Hub24 Limited · ASX:HUB
Hub24 — 1H FY25 Earnings Presentation
32 slides from Hub24's earnings presentation, Feb 17, 2025
Slide 1: FY25 Half Year Results
FY25 Half Year Results 18 February 2025 Empowering better financial futures, together
Slide 2: Overview
Overview 1. Highlights & operating review Andrew Alcock, Managing Director 2. Financial results Kitrina Shanahan, Chief Financial Officer 3. Strategy & outlook Andrew Alcock, Managing Director 2
Slide 3: HUB24 – Australia's Best Platform 3rd year running
HUB24 – Australia’s Best Platform 3rd year running Australia’s best platform (3rd year running)1 #1 managed account capability (awarded to HUB24 in 8 of the last 9 years)1 Most impactful new enhancement – advice fee consent2 #1 for annual platform and retail superannuation net inflows3 #1 net inflow
Slide 4: Highlights & operating review
Highlights & operating review Andrew Alcock CEO & Managing Director 4
Slide 5: 1HFY25 financial highlights
1HFY25 financial highlights1 Revenue Underlying EBITDA² Total Statutory NPAT $33.2m Up 54% Group $195.2m 25% $77.6m 41% Underlying Platform $154.2m 29% $66.7m 39% NPAT2 $42.6m Up 40% Tech Solutions $38.0m 9% $13.8m 37% Interim Dividend 24.0cps Up 30% Fully franked4 Total FUA Platform FUA PARS FUA $1
Slide 6: 1HFY25 business highlights
1HFY25 business highlights Market leadership Innovation Future-ready Outperforming stronger industry growth Strategic alliance with Reach Investing in automation, to deliver with record half-year Platform net Alternatives to broaden access to quality, service & efficiency benefits inflows of $9.5 bi
Slide 7: Consistently delivering growth and shareholder value
Consistently delivering growth and shareholder value Funds under administration Group Revenue1 4-YR CAGR +42% 4-YR CAGR +53% Group UEBITDA1 4-YR CAGR +47% $130b Revenue UEBITDA $120b $220m $80m $110b $200m $100b $70m $180m $90b $60m $160m $80b $140m $50m $70b $120m $60b $40m $100m $50b $80m $30m $40
Slide 8: Recognised for innovation, customer service and product leadership
Recognised for innovation, customer service and product leadership • Overall Best Advice Platform3 • Overall Satisfaction3 • Best Adviser Experience3 • Best Client Experience3 • Ease of Onboarding3 • Best Investment Options3 • Best Online/Call Centre Support3 #1 Best Overall Platform1 #1 Overall Sat
Slide 9: Growing our market share
Growing our market share HUB24 ranked #7 by FUA as at September 2024 HUB24 increased market share 6.6% to 7.9% over last 12 months1 Top 10 platforms by FUA as at September 20241 12-month change in market share of top 10 platforms1 $250b 2.0% 19.2% Gaining market share Losing market share % refers to
Slide 10: Growing adviser base and increasing FUA per adviser
Growing adviser base and increasing FUA per adviser Advisers 4-YR CAGR +22% Market share increased from ~2% to ~8% over last 4 years2 31% of advisers use HUB241 #1 market share gains over last 12 months2 Advisers using HUB24 and FUA per adviser1 HUB24 custody FUA and market share2 6,000 $25m $120b 9
Slide 11: Significant growth opportunity from existing and new advisers
Significant growth opportunity from existing and new advisers Net inflows from new and existing advisers Latent opportunity Composition of net inflows by tenure of adviser relationship HUB24 has access through 361 adviser net additions in relationships to more than 77% of the 1HFY25 (prior three yea
Slide 12: Tech Solutions & myprosperity delivering consistent growth
Tech Solutions & myprosperity delivering consistent growth ~93k 520 households3 wealth practices3 Class accounts Companies on CM +18k households in 1HFY25 +23 practices in 1HFY25 215,000 850,000 210,000 800,000 750,000 205,000 700,000 Increased engagement and usage as value proposition 200,000 650,0
Slide 13: Financial results
Financial results Kitrina Shanahan Chief Financial Officer 13
Slide 14: Group snapshot as at December 2024
Group snapshot as at 31 December 2024¹ Group¹ ² Platform¹ Tech Solutions¹ Technology Solutions Corporate Other3 HUBconnect 2% 3% 3% NowInfinity 19% Revenue Revenue $154.2m 29% Revenue $195.2m $38.0m Underlying EBITDA Underlying EBITDA Underlying EBITDA $66.7m $13.8m $77.6m Customer base4 Customer ba
Slide 15: Group financial results
Group financial results Operating Revenue ($m) +25% 195.2 3.2 1.1 34.2 1HFY25 1HFY24 Change Operating Revenue ($m) 195.2 156.7 25% 195.2 156.7 Operating Expenses ($m) (117.6) (101.7) 16% Underlying EBITDA ($m)1 77.6 55.0 41% 1HFY24 Platform Tech Solutions Corporate 1HFY25 Underlying EBITDA margin (%
Slide 16: Platform financial results
Platform financial results Strong Platform FUA growth driven by record half-year of net Funds Under Administration ($b) inflows of $9.5b and positive market movements Platform custody FUA growth of 36% to $98.9b, with 66% of 120.9 the growth driven by net inflows and 34% driven by market 1.7 5.0 per
Slide 17: Platform custody revenue and revenue margin
