Hub24 Limited · ASX:HUB
Hub24 — H1 FY2019 Earnings Presentation
27 slides from Hub24's earnings presentation, Feb 26, 2019
Slide 1: For personal use only
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Slide 2: 1HFY19 Results Presentation
For personal use only 26 Feb 2019 1HFY19 RESULTS PRESENTATION
Slide 3: Company purpose statement
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
For personal use only KEY MESSAGES Continued strong growth in platform Well positioned to leverage enhanced net flows and Funds Under opportunities in a post Royal Commission Administration (FUA) world and lead change with product and service innovation Investing in compliance, risk Highly regarded
Slide 5: Overview
For personal use only Business highlights Financial results Outlook OVERVIEW Additional information 5
Slide 6: Business Highlights
For personal use only BUSINESS HIGHLIGHTS ANDREW ALCOCK - MD 6
Slide 7: Business Highlights
For personal use only BUSINESS HIGHLIGHTS Net flows for 1HFY19 of Executed our largest FUA transition 2 new large National Broker Launched 94 new managed portfolios (65 under new MIS 1st $2.1b whilst maintaining ongoing flows in a wins with HUB24/Agility combined offering structure) Overall Platform
Slide 8: Financial Highlights
For personal use only FINANCIAL HIGHLIGHTS $25.4m $8.0m $21.5m $3.1m 2.0 ₵ Platform Platform Underlying Gross Underlying Inaugural Revenue EBITDA¹ Profit NPAT² interim dividend declared 35% 60% 34% 46% Comparison period is 1HFY18 1. Underlying EBITDA represents earnings before interest, tax, depreci
Slide 9: Consistently Delivering Growth & Performance
For personal use only CONSISTENTLY DELIVERING GROWTH & PERFORMANCE Platform FUA and Revenue The fastest growing platform1 Leading change in wealth Revenue $M leveraging industry management and investing in transformation product innovation to capture 10,000 62% FUA 3 YR CAGR 30.0 emerging opportunit
Slide 10: The Fastest Growing Platform Provider
For personal use only THE FASTEST GROWING PLATFORM PROVIDER NET FLOW SHARE to UNDERLYING ANNUAL QUARTERLY MARKET SHARE RATIO Share of Net Share of Rank Rank 30.0 Flows Net Flows Specialist Institutional 25.0 platforms platforms Sep-18 29.50% 3 NM* 2 20.0 Sep-17 9.77% 5 13.45% 4 15.0 Increasing 10.0
Slide 11: Industry Dynamics Presenting Unprecedented Opportunity for HUB24
For personal use only INDUSTRY DYNAMICS PRESENTING UNPRECENTED OPPORTUNITY FOR HUB24 Traditional role of platforms has been Advisers exiting institutions to access product disrupted by Specialist Platform Providers choice & the best solutions for their clients harnessing technology & innovation to c
Slide 12: Investing to Capture This Opportunity
For personal use only INVESTING TO CAPTURE THIS OPPORTUNITY We have continued to invest in order to capture opportunities and build foundations for the future, with additional expenses incurred across: Governance Distribution Infrastructure Service & Innovation • New CFO & New • New Head of Strategi
Slide 13: Financial Results
For personal use only FINANCIAL RESULTS MARK GOODRICK - CFO 13
Slide 14: Group Financial Results
For personal use only GROUP FINANCIAL RESULTS REVENUE 6.6 0.9 1HFY19 1HFY18 Change (1.0) $47.1M $40.6M $m $m % Group revenue1 47.1 40.6 16% Insert 1HFY18 Platform Licensee IT Services 1HFY19 Direct costs (25.7) (24.5) 5% Gross profit 21.5 16.1 34% OPERATING EXPENSES Gross profit margin (%) 46% 40% 6
Slide 15: Platform Segment Results
