Slide 1: FY15 Results Presentation
For personal use only HUB24 FY15 Results Presentation 7 September 2015
Slide 2: Overview
For personal use only Overview About HUB24 FY 15 Highlights Market Environment Industry Recognition FY15 Results Outlook Corporate Information 1
Slide 3: About HUB24
About HUB24 For personal use only HUB24 aspires to be the leading independent platform provider, revolutionising the way people manage their wealth Market leading Wrap & Managed Account Platform $1.92 billion Funds Under Administration (FUA) as at today Continuing investment in client driven t
Slide 4: What We Do
What We Do For personal use only HUB24 seeks to transform the Wealth Management market through: innovative investment administration portfolio management reporting and support services that deliver superior outcomes for advisers, licensees, investors and our shareholders. Our customers are f
Slide 5: Highlights
FY15 Highlights For personal use only Growth in active advisers of 139 to Increase in Positive FUA growth platform revenue of Operating 484 of 100% to 151% EBITDA* serving 49 active financial planning groups $1.7bn with increasing gross profit margins from March 2015 quarter with 6 white label now $
Slide 6: Market Environment
Market Environment For personal use only The personal investments market is expected to grow at a rate of 4.6% per annum in real terms (7.7% per annum in future dollars) over the next 15 years. The total personal investments market was $2,490 billion as at 30 June 2014. The superannuation market
Slide 7: Industry Awarded & Recognised
Industry Awarded & Recognised For personal use only Investment Trends recognition – Platform Benchmarking Report HUB now ranked top-3 in the market amongst full function platforms according to Investment Trends* – ahead of traditional providers and up from fifth place 2013 Awarded Best Tablet /
Slide 8: Results Overview
Results Overview For personal use only … is delivering rapid … and strengthening Our focus … organic growth … financial results To be the leading independent 151% platform revenue platform provider 91 growth Revolutionise the way people 66 Positive Operating EBITDA* manage their wealth from March ’1
Slide 9: Group Financial Results
FY15 Group Financial Results For personal use only FY14 FY15 Group Financial Results $m $m % change Acquisition of Paragem on 3 September 2014, FUA (now $1,920) $854 $1,704 100% contributing $20.23 million revenue for the Revenue – Platform 3.2 8.1 151% period FUA inflows of $797 million, an inc
Slide 10: Segment Results
FY15 Segment Results For personal use only Investment FINANCIAL PERFORMANCE - Platform Licensee Corporate FY15 FY14 % SEGMENTS $m $m $m $m $m change Recurring Revenue 8.1 20.2 - 28.3 3.2 782% Direct Costs (4.9) (18.5) - (23.4) (3.4) 45% Gross Profit 3.2 1.7 - 4.9 (0.2) 3003% Operating Expenses* (3.4
Slide 11: Platform Segment Results
FY15 Platform Segment Results For personal use only REVENUE GROSS PROFIT OPERATING EBITDA* $ millions $ millions $ millions 3.16 8.06 (0.20) 151% 1,993% 95% 3.21 FY14 FY15 (0.17) (3.68) FY14 FY15 FY14 FY15 Revenue growth driven by: Gross profit growth driven by: Operating EBITDA driven by: FUA inf
Slide 12: Platform Segment Results
FY15 Platform Segment Results For personal use only FY14 FY15 % Group financial results $m $m change Strong FUA inflows and increased transaction FUA (now $1,920) 854 1,704 100% activity delivered revenue at 63 basis points of FUA. Revenue 3.2 8.1 151% Direct Costs (3.4) (4.9) 45% Direct supplie
Slide 13: Platform Segment Results: FUA Balance
FY15 Platform Segment Results FUA BALANCE For personal use only $ millions 2,000 FY15 $m Increase on PCP 1,600 FUA* (now $1,920m) 1,704 100% 1,200 Net inflows 797 95% 800 Gross inflows 957 101% 400 Number of Advisers 484 40% - Sept '12 Sept '13 Sept '14 June '12 Mar '13 Mar '14 Dec '12 June '13 Dec
Slide 14: Scale Efficiencies and Margin Expansion
Scale Efficiencies and Margin Expansion For personal use only $ per Month Monthly gross profits Positive Operating emerged from EBITDA* from $1,000,000 3QFY14 3QFY15 Revenue Direct and operating expenses $500,000 Direct expenses $0 1H FY14 2H FY14 1H FY15 2H FY15 Scale benefits and margin expansion
Slide 15: Platform Segment Results: Trends
FY15 Platform Segment Results For personal use only REVENUE, GROSS PROFIT AND OPERATING EBITDA* TRENDS $ millions Revenue 6.0 Gross Profit 1.0 Operating EBITDA 5.0 4.0 0.0 3.0 2.0 (1.0) 1.0 0.0 (2.0) (1.0) (2.0) (3.0) (3.0) 1H13 2H13 1H14 2H14 1H15 2H15 1H13 2H13 1H14 2H14 1H15 * Operating EBITDA re
Slide 16: Licensee Segment Results
FY15 results – Licensee Segment Results For personal use only • Paragem has been a rapidly growing 10 months to Licensee Services – 30 June 2015 business over the past 5 years Key Financial Results $’m Revenue 20.2 • Revenue has increased by 19% over the Direct Costs (18.5) prior corresponding perio
Slide 17: Corporate Segment Results
FY15 results –Corporate Segment Results For personal use only A portion of operating expenses and growth resources were allocated to the Corporate segment in the 10 months to 30 June 2015. These expenses predominantly relate to corporate headcount overheads that cannot be directly attributed to eith
Slide 18: Corporate
Corporate For personal use only Capital Structure at 2 September ‘15 Balance Sheet as at 30 June ‘15 Shares on Issue 52.26m Cash and Cash Equivalents $ 12.11m Share Price $2.10 Other Current Assets $ 2.61m Market Capitalisation $109.74m Non-Current Assets $ 13.36m Tax Losses (currently not recognise
Slide 19: Outlook
Outlook For personal use only 1 Increasing FUA growth is expected to continue 1. Targeting over $3.0 billion FUA by December 2016 and $8-10 billion by end of the decade Ongoing business development including white labels for dealer groups, stockbrokers and accountants Cashflow positive during
Slide 20: Appendix A: Results Reconciliation
Appendix A For personal use only Results Reconciliation FY15 FY14 Group Financial Results $m $m % change EBITDA (Continuing Operations) (4.4) (7.2) 151% Interest Revenue 0.4 0.5 Non-Recurring Revenue 0.6 0.3 45% Share Based Payments (0.9) (0.4) Transaction Costs (0.5) - 3003% Depreciation & Amortisa
Slide 21: Disclaimer
Disclaimer Summary information The material herein is a presentation of general background information For personal use only about HUB24 Limited’s (‘HUB’) activities current as at date of presentation. This information given in summary form does not purport to be complete and should be read in conju