203.ASX IAW Nov 28 2013 AGM Presentation

Annual General Meeting
28 November 2013
The information contained in this document is not intended to be exhaustive and must be considered in
conjunction with all other publicly available information disclosed by the Company to the ASX from time to time.
Legal Services | On-line Legal Services | Corporate Advisory | Wealth Management
Chairman
Hon John Dawkins
AGM AGENDA
Introductions
AGM Resolutions
Managing Directors Address
Questions
AGM Presentation | 28 November 2013
NON-EXECUTIVE DIRECTORS
Hon. John Dawkins
Anne Tregonning
MANAGING DIRECTOR
Graeme Fowler
EXECUTIVE DIRECTOR
Dr Stephen Moss
CHIEF FINANCIAL OFFICER AND COMPANY SECRETARY
AUDITORS
Ernst & Young
The Ernst & Young Building
11 Mounts Bay Road
Perth WA 6000
Telephone: (08) 9429 2222
Facsimile: (08) 9429 2436
www.ey.com/au
Jean-Marie Rudd
AGM Resolutions
ITEM 1 - Financial Reports
The Financial Statements and Reports are incorporated in the

Directors Report
The vote on this resolution is advisory only and does not need to be
formally adopted by the meeting
Any questions can be addressed to the Managing Director at the end

of his presentation
ITEM 2 - Adopt the Remuneration Report
The Report is incorporated in the Directors Report of the Annual Report
The vote on this resolution is advisory only and does not bind the
Directors of the Company
Voted
For
% of all
securities
12,838,207
95.32
7.73
Against
320,462
2.38
0.19
Open - Usable
309,175
2.30
0.19
3,881,484
N/A
2.34
17,349,328
100.00
10.45
Excluded
Total
ITEM 3 - Re-election of Director - Ms Anne Tregonning
Voted
For
Against
Open - Usable
Total
% of all
securities
16,894,961
97.90
10.23
55,192
0.32
0.03
309,175
1.78
0.19
17,259,328
100.00
10.45
ITEM 4 - Re-election of Director - Dr Stephen Moss
Voted
For
% of all
securities
16,863,473
97.20
10.16
Against
176,680
1.02
0.11
Open - Usable
309,175
1.78
0.19
17,493,328
100.00
10.76
Total
ITEM 5 - Ratification of Share Issue - TC Corporate Pty Ltd
Voted
For
% of all
securities
15,795,634
93.60
9.52
Against
272,051
1.61
0.16
Open - Usable
809,175
4.79
0.49
28,024
N/A
0.02
444,444
N/A
0.27
17,349,328
100.00
10.46
Abstaining
Excluded
Total
Managing Director's Address
Graeme Fowler
AGENDA
Key Developments
Business Overview
Business Performance FY13
The Future and Outlook
Questions
KEY DEVELOPMENTS
Adoption of a national legal services brand

Melbourne | Perth | Sydney
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 earnings
growth 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
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 and

development
Access to new industries

and clients in the Australasian market
KEY DEVELOPMENTS
Merger of Perth law firms (announced November)
Civic Legal Perth and Rockwell Olivier (Perth) to merge as

Rockwell Olivier (Perth)
Complementary businesses
Services and products

Distribution and referral networks
Key Objectives
Includes Law Central (will retain brand)
Achieve clarity of market positioning

Position for revenue synergies and cost savings
Effective early 2014
BUSINESS OVERVIEW
ILH STRATEGY
Aggregate high quality legal and other professional services businesses

to 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 profitable
businesses
Work collaboratively with other ILH businesses
Complementary Businesses
Legal Services
On-line Legal Services
Corporate Advisory
Wealth Management
COMPLEMENTARY BUSINESSES
Legal Services
On-line
Legal Services
Corporate
Advisory
Wealth
Management
Corporate &
Commercial
Private Client
Legal documents
Information
service
Training and
education
services
Professional
Services
Legal
Engineering
Financial
Services
Environmental
Services
Overseas
Development
Australia
The Pacific
Singapore
Australia
New Zealand
Australia
International
Australia
Financial Planning
Life Insurance
Share Trading
Managed Funds
Small Business
Consulting
BUSINESS MODEL AND PHILOSOPHY
Acquisitions based on cultural fit like-minded people, driven,

entrepreneurial
Acquire good businesses with strong positions in their markets and

solid long term growth prospects
Common aspirations of growth, improvement and working together
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 performance

the action is at the edge
We expect every firm to work collaboratively as part of the Group
Corporate provide Group strategy, boundaries, risk management

and support
LEGAL SERVICES
ABOUT LEGAL SERVICES
National group in Australia
Top 40 Australian law firm by fee income

