Hub24 Limited · ASX:HUB
Hub24 — Investor Day (November 2023)
46 slides from Hub24's investor day presentation, Nov 21, 2023
Slide 1: Empowering better financial futures, together
Empowering better financial futures, together For personal use only Investor Strategy Day 21 November 2023
Slide 2: Leading the wealth industry as the best provider of integrated platform, technology & data solutions
Leading the wealth industry as the best provider of integrated platform, technology & data solutions For personal use only Australia’s SMSF software provider & Market-leading Managed Data-led solutions best platform1 advice platform of the year2 Portfolio capability1 leveraging emerging technologies
Slide 3: HUB24 and Class market-leadership - recognised by customers and industry
HUB24 and Class market-leadership - recognised by customers and industry For personal use only • Overall Best Advice Platform1 • Best Client Experience1 • Ease of Onboarding1 • Best Functionality1 • Best Adviser Support1 SMSF Software provider of • Best Investment Options1 the year3 • #1 Best Overal
Slide 4: Delivering on our strategic objectives
Delivering on Secure Information Practice our strategic Document Sharing Digital Signing Management CRM Single view of wealth for financial Audit objectives Consent For personal use only Actuarial professionals Document Vault and their clients Advice Tech Live Portfolio Reporting Work Advice Applica
Slide 5: HUB24 Group – market leading capability driving customer value & growth
HUB24 Group – market leading capability driving customer value & growth Platform Tech Solutions For personal use only 92 6000+ PLATFORM PARS myprosperity Financial Services Clients Unique Clients3 Custodial Non-custodial Client Technology & Data Services Cloud-based software administration administr
Slide 6: HUB24 is well-positioned to benefit from industry trends
HUB24 is well-positioned to benefit from industry trends For personal use only Demand for wealth Outcomes of Quality of Specialist platforms advice is increasing Advice Review to are extending their lead however financial provide opportunities to while institutional professionals are limited reduce
Slide 7: Harnessing the power of our ecosystem to deliver value
Harnessing the power of our • Clear growth strategy delivering strong financial results ecosystem to For personal use only deliver value • Market leadership in our core propositions with growing client advocacy • HUB24 ecosystem driving competitive advantage and extension of relationships • Innovati
Slide 8: Agenda
Agenda For personal use only 1. Welcome 2. Strategy 3. myprosperity 4. Class Andrew Alcock Jason Entwistle Peter McCarthy Tim Steele Managing Director Director, Strategic myprosperity Chief Class Chief and Chief Development Executive Officer Executive Officer Executive Officer 5. HUB24 Platform 6. D
Slide 9: We've continued to deliver on our strategy
We’ve continued to deliver on our strategy For personal use only Continued enhancements to Consolidated Class leadership HUB24 Platform proposition position Launched HUB24 SMSF Access, Extended single view of wealth leveraging Group capabilities reporting with HUB24 Present Acquired myprosperity, St
Slide 10: Strategy
For personal use only Strategy Jason Entwistle Director, Strategic Development 10
Slide 11: Shifts in population and workforce driving wealth needs across the lifecycle
Shifts in population and workforce driving wealth needs across the lifecycle For personal use only Customer balance and complexity Rise of the Millennials Aging Population • Digital first • Desire for certainty • SMSF preference • Longevity risks Generational Wealth • ESG focus • Govt agenda Transfe
Slide 12: Opportunity: Supporting the wealth needs of Australian households
Opportunity: Supporting the wealth needs of Australian households For personal use only 11M HUB24 is uniquely positioned to provide market-leading, 3 integrated solutions to empower a better financial future for more Australians through the relationships it has. Households in Australia 1.8M 4 Austra
Slide 13: The wealth profession continues to mature but productivity remains a key challenge
The wealth profession continues to mature but productivity remains a key challenge For personal use only Greater demand for Need for productivity Industry reconstructing financial professionals increase across wealth around advice advice & accounting Emergence of advice networks 2.8M individuals see
Slide 14: The HUB24 ecosystem helping to drive productivity
