Slide 1: FY2016 Results Presentation
For personal use only Retail net inflows $1.6bn 102% Results Retail FUA $3.3bn 94% Presentation Platform revenue $15.4m 91% Group gross profit FY2016 $10.9m 125% Group EBITDA Positive since 2HFY16 81% Group NPAT Positive since June ‘16 81%
Slide 2: Overview
2 For personal use only Overview 3 FY16 highlights 6 Capitalising on key market trends 11 Outlook 13 Financial results Appendix A – Corporate Appendix B – Results reconciliation 20 Appendix C - Segment results
Slide 3: FY16 highlights
3 For personal use only FY16 highlights 102% Retail FUA growth of 94% to $3.3bn Launch 1st of international in categories for value for growth in retail net flows managed portfolios money, mobile access & tax to $1.6bn (Now $3.63bn) optimisation tools* Transition to profitability Increase in Platfor
Slide 4: HUB24 – Investment platform of choice
4 For personal use only HUB24 – Investment platform of choice HUB24 IS A LEADER IN WEALTH The fastest growing wrap platform* capitalising on MANAGEMENT PLATFORMS UNDERPINNED significant disruption in the wealth management industry BY MARKET LEADING TECHNOLOGY Four consecutive quarters of record
Slide 5: FY16 financial results
5 For personal use only FY16 financial results GROUP FY15 FY16 % PLATFORM SEGMENT FY15 FY16 % FINANCIAL RESULTS $m $m CHANGE FINANCIAL RESULTS $m $m CHANGE Group revenue 28.3 42.7 51% Revenue 8.1 15.4 91% Direct costs (23.5) (31.8) 36% Direct costs (4.9) (6.8) 40% Gross profit 4.8 10.9 125% Gross pr
Slide 6: HUB24 is capitalising on key market trends
6 For personal use only HUB24 is capitalising on key market trends at a time of favourable market disruption 6
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 Sector Predicting By Year CAGR increase next 15 years Superannuation assets $9.5 tn 2035 8.1% the fastest growing personal investment sector* Deloitte Dynamics of Superannuation Rep
Slide 8: The new world of managed portfolios
8 For personal use only The new world of managed portfolios A BROAD AND NON-ALIGNED INVESTMENT MENU HUB24 seamlessly integrates managed portfolios with managed funds, TDs, equities and ETFs in the one account. Your clients will benefit from simpler and cheaper trading, plus transparent reporting on
Slide 9: Creating real value for our clients
9 For personal use only Creating real value for our clients HUB24 OFFERS THE MOST FUNCTIONAL Enabling licensees to innovate, improve MANAGED PORTFOLIO TECHNOLOGY revenues and manage risk WITHIN A FULL SERVICE PLATFORM KEY FEATURES THAT SET HUB24 APART INCLUDE: Helping advisers to efficiently improve
Slide 10: Recognised by our market
10 For personal use only Recognised by our market HUB24 IS RECOGNISED AS A LEADER IN OUR MARKET AHEAD OF TRADITIONAL ESTABLISHED PLATFORM PROVIDERS INVESTMENT TRENDS PLANNER INVESTMENT TRENDS PLATFORM TECHNOLOGY REPORT* BENCHMARKING REPORT* Ranked first for Value for Money Awarded Best Navigation an
Slide 11: Outlook
11 For personal use only Outlook Strengthening profitability and corporate activity Ongoing business development and growth Extend industry leadership position through product innovation Continue to leverage changing industry dynamics
Slide 12: Outlook
12 For personal use only Outlook CONTINUING ACTIVELY ONGOING profit margin expansion with increasing scale review strategic acquisition opportunities and business development including new white – positive PBT for first half FY17 develop profitable business alliances labels offers for dealer groups,
Slide 13: Financial Results
For personal use only Results Financial 13 13
Slide 14: Group financial results
14 For personal use only Group financial results Group revenue includes Platform ($15.4m) and Licensee segments ($27.3m) GROUP FY15 FY16 % EBITDA FINANCIAL RESULTS $m $m CHANGE positive for 2HFY16* includes Platform ($15.4m) and Group revenue 28.3 42.7 51% Licensee segments ($27.3m) Direct costs (23
Slide 15: Platform segment results
15 For personal use only Platform segment results GROUP FINANCIAL FY15 FY16 % RESULTS $m $m CHANGE EBITDA positive for 2HFY16** Retail FUA (now $3,630m) $1,701 $3,313 94% Revenue growth driven by: Revenue 8.1 15.4 91% Net inflows of $1.6 billion from a Direct costs (4.9) (6.8) 40% broadening client
Slide 16: Platform segment results
16 For personal use only Platform segment results MARGIN EXPANSION AT PLATFORM REVENUE AND COSTS INCREASING SCALE $M Revenue FY16 Revenue increase – 91% 18 Direct & operating PLATFORM – REVENUE, GROSS PROFIT, 16 expenses Cost increase – 40% OPERATING EBITDA* AND EBITDA** TRENDS 14 12 #039;m Revenue Gro
Slide 17: Platform segment results
17 For personal use only Platform segment results AVERAGE MONTHLY NET INFLOWS 'M 140 Large client 120 transition 100 FY16 INCREASE $M ON PCP 80 Retail FUA (now $3,630m) 3,313 94% 60 Net inflows 1,610 102% 40 20 Gross inflows 1,930 102% 0 Number of advisers 659 32% FY12 FY13 FY14 FY15 FY16 BROADENING
Slide 18: Licensee segment results
18 For personal use only Licensee segment results • Licensee transitioned 3 new practices during the period LICENSEE FINANCIAL FY15 FY16 % and has strong pipeline RESULTS $M $M CHANGE • Revenue increase of 13% over prior corresponding period Revenue 20.2 27.3 35% • Further investment options introdu
Slide 19: Corporate segment results
19 For personal use only Corporate segment results CORPORATE SEGMENT FY15 FY16 % RESULTS $M $M CHANGE Corporate overhead expenses allocated Operating expenses (0.28) (0.35) 25% to the corporate segment Growth resources expensed (0.09) (0.12) 20% EBITDA* (0.38) (0.47) 24% Interest revenue 0.32 0.21 (
Slide 20: Appendix A – Corporate
20 For personal use only Appendix A – Corporate CAPITAL STRUCTURE AT 26 AUGUST ‘16 BALANCE SHEET AS AT 30 JUNE ‘16 Shares on issue 52.9m Cash and cash equivalents $9.27m Share price $4.50 Other current assets $5.45m Market capitalisation $238m Non-current assets $14.13m Unused tax losses $13.84m Tot
Slide 21: Appendix B – Results reconciliation
21 For personal use only Appendix B – Results reconciliation GROUP FINANCIAL FY15 FY16 % RESULTS $M $M CHANGE EBITDA (Continuing Operations) (4.4) (0.8) 81% Interest revenue 0.4 0.4 (7%) Non-recurring revenue 0.6 0.6 2% Share based payments (0.9) (1.3) 45% Non-recurring corporate costs (0.4) (0.2) (
Slide 22: Appendix C – Segment results
22 Appendix C – Segment results For personal use only FINANCIAL PERFORMANCE – PLATFORM LICENSEE CORPORATE FY16 FY15** % SEGMENTS (continuing operations) $M $M $M $M $M CHANGE Recurring revenue 15.4 27.3 - 42.7 28.3 51% Direct costs (6.8) (25.0) - (31.8) (23.5) 36% Gross profit 8.6 2.3 - 10.9 4.8 125
Slide 23: Disclaimer
23 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