Slide 1: For personal use only
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Slide 2: FY18 Results Presentation
For personal use only FY18 RESULTS PRESENTATION 20 Aug 2018
Slide 3: Overview
For personal use only Highlights Financial results Market & growth opportunities OVERVIEW Outlook Additional information 3
Slide 4: Group Financial Highlights
For personal use only GROUP FINANCIAL HIGHLIGHTS Gross Underlying Underlying Operating Inaugural Revenue Profit EBITDA NPAT1 Cashflow Dividend2 $84.0m $34.3m $11.4m $5.4m $12.2m 3.5c Ex-dividend date: 36% 65% 123% 129% 201% 17 September 2018 Payment date: 19 October 2018 1. Underlying NPAT is a non-
Slide 5: Business Highlights
For personal use only BUSINESS HIGHLIGHTS 1st Total FUA Net flows of Managed Accounts Broadening Supporting Connecting multiple 2016 & 20171 platform reach customised data sources and $8.3b $2.4b User Interface through portfolio applications to development of construction with create your own & Mobi
Slide 6: HUB24 Leading Change in Wealth Management
For personal use only HUB24 LEADING CHANGE IN WEALTH MANAGEMENT FUA $M 9,000 85 % FUA 5 YR CAGR Revenue $M 45 The fastest growing platform1 leveraging industry Our investment in innovation is continuing to capture increasing transformation market opportunity 8,000 7,000 100 % Revenue 5 YR CAGR 40 35
Slide 7: There's a Reason We're the Fastest Growing Platform
For personal use only THERE’S A REASON WE’RE THE FASTEST GROWING PLATFORM 18.0 NET FLOW SHARE to UNDERLYING • We are constantly innovating and leading change MARKET SHARE RATIO 16.0 • The traditional ‘asset administration’ role of platforms has Specialist Institutional been disrupted net flow growth
Slide 8: And We've Only Just Begun
For personal use only AND WE’VE ONLY JUST BEGUN HUB24 ANNUAL INVESTMENT IN GROWTH AND SHARE OF NET FLOWS 1 MY APPS Bring your own apps, or 14.0% $12.0 use ours, to optimise the client experience 12.0% $10.0 10.0% $8.0 ADVISERHUB + 8.0% $6.0 AGILITY Connect multiple data 6.0% CONNECT sources and apps
Slide 9: Group Financial Results
For personal use only REVENUE BREAKDOWN $m GROUP FINANCIAL RESULTS 13.4 5.0 3.8 STRONG FUA GROWTH DRIVING INCREASED PROFITABILITY IT services FY18 FY173 Change first included $84.0 2H17 $m $m % $61.9 + 36% Group revenue 84.0 61.9 36% FY17 1 Platform Licensee IT Services FY18 1 Direct costs (49.7) (4
Slide 10: Platform Segment Results
For personal use only PLATFORM SEGMENT RESULTS FY18 FY17 change Continuing investment and solid execution is being rewarded with growth in FUA and $m $m % revenue whilst delivering expanding profit margins FUA (Now $8.7b ‐ unaudited) $8.3b $5.5b 51% Revenue 39.7 26.3 51% Revenue increase of 51% driv
Slide 11: Platform Segment Results: Profit Lines Reflecting Scale
For personal use only PLATFORM SEGMENT RESULTS PROFIT LINES REFLECTING SCALE BENEFITS OF INCREASING FUA REVENUE, GROSS REVENUE AND EXPENSE TREND LINES $m PROFIT AND UNDERLYING EBITDA¹ TRENDS $m 45 40 45 35 40 35 30 30 25 25 20 20 15 15 10 10 5 5 0 ‐ FY14 FY15 FY16 FY17 FY18 (5) Revenue Platform expe
Slide 12: The Market
For personal use only THE MARKET KEY TRENDS SHAPING OUR INDUSTRY ADVISER TRENDS Australian platform Superannuation pool in In 2018 platform net market Australia expected to be inflows of Non-institutionally owned Advisers are 41%5 of $809bn $4tn 49% the market, having increased by 8% from 33% in Dec
Slide 13: Our Customer Commitment
For personal use only OUR CUSTOMER COMMITTMENT OUR COMMITMENT TO INNOVATION AND SERVICE HAS BUILT STRONG CUSTOMER ADVOCACY 89% of advisers Advisers using HUB24 HUB24 continues to win who use us as their have the lowest intention industry recognition as 89% main platform say we are the best to change
Slide 14: Outlook
For personal use only OUTLOOK Leverage our current foundations …and lay foundations for future growth • Deliver increasing financial results & scale-based profit • Continue to lead change, leverage market dynamics and margin expansion create new opportunities for clients and advisers through innovat
Slide 15: Additional Information
For personal use only ADDITIONAL INFORMATION 15
Slide 16: Further Platform Segment Results
For personal use only FURTHER PLATFORM SEGMENT RESULTS BROADENING DISTRIBUTION BASE 250 AVERAGE MONTHLY NET No of advisers 1,227 200 INFLOWS (‘m) 150 18 white labels in total, 3 new in FY18 100 61 new licensees to the platform in FY18 50 0 FY14 FY15 FY16 FY17 FY18 FY18 $M INCREASE ON FY17 Retail FUA
Slide 17: Licensee Segment Results
For personal use only LICENSEE SEGMENT RESULTS PARAGEM ADVISERS CONTINUE TO EMBRACE HUB24’s PLATFORM TO FY18 FY17 change DEVELOP BETTER OUTCOMES FOR $m $m % THEIR CLIENTS Revenue 35.8 30.8 16% Revenue increase of 16% over prior Direct costs (32.6) (28.2) 16% corresponding period Gross profit 3.2 2.7
Slide 18: IT Services Segment Results
For personal use only IT SERVICES SEGMENT RESULTS AGILITY’S MARKET LEADING CONNECT DESKTOP HAS OVER 2,500 USERS, FY18 FY17 change REPORTING ON OVER $200 BILLION OF CLIENT ASSETS $m $m % Revenue 8.5 4.7 81% An increase in users of the Connect software Direct costs (5.8) (3.0) 94% to 2,504 in FY18 Gro
Slide 19: Corporate Segment Results
For personal use only CORPORATE SEGMENT RESULTS FY18 FY17 change $m $m % Operating expenses (0.7) (0.5) 38% Underlying EBITDA (0.7) (0.5) 38% Share based payment expenses includes include $0.7 million due to the issue of options and performance Share based payment expense (1.5) (0.9) 65% rights to e
Slide 20: Capital Structure at August '18
For personal use only CAPITAL STRUCTURE AT 16 AUGUST ‘18 APPENDIX A -CORPORATE Shares on issue 61.59m Share price $11.99 INFORMATION Market capitalisation $738m SUBSTANTIAL SHAREHOLDERS Thorney Holdings Ltd 12.79% The Capital Group Companies Inc 6.23% 2000% Hyperion Asset Management Ltd 6.00% HUB24
Slide 21: Disclaimer
For personal use only DISCLAIMER SUMMARY INFORMATION FORWARD LOOKING STATEMENTS The material herein is a presentation of general background This presentation contains certain forward-looking statements. information about HUB24 Limited’s (‘HUB’) activities current as The words ‘anticipate’, ‘believe’