203.asx iaw nov 28 2013 agm presentation
TRANSCRIPT
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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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Legal Services | On-line Legal Services | Corporate Advisory | Wealth Management
Chairman
Hon John Dawkins
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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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Legal Services | On-line Legal Services | Corporate Advisory | Wealth Management
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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Legal Services | On-line Legal Services | Corporate Advisory | Wealth Management
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.