Slide 1: 1HFY17 Results Presentation
For personal use only Platform revenue 70% $11.8m Gross profit $8.3m 73% 1HFY17 EBITDA $1.7m before other significant items Underlying NPAT $0.9m RESULTS Operating PRESENTATION Cashflows $1.5m
Slide 2: Overview
2 Overview For personal use only 4 7 13 19 20 1HFY17 Opportunities Financial results Outlook Appendix A – highlights for growth Corporate Appendix B – Results reconciliation Appendix C – Segment sesults
Slide 3: HUB24 - a leader in wealth management
3 For personal use only HUB24 - a leader in wealth management HUB24 IS A LEADER IN WEALTH The fastest growing wrap platform1 capitalising on significant disruption in the wealth management MANAGEMENT PLATFORMS industry UNDERPINNED BY MARKET LEADING TECHNOLOGY Now profitable and Funds Under Admin
Slide 4: 1HFY17 highlights
4 For personal use only 1HFY17 highlights Netflows of Acquisition of $694m Launch 1st Agility of direct investing in in categories for Managed FUA Increase of 25% since international shares Accounts, User Interface 30 June 2016, now $4.4b Applications across 15 exchanges and Smartphone/Tablet Access
Slide 5: 1HFY17 financial results
5 For personal use only 1HFY17 financial results GROUP 1HFY17 1HFY16 % PLATFORM FINANCIAL 1HFY17 1HFY16 % FINANCIAL RESULTS $m $m CHANGE RESULTS $m $m CHANGE Group revenue 26.6 20.0 33% Retail FUA (now $4.4b) $4,149 $2,368 75% Direct costs (18.4) (15.2) 21% Revenue 11.8 6.9 70% Gross profit 8.3 4.8
Slide 6: Platform segment results
6 For personal use only Platform segment results MARGIN EXPANSION ACROSS ALL PLATFORM REVENUE AND PROFIT LINES AT INCREASING EXPENSES SCALE 1HFY17 Vs 1HFY16 PLATFORM – REVENUE, GROSS PROFIT, 14 Revenue increase – 70% OPERATING EBITDA9 AND EBITDA10 TRENDS 12 Direct & operating expense 10 increase – 3
Slide 7: HUB24 is well positioned for further growth
7 For personal use only HUB24 is well positioned for further growth INDUSTRY GROWTH FORECASTS Wrap platforms: fourfold increase next 15 years Sector Predicting By Year CAGR the fastest growing personal Superannuation assets $9.5 tn 2035 8.1% investment sector11 Deloitte Dynamics of Superannuation Re
Slide 8: HUB24 is well positioned for further growth
8 For personal use only HUB24 is well positioned for further growth MARKET SHARE BY NETFLOWS – TOP 10 PLATFORMS14 FUA AND NUMBER OF ADVISERS HUB24 has 0.5% share of Wrap, Platform & Master Trusts at 30 Sept ‘16 with 9.1% share of netflows 27 new licensees signed in 1HFY17 Non-institutional pla
Slide 9: HUB24 continues to win awards
9 For personal use only HUB24 continues to win awards
Slide 10: Acquisition of Agility Applications
10 For personal use only Acquisition of Agility Applications Agility Applications (‘Agility’) is a successful specialist technology services provider to the financial services industry, particularly stock brokers The business is currently earning approx. $1m BANKS EBITDA annually Licensing ove
Slide 11: Creating real value for our clients
11 For personal use only Creating real value for our clients…. HUB24 OFFERS THE MOST FUNCTIONAL MANAGED PORTFOLIO Enabling licensees TECHNOLOGY WITHIN A FULL to innovate, improve revenues and manage risk SERVICE PLATFORM KEY FEATURES THAT SET HUB24 APART INCLUDE: Depth of managed portfolio functio
Slide 12: A wealth of opportunities for current and new segments
12 For personal use only …with a wealth of opportunities for both our current and new segments Launch of 2 new white labels in Q1 2017 A further new white label agreement signed in late February New product enhancements including direct international equities …and now creating value for The
