Litigation Capital Mgmt : 2022 Half Year Results Presentation

Interim results presentation

Six months ended 31 December 2021

Litigation Capital Management Limited ACN 608 667 509

HY22 -	Highlights
	Funds	Fund I US$150m now fully committed inside the initial two-year period, notwithstanding disruption due to
	management	COVID. Commitments of Fund II has commenced
	Fund II	Final targeted raise of US$300m fund size is well progressed with final close expected in calendar H1
	Revenue	Gross revenue of A$19.3m includes the resolution of direct balance sheet investment
	Applications	Applications in H1 decreased by 26% to 196 compared with the same prior year period at 266, however, a
	further 89 applications received in the two-month period to end of February, demonstrates increased
		momentum and a return to more normal conditions
	Capital invested	Total capital invested decreased by 21%1 to A$31.5m compared with $40m for the same prior year period.
	Demonstrating our strategic shift from 100% direct investments to co-funding
	Management	Re-location of CEO to London and Board appointment of London based CFO now centralising Executive
	update	management team
	Cumulative IRR	LCM's performance resulting from completed investments across 10.5 years of performance inclusive of
	& ROIC	losses produced a cumulative IRR of 79% and cumulative ROIC of 162%

2	1 HY ended 31 December 2021 inclusive of third-party funds. Excluding third-party funds, capital invested decreased by 38% to $13.9m

Building scale

M e a s u r e s o f g r o w t h ( A $ )

M a i n t e n a n c e o f

i n v e s t m e n t s t a n d a r d s

I n c r e a s e i n A U M ( A $ )

Number of applications

196

Capital committed in year1

$25m

Capital invested2

$31.5m

10.5 year cumulative

IRR

79%

10.5 year cumulative

ROIC

162%

Total assets under management - 31 Dec

$343m

Total assets under management - 8 Mar4

$386m

• This financial period has experienced the most significant disruption due to covid. In each of the three regions in which LCM operates, its workforce was subject to the longest periods of lockdown and disruption of any time in the pandemic to date

 Very encouragingly the first

	Capital invested (A$)		Capital committed (A$)
			HY22
HY22		31.5		24.8					3
						HY21
HY21					39.7		19.6				47.0
						HY20
HY20			18.4			28.4
					HY19
HY19		12.8			31.1

							two and half months of the
	Applications (A$)				current financial period are
				showing much stronger
HY22				196
					numbers of new applications
HY21						266
HY20					253	and commitments
HY19		87

	1 Capital committed in year represents new commitments signed up. Exclusive of any commitments concluded, written off or adjusted
3	2 Capital invested into litigation projects during the year inclusive of third party funds
3 Capital committed in the prior period includes a large construction portfolio investment which was significantly scaled down due to increased risks associated with the matter and region

4 Excludes Fund I completed matter

Interim 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 $ )

			HY 2022	HY 2021	Change %
						Gross Revenue
		Gross revenue	$19.2m	$7.7m	149%
						$19.2m
		Gross profit	$13.8m	$5.0m	176%
		Adjusted profit/(loss) before tax1	$7.4m	($0.6m)
		Statutory profit/(loss) before tax1	$4.3m	($1.2m)
						Invested capital3
		Cash2	$30.3m	$5.8m	422%
		$97.2m
		Investments at cost as at end of	$97.2m	$71.4m	36%
		financial period3
		Total capital invested4	$13.9m	$22.3m	(38%)

	1 HY ended 31 December 2021 exclusive of third-party funds
4	2 At balance sheet date and exclusive of third party funds and gross of borrowings A$40m - HY ending 31 December 2021
3 At balance sheet date and represented as Contract Cost in the Statement of Financial Position exclusive of third-party interests
4 Capital invested into litigation projects during the period exclusive of third party funds

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

H Y 2 2 Balance sheet overview

- 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 $ )

Capital invested ($m)

	22.3
	18.4
12.8	13.9

HY19

HY20

HY21

HY22

Cash generation ($m)2

20.6

11.0		10.6
	9.2

100

80

60

40

20

0

Total equity ($m)

94.3

80.480.6

70.3

HY19

HY20

HY21

HY22

Cash as at period end ($m)

52.6

34.7

30.31

5.8

HY19

HY20

HY21

HY22

HY19

HY20

HY21

HY22

1 Cash balance gross of A$39m borrowings

5 2 Cash generation denotes cash received from the successful resolution of litigation projects during the period

Note: Accounts prepared on historical basis, LCM does not adopt fair value accounting. All amounts expressed in Australian dollars