Slide 1: See wealth differently - FY2024 Results Presentation
See wealth differently FY Results 20 Presentation FY2024 13 August 2024 Disclaimer: This document is for general use. Modification of content is prohibited unless you have 1 NWL Results Presentation FY2024 13 August 2024 24
Slide 2: Important notice and disclaimer
Important notice and disclaimer General Information only No representation is made that any of these statements or forecasts will come to pass or that any forecast result will be achieved, or that there is a reasonable basis for any of these Information provided is general information presented in a
Slide 3: Our purpose is to see wealth differently
Our purpose is To enable people to see wealth differently and discover a brighter future 3 NWL Results Presentation FY2024 13 August 2024
Slide 4: Meet Discover
Meet Discover 1. FY2024 business and financial highlights 2. Strategy and product update 3. Corporate sustainability Matt Heine CEO & Managing Director 4. FY2024 financial performance 5. Outlook 6. Questions Grant Boyle 7. Appendix and additional information Chief Financial Officer 4 NWL Results Pre
Slide 5: Acknowledgement of Country
Acknowledgement of Country We acknowledge the traditional owners of the lands that we work and live on. Our office here in Sydney is on the lands of the traditional owners of the Gadigal people of the Eora Nation. We celebrate the stories, culture and traditions of the Aboriginal and Torres Strait I
Slide 6: FY2024 Business & financial highlights
FY2024 Business & financial highlights 6 NWL Results Presentation FY2024 13 August 2024
Slide 7: Business and financial highlights FY2024
Business and financial highlights FY2024 $255.2M $88.0B FUA $448M Total Income FY2024 30 Jun 2024 FUA Non-Custodial 30 Jun 2024 Growth $40.5M (+18.9%) FUA 08 Aug 2024 $89.2B FUA Non-Custodial 08 Aug 2024 $504M $124.7M $11.2B $17.6B MA EBITDA FY2024 FUA net inflows FY2024 30 Jun 2024 Growth $23.9M (+
Slide 8: Consistent track record of growth and market share gains
Consistent track record of growth and market share gains FUA 4-year CAGR of 29.3% Growth in FUA, FUM and Accounts 143,251 127,507 115,642 $88.0B 97,319 $70.3B 81,804 $55.7B $47.1B $31.5B $20.5B $16.0B $11.7B $13.1B $7.3B Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 FUA FUM No. Accounts FU A 4- y ear C AG R o
Slide 9: Consistent track record of growth and market share gains
Consistent track record of growth and market share gains Netwealth is a leading specialist investment platform, increasing market share by 0.9% to 7.7%. Legacy platforms (with 57.1% of the market) are losing market share Platform providers by FUA and market share % at 31 March 2024 and Platform prov
Slide 10: Structural shift continues and shows no signs of slowing down
Structural shift continues and shows no signs of slowing down Netwealth remains a significant beneficiary of structural change increasing market share against the legacy platforms resulting in increased market share Quarterly market share analysis from March 2019 to March 2024 Netwealth market share
Slide 11: FUA composition
FUA composition Successful expansion in key market target segments supported by new Core and Non-Custodial product launches. Client segment Client type Product type Retail HNW UHNW & Family Office Institutional Investment Retail Investment Wholesale Accelerator Plus Accelerator Core Super Retail 10.