Slide 13: Financial results
For personal use only RESULTS FINANCIAL 13
Slide 14: Group financial results
14 For personal use only Group financial results GROUP 1HFY17 1HFY16 % FINANCIAL RESULTS $m $m CHANGE First reporting Group revenue 26.6 20.0 33% Platform ($11.8m) and Licensee segments ($14.4m) period where Direct costs (18.4) (15.2) 21% Trustee, administration and transaction services for Platform
Slide 15: Platform segment results
15 For personal use only Platform segment results GROUP FINANCIAL 1HFY17 1HFY16 % RESULTS $m $m CHANGE Retail FUA (now $4,360m) $4,149 $2,368 75% Continuing Revenue 11.8 6.9 70% Revenue growth driven by net inflows robust from a broadening client base Direct costs (4.8) (3.3) 48% investment in Gross
Slide 16: Platform segment results
16 For personal use only Platform segment results 1HFY17 INCREASE AVERAGE MONTHLY NET INFLOWS $M ON PCP Retail FUA (now $4.4b) 4,149 75% 140 Large client Net inflows 694 4% 120 transition 100 Gross inflows 971 21% 80 Number of advisers 737 33% 60 40 BROADENING NOW OFFERING DELIVERING 20 distribution
Slide 17: Licensee segment results
17 For personal use only Licensee segment results LICENSEE Licensee now has approx. $3.25b in funds 1HFY17 1HFY16 % under advice FINANCIAL $M $M CHANGE RESULTS Recruitment of several new practices is well Revenue 14.8 13.1 13% progressed Direct costs (13.5) (12.0) 13% Revenue increase of 13% o
Slide 18: Corporate segment results
18 For personal use only Corporate segment results CORPORATE SEGMENT 1HFY17 1HFY16 % RESULTS $M $M CHANGE Operating expenses (0.19) (0.17) 11% Corporate overhead expenses allocated Growth resources expensed (0.06) (0.06) 3% to the corporate segment EBITDA before other significant items (0.25) (0.23)
Slide 19: Outlook
19 For personal use only Outlook Continued strong FUA growth expected Increasing distribution footprint by accessing current adviser relationships and targeting new Extend industry leadership position through product innovation Pursue appropriate and value accretive corporate activity & strengthenin
Slide 20: Appendix A – Corporate
20 For personal use only Appendix A – Corporate CAPITAL STRUCTURE AT 24 FEBRUARY ‘17 BALANCE SHEET AS AT 31 DECEMBER ‘16 Shares on issue 53.9m Cash and cash equivalents $10.45m Share price $4.49 Other current assets $6.00m Market capitalisation $242m Non-current assets $14.70m Unused tax losses $13.
Slide 21: Appendix B – Results reconciliation
21 For personal use only Appendix B – Results reconciliation GROUP FINANCIAL 1HFY17 1HFY16 % RESULTS $M $M CHANGE EBITDA before other significant items 1.7 (0.9) - Other revenue 0.1 0.2 2% Fair value gain – contingent consideration21 0.5 - - Share based payment expense – employees (0.4) (0.4) (5%) S
Slide 22: Appendix C – Segment results
22 For personal use only Appendix C – Segment results FINANCIAL PERFORMANCE – PLATFORM LICENSEE CORPORATE 1HFY17 1HFY16 % SEGMENTS 1HFY17 $M $M $M $M $M CHANGE Recurring revenue 11.8 14.8 ‐ 26.7 20.0 51% Direct costs (4.8) (13.5) ‐ (18.4) (15.2) 36% Gross profit 7.0 1.3 ‐ 8.3 4.8 125% Operating expe
Slide 23: Disclaimer
23 For personal use only Disclaimer SUMMARY INFORMATION performance of HUB nor does it guarantee the repayment of capital from HUB or any particular tax treatment. The material herein is a presentation of general background information about HUB24 Limited’s (‘HUB’) activities current as at FORWARD L