Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — IMF Bentham — Investor Presentation (January 2018)
23 slides from Omni Bridgeway's investor presentation, January 2018
Slide 1: Investor Presentation January 2018
For personal use only INVESTOR PRESENTATION January 2018
Slide 2: Disclaimer
DISCLAIMER The material in this presentation has been prepared by IMF Bentham Limited (IMF) and is general background For personal use only information about IMF's activities. The information is given in summary form and does not purport to be complete. This presentation is provided for general
Slide 3: Worldwide Funding Solutions
Worldwide Funding Solutions For personal use only SAN FRANCISCO LONDON TORONTO LOS ANGELES NEW YORK HOUSTON HONG KONG SINGAPORE BRISBANE PERTH SYDNEY ADELAIDE MELBOURNE IMF is one of the most experienced and successful litigation funding companies in the world. We are pioneers of the litigation fund
Slide 4: What is Litigation Funding?
WHAT IS LITIGATION FUNDING? For personal use only As a “litigation funder” IMF provides funding on a contingency basis to businesses and individuals with claims for loss and damage. IMF provides funding for the client’s case or to the client and, in jurisdictions where adverse costs are relevant
Slide 5: Litigation Funding Market
LITIGATION FUNDING MARKET There is currently no direct empirical data available on the size of the litigation funding market in any For personal use only market in which IMF operates. The following estimates have been calculated by reference to third party research reports on legal services mark
Slide 6: IMF's Competitors
IMF’S COMPETITORS In Australia it is estimated that IMF has 65.8% of the litigation funding market. (ref : IBIS 2017) For personal use only The key industry participants in the markets in which IMF operates include: Australia US Europe/Asia JKL/Longford Capital Burford Harbour Litigation Lending S
Slide 7: Overview of IMF Bentham Limited
OVERVIEW OF IMF BENTHAM LIMITED IMF has delivered a global ROIC of 1.6x since listing on the ASX in 2001. IMF is continuing to execute its growth strategy For personal use only including international expansion, diversification and capital management. IMF Fast Facts Detail A leading global litigatio
Slide 8: Financial Results Overview
FINANCIAL RESULTS OVERVIEW For personal use only FY2017 FY2016 FY2017 v FY2016 Contract Income $113.3M $99.8M 14% Litigation Expenses $(59.2)M $(46.8)M 26% Net Income (from cases) $54.1M $53.0M 2% Net Operating Expenses $(28.4)M $(26.8)M 5% NPBT $25.7M $26.2M 1% EPS (cents per share) 9.04 cents
Slide 9: Balance Sheet Strength
BALANCE SHEET STRENGTH Cash Investments1 Net Assets For personal use only $M $M $M Cash Investments Net Assets ($ Million) ($ Million) ($ Million) 3 4 2 206.3 201.4 190.9 191.1 185.9 145.6 144.9 142.5 130.1 125.5 105.6 99.5 98.6 86.1 68.0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2
Slide 10: FY2017 Operational Highlights
FY2017 OPERATIONAL HIGHLIGHTS For personal use only Improved sourcing of potential investment opportunities. Rapidly growing and dynamic asset class. High potential for IMF to lead market globally, given existing scale and increasing diversity. 10
Slide 11: IMF's Track Record of Success
IMF’s TRACK RECORD OF SUCCESS For personal use only Revenue Summary Revenue to funded claimants $1,310M 62% Revenue to IMF: Reimbursement of costs (40%) $306M 15% Net income (excluding overheads) (60%) $486M 23% IMF total revenue (100%) $792M 38% Total revenue generated $2,102M 100% Completions by R
Slide 12: Cases and Commitments
CASES AND COMMITMENTS For personal use only Growth derived from: Increase in number of Investment Managers. Maturing offices in US, Canada and Singapore. Launch of new product offerings for corporates and insolvency. Increased targets for funding for Investment Managers. 12
Slide 13: Investment Portfolio at December 2017
INVESTMENT PORTFOLIO AT 31 DECEMBER 2017 For personal use only Increase in number of investments currently funded to 77. 3 further investments conditionally funded, and 7 investments approved for funding by the Investment Committee at 31 December 2017. 13
Slide 14: Investment Portfolio at December 2017
INVESTMENT PORTFOLIO AT 31 DECEMBER 2017 IMF Group (Non-USA), Fund 2 and Fund 3 – Estimated Portfolio Value For personal use only Possible Possible Possible completion Number of EPV completion completion FY2020 and investments $m FY2018 FY2019 later $m $m $m IMF Group (non-USA) 28 1,528.1 576.5 548.
Slide 15: Investment Portfolio at December 2017: Notes
INVESTMENT PORTFOLIO AT 31 DECEMBER 2017 Notes to the Group’s Investment Portfolio For personal use only Investments Included in Portfolio The Investment Portfolio includes investments for which the IMF group or the Funds have entered into an unconditional commitment to fund and includes investments
Slide 16: IMF Capital Plans
IMF CAPITAL PLANS For personal use only IMF has now launched a US Fund and Fund 2 & Fund 3 (Non-US Funds) to fund all new matters from 2017 for the next three years (or until fully deployed). The funds, together with the issue of bonds in 2016 and 2017, have provided IMF with access to approxima
Slide 17: US Fund Economics and Hypothetical Investment
US FUND ECONOMICS AND HYPOTHETICAL INVESTMENT For personal use only IMF’s US Fund provides an opportunity for IMF to considerably enhance its risk adjusted returns via non- recourse equity finance. Key fund dynamics: Investor IMF Total IMF US Fund Total capital commitments of USD133m with mutu
Slide 18: Fund 2 and Fund 3 Economics and Hypothetical Investment
FUND 2 AND FUND 3 ECONOMICS AND HYPOTHETICAL INVESTMENT For personal use only IMF’s Fund 2 and Fund 3, coupled with the ATE cover, provides an opportunity for IMF to fully deploy the fund in a risk managed, non-recourse leveraged equity structure. Key fund dynamics: Investors IMF Total IMF Fund
Slide 19: ATE Policy
ATE POLICY ATE policy with “A” grade insurer. For personal use only Limit of $30 million, after excess of $7.5 million. Covers all cases written for the next three years in Fund 2 and Fund 3, irrespective of date of completion. Cost of $10.3 million plus GST and stamp duty, paid out of Fund
Slide 20: Enhanced Risk Management
ENHANCED RISK MANAGEMENT For personal use only IMF’s risk management process includes Case selection, Investment Committee review, and Case Management. Case selection must meet minimum legal, factual and commercial criteria before recommendation to the Investment Committee. Rigorous Investment
Slide 21: Growth Strategy
GROWTH STRATEGY IMF has identified significant opportunities for growth and risk diversification. For personal use only Item Opportunity Major domestic growth Renewed focus on the insolvency market and corporate funding. opportunities Potential opportunities with common fund orders with open cla
Slide 22: Key Risks - IMF
KEY RISKS - IMF Item Description For personal use only Investments in cases which are If a funded case is lost, IMF will lose not only its investment but may, in jurisdictions in which the lost “loser pays” rule applies have to pay the defendant’s costs. Portfolio concentration risk IMF’s financ
Slide 23: For personal use only
For personal use only Website: www.imf.com.au Email: [email protected] Telephone: 1800 016 464