IMF Bentham Limited Annual Report 2019

Westgem). Investments representing nine percent of our estimated portfolio value at 30 June 2018 were completed during this year. This is a lower figure than anticipated but is also a function of the exponential increase in the number of investments in recent years and the stage of our strategic plan implementation which is yet to mature into significant completions. The results are equally reflective of an industry-wide phenomenon. The legal industry is reporting slower resolution rates in a number of jurisdictions due to the increased complexity of disputes 2 and a propensity for legal decision makers to increase spending on litigation and protract negotiations and/or proceed Introduction This year our progress has been transformational and IMF Bentham is almost unrecognisable from the organisation it was four years ago. We are committed to our long-range strategy of diversification across our business and we accept the impact this has on our current International Financial Reporting Standards (IFRS) results. We anticipate our future IFRS results will reflect the investment made in our strategy when our investment process completes its full cycle and meaningful completions are achieved. We set in place an ambitious five-year strategic plan in July 2015 which involved redesigning the fundamentals of our business. This included diversifying our capital, Chairman’s and Managing Director’s Report FY19 Results Profit and Loss Our financial results this year continue to reflect that we have been implementing our transformational strategy to position our business for long-term performance. We have now largely concluded the transitional phase and expect to see more stabilised earnings moving forward. We reported a net loss in our P&L this year as income was impacted by litigation results and an investment in our costs in line with our geographic and Fund expansion. FY19 results were also impacted by delayed completions for a number of investments (including Wivenhoe and 1. Includes investments approved by the Investment Committee, funded and conditionally funded 2. The BTI Consulting Group, BTI Litigation Outlook 2019: Changes, Trends and Opportunities for Law Firms, p 7 geography and investments with the over-arching objective of de-risking our business and building an enterprise that is future-fit for a dynamic world. In FY19 we continued our achievements in each area and we are well ahead of our self-imposed schedule to become one of the world’s leading dispute resolution finance providers. We are delighted to report that during the year we significantly grew and diversified our Investment Portfolio, increased our Funds Under Management including launching new Funds, completed numerous capital management strategies and expanded our global footprint. These achievements are consistent with our accelerated approach to a risk-adjusted investment strategy. We expand upon each of these below. 1 July 2015 30 June 2019 Increased jurisdictional coverage Increased investments 1 Increased EPV Increased team Funds management Australia, USA, UK 94 Australia, USA, Canada, Asia, EMEA 41 $2.0 billion $9.5 billion 35 – 100+ 5 Funds (~$2 billion) 4