Slide 1: FY21 Results Presentation
FY21 RESULTS PRESENTATION 24 AUGUST 2021
Slide 2: HUB24 FY21 Overview
HUB24 FY21 OVERVIEW is a leading PLATFORM PARS 92 FINANCIAL Australian provider of SERVICES CLIENTS Custodial administration Non-custodial administration wealth management products & services. Platform FUA PARS FUA HUBconnect Broker HUB24’s investment $41.4BN $17.2BN Customer management & platforms
Slide 3: Strong Track Record of Sustainable Growth
STRONG TRACK RECORD OF SUSTAINABLE GROWTH $m REVENUE 5YR CAGR 36% UEBITDA 5YR CAGR 57% 120 Australia’s 100 Best Platform 80 Overall² Growing rapidly with 60 3.9% market share and significant 40 opportunity for further 20 growth³ 0 FY17 FY18 FY19 FY20 FY21 Revenue¹ UEBITDA¹ 1. Group Operating revenue
Slide 4: FY21 Financial Highlights
FY21 FINANCIAL HIGHLIGHTS1 Statutory NPAT $9.8m Up 20% Including $7.5m of transaction & implementation costs $110.9m $101.1m Underlying NPAT2 34% Total Group Revenue³ 36% Platform Revenue3 $15.0m Up 53% $36.2m $37.9m Full Year Dividend 10cps Up 43% 47% Group Underlying EBITDA 32% Platform Underlying
Slide 5: Empowering Better Financial Futures, Together
EMPOWERING BETTER FINANCIAL FUTURES, TOGETHER. Strategic pillars DELIVER CONTINUE TO BUILD COLLABORATE TO CUSTOMER VALUE THE PLATFORM OF SHAPE THE FUTURE OF & GROWTH THE FUTURE THE WEALTH INDUSTRY Continue to develop our platform Deliver new innovative solutions Leverage our technology & data propos
Slide 6: A Year of Growth, Innovation & Delivering on Strategy
A YEAR OF GROWTH, INNOVATION & DELIVERING ON STRATEGY Completed three Continued to strategic transactions enhance our offer Record platform PARS FUA Acquisition of Xplore & Ord Delivered platform customer 997 Minnett PARS delivering service enhancements, annual net $17.2bn across new advisers up FUA
Slide 7: HUB24 - Australia's Best Platform Overall & Voted No.1 by Advisers
HUB24 - AUSTRALIA’S BEST PLATFORM OVERALL & VOTED NO.1 BY ADVISERS 1 st Best Platform Overall¹ HUB24 has the highest adviser consideration when choosing a new platform³ 1 st Platform Service² HUB24 achieved the highest increase in number of adviser relationships³ Advisers who use HUB24 1 st Managed
Slide 8: Growing FUA and Market Share
GROWING FUA AND MARKET SHARE Netflow share to underlying market share ratio¹ Growth in Platform FUA, PARs FUA & net flows per quarter pcp² FUA $m Netflows ($m) 140.00 60,000 4,000 120.00 3,500 50,000 100.00 3,000 80.00 40,000 2,500 60.00 30,000 2,000 40.00 1,500 20.00 20,000 - 1,000 6 7 8 9 10 10,00
Slide 9: Financial Results
FINANCIAL RESULTS KITRINA SHANAHAN Chief Financial Officer 9
Slide 10: Group Financial Results
GROUP FINANCIAL RESULTS(1) Operating Revenue ($m) + 36% on FY20 0.3 FY21 FY20 Change $m $m % 26.9 Group Operating Revenue 107.8 80.6 34% 107.8 Interest Income 1.3 0.6 117% 80.6 Insert Direct and Operating Expenses (72.4) (56.0) 29% Underlying EBITDA from FY20 Platform Tech Solutions FY21 36.7 25.2 4
Slide 11: Platform Segment Results
PLATFORM SEGMENT RESULTS Funds under Administration ($bn) $58.6 STRONG FUA AND NETFLOW GROWTH DRIVING $17.2 INCREASED REVENUE, OFFSET BY RBA RATE CUTS, $28.0 LOWER CASH BALANCES AND LOWER TRADING VOLUMES. $4.3 ($0.6) $17.4 $13.1 $8.9 $41.4 $4.9 $0.2 FY21 FY20 Change $0.2 $12.9 $17.2 $m $m % FY19 Net
Slide 12: Platform Segment Results Cont.
