Slide 1: Burford Capital Second Quarter 2023 Results
September 13, 2023 Burford Capital Second Quarter 2023 Results This presentation is for the use of Burford’s public shareholders and is not an offering of any Burford private fund.
Slide 2: Notice & disclaimer
Notice & disclaimer This presentation (this “Presentation”) provides certain information to facilitate review and understanding of the business, financial position and results of operations of Burford Capital Limited and its subsidiaries (the “Company”, “Burford”, “we”, “our” or “us”) at and for the
Slide 3: Burford performance at a glance
Burford performance at a glance ✓ Realized gains tripled in 2Q23 compared to 2Q22 Selected 1H23 financial results Burford-only Total revenues3 +214% 1 ✓ Realizations of $133 million in 2Q23, up 167% compared to 2Q22 Operating income3 +332% 2 TBVPS4 +12% ✓ Burford-only cash receipts up 271% in 2Q23 c
Slide 4: Portfolio continues to perform with strong new business and cash generation
Portfolio continues to perform with strong new business and cash generation Strong total revenue growth - Consolidated total revenues of $425 million for 1H23, up 149% compared to 1H22 Group-wide total portfolio At period end - $234 million of capital provision income (46%) excluding unrealized gain
Slide 5: Growth in Burford-only total revenues drives significant earnings improvement
Growth in Burford-only total revenues drives Six months ended June 30, Three months ended June 30, significant earnings Selected statement of operations improvement data 2023 2022 % 2023 2022 % Burford-only change change ($ in thousands, except per share data) • Burford-only capital provision Capita
Slide 6: New business momentum increased
New business momentum Total new commitments Group-wide - capital provision-direct increased ($ in millions) 570 138 444 • Strong Burford-only new business so 377 1 far in 2023 underpins future potential 113 81 311 capital provision income 1 1 60 • Activity in 2Q23 included a $325 431 million (Group-
Slide 7: Improved portfolio activity reflected in higher realizations
Improved portfolio activity Realizations Burford-only – capital provision-direct Cumulative realizations and returns Burford-only – capital provision-direct reflected in higher ($ in millions) ($ in millions) realizations 1H23 realizations of $195 million, up 179% from $70 million in 1H22 Through Th
Slide 8: Significant potential from larger and more recent vintages
Significant potential from larger and more recent vintages • Increased deployments in recent years, along with relatively low levels of resolutions, indicate portfolio could be well-positioned for significant realized gains - Potential for cumulative returns on deployed capital in the core legal fin
Slide 9: YPF ruling suggests a final judgment of approximately $16 billion against Argentina
YPF ruling suggests a final judgment of approximately $16 billion against Argentina1 • Ruling a complete win against Argentina and implies damages at the high end of the possible range of damages • Final judgment is appealable to the Second Circuit Court of Appeals as of right • Carrying value of YP
Slide 10: Faster portfolio velocity reflected in capital provision income
Capital provision income Faster portfolio velocity Burford-only ($ in millions) reflected in capital 351 1H23 income from provision income YPF-related assets 182 • Realized gains of $94 million in 96 1H23, including $59 million in 169 35 2Q23, as accelerating pace of (5) courts resulted in case conc
Slide 11: Operating expenses reflect strong portfolio performance and certain idiosyncratic events
Operating expenses reflect strong portfolio performance and certain idiosyncratic events Total operating expenses Burford-only 2Q23 2Q22 Change • Increase in operating expenses in ($ in thousands) 2Q23 driven primarily by an Compensation and benefits increase in compensation expense and general, adm
Slide 12: Robust liquidity and low leverage
1H23 cash bridge Burford-only liquidity and receivables Robust liquidity and low Burford-only ($ in millions) At period end ($ in millions) 394 leverage 48 20 75 93 708 267 • Strong liquidity position at June 30, 107 247 441 31 63 2023 primarily reflects issuance of $400 16 million in senior notes i
