Hub24 Limited · ASX:HUB
Hub24 — H1 2021 Earnings Presentation
24 slides from Hub24's earnings presentation, Feb 23, 2021
Slide 1: AUB
AUB
Slide 2: 1HFY21 Results Presentation
23 FEB 2021 1HFY21 RESULTS PRESENTATION
Slide 3: Making a difference in customers' lives through 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 500 25 56% • Launch of new 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 Overall Platform
AUSTRALIA’S BEST OVERALL PLATFORM¹ 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 Group operating revenue Interest income Direct costs Gross profit Operating expenses Underlying EBITDA * EBITDA Underlying NPAT 2 Statutory NPAT HUB 1H21 $m 62.1 4 (26.0) 36.4 (20.0) 16.4 1H20 $m 52.7 0.3 (24.9) 28.0 (16.4) 117 Change OPERATING REVENUE ($m) $52.7 JHFY20 8.8 P
Slide 11: Platform Segment Results
PLATFORM SEGMENT RESULTS Strong FUA growth driving increased profitability PLATFORM FUNDS UNDER ADMINISTRATION ($b) 1HFY21 1HFY20 change PLATFORM $m Total FUA (Now 33b") 31.3b Platform FUA (Now 24b') 22.0b Platform Net Flows 3.1bn FUA Net flows Market FUA Net flows Market FUA —————————————— 31Dec-19
Slide 12: Platform Revenue
PLATFORM REVENUE PLATFORM REVENUE PERFORMANCE ($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
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