Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — Investor Presentation (November 2020)
21 slides from Omni Bridgeway's investor presentation, Nov 17, 2020
Slide 1: Business Plan
Business Plan 17 November 2020 DISCLAIMER: This presentation concerns Omni Bridgeway’s five year business plan and includes aspirational statements about the future. The purpose of these statements is to provide the audience with information about management’s expectations and plans. Readers are cau
Slide 2: Disclaimer
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 terms used in this presentation including: ROI
Slide 3: 2015 – 2020 Business Plan
2015 – 2020 Business Plan • Investment into infrastructure over past five years to develop platform for future of business • Concentration risks were apparent in our geographic footprint and investments, exposing group to risks associated with competition, regulatory intervention, key person risk, a
Slide 4: Market analysis
Market analysis • Portfolio diversification has been Market defined by: EPV by Geography EPV by Investment Type prioritized over the past several • Geography years by investment type and • Offering geography to mitigate risks of 10% 0% 13% 13% competition and adverse regulatory Strategic implication
Slide 5: Competition
Competition London New York Omni Bridgeway Burford Capital Therium Capital Management Singapore Harbour Litigation Funding Longford Capital Parabellum Capital Augusta Sydney Woodsford Litigation Funding Melbourne Litigation Capital Management Litigation Capital Omni Bridgeway Augusta Burford Harbour
Slide 6: Competitor analysis
Competitor analysis Omni Bridgeway is the largest funder by headcount and footprint USP • Track record • Access to non-discretionary capital and control over decision-making • Geographic footprint and boots on the ground • Transparency, culture, trust and integrity • Professionalism, legal know-how
Slide 7: Financial capital
Financial capital Funds Under Management (AUD million) 2,500 2,000 Consideration for refinancing Continued use of fund debt in 2023 when Bonds structures in preference to mature and with acceleration 1,500 balance sheet investing: of OTC Notes • Optimise structures by • Consideration of 1,000 reduci
Slide 8: Financial targets
Financial targets • Historically we have focussed on capital commitments Funding Commitments as a proxy for growing the portfolio of investments 400 700 • The target for FY21 is to commit A$440 million in new 350 600 commitments • As our business has transformed with the merger and 300 Funds Committ
Slide 9: Historical commitment v deployment rates
Historical commitment v deployment rates 120% 100% 80% 60% 40% 20% 0% 1st half-year 2nd half-year 3rd half-year 4th half-year 5th half-year 6th half-year 7th half-year Cumulative Period of Fund life US Fund - Avg. Investment commitment % US Fund - Avg. Investment deployment % RoW Fund - Avg. Investm
Slide 10: Regulatory landscape
Regulatory landscape • The litigation finance industry has been the subject of criticism from defendants, the defendant bar and their advocates since inception of the industry • Our position has been, and continues to be, that regulation of the industry is appropriate • In Australia we have seen thi
Slide 11: Our mission, vision and culture
Our mission, vision and culture Mission Vision To provide innovative solutions for To be recognised as the funding and managing legal risks global leader in financing that clients prefer, stakeholders are and managing legal risk proud of, and that investors seek for long-term returns BUSINESS PLAN |
Slide 12: Our strategic priorities
Our strategic priorities • Omni Bridgeway is now the largest litigation funder in the world by headcount and geographic footprint • The key strategic priorities for the next business plan period are to expand: • Geographically into new and within existing markets. New markets include New Zealand, La
Slide 13: Omni Bridgeway present and future
Omni Bridgeway present and future Geographic expansion Current locations Proposed locations Organic Agents BUSINESS PLAN | NOVEMBER 2020 13
Slide 14: Our offerings
Our offerings Current Future • Merits funding • Claims monetization • Post-judgment enforcement • Downside risk management • Appeal Funding • Defence-side funding • Portfolio funding • Establish OBL law firm • DARP BUSINESS PLAN | NOVEMBER 2020 14
Slide 15: Our future offerings
Our future offerings • Claims monetization • Acquire claims, judgments or awards • Deploy more capital to investments that meet our criteria • Exercise greater control over direction of claim management • Enhance returns • Explore subrogated rights acquisition • Downside risk management • Leverage l
Slide 16: Indicative Investment Example – Claims Monetization
Indicative Investment Example – Claims Monetization Comparison of OBL’s normal historic merits funding approach and purchase of claim Claim size $1,000.00 Normal historic OBL funding outcome OBL Purchase claim outcome (2nd Generation Fund) (2nd Generation Fund) WIN = Proceeds $500.00 DEAL IRR 57% DE
Slide 17: Indicative Investment Example – Defence Funding
Indicative Investment Example – Defence Funding Defence merits funding Claim size $1,000.00 OBL funding outcome (2nd Generation Fund) WIN = Defendant pays Less than [say] $500.00 DEAL IRR 57% Gross value of "win" to defendant $500.00 DEAL ROIC 150% Litigation capital cost $100.00 Life 3.00 Managemen
Slide 18: Our team for the future
Our team for the future • To address our future needs both for geographic expansion and new offerings: • Geographic expansion to be undertaken by combination of agents, FIFO and organic growth (and acquisition) • New offerings will require additional skills for enforcement in markets outside of EMEA
Slide 19: FUM and Commitments
FUM and Commitments 6,000 1,200 Investment Commitments p.a (A$m) 5,000 1,000 FUM (A$m) 4,000 800 3,000 600 2,000 400 1,000 200 - - FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 (target) (target) (target) (target) (target) FUM (Actual & Potential New Funds) NET Investme
Slide 20: Glossary of Terms and Notes
Glossary of Terms and Notes ESTIMATED PORTFOLIO VALUE (EPV) EPV for an investment where the funding entity earns: (i) a percentage of the resolution proceeds as a funding commission, is the current estimate of the investment’s recoverable amount after considering the perceived capacity of the defend
Slide 21: Investor Presentation EUROZ | May 2020
INVESTOR PRESENTATION EUROZ | MAY 2020 21
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