Q4 2026 Omni Bridgeway Ltd Earnings Call

August 27, 2026

Operator 1: Thank you for standing by, and welcome to the Omni Bridgeway Limited FY26 results. All participants are in listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Raymond van Hulst, Chief Executive Officer and Managing Director. Please go ahead.

Operator: Thank you for standing by, and welcome to the Omni Bridgeway Limited FY26 results. All participants are in listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Raymond van Hulst, Chief Executive Officer and Managing Director. Please go ahead.

Speaker #1: If you wish to ask a question, you'll need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. Raymond Van Hulst, Chief Executive Officer and Managing Director.

Speaker #1: Please go ahead.

Speaker #2: Good morning, everyone, and welcome. This is the FY26 results presentation for the 12 months ended 30 June 2026. My name is Raymond Van Hult, Managing Director and Chief Executive Officer.

Raymond van Hulst: Good morning, everyone, and welcome to the FY26 results presentation for the 12 months ended 30 June 2026. My name is Raymond van Hulst, Managing Director and Chief Executive Officer. Joining me today are David Breeney, our Chief Financial Officer, Jeremy Sambrook, our General Counsel and Company Secretary, and Nathan Kandapper, our Head of Corporate Development and Investor Relations. Before we turn to the slides, let me share how I look back at this year. 2026 is a milestone year for Omni Bridgeway. It marks 40 years since the founding of our business and 25 years since our listing on the ASX. Very few alternative asset managers reach either milestone, and fewer still become global leaders in their asset class. These anniversaries matter beyond the headline.

Speaker #2: Joining me today are David Brini, our Chief Financial Officer; Jeremy Senbrook, our General Counsel and Company Secretary; and Nathan Kandaper, our Head of Corporate Development and Investor Relations.

Speaker #2: Before we turn to the slides, let me share how I look back at this year. 2026 is a milestone year for Omni Bridgeway. It marks 40 years since the founding of our business, and 25 years since our listing on the ASX.

Raymond van Hulst: It marks 40 years since the founding of our business and 25 years since our listing on the ASX. Very few alternative asset managers reach either milestone, and fewer still become global leaders in their asset class. These anniversaries matter beyond the headline.

Speaker #2: Very few alternative asset managers reach either milestone, and fewer still become global leaders in their asset class. These anniversaries matter beyond the headline. In an industry that is consolidating around a small number of institutional-grade platforms, a four-decade track record—built through multiple economic cycles, several generations of leadership, and in the transparency of a listed environment—is the single most difficult asset to replicate.

Raymond van Hulst: In an industry that is consolidating around a small number of institutional-grade platforms, a four-decade track record built through multiple economic cycles, several generations of leadership, and in the transparency of a listed environment is the single most difficult asset to replicate, and no one else in legal finance can point to one. There is also something quite special in that, an Australian-listed company with these origins standing as the global leader in an alternative asset class. Where FY25 was a year of transformation, FY26 was a year of execution. At our Investor Day in 2024, we defined our strategy around capital-light asset management, cost coverage, de-leveraging the balance sheet, and cash conversion. Defining a strategy is the easier part of the work. Executing it matter by matter and decision by decision is materially harder. FY26 was a year spent on that harder part.

Speaker #2: And no one else in legal finance can point to one. There's also something quite special in that—an Australian listed company with these origins, standing as the global leader in an alternative asset class.

Speaker #2: Where FY25 was a year of transformation, FY26 was a year of execution. At our Investor Day in 2024, we defined our strategy around capital-light asset management, cost coverage, de-leveraging the balance sheet, and cash conversion.

Raymond van Hulst: Where FY25 was a year of transformation, FY26 was a year of execution. At our Investor Day in 2024, we defined our strategy around capital-light asset management, cost coverage, de-leveraging the balance sheet, and cash conversion. Defining a strategy is the easier part of the work. Executing it matter by matter and decision by decision is materially harder. FY26 was a year spent on that harder part.

Speaker #2: Defining a strategy is the easier part of the work. Executing it, matter by matter and decision by decision, is materially harder. FY26 was a year spent on that harder part.

Speaker #2: Twelve months ago, we set out a clear set of targets for the year: on operating expenditure, on fee income, on cost coverage, and on capital formation.

Raymond van Hulst: Twelve months ago, we set out a clear set of targets for the year on operating expenditure, on fee income, on cost coverage, and on capital formation. I am pleased to report that we have achieved or exceeded each of them. We also delivered record cash investment proceeds and record new commitments. We reached our $1 billion US capital raising target for Funds Four and Five, Series Two, in what has been a difficult fundraising market for the entire alternatives industry globally. Legal investments have a three to five-year investment cycle. Our funds have an eight to 10-year cycle. We have defined a multi-year strategy. In that context, little in our company or in our industry turns on a single quarter, a half or even a full financial year. What matters most are the patterns and trajectories across multiple periods.

Speaker #2: And I'm pleased to report that we have achieved or exceeded each of them. We also delivered record cash investment proceeds and record new commitments.

Speaker #2: And we reached our $1 billion capital-raising target for Funds 4 and 5 Series 2, in what has been a difficult fundraising market for the entire alternatives industry globally.

Speaker #2: Legal investments have a three- to five-year investment cycle. Our funds have an eight- to ten-year cycle. And we've defined a multi-year strategy. In that context, little in our company or in our industry turns on a single quarter.

Raymond van Hulst: Legal investments have a three to five-year investment cycle. Our funds have an eight to 10-year cycle. We have defined a multi-year strategy. In that context, little in our company or in our industry turns on a single quarter, a half or even a full financial year. What matters most are the patterns and trajectories across multiple periods.

Speaker #2: A half, or even a full financial year. What matters most are the patterns and trajectories across multiple periods. So, while my focus today is on the annual results, I aim to put them in the context of those patterns throughout this briefing.

Raymond van Hulst: While my focus today is on the annual results, I aim to put them in the context of those patterns throughout this briefing. While here, not every metric landed exactly where we projected. I will be open about where and why. The underlying picture is one of consistent and disciplined execution of and progress towards the strategy we have laid out over the past two years. A capital-light asset management model, structurally higher cost coverage, steadily converting a maturing, diversified portfolio into cash. In other words, a business progressing well towards the steady state as presented at our 2024 Investor Day and March 2026 OBL. As we look at today's results, as a final note, before we turn to the slides, in March, we released an extensive analyst data pack to the market. Together with today's results presentation, we have released an updated version of that pack.

Speaker #2: And while, yes, not every metric landed exactly where we projected—and I'll be open about where and why—the underlying picture is one of consistent and disciplined execution of, and progress toward, the strategy we have laid out over the past two years.

Speaker #2: A capital-light asset management model, structurally higher cost coverage, steadily converting a maturing, diversified portfolio into cash. In other words, a business progressing well towards the steady state as presented at our 2024 Investor Day and March 2026 OBL.

Raymond van Hulst: In other words, a business progressing well towards the steady state as presented at our 2024 Investor Day and March 2026 OBL. As we look at today's results, as a final note, before we turn to the slides, in March, we released an extensive analyst data pack to the market. Together with today's results presentation, we have released an updated version of that pack.

Speaker #2: That's what we look at in today's results. As a final note before we turn to the slides, in March we released an extensive analyst data pack to the market.

Speaker #2: And together with today’s results presentation, we have released an updated version of that pack. In keeping with Omni Bridgeway’s position across 40 years of pioneering this industry, and 25 years on the ASX, it contains the most extensive analysis available of legal assets as an alternative asset class, and the vintage analysis that reflects our long and unique track record.

Raymond van Hulst: In keeping with Omni Bridgeway's position across 40 years of pioneering this industry and 25 years on the ASX, it contains the most extensive analysis available of legal assets as an alternative asset class and a vintage analysis that reflects our long and unique track record. It has been well received by shareholders, fund investors, analysts, and industry participants for the transparency it provides and understanding it adds. We aim to maintain and update it. I will refer to certain sections of it throughout this briefing. Over the next 30 minutes or so, I will first cover the highlights from the year and the performance of our portfolio. David will then take you through the key elements of our financial results before I come back on our strategic update and our priorities for FY27 and beyond, followed by Q&A.

Speaker #2: It has been well received by shareholders, fund investors, analysts, and industry participants for the transparency it provides and the understanding it adds. We aim to maintain and update it, and will refer to certain sections of it throughout this briefing.

Speaker #2: So, over the next 30 minutes or so, I will first cover the highlights from the year and the performance of our portfolio. David will then take you through the key elements of our financial results.

Raymond van Hulst: Over the next 30 minutes or so, I will first cover the highlights from the year and the performance of our portfolio. David will then take you through the key elements of our financial results before I come back on our strategic update and our priorities for FY27 and beyond, followed by Q&A.

Speaker #2: Before I come back to our strategic update and our priorities for FY27 and beyond, we'll have a Q&A session. So let's move on to the highlights for the year.

Raymond van Hulst: Let us move on to the highlights for the year. As I indicated, FY26 has been a year of disciplined execution against the targets we set at the FY25 results. Let me summarize that through the key numbers. Cash investment proceeds came in at AUD 350.5 million, up 49% on FY25, and a record for the company. New investment commitments ended at AUD 712.2 million, up 38% on FY25, and also a record. Cash OpEx was AUD 67.1 million, which is 16% below our FY26 budget of AUD 80 million, and 20% below FY25. Fee income grew to AUD 35.4 million, achieving our AUD 35 million target for the year, and up on FY25. Cost coverage increased to 53%, up from 36% in FY25, comfortably exceeding our FY26 target.

Speaker #2: As I indicated, FY26 has been a year of disciplined execution against the targets we set at the FY25 results. Let me summarize that through the key numbers.

Speaker #2: Cash investment proceeds came in at $350.5 million, up 49% on FY25, and a record for the company. New investment commitments ended at $712.2 million.

Speaker #2: Up 38% on FY25, and also a record. Cash OPEX was $67.1 million, which is 16% below our FY26 budget of $80 million and 20% below FY25.

Raymond van Hulst: Cash OpEx was AUD 67.1 million, which is 16% below our FY26 budget of AUD 80 million, and 20% below FY25. Fee income grew to AUD 35.4 million, achieving our AUD 35 million target for the year, and up on FY25. Cost coverage increased to 53%, up from 36% in FY25, comfortably exceeding our FY26 target.

Speaker #2: Fee income grew to $35.4 million, achieving our $35 million target for the year and up on FY25. Cost coverage increased to 53%, up from 36% in FY25.

Speaker #2: Comfortably exceeding our FY26 target. On capital formation, we reached an important milestone by achieving a $1 billion capital-raising target for Funds 4 and 5, Series 2.

Raymond van Hulst: On capital formation, we reached an important milestone by achieving a US$1 billion capital raising target for Funds Four and Five, Series Two, with over US$500 million added during FY26. The documentation and final terms on those last subscriptions are now being wrapped up. We also raised a further AUD 72.5 million in sidecar capital during the year, and we have a number of additional sidecar arrangements at advanced stages. I will spend more time later in this briefing on our capital formation success and its strategic and competitive relevance. When this stage of the capital formation is wrapped up, we will have achieved a further major strategic milestone. There is one item where we did not land where we expected. Even though investment completions ended at record levels, OBL-only investment proceeds for the year came in below the range we had anticipated at 30 June.

Speaker #2: With over $500 million added during FY26, the documentation and final terms on those last subscriptions are now being wrapped up. We also raised a further $72.5 million in sidecar capital during the year.

Speaker #2: And we have a number of additional sidecar arrangements at advanced stages. I will spend more time later in this briefing on our capital formation success and its strategic and competitive relevance.

Speaker #2: When this stage of the capital formation is wrapped up, we will have achieved a further major strategic milestone. There is one item where we did not land where we expected.

Raymond van Hulst: When this stage of the capital formation is wrapped up, we will have achieved a further major strategic milestone. There is one item where we did not land where we expected. Even though investment completions ended at record levels, OBL-only investment proceeds for the year came in below the range we had anticipated at 30 June.

Speaker #2: And even though investment completions ended at record levels, OBL-only investment proceeds for the year came in below the range we had anticipated at 30 June.

Speaker #2: That was primarily a timing outcome rather than a couple of investments that are probabilistic models projected to convert to cash before year-end, did so early into FY27.

Raymond van Hulst: That was primarily a timing outcome rather than a couple of investments that our probabilistic models projected to convert to cash before the year-end did so early into FY27, materially bridging that gap within several weeks of the balance sheet date. We cannot control duration of individual matters, but a defining characteristic of this asset class is that it is self-liquidating. Outcomes will happen and the investment proceeds will follow. This is a part of the investment life cycle I referred to in my introduction. These patterns play out over years, not from quarter to quarter. Looking ahead to FY27, completion momentum is expected to continue, underpinned by an increasingly mature portfolio of assets, which provides a strong base for cash completions in the coming periods. AUM growth will continue to drive the increase in fee income, further supported by improving fee terms on new capital and commitments.

Speaker #2: Materially bridging that gap within several weeks of the balance sheet date. We cannot control the duration of individual matters, but a defining characteristic of this asset class is that it is self-liquidating.

Speaker #2: Outcomes will happen, and the investment proceeds will follow. This is a part of the investment lifecycle I refer to in my introduction. These patterns play out over years, not from quarter to quarter.

Raymond van Hulst: These patterns play out over years, not from quarter to quarter. Looking ahead to FY27, completion momentum is expected to continue, underpinned by an increasingly mature portfolio of assets, which provides a strong base for cash completions in the coming periods. AUM growth will continue to drive the increase in fee income, further supported by improving fee terms on new capital and commitments.

