L itig a tio n Ca pita l Ma na g e me nt L imite d 2018 Ha lf Ye a r Re sults Pre se nta tio n 28 F e b rua ry 2018 Patr ic k Molone y Chie f E xe c utive Offic e r
Important information No recommendation, offer, invitation or advice Investment risk This presentation contains general information about the activities of Litigation Capital Any investment in LCA securities is subject to investment and other known and unknown risks, Management Limited (LCA) which is current as at 28 February 2018. It is in summary form and some of which are beyond the control of LCA. Any forward-looking statements, opinions and does not purport to be complete. It presents financial information on both a statutory basis, estimates in this presentation are based on assumptions and contingencies which are subject to prepared in accordance with Australian accounting standards which comply with International change without notice, as are statements about market and industry trends, which are based on Financial Reporting Standards (IFRS) as well as information provided on a non-IFRS basis. This interpretations of current market conditions. For example, the factors that are likely to affect presentation is not a recommendation or advice in relation to LCA or any product or service the results of LCA include, but are not limited to, general economic conditions in Australia, offered by LCA’s subsidiaries. exchange rates, competition in the markets in which LCA operates or may operate and the inherent regulatory risks in the businesses of LCA. Neither LCA, nor any other person, gives any This presentation is not intended to be relied upon as advice to investors or potential investors, representation, assurance or guarantee that the occurrence of the events expressed or implied and does not contain all information relevant or necessary for an investment decision. It should in any forward-looking statements in this presentation will actually occur. In addition, please be read in conjunction with LCA’s other periodic and continuous disclosure announcements filed note that past performance is no guarantee or indication of future performance. with the Australian Securities Exchange, and in particular the Half Year Results for the Half Year to 31 December 2016. These are also available at http://www.lcmfinance.com. Investors and Jurisdiction potential investors should make their own independent assessment of the information in this This presentation does not constitute an offer to issue or sell, or solicitation of an offer to buy, presentation and obtain their own independent advice from a qualified adviser having regard to any securities or other financial products in any jurisdiction. The distribution of this presentation their objectives, financial situation and needs before taking any action. outside Australia may be restricted by law. 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Investors and potential investors should consult with their own professional advisors in connection with any investment decision in relation to LCA securities. Forward looking statements The information in this presentation is for general information only. To the extent that certain statements contained in this presentation may constitute “forward-looking statements” or statements about “future matters”, the information reflects LCA’s intent, belief or expectations at the date of this presentation. Subject to any continuing obligations under applicable law or any relevant listing rules of the Australian Securities Exchange, LCA disclaims any obligation or undertaking to disseminate any updates or revisions to this information over time. Any forward- looking statements, including projections, guidance on future revenues, earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause LCA’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. 2
1H18 Financial & Operational Highlights T he lo ss fo r L CM a fte r pro viding fo r inc o me ta x a mo unte d to $1.27M fo r the ha lf ye a r e nde d 31 De c e mb e r 2017. T his c o mpa re s with a lo ss fo r the c o rre spo nding 2016 pe rio d o f $2.36M. As a nno unc e d to the ma rke t this we e k, a s a re sult o f the Co mple tio n o f two L itig a tio n Pro je c ts (funde d dire c tly b y L CM), L CM ha s g e ne ra te d re ve nue o f a ppro xima te ly $20.2M a nd a c o ntrib utio n to E BI T DA o f $12.3M. T his sub se q ue nt e ve nt is like ly to e na b le L CM to mo ve to a he a lthy sta tuto ry pro fit po sitio n fo r F Y2018. T he fina nc ia l pe rfo rma nc e o f the two L itig a tio n Pro je c ts whic h ha ve Co mple te d po sitive ly c o ntrib ute s to L CM’ s histo ric a l fina nc ia l pe rfo rma nc e with a running I RR o ve r the la st 6.5 ye a rs (inc lusive o f lo sse s) o f 82%. T he third L itig a tio n Pro je c t (funde d pursua nt to the I PF A*) is sub je c t to c e rta in po st- se ttle me nt e ve nts a nd is no t e xpe c te d to b e fina lly c o mple te d fo r a ppro xima te ly 12 mo nths. T he Dire c to rs o f L CM a re e xtre me ly ple a se d with this re sult whic h de mo nstra te s the pro g re ss the Co mpa ny is ma king a nd its a b ility to g e ne ra te sig nific a nt pro fits g o ing fo rwa rd a nd ma na g e me nt’ s a b ility to ma ke so und a nd prude nt inve stme nts in litig a tio n o ppo rtunitie s. *Inte rna tio nal Pa rtne r F unding Arra ng e me nt 3
Strong Litigation Project performance 1H18 Litigation Project Highlights T he L CM’ s po rtfo lio o f L itig a tio n Pro je c ts is no w the la rg e st (in te rms o f numb e r a nd a g g re g a te Gro ss Cla im Size ) tha t is ha s b e e n sinc e its inc e ptio n. L CM is pro ud to ha ve ma na g e d L itig a tio n Pro je c ts o ve r the la st 6.5 ye a rs tha t ha ve pro duc e d a ROI C o f 2.5x a t a n a ve ra g e time to ma turity o f 26 mo nths a t a n I RR (inc lusive o f lo sse s) o f 82%. As a t 31 De c e mb e r 2017 L CM ha d $19M c a pita l inve ste d in L itig a tio n Pro je c ts a s c o mpa re d with $12.5M a s a t 30 June 2017, a n inc re a se o f 52% in 6 mo nths. L CM is c urre ntly ma na g ing 14 L itig a tio n Pro je c ts, (11 o f whic h L CM is fina nc ing dire c tly) with a n a g g re g a te Gro ss Cla im Size o f c . $919M. L CM ha s a lso c o nditio na lly a g re e d to fund a furthe r 5 c la ims with a n a g g re g a te Gro ss Cla im Size o f $463M. T he o rg a nic a lly g e ne ra te d re ve nue re c e ive d b y L CM will e na b le it to ma ke a dditio na l inve stme nts in via b le a nd pro fita b le L itig a tio n Pro je c ts. 4
Significant growth in Litigation Project portfolio Current Litigation Project portfolio Forecast FY18 FY19 Total Completion F o llo wing the Co mple tio n o f 2 L itig a tio n Pro je c ts in F e b rua ry 2018, the re a re c urre ntly L CM 3 8 11 14 L itig a tio n Pro je c ts in the po rtfo lio , 5 o f whic h IPF A* 2 1 3 a re fo re c a st to Co mple te this F Y2018. T o ta l 5 9 14 L CM is ma na g ing a po rtfo lio with Gro ss Cla im Size o f c . $919M ($750M o f whic h it is funding dire c tly). Litigation Project Pipeline At pre se nt the re a re 29 Pipe line Pro je c ts, 5 o f whic h a re sub je c t to a c o nditio na l funding a g re e me nt. T he se 5 c o nditio na l pro je c ts ha ve a n a g g re g a te Gro ss Cla im Size o f c . $463M. T he c urre nt Pipe line Pro je c ts ha ve a n a g g re g a te : e stima te d Gro ss Cla im Size o f c . $2.6B e stima te d b udg e t o f c . $109M 64 a pplic a tio ns fo r litig a tio n funding re c e ive d in first ha lf o f F Y2018 c o mpa re d with 31 in the c o rre spo nding pe rio d fo r F Y2017. *I nte rna tio na l Pa rtne r F ina nc ing Ag re e me nt 5
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