Slide 1: For personal use only
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Slide 2: 1HFY18 Results Presentation
For personal use only 26 Feb 2018 1HFY18 RESULTS PRESENTATION
Slide 3: Key Messages
For personal use only KEY MESSAGES Continued strong growth in platform Well positioned to capture market net flows and FUA opportunity resulting from industry trends Increasing scale driving operating Highly regarded by our customers leverage and expanding margins and industry Delivering enhanced sh
Slide 4: Overview
For personal use only Highlights Financial results Market & growth opportunities OVERVIEW Outlook Additional information 4
Slide 5: Financial Results 1HFY18
For personal use only FINANCIAL RESULTS 1HFY18 $41.0m $16.1m $4.9m $2.1m $4.6m 1 2 Revenue Gross Profit Underlying EBITDA Underlying NPAT Operating cashflow 49% 94% 185% 75% 207% Comparison period is 1HFY17 1. Underlying EBITDA represents earnings before interest, tax, depreciation, amortisation and
Slide 6: Business Highlights
For personal use only BUSINESS HIGHLIGHTS Net flows of Significant new 6 new client wins with 2 new practices & 6 new advisers 1st $1.1b product HUB24/Agility joined Managed Accounts Now $1.43b 1 development combined offering Paragem 2016 & 2017 2 User Interface & Mobile including HUB24/Agility with
Slide 7: At HUB24 we make a difference in our customers' lives
For personal use only Connecting brokers to new ways to grow their business Supporting wealth management licensees by connecting them to new ways to create value At HUB24 we make a Providing investors with the difference in our right solutions for their customers’ lives wealth needs by connecting th
Slide 8: HUB24 Leading Change in Wealth Management
For personal use only HUB24 LEADING CHANGE IN WEALTH MANAGEMENT FUA $B 94% FUA 5 YR CAGR Revenue $M The fastest growing platform1 leveraging Accelerating platform investment to capture industry transformation increasing market opportunity 8,000 117% Revenue 5 YR CAGR 20 Our focus is delivering share
Slide 9: Financial Results Revenue Breakdown
For personal use only FINANCIAL RESULTS REVENUE BREAKDOWN STRONG FUA GROWTH DRIVING INCREASED PROFITABILITY $m + 49% 4.5 1H18 1H17 Change 6.9 2.5 (0.4) $m $m % Group revenue 41.0 27.6 49% $41.0 $27.5 Direct expenses (24.5) (18.4) 33% % 60% 67% (7%) 1H17 Platform Licensee 4 IT Services Interest and 1
Slide 10: Platform Segment Results
For personal use only PLATFORM SEGMENT RESULTS CONTINUING INVESTMENT AND SOLID EXECUTION IS BEING REWARDED WITH FUA GROWTH, INDUSTRY RECOGNITION 1H18 1H17 change AND EXPANDING PROFIT MARGINS $m $m % 2 Retail FUA (Now $7.2b) 6.9b 4.2b 66% Revenue increase of 59% driven by net Revenue 18.8 11.8 59% in
Slide 11: Platform Segment Results: Profit Lines Reflecting Scale Benefits
For personal use only PLATFORM SEGMENT RESULTS PROFIT LINES REFLECTING SCALE BENEFITS OF INCREASING FUA REVENUE, GROSS REVENUE AND EXPENSE TRENDS PROFIT AND UNDERLYING EBITDA¹ TRENDS $m 20.0 18.0 20.0 16.0 14.0 15.0 12.0 10.0 10.0 8.0 6.0 5.0 4.0 0.0 2.0 0.0 1HFY15 2HFY15 1HFY16 2HFY16 1HFY17 2HFY17
Slide 12: The Market
For personal use only THE MARKET Personal Superannuation Platform Managed Advisers Investments Accounts Current $2.3tr $2.3tr $774bn $25bn 1/3 independent, Status (30 June 2016) 2/3 aligned to institutions Forecast CAGR 10% CAGR 6% to $4.1tr CAGR 11% CAGR 35% Independents Growth (platforms to 2031)
Slide 13: The Forces Shaping Our Industry
For personal use only THE FORCES SHAPING OUR INDUSTRY Traditional financial Rise of the new Advisers are voting with Managed accounts are services segments are technology platforms their feet becoming mainstream converging • New technology platforms • 1 in 10 advisers changed • 51% of advisers eithe
Slide 14: HUB24 Continues to Win Awards
For personal use only HUB24 CONTINUES TO WIN AWARDS 1ST PLACE MANAGED ACCOUNT FUCTIONALITY(2016 & 2017) 1ST PLACE OVERALL PLATFORM SATISFACTION 1ST PLACE BEST NAVIGATION & USER INTERFACE (2015, 2016, 2017) 1ST PLACE FOR EASE OF USE/NAVIGATION 1ST PLACE BEST MOBILE PLATFORM (2015, 2016, 2017) RECOGNI
