Burford Capital : 2022 Business Update | MarketScreener

Notice & disclaimer

This presentation (this “Presentation“) provides certain information to facilitate review and understanding of the business, results of operations and financial position of Burford Capital Limited and its subsidiaries (the “Company” or “we“, “our” or “us“) for the year ended December 31, 2022 and does not

purport to be a complete description of the Company’s business, results of operations or financial position. The information contained in this Presentation is provided as at the dates indicated in this Presentation and is subject to change without notice.

Burford is in the process of preparing its audited financial statements for the year ended December 31, 2022, including the impact of potential changes to Burford’s fair value methodology on its portfolio. Final audited financial statements and other disclosures will be reported in Burford’s Annual Report on Form 20-F for the year ended December 31, 2022 and may differ materially from prior disclosures as a result of Burford’s new fair value methodology. None of the financial data in this presentation would be affected by a change in Burford’s fair value methodology, whether prospective or retrospective.

Forward-lookingstatements. In addition to statements of historical fact, this Presentation contains “forward-looking statements” within the meaning of Section 21E of the US Securities and Exchange Act of 1934, as amended. The disclosure and analysis set forth in this Presentation include assumptions, expectations, projections, intentions and beliefs about future events in a number of instances, particularly in relation to the Company’s operations, cash flows, financial position, plans, strategies, business prospects, changes and trends in the Company’s business and the markets in which it operates. These statements are intended as “forward-looking statements”. In some cases, predictive, future-tense or forward-looking words such as “aim”, “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intend”, “may”, “plan”, “potential”, “predict”, “projected”, “should” or “will” or the negative of such terms or other comparable terminology are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. In addition, the Company and its representatives may from time to time make other oral or written statements which are forward-looking statements, including in the Company’s periodic reports that the Company files with, or furnishes to, the US Securities and Exchange Commission (the “SEC“), other information sent to the Company’s security holders and other written materials. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance and are based on numerous assumptions, expectations, projections, intentions and beliefs and that the Company’s actual results of operations, including its financial position and liquidity, and the development of the industry in which the Company operates, may differ materially from (and be more negative than) those made in, or suggested by, the forward-looking statements contained in this Presentation. In addition, even if the Company’s results of operations, including its financial position and liquidity, and the development of the industry in which the Company operates, are consistent with the forward-looking statements contained in this Presentation, those results of operations or developments may not be indicative of results of operations or developments in subsequent periods. Factors that might cause future results of operations or developments to differ include, among others, the following: (i) adverse

litigation outcomes and timing of resolution of litigation matters; (ii) the Company’s ability to identify and select suitable legal finance assets to fund; (iii) improper use or disclosure of, or access to, privileged information under the Company’s control due to cybersecurity breaches, unauthorized use or theft;

1. innaccuracy or failure of the statistical models and decision science tools the Company uses to predict the return on its legal finance assets; (v) changes and uncertainty in laws, regulations and rules relating to the legal finance industry, including those relating to privileged information; (vi) inadequacies in the Company’s due diligence process or unforeseen developments; (vii) credit risk and concentration risk relating to the Company’s legal finance assets; (viii) lack of liquidity of the Company’s legal finance assets and commitments that are in excess of its available funds; (ix) the Company’s ability to obtain attractive external capital or to refinance its outstanding indebtedness and the Company’s ability to raise capital to meet its liquidity needs; (x) competitive factors and demand for the Company’s services and capital; (xi) negative publicity or public perception of the legal finance industry or the
   Company; (xii) valuation uncertainty in respect of the fair value of the Company’s capital provision assets; (xiii) current and future legal, political and economic forces, including uncertainty surrounding the effects, severity and duration of public health threats; (xiv) potential liability from litigation and legal proceedings against the Company; (xv) the Company’s ability to retain key personnel; (xvi) improper functioning of the Company’s information technology systems or those of its third-party service providers; (xvii) impacts resulting from changes to the Company’s fair value methodology for capital provision assets, including any requirement to recast or restate historical financial statements; (xviii) the successful completion of audit and other procedures and other conditions necessary to issue the Company’s financial statements and file its Annual Report on Form 20-F for the year ended December 31, 2022 with the SEC; and (xix) other factors discussed under the heading “Risk factors” in the Company’s annual report on Form 20-F for the year ended December 31, 2021. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. Further, the Company cannot assess the impact of each such factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. Except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statements contained in this Presentation, whether as a result of new information, future events or otherwise.

In addition to forward-looking statements, this Presentation includes certain data based on calculations derived from the Company’s internal modeling of individual matters and its portfolio as a whole. This data is not a forecast of future results, and past performance is not a guide to future performance. The inherent volatility and unpredictability of legal finance assets precludes forecasting and limits the predictive nature of the Company’s internal modeling. Further, the inherent nature of probabilistic modeling is that actual results will differ from the modeled results, and such differences could be

material. The data based on calculations derived from the Company’s internal modeling contained in this Presentation is for informational purposes only and is not intended to be a profit forecast or be relied upon as a guide to future performance.

