SHINE JUSTICE LTD — Investor Presentation 2021

Aug 26, 2021

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27 August 2021

Shine Justice Ltd (SHJ) FY21 Results Presentation

Attached is Shine Justice Ltd’s full year results presentation for the financial year ended 30 June 2021.

Authorised for release by the Board

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Annette O’Hara Company Secretary Shine Justice Ltd

Tel: 07 3837 9448 aohara@shine.com.au

For more information

Simon Morrison, Managing Director & CEO - Shine Justice Ltd 07 3837 9435 Ravin Raj, Chief Financial Officer - Shine Justice Ltd 07 3006 6050

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Shine Justice Ltd

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Results

Investor Presentation August 2021

Simon Morrison MANAGING DIRECTOR & CEO

Ravin Raj CHIEF FINANCIAL OFFICER

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ABN 93 162 817 905

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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.

FY21 Results Presentation | 2

Shine Justice Ltd | ABN 93 162 817 905

Shine Justice – One Unifying Message

Personal Injury

New Practice Areas

Family Law

(motor vehicle, workplace, public liability, head trauma)

• Shine Lawyers

• Sciaccas (QLD)

• Stephen Browne (WA)

• Bradley Bayly (WA)

• Claimify

• Shine Lawyers

• Class actions

• Abuse law

• Superannuation and disability

• Dust diseases

• Professional and medical

• Best Wilson Buckley

• (QLD)

• Carr & Co (WA)

Loss Adjustment

  - Risk Worldwide (NZ)

  - My Insurance Claim (NZ)

• negligence

• Employment law

• Commercial litigation

Land, Energy & Resources

• Shine Lawyers

• Estate and Land litigation

• Emanate Legal Services (QLD)

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Shine Justice Ltd | ABN 93 162 817 905
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3

Agenda

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Shine Justice Ltd | ABN 93 162 817 905

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FY21
Highlights
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Simon Morrison Managing Director & CEO

FY21 Results Presentation | 5

Shine Justice Ltd | ABN 93 162 817 905

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Revenue NPAT

Key Financial Metrics

$193.65m $25.59m +5.80% +18.75%

Underlying EBITDA[1] GOCF[1,2] EBITDA $47.44m $54.65m $56.16m +11.57% +58.13% +9.79%

Final Dividend (unfranked) EPS (basic) 3.25c $14.75c +18.18% +18.95%

• 1 EBITDA and GOCF are not IFRS calculations which appear in the financial statements, and have not been audited. EBITDA results improved through adoption of AASB 16 Leases from 1 July 2018. Underlying EBITDA excludes the impact of AASB 16 Leases

• 2 Includes $20.9m (excluding GST) Mesh Class Action funds received in December 2020.

• Shine Justice Ltd | ABN 93 162 817 905

FY21 Results Presentation | 6

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FY21 Highlights

Strong market position and diversification strategy achieves solid earnings growth and delivery on guidance despite COVID-19 challenges

PI segment result reflects finalisation of reorganisation and rationalisation; Reset for growth in FY22

Diversification of services and geography continues to underpin sustainable growth strategy Growth in key operational metrics of client enquiries and leads

Mesh class action. Expected recovery of costs following High Court judgment during FY22

Assessment of Mesh class action group member claims expected to follow for a number of years

Robust class-action pipeline

Increased online offerings

Organic growth strategy commenced with new office in Adelaide

Shine Justice Ltd | ABN 93 162 817 905

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FY21 Financial Results

Ravin Raj Chief Financial Officer

FY21 Results Presentation | 8

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FY21 Financial Results: Detailed Profit & Loss

Revenue	193.65	183.03	↑10.62	↑5.80
NPAT	25.59	21.55	↑4.04	↑18.75
EBITDA1	56.16	51.15	↑5.01	↑9.79
Underlying EBITDA2	47.44	42.52	↑4.92	↑11.57
Employee Benefits Expense	100.78	92.11	↑8.67	↑9.41
Overheads	55.97	58.73	↓2.77	↓4.71

¹ EBITDA is not an IFRS calculation which appear in the financial statements, and has not been audited. 2 Excludes impact of AASB16 Leases

Shine Justice Ltd | ABN 93 162 817 905

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FY21 Financial Results: Financial Highlights

	FY21	FY20	Variance	Variance (%)
Earnings per share (cents)	14.75	12.40	↑2.35	↑18.95
Final dividend per share (cents)	3.25	2.75	↑0.50	↑18.18
Full year dividend per share (cents)	5.25	4.25	↑1.00	↑23.53

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• EPS growth reflects
growth in NPAT
• Final and full year
dividend payout ratio
increased as outlook for
business is strong
• Dividends unfranked
FY21 Results Presentation | 10
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FY21 Financial Results: Balance Sheet

AS AT ($’000)	30 June 21	30 June 20
Cash	55,992	32,812
Receivables	15,272	12,404
Work in progress	299,312	305,102
Unbilled disbursements	106,890	89,268
PP&E and other	12,596	11,237
Intangibles	48,578	48,949
Right of Use Assets	34,551	40,647
Total assets	573,191	540,419
Trade payables	18,568	16,020
Disbursement creditors	91,081	83,644
Borrowings	50,383	52,499
Lease liabilities	42,943	48,447
Deferred and current tax liabilities	103,039	91,864
Provisions and other	1,892	1,813
Employee liabilities	10,144	8,912
Total liabilities	318,050	303,199
Net assets	255,141	237,220