Speaker #2: Looking ahead to FY27, completion momentum is expected to continue, underpinned by an increasingly mature portfolio of assets, which provides a strong base for cash completions in the coming periods.

Speaker #2: AUM growth will continue to drive the increase in fee income, further supported by improving fee terms on new capital and commitments. Together with controlled OPEX, that is expected to keep us on track for our FY28 cost coverage target of 70%.

Raymond van Hulst: Together with controlled OpEx, that is expected to keep us on track for our FY28 cost coverage target of 70%. On the capital raising front, we expect further capital to be raised across multiple sidecar arrangements. In terms of the opportunity set, the global industry consolidation is now clearly reflected across an increased pipeline and appropriate risk-adjusted pricing. Our focus will be on managing those opportunities while maintaining discipline around the parameters of our capital light strategy and our cost coverage targets. Growth for the sake of growth is not the objective. With that, let's turn to the highlights on investment performance. We had 80 full and partial completions for the year, up from 60 in FY25, with a multiple on invested capital or MOIC of 2.3x and 105% fair value conversion ratio.

Speaker #2: On the capital-raising front, we expect further capital to be raised across multiple sidecar arrangements. And in terms of the opportunity set, the global industry consolidation is now clearly reflected through an increased pipeline and appropriate risk-adjusted pricing.

Speaker #2: Our focus will be on managing those opportunities while maintaining discipline around the parameters of our capital-light strategy and our cost coverage targets. Growth for the sake of growth is not the objective.

Raymond van Hulst: Growth for the sake of growth is not the objective. With that, let's turn to the highlights on investment performance. We had 80 full and partial completions for the year, up from 60 in FY25, with a multiple on invested capital or MOIC of 2.3x and 105% fair value conversion ratio.

Speaker #2: With that, let's turn to the highlights on investment performance. We had 80 full and partial completions for the year, up from 60 in FY25, with a multiple on invested capital, or MOIC, of 2.3 times, and a 105% fair value conversion ratio.

Speaker #2: That ratio indicates how closely our fair value translates into cash proceeds. Noting again that this should always be looked at on a portfolio-level basis.

Raymond van Hulst: That ratio indicates how closely our fair value translates into cash proceeds, noting again that they should always be looked at on a portfolio level. The 2.3x MOIC compares to our life to date average of 2.4x across all vintages over multiple decades and economic cycles. It sits within the normal range of variation, and both are excellent investment returns for this asset class. I would also note that the first completions after year-end came in at a MOIC of 5.7x, as disclosed in our most recent quarterly update. IRR across all full and partial completions was 40%. There was also continued growth of the portfolio and assets under management, with AUM now standing at AUD 5.9 billion, up 12% since June 2025, and in line with our medium-term double-digit growth target.

Speaker #2: The 2.3 times MOEC compares to our live-to-date average of 2.4 times across all vintages over multiple decades and economic cycles. It sits within the normal range of variation, and both are excellent investment returns for this asset class.

Speaker #2: I would also note that the first completions after year-end came in at a MOEC of 5.7x, as disclosed in our most recent quarterly update.

Raymond van Hulst: I would also note that the first completions after year-end came in at a MOIC of 5.7x, as disclosed in our most recent quarterly update. IRR across all full and partial completions was 40%. There was also continued growth of the portfolio and assets under management, with AUM now standing at AUD 5.9 billion, up 12% since June 2025, and in line with our medium-term double-digit growth target.

Speaker #2: IRR across all full and partial completions was 40%. There was also continued growth of the portfolio and assets under management, with AUM now standing at $5.9 billion.

Speaker #2: Up 12% since June 2025, and in line with our medium-term double-digit growth target. Our portfolio fair value grew to $3.8 billion, with $725 million in OBL-only fair value.

Raymond van Hulst: Our portfolio fair value grew to AUD 3.8 billion, with AUD 725 million in OBL only fair value. We added AUD 564.4 million in new fair value from AUD 712.2 million of new commitments. As per my opening remarks, these investment metrics are the foundation of our business. They are what drive institutional capital to invest with us, drive our financial results, platform growth, as well as operating efficiency going forward. Moving to our business performance on slide seven. David will cover our statutory accounts in detail in a few slides' time. Two points of context before he does. First, FY25 included the Fund Nine transaction, which contributed over AUD 300 million of secondary transaction proceeds and a similar quantum of fair value gains.

Speaker #2: And we added $564.4 million in new fair value, from $712.2 million of new commitments. As per my opening remarks, these investment metrics are the foundation of our business.

Speaker #2: They are what drive institutional capital to invest with us, drive our financial results, platform growth, as well as operating efficiency going forward. Now, moving to our business performance on slide 7.

Speaker #2: David will cover our statutory accounts in detail in a few slides' time. Two points of context before he does. First, FY25 included the Fund 9 transaction, which contributed over $300 million of secondary transaction proceeds and a similar quantum of fair value gains.

Raymond van Hulst: David will cover our statutory accounts in detail in a few slides' time. Two points of context before he does. First, FY25 included the Fund Nine transaction, which contributed over AUD 300 million of secondary transaction proceeds and a similar quantum of fair value gains.

Speaker #2: FY26 has no equivalent one-off item, so the step-down in statutory headline net profit after tax from $416.8 million to $45.9 million is expected, and the two years are not directly comparable.

Raymond van Hulst: FY26 has no equivalent one-off item, so the step down in statutory headline from AUD 416.8 million of net profit after tax to AUD 45.9 million is expected, and the two years are not directly comparable. Second, FX has been a general feature of this result. I will come back to it on a later slide, but the short version is that the movement in the Australian dollar has produced a large non-cash translation effect on reported fair value and earnings. On a statutory IFRS basis, total income was AUD 182.2 million, with net profit before tax of AUD 48.2 million and net profit after tax of AUD 45.9 million for the year, delivering earnings per share of AUD 0.19. From an OBL only perspective, total income was AUD 116.5 million. Fee income was AUD 35.4 million and cash OpEx was AUD 67.1 million. From a shareholder metric point of view, return on equity was 8%.

Speaker #2: Second, FX has been a genuine feature of this result. I will come back to it on a later slide, but the short version is that the movement in the Australian dollar has produced a large non-cash translation effect on reported fair value and earnings.

Speaker #2: On a statutory IFRS basis, total income was $182.2 million, with net profit before tax of $48.2 million and net profit after tax of $45.9 million for the year.

Raymond van Hulst: On a statutory IFRS basis, total income was AUD 182.2 million, with net profit before tax of AUD 48.2 million and net profit after tax of AUD 45.9 million for the year, delivering earnings per share of AUD 0.19. From an OBL only perspective, total income was AUD 116.5 million. Fee income was AUD 35.4 million and cash OpEx was AUD 67.1 million. From a shareholder metric point of view, return on equity was 8%.

Speaker #2: Delivering earnings per share of 19 cents. From an OBL-only perspective, total income was $116.5 million. Fee income was $35.4 million, and cash OPEX was $67.1 million.

Speaker #2: From a shareholder metric point of view, return on equity was 8%, and total book value per share was $2.96—effectively flat on FY25, down 1%.

Raymond van Hulst: The total book value per share was AUD 2.96, effectively flat on FY25 at down 1%. That flat outcome is largely the currency translation effect I mentioned, and this metric continues to highlight the discount to book value at which our shares currently trade. Let us now take a deeper look at how our portfolio progressed during the year on slide nine. I will not spend too long on this slide as we have provided many of the key points earlier, and this has been a key part of our quarterly reporting. However, we feel it continues to be important to provide the breakdown. Completion activity was at record levels, with 80 full and partial completions generating AUD 350.5 million, of which AUD 47.5 million was attributable to OBL only. In addition, we received AUD 6.6 million in cash carried interest, taking total OBL only proceeds to AUD 54.1 million.

Speaker #2: That flat outcome is largely the currency translation effect I mentioned, and this metric continues to highlight the discount to book value at which our shares currently trade.

Speaker #2: Let's now take a deeper look at how our portfolio progressed during the year, on slide 9. I once spent too long on this slide, as we provided many of the key points earlier, and this has been a key part of our quarterly reporting.

Speaker #2: However, we feel it continues to be important to provide a breakdown. Completion activity was at record levels, with 80 full and partial completions generating $350.5 million.

Raymond van Hulst: However, we feel it continues to be important to provide the breakdown. Completion activity was at record levels, with 80 full and partial completions generating AUD 350.5 million, of which AUD 47.5 million was attributable to OBL only. In addition, we received AUD 6.6 million in cash carried interest, taking total OBL only proceeds to AUD 54.1 million.

Speaker #2: Of which $47.5 million was attributable to OBL-only. In addition, we received $6.6 million in cash carried interest, taking total OBL-only proceeds to $54.1 million.

Speaker #2: We've separated carried interest out this year, as it is becoming a more meaningful and recurring component of our OBL-only cash generation as the funds mature.

Raymond van Hulst: We have separated carried interest out this year as it is becoming a more meaningful and recurring component of our OBL only cash generation as the funds mature. Within the total, the 39 full completions delivered a 2.2x MOIC and 102% fair value conversion, and the 41 partial completions, a 2.5x MOIC and 109% conversion. An overall fair value conversion of 105% across 80 completions is a strong outcome, and again, sufficiently close to 100% to confirm that our valuation framework is behaving as intended across the portfolio as a whole. The portfolio developments outlined in our recent quarterly portfolio updates were positive and will drive continued completion momentum into FY27. Looking at our portfolio on a fair value basis, our portfolio continues to be very well-balanced between the regions and the different investment types.

Speaker #2: Within the total, the 39 full completions delivered a 2.2x MOEC and 102% fair value conversion, and the 41 partial completions delivered a 2.5x MOEC and 109% conversion.

Speaker #2: An overall fair value conversion of 105% across 80 completions is a strong outcome, and again, sufficiently close to 100% to confirm that our valuation framework is behaving as intended across the portfolio as a whole.

Speaker #2: The portfolio developments outlined in our recent quarterly portfolio updates were positive and will drive continued completion momentum into FY27. Looking at our portfolio on a fair value basis, our portfolio continues to be very well balanced between the regions and the different investment types.

Raymond van Hulst: The portfolio developments outlined in our recent quarterly portfolio updates were positive and will drive continued completion momentum into FY27. Looking at our portfolio on a fair value basis, our portfolio continues to be very well-balanced between the regions and the different investment types.

Speaker #2: This level of diversification within the legal finance asset class is unique to Omni Bridgeway, and reflects our multi-strategy approach, with specialized teams focused on specific legal sub-strategies.

Raymond van Hulst: This level of diversification within the legal finance asset class is unique to Omni Bridgeway and reflects our multi-strategy approach with specialized teams focused on specific legal sub-strategies based on global areas of law or based on jurisdictions. Such diversification mitigates the risks associated with adverse regulatory, legal, and economic events in any particular region or area of law. I continue to be pleased with our limited exposure to single large investments, with the largest 10 investments representing only 15% of our commitments and 23% of the total fair value of our portfolio. This focus on diversification does not prevent us from investing in larger matters. Rather, we do so using sidecar capital in addition to our own funds. Sidecar capital helps us mitigate concentration risk while still generating management fees, transaction fees, and our performance fees, enhancing our return on capital and equity.

Speaker #2: Based on global areas of law, or based on jurisdictions, such diversification mitigates the risks associated with adverse regulatory, legal, and economic events in any particular region or area of law.

Speaker #2: I continue to be pleased with our limited exposure to single large investments, with the largest 10 investments representing only 15% of our commitments and 23% of the total fair value of our portfolio.

Raymond van Hulst: I continue to be pleased with our limited exposure to single large investments, with the largest 10 investments representing only 15% of our commitments and 23% of the total fair value of our portfolio. This focus on diversification does not prevent us from investing in larger matters. Rather, we do so using sidecar capital in addition to our own funds. Sidecar capital helps us mitigate concentration risk while still generating management fees, transaction fees, and our performance fees, enhancing our return on capital and equity.

Speaker #2: This focus on diversification does not prevent us from investing in larger matters. Rather, we do so using sidecar capital in addition to our own funds.

Speaker #2: Sidecar capital helps us mitigate concentration risk while still generating management fees, transaction fees, and our performance fees, enhancing our return on capital and equity.

Speaker #2: This disciplined portfolio construction and diversification approach has been a major factor in our capital formation success. We've added slide 11 this year because FX has been a material feature of the FY26 result, and we want to provide some context on FX and its impact.

Raymond van Hulst: This disciplined portfolio construction and diversification approach has been a major factor in our capital formation success. We have added slide 11 this year because FX has been a material feature of the FY26 result, and we want to provide some context on FX and its impact. Our portfolio is diversified by geography, and that creates exposure to different currencies. The chart on the left shows fair value by currency, which reflects the currency of entitlement of each investment in the portfolio, the currency of the legal claim itself. Three points follow from that. First, the entitlement currency is typically the same as the funding currency. So the money we put into a matter and the money we expect to recover from it are generally in the same currency, which provides a natural hedge at the investment level.

Speaker #2: Our portfolio is diversified by geography, and that creates exposure to different currencies. The chart on the left shows fair value by currency, which reflects the currency of entitlement of each investment in the portfolio.

Speaker #2: The currency of the legal claim itself—three points follow from that. First, the entitlement currency is typically the same as the funding currency. So, the money we put into a matter and the money we expect to recover from it are generally in the same currency, which provides a natural hedge at the investment level.

Raymond van Hulst: Three points follow from that. First, the entitlement currency is typically the same as the funding currency. So the money we put into a matter and the money we expect to recover from it are generally in the same currency, which provides a natural hedge at the investment level.

