Hub24 Limited · ASX:HUB
Hub24 — H1 FY2023 Earnings Presentation
26 slides from Hub24's earnings presentation, Feb 21, 2023
Slide 1: 1HFY23 Results Presentation
1HFY23 Results Presentation 21 February 2023
Slide 2: Empowering better financial futures, together
Empowering better financial futures, together Supporting over 300,000¹ customers to meet their investment and retirement goals 1. Customer accounts across Platform and Class service offerings as at 31 December 2022
Slide 3: Financial highlights 1HFY23
Financial highlights 1HFY231 Revenue Underlying EBITDA² Statutory NPAT $15.5m Up 85% Total Group $137.7m 69% $49.9m 68% Platform $102.7m 33% $41.4m 38% Underlying NPAT2 $26.6m Up 87% Tech Solutions $33.4m Large $10.5m Large Interim Dividend 14.0cps Up 87% Fully franked Total FUA Platform FUA PARS FU
Slide 4: Consistently delivering growth and results
Consistently delivering growth and results Funds under administration Group Revenue 5-YR CAGR +28% 5-YR CAGR +60% Group UEBITDA 5-YR CAGR +58% UEBITDA $80b Revenue $70b $140m $60m $60b $120m $50m $50b $100m $40m $40b $80m $30m $30b $60m $20m $20b $40m $10b $20m $10m $0b $0m $0m 1HFY18 1HFY20 1HFY21
Slide 5: Growth and market share
Growth and market share1 Growth in Platform Custody FUA & Platform Custody FUA Growth in Class accounts Class Super Accounts revenue per year Platform Custody Revenue Total Accounts FUA 200,000 Revenue $m Platform Custody FUA ($m) 195,000 5YR CAGR 52% 190,000 70,000 120 185,000 60,000 100 180,000 50
Slide 6: Australia's Best Platform - well positioned for future growth
Australia’s Best Platform - well positioned for future growth1 Leveraging the combined 1st for quarterly # 1 # 1 # 1 capabilities of HUB24, Class and NowInfinity to expand the SMSF market with the launch of HUB24 Best Overall Managed Portfolio for adviser net inflows Platform1 Product Offer1 advocac
Slide 7: Growing HUB24 adviser base and pipeline of opportunity
Growing HUB24 adviser base and pipeline of opportunity Half yearly FUA net inflows analysis Latent opportunity $6.7B $5.8B $5.8B 2% 9% $5.1B 3% HUB24 has relationships with access • Average number of active 10% to more than 71% of the total adviser advisers on HUB24 growing by 3% 200 each half (net)
Slide 8: Class – Consolidating market leadership and positioning for growth
Class – Consolidating market leadership and positioning for growth Consolidate Grow Innovate New experienced leadership team Enhanced focus on sales and growth Continuing to leverage Class established with realigned distribution team capabilities to develop the platform of the future to create a Str
Slide 9: Investing in our people and the community
Investing in Attracting, retaining and our people and developing talented people through: Our Values: the community • Embedding flexibility through hybrid working and employee policies Integrity • Prioritising employee wellbeing with support Do the right thing programs and online tools Creating the
Slide 10: Financial results
Financial results Kitrina Shanahan Chief Financial Officer
Slide 11: Group snapshot as at 31 December 2022
Group snapshot as at 31 December 2022¹ Group¹,² Platform¹ Technology Solutions¹ Technology Solutions Corporate Non-Custody HUBconnect Other 1% 2% 3% 3% 4% 2% Document Sales 6% 24% Revenue 10% Revenue Revenue $102.7m $33.4m $137.7m Underlying EBITDA Underlying EBITDA Underlying EBITDA $41.4m $10.5m $
Slide 12: Group financial results
Group financial results Operating Revenue ($m) +69% 137.7 0.3 1HFY23 1HFY22 Change 30.4 $m $m % 81.6 25.4 137.7 Operating Revenue 137.7 81.6 69% 81.6 Operating Expenses (87.8) (51.9) 69% 1HFY22 Platform Tech Solutions Corporate 1HFY23 Underlying EBITDA1 49.9 29.7 68% Underlying EBITDA margin1 (%) 36
Slide 13: Platform segment results
