AF Legal Group Limited · ASX:AFL
AF Legal — Australian Family Lawyers — FY2020 Earnings Presentation
24 slides from AF Legal's earnings presentation, Aug 10, 2020
Slide 1: FY20 Results Investor Presentation
For personal use only FY20 RESULTS INVESTOR PRESENTATION August 2020 www.australianfamilylawyers.com.au
Slide 2: Table of contents
For personal use only Table of contents 01 About Us 02 Industry Overview 03 FY20 Highlights 04 FY20 Results 05 Strategic Review 1
Slide 3: About Us
For personal use only 01 ABOUT US
Slide 4: Australia's largest specialised family law firm
Australia’s largest specialised family law firm We help our customers get better outcomes by providing counsel and resolution on complex family matters For personal use only 8 offices Sunshine Coast (2) 36 employees Brisbane Adelaide Sydney Canberra +50% revenue growth p.a.1 Melbourne (2) ~1% market
Slide 5: We have disrupted the way law firms find customers
We have disrupted the way law firms find customers… We utilize digital marketing techniques used in other online industries to attract customers in the family law industry For personal use only Mobile first An optimised experience for small screens Performance An architecture built for fast page loa
Slide 6: Timeline since inception
Timeline since inception AFL was founded in 2015 and has rapidly expanded to 8 offices since the IPO in June 2019 For personal use only 2017: FEBRUARY 2019: AUGUST 2019: FEBRUARY 2020: JUNE 2020: Sydney office Opening of Mornington Roll out of new service Opening of Canberra Signed agreement with St
Slide 7: We have delivered strong growth since IPO in June 2019
We have delivered strong growth since IPO in June 2019 Strong growth has been delivered on FY19 performance across all key operational metrics For personal use only Revenue Gross Profit Operating EBITDA1 Underlying EBITDA2 $6.9m $3.6m $2.6m $1.7m +39% +58% +52% +41% Growth on FY19 Growth on FY19 Gro
Slide 8: Historical revenue and EBITDA
Historical revenue and EBITDA Strong historical CAGR3 growth in both revenue and EBITDA since FY2017 For personal use only Revenue1 $m Underlying EBITDA2 $m 8 2.0 1.8 7 1.6 6 1.4 5 1.2 4 1.0 6.9 1.7 0.8 3 5.0 0.6 1.2 2 4.2 0.4 0.7 1 2.1 0.2 0.1 0 0.0 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 1. Total
Slide 9: Investment Highlights
Investment Highlights For personal use only The largest specialised family law firm in Australia in less than 5 years $1.1bn+ potential market opportunity +150% Disrupting the way law firms acquire clients with its proprietary client acquisition engine EBITDA CAGR (FY17-FY20) First mover advantage a
Slide 10: Industry Overview
For personal use only 02 INDUSTRY OVERVIEW
Slide 11: Family law is a very large, highly fragmented market
Family law is a very large, highly fragmented market Long-term stable volumes, an increase in defacto relationships and rising net household wealth = attractive market For personal use only In contrast to personal injury law, $1.1bn market size No national players there is no dominant or national pl
Slide 12: Market exhibits defensive characteristics but with growth potential
Market exhibits defensive characteristics but with growth potential Long term stable volumes with tailwind drivers due to the increased prevalence of defacto relationships and growing asset pools For personal use only Total Divorces | 2007 to 2018 Household Net Worth (000’s) | FY2004 to FY2016 60,00
Slide 13: Strong growth in online search volumes for "divorce"
Strong growth in online search volumes for “divorce” Google searches for the term “divorce” surged to their highest point in 12 months at the end of June 2020 For personal use only Google Search Volumes: CY2018 v CY2019 “I wouldn’t be surprised if in the next year or two +49% we see more couples fil
Slide 14: FY20 Highlights
For personal use only 03 FY20 HIGHLIGHTS
Slide 15: Operational highlights
Operational highlights Expanded business driving growth and delivering operational leverage across the platform For personal use only HIGHLIGHTS – FY20 Strong revenue and file opening growth +39% and +34% versus pcp1 respectively Strong Underlying EBITDA2 and Operating EBITDA3 growth +41% and +52% v
Slide 16: Financial highlights
Financial highlights Strong growth continued across all financial metrics. No impact from COVID at this stage For personal use only Revenue1 Statutory EBITDA 39% v (0.01m) $6.9m $1.0m Gross Profit Gross Profit % $3.6m 58% 52% 6% Operating EBITDA2 Operating EBITDA % $2.6m 52% 38% 3% Underlying EBITDA
Slide 17: FY20 Results
For personal use only 04 FY20 RESULTS 9
Slide 18: Profit & Loss
Profit & Loss Strong revenue growth is driving operational leverage across earnings metrics For personal use only A$’000s FY194 FY20 % change Commentary Underlying • Strong underlying growth driven by continued momentum in Sydney and Victoria and new office Revenue1 4,950 6,893 39% contribution from
Slide 19: Balance Sheet
Balance Sheet Robust balance sheet, record cash balance and no debt For personal use only A$’000s FY19 FY20 Commentary Cash and cash equivalents 1,050 1,555 • Cash balance strengthened to a record level of Accounts receivable 2,002 1,802 more than $1.5m at 30 June 2020 Other current assets 56 141 To
Slide 20: Strategic Review
For personal use only 05 STRATEGIC REVIEW
Slide 21: Who are we?
Who are we? We want to be the first and largest global family law firm in the world For personal use only CORE PURPOSE To become Australia’s first and largest National Family Law Firm CORE VALUES Think Different; Fanatical customer focus; Under promise, over deliver; Act like an owner; Have fun, alw
Slide 22: What have we achieved since IPO?
What have we achieved since IPO? All FY20 annual priorities set at IPO have been completed For personal use only LAUNCH AFL 2.0 EXPAND INTO (1) NEW RECRUIT (2) LATERAL IMPLEMENT SALESFORCE ESTABLISH ADDITIONAL GEOGRAPHY HIRES AND STRENGTHEN THE SERVICE LINES MARKETING TEAM Launched in January 2020 E
Slide 23: Where are we going? Year Plan tracking ahead of schedule
Where are we going? 3 Year Plan tracking ahead of schedule For personal use only FY20 FY21 FY22 • Launch AFL 2.0 - #1 Priority • Presence in all state and territories • Move into new “add-on” services (eg. in Australia - #1 Priority funding) • Expand into (1) new geographic region • Consolidate outc
Slide 24: Thank You
For personal use only THANK YOU
Australian Family Lawyers — FY2020 Earnings Presentation on 6ix