Platform custody revenue and revenue margin Platform FUA and Custody Revenue1 FUA ($b) Revenue ($m) 120 180 Platform revenue up 29% to $154m in 1HFY25 driven by 100 150 growth in FUA and an uplift in trading volumes 80 120 Platform revenue margin of 32bps in 1HFY25 60 90 • 1bp decline on 2HFY24 due
Slide 18: Composition of platform revenue
Composition of platform revenue Portfolio composition of custody FUA and revenue (%) 15% 6%5% 1% 14% 6% 6% 1% Increase in portion of FUA classified as Retail FUA driven by strong Retail net inflows which offset the impact of $4.1b of Equity Trustees large migrations1 • Retail represents 86% of Platf
Slide 19: Platform UEBITDA and margins
Platform UEBITDA and margins Platform Revenue and Expenses Revenue Expenses UEBITDA margin $m UEBITDA Margin (%) 160 44 43 Platform UEBITDA growth of 39% on 1HFY24 to $66.7m in 140 42 1HFY25 120 41 40 • Higher Platform net inflows, growth in FUA and 100 39 38 associated revenues 80 37 36 • Continued
Slide 20: Tech Solutions financial results
Tech Solutions financial results Underlying EBITDA ($m) UEBITDA Tech Solutions UEBITDA $13.8m for 1HFY25, up 37% YoY Margin UEBITDA margin 36.4%, up 7.3% to due to: 29.1% $3.0 33.4% 36.4% • Revenue growth of 9% driven by price increases and +37% growth in Class accounts and companies on NowInfinity
Slide 21: Group expenses and margins
Group Expenses ($m) +16% Group expenses and margins 149.0 +17% 13.4 135.6 1.6 2.6 Investing to support both increased scale and 128.1 2.1 strategic growth objectives (12.6) 9.3 115.5 4.5 Group Total Expenses before Notable Items increased 17% on 1HFY24 driven by higher variable expenses linked to hi
Slide 22: Increasing profitability
Increasing profitability Statutory NPAT up 54% and Underlying NPAT up 40% • Higher depreciation and amortisation • Higher acquisition amortisation due • Effective tax rate of ~28% (1HFY24: in 1HFY25 as amortisation tracks to alignment of useful lives of ~25%) impacted by movements in towards capex l
Slide 23: 1HFY25 strong financial performance and capital management
1HFY25 strong financial performance and capital management Fully franked interim dividend of 24.0 cps up 30% on 1HFY24 Group Operating Cashflow Dividends (cps) 4-YR CAGR +53%1 4-YR CAGR +52% Strong operating cashflows of $67.1m Underlying Diluted EPS (cps) with 86% correlation between 4-YR CAGR +48%
Slide 24: Strategy & outlook
Strategy & outlook Andrew Alcock Managing Director 24
Slide 25: HUB24 is uniquely positioned to capture significant opportunity from transformation
HUB24 is uniquely positioned to capture significant opportunity arising from new wave of transformation Industry continues to transform, driving need for innovative wealth solutions Emergence of advice networks to Demand for advice is increasing, 2.3m Australians with unmet advice needs1 leverage sc
Slide 26: Growing market leadership while transforming the industry and enhancing shareholder value
Growing market leadership while transforming the industry and enhancing shareholder value Strong growth outlook in Create additional shareholder existing established businesses value through tech solutions HUB24 Platform Class & NowInfinity Technology & data solutions Market leadership with signific
Slide 27: Leveraging our combined capabilities to lead industry change
Leveraging our Be the best provider of integrated platform, To enhance productivity for financial combined capabilities technology and data solutions professionals though to lead industry change • One way of doing business with access to market-leading solutions • Single view of wealth for financial
Slide 28: Investing to extend leadership & maximise opportunities
Investing to extend leadership & maximise opportunities Delivering solutions for evolving Enabling productivity for financial customer needs professionals Enhancing retirement functionality with flexible pension Continuing to deliver HUB24 Platform enhancements payments and seamless transition from
Slide 29: Significant opportunity for growth and value creation for customers and shareholders
Significant opportunity for growth and value creation for customers and shareholders Platform FUA target Leverage structurally Strong and reliable HUB24 Platform (excluding PARS FUA) growing markets and growth from both positioned to existing and new significantly grow demand for integrated solution
Slide 30: Questions?
Questions? 30
Slide 31: Disclaimer
Disclaimer SUMMARY INFORMATION RISK OF INVESTMENT The material herein is a presentation of general background information about An investment in HUB shares is subject to investment and other known and HUB24 Limited’s (‘HUB’) activities current as at date of presentation. This unknown risks, some of
Slide 32: Contacts
Contacts About HUB24 James Cordukes HUB24 Limited is listed on the Australian Securities Exchange, and includes the award-winning HUB24 Platform, HUBconnect, Class and myprosperity. Head of Investor Relations james.cordukes@hub24.com.au The HUB24 platform offers advisers and their clients a comprehe