SHINE JUSTICE LTD — AGM Information 2018

Oct 22, 2018

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23 October 2018

Shine Corporate Ltd (SHJ)

Chairman’s Address and Managing Director’s Presentation

In accordance with ASX Listing Rule 3.13.3, Shine Corporate Ltd provides the following which will be presented at its Annual General Meeting commencing at 11am (Brisbane time) today:

1. Chairman’s Address; and

2. Managing Director’s Presentation.

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Annette O’Hara Company Secretary

Shine Corporate Ltd Level 13, 160 Ann Street Brisbane QLD 4000 Tel: 07 3837 9448

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CHAIRMAN’S ADDRESS

SHINE CORPORATE LTD ANNUAL GENERAL MEETING 23 OCTOBER 2018

Before Simon presents his summary of the Company’s performance over the past year and outlook for the year ahead, I would like to make a few observations.

This was another year of consolidation, focusing on our core capabilities and building for the future. Importantly for our shareholders, we continued to deliver more acceptable levels of profitability, improved cash conversion and more acceptable returns on equity.

We achieved EBITDA of $37.7 million, compared with $36.5 million in the previous year. Net profit after tax of $19.1 million compares with $20.2 million previously (due to permanent differences brought to account in the previous year which were not applicable in FY18). Pleasingly, gross operating cash flow of $21.9 million represents a record outcome for the Group.

The Directors were pleased to declare a final dividend of 2.25 cents per Share, franked to 41%. This adds to the 1 cent per share fully franked interim dividend declared in February 2018.

These financial results are encouraging and the improvements we have made to the business this year provide a platform from which we continue to build a profitable business that delivers outstanding outcomes for our clients.

The Group settled or resolved more than 6000 cases for our clients during the year and procured damages in excess of $600 million.

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We continued to execute our strategy to diversify into practice areas in addition to personal injuries, notably class actions, family law, professional and medical negligence, land and environmental cases, dust diseases and abuse law.

Earlier this month, we were pleased to announce the expansion of our class actions practice through the acquisition of ACA Lawyers, Sydney based experts in commercial litigation and dispute resolution. The acquisition meets our strategic acquisition criteria and expands our class actions team and practice to include a number of shareholder class actions.

The Engine Room project, our new integrated legal management solution enabling us to deliver enhanced service to our clients, has been successfully rolled out during the course of the Financial Year and is expected to be completed across the entire Group by the end of the current financial year. The project enhances quality assurance in matter management, velocity and resolution.

Our investment in marketing, both in the best performing traditional channels and emerging media, saw positive growth in new enquiries and strengthened our brand presence across all regions, providing momentum for further growth.

Our leadership team has stabilised, strengthening our capability at all levels in the organisation to deliver consistent, high quality service across all work types and regions.

We continued our work to identify growth opportunities, both organic and acquisitive, and we maintain our goal of building a national family law practice.

We await judgement in completed court proceedings for one of Australia’s largest product liability class actions relating to faulty prolapse mesh implants. The Federal Health Minister has recently issued a national apology to the many women whose lives have been ruined by the side effects of these implants.

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We filed a class action on behalf of AMP shareholders following Royal Commission hearings, where evidence was given of misleading and deceptive conduct and false representations about the manner in which clients were charged for services that were not provided.

Following the commencement of our class action against the Commonwealth Department of Defence in relation to claims for exposing residents of the Queensland town of Oakey to toxic chemicals, we filed a further class action for similar alleged contamination in Katherine in the Northern Territory.

During the Financial Year, we appeared before the Royal Commission into Institutional Responses to Child Sexual Abuse, represented more than 700 victims of abuse and launched an abuse practice in New Zealand. Yesterday, in an address to the Australian Parliament, the Prime Minister and the Leader of the Opposition apologised on behalf of the nation to the thousands of survivors of institutional child sexual abuse, as recommended by the Commission, and we were honoured to be in attendance.

We urged State political leaders to investigate practices employed in stonemasonry workshops, where dry cutting of artificial stone is exposing workers to the risk of the deadly lung disease, silicosis. We are very pleased that our actions have resulted in action at State and Federal levels to investigate and stop unsafe work practices.

I would like to take this opportunity to thank my fellow Directors for their valuable contribution to the Group and to our shareholders for your ongoing support.

With the dedication of all our people, I am confident that Shine is well placed for the future.

I will how hand over to the Managing Director.

23 October 2018

Disclaimer

This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Shine Corporate Ltd and certain plans and objectives of the management of Shine Corporate Ltd. Such forward-looking statements involve both known and unknown risks, uncertainties, assumptions and other important factors which are beyond the control of Shine Corporate Ltd 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 Ltd nor any of 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 Ltd, 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.