Speaker #2: Second, the majority of our entitlements are in US dollars, and the majority of our fund capital is also US dollar-denominated. That provides a second natural hedge, this time between the assets and the capital that funds them.

Raymond van Hulst: Second, the majority of our entitlements are in USD, and the majority of our fund capital is also USD denominated. That provides a second natural hedge, this time between the assets and the capital that funds them. Third, and this is the most important one, we report in AUD. So when USD denominated values are translated into AUD for financial reporting purposes, movements in the exchange rate produce a non-cash accounting impact, but that has no immediate bearing on the underlying economics of the investments, the funds, or on the cash investment proceeds.

Speaker #2: And third, and this is the most important one, we report in Australian dollars. So when US dollar-denominated values are translated into Australian dollars for financial reporting purposes, movements in the exchange rate produce a non-cash accounting impact, but that has no immediate bearing on the underlying economics of the investments.

Raymond van Hulst: So when USD denominated values are translated into AUD for financial reporting purposes, movements in the exchange rate produce a non-cash accounting impact, but that has no immediate bearing on the underlying economics of the investments, the funds, or on the cash investment proceeds.

Speaker #2: The funds are on the cash investment proceeds. FY26 saw sustained appreciation of the Australian dollar against each of our major exposure currencies, as shown on the right-hand side of the slide.

Raymond van Hulst: FY26 saw sustained appreciation of the AUD against each of our major exposure currencies, as shown on the right-hand side of the slide, with movements through the year of 4.6% against the USD, 7.4% against the euro, and 8.1% against the pound. The consequence is a significant non-cash negative translation effect in our reported numbers, which flows through the fair value movement and to the earnings. In quantum, that effect was a -AUD 317 million on total portfolio fair value for the year, of which AUD 64 million related to OBL-only, figures I will come back to on slides 13 and 14. To put it plainly, our investments have not become less valuable in the currencies in which they will be recovered and are funded, but the AUD as a reporting currency has appreciated during the year.

Speaker #2: But movements through the year of 4.6% against the US dollar, 7.4% against the euro, and 8.1% against the pound. The consequence is a significant non-cash negative translation effect in our reported numbers.

Speaker #2: Which flows through the fair value movement and to the earnings. In quantum, that effect was a negative $317 million on total portfolio fair value for the year, of which $64 million related to OBL-only.

Raymond van Hulst: In quantum, that effect was a -AUD 317 million on total portfolio fair value for the year, of which AUD 64 million related to OBL-only, figures I will come back to on slides 13 and 14. To put it plainly, our investments have not become less valuable in the currencies in which they will be recovered and are funded, but the AUD as a reporting currency has appreciated during the year.

Speaker #2: Figures I will come back to on slides 13 and 14. To put it plainly, our investments have not become less valuable in the currencies in which they will be recovered and are funded, but the Australian dollar, as reporting currency, has appreciated during the year.

Speaker #2: On slide 12, we showed continued growth of the portfolio and platform, which is important as it drives further diversification and economies of scale.

Raymond van Hulst: On slide 12, we show the continued growth of the portfolio and platform, which is important as it drives further diversification and economies of scale. Firstly, looking at the right-hand side of the slide, the total portfolio fair value stands at AUD 3.8 billion, having grown at an 18% compound annual rate since December 2023. This is net of new commitments, completions, Material Litigation Events, and the currency effect, and represents the fair value of the group's gross investment portfolio. Of AUD 3.8 billion, AUD 725 million is attributable to OBL-only, up from AUD 669 million a year ago. We will discuss these in more detail on slides 13 and 14. The left-hand side shows total commitments and deployments on active investments, now at compound annual growth rate of 17%.

Speaker #2: Firstly, looking at the right-hand side of the slide, the total portfolio fair value stands at $3.8 billion, having grown at an 18% compound annual rate since December 2023.

Speaker #2: This is net of new commitments, completions, material litigation events, and the currency effect, and represents the fair value of the group's gross investment portfolio.

Raymond van Hulst: This is net of new commitments, completions, Material Litigation Events, and the currency effect, and represents the fair value of the group's gross investment portfolio. Of AUD 3.8 billion, AUD 725 million is attributable to OBL-only, up from AUD 669 million a year ago. We will discuss these in more detail on slides 13 and 14. The left-hand side shows total commitments and deployments on active investments, now at compound annual growth rate of 17%.

Speaker #2: $3.8 billion, $725 million of which is attributable to OBL-only, up from $669 million a year ago. We will discuss these in more detail on slides 13 and 14.

Speaker #2: The left-hand side shows total commitments and deployments on active investments, now at a compound annual growth rate of 17%. One methodology note on the left-hand chart.

Raymond van Hulst: One methodology note on the left-hand chart, we have updated the basis to include conditional commitments in the respective financial years, so that this chart now aligns with the portfolio fair value chart alongside it. The detail of that change is in the footnotes. On to slide 13, this slide and the next explain in our standard recurring format the movement in portfolio value during the year on a total basis and on an OBL-only basis. Overall, total portfolio fair value increased by AUD 277 million for the year. Working across the chart, the portfolio increased from new commitments and from investment deployments during the period. The next, fair value movement, is driven by three main factors. First, the discount unwind, which reflects the passage of time as investments move closer to an expected completion.

Speaker #2: We've updated the basis to include conditional commitments in the respective financial years, so that this chart now aligns with the portfolio fair value chart alongside it.

Speaker #2: The detail of that change is in the footnotes. On to slide 13. This slide and the next explain, in our standard recurring format, the movement in portfolio value during the year.

Speaker #2: On a total basis, and on an OBL-only basis, overall total portfolio fair value increased by $277 million for the year. Working across the chart, the portfolio increased from new commitments and from investment deployments during the period.

Raymond van Hulst: Working across the chart, the portfolio increased from new commitments and from investment deployments during the period. The next, fair value movement, is driven by three main factors. First, the discount unwind, which reflects the passage of time as investments move closer to an expected completion.

Speaker #2: The next fair value movement is driven by three main factors. First, the discount unwind, which reflects the passage of time as investments move closer to an expected completion.

Speaker #2: Second, material litigation events, or MLEs, which had a non-cash negative impact of $333 million for the year and reflect a net effect of all positive and negative fair value developments.

Raymond van Hulst: Second, Material Litigation Events, or MLEs, which had a non-cash negative impact of AUD 333 million for the year, and reflect a net effect of all positive and negative fair value developments. These involved 217 of our investments over the period, which in itself is indicative of a diversified portfolio. MLEs can be interim judgments or expert reports, but more often reflect timing changes or externally driven adjustments to budgets or claim values. This is approximately 9% of the portfolio value and should be read alongside the 105% fair value conversion ratio discussed earlier, which tells you that where matters did complete, they completed at or above our valuation. Correctly adjusting for MLEs along the way supports that outcome and the overall integrity of the fair value framework itself. Notwithstanding, it is somewhat more than we like to and are used to observing on a period-by-period basis.

Speaker #2: These involved 217 of our investments over the period, which in itself is indicative of a diversified portfolio. MLEs can be interim judgments or expert reports, but more often reflect timing changes or externally driven adjustments to budgets or claim values.

Speaker #2: This is approximately 9% of the portfolio value, and should be read alongside the 105% fair value conversion ratio discussed earlier. This tells you that where matters did complete, they completed at or above our valuation.

Raymond van Hulst: This is approximately 9% of the portfolio value and should be read alongside the 105% fair value conversion ratio discussed earlier, which tells you that where matters did complete, they completed at or above our valuation. Correctly adjusting for MLEs along the way supports that outcome and the overall integrity of the fair value framework itself. Notwithstanding, it is somewhat more than we like to and are used to observing on a period-by-period basis.

Speaker #2: Correctly adjusting for MLEs along the way supports that outcome, and the overall integrity of the fair value framework itself. Notwithstanding, it is somewhat more than we like to, and are used to, observing on a period-by-period basis.

Speaker #2: And finally, FX movements, which, as I discussed on slide 11, had a non-cash negative impact of $317 million on the year. The last bar reflects the investments and the associated fair value that completed during the year, and have therefore fallen out of the portfolio.

Raymond van Hulst: Finally, FX movements, which as I discussed on slide 11, had a non-cash negative impact of AUD 317 million the year. The last bar reflects the investments and the associated fair value that completed during the year and have therefore fallen out of the portfolio. Slide 14 provides the identical overview, but from an OBL-only perspective. Overall, the OBL-only value of the portfolio increased by AUD 56 million during the year, from AUD 669 million to AUD 725 million. Within that, MLEs had a negative impact of AUD 38 million, and FX a negative impact of AUD 64 million. By comparing slides 13 and 14, it becomes clear that the OBL-only attribution rate for new commitments, deployments, MLEs, and currency is not proportionate to the total. The attribution rate is driven by the co-investment and carried interest terms of the relevant funds and sidecar arrangements.

Speaker #2: Slide 14 provides the identical overview. Platform and OBL-only perspective. Overall, the OBL-only value of the portfolio increased by $56 million during the year, from $669 million to $725 million.

Speaker #2: Within that, MLEs had a negative impact of $38 million and FX a negative impact of $64 million. By comparing slides 13 and 14, it becomes clear that the OBL-only attribution rate for new commitments, deployments, MLEs, and currency is not proportionate to the total.

Raymond van Hulst: Within that, MLEs had a negative impact of AUD 38 million, and FX a negative impact of AUD 64 million. By comparing slides 13 and 14, it becomes clear that the OBL-only attribution rate for new commitments, deployments, MLEs, and currency is not proportionate to the total. The attribution rate is driven by the co-investment and carried interest terms of the relevant funds and sidecar arrangements.

Speaker #2: The attribution rate is driven by the co-investment and carried interest terms of the relevant funds and sidecar arrangements. It also means that the larger movements at the portfolio level translate into much smaller movements in the value attributable to OBL only.

Raymond van Hulst: It also means that the larger movements at the portfolio level translate into much smaller movements in the value attributable to OBL only. I will now hand off results in more detail.

Speaker #2: I will now hand over the results in more detail.

Speaker #1: Good morning, and thank you, Raymond. This set of financial results delivers against a set of targets outlined at the beginning of the year and reaffirmed at the half.

David Breeney: Good morning, and thank you, Raymond. This set of financial results delivers against the set of targets outlined at the beginning of the year and reaffirmed at the H1. We are being rewarded as the book matures and the balance sheet is enjoying the benefits of prior debt repayment, and notwithstanding the FX impact of the AUD strengthening against the USD, the book has grown. Overall, the balance sheet continues to show strength. Whilst our fair value conversion ratio of 105% continues to reinforce our asset valuation. Turning to page 16, let's dive into the walk for the gross portfolio proceeds at the fund level, reconciling to the consolidated NPAT results. Portfolio investment proceeds reached AUD 350.5 million, a 49% increase year-on-year. This is a record for the portfolio. Fee income at AUD 35.4 million continues our year-on-year improvements to the fee base.

Speaker #1: We are being rewarded as the book matures, and the balance sheet is enjoying the benefits of prior debt repayment. Notwithstanding the FX impact of the AUD strengthening against the USD, the book has grown.

Speaker #1: And overall, the balance sheet continues to show strength. While our fair value conversion ratio of 105% continues to reinforce our asset valuation. Turning to page 16, let's dive into the walk of the gross portfolio proceeds at the fund level, reconciling to the consolidated impact result.

David Breeney: Turning to page 16, let's dive into the walk for the gross portfolio proceeds at the fund level, reconciling to the consolidated NPAT results. Portfolio investment proceeds reached AUD 350.5 million, a 49% increase year-on-year. This is a record for the portfolio. Fee income at AUD 35.4 million continues our year-on-year improvements to the fee base.

Speaker #1: Portfolio investment proceeds reached $350.5 million, a 49% increase year on year. This is a record for the portfolio. Being at $35.4 million, it continues our year-on-year improvements to the fee base.

Speaker #1: And fair value movements of $61.9 million drove net profit before tax to $48.2 million, and net profit after tax to $48.5 million.

David Breeney: Fair value movement of AUD 61.9 million drove net profit before tax to AUD 48.2 million, and the net profit after tax to AUD 485.9 million. The fair value gains are in fact down from the H1, driven by unrealized non-cash fair valuations, which unwound from the previous non-cash gains at the H1. From a statutory perspective, the majority of Omni's litigation investments are now valued at fair value. These assets are continually assessed during the life cycle of a litigation case, with our experienced valuation team updating their models. Therefore, developments and assumptions in cases can swing valuations positively and negatively in a period as new information emerges. These movements do not represent cash proceeds received in the period or the final success of our cases. A better metric for that comparison is our fair value conversion ratio. But these non-cash movements, however, do flow through to the underlying profit result.

Speaker #1: The fair value gains are, in fact, down from the half, driven by unrealized non-cash fair valuations, which unwound from the previous non-cash gains at the half.

Speaker #1: From a statutory perspective, the majority of Omni's litigation investments are now valued at fair value. These assets are continually assessed during the life cycle of a litigation case.

Speaker #1: With our experienced valuation team updating their models, developments and assumptions in cases can swing valuations positively and negatively within a period, as new information emerges.

David Breeney: Therefore, developments and assumptions in cases can swing valuations positively and negatively in a period as new information emerges. These movements do not represent cash proceeds received in the period or the final success of our cases. A better metric for that comparison is our fair value conversion ratio. But these non-cash movements, however, do flow through to the underlying profit result.

