Litigation Capital Mgmt : 2021 Full Year Results Presentation

Full year results Presentation 2021

Litigation Capital Management Limited ACN 608 667 509

Sustained growth & strong financials in disrupted market conditions

H	i g h l i g h t s - F Y 2 1
	Adjusted profit	Boost in investment performance increasing adjusted net profit by 47%
	before tax1
	Applications	Applications across all regions increased by 10% despite disruption caused by COVID-19
	Assets under	Increased total investment commitments to $336m by 30 June
	management
	Capital invested	YoY increase demonstrates ability to put capital to work. Total capital invested increased by 69%2
	Funds under	Fund I Committed 77% by September. Imminent first close on Fund II with target of US$300m
	Management
	Consistent	Maintaining our strong track record with 10-year cumulative IRR of 78% and cumulative ROIC of 153%,
	performance	inclusive of losses
	Capital structure	Increased flexibility with additional capital to facilitate growth of direct investments and fund investments

2 1 FY ended 30 June 2021 inclusive of third-party funds. Excluding third-party funds, adjusted profit before tax increased by 42% 2 FY ended 30 June 2021 inclusive of third-party funds. Excluding third-party funds, capital invested increased by 17%

Building scale

G r o w t h i n o p p o r t u n i t y	I n c r e a s e d i n v e s t m e n t
	Capital committed in year 1
Number of	$109m
applications
572	Capital invested2
	$88m

	Applications					Capital committed			Capital invested
FY21			FY21			109		FY21
			572
FY20			522	FY20				147	FY20			52
FY19		419			FY19		98		FY19		28

S u s t a i n e d g r o w t h

Total assets under management

$336m

AUM

88 FY21 336

FY20 250

FY19 138

3	1 Capital committed in year represents new commitments signed up
2 Capital invested into litigation investments during the year inclusive of third party funds

Maintaining performance through disciplined investment

• LCM has maintained its high investment return metrics whilst building scale
• Increased the return on invested capital
• Maintained internal rate of return over 10 years
• Continued the discipline in undertaking due diligence and risk management of applications
• Ten year performance metrics include all investments, inclusive of losses

10-year cumulative portfolio ROIC of

153%1

9-year ROIC 134%

10-year cumulative portfolio IRR of

78%1

9-year IRR 78%

Conversion of applications to investments

3%

FY20 3.5%

4	1 Over the last 10 years (FY12 to FY21, inclusive of losses)

Full year results highlights

- e x c l u s i v e o f t h i r d - p a r t y f u n d ( $ A )

			FY 2021		FY 2020	Change %
		Gross revenue from resolution of	$36.3m		$35.8m	1%
		investments1
		Gross profit	$26.1m		$21.7m	20%
		Adjusted profit before tax2	$15.8m		$11.1m	42%
		Statutory profit before tax2	$13.1m		$9.2m	41%
		Cash3	$35.5m		$24.9m	42%
		Investments at cost as at end of	$88.6m		$51.8m	71%
		financial period4
		Total capital invested5	$48.5m		$41.3m	17%

1 Gross revenue from the resolution of investments does not include performance fees 2 FY ended 30 June 2021 exclusive of third-party funds

3 At balance sheet date and exclusive of third-party funds - FY ending 30 June 2021 and exclusive of borrowings

5 4 At balance sheet date and represented as Contract Cost in the Statement of Financial Position exclusive of third-party interests 5 Capital invested into litigation investments during the year exclusive of third-party funds

Note: Accounts prepared on historical cost basis, LCM does not adopt fair value accounting

Gross Revenue from investments1

$36.3m

Increase in Statutory PBT2

41%

Increase in Adjusted PBT2

42%