The HUB24 Secure Practice ecosystem Information Document Sharing Signing Management CRM Single view of wealth for advisers helping to drive Digital Consent Audit and their clients For personal use only Document Actuarial productivity Vault Live Portfolio Advice Tech One way of doing Reporting Work b
Slide 15: myprosperity
For personal use only myprosperity Peter McCarthy Chief Executive Officer, myprosperity 15
Slide 16: myprosperity - transforming client engagement & experience
myprosperity - Single view One way of Reporting transforming client of wealth doing business & insights engagement & For personal use only Open experience Document vault e-signatures Virtual rooms access to third party solutions Task tracker Digital checklists Digital fact finds Enables a total view
Slide 17: myprosperity demonstration
myprosperity demonstration For personal use only 17
Slide 18: Class
For personal use only Class Tim Steele Chief Executive Officer, Class 18
Slide 19: Key trends shaping the SMSF Industry
Key trends shaping the SMSF Industry Growth in net establishments and increasing contributions signal renewed confidence in SMSF sector For personal use only Net fund establishment1 Concessional and non-concessional contributions1 1. Class 2023 Benchmark Report – Class, APRA and ATO data 19
Slide 20: Key trends shaping the SMSF Industry
Key trends shaping the SMSF Industry For personal use only Funds established by age1 Establishment growth driven by Gen X and Millennials and aligned to our strategy 1. Class 2023 Benchmark Report – Class, APRA and ATO data 20
Slide 21: Clear strategic focus
Clear strategic focus Creating the future of wealth accounting administration through exceptional technology, data solutions and seamless experiences For personal use only Strategic priorities Super – Premium SMSF admin Leading ASIC corporate compliance Lead today solution solution (Corporate Messen
Slide 22: Leading today
Leading today Focus on clients and core to consolidate market leadership For personal use only Focus on clients Focus on core Focus on team • Held Class Ignite • Reset market sentiment • Embedded new leadership • Lifted NPS by 6pts to equal team • Prioritised development on 1st customer satisfaction
Slide 23: Creating tomorrow
Creating tomorrow Innovate and extend products to differentiate and grow market share For personal use only Existing solutions Enhanced solutions New solutions • Class Super • Super Comply • Compliance of the Future • Class Trust • DaaS • Class Portfolio • NI Corporate Messenger 23
Slide 24: Building together
Building together Collaborate with clients, partners and HUB24 to develop new solutions For personal use only Capabilities Enhancements Future roadmap • Data Authority Portal • Class Data feeds to HUB24 and • myprosperity client portal for • Billing platform myprosperity Class • HUB24 SMSF Access •
Slide 25: HUB24 Platform
For personal use only HUB24 Platform Chesne Stafford Chief Growth Officer 25
Slide 26: Strong inflows with significant opportunity to grow market share
Strong inflows with significant opportunity to grow market share For personal use only Yearly FUA net inflows analysis Latent opportunity HUB24 has access through relationships to Since June 2020, 9% $11.7B more than 74% of the total adviser market1 average adviser FUA on 10% $9.7B HUB24 platform ha
Slide 27: Strong outlook for current product solutions with large adviser footprint
Strong outlook for current product solutions with large adviser footprint For personal use only Wholesale Discretionary Accounts Customer balance and complexity Portfolio Admin & Reporting Service HUB24 Choice HUB24 Core Starting out Early career Paying off debt Growing wealth Starting retirement Do
Slide 28: HUB24 expanding offers to service growing customer needs
HUB24 expanding offers to service growing customer needs For personal use only Wholesale Discretionary Accounts Customer balance and complexity Portfolio Admin & Reporting Service HUB24 Choice Retirement Income Solutions SMSF Access SMSF Access HUB24 Core HUB24 Discover HUB24 Discover Starting out E
Slide 29: Leveraging HUB24's ecosystem to deliver new solutions
Leveraging HUB24’s ecosystem to deliver new solutions For personal use only Starting out, wealth accumulation Wealth drawdown & preservation High Net Worth HUB24 Discover HUB24 SMSF Access Allianz Retire+ AGILE HNW features A low cost streamlined Leveraging capability across A Guaranteed Income For
Slide 30: Competitive advantage driving long-term growth
Competitive advantage driving long-term growth For personal use only Solutions Customer driven with flexibility and choice Overall Best Advice Platform1 #1 Best Overall Platform2 #1 Managed Portfolio Product Offer2 Reputation #1 SMSF Advice Platform3 Delivering Familiarity & advocacy among advisers
