203.asx iaw nov 28 2013 agm presentation

8/9/2019 203.ASX IAW Nov 28 2013 AGM Presentation

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Legal Services | On-line Legal Services | Corporate Advisory | Wealth Management

The information contained in this document is not intended to be exhaustive and must be considered inconjunction with all other publicly available information disclosed by the Company to the ASX from time to time.

Annual General Meeting

28 November 2013


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Chairman

Hon John Dawkins


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AGM Presentation |28 November 2013

Introductions

AGM Resolutions

Managing Directors Address

Questions

AGM AGENDA


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Hon. John Dawkins Anne Tregonning

NON-EXECUTIVE DIRECTORS


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MANAGING DIRECTOR

Graeme Fowler


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EXECUTIVE DIRECTOR

Dr Stephen Moss


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Jean-Marie Rudd

AUDITORS

Ernst & Young

The Ernst & Young Building11 Mounts Bay RoadPerth WA 6000

Telephone: (08) 9429 2222Facsimile: (08) 9429 2436

www.ey.com/au

CHIEF FINANCIAL OFFICER AND COMPANY SECRETARY


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AGM Resolutions


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The Financial Statements and Reports are incorporated in theDirectorsReport

The vote on this resolution is advisory only and does not need to beformally adopted by the meeting

Any questions can be addressed to the Managing Director at the endof his presentation

ITEM 1 - Financial Reports


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The Report is incorporated in the Directors Report of the Annual Report

The vote on this resolution is advisory only and does not bind theDirectors of the Company

ITEM 2 - Adopt the Remuneration Report

Voted

%

% of allsecurities

For 12,838,207 95.32 7.73

Against

320,462 2.38 0.19

Open - Usable 309,175 2.30 0.19

Excluded 3,881,484 N/A 2.34

Total 17,349,328 100.00 10.45


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ITEM 3 - Re-election of Director - Ms Anne Tregonning

Voted %% of all

securities

For 16,894,961 97.90 10.23

Against 55,192 0.32 0.03

Open - Usable

309,175 1.78 0.19

Total 17,259,328 100.00 10.45


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ITEM 4 - Re-election of Director - Dr Stephen Moss

Voted %% of all

securities

For 16,863,473 97.20 10.16

Against 176,680 1.02 0.11

Open - Usable

309,175 1.78 0.19

Total 17,493,328 100.00 10.76


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ITEM 5 - Ratification of Share Issue - TC Corporate Pty Ltd

Voted %% of all

securities

For 15,795,634 93.60 9.52

Against 272,051 1.61 0.16

Open - Usable

809,175 4.79 0.49

Abstaining 28,024 N/A 0.02

Excluded 444,444 N/A 0.27

Total 17,349,328 100.00 10.46


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Managing Director s Address

Graeme Fowler


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Key Developments

Business Overview

Business Performance FY13

The Future and Outlook

Questions

AGENDA


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KEY DEVELOPMENTS

Melbourne | Perth | Sydney

Adoption of a national legal services brand

Continued expansion of legal services expertise Melbourne - Mergers and Acquisitions; Gaming and Wagering; Property

Perth - Workplace Relations; Taxation

Sydney - Litigation and Dispute Resolution; PNG specialist; Fiji specialist

New affiliate relationships in the Solomon Islands and East Timor

Expansion into Wealth Management and Corporate Advisory

Consistent with the Boards objectives of increasing revenues, profitability and

market capitalisation; diversifying earnings; and achieving more consistent earningsgrowth and cash flows

In addition to legal services, develop a complementary business strategy

Strong businesses with significant growth potential Recurring revenues

Scalable

Synergistic with legal businesses


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WEALTH MANAGEMENT AND CORPORATE ADVISORY

Acquisition of Capricorn, Pentad and Eaton

Effective 1 September 2013

Annual revenues of more than $5.8m

High quality businesses with strong growth prospects

Additional platforms for further growth anddevelopment

Access to new industriesand clients in the Australasian market


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BUSINESS OVERVIEW


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ILH STRATEGY

Aggregate high quality legal and other professional services businessesto service a network of clients

Australia, the Pacific region, South East Asia, Internationally

A limited number of member firms

Support growth, development and improvement into significant and highly profitablebusinesses

Work collaboratively with other ILH businesses

Complementary Businesses

Legal Services

On-line Legal Services

Corporate Advisory

Wealth Management


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BUSINESS MODEL AND PHILOSOPHY

