Shine Justice Ltd. · ASX:SHJ
Shine Justice — FY2019 Earnings Presentation
25 slides from Shine Justice's earnings presentation, Aug 28, 2019
Slide 1: Shine Corporate Ltd FY19 Full Year Results
Shine Corporate Ltd FY19 Full Year Results Results Presentation August 2019 Simon Morrison Ravin Raj MANAGING DIRECTOR CHIEF FINANCIAL OFFICER
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: Always Pursue Justice
Always Pursue Justice 66 Take it from me... now more than ever our community needs people to stand up for them against wrongdoing. 99 ERIN BROCKOVICH
Slide 4: Agenda
Agenda 1 2 3 4 5 Corporate FY19 FY20 Outlook Questions Overview & Financial Strategic FY19 Results Priorities Highlights
Slide 5: Corporate Overview & FY19 Highlights
Corporate Overview & FY19 Highlights Simon Morrison – Managing Director FY19 Full Year Results Presentation 5
Slide 6: Corporate Overview
Corporate Overview Shine Lawyers Personal Injury (motor vehicle, Land, Energy & Resources One of Australia’s largest workplace, public liability) diversified providers of • Emanate Legal Services litigation and specialist • Lean, standard, major claims (QLD) resolution services • Superannuation an
Slide 7: Justice for a Better Outcome
Justice for a Better Outcome The Year in Review Global and National Issues Greater than Contamination Class Action Sexual Abuse 6000+ 850 Katherine, Townsville, Oakey, Darwin Representing >1000 victims in abuse claims Client $650m Team Matters in damages Members Medical & Professional Negligence Emp
Slide 8: FY19 Highlights
FY19 Highlights Group Strategy Financial • Financial results within Guidance • Continuous improvement focus across • EBITDAI(¹)(²)(³) up 25.8% to $47.44m Group - inch wide, mile deep strategy • Class Action and disbursement funding • Underlying EBITDAI(¹) up 1.6% to $38.33m strategy completed • Buil
Slide 9: FY19 Highlights – Subsidiaries & Investments
FY19 Highlights – Subsidiaries & Investments Subsidiary Operational Highlights Sciaccas Ongoing development in employment and industrial law. Emanate Legal Challenging conditions persist. Mining industry and infrastructure initiatives expected in 2020. Stephen Browne Consistent and sustained perform
Slide 10: Our first innovation initiative launched in May 2019
Our first innovation initiative launched in May 2019. • Claimify is an online legal platform designed to create new ways of delivering justice for consumers with a focus on ease and convenience for the client and internal process optimization. • Features include: - Online self serve interview with s
Slide 11: FY19 Financial Results
FY19 Financial Results Ravin Raj – Chief Financial Officer STRICTLY CONFIDENTIAL FY19 Full Year Results Presentation 11
Slide 12: FY19 Group Results
FY19 Group Results $177.90m $14.03m $47.44m $31.25m 2.50cps Revenue EBITDAI(¹)(²) GOCF(¹)(³) Final Dividend NPAT (unfranked) 65.9% of (0.8%) (26.6%) 25.8% EBITDAI +11.1% • Underlying EBITDAI(¹) up 1.6% to $38.33m • Underlying NPAT (excluding $5m impairment) down 0.4% to $19.03m • Total dividend of 3
Slide 13: FY19 Financial Results: Detailed Profit and Loss
FY19 Financial Results: Detailed Profit and Loss FY19 FY18 Variance Variance • Revenue stable notwithstanding impact ($m) ($m) ($m) (%) of restructuring and downsizing of nonperforming work types and NSW tort Revenue 177.90m 179.37m (1.47m) (0.8%) reform • Reported EBITDAI growth due to Underlying N
Slide 14: FY19 Results Overview: Financial Highlights
FY19 Results Overview: Financial Highlights Variance • Underlying EPS excludes impairment and FY19 FY18 (%) AASB 16 impact EPS3 (cents) 8.06 11.04 (27.0%) • Final and full year dividend increased as outlook for underlying operations continues to improve Underlying EPS (cents) 11.81 11.04 6.9% • Divi
Slide 15: FY19 Financial Results: Balance Sheet
FY19 Financial Results: Balance Sheet AS AT ($’000) 30 June 19 30 June 18 Cash 26,697 22,549 • Cash on hand at 30 June 2019 Receivables 15,586 13,424 was $26.70m Work in progress 276,487 257,037 • Net WIP grew by 7% primarily Unbilled disbursements 84,781 78,083 from organic growth within Shine PP&E
Slide 16: FY19 Financial Results: Gross Operating Cash Flow
FY19 Financial Results: Gross Operating Cash Flow 35 31.3* 30 25 21.9 GOCF - $m 20 18.8 19.2 24.7 15 13.0 15.4 10.5 14 15.2 10 9.7 5 10.1 5.2 6.5 6.6 0.4 3.3 3.5 0 FY14 FY15 FY16 FY17 FY18 FY19 1H 2H *FY19 GOCF result improved through adoption of AASB 16 and, on a like-for-like basis GOCF was $22.15
Slide 17: Shine Equity Funded Disbursements (Net)
Shine Equity Funded Disbursements (Net) Shine Equity Funded Disbursements (Net) • Cash flow improvement strategy commenced FY17 to secure: $35,000,000.00 - Long term new disbursement funder - Litigation funding of all new Class Actions $30,000,000.00 • Return of significant Shine equity funds back $
Slide 18: Debt movement (AUD $m)
Debt 60 3 3 (6) (1) 50 57 54 40 AUD $m 30 52 54 20 10 0 30-Jun-18 Acquisition of Carr & Co Repayment of Debt 30-Jun-19 * 30 June 2018 balance excludes finance leases of approximately $5m. FY19 Full Year Results Presentation 18
Slide 19: FY20 Strategic Priorities
FY20 Strategic Priorities FY19 Full Year Results Presentation 19
Slide 20: Committed to Our Long Term Strategy and Outlook
Committed to Our Long Term Strategy and Outlook Organic Growth Earnings Growth • Growth opportunities in Emerging Practice Areas and Personal • Invest in organic growth Injury • Optimise cost structure and operating efficiency while growing • Build on our national brand and support revenue pipeline
Slide 21: FY20 Priorities and Outlook
FY20 Priorities and Outlook Grow Strengthen Innovate Champion Shine Shine Shine our Clients • Focus on organic • Continue to refine • Complete Phase 2 of • Improve client growth opportunities reporting processes Disruption Model Plan conversion rates • Maintain considered • Execute next stage of • F
Slide 22: Questions
Questions FY19 Full Year Results Presentation 22
Slide 23: Appendices
Appendices FY19 Full Year Results Presentation 23
Slide 24: PI Market Profile
PI Market Profile Industry fundamentals underpin long term growth Market Share Client Market Segmentation % of Firms / State TAS 2.8% ACT 0.5% 8% SA 7.8% 10% Over 55: WA Under 35: 26% 11.8% 34% 9% NSW 32.2% QLD 73% 21.9% 35 to 54: 40% VIC 19.9% Shine Corporate Ltd Maurice Blackburn Slater & Gordon O
Slide 25: Community
Community Social Impact Shine a Light Social and physical Shine a Light Foundation supports initiatives to improve charitable organisations that well being and mental promote prevention, rehabilitation, illness education and safety programs for people impacted by injury, injustice and adversity. Con