Slide 1: Half Year Results Presentation as at 31 December 2015
For personal use only HALF YEAR RESULTS PRESENTATION AS AT 31 DECEMBER 2015
Slide 2: Overview
OVERVIEW For personal use only • About HUB24 • Group results & highlights • Segment results • Outlook • Appendix A - Corporate • Appendix B – Results reconciliation 2
Slide 3: HUB24: A Market Leader
HUB24 A MARKET LEADER For personal use only HUB24 has become an investment platform of choice as significant disruption occurs in wealth management FUA $M PLATFORM REVENUE ‐ 1HFY16 Revenue $M One of the fastest growing wrap platforms* 2,500 8 Net inflows of $668m, FUA of $2.37bn at 31/12/15 7 2,
Slide 4: Next Generation Wealth Management Platform
NEXT GENERATION WEALTH MANAGEMENT PLATFORM For personal use only • The new world of managed portfolios KEY FEATURES THAT SET HUB24 combined with market leading wrap APART INCLUDE: functionality Managed portfolios functionality • Broad and unbiased investment menus Tax optimisation features & por
Slide 5: HUB24 Continues to Invest to Extend Its Industry Leading Position
For personal use only HUB24 CONTINUES TO INVEST TO EXTEND ITS INDUSTRY LEADING POSITION 5
Slide 6: The Standout for a Better Online Experience: Platform Benchmarking Report
THE STANDOUT FOR A BETTER ONLINE EXPERIENCE For personal use only INVESTMENT TRENDS PLATFORM BENCHMARKING REPORT* • Ranked top 3 in the market amongst full function platforms • Received awards for ‘Best Navigation and User Interface’ and ‘Best Tablet / Smartphone Access’ • Received ‘outstanding’ sco
Slide 7: The Standout for a Better Online Experience: Planner Technology Report
THE STANDOUT FOR A BETTER ONLINE EXPERIENCE For personal use only INVESTMENT TRENDS PLANNER TECHNOLOGY REPORT* • Awarded first in ‘Ease of Use’ and ‘Value for Money’ • 2nd overall: Platform satisfaction • Highest user satisfaction for online functionality, turnaround times for applications, administ
Slide 8: Group Results
For personal use only GROUP RESULTS 8
Slide 9: 1HFY16 Highlights
1HFY16 HIGHLIGHTS For personal use only Record net inflows of HUB24 transitioned to be operating Launch 1st $668m of international in categories for Best resulting in FUA of cashflow managed portfolios Navigation & User $2.37bn at 31 Interface and December 2015 positive Smartphone/ on a monthly basi
Slide 10: Group Financial Results
GROUP FINANCIAL RESULTS For personal use only Group Financial Results 1HFY15 1HFY16 % * $m $m change FUA (now $2,411m) $1,251 $2,368 89% • Record net inflows to the platform during the half Revenue – Platform 3.2 6.9 114% together with the recruitment of 2 practices for the Revenue – Licensee 7.9 13
Slide 11: Segment Results
SEGMENT RESULTS For personal use only Financial Performance – Platform Licensee Corporate 1HFY16 1HFY15** % Segments $m $m $m $m $m change Recurring Revenue 6.9 13.1 - 20.0 11.2 79% Direct Costs (3.2) (12.0) - (15.2) (9.5) 62% Gross Profit 3.7 1.1 - 4.8 1.7 179% Operating Expenses* (2.4) (1.0) (0.2)
Slide 12: Segment Results
For personal use only RESULTS SEGMENT 12
Slide 13: Platform Segment Results
PLATFORM SEGMENT RESULTS For personal use only REVENUE GROSS PROFIT OPERATING EBITDA* $ millions $ millions $ millions 3.70 6.96 1.33 3.25 (0.56) 114% 1.05 252 336% % 1HFY15 1HFY16 1HFY15 1HFY16 1HFY15 1HFY16 Revenue growth driven by: Gross profit growth driven by: Operating EBITDA* driven by: • Net
