Netwealth Group Ltd. · ASX:NWL
Netwealth — Shareholder Meeting (November 2023)
49 slides from Netwealth's shareholder meeting presentation, Nov 22, 2023
Slide 1: Netwealth AGM Addresses and Presentation
22 November 2023 ASX Announcement Netwealth Group Ltd ABN 84 620 145 404 Level 6/180 Flinders Street Melbourne VIC 3000 Netwealth AGM Addresses and Presentation PO Box 336 South Melbourne VIC 3205 Netwealth Group Limited (ASX: NWL) will today address shareholders at its Annual General Meeting to be
Slide 2: Chair's Address
2023 Annual General Meeting Addresses and Presentation ASX Release – 22 November 2023 Chair’s Address The 2023 financial year was another record for Netwealth, building on the strong momentum from prior years. The Australian platform industry grew by 7.2% to $993.3 billion Funds Under Administration
Slide 3: Chair's Address continued and CEO's Address
Netwealth was again recognised by the industry for its leading platform offering and service levels, including for the 11th consecutive year Netwealth rated No.1 in overall satisfaction by advisers. Our governance and sustainability objectives have been significantly progressed throughout the year a
Slide 4: CEO's Address continued
pleased with these growth rates which provide a solid foundation for the next 12 months. Moreover, we have also successfully delivered a wide range of new products, features and functionality based on client feedback and have sustained the high levels of service we pride ourselves on. We are also ve
Slide 5: CEO's Address: regulatory change and strategy
From a business model perspective and following the Quality of Advice review, regulatory change is also underway which will lead to changes in the way advice is provided. New regulations which are expected to reduce red tape will allow advisers to see more clients and to better serve their clients.
Slide 6: CEO's Address: whole-of-wealth platform
This approach and focus ensure not only current satisfaction and success through a differentiated offer but also positions us to proactively meet the evolving demands of the future. Our whole-of-wealth platform has continued to evolve with enhanced features and investments tailored to diverse market
Slide 7: CEO's Address: non-custodial assets and core product
custodial and non-custodial assets. This integration provides clients with a unified portfolio view and enables us to administer a broader spectrum of assets on their behalf. Examples of non-custodial assets are foreign-managed funds or alternative investments held through the iCapital platform or d
Slide 8: CEO's Address: generative AI
combination thereof. This feature aims to streamline fixed interest needs without the necessity of off-platform fund transfers. We are pleased with the breadth and speed of our response to market conditions, delivering these noteworthy innovations to the platform. We have noted the significant poten
Slide 9: CEO's Address: products and outlook
managers in the world to our clients via the Netwealth platform, whilst ensuring it is easy and seamless to invest in these products. We have successfully relaunched our core product. It is priced very competitively and is aimed at the mass and emerging affluent segments, available through both advi
Slide 10: About Netwealth
About Netwealth Netwealth is a financial services company listed on the Australian Securities Exchange (ASX: NWL). Netwealth was created with an entrepreneurial spirit to challenge the conventions of Australia’s financial services. We are a technology company, a superannuation fund and an administra
Slide 11: Annual General Meeting FY2023
For personal use only Annual General Meeting FY2023 See wealth differently
Slide 12: Our purpose
Our purpose is For personal use only To enable people to see wealth differently and discover a brighter future 2 AGM 22 November 2023
Slide 13: Today's presenters and agenda
Today’s presenters and agenda For personal use only Meet Discover 1. Chair’s Address 2. CEO’s Address Tim Antonie Matt Heine 3. Formal Business Chair CEO and Managing Director 3 AGM 22 November 2023
Slide 14: Acknowledgement of Country
Acknowledgement of Country For personal use only In the spirit of reconciliation Netwealth Group Limited acknowledges the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respect to their Elders past and present and extend that respe
Slide 15: Netwealth's Board of Directors
Netwealth’s Board of Directors Tim Antonie Matt Heine Michael Heine For personal use only Chair and Non-Executive Director (joined CEO and Managing Director (joined 2001) Founder and Executive Director 2015) • Qualified as a chartered accountant. Worked • Over 20 years’ experience in the wealth • Fo
Slide 16: Other attendees
Other attendees For personal use only Grant Boyle Jodie Henson Rita Harris Chief Financial Officer and Joint Company Chief Risk Officer and Joint Company Independent Chair of Netwealth Secretary (joined 2017) Secretary (joined 2023) Superannuation Services • Over 30 years’ experience in financial •
