SHINE JUSTICE LTD — Earnings Release 2023

Aug 28, 2023

29 August 2023

ASX Announcement

Shine Justice Ltd (SHJ) FY23 Results Presentation

Attached is Shine Justice Ltd's full year results presentation for the financial year ended 30 June 2023.

Authorised for release by the Board.

Annette O'Hara Company Secretary | General Counsel aohara@shine.com.au

Shine Justice

For more information

Simon Morrison, Managing Director - Shine Justice Limited 07 3837 9435 Ravin Raj, Chief Financial Officer - Shine Justice Limited 07 3837 8449

Simon Morrison MANAGING DIRECTOR & CEO 29 August 2023

Ravin Raj CHIEF FINANCIAL OFFICER

Shine Justice – Important Notice

This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Shine Justice Ltd and certain plans and objectives of the management of Shine Justice Ltd.

Such forward-looking statements involve both known and unknown risks, uncertainties, assumptions and other important factors which are beyond the control of Shine Justice Ltd and could cause the actual outcomes to be materially different from the events or results expressed or implied by such statements. Shine Justice Ltd and none 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 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 Justice 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.

P U R P O S E D R I V E N , R E S I L I E N T A N D D E T E R M I N E D T O S E E K J U S T I C E F O R O U R C L I E N T S

Shine Lawyers

• Class actions
• Superannuation and disability
• Head trauma
• Catastrophic injuries
• Dust disease
• Commercial disputes
• Medical negligence Estate litigation

Family Law

Best Wilson Buckley (QLD) Carr & Co (WA)

1 New Practice Areas

*Includes Abuse Law from 1 July 2022

NPA1 Personal Injury

Motor vehicle, workplace, public liability, abuse

• Shine Lawyers*
• Sciaccas (QLD)
• Stephen Browne (WA)
• Bradley Bayly (WA)
• Claimify

FY23 Results Presentation | 4

Simon Morrison Managing Director & CEO

Key Financial Metrics

1 EBITDA and GOCF are not IFRS calculations which appear in the financial statements and have not been audited. Adjusted EBITDA is adjusted to exclude the impact of the $32.4m fair value adjustment to Unbilled Disbursements (Ethicon Mesh Class Actions interest)

Learnings

• Post covid fatigue still present
• Delayed settlements / approvals affected cashflows significantly
• Key changes implemented in class action practice leadership
• Requirement to reshape legal and management structures

Achievements

• QLD core PI business continues to be a significant contributor to Group results
• Settled 6 class actions for $672m and commenced 3 new class actions for approximately 25,000 group members
• Resolved the largest medical device product liability case in Australian legal history
• Reviewed legal and operational cost base to allow investment for the future

Intentions

• FY24 will show significant improvement in cashflow
• The baseline for class actions continues to grow strongly, including sourcing US actions
• Reviewed cost base and management structure positions to assist with future EBITDA

Past Four-Year Performance

Healthy Forward Book of Work

NB: Values shown are for current and active workbook only and exclude settled, and on pause matters

Ravin Raj Chief Financial Officer

Financial Results – Detailed Profit and Loss

	FY23 ($m)	FY22 ($m)	Variance (%)
Revenue1	231.64	215.13	↑7.67
NPAT	3.31	31.21	↓89.39
Adjusted EBITDA1,2	61.61	63.09	↓2.35
Employee Benefits Expense1	123.30	111.58	↑10.50
Overheads1	69.93	58.51	↑19.52

1 Discontinued operations (Emanate) eliminated in certain PCP comparatives

2 EBITDA is not an IFRS calculation which appears in the financial statements and has not been audited. Adjusted EBITDA is adjusted to exclude $32.4m of fair value adjustment to Unbilled Disbursements (Ethicon Mesh Class Actions interest)

	FY23	FY22	Variance (%)
Earnings per share(cents)	1.92	18.02	↓ 89%
Final dividendper share (cents)	0.00	3.50	↓100%
Full year dividendper share (cents)	1.50	6.00	↓75%

• EPS impacted by Ethicon adjustment

• No final dividend due to low cash conversion in FY23

Normalised EBITDA Bridge

Financial Results – Balance Sheet

AS AT ($'000)	30 June 23	30 June 22
Cash	21,088	51,864
Receivables	13,332	15,754
Work in progress	380,581	332,476
Unbilled disbursements	89,404	104,249
PP&Eand other	19,408	15,739
Intangibles	47,068	46,998
Right of Use Assets	39,070	34,108
Financial assets of fair value	11,346	12,156
Total assets	621,297	613,344
Trade payables	12,886	16,203
Disbursement creditors	94,781	99,357
Borrowings	64,424	50,196
Lease liabilities	47,456	42,518
Deferred and current tax liabilities	116,083	114,056
Provisions and other	2,863	1,864
Employee liabilities	11,960	11,346
Total liabilities	350,453	335,540
Net assets	270,844	277,804

• Cash in hand reduction due to low cash conversion in FY23
• Growth in borrowings due to above and expenditure on new offices, technology, new marketing platform

Financial Results – Gross Operating Cash Flow

Gross Operating Cash Flow Bridge (GOCF)

GOCF $m

Simon Morrison Managing Director & CEO

Diversity in Class Action Portfolio

40 Class Actions commenced, in the pipeline or under investigation

1. Includes Banking and Super.

2. Includes Auto.

3. Includes Competition, Environmental, Government, Privacy & Data and Social Justice / Human Rights.

Ten-Year Company Performance

• Strategies to improve FY24 cash flow
• H1 cash to be boosted by Class Actions settlements
• Multi-site Contamination Class Action $123 million settlement approved by Federal Court on 25 August 2023, including fees to Shine of $8.45m

Reset Cost Base for Growth and Efficiency

• Commenced broad review of business and programs
• Simplify business structure and operations
• Focus on driving meaningful growth and improved earnings over time
• Identified areas to reduce annualised costs at the corporate / business units
• Expansion of our operating footprint along East Coast of Australia on specific markets
• Potential savings will materialise FY24

Initiatives underpin future EBITDA	Footprint	•Refocus on PI and CA market share
		•Reset total cost structure
•Commenced broad review of business and programs		•Improved marketing strategies
•Simplify business structure and operations
•Focus on driving meaningful growth and improved earnings over time	Working Capital	•Targeting vendors with share risk rewardpartnerships
•Identified areas to reduce annualised costs at the corporate /business units		•Reduce discretionary expenditure
		•Identify procurement savings
•Expansion of our operating footprint along East Coast of Australia on
specific markets	Capex	•Reduce discretionary capex
•Potential savings will materialiseFY24

Sustainability and Community

Supporting Community

We actively support charitable and not-for-profit organisations that deliver meaningful contributions to communities and align with the Group's Purpose and Values. This includes:

• Continuation of our Shine A Light Foundation, supporting charitable organisations that promote prevention, rehabilitation, education and safety programs for people impacted by injury, injustice and adversity (current partner The Good Box)

Supporting Reconciliation in Australia

We launched our second Reconciliation Action Plan setting out actions to create a more inclusive business and build strong, respectful and mutually beneficial relationships

Personal Injury Update: Shine Continues to Grow Market Share