Hub24 Limited · ASX:HUB
Hub24 — CBA Equities Financials Small Companies Day (March 2014)
23 slides from Hub24's conference presentation, Mar 19, 2014
Slide 1: HUB24 Limited - CBA Equities Financials Small Companies Day presentation
For personal use only HUB24 Limited CBA Equities ‐ Financials Small Companies Day presentation Andrew Alcock – Chief Executive Officer 20 March 2014
Slide 2: Disclaimer
Disclaimer For personal use only Summary information The material that follows is a presentation of general background information about HUB24 Limited’s (‘HUB’) activities. This information given in summary form and does not purport to be complete and should be read in conjunction with previous ASX
Slide 3: Overview
Overview For personal use only • Company Background • Industry Landscape • Our advantage • Half FY14 in review • Key statistics at 31 January 2014 • Financial Summary • Outlook HUB24 3
Slide 4: Company Background
Company Background CORPORATE OVERVIEW For personal use only • HUB24 is a financial services company listed on the ASX (ASX: HUB). • HUB24 is an award‐winning, next‐generation investment and superannuation platform service. • As specialists in proprietary platform technology, we build and provide sta
Slide 5: HUB24 Executive Team
HUB24 EXECUTIVE TEAM For personal use only Andrew Alcock – Chief Executive Officer Andrew has over 20 years experience across wealth management encompassing advice, platforms, industry superannuation, insurance and information technology. Andrew was formerly Chief Operating Officer of Genesys Wealth
Slide 6: Who We Are
WHO WE ARE For personal use only • HUB24 is a full featured Wrap Platform incorporating Investor Directed Portfolio Service (IDPS) and Super/Pension services. • Market leading Managed Portfolio functionality. • Open architecture, independent, offering wide investment choice. • Ability to build major
Slide 7: What We Do
WHAT WE DO For personal use only • We develop, distribute and operate the HUB24 Investment and Superannuation platform. • Our customers are financial advisers, accountants, stockbrokers and institutions. • We allow our larger corporate customers to white label the platform under their own brand. • V
Slide 8: Industry Landscape
Industry Landscape INVESTMENT & SUPERANNUATION GROWTH For personal use only • The personal investments market was $2,275bn as at 30 June 2013 and is expected to grow at 7.8% p.a. (4.8% in real terms) over the next 15 years.* • Wrap platforms, including separately managed accounts (SMA) and model por
Slide 9: Platform Development & Functionality
PLATFORM DEVELOPMENT & FUNCTIONALITY For personal use only The 2012* Investment Trends Platform Survey rated HUB24 as: • Winner – Most New Developments category. • Now rated as serious competitor to major platforms. Relative change in platform scores 25% 23% 20% Developing at Warp Speed! 15% 10% 9%
Slide 10: Platform Development & Functionality
PLATFORM DEVELOPMENT & FUNCTIONALITY For personal use only Based on Analyst reviews of platform functionality conducted by Investment Trends HUB24 10
Slide 11: Our advantage
Our advantage For personal use only MARKET LEADING MANAGED PORTFOLIO CAPABILITY • Enables dealer groups to offer advisers and their clients fully implemented SMAs and model portfolios made up of a range of asset types and classes. • Dealers can earn ongoing portfolio management fees and provide a mo
Slide 12: Technology and ASX Listed
For personal use only TECHNOLOGY • Proven internal technology development team that has taken prior projects through to successful commercialisation . • HUB24 owns the IP and has the opportunity to develop and deploy new functions and features more rapidly than our peers. ASX LISTED • Maximum transp
Slide 13: Half FY14 in review
HALF FY14 in review For personal use only Growing business with scale benefits emerging FUA BALANCE • FUA increase of 61% to $619m (31 $ 'M Dec). 700.00 • 30% increase in active advisers. 600.00 • Further developing a scalable. 500.00 operation to cater for continuing rapid 400.00 growth. 300.00 • E
Slide 14: Half FY14 in review
HALF FY14 in review For personal use only Financial • Revenue increase of 251% to $1.4m for half FY14 ($394k prior corresponding period). • Cash balance of $16.52m. • Investment to accelerate FUA transition. • Improved processes to ensure operational scalability, decreasing admin staff requirement t
Slide 15: Key statistics as at January 2014
Key statistics as at 31 January 2014 FUA For personal use only • Total FUA of $635m. (currently $709m**) FUA BALANCE $ • 66% FUA increase*. 'M • 91% increase in FUA held in managed portfolios*. 700.00 • 36% increase of FUA per adviser*. 600.00 INFLOWS 500.00 • Monthly cash inflows of $25m+*. 400.00
Slide 16: Key statistics as at January 2014
Key statistics as at 31 January 2014 For personal use only QUARTERLY $ 'M QUARTERLY NET FLOWS Net flows* 100 90 80 $30m monthly average for FY14, increased from $19m 70 60 monthly average for FY13. 50 40 30 20 10 0 Oct '11 Jan '12 Apr '12 Oct '12 Jan '13 Apr '13 Oct '13 Jan '14 July '12 July '13 Cas
Slide 17: Major HUB Clients
MAJOR HUB 24 CLIENTS For personal use only • Ord Minnett • Beresford's Financial Planning • Sentry Group • Unison Wealth Management • Gamma Wealth Management • Matrix Planning Solutions • Elston Partners • Interprac Ltd • Premium Wealth Management The combined funds under advice across HUB24’s major
Slide 18: Financial summary
Financial summary (continuing operations) For personal use only Half year ended Half year ended KEY FINANCIAL RESULTS 31‐Dec‐13 31‐Dec‐12 % change • Continuing rapid increase in FUA is translating into FUA (million) 618.9 252.7 revenue, gross profit and EBITDA improvements. INCOME $ $ Revenue 1,383,
Slide 19: Scale Efficiencies & Margin Expansion
SCALE EFFICIENCIES & MARGIN EXPANSION For personal use only A$ HUB24 Revenue & Direct Costs ‐ 1HFY13 to 2HFY14 1,600,000 1,400,000 HUB initiatives focussed on further margin expansion and 1,200,000 improvements in direct cost to income ratio 1,000,000 800,000 600,000 400,000 200,000 ‐ 1H FY13 2H FY1
Slide 20: Corporate Financials - Capital Structure
CORPORATE FINANCIALS For personal use only Capital Structure at 19/03/2014 Shares on issue 47.06m Share price $0.99 Market capitalisation $46.59m Substantial shareholders Thorney Holdings Ltd 17.23% Ian Litster 8.02% Paradice Investment Management Pty Ltd 5.61% HUB24 20
Slide 21: Corporate Financials - Balance sheet
CORPORATE FINANCIALS For personal use only Balance sheet (as at 31 December 2013) Current assets $17.51m Non-current assets $ 7.56m Total assets $25.07m Current liabilities $ 1.87m Non-current liabilities $ 0.08m Total liabilities $ 1.95m Net assets $ 23.12m Equity $ 23.12m 30 June 2013 31 December
Slide 22: Outlook
Outlook For personal use only 1. FUA growth trend expected to continue: – Maximise existing adviser and dealer relationships. – Ongoing business development including white labels for dealer groups, stockbrokers and accountants. – Promote our unique managed portfolio capability as a FOFA compliant s
Slide 23: Outlook
Outlook For personal use only 3. Enhance product capability to target high net worth individuals and SMSF clients. 4. Efficiently develop and grow our high calibre talented team to support our future success. 5. Actively reviewing acquisition opportunities and strategic alliances. HUB24 23
HUB24 — CBA Equities Financials Small Companies Day (March 2014) on 6ix