For personal use only FUNDS UNDER ADMINISTRATION ($M) PLATFORM SEGMENT RESULTS 1,480 STRONG FUA GROWTH DRIVING INCREASED PROFITABILITY 638 159 (574) 1HFY19 1HFY18 change PLATFORM $m $m % FUA (Now 11.0b1) 10.0b 6.9b 46% 8,343 9,140 10,046 Revenue 25.4 18.8 35% Direct costs (6.7) (5.8) 16% FUA 30 Jun-
Slide 16: Platform Segment Results: Profit Lines Reflecting Scale Benefits
For personal use only PLATFORM SEGMENT RESULTS PROFIT LINES REFLECTING SCALE BENEFITS OF INCREASING FUA $m REVENUE, GROSS 30.0 REVENUE AND EXPENSE TRENDS2 $m PROFIT AND UNDERLYING EBITDA¹ TRENDS 30.0 25.0 20.0 25.0 15.0 20.0 10.0 15.0 5.0 10.0 0.0 1H16 2H16 1H17 2H17 1H18 2H18 1H19 5.0 Revenue Platf
Slide 17: Outlook
For personal use only OUTLOOK ANDREW ALCOCK 17
Slide 18: Supporting Clients Post Royal Commission
For personal use only SUPPORTING CLIENTS POST ROYAL COMMISSION Focus on clients needs Removal of Requirement for annual Well positioned to provide and Best Interests grandfathering is client engagement via opt-in technology solutions to expected to open up expected to release FUA expected to create
Slide 19: Our Customer Commitment
For personal use only OUR CUSTOMER COMMITMENT OUR COMMITMENT TO INNOVATION AND SERVICE HAS BUILT STRONG CUSTOMER ADVOCACY 89% of advisers Advisers using HUB24 HUB24 continues to win who use us as their have the lowest intention industry recognition as 89% main platform say we are the best to change
Slide 20: Outlook
For personal use only OUTLOOK Leverage our current foundations …and lay foundations for future growth • Consistent growth and performance translating into • Continue to lead change and create new improved financial results and scale based profit opportunities for clients and advisers through margin
Slide 21: Additional Information
For personal use only ADDITIONAL INFORMATION 21
Slide 22: Further Platform Segment Results
For personal use only FURTHER PLATFORM SEGMENT RESULTS BROADENING DISTRIBUTION BASE 400 AVERAGE MONTHLY NET INFLOWS (‘m) 221 active licensees 350 300 No of advisers 1,456 250 18 white labels in total, 1 new in 1HFY19 200 150 29 new licensees to the platform in 1HFY19 100 50 0 FY15 FY16 FY17 FY18 FY1
Slide 23: Strategic Insights Market Share Analysis
For personal use only STRATEGIC INSIGHTS MARKET SHARE ANALYSIS NEW TECHNOLOGY PLATFORMS ARE WINNING FLOWS MARKET SHARE BY ANNUAL NET FLOWS 120.00% Annual Net Flows 60.00% % Share of Annual Net Flows vs FUA 100.00% HUB24 achieves 29.5% 50.00% of market flows with a current market share of 1.06% 80.00
Slide 24: Wealth Insights Platform Satisfaction
For personal use only WEALTH INSIGHTS PLATFORM SATISFACTION Average rating (out of 10) 2018 2018 Platforms 7 7.2 7.4 7.6 7.8 8 8.2 8.4 % of 7-10 % of 1-6 AVERAGE Rank ratings ratings CATEGORY RANKING RANK SCORE Platform A - Insto 1 88% 12% IT/Web Functionality 1 8.20 Highest Lowest HUB24 Platform Of
Slide 25: Investment Trends Overall Platform Scores
For personal use only INVESTMENT TRENDS OVERALL PLATFORM SCORES 2018 Platform Scores Overall 100% 90% 86% 85% 80% 80% 80% 77% 70% 74% 71% 69% 69% HUB24 1st Platform Managed 68% 60% Accounts functionality 50% HUB24 1st Decision Support Tools 40% 30% 20% 10% 0% 1 HUB24 3 4 5 6 7 8 9 10 25 Source: Inve
Slide 26: Disclaimer
For personal use only DISCLAIMER SUMMARY INFORMATION rate of return or the performance of HUB nor does it guarantee the repayment of capital from HUB or any The material herein is a presentation of general background particular tax treatment. information about HUB24 Limited’s (‘HUB’) activities curr
Slide 27: For personal use only
For personal use only