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SHINE JUSTICE LTD AGM Information 2013
65787_rns_2013-10-22_fc75a974-da9b-4e7b-a056-6eed5e18b2ec.pdf
AGM Information
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SHINE CORPORATE LTD
2013 Annual General Meeting
Introduction
Performance Highlights Brand & Operational Highlights Acquisitions Strategy & Outlook FY14 Financial Forecast 3 Year Strategic Outlook
Shine's values and brand
Shine's vision:
Shine a light on injustice and make the world a better place one client at a time.
Shine's purpose:
Right Wrong
Shine's three core values:
- always stand up for the little guy
- ahead of the pack
- dare to be different
Introduction
Workers' compensation Motor vehicle accidents Medical negligence Public liability
Product liability Professional negligence Environmental Disability insurance and superannuation Class actions First party insurance Landowners' rights Aviation Asbestos Human rights
Introduction Performance Highlights Brand & Operational Highlights Acquisitions Strategic & Outlook FY14 Financial Forecast 3 Year Strategic Outlook
FY13 Financial Summary
| FY13 IPO | |||
|---|---|---|---|
| Measure | FY121 | Forecast | FY13 |
| Revenue | $85.5 | $101.7 | $105.24 |
| EBITDA | $23.6 | $27.1 | $27.65 |
| EBITDA Margin | 27.6% | 26.6% | 26.3% |
| EBIT | $22.8 | $25.7 | $26.1 |
| NPAT | $15.5 | $17.3 | $17.5 |
| Earnings per Share2 | 12.8c | 11.2c | 12.3c |
| Dividend per Share | 1.50c | 1.75c | |
| Gross Operating Cash Flow | $11.8 | $8.1 | $8.7 |
| Gearing Ratio (using Net Debt)3 | 7.1% | 3.7% | 3.2% |
Notes: 1 - The figures for FY12 shown in the table comprise the results of the Company, Shine Partnership and the Service Trust as if they had operated as one entity, as detailed in Shine Corporate Ltd's Prospectus of 28 March 2013. 2 - Earnings per Share for FY12 and FY13 are based on the weighted average number of ordinary shares for basic and diluted shares of 141,775,578 and 138,925,282 respectively, whilst the FY13 IPO Forecast contained in the prospectus was based on 155,000,000 shares. If FY13 IPO Forecast was based on the same weighted average number of shares as FY13, the Earnings per Share equates to 12.3 cents. 3 - The FY13IPO Forecast gearing ratio is based on the Pro Forma Dec12 Balance Sheet as detailed in Shine Corporate Ltd's Prospectus of 28 March 2013. 4 – Excludes Interest Revenue of $238,725. 5 – Excludes $36,434 of depreciation from the Service Trust, which has been treated as Rent expense for Statutory Accounts purposes
Financial Highlights
The figures for FY08, FY09, FY10, FY11 and FY12 shown in the graphs comprise the Company, Shine Partnership and the Service Trust as if they had operated as one entity, as detailed in Shine Corporate Ltd's Prospectus of 28 March 2013. FY13 Revenue excludes $238,725 of Interest Revenue
- FY13 Revenue growth of 23% (organic and acquisitions including full year contribution from FY12 acquisitions)
- Emerging Practice Revenue grew from 7% to 12% of Total Revenue
• FY13 EBITDA growth of 17% from same Revenue growth drivers, offset by Shine's investment in the future (brand refresh, key people, RWW NZ) and additional WIP provision in FY13 of $2.5m
Performance Highlights
The figures for FY08, FY09, FY10, FY11 and FY12 shown in the graphs comprise the Company, Shine Partnership and the Service Trust as if they had operated as one entity, as detailed in Shine Corporate Ltd's Prospectus of 28 March 2013.
