#1Australian Family Lawyers FY20 RESULTS INVESTOR PRESENTATION August 2020 www.australian familylawyers.com.au#2Table of contents 01 About Us 02 Industry Overview 03 FY20 Highlights 04 FY20 Results 05 Strategic Review Australian Family Lawyers 1#301 ABOUT US Australian Family Lawyers#4Australia's largest specialised family law firm We help our customers get better outcomes by providing counsel and resolution on complex family matters 8 offices Adelaide 1. FY17-FY20 CAGR (compounded annual growth rate) Sunshine Coast (2) Brisbane 36 employees Sydney Canberra Melbourne (2) Australian Family Lawyers LawyersWeekly AUSTRALIAN LAW AWARDS FINALIST NewLaw Firm of the Year 2020 ர்க்ஸ் +50% revenue growth p.a.¹ ~1% market share LawyersWeekly AUSTRALIAN LAW AWARDS FINALIST Law Firm of the Year 2020 3#5We have disrupted the way law firms find customers... We utilize digital marketing techniques used in other online industries to attract customers in the family law industry Australian Family Lawyers Call now Australian Family Lawyers Providing counsel and resolution on complex family matters Let's work together to create the best solution. W HEAP salesforce Australian Family Lawyers Google Tag Manager Google Optimize Book a consultation → At Australian Family Lawyers, we operate exclusively in family law. It's our job to understand the emotional challenges and sensitive nature of family disputes. Our team can help guide you towards certainty. wpengine 2 G G Device type CLOUDFLARE Delacon salesforce ☑ Engagement Medium Business metrics Referrer لشام Australian Family Lawyers Mobile first An optimised experience for small screens Google Analytics Performance An architecture built for fast page loads and content delivery Technology Introducing an ecosystem of world class integrated technology for scalability and business insights Insights End to end behavioural and sales reporting for ongoing optimisation New vs Returning Customer Revenue 4#6Timeline since inception AFL was founded in 2015 and has rapidly expanded to 8 offices since the IPO in June 2019 2017: Sydney office opened FEBRUARY 2019: Opening of Mornington office via acquisition of Walls Bridges Lawyers 2015: 2018: AFL was founded in Melbourne JUNE 2019: AFL lists on the ASX AUGUST 2019: Roll out of new service offering: Binding Financial Arrangements (Pre-Nuptial agreements) FEBRUARY 2020: Opening of Canberra office Lateral hire in Brisbane JUNE 2020: Signed agreement with Stowe Family Lawyers in the UK Opening of 2 x Sunshine Coast offices Moved to larger premises in Opening of Brisbane office via Melbourne acquisition of NSF Solicitors Australian Family Lawyers APRIL 2020: Introduction of AFL Assist JANUARY 2020: Launch of AFL 2.0 Lateral hire in Melbourne AUGUST 2020: Opening of Adelaide office 5#71. 2. We have delivered strong growth since IPO in June 2019 Strong growth has been delivered on FY19 performance across all key operational metrics Revenue $6.9m +39% Growth on FY19 Gross Profit $3.6m +58% Growth on FY19 Operating EBITDA¹ $2.6m +52% Growth on FY19 Underlying EBITDA² $1.7m +41% Growth on FY19 H2 FY20 recorded +48% growth on FY19 Record revenue and file openings in May 2020 and June 2020 respectively ✓ +6% margin expansion on FY19 Improved utilization of workforce was realized despite upfront cost impact of 4 new offices in FY20 Strong revenue growth is now building scale and delivering operating leverage on largely fixed overhead base ✓ Upside from new offices launched in H2 and roll out of AFL 2.0 is yet to be realized ✓ No material impact from COVID at this stage +34% growth in file openings versus FY19 reflects robust pipeline for FY21 Operating EBITDA adjusts the Appendix 4E statutory EBITDA for the 12 month period ending 30 June 2020 to include the removal of non recurring or unusual costs, removal of head office costs and costs associated with being listed on the ASX Underlying EBITDA adjusts the Appendix 4E statutory EBITDA for the 12 month period ending 30 June 2020 to include the removal of non recurring or unusual costs Australian Family Lawyers 6.