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Withdrawn by the Board prior to the commencement of the meeting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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ANNUAL GENERAL MEETING29 NOVEMBER 2012
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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ANNUAL GENERAL MEETING29 NOVEMBER 2012
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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ANNUAL GENERAL MEETING29 NOVEMBER 2012
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
ABOUT LEGAL SERVICES
SCALE
Provides competitive advantage
Allows investment in dedicated
management, training, IT, facilities,
new services
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ANNUAL GENERAL MEETING29 NOVEMBER 2012
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
ABOUT LEGAL SERVICES
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ANNUAL GENERAL MEETING29 NOVEMBER 2012
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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ANNUAL GENERAL MEETING29 NOVEMBER 2012
Revenue of $32.4m - 14% increase
Growth was a combination of some organic growth and in particularacquisition growth
Now positioned as a top 40 Australian law firm by fee income
FINANCIAL RESULTS
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ANNUAL GENERAL MEETING29 NOVEMBER 2012
REVENUE GROWTH
6.27.6
9.3
11.6 12.313.6
14.9
16.915.7
16.9
23.9
28.5
32.4
0
5
10
15
20
25
30
35
2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 FY09 FY10 FY11 FY12$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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ANNUAL GENERAL MEETING29 NOVEMBER 2012
Net profit after tax of $1.12m13% decrease
Earnings per share for the year of 1.10 cents per share22% decrease
Exceptionally difficult trading conditions in May and June affected the
performance of all member firms and substantially accounted for the
reduced profit result
The PLN Lawyers acquisition (effective 1 August 2011) performed toexpectations
Final dividend 0.8 cents (fully franked)
FINANCIAL RESULTS (continued)
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ANNUAL GENERAL MEETING29 NOVEMBER 2012
PROFIT and EARNINGS PER SHARE
2011/12$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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ANNUAL GENERAL MEETING29 NOVEMBER 2012
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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ANNUAL GENERAL MEETING29 NOVEMBER 2012
LAW CENTRAL
l l
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ANNUAL GENERAL MEETING29 NOVEMBER 2012
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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ANNUAL GENERAL MEETING29 NOVEMBER 2012
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
www.lawcentral.com.au
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ANNUAL GENERAL MEETING29 NOVEMBER 2012
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
www.lawcentral.com.au
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ANNUAL GENERAL MEETING29 NOVEMBER 2012
www.lawcentral.com.au
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OUTLOOK PRIORITIES FOR LEGAL SERVICES
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ANNUAL GENERAL MEETING29 NOVEMBER 2012
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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ANNUAL GENERAL MEETING29 NOVEMBER 2012
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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ANNUAL GENERAL MEETING29 NOVEMBER 2012
ILH STRUCTURE & STRATEGY
QUESTIONS
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ANNUAL GENERAL MEETING29 NOVEMBER 2012
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.
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