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L itig a tio n Ca pita l Ma na g e me nt L imite d 2018 Ha lf Ye a r Re sults Pre se nta tio n 28 F e b rua ry 2018 Patr ic k Molone y Chie f E xe c utive Offic e r Important information No recommendation, offer, invitation or advice


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L itig a tio n Ca pita l Ma na g e me nt L imite d 2018 Ha lf Ye a r Re sults Pre se nta tio n

28 F e b rua ry 2018

Patr ic k Molone y

Chie f E xe c utive Offic e r

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SLIDE 2

Important information

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No recommendation, offer, invitation or advice This presentation contains general information about the activities of Litigation Capital Management Limited (LCA) which is current as at 28 February 2018. It is in summary form and does not purport to be complete. It presents financial information on both a statutory basis, prepared in accordance with Australian accounting standards which comply with International Financial Reporting Standards (IFRS) as well as information provided on a non-IFRS basis. This presentation is not a recommendation or advice in relation to LCA or any product or service

  • ffered by LCA’s subsidiaries.

This presentation is not intended to be relied upon as advice to investors or potential investors, and does not contain all information relevant or necessary for an investment decision. It should be read in conjunction with LCA’s other periodic and continuous disclosure announcements filed with the Australian Securities Exchange, and in particular the Half Year Results for the Half Year to 31 December 2016. These are also available at http://www.lcmfinance.com. Investors and potential investors should make their own independent assessment of the information in this presentation and obtain their own independent advice from a qualified adviser having regard to their objectives, financial situation and needs before taking any action. Disclaimer No representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates or opinions or other information contained in this

  • presentation. To the maximum extent permitted by law, LCA, its subsidiaries and their respective

directors, officers, employees and agents disclaim all liability and responsibility for any direct or indirect loss or damage which may be suffered by any recipient through use of or reliance on anything contained in or omitted from this presentation. No recommendation is made as to how investors should make an investment decision. Investors must rely on their own examination of LCA, including the merits and risks involved. Investors and potential investors should consult with their own professional advisors in connection with any investment decision in relation to LCA securities. Forward looking statements The information in this presentation is for general information only. To the extent that certain statements contained in this presentation may constitute “forward-looking statements” or statements about “future matters”, the information reflects LCA’s intent, belief or expectations at the date of this presentation. Subject to any continuing obligations under applicable law or any relevant listing rules of the Australian Securities Exchange, LCA disclaims any obligation or undertaking to disseminate any updates or revisions to this information over time. Any forward- looking statements, including projections, guidance on future revenues, earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee

  • f future performance. Forward-looking statements involve known and unknown risks,

uncertainties and other factors that may cause LCA’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Investment risk Any investment in LCA securities is subject to investment and other known and unknown risks, some of which are beyond the control of LCA. Any forward-looking statements, opinions and estimates in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. For example, the factors that are likely to affect the results of LCA include, but are not limited to, general economic conditions in Australia, exchange rates, competition in the markets in which LCA operates or may operate and the inherent regulatory risks in the businesses of LCA. Neither LCA, nor any other person, gives any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur. In addition, please note that past performance is no guarantee or indication of future performance. Jurisdiction This presentation does not constitute an offer to issue or sell, or solicitation of an offer to buy, any securities or other financial products in any jurisdiction. The distribution of this presentation

  • utside Australia may be restricted by law. Any recipient of this presentation outside Australia

must seek advice on and observe any such restrictions. This presentation may not be reproduced

  • r published, in whole or in part, for any purpose without the prior written permission of LCA.

This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. Any such securities have not been, and will not be, registered under the U.S. Securities Act of 1933 (Securities Act), or the securities laws of any state or other jurisdiction of the United States and may not be offered or sold, directly or indirectly, in the United States or to, or for the account or benefit of, persons in the United States, except in a transaction exempt from, or not subject to, registration under the Securities Act and applicable US state securities laws.