Speaker #1: These movements do not represent cash proceeds received in the period, or the final success of our cases. A better metric for that comparison is our fair value conversion ratio.

Speaker #1: But these non-cash movements, however, do flow through to the underlying profit result. In addition, as Raymond earlier mentioned, it is important to note here that the fund line transaction in the second half of FY25 has resulted in a non-like-for-like comparative period, with Funds 2, 3, and 4 all deconsolidated for the FY26 period.

David Breeney: In addition, as Raymond earlier mentioned, it is important to take note here that the Fund Nine transaction in the H2 of FY25 has resulted in a non-like for like comparative period, with Funds Two, Three and Four all deconsolidated for the FY26 period and now accounted for at fair value. On slide 17, the OBL only fair value P&L is management's preferred view to show realized and unrealized income. It considers all OBL's investments at fair value, inclusive of Fund Six and Eight, which are held at cost and fully consolidated under IFRS. For FY26, OBL AUD 49.4 million in EBIT, with a realized EBIT of an increase of AUD 33.5 million on FY25, driven by the successful investment completions, fee income increased, and disciplined cost management. Our unrealized income was likewise positive at AUD 27.9 million, reflecting the value generation of new investments, less non-cash movements in the book.

Speaker #1: And now accounted for at fair value. On slide 17, the OBL-only fair value P&L is management's preferred view to show realized and unrealized income.

Speaker #1: It considers all OBL's investments at fair value, inclusive of Funds 6 and 8, which are held at cost and fully consolidated under IFRS. For FY26, there is $49.4 million in EBIT, with a realized EBIT increase of $33.5 million on FY25.

David Breeney: For FY26, OBL AUD 49.4 million in EBIT, with a realized EBIT of an increase of AUD 33.5 million on FY25, driven by the successful investment completions, fee income increased, and disciplined cost management. Our unrealized income was likewise positive at AUD 27.9 million, reflecting the value generation of new investments, less non-cash movements in the book.

Speaker #1: Driven by the successful investment completions, fee income increased, and disciplined cost management. Our unrealized income was likewise positive at $27.9 million, reflecting value generation of new investments, less non-cash movements in the book.

Speaker #1: We achieved a positive movement in the OBL portfolio year on year, even after a negative FX movement of $64 million, which, absent the negative FX impact, would have resulted in an EBIT of approximately $114 million.

David Breeney: We achieved a positive movement in the OBL portfolio year-on-year, even after a negative FX movement of -AUD 64 million, which absent of the negative FX impact, would have resulted in an EBIT of approximately AUD 114 million. The OBL only cash P&L reflects the cash view of the P&L items for FY26 and is a bridge to the cash position stated in the quarterly report issued at the end of July. When excluding non-recurring cash items and investment deployments for future book growth, OBL achieved a net cash generation of AUD 22.4 million for the year. We have benefited from an increase in fee income, the removal of interest expense as a result of the Fund Nine transaction in late 2025, in combination with reduced OpEx spend. OBL only co-invest deployments reduced 35% year-on-year to AUD 28.3 million. Another cash flow benefit from the Fund Nine transaction.

Speaker #1: The OBL-only cash P&L reflects the cash view of the P&L items for FY26, and is a bridge to the cash position stated in the quarterly report issued at the end of July.

Speaker #1: When excluding non-recurring cash items and investment deployments for future book growth, OBL achieved a net cash generation of $22.4 million for the year, with benefit from an increase in fee income, the removal of interest expense as a result of the fund line transaction in late Q4 2025, in combination with reduced OPEX spend.

David Breeney: When excluding non-recurring cash items and investment deployments for future book growth, OBL achieved a net cash generation of AUD 22.4 million for the year. We have benefited from an increase in fee income, the removal of interest expense as a result of the Fund Nine transaction in late 2025, in combination with reduced OpEx spend. OBL only co-invest deployments reduced 35% year-on-year to AUD 28.3 million. Another cash flow benefit from the Fund Nine transaction.

Speaker #1: OBL-only co-invest deployments reduced 35% year on year to $28.3 million, another cash flow benefit from the fund line transaction. After those deployments and non-recurring items, total cash movement for the year was negative $15.6 million, reflecting deliberate reinvestment of cash generated into future value generation for shareholders.

David Breeney: After those deployments and non-recurring items, total cash movement for the year was -AUD 15.6 million, reflecting deliberate reinvestment of cash generated into future value generation for shareholders. Cash OpEx in the year has reduced 20.2% during FY26, a further improvement on the 6.2% we achieved in FY25, all during an inflationary period, reflecting our disciplined cost management approach. Turning to page 19, slide 19, we have made strides in our cost coverage and further improved our sharp focus on cost discipline. OBL only cash OpEx was reduced to AUD 67.1 million, beating our FY26 target by 16%. This, however, will be the low point for cost decreases, and inflationary rises should be expected, resulting in a target range of AUD 72.5 to 75 million for FY27. Fee income grew to AUD 35.4 million in FY26, in line with our target of AUD 35 million.

Speaker #1: Cash OPEX for the year has reduced by 20.2% during FY26, a further improvement on the 6.2% we achieved in FY25. All this during an inflationary period, reflecting our disciplined cost management approach.

Speaker #1: Turning to page 19, slide 19, we've made strides in our cost coverage and further improved our sharp focus on cost discipline. OBL-only cash OPEX was reduced to $67.1 million, beating our FY26 target by 16%.

David Breeney: OBL only cash OpEx was reduced to AUD 67.1 million, beating our FY26 target by 16%. This, however, will be the low point for cost decreases, and inflationary rises should be expected, resulting in a target range of AUD 72.5 to 75 million for FY27. Fee income grew to AUD 35.4 million in FY26, in line with our target of AUD 35 million.

Speaker #1: This, however, will be the low point for the cost decreases, and inflationary rises should be expected, resulting in a target range of $72.5 to $75 million for FY27.

Speaker #1: Fee income grew to $35.4 million in FY26, in line with our target of $35 million. As the book grows, with opportunities from sidecar investments and improving fee terms, we anticipate fee income to be in the region of $40 to $45 million for FY27.

David Breeney: As the book grows, opportunities with sidecar investments and improving fee terms, we anticipate fee income to be in the region of AUD 40 to 45 million for FY27. Together, these lifted cost coverage to 33% for FY26, up from 36% in FY25. As a result, we remain on track to achieve 70% cost coverage by FY28, a key milestone in our long-term efficiency strategy. Moving to page 20, this chart provides a bridge of cash movements and our liquidity balance at the end of the full year. On an OBL only basis, we have AUD 125 million in cash receivables at 30 June.

Speaker #1: Together, these lifted cost coverage to 53% for FY26, up from 36% in FY25. A result we remain on track as a result we remain on track to achieve 70% cost coverage by FY28, a key milestone in our long-term efficiency strategy.

Speaker #1: Moving to page 20, this chart provides a bridge of cash movements and our liquidity balance at the end of the full year. On an OBL-only basis, we have $125 million in cash receivables as of the 30th of June.

David Breeney: Moving to page 20, this chart provides a bridge of cash movements and our liquidity balance at the end of the full year. On an OBL only basis, we have AUD 125 million in cash receivables at 30 June.

Speaker #1: We revised our liquidity forward position at the half, and this is in line with where we expected to land, while an additional $33 million from agreed settlements that have largely been received within six weeks after the year-end largely bridged the gap to our 30th of June position.

David Breeney: We revised our liquidity forward position at the half, and this is in line where we expected to land, while an additional AUD 33 million from agreed settlements that have largely been received within six weeks after the year end largely bridge the gap to our 30 June position. Looking at the last 12 months, the timing of proceeds is inherently a challenge in this industry. With a large enough book, proceeds become relatively more predictable but can be skewed by small timings around period ends in completions of larger cases. As a result, using a probabilistic analysis to reflect a range of possible outcomes is our best method to outline OBL's forward-looking cash flow and liquidity. The assumptions of which are driven by 300 plus underlying matters that are live and dynamic.

Speaker #1: Looking at the next 12 months, the timing of proceeds is inherently a challenge in this industry. With a large enough book, proceeds become relatively more predictable but can be skewed by small timings around period ends.

Speaker #1: In completions of larger cases. As a result, using a probabilistic analysis to reflect a range of possible outcomes is our best method to outline OBL's forward-looking cash flow and liquidity.

David Breeney: As a result, using a probabilistic analysis to reflect a range of possible outcomes is our best method to outline OBL's forward-looking cash flow and liquidity. The assumptions of which are driven by 300 plus underlying matters that are live and dynamic.

Speaker #1: The assumptions for which are driven by 300-plus underlying matters that are live and dynamic. The midpoints of the FY27 ranges on the previous slide imply management fees of around $42.5 million and platform expenses of circa $74 million.

David Breeney: The midpoints of the FY27 ranges on the previous slide imply management fees of around AUD 42.5 million and platform expenses of circa AUD 74 million. Using a Monte Carlo simulation to derive a P50 scenario, the expected cash flow to OBL only from completions is potentially around AUD 98 million, with associated deployments in this scenario potentially at AUD 40 million. The candlestick ends represent the range of different scenarios based on a P80, 20% or 60% confidence interval. Secondary sales are always a potential source of proceeds and are shown as an unfilled box, which could occur if the opportunity arises. We expect the portfolio to be on track to deliver positive free cash flows for the year ahead. With that, I'd like to hand back to Raymond.

Speaker #1: Using a Monte Carlo simulation to derive a P50 scenario, the expected cash flow to OBL-only from completions is potentially around $98 million, with associated deployments in this scenario potentially at $40 million.

Speaker #1: The candlestick ends represent the range of different scenarios, based on a P80/20 or 60% confidence interval. Secondary sales are always a potential source of proceeds and are shown as an unfilled box, which could occur if the opportunity arises.

David Breeney: Secondary sales are always a potential source of proceeds and are shown as an unfilled box, which could occur if the opportunity arises. We expect the portfolio to be on track to deliver positive free cash flows for the year ahead. With that, I'd like to hand back to Raymond.

Speaker #1: We expect the portfolio to be on track to deliver positive free cash flows for the year ahead. With that, I'd like to hand back to Raymond.

Speaker #2: Thank you, David. Before we move to slide 23, I'd like to make some further comments on slide 21. The indicated probability range for investment proceeds is remarkably wide, and seemingly with significant upside potential and uncertainty.

Raymond van Hulst: Thank you, David. Before we move to slide 23, some further comments from me on the slide 21. The indicated probability range for investment proceeds is remarkably wide and seemingly with significant upside potential and uncertainty. That is the effect of a maturing portfolio with an increasing number of investments which may complete in full or in part during FY27. As indicated earlier, duration is uncertain and legal investments do not stick to annual cycles. They may complete late in the year or in the period after. In addition, and as reported earlier, there are several larger matters within that group on whether they complete in the current period versus the year after may have a major impact on the cash conversion in the year.

Speaker #2: That is the effect of a maturing portfolio with an increasing number of investments which may complete in full or in part during FY27. As indicated earlier, duration is uncertain and legal investments do not stick to annual cycles.

Raymond van Hulst: As indicated earlier, duration is uncertain and legal investments do not stick to annual cycles. They may complete late in the year or in the period after. In addition, and as reported earlier, there are several larger matters within that group on whether they complete in the current period versus the year after may have a major impact on the cash conversion in the year.

Speaker #2: May complete late in the year, or in a period after. In addition, and as reported earlier, there are several larger matters within that group. Whether they complete in the current period versus the year after may have a major impact on the cash conversion in the year.

Speaker #2: That is all reflected in that increased range, as demonstrated by the candlesticks, and that will drive the availability of excess capital, as well as the opportunities within our capital allocation policy as defined last year.

Raymond van Hulst: That is all reflected in that increased range as demonstrated by the candlesticks, and that will drive the availability of excess capital and the opportunities within our capital allocation policy as defined last year. Now on to slide 23. Let me start the strategic update with capital formation, because that has been the standout of the year. In FY26, we raised the equivalent of AUD 862 million in new third-party capital. Most significantly, we reached our $1 billion capital raising target for Funds IV and V, Series Two. In a fundraising environment that has been challenging for the entire alternatives industry, and particularly difficult in legal finance, where it has been a major driver of consolidation, achieving a $1 billion target makes Omni Bridgeway the positive standout in our industry globally.

Speaker #2: Now on to slide 23. Let me start the strategic update with capital formation, because that has been the standout of the year. In FY26, we raised the equivalent of $862 million Australian dollars in new third-party capital.

Speaker #2: Most significantly, we reached our US dollar 1 billion capital raising target for funds 4 and 5 series 2. The fund raising environment that has been challenging for the entire alternatives industry, and particularly difficult in legal finance, where it has been a major driver of consolidation, achieving a 1 billion dollar target makes Omni Bridgeway the positive standout in our industry globally.

Raymond van Hulst: In a fundraising environment that has been challenging for the entire alternatives industry, and particularly difficult in legal finance, where it has been a major driver of consolidation, achieving a $1 billion target makes Omni Bridgeway the positive standout in our industry globally.

Speaker #2: For the Series 2, the commitments are split approximately 40% and 60% between Fund 4 and Fund 5, which better aligns the capital with our portfolio, our themes, and the opportunity set by region.

Raymond van Hulst: For the Series Two, the commitments are split approximately 40%/60% between Funds IV and Fund V, which better aligns the capital with our portfolio, our themes and the opportunities set by region. That is the US and the rest of the world. That is also visible on slide 10, which outlines the portfolio between the regions. In the process, we have secured commitments from several cornerstone global allocators, adding multiple new institutional investors as long-term capital partners. These are institutions that can and want to scale allocations in multiples of their first commitment through sidecars, through new funds, and through new verticals. We believe this capital formation framework with these partners provides a structural advantage to OBL going forward. Additionally, sidecar funding continues to grow as a source of flexible capital for legal assets that sit outside the investment criteria or limits of our funds.