PLATFORM SEGMENT RESULTS CONT… FUA GROWTH DELIVERING SCALE BENEFITS Revenue and Expenses ($m) Cost to $m Income % 110 90 Revenue growth of 100 36% driven by Netflow 90 85 momentum, partially offset 80 by RBA rate cuts and 70 80 2HFY21 lower trading volumes returning to pre- 60 75 COVID levels 50 40
Slide 13: Composition of Platform FUA
COMPOSITION OF PLATFORM FUA Composition of Platform FUA and Revenue ($m) 4% THE ACQUISITION OF XPLORE AND LAUNCH 16% 3% 1% OF PRIVATE LABELS HAS DIVERSIFIED FUA 81% 94% Retail clients now represent 81% of Platform FUA FY21 Platform FY21 Revenue FY20 Platform 100% FUA & FUA By Segment Revenue by Segm
Slide 14: Platform Revenue
PLATFORM REVENUE Platform Revenue ($m)² 36% PLATFORM REVENUE GROWTH OF 36% DRIVEN BY ACQUISITIONS AND RECORD NET FLOWS 5.7 101.1 0.8 Platform revenue increased to $101.1 million (up 74.3 3.8 7.9 57.3 36% on pcp) with the combined contribution of the 39.3 43.8 acquisitions being $10.4 million during
Slide 15: Group Expenses
Group Underlying Expenses from continuing operations GROUP EXPENSES by function ($m) 26% INVESTING FOR FUTURE GROWTH 8.1 2.9 (2.0) AND PRODUCT INNOVATION 9.6 7.8 95.5 Group expenses grew $18.3 million or 26% before 87.4 69.1 costs associated with strategic transactions and other abnormal items FY20
Slide 16: NPAT
NPAT STRONG GROWTH BEFORE STRATEGIC TRANSACTION COSTS $7.5 million of non-recurring Share based payments of $6.2 Slightly higher amortisation, as corporate costs supporting strategic million in FY21 in relation to the development and capitalisation of growth related to the transaction, Employee Shar
Slide 17: Strategy and Outlook
STRATEGY AND OUTLOOK ANDREW ALCOCK Managing Director 17
Slide 18: HUB24 Well Positioned to Capture Market Opportunities
HUB24 WELL POSITIONED TO CAPTURE MARKET OPPORTUNITIES Superannuation Australian Investment Managed Account PARS Market1 Platform Market2 Market3 Market4 Growing at HUB24 market share HUB24 market share HUB24 market share 11.3%⁵ 3.9% 19% 12% Other Investment Other services Industry $51bn $289.33bn $1
Slide 19: Key Trends Shaping the Industry
KEY TRENDS SHAPING THE INDUSTRY Specialist platforms The use of The privately owned Managing the There is increasing continue to grow managed accounts and self-licensed compliance burden demand for market share with is accelerating with advice segment is continues to be the financial advice CAGR of
Slide 20: We Continue to Deliver on Our Strategy
WE CONTINUE TO DELIVER ON OUR STRATEGY COLLABORATE TO CONTINUE TO BUILD CUSTOMER SHAPE THE FUTURE THE PLATFORM OF VALUE & GROWTH OF THE WEALTH THE FUTURE INDUSTRY • Completed strategic transactions to • Completed Xplore acquisition to • Strategic investment & technology increase scale, enhance produ
Slide 21: Prioritising Future Growth Opportunities
PRIORITISING FUTURE GROWTH OPPORTUNITIES COLLABORATE TO CONTINUE TO BUILD CUSTOMER SHAPE THE FUTURE THE PLATFORM OF VALUE & GROWTH OF THE WEALTH THE FUTURE INDUSTRY • Create further value for clients by • Complete integration of strategic • Collaborate with licensees to develop tech enhancing our ma
Slide 22: Outlook
OUTLOOK POSITION HUB24 FOR PURSUE CONTINUING STRONG ONGOING SUCCESS GROWTH FINANCIAL RESULTS • Continued investment in • Leverage current licensee and • Leverage FUA growth and Platform FUA target product innovation & customer adviser relationships and business scalability to deliver (excluding PARS
Slide 23: Disclaimer
DISCLAIMER SUMMARY INFORMATION FORWARD LOOKING STATEMENTS The material herein is a presentation of general background This presentation contains certain forward-looking information about HUB24 Limited’s (‘HUB’) activities current statements. The words ‘anticipate’, ‘believe’, ‘expect’, as at date of
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