Slide 1: For personal use only
AUB Ajuo esn jeuosied 105
Slide 2: FY19 Results Presentation
27 For personal use only AUG 2019 FY19 RESULTS PRESENTATION
Slide 3: Company purpose statement
For personal use only At HUB24 we make a difference in our customers’ lives by connecting them to innovative solutions that create better investment outcomes
Slide 4: Business Highlights
For personal use only BUSINESS HIGHLIGHTS ANDREW ALCOCK Managing Director 4
Slide 5: Key Messages
KEY MESSAGES For personal use only Continued strong growth in platform net flows and Our strategic focus is delivering results Funds Under Administration (FUA) • Leading market position • Sales growth • Industry recognition Continued strong growth in underlying profitability Increasing and unprecede
Slide 6: Group Financial Highlights
GROUP FINANCIAL HIGHLIGHTS For personal use only FUA $12.9bn $54.1m $6.8m up 54% Insert 36% Platform Revenue 27% Underlying NPAT¹ 2H Dividend Declaration2 2.6cps $18.0m Up from 33.3% Full year dividend2 4.6cps 52% Platform Underlying 30.0% in Platform Underlying EBITDA FY18 EBITDA margin (35.1% in 2
Slide 7: Business Highlights
FUA BUSINESS HIGHLIGHTS $12.9bn For personal use only up 54% Industry Product Net flows Position Innovation Growth Maintained our Multi-currency now Our focus on growth $3.9bn Insert position as 1st in available in managed has ensured up 61% Managed Accounts portfolios momentum in a shifting for the
Slide 8: Leading Change in Wealth Management
LEADING CHANGE IN Delivering shareholder returns, improved financial performance and superior client outcomes For personal use only WEALTH MANAGEMENT Maintaining our position as the fastest growing platform provider1 $b PLATFORM REVENUE & FUA $m Our Agility Applications expertise is delivering new c
Slide 9: Continuing to Build Market Share
CONTINUING TO BUILD MARKET SHARE For personal use only NET FLOW SHARE to UNDERLYING HUB24 NET FLOWS RANKING in $ TERMS 100 MARKET SHARE RATIO 80 ANNUAL QUARTERLY Specialist Institutional platforms platforms Rank Rank 60 Mar-19 2 2 40 Increasing market share Mar-18 4 3 20 Mar-17 5 5 0 HUB24 Decreasin
Slide 10: Industry Awarded and Recognised
INDUSTRY AWARDED AND RECOGNISED For personal use only We’re rated Managed Accounts Functionality¹ (for 3rd year running) Helping demonstrate value to clients2 #1 Decision Support Tools¹ Client Portal/login2 Portfolio Management tools² Rated Top 3 in 32 of 33 categories2 Range of Investments² for… Ou
Slide 11: Financial Results
For personal use only FINANCIAL RESULTS MARK GOODRICK Chief Financial Officer 11
Slide 12: Group Financial Results
GROUP FINANCIAL REVENUE ($m) + 15% RESULTS 14.4 96.3 For personal use only 84.0 7.0 (0.6) (1.5) 8.5 FY19 FY18 Change 35.2 35.8 $m $m % Group revenue 96.3 84.0 15% 54.1 Insert 39.7 Direct costs (50.8) (49.7) 2% FY18 Platform Licensee IT Services FY19 Gross profit 45.4 34.3 33% Gross profit margin (%)
Slide 13: Group Financial Results (cont'd): Operating Expenses
GROUP FINANCIAL RESULTS (CONT’D…) 34% For personal use only OPERATING EXPENSES ($m) Continued investment in the business to support growth ambitions Insert As previously announced, first half 2019 saw headcount investment in distribution, finance, 0.8 0.2 (0.3) 5% 0.5 28% 30.7 operations and risk an
Slide 14: Platform Segment Results
PLATFORM SEGMENT RESULTS For personal use only STRONG FUA GROWTH DRIVING INCREASED PROFITABILITY FUNDS UNDER ADMINISTRATION ($b) FY19 FY18 change PLATFORM $m $m % FUA (now $13.6b1) 12.9b 8.3b 54% 1.1 1.8 Revenue 54.1 39.7 36% F Direct costs (13.7) (11.3) 26% 1.4 -0.4 0.7* Gross profit 40.4 28.4 42%
Slide 15: Platform Segment Results: Revenue Margin
PLATFORM SEGMENT RESULTS (CONT’D…) For personal use only PLATFORM AVERAGE MONTHLY FUA REVENUE MARGIN (BPS) Portfolio Administration Fees are tiered - as average account balances increase (up 11% in FY19) the fee Insert as a percentage of FUA decreases (revenue per (2) (3) account is increasing in do