Speaker #2: That is the US and the rest of the world. That is also visible on slide 10, which outlines the portfolio between the regions. In the process, we have secured commitments from several cornerstone global allocators.

Speaker #2: Adding multiple new institutional investors as long-term capital partners. These are institutions that can and want to scale allocations in multiples of their first commitment, through sidecars, through new funds, and through new verticals.

Raymond van Hulst: These are institutions that can and want to scale allocations in multiples of their first commitment through sidecars, through new funds, and through new verticals. We believe this capital formation framework with these partners provides a structural advantage to OBL going forward. Additionally, sidecar funding continues to grow as a source of flexible capital for legal assets that sit outside the investment criteria or limits of our funds.

Speaker #2: We believe this capital formation framework, with these partners, provides a structural advantage to OBL going forward. Additionally, sidecar funding continues to grow as a source of flexible capital for legal assets that sit outside the investment criteria or limits of our funds.

Speaker #2: It allows us to underwrite larger commitments within our framework of disciplined portfolio diversification and construction for our funds, and without expanding our own balance sheet exposure.

Raymond van Hulst: It allows us to underwrite larger commitments within our framework of disciplined portfolio diversification and construction for our funds, and without expanding our own balance sheet exposure. Cumulatively, capital commitments to our platform have grown at 30% compound annual rate since we transitioned from balance sheet to third-party capital. Slide 24 is largely self-explanatory, and I won't spend too much time on it now, but I will draw out three points. On market, legal finance continues to grow at double-digit rates globally. Adoption continues to increase and regulation in our relevant markets has settled into a balanced position. The capital products currently offered to the legal industry remain nascent and limited relative to the total addressable market. That gap is the opportunity. On industry, nearly 40 years after inception, we are in a clear period of consolidation.

Speaker #2: Cumulatively, capital commitments to our platform have grown at a 30% compound annual rate since we transitioned from balance sheet to third-party capital. Slide 24 is largely self-explanatory, and I won't spend too much time on it now.

Speaker #2: But I will draw out three points. On market, legal finance continues to grow at double-digit rates globally. Adoption continues to increase, and regulation in our relevant markets has settled into a balanced position.

Raymond van Hulst: Adoption continues to increase and regulation in our relevant markets has settled into a balanced position. The capital products currently offered to the legal industry remain nascent and limited relative to the total addressable market. That gap is the opportunity. On industry, nearly 40 years after inception, we are in a clear period of consolidation.

Speaker #2: The capital products currently offered to the legal industry remain nascent and limited, relative to the total addressable market. That gap is the opportunity. On industry, nearly 40 years after inception, we are in a clear period of consolidation.

Speaker #2: Capital is consolidating around skilled players with proprietary origination, genuine workout capability, and a track record of underwriting discipline across multiple economic cycles. There are very few of those.

Raymond van Hulst: Capital is consolidating around scaled players with proprietary origination, genuine workout capability, and a track record of underwriting discipline across multiple economic cycles. There are very few of those. Reduced competition supports further growth and incremental market share at appropriate risk-adjusted returns. On Omni Bridgeway specifically, I would like to highlight one item that is new on this slide. We hold the largest and most diversified industry data set of completed investments anywhere in legal finance, including across jurisdictions where no comparable data exists. As AI tools become more capable, proprietary data of that kind becomes a durable underwriting advantage rather than just simply a record of the past. Slide 25 sets out where we are in executing our plan across three phases.

Speaker #2: Reduced competition supports further growth and incremental market share at appropriate risk-adjusted returns. And on Omni Bridgeway specifically, I would like to highlight one item that is new on this slide.

Speaker #2: We hold the largest and most diversified industry data set of completed investments anywhere in legal finance, including across jurisdictions where no comparable data exists.

Raymond van Hulst: We hold the largest and most diversified industry data set of completed investments anywhere in legal finance, including across jurisdictions where no comparable data exists. As AI tools become more capable, proprietary data of that kind becomes a durable underwriting advantage rather than just simply a record of the past. Slide 25 sets out where we are in executing our plan across three phases.

Speaker #2: As AI tools become more capable, proprietary data of that kind becomes a durable underwriting advantage, rather than just a record of the past.

Speaker #2: Slide 25 sets out where we are in executing our plan across three phases. As I said in my introduction, this is the plan we defined at our Investor Day.

Raymond van Hulst: As I said in my introduction, this is the plan we defined at our investor day, built around capital-light asset management, higher cost coverage, deleveraging and cash conversion. FY2026 was another year of disciplined execution against it. Phase one, the restructuring and transition phase, is complete. We deleveraged the balance sheet, which involves repaying AUD 250 million of debt in full, eliminating around AUD 30 million of annual interest expense, and moving OBL from net debt to net cash. We also set up the last legacy balance sheet liability of approximately AUD 28 million, which closes that chapter. We generated the cash needed for that from our portfolio. We improved cost coverage from 7% to 3%.

Speaker #2: Built around capital-lite asset management, higher cost coverage, deleveraging, and cash conversion. FY26 was another year of disciplined execution against it. Phase one—the restructuring and transition phase—is complete.

Speaker #2: We deleveraged the balance sheet, which involves repaying $250 million of debt in full, eliminating around $30 million of annual interest expense, and moving OBL from net debt to net cash.

Raymond van Hulst: We deleveraged the balance sheet, which involves repaying AUD 250 million of debt in full, eliminating around AUD 30 million of annual interest expense, and moving OBL from net debt to net cash. We also set up the last legacy balance sheet liability of approximately AUD 28 million, which closes that chapter. We generated the cash needed for that from our portfolio. We improved cost coverage from 7% to 3%.

Speaker #2: We also set up the last legacy balance sheet liability of approximately $28 million, which closes that chapter. We generated the cash needed for that from our portfolio.

Speaker #2: We improved cost coverage from 73%. We transitioned to a capital-lite asset management model, reducing OBL co-invests, aligning reporting with the asset management industry, implementing a fair value framework validated by a major third-party transaction, as well as ongoing completions, and rolling out the team carried interest program.

Raymond van Hulst: We transitioned to a capital-light asset management model, reducing OBL co-invest, aligning reporting with the asset management industry, implementing a fair value framework validated by a major third-party transaction, as well as ongoing completions, and rolling out the team carried interest program. We executed successfully on capital formation, raising more than AUD 1.6 billion in fund and sidecar capital, adding Ares and other high-profile cornerstone investors as capital partners, and securing strong capital availability through a period of economic transition and industry consolidation. Phase two, execution, is in progress, and FY2026 is the first year in which you can see it clearly in the numbers. We are capitalizing on improved market circumstances and an expanded opportunity set, with record commitments of AUD 712 million in FY2026, and pipeline and term sheets at elevated levels.

Speaker #2: And we executed successfully on capital formation, raising more than $1.6 billion in fund and sidecar capital. We added Aries and other high-profile cornerstone investors as capital partners, and secured strong capital availability through a period of economic transition and industry consolidation.

Raymond van Hulst: We executed successfully on capital formation, raising more than AUD 1.6 billion in fund and sidecar capital, adding Ares and other high-profile cornerstone investors as capital partners, and securing strong capital availability through a period of economic transition and industry consolidation.

Speaker #2: Phase two—execution—is in progress. FY26 is the first year in which you can see this clearly in the numbers. We are capitalizing on improved market circumstances and an expanded opportunity set, with record commitments of $712 million in FY26, and pipeline and term sheets at elevated levels.

Raymond van Hulst: Phase two, execution, is in progress, and FY2026 is the first year in which you can see it clearly in the numbers. We are capitalizing on improved market circumstances and an expanded opportunity set, with record commitments of AUD 712 million in FY2026, and pipeline and term sheets at elevated levels.

Speaker #2: We are seeing continued acceleration of cash completions, with record investment proceeds of $351 million at 49% on FY25, and a strong start to FY27.

Raymond van Hulst: We are seeing continued acceleration of cash completions, with record investment proceeds of AUD 351 million, up 49% on FY25, and a strong start to FY27. Importantly, this is not one strong year, but a sequence of years of rising completions, as the vintage analysis on slides 4 to 6 of the analyst data pack illustrates. We remain on track for the 70% cost coverage target by FY28, supported by growth in AUM. This indicates that we are tracking well against the steady state model that we presented and discussed earlier. Phase 3, sustainable growth, is at an early stage. That is growth through the further expansion of existing strategies and markets, growth by expanding into new strategies and markets, and growth enabled by increased capital availability and flexibility. Slide 26 sets out how we think about that.

Speaker #2: Importantly, this is not just one strong year, but a sequence of years of rising completions, as the vintage analysis on slides four to six of the analyst data pack illustrates.

Speaker #2: And we remain on track for the 70% cost coverage target by FY28, supported by growth in AUM, and this indicates that we are tracking well against the steady-state model that we presented and discussed earlier.

Speaker #2: Phase three, sustainable growth, is at an early stage. That is growth through the further expansion of existing strategies and markets, growth by expanding into new strategies and markets, and growth enabled by increased capital availability and flexibility.

Raymond van Hulst: Phase 3, sustainable growth, is at an early stage. That is growth through the further expansion of existing strategies and markets, growth by expanding into new strategies and markets, and growth enabled by increased capital availability and flexibility. Slide 26 sets out how we think about that.

Speaker #2: Slide 26 sets out how we think about that. Our ambition is unchanged: to be the world's leading alternative asset manager dedicated to legal finance.

Raymond van Hulst: Our ambition is unchanged, to be the world's leading alternative asset manager dedicated to legal finance and the most diversified and institutional platform for the primary origination, underwriting, and management of legal assets and legal risk. Slide 26 shows the two directions in which we grow, all within OBL's defined market of legal assets and risk. The first is by growing within our existing strategies, or also called portfolios. Growing our business and market share in the geographies where we already operate, in the areas of law where we already have dedicated teams, and in the investment types we already specialize in. The second is by adding strategies. This can be through expansion into new geographies, into new areas of law, and expansion in investment types. For example, structured finance solutions and legal insurance.

Speaker #2: And the most diversified and institutional platform for the primary origination, underwriting, and management of legal assets and legal risk. Slide 26 shows the two directions in which we grow.

Speaker #2: All within OBL's defined market of legal assets and risk. The first is by growing within our existing strategies, or also called portfolios—growing our business and market share in the geographies where we already operate, in the areas of law where we already have dedicated teams, and in the investment types we already specialize in.

Raymond van Hulst: Growing our business and market share in the geographies where we already operate, in the areas of law where we already have dedicated teams, and in the investment types we already specialize in. The second is by adding strategies. This can be through expansion into new geographies, into new areas of law, and expansion in investment types. For example, structured finance solutions and legal insurance.

Speaker #2: The second is by adding strategies. This can be through expansion into new geographies, into new areas of law, and expansion in investment types. For example, structured finance solutions and legal insurance.

Speaker #2: And there, in both directions, sit three structural tailwinds that we do not fully control but we do benefit from: the continued underlying growth of the legal services industry, the continued increase in adoption of legal finance by that industry, and the continued increase of our market share supported by the industry consolidation.

Raymond van Hulst: Underneath both directions sit three structural tailwinds that we do not fully control, but we do benefit from. The continued underlying growth of the legal services industry, the continued increase in adoption of legal finance by that industry, and the continued increase of our market share, supported by the industry consolidation. The important qualifier is at the top of the slide. All of this growth is to be delivered within the parameters of our capital-light strategy, capital allocation policy, and our increase in cost coverage. We have an opportunity set that is larger than our capital and our cost base, and we will be disciplined the next few years in managing the opportunity set. To conclude on Slide 27, our strategic projects and targets. I have already discussed our updated analyst data pack and the updated vintage analysis. Now turning to our FY27 strategic projects.

Speaker #2: The important qualifiers at the top of the slide—all of this growth is to be delivered within the parameters of our capital-light strategy, capital allocation policy, and our increasing cost coverage.

Speaker #2: We have an opportunity set that is larger than our capital and our cost base. We will be disciplined over the next few years in managing the opportunity set.

Raymond van Hulst: We have an opportunity set that is larger than our capital and our cost base, and we will be disciplined the next few years in managing the opportunity set. To conclude on Slide 27, our strategic projects and targets. I have already discussed our updated analyst data pack and the updated vintage analysis. Now turning to our FY27 strategic projects.

Speaker #2: And to conclude on slide 27, our strategic projects and targets. I've already discussed our updated analyst data pack and the updated vintage analysis. Returning to our FY27 strategic projects:

Speaker #2: They include continued acceleration of portfolio completions—that is, a real focus on cash conversion of our portfolio—and increasing market share in the key markets, capitalizing on industry consolidation.

Raymond van Hulst: They include continued acceleration of portfolio completions, i.e., a real focus on cash conversion of our portfolio. An increase in market share in the key markets, capitalizing on industry consolidation. Further expansion and diversification of sidecar capital arrangements of our legal asset investment strategies, and our shareholder base and analyst coverage. Possible smaller strategic secondary market transactions. We always look at those, whenever they are economically and strategically attractive. A continued balance sheet transition, with the deconsolidation of Fund Six and Fund Eight as possibilities. In terms of the tangible targets we have set ourselves for FY27 and beyond, they are listed on the right-hand side. Cash OpEx of AUD 72.5 to AUD 75 million for FY27. Fee income of AUD 40 to AUD 45 million for FY27. 70% cost coverage from fee income by the end of FY28, and double-digit annualized growth in AUM over the 2026 to FY28 period.

