172.ASX IAW Nov 29 2012 18.57 AGM Presentation

8/9/2019 172.ASX IAW Nov 29 2012 18.57 AGM Presentation

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AGM Agenda

Introductions

Key Strategic Developments

AGM Resolutions

Managing Directors Address

Questions


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Non-Executive Directors

Hon. John Dawkins Anne Tregonning


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Managing Director

Graeme Fowler


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Chief Financial Officer and Company Secretary

Jean-Marie Rudd

AUDITORS

Ernst & Young

The Ernst & Young Building

11 Mounts Bay RoadPerth WA 6000

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

www.ey.com/au


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Key Strategic Developments

Addition of a Melbourne based member firmRockwell Bates

Member firms in the key Australian locations of Sydney, Melbourne and Perth

Acquisition of PLN Lawyers effective 1 August 2011

Continued expansion of the Groups network of member firms and affiliates

Significant legal services distribution network across Australia and the Asia/Pacific region

Product enhancements and re-launch of the Law Central business

Re-financing of banking facilities on more favourable terms

Increased funding limit to support future growth

Combining of 3 member firms under national brand Rockwell Olivier

Talbot Olivier, Argyle Lawyers and Rockwell Bates


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AGM Resolutions


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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 2Adopt the Remuneration Report

Voted %% of all

securities

For 10,550,297 54.96 9.58Against 505,471 2.63 0.46Open - Usable 8,143,135 42.41 7.39

Open - Conditional

0

0.00

0.00

Open - Unusable 0 N/A 0.00Abstaining 322,504 N/A 0.29Excluded 3,610,290 N/A 3.28Total 23,131,697 100.00 21.00


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Item 3Re-election of DirectorHon. John Dawkins

Voted %% of all

securities

For 14,737,992 63.86 13.38

Against

199,570

0.86

0.18

Open - Usable 8,143,135 35.28 7.39Open - Conditional 0 0.00 0.00Open - Unusable 0 N/A 0.00Abstaining

51,000 N/A 0.05

Excluded 0 N/A 0.00Total

23,131,697 100.00 21.00


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Withdrawn by the Board prior to the commencement of the meeting

Item 4Share Consolidation


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ANNUAL GENERAL MEETING29 NOVEMBER 2012

Managing Director's AddressGraeme Fowler


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Strategyaggregation in the legal services industry

Acquire legal services businesses Growth (organic and acquisition)

Improved business performance

Group revenue and cost synergies through collaboration (working together)

Develop a network of member firms, affiliates, and strategic relationships Australia

International

Industry dynamics creating an opportunity

2 divisions

Legal Services

Law Central

ABOUT ILH


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A growing network of member firms, affiliates and strategic relationships

Top 40 Australian law firm by fee income

Over 160 employees including 26 Principals and 80 other fee earners

Member firms based in Sydney, Perth and Melbourne

Visiting offices in Brisbane, Fiji and Vanuatu

Representative officeSingapore/Malaysia

Affiliate relationships in more than 15 countries across the Asia/Pacific

Enhanced international capabilities

Strategic relationships with international legal associationsIAG and ALFA

Strategic collaboration in the Pacific region with US law firm Davis Wright Tremaine

ABOUT LEGAL SERVICES


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Limited number of member firms

Cultural fit like-minded people, driven and entrepreneurial Common aspirations of growth, improvement and working together

Good businesses with strong positions in their markets and strong growth prospects

Operational focus

Network development through acquisition(and more recently by affiliation and strategic relationship)

Support growth and development of member firms Individual firm growth strategies (organic, acquisition, service line development)

Build scale businesses with competitive advantage in their markets

Improved business performance of member firms

Leadership and management Business improvementbest

practices, benchmarking,

knowledge sharing

Cost advantage through national

procurement arrangements


SCALE

Provides competitive advantage

Allows investment in dedicated

management, training, IT, facilities,

new services


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Key Philosophies

Freedom within boundaries Firms continue ownership of the businesses

Firms continue to develop strategy and manage the business

Focus on revenue growth and margin improvement

Corporate provide Group strategy, boundaries, risk management and support

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

Build client relationships (trusted adviser) not transactional

Performance based remuneration



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Solid result in challenging business conditions

