Slide 1: FY20 Results Presentation
25 AUG 2020 FY20 RESULTS PRESENTATION
Slide 2: At HUB24 we make a difference in our customers' lives
At HUB24 we make a difference in our customers’ lives by connecting them to innovative solutions that create better investment outcomes
Slide 3: Financial Highlights FY20
Underlying NPAT³ FINANCIAL HIGHLIGHTS FY20 $10.1m Up 49% Statutory NPAT³ $74.3m $28.7m $8.2m Up 15% 37% Platform Revenue 59% Platform Underlying EBITDA3 FUA at 30 June 2020 ¹ $17.2bn Up 34% FUA now $18.5bn as $24.7m 38.6% at 21 August 2020⁴ Up from 60% Group Underlying 33.3% Platform Underlying EBIT
Slide 4: Key Messages
Continued strong Creating new business KEY business growth and increasing financial performance opportunities from leadership in technology, product & customer focus MESSAGES Delivering on our Managed Portfolio strategy whilst leadership & innovation is Target FUA now maintaining momentum continuing
Slide 5: FY20 Review
Highlights Financial results Outlook FY20 REVIEW Additional information 5 5
Slide 6: Business Highlights
BUSINESS HIGHLIGHTS ANDREW ALCOCK Managing Director 6
Slide 7: Business Highlights
BUSINESS HIGHLIGHTS Maintaining Industry awarded Continued Maintaining 2nd Market-leader in Maintaining our focus on our & recognised strong pipeline place quarterly & managed portfolios¹ momentum and customers and • Institutions annual net flows progressing our people during • Boutiques strategic i
Slide 8: Continuing to Grow While Adapting to COVID-19
CONTINUING TO GROW WHILE ADAPTING TO COVID-19 Supporting our Business impact customers and our team Record net inflows of $1.1bn for a June quarter after a slow start in April and record Operations seamlessly transitioned to working annual net inflows of $4.95 billion despite the impact of the pande
Slide 9: HUB24 Continues to Be Recognised by the Industry
HUB24 CONTINUES TO BE RECOGNISED BY THE INDUSTRY FOR FUNCTIONALITY & CUSTOMER SERVICE 1st Managed 1st Product Equal 1st 2nd Adviser 2nd Adviser Ranked 2nd Platform Accounts Offer & Platform satisfaction³ advocacy³ Top 2 in 17 Net Promoter Functionality integration² Service² out of 25 Score⁴ 2016, 20
Slide 10: HUB24 Leads the Market in Managed Portfolios, and Is Continuing to Innovate
HUB24 LEADS THE MARKET IN MANAGED PORTFOLIOS, AND IS CONTINUING TO INNOVATE Industry awarded & Demonstrating value in We’re providing the recognised current market conditions market’s leading solution 1st Managed Accounts Efficient & consistent portfolio Extensive choice with 108 new Functionality¹
Slide 11: Maintaining Momentum in Market Share & Net Flows
MAINTAINING MOMENTUM IN MARKET SHARE & NET FLOWS PLATFORM PROVIDERS NET FLOW SHARE TO HUB24 NET FLOWS RANKING IN $ TERMS UNDERLYING MARKET SHARE RATIO 110 ANNUAL QUARTERLY Ratio of net flow market share Specialist Institutional Rank Rank 90 platforms platforms to underlying market share Mar - 20 2 2
Slide 12: Financial Results
FINANCIAL RESULTS DEBBIE LAST Interim Chief Financial Officer 12
Slide 13: Group Financial Results
GROUP FINANCIAL RESULTS OPERATING REVENUE ($m) + 14% 20.2 FY20 FY19 Change (5.7) (0.6) $m $m % + 37% $110.2 Group operating revenue 110.2 96.3 14% $96.3 Insert Direct costs (49.9) (50.8) (2)% Gross profit 60.9 46.1 32% FY19 Platform Licensee IT Services FY20 Gross profit margin (%) 55% 48% 7% Operat
Slide 14: Operating Expenses
OPERATING EXPENSES INVESTING FOR GROWTH The Group continues to invest in the business to support growth GROUP OPERATING EXPENSES ($m) 18% Increase in costs largely driven by headcount increase of 18% to 263 FTE at 30 June 2020 Insert Investment in Sales and Distribution team 2.8 22% underpins growth
Slide 15: Platform Segment Results
PLATFORM SEGMENT FUNDS UNDER ADMINISTRATION ($b) RESULTS 2.5 -1.1 8.7% STRONG FUA GROWTH DRIVING 2.5 0.5 23.1% INCREASED PROFITABILITY 3.9 0.6 54.3% FY20 FY19 change 17.2 PLATFORM 15.8 Insert 12.9 $m $m % 8.3 1 FUA (Now $18.5b ) 17.2b 12.9b 34% Revenue 74.3 54.1 37% FUA Net flows Market FUA Net flow
Slide 16: Platform Revenue
PLATFORM REVENUE 37% GROWTH DESPITE CHALLENGING MARKET Platform revenue increased by 37% to $74.3 million PLATFORM REVENUE MARGIN (BPS) despite challenging markets in 2H20 Portfolio Administration Fees whilst based on FUA (0.5) (1.4) (1.6) 0.9 are not fully correlated to equity markets Asset mix of
Slide 17: Platform Segment Results Cont...
PLATFORM SEGMENT RESULTS CONT… FUA GROWTH DELIVERING SCALE BENEFITS Platform Revenue and Expense trends ($m)2 50.0 Platform EBITDA 40.0 margin continues to expand with scale 30.0 20.0 10.0 0.0 Investment made in 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 FY19 now being Revenue Platform expens
Slide 18: Underlying NPAT
UNDERLYING NPAT IMPACTED BY ONE OFF ITEMS ALIGNING THE BUSINESS FOR GROWTH Share based payments increased by $2.3m largely due to Release of Agility deferred consideration of $0.9m1 offset by initial recognition of Special LTI, granted in Dec 2018 in $1m impairment following the strategic decision t
Slide 19: Strategy and Outlook
STRATEGY AND OUTLOOK ANDREW ALCOCK Managing Director 19
Slide 20: Market Dynamics Are Creating Opportunity
MARKET DYNAMICS ARE CREATING OPPORTUNITY 1. Advice demand is 2. Continued 3. Rise of 4. Transformation of increasing while evolution private advisory licensee structures supply is decreasing of retail platforms groups and services There is an increased need Platform switching activity continues Self
Slide 21: HUB24 Is Well Positioned to Leverage Opportunities
HUB24 IS WELL POSITIONED TO LEVERAGE OPPORTUNITIES INDUSTRY TREND HUB24 RESPONSE Well progressed on build of a self-service and 'bionic’ advice platform with Aberdeen Standard Investments to support new adviser business Growing advice models gap The development of a simple low-cost platform and inve
Slide 22: Building Foundations for Growth
BUILDING FOUNDATIONS FOR GROWTH Continued investment in managed portfolios New offer “HUB24 Access” designed for clients with market leadership and streamlining portfolio simpler needs, integrated with ‘bionic advice’ in structure to support future innovation collaboration with Aberdeen Standard Inv
Slide 23: Outlook: Position HUB24 for Ongoing Success
OUTLOOK Create customer & shareholder value POSITION HUB24 FOR ONGOING SUCCESS • Support advisers and customers with service excellence • Showcase our capabilities and build long term relationships • Constant innovation to support ongoing growth PURSUE GROWTH • Leverage existing adviser and licensee
Slide 24: 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 25: AUB
AUB