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SLIDE 3

1H18 Financial & Operational Highlights

T he lo ss fo r L CM a fte r pro viding fo r inc o me ta x a mo unte d to $1.27M fo r the ha lf ye a r e nde d 31 De c e mb e r 2017. T his c o mpa re s with a lo ss fo r the c o rre spo nding 2016 pe rio d o f $2.36M. As a nno unc e d to the ma rke t this we e k, a s a re sult o f the Co mple tio n o f two L itig a tio n Pro je c ts (funde d dire c tly b y L CM), L CM ha s g e ne ra te d re ve nue o f a ppro xima te ly $20.2M a nd a c o ntrib utio n to E BI T DA o f $12.3M. T his sub se q ue nt e ve nt is like ly to e na b le L CM to mo ve to a he a lthy sta tuto ry pro fit po sitio n fo r F Y2018. T he fina nc ia l pe rfo rma nc e o f the two L itig a tio n Pro je c ts whic h ha ve Co mple te d po sitive ly c o ntrib ute s to L CM’ s histo ric a l fina nc ia l pe rfo rma nc e with a running I RR o ve r the la st 6.5 ye a rs (inc lusive o f lo sse s)

  • f 82%. T

he third L itig a tio n Pro je c t (funde d pursua nt to the I PF A*) is sub je c t to c e rta in po st- se ttle me nt e ve nts a nd is no t e xpe c te d to b e fina lly c o mple te d fo r a ppro xima te ly 12 mo nths. T he Dire c to rs o f L CM a re e xtre me ly ple a se d with this re sult whic h de mo nstra te s the pro g re ss the Co mpa ny is ma king a nd its a b ility to g e ne ra te sig nific a nt pro fits g o ing fo rwa rd a nd ma na g e me nt’ s a b ility to ma ke so und a nd prude nt inve stme nts in litig a tio n o ppo rtunitie s.

*Inte rna tio nal Pa rtne r F unding Arra ng e me nt

3

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Strong Litigation Project performance

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1H18 Litigation Project Highlights

T he L CM’ s po rtfo lio o f L itig a tio n Pro je c ts is no w the la rg e st (in te rms o f numb e r a nd a g g re g a te Gro ss Cla im Size ) tha t is ha s b e e n sinc e its inc e ptio n. L CM is pro ud to ha ve ma na g e d L itig a tio n Pro je c ts o ve r the la st 6.5 ye a rs tha t ha ve pro duc e d a ROI C o f 2.5x a t a n a ve ra g e time to ma turity o f 26 mo nths a t a n I RR (inc lusive o f lo sse s) o f 82%. As a t 31 De c e mb e r 2017 L CM ha d $19M c a pita l inve ste d in L itig a tio n Pro je c ts a s c o mpa re d with $12.5M a s a t 30 June 2017, a n inc re a se o f 52% in 6 mo nths. L CM is c urre ntly ma na g ing 14 L itig a tio n Pro je c ts, (11 o f whic h L CM is fina nc ing dire c tly) with a n a g g re g a te Gro ss Cla im Size o f c . $919M. L CM ha s a lso c o nditio na lly a g re e d to fund a furthe r 5 c la ims with a n a g g re g a te Gro ss Cla im Size o f $463M. T he o rg a nic a lly g e ne ra te d re ve nue re c e ive d b y L CM will e na b le it to ma ke a dditio na l inve stme nts in via b le a nd pro fita b le L itig a tio n Pro je c ts.

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Significant growth in Litigation Project portfolio

Current Litigation Project portfolio

F

  • llo wing the Co mple tio n o f 2 L

itig a tio n Pro je c ts in F e b rua ry 2018, the re a re c urre ntly 14 L itig a tio n Pro je c ts in the po rtfo lio , 5 o f whic h a re fo re c a st to Co mple te this F Y2018. L CM is ma na g ing a po rtfo lio with Gro ss Cla im Size o f c . $919M ($750M o f whic h it is funding dire c tly).

5

Litigation Project Pipeline

At pre se nt the re a re 29 Pipe line Pro je c ts, 5 o f whic h a re sub je c t to a c o nditio na l funding a g re e me nt. T he se 5 c o nditio na l pro je c ts ha ve a n a g g re g a te Gro ss Cla im Size o f c . $463M. T he c urre nt Pipe line Pro je c ts ha ve a n a g g re g a te : e stima te d Gro ss Cla im Size o f c . $2.6B e stima te d b udg e t o f c . $109M 64 a pplic a tio ns fo r litig a tio n funding re c e ive d in first ha lf o f F Y2018 c o mpa re d with 31 in the c o rre spo nding pe rio d fo r F Y2017.

