Hub24 Limited · ASX:HUB
Hub24 — Investor Day (June 2022)
44 slides from Hub24's investor day presentation, Jun 15, 2022
Slide 1: Investor & Analyst Briefing
For personal use only Investor & Analyst Briefing 15th June 2022
Slide 2: Welcome
For personal use only Welcome Bruce Higgins Chairman
Slide 3: Corporate strategy & business update
For personal use only Corporate strategy & business update Andrew Alcock Managing Director / CEO
Slide 4: Empowering better financial futures, together
For personal use only Empowering better financial futures, together
Slide 5: HUB24 Group Overview
HUB24 Group Overview For personal use only 92 7,700+ PLATFORM PARS Financial Services Clients Unique Customers^ 96 220+ Custodial administration Non-custodial administration Data Integrations^^ Data Integrations^^ Platform FUA PARS FUA HUBconnect Broker Class Super $51.0bn $17.3bn Customer managemen
Slide 6: Consistently delivering on our growth strategy
Consistently delivering on our growth strategy For personal use only Funds under administration Group Revenue CAGR Group UEBITDA CAGR +41%1 +63%1 $90 m $80b $80 m $70b $70 m $60 m $60b $50 m $40 m $50b $30 m $20 m $40b $10 m $0 m $30b 1HFY19 1HFY20 1HFY21 1HFY22 Revenue UEBITDA $20b Platform FY17 FY
Slide 7: HUB24 – Australia's fastest growing platform provider
HUB24 – Australia’s fastest growing platform provider¹ For personal use only Growth in Platform FUA, PARs FUA & Netflow share to underlying market share ratio¹ net flows per quarter² FUA $m Netflows ($m) $80,000m $4,500m 10.00 $70,000m $4,000m 8.00 $3,500m $60,000m $3,000m 6.00 $50,000m $2,500m $40,
Slide 8: Leading change & capturing opportunities
Leading change & capturing opportunities only SPPs begin Client demand Convergence for single view of advisory, TRENDS dominating Insto-owned net inflows of wealth stockbroking and platforms Royal Commission accounting (multi- Increasing advice For personal use dominate inflows established disciplin
Slide 9: Our strategic pillars
Our Deliver customer value & growth strategic pillars For personal use only Continue to develop our core platform proposition to meet Enhancing our current evolving customer needs, extend our market-leadership and grow market share proposition & extending our competitive advantage Continue to build
Slide 10: HUB24 well-positioned in attractive growth markets
HUB24 well-positioned in attractive growth markets For personal use only Australian Investment Managed PARS SMSF Platform Market¹ Account Market² Market³ Market⁴ HUB24 market share HUB24 market share HUB24 market share Class market share 4.9% 12% 12% 30% Other services $10.7bn Market Market Market M
Slide 11: Our people
Our people For personal use only Creating the right environment for our people to thrive We have over Attracting, retaining and developing talented people: Our Values Integrity 700 employees1 Creating a strong client focused culture Prioritising employee wellbeing Investing in leadership development
Slide 12: Industry leading executive team with depth of experience
Industry leading executive team with depth of experience For personal use only Craig Lawrenson Andrew Alcock Kitrina Shanahan Jason Entwistle Deborah Latimer Chief Operating Managing Chief Financial Director Strategic Chief Risk Officer Director Officer Development/Interim Officer MD/CEO Class Recru
Slide 13: Customer experience
For personal use only Customer experience Craig Lawrenson Chief Operating Officer
Slide 14: Customer Service: Competitive advantage driving long term growth
Customer Service For personal use only Competitive advantage driving long term growth Flexibility … and satisfied customers Working with licensees & advisers Transparency 1 2 Adviser Ratings Wealth Insights Visible workflow nd Delivering a • Best Platform Overall • Equal 2 Platform differentiated •
Slide 15: A solid platform for future growth
A solid platform for future growth For personal use only New advisers remain productive over many years Annual Net Flows by Year Adviser Joined1 $5bn2 $9bn2 $9.3bn as at Q3 FY222 100% 90% ~70% 80% of flows from advisers 70% who started using 60% HUB24 more than 12 months ago 50% 40% 30% ~30% 20% of
Slide 16: A solid platform for future growth
