% 8% 8% S
Slide 22: Fair value framework
Fair value framework Highlights Omni Bridgeway’s fair value approach is based on probabilistic scenario analysis. At inception the fair value of an investment is determined: Typical material litigation events include: • As the net present value of the future loss-adjusted probability-weighted invest
Slide 23: Fair value methodology
Fair value methodology Highlights Assumptions Portfolio & fair value • Outcome scenarios – the points during the life of an investment when it may complete in whole or in part • Cash flows – the amount and timing of outgoing and incoming cash flows over the life of the investment • Probabilities – t
Slide 24: OBL attribution of fair value
OBL attribution of fair value Highlights Portfolio & fair value • Fair value equals the net present value of future cash flows of an investment at a specific moment in time. It is therefore a forward-looking cash profit metric, net of future OBL attribution existing deployments and excluding any pas
Slide 25: OBL attribution of fair value (cont'd)
OBL attribution of fair value (cont'd) Highlights Fund 1: The portfolio fair value included for Fund 1 is only the OBL residual interest in fund cashflows. Portfolio & fair value The OBL attribution rate is therefore 100%. Methodology Funds 2/3: Given the European waterfall structure of Funds 2/3, m
Slide 26: Investment income
Investment income Highlights Funds Balance 1 • A$248.3m income recognised in FY24 Portfolio & fair value A$m sheet 1 2&3 4 5 6 8 Total Investment income comprises: Investments completed in FY24 – – 13.6 62.2 33.0 58.1 3.4 170.3 – A$170.3m from 38 fully completed Investments completed in prior period
Slide 27: Structure of Funds
Structure of Funds41 Highlights Portfolio & fair value Funds 2&3 Fund 4 Fund 5 Fund 6 Fund 8 Type European whole of fund American deal by deal American deal by deal Hybrid whole of fund European whole of fund Waterfall 1. Investor capital 1. Investor capital 1. Investor capital 1. Investor capital (
Slide 28: Current portfolio and track record
Current portfolio and track record Highlights Portfolio & fair value Current funded 44,45 • Secondary market sales are included 43 Completed investments investments as (partial) completions. # of Success rate # of ongoing Average completed Average $ weighted At 30-Jun-24 investments duration investm
Slide 29: Funds summary
Funds summary Highlights Amounts attributable Amounts attributable Fund Breakdown to NCI to Omni Bridgeway Capital Total Total distributions Capital Committed - Capital capital (capital and Portfolio & fair value At 30-Jun-24 Committed Fund size Recycling Deployed Undeployed uncommitted Other Costs
Slide 30: Footnotes
Footnotes Highlights 1 Includes unconditional and conditional investments, IC-approved investments and investments in "completion in 21 Represents 73% of total new commitments made during FY23, excluding budget revisions on existing progress" status where cash has not yet been received. investments.
Slide 31: Footnotes (cont'd)
Footnotes (cont'd) Highlights 40 Represents indicative cashflows (excluding performance fees) anticipated to flow out of the Funds due to the income generation included in the table above. It represents the aggregate estimate of the cash distributed and yet to be distributed under the various distri
Slide 32: Notes
Notes Highlights • The investments of Funds 2&3, Fund 4, Fund 6 and Fund 8 are consolidated within the Group Consolidated Financial Statements, along with the interest of the respective external Fund investors if applicable. • Fund 1 was deconsolidated on 31 May 2023. OBL residual interest is includ
Slide 33: Reconciliation
Reconciliation Highlights Slide 6 Industry leading investment performance metrics Slide 12 FY24 Financial results - Consolidated Group Fair value14 OBL-only (A$m) OBL-only (A$m) # MOIC (x) IRR (%) Proceeds (A$m) A$m FY24 FY23 conversion Cash Income Completed 11 38 2.4x 53% 119% $163.3m $27.7m $41.3m
Slide 34: Reconciliation (cont'd)
Reconciliation (cont'd) Highlights Slide 6 Industry leading investment performance metrics Fair value14 OBL-only (A$m) OBL-only (A$m) # MOIC (x) IRR (%) Proceeds (A$m) conversion Cash Income 11 Completed 38 2.4x 53% 119% $163.3m $27.7m $41.3m Portfolio & fair value At 30-June-2024 Partially complete
Slide 35: Reconciliation (cont'd)
Reconciliation (cont'd) Highlights Slide 12 FY24 Financial results – Consolidated Group A$m FY24 FY23 Consolidated Group Litigation investments costs derecognised (non-cash) (73.8) (106.7) Derecognition of subsidiary and recognition of residual interest 41.6 (20.5) Portfolio & fair value Reclassific
Slide 36: Americas Asia-Pacific Europe, Middle East & Africa
Americas Asia-Pacific Europe, Middle East & Africa Chicago New York Montreal São Paulo Melbourne Hong Kong Amsterdam London Dubai +1 872 260 2057 +1 212 488 5331 +1 514 257 6971 +55 11 99960 9938 +61 3 9913 3301 +852 3978 2629 +31 70 338 4343 +44 203 968 6061 +971 4 514 4608 500 West Madison 437 Mad