#8Historical revenue and EBITDA Strong historical CAGR³ growth in both revenue and EBITDA since FY2017 Revenue¹ $m 80 7 6 5 +50% CAGR Growth 4 3 2 123 1. 2. 3. 1 2.1 O FY17 5.0 4.2 FY18 FY19 Underlying EBITDA² $m 2.0 1.8 1.6 1.4 1.2 1.0 6.9 0.8 FY20 0.6 90 0.4 0.2 00 0.1 0.0 FY17 +150% CAGR Growth 0.7 FY18 1.2 12 Australian Family Lawyers 1.7 FY19 FY20 Total revenue in Appendix 4E for the 12 month period ending 30 June 2020 has been adjusted to include the removal of non recurring or unusual income items. FY17-FY19 revenue has been prepared on the same basis as the 12 months ending 30 June 2020 Underlying EBITDA for FY20 adjusts the Appendix 4E statutory EBITDA for the 12 month period ending 30 June 2020 to include the removal of non recurring or unusual costs. FY17-FY19 Underlying EBITDA has been prepared on the same basis as the 12 months ending 30 June 2020 Compounded annual growth rate 7#9Investment Highlights The largest specialised family law firm in Australia in less than 5 years Disrupting the way law firms acquire clients with its proprietary client acquisition engine $1.1bn+ potential market opportunity First mover advantage across client acquisition engine, use of technology and availability of capital in the family law market. Very large, highly fragmented industry ripe for consolidation with no national competitors Australian Family Lawyers ~1% market share lil +150% EBITDA CAGR (FY17-FY20) KI +50% Revenue CAGR (FY17-FY20) Management team / board with successful track record in professional services and online technology platform businesses Best-in-class client acquisition engine Undemanding valuation with strong potential ❤ Finalist x 2 Australian Legal Awards#1002 INDUSTRY OVERVIEW Australian Family Lawyers#11Family law is a very large, highly fragmented market Long-term stable volumes, an increase in defacto relationships and rising net household wealth = attractive market $1.1bn No market size national players Australian Family Lawyers In contrast to personal injury law, there is no dominant or national player in family law. This is despite the fact that the two markets are of a similar size +50,000 divorces per annum 3rd largest personal legal services market Big Opportunity 10 110#12Market exhibits defensive characteristics but with growth potential Long term stable volumes with tailwind drivers due to the increased prevalence of defacto relationships and growing asset pools Total Divorces | 2007 to 2018 60,000 Household Net Worth (000's) | FY2004 to FY2016 1,200 Australian Family Lawyers 50,000 40,000 30,000 5% spike post GFC Historically stable, recurring 20,000 volumes but understated due to exclusion of defacto relationships 10,000 0 1,000 800 600 400 200 Growing wealth, complexity and ability to pay 0 2007 2009 2011 2013 2015 2017 FY2012 FY2014 FY2016 FY2018 11#13Strong growth in online search volumes for "divorce" Google searches for the term "divorce" surged to their highest point in 12 months at the end of June 2020 Google Search Volumes: CY2018 v CY2019 +49% CY2018 CY2019 Google Australian Family Lawyers "I wouldn't be surprised if in the next year or two we see more couples file for divorce. Its consistent with what occurred after the global financial crisis" Courtney Mullen Australian Family Lawyers The Australian, July 2020 12#1403 FY20 HIGHLIGHTS Australian Family Lawyers#15Operational highlights Expanded business driving growth and delivering operational leverage across the platform HIGHLIGHTS - FY20 Australian Family Lawyers Strong revenue and file opening growth +39% and +34% versus pcp¹ respectively Strong Underlying EBITDA² and Operating EBITDA³ growth +41% and +52% versus pcp¹ respectively Doubled national footprint with 3 x lateral hires resulting in new office launches in Canberra (January 2020), Sunshine Coast x 2 (June 2020) and Adelaide (August 2020) 1. 