Hub24 Limited · ASX:HUB
Hub24 — Shareholder Meeting (November 2018)
22 slides from Hub24's shareholder meeting presentation, Nov 19, 2018
Slide 1: HUB24
AUB
Slide 2: HUB24 Annual General Meeting Managing Director's Address
19 NOV 2018 HUB24 ANNUAL GENERAL MEETING MANAGING DIRECTOR’S ADDRESS
Slide 3: Group Financial Highlights FY18
GROUP FINANCIAL HIGHLIGHTS FY18 Gross Underlying Underlying Operating Inaugural Revenue Profit EBITDA NPAT1 Cashflow Dividend2 $84.0m $34.3m $11.4m $5.4m $12.2m 3.5c 36% 65% 123% 129% 201% 1. Underlying NPAT is a non-IFRS measure which is used to assess the operating performance of the business. Und
Slide 4: Overview
Highlights Financial results Market & growth opportunities OVERVIEW Outlook Additional information
Slide 5: Business Highlights
BUSINESS HIGHLIGHTS 1st Total FUA Net flows of Managed Accounts Broadening Extending our Build your own Expanding our 2016 & 20171 platform reach leadership in platform with distribution footprint $8.3b $2.4b User Interface through Managed Portfolios ConnectHUB As at 30 June FY18 development of & un
Slide 6: FY18 Group Financial Results
REVENUE BREAKDOWN $m FY18 GROUP FINANCIAL RESULTS 13.4 5.0 3.8 STRONG FUA GROWTH DRIVING INCREASED PROFITABILITY IT services FY18 FY173 Change first included $84.0 2H17 $m $m % $61.9 + 36% Group revenue 84.0 61.9 36% FY17 1 Platform Licensee IT Services FY18 1 Direct costs (49.7) (41.1) 21% Gross pr
Slide 7: FY18 Platform Segment Results
FY18 PLATFORM SEGMENT RESULTS FY18 FY17 change Continuing investment and solid execution is being rewarded with growth in FUA and $m $m % revenue whilst delivering expanding profit margins FUA (Now $9.1b as at 30 Sept) $8.3b $5.5b 51% Revenue 39.7 26.3 51% Revenue increase of 51% driven by net inflo
Slide 8: Platform Segment Results
PLATFORM SEGMENT RESULTS PROFIT LINES REFLECTING SCALE BENEFITS OF INCREASING FUA REVENUE, GROSS REVENUE AND EXPENSE TREND LINES $m PROFIT AND UNDERLYING EBITDA¹ TRENDS $m 45 40 45 35 40 35 30 30 25 25 20 20 15 15 10 10 5 5 0 ‐ FY14 FY15 FY16 FY17 FY18 (5) Revenue Platform expenses (10) GROSS PROFIT
Slide 9: The Market
THE MARKET KEY TRENDS SHAPING OUR INDUSTRY ADVISER TRENDS Australian platform Superannuation pool in In 2018 platform net Non-institutionally owned advisers are 41%5 of market Australia expected to be inflows of the market, having increased by 8% from 33% in Dec 2015 $809bn $4tn 49% Projected to rea
Slide 10: Meeting the Market Needs
MEETING THE MARKET NEEDS OUR CUSTOMER COMMITMENT, INNOVATION AND SERVICE IS BUILDING STRONG 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 platform compared to
Slide 11: Connecting brokers to new ways to grow their business
Connecting brokers to new ways to grow their business Supporting wealth management licensees through connecting them to new ways to create value At HUB24 we make a difference Providing investors with in our customers’ the right solutions for their lives by wealth needs connecting them to innovative
Slide 12: HUB24 Leading Change in Wealth Management
HUB24 LEADING CHANGE IN WEALTH MANAGEMENT FUA $M 9,000 85 % FUA 5 YR CAGR Revenue $M 45 The fastest growing platform1 leveraging industry Investing in the future of wealth management leveraging the transformation expertise of Agility Applications, 8,000 7,000 100 % Revenue 5 YR CAGR 40 35 Our clear
Slide 13: There's a Reason We're the Fastest Growing Platform
THERE’S A REASON WE’RE THE FASTEST GROWING PLATFORM NET FLOW SHARE to UNDERLYING 20.0 MARKET SHARE RATIO Specialist Institutional • We are constantly innovating and leading change platforms platforms Annual growth % of FUA Avg 12.8X Avg 0.5X 15.0 • The traditional ‘asset administration’ role of plat
Slide 14: HUB24 Is Well Positioned for Further Growth
June ‘18 quarter in 3rd place with 22.9% share of net inflows HUB24 IS WELL POSITIONED FOR FURTHER GROWTH NEW TECHNOLOGY PLATFORMS ARE MARKET SHARE BY ANNUAL NETFLOWS WINNING FLOWS¹ (Top 10 net flow platforms) 35.00% 120% HUB24 achieves 18.36% 30.00% June ‘18 quarter in 3rd of market flows with a pl
Slide 15: And We've Only Just Begun
AND WE’VE ONLY JUST BEGUN HUB24 ANNUAL INVESTMENT IN GROWTH AND SHARE OF 1 NET FLOWS MY APPS Bring your own apps, or 14.0% $12.0 use ours, to optimise the client experience 12.0% $10.0 10.0% $8.0 ADVISERHUB + 8.0% $6.0 AGILITY Connect multiple data 6.0% CONNECT sources and apps to $4.0 Leverage our
Slide 16: Customise Your Own Platform
3 Pilot groups Customise your own platform Very positive feedback received from broker and adviser pilot groups using Macquarie CMT and BYO data & link your chosen Australian Money Markets and non-custody products, providers & technology Distinguishing HUB24 in the market Get a complete view of your
Slide 17: Leveraging New Technology Partnerships & Building for the Future
Leveraging new Providing technology, Ongoing product Winning new technology partnerships & infrastructure, data & development to create clients & building for the future connectivity for HUB24, for client opportunities investing in our team New partnerships with leading technology providers and clie
Slide 18: Outlook
OUTLOOK Leverage our current foundations …and lay foundations for future growth • Deliver increasing financial results & scale-based profit • Continue to lead change, leverage market dynamics and margin expansion create new opportunities for clients and advisers through innovation • Continued strong
Slide 19: Additional Information
ADDITIONAL INFORMATION
Slide 20: Appendix A - Corporate Information
CAPITAL STRUCTURE AT 16 NOVEMBER ‘18 APPENDIX A -CORPORATE Shares on issue 62.03m Share price $13.14 INFORMATION Market capitalisation $815m SUBSTANTIAL SHAREHOLDERS Thorney Holdings Ltd 12.79% The Capital Group Companies Inc 6.23% Hyperion Asset Management Ltd 7.09% 2000% HUB24 share price Vs S&P A
Slide 21: Disclaimer
DISCLAIMER SUMMARY INFORMATION FORWARD LOOKING STATEMENTS The material herein is a presentation of general background This presentation contains certain forward-looking statements. information about HUB24 Limited’s (‘HUB’) activities current as The words ‘anticipate’, ‘believe’, ‘expect’, ‘project’,
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