Netwealth Group Ltd. · ASX:NWL
Netwealth — Shareholder Meeting (October 2020)
37 slides from Netwealth's shareholder meeting presentation, Oct 28, 2020
Slide 1: FY2020 Annual General Meeting
Netwealth For personal use only FY2020 Annual General Meeting 28th October 2020
Slide 2: Our purpose
For personal use only Our purpose is To enable people to see wealth differently and discover a brighter future
Slide 3: Jane Tongs
Jane Tongs For personal use only See wealth differently
Slide 4: Board of Directors
See wealth differently 4 For personal use only Jane Tongs Davyd Lewis Chairman and Non-Executive Director (joined 2000) Non-Executive Director (joined 2009) • Previously a partner at PwC specialising in the financial • Was a partner of Mallesons Stephen Jaques (now King & services sector • Director
Slide 5: Executive management team
See wealth differently 5 For personal use only Grant Boyle Chief Financial Officer and Joint Company Secretary (joined 2017) Rachel Axton General Manager, Legal, Risk and Compliance and Joint • Company Secretary (joined 2016) • Was most recently the CFO of EMR Capital • • Has held CFO/COO roles at B
Slide 6: Agenda
See wealth differently 6 For personal use only Jane Tongs Chairman 1. Matt Heine 2. Joint Managing 3. Formal business Director Davyd Lewis Chairman of Remuneration Committee
Slide 7: Our culture is value-driven
For personal use only Our culture is value-driven Curious Optimistic Collaborative Agile Genuine Courageous
Slide 8: Financial and business highlights FY2020
See wealth differently 8 Financial and business highlights FY2020 For personal use only Financial Highlights FY2020 Business Highlights FY2020 $123.9M $43.8M1 $31.5B FUA 81,804 Total Income NPAT Growth $8.2B (+35.0%) Accounts Growth 10,380 (+14.5%) 17.9 cents1 Dividend 14.7 cps 339 ASX 200 EPS Inter
Slide 9: Strong financial and market position
See wealth differently 9 Strong financial and market position For personal use only Strong balance sheet • low capital High correlation expenditure between EBITDA and High level of recurring • no debt operating cash flow and growing revenue (99.4% conversion) • significant cash reserves Ongoing stra
Slide 10: COVID-19 response
See wealth differently 10 COVID-19 response For personal use only Well positioned to meet the challenges presented by COVID-19 and subsequent economic disruption • Staff successfully transitioned to remote working with limited disruption to service and operation and without a net increase to our ope
Slide 11: Compliance and governance
See wealth differently 11 Compliance and governance For personal use only The Netwealth Board believes that sound governance is fundamental to the ongoing success and growth of Netwealth in the markets in which it participates The Netwealth Board Remuneration Framework The Board • Committed to alway
Slide 12: Joint Managing Director Matt Heine
Joint Managing For personal use only Matt Heine See wealth differently
Slide 13: Our strategy
For personal use only Our strategy is Best-in-class technology to deliver Market leading, home grown platform, agile and tailored to client needs Best-in-class service Award winning, nimble and highly responsive – ‘we make our clients look good’ Insights that matter Provide deep insights to our clie
Slide 14: Ranked No1 for platform functionality and satisfaction
See wealth differently 14 For personal use only Ranked No1 for overall platform functionality for the fifth year in a row and achieved the highest overall satisfaction score among primary users for the ninth year in a row, according to research by Investment Trends Overall functionality score by ove
Slide 15: Business Highlights Q1 FY2021
See wealth differently 15 Business Highlights Q1 FY2021 For personal use only $34.0B FUA $8.1B FUM $6.5B MA Growth PCP of $8.7B (+34.4%) Growth PCP of $3.6B (+81.5%) Growth PCP of $3.4B (+109.7%) $9.5B $4.0B $3.7B FUA net inflows FUM net inflows MA net inflows 12 months to 30 Sep 2020 12 months to 3
Slide 16: Disruption = Opportunity
See wealth differently 16 Disruption = Opportunity Platform providers by FUA market share1 Platform provider net funds flows2 For personal use only % market share (Jun 2020) #7 #1 18.4% $9.1B 16.0% 15.2% 13.4% $4.9B $3.2B 10.4% 8.8% $0.7B $0.6B $0.5B $0.4B -$1.0B -$1.2B -$2.3B 3.8% -$2.5B -$3.4B 3.0
Slide 17: Trends shaping wealth management
See wealth differently 17 Trends shaping wealth management For personal use only The age of the digital client experience + From investment expert to wealth coach + Proliferation of advice technologies = A need to modernise the advice delivery model Clients demand a digital An increase focus on Marg
Slide 18: A single ecosystem for investors and wealth professionals
See wealth differently 18 A single ecosystem for investors and wealth professionals For personal use only Client portal Engage Transact Tasks, Investment Super Buy, sell, Wealth messaging, (IDPS) deposit, pay, professionals document SMART, vault Client data Xwrap Connect GSS Investors Software funds
Slide 19: Our strategic investment in Xeppo
See wealth differently 19 Our strategic investment in Xeppo For personal use only Business Apps Marketing Sales Workflow Documents Reporting Client portal All data is normalised into a common format allowing for seamless ,scalable two Open API Connection Matching & Grouping Data Sync Security way co