2. 3. 23 Additional lateral hires secured (x2) in existing offices in Brisbane (January 2020) and Melbourne (April 2020) Improved client acquisition engine performance due to AFL 2.0 (+17% reduction in cost per lead in Q4 v Q3) Signed international partnership with Stowe Family Law (UK's largest family law firm) in June 2020 Prior corresponding period is prepared on the same basis as the 12 month period ending 30 June 2020 Underlying EBITDA adjusts the Appendix 4E statutory EBITDA for the 12 month period ending 30 June 2020 to include the removal of non recurring or unusual costs Operating EBITDA adjusts the Appendix 4E statutory EBITDA for the 12 month period ending 30 June 2020 to include the removal of non recurring or unusual costs, removal of head office costs and costs associated with being listed on the ASX 14#16Financial highlights Strong growth continued across all financial metrics. No impact from COVID at this stage Revenue¹ $6.9m Gross Profit $3.6m 39% Statutory EBITDA $1.0m v (0.01m) Gross Profit % 58% 52% 6% Operating EBITDA² Operating EBITDA % $2.6m 52% 38% 3% Underlying EBITDA³ $1.7m 41% Underlying EBITDA % 25% 1234 1. Total revenue in Appendix 4E for the 12 month period ending 30 June 2020 has been adjusted to include the removal of non recurring or unusual income items 2. 3. Operating EBITDA adjusts the Appendix 4E statutory EBITDA for the 12 month period ending 30 June 2020 to include the removal of non recurring or unusual costs, removal of head office costs and costs associated with being listed on the ASX Underlying EBITDA adjusts the Appendix 4E statutory EBITDA for the 12 month period ending 30 June 2020 to include the removal of non recurring or unusual costs 4. Prior corresponding period is prepared on the same basis as the 12 month period ending 30 June 2020 <1% Australian Family Lawyers 15#1704 FY20 RESULTS Australian Family Lawyers 9#18Profit & Loss Strong revenue growth is driving operational leverage across earnings metrics 1. 2. Australian Family Lawyers A$'000s Underlying Revenue¹ FY194 FY20 % change 4,950 6,893 39% Gross Profit 2,260 3,578 58% % Margin 46% 52% 6% Operating EBITDA² 1,723 2,626 52% Margin % 35% 38% 3% Underlying EBITDA³ 1,236 1,740 41% Margin % 25% 25% Statutory Revenue EBITDA NPAT 430 7,039 na (1,184) 1,014 na (1,204) 185 na Total revenue in Appendix 4E for the 12 month period ending 30 June 2020 has been adjusted to include the removal of non recurring or unusual income items Operating EBITDA adjusts the Appendix 4E statutory EBITDA for the 12 month period ending 30 June 2020 to include the removal of non recurring or unusual costs, removal of head office costs and costs associated with being listed on the ASX Commentary • . . Strong underlying growth driven by continued momentum in Sydney and Victoria and new office contribution from Brisbane during the period File openings continue to track strongly +34% versus pcp4 Minimal revenue impact in FY20 from new office openings in Canberra (February 2020) and Sunshine Coast (June 2020) First full year reporting period for the restructured AFL.ASX and therefore prior year statutory results are not representative of comparative performance Underlying EBITDA removes non recurring or unusual costs (e.g. new office establishment costs, share based payment incentives etc) Operating EBITDA removes head office costs and costs associated with being listed on the ASX to more accurately reflect the underlying operational performance and leverage of the business 3. Underlying EBITDA adjusts the Appendix 4E statutory EBITDA for the 12 month period ending 30 June 2020 to include the removal of non recurring or unusual costs 4. Prior corresponding period is prepared on the same basis as the 12 months period