Forecast Completion FY18 FY19 Total

L CM 3 8 11 IPF A* 2 1 3 T

  • ta l

5 9 14

*I nte rna tio na l Pa rtne r F ina nc ing Ag re e me nt

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SLIDE 6

Strong Litigation Project Performance – 80% profitable in the last 6.5 years with an IRR of 82%

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L CM ha s ma na g e d 28 L itig a tio n Pro je c ts to Co mple tio n in the la st 6.5 ye a rs. $46.6m wa s re turne d o n to ta l I nve ste d Ca pita l o f $18.8m a t a n I RR inc lusive o f lo sse s o f 82% (a c ro ss a ll 28 L itig a tio n Pro je c ts). Re turn o n I nve ste d Ca pita l (ROI C) during this pe rio d wa s 2.5x (a c ro ss a ll L itig a tio n Pro je c ts). T he a ve ra g e time to Co mple tio n wa s 26 mo nths. ROI C me a ns the pro c e e ds fro m a se ttle me nt o r judg me nt tha t L CM re c e ive s in re spe c t o f L itig a tio n Pro je c t divide d b y the I nve ste d Ca pita l o n a L itig a tio n Pro je c t.

$46.6m $18.8m

INC O M E INV ESTED C A PITA L

Sinc e Inc e ption:

L CM ha s ma na g e d 50 L itig a tio n Pro je c ts (c o mprising 194 se pa ra te c a se s) to c o mple tio n sinc e 1998. 40 o f the se L itig a tio n Pro je c ts (80%) ha ve b e e n pro fita b le .

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LCM’s Litigation Project Portfolio

7 Gross Claim Size by Com pletion year - % Gross Claim Size by financing entity - % Gross Claim Size by type of Litigation Project - % Average Gross Claim Size by financing entity - $ m

16% 84%

0% 20% 40% 60% 80% F Y18 F Y19

82% 18%

0% 20% 40% 60% 80% 100%

LCM IPFA

68.1 56.5

10 20 30 40 50 60 70 80 LCM IPFA

Insolvency 3% (4 Litigation Projects) Commercial 31% (7 Litigation Projects) Class Actions 66% (3 Litigation Projects)

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Summarised financial performance – Income Statement

8 (AU$’000s) 1H18 1H17 Change Revenue and other income 112 3 109 Net profit on derecognition of intangible assets 30 165 (135) Total Income 142 168 (26) Expenses: Corporate and office expenses (614) (671) 57 Legal and professional fees (59) (134) 75 Employment expenses (973) (598) (375) Foreign exchange loss

  • (310)

310 Finance costs (221) (1,664) 1,443 IPO listing expense

  • (182)

182 Depreciation 8 8 Net loss before tax (1,733) (3,392) 1,659 Income tax (expense)/benefit 463 976 (513) Profit/(Loss) for the year (1,270) (2,416) 1,146

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Summarised Balance Sheet

9 (AU$’000s) 31 Dec 2017 30 Jun 2017 Change Assets: Cash and cash equivalents 421 1,863 (1,442) Litigation Projects 17,879 11,684 6,195 Other 139 44 95 Total Current Assets 18,438 13,590 4,848 Litigation Projects 1,081 786 295 Deferred tax asset 10,014 7,766 2,248 Other 189 8 181 Total Non Current 11,285 8,561 2,724 Total Assets 29,723 22,151 7,572 Liabilities: Total Current Liabilities - Other 4,819 2,037 2,782 Deferred Tax 5,214 3,429 1,785 Borrowings 4,200 4,200 Total non current liabilities 9,464 3,456* 6,008 Total Liabilities 14,283 5,493 8,790 Equity 15,440 16,658 (1,218)

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Contact details

10 pmoloney@lcmfinance.com M: + 61 416 276 979 Patrick Moloney Litigation Capital Management Limited Chief Executive Officer

Litigation Capital Managem ent Lim ited Suite 12.06, Level 12 The Chifley Tower 2 Chifley Square Sydney NSW 2000 www.lcmfinance.com