Slide 20: Our flagship wealth products have evolved
See wealth differently 20 Our Flagship wealth products have evolved For personal use only Accelerator Core A cost-effective option with a range of index & • Annuities diversified investment options. • Global Specialist Funds Build diversified investment portfolios that are cost-effective • Managed M
Slide 21: Reporting and analysis tools
See wealth differently 21 For personal use only With Netwealth you and Reduce time spent with client reporting using our Administer and manage your your clients will have access to comprehensive suite of chart-based reports, that consolidate -custodial/off- unapparelled reporting and account informa
Slide 22: Secure mobile access to your wealth information
See wealth differently 22 For personal use only Secure mobile access to your most important wealth information At Netwealth we are fully invested in a Coming soon digital future to help both investors of all • Mobile 1st types from next-generation to high net- worth clients. • Super, property, bank
Slide 23: Strategic investment in our people
See wealth differently 23 Strategic investment in our people For personal use only Across technology, operations and distribution to support continued scalability and innovation Strategic increase in headcount, increase of 32 in Headcount by function 30 June 2020 Technology for FY2020 (10 Melbourne
Slide 24: Platform revenue composition
See wealth differently 24 Platform revenue composition For personal use only Non-administration fee income percentage of platform revenue increased by 4% to 47% for FY2020 Platform revenue split FY2019 & FY2020 Administration fees Transaction fees 4% 4% • Wrap • Brokerage 6% 9% • Super • Share settl
Slide 25: Financial highlights FY2020
See wealth differently 25 Financial highlights FY2020 For personal use only Focused on profitable & sustainable revenue growth Average account size increased to $367,000 Average FUA / Average no of Accounts 367 304 254 211 FY2017 FY2018 FY2019 FY2020 $123.9M $64.8M1 Platform revenue per account incr
Slide 26: Summary of business and financial highlights
See wealth differently 26 Summary of business and financial highlights For personal use only Track record of growth in FUA, FUM, New pricing launched revenue and profitability • Focusing on a new digital client • New pricing launched to all members • $9.5B FUA net inflows for 12 months to 30 Sep eng
Slide 27: In the community
See wealth differently 27 In the community For personal use only Living our purpose and helping young Australians see wealth differently This our 4th year of supporting Banqer as it expands into In Sep 2020, for 4 weeks Netwealth innovated with 30 Australia, allowing Australian schools and over 20,0
Slide 28: Questions
For personal use only Questions
Slide 29: Formal business
Formal business For personal use only See wealth differently
Slide 30: Consideration of Netwealth Annual Reports
See wealth differently 30 Item 1 For personal use only Consideration of Netwealth Annual Reports AGM. There is no requirement for a formal resolution on this item. However, the Chairman will allow reasonable opportunity to answer questions or review comments that have been made online by the shareho
Slide 31: Address by Chairman of the Remuneration Committee
See wealth differently 31 Address by Chairman of the Remuneration Committee - Davyd Lewis For personal use only • Short term incentives in the form of non-discretionary cash bonuses are generally limited to the sales and distribution team and the Joint Managing Directors. Netwealth only pays a discr
Slide 32: Adoption of the Remuneration Report
See wealth differently 32 Item 2 For personal use only Adoption of the Remuneration Report To consider and, if thought fit, to pass the following resolution as an ordinary resolution: Proxy Votes Received For Open Against Abstain 64,720,711 544,474 205,549 105,628 98.85% 0.83% 0.31% *Open votes tota
Slide 33: Re-election of Michael Heine as a director
See wealth differently 33 Item 3 For personal use only Re-election of Michael Heine as a director To consider and, if thought fit, to pass the following resolution as an ordinary resolution: eligible and offering himself for election, be re-elected as a Proxy Votes Received For Open Against Abstain
Slide 34: Re-election of Timothy Antonie as a director
See wealth differently 34 Item 4 For personal use only Re-election of Timothy Antonie as a director To consider and, if thought fit, to pass the following resolution as an ordinary resolution of the Company: Proxy Votes Received For Open Against Abstain 192,610,047 550,475 7,130,770 699,386 96.16% 0
Slide 35: Questions
For personal use only Questions
Slide 36: Thank you
For personal use only Thank you
Slide 37: Important notice and disclaimer
See wealth differently 37 Important notice and disclaimer For personal use only General Information only No representation is made that any of these statements or forecasts will come to pass or that any forecast result will be achieved, or that there is a reasonable basis for any of Information prov