Slide 31: Data & Innovation
For personal use only Data & Innovation Paul Biggs Chief Information Officer 31
Slide 32: Data is what we do
Data is what we do For personal use only 147TB 150+ APIs One third On average, over Infrastructure and data technology of data stored called up to of HUB24’s 700k files underpinning across our 1.15million times workforce in processed from solutions to over technology platform, spanning 335 databases
Slide 33: Investment in data infrastructure to support our strategy and growth
Investment in data infrastructure to support our strategy and growth For personal use only Scalability Faster time-to-insights Significant investment Delivering simpler Scale on demand Real-time data processing & analytics in data infrastructure data architecture and enhanced capabilities Delivering
Slide 34: Committed to innovation
Committed to innovation Dedicated For personal use only innovation team We’re leveraging emerging technologies to solve a productivity problem The Open Research & Robotic Process collaboration Innovation Design Automation (RPA) Lab AI / ML – Solving the Unstructured Data Problem Experimentation 34
Slide 35: Leveraging AI & machine learning to solve a productivity problem
Leveraging AI & machine learning to solve a productivity problem For personal use only Source documents and data Improving efficiencies and Reducing licensee risk and reducing manual tasks the burden of compliance Machine Learning Document Classifier Automated workflows, intelligent Validating the a
Slide 36: Future innovations in development
Future innovations in development For personal use only Creating efficiency & productivity Tailoring large language Use Case #1: Use Case #2: models and ML algorithms Summarisation models 3D Visualisation Tools to meet emerging needs of advice networks and Summarises audio and video files Reveal pat
Slide 37: HUBconnect
Available Now HUBconnect Data capabilities Machine Learning/AI A comprehensive data driven technology solution for brokers, System agnostic data 28 types of document For personal use only advice networks and financial professionals delivering data, integration – API’s / Files classifications complia
Slide 38: Outlook & Business Performance
For personal use only Outlook & Business Performance Kitrina Shanahan Chief Financial Officer 38
Slide 39: Consistently delivering growth and shareholder value
Consistently delivering growth and shareholder value For personal use only Funds under administration Group Revenue 4-YR CAGR +46% 4-YR CAGR +58% Group UEBITDA 4-YR CAGR +61% $80b Revenue UEBITDA $70b $300m $110m $100m $60b $250m $90m $50b $80m $200m $70m $40b $60m $150m $30b $50m $40m $20b $100m $3
Slide 40: Strong financial performance and capital management
Strong financial performance and capital management For personal use only EPS - Diluted (CPS) Dividends (CPS) 4-YR CAGR +42% 4-YR CAGR +63% CPS • Buy back announced 50 CPS in August for up to 45 35 $50 million in shares 40 30 35 • To date, HUB24 has 30 25 bought back 153,000 25 20 shares for total 2
Slide 41: Strong pipeline and revenue margins
Strong pipeline and revenue margins 30 Sep 23 FY25 For personal use only Large migrations on track, next 18 months Guidance* $65bn $92bn $100bn • EQT $4bn with estimated phasing: Platform FUA1 Net flow range $10- (excluding PARS FUA) 12bn p.a. and large 2HFY24 $2.5 - $3.75bn migration ~$6bn. Market
Slide 42: Wrap Up & Q&A
For personal use only Wrap Up & Q&A Andrew Alcock, Managing Director & Chief Executive Officer 42
Slide 43: Well-positioned to deliver sustainable long-term growth
Well-positioned to deliver sustainable long-term growth For personal use only Leveraging core Demographic change Transforming client HUB24 ecosystem products & capabilities driving demand for engagement and driving competitive into new market advice & influencing our experience advantage and enablin
Slide 44: Questions?
For personal use only Questions? 44
Slide 45: Disclaimer
Disclaimer SUMMARY INFORMATION RISK OF INVESTMENT For personal use only The material herein is a presentation of general background information about An investment in HUB shares is subject to investment and other known and HUB24 Limited’s (‘HUB’) activities current as at date of presentation. This u
Slide 46: Contacts
Contacts About HUB24 For personal use only Kitrina Shanahan HUB24 Limited is listed on the Australian Securities Exchange, and includes the award-winning HUB24 platform, HUBconnect, the Xplore Wealth platform, Class and Chief Financial Officer myprosperity. HUB24 Limited The HUB24 platform offers ad