Acquisitions based on cultural fit like-minded people, driven,entrepreneurial

Common aspirations of growth, improvement and working together

Acquire good businesses with strong positions in their markets andsolid long term growth prospects

Successful, profitable and established

Freedom within boundaries Firms continue ownership of the businesses

Firms continue to develop strategy and manage the business

We expect every firm to take responsibility for growth and performancethe action is at the edge

We expect every firm to work collaboratively as part of the Group

Corporate provide Group strategy, boundaries, risk managementand support


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LEGAL SERVICES


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DEVELOPING A UNIQUE NETWORK

25

Mumbai

Singapore

Northern

Mariana

IslandsPalau

FederatedStates ofMicronesia

Solomon Islands

Vanuatu

NewCaledonia Tonga

CookIslands

FrenchPolynesia

AmericanSamoa

Samoa

Marshall Islands

Papua New

GuineaEast Timor

Perth

Melbourne

Sydney

New Zealand

Kiribati

Davis Wright Tremaine (DWT)

Anchorage

Bellevue

Los Angeles

New York

Portland

San Francisco

Seattle

Washington D.C.

Member Firms

Visiting Offices

Affiliate relationships

Representative offices

Collaboration

PLN / Davis Wright Tremaine

Shanghai (DWT)

Fiji


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SERVICES AND SPECIALIST INDUSTRY SECTORS

Services Specialist Industry SectorsCorporate and Commercial

Corporate Transactions and Advisory

Litigation and Dispute Resolution

Insolvency and Restructuring

Taxation

Employment and Industrial Relations

Construction and Infrastructure

Financial Services

Mining, Energy and Resources

Fast Moving Consumer Goods

Hospitality, Tourism and Gaming

Transport and AviationPrivate Client

Superannuation

Estate Planning

Family Law

Property Solutions

Trusts Employment

Taxation


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LEGAL SERVICES STRATEGY

Focused and co-ordinated national marketing, communications and business developmentContinued evolution and refinement of the business model

AUSTRALIACorporate and

Commercia l

Selective growth inchosen services andspecialist industry

sectorsPrivate Client Development of national

referrer relationshipsand niche serviceofferings

Acquis i t ions

Favour organic growthand businessimprovement

Bus iness Model

Perth merger Cost synergies

INTERNATIONALPaci f ic Region

Development of localoffices including PNGand Fiji

Singapore

Continueddevelopment of acapability in line withclient needs and

opportunitiesASEAN

Developingopportunities

Melbourne | Perth |Sydney


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LAW CENTRAL


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LAW CENTRAL

Internet based customised legal documents, information service, andtraining and education

Targets accountants and financial planners who can create legal documentson-line using document templates that can be customised for their clients

Provides more than 100 legal documents including Superannuation Fund Deeds, TrustDeeds, Employment Contracts and Shelf Companies

Earns revenue based on the selling of these legal documents, from subscriptions to

the information service, and training and education services such as webinars

Cross pollination with ILH legal firms

ILH firms receive income from the development, maintenance and sale of documents

ILH firms receive fee income from referral work where Law Central clients requireadditional customisation and advice


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LAW CENTRAL STRATEGY

s

FY14Grow Au stra l ian market

share Cornerstone client

relationships Database marketing Internet optimisation New revenue streams

New Zealand entry

FY15+ Acquisitions New jurisdictions

Integrated marketing, communications and business development strategyas part of Rockwell Olivier

On-lineLegal

Services

CORPORATE ADVISORY


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CORPORATE ADVISORY

CORPORATE ADVISORY


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CORPORATE ADVISORY

Positioned to take advantage of the fast growing internationalprofessional services sector

Largely fragmented Offers consulting opportunities in strategic advice and consolidation

Clients include large and medium size Australian and internationalprofessional services businesses including

Legal

Engineering Financial services

Environmental services

Overseas development assistance sector

Provides advice in mergers and acquisitions, business strategy andcapital raisings

Offices in Sydney, London and Singapore

Strong referral synergies with ILH legal businesses

FY14 focus

Expansion of depth and breadth of team, services and client base

WEALTH MANAGEMENT


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WEALTH MANAGEMENT


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WEALTH MANAGEMENT CLIENTS AND SERVICES


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WEALTH MANAGEMENT - CLIENTS AND SERVICES

Clients

Senior executives and professionals, business owners and high net worth individuals inthe fast growing retirees sector

