Shine Justice Ltd. · ASX:SHJ
Shine Justice — H1 FY2020 Earnings Presentation
25 slides from Shine Justice's earnings presentation, Feb 28, 2020
Slide 1: FY20 Half Year Results Investor Presentation
28 February 2020 Shine Corporate Ltd (SHJ) FY20 Half Year Results Investor Presentation Attached is a copy of Shine Corporate Ltd’s FY20 Half Year Results Investor Presentation. Authorised for release by the Board Annette O’Hara Company Secretary Shine Corporate Ltd Level 13, 160 Ann Street Brisbane
Slide 2: Shine Corporate Ltd FY20 Half Year Results
Shine Corporate Ltd FY20 Half Year Results Investor Presentation February 2020 Simon Morrison Ravin Raj MANAGING DIRECTOR & CEO CHIEF FINANCIAL OFFICER
Slide 3: 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 4: Erin Brockovich, Shine Ambassador
Erin Brockovich Shine Ambassador Shine Corporate Ltd ABN 93 162 817 905 3
Slide 5: Agenda
Agenda 1 2 3 4 5 Overview FY20 H1 Shine Strategy Questions & FY20 H1 Financial Justice & Outlook Highlights Results FY20 H1 Results Presentation | ABN 93 162 817 905
Slide 6: Overview & FY20 H1 Highlights
Overview & FY20 H1 Highlights Simon Morrison – Managing Director & CEO FY20 H1 Results Presentation | ABN 93 162 817 905 5
Slide 7: Overview
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 and disabili
Slide 8: FY20 H1 Highlights
FY20 H1 Highlights Group Strategy Financial • Financial results within Guidance and • Brand strategy across Group with digital • EBITDAI(¹) up 10.78% to $21.67m consistent with historical seasonal trends marketing innovations on track • NPAT up 299.54% to $8.83m • Market conditions in some areas of
Slide 9: FY20 H1 Financial Results
FY20 H1 Financial Results Ravin Raj – Chief Financial Officer FY20 H1 Results Presentation | ABN 93 162 817 905 8
Slide 10: FY20 H1 Group Results
FY20 H1 Group Results $89.44m $8.83m $21.67m $13.10m 1.50cps Revenue Statutory EBITDAI(¹) GOCF(¹) Interim Dividend NPAT 60.45% of (unfranked) +3.53% +10.78% EBITDAI +299.54% +20% ¹ EBITDAI and GOCF are not IFRS calculations which appear in the financial statements, and have not been audited. FY20 H1
Slide 11: FY20 H1 Financial Results: Detailed Profit and Loss
FY20 H1 Financial Results: Detailed Profit and Loss FY20 H1 FY19 H1 Variance Variance ($m) ($m) ($m) (%) • PI Revenue - small drop due to write-offs, impact of Revenue 89.44 86.39 +3.05 +3.53 restructuring and downsizing of nonperforming work types, and NSW tort reform NPAT 8.83 2.21 +6.62 +299.54 •
Slide 12: FY20 H1 Results Overview: Financial Highlights
FY20 H1 Results Overview: Financial Highlights Variance • Growth in EPS due to improved FY20 H1 FY19 H1 profitability in first half (%) EPS3 (cents) 5.08¢ 1.28¢ +296.88 • Dec19 underlying EPS growth is 22.11% if Dec18 impairment excluded 1.50¢ 1.25¢ in PCP EPS calculation Interim Dividend per share
Slide 13: FY20 H1 Financial Results: Balance Sheet
FY20 H1 Financial Results: Balance Sheet AS AT ($’000) 31 Dec 19 30 June 19 Cash 24,171 26,697 Receivables 16,944 15,586 • Cash on hand – marginal decrease from 30 Contract assets - work in progress 295,760 282,972 June 2019 Unbilled disbursements 85,650 78,296 • Net WIP grew by 8% primarily from or
Slide 14: FY20 H1 Financial Results: Gross Operating Cash Flow
FY20 H1 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 14 15.2 10 9.7 13.1 5 5.2 6.5 6.6 3.3 3.5 0 FY15 FY16 FY17 FY18 FY19 HY20 1H 2H FY20 H1 Results Presentation | ABN 93 162 817 905 13
Slide 15: Shine Cash Funded Disbursements (Net)
Shine Cash Funded Disbursements (Net) Shine Equity Funded Disbursements (Net) - $millions • Cash flow improvement strategy 35,000,000 commenced FY17 to secure: 30,000,000 - Long term new disbursement funder - Litigation funding of all new Class Actions 25,000,000 • Return of significant Shine equity
Slide 16: Shine Justice
Shine Justice Simon Morrison – Managing Director & CEO FY20 H1 Results Presentation | ABN 93 162 817 905 15
Slide 17: Proposed name change from Shine Corporate Ltd to Shine Justice Ltd
Proposed name change from Shine Corporate Ltd to Shine Justice Ltd A significant step in the Group’s evolution to capture the shared passion and drive to pursue justice Rationale Opportunity Approach • Aligning corporate identity to our DNA • To embody Shine Justice through • A collaborative process
Slide 18: Strategy & Outlook
Strategy & Outlook Simon Morrison – Managing Director & CEO FY20 H1 Results Presentation | ABN 93 162 817 905 17
Slide 19: Strategic Priorities – resilient and well positioned for the future
Strategic Priorities – resilient and well positioned for the future Grow Strengthen Innovate Champion Shine Shine Shine our Clients • Strengthening of brand • Integrate business, realising • Continue digital transformation • Improve process to support through company name costs synergies and technol
Slide 20: Outlook 2020
Outlook 2020 Organic Growth Operations and Innovation • Focus on brand strategies across regional areas of Australia • Improve capability and leadership to support growth • Market conditions mixed although remain supportive of growth • Sustainable growth and innovation as core driver • Simplify busi
Slide 21: Questions
Questions FY20 H1 Results Presentation | ABN 93 162 817 905 20
Slide 22: Appendices
Appendices FY20 H1 Results Presentation | ABN 93 162 817 905 21
Slide 23: Current Activity in Australia and New Zealand; Emerging and International Issues
Current Activity in Australia and Emerging and International New Zealand Issues and Trends in 2020* PFAS - Contamination Class Actions Townsville, Darwin, Wagga, Wodonga, Edinburgh, Bullsbrook PFAS In-principle conditional settlement - Oakey and Katherine Class Actions – 3M, DowDupont and Chemours M
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: Sustainability and Community
Sustainability and Community Social Impact Energy & Climate Social and physical Energy efficiency and initiatives to improve well alternative sources to being and mental illness minimise our footprint Shine a Light Shine A Light Foundation supports Actively supporting schools and sporting charitable