- FY13 GOCF of $8.7m ahead of IPO Forecast of $8.1m
- Disbursement funding initiative to commence
• FY13 WIP Provision increased by $2.5m at Dec 2012 and increased at June 2013 to $21.6m (15.7% of Gross WIP)
Introduction Performance Highlights Brand & Operational Highlights Acquisitions Strategy & Outlook FY14 Financial Forecast 3 Year Strategic Outlook
Brand & Operational Highlights
- Brand Refresh
- Refinement to Shine Case Management (SCM) processes
- T2 business improvement project progressing as planned
- Improvement in case selection processes
- Improvement to integration of acquisitions
- Erin Brockovich
Introduction Performance Highlights Brand & Operational Highlights Acquisitions Strategy & Outlook FY14 Financial Forecast 3 Year Strategic Outlook
Acquisitions
National Opportunity / Emerging Practice Area
Acquisitions – General:
- Cultural and Client Fit?
- Does it suit our 5-10 year plan?
- Is it Profitable? Cash conversion reasonable?
- Can we improve the performance of acquisition?
- Can we manage Integration and Execution Risks?
Acquisitions- Emerging Practice Areas:
- Can we be top 2 in segment?
- Is a dominant player absent?
- Can we integrate Shine Business processes?
- Can we manage risks?
Acquisitions
- Continuing to focus on damages based plaintiff litigation / Emerging Practice - 'Inch wide mile deep' strategy:
- Acquisitions completed in FY13:
- 3 x NSW (Fairfield x 2 and Liverpool) personal injury
- 1 x QLD (Dalby and Toowoomba) landowners' rights
- File purchases continue with distribution through existing network
- Acquisition pipeline for both domestic and international opportunities
Introduction Performance Highlights Brand & Operational Highlights Acquisitions Strategy & Outlook FY14 Financial Forecast 3 Year Strategic Outlook
3 Year Strategic Outlook
Financial Driver Focus
- File openings / growth
- WIP recovery rate
- Case file management
Industry Trends
- Australian growth potential of Shine
- Consolidation trends
- Smaller firms experiencing constraints
- Legislative WorkCover, NDIS, NIIS
Operational Priorities
- Champion the client
- File velocity
- Technology investment
- Culture reinforcement
- Training & development
Growth Opportunities
- Brand execution
- Acquisitions Personal Injury and Emerging Practice Areas (CSG, RWW focus)
- Australian market potential
- UK market
Introduction Performance Highlights Brand & Operational Highlights Acquisitions Strategy & Outlook FY14 Financial Forecast 3 Year Strategic Outlook
FY14 Financial Forecast
The figures for FY10, FY11 and FY12 shown in the graphs comprise the Company, Shine Partnership and the Service Trust as if they had operated as one entity, as detailed in Shine Corporate Ltd's Prospectus of 28 March 2013. FY13 Revenue excludes $238,725 of Interest Revenue
- Directors confirm FY14 IPO Forecast for Revenue and EBITDA
- Key assumptions include maintaining productive time at an 84.5% recoverability rate, and the addition of 18 new Fee Earners
FY14 Financial Forecast
- Reaffirm 2014 forecasts
- Workcover update
- Continue national expansion opportunities
- Emerging Practice Area
Questions?
More Information:
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- This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Shine Corporate Limited and certain plans and objectives of the management of Shine Corporate Limited .
- Such forward-looking statements involve both known and unknown risks, uncertainties, assumptions and other important factors which are beyond the control of Shine Corporate Limited and could cause the actual outcomes to be materially different from the events or results expressed or implied by such statements.
- None of Shine Corporate Limited , its officers, advisers or any other person makes any representation, assurance or guarantee as to the accuracy or likelihood of fulfilment of any forward-looking statements or any outcomes expressed or implied by any forward looking statements.
- The information contained in this presentation does not take into account investors investment objectives, financial situation or particular needs. Before making an investment decision, investors should consider their own needs and situation and, if necessary, seek professional advice.
- To the maximum extent permitted by law, none of Shine Corporate Limited, its directors, employees or agents, nor any other person accepts any liability for any loss arising from the use of this presentation or its contents or otherwise arising out of, or in connection with it.