Slide 1: Empowering better financial futures, together
Empowering better financial futures, together FY23 Results Presentation 22 August 2023
Slide 2: Continuing momentum with significant uplift in financial results
Continuing momentum with significant uplift in financial results1 Revenue Underlying EBITDA² Statutory NPAT $38.2m Up 160% Total Group $279.5m 45% $102.4m 45% Platform $208.8m 30% $85.1m 37% Underlying NPAT2 $58.8m Up 64% Tech Solutions $67.5m 133% $21.8m 91% Final Dividend 18.5cps Up 48% Fully fran
Slide 3: Leading the wealth industry as the best provider of integrated platform, technology & data solutions
Leading the wealth industry as the best provider of integrated platform, technology & data solutions Australia’s Australia’s third fastest Market-leading SMSF Market-leading Managed best platform1 growing super fund2 administration software Portfolio capability SMSF documents provider of Data-led so
Slide 4: Consistently delivering growth and shareholder value
Consistently delivering growth and shareholder value Funds under administration Group Revenue 4-YR CAGR +46% 4-YR CAGR +58% Group UEBITDA 4-YR CAGR +61% $80b Revenue UEBITDA $70b $300m $110m $100m $60b $250m $90m $50b $80m $200m $70m $40b $60m $150m $30b $50m $40m $20b $100m $30m $10b $50m $20m $10m
Slide 5: FY23 highlights – market leadership, growth & enhancing our customer proposition
FY23 highlights – market leadership, growth & enhancing our customer proposition Industry leading net inflows and FUA growth Delivering on our strategic objectives Strong pipeline of opportunities across the Group (including $4 billion migration from EQT), increasing adviser relationships Lead today
Slide 6: Recognised as Australia's best platform
Recognised as Australia’s best platform1 Overall Best Advice Platform1 #1 Overall Satisfaction (equal first)4 Best Client Experience1 #1 Ease of doing Business4 Ease of Onboarding1 #1 IT/Web functionality4 Best Functionality1 Best Adviser Support1 Best SMSF Investment Platform – Adviser Choice7 Best
Slide 7: Continuing to lead the market with innovative managed portfolio capability
Continuing to lead the market with innovative managed portfolio capability and $27 billion in FUA Engaging and educating advisers Building clear differentiation in our Helping to grow the Extending our managed portfolio Managed Portfolios proposition Managed Portfolio market leadership position Gene
Slide 8: HUB24 Platform growth and market share
HUB24 Platform growth and market share1 Growth in Platform Custody FUA & revenue Fastest growing platform by market share of flows2 Platform Custody FUA 4YR CAGR 48% FUA ($m) Revenue ($m) Institutional Macquarie Netwealth HUB24 70,000 250,000 66.2% 64.3% 60,000 200,000 50,000 39.8% 40,000 150,000 Pl
Slide 9: Strong inflows from existing and new relationships with significant opportunity to grow market share
Strong inflows from existing and new relationships with significant opportunity to grow market share Yearly FUA net inflows analysis Latent opportunity 9% HUB24 has relationships with access 10% $11.7B to more than 74% of the total adviser • Since June 2020, average 15% 13% market1 adviser FUA on HU
Slide 10: Class - building momentum and positioned for growth
Class - building momentum and positioned for growth Refreshed Growth team & continued focus on customer service excellence resulting in increased Growth in Class accounts engagement customer satisfaction Class Super accounts Companies on CM Access to ~ 6,000 financial 205,000 700,000 professionals p
Slide 11: Our talented and growing team
Our talented and growing team Our Values: 838 Enhancing our employee value proposition to attract, retain and Integrity FTE develop our people Do the right thing New Chief People Officer focused on enhancing our Collaboration 86% Dedicated to employee brand and strengthening HUB24 as a great place t
Slide 12: Financial results
Financial results Kitrina Shanahan Chief Financial Officer
Slide 13: Group snapshot as at 30 June 2023
Group snapshot as at 30 June 2023¹ Group¹,² Platform¹ Technology Solutions¹ Technology Solutions Corporate Non-Custody HUBconnect Other 1% 2% 3% 3% 4% 2% Document Sales 4% 24% 11% Revenue Revenue Revenue $208.8m $67.5m $279.5m Underlying EBITDA Underlying EBITDA Underlying EBITDA $85.1m $21.8m $102.