ending 30 June 2020 17#19Balance Sheet Robust balance sheet, record cash balance and no debt Australian Family Lawyers A$'000s Cash and cash equivalents Accounts receivable Other current assets FY19 FY20 1,050 1,555 2,002 1,802 56 Total current assets Deferred tax assets Right of use asset Plant and equipment Intangible assets Total assets Trade and other payables 3,109 3,497 126 465 727 38 68 6,644 6,732 9,917 11,490 1,112 1,471 Current tax liabilities 371 455 • Deferred tax liabilities 305 602 Deferred consideration 600 274 Lease liability - non interest bearing 770 Borrowings 282 21 Employee provisions 117 213 Total liabilites 2,787 3,806 Net assets Issued capital Reserves Retained profits Total equity 7,130 7,684 122,905 122,905 369 (115,775) 7,130 141 (115,590) 7,684 Commentary Cash balance strengthened to a record level of more than $1.5m at 30 June 2020 Strong operating cash flow of $1.6m generated for the FY20 period Balance sheet now carries the "right of use asset" and "lease liability” (non interest bearing) arising from implementation of AASB16 Bank debt facility of $0.5m remains available but has not been utilised since IPO Despite strong growth in revenue, accounts receivable balance has reduced due to enhanced policies and procedures post IPO Increasing intangible asset balance reflects the continued investment in the client acquisition engine, AFL 2.0 As at 31 July, deferred consideration owed to all vendors has been repaid 18#2005 STRATEGIC REVIEW Australian Family Lawyers#21Who are we? We want to be the first and largest global family law firm in the world CORE PURPOSE To become Australia's first and largest National Family Law Firm CORE VALUES BHAG SANDBOX Think Different; Fanatical customer focus; Under promise, over deliver; Act like an owner; Have fun, always First and largest global family law firm Related family law services Middle class Australians; capital cities and key regional towns Limited deferred / contingent matters; no single file more than 5% of revenue 3 YEAR TARGET ~10% market share across more than 10 locations in Australia Australian Family Lawyers 20#22What have we achieved since IPO? All FY20 annual priorities set at IPO have been completed Australian Family Lawyers LAUNCH AFL 2.0 Launched in January 2020 and has driven improved marketing performance in H2 (volume of leads and cost per lead) EXPAND INTO (1) NEW GEOGRAPHY RECRUIT (2) LATERAL HIRES Expanded into 4 new regions being Brisbane, Canberra, Sunshine Coast and Adelaide In addition to office expansion hires (x3), recruited 2x additional lateral hires in existing offices in Brisbane and Melbourne IMPLEMENT SALESFORCE AND STRENGTHEN THE MARKETING TEAM Salesforce implementation completed in January 2020 Created Marketing Advisory Board and appointed new Chief Marketing Officer ESTABLISH ADDITIONAL SERVICE LINES Launched Binding Financial Arrangements Launched AFL Assist due to COVID 21#23Where are we going? 3 Year Plan tracking ahead of schedule Australian Family Lawyers FY20 • Launch AFL 2.0 - #1 Priority • • • . Expand into (1) new geographic region Recruit (2) lateral hires Complete acquisition integrations Implement salesforce CRM and recruit dedicated sales team Establish additional services lines • FY21 Presence in all state and territories in Australia - #1 Priority Consolidate outcomes from AFL 2.0 to turbo charge organic growth Recruit (1) lateral hire per office Offshore non legal back of house functions Roll out new product and channel offerings (eg. online support, affiliates) FY22 Move into new "add-on" services (eg. funding) Expand into adjacent sectors (eg. wills and estates) • Assess larger scale acquisitions • Assess new jurisdictions ~10% market share of family law market in Australia Launch AFL 2.0 Exceeded Expectations Drive top-line Ahead of Schedule Build out platform 22 222#24Australian Family Lawyers THANK YOU 鳳