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2018 ANNUAL GENERAL MEETING

Corporate Overview

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Personal Injury

Emerging Practice Areas

• Shine Lawyers

• Bradley Bayly Legal

• Stephen Browne PI Lawyers

• Sciaccas Lawyers

• Shine Lawyers

• Emanate Legal Services

• Best Wilson Buckley Family Law

• Risk Worldwide New Zealand / My Insurance Claim

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2018 ANNUAL GENERAL MEETING

Justice for a Better Outcome

Global and National Media

Contamination Class Action

Katherine, Townsville, Oakey, Darwin

Medical & Professional Negligence

Mesh Class Action, Silicosis, Quakers Hill Nursing Home Class Action

Greater 6000+ than Client $600m Matters Damages Settled for Clients

847 Team Members

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Emerging Areas
• Silicosis
• Contamination
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• Abuse Law
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Financial

AMP, Westpac / Bankwest, Agricultural – Walnut Industry

Sexual Abuse

WA Limitation Laws, New Zealand Abuse

Employment and Discrimination

METOO and NOW Movements, Gold Coast Suns

Property and Tourism

Princess Cruises

• Personal injury • Transport (motor vehicle, workplace, • Cycling

• public liability)

• Superannuation • Commercial, land and environment

• and disability

• Abuse law • Family law

• Insurance and loss adjustment

• Class actions

• Product Liability • Defamation

• Aviation

• Asbestos

• Professional and medical • Dust

• negligence

• Silicosis

• • Bankruptcy and Insolvency

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2018 ANNUAL GENERAL MEETING

FY2018 Highlights

• •

• Financial results within Guidance Continuous improvement focus across • Group revenue up 8.69% to $179.37m

• Group - inch wide, mile deep strategy

• • Delivered 2018 commitments on leadership • • EBITDA¹ up 3.37% to $37.72m

• and operational efficiencies Robust pipeline for organic and acquisitive •

• opportunities Profit before tax up 12.9% to $28.76m

• Innovation and marketing spend on track to deliver 2019 goals

• •

• deliver 2019 goals Scale, brand and disciplined capital spend NPAT down 5.16% to $19.11m

• • while maintaining our investment in lower • 51 branches across Australia and New Final dividend of 2.25 cps (41% franked) risk strategies

• Zealand

  • Gross Operating cash flow (GOCF) up 13.61% to $21.87m

• Now poised for growth

• Strong and capable management with industry experience

• GOCF¹ / EBITDA ratio: 58% (FY17: 53%)

• Advanced, customer-focused technology platform with further improvements to come

• EBITDA and GOCF are not IFRS calculations which appear in the financial statements, and have not been audited.

2018 ANNUAL GENERAL MEETING

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FY2018 Highlights – Subsidiaries

Subsidiary	Operational Highlights
Sciaccas	Ongoing development in employment and industrial law.
Emanate Legal	Improving conditions in CSG and Mining sectors - Qld and NSW. Further activities in mining industry and infrastructure expected in 2019.
Stephen Browne	Continuation of solid performance and contribution to Group financial KPI’s.
Bradley Bayly	Strong growth with new revenue streams – WA abuse claims.
Best Wilson Buckley Family Law	Continuation of Family Law services expansion with opening of North Lakes office, Queensland.
Risk Worldwide NZ	Growth opportunities in residential sector post earthquake. “Botched repairs”.

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2018 ANNUAL GENERAL MEETING

FY18 Group Results

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Revenue

NPAT

EBITDA¹

GOCF¹

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0 5 10 15 20
120 130 140 150 160 170 180
2018 2017
2018 2017
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30 32.5 35 37.5 15 16 17 18 19 20 21 22
2018 2017 2018 2017
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1. EBITDA and GOCF are not IFRS calculations which appear in the financial statements, and have not been audited.

2018 ANNUAL GENERAL MEETING

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FY18 Financial Results: Balance Sheet

AS AT ($’000)	30 June 18	30 June 17
Cash	22,549	14,188
Receivables	12,222	15,458
Work in progress	257,037	226,334
Unbilled disbursements	78,083	64,176
PP&E and other	11,532	13,781
Intangibles	48,291	48,997
Total assets	429,714	382,934
Trade payables	13,234	16,143
Disbursement creditors	55,930	32,102
Borrowings	47,732	45,251
Lease liabilities	9,998	7,372
Vendor liabilities	0	3,286
Deferred tax liabilities	74,786	65,259
Provisions	9,894	9,043
Total liabilities	211,574	178,456
Net assets	218,140	204,478

• Cash on hand at 30 June 2018 was $22.5m

• Net WIP grew by 13.7% ($31m) to $257m, primarily from organic growth within Shine Lawyers and the Mesh Class Action

• Shine Lawyers WIP provisions total $53.2m (19.9%)

• Marginal increase in borrowings

• Deferred tax liability relates primarily to WIP

Vendor liabilities – final two payments made during the period

Disbursement creditors grew due to Mesh Class Action and short-term facility

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2018 ANNUAL GENERAL MEETING

2019 Outlook & Priorities

Drive innovation Leveraging Shine’s scale and capabilities for competitive advantage to win in the marketplace and fuel growth Capital discipline and Realise benefits in time and cost effectiveness, quality and compliance resource allocation EPA pipeline Strong pipeline and focus on key sectors Marketing & Branding Strengthen brands, niche services and marketing strategy. Trusted advisor of choice Target operating model National, integrated and highly automated service platform Long term incentive plan Secure leadership and emerging talent Outlook FY19 EBITDA guidance: continued modest improvement

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2018 ANNUAL GENERAL MEETING