Slide 14: Platform Segment Results: Improving Results Trend
PLATFORM SEGMENT RESULTS For personal use only IMPROVING RESULTS TREND Average monthly net inflows (‘m) Platform – gross profit, operating EBITDA* and EBITDA** trends 111 $M 5.0 4.0 3.0 66 2.0 1.0 0.0 (1.0) 34 (2.0) 19 (3.0) 5 (4.0) 1HFY14 2HFY14 1HFY15 2HFY15 1HFY16 FY12 FY13 FY14 FY15 1HFY16 Gross
Slide 15: Platform Segment Results
PLATFORM SEGMENT RESULTS For personal use only Platform Segment 1HFY15 1HFY16 % Results $m $m change • FUA increase of $1.1bn over pcp, an increase FUA (now $2,411m) $1,251 $2,368 89% of 89% delivering a platform revenue increase of 114% Revenue 3.2 6.9 114% • Scale benefits continue during the half
Slide 16: Platform Segment Results: FUA Balance
PLATFORM SEGMENT RESULTS FUA BALANCE $ millions For personal use only 2,800 2,400 2,000 1,600 1HFY16 Increase 1,200 $m on PCP 800 400 FUA* (now $2,411m) 2,368 89% - June '12 June '13 Jun '14 Jun '15 Mar '13 Mar '14 Mar '15 Dec '12 Dec '13 Dec '14 Sep-15 Dec-15 Sept '12 Sept '13 Sept '14 Net inflows
Slide 17: Licensee Segment Results
LICENSEE SEGMENT RESULTS For personal use only Licensee Segment 1HFY15* 1HFY16 % Results $m $m change Revenue 7.9 13.1 65% • Licensee transitioned 2 new practices during the period & has strong pipeline Direct Costs (7.2) (11.9) 65% • Revenue increase of 12% over prior corresponding period Gross Pro
Slide 18: Corporate Segment Results
CORPORATE SEGMENT RESULTS For personal use only Corporate segment 1HFY15 1HFY16 % results $m $m change • Corporate overhead expenses allocated to the Operating Expenses (0.1) (0.1) 56% corporate segment Growth resources Expensed (0.1) (0.1) 50% EBITDA (0.2) (0.2) 55% Interest revenue 0.2 0.1 (25%) •
Slide 19: Outlook
For personal use only OUTLOOK 19
Slide 20: Outlook
OUTLOOK For personal use only INCREASING FUA GROWTH IS EXTEND INDUSTRY LEADERSHIP EXPECTED TO CONTINUE POSITION THROUGH PRODUCT INNOVATION • Fortnum transition on track for 2HFY16 • Increase current product range and • Targeting over $3.0 billion FUA by June expand capabilities 2016 and $8–10 billio
Slide 21: Outlook
OUTLOOK For personal use only • Ongoing margin expansion with increasing scale • Grow the Licensee by recruiting quality practices and providing exceptional advice and platform solutions • Build strategic alliances and review appropriate acquisition opportunities • Efficiently develop and grow our h
Slide 22: Appendix A: Corporate
APPENDIX A CORPORATE For personal use only Capital Structure at 24 February ‘16 Balance Sheet as at 31 December ‘15 Shares on Issue 52.7m Cash and Cash Equivalents $ 10.52m Share Price $4.28 Other Current Assets $ 2.03m Market Capitalisation $226m Non-Current Assets $ 13.72m Total Assets $ 26.27m Cu
Slide 23: Appendix B: Results Reconciliation
APPENDIX B RESULTS RECONCILIATION For personal use only Group Financial 1HFY15 1HFY16 % Results $m $m change EBITDA (Continuing Operations) (2.5) (0.9) 63% Interest Revenue 0.2 0.2 1% Non-Recurring Revenue 0.6 0.2 (68%) Share Based Payments (0.4) (0.7) (79%) Non-recurring Corporate Costs (0.4) (0.3)
Slide 24: Disclaimer
DISCLAIMER For personal use only SUMMARY INFORMATION 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 date of presentation. This information given in summary form does FORWARD LOOK