A solid platform for future growth For personal use only Consistent growth in our client base Latent opportunity 3,432 active advisers HUB24 has relationships with/access supporting HUB24 to 75% of the total adviser market 3432 2758 HUB24 active advisers 1956 17,165 Opportunity – Advisers 1534 Licen
Slide 17: Managed Portfolios
Managed Portfolios For personal use only Engaging and educating advisers Building clear differentiation in our Helping to grow the Extending our managed portfolio Managed Portfolios proposition Managed Portfolio market leadership position General benefits: No. 1 • Client directed customisation Platf
Slide 18: Managed Portfolio leadership
Managed Portfolio leadership For personal use only Managed Accounts Adviser adoption of Managed Accounts HUB24 growth opportunity increasing and so is the proportion of assets experience being allocated to Managed Portfolios $131.65bn FUM in Managed Accounts1 13% 53% Advisers are recommending Manage
Slide 19: HUB24 strategy & Class business
For personal use only HUB24 strategy & Class business Jason Entwistle HUB24 Director of Strategic Development & Interim MD/CEO of Class
Slide 20: Rise of Specialist Platforms
Rise of Specialist Platforms For personal use only Gross flows by Platform Segment Master Trusts Institutional wraps Specialists 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Dec 92 – Dec 98 Dec 99 - Dec 14 Dec 15- Dec 21 Master Trusts Institutional Wraps Specialist Platforms Source: HUB24 analysis of
Slide 21: Why do platforms exist?
Why do platforms exist? For personal use only One way of Single view Efficient How doing business of wealth access successfully Incorporating custody for advisers and to investment manager IP have we & non custody their clients delivered into this purpose?
Slide 22: The future of platforms
The future of platforms For personal use only Platforms Today Platforms Tomorrow Bank accounts Managing (AUD & FX) custodial assets ASX Listed Securities Term Deposits Platform Account Other Assets (Custodial assets) (Investment Properties) Cash & FX Single Managed Portfolios view of wealth Global &
Slide 23: How do we solve the original problem?
How do we solve the original problem? For personal use only Single One way of Efficient Flexibility Reporting view of wealth doing business access for advisers & & insights for advisers and incorporating to investment Visibility for their clients custody & non custody manager IP for licensees busine
Slide 24: Class business
Class business For personal use only Acquisition completed No. of SMSF accounts1 Strategic priorities in February 2022 Net SMSFs establishments Class is a pioneer in 23,175 74% 19,069 of advisers now cloud-based wealth 15,457 advising on accounting & recognised SMSFs Grow the SMSF as one of Australi
Slide 25: The Wealth Advice Implementation Process
Account establishment The Wealth Advice Implementation Process For personal use only Portfolio Wealth vehicle creation implementation Client Financial professional Focused advice delivery Advice Strategic advice implementation Client review Portfolio Investment advice in ‘real time’ changes Tax advi
Slide 26: Introducing a new SMSF service
Introducing a new SMSF service For personal use only Grow the SMSF market and build out the customer base of the future Fund balance Fully integrated end-to-end service bringing together SMSF establishment, administration and investment administration Leverages combined capabilities of HUB24, Class
Slide 27: HUB24 platforms & products
For personal use only HUB24 platforms & products Darren Stevens Chief Product Officer
Slide 28: Building our platform of the future capability
Building our platform of the future capability For personal use only Single view of wealth Services for advisers and their clients One way of doing business Incorporating custody & non custody PARS Platform Flexibility for advisers & Visibility for licensees Clients Reporting & insights for business
Slide 29: HUB24 Platform: award winning & market leading
HUB24 Platform: award winning & market leading For personal use only HUB24 is an award- Investment Trends HUB24 has the highest number of best practice Platform excellence awards1 functionality sub-categories among platform providers1 winning investment and superannuation platform 22 Best in Product
Slide 30: Non-custody service (PARS)