Speaker #2: Further expansion and diversification of sidecar capital arrangements, of our legal asset investment strategies, and of our shareholder base and analyst coverage. Possible small or strategic secondary market transactions.

Speaker #2: We always look at those, whenever they are economically and strategically attractive. And the continued balance sheet transition with the deconsolidation of Fund Six and Fund Eight as possibilities.

Raymond van Hulst: A continued balance sheet transition, with the deconsolidation of Fund Six and Fund Eight as possibilities. In terms of the tangible targets we have set ourselves for FY27 and beyond, they are listed on the right-hand side. Cash OpEx of AUD 72.5 to AUD 75 million for FY27. Fee income of AUD 40 to AUD 45 million for FY27. 70% cost coverage from fee income by the end of FY28, and double-digit annualized growth in AUM over the 2026 to FY28 period.

Speaker #2: In terms of the tangible targets we've set ourselves for FY27 and beyond, they're listed on the right-hand side: cash opex of $72.5 to $75 million for FY27.

Speaker #2: Fee income of $40 to $45 million for FY27, 70% cost coverage from fee income by the end of FY28, and double-digit annualized growth in AUM over the FY26 to FY28 period.

Speaker #2: Forty years after this company was founded, and twenty-five years after it listed, Omni Bridgeway is debt-free, covering its operating costs from realized income, managing a record book with a materially lower cost base, and holding a fully raised flagship fund program as a market leader in a growing but consolidating industry.

Raymond van Hulst: 40 years after this company was founded, and 25 years after it listed, Omni Bridgeway is debt-free, covering its operating costs from realized income, managing a record book with a materially lower cost base, and holding a fully raised flagship fund program as a market leader in a growing but consolidating industry. That is a good place to be starting FY27 from. Thank you for your attention. We will now move to Q&A.

Speaker #2: That is a good place to be starting FY27 from. Thank you for your attention. We will now move to Q&A.

Speaker #1: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two.

Operator 2: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up your handset to ask a question. Your first question comes from David Fraser with MSD Financial.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up your handset to ask a question. Your first question comes from David Fraser with MSD Financial.

Speaker #1: If you are on speakerphone, please pick up your handset to ask a question. Your first question comes from David Fraser with MSC Financial.

Raymond van Hulst: David, are you there?

Speaker #2: David, are you there? Oh, for fuck's sake.

David Fraser: Oh, fuck's sake.

Speaker #1: Oh, David, your line is unmuted.

Operator 2: David-

Operator: David-

David Fraser: You all right?

Operator 2: Your line is-

Operator: Your line is-

Speaker #2: David, I think you're on the line.

Raymond van Hulst: David, I think you are on the line.

Speaker #3: Sorry, I'm sorry. I lost the sign here. Before I ask a couple of questions about the result, I was just wondering if you could give us an update on a case that we've seen in the press with respect to Clearus winning against Tata Power.

David Fraser: Sorry. I lost the phone there. Before I ask a couple of questions about the result, I was just wondering if you could give us an update on a case that we have seen in the press, with respect to Kleros winning against Tata Power. The press has speculated that the case is completed effectively, and the potential win or proceeds to Kleros is USD 640 million. I was just wondering if you could give us an idea of, I presume it sits in Fund Five, Series One, which will then obviously feed into Fund Nine, but if you could just give us an update on that case.

Speaker #3: The press is speculating that the case is completed effectively, and the potential win or proceeds to Clearus is $640 million US. I was just wondering if you could give us an idea—I presume that sits in Fund Five, Series One, which will then obviously feed into Fund Nine.

Speaker #3: But if you could just give us an update on that case.

Speaker #2: Oh, thanks. David, you're remarkably well-informed. That's overnight. That's overnight news. Well, I've noted the press release; certainly, we're pleased by that news. As I've said earlier, we never comment on single investments.

Raymond van Hulst: Thanks, David. You are remarkably well-informed. That is overnight news. Well, I have noted the press release. Certainly, we are pleased by that news. As I have said earlier, we never comment on single investments. Certainly not if they are still live and it is very fresh, but it is positive news. I think you should look at that news in the context of, I think, what was it? Slide 21. The investment proceeds comments I made. This is possibly a good example of that uncertainty in proceeds during the year on an OBL-only basis. If it comes in the year, it looks to be a very good outcome. If it jumps over the year, it will still be a good outcome. It will be in the year after. As I said, it is overnight news, and it is a single matter. We generally do not comment on those.

Speaker #2: Certainly not if there's still life and it's very fresh, but it's positive news. And I think you should look at that news in the context of—I think, what was it?

Speaker #2: Slide 21. The investment proceeds comments I made—this is possibly a good example of that uncertainty in proceeds during the year. On an OBL-only basis, if it comes in the year, it looks to be a very good outcome.

Raymond van Hulst: If it comes in the year, it looks to be a very good outcome. If it jumps over the year, it will still be a good outcome. It will be in the year after. As I said, it is overnight news, and it is a single matter. We generally do not comment on those.

Speaker #2: And if it jumps over the year, it will still be a good outcome. It will be in the year after. But I can't—as I said, it's overnight news and it's a single matter.

Speaker #2: We generally don't comment on those.

Speaker #3: Okay, thank you. Getting back to the result, opex was down materially—lower than your budget. And then, obviously, that's forecast to go up a wee bit next year.

David Fraser: Okay. Thank you. Getting back to the result. OpEx was down materially lower than your budget, and obviously it is forecast to go up a wee bit next year. Is there anything that you can comment on, I guess, why the costs were down quite materially on budget, and why they are going up next year and what would be the outlook going forward, on a cost base going forward?

Speaker #3: Is there anything that you can comment on, I guess, as to why the costs were down quite materially on budget, and why they're going up next year?

Speaker #3: And what would be the outlook going forward on a cost base?

Speaker #2: Yeah, thanks. So, I think we were positively surprised ourselves. We might have been slightly more successful than we thought on some of the cost savings.

Raymond van Hulst: Yeah, thanks. I think we were positively surprised ourselves. We might have been slightly more successful than we thought on some of the cost savings. We should not look at that 67 number as the ongoing number. Some cost savings are truly one-off, that will not be repeated next year. Think of some significant leases that we have renegotiated with six months free lease. That will not happen in the next year. What we have indicated is that 72.5 is more or less the target, and I think you should be thinking about it as the low end, going forward with inflation as the increase after that. We do not have any further cost-saving measures available or have any intentions to make further cost savings. The opportunity set is what we are focused on now.

Speaker #2: But we shouldn't look at that $67 number as the ongoing number. Some cost savings are truly one-off and won't be repeated next year. Think of some significant leases that we've renegotiated, with six months of free lease, that won't happen in the next year.

Speaker #2: So, what we've indicated is that 72.5 is more or less the target, and I think you should be thinking about it as the low end going forward with inflation.

Raymond van Hulst: What we have indicated is that 72.5 is more or less the target, and I think you should be thinking about it as the low end, going forward with inflation as the increase after that. We do not have any further cost-saving measures available or have any intentions to make further cost savings. The opportunity set is what we are focused on now.

Speaker #2: As to the increase after that, we don't have any further cost-saving measures available or have any intentions to make further cost savings. The opportunity set is what we're focused on now.

Speaker #3: Okay. And then I guess the more specific question—and I'll question the after-event costs that you had to pay. Have you finished paying all those cash costs yet?

David Fraser: I guess a more specific question, and I will QSM, the after-event costs that you had to pay, have you finished paying all those cash costs yet?

Raymond van Hulst: Yes, we have.

Speaker #2: Yes, we have.

Speaker #3: Okay. And last one from me before I let someone else jump on the line. You were talking about the market consolidation. What are you thinking about how that's going to benefit OBL growth-wise, and are you seeing any better pricing coming through because of that consolidation?

David Fraser: Okay. Last one from me before I let someone else jump on the line. You are talking about the market consolidation. What are you thinking about how that is going to benefit OBL growth-wise, and are you seeing any better pricing coming through because of that consolidation?

Raymond van Hulst: Yes, we do. I think it comes in two different ways. We see more, so the pure inflow is going up. Maybe where three years ago, there might have been a couple of parties putting a term sheet forward, three or four. Today, we typically are competing with one other party or no other term sheet at all. We have been facing what I would call false competition historically, where sometimes matters were underpriced or risk was underpriced, and that is reflected in the consolidation. You can do that for four years, but after a while, the investment returns will come through, and you will not be able to raise further capital. I think the market has now reset, and everybody acknowledges what the appropriate pricing is for these risks, and we feel less pressure on that.

Speaker #2: Yes, we do. So I think it comes in two different ways. We see more. So the pure inflow is going up. And maybe where three years ago there might have been a couple of parties putting a term sheet forward—three or four.

Speaker #2: Today, we typically are competing with one other party or no other term sheet at all. And we've been facing what I would call 'false competition' historically, where sometimes matters were underpriced, or risk was underpriced.

Speaker #2: And that's reflected in the consolidation. I mean, you can do that for four years, but after a while, the investment returns will come through and you won't be able to raise further capital.

Raymond van Hulst: You can do that for four years, but after a while, the investment returns will come through, and you will not be able to raise further capital. I think the market has now reset, and everybody acknowledges what the appropriate pricing is for these risks, and we feel less pressure on that.

Speaker #2: So, I think the market has now reset, and everybody acknowledges what the appropriate pricing is for these risks. And we feel less pressure on that.

Speaker #2: So, I think what we're seeing currently is a bigger inflow—more opportunities. And, at the same time, less pressure, or less competitive pressure, on pricing.

Raymond van Hulst: I think what we are seeing currently is a bigger inflow, more opportunities, and at the same time, less pressure or less competitive pressure on pricing, and so better pricing all across.

Speaker #2: And so, better pricing all across.

Speaker #3: Great, thank you. I'll jump over now to let someone else ask some questions.

David Fraser: Great. Thanks, Erwin. I will jump over. Let someone else ask some questions.

Speaker #2: Okay. Thank you.

Raymond van Hulst: Okay. Thank you.

Speaker #1: The next question comes from the line of Peter, Michael Burke with Select Equities. Please go ahead.

Operator 2: The next question comes from the line of Peter Meichelboeck with Select Equities. Please go ahead.

Operator: The next question comes from the line of Peter Meichelboeck with Select Equities. Please go ahead.

Peter Meichelboeck: Hi, guys. Can you hear me okay?

Speaker #3: Hi, guys. Can you hear me okay?

Speaker #2: Yes, Peter. Hi, Peter, we can hear you.

Raymond van Hulst: Yeah, Peter. Hi, Peter. We can hear you.

Peter Meichelboeck: Hi. Yeah, great. Look, also had a question on the cost coverage. Obviously, you had that big jump from 36% to 53% this year with that large OpEx reduction. I am just looking at that midpoint of the guidance for both fees and costs next year. That gets you to about 58% on my numbers. So 53% to 58%, if that were to occur at the midpoint. Just wondering why you are still confident around the 70% by the following year.

Speaker #3: Hi. Yeah, great. Either course, I had a question on the cost coverage. Obviously, you had that big jump from 36% to 53% this year.

Speaker #3: With that large OPEX reduction, I mean, I'm just looking at that midpoint of the guidance for both fees and costs next year. That gets you to about 58% on my numbers.

Speaker #3: Why? Just say 53 to 58 if that were to occur at the midpoint. Just wondering why you're sort of confident around the 70% for the following year?

Speaker #2: You've done the math faster than that. Very good. I think the range that you see there is 53% or 54% to 62%. That's the result of doubling the guidance on both fee income and opex.

Raymond van Hulst: You have done the math faster than that. Very good. I think the range that you see there is 53% or 54% to 62%. That is the result of the double, the guidance on both fee income and OpEx. My expectation is that we will be at the high end of that range, depending on the fee income. That is where the uncertainty mostly sits. Based on the AUM or the fundraise that we have just completed, that gives us the comfort that with the fee terms, and the increasing fee terms we see in market, that we can continue the same trajectory into next year in getting to that 70%. So it is within the range. You can read a little bit of conservatism in there if you want to. But it is that same trajectory.

Speaker #2: My expectation is that we'll be at the high end of that range, depending on the fee income—that's where the uncertainty mostly sits. Based on the AUM, or the fundraise that we've just completed, that gives us the comfort that with the fee terms, and the increasing fee terms we see in market, we can continue the same trajectory into next year, and get to that 70%.

Raymond van Hulst: Based on the AUM or the fundraise that we have just completed, that gives us the comfort that with the fee terms, and the increasing fee terms we see in market, that we can continue the same trajectory into next year in getting to that 70%. So it is within the range. You can read a little bit of conservatism in there if you want to. But it is that same trajectory.

Speaker #2: So it's within the range. You can read a little bit of conservatism in there, if you want to. But it's that same trajectory.

Speaker #3: Right. Understood. Just given that you've said you've got no further sort of cost savings on the opex side, I mean, if we look longer term, is there the potential to actually get to 100% cost coverage?

Peter Meichelboeck: Right. Yep. Understood. Just given that you have said you have got no further cost savings on the OpEx side. If we look longer term, is there the potential to actually get to 100% cost coverage? Because, I think if I think of fund management businesses, it is not a realistic target, I guess. Like I said, now that OpEx is trending higher, is 100%, if you look far enough out is a realistic target, do you think?

Speaker #3: Because, I mean, I think if I sort of think of fund management businesses, it's not a realistic sort of target, I guess. Like I said, now that opex is trending higher—is 100%, if you look far enough out, is that a realistic target, do you think?