Slide 16: Platform Segment Results: FUA Growth Delivering Scale Benefits
PLATFORM SEGMENT RESULTS (CONT’D…) For personal use only FUA GROWTH DELIVERING SCALE BENEFITS PLATFORM REVENUE, GROSS PROFIT AND UNDERLYING EBITDA TRENDS ($M) 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 (5.0) Revenue Gross Profit Underlying EBITDA 1. Underlying EBIT
Slide 17: Platform Segment Results: Revenue and Expense Trends
PLATFORM SEGMENT RESULTS (CONT’D…) For personal use only FUA GROWTH DELIVERING SCALE BENEFITS 35.0 REVENUE AND EXPENSE TRENDS ($m)2 30.0 Revenue Platform EBITDA 25.0 margin continues 20.0 Platform to expand with expenses scale 15.0 Trend (Revenue) 10.0 Investment made 5.0 in 1H19 leveraged Trend (Pl
Slide 18: Strategy and Outlook
For personal use only STRATEGY AND OUTLOOK ANDREW ALCOCK 18
Slide 19: The Market Continues to Shift
THE MARKET CONTINUES TO SHIFT For personal use only THE SHIFT TO SPECIALIST PLATFORMS IS OUR CONTESTABLE MARKET CONTINUES TO INCREASING1 INCREASE2 350% 300% % Annual Net Flows Adviser Market Share Composition 250% 70% 200% 60% 150% 50% 100% 40% 50% 30% 0% 20% Jul-14 Jan-12 Jun-12 Jan-17 Jun-17 Dec-0
Slide 20: Providing Increasing Opportunity for HUB24
PROVIDING INCREASING OPPORTUNITY FOR HUB24 For personal use only INDUSTRY TREND HUB24 OPPORTUNITY Demand for Managed Account solutions continues to We are the market-leader in managed accounts and can build grow market share by leveraging this position The non-aligned advice segment continues to gro
Slide 21: Outlook: Leverage Our Foundations for Growth
OUTLOOK For personal use only LEVERAGE OUR FOUNDATIONS FOR GROWTH Continuing FUA growth Constant innovation that delivers Continue to grow and develop customer and shareholder value Paragem • From existing relationships and • Services and products to support • New leadership team building new opport
Slide 22: Outlook: Investing to Secure the Unprecedented Opportunity
OUTLOOK For personal use only INVESTING TO SECURE THE UNPRECEDENTED OPPORTUNITY Grow our distribution footprint Extend our leadership in managed Accelerate growth in market share nationally portfolios • Leverage our FY19 success to • Innovate to further unlock client • Delivering a step change in ou
Slide 23: Additional Information
For personal use only ADDITIONAL INFORMATION 23
Slide 24: Further Platform Segment Results
FURTHER PLATFORM SEGMENT For personal use only RESULTS AVERAGE MONTHLY NET INFLOWS (‘m) BROADENING DISTRIBUTION BASE 350 300 256 active licensees 250 No of advisers 1,625 200 150 17 white labels in total 100 50 84 new agreements with licensees in FY19 0 FY15 FY16 FY17 FY18 FY19 Average monthly net i
Slide 25: Agility and Paragem
AGILITY AND PARAGEM For personal use only SUPPORTING OUR BROADER STRATEGY • Retention of largest client – contract extended for new 3 • Leadership transformation – new executive team and year term refreshed strategy • Restructured business to prioritise recurring and license • Recent period of trans
Slide 26: ConnectHUB
CONNECTHUB For personal use only SUPPORTING OUR BROADER STRATEGY • Opportunity in data aggregation services for licensees and advice businesses with demand increasing post Royal Commission • Focus on expanding new 3rd party data integrations continues, including 6 banks and Annuities during FY19, to
Slide 27: Disclaimer
For personal use only DISCLAIMER SUMMARY INFORMATION control of HUB. HUB does not guarantee any particular rate of return or the performance of HUB nor does it guarantee the The material herein is a presentation of general background repayment of capital from HUB or any particular tax treatment. inf
Slide 28: For personal use only
For personal use only 28