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• Cash on hand includes Mesh class
action funds received in December
2020
• WIP levels sustained even
disregarding receipt of partial Mesh
class action funds in December 2020
• Growth in Unbilled Disbursements and
Disbursement creditors relate mainly
to capitalisation of Mesh disbursement
interest
•
Right of Use Assets mainly property
leases
•
Drop in Borrowings reflects normal
amortisation
•
Lease liabilities relate to property
leases (Right of Use Assets above)
• Increase in Deferred tax liabilities
partially due to absorption of tax
losses in FY21
•
Increase in Employee liabilities
reflecting COVID-19 impact
FY21 Results Presentation | 11
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FY21 Financial Results: Gross Operating Cash Flow

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60
54.65
50
20.74
40
34.56
31.3
30
21.9
21.46
18.7 19.2
20
24.7
33.91
13.0
15.4
14
15.2
10
9.7
13.10
6.5 6.6
5.2
3.3 3.5
0
FY15 FY16 FY17 FY18 FY19 FY20 FY21
1H 2H * Includes Mesh Class Action cash of $20.91 million, net of GST.
GOCF $m
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FY21 Results Presentation | 12

Shine Justice Ltd | ABN 93 162 817 905

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Investing in Shine Justice & Operating Environment

Shine Justice Ltd | ABN 93 162 817 905

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Key Financial Highlights

A defensive and scalable business over 45 years

• Resilience

• •

• 1

• Performed strongly throughout

COVID-19 headwinds

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Revenue and EBITDA [1] Margin (A$m) EBITDA Margin
29.0%
28.0%
21.0% 26.6%
193.6
22.1%
183.0
179.4 177.9
165.0
FY17 FY18 FY19 FY20 FY21
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Revenue Composition (%)

• Diversifying revenue and mitigating risk remain a priority 2

• Consistent growth rate

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30% 31% 33%
44% 54%
70% 69% 67%
56% 46%
FY17 FY18 FY19 FY20 FY21
Personal Injury New Practice Area
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• Track record of paying increasing dividends

• 3

Source: Company filings

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Dividend per Share (cents per share) % of NPAT
36%
47% 34%
29%
22%
5.25
2.6 3.25 3.75 4.25
FY17 FY18 FY19 FY20 FY21
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1. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)

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Class Actions Initiatives & Update

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FY22
Strategic Priorities
and Outlook
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FY21 Results Presentation | 16

Shine Justice Ltd | ABN 93 162 817 905

Outlook FY22

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Well positioned to increase market share across our diversified services

Guidance

Increasing EBITDA growth in FY22 in the order of a low double digit percentage increase, subject to unforeseen COVID-19 impacts

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Appendices

FY21 Results Presentation | 18

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Our People and Shine Justice

Australia & New Zealand

• 10 business divisions across the Group

• 978 staff in Qld, NSW, Vic, WA, SA and NZ

• Long standing executive team

• Cultural alignment across Shine Justice

Learning & Development

• Long term investment approach in learning and capabilities

• Continuous learning and wellbeing initiatives during COVID-19 and Work

from Home

Social Equality & Justice

• Always standing up for the little guy and shining a light on injustice

• Historic decisions in State and Federal Courts

• Right Wrong is in our DNA

• A culture that is

natural, authentic, inclusive, effective and enthused

FY21 Results Presentation | 19

Shine Justice Ltd | ABN 93 162 817 905

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:

• Major partnership with LifeFlight Australia who are a highly reputable, not-for-profit organisation delivering emergency aeromedical care to seriously ill and injured patients across Queensland

• 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 Indigenous Literacy Foundation)

We ensure communities have access to the justice they deserve through

• bringing Shine’s specialist legal experts into regional towns across Australia so communities have no barriers to expert advice

• Delivering accredited legal education to health professionals and organisations that provide support service to the community

Supporting the Environment

We recognise our activities impact the environment

• We are taking steps to improve energy efficiency in our offices and opting for virtual meetings when possible to reduce business travel and encourage sustainability

• We leverage our legal expertise to support environmental issues and communities impacted

Supporting Reconciliation

in Australia

We launched our first

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

Shine Justice Ltd | ABN 93 162 817 905

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COVID-19 Update and Impact

Despite the ongoing challenges in the global economy, our business and core

fundamentals are more

• Provided opportunities to be adaptable and innovative

• Employees have returned to working in the office when possible and flexible work at home arrangements

• Health and safety protocols in place

• Little or no impact to revenue, cash conversion and new file openings

• Ongoing business and risk mitigation planning

• Prudent cash and expense management

resilient than ever.

• Safety work practices while meeting elevated levels of demand from new service offerings to deliver key strategic initiatives

• Continued safety response and focus on lead indicators

• Market has been resilient and supports broader recovery in FY22

• Reviewing cost savings across the business

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Shine Justice Ltd | ABN 93 162 817 905