Slide 1: Annual Report Presentation
Annual Report Presentation 28 August 2017
Slide 2: Funds Under Administration
$5.8b Funds Under Administration Aug 2017 3 months $5b May 2017 $4b 5 months Dec 2016 7 months $3b May 2016 7 months $2b Oct 2015 13 months $1b Sept 2014 27 months $100m June 2012 2
Slide 3: Overview
Overview FY17 Opportunities Outlook Additional Highlights for growth information 3
Slide 4: FY17 Highlights
FY17 Highlights Our focus on investing in platform Net flows of Acquisition of Launch 1st innovation & $2.0b Agility of direct investing in categories for Managed growth…… FUA increase of Applications in international shares across 15 Accounts, User 66% since 30 exchanges Interface and June 2016, no
Slide 5: FY17 Highlights
FY17 Highlights ….has delivered our first year of Underlying EBITDA1 of Underlying NPAT2 of Positive operating cashflows of 1st profit $5.1m $3.9m $4.1m in overall platform satisfaction3 1. Underlying EBITDA represents earnings before interest, tax, depreciation, amortisation and other significant i
Slide 6: HUB24 - leading change in wealth management
HUB24 - leading change in wealth management Underpinned by market leading technology The fastest growing platform1 at a time of significant Platform Revenue and Retail FUA change for wealth management in Australia FUA Revenue $B $M Now profitable and Funds Under Administration (FUA) of 6 30 4 Yr
Slide 7: Group financial results
Group financial results First reporting period where all group profit lines are positive – reflecting the benefits of growth and scalability Revenue breakdown $m 0.9 0.4 + 45% 4.7 FY17 v 3.6 FY17 FY16 10.9 FY16 GROUP FINANCIAL RESULTS $m $m % 62 Group revenue 61.9 42.7 45% 43 Direct costs (41.1) (31
Slide 8: Platform segment results
Platform segment results Continuing investment and solid execution is being rewarded with FUA growth, industry recognition and expanding profit margins FY17 FY16 Var % PLATFORM FINANCIAL RESULTS $m $m % Retail FUA (Now 5.8b) 5.5b 3.3b 66% Revenue 26.3 15.4 71% Revenue increase of 71% driven by net i
Slide 9: Platform segment results
Platform segment results Margin expansion across profit lines at increasing scale Platform – revenue, gross profit and Platform revenue and expenses underlying EBITDA1 trends $m 16 Revenue Gross Profit underlying EBITDA 14 12 71% revenue increase in FY17 30 33% expense increase in FY17 10 25 8 20 6
Slide 10: Platform segment results
Platform segment results Broadening distribution base FY17 INCREASE $M ON PCP 108 active licensees 15 white labels Retail FUA 5,515 66% 37 new licensees to the platform in FY17 Net inflows 1,953 21% 3 new white labels Gross inflows 2,629 36% Number of advisers 917 39% Delivering across multi
Slide 11: Opportunities for growth
Opportunities for growth 41 HUB" 11
Slide 12: We go the extra mile, move fast and get it right
At HUB24 we make a difference in our customers’ lives by connecting them to innovative solutions that create wealth We go the extra mile, move fast and get it right. We are innovative, driven, brave, creative, real and positive. We believe every customer has the right to choose how they do business
Slide 13: HUB24 is well positioned for further growth
HUB24 is well positioned for further growth Market share by Net flows: top 10 platforms1 FUA and number of advisers HUB24 has 0.62% share of Wrap, Platform & Master Trusts at 17 new licensees signed in 4QFY17 31 Mar ‘17 with 10.47% share of annual net flows Growth in adviser numbers of 39% for
Slide 14: The changing landscape
The changing landscape 1. Adoption of 2. Market share continues to shift to 3. Convergence occurring across 4. Australians increasing Managed Portfolios new / non-institutional platforms advisory, stockbroking and use of international across Dealer financial advice shares. Group, Advisers Trend • Us
Slide 15: HUB24 continues to win awards
HUB24 continues to win awards 1st place in Overall Platform 1st place for Ease of Use/Navigation 1st place in 16 out of 24 categories, including Satisfaction Relationship support Mobile app Investment range Tax optimisation tools Reporting functionality Recognised for growth Recognised for
Slide 16: Agility Applications
Agility Applications Agility acquired 3 January 2017, is a successful specialist technology services provider to the financial services industry, particularly stockbrokers The opportunity Non-institutional advisers, brokers and accountants want to leverage new technology to improve client engageme
Slide 17: Outlook
Outlook Pursue appropriate corporate activity & strengthening profitability Continued strong FUA growth expected and targeting to more than double FUA in the next 3 years to >$12b Continue to lead change and leverage industry dynamics Increasing distribution footprint by accessing current adviser re
Slide 18: Additional Information
Additional Information Annexure 1 – Licensee segment Annexure 2 – IT Services segment Annexure 3 – Corporate segment Annexure 4 - Corporate Information Annexure 5 - Financial results reconciliation 18
Slide 19: Licensee segment results
ANNEXURE 1 Licensee segment results FY17 FY16 VAR % Licensee now has circa $3.8b in funds Licensee under advice $m $m % Revenue 30.8 27.3 13% Recruitment of 5 practices during FY17 Direct costs (28.2) (24.9) 13% to 30 Gross profit 2.7 2.3 15% % 9% 8% 0% Addition of 10 individual advisers to 70 Op
Slide 20: IT Services segment results
ANNEXURE 2 IT Services segment results Period from 3 Jan 17 An increase of 250 users of the Connect to 30 Jun 17 software over the period IT Services $m Investment in headcount to support new Revenue 4.7 business and new client initiatives Direct costs (3.0) Gross profit 1.7 Corporate integration
Slide 21: Corporate segment results
ANNEXURE 3 Corporate segment results FY17 FY16 VAR % Corporate $m $m % Operating expenses (0.4) (0.3) 11% Corporate overhead expenses allocated Growth resources expenses (0.1) (0.1) 3% to the corporate segment Underlying EBITDA1 (0.5) (0.5) 9% Interest revenue 0.4 0.2 96% Fair value gain - Contingen
Slide 22: Corporate Information
ANNEXURE 4 Corporate Information CAPITAL STRUCTURE AT 24 AUGUST ‘17 HUB24 Share price Shares on issue 55.97m Share price $6.50 Market capitalisation $364m SUBSTANTIAL SHAREHOLDERS Thorney Holdings Ltd 17.16% Acorn Capital Ltd 8.18% Ian Litster 6.50% BALANCE SHEET AS AT 30 JUNE ‘17 Cash and cash equi
Slide 23: Financial Results Reconciliation
ANNEXURE 5 Financial Results Reconciliation Platform Licensee IT Services Corporate FY17 FY16 FY17 v FY16 Segment Results $m $m $m $m $m $m % Revenue 26.3 30.8 4.7 61.9 42.7 45% Direct costs (9.9) (28.2) (3.0) (41.1) (31.8) 29% Gross profit 16.4 2.7 1.7 0.0 20.8 10.9 91% Operating expenses (6.3) (2.
Slide 24: Disclaimer
Disclaimer SUMMARY INFORMATION FORWARD LOOKING STATEMENTS The material herein is a presentation of general background information about HUB24 This presentation contains certain forward-looking statements. The words ‘anticipate’, Limited’s (‘HUB’) activities current as at date of presentation. This i