24 Principals and 80 other fee earners
Unique market position in the Pacific region
Pacific Legal Network

Skills and relationships in the region
Extensive network
Offices in PNG, Fiji

Affiliate relationships in more than 15 countries
Strategic collaboration in the region with US law firm Davis Wright Tremaine
Representative office in Singapore
Enhanced international capabilities
Strategic relationships with international legal associations
Client focus
Multi-nationals and public companies

Businesses with assets in the Pacific region
International businesses seeking to acquire assets in Australia and the Pacific
Growth businesses in small and medium enterprise sector
Higher net worth individuals and business owners
DEVELOPING A UNIQUE NETWORK

Davis Wright Tremaine (DWT)
Shanghai (DWT)
Anchorage
Bellevue
Los Angeles
New York
Portland
San Francisco
Seattle
Washington D.C.
Mumbai
Northern
Mariana
Islands
Federated
Palau
States of
Micronesia
Marshall Islands
Singapore
East Timor
Papua New
Guinea
Solomon Islands
Kiribati
Samoa
Vanuatu
Fiji
New
Caledonia
Member Firms
American French
Samoa
Polynesia
Tonga
Cook
Island
s
Visiting Offices
Affiliate relationships
Representative offices
Collaboration
PLN / Davis Wright Tremaine
Perth
Sydney
Melbourne
25
New Zealand
SERVICES AND SPECIALIST INDUSTRY SECTORS
Services
Corporate and Commercial
Corporate Transactions and Advisory
Litigation and Dispute Resolution
Insolvency and Restructuring
Taxation
Employment and Industrial Relations

Private Client
Superannuation
Estate Planning
Family Law
Property Solutions
Trusts
Employment
Taxation
Specialist Industry Sectors
Construction and Infrastructure

Financial Services
Mining, Energy and Resources
Fast Moving Consumer Goods
Hospitality, Tourism and Gaming
Transport and Aviation
LEGAL SERVICES STRATEGY

Focused and co-ordinated national marketing, communications and business development
Continued evolution and refinement of the business model
AUSTRALIA
Corporate and
Commercial
Selective growth in
chosen services and
specialist industry
sectors
Private Client
Development of national
referrer relationships
and niche service
offerings
Acquisitions
Favour organic growth
and business
improvement
Business Model
Perth merger
Cost synergies
INTERNATIONAL
Melbourne | Perth |
Sydney
Pacific Region
Development of local
offices including PNG
and Fiji
Singapore
Continued
development of a
capability in line with
client needs and
opportunities
ASEAN
Developing
opportunities
LAW CENTRAL
LAW CENTRAL
Internet based customised legal documents, information service, and

training and education
Targets accountants and financial planners who can create legal documents
on-line using document templates that can be customised for their clients
Provides more than 100 legal documents including Superannuation Fund Deeds, Trust
Deeds, 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 require
additional customisation and advice
LAW CENTRAL STRATEGY
Integrated marketing, communications and business development strategy

as part of Rockwell Olivier
FY14
Grow Australian market
share
Cornerstone client
relationships
Database marketing
Internet optimisation
New revenue streams
New Zealand entry
On-line
Legal
Services
FY15+
Acquisitions
New jurisdictions
CORPORATE ADVISORY
CORPORATE ADVISORY
Positioned to take advantage of the fast growing international

professional services sector
Largely fragmented
Offers consulting opportunities in strategic advice and consolidation
Clients include large and medium size Australian and international

professional services businesses including
Legal
Engineering
Financial services
Environmental services
Overseas development assistance sector
Provides advice in mergers and acquisitions, business strategy and

capital 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
WEALTH MANAGEMENT
Acquisition of two wealth management businesses

Growth in FUA
460
440
Capricorn - Rockhampton, Brisbane, Sydney
Pentad - Melbourne
Recurring revenue
Funds Under Advice
30/6/13
$3.4m p.a.
FUA $m
Key Metrics Combined Business
420
400
380
$447m
360
In-house Financial Advisers

Rockhampton and Melbourne
External Authorised Reps

Brisbane, Sydney, Melbourne
11
340
FY14 focus - Pentad integration with Capricorn
320
2010
2011
Expected to realise significant revenue and expense synergies into

