AF Legal Group Limited · ASX:AFL
AF Legal — Shareholder Meeting (November 2022)
20 slides from AF Legal's shareholder meeting presentation, Nov 14, 2022
Slide 1: Market Update: First 3 Year Plan Complete - The Future is AFL 3.0
For personal use only INVESTOR PRESENTATION MARKET UPDATE FIRST 3 YEAR PLAN COMPLETE - THE FUTURE IS -‘AFL 3.0’ 14 November 2022 www.australianfamilylawyers.com.au
Slide 2: Table of contents
For personal use only Table of contents 01 Our Journey so far – ‘AFL 2.0’ 02 FY22 Results 03 FY22 Financials 04 2023 YTD Performance Update 05 Strategy Update 1
Slide 3: Our Journey So Far - AFL 2.0
For personal use only 01 OUR JOURNEY SO FAR – “AFL 2.0”
Slide 4: We are a tech enabled law firm with a difference
We are a tech enabled law firm with a difference We are Australia’s largest family law firm with plans to grow our market share and expand into other areas of law For personal use only Darwin +19 offices Alice Springs Sunshine Coast (2) +90 employees Brisbane Gold Coast +55% Perth (2) Wollongong Ade
Slide 5: Timeline since inception
Timeline since inception AFL was founded in 2015 and has rapidly expanded to 19 offices since its IPO in June 2019 For personal use only 2017: FEBRUARY 2019: FEBRUARY 2020: MARCH 2021: JUNE 2021: JANUARY 2022: JUNE 2022: AUGUST 2019: JUNE 2020: NOVEMBER 2020: Sydney office Opening of Opening of Canb
Slide 6: What have we achieved since IPO?
What have we achieved since IPO? Strong organic growth and strategic acquisitions has provided the scale to build out the platform in FY23 and beyond For personal use only STRONG FINANCIAL NEW OFFICES AND LATERAL HIRES AND BEST IN CLASS MARKETING ADDITIONAL SERVICE PERFORMANCE GEOGRAPHIES ACQUISTION
Slide 7: More than 4x growth since IPO
More than 4x growth since IPO Strong historical CAGR3 growth in both revenue (+55%) and Underlying EBITDA (+40%) since IPO in FY19 For personal use only 4x growth since IPO $m Double IPO FY19 25 20 15 20.5 18.5 10 11.0 5 6.9 5.0 4.3 2.6 3.4 4.0 1.2 1.7 2.1 0 FY17 FY18 FY19 FY20 FY21 FY22 FY22PF Unde
Slide 8: FY22 Results
For personal use only 02 FY22 RESULTS
Slide 9: FY22 Snapshot
FY22 Snapshot Delivered record financial performance, completed the 3 year strategy from IPO and launched unique “owner operator” model For personal use only FY22 Revenue and Underlying EBITDA1 of $18.5m and $3.4m, +68% and +63% growth respectively versus pcp FY22 Pro Forma2 Revenue and Underlying E
Slide 10: Strong growth despite staff shortages and COVID impacts
Strong growth despite staff shortages and COVID impacts The underlying defensive nature of the business was demonstrated through COVID and during FY22 For personal use only Tailwinds Headwinds National firm diversification allows resource COVID recovery and absences impacting sharing minimising
Slide 11: Record growth in marketing metrics versus last year
Record growth in marketing metrics versus last year Strong growth in marketing metrics versus last year provides a leading indicator of performance in FY23 For personal use only Leads Website user Appointment File Openings Conversion +41% increase in leads +81% increase in users +62% increase in fil
Slide 12: 2023 YTD Performance Update
For personal use only 04 2023 YTD PERFORMANCE UPDATE
Slide 13: Year to Date Revenue Performance
Year to Date Revenue Performance For personal use only Revenue Performance^ 1 July- 31 October 2022 PCP Comparison • Actual Revenue $6.9M* v. PCP 2021 $6.1M +12.4% Organic Growth (Excluding Withnalls) • YTD Actual Revenue $5.6M v. PCP 2021 $6.1M -8% Analysis of Labour Market Period and Impacts • Rev
Slide 14: Addressing the Labour Market Challenges
Addressing the Labour Market Challenges The Challenge – For personal use only A “Perfect Storm” - Post Covid the 2022 year has seen the most difficult labour challenges seen in the legal Industry Rising to the Challenge Winning the Battle for Talent – Employment Metrics Strengthened the AFL Employ
Slide 15: Strength of Brand, Digital, and Quality
Strength of Brand, Digital, and Quality Future focused innovation, building the brand as the “best” in the provision of quality legal services For personal use only PROMOTING OUR LEADERSHIP IN DIGITAL PLATFORM BUILDING THE BEST STRENGTHS SUBSTANTIVE PERFORMANCE FAMILY LAW BRAND FAMILY LAW Launch of
Slide 16: Strategy Update
For personal use only 05 STRATEGY UPDATE
Slide 17: AFL 3.0: New strategy - Capitalise on the Platform
AFL 3.0: New strategy - Capitalise on the Platform Investment in the platform is now complete with “AFL 3.0” to capitalise on the investments made over the last 3 years For personal use only • Target 10-20% organic growth p.a. 1 • Roll out digital client acquisition enhancements to improve conversio
Slide 18: AFL 3.0: Potential to expand market from $1bn to over $20bn
AFL 3.0: Potential to expand market from $1bn to over $20bn A broader legal offering would provide a much larger addressable market and diversified earnings base For personal use only Australia’s personal legal industry is highly fragmented and ripe for disruption Total Legal Average number of lawye
Slide 19: GTC Transaction - Overview of Potential Transaction
GTC Transaction - Overview of Potential Transaction For personal use only • AF Legal Group Limited (“AFL”) has entered into an agreement to acquire 100% of GTC Legal Group Holdings Pty Ltd, the holding company of Armstrong Legal and GTC Lawyers (“GTC”) Transaction Overview • The transaction will cre
Slide 20: Thank you
For personal use only THANK YOU