Hub24 Limited · ASX:HUB
Hub24 — 1HFY21 Earnings Presentation
24 slides from Hub24's earnings presentation, Feb 22, 2021
Slide 1: AUB
AUB
Slide 2: 1HFY21 Results Presentation
23 FEB 2021 1HFY21 RESULTS PRESENTATION
Slide 3: Our purpose: connecting customers to innovative solutions
At HUB24 we make a difference in our customers’ lives by connecting them to innovative solutions that create better investment outcomes 3 3
Slide 4: HUB24 - Awarded Best Overall Platform
HUB24 - AWARDED BEST OVERALL PLATFORM POSITIONED FOR SCALE & GROWTH INVESTMENT TRENDS 2020¹ HUB24 average monthly HUB24 Record net flows Platform net flows $BN FUA $BN 35 5.5YR2 NET FLOW A strong pipeline and 600 CAGR 31% 30 5YR FUA3 CAGR continued momentum 56% • Launch of new 500 25 institutional p
Slide 5: Business Highlights
BUSINESS HIGHLIGHTS ANDREW ALCOCK Managing Director 5
Slide 6: Group Financial Highlights 1HFY21
GROUP FINANCIAL HIGHLIGHTS 1HFY21 Statutory NPAT $43.8m $17.4m $6.1m up 1% 25% Platform Revenue 26% Platform Underlying EBITDA3 Total FUA3 at 31 Dec 2020 $31.3bn up 95% Including Platform FUA of $22bn up to 39% $7.5m 39.7% Total FUA now $33bn including Platform FUA of $24bn5 Up from 39% Underlying N
Slide 7: Australia's Best Platform Overall
AUSTRALIA’S BEST PLATFORM OVERALL¹ 1st 1st 2nd $3.1bn Finalising strategic transactions announced in October 2020 Overall Platform Managed Annual net inflows² Record net • Acquisition of Ord Functionality Accounts Solution¹ inflows Minnett PARS Investment Trends completed & team onboarded to HUB24 P
Slide 8: Growing FUA and Market Share
GROWING FUA AND MARKET SHARE Specialist & Institutional Platform providers net Platform FUA, PARs FUA & net flows per quarter² flow share to underlying market share ratio Net flows $ Millions $ million Specialist Institutional Ratio of net flow market share to platforms platforms 140 30,000 2,000 12
Slide 9: Financial Results
FINANCIAL RESULTS KITRINA SHANAHAN Chief Financial Officer 9
Slide 10: Group Financial Results
GROUP FINANCIAL RESULTS OPERATING REVENUE ($m) 0 04 02 + 18% 1H21 1H20 Change $m Group operating r Interest income THFY20 Platform Licensee IT Services THFY21 Direct costs Gross profit Operating expenses UNDERLYING EBITDA ($m) Undertying EBITDA ' 36 15 +41% EBITDA (0.2) @2) Underlying NPAT * Statuto
Slide 11: Platform Segment Results
PLATFORM SEGMENT RESULTS Strong FUA growth driving increased profitability 1HFY21 PLATFORM Total FUA (Now Platform FUA (Now 24b! Platform Net Flo Revenue Direct costs Gross profit Operating expenses Underlying EBITDA? Profit before tax Total platform expenses” (26.4) rings beftre 4HFY20 change 11.4
Slide 12: Platform Revenue
PLATFORM REVENUE PLATFORM REVENUE PERFORMANCE ($m) Revenue increase driven by 39% FUA Growth 1.4 3.1 on PCP¹ 1.3 3.0 Platform revenue increased by 25% to $43.8 39.3 43.8 35.0 million driven by record net flows and strong 28.6 equity markets leading to growth in FUA balances 2HFY19 1HFY20 Portfolio O
Slide 13: Platform Segment Results
PLATFORM SEGMENT RESULTS FUA GROWTH DELIVERING SCALE BENEFITS Investment for growth expected given business 50.0 Platform Revenue and Expense trends ($m)¹ momentum and confidence 40.0 30.0 Disciplined expense 20.0 management has offset low interest rate environment 10.0 resulting in expanded 0.0 EBI
Slide 14: Operating Expenses
OPERATING EXPENSES OPERATING EXPENSES ($m) Group operating expenses held flat to 2HFY20. Disciplined focus on expense management. 0.7 22% 0.6 (0.5) 1% 2.8 4.3% Investment in IT infrastructure to support Platform growth has increased 1HFY21. As a result of the strategic review of IT 19.9 20.0 Service
Slide 15: Underlying NPAT
UNDERLYING NPAT IMPACTED BY ONE OFF ITEMS POSITIONING THE BUSINESS FOR GROWTH Share based payments increased by $3.0m including the Special Release of Agility deferred consideration of $1.6m is offset by LTI grants in 2018 and December 2020 $1.1m of share based payment expense (with $0.5 to be booke
Slide 16: Update on Strategic Transactions
UPDATE ON STRATEGIC TRANSACTIONS ANDREW ALCOCK Managing Director 16
Slide 17: M&A Transactions Update
M&A TRANSACTIONS UPDATE Progress Next Steps Q3/Q4 Engage with XPL team and transition to HUB24 All necessary approvals received Embed interim operating model Completion on track for 2nd Mar 21 Customer engagement Acquisition of XPL for $60m Define growth opportunities leveraging enhanced FUA $16.6bn
Slide 18: Finalising Strategic Transactions
FINALISING STRATEGIC TRANSACTIONS LEADING PROVIDER OF INTEGRATED PLATFORM, Strategic transactions positioning DATA AND TECHNOLOGY SERVICES HUB24 for ongoing success: Strengthening our market leadership as Total FUA: $48bn¹ Specialist Platform Provider Strong combined proposition for retail and High
Slide 19: Strategy and Outlook
STRATEGY AND OUTLOOK ANDREW ALCOCK Managing Director 19
Slide 20: Key Industry Trends Presenting Opportunities for HUB24
KEY INDUSTRY TRENDS PRESENTING OPPORTUNITIES FOR HUB24 Increasing demand for managed portfolios Increasing retirement savings⁴ solutions¹ Continued shift to specialist platforms driven by product innovation & WEXIT Cost of advice increasing creating advice gap⁵ Growing high-net-worth & affluent segm
Slide 21: Maximising Opportunities and Positioning for Further Growth
MAXIMISING OPPORTUNITIES AND POSITIONING FOR FURTHER GROWTH Consolidating our market-leading platform position & expanding into new segments • By leveraging current relationships, securing new clients and continued investment in platform capability and customer Continuing to grow platform market sha
Slide 22: Moving Forward
MOVING FORWARD CREATE CUSTOMER & SHAREHOLDER VALUE Continued market share & FUA growth Commence integration of acquisitions, leverage new product capability and transition to future Platform FUA target We are positioning operating model increased to HUB24 as the $43b-$49b leading provider of Positio
Slide 23: Disclaimer
DISCLAIMER SUMMARY INFORMATION the control of HUB. HUB does not guarantee any particular rate of return or the performance of HUB nor does it The material herein is a presentation of general background guarantee the repayment of capital from HUB or any information about HUB24 Limited’s (‘HUB’) activ
Slide 24: AUB
AUB HUB”