Slide 12: Transition pipeline underpins continued growth
Transition pipeline underpins continued growth Track record of partnering with existing and new financial intermediaries FUA net inflows analysis from existing and new Financial Intermediaries FUA transition analysis over multiple years $11.2B $9.9B % new Financial New Financial $1.9B New 17% FI % F
Slide 13: Xeppo Acquisition
Xeppo Acquisition Accelerated acquisition of 100% of Xeppo Pty Ltd (Xeppo). The acquisition completed on 12 August 2024. Details of additional investment are as follows: All data is normalised into a common format allowing for • $5.9 million in cash consideration; and seamless, scalable two-way conn
Slide 14: Strategy and product update
Strategy and product update 14 NWL Results Presentation FY2024 13 August 2024
Slide 15: Trends & opportunities
Trends & opportunities Technology, AI & data Market landscape Customers Advisers & licensees Investment vehicles, options Rapid advancements in Successful providers will be Contestable segments are Increasing complexity and Range and sophistication technology requires flexible defined by their abili
Slide 16: Our strategic advantage
Our strategic advantage We seek to drive change that matters by delivering innovative products and service that leverage data, technology and connectivity Our advantage is that we drive WEALTHTECH INSIGHTS & change that matters by delivering Powerful transaction, ANALYTICS innovative products and se
Slide 17: Our value proposition supports key market segments
Our value proposition supports key market segments and levels of sophistication Maintain & invest in Exclusive investment opportunities market-leading position & deal flow Non-custodial Wealth Accelerator MAPS SOPHISTICATION OF NEEDS Wealth Accelerator Plus SMSF administration Managed accounts Devel
Slide 18: WealthTech
WealthTech Our tech stack provides powerful transaction tools and efficient and engaging adviser & client solutions ENGAGE Client App Adviser Licensee Third-Party Model Investment & Portal Portal Portal Professional Manager Manager Portal Portal Portal TRANSACT Unlisted Listed Managed Corporate Cash
Slide 19: Netwealth integrates with a broad range of specialist technology providers
Netwealth integrates deeply with a broad and growing range of specialist technology providers DATA, TECHNOLOGY & INVESTMENT, RESEARCH WEALTHTECH PLATFORM FUNCTIONALITY & PORTFLIO TOOLS Xeppo PIMS Fabric Class Financial Simplicity InvestmentLink Morningstar Plutosoft Intelliflo Microsoft Iguana2 Fact
Slide 20: Powerful insights & analytical tools
Powerful insights & analytical tools help licensees, advisers & their clients better understand their business & investments 50+ practice reports Practice & licensee management dashboard 19 client reports COMING SOON: Sophisticated 30+ practice-level portfolio insights annual publications, podcasts,
Slide 21: Delivering on our strategic roadmap
Delivering on our strategic roadmap Netwealth continues to extend our strategic advantage, building on our leading capabilities and addressing emerging opportunities Accelerate Core New fixed Non-custodial International iCapital partner Investment admin fee reprice income options orders online tradi
Slide 22: Pre-advice enablement strategy multiplies the efforts of our advisers
Growing numbers of pre- advice enablement strategy multiplies the efforts of our advisers, allowing them to serve more clients 1:5 7.2m 129 For every 1 Australian Australians with more complex financial Number of clients receiving advice, 5 have circumstances & advisers see1 unmet advice needs2 incr
Slide 23: Corporate Sustainability
Corporate Sustainability 23 NWL Results Presentation FY2024 13 August 2024
Slide 24: Corporate sustainability
orporate sustainability Ongoing development of our core business will have the biggest impact and it is supported by a genuine and transparent approach Foster diversity, talent and wellbeing Be genuine and transparent in our dealings • Achieved 7.9 employee engagement score, • SOC 2 reasonable assur
Slide 25: FY2024 Financial performance
FY2024 Financial performance 25 NWL Results Presentation FY2024 13 August 2024
Slide 26: Financial growth and profitability in FY2024
