107.ASX IAW Nov 25 2010 14.49 Man. Dir. Address

8/9/2019 107.ASX IAW Nov 25 2010 14.49 Man. Dir. Address

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Annual General Meeting25th November 2010

Managing Director Graeme Fowler

The information contained in this document is not intended to be exhaustive and must be considered in conjunction with all other public availableinformation, as disclosed by the Company to the Australian Stock Exchange from time to time.


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A enda

The Last 12 Months

2010 Performance

Priorit ies & Outlook


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The Last 12 Months


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2010 Hi hli hts

Strong financial performance

Reported profit up 44%

Earnings per share up 33%

Fastest growing legal firm in Australia 2009 by fee income

BRW Fast Starter 2010

0.75 cents fully franked dividends

reng ene a ance ee

Improved operating cash flows Capital raising e uc on n an e


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2010 Performance


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Consistent Revenue Growth Track Record

41%Growth 53%Growth

2009/10$m

2008/09$m

2H 10$m

1H 10$m

2H 09$m

1H 09$m

Operating Revenue 23.87 16.94 12.28 11.59 9.35 7.59

Growth

$m


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Continued Profitabilit Im rovement

$m $m %

$m

$m %

pera ng evenue . . . .

Net Profit after Tax 0.85 0.59 44% 0.47 0.38 21%

Earnings per Share 1.18 cents 0.89 cents 33% 0.62 0.56 11%

Dividend per Share 0.75 0 Large 0.50 0.25 100%

Operating Cash Flows 1.45 (1.65) Large


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Anal sis of Balance Sheet

As at30 June 2010 As at30 June 2009$m $m

Cash 2.15 0.60

Borrowings

- Bank debt- Leasing, HP, Loans & Overdrafts

0.950.88

1.720.59

o a e . .

Gearing (net bank debt to equity) 6% 12%

or n rogress ne o prov s ons . .

Trade Debtors (net of provisions) 6.72 4.77

e ang e sse ac ng per are . cen s . cen s


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Business Overview & Strategy


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The Australian Le al Industr Big 6-10 firms dominate large

company market There is no market leader in mid

IMPLICATIONS

market, SME & HNW client segments Medium sized law firms headcount

30-60

Opportunity to develop

and grow a national

network of medium sized

lawyers Hard to provide broad services to clients

Hard to achieve growth (capital)

Industry revenue +$21bnOver 11,000 law fi rmsin Australia

Approx. 250 medium

rms

Opportunity for leadership

of mid market, SME &

Succession planning - young lawyersreluctant to buy into partnership

Increasing regulation & compliance

sized firms1000s of small fi rms

Pipeline of tuck-in

acquisitions

business

Small sized firms headcount < 20 Hard to be small staff, training,

Opportunity to improve

from cottage industry

,


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To 30 Law Firms b Revenue 2010

Rank Firm Revenue %

1 (2) Minter Ellison 503 2

2 (1) Mallesons 493 -11

3 (3) Freehills 477 -310 (11) Gadens 160 9

a er or on

20 (20) Griffith Hack 80 7

25 23 Holdin Redlich 57 -7

30 (29) Hall & Wilcox 35 11

Integrated 24 41

Source BRW September 2010


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Business Strategy

Limited number of member firms Capital cities and key regional areas across Australia e um s ze commerc a pr va e c en aw rms Specialist law firms in key growth segments 15-20 member firms over the next 5-10 years Mid market SME and hi h net worth client se ments

Selective and incremental - quality firms compatible with aspirations. Support growth and development of member firms

Or anic Tuck-in acquisition Scale businesses with competitive advantage in their markets

Im roved business erformance of member firms Leadership & management Business improvement best practices, benchmarking, knowledge sharing

Cross referral processes and external strategic relationships

Cost advantage through national procurement arrangements


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Core Philosophies

Selective approach to acquisitions Cultural fit

Attitude & objectives of Partners

Commitment to growth, improvement & working together

Quality & growth potential of firm

Freedom within boundaries Firms retain brand

rms con nue o eve op s ra egy manage e us ness

Focus on sustainable revenue growth and margin improvement

(not cost cutting or centralisation)

Performance based remuneration

Corporate provide strategic direction, boundaries, riskmanagement & support


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Developing a National Network

Law Central(Internet Based)

Talbot Olivier(Perth WA)

e rgy e ar ners p(Sydney NSW &Melbourne - VIC)

Brett Davies Lawyers(Perth WA)


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Range of servicesCorporate & Commercial

Commercial Litigation

Wealth Management

Wealth Protection

Insurance Services

Media & Defamation

Licensin Gamin & Hos italit

Superannuation

Taxation Litigation

isory

ts

Government Services

Insolvency & Corporate Recovery

Taxation Audits

Estate Planning & WillssAd

v

teCli

e

Workplace Relations

Taxation Litigation & Advice

Com liance & Re ulator

Succession Planning

Family

Pro ertu

sine

Priva

Dispute Resolution & Mediation

Mergers & Acquisitions

Employment/Workplace

Criminal

Mining, Energy & Resources On-line Legal Document Publishing


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Member Firm As irations

Above Businessar e

GrowthImprovement

ILHMember

rms

War forthe

War forTalent


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Priorities & Outlook


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Positioned For Growth

The Group is in a strong posit ion

Good businesses with strong positions in local markets

Building a strong culture like-minded people, common aspirations

Demonstrated ability to achieve strong revenue growth

Scope for business performance improvement

Long term commitment of Principals

a w n s - preva ng n ustry ssues

We are in the right place at the right t ime with the right strategy

row oppor un es or ex s ng rms are s gn can

Acquisition opportunities will continue to develop

e w emerge over e nex years as a ea er n ega serv ces


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Priorities

Support the growth & development of existing member firms

Extend geographic coverage selectively add to our network City & regional

Financial Performance Leveraging the network


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Outlook

Year to date performance in line with expectations 1st quarter operating cash f low - $340k

Expect growth in EPS


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Annual General MeetingNovember 2010

The information contained in this document is not intended to be exhaustive and must be considered in conjunction with all other public availableinformation, as disclosed by the Company to the Australian Stock Exchange from time to time.


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Item 2 Adopt the Remuneration Report

The Report is incorporated in the Directors Report.

The vote on this resolution is advisory only and does not bind theDirectors of the Company.

In favour 14,187,540

Against 185,834

Proxys Discretion 1,456,991

,


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Item 3 Re-election of Director Hon John Dawkins

In favour 14,270,082

Against 153,584

, ,

Abstain 4,000

Documents

107.ASX IAW Nov 25 2010 14.49 Man. Dir. Address