Slide 17: Items of formal business
Items of formal business For personal use only 1. Consideration of the FY2023 Annual Report 2. Adoption of the FY2023 Remuneration Report 3. Re-election of Independent Non-Executive Director Mr. Tim Antonie 4. Re-election of Executive Director Mr. Michael Heine 5. Approval of the CEO and Managing Di
Slide 18: Chair's Address
For personal use only 2023 Chair’s Address Mr. Tim Antonie 8 AGM 22 November 2023
Slide 19: Delivering FUA, FUM and Market Share Growth
Delivering FUA, FUM and Market Share Growth For personal use only Total platforms FUA increased 7.2% to $993.3B in FY2023 Total FUA increased 26.3% to $70.3B in FY2023 7.1% $993.3B $970.9B 6.0% $926.4B $70.3B $47.1B 4.9% $858.2B $55.7B $23.3B $820.0B 3.9% $70.3B $31.5B $252.7B $198.1B $251.3B $328.9
Slide 20: Consistent growth momentum
Consistent growth momentum For personal use only Total Income increased 21.6% to $214.7M in FY2023 Total EBITDA increased 18.4% to $100.7M in FY2023 $214.7M $100.7M $176.6M $85.1M $79.3M $148.3M $126.8M $66.2M $100.5M $52.0M FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Source: Netwealth Source:
Slide 21: Delivering shareholder value
Delivering shareholder value For personal use only Total NPAT increased 20.9% to $67.2 million in FY2023 Dividend per share increased 20.0% to 24.0 cents in FY2023 NPAT $’m Dividends (cps) 67.2 24.0 20.0 54.1 55.6 18.6 43.7 14.7 12.1 35.2 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Source: Net
Slide 22: Strong financial and market position
Strong financial and market position For personal use only Highly profitable with An extremely high Strong balance sheet strong EBITDA margin correlation between EBITDA and operating cash • Low capital expenditure • Revenue growth flow, resulting in strong • Debt free • High level of predictable cas
Slide 23: Corporate sustainability
Corporate sustainability • For personal use only Enhance our core business • Continued to be the market leading platform for the High Net Worth sector and expanded our whole of wealth offering. • Maintained market-leading technology position and constantly leverage technology advantages for operatio
Slide 24: Executive Team
Executive Team Netwealth Group Limited For personal use only Matt Heine Michael Heine Grant Boyle John Hanrahan Jodie Henson Shanyn Payne CEO and Founder/ Executive Chief Financial Officer Chief Information Chief Risk Officer and Chief People Officer Managing Director and Joint Company Officer Joint
Slide 25: Thank you
Thank you For your contributions that led to another exceptional year For personal use only • Executive Committee and our team at Netwealth • Netwealth Superannuation Services • Our Board of Directors • Our Shareholders • Our Clients 15 AGM 22 November 2023
Slide 26: CEO's Address
For personal use only 2023 CEO’s Address Mr. Matt Heine 16 AGM 22 November 2023
Slide 27: Business highlights
Business highlights For personal use only $74.1B FUA 510 As at 20 Nov 2023 12 month growth to Sep 2023 $13.9B (+23.9%) Average phone calls per day Award Winning Platform* $17.1B FUM 88 seconds As at 20 Nov 2023 12 month growth to Sep 2023 $3.0B (+22.0%) Avg. speed of answer by contact centre $14.7B
Slide 28: Accelerating changes bring opportunity
Accelerating changes bring opportunity For personal use only Greater computing power, Greater accessibility, open architectures, cloud, decentralisation & transparency, • Mobile, multi-channel options • Complex vs. cheaper • ESG, digital assets, vehicles, exchanges & platforms Regulatory compliance,
Slide 29: Netwealth's strategy
Netwealth's strategy Driven by data, technology, security & people For personal use only Focus on data and software integration Business A whole of Integrating the sources of your client data and intelligence wealth platform business data to drive efficiency, deliver insights & analytics and support
Slide 30: Key strategic focus areas
Key strategic focus areas For personal use only Whole of wealth platform Client engagement & service Practice efficiency & advice Business intelligence & analytics enablement Ongoing enhancements to New capabilities to improve The range of integrations offered platform features, functionality advise
Slide 31: Whole of wealth platform strategy
Whole of wealth platform strategy Integrations and multi-asset (including non-custodial) services allow a 360-degree view of the client For personal use only Client portal Adviser portal Netwealth whole of wealth platform 3rd party data Data aggregation and Netwealth Netwealth Adviser 36+ external B
Slide 32: Product suite meeting all needs
Product suite meeting all needs A range of products to meet the needs of clients and advisers with different levels of investment sophistication. Costs reflect service scope. For personal use only Netwealth whole of wealth platform Wholesale Wealth Accelerator MAPS Non-custodial + Data Adviser porta
Slide 33: Expanding fixed interest options