Significant progress in delivery of strategic plan

BUSINESS PERFORMANCEOVERVIEW


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Addition of a Melbourne based member firmRockwell Bates Member firms in the key Australian locations of Sydney, Melbourne and Perth

Acquisition of PLN Lawyers effective 1 August 2011

The enhancement of legal services Mergers and Acquisitions, Private Equity Transactions, Structured Debt and Equity

Finance, Distressed Assets and Insolvency

Enhancement of the Groups commercial and corporate legal services in

Sydney and Melbourne Continued expansion of the Groups network of member firms and

affiliates Significant legal services distribution network across Australia and the Asia/

Pacific region

Product enhancements and re-launch of the Law Central business The introduction of an alternate acquisition model

Provides further opportunity to invest in high quality and fast growing businesses

Re-financing of banking facilities on more favourable terms Increased funding limit to support future growth

KEY STRATEGIC DEVELOPMENTS

Al l of which posi t ion ILH for cont inued growth

KEY STRATEGIC DEVELOPMENTS


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Revenue of $32.4m - 14% increase

Growth was a combination of some organic growth and in particularacquisition growth

Now positioned as a top 40 Australian law firm by fee income

FINANCIAL RESULTS


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REVENUE GROWTH

6.27.6

9.3

11.6 12.313.6

14.9

16.915.7

16.9

23.9

28.5

32.4

0

5

10

15

20

25

30

35

2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 FY09 FY10 FY11 FY12$m

14%

Growth

2011/12

$m

2010/11

$m

2009/10

$m

2008/09

$m

Operating Revenue 32.41 28.48 23.87 16.90


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Net profit after tax of $1.12m13% decrease

Earnings per share for the year of 1.10 cents per share22% decrease

Exceptionally difficult trading conditions in May and June affected the

performance of all member firms and substantially accounted for the

reduced profit result

The PLN Lawyers acquisition (effective 1 August 2011) performed toexpectations

Final dividend 0.8 cents (fully franked)

FINANCIAL RESULTS (continued)


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PROFIT and EARNINGS PER SHARE

2011/12$m

2010/11$m

2009/10$m

Net Profit after Tax 1.12 1.29 0.85

Earnings per Share 1.10 cents 1.41 cents 1.18 cents

0.59

0.85

1.29

1.12

0.89

1.18

1.41

1.10

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

FY09 FY10 FY11 FY12

NPA T E PS

Profitable each year

since commencement


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CORPORATE SNAPSHOTASX CODE IAW

Market 23/11/12

Shares on Issue 110,167,612

Share Price 10 cents

Market Capitalisation $11.02m

P/E @ 2011/12 EPS 9.1x

Dividend Yield @ 2011/12 8%

Shareholders839

Top 2054.98%

2 substantial shareholders >5%

Managing Director4.9%

Internal

Board, Principals, Staff Vendor Principals2% to 4% each

Shareholder Profile

Internal 45.8%

External 54.2%

Investment 30/6/12

Shareholders Equity $19.1m

Earnings Per Share 2011/12 1.10 cps

Full Year Dividends 2011/12(fully franked) 0.80 cps


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National BrandLegal Services

Argyle Lawyers (Sydney)Rockwell Bates (Melbourne)

Talbot Olivier (Perth)

Effective March 2013

A national law firm that will become a premium brand

and a leading law firm in our chosen markets.


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As an aggregation, the Legal Services division has until now operated with multiple brands,

marketing strategies, websites, and with essentially individual firm business strategies.

Whilst this has served well to date, the ILH strategy anticipated achieving a more effective

business model once the timing was right.

In this regard, Rockwell Olivier is a significant strategic development.

The Company anticipates significant synergies being available under this strategy, including

revenue growth opportunities resulting from a national approach and a consistent client and

marketing strategy, as well as cost synergies from the streamlining of brands, websites, and

marketing.

National BrandWhat does it mean?