Slide 13: Four pillars of Burford's value proposition
Four pillars of Burford’s value proposition 1. Core portfolio 2. Origination platform • Burford-only capital provision-direct cumulative realizations • Clear market leader with significant scale and meaningfully larger since inception of $2.4 billion with an 88% ROIC and 29% IRR than any competitor1
Slide 14: Court's commentary on Burford's role in Petersen and Eton Park cases
Court’s commentary on Burford’s role in Petersen and Eton Park cases Judge’s comment below validates Burford’s model • We believe Burford’s business makes the rule of law fairer, more accessible and more efficient • Legal finance enables companies to pursue meritorious claims without impacting their
Slide 15: Financial results
Financial results [Burford
Slide 16: Statement of operations for the three months ended June 30, 2023
Statement of operations for the three months ended June 30, 2023 Elimination of third-party interests Strategic Advantage ($ in thousands) Consolidated Value Fund BOF-C Colorado Fund Other Burford-only Revenues Capital provision income 35,667 (100) 72 4,728 (4,983) 8 35,392 Plus: Third-party interes
Slide 17: Statement of operations for the three months ended June 30, 2022
Statement of operations for the three months ended June 30, 2022 Elimination of third-party interests Strategic Advantage ($ in thousands) Consolidated Value Fund BOF-C Colorado Fund Other Burford-only Revenues Capital provision income 35,006 (1,769) (55,580) 16,423 48 1,062 (4,810) Plus: Third-part
Slide 18: Statement of operations for the six months ended June 30, 2023
Statement of operations for the six months ended June 30, 2023 Elimination of third-party interests Strategic Advantage ($ in thousands) Consolidated Value Fund BOF-C Colorado Fund Other Burford-only Revenues Capital provision income 511,600 (207) (48,236) (95,041) (12,005) (4,704) 351,407 Less: Thi
Slide 19: Statement of operations for the six months ended June 30, 2022 (as restated)
Statement of operations for the six months ended June 30, 2022 (as restated) Elimination of third-party interests Strategic Advantage ($ in thousands) Consolidated Value Fund BOF-C Colorado Fund Other Burford-only Revenues Capital provision income 175,745 (2,277) (74,175) 498 (318) (3,696) 95,777 Pl
Slide 20: Statement of financial position at June 30, 2023
Statement of financial position at June 30, 2023 Elimination of third-party interests Strategic Advantage ($ in thousands) Consolidated Value Fund BOF-C Colorado Fund Other Burford-only Assets Cash and cash equivalents 365,336 (1,455) (2,409) (4) (26,438) (1,473) 333,557 Marketable securities 107,18
Slide 21: Statement of financial position at December 31, 2022
Statement of financial position at December 31, 2022 Elimination of third-party interests Strategic Advantage ($ in thousands) Consolidated Value Fund BOF-C Colorado Fund Other Burford-only Assets Cash and cash equivalents 107,658 (1,906) (7,003) (20) (23,635) (1,415) 73,679 Marketable securities 13
Slide 22: Supplementary data
Supplementary data [Burford
Slide 23: Burford has generated strong cash-on-cash returns
Burford has generated strong cash-on-cash returns • Burford has generated consistently high returns on $2.4 billion of realizations since inception in 2009 • A recurring mix of settlements and wins drives strong returns in reasonable time frames, with asymmetrically low losses • Cumulative ROIC of 8
Slide 24: Burford-only concluded assets arrayed by ROIC
Burford-only concluded (fully and partially) capital provision-direct assets arrayed by ROIC Favorable asymmetric From inception through June 30, 2023 ($ in millions) returns 0% or less 0 to 99% 100 to 199% Greater than 200% ROIC ROIC ROIC ROIC Total Realized Realized Realized Realized Realized Depl
Slide 25: Weighted average life (WAL) of concluded portfolio
Weighted average life (WAL) of concluded portfolio Burford-only WAL of fully and partially concluded capital provision-direct portfolio From inception through period end ($ in millions, WAL in years) 2.4 2.4 2.3 2.3 2.3 2.1 2.1 1.9 1.9 1.7 2,406 2,211 1,861 1,597 1,260 2019 2020 2021 2022 2Q23 Cumul
Slide 26: Laddered maturities