Expanding fixed interest options Recent initiatives to improve retention of assets on the platform involved broadening access to a diverse array of investment opportunities for advisers and their clients For personal use only Term deposits Challenger annuities Expanded menu of term deposits, now inc
Slide 34: AI focus delivering new solutions
AI focus delivering new solutions Advanced technology platforms, AI and big data are converging and are ready to transform the advice industry For personal use only Portfolio management Advice Client experience Administration Marketing Compliance & Security Big data and AI to aid AI and adjacent Wit
Slide 35: Well positioned for current and future growth
Well positioned for current and future growth Current macro-economic and interest rate environment result in short-term challenges we are successfully navigating For personal use only Strategic Partnership with iCapital Positive outlook to sustain growth momentum • Netwealth appointed as the exclusi
Slide 36: Formal Business
For personal use only 2023 Formal Business Mr Tim. Antonie 26 AGM 22 November 2023
Slide 37: Annual Financial Report and Directors' and Auditor's Reports
Item 1 Annual Financial Report and Directors’ and Auditor’s Reports For personal use only To consider Netwealth’s Annual Financial Report, Directors’ Report and the Independent Auditor’s Reports for the financial year ended 30 June 2023. No resolution is required for this item of business. Any Quest
Slide 38: Adoption of the Remuneration Report
Item 2 Adoption of the Remuneration Report For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That the Remuneration Report for the year ended 30 June 2023, which forms part of the Directors’ Report, be adopted.” 28 AGM 22 November 2023
Slide 39: Adoption of the Remuneration Report: Proxy Votes
Item 2 Adoption of the Remuneration Report For personal use only Proxy Votes Received For Open Against Abstain 85,400,869 73,719 1,497,874 1,831 98.19% 0.08% 1.72% *Open votes totalling 27,628 (0.03%) in favour of the Chair (whether by election or default) will be voted in favour of Item 2. 29 AGM 2
Slide 40: Re-election of Mr. Tim Antonie
Item 3 Re-election of Independent Non-Executive Director, Mr. Tim Antonie For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Mr. Tim Antonie be re-elected as a director of Netwealth.” 30 AGM 22 November 2023
Slide 41: Re-election of Mr Tim Antonie: Proxy Votes
Item 3 Re-election of Independent Non-Executive Director, Mr Tim Antonie For personal use only Proxy Votes Received For Open Against Abstain 204,396,713 74,219 612,265 4,351 99.67% 0.04% 0.30% *Open votes totalling 27,628 (0.03%) in favour of the Chair (whether by election or default) will be voted
Slide 42: Re-election of Mr. Michael Heine
Item 4 Re-election of Executive Director, Mr. Michael Heine For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Mr. Michael Heine be re-elected as a director of Netwealth.” 32 AGM 22 November 2023
Slide 43: Re-election of Mr. Michael Heine: Proxy Votes
Item 4 Re-election of Executive Director, Mr. Michael Heine For personal use only Proxy Votes Received For Open Against Abstain 203,605,155 74,219 1,362,805 45,369 99.30% 0.04% 0.66% *Open votes totalling 27,628 (0.03%) in favour of the Chair (whether by election or default) will be voted in favour
Slide 44: Approval of CEO Long Term Incentive Award
Item 5 Approval of the CEO and Managing Director’s Long Term Incentive Award For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That for the purposes of ASX Listing Rule 10.14, approval is given to grant 41,450 Performance Rights to Mr
Slide 45: CEO Long Term Incentive Award: Proxy Votes
Item 5 Approval of the CEO and Managing Director’s Long Term Incentive Award For personal use only Proxy Votes Received For Open Against Abstain 75,807,431 74,219 10,999,687 92,956 87.25% 0.09% 12.66% *Open votes totalling 27,628 (0.03%) in favour of the Chair (whether by election or default) will b
Slide 46: Increase in Non-Executive Directors' fee pool
Item 6 Increase in the Non-Executive Directors’ aggregate fee pool For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “To increase the Non-Executive Directors’ Aggregate Fee Pool from $1,000,000 p.a. to $1,300,000 p.a. under ASX listing
Slide 47: Increase in fee pool: Proxy Votes
Item 6 Increase in the Non-Executive Directors’ aggregate fee pool For personal use only Proxy Votes Received For Open Against Abstain 86,684,481 74,019 164,151 50,997 99.73% 0.09% 0.19% *Open votes totalling 27,928 (0.03%) in favour of the Chair (whether by election or default) will be voted in fav
Slide 48: Important notice and disclaimer
Important notice and disclaimer For personal use only General Information only No representation is made that any of these statements or forecasts will come to pass or that any forecast result will be achieved, or that there is a reasonable basis for any of these Information provided is general info
Slide 49: Thank you
Thank you For personal use only See wealth differently Discover the possibilities
Netwealth Group — Shareholder Meeting (November 2023) on 6ix