Basis of presentation; non-GAAPfinancial measures; alternative performance measures; definitions. The Company reports its financial results in accordance with the generally accepted accounting principles in the United States (“US GAAP“). US GAAP requires the Company to present financial statements that consolidate some of the limited partner interests in private funds the Company manages as well as assets held on the Company’s balance sheet where it has a partner or minority investor. As a result, the Company uses various measures, including Burford-only and Group-wide financial measures, which are calculated and presented using methodologies other than in accordance with US GAAP, to supplement analysis and discussion of its consolidated financial statements prepared in accordance with US GAAP. The Company also uses additional non-GAAP financial measures, such as cash receipts and tangible book value attributable to Burford Capital Limited per ordinary share, and certain unaudited alternative performance measures (“APMs“). The presentation of the APMs is for informational purposes only and does not purport to present what the Company’s actual financial position or results of operations would have been, nor does it project its financial position at any future date or its results of operations for any future period. The presentation of the APMs is based on information available at the date of this Presentation and certain assumptions and estimates that the Company believes are reasonable.

Additional information about these non-GAAP financial measures and APMs, their respective definitions and calculations and certain reconciliations are provided in the Company’s annual report on Form 20-F for the year ended December 31, 2022 and “Reconciliations” section of this Presentation. The Company believes that the presentation of Burford-only financial measures is consistent with how management measures and assesses the performance of the Company’s reporting segments, which are evaluated by management on a Burford-only basis, and that it provides valuable and useful information to investors to aid in understanding its performance in addition to the US GAAP consolidated financial reporting by eliminating the effect of the consolidation of some of the limited partner interests in private funds the Company manages as well as assets held on its balance sheet where the Company has a partner or minority investor. The Company believes that the presentation of Group-wide financial measures, including Group-wide information on the Company’s capital provision assets and undrawn commitments, is useful to investors because they convey the scale of its existing (in the case of Group- wide capital provision assets) and potential future (in the case of Group-wide undrawn commitments) business and the performance of all legal finance assets originated by the Company. Although the Company does not receive all of the returns of its private funds, the Company does receive management and performance fees as part of its income. Further, the Company believes that Group-wide portfolio metrics, including the performance of its private funds, are important measures by which to assess its ability to attract additional capital and to grow its business, whether directly or through private funds. These non-GAAP financial measures should not be considered as a substitute for, or superior to, financial measures calculated in accordance with US GAAP.

Industry and market data. Any industry and market information contained in this Presentation, or on which this Presentation is based, has been obtained from sources that the Company believes to be reliable and accurate. However, no representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information or opinions contained in this Presentation, which information and opinions should not be relied or acted on. Neither the Company, its affiliates nor any officer, director, employee or representative of the Company or its affiliates accepts any liability whatsoever for any loss howsoever arising, directly or indirectly, from any use of this Presentation or its contents.

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This Presentation does not constitute or form part of, and should not be construed as, an issue for sale or subscription of, or solicitation of any offer or invitation to subscribe for, underwrite or otherwise acquire or dispose of any securities of the Company or any of its affiliates, nor should this Presentation or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever which may at any time be entered into by the recipient nor any other person, nor does this Presentation constitute an invitation or inducement to engage in investment activity under Section 21 of the Financial Services and Markets Act 2000, as amended. This Presentation does not constitute an invitation to effect any transaction with the Company or any of its affiliates or to make use of any services provided by the Company.

Strong 2022 operating performance; expected turning point in 2023

Litigation continues to normalize after pandemic-driven disruption

• Meaningful upswing in portfolio activity as courts resume fully normal operations post-pandemic – more than 30 trials and final merits hearings1 already scheduled for 2023 (only 11 occurred in 2022)
• Early 2023 successes: settlement paid cash of $90 million to Burford Group-wide; trial win would result in $67 million of proceeds Group-wide if paid in full; arbitration award would result in $52 million of proceeds to one of our private funds if paid in full; successful appellate resolution would result in approximately $400 million of proceeds Group-wide and approximately $100 million on a Burford-only basis
• Burford-onlycapital provision-direct realizations of $350 million in 2022, up 33% from 2021

Increased modeled Burford-only implied realizations

• Expected realizations from Burford-only capital provision-direct portfolio of $4.6 billion at year-end 2022 (2021: $3.8 billion), excluding YPF-related assets2
• $900 million in modeled realized gains added from new business in 20222

Strong 2022 with meaningful cash generation and portfolio activity

• Robust cash receipts3 of $328 million on a Burford-only basis, up 17% from 2021, and we expect meaningful cash inflows as case resolutions accelerate
• Partial realization in 2H 2022 of 2021 vintage global antitrust portfolio matter generated $52 million in Burford-only realized gains, a 42% IRR

Record-breaking levels of new business as we continue to pivot in favor of balance sheet investing for our highest returning assets

• Produced more than $1 billion in Group-wide new commitments in 2022 and 2021
• Record level Burford-only capital provision-direct deployments of $457 million, reflecting increased allocation to our balance sheet, and up 94% excluding the global antitrust portfolio matter in 2021

Strong capital raising and solid liquidity

• Raised more than $1 billion in new external capital in 2022, including closing of two new private funds and a new senior unsecured debt issuance
• Burford-onlycash and cash equivalents and marketable securities totaled $210 million at year-end 2022