Platform segment results Continued FUA growth, higher interest rates Funds Under Administration ($bn) and disciplined cost management leading to $73.0 $4.8 expanding UEBITDA margins $68.3 $5.0 ($5.4) ($1.0) $1.3 $1.3 ($2.3) $65.6 $5.8 $17.2 $3.0 $18.3 $15.9 1HFY23 1HFY22 Change $m $m % Platform FUA
Slide 14: Platform segment results
Platform segment results Platform segment delivering scale benefits $5.8bn of net inflows and $1.3bn positive market Revenue and Expenses ($m) Revenue Expenses UEBITDA margin movements during UEBITDA Margin (%) $m 1HFY23 driving continued 150 42 41 growth in the platform 40 segment 39 100 38 37 36 S
Slide 15: Composition of platform custody FUA and revenue margins
Composition of platform custody FUA Portfolio Composition of Platform custody FUA and Revenue ($m) and revenue margins 15% 6%1% 6% 3% 6% 6%1% 1% 16% 1% 3% 85% 81% 93% 93% Xplore Super Admin successor fund transfers (SFTs) 1HFY23 FUA 1HFY23 Revenue FY22 FUA FY22 Revenue substantively completed in 1HF
Slide 16: Platform revenue
Platform revenue Platform Revenue ($m)1 +33% Platform revenue growth of 33% reflecting growth 102.7 in FUA and the RBA Official Cash Rate. 15.4 83.2 4.1 Platform revenue increased to $102.7 million (up 33%) 77.3 3.1 2.8 Revenue continues to increase with the scale of the 57.3 business, platform reve
Slide 17: Tech Solutions results
Tech Solutions results Class acquisition driving growth in the Tech Underlying EBITDA ($m) Solutions segment. Class software UEBITDA capitalisation policy aligned to HUB24 policy Margin 27.9% 46.6% 31.4% reducing UEBITDA by $3 million $3.0 Large 2.0 (1.3) 13.5 1HFY23 1HFY22 Change (3.0) 10.5 $m $m %
Slide 18: Group expenses
Group expenses Group Expenses by function ($m) +64% 114.5 Investing to support scale and deliver growth, 15.8 whilst delivering underlying operating leverage 98.7 +23% 23.4 75.3 Group expenses increased by $14.0 million or 23% before 69.6 2.9 the addition of Class and costs associated with strategic
Slide 19: Increasing profitability
Increasing profitability Statutory NPAT up 85% and Underlying NPAT up 87% $4.0 million of strategic transaction Impairment charge of $3.3 million in Higher amortisation, as development and project costs in relation to Xplore relation to the carrying value of the and capitalisation of IT assets integ
Slide 20: Strategy & Outlook
Strategy & Outlook Andrew Alcock Managing Director
Slide 21: Group capabilities creating shareholder value and growth
Group capabilities creating shareholder value and growth Our strategic pillars Platform PARS Software, data and tech Custodial Non-custodial Deliver customer value and growth Solutions and Services administration administration Market-leading functionality, innovative solutions and customer service
Slide 22: HUBconnect enhancing strategic relationships to deliver growth
HUBconnect enhancing strategic relationships to deliver growth Source documents and data Licensee challenge Delivering licensee efficiencies and scalable Machine Learning Access to quality, integrated Document industry solutions Classifier data is critical for Licensee efficiency Enabling licensees
Slide 23: HUBconnect enabling platform growth and customer advocacy
HUBconnect enabling platform growth and customer advocacy Adviser challenge Delivering adviser Producing client reports for efficiency, advocacy reviews is time consuming & and client experience inefficient Reducing report preparation time by 95% on average for client meetings Deepening adviser-clie
Slide 24: Pursuing growth and delivering results
Pursuing growth and delivering results Market leadership Leverage investment Ongoing investment Leverage acquired in our core in operations and to develop platform capabilities to propositions technology to support of the future and accelerate platform future scale and enable industry growth, access
Slide 25: 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’, date of presentation. This
Slide 26: AUB
AUB