Slide 15: HUB24 Is Well Positioned for Further Growth
For personal use only HUB24 IS WELL POSITIONED FOR FURTHER GROWTH 120.0% NEW TECHNOLOGY PLATFORMS ARE MARKET SHARE BY ANNUAL NETFLOWS 1 WINNING FLOWS (Top 10 net flow platforms) Sept ‘17 quarter 100.0% HUB24 achieves 9.8% in 4th place with 25.0% of market flows with a 13.45% share of current market
Slide 16: HUB24 Is Well Positioned for Further Growth
For personal use only HUB24 IS WELL POSITIONED FOR FURTHER GROWTH 14.0 NET FLOW SHARE to UNDERLYING HUB24 INVESTMENT IN GROWTH & MARKET $m 1 MARKET SHARE RATIO 0.9% SHARE OF FUA 4.0 12.0 0.8% 3.5 Institutional net flow growth / market share New FUA market share 10.0 technology platforms 0.7% 3.0 pla
Slide 17: Investing to Capture the Opportunity
For personal use only INVESTING TO CAPTURE THE OPPORTUNITY Products & Services Growing our team HUB24 will shortly launch our next generation Attracting industry talent to increase growth and managed portfolio capability incorporating mass continue innovating. customisation. This will enable ass
Slide 18: Outlook
For personal use only OUTLOOK Leverage our current foundations …and lay foundations for future growth Deliver increasing financial results & scale-based Continue to lead change & leverage market profit margin expansion dynamics Continued strong growth in platform net flows Create new opportu
Slide 19: Additional Information
For personal use only ADDITIONAL INFORMATION 19
Slide 20: Further Platform Segment Results
For personal use only FURTHER PLATFORM SEGMENT RESULTS BROADENING DISTRIBUTION BASE 110 active licensees AVERAGE 200 MONTHLY NET Large No of advisers 1,040 INFLOWS (‘m) client transition 15 white labels in total, 1 new in 1HFY18 150 22 new licensees to the platform in 1HFY18 100 50 0 FY12 FY13 FY14
Slide 21: Licensee Segment Results
For personal use only LICENSEE SEGMENT RESULTS PARAGEM ADVISERS CONTINUE TO EMBRACE HUB24’s PLATFORM TO DEVELOP BETTER OUTCOMES FOR 1H18 1H17 change THEIR CLIENTS Licensee $m $m % Revenue increase of 17% over prior Revenue 17.3 14.8 17% corresponding period Direct expenses (15.8) (13.5) 17% Gross pr
Slide 22: IT Services Segment Results
For personal use only IT SERVICES SEGMENT RESULTS AGILITY’S MARKET LEADING CONNECT DESKTOP HAS OVER 2,500 USERS, REPORTING ON OVER $200 BILLION OF 1H18 1H17 change CLIENT ASSETS IT Services $m $m % Revenue 4.5 - - An increase of 200 users of the Connect software (to 2,553) over the 1HFY18 Direct cos
Slide 23: Corporate Segment Results
For personal use only CORPORATE SEGMENT RESULTS 1H18 1H17 change Corporate $m $m % Operating expenses (0.3) (0.3) 32% Underlying EBITDA1 (0.3) (0.3) 32% Interest revenue 0.1 0.2 (29%) Fair value gain - contingent consideration 0.2 0.5 (63%) Fair value gain - Contingent consideration of $0.2m relatin
Slide 24: Appendix A - Corporate Information
For personal use only CAPITAL STRUCTURE AT 23 FEBRUARY ‘18 APPENDIX A -CORPORATE Shares on issue Share price 61.59m $11.30 INFORMATION Market capitalisation SUBSTANTIAL SHAREHOLDERS $696m Thorney Holdings Ltd 14.94% HUB24 SHARE PRICE Ian Litster 5.90% $11.50 BALANCE SHEET AS AT 31 DEC 17 $9.50 Cash
Slide 25: Appendix B - Financial Results Reconciliation
For personal use only APPENDIX B - FINANCIAL RESULTS RECONCILIATION Platform Licensee IT Services Corporate 1H18 1H17 change Segment Results $m $m $m $m $m $m % Revenue 18.8 17.3 4.5 40.6 26.6 52% Direct costs (5.8) (15.8) (3.0) (24.6) (18.4) 34% Gross profit 13.0 1.5 1.5 0.0 16.0 8.3 93% Operating
Slide 26: Disclaimer
For personal use only DISCLAIMER SUMMARY INFORMATION FORWARD LOOKING STATEMENTS The material herein is a presentation of general background This presentation contains certain forward-looking statements. information about HUB24 Limited’s (‘HUB’) activities current as The words ‘anticipate’, ‘believe’
Slide 27: For personal use only
For personal use only