Hub24 Limited · ASX:HUB

Hub24 — UBS Emerging Companies Conference Series: Fintechs (May 2017)

21 slides from Hub24's conference presentation, May 30, 2017

  1. Slide 1: Investor Presentation - UBS Emerging Companies Conference Series: Fintechs

    FUA For personal use only May ’17 $5b 5 months INVESTOR $4b 7 months PRESENTATION $3b 7 months UBS - Emerging Companies Conference Series: Fintechs $2b 11 months 30 May 2017 $1b 27 months $100m June ‘12

  2. 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

  3. 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

  4. 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 $5.05b Applications across 15 exchanges and Smartphone/Tablet Acces

  5. 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 $5.05b) $4,149 $2,368 75% Direct costs (18.4) (15.2) 21% Revenue 11.8 6.9 70% Gross profit 8.3 4.8

  6. 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

  7. 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

  8. 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 0.57% share of Wrap, Platform & Master Trusts at 31 Dec ‘16 with 11.57% share of netflows  27 new licensees signed in 1HFY17  Non-institutional p

  9. Slide 9: HUB24 continues to win awards

    9 For personal use only HUB24 continues to win awards

  10. 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  Licensing over 2,300 users from within 165 firms, BANKS reporting on over $200 bill

  11. 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

  12. 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

  13. Slide 13: Financial Results

    For personal use only RESULTS FINANCIAL 13

  14. 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

  15. Slide 15: Platform segment results

    15 For personal use only Platform segment results GROUP FINANCIAL 1HFY17 1HFY16 % RESULTS $m $m CHANGE Retail FUA (now $5,050m) $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

  16. Slide 16: Platform segment results

    16 For personal use only Platform segment results 1HFY17 INCREASE AVERAGE MONTHLY NET INFLOWS (‘m) $M ON PCP 160 Retail FUA (now $5.05b) 4,149 75% 140 Net inflows 694 4% 120 Gross inflows 971 21% 100 80 Number of advisers 737 33% 60 40 20 BROADENING NOW OFFERING DELIVERING 0 distribution base with i

  17. Slide 17: Licensee segment results

    17 For personal use only Licensee segment results LICENSEE  Licensee now has more than $3.25b in 1HFY17 1HFY16 % funds 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%

  18. 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)

  19. 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

  20. 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.

  21. Slide 21: Disclaimer

    21 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

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