Speaker #2: No, absolutely. I mean, in that sense, I think our trajectory is largely similar to that of the larger asset management platforms globally, which have also taken time to get to that 100%.

Raymond van Hulst: No, absolutely. In that sense, I think our trajectory is largely similar to that of the larger asset management platforms globally, which have also taken time to get to that 100%. The way to get there is growing the asset base, and making sure that your fee terms. The good thing we have seen over the last few years is that in the market reset, fee terms have caught up, and they are at the level where they should be. AUM is growing. So, if we continue to execute on what we have been doing over the last two years, that cost coverage will continue to increase. AUM will grow faster. Fee revenue will grow even faster with the increased costs. Our OpEx will level off and only grow with inflation.

Speaker #2: The way to get there is growing the asset base and making sure that your fee terms—the good thing we've seen over the last few years is that, in the market reset, fee terms have caught up, and they are at the level where they should be.

Speaker #2: And AUM is growing. So, if we continue to execute on what we've been doing over the last two years, that cost coverage will continue to increase.

Raymond van Hulst: AUM is growing. So, if we continue to execute on what we have been doing over the last two years, that cost coverage will continue to increase. AUM will grow faster. Fee revenue will grow even faster with the increased costs. Our OpEx will level off and only grow with inflation.

Speaker #2: And so AUM will grow faster. Fee revenue will grow even faster, while the costs, or opex, will level off and only grow with inflation.

Speaker #2: So that differential between the two growths, and only the lower growth at the cost level, will see that cost coverage level continue to increase.

Raymond van Hulst: So that differential between the two growths and only the lower growth at the cost level, we will see that cost coverage level continue to increase.

David Breeney: I will just add to that, Peter, that your comment that was comparing us to the more broader asset managers, we are actually the best cost coverage within legal finance itself. There is no other legal finance provider that has got a greater cost coverage than ourselves.

Speaker #3: And I'll just add to that, Peter, that your comment that was comparing us to the more broader asset manager's where actually the best cost coverage within the legal finance itself, there's no other legal finance provider that's got a greater cost coverage than ourselves.

Speaker #1: Right. Can I just, if I just want to jump to slide 31—which has got the two, sort of slide 16 and 17, next to one another.

Peter Meichelboeck: Right. I just want to jump to slide 31, which has got the two, well, slide 16 and 17 next to one another. If I am looking at the investment proceeds number on Slide 16, the 350.5. If I go further down, there are some investments that they recognize, which I think are the 15 mil, which I think is the non-fair value stuff.

Speaker #1: If I'm looking at the investment proceeds number on slide 16—the $350.5—and then if I go further down, there are some investments that they recognize, which I think are the $15 million, which I think is the non-fair value stuff.

Speaker #1: And then.

David Breeney: That is correct.

Speaker #3: That's great.

Speaker #1: Yeah, and then there's the investment cost and amortization further down, of the sort of minus $47.8 million. So if I'm sort of looking at that, and then I look across to the other side, to the investment proceeds there of the $54.1 million, I'm just trying to clarify, is that $54.1 million on the left-hand side, is that a gross or a net number?

Peter Meichelboeck: Yeah. Then there is the investment cost and amortization further down of the minus AUD 47.8. So if I am looking at that, then I look across to the other side to the investment proceeds there of the AUD 54.1. I just want to clarify, is that AUD 54.1 on the left-hand side, is that a gross or a net number? Is it after all the litigation costs? Is it net, or is it a gross number? Just trying to reconcile that.

Speaker #1: Is it after all the litigation costs? Is it net, or is it a gross number? I'm just trying to reconcile that.

Speaker #3: That is cash proceeds that's received. So, that is the gross number of cash that has come in the door, on our assets, on an OBL-only level.

David Breeney: That is cash proceeds that is received. So that is the gross number of cash that has come in the door on our assets at an OBL-only level. So not gross for the portfolio, but gross for OBL.

Speaker #3: So, not gross for the portfolio, but gross for OBL.

Speaker #1: Right. And what would the sort of net number for that 54 be? Is that 54.1? Is that somewhere in the pack somewhere?

Peter Meichelboeck: Right. What would the net number for that 54 be? Is that AUD 54.1? Is it somewhere in the pack somewhere?

Speaker #3: That's not in this deck because, effectively, that would have been expenditure in a prior year.

David Breeney: That is not in this deck, because effectively that would have been expenditure in a prior year.

Speaker #2: I think, Peter, you're comparing a cash number with an accounting number. I think it's difficult to hear.

Raymond van Hulst: I think, Peter, you are comparing a cash number with an accounting number. That is, I think, difficulty here.

Speaker #3: Oh, right. Okay.

Peter Meichelboeck: Oh, right. Okay. Yeah. Okay. Because I thought that slide 17 stuff that is replicated there on 31, I thought that was a P&L, rather than the cash.

Speaker #1: Yeah, okay. Because I thought that slide 17 stuff that's replicated there on 31, I thought that was a P&L rather than a cash, but.

Speaker #3: Oh, and that's why there's a split between realized and unrealized.

David Breeney: That is why it is the split between realized and unrealized.

Speaker #1: Right.

Peter Meichelboeck: Right. Okay.

Speaker #3: The $54.1 million that comes through as realized is actually netted out in the unrealized portion.

David Breeney: AUD 54.1 that comes through realized, it actually is netted out in the unrealized portion.

Speaker #1: Right. Okay.

Peter Meichelboeck: Right. Okay.

Speaker #3: So it is a true look-through, and that's exactly why we back it out on the unrealized side—so it doesn't actually hit the P&L.

David Breeney: It is a true look-through, and exactly why we back it out in the unrealized side. It does not actually hit the P&L. It is cash one side, both sides of the balance sheet. Effectively one side cash, one side financial asset.

Speaker #3: It's cash one side, balance sheet both sides of balance sheet, effectively one side cash, one side financial asset.

Speaker #1: Right. Okay. And just the last one for me at this point. And apologies if you've actually sort of covered it in your presentation. But in terms of sort of dividends and where's the where are you thinking around that now in terms of sort of dividends going forward?

Peter Meichelboeck: Right. Okay. Just the last one from me at this point. Apologies if you have actually covered it in your presentation. But in terms of dividends, where are you thinking around that now in terms of dividends going forward, both the approach as well as a timeframe, et cetera?

Speaker #1: Sort of both the sort of the approach as well as sort of a timeframe, etc.?

Speaker #2: Yeah, I think that this goes back to what it was at slide 21. The one that is always the big question in our industry, and the most difficult one, depends on when large matters complete or when our book completes.

Raymond van Hulst: Yeah. I think that this is back on, what was it, slide 20, 21. The when is always the big question in our industry, and it is the most difficult one. It depends on when a large matter is complete or when our book completes. As our book is maturing, we feel increasingly comfortable that we will be generating significant cash from it. But will that be, in which quarter that will be or when exactly that will happen, we do not know. If it happens, it happens. That is the reality of legal finance. What we have done at the FY25 results is we have outlined in quite some detail the capital allocation policy. So at what levels do we start to distribute?

Speaker #2: As our book is maturing, we feel increasingly comfortable that we'll be generating significant cash from it, but when exactly that will be, or in which quarter that will happen, is still uncertain.

Raymond van Hulst: But will that be, in which quarter that will be or when exactly that will happen, we do not know. If it happens, it happens. That is the reality of legal finance. What we have done at the FY25 results is we have outlined in quite some detail the capital allocation policy. So at what levels do we start to distribute?

Speaker #2: We don't know. If it happens, it happens. That's the reality of legal finance. What we've done at the FY25 results is we've outlined, in quite some detail, the capital allocation policy.

Speaker #2: So at what levels do we start to distribute? And also, we'll decide at that moment, taking the tax situation into account and franking credits, etc.

Raymond van Hulst: Also, we will decide at such moment, taking the tax situation into account and franking credits, et cetera, how a distribution will be made, whether that is dividend or in any other possible way. So, it is probably exactly as triggered by David's question. If matters like that complete a few in a year, we will be in a position to do that. But when exactly that happens, I really cannot say.

Speaker #2: How a distribution will be made, whether that's a dividend or in any other possible way. So, it's probably exactly as, or as triggered by, David's question.

Speaker #2: If matters like that complete—a few in a year—we'll be in a position to do that. But when exactly that happens, I really can't say.

Speaker #1: Right. Thank you.

Peter Meichelboeck: Great. Thank you.

Speaker #2: Thanks, Peter.

David Breeney: Thanks, Peter.

Speaker #1: The next question comes from the line of Martin Byers with Moelis. Please go ahead.

Operator 2: The next question comes from the line of Martin Byers with Moelis. Please go ahead.

Operator: The next question comes from the line of Martin Byers with Moelis. Please go ahead.

Speaker #4: Morning, guys. Just with respect to commitments and fair value, it looks like in FY26 you had $712 million of new commitments, but it only created $560-odd million of fair value.

Martin Byers: Morning, guys. Just with respect to commitments and fair value, it looks like in FY26, you had AUD 712 million of new commitments, but it only created AUD 560 odd million of fair value. Can you just help us explain that a little bit better, given the historical relationship as being closer to one-on-one, please?

Speaker #4: Can you help us explain that a little better, given that historically, the relationship has been closer to a one-to-one basis?

Speaker #2: Yes, good question. So this is actually quite interesting. With the diversification into other types of investments, like more credit and structured finance, what we're seeing is that the opportunity set has more cases that have shorter durations.

Raymond van Hulst: Yes, good question. This is actually quite interesting. With the diversification into other types of investments, more credit and structured finance, what we are seeing is that the opportunity set has more cases that have shorter durations and have lower risk associated with it because they are cross-collateralized portfolios, et cetera. If they are shorter duration and somewhat lower risk, then the fair value associated with it will be lower as well. But the benefit it has is that given that we are in a new fund series, if it completes early, it will allow us to recycle that. What we are increasingly seeing is that we more or less have two buckets of types of investments.

Speaker #2: And have lower risk associated with it because they're cross-collateralized portfolios, etc. If they're shorter duration and somewhat lower risk, then the fair value associated with it will be lower as well.

Raymond van Hulst: If they are shorter duration and somewhat lower risk, then the fair value associated with it will be lower as well. But the benefit it has is that given that we are in a new fund series, if it completes early, it will allow us to recycle that. What we are increasingly seeing is that we more or less have two buckets of types of investments.

Speaker #2: But the benefit it has is that, given that we're in a new fund series, if it completes early, it'll allow us to recycle that.

Speaker #2: So what we're increasingly seeing is that we more or less have two buckets of types of investments: the historical, classic, single-case investments, where we still focus on that one-to-one range.

Raymond van Hulst: The historical classic single case investments, which will where we still focus on that one-to-one range, then more the structured legal investments or structured finance legal investments, where we have shorter durations, more of a portfolio-type approach, higher velocity, but therefore also somewhat lower fair value. We are starting to see that in the Series Two already. We start to see quite a few matters that have completed or are completing earlier than we have seen in the Series One. That number or the two numbers you mentioned, the 712 and the 560, I believe, that is the blended average of those two types of investments. I do not exclude that in future we will be separating that out more to make that clearer. Good point.

Speaker #2: And then more the structured legal investments or structured finance legal investments, where we have shorter durations, more of a portfolio-type approach, higher velocity, but therefore also somewhat lower fair value.

Speaker #2: We're starting to see that in Series 2 already. We start to see quite a few matters that have completed or are completing, earlier than we've seen in Series 1.

Raymond van Hulst: We start to see quite a few matters that have completed or are completing earlier than we have seen in the Series One. That number or the two numbers you mentioned, the 712 and the 560, I believe, that is the blended average of those two types of investments. I do not exclude that in future we will be separating that out more to make that clearer. Good point.

Speaker #2: And that number, or the two numbers you mentioned—D712 and the 560, I believe—that is the planned average of those two types of investments.

Speaker #2: I don't exclude that, in future, we will be separating that out more to make it clearer. But good point.

Speaker #4: And just thinking about capital allocation, you mentioned a lot of the opportunities that you're seeing in new geographies and strategies, etc. How are you thinking about that capital allocation versus potential capital return to shareholders, given where the current share price is?

Martin Byers: Just thinking about capital allocation. You mentioned a lot of the opportunities that you are seeing into new geographies and strategies, et cetera. How are you thinking about that capital allocation versus potential capital return to shareholders, given where the current share price is?

Speaker #2: Oh, I'm clearly with the shareholders. I'm a significant shareholder myself. And I think, as I've indicated, the capital allocation policy is pretty straightforward. It says when we will distribute, and the growth is to be realized within the framework of capital light.

Raymond van Hulst: Well, I am clearly with the shareholders. I am a significant shareholder myself, and I think as I have indicated, the capital allocation policy is pretty strict. It says when we will distribute, and the growth is to be realized within the framework of capital light. If we expand somewhere, it is from the start rather than start at very low cost coverage and grow into that. So, cost coverage and capital light, and therefore preserving capital so that we can do of the agenda.

Speaker #2: And if we expand somewhere, it starts from the start, rather than starting at a very low cost coverage and growing into that. So, cost coverage and capital light, and therefore preserving capital.

Speaker #2: So that we can go over the agenda.

Speaker #4: Okay. Thanks, Raymond.

Martin Byers: Okay. Thanks, Raymond.

Speaker #1: The next question comes from the line of Mark Southwell with Select Equities. Please go ahead.

Operator 2: The next question comes from the line of Mark Southwell-Keely with Select Equities. Please go ahead.