Financial growth and profitability in FY2024 Total Income EBITDA Strong revenue growth across all revenue components Improving EBITDA margin to 48.8% +$40.5M +18.9% $255.2 M +$23.9M +23.8% $124.7 M $214.7 M $100.7 M FY2023 FY2024 FY2023 FY2024 Total Income EBITDA Source: Netwealth Source: Netwealth
Slide 27: Summary of FY2024 Profitability
Summary of FY2024 Profitability Financials FY2024 FY2023 Change % Change Platform Revenue 249.5 211.5 38.0 18.0% Strong growth and improving margins Other Income 5.7 3.3 2.4 75.6% • NPAT increase of 24.1% Total Income 255.2 214.7 40.5 18.9% • EBITDA margin increase to 48.8% Employee Benefits Expense
Slide 28: Strong operating performance
Strong operating performance Platform statistics FY2024 FY2023 Change % Change Funds Under Administration (FUA) FUA - Custodial 87,555 70,146 17,409 24.8% FUA - Non-custodial 448 126 322 255.5% FUA growth Total FUA 88,003 70,272 17,730 25.2% FUA Inflows - Custodial 21,648 18,609 3,039 16.3% • FUA of
Slide 29: Key performance metrics
Key performance metrics Focused on profitable growth and delivering a market leading innovative platform Average FUA/average no. of accounts (#039;000) Platform Revenue/average no. of accounts ($) Platform Revenue/average FUA (bps) 45.4 583 1,864 507 521 1,747 38.3 437 1,667 1,673 1,653 367 32.6 33.6 3
Slide 30: Platform revenue components
Platform revenue components Platform revenue achieved a 4-year CAGR of 18.6% with steady improvement in diversification of revenue types Platform revenue split FY2020 to FY2024 $249.5M 6% $211.5M 12% 6% $176.3M 11% $147.9M 6% 15% 37% $126.1M 5% 14% 37% 4% 10% 30% 33% 35% 46% 45% 48% 49% 51% FY2020 F
Slide 31: Group expenses
Group expenses FY2024 operating expenses of $130.6M, increased by $16.6M, 14.5% increase. Total operating expenses for FY2023 and FY2024 Employee benefits expenses of $93.3M, increased by $13.0M, 16.2%: +$16.6M 14.5% $130.6M • 613 people at 30 June 2024, 60 roles added during $114.0M FY2024; $15.8M
Slide 32: Investing in people to support growth
Investing in people to support growth 60 additional roles to support growth, service, innovation and technology. A team of 613 people at 30 June 2024, 60 new roles added during FY2024 Headcount by function 30 June 2024 1% Technology 3% 12 3% 2 2 6% Service, Administration & 12 17 613 Support 15 4 -1
Slide 33: Summary | Strong financial and market position
Summary | Strong financial and market position Highly profitable and An extremely high Strong balance sheet improving EBITDA margin correlation between EBITDA and operating cash • Low capital expenditure • Revenue growth flow, resulting in strong • Debt free • High level of predictable cash generati
Slide 34: Outlook
Outlook 34 NWL Results Presentation FY2024 13 August 2024
Slide 35: Outlook
Outlook Focused on investing in and leveraging our people, product and technology capabilities to benefit from a substantial number of existing and emerging opportunities in the market, to innovate and grow profitably. Our advice enablement We have expanded and Provide greater practice strategy mult
Slide 36: Outlook
Outlook Netwealth remains in an excellent financial position: • Highly profitable, with strong EBITDA margin; • An exceptional correlation between EBITDA and operating cash flow, resulting in strong cash generation; • Very high levels of predictable recurring revenue; and • Significant cash reserve,
Slide 37: Questions
Questions
Slide 38: FY2024 Appendix and additional information
FY2024 Appendix and additional information 38 NWL Results Presentation FY2024 13 August 2024
Slide 39: Cash Flow
Cash Flow The table below sets out the summary of the consolidated statement of cash flows for FY2024 and FY2023 Consolidated Group for Period Ended 30 Jun 2024 30 Jun 2023 Variance Variance % Receipts from customers 258.1 223.4 34.6 15.5% Payments to suppliers and employees (136.4) (120.3) (16.1) (
Slide 40: Operational Risk Financial Requirement (ORFR)
Operational Risk Financial Requirement (ORFR) Cost of capital recovery on ORFR classification and disclosure has been revised and presented as Platform revenue. Prior periods have been reclassified to be consistent with current period disclosure; Consolidated Group for Period Ended Cost of capital r