LAW CENTRAL


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LAW CENTRAL

l l


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Internet based customised legal documents and information service

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

Provides approximately 100 legal documents including Superannuation Fund Deeds,Trust Deeds, Employment Contracts and Shelf Companies

Earns revenue based on the selling of these legal documents and from subscriptionsto the information service

The business operates with minimal variable costs per document sale, and as suchprovides a relatively high margin

Document income (development, promotion, maintenance) and referral income

to ILH legal firms

Strategy is to grow and develop the business organically through the

expansion of on-line services in Australia and internationally, and potentiallyby acquisition

The current strategic and operational focus is growth and developmentof the business in Australia

www.lawcentral.com.au

l t l


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The Company is investing in the development of the Law Central IT platform

In 2011/12 this included product enhancements and the new website

The existing IT is old technology and a new IT platform is under construction usingan Indian based developer. Fixed price project cost is $225,000

Expect 80% completion by March 2013, remainder by May 2013. Project is onschedule. 9 monthly payments of $25,000 with the last 2 payments at completion.

The investment will be amortised over 3 years.

The new platform will improve time to market for new documents anddocument changes, allow additional product features and well as support future

growth of the business


l t l


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The business was re-launched in September 2012 with enhanced documents,

new features, a new website and with a fresh approach to marketing Former Australian cricket captain Steve Waugh engaged in a promotional capacity

In October 2012, the business employed an experienced business development

and marketing professional in the accountant and financial planner segment

A program has been developed to target and develop relationships with key currentand potential clients and we believe the business is achieving significant momentumwhich will convert to revenue and earnings growth in the second half of 2012/13 and

beyond.

Significant recent new client wins

Reviewing the opportunity for new revenues streams forLaw Central, including third party product promotion and advertising on

the Law Central website


l t l


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OUTLOOK PRIORITIES FOR LEGAL SERVICES


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Continuing to work with existing firms towards growth and development

Organic and acquisition revenue growth and business operational improvement

Continuing to develop the Groups legal services network and range of services

Developing the distribution network across Australia and the Asia/Pacific region, aswell as developing and enhancing capabilities in key legal services

Transition to consistent branding and strategyRockwell Olivier Collaboration across the Group to achieve revenue and cost synergies

Fee sharing arrangements

OUTLOOKPRIORITIES FOR LEGAL SERVICES

OUTLOOK


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Making progress

Cautious in continuing challenging business conditions

Strong growth potential through positioning in growth markets and

segments in Australia and the Asia/Pacific region

Earnings momentum into 2013/14 through move to more consistent

branding

Expect growth in Law Central business revenues over the medium term as

a result of business initiatives

Investment for future growthtraining and IT

Pipeline of acquisition opportunities

Building a strong and vibrant legal business and confident that continued

execution of the Companys growth plans and initiatives will add long

term shareholder value

OUTLOOK

ILH STRUCTURE & STRATEGY


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ILH STRUCTURE & STRATEGY

QUESTIONS


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QUESTIONS

DISCLAIMER


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DISCLAIMER

This presentation has been prepared by Integrated Legal Holdings Limited (IAW). The information in this

presentation is current as at November 2012.

This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation

with respect to any security. Information in this presentation should not be considered advice and does not

take into account the investment objectives, financial situation and particular needs of an investor. Before

making an investment in IAW, any investor should consider whether such an investment is appropriate to

their needs, objectives and circumstances and consult with an investment adviser if necessary. Past

performance is not a reliable indication of future performance.

IAW has prepared this presentation based on information available to it. No representation or warranty,

express or implied, is made as to the fairness, accuracy, completeness or correctness of the information,

opinions and conclusions 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 from fault or negligence on the part of any of them or any other person, for any loss arising

from the use of this presentation 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 and

uncertainties. Whilst the statements are considered to be based on reasonable assumptions, the statements

themselves 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 forward

looking statements.

172.ASX IAW Nov 29 2012 18.57 AGM Presentation

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Transcript of 172.ASX IAW Nov 29 2012 18.57 AGM Presentation