Non-custody service (PARS) For personal use only HUB24 Portfolio Administration & Reporting Service HUB24 has a $17bn share (8,020 accounts) Offering a of the estimated $149bn Client Corporate Tax choice of onboarding actions reporting PARS market1 services Fees Portfolio Investment asset Mail Found
Slide 31: Non-custody opportunity
Non-custody opportunity For personal use only 80% of advisers dealing with non-custody, with half administering manually Current system used to administer and report on non-custodial assets1 Manually 47% Half of advisers My planning software 28% doing it manually In-house solutions 14% SMSF admin so
Slide 32: Building our platform of the future capability
Building our platform of the future capability For personal use only Services SMSF & PLATFORM PARS TAX REPORTING TRUST ADMIN WHOLESALE STATUS Single view of wealth Custodial Non-custodial ACCOUNT ONBOARDING WHOLESALE STATUS administration administration for advisers CASH MANAGEMENT and their clients
Slide 33: Pathway towards platform of the future
Pathway towards platform of the future For personal use only today Stage 1 Stage 2 Stage 3 Combining acquired technologies and Actively promote custody and non-custody Grow scale and continually add functionality/ capabilities to accelerate development services to existing & new clients capability t
Slide 34: Underpinned by HUBconnect data infrastructure
Underpinned by HUBconnect data infrastructure For personal use only Platform PARS Data and tech Custodial Non-custodial Solutions Integration administration administration and Services with other financial services and software HUBconnect technology infrastructure providers We are seamlessly integra
Slide 35: Data first – building the foundations
Data first – building the foundations For personal use only Structured Data Documents and Data from: Data and Combine Planning software Document Machine Learning Cleanse CRM Connector Enrich Email Files Unstructured Data Platforms • PDF’s • Emails Reporting Brokers • Voice Alerts Banks Document Data
Slide 36: HUBconnect powering a range of services & solutions
HUBconnect powering a range of services & solutions For personal use only Collaborating to deliver innovative solutions that solve common challenges in advice delivery “Real-time” whole of Licensee compliance & Data-as-a-Service wealth client reporting practice management Leading with “Present” repo
Slide 37: Platform of the future - delivering to customer needs
Platform of the future - delivering to customer needs For personal use only Single view of wealth Services for advisers and their clients One way of doing business Incorporating custody & non custody PARS Platform Flexibility for advisers & Visibility for licensees Clients Reporting & insights for b
Slide 38: Financial Reporting Outlook
For personal use only Financial Reporting Outlook Kitrina Shanahan Chief Financial Officer
Slide 39: Strong financial management
Strong financial management For personal use only 1 Capital management Reporting segments Dividend (cps) Strong operating cashflows Technology Solutions will include Class and the following metrics in Dividend payout ratio targeting 40% - the Analyst and Investor Pack. 60% of underlying NPAT Excess
Slide 40: Financial drivers
Financial drivers For personal use only 31 MAR 22 FY24 Q4 net flows update Guidance* Q4 FY22 net flows expected to be $51bn $83bn $92bn in-line with Q4 FY21 excluding large transitions Platform FUA1 (excluding PARS FUA) Net flow range $11-14bn p.a. Market range 0 – 5% Interest rate impacts • HUB24 d
Slide 41: Closing remarks
For personal use only Closing remarks Andrew Alcock Managing Director / CEO
Slide 42: Well-positioned to deliver sustainable long term growth
Well-positioned to deliver sustainable long term growth For personal use only Strong leadership Leveraging core Continued investment Market leadership team with the right products & to develop platform of in our core structure & culture capabilities into new the future & enable propositions to achie
Slide 43: Questions?
For personal use only Questions?
Slide 44: Disclaimer
Disclaimer For personal use only SUMMARY INFORMATION RISK OF INVESTMENT The material herein is a presentation of general background information about An investment in HUB shares is subject to investment and other known and HUB24 Limited’s (‘HUB’) activities current as at date of presentation. This u