Laddered maturities Maturity of debt outstanding ($ in millions) WAL of debt: 5.3 years 1 WAL of capital provision-direct assets: 2.4 years 2 400 400 360 222 180 127 2023 2024 1,3 2025 2026 3 2027 2028 2029 2030 2031 1 On July 12, 2023, Burford Capital PLC redeemed in full the aggregate outstanding
Slide 27: Reconciliations
Reconciliations [Burford
Slide 28: Reconciliations for cash receipts
Reconciliations for cash receipts Cash receipts reconciliation Six months Three months Three months Six months Three months Three months ended June ended March ended June 30, ended June 30, ended March 31, ended June 30, ($ in thousands) 30, 2023 31, 2023 2023 ($ in thousands) 2022 2022 2022 Consoli
Slide 29: Reconciliations for book value and tangible book value per ordinary share
Reconciliations for book value and tangible book value attributable to BCL per ordinary share Book value and tangible book value attributable to Burford Capital Limited per ordinary share reconciliations June 30, 2023 December 31, 2022 ($ in thousands, except share data) Total Burford Capital Limite
Slide 30: Capital provision income
Capital provision income Three months ended June 30, 2022 Capital provision income Three months ended June 30, 2023 (GAAP) (Non-GAAP) (GAAP) (Non-GAAP) Elimination of Burford-only Elimination of third-party Burford-only third-party Burford-only ($ in thousands) Consolidated interests total ($ in tho
Slide 31: Asset management income
Asset management income Asset management income Three months ended June 30, 2023 Three months ended June 30, 2022 (GAAP) (Non-GAAP) (GAAP) (Non-GAAP) Elimination of Elimination of third-party third-party ($ in thousands) Consolidated interests Burford-only Consolidated interests Burford-only Managem
Slide 32: YPF-related income, carrying value and realizations
YPF-related income, carrying value and realizations Capital provision income, excluding YPF-related assets reconciliation For the six months ended June 30, ($ in thousands) 2023 2022 Capital provision income 511,600 175,745 Less: Capital provision income from YPF-related assets (277,318) (1,440) Cap
Slide 33: Capital provision-direct deployments
Capital provision-direct deployments Reconciliation of capital provision-direct deployments - consolidated to Group-wide – three months ended Elimination of third-party interests to ($ in millions) Consolidated Burford only Burford-only Other funds BOF-C Group-wide June 30, 2023 246 (65) 181 6 59 24
Slide 34: Capital provision-direct realizations
Capital provision-direct realizations Reconciliation of capital provision-direct realizations - consolidated to Group-wide (for the three and six months periods ended) For the three months ended Elimination of third-party ($ in millions) Consolidated interests Burford-only Other funds BOF-C Group-wi
Slide 35: Consolidated portfolio to Group-wide portfolio
Consolidated portfolio to Group-wide portfolio Reconciliation from consolidated portfolio to Group-wide portfolio June 30, 2023 December 31, 2022 December 31, 2021 December 31, 2020 Consolidated carrying value 4,407,888 3,735,556 3,117,263 2,714,314 Consolidated undrawn commitments 1,983,154 1,720,7
Slide 36: Liquidity
Liquidity Reconciliation of consolidated to Burford only cash and cash equivalents and marketable securities Elimination of third-party Consolidated interests Burford-only At June 30, 2023 Cash and cash equivalents 365 (31) 334 Marketable Securities 107 - 107 Total cash and cash equivalents and mark
Slide 37: Covenant calculations at June 30, 2023 and December 31, 2022
Covenant calculations at June 30, 2023 and December 31, 2022 Covenant calculations at June 30, 2023 Covenant calculations at December 31, 2022 $ in millions $ in millions From the condensed consolidated statement of financial position and note 9, Debt From the condensed consolidated statement of fin
Slide 38: Covenant calculations at June 30, 2023 and December 31, 2022 (cont'd)
Covenant calculations at June 30, 2023 and December 31, 2022 (cont’d) Covenant calculations at June 30, 2023 $ in millions From the condensed consolidated statement of financial position and note 9, Debt Total principal amount of debt outstanding1 1,690 Plus: Debt interest payable 17 Less: Debt attr
Slide 39: [Burford
[Burford