FY14 and FY15
2012
2013
WEALTH MANAGEMENT - CLIENTS AND SERVICES

Clients
Senior executives and professionals, business owners and high net worth individuals in
the fast growing retirees sector
Extensive range of financial services
Fee for service advice
Retirement and pre-retirement planning, superannuation, investments, self-managed

superannuation, wealth protection and personal risk advice, share trading services and
estate 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 clients

exposure to a range of assets
BUSINESS PERFORMANCE
CORPORATE SNAPSHOT
Market
Shares on Issue
Share Price
25 November
2013
165m
Internal 40%
8 cents
Market Capitalisation
External 60%
13m
P/E @ 2013 EPS

Dividend Yield @ 2013
Shareholder Profile
8x
7.5%
Investment
FY13
Shareholders Equity 30/06/13
$19.96m
Operating Revenue
$32.4m
Net Profit after Tax
$1.02m
Earnings Per Share
0.94 cps
Full Year Dividends

(Fully Franked)
0.60 cps
Shareholders - 945
Top 20 - 48%
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%
790
556
42%
1,021
1,116
(9%)
Statutory EPS
0.94 cents
1.10 cents
(14%)
Dividend (Fully Franked)

Interim
Final
Total
0.20 cents
0.40 cents
0.60 cents
0.00 cents
0.80 cents
0.80 cents
Underlying Profit (from ordinary activities)

Statutory Profit (after fair value adjustments)
THE FUTURE AND OUTLOOK
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
Complementary business strategy
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
Addition of Wealth Management and Corporate Advisory
High quality businesses with strong growth prospects
Additional growth engines, recurring revenue, diversification
Synergistic with existing legal businesses referral opportunities
Continuing evolution and refinement of business model
Perth merger
Initiatives to drive cost savings
OUTLOOK
1H14
Very weak business conditions in WA impacting first half revenue and

earnings
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, shareholder
meeting
Corporate Advisory workflow is strong
Success fee pipeline +$2m
Timing uncertain - no completions anticipated in first half
Accounting treatment - bring revenue to account when completed rather than as work
in progress; costs to account as incurred
QUESTIONS
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 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 circumstances
which could cause actual results to differ significantly from the results expressed or implied in these forward
looking statements.

203.ASX IAW Nov 28 2013 AGM Presentation

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

203.ASX IAW Nov 28 2013 AGM Presentation

Uploaded by

Copyright:

Available Formats

Annual General Meeting

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

Hon John Dawkins

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

Managing Directors Address

AGM Presentation | 28 November 2013

Hon. John Dawkins

AGM Presentation | 28 November 2013

AGM Presentation | 28 November 2013

AGM Presentation | 28 November 2013

CHIEF FINANCIAL OFFICER AND COMPANY SECRETARY

AGM Presentation | 28 November 2013

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

ITEM 1 - Financial Reports

The Financial Statements and Reports are incorporated in the

Any questions can be addressed to the Managing Director at the end

AGM Presentation | 28 November 2013

ITEM 2 - Adopt the Remuneration Report

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

AGM Presentation | 28 November 2013

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

AGM Presentation | 28 November 2013

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

AGM Presentation | 28 November 2013

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

AGM Presentation | 28 November 2013

Managing Director's Address

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

Business Performance FY13

The Future and Outlook

AGM Presentation | 28 November 2013

Adoption of a national legal services brand

Continued expansion of legal services expertise

Melbourne - Mergers and Acquisitions; Gaming and Wagering; Property

Expansion into Wealth Management and Corporate Advisory

Consistent with the Boards objectives of increasing revenues, profitability and

In addition to legal services, develop a complementary business strategy

Strong businesses with significant growth potential

AGM Presentation | 28 November 2013

WEALTH MANAGEMENT AND CORPORATE ADVISORY

Effective 1 September 2013

Annual revenues of more than $5.8m

High quality businesses with strong growth prospects

Additional platforms for further growth and

Access to new industries

AGM Presentation | 28 November 2013

Civic Legal Perth and Rockwell Olivier (Perth) to merge as

Services and products

Includes Law Central (will retain brand)

Achieve clarity of market positioning

Effective early 2014

AGM Presentation | 28 November 2013

AGM Presentation | 28 November 2013

Aggregate high quality legal and other professional services businesses

Australia, the Pacific region, South East Asia, Internationally

A limited number of member firms

Work collaboratively with other ILH businesses

AGM Presentation | 28 November 2013

Melbourne | Perth | Sydney

AGM Presentation | 28 November 2013

BUSINESS MODEL AND PHILOSOPHY

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

Acquire good businesses with strong positions in their markets and

Common aspirations of growth, improvement and working together