Extensive range of financial services

Fee for service advice

Retirement and pre-retirement planning, superannuation, investments, self-managedsuperannuation, wealth protection and personal risk advice, share trading services andestate planning

Small business consulting

Proprietary Administration Platform

Opportunity for enhanced business margin and efficient management of client portfolios

under managed discretionary account arrangements

Funds Management

Capricorn Diversified Investment Fund, which provides financial planning clientsexposure to a range of assets

BUSINESS PERFORMANCE


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BUSINESS PERFORMANCE

CORPORATE SNAPSHOT


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CORPORATE SNAPSHOT

Market25 November

2013

Shares on Issue 165m

Share Price 8 cents

Market Capitalisation 13m

P/E @ 2013 EPS 8x

Dividend Yield @ 2013 7.5%

Internal 40%

External 60%

Shareholders - 945

Top 20 - 48%

Investment FY13

Shareholders Equity 30/06/13 $19.96m

Operating Revenue $32.4m

Net Profit after Tax $1.02mEarnings Per Share 0.94 cps

Full Year Dividends(Fully Franked)

0.60 cps

Shareholder Profile

FINANCIAL ANALYSIS FY13


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FINANCIAL ANALYSIS - FY13

FY13$000

FY12$000

%Change

Total Revenue (weak business conditions) 31,719 31,690 0%

Total Expenses (well contained against flat revenue) 30,979 30,988 0%

Contribution from Member Firms 3,475 3,198 9%

Statutory EBITDA 2,463 2,299 7%

Underlying Profit (from ordinary activities) 790 556 42%

Statutory Profit (after fair value adjustments) 1,021 1,116 (9%)

Statutory EPS 0.94 cents 1.10 cents (14%)

Dividend (Fully Franked) Interim Final Total

0.20 cents0.40 cents0.60 cents

0.00 cents0.80 cents0.80 cents


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GOAL CONSISTENT PROFIT GROWTH


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GOAL - CONSISTENT PROFIT GROWTH

Has not been achieved

Organic revenue growth has been challenging

Continuing environment of weak business confidence and slow growth

Responses so far

National branding and marketing strategy for ILH legal firms

Previously operated with multiple brands, marketing strategies, websites

Drive organic growth through a consistent and co-ordinated national client strategy Cost synergies from the streamlining of brands, websites, stationery and marketing

Complementary business strategy

Addition of Wealth Management and Corporate Advisory

High quality businesses with strong growth prospects

Additional growth engines, recurring revenue, diversification Synergistic with existing legal businessesreferral opportunities

Continuing evolution and refinement of business model

Perth merger

Initiatives to drive cost savings

OUTLOOK


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OUTLOOK

1H14

Very weak business conditions in WA impacting first half revenue andearnings

New acquisitions (Capricorn, Eaton and Pentad) completed 1 September

One-off acquisition costs to be expensed under accounting standards of $550k

Financial and legal due diligence, regulators (ASX), legal documentation, shareholdermeeting

Corporate Advisory workflow is strong

Success fee pipeline +$2m

Accounting treatment - bring revenue to account when completed rather than as workin progress; costs to account as incurred

Timing uncertain - no completions anticipated in first half

QUESTIONS


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QUESTIONS

DISCLAIMER


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DISCLAIMER

This presentation has been prepared by ILH Group Limited (IAW). The information in this presentation is current

as at November 2013.

Information in this presentation should not be considered advice and does not take into account the investmentobjectives, financial situation and particular needs of an investor. Before making an investment in IAW, anyinvestor should consider whether such an investment is appropriate to their needs, objectives andcircumstances and consult with an investment adviser if necessary. Past performance is not a reliable indicationof future performance.

IAW has prepared this presentation based on information available to it. No representation or warranty, expressor implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions andconclusions contained in this presentation. To the maximum extent permitted by law, none of IAW, its directors,employees or agents, nor any person accepts any liability, including, without limitation, any liability arising fromfault or negligence on the part of any of them or any other person, for any loss arising from the use of thispresentation or its contents or otherwise arising in connection with it.

This presentation may contain forward looking statements that are subject to a range of risk factors anduncertainties. Whilst the statements are considered to be based on reasonable assumptions, the statementsthemselves and the assumptions upon which they are based may be affected by a range of circumstanceswhich could cause actual results to differ significantly from the results expressed or implied in these forwardlooking statements.

203.asx iaw nov 28 2013 agm presentation

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