Operator: The next question comes from the line of Mark Southwell-Keely with Select Equities. Please go ahead.

Speaker #4: Hi there, can you hear me, guys?

Mark Southwell-Keely: Hi there. Can you hear me, guys?

Speaker #3: Hi Mark.

Martin Byers: Hi, Mark.

Raymond van Hulst: Hi, Mark.

Speaker #2: Yeah. Loud and clear.

Martin Byers: Yeah, loud and clear.

David Breeney: Yeah, loud and clear.

Speaker #4: Firstly, congratulations on the tenure of the company in terms of its corporate life and the ASX listing. And thank you for taking a second question from our firm.

Mark Southwell-Keely: Firstly, congratulations on the tenure of the company in terms of its corporate life and the ASX listing.

Raymond van Hulst: Thank you.

Mark Southwell-Keely: Yeah. Thank you for taking a second question from our firm. I really appreciate that. Can I just ask just a quick revision, if that's okay, because I do find it a little difficult in terms of the complexity of the accounts. Trying to follow and track and just if you wouldn't mind a quick revision, just in terms of the Fund One sale and transaction. Following that transaction, has OBL received any further cash? If so, how much? Also, how much capital is still at work with respect to the entity that still exists pursuant to that transaction?

Speaker #4: I really appreciate that. Can I just ask a quick revision, if that's okay? Because I do find it a little difficult in terms of the complexity of the accounts.

Speaker #4: I'm trying to follow and track. I'm just wondering if you wouldn't mind giving a quick revision, just in terms of the Fund 1 sale and transaction.

Speaker #4: Following that transaction, has OBL received any further cash? If so, how much? And also, how much capital is still at work with respect to the entity that still exists pursuant to that transaction?

Speaker #2: So the fund one sits in a gross fair value of the portfolio, and it sits in the OBL-only fair value in there. What we don't do, because funds that are in harvest will have often only single cases or a few cases attached to them, is link particular cash amounts to funds, as that would indicate how we value cases, and that's very commercially sensitive information.

Raymond van Hulst: The Fund One sits in a gross fair value of the portfolio, and it sits in the OBL only fair value in there. What we don't do, because funds that are in harvest will have often only single cases or a few cases attached to them. Linking particular cash amounts to funds will indicate how we value cases, and that's very commercially sensitive information. We don't separate out how much is allocated to either a fund or a case. We can't do that, and so that also covers for or applies to the Fund One transaction. But it's part of what sits in the OBL only gross book and the Sorry, in the OBL gross book and in the OBL only part of the book. I'm sorry I can't give you more detail on that.

Speaker #2: So, we don't separate out how much is allocated to either a fund or a case, and we can't do that. And so, that also covers—or applies to—the Fund 1 transaction.

Raymond van Hulst: We can't do that, and so that also covers for or applies to the Fund One transaction. But it's part of what sits in the OBL only gross book and the Sorry, in the OBL gross book and in the OBL only part of the book. I'm sorry I can't give you more detail on that.

Speaker #2: But it's part of what sits in the OBL only gross book and the sorry, in the OBL gross book and in the OBL only part of the book.

Speaker #2: I'm sorry, I can't give you more detail on that.

Speaker #4: Just in terms of, has OBL actually received any further cash following the transaction, between then and now?

Mark Southwell-Keely: Just in terms of has OBL actually received any further cash following the transaction between then and now?

Speaker #2: I honestly don't know the exact answer to that. I know that there are cases in there that have been successful.

Raymond van Hulst: I honestly do not know the exact answer to that. I know there are cases in there that have been successful. I do not know what the exact split is on that, so I cannot give you that answer right now.

Speaker #2: I don't know what the exact split is on that, so I can't give you that answer right now.

Speaker #4: Okay. Thank you.

Mark Southwell-Keely: Okay. Thank you.

Speaker #2: Thanks, Mark.

Martin Byers: Thanks, Mark.

Raymond van Hulst: Thanks, Mark.

Speaker #1: The next question comes from the line of David Fraser with MSC Financial. Please go ahead.

Operator 2: The next question comes from the line of David Fraser with MSD Financial. Please go ahead.

Operator: The next question comes from the line of David Fraser with MSD Financial. Please go ahead.

Speaker #3: Guys, sorry, just one more question. Series 2 Funds 4 and 5—you've completed the capital raise now, so that's great. I was just wondering, how many commitments have you made from the new Series 2?

David Fraser: Guys, sorry, just one more question. Series Two, Fund Four and Five, you have completed the capital raise now, so that is great. I was just wondering, how many commitments have you made from the new Series Two, and how much capital has been allocated? And then, I guess, how much has been deployed? Is the pickup in deployments forecast for 2027 a reflection of the fact that you will be deploying 20% of an investment rather than through the Fund Nine, which was significantly smaller?

Speaker #3: And how much capital has been allocated? And then, I guess, how much has been deployed? And is the pickup in deployments forecast for '27 a reflection of the fact that you'll be deploying 20% of an investment, rather than through Fund Nine, which was significantly smaller?

Speaker #2: So I refer to the analyst slide 17—that will give...

Raymond van Hulst: I refer to the analyst fact sheet Slide 17, that will give you some insight into that. I think the more important part is the second leg of your question. The answer to that is no. A significant part of that AUD 712 million is sidecar capital, where the OBL balance sheet exposure or the co-investment will be zero. What we typically see is that on those deals, the funds will be cornerstones starting the investment, taking a AUD 10 million investment into, let us say, a AUD 50 million or AUD 75 million overall investment, and then the remainder comes from sidecar capital. Our co-invest would then be limited to that AUD 10 million piece, with all the remaining capital at 0% co-invest coming from sidecar capital. So you certainly cannot apply the 20% co-invest to that. It is very materially lower than that.

Speaker #1: View

Speaker #2: There's some insight in that. But I think the more important part is the second leg of your question. So the answer to that is no. We are a significant part of that.

Speaker #2: 712 million is sidecar Capital , where where the balance sheet exposure to co-investment will be zero . But we typically see is that on those deals , the fund , the funds will be a cornerstone in the investment .

Raymond van Hulst: What we typically see is that on those deals, the funds will be cornerstones starting the investment, taking a AUD 10 million investment into, let us say, a AUD 50 million or AUD 75 million overall investment, and then the remainder comes from sidecar capital. Our co-invest would then be limited to that AUD 10 million piece, with all the remaining capital at 0% co-invest coming from sidecar capital. So you certainly cannot apply the 20% co-invest to that. It is very materially lower than that.

Speaker #2: Taking a 10 million investment into , let's say , a 50 million or 75 million . Overall investment . And then the remainder comes from from sidecar capital .

Speaker #2: And so our Co-invest would then be limited to that $10 million piece, with all the remaining capital at 0% Co-invest coming from sidecar capital.

Speaker #2: So you certainly can't apply a 20% co-invest to that. It is very materially lower than that.

Speaker #3: Okay, great. Thanks, Simon.

David Fraser: Okay, great. Thanks, Raymond.

Speaker #4: The next question comes from Kevin Ong with Amital Capital. Please go ahead.

Operator 2: The next question comes from Kevin Ong with Amatel Capital. Please go ahead.

Operator: The next question comes from Kevin Ong with Amatel Capital. Please go ahead.

Speaker #5: Hey . Hi , Raymond . Kevin here . Hey , you . You spoke about consolidation in the industry , and I'm thinking this improves both the LFA side of of terms .

Kevin Ong: Hey. Hi, Raymond. Kevin here. You spoke about consolidation in the industry, and I am thinking this improves both the LFA side of terms, but it also improves the fund terms that you get with your LPs. If I look at slide 16, management fees, for example, you can see how the 2% of management fee in the past used to be on active deployments, now it is on active commitments. Just wondering, do you see these terms changing looking forward given the industry consolidation? Thanks.

Speaker #5: But it also improves the fund terms that you get with your LPs . And if I look at like if I look at slide 16 , management fees , for example , you can see how the 2% of management fee in the past used to be on active deployments Now it's on active commitments Just wondering , do you see these terms changing , looking forward , given the industry consolidation , thanks

Raymond van Hulst: Thanks, Kevin. I think yes. What we are seeing is the consolidation is driven by two things. I think there was generally, in certain pockets of the market, too much capital chasing a limited set of deals. That is where the competition part falls away. I think the larger allocators that have been allocating to this industry, they like the assets, they like how that works, but they also acknowledge that in order to do this strategy well, you need a sustainable platform. This is a strategy that is not based on deployments, but is based on commitments. If you pay fees on deployments, you essentially incentivize people to deploy. Pushing money out of the door in legal finance is not necessarily the best recipe to get the best returns.

Speaker #2: Thanks . Thanks , Kevin . I think yes , what we're seeing is consolidation is driven by two things . I think that was generally In certain pockets of the market , too much capital chasing a limited set of deals .

Speaker #2: And that's where the competition part falls away I think the larger allocators that have been allocating to this industry , they like the assets , they like how that works , but they they also acknowledge that in order to do strategy well , you need a sustainable platform .

Speaker #2: And this is a strategy that . It's not based on deployments , but it's based on commitments . So if you if you pay fees on deployments , you essentially incentivize people to deploy and pushing money out of the door and in legal finance is not necessarily the best recipe to get the best , best returns .

Raymond van Hulst: This is a strategy that is not based on deployments, but is based on commitments. If you pay fees on deployments, you essentially incentivize people to deploy. Pushing money out of the door in legal finance is not necessarily the best recipe to get the best returns.

Speaker #2: So basing a management fee over commitments rather than deployments gives the right incentive and ensures that the platforms are long term sustainable . And I think that's a that's part of the learning that's taking place over the last decade .

Raymond van Hulst: Basing a management fee over commitments rather than deployments gives the right incentive, and ensures that the platforms are long-term sustainable. I think that is part of the learning that has taken place over the last decade, I guess, in the industry and makes that the larger allocators are supportive of that. Does that address your question?

Speaker #2: I guess , in the industry . And , and makes that the larger allocators are supportive of that Does that address .

Speaker #5: Your question? Do you see any further changes given the consolidation?

Kevin Ong: Do you see it changing any further given consolidation?

Raymond van Hulst: I hope so. It is certainly something that we will be trying to do. I think that is always a and I will tread into sensitive territory here. There is always the commercial tension between allocators who would like to pay as low as possible fees and platforms that want to get higher fees and get platform coverage. My personal view is that a platform should be sustainable and get very close or at that 100% level. I do not think it is healthy for a platform to be just profitable on management fees. But it is also not healthy for a platform to be structurally significantly below 100% cost coverage. I think there is general agreement among the informed parties in the market that that is the equilibrium we are going to.

Speaker #2: I—I hope so. It's certainly something that we'll be trying to do. I think that's always a threat, and we're into sensitive territory here.

Speaker #2: There's always the commercial tension between allocators who would like to pay as low as possible fees and and platforms that want to . Get higher fees and get platform coverage My personal view is that a platform should be sustainable and get very close , or at that 100% level , I don't think it is healthy for a platform to be just profitable on , on , on management fees But it's also not healthy for platform to be structurally significantly below 100% cost coverage .

Raymond van Hulst: I do not think it is healthy for a platform to be just profitable on management fees. But it is also not healthy for a platform to be structurally significantly below 100% cost coverage. I think there is general agreement among the informed parties in the market that that is the equilibrium we are going to.

Speaker #2: And I think there is general agreement amongst the parties in the market that that's the equilibrium we're going to.

Speaker #5: Got it , got it . Okay , one one final follow up on on this question If you assume that the current fee structure stays , you , you can get all your confident of getting to your 70% target .

Kevin Ong: Got it. Okay. One final follow-up on this question. If you assume that the current fee structure stays, you are confident of getting to your 70% target, so you do not need any changes in the fee structure to get there. Is that right?

Speaker #5: So you don't need any changes in the fee structure to get there. Is that right?

Speaker #2: No, that's right. So I think the last time we agreed on a fee structure on Deployed was back in 2016 or 2017.

Raymond van Hulst: No, that is right. The last time we have agreed a fee structure on deployed is back in 2016 or 2017. Ever since, we have not done that. With the new structures in place and with the AUM growth and the consolidation that we see within the industry, that all is tracking towards achieving that 100% cost coverage over time, at the current fee levels.

Speaker #2: And ever since , we we haven't done that . And , and so with the new structures in place and with the growth and the consolidation that we see within the industry , that all is tracking towards achieving that 100% cost coverage over time at the current fee levels

Speaker #5: Got it . Thank you

Kevin Ong: Got it. Thank you.

Speaker #4: Thank you. There are no further questions at this time. I will now hand back to Mr. Van Hulse for closing remarks.

Operator 2: Thank you. There are no further questions at this time. I will now hand back to Mr. van Hulst for closing remarks.

Operator: Thank you. There are no further questions at this time. I will now hand back to Mr. van Hulst for closing remarks.

Raymond van Hulst: Well, thank you all for sitting through this with us. We've taken quite a bit of time. Hopefully, we've answered all of your questions. If there are any follow-up questions, then please don't hesitate to reach out. With that, we'll now end the call. Thank you, everyone.

Speaker #2: Well, thank you all for sitting through this with us. We've taken quite a bit of time. Hopefully, we've answered all of your questions.

Speaker #2: If there are any follow up questions , then please don't hesitate to to reach out . And with that , we'll we'll now end the call .

Speaker #2: Thank you, everyone. Thank you.

David Fraser: Thank you.

David Breeney: Thank you.

Operator 2: That does conclude our conference for today. Thank you for participating. You may now disconnect.

Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.

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