Slide 14: Group financial results
Group financial results Operating Revenue ($m) +45% 279.5 0.2 FY23 FY22 Change 38.5 192.5 48.3 $m $m % 279.5 Operating Revenue 279.5 192.5 45% 192.5 Operating Expenses (177.1) (122.1) 45% FY22 Platform Tech Solutions Corporate FY23 Underlying EBITDA1 102.4 70.4 45% Underlying EBITDA margin1 (%) Unde
Slide 15: Platform results
Platform results Continued FUA growth, higher interest rates Funds Under Administration ($b) and disciplined cost management leading to $80.3 expanding UEBITDA margins $73.0 $3.0 $0.4 $3.9 ($1.0) $1.3 $1.3 $17.6 $65.6 $5.8 $3.0 ($1.0) $17.2 FY23 FY22 Change $15.9 $m $m % Platform FUA 62.7bn 49.7bn 2
Slide 16: Platform segment results
Platform segment results Platform delivering scale benefits $9.7b of net inflows and $4.3b positive market Revenue and Expenses ($m) Revenue Expenses UEBITDA margin (RHS) movements during FY23 UEBITDA Margin (%) $m driving continued growth 220 45 in the platform segment1 200 180 40 160 140 35 120 30
Slide 17: Composition of platform custody FUA and revenue margins
Composition of platform custody FUA Portfolio Composition of Platform custody FUA and Revenue ($m) and revenue margins 6%1% 6% 3% 6% 6%1% 14% 16% 1% 1% 3% 86% 81% 93% 93% Xplore Super Admin successor fund transfers (SFTs) FY23 FUA FY23 Revenue FY22 FUA FY22 Revenue completed in FY23. No impact to UE
Slide 18: Platform revenue
Platform revenue Platform Revenue ($m)1 +30% 208.8 Platform revenue growth of 30% reflecting growth in FUA and interest rates 160.5 102.7 106.1 Platform revenue increased to $208.8 million (up 30%) 3.3 0.1 83.2 15.4 Revenue continues to increase with the scale of the 4.1 business, platform revenue m
Slide 19: Tech Solutions results
Tech Solutions results Class acquisition driving growth in the Tech Underlying EBITDA ($m) Solutions segment. Class software capitalisation policy aligned to HUB24 policy UEBITDA Margin 39.2% 39.4% 32.3% reducing UEBITDA by $4.8 million in FY23 $3.0 +91% (1.7) 26.6 3.0 FY23 FY22 Change (4.8) 21.8 $m
Slide 20: Group expenses
Group expenses Group Expenses by function ($m) +33% Investing to support scale and deliver growth. 227.5 +43% Class included for 4.5 months in FY22, with the 26.0 201.5 acquisition completed in February 2022. 4.0 1.4 10.4 171.3 Group expenses (excluding strategic transactions and other 42.1 (30.2) n
Slide 21: Increasing profitability
Increasing profitability Statutory NPAT up 160% and Underlying NPAT up 64% $9.7 million of strategic transaction Higher amortisation, as development Impairment charge of $3.3 million in and project costs in relation to Xplore and capitalisation of IT assets relation to the carrying value of the inte
Slide 22: Strong capital position supporting on-market share buy-back
Strong capital position supporting on-market share buy-back Increasing shareholder returns whilst retaining flexibility to take advantage of strategic growth opportunities. HUB24 delivered strong operating cash flows HUB24 dividends continue to grow with earnings. HUB24 Group cashflow (#039;m) Total di
Slide 23: Strategy & Outlook
Strategy & Outlook Andrew Alcock Managing Director
Slide 24: With change comes opportunity
With change comes opportunity Specialist platforms are Data integration and quality Increasing demand from advisers Growth in SMSFs continuing, extending their lead while continue to challenge licensees, and their clients for complete driven by increasing demand from institutional platforms remain a
Slide 25: Our strategy positions us to capture these opportunities for growth
Our strategy positions us to capture these Document vault e-signatures Virtual rooms opportunities for growth Task tracker Digital checklists Digital fact finds Deeply integrated into HUB24’s products & services Leveraging our Group capability and delivering Enhanced client portal experience with Pl
Slide 26: Continuing to deliver integrated platform and technology solutions for the client lifecycle
Continuing to deliver integrated platform and technology solutions for the client lifecycle Private Offers today Wealth HNW Wholesale Discretionary Accounts Indicates where offers are broadening Broker PARS HUB24 CHOICE Mass SMSF Access SMSF Access affluent Innovative retirement income products comi
Slide 27: Outlook – growth momentum delivering customer and shareholder value
Outlook – growth momentum delivering customer and shareholder value Strong growth from Integrate Group Coherent strategy Strong balance sheet existing & new capabilities to driving competitive & capital position, relationships whilst accelerate platform advantage increasing profitability evaluating
Slide 28: Disclaimer
Disclaimer Summary information Forward looking statements The material herein is a presentation of general background This presentation contains certain forward- information about HUB24 Limited’s (‘HUB’) activities current as at looking statements. The words ‘anticipate’,’will’ date of presentation.
Slide 29: AUB
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Slide 30: HUB24 Group at a glance
HUB24 Group at a glance Platform Tech Solutions 92 6000+ PLATFORM PARS myprosperity Financial Services Clients Unique Clients¹ Custodial Non-custodial Client Technology & Data Services Cloud-based software administration administration portal Platform FUA PARS FUA Advice/ HUBconnect Broker Class Sup
Slide 31: Delivering on our sustainability objectives
Delivering on our sustainability objectives Climate risks and opportunities Targeting net zero scope Business ethics and Integrity 1 and 2 by 2030 Customer experience Focused on corporate Continued investment in governance best practice and innovative products and continual improvement service excel