Hub24 Limited · ASX:HUB
Hub24 — Shareholder Meeting (November 2019)
19 slides from Hub24's shareholder meeting presentation, Nov 11, 2019
Slide 1: For personal use only
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Slide 2: AGM Presentation, 11th November 2019
For personal use only AGM PRESENTATION 11TH NOVEMBER 2019 ANDREW ALCOCK MANAGING DIRECTOR 2
Slide 3: Making a difference in customers' lives through innovative solutions
For personal use only At HUB24 we make a difference in our customers’ lives by connecting them to innovative solutions that create better investment outcomes 3
Slide 4: Key Messages
KEY MESSAGES For personal use only Continued strong growth in platform net flows and Increasing market opportunity as the future of Funds Under Administration (FUA) in FY19 & wealth management takes shape Q1 FY20 Continued strong growth in underlying profitability Our strategic focus is delivering r
Slide 5: FY19 Group Financial Highlights
FY19 GROUP FINANCIAL HIGHLIGHTS For personal use only FUA $12.9bn $54.1m $6.8m up 54% Insert 36% Platform Revenue 27% Group Underlying NPAT¹ Statutory NPAT $7.2m $18.0m Up from 33.3% Full year dividend2 4.6cps 52% Platform Underlying Platform Underlying EBITDA 30.0% in FY18 EBITDA margin (35.1% in 2
Slide 6: FY19 Business Highlights
FUA FY19 BUSINESS HIGHLIGHTS $12.9bn up 54% For personal use only Industry Product Net flows Position Innovation Growth Maintained our Multi-currency now Our focus on growth $3.9bn up 61% Insert position as 1st in available in managed has ensured Managed Accounts portfolios momentum in a for the 3rd
Slide 7: Leading Change in Wealth Management
LEADING CHANGE IN Delivering shareholder returns, improved financial performance and superior client outcomes WEALTH MANAGEMENT For personal use only Maintaining our position as the fastest growing platform provider1 $b PLATFORM REVENUE & FUA $m 14 60 Our Agility Applications expertise is delivering
Slide 8: Platform Segment Results: FUA Growth Delivering Scale Benefits
PLATFORM SEGMENT RESULTS (CONT’D…) For personal use only FUA GROWTH DELIVERING SCALE BENEFITS PLATFORM REVENUE, GROSS PROFIT AND UNDERLYING EBITDA TRENDS ($M) 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 (5.0) Revenue Gross Profit Underlying EBITDA 1. Underlying EBIT
Slide 9: Platform Segment Results: Revenue and Expense Trends
PLATFORM SEGMENT RESULTS (CONT’D…) For personal use only FUA GROWTH DELIVERING SCALE BENEFITS 35.0 REVENUE AND EXPENSE TRENDS ($m)2 30.0 Revenue Platform EBITDA 25.0 margin continues 20.0 Platform to expand with expenses scale 15.0 Trend (Revenue) 10.0 Investment made 5.0 in 1H19 has Trend (Platform
Slide 10: Awarded and Recognised
AWARDED AND RECOGNISED For personal use only #1 We’re rated Managed Accounts Functionality¹ (for 3rd year running) Helping demonstrate value to clients2 Decision Support Tools¹ Client Portal/login2 Portfolio Management tools² Range of Investments² for… Our commitment to innovation and service has bu
Slide 11: Progress in Q1 FY20
PROGRESS IN Q1 FY20 For personal use only FUA Net Inflows¹ 2nd 57% $14.4b 94% $1,238m place on pcp 30 September on pcp for annual & quarterly 2019 Net Inflows² Strategic investment 11 new practices for Distribution team and managed onboarded to Paragem portfolios development team well underway 1. Ne
Slide 12: Strategy and Outlook
For personal use only STRATEGY AND OUTLOOK 12
Slide 13: The Market Continues to Shift
THE MARKET CONTINUES TO SHIFT For personal use only THE SHIFT TO SPECIALIST PLATFORMS IS OUR CONTESTABLE MARKET CONTINUES TO INCREASING1 INCREASE2 350% 300% % Annual Net Flows Adviser Market Share Composition 250% 70% 200% 60% 150% 50% 100% 40% 50% 30% 0% 20% Jul-14 Dec-09 Jan-12 Jun-12 Oct-10 Aug-1
Slide 14: The Market Continues to Create Opportunities
THE MARKET CONTINUES TO CREATE OPPORTUNITIES For personal use only NET FLOW SHARE to UNDERLYING 40 HUB24 NET FLOWS RANKING in $ TERMS MARKET SHARE RATIO² 35 Specialist Institutional ANNUAL QUARTERLY 30 platforms platforms Rank Rank 25 20 June-19 2 2 15 10 Increasing Jun-18 4 3 market share 5 Jun-17
Slide 15: HUB24 Is Well Positioned
HUB24 IS WELL POSITIONED For personal use only INDUSTRY TREND HUB24 OPPORTUNITY Demand for Managed Account solutions continues to We are the market-leader in managed accounts and can build grow market share by leveraging this position The non-aligned advice segment continues to grow New licensee agr
Slide 16: Strategy & Outlook: Leverage Our Foundations for Growth
STRATEGY & OUTLOOK For personal use only LEVERAGE OUR FOUNDATIONS FOR GROWTH Continuing FUA growth Constant innovation that delivers Continue to grow and develop customer and shareholder value Paragem • From existing relationships and • Services and products to support • New leadership team building
Slide 17: Strategy & Outlook: Investing to Secure the Opportunity
STRATEGY & OUTLOOK For personal use only INVESTING TO SECURE THE OPPORTUNITY Grow our distribution footprint Extend our leadership in managed Accelerate growth in market share nationally portfolios • Leverage our FY19 success to • Innovate to further unlock client • Increase FUA by with transitions
Slide 18: Disclaimer
DISCLAIMER For personal use only SUMMARY INFORMATION control of HUB. HUB does not guarantee any particular rate of return or the performance of HUB nor does it guarantee the The material herein is a presentation of general background repayment of capital from HUB or any particular tax treatment. inf
Slide 19: For personal use only
For personal use only